Dynavox Group Ab

Good morning, everyone, and welcome to this earnings call. We will cover the second quarter 2025, summarizing our business in the first half of 2025. I am Fredrik Rubin. I'm the CEO of Dynavox Group.

Hello, and I'm Linda Theimring. I'm the CFO of Dynavox, and I will cover the financials later.

Great. So for those of you who have participated in these calls before, you will be familiar with that we will start by a quick recap about what Dynavox Group does. And then we will summarize the main takeaways from the quarter. We will then dive deeper into the financials. And thereafter, there will be a Q&A session. you can all submit your questions in the live session here in the chat function in teams but we of course always welcome offline questions sent by email to the above email address linda.tybring at dynavoxgroup.com okie dokie so i will start with a brief overview of dynavox group First and foremost, it's important to reiterate our mission and our vision, which I know is very dear not only to our almost 1,000 colleagues around the world, but also to our ecosystems of partners and investors. Our vision is a world where everyone can communicate, and we contribute to this via focusing on our mission, which reads to empower people with disabilities to do what they once did or never thought possible. And that actually also summarizes two of our main user stories. So the first one, the do what you once did, may refer to the person who led a normal life until a diagnosis such as ALS, which rendered her unable to control the body or communicate like before. The other one, the never thought possible, can refer to the child diagnosed at an early age with a condition such as autism, cerebral palsy, and the like. where thanks to our solutions, he or she can do much more than the world around ever thought possible. On the picture here to the right, you see Lane from Lawrenceburg in Kentucky. She's one of our amazing users diagnosed with cerebral palsy, and she's a great example of that. The market that we service is hugely underserved. Some 50 million people have a condition so great, they simply cannot communicate unless they have a solution like ours. Every year we estimate about 2 million people being diagnosed, and yet we estimate only some 2% of those are actually being helped. The rest remain silent. And the main reason for this lacks a lack of awareness also among the professionals and the prescribers tasked to assist these users and poor healthcare reimbursement systems. We operate with a global footprint. Today, some three quarters of our business stands out of the US, largely because of a reasonably well functioning funding system established some 20, 30 years ago. Our products are sold in about 65 markets around the world, of which US, Canada, UK, Ireland, Denmark, Sweden, Norway, Australia, New Zealand and now most recently France are markets where we sell directly while The others are served by a network of some hundred plus reseller partners. Our staff is distributed in a similar way as the revenue, meaning some 60% of our staff are based in North America with our US headquarters in Pittsburgh in Pennsylvania. And our second largest office is in Stockholm, but we have branch offices in several European countries. as well as in studio in China, Adelaide in Australia, and as of today, we're about 1,000 employees in total. We provide what we call a comprehensive portfolio of solutions, and that ranges on the picture here, the content and the language systems such as the world's leading library of communication symbols, they're called PCS, and the leading solutions of off-the-shelf custom-made synthetic voices, of the highest quality and with a large diversity of languages, ages, ethnicities, et cetera. Our highly sophisticated communication software tailored to the type of user, which can vary greatly based on the needs. We then develop and design devices with cutting edge technology and medically certified durability, including communication aids that can be controlled via eye tracking and access accessories such as the re-adapt mounts. We have a services portfolio to help our users through the complexity of obtaining and getting funding for solutions. And last but not least, we are there to help our users, the therapist, the caregivers through our global teams of support resources. In this model above, we operate this model globally, and it's important to know that each piece is critically important and also a significant differentiator for us, making us absolutely unique. Our go-to-market model is predominantly as prescribed aid. Some 90% of our revenue comes from public or private insurance providers, and this also means that we have a solid paying customer base, but also have been resilient towards changes in the overall economic climate with that said now we move back to focusing on the main topic of today namely our earnings report for the second quarter of 2025 and um i will start by looking at the highlights we had an exceptionally strong quarter when it comes to revenue growth the growth compared to the same quarter previous year sums up to 38 percent after adjusting for currency effects And this marks a further acceleration actually of the already strong trajectory over the past three years. The demand for our solutions remains high, proving the solidity of our underlying business. Sales continue to grow at an equal pace across all our markets. The strong momentum among the younger user base continues. Often those are children with autism diagnosis that rely on our simple communication solutions and in particular a software called the TD Snap. Our investments in systems and infrastructure and the organization to support our long-term growth ambitions continue according to plan. On July 1, we actually reached an important milestone with the successful launch of our long-awaited new ERP system in our largest market, the US. And during 2025, we expect to invest approximately 100 million SEK in total of non-recurring nature on our backend ERP system and also the previously communicated consolidation of our product and development organization. Year to date, we have invested some 50 million of those, and both projects are progressing well and according to plan. Our EBIT came in at 44 million SEK, but that includes non-recurring costs of 51 million SEK in the quarter, and that implies a very, very strong underlying profitability. The current uncertainties in the macroeconomic climate on policy changes has not had any direct effect on our business, but we experienced some indirect effects through the elevated freight costs in the aftermath of various tariffs, announcements, etc. And then on June 2nd, we completed the previously announced acquisition of our long-standing French reselling partner, Zenomi. And on the topic of acquisitions, they are an important part of our growth strategy and a way for us to scale and gain direct presence in a market and get closer to our customers. During the second quarter, we both signed and completed the acquisition of our long-standing French reselling partner, Sennemi, with a team of some 20 dedicated and highly competent colleagues servicing all of France. Sennemi's revenue in 2024 was around €5 million, and Dynavox Group paid the current owner €5 million in cash at closing, with a potential additional consideration after a period of two years. But on July 11th, we announced another acquisition, and this time in Germany, where we agreed to acquire our reselling partner RehaMedia. And RehaMedia reported revenues of over 7 million euros in 2024, and the Linebox Group will pay the current owner 5.8 million euros in cash at closing, with a potential additional consideration after one year. The closing is expected to happen during the next half year and we look forward to welcoming then some 40 amazing colleagues to our team. Both these acquisitions demonstrate how we quickly gain direct market presence to key markets while adding great team members who we typically know quite well. Now I hand over the microphone to Linda to take us deeper into the financials.