C-Rad AB (publ)

Welcome to the C-Rad Q3 2026 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing hash 5 on their telephone keypad. Now I will hand the conference over to CEO Tomas Blomqvist and CFO Linda Froelian. Please go ahead.

Good morning everyone and welcome to CIRAD's third quarter 2026 presentation and thank you all for joining us today. My name is Tomas Bromqvist, CEO of CIRAD. I'm joined today by Linda Frilén, our CFO, but also our Chief Product and Technology Officer Eva-Lisa Karjalainen. We will take you through the financial performance for the quarter, our operational and technological progress, and the priorities guiding CIRAD into the next phase of our transformation. Let me now start with the key takeaways. Q3 was a weaker quarter financially than we had expected. Order intake amounted to 76 million SEK, down 29% year on year, while revenue was 85 million SEK, down 24% compared with Q3 2025. The regional development shown on the slide highlights the main reason for this outcome. Order intake varied significantly across our markets. The Americas increased by more than 20% year on year, while EMEA was the key driver of the overall weakness and declined by 40%. APEC declined by 34%. The same regional pattern is visible in revenue. Revenue declined by 33% in APEC and by 23% in EMEA, reflecting weaker product deliveries in both regions. The Americas declined by 6% year on year despite the positive development in order intake. This difference between order intake and revenue also reflects the timing essential in our business where orders convert into revenue over time and larger product deliveries can shift between quarters. We're not satisfied with this performance. Improving commercial conversion, strengthening product deliveries and restoring growth in order intake and revenue are clear priorities for us. At the same time, the quarter demonstrates important strengths in our underlying business and continued progress in building the capabilities we need for the future. Our service business reached a record quarterly revenue of 30 million SEK. Gross margin remained very strong at 76% and EBIT margin was 12%, demonstrating resilience despite lower volumes. The positive year-on-year development in order intake in the Americas is encouraging, particularly in contrast to the declines in EMA and APEC. However, we need to convert this momentum into revenue and demonstrate sustained performance over several quarters. Let me now put this into the broader context of our transformation. We're building a stronger, more customer-focused and more scalable C-Rad. We're still in the early stages of our three-year transformation, which began earlier this year. The first phase is about establishing a stronger foundation, sharpening priorities, strengthening commercial execution, clarifying accountability and directing resources towards partnerships, software innovation, and selected markets. That work is progressing according to plan. However, transformation is not an end in itself. It must translate into stronger commercial performance, profitable growth and long-term value creation. And that is where our focus remains. Turning to the market, we saw clear regional differences during the quarter. Europe experienced a more cautious investment environment with fewer tenders and delayed purchasing decisions, particularly in Germany. This was reflected in the 40% decline in EMA order intake and the 23% decline in revenue, with weaker product deliveries contributing to the revenue development. APEC was also weaker, with order intake down 34% and revenue down 33%. Developments in China and India contributed to the weaker performance, and product deliveries were also lower in the region. The Americas developed more favorably on the order side, with order intake increasing by more than 20% year on year. Revenue was nevertheless down 6%, illustrating the timing difference between order intake and delivery. This is an important distinction. The order intake development provides an encouraging signal but it must translate into deliveries and revenue in the coming quarters. Our industry continues to be characterized by long sales cycles, significant investment decisions and quarter to quarter variability. We therefore assess performance across several periods while remaining clear that our commercial conversion, regional execution and revenue development need to improve. A particularly strong signal this quarter came from our service business. Record service revenue reflects the value of our global installed base of more than 2,200 systems. This installed base is much more than a historical achievement. It is a strategic asset that creates opportunities to grow recurring revenue through service upgrades, service licenses and new solutions. Increasing the value we generate from this installed base is central to making C-Rad a more resilient and scalable business. Let me now turn to our strategic direction. Our ambition is to build on our leading SGRT position and develop C-Rad into an open workflow platform for radiation oncology. We're not moving away from what has made C-Rad successful. We're building on our technology, install base, clinical relationships and global presence to address a broader opportunity. At Astro in Boston, we presented an early preview of our next generation software platform and advanced our automated patient verification solution. Together, these developments represent important building blocks towards more integrated and automated workflows. Our collaboration with CTREAT in adaptive radiotherapy is another concrete example of this approach, connecting CRAT's patient positioning and motion monitoring capabilities with adaptive treatment workflows. It illustrates how partnerships can extend the value we deliver without requiring us to build every component independently. Commercially, our work with larger cancer organizations and networks remains important. Our business with Ron Ergea in Germany builds on successes with customers such as Genesis Care in the UK and Elsan in France. We want to translate these relationships into repeatable opportunities across multiple clinics and markets. Looking ahead, our priorities are clear. Improve commercial conversion in our priority markets, So, let me conclude with a few comments. Q3 was weaker than we expected, and we need to improve our financial performance. But our strategic direction remains clear and the work to build a stronger C-Rad is progressing, but there is still a significant work ahead. Our ambition is to become not only a leading provider of SGRT technology, but also an open and trusted partner connecting technology state and workflows across radiation oncology. With that, I will hand over to Linda Frilén, our CFO, to take you through the financial Q3 performance in more detail. Eva-Lisa Karjalainen will then provide an update on our technology, product development, the Astra exhibition, and our first ecosystem partner, C-TREAT. Linda, over to you.

Thank you, Tomas. So, as Thomas has already given you the flavor of our order intake and revenue for the quarter, I will rather focus on the journey towards earnings and cash flow. In the following slides, I will go through our gross margin, cost levels, earnings, cash flow and investments. I would also like to comment on our revised backlog. As part of our ongoing efforts to ensure a high quality business, We conducted a thorough review across all regions during the quarter. This has resulted in a write-down of SEK 93 million of our order stock. Important to highlight is that this adjustment does not change our expectations for revenue development in the coming periods and it has not affected the earnings for the quarter or the interim period. Gross profit for the quarter was SEK 65 million compared to SEK 83 million a year ago. The gross margin for the quarter was 76% versus 74% last year. The increase year on year is explained by the higher share of service revenue in this quarter, which was 35%. We also had proton revenues in this quarter, which we did not have in the third quarter of last year. Looking at our operating expenses after capitalization, you see to the left of this chart that they decreased 7% year on year from 58 million SEK last year to 54 million SEK in this quarter. The decrease in year-on-year OPEX is related to lower personnel costs due to average number of employees, which are down from 106 in Q3 of last year to 100 now in this quarter. Also, commission expenses are lower following the lower order intake and revenue for the quarter. To the right of the slide, you see that quarter on quarter OPEX is down from 60 million SEK in Q2 to 54 million SEK in this quarter. The decrease is related to lower personnel expenses in Q3 due to summer holidays. As we increase our focus on innovation and product development, our underlying OPEX are expected to increase somewhat. But as these initiatives approaches commercialization phase, the capitalization rate is also expected to increase. EBIT for the third quarter was 10 million SEK compared to 21 million SEK a year ago. The decrease in EBIT for this quarter is mainly explained by fewer product deliveries. However, profitability showed signs of resilience, supported by a strong gross margin and continued cost discipline. The restructuring measures implemented earlier this year have also helped mitigate the impact from lower volumes and demonstrate an organization that is operating more efficiently. While there is still a gap to our EBIT margin target of 25%, we believe the foundation for margin expansion is strong. With a high gross margin profile, a more efficient cost base and focus on innovation, we see a clear path to our target over time. The profitability level achieved in recent periods confirms the operational leverage in the business model and the earnings potential as growth returns. Our cash balances increased by 6 million SEK during Q3 and stood at 144 million SEK at quarter end compared to 138 million SEK at the beginning of the quarter. Cash flow from working capital was 4 million SEK in the quarter compared to just below zero a year ago. Working capital was positively affected by payments from customers, which was partly offset by increased inventory levels and restructuring payments. Our focus on our balance sheet and our cash flow will continue. As a last slide from me before I hand over to Eva-Lisa is one showing our increased level of investments. Looking back, we believe the pace of innovation has not been where it needed to be to support the growth ambitions of the company. While we have continued to develop our existing portfolio, the rate of new product development has been too low. To address this, we have significantly increased our investments in product development, as illustrated by this chart. Over the past two years, annual investments have increased by approximately 16 million SEK, enabling us to strengthen our development organization and accelerate innovation. We firmly believe that increasing the pace of innovation is essential to returning to sustainable growth. We have already communicated our next product, patient verification, and we are actively working on additional products that we expect to launch during next year. In summary, we are making a conscious investment today to build a stronger innovation engine for tomorrow. We believe this will be a key driver of growth and value creation in the years ahead. And with that, I'd like to hand over to Eva-Lise who will walk you through our innovation agenda and how we're transforming these investments into future products and customer value.