CellaVision AB (publ)

thank you very much and thank you for to everybody for dialing in to the first quarterly reporting here in 2025 i have our cfo magnus blix with me and we are pleased to present the q1 results of the television So the heading of the quarter of our report is strong quarter in a rapidly changing environment. We are reporting a revenue of 195 million, so it represents a growth somewhat above 14% and 14.1% organically. So we believe and we are reporting a pretty strong start to the year. And that is really a contribution from the three regions, but also given the attractions of our solutions across many markets. We know that the nature of our business is really subject to some quarterly fluctuations, given our order-based sales processes, as you may know, the ones who have followed the firm for four years, but also the delivery timing of entire bloodlines is a function here. However, we are proud to get a good head start to the new financial year and I'm pleased to elaborate a little bit more on that and then we will do the Q&A. Essentially, with this result, it also emphasizes and it contributes to our strong financial position. We have very, very little debt on the balance sheet and now a very strong, still a strong cash position that is growing, including a pretty strong operational cash flow. In terms of the progress on our strategic direction, we have chosen to highlight some of the themes that we are investing in. We have increasingly invested in R&D as part of our power of focus. And we're in the midst of a very rich and valuable roadmap. So we are continuing our clinical trials for the application of a bone marrow module that will allow us to classify the different cell intermediates of bone marrow. So that's continuing, you know, according to plan. We're also today sharing that we have part of our R&D investment has also been upgrading our current solution. So we're actually running verification and validations of software solutions for our current hematology. solution which also comes with some workflow advantages and improved user interface. We will certainly talk more about that at the point and launch, but here you are certainly getting the hint that it's pretty nearby. And then again, we are very proud of what we reported in our annual report of 2024 in terms of our progressive development of the four-year titrographic microscopy solution, which is also part of our next generation hematology solution. And we still have traction and interest from new potential partners in the field of pathology and cytology. So our commitment to our R&D investments are continuing according to plan. Let's take a little bit of a look on the P&L. And I excuse myself with my voice. I have a little bit of a delayed cold. So as I said, we demonstrate and report the 195 representing 14% growth. It's a strong gross margin that it comes with. It's 70% versus 66% in our compare Q1 2024. I think the main sort of element here is that the compare was actually before we implemented the price increases of last year. We also in Q4 had a pretty decent gross margin of 69%. We are lifting it a little bit and that is also a contribution of our product mix. So both we had solid instrument growth with a reasonable gross margin, but actually also within our software and other category, we have contribution from software And actually a little bit decline on the spare parts and others, but a good contribution from software. So taken together, we have a strong gross margin. Our operating expenses, 41% of top line, they equal 80 million. We are increasing a little bit on the admin side due to commitment to regulatory requirements, but not the least following our investment plan on the R&D side with an increased investment on R&D where a quite big chunk of the raise is also capitalized. Our operating profit equals 57 million for the quarter, and then including the depreciation, we land at an EBITDA of 66 million, which is equivalent to 34%. So it's a strong EBITDA driven by our gross margin, strong gross margin, and of course, the scalability of our business as we are reporting a strong top line growth. In terms of cash flow, Here, on the working capital side, we do have an increase in cash receivable, slightly decline on the inventory level. So essentially a contribution of around 3.5% from working capital, which brings us up to 61% of an operating cash flow. And then we're investing as planned in primarily R&D. So that's 18 million out of the 21 million from investments. And then we have our financial activities, which brings us down to a total cash flow of 37% a million within this quarter. So that's the P&L in short. Let's take a look at the regional highlight. So essentially, as I said in the beginning, it's driven by pretty much all positive growth across all regions. Americas, no doubt we've had a little bit of a soft quarters in Americas given the previously reported insecurity when the American presidential election was on. I think here we are reporting that we are coming back both on the, you can say, the large instruments. We have seen contributions similar to the comparable quarter. and somewhat higher than Q4. And we're also seeing positive growth on the DC1 catering for the small lab segment. So overall, we report 8% growth in Americans. EMEA is 21%. It's 96 million in total. That's a very strong contribution from multiple countries. So we have really, we are seeing you can say output and success from our close collaboration with our strategic distribution partner in this region, which is good to see that also it demonstrates the attractiveness of our collective solutions, which resonates across different countries out there. We're also reporting a solid double-digit growth for our hematology reagents of 12%. So that is another driver which is also pending on our strategic distribution partnership. APAC, 12% growth, so 21 million. It's always a little bit, the APAC number can fluctuate quite a bit, given the fact that we, at times, we typically ship larger boats of instruments. So it's a little bit vulnerable. But by the end of the day, we see traction from both Japan, China in these numbers. And we see intensified activities also in close collaboration with our strategic partner. So that gives us a lot of appetite and motivation that we can actually really pursue growth across this region as well. If we cut our numbers, so here on the chart, it says sales per product group. So here we've chopped up our revenue into the different solutions. On the instrument side, in this quarter, it represents 59% of the total revenue. So no doubt that instrument is a strong driver of the strong results, which is a good basis for our solutions. And so in total, we had 115 million coming from from instrument versus 92 in the comparable quarter. I think in terms of reagents, I mentioned the double digit coming out of EMEA with a total growth of 5%. So a certain proportion of our business is our non-hematology, which is only growing modestly. But however, it's it's a good it's a good customer base and it's it's still a good contributor to our business. But it is obviously the hematology reagents where we bank on 12% growth and that is taking an increasing share of our reagent business in EMEA. We are working on expanding, of course, into APAC and we also have plans for the US. In terms of software and others, that's important. So we did 42 million in that product category versus 42 in the comparable quarter. We can say that we had a larger share of software, as I alluded to in the beginning, which means that especially the consumables like oils for the installed base, but also spare parts are a little bit low. So we had a little bit of an overflow of software, not overflow, but we had a little bit of a low software sales in Q4. So there's a little bit of a contribution from excess software coming into this quarter. Not that it's significant at large, but there's a little bit of a contribution there, which also explains the somewhat lower in Q4. So if we just wrap up here and say we do believe that in isolation, Q1 is a strong quarter. We actually think despite the fluctuations and what we define as the changing environment that we're all aware of, We think that the signals we get from our partner and the market are positive. We do understand that there is uncertainty sitting out there. And also the nature of our business, as I started alluded to, is changing. influencing the business for at quarter to quarter however the basis is that we we we really get the message that there's a strong traction for what we do and also our solutions across the different product categories and across the different markets We appreciate our enhanced collaboration. It takes time to get close when you go to market together. There are many interactions, many relationships that needs to be built, but we are really progressing on our results, but also on the trust level and the way we work together. So I want to thank our strategic partner for that indeed. We are fully committed to execute on the power of focus. So as mentioned in the beginning, I mentioned our focus on R&D, our spends, but also I really want to send a heartfelt appreciation to my staff, my team who are really executing according to our plans and our roadmaps. So they are taking the investments very seriously and working extremely hard to allow us to differentiate within hematology beyond overtime. And with that, I think we should go to the Q&A. So I will hand it over to the moderator, and I appreciate the interest you show in our company. Thank you.

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