iZafe Group AB (publ)

Hello and welcome to ISEF Group's quarter interview with me, Marius Sandberg, and Anders Tjegeström. Hi Anders. Hello there, Marius. Let's jump straight into the questions. During the quarter, the Dozell Frame Agreement was issued for Adda, which was very big for us. Can you give us an insight into what that means for us and what it looks like? Yes, a little background.

ADDA, in case you don't know what it means, is an organisation under FHR. What they do is simplify for the municipalities to introduce different types of products. In this case, they have now made Sweden's first national deal on medical devices, which is just a sign that a lot is starting to happen on the Swedish market, where medical devices are one of the products that you need to introduce to digitalise healthcare. And we are of course very proud and happy that we are a part of that. And that agreement, we have known for the last 14 months that this will happen. We have met many municipalities out there and there are many municipalities that have shown interest in calling out when this is done. We have already started to get messages from municipalities that they want to cancel it. How quickly it goes from that they want to call to that we actually see that we have put out units and can start to factor for it. But overall, we see, of course, great potential. And as ADDA goes out themselves, they predict a yearly value of around 200 million connected to this agreement. So we will follow during the year and see how quickly we see that we get units out on the ADDA agreement.

Du nämnde lite det Anders att vi har varit i kontakt med flera kommuner och att de börjar visa intresse. Hur ser det ut för kommunerna när de väl avropar och hur mycket enklare blir det för dem?

Så som det går till när de gör det är att de egentligen gör en förfrågan och sen går det ut till fler leverantörer som är med på den här. Och sen så får man lämna in att man är intresserad att få ta del av den förfrågan den kommunen har ställt. And then we leave it in, and then it is the municipality that makes an evaluation, either related to price or what functions you have, that makes it a supplier that is chosen. Exactly how everything happens is still too early to say, because no one has gone all the way so far, but we have received inquiries from several and we have left answers to several, but we do not yet know how fast the process looks.

So it will be a little later effect with the result numbers, you mean?

Yes, that's what... If we look at Q1 in Sweden, we haven't really increased anything in sales. It's a lot about that many of the deals that we have planned will be called out via Adda. And as we have also gone out during the quarter, there are several deals that we have started to deliver units here in Q1, but that will start to generate revenue first in Q2. Q1 has been an incredibly exciting year, or an exciting period, where we have started many more businesses. We have started to get a lot of units in Sweden. We have started to get inquiries from ABDA, but it will take a little time before we see it on the upcoming revenue.

Yes, exactly. And in relation to the figures, during the quarter, we have also taken in 20 million in the latest emission. Can you explain a little bit what the money is for and how you will use it in the future?

Yes, this capital has given us an incredible opportunity to take advantage of the business opportunities that exist. We see that in order to be able to In order to be part of ADDA, we need to be a big organization in Sweden to implement, follow up, and also be out there and meet the municipalities. We've put out announcements to strengthen the team in Sweden, and we already have two that start here in May. And then we've also strengthened the organization in Holland, where we sell completely ourselves, where we've put in one country manager on site. And then we have another seller slash implementer that starts here in May. So overall, we have four in total, thanks to this, that will start. One has started and three start in May. And this is a decisive factor for us to be able to take care of all these businesses that are out there and also ensure customer satisfaction with all the existing deliveries that we have made. We have to follow up the customers and municipalities that we have to ensure that they are both satisfied with the deliveries that have been made, but also that they want to develop and bring in even more products. Och sen under året så kommer vi även försöka hitta några till. Så vår tanke är väl att vi ska växa till att bli sju till under året, varav fyra är redan klara.

Ja, och där är också värt att nämna att hela delen av emissionen är inte inne på kontot, vilket syns i kvartalsrapporten, som fortfarande är en fodran på de sista investerarna.

Och det är totalt 7,9 miljoner som tillkommer här nu i maj, så att man vet om att kassan förstärks här i maj med dem. It's great.

During the quarter, Anders, we have also seen that we have become ISO 27001 certified, as well as we have developed the product and technology that we have. What effect does it have on the business and can you give us some insight into which parts it is?

It's a big deal. We mentioned the product, so we are already working with incredible security connected to the regulatory and that we drive security. And then it is quite natural, because we have worked according to ISO 7001, but we have not been certified, so now we have also done the certification. This is to show credibility and security to both our municipalities and customers to know that we are doing our utmost to have a safe and all the technical parts around the product, and that we live up to it. So that's a big factor. Then, if we look at what we've done more in the quarter, it's that we've launched this modular system. And it's a lot about that we now go from just having the medical machine, if you will, that gives the right medicine at the right time, To also have a screen, to have more functions. We are unique in being able to have a screen that can either be integrated into the unit or can be separated and be in another room. Which means that if you have, for example, the function video conversation, which means that when it's time to take medicine, a alarm goes off to the staff. Now the user is going to talk to the medicine. When they get the alarm, they call up the video call. The user answers on their screen and then you might rather want to sit comfortably in your armchair than stand hanging from the medical machine, depending on where it is. When you answer that, then the staff with our app can press the medicine and then you can take the medicine while you have the video call. Det här möjliggör på sikt också andra funktioner i skärmen som vi märker redan nu efterfrågas från våra kunder. Så det här är en otrolig möjlighet för att skapa ännu mer intäktsströmmar sen på sikt.

Intressant. Du var lite tidigare inne på att vi har stärkt upp verksamheten i Holland. Kan du ge lite insikter på hur status ser ut i Holland och kring det här med nyproduktion av enheter och hur de kommer användas i Holland?

Ja, vi nämnde i ett månadsbrev att vi kommer göra en uppdaterad funktion i nästa produktion som då blivit lite försenad. Den kommer levererat, den första D-leveransen kommer levererat med tre enheter här mot slutet av juni. De kommer gå direkt mot Holland för att få ut de enheter som redan är backloggade och efterfrågade. Det som det handlar om är att om man tittar på själva vår läkemedelsautomat bygger på att man laddar The cell with a dose roll that is already pre-packed. And on the Dutch market there are dose bags that have a transparent bag. And we have noticed that the sensor does not 100% know if it has taken when you have a transparent bag. Which means that in the new production we have an updated sensor that ensures reliability on transparent bags as well. This is only on the Dutch market for as long as we have transparent bags, when we don't have it in Sweden or actually in any country in the north. Hence, there are a lot of customers in the Netherlands who have transparent bags waiting for this delivery. Värt att nämna till det är att det finns ungefär 45 olika dospostlayouts i holländska marknaden. Det här påverkar inte alla i Holland utan det påverkar bara de som har transparenta påsar och inte de som har vit bakgrund med svart text på vilket är standard för att man enkelt ska kunna läsa vilken medicin det faktiskt är i dosposten.

Okay, so about 300 units are expected in June?

Yes, and the production we have now is about producing 1,500 units. So that's 300 units in June, just to quickly get the fastest demand for the products that are backlogged. And then we will produce the rest in the running during July, August and September to successfully distribute them in the Netherlands. These will also be a standard for all markets, but it is especially the Netherlands that it is most urgent to get rid of.

And where the existing ones work very well on the other markets, like the white bags. So it goes forward with Adda, the Netherlands has a big pipe and is waiting for the new production. And how do you see the remaining countries in Europe where we have social partners?

Vi har fått igång första kommunerna i Norge med den upphandling vi hade där. Vi kommer fortsätta stärka samarbetet med vår partner i Norge och MSU över möjligheterna generellt i Norge. Vi har spännande diskussioner med möjligheter i Finland med vår partner L-Secure där. Vi har även bra dialoger med både Thank you very much. Thank you. Thank you. this quarter has not increased our RR from the last year, we still write that we will be able to evaluate the forecast. And we will also, during the year, when we see how fast the ABDA process is going and how many municipalities actually start to call for it and how soon we can start to see income from it, can see if we can possibly revide it. But it's too late to say those parts now, because we actually need a key word linked to that Thank you very much, Anders.

Thank you.