At RR Mechatronics we believe it is very important that every patient receives the correct diagnosis. To this end, we develop and produce high-quality blood analysis systems that are used worldwide in medical and research laboratories.

RR Mechatronics (since 1986) is a fast-growing medical technology company that has qualified as FD Gazelle, an award for fast-growing Dutch companies, in the three consecutive years 2016, 2017, 2018 and 2019.

RR Mechatronics focuses on the following four product lines:

1. Starrsed sedimentation analyzers
2. Lorrca
3. RPI
4. Reagent and Quality controls

1: Starrsed sedimentation analyzers

RR Mechatronics is the world market leader in instruments that measure blood sedimentation, one of the world's most requested blood tests in laboratories. Every year, our blood sedimentation machines take 100 million measurements according to the gold standard for measuring blood sedimentation. Our Starrsed range of blood sedimentation instruments covers instruments for small to the largest laboratories in the world. Starrsed is the gold standard for automated blood sedimentation.

The Starrsed sedimentation analyzers from RR Mechatronics are unique in that they are the only ones that use the gold standard Westergren. RR Mechatronics is the only company that has automated this method.

The Starrsed range consists of 4 instruments:

De Starrsed ST (Single Tube) is for laboratories where few blood sedimentations are performed daily. The laboratory employee manually places a tube with a blood sample in the instrument, after which the Starrsed ST automatically carries out the measurement.

De Starrsed RS (Rack Series) does not record one tube at a time, but takes racks in which 10 tubes are placed each time. The RS is used in larger laboratories.

De Starrsed TL (Track Line) is designed to be placed directly on track systems (systems with conveyor belts). After reading a barcode, a robot arm takes a tube from a track (conveyor belt) and places the tube in the Starrsed TL, after which the measurement takes place. After the measurement, the robot arm places the used tube back on the track, after which it goes to the next station for further measurements or is stored.

De Starrsed RL (Rack Line) is designed to be integrated into a Sysmex XN hematology line. Sysmex Corporation develops and sells instruments that provide complete blood tests. The Sysmex XN line from Sysmex Corporation is the instrument suitable for analyzing larger numbers of blood tubes.

Since 2018, we have been renewing our Starrsed blood sedimentation instruments to enable further growth. We have invested in product development since 2018. This project will be divided into three sub-projects in 2022 to better connect with the market segments: from small laboratories with small volumes (GP offices) to fully automated laboratories that perform hundreds of tests per day. The three sub-projects include the following:

• Wemma (successor to the ST line) that can perform manual or automated blood sedimentation for smaller laboratories and for laboratories in emerging markets in the Middle East, (Southeast) Asia and Africa.
• NRS (successor to the RS): an improved version of the RS that can perform blood sedimentation completely automatically and is suitable for mid-volume laboratories (for example a regional hospital).
• NRL (successor to the Interliner): a fully automated line that can perform high volume sedimentation and is suitable for high volume laboratories (for example academic hospitals).

We want to make our new range of Starrsed instruments better suited to the modern needs of customers: cheaper to purchase and use, easy to operate, lower service requirements and more suitable for environments with dust and relatively large temperature fluctuations.

3: RPI: Reagent production from concentrated reagent

At RR Mechatronics we have developed an instrument for producing reagents from concentrated reagents. That is the RPI: Reagent Production Instrument. The new RPI is the modern high-tech successor to the existing RPU and is used by major laboratories worldwide.

Reagent is special liquid used to settle the blood. By adding reagents to the blood during blood tests, the blood behaves as if it were in the body.

Reagent Preparation Instrument (RPI) delivers significant logistics savings for both reagent suppliers and laboratories. The RPI is a general purpose instrument intended to dilute a concentrated reagent into a usable liquid for in vitro laboratory testing.

4: Reagent and quality controls

The Starrsed instruments from RR Mechatronics, for measuring blood sedimentation and our Lorrca instrument for the analysis of red blood cells, use special fluids to perform measurements with blood. We supply this reagent according to our own recipe. We also supply blood control solutions for quality measurements.

Together with spare parts, these are consumables and this recurring business continues to grow and now even accounts for just over half of our turnover.

Reagent Preparation Instrument (RPI) delivers significant logistics savings for both reagent suppliers and laboratories. The RPI is a general purpose instrument intended to dilute a concentrated reagent into a usable liquid for in vitro laboratory testing.

We have grown strongly since 2014. For this purpose, we received an FD Gazelle award for fast-growing companies every year in 2016, 2017, 2018 and 2019. All our product ranges have contributed to this. The growth comes from existing markets (countries where we have been active for years) and from so-called emerging markets, especially in Southeast Asia and the Middle East, where we started in the years after 2014.

We expect to launch a new instrument family in 2024, which will initially be focused on the emerging markets.

The map below shows in which current countries (2023) we are active and in which countries we expect to start distribution in 2024.

RR Mechatronics has developed continuously and stably into a broad mechatronics (combinations of electronics, mechanics and software control) company. Under new management, in 2014 the company focused solely on the in-vitro diagnostics market and within that on the hematology (blood) segment. Our main product range is currently the Starrsed line of blood settling instruments. These work with the Gold Standard Westergren methodology. Gold Standards are recognized and desired worldwide.

The company has also grown significantly in employees. More than 90, often highly educated and highly motivated colleagues currently work at our company. We have grown strongly to create space for the development of new measurements on existing instruments (Lorrca Oxygenscan) and to replace existing instruments with modern new instruments.

Since our strategic focus determination, we only operate in the IVD market. This is a fast-growing market that requires automated solutions. The IVD market is attractive and growing due to the increase in the world population and the development that more and more people can receive medical care and people are getting older.

In recent years we have greatly intensified our contacts with our distributors worldwide.

We serve the market through our sales and service entities Mechatronics Instruments BV and our own sales & service organization Mechatronics USA LLC for the American market. All our R&D activities, production and assembly take place in RR Mechatronics Manufacturing BV

Investing always involves risks. The main risk you run is that R&R Mechatronics International BV has no money to repay you or to pay the interest. This could be the case when others do it better or when our technology does not work or does not work well. Then you may not receive any repayment of the loan and you will not receive any interest.

As security, a second lien is established on the debtors and inventories of R&R Mechatronics International BV and the 2 Dutch subsidiaries R&R Mechatronics Instruments BV and R&R Mechatronics Manufacturing BV

The first lien on these items has been given to Corona Overbruggingslening Regio Utrecht BV. This concerns a loan of € 1.176.000 as of December 31, 2023 (plus credited interest). You can read about this in chapter 3.16 of the Information Memorandum. Once that loan and interest has been repaid, that lien expires. This means that the second lien automatically becomes the first lien.

For the complete risk analysis, please refer to the Information Memorandum and the sheet with Key Investor Information.