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Hello everyone, and welcome to Nord Health's Capital Markets Day 2026.

My name is Alex Cram. I'm the CFO at Nord Health.

And I want to start by just saying a big thank you to all of our in-person attendees for traveling to London to come and see us today. We have investors from all of the Nordic countries, the UK, Germany, France. And so I want to say a big, big thank you to everyone who's traveled, especially our guest speakers who've come from the UK. But we really appreciate that they'll do a fireside panel for us later. We have a fantastic agenda for you today. We're going to start off by going into our group vision and long-term objectives. We're going to have a deep dive on the veterinary business and strategy. We're going to follow that up by a look at our AI products and our vision for AI. We'll take a short break at that point, and then after that, we'll have the fireside channel with two of the largest veterinary groups in the UK. After that, we're going to go into our therapy business, and then we'll finish up with financials and guidance. Today's presenters are Charles McBain, our group CEO, James Stanier, the CTO of our veterinary business, Karan Walia, the CEO of our therapy business, and then me. And with that, I will turn over to Charles for our group vision.

Thanks. Hi, everyone. There are many new investors and there's current investors which will be watching this. I want to start with going through a bit of the basics of what we do and then we'll go into more detail if there's a strategy. Let's start with what problem we're trying to solve. The main enemy we're trying to solve is admin. Both in veterinary and in therapy, the admin burden has increased, mostly due to regulation in both these specialties. Most of this admin work is unpaid. Our mission is to be able to reduce and automate as much of the admin as possible. And the mission is to give healthcare teams more time to care, right? More time to care for their patients or pet parents if in the case of veterinary, more time to care for the business that they're trying to grow and more time to care for themselves as well. And that's what we're trying to do by building our softwares. In terms of the two verticals, we operate in veterinary, where we do veterinary practice management software. We've got just over 4,000 clinics across the world. Also in therapy, particularly psychology and physiotherapy, where we've got 13,320 clinics. We automate admin for over 17,000 practices every day. We've got over 75,000 active users every day across our products. So I want to start with where we're positioned. So especially now that there's a huge amount of disruption happening in the technology world. So the practice management software, which is the product that we sell, is the core of the practice, right? We the majority of the data of the practice is stored in the practice management software. We own the data schema. We also are the place where the majority of workflows happen. The people interacting every day with this data to try to input data and extract data are doing it via our services. We also have all the compliance feature built in for both veterinarian therapy, for example, and the permissioning. So if a receptionist has access to this data, but not this data and so on. We also have a lot of trusts that we're very thankful for from our customers when we build very closely together with them. We'll hear from two of them today on the veterinary side. But that's one of our key assets in that we can work together with them to build great products. And Next one is that we actually, when I started the business, we were around three and a bit million euros. And so we didn't really have the scale to be able to invest. Now we're north of 50 million euros of our current revenue. So we've got the scale in P&L to be able to invest in building a world-class product. We also have lots of different practices where we can actually push things out to them so that they understand how they're working better. The last thing is the team. James will talk a little bit about it, but we have a fully AI-native team on the R&D side. Even beyond, we see our team members across other functions beyond R&D using AI quite a bit. And we've done a big restructuring of our product in both in veterinarian therapy to make sure that we have a great team for this era. So It's always good to talk about here's the strengths, here's what we can do, but we've actually done something about it. We've launched a great AI script of a veterinarian therapy. We were also the first to market globally on the veterinary to launch AI billing, which is basically when you speak, it actually adds the items as well. We were the first in veterinary to launch an MCP, which basically allows you to query your data by cloud or open AI. And also, we have an ability to do this within the product as well with AskProVet. James will talk about this later. We've also been able, both veterinary and also soon therapy, gather all the data from all the different sources. There's PMS that was imported from the previous clinic. So all this data is hard to be able to access when you have a 15-minute consultation. So we've been able with AI to extract all the relevant information to gather a concise patient history. Another great thing is that one of the big issues that we've heard from pets and pet parents is that they don't get the information they need. Our AI discharge node enables to distill what's happened, the Medicare terminology into pet parents' language. And on the therapy side, there's a lot of forms, especially as you go in many different Nordic countries where there's a lot of regulation. And so a lot of the therapist time was spent filling in those forms, that same information again and again. And they've launched this AI form fillers. Where we're going next, James will talk a little bit about this, but for now, we're improving and automating the recording of information. Instead of people in practice being typists, they can just do their work and speak, and most of that will be entered into the database. The second is summarization of information. The next step of it will be us proposing the next step based on the information that we have and then taking action, obviously with clinician control in many areas and being able to coordinate better across the whole workflow and also enable agents to coordinate within those workflows. The goal is the same. This is just an enabling technology, but our mission and goal is just getting time back for the clinician, getting time back for the receptionist. a little bit about Nord Health at a glance. We breached 50 million of euros of signed AR. We've been growing north of 20% over the last five years. Our EBITDA minus capex margin is still negative 5.3. We've been investing a lot in AI and also in expanding into new markets. It's actually quite profitable to recruit new customers. Our lifetime value to customer acquisition cost ratio is around 16. That's because we invest a lot in products because we believe product is the way to win. Our churn rate, this is the unique thing about our business. It's the best thing and also the worst thing. It's like, churn rate of 3% means that people stay with us for 30 years, which is a crazy number. But it's also hard to recruit people from, even though they're legacy software, it's quite hard to recruit those people to move over to you. and then the net retention rate. This is the amount that a current customer spends more every year of us. This is driven by two things. One is groups are buying other clinics and they migrate them over. Secondly, we build new innovative products that we upsell to our customer base. So just a bit about the history. So that's where I bought the company in November 2018. And now we've been growing over 44% over this period of time. What I particularly like is the organic part. 75% of this growth has been organic. It's been conquering one country after the next. Next adjusted EBITDA. In 2021, we IPO-ed and we decided to get much more aggressive with our expansion. We invest a lot in the product and go to market to be able to expand in veterinary in the UK, US, Spain, Germany. You can see that this normalized. In 2025, we were aiming to be profitable, but then we decided to double down and invest on AI. in that there was a big disruption that could have happened. We see this as a huge opportunity to be able to accelerate our mission of giving time back to care. There's four main things we're trying to do across two buckets. One is our customer mission, which is making sure that practitioners save time. That's our number one mission. The second is that how is by making the software do the work versus people manually doing the work. and the where is we want to go. We're going into the UK, Germany and us on the veterinary side, on the financial mission, right, we want to grow a discipline. So we want to make sure that we're profitable starting in 2027. And every year thereafter, and second is 15% recurring revenue growth, plus or minus 2% as a group over the next three years. That's a bit about the overall. I'll do a little bit of a deep dive on the veterinary business next. Where is ProVet today? I'll go back to the same framework that I had for practice management software. On the data side, we've got 4,320 clinics using our software every day. On the workflow side, there's over 21,000 vets using our software every day. On the compliance side, we've got very, very, probably two specific permissions per role, per market, so that the different corporates can decide, do I want to be fully centralized or do I want to be fully local, have a full local economy? And you've got that ability to do that in ProVets. The fourth is trust. I think the best proxy for trust I like to use is churn. Actually, the veterinary business has even lower churn than average at 2.2%. Then the scale. We actually treat 1.7 million pets every month on ProVets. an R&D, James will tell you more about it, but we've been investing aggressively in building up these AI tools because we see massive potential to be able to meet our mission. We've got six agents live and looking forward to iterate on those and build new ones. In terms of the market in front of us, There's around 53,000 clinics in our target markets, so we've got 50,000 left. That's a huge amount of clinics. In terms of TAM, we've got 29.7, and our total TAM is around 570, so we're still a very small player just in our target markets. What we've seen is that in the Nordics, our EBITDA minus capex margins can be around 40% at scale. So we are aggressing very aggressively at our new markets, but that is normally the margin at scale. A bit more about the markets. We have around 58% of small animal clinics in the Nordics using our software. There are some competitors, all very local, mostly less than 20 people in those companies. In the growth markets, we only have a 4% market share. You can see in the UK, we've got around 14%, 12% in Germany, most of which are on Vetra, the software we acquired. 5% in Spain and 1% in the US. These are the focus markets for us going forward for the next three years. So, I want to break down a little bit more about where the growth comes from, in terms of market opportunity. The total TAM is 570 million euros, which is 19 times where we are today. More than half of it is from the US. We got a significant time as well in left in the UK and Germany and Spain. In the UK, our strategy is to go after the corporates. We'll hear from two of them today and there's four others as well in the UK, large ones. Same strategy in Germany, where the corporatization is much lower, probably around 10% versus 60% in the UK. Starting that journey with them. The US as well is also a corporate first strategy, where there's around 40 different clinics, chains there that are not yet consolidated on one software. In terms of unique economics, Last 12 months, in June, we grew 13.6%. Our net retention rate is 109. This is mostly about clinic chains rolling out net new locations. Churn was 2.2, as I mentioned. Our LTVD CAC is 26.7, which is quite healthy. The amount we spend on sales and marketing relative to is quite low versus the revenue potential. As we mentioned, the EBITDA and its capex margin run 40% to Nordics. We're now the one number one player by far and you're probably double the next And number two in the world after easy bed, which are my decks So in terms of the Revenue in 2020 in 2018, when I started, we're mostly a finished business. We used to have English classes. I remember on Wednesdays in the office, right? So it was a very finished business. Then we conquered the Nordics, one country after the next, probably too many countries at the same time. I've learned that hard away. And in 2022, we mostly had the majority of the Nordics using ProVets. we expand internationally in the UK, Spain, US, now over 51% of our revenue comes from beyond the Nordics. I still remember showing this chart where we had just Finland and then the Nordics was the expansion. We're looking forward to not adding new countries and focusing on those to make sure that we provide a great product for those countries. Then the second part is our enterprise growth. The Nordics was one of the first parts of the world to be corporatized. A lot of the big corporates actually had their first roll-ups be in the Nordics. We benefit from that and that those were our early customers. We really built ProVet to be an enterprise-first product. you can see this translation where over half of our revenue comes from PMS revenue comes from enterprise customers. We do also have additional revenue 3.9 from payments and other partners, which is a new business we built. But the driving force and we see going forward will also be our enterprise partners. In terms of growth, we have invested more in 2025, but we still remain both EBITDA balance capex and EBITDA breakeven at least. The slowdown in our rate of profitability in 2025 was a deliberate choice because we don't want to Be profitable, but not have the best product in the market. We're committed to when there is a opportunity for us to accelerate our mission, we will go after that opportunity to make sure that our customers get the latest and greatest. How do we differ from our different competitors? Compared to incumbent PMSs, one is we're independent. When choosing us, we are committed to building the best software that can save you the most time. We don't care if we sell you more lab tests or we sell you more get more volume for you on your wholesaler. We're committed just on that one mission. Second is we have made a big pivot to become a native AI company. James will talk a bit more about that. The third is we don't talk about having agents, we actually built them. Then you can judge us based on the number of people that use us, those new features. right, there are some startup PMSs in the US and UK, for example, The big differential of us versus them is that practice management is hard. The best thing was the churn, the worst thing is the churn. If you're a VC-backed company and people don't churn, it's very, very hard to be able to gain that scale. The financial stability is not there. At some point, they might be successful, But there's a big chance that the amount that they spend, they lose every year. If they don't get the next round of funding, they might go away. Then, relative to start-up PMSs, we spend a lot of time on building secure products. The threat of security is increasing every day. The next is that we've built an enterprise-first product with centralized reporting, centralized pricing, and item management. We are proving it at scale. We have actually run hundreds of clinics on the same database. Then there's new competitors, which are AI scribes. There are point solutions just doing the clinical workflow. Yes, they are AI native, they've got good agents, but you have to switch between one software to the next. They're only point solution, they're not only one solution. They also could go away because they don't have the financial stability and they don't have all the different enterprise features required. That's how ProVet is positioned in the market. Now, the two growth levers. When new locations right so we've got three thousand six hundred locations on provides and of five thousand three hundred sixty and the second is as we Add net new products we can grow revenue per location from round five seventy two thousand and nine hundred I'll go into each of these separately so The first is on locations. Number one is the UK. We've got around 6 million of AR today, and the total TAM is around 60 million. We've got 14% of location. TAM is higher because of the AI adoption rates as well, increased the TAM. As you can see, 16% of the market is owned by the top six players. That's what we're mostly targeting in order to win the UK. Second is Germany. We bought Vetra in January 2022. We left it there because we wanted to focus on the UK and implementing our corporate partners there. We've got around 2.4 million of AR today on Vetra. The total market's around 80 million. very little, a few clinics are actually owned by the big five, around 4%, but it's growing quite fast. This is a market that's very underserved. The majority of the clinics are on server-based software, so they actually have a server in the clinic, and it's the 21st century. Germany is normally quite a laggard on this side, but over time, they will shift over to a cloud provider. There's no current cloud provider in the market. Then the US, so focus on US enterprise. It's just repeated the playbook that we've had in Europe that's been successful with us. The nice thing about the US is, and what I want to, yes, it's a really tough market, but the expectations are high. If we do this, it also benefits all the rest of our customers in the rest of the world because they're fussier. Finland's the happiest place in the world, but it also has the lowest expectations. That's why there's a happiness gap, and that's why we can provide a great software, but the US, they're really fussy. When Microsoft first launched one of their products, they actually went to Japan because they were really fussy customers, and fussy customers build great products. We look forward to, and that's also why we spent a lot of time with enterprises, because they care and they're very detail-orientated, and so that's how you build great products. That's the locations. Then revenue per locations. We're at 570. We make roughly 500 from selling the practice management software, 70 from payments and AI today. There's a huge opportunity for payments, which is around 450. Then we also have the potential to upsell AI. We're actually making it quite affordable for everyone. It's around 120. Then conversations, which is something that they use third parties for, which we're bringing in-house. With the current pricing that we have, that is the change that we can have in ARPU by upselling our customer base. So talked a lot. I want to summarize. So what to take away? Number one, we are the number one player in Europe, right? We've got around 30 million AR, right? We've got great Munich economics. Like the reason I bought this business is this churn rate. It's a great, great thing to have very low churn rate and faithful customers. Second, we've got good net retention. As our customers keep growing, we've got the opportunity to upsell them net new products. It's very affordable to recruit new customers. A good LTV to CAC is three. We're at 27. Then the third one is we don't need to go into new markets to be able to grow 19 times bigger. I'll finish with the opportunity. I'll hand it over to James who will go through a bit more detail about the opportunity. Thanks for your time. James, I'll hand it over to you.

Okay, so just firstly, can everybody hear me? All good? So to put this into perspective, the last time we had a Capital Markets Day, which was in 2022, there was a new upstart product called ChatGPT that just launched. So like a lot has changed in the last four years in terms of what we expect out of software, what we expect out of everything that we do. So this section is just meant to show you kind of where we are at the moment, how we've gotten there and where we're going in the future in terms of AI. I'm also very aware that AI is one of these empty buzzwords. So I would say I've got some examples of things we're doing the product right now. If you're watching this, and you're physically in this location, we'll just come next door at lunch, we'll give you a demo of all the latest things. And just show you how this is transforming. It's really exciting. So We've got a really interesting sweet spot that we find ourselves in in that we've been around for a long time and we have these things at the top, which are assets that take years to build. So being able to operate in many different locations to have all of the workflows, the permissions, everything takes a lot of time and actually working with customers in real life. And we have also over the time that we've been Operating we have structured data for all of our customers thousands of clinics We have a really rich amount of data behind the product And probably the most importantly is that we as a company are highly trusted in our industry We've got flagship customers some of which are in the room. Thank you for coming who trust us to store their data protect it and make sure that the right things are done with it and We have that, and that's the foundations. But what we also have, which is really interesting, is where we are today, is that we have a huge amount of engineering velocity. So we have a very strong team, which I'll get into in one of the coming slides. But importantly is that in the last year or so that I've been here, We've really upskilled the team. We've completely changed how we deploy software. We've ripped out and rewritten large portions of the stack so that fundamentally now we're starting to manifest into the products all of the AI things, which I'll show you some examples of from Scribe to Summarizations to AskProVet. These things are now manifesting as a result of the last year of what we've been building. This slide as well, if you see this grid thing going on, We kind of have the best of both worlds in that if you're an incumbent PMS like EasyVet or one of the other competitors that we have, you are not this independent technology-first SaaS company, which is what we are and what we intend to be. So yes, you may have depth and breadth of data, but you don't have the infrastructure to do what is needed for the future. And also if you're a startup PMS, yes, you may be coming to market with a new tech stack, but we have the trust and we have the operational capability across many geographies to do everything at scale. So we're really uniquely positioned in the middle. And also with these AI point solutions, which you see as well, there's lots of scribes, there's lots of these nice little tools that you can use. sure, they're great. But fundamentally, if you think of like a hub and spoke model of a wheel, you know, we are the hub, you know, we are at the center of a clinic, we have the data, we have the knowledge, and we have the trust. So we find ourselves in the middle of a really nice situation where we have both data and the trust, but also the skills in order to really move us into an even stronger position with our software. We only really had to just add agents now on top of what we're doing. We don't have to rebuild everything scratch. We've done that journey. So what we've been doing over the last year is effectively a rebuild of the team. When I joined, it's safe to say that we were quite underutilizing AI, both in terms of how we built software, but also how it manifested in the product. So that's been my focus since I got here. I joined just over a year ago. I used to work at Shopify, somewhere that was very first to market with all of that kind of stuff. And it's like, can we do this at ProVet? So both myself and our new VP of product have been on this transformation journey with the team. So it's an expectation now that every engineer who works for me, you are generating code. We're using AI tools in order to ship software. We've gone from shipping weekly to hourly. We've already shipped about six times today in the time that we've been awake. So it's a big R&D transformation. And on top of this as well, we are at the moment very, very fixated around the talent density of our department. So I don't have any... big plans to triple the size of the team, I want to keep the team the same size and then make sure that everyone who sits in one of those seats is both a high performing individual and they've earned their place. I see over time us staying the same size or even getting slightly smaller because at the moment with AI, as you know, everyone's theoretical upper bound of their productivity is unknown. So we're on this journey of seeing how productive and how efficient we can be. We're fixing the size of the team and then just seeing us grow that way. So just in terms of some sort of stats at the bottom there, 100% of engineers now are using AI tools to generate code. Almost 100% of our code is generated now. We don't write code anymore. We've spent a huge amount of time working on our code base and our tooling to allow agents to work within it. Just measuring from when I joined to the end of last year, for example, we had a 130% increase, over double the amount of lines of code shipped to production, and doing it basically hourly or less compared to what used to be monthly releases. under the hood over the last year, there's been a huge amount of team rebuild going on. This also transfers to how we think about building products as well. Amy, who I partner with, I've worked with in the past at Brandwatch, which was one of, I think will probably remain to be in the future, the South Coast of England's biggest exit. We grew Brandwatch there and sold it to Cision. High trust with my product partner and all engineers or product managers are super fixated on the two things that Charles said are really important, which is like vets need to save time. And also they need to run their businesses really well. And that's everything that we're focused on. So in terms of the technical side of why that's important, we have completely rebuilt our data warehouse. So all of the data that's stored in ProVet is now in a completely different systems when I joined. We effectively have one clinical data model for all of our clinics, all of our countries, all of our locations. The storage is far faster than it used to be. Not only is that good for scaling to customer growth, all of the stories that we've rewritten everything into is built for AI. When you use AskProVet, It's the data model that we've rebuilt that's enabled that to happen. In terms of our stack, it's not exciting anymore to say that you're in the cloud, but we're a modern cloud-native API-first company, and all the technologies that we choose now are to enable AI in the products for our customers. The really important thing as well is that because we've been in the game for a long time, we have great compliance, great audit trails, all the kinds of things that are afterthoughts that the startups will have to think about. We have true scale. We are multi-region. We have a huge amount of data. The more customers we have, the more data we have, the more insights and the more that we can do with that data as well. It's a virtuous cycle, which is really nice to be in the center of. So you can talk about AI, but it's worth just to see in the product. So I think I took these screenshots on Friday. So this is real. We've talked about AI Scribe, and we've talked about summarization, which is where in the consultation you can speak, and it will capture the conversation, create the transcript, create the notes, create the AI actions. And again, if you're here in physical location, you can get a demo. But also by rebuilding all of the backend, we've enabled something like AskProVet, which we recently shipped. So the other part that we find vets struggle with, especially if they're not part of an enterprise group, if they're a solo vet or if they're part of a small chain, even though they got into veterinary medicine, they unwittingly also have just become an entrepreneur. Even though maybe that wasn't the training or background So a lot of the challenge as well is like how do you run a good business as a vet? Which is hard because you have to think about a lot of different things So by using ask pro vet and putting agent on top of our new data stores We can provide the whole kind of chat GPT Claude and the experience in the product to allow you to explore your financials, to alert you to, are there any gaps in your revenue? Is there an action you need to take? And as time is going on, we're adding more and more data to this so that effectively it becomes your sidekick that helps you within the app in order to run your business as well. So we're really excited about this. And you can ask open questions. It can generate data for you in tables, natural language. It can give you suggested follow-ups. It can break things down in charts. So really the whole experience that you expect by using Claude or ChatGPT or similar, we've brought that into the product, liberated on all of your data so that we can help vets run their businesses better. And again, about the foundations that we've been building, by over the last year rebuilding all of our back end to enable products like AskProVet, the nice thing is that within an extra four weeks, we shipped our MCP. We'll be doing the marketing launch of that very shortly, where for users who love Claude or ChatGPT, they can just authorize with our MCP server. And then outside of ProVet, they can ask whatever questions they like about their practice. So as an example here, using ProVet appointment data, make a graph of my busiest hours and show which times I have the most customers. Using the MCP server, it can tell you that, and then you can go and build your own tooling. You can chart it how you want. You can export the data. By getting those foundations in the right place over the last year, we're really seeing all that underwater iceberg start to come above the surface, and the fruits are spilling out now, which is lovely. This kind of gives you the direction that we're going in terms of AI. It's been a rebuild of the team. It's been a rebuild of how we work. And it's now manifesting in the product. And it's just the beginning, really. There's a lot that we want to do. So with that, ends my section on AI. I'm really excited about all the stuff that we're doing. And I'll hand you over to Alex for the next steps, I think. Thank you. There you go.

Thank you very, very much, Charles and James, for these incredible insights into the massive opportunity that we have in ProVet and the product we're going to build in order to capture it. We're going to take a 10-minute pause now just to allow the fireside panel to get set up. And so for those watching the webcast, we will resume the session at 1.45 UK time.

we've got a fireside panel with two of our largest customers. One is Richard, who is CEO of Vets for Pets, and we've got Graham, who's Director of Innovation and Transformation at CDS, two of our largest partners. So I want to maybe to we'll have a discussion all together to talk about the industry to talk about The practice management software as a space and then their experience with ProVet as well. So maybe I'll kick off with If you could briefly introduce yourselves and your business Maybe you can start with Richard.

So yes, so I look after the vets group for pets at home and We are the largest first opinion practice, which essentially means entry level vet group in the UK. We make up about 10% of the vet market in terms of the sector. I've been with the business now for just two years. My background has been broadly in operational and performance management, including military, operational sport, retail and hospitality. The vet industry is a relatively new one for me. I think one of the really interesting parts of it has been in recognising how you know, how actually there's a huge change. We'll talk a little bit about the change in the sector in terms of how pets are seen, but also in terms of the, you know, the brands that look after the clients that own pets and how important that is and how that's changing as well. We have 460 vets practices across the UK. 330 of those are within the pet stores, and then the remainder are standalone vets across our ecosystem. We have a very unique model. Our vets model is essentially very similar to a franchising model. It's called a partnership model. So we work in partnership with all of our vets practices. The difference between franchise. So we provide all the service support that a franchisee would and also the management support as well to support all the management administration behind running a practice centrally. But what we don't do is we don't dictate any operational or clinical guidance. We provide support. So our practices have complete operational and clinical freedom. And that's the difference between franchising and partnership. So we have a really unique model, 460 practices, and we have about 600 different practice owners. So when we talk about entrepreneurs, we have about 600 different variations of that, all under one brand banner. All running local practices as part of a national chain if you like

I'm a veterinary surgeon by background, and as Charles mentioned, I'm director of innovation and transformation at CVS Vets. CVS Vets is a listed company. We've been around for, I don't know, 20 years now. I think growth predominantly through acquisition, mostly in the UK. We have about 500 locations across the UK and Australia, and the vast majority of that is first opinion veterinary practices. There are some similarities. We don't have a tell approach with our practices. We very much support them to grow. We recently moved to FTSE from AIM. That was in March last year. I think, although our results aren't produced until September, our interims kind of stated that we drove about 700 million revenue this year, which turned into 140 million EBITDA. we employ 9,000 people, 3,500 of them are vets, a similar number of nurses, maybe slightly more. I've been there about 10 years myself. As I mentioned, I'm a vet by background. Before CVS, I had my own practices. I grew them, sold them into CVS, which is how I ended up there. So very familiar with that journey. And in the first five years of that tenureship with CVS, I was in operations. So I ran our referral division. We have a few multidisciplinary referral centres scattered across the UK. and I also ran our equine division as well. One of our areas of veterinary practice, we decided to diverse into a while back was equine and I ran that. But throughout my whole career, I've been really interested in challenging the norm, which is, and I used to do that a lot at the exec and for my sins ended up in this role. So for the last five years, I've been overseeing the transformation of many of our processes, but most of them center around technology, which is I assume why I find myself sat here today.

Maybe I'll start with you on the what do you see as the biggest source of friction or inefficiency that led you to make a change in practice management software?

That's the right to do it myself, right? Yeah. So I think when we're looking back at the systems we did have before, I think it was mentioned by one of you guys earlier. we had a standard kind of traditional practice management system software written on Visual Basic 6, you know, a very old piece of kit running on practice servers. I had to laugh when someone mentioned that earlier. We were that operator. We had made the decision to move to one PMS way back in the day for lots of reasons. But when we sat down five, six years ago and thought about the future and we thought about the things that we wanted to achieve, clearly this wasn't the route for us. It wouldn't open them up. And we saw it at the time. I think there were three key things, I think, thinking back to that PMS that were a challenge at the time, let alone our future aspirations. And I suppose those are the things. The first one was inefficiency in the consult room. There were lots of clicks to get anything done. You've talked today about making life easier for the vets. It certainly wasn't. And this was measurable. We saw it in things like billing audits. We would do billing audits to check that billing matches work done and it didn't. There was a lot of opportunity to kind of close that gap. Now, not all of that gap was the PMS, but a significant portion of it was. It was tricky to... Bill accurately was just one example. I suppose the second of the three was, you know, as we grow as a business, we wanted to be able to standardise and centralise a lot of processes. I mean, I've just mentioned we're there to support our practices, not tell them what to do. But it's much easier when you've got SOPs and protocols to help do that. And we couldn't do that. I mean, again, because of the on-prem infrastructure, I think we had about 450 instances of that PMS across 280 servers. And to try and put anything out centrally was nigh on impossible. And I suppose the third thing was data, a big, big one. We really wanted to get more out of our data. And we've been working very hard to take data from hindsight to foresight in CVS. Hindsight, we were okay, actually. We could pull reports from our last PMS, but they were pretty static and pretty slow. And again, due to that infrastructure, hard to get access to. So we needed to move. And so those are sort of three big things outside of cybersecurity and various other things that made us think we need to make a move. Thanks.

What about you, Richard? Do those chances resonate with you? And what was the original decision for...

It was like a shot to the heart when I heard you talk about server-based businesses earlier on because we are still server-based but transitioning out of that. Yeah, definitely, clearly, one of the things about advances in technology, digitization, and everything around that is that at some point, you have to recognise the need to change and legacy systems start to hamper you rather than help and enable you. So that's definitely, and I think you go through a period of denial initially because it's a big change and an investment as well. I think when you look at the last five years within the sector as well, the sector has grown disproportionately in terms of its volumes. So you need to be able to increase your capacity, enable and increase capability in order to really make sure that you can continue to grow at pace with the sector as well. And so you need the right support enablement to help you to deliver that successfully as well as that. So I think really for us, a combination of all those things in recognising how You know, we need to change and really move from being a very analog based business into a digital and AI enabled business, actually, in terms of in terms of positioning ourselves.

And so maybe starting in history, CVS was the first one to choose. So why did you choose ProVet versus any other practice management softwares out there at that time?

As Richard says, a big decision. And, you know, there is a little... Yeah, exactly. Exactly. Your turn was informative. Yeah, it was a big decision. But we knew that we wanted to do that. And the examples I just gave, they were today problems of the time that I didn't even touch on where we wanted to be in the future. So it was clear that's what we needed to do. So first of all, I think we started off with some golden rules that we wanted to go out and explore all PMSs with. And they included things like we wanted a cloud native product. I mentioned cybersecurity already. we wanted something that we could integrate with other third party industry leading technologies as they developed to give us that flexibility and scope. And when we applied those golden rules to probably 30 plus PMS as we looked at, those rules alone whittled the list down to very few within which ProVet sat. we then came up with an internal assessment tool that we designed ourselves, really. And again, that looked at some of the problems that we have that were today problems. So things like diary management, billing, stock control, all that kind of bread and butter stuff. and a site and beside that some of the future things that we would like to be able to do and We then scored that we literally spent time with yourselves and other other players and you might remember those days We got access to the sandbox and played with them all and we scored them literally scored them and prove it consistently came up as the leader as a product So the next thing obviously, of course all the due diligence and things needed done. But the next thing was for us to do a trial. And that was to really sense check our conclusions on the product itself. But also, we can tell you this now is to test whether or not you guys were going to be a good partner for us. And of course, it went well. I think we did one practice that we really focused on for a couple of months, and then we moved to half a dozen practices for a few more months. And we were testing things like how well you guys could support us with the changes that we would expect to see, how adaptive and responsive you would be to things that we believe were gaps and stuff. and just general support, which is mentioned throughout the partnership for first for scale, big, big scale business is really important. So that's, that's how we did it. And that's how we ended up with ProVet. So to summarise, we had a very open mind to begin with, we didn't have a, we didn't have a clear view. And I think even back then, it wasn't so clear, there wasn't so clear how many of the players that were out there were really trending towards the top. Fast forward to now, I think, as you've conveyed today, that's a slightly different picture. But yeah,

I think we recognised really quickly that when you look at, so one of the things that Charles has brought up, which is relatively unique, is that you're in it for the long term in your partnership. So not only are you making, you're making essentially a quarter of a century decision On the back of a change when you look look in the rearview mirror has been has not been made more often than Half of that period time period so anything from 50 to 20 years So so it's a really significant moment in time. It's a significant change decision And and there's a lot you have to consider within that we did Primarily the same so we took a representative group of our own practice owners because that was really important and Slightly different needs because you've got a need to have a certain level of local customization in order to have that clinical and operational freedom, but at the same time within a framework of a really sound and solid future-proof system with a partner that you know is going to be there in the next quarter of a century. That's really important because it's a substantial investment as well, of course. Alongside that we reviewed and tested 50 different operation systems And then and then slowly work those down I think partly I would reflect I think the sales team was one of the best definitely with what it promised And actually some of the stuff you are delivering now, so that was pretty true But not only that yeah, I'd echo what Graham said about partnership You know that you? you're trying, there are two things here. So an enterprise system with international influence is really valuable because you get to gain all that benefit as the system develops and the inputs internationally are also helping to develop the capability as well as us also contributing to that too. So a really meaningful international reach enterprise system has been really important to us. And then alongside that, I think just a great partnership where there is always going to be give and take. And you don't sweat the small stuff together because you really tackle the big stuff. You have patience with each other. You understand each other as much as you can. And you challenge each other as well in the right ways. And I think that I'd always measure the value of a partnership in how the team feels about actually interacting and working with. And if the team enjoy it, then that's a really good sign that you've got a good partner.

Maybe for both of you, you had your structured assessments, you did your pilots. What came out after this that you didn't think was important, which you think is important today?

there's one for me, which I kind of noticed, and we'll probably come to the rollout that we did later in the conversation. And we I don't think we assigned enough importance to how intuitive the system is, actually, we I don't know if we kind of overlooked it or not. It seems obvious now with hindsight. I think we were just so used to platforms not being intuitive. And we in CVS, we've got, we call it knowledge hub. I'm sure you'll have similar to training platform where we have a mixture of sort of bespoke training that we've done for whatever we need to help support our practices with. And the practice management system section in that was huge at the time for our previous system. you may recall, we came up with some videos and training sessions for ProVet, and we did it ahead of our ultimate rollout. We did, but we always are monitoring everything. And we were looking at compliance of that training versus engagement in some of the workflows. And again, there was huge mismatch. There wasn't much training done. And the teams managed to do it. So our conclusion was they either taught themselves or they or they learn from each other. And both of them are great wins, you know, in the spirit of working together and getting everybody on the same page. So, you know, as it transpires, as I say, I'm sure we'll come to it. We did quite a quick rollout of the system. And I don't think that actually would have been achievable if the system wasn't so intuitive. So I suppose that's one thing I would acknowledge.

I think there are two things for us. The first is the realization that you're having to engage with a group of practices who aren't asking for this change. They know it's necessary, but they haven't invited it. You are forcing it on them because it's necessary. You come to end of life with one system. You've got to move with the times. The recognition that there have been over a decade of customization on something they felt really comfortable about to say, we're not going to change that. and helping them to understand the reason for the change, but not only that, actually really help them to understand the intuitive nature of what a new system might feel like. And I think alongside that, and I think this has been probably the most interesting development is, I think prior operating systems were highly administrative in terms of how they support the way the practices work. The reality is now that the development and capability of the platform that you run in a vet practice actually starts to inform you about how you change the design of how the practice works. and how the practice delivers the experience to its clients as well. There are probably three key areas there. I know some of these have been touched on. The first is being able to consult with a client and their pet without needing to touch a keyboard. That's a massive change and shift in terms of in terms of care, interaction, and also the capability of being able to then harness data to be able to prompt and suggest and really enrich that consultation, which can all be fed, you know, can actually be fed through that whole experience. And then removing time in terms of actually then having to make notes afterwards and how you administrate that. the connection between the consultation room and then the administration within the practice and how that can be enabled and completely changed and differentiated in terms of providing different levels of information and also providing information in a really CMA compliant way as well. So one of the key things from the Competition and Markets Authority has been about transparency and about itemization and about clarity and actually having a platform that enables you to automate all of that and provide that in the right formats actually means that those elements aren't things that practice have to think about because they can happen automatically. And then the final part, which is one that has surprised us, is that there are three things that come out really clearly from clients as customers. The first thing is that the number one thing that they value actually in terms of digital integration is online booking and how useful that is. Even if you've got a terrible online booking system, they value it. AI means that you remove any clicks to an online booking system and it becomes a conversation about then customising the booking to the best slot, your best preference. When you then step back from that and you think about the client experience in a reception, because the one thing about vets is you're always going to get physical visits. That's guaranteed. That will always happen. but actually the experience within a reception in terms of, am I acknowledged by the reception team? Is my consultation on time? How well informed am I? Currently sits around a checkpoint, which is the reception and actually being able to remove the reception desk and make it more about a client hosting experience because the digital functionality of the platform can support more self-help from the client and more guidance, suddenly revolutionizes the way that the client feels about, first of all, experiences care, and then how they feel when they walk away from the practice and think about your brand or about the experience. And those things have really, I mean, I think they've been certainly more recent Beneficial developments and they will just become more and more relevant to what we do Maybe shifting on to rollout.

So in 2024 CVS rolled out Almost 350 clinics in six weeks still remember call for the eight weeks deadline Back in the day. So so what made it possible to implement at that speed? And what did you learn from that experience? If we do it's how would you do it? I

Lots of sleepless nights. The product helped a bit, but the people clearly were really important, having the infrastructure around us to do that. It wasn't just rolling out the PMS for us. We also had to take care of hardware and various other things. There was lots of stuff going on in the background. Within our business, we had project management support, change management support. We also built a team of specifically trained PMS support people, which you helped us with. You provided your own and you trained up some of our own people. And yeah, a lot of late nights. Having trust in Nord Health as a partner was key. We really had to make sure that data transfer migrations and things were done every night on time. And I remember, you know, practices would close at 8pm, the data migration would be done, tidied up, checked, and by midday the next day, they would be all on their new system with their new computers. Richard's kind of covered already, it's a big change and people in practice feel like it's been done to them. But if you explain the why, which I think we did effectively, it worked. And moving at pace was, I think, a good thing because quite quickly it created a critical mass and everybody was in it together. And I think once we'd made our minds up after that trial, that's what we wanted to do, it was the right approach. Whether I would do it in six weeks again, I'm not sure. We wouldn't go that fast. But certainly, I think once you've made your mind up, going for it's the right thing.

And what about you, Richard? So the 50th clinic is now on ProVets as of July, right? And how's the experience with experimentation so far?

Well, we're about through 75 now. We'll be at 100 in September. You know, for us, I think it's always the fear of the unknown, I think, is what prevents you from feeling comfortable taking certain levels of risk. And I really admire, actually, what... Graham and the team have done, and I think there is always a great attraction to actually leaning in that direction and going, you know what, actually, it may be some short-term pain, but getting everyone through it and all together on it actually is not necessarily a bad thing. I think we have taken a more considered approach simply because we are very conscious of each individual practice being business-owned. essentially. And that doesn't necessarily mean that we won't consider and shouldn't change the approach we have. But we're certainly at a pace now where we're doing 12 a week on a regular basis and continue to roll through. We're seeing a much better level of consistency and confidence, which I think is really important. And that starts to then build advocacy and then builds understanding and builds excitement, actually, to a certain extent. So, yeah, I think we're in a good place. I think you have definitely challenged our thinking more than sometimes we'd have liked to. But I think that's what a healthy partnership all means. And that's really helped us to also, I think, hold our nerve when you make decisions to step into the unknown and rely on that experience that sits around you and to give you confidence that you're not stepping into the unknown alone. You've got experience and support around you with that.

contingency in place, but I think of those 340, I think there's only one or two that didn't didn't quite go to plan. And we we got got there in the end. But yeah, it was interesting times.

And so now shifting to AI, like, where do you see the AI creating the most immediate measurable value for your practices?

Yeah, so I think I probably touched on the three key touch points that we've identified. But actually, the reality is that it's only as good as the data that you provide it with. So for us, actually, and it's one of the big benefits of cloud storage, again, is that actually data sharing is much easier and smarter. But actually, also, we've got to remember that we're part of a much larger pet group. And within that, we've got an incredibly rich seam of data in terms of on clients, customers, and on everything to do with pet care, actually. So really being able to harness that, not just because it's beneficial, you know, commercially for the group in terms of actually being the UK's only complete pet care provider, but actually within that as a vets group, being able to use what is essentially independently built data at a server level by practice to be collectively harnessed as a total means that every practice benefits from that and benefits from the information that that provides to help it to make decisions, to be more intuitive, to be more efficient, more effective. and to help guide it based on really, really good quality information. So, you know, without the data, you can't harness it. And I think for us, it's been that's been really important in recognizing how important how significant that is, because that sets the foundation, and then you've got to enable it with the with the way that you can provide data and share it in order to then be able to really harness it.

What about that CVS? Where do you see the opportunity to transform your workflows?

I've got to agree with everything Richard has just said. I think going into the console room and looking at some of the stuff that you can showcase today next door for the people in the room, really clever stuff. I do think that the opportunity for efficiency lives mostly in there, any interaction around the customer. a pet parent, to use your terminology, to give that vet focus and time to interact with them properly, I see a huge benefit there because it does. And as I say, as a vet myself, it does distract you somewhat having to constantly turn away and make sure that your notes are typed up when you're already running five minutes late for your next consultation, et cetera, et cetera. You get the picture. But then also the client experience that we would love to deliver that for the same reasons we struggle to do. I mean, I think it's a I don't know if it's a real stat, but it's said that, you know, a veterinary customer will leave the console retaining only 5% of the conversation that it's had. We would love to be able to send them home with access to comprehensive notes that are relevant to them. And that's easy to do when you've got plenty of time, but you don't, whereas AI can do that. And as you know, we've been trialing that element of your product for a while now, and that's really transforming that customer experience as well. So I think the sticky touch points are in the console room and giving the client that experience that sort of extends beyond that. I really see a huge, huge value there in the day-to-day workflows. But then within the data as well, I mean, again, we just touched on data already. And I mentioned earlier, we want to get to the point of having real foresight and understanding what our clients are doing across the business. CVS as well. We do have our veterinary practices, but we also have our online pharmacy. It would be great to have a single customer view across our entire estate and start to understand what behaviors, if anything, do exist out there. even if it's down to disease, what is the incidence of arthritis at certain age groups and certain breeds? What might that do for our business? Should we be reaching out and utilizing this platform and CRM to contact customers sooner with breeds and species that fall into that bracket and get those patients into care faster and sooner, which is great for the pet, great for the owner, and is hopefully commercially successful as well. So two key areas. There's the sticky touch points that make the workflows clunky. And then I think there's a huge bit on data where we could start to strategically inform how best to grow the business and provide better care to those patients that are going to become ill as they get older.

How do you make the decision on whether to build your own? Both you have access to development resources or buy a third party for that or have it in the PMS?

early thinking this one, we've done a few, we've trialled third party apps at the minute across our estate. They've gone well, they're good, some of them. I think what you're doing now, I can see the acceleration and we're utilising your product really well. I I feel my gut feel at this point is that the more you can have within the PMS, probably the better. I'm happy to be challenged on that view. But I think although at the minute the use cases are early, I think as things expand, applying that AI beyond just scribe technology and extending it into looking at the history of that patient in conjunction with other anonymized data from other patients of same backgrounds and things like that, I think it would be much faster. Whereas third party applications don't have that level of integration, can't work that fast. And then there's just the simple administration of that technology in the consulting room. Having more windows open is more clicks, which is clunkier, et cetera, et cetera. My gut feel from the way I see it evolving is nascent, but I think if that can be achieved, which it looks like you're on the track to do, that would be my preference at this point. I will keep an open mind.

I agree. Simple is better. The constant development in technology and how you can use it, if it doesn't make things simpler and easier, then it becomes a real challenge. These are highly complex systems in terms of what they're able to do. But you don't want to have to worry about that. The complexity of the system should take care of itself. Actually, the simplicity of how that means reducing actually the number of providers you work with, reducing the number of systems you have to try and access in order to enable you, I think is always going to win. And I think simplicity is such a critical part of being able to deliver success in an ever complex world that, you know, that's it.

Yeah, we both want our vets and nurses to vet and nurse. The more we ask them to start playing with multiple systems to achieve an outcome, the harder that will be and the compliance will drop. So I think that fits with that conclusion there.

Maybe we're very deep on the veterinary industry, but just for the investors here, if we zoom out, we've had the pandemic, MR, boom in pet ownership. What do you see the outlook for the veterinary industry in the UK more broadly in the next couple of years?

So yeah, what's been fascinating? So not only have you had a massive growth in volume of pets, 38 million pets within the UK, you've also had significant capacity and growth within the sector as a result of that. Pet ownership has changed significantly too. The US commonly refers to pet parenting. Pet parents are a very clear definition of how pet ownership's changed. The dog in the home now has a place on the sofa in front of the TV. They used to be in a kennel. The indoor plant in the sitting room has been replaced with a cat tree. I was in one of our pet care centres the other day. It was very funny. And there were and there was a couple there in in a dog isle And one of them brought out this dog safari outfit and said, what do you think? And their partner said, that's perfect. We need to get that. So that just again helps to reinforce how the pet sector has changed significantly. And if you zoom that into what that means for vets, I think that the sector is going to continue to remain strong. You've got a very high volume of COVID pets who are reaching maturity and going through maturity in the next five years. We refer to that as a smile curve in terms of the maturity and the need for vet support. And I think that you can also see that technology continues to move on, you know, and the industry is really shifting from one of treatment and responsive care to preventative care and all based around wellbeing provision through life stage. And that's a big shift and that will continue to move forward, particularly pet health, preventative health and how insurance and subscriptions wrap around that to provide and make pet care much easier.

Yeah, just literally the same. I was thinking, oh, better mention preventative pet care than you did it already. Yeah, I walked around Kensington Gardens earlier and there was a few dogs in prams. So it's interesting to see. I completely agree. But yeah, I think the future is really bright. I think the post-COVID boom, as you say, veterinary spend is somewhat reluctant from a client's perspective when it comes to reactive care. And there's no doubt that the puppy and kitten boom that we saw I think, as I mentioned earlier, utilising technology to make sure that we get that opportunity to speak to those clients as soon as possible is going to be key. And as I say, using data and using CRM, I think we'll be able to do that better than we've ever done before. And I do think that, you know, the way the generations are changing and our pet owners are changing, I think we're going to be able to do that better than we've ever done before. ages and the Gen Zers that are coming through that own these pets, they want to be able to do things in their own terms and their own times. They belong to a subscription model world with Netflix, Prime and all these other things. Our health plans that we've had in the sector, which in the past have been product led to cover the cost of warming, fleeing and vaccinations and things like that, will and should change, I think, into service led propositions which will enable, I think, clients to bond with their vet through their pets life, so that when the pet does start to become ill, they can be seen sooner. And that reluctant purchase that I mentioned will be somewhat less reluctant at that time. So I think with tech enablement and those changes in dynamics, I think the future is very bright for the sector. And I'm very proud to be working in it.

Thank you both for your time and thanks for your partnership. Thank you.

Gray and Richard, thank you so much for coming down today and doing the panel with Charles. I think you've given our investors and audience more insight into the industry that we serve, the client base, than we ever could have. So a massive thank you there. We're going to take another comfort pause now. say 20 minutes, so we will reconvene at 20 to three UK time, where we will kick off with Karan on the therapy business. So see you in 20 minutes. Welcome back, everyone. Next up, we have Karan Walia, our CEO of the therapy business, who will be taking you through the strategy for that business.

Okay, good afternoon, everyone. I'm Karan Walia, CEO for the therapy business here at Nord Health. I spend a fair amount of my time with customers, so that's therapists and clinicians, because I think that's still the fastest way to learn about our business, the market, regulation trends, our customers' business. And it's, you know, often you pretty much hear the same thing, which is, You know, these therapists, they've been trained for years to serve patients and treat patients. And still they have to spend their evenings, nights, weekends, you know, doing hours of documentation, filling forms, and writing notes. And for every hour of, you know, administration that we can help them save is an hour they spend towards treating more patients or providing better care outcomes. And that's really the job. That's what the therapy business is about. That's what our mission is and what our product solves for. So over the last almost two years that I've been here, I focused on maybe a couple of things. The first is enabling the migration of our users in Norway. The second is consolidating our lead in Finland. And lastly, building an AI-native operating system for therapists in the Nordics. So our core segments are psychologists and physiotherapists, so musculoskeletal and mental health. And first thing in the morning, they open our software. They spend the entire day in it. So it takes care of everything from patient intake, their calendar availability, medical records, journals, invoicing, insurance reimbursements, and so on. So really the administrative side of practice management. along with the medical records, electronic health records in one system. Our system is the center of gravity for the clinic's data and their operations. and we have 13,000 clinics, 27,000 therapists that trust us with the most important part of their clinic, the most difficult things to move for our practical purposes, which is the clinic's memory, so their data again, and their daily operations. So unlike a point solution like telehealth or patient engagement tools or even an AI scribe, we're not optional. We're not an add-on tool. We're really what the clinic is built on. So they build their entire practice around it. They have 15 years of patient history and therapist history in that system. So patients and therapists will come and go, but really their practice is built on the system. And I think that's what makes us quite defensible. Also, the third point here, compliance, that's generally speaking quite an underestimated factor in our business. Every time regulation increases, rules tighten, or data privacy rules tighten in different markets, audits, which are becoming more routine, certifications, which are becoming more expected to win larger accounts. this continues to increase, and every time this increases, it makes it a little bit harder for a new entrant to enter this market because the barriers continue to go up. But for us, this is business as usual. So organically, that gap against potential new entrants tends to widen for us. you know, when you take that along with the trust that our customers give us, you know, the churn rates that you can see, the scale where we have the opportunity to serve, you know, more than half the therapists in our market, along with the R&D muscle we have, especially around our AI capabilities, that positions us very well to win the race to be the system of action, as Charles calls it, or the agentic PMS. And when we think about the agentic PMS, agents are only as useful as the data they have access to, or the context they can work in, so really patient history, or for example, the regulatory protocols that you've got to follow in different markets, or the access to workflows you can act on. And that's really what differentiates us when we think about this. Also, I think being early on this path is definitely helping us widen our gap from existing competitors in this market. Also, when we think about the opportunity ahead of us, we serve a large part of the market in terms of the number of therapists. But in terms of the total TAM, there's still some distance ahead of us. We're only 28% of the total TAM, which we look at as the number of therapists and the available spend per therapist. And we do a good job with taking our PMS to market, but there's clearly an opportunity for us to capture more of their wallet share. and doing that at margins that we've proven at maturity or scale, you know, 45% cash EBITDA margins makes it very attractive. That really makes the opportunity very valuable for us. I thought it'd be nice to share a little bit about our product and where it's headed. So maybe the easiest way to consume this is if you think about an afternoon at a physiotherapist, you know, before a patient comes in, there's already a patient summary with, you know, the important markers, follow-ups from the last session and so on to ask. When you're sitting in a session, our scribe is open, listening, transcribing. So by the time, you know, before the patient leaves, the notes are already written. And then our co-pilot, is putting together documentation, whether that's a discharge note, you know, a treatment summary, writing a referral to another doctor or an epi crisis. So for example, in Finland, there's a KLA reimbursement form, which takes, you know, 20 minutes to fill in, because you've got to look at the entire patient's history before you fill it in to get the reimbursement. That's now two clicks away, one to generate the summary and the other to submit it. So we're really having impact there with our co-pilot. And you can imagine in the future, we'd also have like a reception agent that based on the consultation is already scheduling your next appointment. right. So one thing to notice is all of this is sitting within our product, right? It's not a separate tool. Like we today you have a lot of AI scribes that do a good job of taking notes and transcribing and summarizing those notes. But this is all within our product, right? So it has access to that context that I was talking about. And Yeah, so this is why we think that we're well-positioned to actually move forward on this towards the system of action. Also, a little bit about our market. Today, we're around 17.7 million in ARR. We see there's a lot of opportunity, especially to capture more wallet spend from our existing therapists in our existing markets. We've always shown you the therapy business as a complete portfolio, but today, we can actually take a click down and look at Norway, Finland, and Denmark independently. where we have strong market share in Norway, for example, but the opportunity there is really executing this migration well, because that allows us the opportunity to then have much stronger margins, very attractive margins. But also that then gives us a base to be able to upsell AI products or whatever other products on which today on a legacy base is not possible for us. Finland. I see this more as a proof point for what a mature market looks like in our portfolio. So I'll come back to this in a couple of minutes. And then Denmark, this is where we have a lot more white space to grow. We've done a good job on the mental health side. There's work for us to do on the physical health side in Denmark. So I think the key takeaway here is we still have clear headroom to grow in our existing markets. Also, I think the economics for our business are fairly durable. We have high market shares. We're still able to generate organic growth. If we look at our net retention and 4.5% gross churn, that's a signal that our base, they stick around, they grow a little bit more each year, they spend a little bit more with us each year. every euro we spend to acquire a customer, we roughly get 15 euros back. At maturity, in Finland, for example, we have a 45% cash profitability margin. And markets that we choose to compete in, we, over a period of time, are the market leader. on the revenue side, we've been able to grow steadily even though we're in markets with high market share. But underneath this, all our focus, effort, and investment has gone towards executing a large scale migration in Norway. And the goal for doing that is to be able to actually optimize for long-term growth, to set the foundations to then be able to actually expand our business with those users. Because it's a large install base with which today it's difficult for us to expand because they're sitting on a legacy platform. So instead of squeezing short-term growth from a legacy platform, we've chosen to take the long-term investment option here. And also, you can see our customer concentration, it's pretty healthy, which means we have a pretty diversified base, thousands of small durable relationships, which in general is hard to replicate. The same story shows up in our margin profile, where, you know, we've taken, our margins have taken a temporary dip because of investment in two key areas. One is the migration and the second is building out our AI capabilities. So what we do know is that this is a temporary dip. We do think the underlying business is healthy. And as this deliberate investment starts to normalize, we can start to see the margins that we planned for actually show up, as they do in Finland already, for example, which is much further along on the maturity curve. And talking about that, so Finland, we have a 45% EBITDA capex margin, but an easy way to think of this is, let's say if any of you own this business outright, 45 cents of every euro would turn into cash, show up in your pocket every year. That's basically this business. And when I think about this business, it's a business that returns roughly half its revenue back in cash, after funding its own growth, and doesn't ask for more capital to keep doing so. And these cash flows are pretty defensible, repeatable. We have a 95% of our customers come back every year. So this money tends to show up. And Finland's not special. It's just further along on the maturity curve. It's gone through the investment cycle. And our goal is to replicate similar economics in Norway. So as a business, we have two main missions. The first is migrating our Norwegian customer base from a legacy platform to our modern platform. And second is AI. So on the first mission, our margins in Norway have clearly been held down by a fairly complex migration that's taken longer than we would like. And we do see that post-migration, when investment does normalize, we can be at some fairly attractive margins and aim for something close to where Finland is today. And the levers to getting there are really our R&D investment tapering off, us being able to retire some of the legacy license costs, and operational synergies coming from being on a single platform. earlier today, I got the question on, hey, is the migration project on track? And the answer is increasingly yes. We have 1,000 migrated users. We have 700 users that are already booked for future migrations. That number is steadily increasing. We start to see a more predictable pace over here. Maybe it makes sense to also share with you how we internally think about this project. Going back to first principles, these are not customers we're trying to win. These are customers that we already have. And we know what the future looks like, because Finland shows us what a sticky, high-margin, cash-generative business can look like. So it's quite important for us to be able to handle this migration in a very customer-friendly manner. And I guess from the outside, cautious can obviously look like slow. But we do optimize more for lifetime value than for migration speed. Also, I think by the end of 2027, we should be in a place where the vast majority of the migrations are behind us. Then we start to slowly see some of the savings actually coming in.

The second mission is around AI.

I think, you know, I remember reading somewhere the best type of sale you can make is, you know, to a customer you already have. And that's really what this is. You know, we have a customer who buys our PMS, we upsell them our AI product, and they're worth roughly double to us. we have 1,400 to 1,500 paying customers today. They refer other customers to us. The nice thing about this is the opportunity is really ahead of us. We're early, it's nascent, and we have an opportunity ahead of us over here. Also, just from an industry perspective, the supply of therapists is not increasing, so it's physically constrained. The number of graduates is pretty static. But the demand is far outstripping the supply for mental health services or even for physical health services with an aging population and so on, especially in our markets. And so the only way to do this is to expand their capacity. And that's really where our AI tool sort of comes in and our AI products come in. And as our customers grow, we have an opportunity to actually grow with them. So it's interesting that the more pressure that there is on a clinic, the more valuable our product becomes, and that gives us an opportunity to grow as well. Finally, so everything we've spoken about so far has been very focused on Norway, Denmark, Finland, basically our Nordic markets, where we still have some headroom to grow and opportunity to expand our ARPU. But when you take this in perspective of a global opportunity, we're essentially a rounding error. The important thing that gives us some level of conviction, some level of belief that we could mean something in a broader market in the future once we finished executing on our current priorities is we've been able to build a winning team and a winning product in the hardest markets in the world, like the Nordic markets we operate in are the most demanding in terms of regulatory infrastructure and compliance, most demanding in terms of localization. They have the most change-averse customers. So being able to actually win in a very, very hard market gives us a fair bit of confidence that we could replicate and leverage our existing muscle in the next set of markets that we might look at after we're done with our existing priorities. And then finally, just to wrap up, we're a clear leader in our category, in our markets, and that gap between us and other players as well as potential entrants is widening as we continue to invest rapidly on AI. Our market leadership position gives us the opportunity to have healthy recurring revenues, an opportunity to expand on our already large install base that we have. We have a healthy churn. And at maturity, some highly exceptional cash generative opportunities and margins as well over here. And finally, a lot of the opportunity we have at least in front of us right now with our current priorities sits in our markets. Beyond that, we'll then do a strategic review once we're well underway on our existing priorities and then consider what's next for us in terms of our growth. That's it from the therapy business. I'm happy to take some questions when we do a Q&A. Thank you all very much.

Thank you very much, Karan. We're going to turn over now to financials and guidance. I'm going to start by giving you all a quick update on Q2's performance for both business units. So starting with the veterinary business unit, in H1, we have signed three more 100-plus clinic enterprise groups. These three are currently all either in pilot co-development or early implementation. On top of that, we've signed 564K of new ARR in Q2 alone. In July, we also announced that we'd completed early implementation of Vets for Pets, which means that we're now on to the core rollout and rolling out in earnest. We're also very excited that our second clinic in Germany is now on ProVit, and we hope to have many more in Germany on to ProVit soon. on our mission to build the leading AI PMS, AskProvit went live in Q2, our clinical AI agent went live in Q2, and the Provit MCP went live in Q2. You can see, as James explained to all of us, the pace of rollout and pace of deployment is just increasing massively at Nord Health. Finally, on our quest to reduce time to value, we built some migration tooling that we launched in Q1, and we've seen this cut onboarding time by more than a quarter across the business, which is fantastic progress. One of the legacy platforms that we acquired in Norway, Sanamalis, we sunset in Q2, seven years after we started the migration, so we're extremely happy to have the final clients migrated over from Sanamalis onto ProVet. a Danish company that we acquired, we are aiming to sunset by the end of the year. Looking at the veterinary ARR growth, we've been re-accelerating our year-on-year growth. And ARR has grown by 13.6% between Q2 last year and Q2 this year. This is driven by a net retention rate of 109.9%, which is itself largely driven by enterprise clients rolling out new clinics. Charles mentioned, we have an incredibly low churn of 2.2%. And the increase that you'll have seen since last quarter in our assigned not implemented is now that we've completed the early implementation of Vets for Pets, we've included the full rollout number in our assigned but not implemented number. on the adjusted EBITDA minus capex, you will see that in H1 2026, we are lower than we were in H1 2025. This is, as you are all aware, due to all of the increasing investments that we made during 2025, particularly on DAC localization, and AI transformation. And so while we are on a path of increasing profitability in the vet business unit for H1 versus H1 last year, we are still a little bit below. Moving on to therapy, updates for Q2. Similar to the vet business units, we have shipped a lot on our path of becoming the leading AI PMS. We shipped the AI patient overview, we shipped AI-generated EpiCrisis, we shipped custom AI document templates, and we shipped custom feedback templates. Karan mentioned on the Aspit migration, we have 1,000 users migrated as at the end of Q2. With many, many more booked, we have 700 on top of that booked to be migrated. We launched Medipay integration for collections, and we've done appointment overviews and the ability to create and manage group sessions. We've launched that as well. And then finally, on therapy growth, there's been 1.2 million of ARR signed in H1 2026 across new business and upsell, which is up 24% on H1 2025. So we're seeing an acceleration of growth in the therapy business unit. And you can see that in the ARR numbers, which are at 10.8% growth year on year, driven again by healthy net retention of 104.7%. This has been helped a lot by the AI scribe, which has been growing very rapidly in the therapy business. And again, healthy gross churn below 5% for 4.5% in the therapy business. therapy adjusted EBITDA minus capex has already been showing its curve back. In 2025, we expanded the team and invested in the migrations. But now that we have a well-formed team, we've been allowing that growth to re-accelerate profitability, and so year on year, EBITDA minus CAPEX has increased in H1 from 0.7 million to 1.2 million in the therapy business. I'm going to take you now through the group-wide financial updates. On a group basis, in Q2 year-on-year, we've grown 12.5% in implemented ARR, as you know, driven on the higher end by the veterinary business unit, but with therapy growing at an increased pace as well. 108% net retention rate, again, was the largest amount driven by ProVet expansion amongst existing large clients. And the blended churn rate incredibly low 3.1% across the group And as I mentioned in the vet section the increase in sign not implemented coming from that inclusion of the full vets for pets rollout Now turning to our accounting, quarterly reported recurring revenues. Q2, year-on-year reported recurring revenues have grown by 10.2% up to 14.2 million in Q2. Our underlying recurring revenue growth, which is the one we really care about, has grown by 14.6% year-on-year from 11.3 million up to 13 million. a share of the total revenue, very healthy at 91.2%, increasing year on year. for H1 as a whole, we have had a 9.1% increase in total revenue, up to 27.6 million. But again, that underlying recurring revenue has grown by 13%, up to 25.2 million, up from 22.3 million in H1 last year. And again, a very healthy share of recurring revenue at 91.3% of total revenues. So looking at quarterly adjusted EBITDA minus capex, for a while now we've been saying that we'd be holding our costs relatively flatter and allowing that growth to filter to improving EBITDA minus capex. And you can see that in our Q2 results versus last year where we were at minus 1 million for the quarter adjusted EBITDA minus capex. We're now at negative 0.7 million. So we're starting to see those improvements in profitability filtering through. It was minus 1.5 million last quarter for another reference point. In H1, EBITDA minus CAPEX, you can see that for the H1 as a whole, when you add the two quarters together, we're still at minus 2.2, which is a reduction versus H1 of last year. But as I mentioned, that trajectory is positive, and so we're expecting improved profitability as the year continues. how that translates to cash, so we have in our adjusted free cash flow, we have reduced by 0.9 million. Our adjusted net result is plus 0.2. We have had some timing differences in the cash flow. Actually, July was a pretty good month for collections, so we are expecting some of these numbers to filter through, but this is mostly timing difference versus the EBITDA minus CAPEX result that I presented for Q2. on the H1 adjusted cash flow, the adjusted net result for the full half year, minus 0.4 million adverse, which is driving some of that 2.3 million adverse. Another point to note is that in Q1 2025, we had collected a very large one-off backlog, which is somewhat skewing this year-on-year difference by about 1.1 million. The remaining working capital variances are coming from Q2 that I explained on the previous slide. Then finally, our balance sheet. we retain a very healthy balance sheet. We have 12.5 million of cash as at the end of Q2. We still have no interest-bearing debt. We have a very healthy equity balance of 55 million. There have been no material equity transactions in the quarter, and any changes in goodwill have been to amortization or FX. So turning on to guidance for 2026, I'm very pleased to tell you that we are still on track for the guidance that we gave. So we're not restating or reiterating guidance. We've said we're going to do a full year recurring revenue of between 50 and 53 million. You can see from H1's actuals of 25.2 million that if you annualize just that, we're already on track, but we're continuing to grow through the year, so we're very comfortable on our recurring revenue range and guidance. On adjusted EBITDA minus capex, we saw, we're at minus 2.2 million on our H1 2026 actual. But with that improving profitability through the year, we again feel comfortable that we will remain within this guidance range. And finally, on the three-year guidance to 2029, You can see here that in the last few years, on a group basis, we've had year-on-year recurring revenue growth between 13.6% in 2025 up to 21.5% in 2024. That's our historic range. It's been a bit lower on the therapy side, between 4.4% and 7.5%, a bit higher on the veterinary side, between 21.5% and 35.4%, And for 2026, we've been guiding between 9.5% growth and a 16.1% growth. I'm very pleased to say that for 2027 to 2029, we believe we can maintain a CAGR across those three years, actually at a slightly top end, even slightly elevated versus 2025 and 2026 range of between 13% and 17%. So that's a 15% CAGR from 2027 to 2029, plus or minus 2%. the reason we have confidence in this level of growth is across both business units, we have a very positive outlook. On the veterinary side, as I hope Charles has proven today, we have a strong right to win in the growth markets that we already serve. We have the most enterprise-ready solution anywhere globally, and we have a large upsell headroom on our revenue per location. And so from the veterinary side, we're guiding 20% CAGR plus or minus 3% over that 2027 to 2029 period. On the therapy side, we've been demonstrating strong AI upsell across our existing base and across the future migrated base. We're going to continue to gain market share in the Nordics. And then post migration, we believe we can accelerate growth even further by investing in new markets and a new product development. And we've already seen the growth rates in therapy increase from these single digit percentages that you see in the last few years to over 10% ARR growth that you've seen year on year today. And so for therapy, we are guiding 10% CAGR from 2027 to 2029 with plus or minus 2%. Next, it is very important for us to be masters of our own destiny. We will, from 2027, be both adjusted EBITDA minus capex profitable and cash flow positive. Given the current macro uncertainty in financial markets, we feel that we have a lot of strength by really generating our own cash and using our own cash to fund growth and not having to go out for external financing at any point. If we do go out for external financing, it would really be for an M&A or some inorganic growth, but for our own operations and the numbers you see here, we are going to self-fund that through generated cash and profits. and the reason we have a lot of confidence that we can become profitable in 2027, firstly, we're going to maintain our healthy growth rates. Year-on-year recurring revenue increases in 2026 is between 10% and 16%. 2027 to 2029, it'll be around that 15% mark. and we're going to let that flow through to the bottom line using our healthy gross margins, which in the last 12 months have been 78%. We still maintain very healthy SaaS gross margins that allow that revenue to turn into profit. On the sales and marketing side and CAC improvements, we're very disciplined in how we manage our sales and marketing spend in order to ensure that the money we do spend pays back within a reasonable timeframe and is very profitable. You've seen from our unit economics that we have a lot of headroom on our CAC and that it's a very efficient use of our money. And so we will leverage that in order to retain profitability. I mentioned earlier, our onboarding efficiency has increased as well, and so we've reduced time by 25%. We're going to continue to improve our onboarding efficiency, which will lower our CAC and allow us to grow more profitably. And then finally, on the fixed costs, you've seen over the last six months, after a year in 2025 of growth, we've been holding headcount a lot more flat. And so in fact, in 2026, we've had a 4% reduction in the size of team, but without any reduction in productivity or output, because really each team member has been delivering more than they ever have and so we're going to maintain a relatively controlled fixed cost base and allow those crows gross profits to give us more overall EBITDA minus capex and Then finally sunsetting the legacy platforms These are a huge when we found them out we sunset Santa Malice in q2 and VetVision will be by the end of the year. And obviously in our future, we have Aspit and Vetera. By clearing the way in these old platforms, we give ourselves the ability to focus on our core flagship platform without complexity, without distraction, which saves cost and allows us to move more quickly. So we care deeply about getting all clients onto our flagship platforms. I also want to talk a little bit about the investments that we want to make during this 2027 to 2029 period. It's our intention to be a high growth business for a very, very long time. And to do that, we are going to continue to reinvest some of the surplus profits that we're going to be making in 2027 to 2029. the first of those is we're going to increase our US presence on the veterinary side, local leadership, local go to market. We really want to increase our footprint in the US in order to be able to take advantage of that ginormous opportunity that Charles presented earlier. And then on the therapy side, we have this huge addressable market that we can go after. And we're going to need to invest in expanding to new markets and new product development. All within the boundary of making sure that on a group basis, we are cash flow positive and EBITDA minus capex positive. And that's it. To reiterate the three-year guidance, 15% CAGR between 2027 to 2029, plus or minus 2%, driven by veterinary at 20%, plus or minus 3%, and therapy at 10%, plus or minus 2%. All the while, we're going to be adjusted EBITDA minus capex positive and cash flow positive, excluding any potential M&A. We will not be sourcing external financing to fund organic growth. And with that, I will turn over to Charles to conclude the session.

Thank you very much Alex. Thank you. You've heard a lot from us today. I just want to summarize the key takeaways. One is across both business units, practice management software is the core infrastructure of a clinic. It gives us a unique right to win to be able to build great agents on top because we control the data, the workflow, and so on. We have the unique right to have a way better agent than others that are standalone. The second is that we own the number two vet PMS globally and the number one in Europe and the number one therapy PMS in the Nordic. We've got a really strong market positions in the markets that we're in. The third is the low churn. Customers stay with us for a long time and trust us with their business. At scale, we can see very strong, unique economics. not only on the retention, the net upsell, right, which is a churn plus net retention, which you'll see from increasing the average revenue per location, but also in the sales efficiency that we've got in terms of recruiting new customer. And what that yields is the profit margins that we see in the Nordics for veterinary, which are around 40%, EBITDA minus capex, or 45% for therapy. And we also have great headroom for growth. We've got a great opportunity to continue to expand. We're only a very small percentage of the veterinary market in our current markets. And we've got a great opportunity to conquer the rest of Nordics and go beyond therapy. And on the guidance, Alex went through it. But we're looking forward to, as Alex mentioned, it's really important for me to make sure that we are never reliant on anyone else, right? And also for our partners, customers, that we always have enough cash and some buffer to be able to be a master of our own destiny. So being cash flow positive and having a growth of 15 plus or minus 2%. Thank you very much for your time, everyone. And I think next will be Q&A.

Thanks a lot, everyone. Thanks, Charles, and to all the speakers today. We're going to take some Q&A now. So we're going to bring some stools up on stage, and we're going to invite the four speakers from Nord Health up on stage. Q&A is open to the room. There are people with microphones who will hand you a microphone. What you need to do if you want to ask a question is please raise your hand and one of the people with mics, I will direct the people with mics to the people with hands up and you can fire away with your question and you can either direct a question to one of us if you have a specific person in mind, otherwise I will direct your question to one of us. Great. Torbjörn.

Hi. Just wondered if we could start with the comment on Amerivet, the rollout that was cancelled earlier this summer. Maybe touch upon what the reasons for the cancelling of the rollout was.

Charles, maybe you want to take this one? I'll take this one. We originally had a CEO of Merivet, which wanted to build a product together with us in the US. That CEO used to work for Vet Family, which is now part of IVC. That's what we did with IVC. What we're doing with many of our partners here is that we work together to localize the software for that market together. there was a CEO change, the management change, and that strategy changed in that they wanted the software that was localized from day one. Even though the technology is quite old, they decided to go for the current solution that's localized fully for the markets.

a follow up to that one, because given that Marriott was an important proof point for the US market, has it made it more challenging to get into other processes with other potential customers in the US?

We've got other corporates like Pet365, for example, which rolled out in the US. We're also talking about lots of other corporates. In the end, there's a... The market in the US for corporates, there's two players. It's either ourselves or EasyVet for now. Yes, EasyVet have a broader array of integrations than we do currently. But that's only a matter of time. So once we do have that only remaining gap solved, I think we'll be in a very good position to be able to win all of them. And we've got PetFed 365 as a good example of a good corporate. That's with us in the U.S.

and and I can just continue on the on the three clients that you mentioned the hundred plus clinics clinic clients what geographies did you sign did you sign those in the 100 plus clinic clients that you mentioned, what geographies are those clients connected to?

We're not disclosing specifics on the clients. The number of enterprise clients you can see per geography is relatively low, at least of that scale. While we're in pilot and early implementation, we're not yet disclosing the geographies or the specific client names.

I hear of a pilot, I will go after that customer because I know they're willing to switch PMS. I just don't want to provide that opportunity to potential competitors.

understood, and on the upselling opportunity, particularly within veterinary, both payment seems to be a very large part of that. So what is really, what is the key selling points for clinics to use your payment solution instead of a third party's one?

It's a very weird market in that. Actually, this is not an opportunity for corporates that much. It is an opportunity that they can get a good payment solution, but pricing, we basically provide that cost to our partners here, for example, because they get very low rates. Smaller independent clinics have very high rates relative to the enterprises. The value prop is you pay the same as you pay today, but you've got a fully integrated solution. An integrated solution means you don't have to key in manually the amounts, so less errors, less work. Secondly, which is fun for the accountants here, is that invoice to payment reconciliation is fully automated. You have to spend way less time to be able to do that and way less time if you have a third-party accountant to be able to do your books. So the opportunities on the non-corporate side, at least on the revenue opportunity. We still provide that to corporates because we think it's a great service, but we don't make a significant amount of money from that.

And on the unit economics side, you touched a little bit on it, but both for payments, but also for the AI solutions that you are searching to upsell to those customers. How does the unit economics look?

So when we look at the unity economics from the slide, actually, that's actually gross profit. So it's the way that accounting works for payments is that we take out all the costs from which are normally made up of two things. One is interchange, which is the amount Visa MasterCard charges. And then the second cost is scheme fees and also the added payment fees. So this is just on top of that what we make, right? we have cost in terms of providing support for that service on our side. Then on the AI side, the cost is mostly on the development. Yes, the cost of AI models is increasing if you've got the latest tool, but the If you want to use the latest frontier model for everything, it's also very slow. Actually, it's not always the best use case. Who knows where model costs will end, but currently, I think that the gross margin of those is not the real issue. The real issue is that developing it and iterating on it, that's the main cost. It's a fixed cost versus a unique gross margin issue. Gross margin is probably similar to the software.

I guess I could just quickly add to that as well. In terms of AI models, we're not reliant on any particular provider for any kind of special functionality. All of the AI that we've done in the product is built in such a way that we can very easily switch to different providers if we need to. I think more recently, it's been quite interesting insofar that there's been a huge amount of Chinese open weight models that are very cheap. If we wanted to switch to them tomorrow, it's like a few lines of code and we've switched. The kinds of things that we're doing in the product, we're not reliant on any particular provider. I'm not worried about cost of using AI at all because I think the market itself is keeping prices down. We're completely agnostic in terms of our solution.

And cheap also means faster. So actually, it doesn't mean that if it's cheaper, it doesn't mean it's less good, actually. Sometimes there's cheaper and better because the processing is much faster.

Yeah, and I think the other thing that's interesting as well is that, you know, we don't have to use the latest frontier model as soon as it comes out. Up until recently, we were using models from nine months ago. They were amazing nine months ago. They're still amazing today. Whatever the narrative out there of the cost of AI, we have complete control of what we use.

how we decided today is basically we want to use the best model for regardless of the cost, because cost is not really not an equation. And it happens that as we test out different models, the speeds to quality ratio is better with the non frontier models is also worth

highlighting that for normal day-to-day workflows, there's a bit of a natural cap on their usage because for one consultation, the scribe will do its job, take all the notes. The summarizer will summarize that one consultation into the actions and the discharge notes. So it's not like they are aggressively consuming over and over and over again. It's related very much to the number of consultations, which has a cap per day.

Yeah, and the kinds of workload that we require our AI models to do are not the kinds of things that you need the biggest frontier models in order you we don't need fabled mythos or or even sold to do the kinds of like efficiency savings that we're doing in the product. So yeah, speed and cost is not problem.

Yeah. But if you're just thinking about on the AI side again, like you mentioned on some of the AI native companies, especially on the AI scribe solutions, for example, where my impression is at least that you have the possibility as a customer to use an AI scribe solution from another company. If those kinds of solutions essentially become a commodity solution, what justifies your ability to take a margin on that that's in line with what you have elsewhere in the company?

You're right. Over time, there will be a commodity in the ability to convert speech to text and then text to Subrise. Yes, you can have additional templates that are on top of that that you can generate, but if it is a commodity, why would you open a net new tab, a different workflow for the clinic? That's actually great for us in that we believe that we can build just the best one because we got a unique advantage that they're already in our software. they press one button, they don't have to go to a separate software, and the notes get sent from the third-party software. As we heard from Richard and Graham, having to open a net new tab is annoying. That being said, we're still an open software. That's really important for me. I don't want us to be a closed bastion where you're stuck with us. It won't put enough pressure on James and his team to be able to push. I want them to always have the third-party competitors there to be able to compete against us. If we think about their margin, their margin is, their price is much higher because they have two things to pay back. They have to start a relation from scratch with a company and the cost to serve includes all the things that we have support and AI cost. The first part we don't have because you've got an established relationship. And so we actually come into the market at a significantly lower price point as well, because we're able to compete on that.

Maybe just to add to what Charles said, especially from the therapy side, where there are quite a few AI scribes out there. I think our ability to command a reasonable price going forward as well will be a function more of the value we create for these customers. And today, describe is one thing which is mostly around summarizing a consultation. But it's the actions that follow after the scribe that is very hard for a product that doesn't have the patient history or the, you know, Denmark or Norway or Finland's regulatory protocols that they have to follow in a certain way or reimbursement rails and so on. Or even just simply the workflows to act on to actually do anything beyond that. So for the example I gave in Finland, where we fill in the reimbursement form for you, which actually takes a lot longer than writing the notes for a consultation, though that flows from the consultation itself, it's difficult for a scribe to do. And today the feedback we get from our customers is they start to value that aspect a lot more. So even, you know, that's why it's so important. Yeah, I'll pause there, but that's why it's important for us to migrate. But that hopefully explains where we generate value, gives us an opportunity to continue to command the price.

beyond just AI scrub, as Karan suggested, like for example, as ProVet, right, where if you had to create, use a third party for that, which you can, right, you'd have to think about what access and configure role based access for every single person in a separate system, where like, now you can just can anyone can just connect to it, even by MCP. And this the software already knows what really you're allowed to see not allowed to see. And so you don't have to do it in two systems. which is quite annoying if you're in the central team of one of these corporates and just doing it once in one system is annoying enough. You don't want to have to replicate the same thing in another system.

Thanks. On therapy, you mentioned the migrations being speeded up. Is that the pace we can anticipate moving forward also throughout 27?

Yeah, so on the migration, it's been a complex project. I think the thing that's taken us a lot of time is setting up the regulatory infrastructure for Norway and to be able to then migrate our customers. We're a lot better at that. Where I think we're significantly more predictable, the size of the iceberg is quite well understood today as compared to maybe 12 months ago. And, you know, internally, there's a lot more confidence, but I think the right metric for us should be, you know, how confident are our customers, right? Is that booking pace continuing to increase? And because the way it works is they test our product. It's a word of mouth driven market. And then they select a date themselves. That's how these bookings are happening right now. It's not like we're putting a date for them. They're selecting a date based on when they have availability. Sometimes it's weekends and so on. That number is moving in the right direction. at least what we're all working towards quite hard is to make sure that continues to happen. There's also an aspect on unlocking cohorts. That's when a set of features and functionality is developed, it's piloted, tested, and we know we can migrate at scale. That unlocks the next set of cohort that we can then invite for bookings. That machinery is clicking significantly better every quarter.

Can you give us a sense of where you would have to be to consider entering new markets? Like I understand it's difficult to give an exact number on how many you have left to migrate, but... Yeah, so the way I think of it is...

right now, the migration is taking up a lot of our energy and resources. So once that investment starts to normalize, which means we have enough confidence from a product perspective with there, and then it's really just an operational play, that's when we would then think of reallocating that product investment towards our next mission. So as a business, we take a fairly long-term view in the way we approach these market segments and so on. And it's important for us to be quite focused because that's really our strength. We have great talent, we focus them on one or two missions, and then that gives us the opportunity to succeed and then dominate. But we're not in a rush. So it's most important that we do this well, unlock those margins, and then leverage that talent to go after the next big bet.

Karan's being kind, I think.

When I bought this business, I made the classic mistake of a first-time CEO in trying to do too many things at once. You know, we're positive and we think we can get things done very quickly. And the size of the iceberg is always larger than you expect, right? And so what I've realized the key to success is like, focus your resources on fewer problems so that you will come up with a lot of unknown unknowns, but at least the speed from an unknown is found out and resolving it is quicker. Yes, if we have an enterprise customer, for example, that's missing a feature, we can quickly solve that problem for them to unlock them versus spreading yourself too thin. We're trying not to make the same mistake again. We'll make new ones, but at least not this one.

Okay, and then then last one for me, seems like having customers that that acts like consolidators in the veterinary market has been a very important growth driver. So just thinking about the guidance until until 29, like how how important do you believe or expect that component to be to be moving forward?

very important. I think I just on the veterinary side is like for two reasons. One is enterprise customers are using the system at its a lot of the capabilities of the system. So they're pushing the system and they're pushing us to develop a better system. And they're very data centric. So in terms of like making sure that we are cutting edge, it's a partnership as we talked with Graham and Richard earlier today, in that they've got ideas, we've got ideas, and together we try to create a better software. So in terms of crafting a better software experience, it's core, right? And then in terms of the future opportunity, yes, I'm pretty sure that Richard wants to grow his business and Graham's wants to grow his business as well. So they'll continue growing themselves. And we are beneficiaries of that, which is wonderful. And we'll have met new enterprise customers as well. where where we have to work and one of the big unlocks for growth for us is how do we make sure that these enterprises are on boarded as efficiently as possible, facilitate destruction. So every time it's a big decision to change, how do we make it a smaller decision so that the cost to change is less in terms of disruption for the clinics? That's one of the big things that Danny and I are working together.

This is one of those areas where the individual markets Each have their own very relevant dynamics So the reason we're in the position that we are being so enterprise ready relative to the the entire rest of the The veterinary PMS space is because we were originally a Nordic company and the Nordic enterprise company the Nordic Veterinary clinics were the first to start consolidating into larger veterinary groups. And that's why we built a veterinary PMS to serve Enterprise clients is because we took that journey with them and that's why for the other major European markets we've been able to come in and into countries where the consolidation has been happening and but they don't have a local player that is able to satisfy their more complex needs. And so the UK was relatively early among some of the European countries, and it's gotten fairly consolidated now. Although a lot of the enterprise groups have yet to bring all of their practice management softwares onto one system. Then you look at a country like Germany, which is much, much earlier, less than 10% consolidated. Where we feel we have a big opportunity to go in early as the only truly enterprise ready solution on the market And work with these enterprise groups In there in their earlier stages and and help them grow Okay, thank you Questions please raise hands if so Olle

either. Could you on the development side, talk about the other any synergies between the two business areas in terms of AI development? And how does that work at this point?

I mean, at the moment, we're very separate in terms of you know, we don't share any major infrastructure, we don't in behind the scenes, the products are very, very separate. We've had some small things that we've done. So for like our speech to text pipelines, we use the same one on both sides of the business. But really, they are very, very separate. And I think honestly, it's easier to keep things apart right now. That there's, you know, often a mistake you can make is thinking that all the software and all the development and all the process just come together in any company, but that just honestly just slows things down. So yeah, there's very, very little shared at the moment. And that allows us to operate with freedom.

and that's how it's like more and more the cost of share that building infrastructure building code is going down right and so the cost of collaboration is what keeps what makes us move slow so we're going to keep things very separate. That doesn't mean that like Karan does something cool and I'm like, okay, cool. I'll show it to James. And so, and they do interact together in terms of like when one has solved the problem, the other one, they can get faster to the solution. But that doesn't mean that they're shared infrastructure, shared code. I think it should be completely separate. But then like marketing, you talk to marketing and so on.

Yeah, I think we share a lot of learnings. And especially when we were doing the AI Scribe, I remember the way we went about our testing methodology and therapy and vet, we spent a lot of time talking about what's the fastest way to find fit with different types of customers and specialties. But infrastructure, James is right. That's very, very separate. But on the learnings, I would say, as well as... design systems, those types of things that you can build once and use together, that makes sense, but that's not our biggest focus. Where it makes sense, we're very pragmatic, but when it comes to if it's going to make us slower, we usually would prefer that not to happen, especially when it comes to AI where things are moving fast and we're building our right to win. Maybe just to add a tiny little bit on that.

The average number of engineers on a project is like two or three, which means that we do a lot of projects concurrently. Also, you find that if you think about sharing and if you think about more people on more things, you end up building more software. there's a benefit to being a fairly fixed small size is that we can build the things that a small team can build. If you pointed Microsoft at this, they'd put 2,000 people on it and it'd be a very, very different bunch of software to build.

to add one extra piece to that, there are two functions that sit truly centrally. The first is security. We have a chief security officer who has a small team. They don't change the code in either of the platforms, but their job is to make sure that both business units are held to the same high security bar. Because obviously we're handling very important data and we want to have the absolute highest level of security on the products that we build. And the second is finance, because of course we need a certain level of financial control that is consistent across both business units. So those are the only two truly shared functions at Nord Health.

And you provided the margins in Therapy Finland of 45% cash EBIT margin. to what extent have you included AI, let's say, investments in that number?

Yeah, so for our Finland, so in DRM, which is our Finland business, that number includes the, it basically includes the R&D in that number. So the EBITDA minus capex number does include our engineering team. AI within therapy is a shared service. So we haven't built separate AI everywhere. We just build it once and then everyone consumes it. So it's been built by a small separate team.

So it's, there's some costs included in that number.

Yeah, yeah.

And then on the therapy side, you seem to have more than half of the therapists in the Nordics, right? And then your revenue share was a lot less, 28%. Can you remind us and elaborate a bit on why there is this gap?

Yeah, I think there's a few things. One is, right now, we sell mainly just the PMS to our therapists. But if you think about the different softwares that are very adjacent or attached to a PMS that our users spend money on, for example, AI is a large part of it. Another large part of it is around patient engagement tools like telehealth, payments, and so on, which we simply yet haven't gotten to. but they sit very adjacent, they're very connected. We integrate with nets and other such players or XOR live for exercise apps. So we see that as opportunity that the only way they use those apps is through our software. So we see a clear opportunity that the biggest part of that is actually around AI because that's where the amount they're willing to spend is fairly large. And that's where we see the largest opportunity within that time to go after, because we do have a large install base.

Hello, can you expand on the margins for the group? I mean, it seems you have given guidance for the revenues, the organic growth, and it seems like from Alex that you have good visibility or a plan for the cost. a reference, you guide for 20% cash EBITDA margins on your last capital markets day. So how should we think about next year and the coming three year span in terms of margins?

I think the reality on this, and then thanks for the question, Jonas, the reality on this is we do want to retain a certain level of flexibility on how much we want to invest on the next three years. So it's extremely important for us that we are masters of our own destiny. We will be EBITDA minus capex profitable. We will be cash flow positive. So we'll certainly be above that threshold, but the exact amount that we need to invest over the next three years is something that we that we will get better visibility on as we get closer to the investments. Our objective is to be a high growth business for a very, very, very long time. I mean, we absolutely could optimize over the next three years for cash flow and EBITDA minus capex, bring these numbers way up and still hit the revenue numbers, but then that might not yield the same long-term growth beyond 2029 as we expand even deeper into the US and find new markets and new products in therapy. We will be EBITDA minus capex and cash flow profitable between 2027 and 2029, each of those years, but we didn't want to guide exactly how profitable because we want that We want that ability to continue investing for our for our perpetual growth Hans Christian

Yeah, thank you for good presentations today. Just wanted to ask you mentioned M&A and you have a track record of doing M&A obviously so just wanted to know if you're able to provide some more color on your M&A strategy going forward if you or I mean how should we think of this if it's relevant within the vet segment to kind of capture legacy systems and do customers and migrate them and also within the therapy segment, if it's at some point relevant there as well. So any color on that would be interesting.

We're always pragmatic on this one. So in order to buy a company, one needs cash. So first, the thing that we want to settle is make sure we're cash-reposited to have the cash to be able to buy a company. That's one. Because I think at these levels of valuation, I don't want to raise equity. Just like... Even if I could put in more cash, it's just not the right thing to do for a shareholder base. That's the first thing, having the cash. The second is if we've got a good opportunity to buy a software at a fair price. Currently, even though you hear SaaSpocalypse, the transactions are not available. They haven't reset their multiple that they were willing to sell at. Would I love to find an attractive business at a fair price? Yes, right and we'll figure out a way to get the cash if that's the case, right? but and especially as we get cash for profitable, we can also use debt at that point to do it, but Even though I poke I haven't found a someone who's willing to sell to me at the right price, but I'll keep poking and I remember like when I bought this business, I think it took me eight. They weren't for sale. It took me eight months, but I poked a lot. And I went to sauna with the fellow Finns who were selling the business a couple of times. And then at the end, they decided to. So if there is a good target that we think is good, I'll poke a lot. We'll get it at some point. Like a dog off a boat, I'm learning from my end customers.

Excellent. Do you have any more questions? Wonderful. Well, thank you very much. Oh, sorry, James.

Yeah, sure. Thanks very much for a great presentation. Maybe just on the 20% veterinary guide, if you could sort of break that out for us in terms of the backlog rollout expansion within customer base and then new logos as well.

This is a level of breakdown that I won't go into too many specifics, but I think what gives us confidence on this number is really the pipeline that we have. As you know, we're well underway on our Vets for Pets rollout, which is, as Richard said, 75 clinics worldwide. down on a 450 clinic business, we have 300 plus clinics in our pipeline that we're piloting or co-developing or early implementing. We have a strong right to win in the UK, Germany, and increasingly the US. Our confidence in that level of growth comes from the existing pipeline that we have that's going to see us in the near term, but also our confidence that on that three-year horizon, we'll be able to keep topping up that pipeline and hitting that number. And as we, particularly in a market like Germany, which is very early in its consolidation, when we sign up some of these large enterprise groups, they're still consolidating at a reasonable pace. And that gives us a certain amount of automatic growth as they grow and expand.

And the reason we don't guide separately is that like it's really hard to understand the pace of rollout of a corporate in that we've had some that have taken weeks, some that have taken months. Right. Some that take years because like the There's different things in terms of incentives. There's different things in terms of the level localization that they would like to have. It's a different business model. Vets for Pets is a different business model than our previous ones with the franchise model. We had to build this whole franchise feature. That's where it's hard to guide on that. Because if it was my decision, we'd go as fast as possible and we'd localize. But there are some gaps and we want to make sure we do the right by our customers. When we push, I want to make sure it's pushing successful. For example, in Germany, we're partnering with these customers in all different markets. They asked me, when should we migrate? We only push when we think it's the right thing to do to the customer because it's going to be a long term partnership, we're going to be decades together. And if I tell Richard to do something now, and then like, in three years, we'll still be together, but he'll be arguing me for a long time. And so like, we won't be able to upsell things to him. And so like, and when they go into new markets, they won't take us with us. So that's where it's hard to understand exactly how fast they go.

And maybe then on veterinary AI, are you able to provide an attach rate at this stage? And any initial feedback from customers that gives you an understanding willingness to pay for the product.

Yeah, so I think on the attach rates, do we have that there? It's not a number that we've provided. We have not yet. Therapy was earlier than us to launch it. I took over product engineering in June last year, and I think we launched the initial trial late last year and iterated on it. We've got quite a few customers that have signed up, but we're still rolling it out with them. We'll provide more information over time on the AI titrate. I mean, what do you think like do we think we'll have more? Yeah You piloted a few what are your thoughts exactly I

Yeah, I'd add to that.

I think the point that Charles makes about making sure that it's really value additive and cost effective makes it really easy in terms of the decision point. You know, and for us, you know, we know that actually rolling out and bedding the system in is the first step. And we have a lot of our practices currently using, you know, sort of secondary AI scribes in the current system who definitely want to be able to integrate and fold it in to not only just make it simpler, but also then start to harness all the additional AI functionality that you only get with the platform and the data within that platform as well.

And on pricing, we're significantly cheaper than competition because we don't have the whole CAC that's associated with the legacy world. Mathieu? Hi.

A follow-up on this AI topic. Do you think at some point we will be able to report the pure AI revenues so the market can figure out the growth you achieve through AI and maybe be a bit more reassured about disruption?

Maybe I'll take just one second. AI will be an enabling technology throughout our platforms. There are some parts of it that will sell and some which will be included in the core. I'll give you an example. AskProVets is a core capability that is available for pro and enterprise customers. That is included in that, but then the cost of the core maybe is a certain amount because of the fact that it has it in. Then we've got some AI features which are add-ons. Because in the markets Currently, that's the market standard that AI scribes right on that'll change over time We sort of like online booking online booking used to be an add-on now. It's corporate the PMS. So over time net new features that are add-ons will Will change and what's including the package so it's hard to differentiate like this percentage of the package at AI and so that's we will report on like the will give guidance as we have like a In therapy on here's the current number of people which are using a I scribe for example or but In terms of revenue, it's hard to say like this is AI revenue because in the platform, let's say it's a Hundred that you pay per vets rights and they've got access to the whole platform and ask prove it What percentage should I put that for AI? So that's a bit hard to assess if that makes sense

A question on Germany. Looking at the revenue per clinic at Vetera, it's much lower than what you achieve at ProVet. Could you explain the gap and what is the strategy in terms of migration?

Germany is a different software market in that historically it's not a... SaaS is actually not... There's cloud and SaaS. People often blend it together. SaaS is a pricing model. In Germany, it's not a SaaS-based pricing model. You pay for a license fee upfront, and then you pay a support fee just for support, but you have the software and you own it yourself. and that's what we have in Germany. Currently, Vetra customers do not pay for the software, they just pay for the support. As they transition, they'll pay for the support and the software itself. good about that is that if imagine they want to shift from like, if they're it's an aspect customer, they want to shift their competitor, they can pay a SAS license fee for that, right? For in veteran Germany, because they don't have the SAS license model, they have to pay upfront a huge amount. So the cost to migrate is not only the onboarding costs that we charge, plus you've got the pain of switching costs, plus you've got an additional third cost, which is the software license you have paid in front. Actually, the cost to switch not to us is actually higher in Germany than it is to others. markets. So as they shift from support, the support fee to SASP, that's what we'll see to change. And for most of our enterprise customers, like we've already negotiated the pricing, because it's the same pricing in all of Europe. And we don't change the pricing for that specifically.

in the US, I think most of the market is still with IDEX and Covestrus on-prem software. Do you think at some point that will sunset their on-prem product and you will have the opportunity to maybe gain more customer?

I don't think that they'll have a formal sunset until they're almost at the end. They're smart enough not to give that opportunity to us, I think. It would be great if they did, because then we can force migrate. That's how we got PetFed 365 is when the competitors bought a competing software and they forced migrate, and then they lost half their revenue base. I don't think that they'll give us that opportunity. I would love that too, but I don't think so. These two players, it reminds me a bit of the UK when we first arrived. When we first arrived, IDEXX Anamana was by far the number one cloud player. IDEXX bought them, and then we haven't heard about IDEXX Anamana today. We don't compete against it and get any deals. a big, big company and they make monies and they do great job with the lab equipment on the software side, it's moving really quickly. And so it's they haven't been able at least to compete in the UK relative to other players. Let's see what they do in the U.S. They bought EasyVet, which was entrepreneur-owned by someone from New Zealand, Hadley, and IDEX bought them. I think that they're starting soon to pilot their AI scribe. They're quite delayed in innovation.

Okay, and last question regarding liquidity of the share. So yeah, any comment, any new idea to improve the liquidity of the stock?

Yeah, of course. We're very aware that as investors, liquidity is an important part of the equation. It's absolutely our aim to get Nord Health to a place where it's easy to be able to put several million in or take several million out without anyone noticing or it moving the share price. It's not an overnight. It's not an overnight play. There's a few things that we've started doing and that will continue to do to be able to get there. So the first is growing. I mean, this is the number one most important flat out. We're just going to become a bigger business. and that by itself will help us get more visibility, more attention, and the bigger the business is, the easier it is to invest in and out of the business. That's the number one thing that we're going to do. We've taken some small steps recently. For example, we signed a liquidity provider agreement in, I want to say, May or around May. so that for smaller investors, they could get in and out of the company more easily, and we always have a live price going. The other thing that we're going to do in the coming years is we'll do an up listing onto a main market. Obviously, that gives us access to more investors, but also more investors access to us because some of them have main market only mandates. That's another important thing that we're going to do. And bit by bit, we're going to do a little bit more on the IR side to increase our visibility and keep telling our story. One such example being today's event, where we want to be able to communicate and spend more time with investors and let them have more access to us.

And I've also bought back a lot of the liquidity, but the coming years to be frank, and at some point I'll run out of cash to buy it back. So that's, there'll be more liquidity available.

Great. I think that's us at time. So I'm going to say a huge thank you to everybody who is on the webcast. And so we will close the session now. So thank you very much to everyone who's dialed in. I will stay two seconds for some final instructions for the people in person.