Revenio Group Corporation: Financial Statement Bulletin January 1-December 31, 2015: Strong growth and healthy profit performance continued in 2015

Revenio Group Corporation, Stock Exchange Release, February 15, 2016 at 9.00 am

Revenio Group Corporation's Financial Statement Bulletin January 1-December 31, 2015

Revenio Group Corporation has adopted the publication procedure enabled by the Financial Supervisory Authority's Regulations and guidelines 7/2013 (Disclosure obligation on issuers) and is publishing its Financial Statement for January- December 2015 as an appendix to this stock exchange release which is a summary of the Revenio Group Corporation's Financial Statement for January-December 2015. The document can be read in full in the PDF appendix to this release. The Financial Statement 2015 is also available on Revenio's website: www.revenio.fi.

Strong growth and healthy profit performance continued in 2015, largely driven by the US markets

January-December 2015 in brief, continuing Group functions:

• Revenio saw outstanding growth and profitability in 2015, despite growth investments
• Net sales totaled EUR 20.3 (16.0) million; an increase of 26.3%
• Operating profit amounted to EUR 5.8 (4.4) million; an increase of 30.5%
• US markets grew organically 24.4%
• Earnings per share, continuing operations EUR 0.61 (0.47)
• Diluted earnings per share for continuing and discontinued operations EUR 0.85 (-0.09)
• In December, Revenio announced that its subsidiary Icare was launching a new Icare ic100 tonometer on the European markets in January, to replace the Icare TA01i tonometer introduced to the markets in 2003
• In December, Revenio Group Corporation announced that its market valuation will change from Small Cap to Mid Cap on January 4, 2016
• The Board will propose to the Annual General Meeting of March 15, 2016 a dividend of EUR 0.70 (0.45). The proposed dividend per-share includes non-recurring items generated by 2015 divested businesses. This non-recurring portion of the dividend is EUR 0.15.
  
  

October-December 2015 in brief, continuing Group functions:

• Net sales totaled EUR 5.5 million (5.0), representing growth of 10.4 %, while the operating result was EUR 1.2 million (1.3), a fall of 5.2 %
• The net sales of the Revenio Health Tech business segment rose by 10.4% to EUR 5.5 million (5.0). Operating profit was EUR 1.8 (1.6) million, an increase of 13.4 %.
• Diluted earnings per share from continuing operations EUR 0.14 (0.15)

Key figures, continuing functions, MEUR

Financial guidance for 2016

Net sales growth is expected to remain strong. Profitability is expected to remain at a healthy level despite growth investments.

Olli-Pekka Salovaara, President and CEO, comments on the company's performance in 2015:

"Revenio performed well in 2015, as evidenced by growing sales and a strong foothold in the US markets. In terms of numbers, 2015 was successful and we were able to build on past performance, with net sales up by 26.3 per cent and operating profit by 30.5 per cent from the previous year, reflecting our growing market share as one of the leading suppliers of tonometers worldwide. During the year, we received sales permits for Icare TA01i in China and Brazil, which will provide more growth potential in these new markets. Meanwhile, the systematic progress made with new product concepts related to asthma and skin cancer is providing us with what we need to achieve our goal: to be the global leader in screening technologies.

The year began with the introduction of a new organizational structure following the official launch of Revenio Research Oy. The decision to separate the research and development of new products from operating activities better equips us to pursue further systematic development based on our product concepts, while our companies engaged in business activities can focus fully on the sales and marketing of existing products.

All our teams have done a great job and we should be proud of our achievements in 2015. However, becoming the global leader in selected screening technologies will require continuous efforts in research and development, as well as in sales, marketing and quality assurance. To help us meet this goal, we have recruited new personnel in the preparation of new product launches and entry into new market areas. For skilled professionals, we can offer challenging positions in an international environment within a leading health technology company.

More than 40% of the world's health technology products are sold in the United States. Accounting for an approximately 50 per cent share of our net sales, the United States is Revenio's key market area.

An updated version of the Icare tonometer TA01i, ic100, was granted a CE marking in Europe and thereby a sales permit in the EU. The market launch and sales of this new product will begin in early 2016. The ic100 has required significant R&D investments, and we expect it to gradually replace the Icare TA01i tonometer introduced to the markets in 2003. Probes also generated strong sales, with sales up by 35 per cent from the previous year. Probe sales are expected to become more substantial following growth in device sales and increasingly active use of the devices.

In September, after meticulous preparation, we filed a sales license application with the United States Food and Drug Administration (FDA) for the Icare HOME tonometer designed for monitoring eye pressure at home. The FDA sent additional questions regarding the application in November. These were routine questions, requesting further clarifications and additional analyses. The questions were answered after the review period in February 2016. We are ready to launch sales in the United States immediately after the license has been granted. A sales license application for the Icare ic100 tonometer has also been filed in the United States. We expect to receive a sales licence for both products during 2016.

We have also taken steps to align the Icare organization in the United States with the growth prospects of this major market, by hiring a financial manager and a product marketing manager specializing in the market launch of the HOME tonometer. Similarly, much of my personal input will be dedicated to the US market, which is why I have been working at our Raleigh office since early May.

In 2015, sales efforts related to the Oscare Sono® osteoporosis detection device focused on locating distributors and end customers. Although sales volumes were relatively modest, we are moving in the right direction. I believe that the actions and product improvements currently under way will boost device sales in 2016.

The product concept development work carried out at Revenio Research on the detection, patient-led screening and follow up of asthma and skin cancer is proceeding as planned. I feel very confident about the future of these product concepts and believe that we will be able to announce more details in 2016 on the productization of both concepts and the timing of their global market launch. In 2015, we invested EUR 1.5 million in health technology project development projects that were not related to the Icare product range.

As stated in our strategy, our goal is to be the global leader in selected screening technologies. To achieve this goal, we need to generate profitable growth, which we have been able to do for several years. Supporting the success of Icare with continuous research and development is an important part of our strategy. In addition, we must strengthen our position through licensing, productization and commercialization, and acquisitions.

We owe this success to our committed employees and partners around the world. I also want to thank our shareholders for their trust and confidence in our work."

Briefing

A briefing for analysts, portfolio managers and media representatives will be held on February 15, 2016, starting at 10:00 a.m. The presentation material will be available on the company's website at www.revenio.fi after the event.

Revenio Group Corporation
Board of Directors

For further information, please contact:
President & CEO Olli-Pekka Salovaara, tel. +358 40 567 5520
olli-pekka.salovaara@revenio.fi
www.revenio.fi

DISTRIBUTION:
NASDAQ OMX Helsinki
Financial Supervisory Authority (FIN-FSA)
Principal media
www.revenio.fi

The Revenio Group in brief

Revenio is a Finnish, globally operating health technology corporation whose worldwide success is based on a strongly patented intraocular pressure measurement technology. The Revenio Group consists of Icare Finland Oy, Revenio Research Oy and Oscare Medical Oy, in which Revenio holds a 53% interest. The common denominators of Revenio's business operations include screening, follow-up and the global need to make cost savings through preventive health care. Revenio seeks vigorous growth in health technology. Revenio aims at developing even more efficient and easily adopted methods for the early-stage detection of diseases with significance for public health. The focus of Revenio's screening technology is on the early detection of glaucoma, osteoporosis, skin cancer and asthma, and the monitoring of these during the treatment process.

In 2015, the Revenio Group's net sales totaled MEUR 20.3, with its operating margin for continuing operations standing at 28.4%. Revenio Group Corporation is listed on Nasdaq Helsinki.