Fourth quarter 2024

• Order intake increased 13 percent to MSEK 167.5 (148.5). 13 percent growth also at constant exchange rates.
• Revenue decreased by 12 percent to MSEK 121.5 (138.4). The decrease was 11 percent at constant exchange rates.
• EBIT amounted to MSEK 20.4 (11.5), corresponding to a margin of 17 (8) percent. Adjusted for one-time expenses last year, EBIT for Q4 2023 amounted to MSEK 24.8 and profitability was 18 percent.
• Profit after tax amounted to MSEK 14.4 (15.9).
• Earnings per share amounted to SEK 0.43 (0.47).
• Cash flow from operating activities amounted to MSEK 33.0 (50.8).

January-December 2024

• Order intake decreased by 7 percent to MSEK 486.1 (524.5). The decrease was 7 percent also at constant exchange rates.
• The order backlog at quarter end amounted to MSEK 758.9 (763.2).
• Revenue increased by 10 percent to MSEK 469.0 (424.6) The increase was 11 percent at constant exchange rates.
• EBIT amounted to MSEK 70.0 (44.2), corresponding to a margin of 15 (10) percent.
• Profit after tax amounted to MSEK 56.5 (35.5).
• Earnings per share amounted to SEK 1.67 (1.05).
• Cash flow from operating activities amounted to MSEK 29.9 (33.4).
• The Board of Directors proposes that no dividend is paid for the 2024 financial year.

CEO comment
Order intake for the quarter was up in EMEA and Americas, driven by patient safety and workflow efficiency. In the fourth quarter we relentlessly worked to capture the demand, and our order intake increased by 13 percent, with substantial service growth. The large installed base of C-RAD systems world-wide provides a growing base for service contracts. Revenue declined with 12 percent in the fourth quarter and APAC could not fully compensate for lower revenue in EMEA and Americas. For the full year, revenue increased by 10 percent and the gross margin and operating profit also improved.

The year ended with a recovery in order intake to 168 MSEK (149 MSEK), a 13 percent growth compared to Q4 last year and the majority came from EMEA. Order intake for Services increased by 68 percent to 52 MSEK (31 MSEK). The large installed base C-RAD systems constitute a growing base for service agreements. The conversion to revenue was in Q4 and revenue declined by 12 percent to 121 MSEK (138 MSEK). APAC generated strong revenue growth but could not compensate for lower revenue and fewer installations in EMEA and Americas in the quarter. Profitability for the quarter continued to be good.

Macroeconomic challenges impacted healthcare investments throughout the year. Order intake was down by 7 percent to 486 MSEK (524 MSEK), softened by an improved fourth quarter. Revenue for the full year increased by 10 percent to 469 MSEK (425 MSEK), mainly driven by strong deliveries in APAC. The operating profit increased by 58 percent to 70 MSEK and the EBIT margin was 15 percent, a slight increase compared to the adjusted EBIT margin of 14 percent last year. Our long-term ambition is to accelerate sales growth combined with innovative product investments and good cost control.

Order intake growth in the Americas
It is positive that a majority of the orders in the US this quarter were SGRT systems within Varian's installed base of linear accelerators. We also received a proton order from a large Florida clinic. Larger customer sites sometimes include proton facilities, where C-RAD can provide SGRT across both linear accelerators and proton systems. Order intake for the Americas increased by 14 percent to 26 MSEK (23 MSEK) in Q4 and by 38 percent to 107 MSEK (77 MSEK) for the full year. Early in Q4 we also received our first large order, 10 MSEK, in Mexico through our partner Elekta. This was an important milestone for our operations in the emerging market of Latin America. After year end, I visited Miami Cancer Centre in Florida and could proudly witness how our systems have become a critical part of their workflow for almost all of their cancer treatments.

Recovery in order intake for EMEA in Q4
In EMEA, the market has been challenging throughout the year and the important German market continues to be slow. Our focus on sales and marketing activities and increased active support for our customers in their clinical use started to pay off in Q4. Order intake increased by 33 percent to 84 MSEK (63 MSEK), a recovery from a sluggish market in 2024. In the quarter, we secured multiple long-term services and application training contracts, e g in the advanced markets of Sweden, Germany, Spain, and Italy.

Demand for SGRT in APAC
Our operations in APAC had a successful year, and the SGRT adoption is growing across the region, which was evident when I met customers in China, South Korea and Japan in November. A large number of installations took place in the quarter and revenue in APAC increased by 112 percent to 63 MSEK (30 MSEK) in Q4. The order intake was weaker and amounted to 57 MSEK (63 MSEK) for the quarter, corresponding to a decrease of 8 percent. For the full year, the order intake grew by 10 percent.

Looking back at 2024
Our global team has achieved several milestones during the year:

Built partnerships with our customers. During the year we have increased the number of reference installations in the USA and EMEA, an essential part of our growth strategy. Our sales in APAC have gained momentum, and during the year we have won important orders in China, Korea, Japan and Southeast Asia.

More systems increased the base for service agreements. Over 1,900 (1,500) systems were supplied globally. The number of systems with service contract increased significantly in 2024. A positive development that gives us the opportunity to build long-term customer relationships and good references. A high proportion of service agreements is positive as it provides good references and increases recurring revenue, which provides stability.

Strengthened market offering. Supreme product integration with all leading linear accelerators, proton and CT suppliers, supports our customers in standardizing their clinical workflow independent of supplier. Research collaborations are an important part of our development process. For example, one of Sweden's leading university hospitals, Lund, has published a study on DIBH (Deep Inspiration Breathhold) with our SGRT system. The DIBH solution VitalHold™, focusing breast cancer and developed together with Accuray, is in clinical use in the US, Japan, India, France and Thailand. SRS (Stereotactic Radiosurgery) is a highly precise form of radiation therapy primarily used to treat small, well-defined tumors in areas such as the brain and spine. The implementation of SRS at customer site, including the C-RAD solution, was audited and approved by an independent third party in Europe, showcasing our solution’s robustness and accuracy.

Outlook
We will continue to build a solid base for profitable growth. Our strategy is to focus on the US, advanced markets in EMEA and selected emerging markets and continued focus on product launches and faster conversion of order backlog into revenue and cash flow. This will be achieved by further increasing the number of reference clinics and our market presence in the USA and EMEA.
Investment in product innovation and the development of a stronger sales and delivery organization are foundational prerequisites for increasing sales and driving a sustainably profitable business. I look forward to updating you on our strategic progress and priorities.

In conclusion, my heartfelt thanks to our customers, partners, shareholders and the brilliant C-RAD team. We look forward to 2025 and are eager to help our customers in making a difference for cancer patients worldwide.

Cecilia de Leeuw, President and CEO

Please find the full report at: Financial Reports | C-RAD

This document has been prepared in both a Swedish and English version. In the event of
any deviations, the Swedish version shall prevail.

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