Revenio Group Oyj - Interim report (Q1 and Q3)

Revenio Group Corporation: Interim Report January 1- March 31, 2019

Revenio Group Corporation, Interim report, April 16, 2019 at 8.30 am
Revenio Group Corporation Interim Report January 1 – March 31, 2019

Due to an amendment to the Securities Market Act, the descriptive sections of
Revenio's Interim Reports Q1/2019 and Q1–Q3/2019 will be shorter and more
concise. The normal Interim Report will be published for the first six months of
the financial period, January–June 2019.

Figures in brackets refer to the same period in the previous year, unless
otherwise stated.

Strong start to the year – net sales up over 20%

January–March 2019

  ·  Net sales totaled EUR 8.4 (7.0) million, up by 20.7%
  ·  EBITDA totaled EUR 2.9 (2.2) million, or 34.0% of net sales, up by 27.2%
  ·  Operating profit totaled EUR 2.6 (2.1) million, or 30.6% of net sales, up
by 20.8%
  ·  The currency-adjusted growth of net sales in January–March was 15.6%, or
5.2 percentage points weaker than reported
  ·  Operating profit was weighed down by non-recurring acquisition-related
costs amounting to EUR 265,000. Operating profit adjusted by the non-recurring
acquisition costs was EUR 2.8 million, or 33.7% or net sales.
  ·  Earnings per share, undiluted EUR 0.086 (0.069)
  ·  After the review period on April 13, 2019 Revenio signed an agreement to
acquire all shares of the Italian company CenterVue SpA. The acquisition is
estimated to be completed during the first half of 2019
  ·  Revenio’s current CEO Timo Hildén will, based on his own wish, move to lead
the acquisition and integration work as Senior Advisor
  ·  M.Sc. (EE) Mikko Moilanen has been appointed as the CEO of Revenio Group
Corporation and Revenio’s Group company Icare Finland Oy. He will assume the
position at the latest on October 14, 2019, possibly even earlier.

Group key figures, MEUR

                              1.1-31.3.2019  1.1-31.3.2018  Change-%
Net sales                     8.4            7.0            20.7
EBITDA                        2.9            2.2            27.2
Operating profit, EBIT        2.6            2.1            20.8
Undiluted earnings per share  0.086          0.069
                              31.3.2019      31.3.2018      Change, %-point
EBITDA-%                      34.0           32.2           1.7
Operating profit-%, EBIT      30.6           30.5           0.0
Return on investment-%, ROI   17.9           15.3           2.6
Return on equity-%, ROE       13.1           11.8           1.3
Equity ratio-%                71.5           74.8           -3.3
Gearing-%                     -35.8          -33.6          -2.2

The Group has adopted the IFRS 9 and IFRS 15 Standards from January 1, 2018
onwards. IFRS 16 has been adopted as from January 1, 2019. Additional
information is available on pages 3-4.

Financial guidance for 2019

Due to the acquisition, Revenio will refine its financial guidance published on
February 14, 2019 after the transaction is confirmed.

Earlier financial guidance: Net sales is expected to show strong growth compared
to the previous year and profitability is expected to remain at a strong level.

CEO Timo Hildén:

"In terms of sales, 2019 got off to a strong start, despite the fact that a
major one-time order was placed in the corresponding period last year. Our net
sales grew by 20.7% and amounted to EUR 8.4 million. The EBITDA for the period
was EUR 2.9 million, up by 27.2%. During the review period, operating profit was
weighed down by non-recurring acquisition-related costs amounting to EUR
265,000. EBITDA adjusted by non-recurring acquisition costs was EUR 3.1 million,
or 37.1% of net sales.

Sales were excellent, especially in what have traditionally been major countries
for us, such as the United Kingdom, where distributors are to some extent
already anticipating the uncertainties caused by Brexit. As a result, our
deliveries to the UK were larger than usual during the period; in normal
circumstances, they would have occurred partly only during the following
quarter. Other strong countries were Germany, Australia, Canada, and Italy.

Icare ic200, launched in the fall of 2018, was granted a sales permit in Japan
in March, and sales are already expected to start during the second quarter.
Japan has been an important market for the predecessor of the product, Icare
PRO, now replaced by Icare ic200. In the U.S., we launched clinical trials of
the product, required for filing a sales permit application with the US Food and
Drug Administration (FDA). We aim to file the sales permit application during
2019.

As we have previously noted, interest in the Icare HOME tonometer is gradually
turning into demand. Icare HOME has been adopted for use with patients at six of
our partner clinics in Finland, which we consider to be a very important
development in the domestic market. In the U.S., we are planning to introduce a
new marketing model for Icare HOME, in which optometrists will refer patients to
ophthalmologists who are actively using Icare HOME. The marketing model involves
renting the device to the patient. In addition, we launched a new Clinic
software version for the Icare HOME, including several new features, such as
alerts for eye pressure, reference tables, and new language versions. A number
of major new studies on Icare HOME are underway or starting in the U.S.; we
expect these to provide strong support for our marketing in the future. We have
also launched a new Icare HOME publication that compiles all the clinical trials
already conducted. In Germany, an extensive Icare HOME trial is starting at the
University of Munster with over 1,000 patients.

Major growth continued in probe sales, totaling 36.3% of net sales.

We have signed new distribution agreements for the asthma product Ventica, with
distributors in over 10 countries by the end of the period. Their primary goal
in the first phase is to find good reference clinics to adopt Ventica for trial
use and hence act as opinion leaders for local asthma specialists and
pediatricians. Through distributors, we can also more easily participate in
local country-specific conferences.

The development of the hyperspectral camera Cutica for skin cancer detection is
progressing as planned. As a new step, we have studied the use of artificial
intelligence for the automatic processing of image material.

After the review period on April 13, 2019 we informed that we have signed an
agreement to acquire all shares of the Italian company CenterVue SpA. The
acquisition is estimated to be completed during the first half of 2019. The
acquisition is extremely important for Revenio's growth strategy, and therefore
I have expressed the Board of Directors my wish to concentrate on leading the
acquisition and integration work as Senior Advisor. I have been in the health
technology industry for 40 years, of which 20 years I has served as CEO of
various companies. During this time, I have gained considerable experience of
coordinating and integrating different corporate cultures. In my new position,
my focus will initially include, along with the CEO's duties and later full
-time, finalization of the acquisition, launching and completing the integration
work as well as supporting Mikko Moilanen in taking on his tasks. We will return
to the progress of the acquisition process, it’s impact on our financial
guidance and progress of the integration work with separate releases.”

General statement

This report contains certain statements that are estimates based on the
management’s best knowledge at the time they were made. For this reason, they
involve a certain amount of inherent risk and uncertainty. The estimates may
change in the event of significant changes in general economic conditions.

Revenio Group Corporation

Board of Directors

For further information, please contact:

Timo Hildén, CEO, tel. +358 40 580 4774

timo.hilden@revenio.fi

www.revenio.fi

DISTRIBUTION:

Nasdaq Helsinki Oy

Financial Supervisory Authority (FIN-FSA)

Principal media

www.revenio.fi

The Revenio Group in brief

Revenio is a Finnish, globally operating health technology corporation whose
worldwide success is based on a strongly patented intraocular pressure
measurement technology.

The Revenio Group consists of Icare Finland Oy, Revenio Research Oy and Oscare
Medical Oy. Revenio’s core business is to develop and commercialize effective
and easily adopted devices to assist in the diagnostics of glaucoma and its
monitoring during treatment.

Revenio seeks vigorous growth in health technology. Revenio aims to develop even
more efficient and easily adopted methods for the early-stage detection of
diseases with significance for public health. The focus of Revenio’s technology
is on the early detection of glaucoma, skin cancer and asthma, and the
monitoring of these during the treatment process.

In 2018, the Revenio Group's net sales totaled EUR 30.7 million, with its
operating margin standing at 33.3%. Revenio Group Corporation is listed on
Nasdaq Helsinki.

Attachments:

Revenio Group Corporation Interim Report Q1 2019.pdf