High growth and improved operating margin

Fourth quarter

Continuing operations:

• Sales growth was 24 percent in local currency. Sales amounted to SEK 98 (82) million, corresponding to an increase of 20 percent in SEK.
• Operating income (EBIT) amounted to SEK 12 (2) million, corresponding to an operating margin of 12 (2) percent.
• On October 1 the transplantation business was distributed to the shareholders of Vitrolife, and it is thus reported in this interim report as discontinued operations. The distribution entailed a non-taxable financial capital gain of SEK 303 million in the Vitrolife Group, which was the difference between the market value of the Xvivo shares upon listing and the booked value of Xvivo’s net assets in Vitrolife at the time of distribution.
• Vitrolife completed the acquisition of Cryo Management Ltd, one of the world’s leading players within time-lapse for IVF, based in Hungary. The acquisition has contributed SEK 3 million to the Group’s revenues during the fourth quarter.
• Two further lawsuits were filed in the USA against Vitrolife’s American subsidiary with regard to the transplantation product Perfadex®. As the products were sold before the distribution of Xvivo, Vitrolife will also handle the lawsuits in the future.

Whole year

Group, including discontinuing operations:

• Sales amounted to SEK 404 (356) million.
• Operating income (EBIT) amounted to SEK 57 (41) million.     

Continuing operations:

• Sales growth was 18 percent in local currency. Sales amounted to SEK 362 (308) million, corresponding to an increase of 18 percent in SEK.
• Operating income (EBIT) amounted to SEK 50 (21) million, corresponding to an operating margin of 14 (7) percent.
• Income before tax excluding the Xvivo capital gain amounted to SEK 50 (23) million.
• The cash flow from operating activities was SEK 58 (22) million.
• Thomas Axelsson was appointed CEO of Vitrolife.
• A study was presented at the ESHRE conference which demonstrated that Vitrolife’s patented product EmbryoGlue® was again shown to improve the chances of becoming pregnant.
• Acquisition of Cryo Management Ltd.

After the end of the year

• The Board’s proposal for dividend amounts to SEK 0.60 (0.60) per share.

Gothenburg, February 7, 2013

VITROLIFE AB (publ)

Thomas Axelsson, CEO