ChemoMetec A/S : Annual Report 2024-25 (UK) (99f86b)

About this update from Chemometec A/s

Annual Report 2024/25 ChemoMetec supplies high-quality analytical equipment that optimises our customers' workflows and ensures accurate, consistent and fast measurements within cell counting and analysis. Company reg. (CVR) no.: +45 19 82 81 31 ‌Contents CEO letter Our business Performance in 2024/25 and guidance Financial statements 2024/25 Management's review 3 CEO letter 6 ChemoMetec at a glance 8 Highlights 2024/25 9 Financial highlights 10 Our business 11 Our business model 15 Our markets 18 Our products 22 Performance in 2024/25 and guidance 23 Business performance 34 Product development 36 Financial review 39 Guidance for 2025/26 41 Governance 42 Risk factors 44 Sustainability 54 Corporate governance 58 Board of Directors and Statement and report Statement by Management Independent auditor's report Links to our other reports Corporate Governance at ChemoMetec Remuneration report 2024/25 Financial statements 2024/25 70 Consolidated financial statements 98 Parent company financial statements Follow us: Executive Management 61 Shareholder information This report is a translation of the Danish version of the ChemoMetec Annual Report 2024/25. The Danish version of the ChemoMetec Annual Report 2024/25 serves as the official version filed with the Danish authorities. In case of discrepancy between the Danish language original text and the English language translation, the Danish text shall prevail. ‌CEO letter‌ Growing revenue and EBITDA 2024/25 was a positive and exciting year for ChemoMetec. We got back on the growth track and saw a significant increase in earnings. The improvement can be attributed to positive developments among a number of our customers and the launch of our new products, for which we see attractive growth potential in the future. Improved market conditions… Our positive performance in the past year reflects an increasing number of trials during the year in the cell and gene therapy area. Furthermore, new therapies are continually being approved, and more therapies are going into production. The so-called CAR-T therapies are still the most prevalent. Among our group of customers, the larger companies generally find it relatively easy to attract the capital needed to finance their development projects. It is also by this type of customer that we see the greatest number of new therapy trials being launched - and regularly encouraging data from a number of these trials in the early trial phases are received, which is good news for the industry as well as for ChemoMetec. Small start-ups, on the other hand, are still struggling to raise the capital needed to finance their development projects. The current market conditions support our potential for selling our NucleoCounter products to companies conducting trials, and in addition a new market is emerging within automation of the production of cell and gene therapy treatments. We see great potential for our business in this market. Our customers are dealing with high production costs and capacity constraints and hope to solve these problems by converting to fully automated production. We are very actively pursuing a role in our customers' automation process, and we are happy to already be a supplier and adviser to them as they build these new production lines. ... but increased geopolitical uncertainty However, like most other companies, we noted growing uncertainty among some of our existing and potential customers in the latter part of the financial year caused by geopolitical challenges - particularly the uncertainty surrounding future US government policies, including the tariff regime. We are monitoring the geopolitical situation and our customers' sentiment - and we are doing all we can to protect our business under these circumstances. For example, we have stockpiled important components and also produced instruments to stock. "We are currently seeing the emergence of an attractive new market for ChemoMetec, as our customers in the cell and gene therapy segment increasingly seek to automate their production processes, including their cell counting. Our new high-tech XcytoMatic 30 and XcytoMatic 50 instruments were developed to be integrated into our customers' automated production flows, and we see great potential for ChemoMetec to build a strong market position in this area." Martin Helbo Behrens, CEO New product launches... Along with our strong focus on generating renewed growth in our existing business, we spent considerable resources on launching our new high-tech XcytoMatic products in the past financial year. The launch of the XcytoMatic 40 is paving the way for ChemoMetec in the bioprocessing market, in which we previously had a limited presence. This is an attrac- tive, large market showing stable growth - and a market dominated by large companies that are not significantly affected by changing market conditions. The new XcytoMatic 30 and 50 instruments, both of which were developed on the same technology platform as the XcytoMatic 40, meet our cell and gene therapy custom-ers' demand for automation, resulting in streamlining and major cost savings in connection with cell counting. In short, the products automate the processes of taking samples and counting cells, which were previously manual and highly resource intensive. This is a new market and an area in which we are currently seeing major investments being made. The fact that ChemoMetec has cultivated strong, longterm relationships with the major pharmaceutical companies over a number of years places us in an attractive position for the launch of the new products - as it means that we are able to present the products to the right customers and the relevant persons. Together with relevant specialists, our Management visited over a hundred customers in the past year, to which should be added all the customer visits made by our employees. We have received very positive feedback from existing and potential new customers, and it is our impression that almost all our customers in the cell and gene therapy segment focus on automation. In the past year, there was a major increase in the number of validations of our instruments by potential future cus- tomers, and we expect this positive trend to continue in the coming years. The validations in progress have taught us a great deal - in particular, we have gained important insight into the validation process, which in relation to automation projects is significantly longer than we have previously experienced with our products. It has also boosted our confidence in the future potential of the new products, however. Typically, customers will initially test/validate a few instruments and on a small scale, then start an internal decision-making process and filing with authorities - after which the use of ChemoMetec's instruments will gradually be scaled up to larger slots if the customers decide to continue working with our products. This process may take three to five years until full implementation. New development project launched In 2024/25, we also started one of our most ambitious projects to date: Setting a new global sample manage- ment standard. With our upcoming Sample Management System, which integrates the XcytoMatic 50 and a new software platform, we will offer fully automated sample management from sample taking to analysis. We consider this a key step on the way to making the processes more precise, efficient and cost effective for our customers. ChemoMetec has a strong market position We also believe that ChemoMetec has a strong market position in relation to the current surge in automation. We base this on our newly developed technology platform and the fact that we see several competitors withdrawing from the cell counting market, partly due to increased complexity. According to our market research, the Xcyto-Matic 30 and 50 are currently the only products on the market that fully meet the automation needs of existing and new customers. This gives ChemoMetec an attractive window of opportunity - which we are in the process of taking full advantage of. Our aim is to establish the Xcyto-Matic platform as the 'industry standard' for customers looking to automate their cell counting. In this context, we will gradually increase our focus on continually developing software for both instruments and labs. We expect part of our future growth to be generated in this area. We have prepared the start-up and upscaling of production of the new products, so that we are able to deliver in line with the expected growing demand. This process is progressing as planned, and we do not expect to experience delivery problems. Acquisition of Ovizio In the autumn of 2024, we acquired one of our competitors, Ovizio, in order to strengthen our market position. The acquisition was primarily a technology acquisition. We have subsequently operationally integrated Ovizio into ChemoMetec and are in the process of integrating relevant parts of its technology into our XcytoMatic products. The acquisition has given us access to exciting technology and new patents as well as to selected new customers. Ovizio has now been fully integrated into the ChemoMetec organisation, and we expect to further use the technology in future XcytoMatic products. Strengthening the organisation The development of our new products and our focus on the bioprocessing market and automation also mean that ChemoMetec's organisation is undergoing a gradual transformation from focusing on classic cell counting to increasingly focusing on automation and software. With this transformation arises a need for other skill sets within the organisation. We have less need for biology expertise and greater need for technological expertise, for example. The transformation process is underway, and it is a priority for us to hire employees with a performance-oriented mindset. At ChemoMetec, we are proud to have a culture that encourages hard work and gives everyone a chance, regardless of age or gender, as long as they have the right mindset. We are fortunate that many people are interested in being employed in a company like ChemoMetec, and we have been overwhelmed by the number of individuals who have approached us about joining ChemoMetec and our culture. We consciously reduced our headcount during the year, and this should not least be seen in the light of our optimisation efforts across the organisation and our focus on being as few people as possible in order to remove bureaucracy and maintain strong innovative power. Good starting point for the coming year The results achieved in the past year provide a good basis on which to continue our positive development in the coming year. We will further accelerate the marketing of our new products, complete the development of another member of the XcytoMatic family, the XcytoMatic 50, continue working on the development of our Sample Manage- ment System and strengthen our software development while also maintaining focus on our existing business. We are very confident that our new solutions will make a strong contribution to our growth in the coming years. However, it is important to bear in mind that the Xcyto- Matic instruments address bioprocessing customers and customers with automation projects - and that the validation and decision-making process in this segment is relatively long. It will therefore require a degree of patience and a constant eye on the ball to unlock the expected great potential of our new products. We are in the middle of this process, and I would like to thank all our employees for their dedicated efforts over the past year and express my full confidence that as a team we will be able to take advantage of the favourable business opportunities that we see for ChemoMetec over the coming years. Also, a big thank you to our customers - it is a pleasure working with you. Finally, I would like to thank our shareholders for supporting ChemoMetec. Martin Helbo Behrens CEO Read more about our new products and their uses on page 20 Read more about automation on page 32. ‌ChemoMetec at a glance ChemoMetec specialises in the development, production and sale of high-quality analytical equipment that optimises our customers' workflows and ensures accurate, consistent and fast measurements within cell counting and analysis. The analytical equipment is used in a wide range of areas - including cell and gene therapy, cancer and stem cell research, development and production of pharmaceuticals and production control and quality control of animal semen, beer and milk. Our analytical equipment is based on a unique technology platform, and our innovative solutions all have in common the fact that they simplify complex analytical processes. Our latest analytical equipment furthermore meets our customers' demand for automation of cell counting and analysis processes. Using our technology, our customers achieve best-in-class analytical results - in terms of both consistency and precision. Innovative analytical equipment Our analytical equipment primarily comprises analytical instruments and related units for preparing and storing cell samples during measurement. We also offer various services, including assistance in connection with custom-ers' validation of our analytical equipment, installation and annual servicing of our customers' instruments. ChemoMetec's primary focus is on the customer, and we strive to provide the best and most qualified customer support. The combination of unique technology and efficient customer support is key to having a content and loyal customer base - which in turn is a prerequisite for building a profitable and steadily growing business within ChemoMetec's business areas. Market leading position We are a global company and among the largest in our field. We sell our analytical equipment in more than 100 countries. We work closely with customers and experts within cell counting to continuously develop new solutions that are tailored to our customers' needs - and that contribute to achieving the best possible analytical results and most efficient processes. Close customer relations Proximity to our markets and to our customers is a cornerstone of our business. This ensures that we are able to deliver the right solutions and provide good customer service. Management's review | ChemoMetec at a glance Annual Report 2024/25 | ChemoMetec 7 International presence Our head office is located in in Allerød, north of Copenhagen, Denmark. We also have three offices in the United States, one in Belgium and our own sales and support organisations in France, the Benelux countries, the UK, Germany and Asia. Office Sales and support organisation Distributor 59% Revenue USA/Canada (2023/24: 59%) Revenue Europe 32% (2023/24: 32%) Revenue 9% Rest of world (ROW) (2023/24: 9%) ‌ Management's review | Highlights 2024/25 Annual Report 2024/25 | ChemoMetec 8 Highlights 2024/25 Revenue DKKm 495.6 EBITDA DKKm 258.0 EBITDA margin % 52.1 Earnings per share DKK 10.7 Revenue by geography 9% 22% 39% 6.4 percentage points 37% 32% USA/Canada 59% Europe Rest of world (ROW) Revenue DKKm Operating profit (EBITDA) and EBITDA margin DKKm Cash flow from operating activities DKKm Earnings per share DKKm Revenue by business area 281 427 442 407 496 223 186 57 136 52 52 48 46 251 258 108 177 154 129 207 5.1 9.2 10.3 7.8 10.7 8% 92% Life science research, Cell and gene therapy and Bioprocessing (LCB) Production control and quality control of animal semen, beer and milk Revenue by product group 20/21 21/22 22/23 23/24 24/25 20/21 21/22 22/23 23/24 24/25 EBITDA EBITDA margin 20/21 21/22 22/23 23/24 24/25 20/21 21/22 22/23 23/24 24/25 23% 1% 29% 47% Instruments Consumables Services Other ‌ Management's review | Financial highlights Annual Report 2024/25 | ChemoMetec 9 Financial highlights DKK'000 2024/25 2023/24 2022/23 2021/22 2020/21 Income statement Revenue 495,572 407,350 442,274 427,160 281,127 EBITDA 258,048 186,175 251,030 222,892 135,630 EBIT 236,516 168,966 230,561 202,854 116,023 Net financials 3,497 7,620 -201 365 -3,290 Profit for the year 186,405 136,284 178,667 159,469 88,354 Comprehensive income 177,639 136,689 175,904 159,943 88,330 Balance sheet Assets 828,046 676,673 657,976 501,273 344,909 Net working capital 109,407 118,266 103,856 63,088 45,658 Invested capital 373,378 293,008 293,008 203,439 138,991 Equity 673,355 565,316 565,316 357,205 264,977 Net interest-bearing debt -335,444 -291,991 -309,411 -202,230 -147,751 Cash flows - from operating activities 207,449 129,002 154,146 176,860 107,901 - from investing activities -85,520 -43,494 -40,831 -56,046 -24,683 - from financing activities -74,963 -105,715 -2,925 -69,012 -26,037 2024/25 2023/24 2022/23 2021/22 2020/21 Financial ratios EBITDA margin (%) 52.1 45.7 56.8 52.2 48.2 EBIT margin (%) 47.7 41.5 52.1 47.5 41.3 Tax rate (%) 22.3 22.8 22.4 21.5 21.6 Return on invested capital (%) 71.0 60.7 98.6 118.5 90.2 Revenue/Invested capital 1.3 1.4 1.7 2.1 2.0 Net interest-bearing debt/EBITDA -1.3 -1.6 -1.2 -0.9 -1.1 Financial gearing -0.5 -0.5 -0.6 -0.6 -0.6 Return on equity (%) 30.1 24.9 39.5 51.4 37.8 Average number of employees 184 173 164 147 128 Number of employees at 30 June 170 174 167 155 147 Per share ratios Market price per share at 30 June (DKK) 585 305 466 757 844 Earnings per share (DKK) 10.71 7.80 10.27 9.16 5.08 Book value per share (DKK) 38.7 32.5 30.6 20.5 15.2 Dividend paid per share 4.0 6.0 - 4.0 1.5 Definitions of financial ratios are set out in note 5.1 to the financial statements Guidance for 2025/26 DKKm Guidance for 2025/26 Realised 2024/25 Revenue 545-565 495.6 Operating profit (EBITDA) 295-315 258.0 ‌Management's review | Our business‌ Annual Report 2024/25 | ChemoMetec 10 Our business Our business model Our markets Our products ‌Our business model‌ - how we create value We aim to offer solutions that create value for our customers by contributing to the automation and optimisation of their cell counting and workflows, particularly in the cell and gene therapy and bioprocessing segments - to contribute to lower production costs, better products and better and broader patient treatment. We cover the entire value chain from development and production to sales and servicing - and we offer a broad portfolio of analytical equipment. We endeavour to operate our business sustainably and establish a solid foundation for future value creation for the benefit of ChemoMetec, our customers, partners, employees and shareholders as well as society at large. At ChemoMetec, we believe that the combination of innovative products and first-class customer support is the key to high customer satisfaction. This, in turn, creates a valuable branding of ChemoMetec and our products and a basis for continued consolidation of our market position and international presence. Resources Core business Value creation Our highly skilled employees and their know-how and expertise Our brand and patented, unique analytical technology Capital and scalable production facilities Development High-tech production Specialised sales force and support Efficient and innovative solutions to optimise and automate customer workflows Competent customer advice and support About 170 employees, who are offered challenging and meaningful jobs, attractive career opportunities for the right employee profiles and equal opportunities for personal and professional growth Stakeholder relations and partnerships, including engagement with customers, partners and experts Platform: Employees - Technology - Sustainability Read more on the following pages Export revenue - export ratio of more than 97% Shareholder return ChemoMetec's and employees' tax payments Development The core of our business is the development of innovative solutions and high-quality equipment for cell counting and analysis. We continually develop our technology platform and strengthen our entire portfolio of products based on customer feedback to enable us to offer new and more comprehensive solutions that meet our customers' ever-growing demand for modern analytical equipment. We develop new solutions and improve existing ones in close contact with our customers, which enables us to identify their demands and unfulfilled needs. This close interaction between ChemoMetec and our customers increases the probability of our solutions being successful. To achieve our strategic development goals, it is essential that we create and maintain an innovative environment across the organisation, and we continually invest in and develop the skills of our employees. Our solutions are primarily developed at our head office in Denmark by our own specialists in all relevant areas and selected consultants. The close collaboration between different professional groups plus the size of our organisation, our clear product focus and proximity to our customers give us great agility and flexibility in the development processes. When we develop new products, we take a long-term perspective to ensure that they are useful for a number of years. One reason for this is that ChemoMetec's products are typically used in areas that require validation and in which they are an integral part of a workflow. Validation is a time-consuming process, and our customers therefore demand analytical equipment with long durability. Fundamentally, all our instruments are constructed using the same basic technology comprising the use of a special-purpose fluorescence microscope with a built-in camera. With relatively low magnification, the instruments record images of the prepared cell samples, which are then automatically analysed using ChemoMetec's proprietary image analysis software. Over the past few years, our technology platform has undergone major upgrades, not least of our proprietary software, which includes the use of AI for cell counting purposes. Our new XcytoMatic instruments and the new NC-203 instrument are all based on a brand-new software platform. The XcytoMatic instruments are furthermore designed to be integrated into a more or less fully automated production flow, as our customers express a great wish and need to streamline production and reduce costs associated with the production of pharmaceuticals, including cell and gene therapies. The instruments are typically used in the bioprocessing and cell and gene therapy segments. We expect the development of software solutions to play an increasingly important role for ChemoMetec in the coming years. The development of additional solutions to facilitate further automation of our customers' sample management is expected to become equally important. ChemoMetec's unique technologies are an important competitive factor, and patenting has therefore been a central part of the strategy since ChemoMetec's establishment in 1997. Over time, ChemoMetec has invested substantial amounts and resources in patent protection of its technologies and expects to continue this strategy in future. ChemoMetec has a total of 24 patent families, with 163 patents taken out in selected countries, including 25 in the USA. High-tech production Instruments, related equipment and consumables are produced in-house. We continually adapt and optimise our production and improve efficiency in step with the developing demand for our products and our and our customers' increasing focus on sustainability. Instruments and consumables are produced in accordance with customer and end-user requirements and standards. We regularly invest in our production to enhance the efficiency of processes and optimise consumption of raw materials and energy. The aim is to make our production ever more sustainable, particularly in terms of reducing its climate footprint. All instruments are produced by ChemoMetec. We use a large number of (primarily European) sub-suppliers, for example for the manufacture of circuit boards, whereas management, assembly, calibration and quality control are carried out at our facilities in Allerød, Denmark. The fully automated production of cassettes also takes place at ChemoMetec's premises in Allerød, while the plastic parts used in the production of cassettes are produced by various Danish injection moulding companies using fully automated facilities. Most recently, we have established a new production line for cassettes, which is currently being commissioned. It is capable of even more efficient production than the existing production lines, as the manual packing of bags in cartons will now be fully automated. The glass counting chambers that are used for the NC-250 and the NC-3000 are currently manufactured by a business partner in the Netherlands. In the latter part of 2024, ChemoMetec initiated in-house semi-automated production of glass analysis chambers used with the relaunched Xcyto 5. ChemoMetec's instruments, including the XcytoMatic instruments, also use a range of ready-made reagents, which are applied in the various cell counts and analyses. The production of these reagents has been outsourced to a Danish manufacturer, while ChemoMetec is in charge of quality control. The various test kits used to check the instruments, e.g. when they are serviced, are produced at a fully automated facility at ChemoMetec's premises in Allerød. To accommodate the rapidly growing demand for these products, we are currently establishing a completely new, modern production line, which is expected to become operational in the coming financial year. Production quality assurance is a key priority for ChemoMetec. Our customers expect and require the products we supply to be of high quality and uniformity, as they are generally an important part of the customers' value chain. Our customers check the quality of our products on an ongoing basis in connection with their daily use, but also by requiring us to fill in questionnaires about our internal business processes and procedures. To be permitted to continue supplying our customers with products, ChemoMetec must comply with their demands. ChemoMetec's products are packaged in cardboard, plastics and foils and are transported mainly by road and by sea. We continually improve our packaging and transport to optimise our climate footprint throughout the value chain. In transit between ChemoMetec's warehouses in Allerød and Long Island, USA, goods are almost exclusively transported by sea. Specialised sales force and support Our sales and support functions serve to strengthen ChemoMetec's market position through targeted sales efforts and high-quality customer service and support. Sales and distribution of our products are handled by our in-house sales organisations in the USA and Europe, while we collaborate with distributors in other markets, including Asia. This set-up ensures targeted and effective efforts as well as proximity to our customers in the main markets - allowing us to service our customers and gain in-depth knowledge of our customers' needs and the general market trends across our business segments. Across ChemoMetec's own sales organisation, we have established a common, structured sales process encompassing every step from identification of prospective customers by means of sophisticated analytical tools to the final sale. Selling our solutions requires great technical knowledge and insight into our customers' activities. Many of our sales staff therefore hold a higher technical degree to ensure professional, knowledge-based sales. Customer service and support is a high priority for us. This, along with our robust quality instruments and local presence in our main markets, is the key to loyal, satisfied customers who widely use and repurchase ChemoMetec's analytical instruments and consumables. Our offering of service contracts and other services also strengthens our customer relationships and ongoing support. We make every effort to act quickly and efficiently when our customers request assistance. Our technicians are close to our customers, and we offer assistance by highly educated staff, all the way up to the R&D department, if needed. As we grow, we are very mindful of maintaining this proximity to our customers. Our dedicated sales efforts and emphasis on customer service have given us a solid foothold in our individual markets and allows us to continually grow our customer base. Our customer group encompasses nearly all top 50 companies in our most important business area, LCB (Life science research, Cell and gene therapy and Bioprocessing). Not least, we have successfully built a unique position within cell and gene therapy and gained a strong position in the US market. This platform gives us a good foundation for future growth in both existing and new business areas. Cell counting market - ChemoMetec's presence and the application of ChemoMetec's products* Other, including production companies Production control and quality control of animal semen, beer and milk Research & Development (private and public) Cell and gene therapy Stem cell research Cancer research Bioprocessing Hospital laboratories Cell and gene therapy Pharmaceutical and biotech companies Cell and gene therapy Bioprocessing Development Production control and process control Production development and process development * The overview is not exhaustive but includes the most important areas in which ChemoMetec is active. ‌Our markets‌ ChemoMetec's analytical equipment is applied for cell counting and analysis in a broad range of areas - in both private and public businesses and across companies' value chains from research to production. The most important market segments for ChemoMetec are cell and gene therapy and bioprocessing. In recent years, growing numbers of new cell and gene therapy treatments have been developed and approved, and several of these have now reached the production phase. However, the costs of producing these therapies are relatively high at present, and customers therefore focus strongly on cutting costs. The only sufficiently effective way to do this is through increased automation of production processes. Consequently, the industry is currently very focused on exploring possibilities of automating and integrating the various production processes, including cell counting. The bioprocessing market is a large and growing market, which until now has been of limited importance to ChemoMetec, as the market has been dominated by a customers, however, the task is to replace already validated products with the XM40, which requires time and patience. In the coming years, ChemoMetec expects the cell counting market to grow significantly in both the cell and gene therapy and bioprocessing segments, and the growth in the cell and gene therapy segment is expected to be driven by the current surge in automation within the production of therapies. We expect automation to become a large and important market for ChemoMetec in the future. In recent years, ChemoMetec has won substantial market shares and is now assessed to be among the two largest players in the global cell counting market. Going forward, ChemoMetec is expected to remain well positioned to capitalise on the expected growth in our market areas - both as a result of the attractive market position of our existing products and current and future new product launches. ChemoMetec thus expects to continue to win further market shares within cell counting in the LCB market. few major suppliers of cell counting solutions that have been integrated into customers' workflows over a number of years. These products have been capable of analysing multiple samples at a time, which ChemoMetec's cassette-based solutions have not been able to do. However, with the new XcytoMatic products, we are now able to offer bioprocessing customers new cell counting concepts that can manage multiple samples at a time and instruments that can be integrated into more or less automated production processes. With the launch of the XM40, ChemoMetec thus plans to capture a significant market share within cell counting in this market, and the area is expected to play an important future role for ChemoMetec. The XM40 particularly targets bioprocessing customers (new product in an existing market), while the XM30 and the XM50 mainly target cell and gene therapy customers looking to automate their production processes (new market and new product). The current market trend within cell and gene therapy of focusing on automation creates particularly favourable opportunities for ChemoMetec and the new products, the XM30 and XM50, especially as few or no competitors currently offer comparable solutions. For our bioprocessing Market trends and opportunities Market trends Opportunities Strict compliance and process documentation requirements Calls for automation of analytical processes Development of new therapies, including cell and gene therapies Demand for sustainable products ChemoMetec's analytical equipment is typically used in areas subject to strict internal and external compliance requirements (e.g. FDA CFR Title 21 Part 11). There is a demand for analytical equipment able to perform fast, automatic and very precise analysis. There is also a growing need for automation of the overall workflow in connection with analysis processes in order to streamline the processes and thus reduce production costs. The industry continually seeks to develop new therapies aimed at a wide range of diseases, for example in the "personalised medicine" area. The therapies in this field include cell and gene therapies, which require cell counting both during the development process and as the therapies subsequently reach the production phase and come into use. Our customers wish to contribute to driving a more sustainable development and therefore demand products that accommodate this goal. ChemoMetec offers products with the right specifications, and which can be validated with the fewest possible resources and interact with other parts of a customer's given workflow. Products in the XcytoMatic family are designed with a view to forming an integral part our customers' fully automated solutions. Our analytical equipment can be easily integrated into the overall workflow. Over the past several years, ChemoMetec has established an attractive position in the cell and gene therapy market - and a solid platform from which to capitalise on the expected growth in this area, including in bioprocessing. ChemoMetec is continually striving to reduce the climate impact of its products, for example by optimising and reducing the use of plastics. ChemoMetec's solutions Reagents and excipients Software Assays Instruments Service contracts Test kits Consumables Installation ‌Our products‌ Our analytical equipment comprises analytical instruments and related consumables, such as auxiliary reagents, plastic cassettes or glass counting chambers. In principle, the instruments themselves are based on a fluorescence microscope with a built-in camera, and the images produced are analysed automatically using proprietary software. Our technology allows for high-precision counting and analysis of large numbers of cells at competitive prices, and our instruments in combination with the consumables ensure customers a particularly user-friendly workflow and a very robust analysis concept. Our new cell counting instruments apply integrated artificial intelligence (AI) to support the cell counting process. Future expected uses of AI include contributing to the development of new algorithms to classify cell types and determine cell viability and to discover anomalies or abnormalities in cell structures. Our disposable cassette for the NucleoCounter instruments is key to our success within cell counting. The cassettes are constructed as a kind of mini lab. First, the sample comprising cells is loaded into the cassette, where it comes into contact with the dyes, which are contained within the cassette from the production of the cassette. This analysis concept is simpler and more robust and precise than the ones used by competing cell counters, and it eliminates many of the factors typically causing measurement variations and inconsistencies, as all cassettes are calibrated individually during the production process. Our new XcytoMatic instruments, on the other hand, are used together with either a reusable measuring cuvette (flow-through cuvette), a sample carousel or samples in microplate format. The new concepts have been introduced for two reasons. Firstly, the new concepts support integration of cell counting into various automation solutions, and secondly, they accommodate our custom-ers' and ChemoMetec's wish to use less plastics and thus reduce the climate impact of our instruments and their use. See also the section "New measuring instruments" on the following page. In addition to this, ChemoMetec offers customers a number of other products, including test kits to verify that the instruments are functioning correctly. We also offer customers the option of adding on a range of software solutions and a number of services in the form of service contracts and assistance in installing analytical equipment. The new XcytoMatic 40 instrument is equipped with a 24-sample carousel. ‌New measuring instruments Automation Bioprocessing Cell and gene therapy XcytoMatic 40 (XM40) The XM40 is an instrument in the same family as the XM30, and the two instruments largely share the same technologies. They generally differ in that the XM40 applies a sample carousel that can hold 24 samples, while the XM30 applies a stationary sample cone. The XM40 was developed for integration into semi-automated production flows, primarily in the bioprocessing market, which traditionally uses carousel-based instruments. With the XM40, customers get fast and accurate cell counting of 24 samples of up to 100 million cells per ml. XcytoMatic 30 (XM30) The XM30 is an automated cell counter based on a brand-new software platform, which is also used in the XM40, the coming XM50 and the NC- 203. The XM30 has been developed for integration into fully automated production flows so as to streamline production and significantly reduce our customers' production costs. The XM30 is based on the application of a reusable measuring cuvette, which is cleaned using a rinsing solution between measurements. A cell sample is loaded into the XM30 by an external robotic arm (or manually), after which the AI-based cell count is performed. XcytoMatic 50 (XM50) The XM50 is a fully automated cell counter based on the same technology platform as the XM30 and the XM40. Like the XM30, it is intended to be integrated into a fully automated production flow. In the XM50, samples are loaded in a microplate, which can hold up to 96 samples. The XM50 is equipped with a robotic arm, with which the instrument extracts the samples from the microplates. The XM50 is expected to be released for sale (soft launch) in early 2026. Xcyto 5 The Xcyto 5 addresses both the cell and gene therapy market and the bioprocessing market. The instrument is an image-based cell analyser that can automatically identify and mark the individual cells and provide accurate information about in which cells - and where in the cells - the various fluorescent markers are located. Following customer feedback, we are currently upgrading the instrument to support integration into an automated production flow. NucleoCounter NC-203 The NC-203 is an upgraded version of the NC-202. Like the NC-202, the instrument applies disposable cassettes, and it has furthermore been upgraded with new technology from the XcytoMatic platform. The main elements of the upgrade are a new analytical module, a new software platform and the use of contrast microscopy combined with AI-based image analysis. Other measuring instruments NucleoCounter NucleoCounter NucleoCounter NucleoCounter NC-200 The NC-200 offers fast and simple cell counting that can be performed using a cassette without the need for manual addition of either dyes or auxiliary reagents. In addition, the analyses provide information on average cell sizes and cell clumping. The NC-200 is mainly used in cell and gene therapy, and it analyses samples in about 45-50 seconds. NC-202 The NC-202 is an upgrade of the NC-200 and is based on the advanced Xcyto technology, which means that we can offer our customers one cell counting protocol for most mammalian cell types. Like the NC-200, the NC-202 is primarily used in the cell and gene therapy area. The NC-202 is based on cassette technology, and it analyses samples in about 25 seconds. NC-250 The NC-250 is a competitive instrument offering fast and cost-effective high-precision cell counting. In addition to cell counting, the NC-250 can also perform cell cycle analysis. The NC-250 uses disposable counting chambers made of glass with two or eight chambers. NC-3000 The NC-3000 is an easy-to-operate, flexible analysis platform that can be used both for cell counting and various types of cell analysis, e.g. analysis of cell cycle and programmed cell death. The NC-3000 uses both cassettes and disposable counting chambers made of glass with two or eight chambers. Read more about all the products on our website. ‌Management's review | Performance in 2024/25 and guidance‌ Annual Report 2024/25 | ChemoMetec 22 Performance in 2024/25 and guidance Business performance Product development Financial review Guidance for 2025/26 ‌Business performance‌ ChemoMetec's revenue grew by 22% to DKK 495.6 million in 2024/25, and operating profit (EBITDA) increased by 39% to DKK 258.0 million. The positive revenue performance reflected an increase in sales of both instruments, consumables and services. Following an initial gradual launch of the new XcytoMatic products in 2023/24, the product launch is proceeding as planned. A number of organisational changes were made during the year with the aim of strengthening the basis for future growth, and this impacted costs. is significantly longer for automation projects than we have previously experienced with our products. Sales of the instruments on the XcytoMatic platform totalled DKK 27.7 million (2023/24: DKK 8,3 million), of which sales in the North American market accounted for DKK 21.1 million. Read more about the XcytoMatic products in the "Our products" and "Product development" sections of this report. Sales of consumables and services are mainly driven by the number of instruments on the market, including the number of new instruments put into service by customers during the year. Sales of consumables increased by 20% In 2024/25, revenue grew from DKK 407.4 million to DKK 495.6 million, a 22% increase. Of total revenue, the business area LCB (Life science research, Cell and gene therapy and Bioprocessing) accounted for 92% and the market for production control and quality control of animal semen, beer and milk accounted for 8%. ChemoMetec's performance improved in both markets with increases in revenue of 23% in the LCB market and 6% in the market for production control and quality control of animal semen, beer and milk. Sales of instruments rose by 22%, which meant that the positive trend from the previous years resumed following a fall in sales of instruments in 2023/24. The performance was mainly driven by revenue in the North American market, which saw a 44% increase in sales of instruments. Letter" and "Our markets" sections of this report. In the latter part of the financial year, however, we observed growing uncertainty among some of our existing and potential customers caused by geopolitical challenges -particularly the uncertainty surrounding future US government policies, including the tariff regime. At ChemoMetec, we have launched a number of activities with a view to adapting our business to the new increased tariffs on goods imported into the USA. Read more about the expected limited effect of the new tariffs in the "Guidance for 2025/26" section of this report. The continued launch of the new instruments on the Xcy-toMatic platform proceeded as planned in the past year. Both existing and new customers express a strong interest in automating production of therapies, and ChemoMetec is making a dedicated effort to build a strong position in from DKK 192.5 million to DKK 230.8 million. Revenue by business area DKKm 500 400 300 200 Life science research, The increase in sales of instruments was the result of more positive market conditions, which particularly supported our sales of NucleoCounter products in the past year. Read more about the market conditions in the "CEO this market. In the past year, we have seen a significant increase in the number of validations of our XcytoMatic products with potential future customers, and we have gained a good insight into the validation process, which 100 0 20/21 21/22 22/23 23/24 24/25 Cell and gene therapy and Bioprocessing (LCB) Production control and quality control of animal semen, beer and milk In the past year, we also focused on establishing and renewing service contracts across all customer segments, which resulted in a 25% increase in sales of services. The range of service products will be expanded as the market penetration of products on the XcytoMatic platform increases. To strengthen the basis for future growth and the launch of the new products, the organisation was adjusted in Denmark and internationally, primarily in the second half of 2024/25. The adjustment mainly consisted in a number of changes to the sales organisation and a streamlining of administrative functions. The integration of Ovizio was completed towards the end of the financial year. Subsequently, Ovizio's headcount was significantly reduced, which meant the dismissal of ten employees. Restructuring costs totalled DKK 11.8 million in 2024/25. The average number of full-time employees increased from 173 to 184 in 2024/25, mainly as a result of the Ovizio acquisition. At 30 June 2025, the total number of employees in continuing employment was 170. USA/Canada Revenue (DKK) 292.8 million (2023/24: DKK 239.4 million) Growth 22% (2023/24: -9%) Share of revenue 59% (2023/24: 59%) Revenue in the North American market grew by 22% in 2024/25 to DKK 292.8 million, compared with a 9% decline the previous year. Revenue in the USA/Canada accounted for 59% of total revenue, unchanged compared with the previous year. The increase in revenue reflected a growing number of cell and gene therapy trials, a market in which ChemoMetec has established a strong position. Also, new therapies have been approved, and several therapies have been put into production. This resulted in strong sales of our NucleoCounter products, particularly to existing customers. Sales of products on the XcytoMatic platform also contributed to the increase in revenue. We see substantial interest in automating the production of cell and gene therapies among US customers, and ChemoMetec is making a dedicated effort to contribute to this process, including participating in customers' validation processes. Sales of instruments increased by 44% in 2024/25. The increase was seen across the range of instruments. The NC-200 and NC-202 still generate the greatest amount of revenue, followed by instruments on the XcytoMatic platform. More than 70% of revenue was generated from sales of consumables and services. Sales of consumables increased by 13% from DKK 114.5 million to DKK 129.5 million in 2024/25. In the service business (service con- tracts, installations, relocations, etc.), revenue increased by 21% from DKK 66.3 million to DKK 80.3 million. ChemoMetec still has its US head office in Long Island, New York, and sales offices in San Diego, California, and Boston, Massachusetts. This strategic network ensures a wide reach and close contact with customers across important regions and will be essential to the gradual launch of the new products. We continue to see favourable long-term growth prospects in the North American market, both in cell and gene therapy and in bioprocessing, and the surge in automation is expected to support this growth. We will therefore continue to invest in expanding our US organisation. However, in the second half of the financial year, we perceived growing uncertainty among some of our existing and potential customers, which could potentially affect their level of activity. We expect our new products on the XcytoMatic platform as well as our existing products and services to drive growth in the North American market in the coming years. Revenue by product group DKKm 300 250 200 150 100 50 0 20/21 21/22 22/23 23/24 24/25 Instruments Consumables Services Other Europe Revenue (DKK) 158.9 million (2023/24: DKK 130.9 million) Growth 21% (2023/24: 1%) Share of revenue 32% (2023/24: 32%) In Europe, revenue was up by 21% in 2024/25 from DKK 130.9 million to DKK 158.9 million. Over 90% of total revenue in Europe was generated in the LCB market, and our typical customer has activities in the cell and gene therapy area. The revenue performance was driven by an increase in sales of consumables and services of 33% and 35%, respectively. Sales of instruments were unchanged compared with 2023/24. The NC-202 remains the best-selling instrument in the European market, followed by the NC-200 and instruments on the XcytoMatic platform. ChemoMetec's cell counters are still in good demand in the European market, and the NC-202 instrument is particularly attractive to many laboratories across the LCB segment. In the past year, we restructured the European sales organisation with a view to ensuring sustained focus on identifying new customer leads and customer needs within cell and gene therapy and bioprocessing and introducing services to existing customers. ChemoMetec has local sales offices in the five major geographical markets. The local sales offices undertake sales and support functions in their respective geographical areas of responsibility, supported by experts and specialists, such as product managers and technicians, at the head office in Allerød. The main part (72%) of European revenue is generated in the top five countries: the UK, the Netherlands, Denmark, Germany and Belgium. Revenue in top five countries - Europe (DKKm) UK 33.3 27.4 22% Netherlands 24.4 18.0 36% Denmark 21.1 13.3 59% Germany 18.9 14.2 33% Belgium 17.2 11.5 50% Top five 2024/25 2023/24 Growth United Kingdom: With a 22% revenue increase, mainly attributable to increased sales of consumables, the UK maintained its position as ChemoMetec's largest European market in 2024/25. The Netherlands: In the Netherlands, revenue was up by 36% in 2024/25, following 33% growth in 2023/24, which meant that the Netherlands remained the second-largest market in Europe in 2024/25. ChemoMetec has a sales office in the Netherlands covering this market, in which Revenue by product group DKKm 180 150 120 90 60 30 0 20/21 21/22 22/23 23/24 24/25 Instruments Consumables Services Other several North American companies have established operations in recent years. Denmark: In the Danish market, revenue grew by 59% in 2024/25 to DKK 21.1 million, making Denmark the third-largest European market, after entering the top five the previous year. The increase was mainly driven by sales of products on the XcytoMatic platform. Germany: In Germany, revenue grew by 33% to DKK 18.9 million in 2024/25, making Germany the fourth-largest European market. The increase related to sales of both instruments, consumables and services. Belgium: Revenue in the Belgian market was up by 49% from DKK 11.5 million in 2023/24 to DKK 17.2 million in 2024/25, and Belgium entered the top five in 2024/25. In the rest of Europe, i.e. the countries outside the top five, revenue declined by 3%. The countries outside the top five accounted for just over a fourth of total European revenue. We expect that the new products on the XcytoMatic platform and existing products and services will drive growth also in the European market in the years ahead. Rest of World (ROW) Revenue (DKK) 43.8 million (2023/24: DKK 37.1 million) Growth 18% (2023/24: -26%) Share of revenue 9% 2023/24 9%) Revenue in ROW increased by 18% from DKK 37.1 million to DKK 43.8 million in 2024/25, and the relative share of revenue was unchanged at 9%. As sales of services are limited in ROW, the increase was mainly driven by sales of instruments and consumables, which rose by 13% and 22%, respectively, in 2024/25. In recent years, ChemoMetec has been committed to consolidating its market-leading position in cell counting and analysis in the Asian market via targeted initiatives, including a strengthening of relations with key stakeholders in the Asian market. The strategy has been - and remains -to build strong strategic relations with established distributors, who facilitate our products' access to the local regional markets. This model enables ChemoMetec to engage with researchers, clinical staff and laboratory staff via the distributors' networks and offer solutions covering their specific cell counting and analysis needs. Experienced ChemoMetec specialists assist and train local sales personnel in ChemoMetec's products and sales methods through both training sessions and joint customer visits. This strengthens our collaboration with distributors and customers in the region. Revenue in top five countries - ROW (DKKm) China 11.9 9.4 27% Japan 9.8 9.4 4% South Korea 5.6 5.1 10% Taiwan 3.9 2.6 50% India 1.9 1.8 6% Top five 2024/25 2023/24 Growth The five largest markets in ROW in 2024/25 were China, Japan, South Korea, Taiwan and India, all of which saw revenue growth in 2024/25. In the past financial year, the top five countries accounted for 76% of ROW revenue. China: China is ChemoMetec's largest market in the ROW segment. Revenue in the Chinese market was up by 27% to DKK 11.9 million in 2024/25. In China, sales are generated through close collaboration between a distributor and local sales agents supported by sales staff and product specialists at the head office in Allerød. Revenue by product group DKKm 60 50 40 30 20 10 0 20/21 21/22 22/23 23/24 24/25 Instruments Consumables Services Other Performance by business area ChemoMetec's two most important business areas/market areas Business area 1 LCB market: Life science research, Cell and gene therapy and Bioprocessing Instruments: NC-200, NC-202, NC-203, NC-250, NC-3000, NC-100, XM30/XM40/XM50 and Xcyto 5 Business area 2 Production control and quality control of animal semen, beer and milk Instruments: SP-100, NC-202 and SCC-100 Business area 1 Life science research, Cell and gene therapy and Bioprocessing (LCB market) Revenue (DKK) 456.8 million (2023/24: DKK 370.9 million) Growth 23% (2023/24: -9%) Share of revenue 92% (2023/24: 91%) ChemoMetec's most important business area is sales of cell counting and analytical equipment to three sub-areas, A) Life science research , B) Cell and gene therapy and C) Bioprocessing . In the following, these three market areas are jointly referred to as the LCB market. We define bioprocessing as any production and production control process that uses biological organisms for manufacturing of pharmaceuticals and for medical therapies. Process development, selection/screening of cell cultures and upscaling of production are also considered bioprocessing. In other words, bioprocessing comprises all upstream and downstream processes in the manufacturing of pharmaceuticals using biological organisms. In practical terms, bioprocessing also includes large parts of the cell and gene therapy market, which in principle also includes the production of a pharmaceutical product using a biological organism. For now, we have decided to distinguish between bioprocessing and cell and gene therapy, although technological advances in terms of automation are creating a large overlap between the two areas. Revenue by product group DKKm 500 400 300 200 100 0 20/21 21/22 22/23 23/24 24/25 Instruments Consumables Services Other In the LCB market, revenue grew by 23% from DKK 370.9 million to DKK 456.8 million in 2024/25. This is ChemoMetec's largest business area by far, and the LCB market today accounts for 92% of total revenue. The positive performance in the past year is a reflection of the improved market conditions and the successful gradual launch of our new XcytoMatic products. Revenue growth was thus driven by sales of products related to the Nucleo-Counter platform and the launch of our new XcytoMatic products. ChemoMetec's performance in the LCB market has until now been driven primarily by developments in the cell and gene therapy sector. Cell and gene therapy is a relatively new type of therapy that has the potential to treat many diseases for which there is currently no, or no effective, treatment. The so-called CAR-T method is the most prevalent of these therapies, and after the FDA approved it for the treatment of certain forms of cancer in 2017, the development of new therapies and commercialisation of such innovative forms of treatment has gathered momentum. There is also increasing focus on developing treatments based on cell and gene therapy in new disease areas, not least rare diseases. Against this background, we are optimistic about the long-term potential of cell and gene therapy, and we are therefore continuing our dedicated efforts to adapt our products and solutions to the requirements of our many customers in this field. Read more about developments in ChemoMetec's markets in the "Our markets" section of this report. As a result of dedicated efforts over a number of years, ChemoMetec has successfully attained a very attractive market position in this area, which requires cell counting throughout the process from development to the production of the specific treatments for patients.

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