CellaVision AB (publ)

regulatory wise and also a slightly increased R&D spend as well, according to our strategy. So that gives us an EBITDA of 60 million in sort of comparable with an equivalent to the comparable quarter and an EBITDA margin of 31% in line with our corporate objectives. I can unfold our R&D spend a little. It's 22%. It's increased from 19 to 22%. And in sort of actual numbers, we've spent 42 million versus 36 million last year in the comparable quarter. So here we have approximately 22 million sitting in the P&L and then we have 20 million capitalized versus last year where we had 20 million sitting in the P&L and 16 million capitalized. Cash flow wise, we have an operating cash flow of 58 million this quarter. So we've had positive contribution from our working capital, 7.5 million, primarily due to the fact that we've driven down accounts receivable and we've driven down inventory. So that's kind of a shared contribution, if you like. On the investment side, I talked about the capitalized R&D, which is the 20 million, which is the majority of the 25 million we have on the investment side of our cash flow. And on the financial cash flow implications, we have minus 63 million, and that is pretty much 60 million going to dividends of our shareholders. So that leaves us with a total cash flow of minus 30 million this quarter, which is somewhat stronger than the comparable quarter last year. Still a very healthy company from a financial perspective with hardly any debt. And we have cash and bank equivalents of 155 million sitting on the balance sheet as of today, as of this quarter. Let's try and unfold the regional highlights on the top line, what happens in America, in the U.S. and in the APEC. So for America, we had a growth of 5%, so that was equivalent to 66 million. So we had a pretty healthy contribution from our integrated systems, the DI-60. However, we had a softer contribution this quarter from our DC-1 instrument sales catering for the smaller laboratories. Say our analysis is probably more related to internal matters on the different where we've been transitioning from one smearing device where we've had issues to a more simple smearing device. So that has impacted the demand side. We still see continued progress in expanding our market presence in Latin America and especially in countries like Brazil, where we see attraction for the DC-1 instrument format. For EMEA, a little bit more modest, but also on the low side, organic growth of 1%, so we were reporting 80 million here. So it's a little bit mixed, large and small, but what is good to hear is that there is actually momentum across multiple countries. Also, when we have the communication with our key partner, there are orders coming in from multiple countries, but of course, a little bit soft sort of order placement for installation. That is the nature between getting the orders from the lab versus the time of installation. And then I can talk to APAC where I would say a very strong APAC, 46 million organic growth equivalent to 27% after the 5% currency effect there. There is a contribution sort of in general from APAC, but also an exceptional contribution since strategically we've been running a program where we are manufacturing the DI-60 out of China. And as part of that process, we have shipped a number of components going to the Made in China manufacturing line, which is what you also see in our numbers with a little bit exceptional high contribution from APAC and especially to China. But again, a broad, the integrated solution is strong. And we have also, over the years, we have, you can say centralized and streamlined our commercial operations across APAC to really work closely with our key partner being Sysmex. But we are actually also expanding in Southeast Asia with the resource to help us and Sysmex drive growth in the region. So we're still investing in the sales and marketing also on the research side. Yeah, this chart sales per product group, that's when we carve the revenue in product categories, instruments, regions, software and others, where others refers to our spare parts and how oil consumables. And here, I think I already talked about the dynamic, but in general, this quarter, it is the large instruments that remains the significant driver. We do have some product mix within the category as well, but also across the small instrument category, as I alluded to. What I want to highlight under reagents is especially for EMEAN, we have 20% growth versus the comparable quarter for hematology regions. So hematology regions and especially in EMEA where we have the majority of our sales is really growing healthy double digits, which is according to our strategy and good to see. Again, our reagent expansion strategic pillar embraces both APAC and the US. And for APAC, as you will see in if you digest some of the detailed numbers, then we are growing the APAC reagent. However, it's still small numbers spread across multiple markets, but we are increasing with from 1.5 to 1.8 and about a million increase compared with 2.3 million last year, year to date and 3.2 now. So it's about a million with withdrawn year to date with the comparable quarter. So that's of course smaller numbers, but the big driver in APAC is China where we are working on our distribution set up to eventually get into China and combine that with our total offering as the only solution provider who can deliver both instruments, reagents and superior softwares. And for the US, I should also mention the MCDH now being available with our software upgrade. I think that is extremely strategically important that milestone it endorses for our opportunity to bring MCDH both to Europe, but of course also to the US where we via Sysmecs have a large opportunity to improve and deliver much more environmentally friendly solution to the labs. So that is a key milestone that you will hear more about as we plan the big launch for autumn. And the remaining part around software is pretty much in line with our installed base and our instrument sales. So let's take the key takeaways. It's a little bit rich, but I'm actually pretty proud of what we are reporting on this slide. Again, we see this mixed regional performance, but we see organic growth. There is some, that's cool. I shouldn't say seasonality, but there is a function as to when are we hearing about orders at hospitals versus when we need to deliver. And if I look at the power of focus strategy and I think about the strategic partnership that we have closed, we're continuing to improve the way we work and the way we work marketing wise, sales wise, sales support wise, but we're also increasing our engagement in the investment program and really making some progress. And I think these bullets, these sub bullets speaks to our progress. The clinical trials for bone marrow are now completed for Europe and we can really start to envision a CE mark. There is obviously insecurity around when you file before you get the actual approval of your documentation. However, we're confident that we will have a CE mark by the beginning of 2026 leading to our launch. I have introduced today without sort of announcing the actual launch and the content, but we're very proud and I'm very proud of the team who has actually done this improved software version that we will launch this year. And then I also want to emphasize that our R&E spans entails the adaptation of our superior technology for titographic microscopy, FPM, which we are lifting into our core hematology business and the next generation solution. So that is progressing according to plan. And so is the continued exploration of our FPM in adjacent fields such as pathology and cytology, where we're also really refining and improving the technology and having external engagement and conversations around that superior and proprietary technology. So we do continue on our journey to continue pushing the limit of delivering cutting-edge solutions, reaffirming our market position in line with our strategic plan. So finally, I mean, before we go to questions and answers, I think it's a super special day for me and not the least for Magnus, our CFO. Magnus has decided to leave television after 12 years. So this is actually your final call. That's right. You've been there almost sitting here for 50 times, I guess. But of course, I want to thank you so much for what you've done for the company of the journey you've been on from a very small to a mid-sized company where we are on a very interesting trajectory. I think with your capabilities, you will have all opportunities going further. But of course, I want to thank you also in this community where you work closely with multiple investors to thank you for all you have done for the company. So thanks, Magnus. Thank you, Simon. It's been excellent 12 years. Thanks a lot. Wonderful. And with that, I think it's appropriate to open the mic and have some questions for the ones who have not reached the beach yet. Thank you very much for listening in.

If you wish to ask a question, please dial pound key five on your telephone keypad. To enter the If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Ulrich Trattner from DNB Carnegie. Please go ahead.

Thank you very much. I hope you can hear me all right. A few short questions on my end. First being related to the deliveries to China, did we consider this to be an inventory buildup and for this to be actually sequentially a little bit weaker in the common quarters? That would be my first question.