ContextVision AB (publ)

Welcome to Context Vision and our Q4 and full year webcast. Today as always with Richard and myself Gerald. On the agenda for today short business update and then hand over to Richard on the financials and we'll close with a short summary and outlook. Without any further ado let's jump into highlights of the fourth quarter and the full year. During the quarter, we attended RSNA, world's biggest radiology conference in Chicago, where we launched two new products. And overall, we understood quite a strong interest in quantitative imaging, which really confirms our journey into data quality with our POCUS venture. With customers, we had fantastic discussions on the show but also seen good progress in the quarter on collaborations, meaning we're co-creating new products leading to professional services sales from the beginning and later on turning into new products in image quality. For data quality and POCUS also good progress, actually coding and experimenting and we're seeing first in vitro results that are very promising. For those of you who are disappointed on Context Vision not paying a dividend in 2024, towards the end of the quarter we launched and executed a share buyback program. So in times with good cash positions and good cash flow and a perceived under evaluation of the company probably the right thing to execute resulted in 1.2 million shares at a price of 6.5 NOC per share. So overall I think a well executed and positive program towards the end of the year. Looking a little bit more into the financial highlights of the quarter, revenue landed at 34.1 million SEK, which is a record quarter for us, and I'm very proud of the team for that year-end raise, which then also made the year to end at 130.7 million SEK. Now it may look like a flat year however I'm extremely happy on the growth of the underlying licensed business because we had a one-off impact in Q3 Q4 previous year so if you compare numbers the trend in Q4 plus the growth in the underlying business for the total year is extremely positive and makes us looking very positively into next year. Looking into cash flow, I'm also pretty happy on the 9.1 million SEC compared to previous year, and that despite one-off costs we had this quarter for the Share Buy Back program, but also compared to an office relocation, which you can see here in the background, not only with a new logo, but a new office in the background. so well executed office move in December as well. Now those costs obviously impact EBITDA which you see now at 9.1 million SEK in total for Q4 and an adjusted EBITDA margin of 33.4% and that takes into account as planned 2.3 million SIG investments into our PocoSvedger. So also there we're ramping up the operations as planned. If we summarize the development, you can see top line trailing now at 131 million sec, rolling 12, and that illustrates again an 8.4% compound annual growth rate. For those of you who love to do extrapolations in the future, this is a great result from the past. Looking into our EBITDA margin 35% rolling 12 adjusted describes also a good pickup in our image quality business while at the same time executing our investments into the POCUS venture. So overall pretty happy with that overview. Now, if I may take a few minutes and dive more into our operational highlights. I mentioned we participated at RS&A in November. Now, first of all, the show was very well visited. A lot of customer meetings. We went there with quite a big crew, fully booked, which is a good signal for the momentum in the imaging industry. But also very interesting that despite the China crisis that we perceived in our business this year, 2024, we saw quite a lot of Chinese OEMs participating on the show, which again makes us looking positive into the recovery of the Chinese market going forward. Now the other topic I also mentioned is the strong interest in quantitative imaging, which underpins our strategy into data quality and the POCUS venture that we have set up. So a broader interest in the entire imaging industry. I don't want to mention that also in image quality, which is our strong revenue footprint as of today, we launched two new products, Revent Mobile and Smart Noise Reduction for Altamira. Very well perceived on the market and makes us also looking positively into future license revenues, both in ultrasound as well as in X-ray. Now if we look into the image quality or I should say OEM discussions that we're having, we're seeing more and more opportunities for collaborations. And what we mean by collaboration are, in fact, co-creation. So services that we can deliver to support our OEMs, which gives us an opportunity to commercialize into products later on. So good progress on that axis as well. Now diving a little bit more into the POCUS venture, I mentioned we're showing good progress on conducting tests and measurements and experiments, so that's well on track. But keep in mind that groundbreaking innovation, which in that case is really what we're going after, requires a good ecosystem. And good ecosystem means we need excellent, if not the world's best partners, alongside with our engineering teams and I'm extremely happy and it took a while I know we started talking about it mid 2024 and it came in right after closing the quarter but still in time for this webcast We have signed the agreement with the University of Washington in Seattle to partner with us on the development of our first POCUS products. And that really gives us an opportunity to take our developments out of the in vitro environment in our R&D labs in Linköping into clinical practice. and research in the clinical environment and get patient data and patient scans in to build our data quality products. So extremely happy to talk about the progress in our POCUS venture. Now, without spending more time on the operational highlights, let's jump into the financial highlights, Richard, and please share your perspective on the progress.

Right. Thank you, Gerald. Looking at our sales development, we saw an increase of 2.8% compared to Q4 of last year, with revenues reaching 34.1 million SEK. First of all, it's worth mentioning that Q4 sales last year were impacted by non-recurring sales of services and licenses of 1.8 million SEK by a product we decided not to market. However, the increase this quarter can be explained by a positive FX effect of 2.4% on sales and then one of our customers in Asia made a sales push towards the end of the quarter. We've also seen a positive sales trend for each month during the quarter. For the full year, our revenue slightly decreases by 1.2% to 130.7 million SEK. Currency exchange rates had a flat effect during 2024. Note that the full year effect on the project we decided not to market in 2023 amounted to 4.7 million SEK. As Gerald mentioned, we're very hopeful our current discussions about collaborations with key customers will translate into future revenues. But, as we mentioned before, it takes time for collaborations and sales to translate into revenues. Now looking at our profitability, our EBITDA adjusted for investment in POCUS came in at 11.4 million SEK with an adjusted EBITDA margin of 33.4%, an increase from Q4 of last year. The main reason for this is that it was an update in our capitalization policy affecting Q4 in 2023 and that we had a positive FX effect of 2.8 million year on year. Besides that, we've had a bit higher admin costs this quarter compared to the previous ones. This is because of the share buyback, the LTIP, and also an office relocation that are non-recurring. The office relocation will however lower our costs going forward. For the full year, we see some effect on our profitability as a natural consequence of our upscaling for growth. Now looking at our cash flow and financial position. Our cash flow came in at a negative 2.3 million SEK with cash flow from operating activities reaching 9.1 million SEK in the quarter. In December we also launched a share buyback of 7.9 million SEK, still giving us a cash position by the end of the year at 74.4 million SEK. For the full year, we had a positive cash flow of 16.2 million SEK and operating cash flow of 32.9 million SEK. To sum up, we have a strong cash position. This gives us opportunities to increase growth in both image quality and data quality, but also to be open for M&A. And with that, Gerald, I hand it over back to you for some closing words.

Yeah, many good things that happened in Q4, but also looking back into the entire year 2024, I think it's been a tough but very successful journey. Now summarizing Q4, we really see a strong interest in context vision, especially regarding quantitative imaging and our setup in data quality and POCUS. We should be extremely proud of two new products that we released onto the market on the roadmap as I mentioned or indicated in image quality even more to come as we're spreading out across the imaging chain. And very instrumental in those discussions are OM Tier 1 collaborations that we see good progress in. Then clearly highlight the partnership agreement with the University of Washington that we have signed and that we see extremely quick pickup now into building and testing our digital organ biomarker for liver fat. And I can just say stay tuned for more exciting news both on our POCUS venture as well as on image quality to come. And I hope we connect or you can read more before we meet again next webcast. Thank you for your attention and stay tuned. Thank you.