Careium AB (Publ)

Welcome to this Q4 and year-end presentation by technology-enabled care company Carium. After the presentation, there will be a Q&A with equity analysts, and viewers can ask their questions in the live chat. Please join me in welcoming CEO Peter Heumann and CFO David Granath. Welcome. Thank you. Thank you. And by that, please go ahead with the presentation and I'll be back for the Q&A.

Thank you very much. And thank you everyone for joining this year-end report and Q4 for 2025 for Carium. So I'm Peter Hojman and when we stand here today with this report, I have been the interim CEO here for almost six months and for closing the year, that was around my four months mark. Before we go into the presentation, I just want to give you a little bit of reflections here after I started and after this initial period. And, you know, it might be perceived as a little bit of a mixed result in this report. But I want to tell you that during this first initial period, I've done a lot of analysis, etc. I've been to most of the markets. I met customers, partners, our organization. I also want to emphasize that even though you see in the report that there are room for improvement, I have also found a lot of great assets. Just to give you an example, a large portion of the revenue in this company is based on long term contracts with solid customers. That's a very positive thing for a company like Carium. So even though there is a little bit of a mix in the result, I think you should also bear with you. There are some strong fundamentals in the company as well. Having that said, I think we will move on into the quarter four presentation. So if we start with some of the highlights, you can see that we have a positive development on the net sales. And if we adjust for the currency headwinds, it's a growth of around 6.3%. That's one of the positive marks in this report. Strong cash flow, important for this business, I think. And it's a very good, and comparing with last year, almost a doubling of the cash flow during quarter four for 2025. I will further go in later on here when we talk a little bit more in detail about the sales on the mix of product sales and services sales. But you can see that there is a slight growth in the product sales and we are on similar levels on the services sales. The EBIT is of course pressured under this quarter and we will come back and David will provide a little bit more details around it. And another highlight that was presented during quarter four is that the company will have a permanent CEO starting here in quarter two in Tove Kristiansson. So with that, let me continue with a little bit more details around the sales. So as you can see from the report, overall in quarter four, net sales increased with around 1%, but like I said, adjusted for currency, 6.3%. So the underlying growth, I think, is fairly decent. You will see in more detail later on as well that we have some headwinds also from these historic financial lease corresponding revenues from previous years. So underlying, it's actually even better. The service sales decreased slightly. I would say it's on similar levels and the underlying part is actually having positively as well. And there is an increase in product sales, which covers up a little bit of that small decrease compared to the services sales. And overall gross margin is on similar levels, I would say, as comparing with quarter four last year. But if we look at the total 2025, gross margin is up compared to last year. So overall, I think that both for the quarter and in particular for the year, both the net sales and the gross margin is heading in a decently positive direction, which is very, very good. Then if we move on, and I will try to provide you a little bit of more insight into the main markets for Carium. So if we start with the Nordics, you can see that net sales has increased with 7%. But adjusted for, because it's in this market, we have had the historic financial lease revenue or net sales classification historically, which is what me and David and the board has now tried to clean out of this company to make it more transparent. If you look at adjusted also for financial lease, the Nordics is actually growing with 25%. And I think that's a very solid number. This is partly also driven by a good growth in Norway. services amounted to 93 million approximately and product sales slightly below 8 million gross margin in the nordics during the quarter did also increase from 35 36 level up to close to the 40 level so it's heading in a positive direction and hopefully we can see that improve even further going forward when we have the full effect of these for example new contracts in norway Then if we go to one of our largest markets, the UK, I would say that the net sales is on similar levels and adjusted for currency, it's a slight growth underlying here. Services sales decreased somewhat while product sales increased. but and the gross margin is a little bit under pressure here i remember from last time we got a question about the services sales in united kingdom i have looked into that during my initial period here and yes there were some lot a large contract that was lost i think more than a year ago but the the operation is doing a great great job and i start to see positive crack attraction And especially now looking quarter to quarter, where they are growing with almost 6%. So it's starting to cover that one with new services contracts. And I have good faith in that that's going to continue going forward. There is a slight gross margin pressure in UK. I will talk a little bit later about the closure of the analog telecom communication services in UK that is planned. And I think here there's some large volume opportunities from a product perspective, but we might be slightly pressured in that competition for a limited amount of time. So I think that was some of the main markets, Nordic and UK. If I continue to somewhat smaller and more emerging markets for carium, we have in the Netherlands, I would say one of, in my perception, one of the most stable markets for carium, where we see a slight growth. I think the main takeaway here is that our team in the Netherlands managed to keep a very good gross margin on an above average level for carium overall, which provides a great contribution. If you look at the full year in the Netherlands, we also saw a slight growth of revenues down there. Then if I continue with other markets, which is primarily Germany, France and etc., net sales in the quarter was somewhat, I would say, on par with last year. But also here, which is very product driven, I'm impressed with the gross margins that the operation can provide, which also contributes then in a positive way into Carium overall. But if you look at the full year for these markets, they have also provided growth. So all in all, a few very stable markets with great margin generation and overall similar levels or so on the top line. But I think contributing to some of the positives in the report, considering both net sales, cash flow and gross margin. With that, I will hand over to David who will guide you a little bit more in detail about the profitability and the cash flow. So over to you, David.

Well, thank you, Peter. And now a short update on the profitability for the quarter. EBITDA amounted to 27 million compared to 44 in the same period last year, reaching an EBITDA margin of 11.7%. EBIT was 11 million in the third quarter compared to 26 million last year, giving an EBIT margin of 3.6% compared to 11.6% last year. As Peter mentioned before, EBIT for the quarter was affected by, I would say, increased headcount in sales and development during the year. We have disposal of some assets and we have some initial initiatives for future efficiency, I would say. And with that, moving on to the cash flow. As we see, cash flow is one of our key metrics. We have increased the transparency in the cash flow statement in the report. So there you can see that the cash flow from operating activities amounted to 69 million in the fourth quarter compared to 35 million for the same period in 2024. Investments amounted to 39 million and almost double compared to last year. This increase, as I mentioned before, is driven by tangible investments due to less contracts being classified as financial lease. So both the cash flow from operating activities and the investments are impacted by the financial lease. That's disturbing the comparables a little bit, but on the free cash flow, I'm pleased to see that we managed to get 30 million driven by improved working capital. The cash was 55 million and net debt was 155 million at the end of the year. And the board will not propose any dividend for 2025 as we're building up resources. And with that, I hand over to Peter for some annual summary and concluding remarks.