C-Rad AB (publ)

Welcome to our Q1 presentation. We started the year with a solid quarter in a wait and see market. As most of you know, CRUD is active within radiation therapy and more than half of all cancer patients undergo radiation therapy at some point of the treatment. And our focus at C-Rad is the end-to-end surface-guided workflow from CT room to treatment room, where our surface-guided radiation technology, or SGRT, supports that the dose reaches the tumor and not the healthy tissue of the patient. But let me first zoom out and remind you of C-Rad's long-term strategy and priorities. Also, as many of you know, We have announced our medium term financial targets, which I will come back to later on in the presentation. So first, I will take you through our progress for Q1. Let me take you through the slide left to right. So first, I will start to the left with the market. We, CWAD, have a global reach and expanding step by step to grow our sales. And in line with our ambition to grow in the US, we had US retrofit wins on Varian Linux also for this quarter. And that is a good step in the right direction to strengthen our position in the US. With our focus on EMEA, we are pleased that order intake was up 15% in the quarter. In addition, we also held an EMEA distributor training in the quarter. In APAC, we received a large multi-hospital order in Taiwan. Secondly, we have a market-leading patient-centric portfolio, and we invest in innovation. At the important trade show Estro, we launched new patient-centric functionality with focus on the clinical workflow, and that we have developed in close collaboration with strategic customers. At Estro, we also presented our new Catalyst Plus Light offering for the first time. And this offering is designed for clinics that are in the beginning of their STRT journey for safe patient positioning. Thirdly, we see an untapped potential in the market supported by STRT becoming standard of care in many markets and also an untapped potential of equipping existing linear accelerators or proton machines. And growing services is another priority for us, which not only drives recurring revenue, but is also key for long-term customer partnerships. And for Q1, order intake for service grew 58% compared to Q1 last year. And finally, CWAT has good financial stability. We continuously work with operational efficiency improvements to step by step improve scalability. And for Q1, we continue to display a solid profitability in a challenging market. So let's take a look at the Q1 performance. With a solid order intake of 97 million sec, a 5% growth compared to Q1 last year. And that is in a wait and see market. The main contribution came from EMEA, but also from APAC. Revenue increased with 1% to 119 million SEK, mainly driven by strong deliveries in Americas and APAC. We had a solid underlying EBIT margin in Q1, mainly due to cost efficiency. We are both driving cost control and implementing measures to streamline our operations. The EBIT margin when excluding for unrealized currency effects was 18%. And then let's look further into the regional performance. And I will start off with the Americas. Addressing variance installed base of Linux is part of our long-term focus to strengthen our position in the US market, as I mentioned earlier. We had good progress also for this quarter. And in addition, we confirmed our strong position in the proton segments by a prestigious Wisconsin contract. However, the overall US market is affected by the uncertainty created by the tariffs, and we see a slowness in the decision-making. Order intake for Americas decreased by 21% to 19 million sec in Q1. And it's worth noting that we have not yet seen the tariffs come up in any customer discussions so far. For the revenue, on the other hand, we have growth of 35% in the quarter due to a strong backlog conversion. Moving over to EMEA. I'm pleased to see that the hard work by the team is paying off in the quarter in sales activities, campaigns, as well as actively supporting our customers in their clinical use. And while the German market continues to be slow, we closed sizable service contracts, both new and extensions of expiring contracts. We also took important product orders in Germany, as well as France and in the UK. Order intake increased by 15% to 38 million SEK. Revenue in EMEA was down 39% to 36 million SEK, and this is mainly impacted by the lower order intake of last year. And finally, then APAC. And in APAC, SGRT adoption is growing across the region. Order intake increased 15%. And this was supported by orders from Taiwan, as I mentioned earlier, but also increased SGRT uptake in Australia and China. India is a market with large potential still at an early stage. And I was pleased that we received a number of important orders to research hospitals in the country. This gives us a good foothold across the market in this emerging market. Revenue in APAC grew 41% to 50 million second Q1, supported by the rollout of SGRT across APAC and the large number of installations we had in the quarter. I just came back from Estro 2025, and Estro is one of our most important trade shows in the industry. It's a strategic part of our marketing and sales. The visitors are mainly clinical staff or part of the hospital administration, so they are very relevant for us. This was our best Estro ever, and it's not only for the record number, more than 7,000 global visitors to Estro, of which many were coming to our booth, but for the high quality discussions, and I would say more advanced than previous years. We were fully booked with live demos and meetings from morning to evening, generating strong interest and differentiation in a competitive landscape. And as I mentioned earlier, we launched our new product enhancements and the Catalyst Plus lights. And with that, over to you, Linda, for a closer look at the financials.

Thank you, Cecilia. I will take you through some of the main financials that has shaped our first quarter. As Cecilia has already explained order intake and revenue, I will not go into that again, but rather focus on gross margin, cost levels, EBIT margin and cash flow. Gross profit for the quarter was 78 million SEK compared to 76.6 million SEK a year ago. The increase in gross profit is following the increase in revenue year on year and was also slightly positively affected by mixed effects. The gross margin for the quarter was 66% versus 65% last year, and the current levels are in line with what we have had in previous quarters and within the range of what we would have expected. The gross margin for the quarter was positively affected by proton deliveries together with a higher share of service revenues. The positive effect was partly offset by sales of other lower margin products. Looking at our main operating expenses, you see at the left hand side of the chart that they decreased year on year from 64 million SEK last year to 56.1 million SEK in this quarter. Q1 of 24 was impacted by legal expenses related to the settled dispute with a former employee. The decrease is also related to lower external expenses as we have gradually replaced external consultants with own employees. At the right hand side of the chart, you see that quarter on quarter OPEX is slightly down from 57.1 million SEK in Q4 to 56.1 million SEK in this quarter. The decrease is mainly related to lower expenses for traveling. EBIT for the first quarter was 10 million SEC compared to 14.2 million SEC a year ago. This quarter was affected by unrealized exchange rate losses of 11 million SEC on the revaluation of operating balances due to the stronger SEC at the end of the first quarter. Let me emphasize that the losses are unrealized. Excluding for unrealized currency effects, EBIT for the first quarter was 21.2 million SEC compared to 11.9 million SEC a year ago. And looking back a few quarters, CIRAD shows continuous improved earnings and an increased profitability over time. With this development as a foundation, we are well equipped to continue to grow as we believe we can increase the EBIT margin even more over time. Our cash balances increased by 10 million SEK during the quarter and stood at 161 million SEK at quarter end compared to 151 million SEK at the beginning of the quarter. Main driver behind the increase is an operating cash flow of 26 million SEK, whereupon improved working capital contributed with 16 million SEK. Working capital was positively impacted during the quarter, primarily from reduced accounts receivable as a result of customer payments. The positive effect from accounts receivables was partly offset by reduced accounts payables, which are normally higher at year end. We still have a few orders pending final acceptance test on our balance sheet. Some of these are expected to be paid during Q2. And last but not least, I would like to remind you that Searide is a company with a strong balance sheet with no long-term debt. And with that, I will hand over back to Cecilia for some closing comments.

Thank you, Linda. So summarizing the quarter, we had a solid performance in a wait and see market. Looking ahead, we have announced financial targets for the medium term. And our ambition and guidance to you is that in the medium term, we will have an average organic growth exceeding 10%. Operating margin will reach 25%. and at least 30% of the net profit will be returned to shareholders. Our mid-term targets are ambitious and reachable. So why now? I have been CEO for two and a half years and the new board two years. And together we have worked intensively building and step by step improving the company making us better suited to grow with improved profitability and resilience. We have come to a point when we feel comfortable sharing our medium term financial targets with you. We are currently facing an uncertain market situation, but we are looking beyond today. So what is really behind these priorities? Well, it means that we will further penetrate this market. There is untapped market potential, both in advanced and developing markets, that we want to capture. SGRT is standard of care in many markets, but still it's early days and there are many systems without SGRT. Hence, we see a potential to retrofit existing linear accelerators or proton machines. We have a highly competitive portfolio, which we will continue to innovate and complement. And it is key for us to build long-term customer and increasing the number of reference clinics. We know happy customers are our best sales reference. And we see a great opportunity to grow services as our installed base of systems is growing And that is not only important for sales and happy customers, but it's also supporting our profitability. And we are building a resilient company supporting scalability. Resilient from a market perspective and from building a more mature company supporting growth. And again, our midterm targets are ambitious and reachable. And thank you, and over to the moderator for Q&A.

If you wish to ask a question, please raise your hand.

There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.

Thank you all for attending the Q1 presentation. We all know someone affected by cancer, and we have an important job to do in the fight against cancer. This creates value both for patients, for clinics, and for shareholders. Thank you.