BioGaia AB Interim report 1 January – 30 June 2014

CEO’s comments: "We have achieved strong profitability for the first half of the year with an operating margin of 29 % excluding license revenue from Nestlé. Including license revenue from Nestlé, operating margin was 53 %. Sales for the rolling 12 -month period amount to 12% (excluding foreign exchange effects)", says Peter Rothschild, CEO of BioGaia. Period from 1 January to 30 June 2014 (Figures in brackets refer to the same period of last year) · Net sales amounted to SEK 281.0 million (163.5), an increase of SEK 117.5 million (72%). Net sales include license revenue of SEK 95.4 million from Nestlé. Excluding license revenue from Nestlé, net sales totalled SEK 185.6 million, an increase of 14% (excluding foreign exchange effects, 10%). · Net sales in the Paediatrics business area reached SEK 148.4¹ million (127.8), up by SEK 20.6 million (16%). · Net sales in the Adult Health business area amounted to SEK 35.1 million (35.6), a decrease of SEK 0.5 million (-1%). · Operating profit was SEK 148.7 million (44.1), an increase of SEK 104.6 million (237%). Excluding license revenue from Nestlé, operating profit was SEK 53.3 million, an increase of 21% (excluding foreign exchange effects and operating expenses for the subsidiary IBT, 18%). · Profit after tax was SEK 114.5 million (34.5), up by SEK 80.0 million (232%). Excluding license revenue from Nestlé, profit after tax was SEK 40.1 million, an increase of 16%. · Earnings per share totalled SEK 6.66 (1.85). Excluding license revenue from Nestlé, earnings per share were SEK 2.35. · The period’s cash flow was SEK 4.3 million (-125.5). Cash and cash equivalents at 30 June 2014 amounted to SEK 239.1 million (249.6). Second quarter of 2014 · Net sales reached SEK 92.4 million (85.3), an increase of SEK 7.1 million (8%) (excluding foreign exchange effects, 5%). · Net sales in the Paediatrics business area totalled SEK 71.7 million (66.6), an improvement of SEK 5.1 million (8%). · Net sales in the Adult Health business area amounted to SEK 20.1 million (18.7), an increase of SEK 1.4 million (7%). · Operating profit was SEK 24.9 million (26.3), a decrease of SEK 1.4 million (-5%) (excluding foreign exchange effects and operating expenses for the subsidiary IBT, -8%). · Profit after tax was SEK 17.5 million (16.9), an improvement of SEK 0.6 million (4%). · Earnings per share totalled SEK 1.03 (0.89). Key events in the second quarter of 2014 · Agreement for the sale of drops in India. · Agreement for the sale of drops in the UK. · Decision to expand the production facilities at the subsidiary TwoPac in Eslöv. 1) Excluding license revenue from Nestlé. Including license revenue from Nestlé, net sales in the Paediatrics business area amounted to SEK 243.8 million. Teleconference: You are welcome to take part in a teleconference on the interim report that will be held today at 9:30 a.m. by CEO Peter Rothschild. To participate in the teleconference please see www.biogaia.com/agenda. BioGaia has published this information in accordance with the Swedish Securities Act. The information was issued for publication on 20 August 2014, 8.00 a.m. CET. This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording shall prevail. BioGaia AB Box 3242, SE-103 64 STOCKHOLM Street address: Kungsbroplan 3A, Stockholm Telephone: 46 8-555 293 00, Corp. Identity no. 556380-8723 www.biogaia.com For additional information contact: Peter Rothschild, President, BioGaia AB, telephone 46 8-555 293 00 or Margareta Hagman, Executive Vice President, BioGaia AB, telephone 46 8-555 293 00 BioGaia is a healthcare company that develops, markets and sells probiotic products with documented health benefits. The products are primarily based on the lactic acid bacterium Lactobacillus reuteri, which has probiotic, health -enhancing effects. The class B share of the Parent Company BioGaia AB is quoted on the Mid Cap list of the NASDAQ OMX Nordic Exchange Stockholm. www.biogaia.com