Interim report January - September 2021

• Ongoing or contracted trials at more than 60 hospitals with a total potential of approximately 750 TetraGraph systems.
• Strategically important agreements were signed in the US with some of the most reputable hospitals in the world where we will install monitors in all operating theatres during the fourth quarter.
• Production of TetraGraph monitor started in own premises, partly contributing to an increased gross margin of 68 percent (33).

Financial information for July - September 2021

• Net sales amounted to SEK 1,436 thousand (2,096).
• Gross margin before depreciation was 67.8 percent (33.4).
• Income after financial items was SEK -19,704 thousand (-11,787).
• Earnings per share amounted to SEK -0.31 (-0.20).
• Cash and cash equivalents amounted to SEK 97.4 million (75.7) on September 30.

Financial information for January - September 2021

• Net sales amounted to SEK 7,263 thousand (5,843).
• Gross margin before depreciation was 58.9 percent (39.7).
• Income after financial items was SEK -59,923 thousand (-33,420).
• Earnings per share amounted to SEK -0.93 (-0.58).

At the end of the third quarter, trials were ongoing and contracted at more than 60 hospitals with a total potential of approximately 750 TetraGraph systems. The great interest in our system was also evident at the American Society of Anesthesiology’s Annual meeting (ASA) where four studies with TetraGraph were presented. Two of these studies focused on use in children. A TetraGraph study was also named editor’s choice in the prestigious journal Anesthesiology. It was great to finally meet international anesthesiologists again after the lockdown during the pandemic and very encouraging to hear that quantitative monitoring is a high priority area around the world. I am very proud of the Senzime team and our continued efforts for a world without anesthesia-related complications.

We have seen a clear acceleration in demand during the autumn, after a tepid summer when hospitals slowed down more than usual in the aftermath of the pandemic. The sales process for TetraGraph takes place in several stages, with the majority of customers conducting trials, which is the final step before a final purchasing decision. Right now, we have more trials underway than we’ve ever had before.

Sales increased 24 percent between the nine-month periods of 2021 and the previous year. The end of the long pandemic, the pending start-up thereafter had a negative impact on the Group’s sales in the third quarter. Overall, group sales decreased by 31 percent compared to the third quarter of last year. However, it is gratifying to note that sales in the US increased by 60 percent between the quarters and contain both orders from existing and new customers.

The base of installed TetraGraph systems is gradually increasing in hospitals. We have signed strategically important agreements in the US with some of the most reputable hospitals in the world where during the fourth quarter we install monitors in all operating theatres. These agreements are based on commitments in the purchase of sensors against us exhibiting monitors, which has some negative short-term impact on sales, but means that we increase competitiveness and invest to increase sensor sales in the long term.

Around 20 trials of TetraGraph are currently underway at British hospitals. The UK has introduced new quantitative monitoring guidelines which mean equipment must be available in all operating theatres and used on all patients receiving muscle-blocking drugs. Our rollout of TetraGraph® does not depend on guidelines, but it is clear that they contribute to potentially even faster rollout rates.

In order to increase margins and improve efficiency, the production of TetraGraph has been moved home to Uppsala according to plan. It feels great to see the monitors put together in our own premises. At the beginning of October, we also had a much appreciated Capital Markets Day. The feedback from this was that it was very interesting to hear and understand more about the area of anesthesia specialists and to get an in-depth knowledge of the business.

Most importantly, however, the installed base of TetraGraph – which in turn drives sensor sales – is growing and it does. Our communicated target of SEK 200 million in sales by 2023 remains despite the fact that the pandemic has temporarily restricted Senzime’s access to healthcare. The target corresponds to an installed base of approximately 5,000 TetraGraph systems by 2023.

I look forward to continuing to drive strong business activity in the coming quarter and to carry out further recruitments of key personnel in both the US and Germany.

Uppsala in November 2021

Pia Renaudin, CEO