iZafe Group AB (publ)

We have had an incredibly exciting quarter and it will be incredibly fun to present to both existing shareholders and new shareholders about the quarter and also where we are in the current situation. Vi ser ju ganska starkt att vår affärsmodell fungerar ganska bra och det skulle vara intressant att du förklarar för de nya aktieägnarna just hur modellen ser ut och att vi nu går över mot en mer återkommande licenssäkerhetsbas istället för mer hårdvaruförsäljning. Kan du ge lite inblick i det Anders om hur det fungerar?

It's great to have so many new shareholders after the summer. We're entering a good momentum. You have to back up a bit. Indirect Q3 is a result of everything we've done during the year. Q3 also includes a lot of calmer months in the summer. Vi stängde ju året på lite mer än en miljon i ARR och vi har ju gått ut här med prognoser att vi ska stänga med 10 miljoner i ARR och vi är redan nu när vi går in i Q4 på 7 miljoner i ARR och vi ser att vi har en stadig tillväxt på att vi ökar ARR med runt en miljon och kanske lite till per månad. Så vi går in i en bra momentumfas och det här har vi nu byggt upp under längre tid. Vi har utvecklat och testat produkten som då är en läkemedelsrobot som ska hjälpa personen att ta rätt medicin i rätt tid under lång tid och det har varit kämpigt att få ut den men vi under förra året fick ut många hårdvaruförsändning ut till våra partners och vi har under året börjat få ut dem till kunderna och det är det vi ser att vi stadigt växer med varje månad och det är det någonstans som är nyckeln med vår affärsmodell att vi dels hjälper personen få rätt medicin i rätt tid och det som bygger en återkommande licensintäkt likt ett SAS-modell So that's the phase we're entering right now. As I said, Q3 involves many parts that are calm with the semesters. But we have started off pretty well, or very well, after the semesters. We're entering a good momentum and Q4 will be our most important quarter to close this year in the best way possible.

Of course, and we have a lot of markets we're in right now, and above all, the most exciting market right now is the Netherlands, where we have, in the last quarter, made a contract. Could you give us an insight into how the contract fits into our business model and how it will affect us now in reality?

If you look at the most important parts of the doselle, it is based on getting your medicine on a dose roll. And that market is about 300,000 people here in Sweden. But if we look at the Netherlands, it is around 600,000 people who get their medicine in a dose bag. And there is also... The health care models are completely different than in Sweden. It's a bit more insurance-driven where you get cost protection for large parts of introducing digital aids like a medicine robot. So the market is growing incredibly much faster in the Netherlands and is also the largest market when you look at dosage bags in Europe. So it is very important that we have control of that market, because if we have it, we will put it somewhere in the standard and the cheap medicine robot that comes was the largest in Europe. So there is a lot of focus in Holland and it's very cool that we were able to do this acquisition. We got very good new colleagues so we don't grow with so many. There are still very few. There are three in Holland plus a few consultants. We are seven here in Sweden. So now we are ten employees of Men vi har ju otrolig potential här framåt så att i takt med att vi växer så kommer vi behöva gasa ännu mer och verkligen se till att vi tar en stor andel av den marknad som både finns i Åland men som också är i en tillväxtfas så att vi ska se till att ta andel av det.

That's right. And with the acquisition, we also get the entire share and we decide a little more on the market so that it gives us a little more certainty that we see that everything happens in the way that you want it to happen. And you also talk a lot about Sweden, Anders, and there we see that Brullaport is doing pretty well. And you mention that your pilot goes from pilot to drift. And what does the potential look like on the Swedish market and how does the Swedish market look like?

We have during this year, when we have gotten so good attraction on Dozell, started to call all the municipalities and we see that there is a very large interest and there are many municipalities that we have had meetings with and many that we have already started to get started with and many that we already want to get started. And we also have now the exciting thing that there will be the ADDA trial, which is Sweden's first national trial on pharmaceutical automations. It also signals that there is a lot going on on the market in general about pharmaceutical automations. And of course, we will make sure that we take a large part of that. We will have more actors who will come to this framework agreement. And then the job begins to meet all the municipalities and make sure that they call out our product as much as possible. It is an incredible potential and we feel that we have done the great job during the year to make sure that all municipalities have koll på dosellen och bet om när det väl börjar avropas från ADD-avtalet?

Ja, helt klart en viktig faktor i hela egentligen Europa och framförallt i Sverige och att vi nu kommer och att det blir en standard om att ha en läkemedelrobot. Jag håller med dig helt Anders där. And I think it's interesting to see a little bit in the report that we're starting to talk a little bit more about our other subsidiary, Piloxa, where Dozell is in the center with that we are now going to focus on Piloxa in 2026. Could we get an insight into Piloxa for our new shareholders and explain a little bit what that means?

Absolutely, and if we go back to the fact that ISAFE as a holding company's focus is to help people take the right medicine at the right time with different digital aids and products. And Dosell is based on getting the medicine in a dosage bag, while Piloxa is based on a SaaS solution that can be an app that is standalone and a patient support program, but also towards healthcare companies that we work with today that can help with these, both patient support programs and clinical studies. And then we have a smart pillbox, which is an upgrade of Dossett, where you get help sorting the medicines in this. And then when it's time to take the medicine, it lights up the fact that you can take the medicine from it. And then when you've taken the medicine, you get the important data, which builds on everything we do, when the person was going to take the medicine and when they actually took the medicine. And if you don't take the medicine in time, you can also give a alarm or information reminder until you've taken your medicine. Over the past two years, we have focused on Docelle to be able to build up the cash flow properly, because we have seen a lot of potential. We also see a lot of potential in Peloxa, but because we have been so few for so long, we have had to focus. Now, when we start to get the cash flows up, we can start to make sure that we also get PELOXA started. And that's also a big advantage with us building up partners in different parts of Europe, because they also see great interest in getting the PELOXA parts in. So that during the next year, when we start to get more cash flows, we will focus on hiring someone who runs that business, and then the more success we have there, the more it will continue to grow.

Of course, it's a strong complement to Dozell on the market and with our customers and the like. We see that we will work very hard with Pidoxa in 2026. But how do you see the further development of Dozell, technically and on different markets? How does Dozell stand around Europe, above all?

The Docelle that the nurses are using today, the patients who use it are super happy. What they will focus even more on is everything around them, that is, those who also have a very important importance in the experience of the Docelle, that is, the people who work with it and the business managers. So there will be much more focus on the systems around it, reports, statistics, integrations. Today we already have 10 integrations to different platforms to simplify the introduction and exo So that it becomes a part of how the business works today. So a lot of focus will be on that and then around sharing around the docelle with the screen that I bring up so that you can apply to the docelle, make more parts of it. This allows other types of patient groups we can get into as well. And it can also make it possible for us to increase our ARP, that is, our recurring license income, to the existing customers as well.

Yes, it's very interesting because when you go into the financial figures, we see that the result compared to the previous period is lower. And that's because we have a recurring license income instead of hardware sales. We also see that the result is stronger. Could you explain a little bit, Anders, about the cost structure and optimization we have done during these previous periods?

It's mostly about that during this period, even though we're growing now, and that we've increased our license income so much every month, so we still have the same staff, the same costs, and it's the license income that we have a very high margin on, while in sales we don't have that much margin, but it gives a high turnover, but not as much as the result. So now when it starts to go over to the business that we have built up, to have a license detector, it will improve and that is what in the long run makes it possible to reach cash flow responsiveness and then after that it starts to give very good results as well.

And how do we look forward? We are today in some markets in Europe and how should we continue to increase in Europe and how should we move forward in connection with this?

The important part will be with Docelle, to continue to look at which dosage market is the largest. The Nordic is the largest, and then Holland. We have our partner in Spain that focuses a lot today on B2C, but will also focus on B2B. They have grown a lot this year around their own business, which is that they Our pharmacy, to take in the machines that make the pharmacy able to give medicine on a dose bag. And the company that we work as a partner with, and is also one of our major shareholders, has Spain, Portugal, France and now even Italy. And they work with over 1,600 pharmacies, so there is a business model that makes it possible for them to get this out to all pharmacies. And what is a challenge, however, is that pharmaceutical automations do not exist in these markets today. It is about getting the message out and starting the momentum where it becomes word of mouth, where you understand how much benefit this really does. So it will take some time, but when it starts to spread, it can go very fast. Sweden will continue to grow and we also see great potential in Norway and Finland. In the long run, we also want to go into Denmark, but we still need to focus on the countries we see the greatest potential in.

And it's very interesting that you mention that. We have ADDA here in Sweden and they have not come as far to the southern part of Europe. But you also mention BTC, which is quite interesting. Docelle also works for end consumers on the private market. Could you mention a little bit, Anders, what is the competition distribution with Docelle for our new shareholders and how does Docelle respond to competitors in Europe?

As far as we know, the only drug-based food that is easy to buy as an off-the-shelf product, and you can get started with it yourself, and it's very easy to charge the medicine and get the alarm to the relatives, and you can follow up. So there we have an incredible potential forward and we will, as I said, now in Spain with our partner focus there, but we will also in the long run focus on other markets with our consumer product and we see a big win in being alone there so far.

So you would say that simplicity is really the key to Rossell, that it is very easy to use?

Very easy, simple, makes the main purpose to ensure that the person has the right medicine at the right time, simply.

Very interesting. And when you read the CEO word there, I get a very exciting part that is, we are just the beginning of the journey, which I think is very exciting. And could you explain a little bit to the shareholders, what does it mean? And explain a little bit about the future of iSafe Group, which we still see in front of us, you and me.

This has been the toughest challenge to get the product to where it is today, where there are partners who believe in it, invest in it, it grows, the customers are happy, we get even Google reviews of how this helps people. It's an incredible feeling that you really contribute to making people feel healthier and feel better instead of taking medicine. It has such a big impact. Så det är nu vi ser effekten av allt det här och det är där det är spännande att vi verkligen har börjat den här resan där det kommer och vi kan hjälpa ännu fler att ta rätt med sin nya tid.

Jag håller med. Så stort tack Anders och stort tack till alla våra aktieägare och andra intressenter och tack för att du är med på denna resa. Tack.