Arcoma AB

Then we say hello and welcome to Erik Penzer Bank and today's report interview. My name is Hjalmar and I work as an analyst and today I am standing here with Mattias Leire. Welcome Mattias. Thank you very much. And you are the CEO of Arcoma and you have released your Q3 report today. A very strong report, I have to add. I thought you could start by raising some highlights during Q3 here and what you think is worth highlighting in the quarter.

No, but we combined strong growth and got a breakthrough on the bottom line. We had extremely strong growth in North America and Asia and then managed to convert it to good profitability.

And on the subject of North America, can you talk a little bit about the product mix in the quarter? How did it look between service revenues and systems and so on?

It's the system revenues that have gone well and we see that we have a good order book to deliver on. and we get good pay.

You have an important collaboration in the USA with Canon here. Could you just explain a little bit about that development and what did you see here in Q3 that contributed from that collaboration specifically?

Canon has invested for a long time in its commercial organization and we are starting to see that it gives out now. I also think that they have been able to arrange the merger and the transfer with Toshiba. And you have moved from the technical side to the commercial side. And I think that's what we see as a result now, that the commercial wheel is starting to spin and that you have the right amount of investments in the market.

And then you also had strong growth in Asia. How should you look at that? What was the comparison here and what can you expect in the future if we look at the development in Asia?

As for Asia, as we will see in time, we deliver on those orders we have received before. And then we have Asia, we have hoped and strongly believe that it will deliver good growth forward. We are looking forward to South Korea now. We are working hard to be able to have our first sale there. In the future, as we have communicated, we will sell our systems there. But there is much more to give in Asia than what we have today.

Super interesting. And on a more general plan, what has developed in this quarter in relation to, if we can talk about and the order book as it looks like. Is it about you working on the order book or how does the underlying order input look like? Is there anything to say about that?

We see a good activity in America or in Asia. There we see an activity and an input. We see a little more surveillance in Europe. where the last few months have been a bit more waiting. But I still think it's positive in America and Asia.

If we look a little further down in the results calculation, then it was a strong result here during the third quarter. I just thought, can you start by developing a little about the geographical mix, the product mix, and what impact can it have on the gross margin and a little further down?

No, but as we have said earlier, we get America and then we have managed to get good access to our precision system, our premium system. Both of them have contributed and that is what makes the geographies in precision and then a strong America for 12.

And another interesting aspect was, as you mentioned in the report, that you have worked a little with internal efficiencies and feel that you have a good reason to be able to deliver on the growth that you have here. How should you look at this and the dynamics around scalability and so on? Do you feel that you are more scalable now that you are where you are and do you have the ability to handle a potentially strong growth?

No, we have absolutely. good with capacity and can absolutely handle growth. That was what we saw in the quarter as well, that it quickly planted itself in the last row. Our bottle calcium production is in the final test and there we have today good infrastructure and good staff access so that we can not have it as a bottle calcium production. So we see absolutely Very good opportunity to scale up over time.

Thank you very much. And then I thought if we could discuss a little bit about costs, investment goods and maybe cost inflation in general. How do you feel that these factors have developed and managed to pair with, for example, price increases?

Well, we have... We have increased prices and received a review on that. The share of the voucher is still on the previous price lists, so we will see that in the future. But we see that we can take out the cost increases in price increases. Then we start to see now that we have capacity with new suppliers, where we can also set up an existing base. So the capacity is starting to open up and the price pressure is not the same upwards from the suppliers, which is very positive. At the same time, we see from the supplier's point of view that there is an effectification pressure. They may still maneuver and actively cut off certain types. Which means that you have to compete with your suppliers.

I understand. Thank you very much, Mattias, for taking the time to come here and answer your questions today.