CellaVision AB (publ)

Thank you very much. And thank you very much out there for dialing in for Cellevision's quarterly report, Q4 2025, which obviously also includes the consolidated results from the entire 2025. A lot of good things have happened, and first of all, I want to formally welcome our newly appointed CFO, Monika Jönsson, who is with me today to participate and, of course, explain our business. Monika has been with us since autumn, and she was formally appointed CFO with Cellevision on December 12th. So that was the first good news. Hopping into the quarter in brief, the Q4 in brief, we have entitled our quarterly report as a solid quarter driven by strong performance in Americas. So it's particularly in Americas. However, we also see a pretty strong performance in EMEA, while the quarter has been somewhat soft in APAC. And we will unfold that throughout today's call. We landed the quarter with net sales that increased by 5.6% to a revenue stream of 197 million sec, which translate into an organic growth of 12.2% given our headwind on the FX of minus 6.6%. So double-digit growth throughout this quarter. This translate into an EBITDA contribution of 65 million sec, equivalent to 33 percentage points. In terms of the business, we will go into the business and explain both our P&L, our regional split, give some highlights there. and of course also cut it across the different product families. But I also want to give a little bit of insights as to our progress on our strategic direction. We accomplished a key milestone by getting CE Mark for our new applications for bone marrow aspirates. And so this is a Class C product that is now registered according to the EU IVDR, which allows us to start launching the product this year, or pretty much in the quarter we're in. We can talk more about this a little bit later. We have also, as we've noticed in our latest report, we've also been working on a significant software upgrade for our hematology instruments. This has been successfully validated at a customer site. So this really allows to operate our fleet with a modern and user-friendly interface, some new features including also higher speed on the new Di60s that comes out. Furthermore, I also want to emphasize that since we are coming to the year end, the board of directors proposes to increase our dividend from 2.5 last year to 2.75 Swedish kronor per share. So this is what will be proposed at the annual general meeting taking place on the 28th of April. If we zoom in on the financial development for Q4, I've mentioned our revenue, and then if we hop in, so on the left-hand side, we have the quarter we are reporting today, the comparable quarter, and then we've consolidated the entire full-year report with the compare for 2024 to the very right-hand side. For the quarter, our gross margin was 67%. So it's a little bit lower than normal, a little bit hit by software, especially from APAC, but also FX also takes us down a little bit here. Operating expenses landed at 39%. And EBITDA, I've talked about the 65, that is 33%, which is above our target of 30%. And then we on the R&D side, which is really, very strategic for us. We've increased our R&D spends over the, within this strategic period. So we're at 19% and up against the compare, it drops from 22. So it's actually 37 million in total R&D spend. But maybe I can ask you Monika to comment on our capitalization and also maybe also our principles for capitalization that might be appropriate.

Sure. So during the quarter we capitalized 15 million SEK in R&D costs. And as you can see then that we capitalized more or less half of the R&D spend. And what is not capitalized is mainly related to projects that are in an early stage and also product care. And you will see during 2026 that we will start capitalizing some of the projects that are maturing and also start depreciating some projects that we are launching products such as bone marrow.

Excellent. So on the cash flow side, operating cash flow of 51, so slightly increased with 5 million versus our comparable quarter, and a total cash flow of 30 million. So going from the operating to the total, the majority of that is really the cash that we invest and capitalize in R&D. That's what sits there. We have low, very low financing activities. So we have hardly any debt and we end the year with a balance sheet that contains a cash position of 180 million sec, 88 million sec, sorry. All right. Yeah, so I could say that here we are also showing the full year results. So we landed the plane over the year of 759 million SEC, which is an organic growth of 9% over the year and a gross margin of 68%. And that provides a total cash flow. of 40 million SEK. So obviously we've paid our dividends and we have also capitalized a considerable amount of R&D cost of 67 million throughout the year. So that is the main components that brings us to this total cash flow of 40 million. All right, let's move on. Let's try and look at the regional performance across the three regions, Americas, so North and South EMEA, including the Middle East and APAC. So our performance was very strong in America, in fact, all time high with 90 million SEC. That is an organic growth of 50 throughout the quarter. um also 50 but then the headwind on of currency effects so organic 58 um very strong momentum in america especially in the u.s which you may also buy by susmix and in their last couple of reports susmix being our main strategic partner um so so that is is kind of the business that is elevated as um our joint momentum. It is fair to say that it's extremely high and that is also due to a at the presidential election in Q4. So I think that's a fair comment to provide the full picture. For EMEA, we had there we also saw an increase in both in small and large systems and And we obviously also had a contribution from reagents, but they actually impacted negative quarter. There was, that is a Euro business. So we are primarily in currency. And then there's a little bit of facing on us there. But I can talk more to reagent in a second. On APAC, we landed sort of in, we typically in APAC, we have high fluctuations depending on whether we ship to APAC in particular China or not. And here we landed in a pretty reasonable quarter, 28 million. However, it does represent an organic decline or growth of minus 40%. And that is also due to a strong comparable quarter. You may recall that we had a, let's call it a one-off tender delivery for New South Wales in Q4 last year, which is why we organically declined so much. because it's a reasonable quarter where we've seen deliverables going both to China and to Southeast Asia a little bit spread. And so and then we continue to see growth of the our expansion into APAC throughout this is a lot of countries, of course, smaller volumes. But we are building our position with around things across APAC. And if I cut the same numbers per product, family, instruments, reagent software, and others, here you do see that our total instrument revenue was 126 million. And we talked about the US and the other elements. But it gives us a growth of 8%. For reagents, we actually were flat on minus 2% on the total business for the quarter, which translate into 6% growth on the year, so organically around 9%. EMEA decreased slightly. And as I said, that is primarily currency. I would say, though, that our hematology, which is the growing portfolio we have, what's what does not relate to the hematology labs and then the hematology reagents. Hematology reagents, which is the bulk of the business, two-thirds of the business, it grows 10% for the majority of it, which is for Europe. And in APAC, where we've started to expand with our hematology reagents, There, we also had solid growth, but though smaller numbers, but we grew on the quarter from 1.4 million to 2 million up against the comparable. And that pretty much more than doubled our revenue in APAC on the year. For software and others, we had declining growth. I should say software and others, it contains both spare parts, of course software, and also consumables such as oil, but it also entails the currency effect, which impact our numbers considerable from a comparable position here. And specifically on the software, we were low in the compare and there was a major contribution from APAC due to the large tender we provided last year, where we also that also entailed a considerable amount of software. So this is also why we see the decline. Key takeaways. As we say, fourth quarter is driven by strong performance in America's. And we said we landed our year with 9% organic growth. And in fact, if I really look at where we work and how we work with our strategic partner organizations, our core strategy, it works. We are growing double digits. with these both partner organizations across the world. However, we have some product portfolio, some product lines like non-hematology, other products that has taken our organic growth a little bit down, but our direction is paying off. And that also, that is also consistent with, that also applies to our power of focus strategy that we communicated in 2022. Here we invested a very ambitious investment program in R&D and innovation. And one of the levers was a new lever of entering what we call the specialty analysis arena. So more applications to assist the hematology labs out there to diagnose blood-based disorders. The first product is out. That is the product for bone marrow, as I initially said. So we do believe that now we can start building the market for assisting the lymphomas and leukemias out there in the hematology lab and adjacent labs where they utilize this hematology solution or this bone marrow solution. So we are starting to launch. First campaign wise, there will be training of our partner organizations. There will be building of a funnel And then there will be evaluations for the healthcare professionals to see how it assists their workflows. And then we do expect that we, in let's say the second half of the year, we will start seeing revenues from this product from Europe. And then we're of course also on that note aiming for getting into the US, but more about that later. As mentioned also, when we teed up the core, we have a major milestone in launching the software upgrade that delivers this faster and smarter workflow and cutting its user experience for the hematology labs and actually for the new DI60 systems that is integrated with the hematology line of Sysmex. It offers an improved integration, but it also entails an improved throughput. So the number of block samples that can be deployed will increase on the new DI60s. So we believe we're well positioned to continue our journey in assisting the mid and high volume labs here. So very important key takeaway is repeating back to our power of focus, where we in Early 2020, in spring 2022, we acquired the exclusive rights to IP rights to a patents portfolio that was invented by Caltech. And we have deployed and further developed our technology in our hands. As you can see in the way we communicate, we're extremely confident that this will really support our next generation hematology analyzers that are part of this major investment program that Cellivision has gone through and is going through. And furthermore, we were also very clear on our ambitions to expand and deploy our capabilities for adjacent areas. And here we're also confident to say that we truly believe that the way we go about pursuing our vision of really pushing the evolution of microscopy, we have a disruptive microscopy solution in our hands. And we believe that that is something we will continue to invest in and we will also pursue future partnerships that can help us commercialize these technologies in the future. So with that taken together, I do believe we ended 2025 on a pretty strong note with 9% organic growth given everything that happens. And I'm actually very proud of the team, given the fact that we've done this with our existing portfolio and we are seeing now that our innovation program pays off and we are starting to start launching all these new opportunities, which we're very confident will be a profound platform for future growth. With that, we will close this session and enter the Q&A.