SERSTECH AB

Third Quarter Report 1 January - 30 September 2020 - Seite 2

The Corona pandemic has had an effect on our R&D output and the volume availability of our new Arx products has been delayed until Q1 2021 and we currently have an order backlog of approximately 2 MSEK for these. We have been able to do limited demos since the first batch became available earlier this year and the feedback has been very encouraging. The Serstech 100 Indicator has been greatly improved over the last two years and we expect it to remain attractive for several years to come due to the improved performance, larger libraries and expanded feature set. The Serstech 100 Indicator will remain our best-selling product also next year, due to its attractive price/performance ratio and the fact that it has been introduced in multiple tender processes. Going into Q4 and 2021 we have a great product portfolio that is, relative to the competition, the strongest we have ever had.

In early 2020, our sales pipeline of known tenders was at the highest level it had ever been, but this changed rapidly in March and April, when a large number of tenders were cancelled. At the beginning of Q4, our sales pipeline has set a new record and several of the previously cancelled tenders have been reactivated, even though we still see many countries being locked down and not open for business.

In March, when the effects of the pandemic became clear, we quickly and dramatically reduced our fixed cost, from more than 3.5 MSEK to less than 2 MSEK per month. This in combination with a returning market and a positive cashflow, has put us in a good financial position. Significant uncertainty about shorter term sales remains of course, but we are convinced that the improving market conditions in combination with our updated portfolio and strong sales channel should place the 50% growth target for 2021 within reach.

Stefan Sandor,
CEO, Serstech AB
phone: [phone]
email: [e-mail]

Thomas Pileby,
Chairman of the Board, Serstech AB
phone: [phone]
email: [e-mail]

Company website: www.serstech.com

This is information that Serstech AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above at 08.45 CET on November 11, 2020.

Certified advisor to Serstech is Svensk Kapitalmarknadsgranskning AB (SKMG),
phone: [phone]
e-mail: [e-mail].

ABOUT SERSTECH

Serstech delivers solutions for chemical identification and has customers across the world, mainly in the safety and security industry. Typical customers are customs, police authorities, security organizations and first responders. The solutions and technology are however not limited to security applications and potentially any industry using chemicals of some kind could be addressed by Serstech’s solution. Serstech is traded at Nasdaq First North Growth Market and more information about the company can be found at www.serstech.com

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