Interim report
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1 sss INTERIM REPORT APR – JUN 2025 INTERIM REPORT APR – JUN 2025
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2 IMPORTANT STRATEGIC STEPS TAKEN SIGNIFICANT EVENTS DURING THE SECOND QUARTER 2025 (APR – JUN) • Mentice announced a strategic workforce realignment aimed at optimizing its organizational structure and aligning resources with long-term business priorities. • Mentice announced the intent to use its board mandate to make a rights issue of up to 10% of the share capital as stated in press announcement. • Mentice announced an order of 6.2 MSEK from a top 20 global Med Tech company, a long-standing and valued customer. • Mentice announced the FDA 510(k) clearance of the updated product Ankyras®, its neurovascular clinical decision-support platform for patient-specific flow diverter planning. During the period Ankyras® also received successful clearance from ANVISA, Brazil’s National Health Surveillance Agency. SECOND QUARTER 2025 (APR – JUN) SIX MONTHS 2025 (JAN – JUN) • Order intake amounted to 57.5 (71) MSEK, a decrease of 19%, whereof -13.9% organic and -5.1% currency effect • Net sales amounted to 63.4 (101) MSEK, a decrease of 37%, whereof -32.6% organic and -4.4% currency effect. • Earnings before interest, tax, depreciation, and amortization (EBITDA) amounted to -8.1 (24.5) MSEK. • Reorganization expenses have affected EBITDA with -7.5 MSEK and Net income with -8.7 MSEK. EBITDA adjusted for these costs amounted to -0.6 (24.5) MSEK. • Net income for the period amounted to -17.6 (17.2) MSEK. • Earnings per share (EPS) were -0.69 (0.67) SEK. • Cash flow from operating activities amounted to -7.3 (5.3) MSEK. • Order intake amounted to 101 (109) MSEK, a decrease of 7%, whereof -6% organic and -1% currency effect. • The order book by the end of the period was 112 (114) MSEK, a decrease of 1,1%, whereof +4.3% organic and -5.4% currency effect. • Net sales amounted to 118 (146) MSEK, a decrease of 20%, whereof -17.7% organic and -2.3% currency effect. • Earnings before interest, tax, depreciation, and amortization (EBITDA) amounted to -27.3 (6.1) MSEK. • Reorganization expenses have affected EBITDA with -7.5 MSEK and Net income with -8.7 MSEK. EBITDA adjusted for these costs amounted to -19.9 (6.1) MSEK. • Net income for the period amounted to -45.1 (-7.4) MSEK. • Earnings per share (EPS) were -1.76 (-0.29) SEK. • Cash flow from operating activities amounted to -10.6 (7.2) MSEK.
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INTERIM REPORT APR – JUN 2025 3 COMMENTS BY THE CEO FRANS VENKER Important strategic steps taken During this second quarter, we took important steps to ensure sustainable future profitability by announcing and implementing organizational changes through a strategic workforce realignment. The changes focused on right-sizing the team and re-aligning resources and capability for growth. The simulation market experienced low, single digit growth, which was mitigated by the strengthening of the Swedish Krona. Net sales in the second quarter came in at 63.4 MSEK, which resulted in rolling-12-month net sales of 261 MSEK (281), which was 7 percent lower than the previous quarter. Q2 in 2024 was the strongest net sales quarter on record for Mentice. This affected the rolling-12-month. Correcting for currency effects, net sales would be mostly flat. Mentice has implemented hedging measures to mitigate most of its currency risks for the remainder of the year. Order intake in this quarter came in at 57.5 MSEK, which resulted in a rolling-12-month Order Intake of 271 MSEK. The decrease in the quarter is mainly attributable to challenging circumstances in the Medical Device Industry market in the APAC region. Order intake in both Americas and EMEA was up correcting for currency effects. The rolling-12-month Order Intake for both regions showed growth of 11 and 9 percent respectively. The Americas region remains our largest and most impactful market, where we maintain a strong position as a trusted partner to the Medical Device Industry. We continue to partner with 27 of the 30 largest global medical device companies, highlighting our value and trusted position. The EMEA region showed resilience with a performance of 18.2 MSEK (19.2) in net sales and is also growing at 3 percent for the rolling 12 months. Meanwhile, net sales in the APAC region declined to 6.5 MSEK (25.8) in the quarter with a 16 percent drop for the rolling 12 months. Implementing annual cost savings of 25 MSEK By acting swiftly to align costs with current revenues, we’ve created the operational flexibility needed to capture upcoming growth opportunities. In June, we announced a strategic workforce realignment aimed at aligning our resources with long-term business priorities. This realignment targets an annual cost saving of 25 MSEK, affects 18 percent of our workforce, and implementation started early July. We will recognize the full expenses of 8 MSEK associated with the strategic workforce realignment in the second quarter, with some of the cost savings effects already beginning this third quarter. Mentice also announced the consolidation of the R&D and manufacturing operations for the physical simulation portfolio to the new facility in Denver, Colorado. This consolidation strengthens the integration of the Vascular Simulations and Biomodex acquisitions, creating a more focused operational model and helping mitigate potential tariff impacts going forward. Finally, we announced a rights issue of up to 10 percent of total share capital to strengthen the company’s financial position and invest in critical growth areas. This process will start in late July and is expected to be completed by September. In summary, all these measures combined will enable us to retain our position as a leader within our space, while also opening new avenues for growth within the healthcare sector through our expertise and continued product innovation. Future growth Mentice’s strategic direction remains clear: to leverage our unique position in the Image Guided Interventional Therapy simulation market while focusing on investing in clinical growth areas. Mentice’s Medical Device Industry business is a sustainable, profitable foundation that we will continue to develop. We see significant potential in supporting entire clinical workflows, clinical decision-making, and improving procedural efficiency in hospitals. Simulation plays an increasingly important role in improving outcomes and lowering procedure costs, especially in high-cost and high-risk therapy areas. We remain focused on strengthening our offerings in core therapy areas. This involves ongoing investment in promising fields such as neurovascular interventions and the growth of our recurring software revenue. Recent regulatory milestones for Ankyras® demonstrate our progress in this direction. Strong position Despite being a more cautious market, Mentice maintains a strong strategic position, with proven technology, trusted relationships, and a growing relevance in clinical care. While current macroeconomic factors may delay certain purchasing decisions, the need for effective, scalable training and planning tools continues to grow. Mentice enters the second half of 2025 with a clear strategic focus, a right-sized organization, and an improved financial foundation after the completion of the rights issue. While the current environment requires focused execution, I remain confident in our ability to deliver sustainable growth and create value for our customers, patients, and shareholders. Gothenburg, July 2025 Frans Venker, CEO Mentice
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INTERIM REPORT APR – JUN 2025 4 KEY FIGURES Apr-Jun 2025 Apr-Jun 2024 Change Jan-Jun 2025 Jan-Jun 2024 Change RTM Full Year 2024 Order intake, MSEK 57.6 71.0 -18.8% 101.2 108.9 -7.1% 271.2 278.9 - whereof Medical Device Industry (MDI) 46.3 59.3 -21.9% 88.6 93.5 -5.2% 226.8 231.8 - whereof Healthcare systems (HCS) 11.3 11.7 -3.4% 12.6 15.4 -18.3% 44.3 47.2 Order book (end of period), MSEK 112.3 113.5 -1.1% 112.3 113.5 -1.1% 112.3 137.6 Net sales, MSEK 63.4 101.0 -37.2% 117.7 146.3 -19.6% 261.4 290.3 Sales, MSEK 64.8 101.7 -36.3% 119.7 147.5 -18.9 264.6 292.5 Gross margin, % 90.8% 84.9% 91.5% 87.1% 90.1% 88.7% Earnings before interest, tax, depreciation, and amortization (EBITDA), MSEK -8.1 24.5 -27.2 6.1 -16.9 16.6 EBITDA-margin, % -12.4% 24.3% -22.8% 4.2% -6.4% 5.7% Income before tax (EBT), MSEK -17.0 17.8 -43.8 -6.1 -51.2 -13.5 Income for the period, MSEK -17.6 17.2 -45.1 -7.4 -51.6 -18.4 Earnings per share, SEK -0.69 0.67 -1.76 -0.29 -2.19 -0.72 Cash-flow from operations, MSEK -7.3 5.3 -10.6 7.2 0.1 17.9 Cash at the end of the period, MSEK 25,5 57.1 25.5 57.1 25.5 53.6 Equity/Asset ratio, % 35.7% 49.1% 35.7% 49.1% 35.6% 44.4% Average FTE for the quarter and full year 135.2 130.5 132.7 129.9 133.0 131.8
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INTERIM REPORT APR – JUN 2025 5 FINANCIAL PERFORMANCE ORDER INTAKE PER BUSINESS AREA Mentice operates in two different business areas. Healthcare Systems (HCS) The HCS business area includes direct and indirect sales to hospitals, with the goal of implementing solutions that assist physicians in their daily clinical practice. The continuous goal for Mentice is to offer solutions for the daily clinical practice before, during and after an interventional procedure, thus contributing to an increased quality of patient care. Medical Device Industry (MDI) The MDI business area includes solutions for the world’s leading manufacturers of medical devices. Mentice solutions are used by these customers for training, education, sales and marketing as well as to support medical device research. From 2025 Mentice has decided to integrate the Strategic Alliances (SA) business area into the Medical Device Industry (MDI) business area. Comparison figures for the previous year have been recalculated to reflect the current business area. Q2 ORDER INTAKE The order intake for the quarter amounted to 57.5 (71.0) MSEK, a decrease of 19%, of which -13.9% was organic and -5.1% was due to currency effects. For the first six months, order intake decreased by 7% to 101 (109) MSEK, of which -6% was organic and -1% related to currency effects. The decline is attributable to lower order intake across all regions within the business areas Medical Device Industry (MDI) and Healthcare Systems (HCS). In business area Medical Device Industry (MDI), order intake decreased by 21% during the quarter compared with the same period last year. Region Americas accounted for the largest part of the decline, of which -7.7 % is related to a weaker USD against the Swedish krona. Order intake for the first half of the year declined by 5% to 88.6 (93.6) MSEK. In business area Healthcare Systems (HCS), order intake declined by 3.8% during the quarter. Regions EMEA and APAC contributed negatively to the development compared with the corresponding quarter the previous year. On a rolling 12-month basis, order intake showed a flat development, in line with the same period last year (Q2). It is important to note that large orders can create a substantial variance in the distribution of order intake between business areas in individual quarters. Therefore, the Company is basing the evaluation of performance on rolling 12 months or full year figures. Order intake per business area KSEK Apr-Jun 2025 Apr-Jun 2024 Change Jan-Jun 2025 Jan-Jun 2024 Change RTM Full Year 2024 Medical Device Industry (MDI) 46,246 58,705 -21.2% 88,638 93,548 -5.3% 226,820 231,730 Healthcare systems (HCS) 11,304 11,750 -3.8% 12,573 15,387 -0.2% 44,338 47,151 Total 57,550 71,016 -19.0% 101,211 108,935 -7.1% 271,158 278,881 ORDER INTAKE PER BUSINESS AREA ROLLING 12 MONTHS (MSEK) 50 100 150 200 250 300 350 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 MSEK Medical Device Industry Healtcare Systems
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INTERIM REPORT APR – JUN 2025 6 ORDER BOOK The order book amounted to 112 (114) MSEK at the end of the period, which is a total decrease of -1.1%, of which +4.3 % is positive organic growth and -5.4% is a negative currency effect. 62 MSEK of the order book refers to revenue expected to be recognized during 2025. The order book corresponds to orders received that will be recognized as net sales in future periods. Order book by product segment KSEK 2025 2026- Mentice VIST® - Hardware - License/Software - Development 55,662 26,952 12,777 15,933 28,929 14,089 13,415 1,424 Physical Sim 3,988 48 Ankyras® 2,355 168 Total 62,005 29,145 ORDER BOOK PER QUARTER (MSEK) 0 20 40 60 80 100 120 140 160 180 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 MSEK Mentice VIST HW Mentice VIST SW Mentice VIST Dev Physical Sim Ankyras
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INTERIM REPORT APR – JUN 2025 7 NET SALES The group’s net sales consist of sales of systems and software, service and support and sales from consultancy assignments referred to as development contracts. Software licenses sold as perpetual are recognized as net sales at delivery, together with hardware, while software licenses sold as a subscription model are recognized as net sales over time. Mentice also reports sales figures for the three geographic markets: EMEA (Europe, Middle East and Africa), APAC (Asia and the Asian Pacific Region) and Americas (North, Central and South America) and for three product areas, Mentice VIST® (including Mentice Live), Physical Sim and Ankyras®. NET SALES PER BUSINESS AREA Business area Medical Device Industry (MDI) reported net sales of 54.1 (89.7) MSEK for the second quarter. For the first six months of the year, net sales amounted to 102.0 (127.8) MSEK, a decrease of 25.8 MSEK (-20%) compared with the previous year. The decline for the January-June period is primarily explained by lower order intake in regions APAC and Americas. In addition, currency effects in the Americas region had a further negative impact. Net sales for business area Healthcare Systems (HCS) remained low and below the level of the previous year for the quarter, mainly due to a reduced order intake across all regions. Net sales per business area KSEK Apr-Jun 2025 Apr-Jun 2024 Change Jan-Jun 2025 Jan-Jun 2024 Change RTM Full Year 2024 Medical Device Industry (MDI) 54,088 89,695 -39.7% 102,026 127,769 -20.1% 215,879 241,785 Healthcare Systems (HCS) 9,344 11,230 -16.8% 15,674 18,501 -15.3% 45,717 47,544 Total 63,431 100,925 -37.2 117,700 146,270 -19.5% 261,596 290,329 NET SALES BUSINESS AREA ROLLING 12 MONTHS (MSEK) 0 50 100 150 200 250 300 350 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 MSEK MDI H CS
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INTERIM REPORT APR – JUN 2025 8 NET SALES PER REGION Net sales decreased by 37.2 compared with the corresponding quarter last year, of which -32.6% was organic and -4.6% was attributable to currency effects. All three regions reported lower sales levels during the quarter. The largest impact came from regions Americas and APAC, which together accounted for most of the decline. The weaker performance is primarily explained by low order intake, which has resulted in reduced revenues. Currency effects have also had a negative impact on net sales. Region EMEA reported net sales of 18.2 (19.2) MSEK and growth of approximately 6.8% within business area Medical Device Industry (MDI) was offset by a decrease within business area Healthcare Systems (HCS). Region APAC declined by 74.8% for the quarter, mainly within business area Medical Device Industry (MDI) due to challenging circumstances in the market. Region Americas reported net sales of 38.7 (55.9) MSEK during the quarter. The decrease compared to previous year is mainly attributable to lower order intake within Medical Device Industry (MDI). Net sales per region KSEK Apr-Jun 2025 Apr-Jun 2024 Change Jan-Jun 2025 Jan-Jun 2024 Change RTM Full Year 2024 Americas 38,660 55,931 -30.9% 68,430 81,353 -15.9% 137,304 150,257 EMEA 18,242 19,157 -4.8% 30,906 34,264 -9.8% 80,720 84,161 APAC 6,529 25,837 -74.8% 18,365 30,653 -40.1% 43,623 55,911 Total 63,431 100,925 -37.2% 117,701 146,270 -19.5% 261,596 290,329 NET SALES REGION ROLLING 12 MONTHS (MSEK) 0 50 100 150 200 250 300 350 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 MSEK Americas EMEA APAC
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INTERIM REPORT APR – JUN 2025 9 NET SALES PER SEGMENT The Mentice product portfolio consists of four different product areas*, where Mentice VIST® accounts for the largest part of the company's turnover. The Mentice Live area is not reported separately but is included below in the Mentice VIST ® area. The Mentice VIST® product area is further divided into three sub- areas: Hardware, License/Software and Development. The Physical Sim area includes only Hardware, and the Ankyras® area only License/Software. Mentice VIST® – Immersive VR Simulation Mentice physics engine and anatomy model together with a haptics-enabled hardware solution creates an optimal environment for procedural training, patient-specific simulation and objective assessment of device knowledge and procedural practical ability. Mentice Live is a cloud-based learning platform aimed at MedTech companies and providers wanting to offer a broader and more accessible medical course catalogue, creating structured curricula and enable distributed distance learning. Physical Sim – physiological flow simulators With a unique production process and advanced 3D printers, Mentice creates high-quality artificial blood vessels that, together with heart and blood flow pumping platforms, are the perfect complement to VR simulation, especially when developing new medical devices or when training and planning for demanding high-cost and high-risk procedures. Ankyras® – decision support Ankyras® supports physicians determine size and location of medical device implants for brain aneurysms (flow diverters) to fit a specific patient’s anatomy. The solution is FDA cleared, and CE marked medically approved software with high accuracy that also simplifies communication between doctors and manufacturers during planning. Product area Mentice VIST® accounted for 56.1 (91.8) MSEK of net sales during the quarter. The development for the January–June period decreased with 21.9% compared with the previous year. Net sales for product area Physical Sim amounted to 6.0 (8.2) MSEK during the quarter. For the January–June period, the development was largely unchanged compared with the corresponding period last year. Product area Ankyras showed a small positive development during the quarter, with an outcome of 1.3 (1.0) MSEK. Growth was also recorded for the January-June period, amounting to 21.7 %, albeit from a low level. Net sales per product segment KSEK Apr-Jun 2025 Apr-Jun 2024 Change Jan-Jun 2025 Jan-Jun 2024 Change RTM Full Year 2024 Mentice VIST™ - Hardware - Licenses/Software - Development 56,118 38,300 8,968 8,850 91,758 58,133 28,497 5,128 -38.8% -34.1% -68.5% 72.6% 102,776 64,849 19,733 18,194 131,631 78,082 42,197 11,352 -21.9% -16.9% -53.2% 60.3% 233,403 138,037 66,067 29,299 262,239 151,313 88,494 22,432 Physical Sim 6,025 8,168 -26.2% 12,524 12,666 -1.1% 23,876 24,119 Ankyras™ 1,288 999 28.9% 2,401 1,973 21.7% 4,399 3,971 Total 63,431 100,925 -37.2% 117,701 146,270 -19.5% 261,678 290,329 NET SALES SEGMENT ROLLING 12 MONTHS (MSEK) 0 50 100 150 200 250 300 350 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 MSEK Mentice VI ST HW Mentice VI ST SW Mentice VI ST Dev Physical Sim Ankyras
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INTERIM REPORT APR – JUN 2025 10 OTHER INCOME Other income was 1.4 (0.7) MSEK for the quarter and for the first six months other income amounted to 2.0 (1.1) MSEK. It is related to exchange rate impact on the operating activities. GROSS PROFIT AND GROSS MARGIN The gross profit for the first quarter was 57.6 (85.7) MSEK and the gross margin was at 90.8 (84.9) %. Gross margin for the period continues to be higher compared to previous year due to the mix of products and improved margin for the product area VIST related to Hardware. Gross margin is impacted by the mix between products sold and the level of support and service as well as the level of net sales from software licenses versus systems. The gross margin is also affected by the mix of regions for net sales. EBITDA AND EBITDA MARGIN Earnings before interest, tax, depreciation and amortization, EBITDA, amounted to -8.1 (24.5) MSEK for the quarter. This corresponds to an EBITDA margin of -12.7 (24.3) % for the second quarter. The reason for the second quarter's lower operating profit compared to last year is partly related to reorganization costs of 7.5 MSEK. EBITDA adjusted for these costs is -0.6 MSEK. The reorganization costs are related to Personnel costs -4.3 MSEK and Other External Costs -3.2 MSEK. OTHER EXTERNAL COSTS Other external costs amounted to -21.7 (-20.0) MSEK during the second quarter, which equals an increase of 8.6 % compared to the same period last year. In the quarter costs of -3.2 MSEK were taken for the strategic workforce realignment with the purpose of optimizing the organizational structure and aligning resources with long-term business priorities. Other external costs amounted to -41.4 (-41.1) MSEK during the first six months, which equals an increase of 0.9 % compared to the same period last year. PERSONNEL COSTS Personnel costs during the second quarter were -45.3 (-41.9) MSEK, which equals an increase of 8.0 %. In the quarter costs of -4.3 MSEK were taken for strategic workforce realignment with the purpose of optimizing the organizational structure and aligning resources with long-term business priorities. Personnel costs during the first six months were -95.5 (-81.5) MSEK, which equals an increase of 17.2 %. Adjusted for the reorganization cost, the personnel costs for the quarter amounted to -91.2 MSEK. Personnel costs include capitalized costs for development with 1.1 (2.4) MSEK for the quarter and with 2.4 (5.0) MSEK for the first six months. The number of FTE, full-time equivalents average, amounted to 135.2 during the quarter, which is an increase compared with the same period 2024 which amounted to 130.5. This represents an increase of 4%. Following the reorganization this will be reduced by 18 FTEs. CAPITALIZED EXPENSES FOR DEVELOPMENT COSTS Capitalized expenses for development costs during the second quarter amounted to 2.2 (3.4) MSEK and are mainly related to several ongoing projects. Capitalized expenses för development costs during the first six months amounted to 5.3 (6.3) MSEK. The capitalization is accounted for as external costs if the original cost is for consultants for development and in personnel costs if the original cost is for own employees. AMORTIZATIONS During the quarter additional amortizations of -1.2 MSEK were taken due to the strategic workforce realignment related to lease contracts. FINANCIAL ITEMS Net financial items for the quarter amounted to -0.3 (-0.4) MSEK. Net financial items for the first six months amounted to -0.3 (-0.2) MSEK. INCOME BEFORE TAX, NET RESULT FOR THE PERIOD AND EARNINGS PER SHARE Tax on income for the second quarter was -0.5 (-0.6) MSEK. Net income for the quarter was -17.6 (17.2) MSEK. Earnings per share were -0.69 (0.67) SEK for the second quarter. Tax on income for the first six months was -1.2 (-1.2) MSEK. Net income for the first six months was -45.1 (-7.4) MSEK and earnings per share were -1.76 (-0.29) SEK CASH FLOW Cash flow from operating activities before changes in working capital was -10.3 (22.5) MSEK for the second quarter. Cash flow from change in working capital was 3.0 MSEK compared to -17.1 MSEK in the same period last year. Cash flow from operating activities amounted to -7.3 (5.3) MSEK. For the first six months Cach flow from operating activities amounted to -10.6 (7.2) MSEK. CASH AND FINANCIAL POSITION Cash at the end of the period was 25.5 (57.1) MSEK. The group’s total assets amounted to 268.1 (310.5) MSEK. IFRS 16 affected total assets by 18.9 (4.6) MSEK. Accounts receivable decreased compared to the same quarter last year and amounted to 58.8 (81.3) MSEK. Inventories amounted to 20.5 (13.6) MSEK. Current liabilities were 161.8 (157.3) MSEK. The carrying amounts of financial assets and
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INTERIM REPORT APR – JUN 2025 11 liabilities are considered to correspond essentially to fair value. The company also has an overdraft facility of 20 MSEK. INVESTMENTS Investments during the second quarter amounted to 3.1 (4.2) MSEK, whereof 2.2 (3.4) MSEK refers to the capitalization of development costs. The remaining 0.9 (0.8) MSEK refers to investments in tangible fixed assets. Investments during the first six months amounted to 7.4 (7.8) MSEK. PARENT COMPANY The parent company is an operating company based in Gothenburg, Sweden. Net sales for the second quarter for the parent company amounted to 42.5 (78.4) MSEK. The gross margin amounted to 85.3 (82.1) % for the quarter. The net income for the period was -21.5 (16.6) MSEK. For the first six months net sales amounted to 74.9 (105.7) MSEK with a gross margin of 82.1 (81.5) % and the net income for the period was -53.6 (-11.3) MSEK. SHARE CAPITAL The total number of shares as of June 30, 2025, was 25,568,850 (25,568,850) and the share capital was 1,278 KSEK. All shares are ordinary shares with equal voting value. The shares have a quota value of 0.05 SEK. DISPUTES The group has no current disputes. TRANSACTIONS WITH RELATED PARTIES Board member Denis Gestin through related company has on a consulting basis acted as advisor to the company, in connection with customer related activities within the medical device industry and other consultation. During the period April through June 2025, Denis Gestin received 0.26 (0.26) MSEK as fee in addition to board fee, and for the first six months 0.5 (0.5) MSEK The above transactions were conducted based on market value. THE PURPOSE OF MENTICE The purpose of Mentice’s solutions is to support the healthcare professionals in their mission to ensure all patients have an optimal outcome, improve cost-effectiveness, and generally offer opportunities for the healthcare sector to better utilize its resources. RISKS Important risks and uncertainties for the group are primarily related to commercial risks with customers and suppliers, operational risks with regards to competence and security in the implementation of new medical equipment. The financial risks lie in the global operations that the company operates. This affects changes in exchange rates and interest rates, as well as liquidity, financing, and credit. Currency risk also arises when translating foreign net assets and earnings into Swedish kronor. Mentice overall goal is to avoid as far as possible financial risk taking, which can arise through changes in exchange rates, interest rates and market prices, as well as liquidity, financing, and credit risks. Exchange rate risk is divided into translation exposure and transaction exposure. Translation exposure refers to the exposure of net assets for foreign subsidiaries. Transaction exposure refers to the risks associated with purchases and net sales in foreign currency. The group’s external sales are made in the currencies EUR and USD. In the parent company, the external sales are in EUR or USD, and most of the operating costs are in SEK. Net sales and cost in the US subsidiary are exclusively conducted in USD. Net sales and costs in the other subsidiaries are mainly in EUR or USD. The intention of the new administration in the US to introduce and enhance measures on import tariffs, which was announced in the beginning of the period, still needs to be evaluated regarding the effect on the company. For more information about the company’s risks, see the board of directors’ report in the annual report for 2024.
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INTERIM REPORT APR – JUN 2025 12 THE SHARE AND OWNERSHIP Mentice AB (publ.) shares are traded on Nasdaq First North Growth Market since 2019 under MNTC. According to Euroclear’s official register of shareholders, Mentice had a total of 1,456 shareholders by June 30, 2025. FNCA is the company’s certified advisor. Largest shareholders (source Euroclear 2025-06-30) Name Number of shares Shareholding in % Karin Howell-Bidermann 8,690,980 33.99% Bure Equity 3,761,659 14.71% Fjärde AP-fonden 1,971,000 7.71% Gulf Offshore Limited 1,849,810 7.23% Avanza Pension 1,308,190 5.12% Medical Simulation Corporation 1,191,074 4.81% Göran Malmberg 711,670 2.78% Schroders 600,000 2.35% Andra AP-fonden 446,620 1.75% Handelsbanken Liv Försäkring AB 393,913 1.54% 10 largest shareholders total 20,924,916 81.99% Others 4,643,934 18.01% Total number of shares 25,568,850 100.00% EXAMINATION BY THE AUDITORS This report has not been reviewed by the company’s auditors. FINANCIAL REPORTS Interim reports and other financial reports are available on the company’s website. www.mentice.com.
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INTERIM REPORT APR – JUN 2025 13 AFFIRMATION Mentice AB (publ)’s CEO hereby assures that this interim report gives a true and fair view of the Group’s business, financial position and performance and describes the essential risks and uncertainty factors that the company and the companies which are part of the Group are subjected to. In the event of any discrepancies between the English and Swedish versions of the report, the Swedish version shall prevail. Gothenburg, July 23, 2025 Mentice AB (publ) Frans Venker CEO
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INTERIM REPORT APR – JUN 2025 14 CONSOLIDATED INCOME STATEMENT KSEK Apr-Jun 2025 Apr-Jun 2024 Jan-Jun 2025 Jan-Jun 2024 Full year 2024 Net sales 63,431 100,991 117,701 146,418 290,329 Other income 1,374 709 1,981 1,131 2,149 Operating income 64,806 101,700 119,682 147,549 292,478 Raw materials and consumables used -5,751 -14,672 -9,837 -17,687 -33,084 Depreciation of rented assets -87 -574 -148 -1,170 -1,627 Other external expenses -21,725 -20,011 -41,439 -41,066 -76,583 Personnel expenses -45,286 -41,928 -95,543 -81,499 -164,625 Depreciation of tangible assets -4,332 -2,346 -7,900 -4,658 -13,714 Amortization and write-down of intangible assets -4,326 -3,952 -8,309 -7,449 -15,242 Operating expenses -81,507 -83,484 -163,176 -153,530 -304,875 Operating profit (EBIT) -16,701 18,217 -43,494 -5,980 -12,397 Financial income 89 478 129 929 1,562 Financial expenses -435 -852 -461 -1,095 -2,668 Net financial items -346 -373 -332 -167 -1,106 Earnings before tax (EBT) -17,047 17,843 -43,825 -6,147 -13,502 Tax -520 -598 -1,249 -1,249 -4,918 Net result for the year -17,567 17,245 -45,074 -7,396 -18,420 Net result for the year attributable to: Shareholders parent company -17,567 17,245 -45,074 -7,396 -18,420 Earnings per share Basic (SEK) -0.69 0.67 -1.76 -0.29 -0.72 Diluted (SEK) -0.69 0.67 -1.76 -0.29 -0.72 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME KSEK Apr-Jun 2025 Apr-Jun 2024 Jan-Jun 2025 Jan-Jun 2024 Full year 2024 Net result for the year -17,567 17,245 -45,074 -7,396 -18,420 Other comprehensive income Items can be transferred to profit or loss for the year: Translation difference on translation of foreign operations -2,151 -269 -3,104 1,016 2,767 Total comprehensive income for the year -19,718 16,976 -48,178 -6,380 -15,653
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INTERIM REPORT APR – JUN 2025 15 CONSOLIDATED BALANCE SHEET KSEK 30 Jun 2025 30 Jun 2024 Full year 2024 Assets Goodwill 48,508 48,508 48,508 Patents 22,835 26,459 24,648 Trademarks 1,814 3,024 2,419 Internally developed intangible assets 40,829 38,178 41,527 Tangible assets 8,737 10,542 8,637 Right-of-use assets 20,150 5,424 7,727 Deferred tax assets 3,403 7,153 5,421 Total non-current assets 146,276 139,288 138,886 Inventories 20,519 13,642 17,419 Accounts receivables 58,804 81,313 97,492 Prepaid costs and accrued income 12,110 14,095 11,851 Current tax assets 1,037 1,336 1,045 Other receivables 3,874 3,701 3,620 Cash and cash equivalents 25,466 57,136 53,586 Total current assets 121,810 171,223 185,012 Total assets 268,086 310,510 323,899 Equity and liabilities Share capital 1,278 1,278 1,278 Other paid in capital 202,061 201,385 201,728 Retained earnings -107,522 -50,071 -59,344 Total equity attributable to parent company shareholders 95,817 152,593 143,663 Long term liabilities Leasing liabilities long-term 10,501 593 4,727 Total long-term liabilities 10,501 593 4,727 Accounts payable 8,409 13,621 12,940 Other liabilities 3,971 4,177 5,120 Current leasing liability 8,746 5,462 4,409 Accrued expenses and deferred income 140,642 134,065 153,041 Total current liabilities 161,768 157,324 175,510 Total equity and liabilities 268,086 310,510 323,899
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INTERIM REPORT APR – JUN 2025 16 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY KSEK Share capital Other paid in capital Translation reserve Retained earnings Total equity At 1 January 2024 1,278 201,385 -1,431 -42,259 158,973 Transactions with owners in the group Issue of share options 343 343 Payment of share options Net result and other comprehensive income for the year Net result for the year -18,420 -18,420 Other comprehensive income for the year 2,094 673 2,767 Total comprehensive income for the year 2,094 -17,747 -15,653 Closing balance at 31 December 2024 1,278 201,728 663 -60,006 143,663 At 1 January 2025 1,278 201,728 663 -60,006 143,663 Transactions with owners in the group Issue of share options 333 333 Payment of share options Net result and other comprehensive income for the year Net result for the year -45,074 -45,074 Other comprehensive income for the year -3,948 844 -3,104 Total comprehensive income for the year -3,948 -44,230 -48,178 Closing balance at 30 June 2025 1,278 202,061 -3,285 -104,236 95,817
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INTERIM REPORT APR – JUN 2025 17 CONSOLIDATED STATEMENT OF CASH FLOWS KSEK Apr-Jun 2025 Apr-Jun 2024 Jan-Jun 2025 Jan-Jun 2024 Full year 2024 Operating activities Earnings before tax -17,047 17,843 -43,825 -6,147 -13,502 Adjustment for Non-cash items 7,492 5,228 16,063 12,995 30,456 Income tax paid -691 -607 -17 -2,683 -4,195 Cash flow from operating activities before changes in working capital -10,247 22,465 -27,779 4,166 12,758 Change in trade receivables and other current assets 8,693 -17,696 31,808 8,607 -3,881 Change in inventories -2,216 3,099 -4,373 817 -2,662 Change in trade payables and other current liabilities -3,507 -2,586 -10,271 -6,368 11,705 Change in working capital 2,970 -17,182 17,164 3,056 5,161 Cash flow from operating activities -7,277 5,283 -10,615 7,222 17,919 Investing activities Acquisitions of tangible assets -2,092 -161 -2,092 -509 -1,283 Capitalisation of internally developed intangible assets -2,181 -3,436 -5,347 -6,272 -15,155 Cash flow from investing activities -4,273 -3,596 -7,439 -6,781 -16,438 Financing activities Amortization of lease liability -2,857 -1,870 -6,567 -3,760 -9,312 Cash flow from financing activities -2,857 -1,870 -6,567 -3,760 -9,312 Cash flow for the period -14,406 -184 -24,621 -3,319 -7,830 Opening cash balance 40,550 57,506 53,586 59,121 59,121 Translation difference on cash and cash-equivalents -678 -186 -3,499 1,335 2,295 Cash and bank balances at end of period 25,466 57,136 25,466 57,136 53,586
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INTERIM REPORT APR – JUN 2025 18 PARENT COMPANY INCOME STATEMENT KSEK Apr-Jun 2025 Apr-Jun 2024 Jan-Jun 2025 Jan-Jun 2024 Full year 2024 Net sales 42,470 78,368 74,888 105,670 200,639 Capitalised expense for development 2,002 3,269 4,889 5,654 12,344 Other income 1,133 2,801 1,740 3,721 17,308 Operating income 45,605 84,437 81,518 115,045 230,291 Raw materials and consumables used -4,697 -11,857 -9,713 -15,596 -32,361 Other external expenses -23,349 -19,436 -41,928 -38,532 -75,049 Personnel expences -30,246 -27,718 -62,663 -54,490 -112,047 Depreciation of tangible assets -406 -447 -848 -897 -1,790 Amortization and write-down of intangible assets -6,808 -6,434 -13,273 -12,412 -25,169 Exchange losses on operating receivables and liabilities -1,612 -1,472 -6,714 -4,141 -16,636 Operating expenses -67,118 -67,365 -135,139 -126,068 -263,052 Operating profit (EBIT) -21,513 17,072 -53,621 -11,023 -32,762 Financial income 158 554 236 851 1,447 Financial expenses -103 -983 -245 -1,093 -2,397 Net financial items 55 -429 -9 -243 -951 Result after financial items -21,457 16,643 -53,630 -11,266 -33,712 Earnings before tax (EBT) -21,457 16,643 -53,630 -11,266 -33,712 Tax -36 Net result for the year -21,457 16,643 -53,630 -11,266 -33,748
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INTERIM REPORT APR – JUN 2025 19 PARENT COMPANY BALANCE SHEET KSEK 30 Jun 2025 30 Jun 2024 Full year 2024 Assets Intangible and tangible assets Goodwill 6,137 15,930 11,034 Patents 22,835 26,626 24,731 Trademarks 1,814 3,024 2,419 Internally developed in-tangible assets 39,347 37,941 40,333 Tangible assets 4,226 5,008 4,958 Financial assets Shares in group companies 21,886 21,886 21,886 Receivables from group companies 1,007 1,026 1,037 Deferred tax assets 6,615 6,615 6,615 Total non-current assets 103,868 118,056 113,013 Inventories 11,523 9,206 9,633 Accounts receivables 22,664 39,971 50,868 Current receivables, group companies 8,196 10,074 Prepaid expenses and accrued income 13,240 11,471 23,711 Current tax assets 2,279 1,799 2,486 Other receivables 3,330 3,231 2,892 Cash and cash equivalents 746 41,146 27,462 Total current assets 61,979 116,898 117,052 Total assets 165,846 234,954 230,065 Equity and liabilities Restricted equity Share capital 1,278 1,278 1,278 Fund for development costs 39,708 38,804 41,047 Non-restricted equity Other paid in capital 202,061 201,385 201,728 Retained earnings -136,868 -102,216 -104,458 Net result for the year -53,630 -11,265 -33,748 Total equity 52,550 127,987 105,846 Long term liabilities Liabilities to group companies 770 772 815 Total long-term liabilities 770 772 815 Accounts payable 7,821 11,631 11,619 Current liabilities, group companies 6,714 4,508 9,069 Other liabilities 2,094 2,344 1,623 Accrued expenses and deferred income 95,898 87,713 101,092 Total current liabilities 112,527 106,196 123,403 Total equity and liabilities 165,846 234,954 230,065
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INTERIM REPORT APR – JUN 2025 20 NOTES ACCOUNTING POLICIES Mentice applies International Financial Reporting Standards (IFRS) as adopted by the EU. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The parent company’s interim report has been prepared in accordance with the Swedish Annual Accounts Act and RFR 2, Accounting for Legal Entities, issued by the Swedish Financial Reporting Board. The accounting policies are unchanged compared to 2024. Some minor structural adjustments were made in the financial tables in 2025. BASES OF VALUATION APPLIED IN THE PREPARATION OF THE FINANCIAL STATEMENTS Assets and liabilities are recognized at historical cost except for currency derivatives, which are measured at fair value. As per June 30, 2025, the total actual value of forward contracts was 0.0 (52.8) MSEK. ASSESSMENTS AND ESTIMATES IN THE FINANCIAL STATEMENTS Preparation of the financial statements in compliance with IFRS requires the company’s management to make assessments, estimates and assumptions that affect the application of the ac- counting policies and the carrying amounts of assets, liabilities, income, and expenses. Actual outcomes may deviate from these estimates and assessments. Assumptions are reviewed on a regular basis. Changes to estimates are recognized in the period. FINANCIAL INSTRUMENTS, CURRENCY EXPOSURE AND RISK MANAGEMENT Mentice uses forward exchange contracts to manage currency risk. Forward exchange contracts are used to hedge risk in accordance with the group financial policy. Mentice operations expose it to credit risk when selling to customers. Only advance payments or letters of credit are accepted for sales to new customers or to customers which are deemed to represent a high-risk exposure. ADJUSTMENTS, ROUNDING Some of the financial information provided in this report has been rounded, which may affect the totals in the tables. ABOUT THE PARENT COMPANY Mentice AB (publ.), company registration number 556556-4241, is a Swedish public company with its registered office in Gothen- burg, Sweden. WARRANT PROGRAM Mentice has three outstanding option programs for staff and external consultants, with the aim of stimulating increased commitment and interest in the business and its performance. Against this background, the programs are expected to have a positive impact on the company’s continued development and thus be good for the company and its shareholders.
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INTERIM REPORT APR – JUN 2025 21 PRODUCT AREAS* Mentice’s business is divided into four product areas, which reflect the group’s operations, financial management and management structure. These four product areas are Mentice VIST®, Physical Sim, Mentice Live and Ankyras®. The Mentice Live area is not reported separately but is included in the Mentice VIST® area. OUTCOME PER PRODUCT AREA Q2 TSEK Mentice VIST™ Physical Sim Ankyras™ Total Apr-Jun 2025 Apr-Jun 2024 FY 2024 Apr-Jun 2025 Apr-Jun 2024 FY 2024 Apr-Jun 2025 Apr-Jun 2024 FY 2024 Apr-Jun 2025 Apr-Jun 2024 FY 2024 Hardware Licenses/Software Development 38,300 8,968 8,850 58,133 28,497 5,128 151,313 88,494 22,432 5,986 0,039 0 6,963 365 840 20,710 1,450 1,958 - 1,288 - - 999 - 0 3,971 0 44,286 10,295 8,850 65,096 29,861 5,968 172,023 93,914 24,390 Total 56,118 47,371 262,239 6,025 8,168 24,119 1,288 999 3,971 63,431 100,925 290,329 Raw mtrl and consumables used -5,329 -13,852 -29,856 -444 -1,345 -4,058 -64 -50 -199 -5,838 -15,247 -34,112 Gross profit 50,789 77,906 232,383 5,581 6,823 20,061 1,224 949 3,772 57,594 85,678 256,217 Gross profit % 93.6% 84,9% 88.6% 92.6% 83.5% 83.2% 95.0% 95.0% 95.0% 90.8% 84,9% 88.3%
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INTERIM REPORT APR – JUN 2025 22 DEFINITION OF KEY PERFORMANCE INDICATORS REPORTED Alternative performance measures (APM) are financial measurements that cannot be directly discerned or ordered from financial statements. These financial measurements are intended to help the company management and investors to analyze the group’s performance. Investors should view these alternative key performance indicators as a complement to the financial statements prepared in accordance with IFRS. DEFINITION OF KEY PERFORMANCE INDICATORS REPORTED Order intake The value of orders received during the period. Net sales Sales of products and services are normally recognized in connection with delivery to customers, depending on the terms of delivery. Services, software, and projects that run over several periods are recognized as net sales over time. Order book Amount of not yet delivered products and services. Order intake rolling 12 months Mentice has had recurring growth phases, and it is important to view performance over time and not solely for an individual quarter as Mentice historically has had a strong first quarter. Net sales rolling 12 months Mentice has had recurring growth phases, and it is important to view performance over time and not solely for an individual quarter as Mentice historically has had a strong first quarter. Gross profit Net sales with deduction for raw materials and consumables used and depreciation of rented assets. Gross profit margin Gross profit as a part of net sales. EBITDA Mentice uses the key performance indicator EBITDA to demonstrate the earning power of the business from operating activities without considering the capital structure and tax situation and this is intended to make comparison easier with other companies in the same industry. EBITDA margin EBITDA as part of net sales. The measure is used to measure operating profitability, independent of financing, impairment and depreciation. EBITDA rolling 12 months Mentice has repeatedly had individual strong quarters, and it is therefore important to continuously see developments over time and not just focus on individual quarters. FTE (Full-time Equivalent) Full-time employee based on employment percentage and long-time sick leave. Includes consultants replacing a permanent position during recruitment. RTM Rolling Twelve Months.
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INTERIM REPORT APR – JUN 2025 23 FINANCIAL TARGETS, SHORT TO MEDIUM TERM REVENUE GROWTH 20-30% annual growth in net sales. PROFITABILITY To reach a 20% EBITDA margin within three years with a longer-term target of 30%. ABOUT MENTICE BUSINESS OPERATIONS Mentice is a company that offers high-technology solutions for simulation to the medical sector with a focus on the fast-growing market for endovascular procedures. Mentice’s simulators are used to educate, train, and improve the practitioners’ skills in different types of interventions and when introducing new clinical instruments. The company offers “flight simulations” for physicians and clinical teams to provide practitioners with experiences as realistic as possible. Headquartered in Gothenburg, Sweden. Mentice has a strong global presence with companies established in the US, Japan, Spain, and China. BUSINESS IDEA Mentice business idea is to assist in the aim to reduce deaths, injuries and costs resulting from medical errors and inefficiencies and ultimately to reduce risk of harm to patients. By developing and providing innovative and realistic training tools, the company will help to improve the clinical skills of doctors and reduce the risk of needless errors. Medical errors are a major problem for society that come at a large cost and are the third most common cause of death in the USA, behind heart disease and cancer Close integration with health service and the rest of the medical device industry is vital to promote innovative solutions that enhance the simulation experience. Sustainability, social and environmental issues are a core element of Mentice code of conduct and its operations. Mentice has a strong focus on the continuing innovation of the products offered and on taking simulation to new heights to offer the best possible solutions for customers at hospitals, clinics, universities and in research groups as well as in the medical device industry. The company has clear ambitions and principles to take economic, social, and environmental responsibility. PURPOSE Mentice’s purpose is to reduce deaths. injuries and costs resulting from medical errors and inefficiencies by developing innovative and inspirational tools for the improvement of clinical skills. VISION Mentice’s vision is to lead endovascular care to the highest standards of patient safety and performance. MISSION We believe medical technology helps to improve patient outcomes and clinical performance. Our mission is to improve operational efficiency and patient outcomes by introducing innovative solutions that eliminate proficiency barriers. OUR RESULTS ARE GLOBAL Proud to be trusted by organizations worldwide 25+ Years of experience pioneering interventional simulation. 140+ Over 140 scientific papers reinforcing the value of simulation skills acquisition. Retention and assessment. 50+ Medical simulation patents across more than 30 different training procedures >50% Of global market share in endovascular simulation solutions.
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INTERIM REPORT APR – JUN 2025 FINANCIAL CALENDAR INTERIM REPORT JUL - SEP 2025 NOVEMBER 6, 2025 YEAR END REPORT 2025 FEBRUARY 26, 2026 ANNUAL REPORT 2025 APRIL 23, 2026 Mentice’s interim reports and annual reports are available on www.mentice.com Mentice AB (publ) – Interim report Apr - Jun 2025