February 25 2022

Investor report 2nd half of 2021 R&R Mechatronics International BV

RR Mechatronics (RRM) has achieved significantly higher turnover in the second half of 2021 than in the first half of 2021.

The growth in turnover is partly driven by the first delivery of the RPI. We have received a large order for the RPI from the launching customer that will run until the second quarter of 2023. This order has brought our order book to a record high. Regardless of this success, RRM is still suffering from postponement of clinical trials due to Covid, which means that the growth of Lorrca sales is less than expected. The importance of the Lorrca Oxygen scan in the development and treatment of sickle cell disease is clearly increasing. For example, results with the Lorrca Oxygen scan are even presented in (stock exchange) updates from developers of sickle cell medicines.

Income from the Starrsed line of blood settling machines is stable despite postponed investments from laboratories and hospitals due to Covid. RRM is still suffering from the effects of Covid. This is reflected in increased staff loss, disruptions to the supplier chain and increased purchasing prices. For commercial reasons, not all price increases can be passed on to the customer. It often happens that we are only able to deliver instruments later than planned. The deliveries of reagents, control blood and components remain our absolute priority because they ensure that the instruments on which doctors and patients depend can continue to be used in the field. The uptime of these instruments has not been disrupted by delivery problems since the start of the Covid problem and we expect that through our adjustments we will also be able to support this installed base in the coming period as our distributors and customers expect from us.

Particularly due to Covid-related staff shortages and disruptions to the supplier chain, it was decided in January 2022 to postpone the introduction of the new Starrsed settling machines. The new introduction timing is confidential for commercial reasons. To absorb the additional expenses resulting from the announced delay in the introduction of the new Starrsed line, RRM shareholders are strengthening their equity.

Jan Buis
CEO