BioGaia AB - Interim Management Statement 1 January – 30 September 2015

Regulatory News:

BioGaia (STO:BIOGB)

President’s comments: I am pleased to say that sales and profit for the third quarter were highly satisfactory. In the past 12-month period sales were up by 41%, or 30% excluding foreign exchange effects, says Peter Rothschild, president BioGaia AB.

Period from 1 January to 30 September 2015 (Figures in brackets refer to the same period of last year. The comparative figures in the balance sheet refer to 31 December 2014.)

· Net sales amounted to SEK 378.9 million (265.0)¹, an increase of SEK 113.9 million (43%) (excluding foreign exchange effects, 31%).

· Net sales in the Paediatrics business area reached SEK 313.0 million (207.6)¹ ², up by SEK 105.4 million (51%) (excluding foreign exchange effects, 36%).

· Net sales in the Adult Health business area amounted to SEK 54.6 million (46.4), an increase of SEK 8.2 million (18%) (excluding foreign exchange effects, 11%).

· Operating profit was SEK 124.7 million (70.9)¹, an increase of SEK 53.8 million (76%) (excluding foreign exchange effects, 41%). Excluding expenses in the subsidiary Infant Bacterial Therapeutics (IBT), operating profit was SEK 140.9 million (75.2)¹, an increase of SEK 65.7 million (87%).

· Profit after tax was SEK 99.6 million (54.5)¹, up by SEK 45.1 million (83 %).

· Earnings per share totalled SEK 5.76 (3.19)¹.

· The period’s cash flow was SEK 8.0 million (-11.1). Cash and cash equivalents at 30 September 2015 amounted to SEK 219.8 million (210.7).

Third quarter of 2015

· Net sales amounted to SEK 106.0 million (79.4), an increase of SEK 26.6 million (33%) (excluding foreign exchange effects, 23%).

· Net sales in the Paediatrics business area reached SEK 88.9 million (64.5)², up by SEK 24.4 million (38%) (excluding foreign exchange effects, 26%).

· Net sales in the Adult Health business area amounted to SEK 12.6 million (10.2)², an increase of SEK 2.4 million (23%) (excluding foreign exchange effects, 16%).

· Operating profit was SEK 29.7 million (17.6), an increase of SEK 12.1 million (69%) (excluding foreign exchange effects, 31%). Excluding expenses in the subsidiary IBT, operating profit was SEK 36.2 million (18.8), an increase of SEK 17.4 million (93%).

· Profit after tax was SEK 20.7 million (14.4), up by SEK 6.3 million (44%).

· Earnings per share totalled SEK 1.19 (0.84).

· The period’s cash flow was SEK 16.8 million (-15.4).

Key events in the third quarter of 2015

· Publication of study showing that Prodentis reduces candida in the elderly.

· BioGaia invests further in IBT.

Key events after the end of the third quarter of 2015

· Study shows that Protectis promotes growth of children and prevents recurrent diarrhoea.

· BioGaia appoints new Managing Director.

1) Excluding license revenue from Nestlé. Including license revenue from Nestlé, net sales for the period from January to September 2014 amounted to SEK 360.4 million, net sales in the Paediatrics business area totalled SEK 303.0² million, operating profit was SEK 166.3 million, profit after tax was SEK 128.9 million and earnings per share were SEK 7.50.

2) A minor reallocation of last year’s sales between segments has been made in order to achieve better comparability with the year’s figures.

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 President Peter Rothschild. To participate in the teleconference please see telephone number at www.biogaia.com/agenda.

Latest press releases from BioGaia

2015-10-20 BioGaia appoints new Managing Director

2015-10-12 BioGaia’s probiotic shown to promote growth and prevent recurrent diarrhoea

2015-09-07 BioGaia to invest further in Infant Bacterial Therapeutics AB

BioGaia has published this information in accordance with the Swedish Securities Act. The information was issued for publication on 23 October 2015, 8:00 a.m. This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording shall prevail.

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

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

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