Revenio Group Oyj

Good afternoon and welcome to Revenio Group Q2. Earnings Call. My name is Jouni Toijala and I'm extremely happy to have Jukka Kainulainen joining in a call with me today. So, Jukka has started as a new CFO about a week ago, right? Right, Jukka? Two weeks in a row almost. So, would you like to introduce Jukka first yourself and then we get to the agenda?

Yeah. Thank you, Jouni. And of course, Very excited to be here. It's so exciting moment for Revenio after the strategic acquisition and starting totally new journey as a new combined company. So great to be here and previously has been spending my last 10 years in the global technology growth companies, of course, focusing always on the growth profitability and also capital allocation and also acquisition a little bit earlier in my career and the related integration topic. So great to be here and thanks a lot, Jouni.

Hey, thank you, Jukka. So let's jump to the agenda. So we are going to run a bit more different earnings call today. So we start actually with the VisionX integration status. Then we are also going to go through where do we stand. regarding to the synergy, so we discussed during the transaction closing and announcement regarding to the 20 million EBITDA uplift target, so we are going to recap that one, then of course going through the highlights of Q2 first half, Q2 and first half at 2026 and then Jukka is going to do deep dive for the finance part and then of course we have a guidance at the very end. Before jumping to the integration and synergy, so like Jukka said, so it's nice to join in for the company because we are having a quite historic moment now ongoing, so I would compare this one to the Centerview acquisition at the time in terms of the significance. Of course, now the size is bigger, but of course, the old revenue, if I may use the word, so that's, of course, considerably sizable compared to the 2019. So this is the first quarter when we now have one month numbers in from the ex-Visionix side. and based on the now kind of last or first 100 days, if I may use the 100-day word here, so everything is actually progressing well and according to the plan. So the strategic logic why we closed the transaction, it is still as strong as it was at the time of the signing and closing, which I found extremely So from the integration perspective, integration is progressing really well. So we have a couple of scenarios here. So I would summarize that we are now leaning towards the best kind of a best scenario in terms of the speed of getting the synergies in and the speed of integrating the actual organization. So if we looked a couple of key areas here, so first from the overall integration perspective. So we have now nailed down even end of May, the leadership team organization, of course, the board structure, overall governance. And then during the summertime, we have been then moving further down to the organization in order to clarify the organization. and Operative Model, so that's going really well. In terms of the culture, so we run an extensive culture audit also during the summer and cultures are actually matching together extremely well and this is, at least for me, this is a more positive thing that I was expecting. Then we have been putting a lot of effort to the commercial The US sales team, so we have actually combined already the US organization including the sales and the new team has been running operationally from the beginning of the August and what we have done in the USA so we have also finalized all product training related to the different products to the team and then also now bit by bit moving to cross sales targets, etc. and really moving to the execution in the past four to five weeks. On the international sales side, which Umberto is running, so John is running the US sales organization. So from the international side, so we have clear plans now. how to start moving forward with the different countries, whether they are direct or through the distribution. So that has moved to the execution in last two weeks time. And I would say that the overall things have been progressing really well. Then coming back to the 20 million, Epida Uplift. So we have already secured a bit ahead of time the 5 million run rate saving regarding to the 20 million Epida Uplift. So there we are on track and then we also have plans regarding to next steps, regarding to operating model and then also things related to the procurement etc. in order to be able to get and the remaining part of 15 million EPIDA uplift in the coming quarters. So if summarizing the integration status in one sentence, so it's going well and according to the plan. Then to the numbers. So of course top line up 39.3, roughly 50% up. What we saw on the profitability side is of course we have been coming down due to the couple of things on the profitability. So the first One is the acquisition related one of costs, which during Q2 were roughly 3.4 million. So Juha is going to cover that one a bit more detail. Then I think that we should pay also attention to the cross-marching, which was exceptionally high in a previous year Q2, so 70%. to 0.6% roughly. And if we go back to the Q2 last year, so we actually didn't have tariff impact almost at all at the time. So we were stacking a lot of products into the warehouse. So we didn't pay any tariffs on the imaging products. We didn't pay any tariffs regarding to the tonometers. We started to pay a bit tariffs towards the end of Q2 last year regarding to the probes. And if we look then from the cross-marching perspective, Q3, Q4 and Q1 this year, so I think we are able to say that we had the cross-marching Beyond the 70%, so that's partly explaining why cross-marching is done and of course we have a vision dilution, but Jukka is going to cover this one in more detail. Then regarding to the whole first half, so net sales 66.6 up from 52.6, operating profit 4.8 and then we had in addition to the 3.4 million, so we had roughly same amount of acquisition related one of costs during the Q1 as well. So the whole acquisition related expenses were a ballpark of 6.9 million. Then regarding to cash flow, Juha is going to cover this one, but the cash flow was negative. And let's also come back on Juha's presentation. So we had a really strong cash flow, exceptionally strong Q4. Last year roughly 15 million, so part of the costs were actually occurring during the Q1. Then after the Q2. So a couple of highlights from the other parts of the business. So we have been now receiving and working of course together with the iHealth screen regarding to the DRS Plus and the FDA clearance. So We managed now to get the first FDA cleared AI solution for the USA. So that's an extremely good news. Now working closely with iHealthScreen in order to approach the customers and start pitching the product and we look this one of course to boost the DRS Plus sales in the coming quarters and years in the USA. And then another thing where we have been active and working for the long time in the USA and of course in the other parts of the world and this is really linking to the macro trends what we are seeing i.e. the amount of the patients is increasing The resources on the eye health professional side is limited and we are not able to treat and diagnose all the patients and in the constant communications we have been emphasizing the ease of the use and then automation what comes to the devices and here we go so this is a prime example of that one. So we closed a strategic partnership in the USA with the company called iCheck, which is providing the kiosk where we have been integrating the DRS Plus for autonomous use and for the screening purposes. And then this kiosk is connected to the backend platform and then the patient is able to come to the kiosk and and then do the holistic screening of the ice. So extremely good thing for us in terms of the long run and just shows clearly where the market is going in the future. But with these words, let's move to more detailed finances. So Jukka, over to you, please.