Esperite N.V.: Trading update Q1-2016

April 28, 2016 Financial Reports

Genoma grows and widens its footprint on the market.
CryoSave newly configured, launches new products for Q2 2016.
Effectiveness of cost saving programs and optimisation of processes show positive results.

Zutphen, the Netherlands – 28 April 2016

Esperite: Ready to bounce.

2015 was a transition year for Esperite with the launch of Genoma and the focus to achieve full reliability, scalability and the business processes optimization required on such advance technology.

Results in 2016 confirm Genoma as a marketing success with a double-digit monthly growth since inception.

CryoSave has proven reliance in adverse environment, and gave the competitive edge to Genoma enabling its timely market deployment.

The acquisition of Inkaryo has delivered to Esperite even more than expected, enhancing the reliability of Genoma products and unique selling proposition.

To achieve all the above, and as a result of it, costs in 2015 had -and still have- a significant impact on the P&L but are all being corrected.

The announced strategy of ESPERITE consists of 3 major pillars:

Launch Genoma sales by the existing CryoSave network and boost the sales by developing new markets and products
Cost saving by consolidation and centralization business infrastructure in Switzerland to improve organization efficiency and leverage synergies (referred to as project Galaxy)
Development of innovative technology more efficient and more accurate compared to the existing technology (eKaryotyping)

On all the three pillars enormous progress has been made during 2015. This explained the negative EBITDA amounting to EUR 4.9 million for last year due to investments made in market development and getting project Galaxy done, i.e. transfer of all CryoSave activities in Belgium to Geneva. Only remains the long term Bio banking.

Sales

We have noticed in Q1 the confirmation of the strategy. The sales for Genoma compared to the sales of Q4 2015 increased by more than 40% for the quarter. Development of the Genoma sales over the last 5 quarters was as follows:

genoma_sales_q1_2015_q1_2016

Stem Cell sales have been decreased over the last years mainly due to a declining market demanding driven by the economic circumstances which faced the Group in their main territories. It was expected that sales levels would stabilize during 2015. These expectations have materialized by the end of 2015 and maintain more clear in Q1 2016.

stemcell_sales_q1_2015_q1_2016

On a consolidated level sales did growth relative less because the absolute sales levels of Genoma are less compared to the absolute sales levels of Stem Cell. The group has a solid basis now to build on the positive trend.

consolidated_sales_q1_2015_q1_2016

Earnings

Focus of the Group among others is to maximize the earnings for shareholders. In this respect focus in 2015 was beside increase the consolidated revenue also to lower the cost of production. In the first quarter of 2016 a big milestone was achieved the consolidation of the processing activities in the Geneva. As a result the facility will be more cost effective. Other cost savings could be achieved by the increased purchase power at several suppliers. The effects of these activities started in Q1 2016 however the impact was limited in this quarter. The financial impacts are expected to be proved further from the second quarter 2016. The consolidated gross profit developed as follows:

consolidated_gross profit_q1_2015_q1_2016

In 2015 the Group acquired Inkaryo. This acquisition avails ESPERITE the most advanced bioinformatics analytical processing of NGS data for the detection and quantification of chromosomal numerical and structural abnormalities, improving and expanding the performance and resolution of the entire present and future genetic tests portfolio. Genoma has dramatically improved the current processes and related costs. Strong additional cost savings for same performance schedules before end of Q2 2016.





To learn more about the ESPERITE Group, or to book an interview with CEO Mr. Frédéric Amar: +31 575 548 998 - ir@esperite.com or visit the website at www.esperite.com.

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