iZafe Group AB (publ)

Welcome to ISEF Groups quarter interview with us, CEO Anders Kjegsson. Welcome Anders. Hello Marius. I think we're jumping straight in. I think we have a lot of people who are very curious about what has happened during the Q1. So we can start with that. We see that we have gotten a better result despite a lower turnover. How will that be?

If we look at last year, we were sending 2500 sales units to our partners. It is thanks to the sales units that we make it possible to get units that actually help the person take the right medicine at the right time. And it is one of these units that comes out and is used that we get the recurring license income. And it is the one we see now start to give effect. And in Q1 we have received many units that are beginning to deliver license income. And it is the license income that we have a good margin on that makes us able to improve the result. I mean, on the hardware we don't have that much margin, it is more than possible. And it is these license income that we have predicted that we will close the year at least 10 million ARR. And we closed the year, or quarter, at 3 million ARR. So we are going in the right direction and we keep the prognosis where we have put it.

It is interesting that when we talk about ARR, you mention that it is at 3 million today. What is the next milestone and how will we work to increase it?

We will do things all the time. First of all, we get these units started. We are constantly developing products and services that make it possible to increase our arpo, that is, average income per license. On those who are out there, so to find more service services and those parts. And then of course Sweden is getting more partners so that we can sell more products on more markets. All of these parts contribute to the increase in our ARR. And the next milestone is a fair number, maybe 5 million, and then on the whole it is 10 million.

Very exciting. If you read your CEO's words, you talk a lot about the number of dispensaries and how important it is for the company. And how it relates to the number of units out there. Could you explain a little more about that?

Yes, but that's what makes it very real. I almost become addicted to looking at the graphs every day, how the number of dispensaries that come out out there. That's what makes it useful both for the patient in itself, that it is being treated in medicine and the society in general. That's why we exist as a company. So we follow it, and look at it and see that it increases all the time from the week before. And it is those parts that in the end make our ARR increase. But there we see it as the most important factor.

Very exciting. And then when you go down to the markets, we see that a lot is happening in Holland. Could you update us on what is happening there? Yes,

Holland, there we grow the fastest, out of Sweden. And in Holland they put a lot of effort on Dosell. And a few weeks ago there was a big fair in Holland where our distributor had a big fair. And it was very popular to visit our fair there. And we notice that many who have started to think about medicine robots, but also those who have worked with other types of medicine robots, come here and are really impressed by how Dosell works in the Dutch market. So they got a lot of leads from health companies that are interested in introducing Dosell. So it will be fun to see what it will give in the number of units out there and in the end the number of dispensaries where we help people take care of their medicine.

Very exciting. And apart from Holland, what would you like to share with us from other future goals that lie ahead of us in IIC?

We are very focused on Sweden. We have many municipalities that we have been working with in the monthly letter. Many municipalities that have been working all the time, as long as they are still in a small volume per municipality. Of course, the focus is on getting each municipality to bring in more. We see that municipalities are very happy so far. So there is work to make sure that they find the right keys to implement in a larger scale. And then it is to continue with more municipalities in Sweden. And then we are also involved in a more general large-scale operation in Sweden, where it is signaled that there will be a large operation called ADDA around medicine robots. There we are in early stages to ensure that we will hopefully be involved in that operation. And it will be a big difference in how municipalities in Sweden can call from the ADDA agreement to bring in the medicine robots. Then we look at Spain. There they have launched. We hope that it will start. It is important to know that there is no other medicine robot on the market. It is a consumer product, so it takes some time to change the behavior and get everyone to understand that there is a product. They invest a lot every month in marketing, so it will give effect in the future. And then beyond that, we have the dialogue with several upcoming partners, because we want to enter more markets.

Great. Thank you Anders. We notice that there is still a lot to prove, but we have never had better conditions than we have right now. So it will be very interesting to continue. And thanks to all the shareholders who are part of our journey. Thank you very much.