YEAR-END REPORT JANUARY-DECEMBER 2015


Summary: fourth quarter 2015

  · Net sales rose by about 67 percent to SEK 3,499k (2,099k).

  · Gross profit/loss improved by SEK 1,959 to SEK –137k (loss: 2,096k).

  · Gross margin improved, 74 percent in 2015, compared with 63 percent in 2014.

  · Profit/loss after tax improved by SEK 4,799k to SEK -3,062k (loss: 7,861).

  · Comprehensive income improved by SEK 4,757 to SEK -3,104k (loss: 7,861k).

  · Comprehensive income per share totaled SEK -0.08 (-0.36).

  · Cash flow from operating activities was SEK -3,940k (-5,676k).

  · GingisKHAN™Fab kit, Genovis launched a further development of the product
GingisKHAN™ that will be marketed under the name GingisKHAN™Fab kit.

Summary: full-year 2015

  · Net sales improved by about 61% to SEK 13,268k (8,252k).

  · Gross profit/loss improved by SEK 4,550k to SEK -1,429k (loss: 5,979k).

  · Gross margin improved, 82 percent in 2015, compared with 58 percent in 2014.

  · Profit/loss after tax improved by SEK 2,143k to SEK -19,906 (loss: 22,049).
Non-recurring expenses had a negative impact on earnings of SEK 6,071k.

  · Comprehensive income improved by SEK 2,121k to SEK -19,928k (loss: 22,049).

  · Comprehensive income per share totaled SEK -0.66 (-1.02).

  · Cash flow from operating activities was SEK -16,117k (-22,193).

  · Genovis reorganized, discontinued operations in the subsidiary GeccoDots and
sold the intellectual property rights behind the Nanomotus project to the
inventors against future royalties.
COMMENTS FROM FREDRIK OLSSON, CEO

In early 2014 we decided to change our marketing and sales strategy and shift
completely to direct sales with our own organization in the most important
markets. In 2015 we were able to fully implement this decision. The effect is
clear: we increased sales for the full year by more than 60 percent to SEK 13.3
million. Direct contact with the end customer is a strong contributing factor
for growth in each quarter of 2015 compared with 2014.

We streamlined operations during the year to focus on products based on our
unique enzymes, which are principally used in the biopharma industry. The
restructuring process had a negative impact on twelve-month earnings of about
SEK 6 million, attributable to impairment losses and personnel costs. We are now
entering 2016 with a cost-effective organization that is adapted for growth.

Our gross margin improved significantly during the year: 82 percent in 2015,
compared with 58 percent in 2014. Our production is now efficient and scalable
to be able to meet increased demand.

In the fourth quarter of 2015 our sales surged by 67 percent compared with the
corresponding period in 2014. Exchange rate effects in this context are marginal
(approximately 7 percent), which means we are growing organically – and this is
important for Genovis’ employees, as well as for our shareholders. This
achievement reaffirms our conviction to follow and further strengthen our sales
strategy in 2016.

Genovis develops and sells products that meet the current and future needs of
our customers. In order to continue doing what is necessary, we need not only
innovative and talented employees, but also the resources to further strengthen
the marketing organization. We intend to further expand our marketing campaigns
in 2016 by strengthening existing markets with more resources to drive sales
even stronger. We will also seek a local presence in markets where we see
significant potential, especially in Asia. We also plan to launch products for
new markets and applications to drive growth further during the year. My
assessment is that these initiatives will double sales within 18 months and
create an organization that can handle continued rapid growth.

Genovis has always had a clear strategy in which interaction with customers
guides how we conduct business – every day! This strategy applies to our
products, customer care, support and delivery, as well as the simplicity of
ordering our products. Our main focus is to solve challenges for our customers
in a better way than our competitors do and I am convinced that we have the
right strategy to optimally increase value for Genovis shareholders moving
forward.
For more information, please contact: Fredrik Olsson, CEO, Genovis AB Tel: 0046
(0)46 -101233 fredrik.olsson@genovis.com (sarah.fredriksson@genovis.com)
ABOUT GENOVIS

Genovis’ business concept is to offer customers in the pharmaceutical and
medical device industries tools that facilitate and save time in the development
of new treatment methods and diagnostics. Today Genovis sells several enzyme
products known as SmartEnzymes all over the world in innovative product formats
that facilitate development and quality control of biological drugs.

The Group consists of Genovis AB and the wholly owned subsidiary Genovis Inc.
(USA).

Genovis shares are listed on Nasdaq First North Stockholm, and Consensus is
Certified Adviser for the Company, t: 46 (0)31-745 50 00

This press release is a translation of the Swedish original. In the event of any
discrepancy between this translation and the Swedish original,
the Swedish version shall prevail.

Attachments

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