Dynavox Group Ab

everyone. Welcome to this earnings call for the first quarter of 2022 for Tobii Dynavox. This is our second earnings call and second earnings report since the separation from Tobii and listing Tobii Dynavox on Nasdaq Stockholm on December 9th last year. I'm Fredrik Ruben. I'm the CEO of Tobii Dynavox.

And I'm Linda Thybring, the CEO of Tobii Dynavox.

Great. And let's get started. Before we dive a little bit deeper into the first quarter of 2022, which is obviously the topic for today's call, I'd like to make a very brief summary about what Tobii Dynavox is about, specifically for those of you who are somewhat new to the company. Whenever I do that, it's super important for me to reiterate that what our mission is all about. And I know that this mission is super dear to myself and roughly our 500 colleagues around the world, but also to the ecosystems of partners, investors, and a lot more around us. And our mission reads to empower people with disabilities to do what they once did or never thought possible. And that in itself summarizes two of our main user stories in the company. The do what you once did refers to, for example, the person who's led a normal life until the day he or she was diagnosed with, for example, ALS, rendering her unable to control her body, communicate like before, et cetera. And the second story refers to the never thought possible. That could, for example, be the child diagnosed at an early age with a condition such as autism, cerebral palsy, and others, which thanks to our solution, she can do much more than the world around her maybe thought possible. And we have on the picture here, Delaina Parrish, one of our super users from Florida, USA, born with cerebral palsy and she's doing exactly a lot of the things that probably many people around her said never thought possible toby dynavox serves in markets that is that is hugely underserved there are some 50 million people on the face of this earth that currently has a condition so grave that they simply cannot communicate and they have unless they have solutions such as toby dynavoxes And every year, some 2 million people are being diagnosed with these types of conditions. And yet still, the estimate is that less than 2% of those are actually being helped. The rest remain silent. The main reasons for this huge discrepancy spells lack of awareness, also among the professionals, the people that work with and prescribe these types of products, as well as poor implementation and poor existence of healthcare reimbursement systems in most markets around the world. Tobii Dynavox, we operate on a global footprint. However, from a revenue perspective, some three quarters of our revenue in our business stems out of the US. That is largely because the US has a reasonably well functioning funding system for the types of products that Tobii Dynavox works with. And that was established some 20 years ago. But outside of the US, our products are available in some 65 countries or markets around the world. Tobii Dynavox is also not just about products and hardware. It's super important that everybody understand that we have a very comprehensive portfolio of solutions that we provide to our users. which stems from left to right on this picture on the content. In our world, that means picture communication symbols, so symbols that basically replaces or is the first start before you reach literacy. But it could also be synthetic voices to be part of your personality, which largely comes from also the acquisition we made just recently. If we then move to the right, we obviously have a highly sophisticated communication software typically tailored to the type of condition and the type of user. That software is then typically run on cutting edge devices and technologies. almost in every case, medically certified, very, very durable to last throughout the day. And it includes, of course, technology and solutions that has eye tracking, but not exclusively. And we'll talk about that a little bit later today. We have an extensive services portfolio to help our users and prescribers through the complexities of obtaining a device and getting funding for the types of solutions that Tobii Dynavox provides. And then last, but maybe most important, a vast ecosystem of services and support worldwide to help users, caregivers, parents, professionals, et cetera, to be and become successful with our products. So that's a little bit of a super snapshot, super short snapshot of what Tobii Dynavox does. If you then instead focus on the past quarter, which means the quarter of the calendar year, which is our reporting cycle, so January until March of 2022. Just a little bit stopping on the highlights, and then me and Linda will dig a little bit deeper into the details of this. So we can conclude yet another very eventful quarter. which most importantly also bodes really well for the future. As noted also in our previous communication and earnings report in the fourth quarter, we saw and felt the resurrection of the COVID pandemic quite vividly with the advent of the Omicron variant. That meant again that societies started to lock down infection rates went up and we were again significantly hampered in our ability to access our users and our prescribers, etc. This obviously affects our business negatively, and it was quite notable in the beginning of this quarter, predominantly in January and February. However, as the pandemic declined and we saw that society started to open up, so did our business. Hence, we felt a considerable tailwind by the latter half of the quarter, rendering in totality a solid 9% organic growth overall throughout the quarter, despite a very slow start of the year. And the growth that we felt has been led predominantly by our North American business, which obviously is a fairly big part of what we do. At the same time during the quarter, we Finally, we received regulatory clearance for the acquisition of the Belgian-headquartered Acapella Group, our long-standing partner in Synthetic Voices, which means that all the outstanding conditions to close the deal have been met, and we are formally closing this transaction this Friday on April 29th, when Acapella will be an integrated partner fully owned by Tobii Dynamox. Also during the quarter, we have continued our investments in new groundbreaking technologies and solutions. And we launched a completely revamped device called the TDI-110, which is a leading communication aid for people who do not need eye tracking, who can use their limbs or fingers to control a device using predominantly touch. This product is targeted specifically then towards users who have less severe motor impairments. That includes conditions such as autism, aphasia, and a number of different conditions rendering them unable to effectively communicate verbally. So that we're quite excited about, obviously. And then right after the quarter on April 1, we also announced the acquisition of our Irish reselling partner, Safe Care Technologies, which will now enable us to come even closer and serve our customers in the Irish market. So both now the acquisition of Acapella Group and the acquisition of Safe Care Technologies are great examples also how our M&A strategy complements our organic growth with a series of well-thought-out complementary products or local reach to complement Tobin Anabox's business. So again, a quite eventful The device I mentioned before, the TDI-110, it's important to note that Tobii Dynavox is not just about eye-tracking control devices. To give some background about that, if you specifically look at the condition of autism, some 40% of people with autism are nonverbal, according to the US CDC, and hence would obviously benefit greatly from a communication aid. And our product, the TD-I110, typically in combination with our software TD-SNAP, is a medically certified touch-based communication aids that fits these types of individuals. The product, as we can imagine, accompanies the user everywhere they go, in school, outside, in the office, or where around. So it's quite important that it's an ultra-rugged device that can sustain water and bumps and whatnot, but also need to have the performance to last throughout the day to make sure that you are able to communicate wherever and whenever you are. And it's also important to then note that from a company perspective, the non-eye tracking, so touch-controlled communication aids, is actually the type of product that Tobii Dynavox sells in the largest volumes. Now, Linda, we will walk us through financial and hand over the control of the slides here to you.