Intellego Quarterly Report 1 October to 31 December 2023

Summary of the period 1 October to 31 December 2023

• Net turnover was TSEK 55 405 (26 744)
• Cash flow from operating activities was TSEK 459 (14 362)
• Result after financial items was TSEK 24 916 (-489)
• Result after tax was TSEK 21 674 (-197)
• Earnings per share were TSEK 0.82 (-0.01)

Summary of the period 1 January to 31 December 2023

• Net turnover was TSEK 186 493 (57 784)
• Cash flow from operating activities was TSEK -20 144 (3 125)
• Result after financial items was TSEK 68 830 (-16 763)
• Result after tax was TSEK 59 604 (-15 145)
• Earnings per share were TSEK 2.36 (-0.72)

The entire quarterly report is available at: https://intellego-technologies.com/sv/rapporter/

A message from the CEO
Intellego’s journey of growth continued during Q4. The year as a whole can be summarised as a record year for the Intellego group. These results come from our long-term focus on our customers and partners, where close collaborations lead to the best products in the market in each category.
At the same time, we have a fast and efficient development process that can quickly respond to market needs. Proof of that success, is that we achieved both turnover and profit records in 2023.

Daro Group, which has been part of the Intellego group since 2022, delivered good results and we expect Daro Group will show sales growth of ca 15% in 2024 and greater profits growth as its gross margin continues to increase. Daro is expected to exceed the targets set by Daro and Intellego, largely due to Daro’s increased focus on its Specialist Lighting (e.g. for hospitals and prisons) and UV and Water divisions. During 2023, Daro Group made significant investments in product development and sales, laying the foundation for its long-term business.

In Q4 and in 2023, both Daro and Intellego have performed well on several fronts. Some of the highlights were:

• Record operating cashflow for the mother company, Intellego Technologies AB, from where the main dosimeter sales are conducted, was ca +16 million SEK in Q4. Ca 14 million SEK of these where from sales and cashflow related to external customers.
• Record revenue in 2023 of ca 187 million SEK, of where roughly 80 million SEK comes from the Daro Group and 107 million SEK from Intellego’s mainly dosimeter sales. This is almost a 10x increase in revenue for Intellego from 2022.
• Cash from receivables were approximately 120 million SEK for the group from January 2023 to January 2024. Approximately 65 million SEK of this came from Daro Group and approximately 55 million SEK from Intellego sales, an increase of approximately 5x compared to 2022 for Intellego.
• Operating cash flow for the group was lower in Q4 than expected which was caused by bank holidays at the end of December which resulted in ca 15 million SEK coming in early 2024 rather than in December 2023.
• Receivables continue to be paid according to plan and, as Intellego grows, we are shortening payment times for our customers. Intellego does not currently have any past due receivables. In 2024, the Intellego group expects receivables to stabilise at around 25-35% of annual revenue.
• In Q4 alone, Daro secured over 30 million SEK of customer orders creating a record order book for 2024.

Our new subsidiary with its focus on dosimeters and capital equipment sales, as we previously communicated, is developing well. The business model for the subsidiary is different compared to the direct sales of the dosimeters. The investment of roughly 30 million SEK which was done in Q4 in 2023 and also in Q1 2024, was mainly used to purchase capital equipment which Intellego then resells in it’s network. Through the new subsidiary, sales are conducted more through leasing of capital equipment which will give the business a guaranteed monthly cashflow which is expected to reach a total of 170 million SEK over a three-year period. Dosimeters will be sold together with the capital equipment.

During Q4 several larger orders were received and several new LOI projects were started. One of these projects is a development project with one of the world's largest sports retailers which is estimated by the partner and Intellego to be capable of generating up to 75 million Euros over a three-year period, if the projects reaches the market. Intellego will update on this project when any significant information arises.

Growth for the group is expected to continue in 2024 and Intellego and Daro see several attractive expansion possibilities which we are keen to capitalise on. In order to be able to devote cash flow to these expansion possibilities, Intellego and the sellers of Daro have agreed to postpone the next payment to the Daro sellers until the end of August 2024. The Daro sellers are a significant shareholder group in Intellego and, they believe this is the best way forward to generate maximum shareholder value in Intellego. The payment to the Daro sellers, 1,25 million GBP, is expected to be financed by group operating cash flow. The payment to the Daro sellers in 2025 is also expected to be financed by group operating cash flow.

The group had a positive start and two weeks into January the group has already secured over 40 million SEK in Q1 revenue which is as much revenue as the group generated during the whole of Q1 2023.

Intellego continues to grow into a global company, and we are heavily investing in that growth which will be the focus for the foreseeable future. Intellego previously communicated financial goals for the group of revenue over 300 million SEK and over 110 million SEK in EBIT in 2024, which we hereby reiterate.

Stockholm 21st February 2024
Claes Lindahl, CEO