Revenio Group Oyj

deep dive to numbers, go through the current shareholder structure and then go through the guidance at the end. And the plan is to leave as much as we can time also for the questions. So if looking the highlights for the quarter, so the Q2 was a very strong quarter for us. So if you look the top 20 countries where we operate, so 17 out of 20 were actually growing, and the 15 out of those 20 top countries were actually growing in a double digit manner. Then if looking the tonometers, intraocular pressure measurement devices, and then the imaging devices, so both product lines were actually growing really well. So as I said, US growing well, European biggest countries growing really well. Then also, I think the highlight was also the Latin America. So they started to recover after the COVID, and this applies both for tonometer side of the business, plus the retinal imaging devices. Then in addition to the normal business, what we have, so device business. So we also launched the iCare iLoom platform for diabetic retinopathy screening. So the package includes the DRS Plus device. So we updated the software functionality for the device so that with the single button press, the DRS Plus Imaging device is taking the image, sending that one to the Illum cloud software, and then from there, it's automatically, images are transferred to the third-party AI software, which is Tirona, as we speak today. And then we get the results back to the Loom cloud software. And this software solution is based on the Okulo platform assets, which we acquired a bit more than a year ago. Then if looking at the current market conditions and uncertainties, so as said already during the Q1, So we have stopped all the business for Russia and Belarus. And the stopping here means that we have actually terminated all distribution contracts. So it's a full-on exit out from these markets. And then a couple of uncertainties. The components, of course, they have been there for the longer time. So according to our view, still the Q3 is going to be a struggle in terms of the components. So we have weekly challenges related to the components, but we haven't had any impact to deliveries during the Q2. So in that sense, everything is okay, but it requires a lot of planning, a lot of man and woman hours to sort out the challenges challenges week by week, but we have a view that because of the overall economic slowdown, so seems to be like perhaps during the Q4, Q1 next year, also the component situation is going to be easing up. But let's go through the first half numbers in a bit more detail. So net sales grew 25.1% up to the 44.6 million euros. So that was a good first half for us. And then I think we have to remember that we also had a backup from the US dollar. So if we look the currency adjusted growth of net sales in January to June, so the number was 17.6%. And if looking from the absolute Euro terms, so the first half backup in the sales was roughly 2.9 million. 2.9 million from the strong US dollars. And if you look the impact to the EBIT line, so which was 12.7 million, so roughly 60 percent, so roughly 60 percent out from 2.9 million and then falls down to the EBIT line. So also on the profit side, we got a nice lift up due to the US dollars. Then Robin is going to go more detailed, the cash flow and the other key financials. So over to you, Robin.

Thank you, Jooni. So like Jooni mentioned, we're extremely happy to be able to present these numbers for the second quarter. In sales, it's actually the best quarter ever as a company, as a medical technology company for us. Supported by the strong FX, of course, but basically comparing to even last year. In the first half last year, our growth was more than 40% for the first half. So being able to report again, and for the second quarter actually last year, the FX adjusted growth was 43%. So being able to... report 30% growth again, quarter over quarter, year over year is extremely good. So 25.1% to 44.4 million euros growth in the first half are also the dollar has an impact on the gross margin. It is actually slightly better than what we maybe thought even ourselves when we started this year. So a lot of our sales are in dollars. And of course, our manufacturing costs are in euros. So that all plays into the gross margin as well. So the gross margin improvement for the second quarter actually went from 69.1% to 71.3%, so 2.3% improvement. year over year, and much of that is actually dollar supported, but also a very good product mix. And actually, our manufacturing costs, also, we've been able to control those quite well and actually even improve them in some products. Our operating profit, 12.7 million, up by 40% for the first half. And just as a reminder, last year we acquired Okulo. So for Q1 last year, we did book roughly 700,000 of acquisition-rated one-time costs, which we have adjusted here out. So on the adjusted EB line, you can see the comparable number being instead of 9 million, 9.7 million. And there are, compared to the adjusted comparable number, are EBIT still grew this year more than 30%. And then also, as a reminder, last year, the Okulo acquisition took place on end of April. So basically, I think it was April 28th. So basically, our costs for the comparable period does not include the Okulo team costs roughly for the first four months. So those costs obviously are actually a lot more than the acquisition costs. So that also something to be kept in mind. EPS improvement very much in line with the EBIT. Net gearing better than last year. I'll actually cover that a bit more on the next slide. And then the average employee number also going up a bit. But there also the comparable period doesn't include the whole Okulo team for the full quarter. So as it's an average number or something, that's one of the bigger areas of where we got the number or the growth for the employees. So like I mentioned, the quarter really strong, 24.4 million. It's the best quarter in the recent or mid-term history of the company. Not going back, not stating back to the early 2000s, as I would have to go and check what those were there. But as a medical technology company, it's definitely the best quarter on top line we've had. Very good sales in all key regions, all key products, double-digit growth. And kind of here you can see the bit longer-term trend line, so our business is a bit seasonal. So typically the end of the year is in the Q4 is the best quarter in every year. It's more European and Asia Pacific is more stable throughout the year, but especially in the US, the end of the year tends to be quite good. Also, our business is very scalable. As we've mentioned many times, you can see when the top line goes up, the profitability goes up on the right side. So the blue lines over here. Also, you can see the EBIT profitability being more stabilized now. So in 2020, when the corona broke out, the the opex freeze like in many other companies traveling went to zero trade shows were were zero everything basically stopped marketing was low so the profitability did go exceptionally high in q4 2020 but basically since then when things have become more normalized we've been able to stabilize also the profitability but you can see as the top line grows the profitability grows with it. And also for the software solutions, we expect the cash flow from that business still to be negative for this and the next year. Our cash flow, similar seasonality a bit there. So we typically pay or always pay our incentives out in the first quarter. So that kind of is a big impact there on the operating cash flow. And then as we go into the other quarters of the year, the second half typically is the stronger time where we collect the cash and make more cash on the operations. equity ratio has been trending up slowly. So basically, we're now closer to 70 versus 60 a couple years back. And then the net gearing, we're now at 7%. So it's an orange line on the right-hand graph. You can see as it goes up and down, what it does basically, it's there's certain logic behind it. So when you look at 2020, when Corona broke out, our AGM was pushed out to June. Dividends were paid out in Q2 when the net gearing goes up. We collect the cash or kind of build up the cash balance in the bank for the rest of the year. Q1, 21, pay the dividends in Q1. Q2, we acquired Okulo with cash reserves. So the net gearing goes up. Then again, we build up the cash in the bank. And then Q1 this year, nothing special there. But then Q2, the dividend payout of roughly 9 million we had in the quarter actually brought up the net gearing up to 7%. So our Interest bearing, debts versus cash, the balance there, I think it's roughly 5.5 million. We have more debt than cash. Main shareholders. nothing really has changed on the top 10 list uh demand from denmark is still the largest owner they've actually increased their ownership during this year a little bit from i think it was just over 12 percent at the start of the year um for the q2 uh the bigger change i guess in in ownership was that the foreign ownership went up roughly one percent uh the shares went to Sweden, France mostly. And U.S. over the couple last years, the U.S. ownership has increased. So maybe if you go back a couple of years, that's maybe together with the demand coming in as an owner. Those are probably the bigger changes over the last three years. So U.S. ownership used to be quite small like three years back. And then the guidance, we expect our exchange rate adjusted net sales to grow strongly from the previous year and profitability excluding non-recurring items is estimated to remain at a good level. And here, just as a reminder, so the sales are the FX adjusted, not the reported sales.

Hey, excellent. Thank you, Robin. I think we are ready for the questions.