revenio group corporation’s interim report...the distribution agreement signed with iridex...

REVENIO GROUP CORPORATION’S

INTERIM REPORT JANUARY – JUNE

H12015

Interim Report January 1 – June 30, 2015

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April–June 2015 in brief, continuing Group functions:• Growthstrongerthanexpected,thecompanyimprovesit’sFinancialGuidanceforthefiscalyear • NetsaleswereEUR4.9(3.6)million,anincreaseof36.8%• TheoperatingresultwasEUR1.5million(0.9),ariseof71.8%• DilutedearningspersharewereEUR0.15(0.10)andundilutedearningspersharewereEUR0.14(0.10)• Noncorebusinessesdivested• IcaretostartdistributionpartnershipwithIridexCorporationintheUS

January–June 2015 in brief, continuing Group functions: • NetsaleswereEUR9.5(7.3)million,anincreaseof30.6% • TheoperatingresultwasEUR2.9million(2.0),ariseof46.7% • DilutedandundilutedearningspersharewereEUR0,30(0.22) • ReveniolicensedinFebruarytechnologiesforthescreening,diagnosisandmonitoringofasthmaandskincancer,andthe projects are progressing according to plan

Key figures, continuing functions, MEUR: 1-6/2015 1-6/2014 Change-%

Netsales,Group 9.5 7.3 30.6Operatingprofit,Group 2.9 2.0 46.7Netsales,HealthTech 9.5 7.3 30.6Operatingprofit,HealthTech 3.6 2.7 32.6Undilutedearningspershare 0,30 0.22 36.4Dilutedearningspershare 0,30 0.22 36.4Cashflowfromoperatingactivities 4.0 1.1 367.0

30 June 2015 30 June 2014 Change, %- point

Equityratio-% 79.0 72.6 6.4Gearing-% -38,6 -5.7 32.9

MajorgrowthinnetsalesandoperatingprofitdrivenbytheUSmarket, companyimprovesfinancialguidance

Newfinancialguidance Reveniochangesitsfinancialguidancefor2015asfollows: Forthefiscalyear2015theGroup’snetsalesandoperatingprofitareestimatedtogrowsignificantlycomparedtopreviousyear. Thegrowthofnetsalesinsecondhalfoftheyearisexpectedtocontinuetobestrongbutinpercentagetermslowerthaninthefirsthalfoftheyear. Investmentsinnewbusinessoperationsrelatedtohealthtech,whichhaveanimpactonconsolidatedoperatingprofitandcashflow.Nosignificantinvestmentswillbemadein2015.

Earlierfinancialguidance ThenetsalesandoperatingprofitofIcareareexpectedtogrowfromlastyear.Investmentsinnewbusinessoperationsrelatedtohealthtech,whichhaveanimpactonconsolidatedoperatingprofitandcashflow.Nosignificantinvestmentswillbemadein2015.


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Operatingprofit,groupEURmillionNetsales,groupEURmillion

TradeinRevenioSharesH2/2015:

million shares

1.4 27.1 17.9 % 5.932million euros of shares shareholders

Dilutedearningspershare, continuingoperationsEUR

Equityratio%*

Q12015

Q22015

Q42014

Q32014

Q22014

Q12014

Q42013

4.64.9 5.0

3.8 3.6 3.74.1

0

1

2

3

4

5

6

Q12015

Q22015

Q42014

Q32014

Q22014

Q12014

Q42013

0.0

0.5

1.0

1.5

2.0

1.41.5

1.31.1

1.31.1

0.9

0

20

40

60

80

100

79.069.7

62.4

77.272.6

63.7 66.1

Q12015

Q22015

Q42014

Q32014

Q22014

Q12014

Q42013

0.15

0.10 0.100.12

0.130.150.15

0.00

0.05

0.10

0.15

0.20

Q12015

Q22015

Q42014

Q32014

Q22014

Q12014

Q42013

*Thefiguresarepresentedbasedonthesituation attheendofeachreviewperiod.


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Olli-PekkaSalovaara,PresidentandCEO,commentson secondquarterresults:“Our fantastic second quarter demonstrates thestrength of Icare’s constantly growing marketpresence.CertaininterpretationissuesrelatedtoUShealthcarelegislationoccurredinthesecondquarter of 2014, which slowed the health caredevice trade.Wehavenowput theseproblemsfirmly behind us and reached our normal salesvolumeintheUnitedStates.The30.6%growthinnetsalesand46.7%growthofoperatingprofitachieved in thefirsthalfof2015giveusasolidfoundation for achieving our growth and profit-ability targets for this year, and for implementing planneddevelopmentprojectswithcashflowfi-nancing.

The divestment of our last non-core company,which operated in the software business, lets us focus all our resources on health technology and thepromotionofourprojects in thatsector.Thescreening technology projects for skin cancerandasthmaarebothproceedingonschedule.Itshould be noted, however, that we do not expect a commercial impact from these products for a fewyearsyet.

The sales of the Oscare Sono™ osteoporosismeasurement device are still small in scale, but are developing in the right direction. We havebegun consolidating distribution channels and extending them to new geographical areas and initiated cooperation with research institutes, and Ibelievethesemeasureswill increasethesalesofOscarebeforetheyearisout.

ThepartnershipagreementwithUSdeviceman-ufacturer Iridexand theagreementwithTopconMedicalregardingUSopticianchainsprovideuswithopportunitiestosignificantlyexpandourdis-tributioncoverageintheUnitedStates.

Themarketing forour IcareHOMEtonometer,designed for theself-monitoringof intraocularpressure, isproceedingac-cordingtoplan.TheclinicaltestsrelatedtotheUSFDAlicenceapplicationwerecompletedbytheendofthereviewperiod.ThecompanyispreparingtheFDAlicenceapplicationofHOMEequipmentanditwillbefiledassoonastheapplicationiscompleted.”


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Business trends, January–June 2015RevenioHealthTech TheRevenioHealthTechsegmentcomprisesthebusinessoperationsofIcareFinlandOy,RevenioResearchOy,focusingonresearchanddevelopmentprojects,andaffiliateOscareMedicalOy.Revenio’sroleinthescreeningprocessistopro-ducesimpleandeasy-to-usemethods,devicesandtechnologiestoreplaceold-fashionedandinefficientoperatingmodels.Revenioaimsatdevelopingevenmoreefficientandeasilyadoptedmethodsfortheearly-stagedetectionofdiseaseswithsignificanceforpublichealth.ThefocusofRevenio’sscreeningtechnologyisontheearlydetectionofglaucoma,osteoporo-sis,skincancerandasthma,andthemonitoringoftheseduringthetreatmentprocess.

InJanuary–June,thenetsalesoftheRevenioHealthTechsegmenttotaledEUR9.5million(7.3),up30.6%onthepreviousyear.TheoperatingprofitforthesameperiodwasEUR3.6million(2.7),representinggrowthof33%.

Thechangesincurrencyexchangerateshavehadafavorableimpactonthegrowthofnetsalesandoperatingprofitin2015.Afterthefirsthalfof2015,theexchangerateoftheUSdollarhadincreasedby22.8%fromthecomparisonperiod.USDdenominatedsalesconstituteover40%ofthenetsalesforthefirsthalfof2015.Thus,nearly10%ofthegrowthinnetsalesisduetoexchangeratechanges.

Icare Thefirsthalfof2015wasstrongforIcarefromtheperspectivesofbothgrowthandprofitability.Thecorrespondingperiodin2014sawsomechallengesresultingfrompoliticaldevelopmentsandsnowstormsinthecompany’smainmarketarea,theUnitedStates,whichkeptthereferencefiguresfortheperiodmodest.Icarehasnowregaineditsnormalgrowthrate,howev-er.InJanuary–June,saleswerebriskespeciallyintheUnitedStatesandEurope.

ThevalueofprobesaleswasEUR2.3(1.7)million,whichis34%morethaninthecorrespondingperiodlastyear.Thegrowthofsalesindicatesthatourgrowingstockofinstalleddevicesremaininactiveuse.Inthelongterm,probesaleswillgeneratesolid,recurringbusinessforIcareandbuildafoundationfordevicesales.Probesalesareexpectedtoconstituteasmuchas25–30%ofIcare’snetsalesinthenexttwoorthreeyears.

TheBrazilianHealthSurveillanceAgencyANVISAgrantedasalespermittoIcare’sTA01itonometerinMarch.Acorrespond-ingsalespermitwasobtainedinChinainJanuary.SalestoBrazilandChinabeganduringthereviewperiod,andsignificantgrowthisexpectedinthesecountriesinthecomingyears.

ThesalesofIcareHOMEtonometersaregoingaccordingtoplan.ThedevicealreadyhassalespermitsinEurope,Japan,AustraliaandCanada.LeadingexpertshavelaunchednewstudiesusingtheHOMEtonometerduringthereviewperiod,andnewstudyenquiriesarereceivedonamonthlybasis.Thisreflectstheinterestofprofessionalsinthedeviceandthenewtreatmentprotocolsitenables.Thefirsttrialresultshavebeenpublishedinmajorpublications,andexpertshavegiventheproductpositiveevaluations.IcareHOMEisanentirelynovelproductonthemarket,andtherewerenoexistingtreat-mentprotocolsinvolvingsuchdevices.Forthisreason,expertstatementsandstudieshaveapronouncedimportance.

TheclinicaltestsrelatedtotheUSFDAlicenceapplicationwerecompletedbytheendofthereviewperiod.ThecompanyispreparingtheFDAlicenceapplicationofHOMEequipmentanditwillbefiledassoonastheapplicationiscompleted.

Inadditiontoopticianchains,devicemanufacturershavealsoexpressedaninterestinIcare’sproductsrelatedtothemeas-urementofintraocularpressure.ThedistributionagreementsignedwithIridexCorporationinMay,whichwillenablethefurtherexpansionofIcare’smarketcoverageintheUnitedStates,isaprimeexampleofthisinterest.Afterthereviewperiod,inJuly,IcaresignedadistributoragreementfortheUSmarketwithTopconMedical.Accordingtothisagreement,TopconwillserveasIcare’sdistributortotenmajoropticianchainsintheUS.

Icaresupplementeditsorganizationinthereviewperiod.NewSalesandMarketingManagerTomiKarvoandR&DDirectorMikaSalkolawillstartworkinAugust.ThecurrentR&DDirectorofIcareFinlandOy,AriKukkonen,willtakeupthedutiesofR&DDirectorofRevenioResearchOy.


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RevenioResearchOyThesubsidiaryRevenioResearchOywasestablishedinlate2014inordertomanagetheR&DprojectsoftheRevenioGroup.Thecompanyfocusesonhealthtech-relatedR&Dprojectswiththepurposeofidentifyingandcommercializingnewhealthtechproducts.

Thedevelopmentofproductideasforthediagnosis,screeningandmonitoringofskincancerandasthmaisproceedinginlinewiththetargetssetforthecurrentyear.

Theproductscreatedasaresultoftheprojectsareonlyexpectedtohavecommercialsignificanceinafewyearsfromnow.

Skin cancerDuringthereviewperiod,inJanuary,Revenioannouncedthelicensingofatechnologyrelatedtothedetectionofskincancer.ReveniosignedalicenseagreementwithVTTandtheUniversityofJyväskyläconcerningpatentsandknow-howforskincan-cerdiagnosis.ThefirstprototypeoftheskincancerdetectiondeviceunderwentclinicaltrialsinthedermatologydepartmentofPäijät-HämeCentralHospitalintheperiod2013–2014andhasbeenusedtoanalyzemorethan100patientsduringthistime.Theresultshavebeenextremelyencouraging:thedevicehasaclearlywiderimagingareaandgreaterprecisionthandevicesalreadyonthemarket.Threenewprototypesmanufacturedonthebasisoffeedbackreceivedfromthetrialwillbecompletedin2015andputtoclinicalmeasurementwork.

AsthmaDuringthereviewperiod,inFebruary,Revenioannouncedthelicensingofatechnologyforthescreening,diagnosisandmoni-toringofasthma.ThelicensingagreementwithTideMedicalOyallowsforthedevelopmentandcommercializationofproductsintendedforthescreening,diagnosis,monitoringandtreatmentofasthma.Diagnosingasthmaisdifficult,particularlyinsmallchildren,andisbasedonthephysician’ssubjectiveview.AprototypeofRevenio’sdevicehasbeenusedinHelsinkiUniversityCentralHospitalandTampereUniversityHospitalin2013–2014.Morethan150patientshaveparticipatedinfourseparatetrials,andastudyofthemedicationoutcomesiscurrentlyinprogress;theresultsareextremelypromising.Thedevicemeas-urestheexpiratoryflowofbreathingasthechildsleepsatnight.Themeasurementsdetectthechangesinrespirationthataretypicalofasthma,whichaidsthephysicianindiagnosingtheconditionanddeterminingtheoptimalmedicationforit.

Oscare Medical Oy Thelaunchoftheosteoporosisdetection,screeningandmonitoringdeviceOscareSono™manufacturedbyOscareMedi-calinwhichtheRevenioGrouphasa53%shareofownership,isproceedingaccordingtoplan.Thissmall,mobiledeviceallowsforthecost-efficientscreeningofaconsiderablyhighernumberofpeopleandreducestheincidenceofavoidablefractures.ThedevicedoesnotchallengetheDXAmeasurementsystemthatisconsideredthestandardinthefield,butfunc-tionsasaneffectivescreeningmethodinsupportofthesystem.TheOscareMedicalmeasurementmethodanddevicehavebeengrantedpatentsinJapanandChina.

InApril,OscareMedicalsignedaresearchagreementwiththeUniversityofGenevaforacomparisonstudyofmeasure-mentstakenwithOscaretothosegivenbyahighresolutionperipheralquantitativecomputedtomographydevice.ThescientistshavebeentrainedintheuseofOscareduringthereviewperiod,andworkwillbegininthesummerof2015.

Duringthefirsthalfof2015,thecompany’sfocuswasontheexpansionoftheretailnetworkinEurope.Attheendofthereviewperiod,OscarehasretailersinfiveEuropeancountriesandaretailerthatcovers10countriesintheMiddleEast.OscarehasalsobeenactivelyexhibitedatindustryeventsinFinlandandEurope.Thefeedbackreceivedfromprofessionalshasbeenextremelypositive.

Revenio,discontinuedoperations InDecember2014,RevenioannouncedthatitwillselloffitsholdingsinBoomerangerBoatsOyandDoneSoftwareSolu-tionsOy,whichrepresenteditsTechnologyandServicessegment,andtransferthecompaniestoavailable-for-salediscon-tinuedoperations.

Duringthereviewperiod,inFebruary,ReveniosoldtheentiresharecapitalofspecialRIBboatmanufacturerBoomerangerBoatsOytoInternationalGoldenGroup.Duringthereviewperiod,inMay,ReveniosoldtheentiresharecapitalofDoneSoftwareSolutionsOy.Revenioisfocusingonhealthtechnologyinaccordancewithitsstrategy,andthesaleofcompaniesnotoperatinginthiscorefieldofbusinesssupportstherealizationofthestrategy.


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Netsales,profitabilityandresult,continuingfunctionsRevenioGroup’sconsolidatednetsalesinQ1–2/2015totaledEUR9.5million(7.3).Thisrepresentednetsalesgrowthof30.6%.ProfitbeforetaxescametoEUR2.9million(2.0),or30.6%(28.0%)percentofnetsales.TheprofitfortheperiodwasEUR2.4million(1.7),or24.4%(24.0)ofnetsales,anincreaseof49.3%.UndilutedearningspersharewereEUR0.30(0.22)anddilutedearningspersharewereEUR0.30(0.22).EquitypersharewasEUR1.62(1.91).

GROUP KEY FIGURES AND RATIOS (MEUR) 1-6/2015 4-6/2015 1-6/2014 4-6/2014

Netsales,continuingoperations 9.5 4.9 7.3 3.6Ebitda,continuingoperations 3.1 1,6 2.2 1.0Ebitda-%,continuingoperations 33.3 33,1 30.5 28.2Operatingprofit,continuingoperations 2.9 1,5 2.0 0.9Operatingprofit-%,continuingoperations 31.0 31,0 27.6 24.7Pre-taxprofit,continuingoperations 2.9 1,4 2.0 0.9Pre-taxprofit-%,continuingoperations 30.1 26.6 28.0 25.1Netprofitfromdiscontinuedoperations 2.0 1.7 0.0 0.0Netprofit,continuingoperations 2.4 1.2 1.7 0.8Netprofit-%,continuingoperations 24.4 22.2 24.0 22.0Grosscapitalexpenditure 1.0 0.5 0.6 0.3Grosscapitalexpenditure-% 10.4 9.8 8.3 8.4R&Dcosts 0.5 0.1 0.6 0.3R&Dcosts-%fromnetsales 5.5 2.4 8.3 9.2Gearing-% -38,6 -38,6 -5.7 -5.7Equityratio-% 79,0 79,0 72.6 72.6Returnoninvestment-%(ROI) 34,4 39,3 28.3 22.1Returnonequity-%(ROE) 46,6 43,3 30.9 29.9Undilutedearningspershare,EUR,continuingoperations 0.30 0.14 0.22 0.10Dilutedearningspershare,EUR,continuingoperations 0.30 0.15 0.22 0.10Undilutedearningspershare,EUR,discontinuedoperations 0.25 0.21 0.06 0.06Dilutedearningspershare,EUR,discontinuedoperations 0.25 0.21 0.06 0.06Equitypershare,EUR 1.6 1.6 1.9 1.9Averageno.ofemployees,continuingoperations 30 30 29 29Cashflowfromoperatingactivities 4.0 0.9 1.1 1.0Cashflowfromdiscontinuedactivities 0.1 -0.2 0.2 0.4Cashflowfrominvestingactivities 1.8 1.1 -0.6 -0.3Netcashusedinfinancingactivities -3.8 -0.7 -2.6 -2.4Totalcashflow 2.1 1.1 -1.9 -1.3


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NET SALES AND OPERATING PROFIT BY QUARTER (MEUR)

Q2/2015 Q1/2015 Q4/2014 Q3/2014 Q2/2014 Q1/2013 Q4/2013 Q3/2013

Netsales 4,9 4.6 5.0 3.8 3.6 3.7 4.1 3.0Oper.Profit 1,5 1.4 1.3 1.1 0.9 1.1 1.3 1.0Oper.profit.-% 31 31 26 29 25 30 31 32

THE NET SALES, MARGIN, AND PROFIT, BY SEGMENT AND QUARTER, EXCLUDING NON-RECURRING ITEMS, WERE AS FOLLOWS: MEUR Q2/15 Q1/15 Q4/14 Q3/14 Q2/14 Q1/14 Q4/13 Q3/13Netsales: RevenioHealthTech 4,9 4.6 5.0 3.8 3.6 3.7 4.1 3.0Total 4,9 4.6 5.0 3.8 3.6 3.7 4.1 3.0Segmentprofitmargin: RevenioHealthTech 1,9 1.7 1.6 1.3 1.1 1.4 1.7 1.2Total 1,9 1.7 1.6 1.3 1.1 1.4 1.7 1.2Parentco.expenses -0.4 -0.3 -0.3 -0.2 -0.2 -0.3 -0.5 -0.2Operatingprofit 1,5 1.4 1.3 1.1 0.9 1.1 1.3 1.0Operatingprofit-% 31 31 26 29 25 30 31 32

Balancesheet,financialpositionandinvestmentsTheconsolidatedbalancesheettotalstoodatEUR16.0(21.4)milliononJune30,2015.Shareholders’equitycametoEUR12.9(15.1)millionattheendofthereviewperiod.Attheendofthereportingperiod,netinterest-bearingliabilitiesamountedtoEUR0.6(1.8)millionandleveragingstoodat-38,6%(-5.7%).Theconsolidatedequityratiowas79,0%(72.6%).TheGroup’sliquidassetsamountedtoEUR6.2(2.7)millionattheendofthereportingperiod.TheGroup’sfinancialpositionremainedstableintheperiodunderreview.

CashflowfromcontinuingoperationstotaledEUR4.0(1.1)millioninthereviewperiod.TheGroup’spurchasesofPPEandintangibleassetstotaledEUR1.0million(0.6).Theseinvestmentswereconcentratedprimarilyonproductdevelopment.


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PersonnelTheannualizedaveragenumberofpersonnelemployedbytheGroupincontinuingoperationsduringtheperiodamountedto30(29).Attheendoftheperiod,thenumberofemployeeswas30(29).

M.Sc.Econ.RobinPulkkinen(born1980)hasbeenappointedasCFOandmemberofthemanagementgroupasofJuly15,2015.PulkkinenreportstotheRevenioGroup’sPresidentandCEOOlli-PekkaSalovaara.

AVERAGE NO. OF EMPLOYEES BY SEGMENTS: 30 June 2015 30 June 2014 ChangeRevenioHealthTech 28 24 4ParentCompany 2 5 -3GroupTotal 30 29 1

Wages,salaries,andotherremunerationpaidforcontinuingoperationsduringtheperiodtotaledEUR1.3million(1.1).

Shares,sharecapitalandmanagementholdingsOnJune30,2015,theRevenioGroupCorporation’sfullypaid-upsharecapitalregisteredwiththeTradeRegisterwasEUR5,314,918.72andthenumberofsharestotaled7,935,289.

Duringthereportingperiod,thenumberofsharesincreasedby2,211followingsubscriptionsmadeonthebasisofthe2007stockoptionscheme.Series2007Aoptionrightswereusedtosubscribefor0shares,2007Boptionrightstosubscribefor0sharesand2007Coptionsrightstosubscribefor2,211shares.ThesubscriptionperiodforSeries2007AoptionsendedonMay1,2013andthatforSeries2007BoptionsendedonNovember1,2014.Theoutstanding2007Coptionscanbeusedtosubscribeforatotalof44,119sharesuntilthecloseofthesubscriptionperiodonMay1,2016.

Thecompanyhasoneclassofshare,andallsharesconferthesamevotingrightsandanequalrighttodividendsandthecompany’sfunds.OnJune30,2015,thePresident&CEO,membersoftheBoardofDirectorsandtheircloselyrelatedpartiesheld11.83%ofthecompany’sshares(939,125shares)and0.0%oftheoptionrights.

Option rights Thecompanyhasacorporateoptionschemethatbeganin2007.OnthebasisoftheshareissueauthorizationapprovedbytheAnnualGeneralMeetingofApril3,2007,theBoardofDirectorsoftheRevenioGroupCorporationdecided,onNovember23,2007,onanewcorporateoptionschemecomprisingamaximumof3,684,365optionrights.Tenoptionrightsentitletheholdertosubscribeforone(1)RevenioGroupCorporationshare.OnJune30,2015,theproportionofsharesthatcanstillbesubscribedforonthebasisoftheoptionrightsissuedrepresentedamaximumof0.6percentofthecompany’ssharesandvotes,onceallnewsharessubscribedforwiththeseoptionrightshavebeenregistered.Newsharessubscribedforviatheoptionprogramentitletheholdertoadividendfromtheyearofsubscriptiononwards.

Theoptionrightsaredividedintothreeseries:A(1,684,365optionrights),B(1,000,000optionrights)andC(1,000,000optionrights).Thesubscriptionperiodsforoptionsareasfollows:SeriesA,May1,2009–May1,2013;SeriesB,November1,2010–November1,2014;andSeriesC,May1,2012–May1,2016.Thesharesubscriptionpricewillbethetrade-weightedaveragepriceduringtheperiodNovember1–30,2007multipliedbyten(EUR5.99,SeriesA),April1–30,2009multipliedbyten(EUR1.75,SeriesB),andNovember1–30,2010multipliedbyten(EUR1.24,SeriesC).Nonewoptionswereissuedtothepersonnelduringthereviewperiod.

TradingonNASDAQOMXHelsinkiDuringJanuary1–June30,2015,theRevenioGroupCorporation’sshareturnoverontheNASDAQOMXHelsinkiexchangetotaledEUR27.1(22.8)million,representing1.4(1.6)millionsharesor17.9%(20.4)ofallsharesoutstanding.ThehighesttradingpricewasEUR23.15(17.20)andthelowestEUR14.37(11.32).Attheendoftheperiod,theclosingpricewasEUR19.37(15.95),andtheaveragesharepricefortheperiodwasEUR18.54(14.22).TheRevenioGroupCorporation’smarketvaluestoodatEUR153.7million(125.7)onJune30,2015.


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AnnualgeneralmeetingandboardauthorizationsineffectTheAnnualGeneralMeetingelectedfivemembers to theBoardofDirectors.RolfFryckman,AriKohonen,PekkaRönkä,KyöstiKakkonenandPekkaTammelawerere-electedasBoardmembers.AtitsmeetingheldaftertheAnnualGeneralMeet-ing,theBoardofDirectorsre-electedPekkaTammelaasChairmanoftheBoard.

TheAGMdecidedthattheChairmanoftheBoardshouldbepaidadirector’sfeeofEUR36,000perannumandotherBoardmembersadirector’sfeeofEUR18,000perannum.Atotalof40percentofBoardmembers’emolumentswillbepaidoutintheformofcompanyshares,while60percentwillcompriseamonetarypayment.

TheAGMre-appointedPricewaterhouseCoopersOy,AuthorizedPublicAccountants,asthecompany’sauditorswithSamuliPerälä,AuthorizedPublicAccountant,asprincipalauditor.TheAGMdecidedtocompensatetheauditorsuponthepresenta-tionofareasonableinvoice.

TheAGMacceptedtheBoard’sproposalonprofitdistribution,accordingtowhichtheparentcompany’sprofitforthefinancialperiod,EUR1,047,421.70,willbeaddedtoretainedearnings,andadividendofEUR0.45persharewillbepaid.

TheAnnualGeneralMeetingrescindedtheearlierauthorizationtobuyback785,047ofthecompany’sownshares,andau-thorizedtheBoardofDirectorstobuybackamaximumof793,207ofthecompany’sownsharesfollowingtheapprovalofthereversesharesplit,eitherinoneorseveralblocks,usingthecompany’sunrestrictedequity,inwhichcaseanybuybackwillreducetheamountofdistributableearnings.Thecompanymaybuybacksharesinordertodevelopitscapitalstructure,inordertofinanceandimplementanycorporateacquisitionsorothertransactions,andtoimplementshare-basedincentiveplansorotherwisedisposeoforcancelthem.

TheCompanymaybuybackshares,basedona. Abidsubmittedtoallshareholdersonequaltermsandconditionsinproportiontotheircurrentholdingsincompany sharesandatthesameprice,decidedbytheBoardofDirectors;or

b. InpublictradingonmarketplaceswhoserulesandregulationsallowtheCompanytotradeinitsownshares.Insucha case,theCompanybuysbacksharesthroughadirectedpurchase,thatis,inaproportionotherthanitsshareholders’ holdingsinCompanyshares,withtheconsiderationforthesharesbasedontheirpubliclyquotedmarketprice.

ThisauthorizationisvaliduntilApril30,2016.

TheAGMauthorizedtheBoardofDirectors,followingtheapprovalofthereversesharesplit,todecideontheissuanceofamaximumof793,207sharesortograntspecialrights(includingstockoptions)conferringentitlementtoshares,asreferredtoinSection1ofChapter10oftheLimitedLiabilityCompaniesAct,inoneorseveraltranches.

Thisauthorizationwasgrantedforthepurposeoffinancingandimplementinganyprospectivecorporateacquisitionsorothertransactions,implementingthecompany’sshare-basedincentiveschemes,orforotherpurposesdeterminedbytheBoard.

ItgrantstheBoardtherighttodecideonalltermsandconditionsgoverningthesaidshareissueandthegrantingofspecialrights,includingthesubscribersorgranteesofthespecialrights,andtheconsiderationpayable.Theauthorizationalsoin-cludestherighttowaiveshareholders’pre-emptivesubscriptionrightsandcoverstheissueofnewsharesandthetransferofanysharesthatmaybeheldbythecompany.

ThisauthorizationisvaliduntilApril30,2016.ThisauthorizationshallsupersedetheauthorizationtodecideonanissuanceofnewsharesandonthegrantingofspecialrightsgivingentitlementtosharesgrantedattheAGMofMarch20,2014.

TheAGMratifiedthefollowingamendmenttosection2oftheArticlesofAssociation:

“Thecompanyengages in the trade, intermediation, research,productdevelopment,commercializationandmarketingofdevicesandequipment,products,methodsandservicesrelatedtohealthcareandhealthtechnology,trainingandconsult-ingrelatedtohealthcare,salesofexpertservices,andotherbusinessrelatedorcomparabletothehealthcaresector.Thecompany may act as a Group parent company and produce administration services, engage in other business operations, own andmanagerealestateandsecuritiesandotherfinancialinstruments,andtradeinthem.Thecompanymayengageintheaforementionedactivityeitherdirectlyorthroughsubsidiariesandassociatedcompanies.”


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BoardofDirectorsandAuditorsThemembersoftheBoardofDirectorsareRolfFryckman,AriKohonen,PekkaRönkä,KyöstiKakkonenandPekkaTammela,whoservesasChairman.

PricewaterhouseCoopersOy,AuthorizedPublicAccountants,servesasthecompany’sAuditors,withSamuliPerälä,Author-izedPublicAccountant,asPrincipalAuditor.

RisksanduncertaintyfactorsTheGroup’smajorbusinessrisksarepresentedinitsfinancialstatementbulletinofFebruary12,2015.Nochangesintheseriskshaveoccurredsincethereleaseofthebulletin.

Major events after the review period InJuly,RevenioGroupOyjsubsidiaryIcareFinlandOysignedadistributoragreementwithTopconMedicalSystems(laterreferredtoasTopcon),whichisaUS-basedsubsidiaryofJapaneseTopconCorporation.Accordingtotheagreement,TopconwillserveasIcare’sdistributortotenmajoropticianchainsintheUS.Topconisoneoftheleadingmanufacturersofoph-thalmologicaldevicesintheworld.TopconhasacomprehensivesalesnetworkintheUnitedStatesandlong-termsupplierrelationshipswithseveralmajoropticianchains.

RevenioGroupCorporation’sBoardofDirectorsmadeadecisiononAugust5,2015togrowtheGroup’sManagementTeam.AsofAugust6,2015Revenio’sManagementTeamisfollowing:CEOOlli-PekkaSalovaara(chair),IcareFinland’sCEOTimoHilden,RevenioGroup’sCFORobinPulkkinenandnewmembers,IcareFinland’sSalesandMarketingDirectorTomiKarvo,IcareFinland’sR&DDirectorAriKukkonenandasanexternalcommunicationsspecialistTiinaOlkkonen.

StatementofaccountingpoliciesThisinterimreporthasbeenpreparedincompliancewithIAS34InterimFinancialReporting.Inpreparingthisinterimreport,RevenioGroupCorporationhasappliedthesameaccountingprinciplesasinitsfinancialstatementsfor2014,withtheexcep-tionthat,asof1January2015,theGrouphasimplementedtheneworrevisedstandardsandIFRICinterpretationspublishedbyIASBandspecifiedintheGroup’saccountingprinciplesforitsfinancialstatementsfor2014.

Thefiguresareunaudited.


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CONSOLIDATED COMPREHENSIVEINCOME STATEMENT (MEUR) 1-6/2015 1-6/2014 1-12/2014

NETSALES 9.5 7.3 16.0Materialsandservices -2.4 -2.2 -5.1Employeebenefits -1.5 -1.3 -2.6Depreciation/amortization -0.2 -0.2 -0.5Otheroperatingexpenses -2.4 -1.6 -3.4OPERATINGPROFIT,CONTINUINGOPERATIONS 2.9 2.0 4.4Financialexpenses(net) 0.0 0.0 0.2PRE-TAXPROFIT,CONTINUINGOPERATIONS 2.9 2.0 4.7Incometaxexpense -0.5 -0.3 -0.9Netprofitfromcontinuingoperations 2.4 1.7 3.7Netprofitfromdiscontinuedoperations 2.0 0.0 -4.4NETPROFIT 4.3 1.7 -0.7TOTALCOMPREHENSIVEINCOME 4.3 1.7 -0.7Netprofitattributableto: Parentcompanyshareholders 4.3 1.7 -0.7Totalcomprehensiveincomeattributableto: Parentcompanyshareholders 4.3 1.7 -0.7Earningspershare,undiluted,EUR,continuingoperations 0.30 0.22 0.47Earningspershare,diluted,EUR,continuingoperations 0.30 0.22 0.47Earningspershare,undiluted,EUR,discontinuedoperations 0.25 0.06 -0.56Earningspershare,diluted,EUR,discontinuedoperations 0.25 0.06 -0.56

INCOME STATEMENT (MEUR) 4-6/2015 4-6/2014

NETSALES 4.9 3.6Materialsandservices -1.2 -1.2Employeebenefits -0.8 -0.6Depreciation/amortization -0.1 -0.1Otheroperatingexpenses -1.2 -0.8OPERATINGPROFIT,CONTINUINGOPERATIONS 1.5 0.9Shareofassociates’results 0.0 0.0Financialexpenses(net) -0,1 0.0PRE-TAXPROFIT,CONTINUINGOPERATIONS 1.4 0.9Incometaxexpense -0.2 -0.1Netprofitfromcontinuingoperations 1.1 0.8Netprofitfromdiscontinuedoperations 1.7 0.0NETPROFIT 2.8 0.8TOTALCOMPREHENSIVEINCOME 2.8 0.8Netprofitattributableto: Parentcompanyshareholders 2.8 0.8Totalcomprehensiveincomeattributableto: Parentcompanyshareholders 2.8 0.8


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CONSOLIDATED BALANCE SHEET (MEUR) 30 June 2015 30 June 2014 31 Dec 2014

ASSETS NON-CURRENTASSETS Property.plantandequipment 0.7 1.3 0.6Goodwill 1.2 7.0 1.1Intangibleassets 3.2 2.7 2.8Deferredtaxassets 0.4 0.6 0.2TOTALNON-CURRENTASSETS 5.5 11.6 4.8CURRENTASSETS Inventories 1.5 1.2 1.3Tradeandotherreceivables 2.7 4.8 2.3Cashandcashequivalents 6.2 2.7 4.1TOTALCURRENTASSETS 10.5 8.7 7.7Non-currentassetsheldforsale 0.0 1.1 6.8TOTALASSETS 16.0 21.4 19.3LIABILITIESANDSHAREHOLDERS’EQUITYSHAREHOLDERS’EQUITY Sharecapital 5.3 5.3 5.3Sharepremium 2.4 2.4 2.4Fairvaluereserve 0.3 0.3 0.3Investedunrestrictedcapitalreserve 4.6 4.6 4.6Retainedearnings/loss 0.3 2.4 -0.6TOTALEQUITY.attributabletoholdersofparentcompanyequity 12.9 15.0 12.1TOTALSHAREHOLDERS’EQUITY 12.9 15.0 12.1LIABILITIES NON-CURRENTLIABILITIES Provisions 0.1 0.1 0.0Financialliabilities 0.5 1.2 0.9PTOTALLONG-TERMLIABILITIES 0.7 1.3 0.9CURRENTLIABILITIES Advancepayments 0.0 0.7 0.0Tradeandotherpayables 1.9 3.2 1.9Financialliabilities 0.6 0.6 0.6TOTALSHORT-TERMLIABILITIES 2.5 4.6 2.5Long-termliabilitiesheldforsale 0.0 0.5 3.9TOTALLIABILITIES 3.1 6.3 7.3TOTALLIABILITIESANDSHAREHOLDERS’EQUITY 16.0 21.4 19.3


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CONSOLIDATED STATEMENT OF CHANGE IN EQUITY (MEUR) Share Share- Other Retained Total capital Premium Reserves Earnings Equity

Balance1Jan2015 5.3 2.4 4.9 -0.6 12.1Dividenddistribution 0.0 0.0 0.0 -3.6 -3.6Netprofit 0.0 0.0 0.0 4.3 4.3Balance30June2015 5.3 2.4 4.9 0.3 12.9

Share Share Other Retained Total capital Premium Reserves Earnings Equity

Balance1Jan2014 5.3 2.4 4.8 2.4 15.0Dividenddistribution 0.0 0.0 0.0 -2.2 -2.2Usedoptionrights 0.0 0.0 0.0 0.1 0.1Netprofit 0.0 0.0 0.0 2.3 2.3Balance30June2014 5.3 2.4 4.8 2.6 15.1

CONSOLIDATED CASH FLOW STATEMENT (MEUR) 1-6/2015 1-6/2014 1-12/2014

Netprofit 4.3 2.2 -0.7Adjustmentstonetprofit 0.4 0.6 0.3Taxes 0.5 0.0 0.9Changeinworkingcapital -0.9 -1.4 3.7Interestpaid 0.0 -0.3 -0.0Taxespaid -0.3 0.0 -0.6CASHFLOWFROMOPERATINGACTIVITIES 4.0 1.1 3.6Cashflowfromdiscontinuedoperations 0.1 0.2 -0.8Salesofsubsidiaries andassociates’shares(net) 2.8 0.0 0.9PurchaseofPPE -0.4 -0.1 -0.5PurchaseofIntangibleassets -0.6 -0.5 -0.8NETCASHUSEDININVESTINGACTIVITIES 1.8 -0.6 -0.4Usedoptionsrights 0.0 0.1 0.1Paiddividendsandrepaymentsofcapital -3.6 -2.4 -2.3Repaymentsoflong-termborrowings -0.3 0.0 -0.6Long-termloansreceived 0.0 -0.3 0.0NETCASHUSEDINFINANCINGACTIVITIES -3.8 -2.6 -2.8Netchangeincashandequivalents 2.1 -1.9 -0.5Cashandequivalents.period-start 4,1 4.6 4.6Cashandequivalents.period-end 6.2 2.7 4,1

NET SALES AND SEGMENT MARGINS FOR Q1/2015 AND Q1/2014, CONTINUING OPERATIONS:

Segment profit Segment profit Net sales Net sales margin margin 1-6/2015 Change 1-6/2014 1-6/2015 Change 1-6/2014 MEUR (%) (%) MEUR (%) MEUR % (%) MEUR %HealthTech 9.5 100 30,6 7.3 100 3,6 37 33 2.7 37Total 9,5 100 30,6 7.3 100 3,6 37 33 2.7 37Parentcompanyexpenses -0.7 -0.7Operatingprofit,total 2,9 30 45 2.0 27


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MAIN SHAREHOLDERS 30 June 2015 No. of shares %

1.MerivirtaJyri 790,000 10%2.JoensuunKauppaJaKoneOy 441,509 6%3.GerakoOy 340,000 4%4.SijoitusrahastoEvliSuomiPienyhtiöt 336,086 4%5.KeskinäinenEläkevakuutusyhtiöEtera 265,000 3%6.AlpisaloMiaElisa 193,093 2%7.SijoitusrahastoDanskeInvestSuomenPienyhtiöt 190,000 2%8.Eyemaker´sFinlandOy 150,000 2%9.SalovaaraOlli-Pekka 109,207 1%10.SijoitusrahastoEvliSuomiSelect 100,000 1%

FORMULAS FOR KEY FIGURES

netprofitfortheperiod Earningspershare: =

______________________________________________ average number of shares during period

equityattributabletoshareholdersEquitypershare: =

_____________________________________ number of shares at end of period

totalEURvalueofsharestraded Average share price: =

_____________________________________________ total number of shares traded during period

Pre-taxprofit-%: = operatingprofit+financingincome–financingexpenses

100xprofitforthefinancialperiodReturnonequity-%(ROE): =

____________________________________________________ shareholders’equity+non-controllinginterest(averageduringperiod)

100xprofitbeforetaxes+interestandotherfinancialexpensesReturnoninvestment-%(ROI): =

________________________________________________________ balancesheettotal–non-interest-bearingdebt(averageduringperiod)

100xbalancesheetequity+non-controllinginterestEquityratio-%: =

______________________________________ balance sheet total – advance payments received

=

100xinterest-bearingdebt–cash&equivalents Netgearing-%: _______________________________________ totalequity

equityattributabletoshareholders Equitypershare:

=

_____________________________________ number of shares at end of period

100xinterest-bearingnetdebt Gearing-%: =

_________________________ equitytotal


16

General statementThisreportcontainscertainstatementsthatareestimatesbasedonthemanagement’sbestknowledgeatthetimetheyweremade.Forthisreason,theyinvolveacertainamountofinherentriskanduncertainty.Theestimatesmaychangeintheeventofsignificantchangesingeneraleconomicconditions.

RevenioGroup’sfinancialreportingin2015InterimReport1–9/2015onTuesday,October27,2015atapproximately9a.m.

RevenioGroupCorporationBoardofDirectors

For further information, please contact:President&CEOOlli-PekkaSalovaara,[email protected]

DISTRIBUTION:NASDAQOMXHelsinkiFinancialSupervisoryAuthority(FIN-FSA)Principalmediawww.revenio.fi

TheRevenioGroupinbriefRevenioisaFinnishhealthtechgroupwhosecorebusinessistonometers.TheRevenioHealthTechsegmentcomprisesthebusinessoperationsofIcareFinlandOy,RevenioResearchOyandOscareMedicalOy,whichspecializesinosteoporosisscreeningandmonitoring.ThecommondenominatorsofRevenio’sbusinessoperationsincludescreening,follow-upandtheglobalneedtomakecostsavingsinhealthcareviapreventivemeasures.Revenioseeksvigorousgrowthinhealthtechnology,bothorganicallyandthroughacquisitionsandmergers.

In2014,theRevenioGroup’snetsalestotaledMEUR16.0,withitsoperatingmarginforcontinuingoperationsstandingat27.5%.RevenioGroupCorporationhasbeenlistedinNasdaqHelsinki.

revenio group corporation’s interim report...the distribution agreement signed with iridex...

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