Mentice AB (publ)

Good morning, everyone. My name is Richard Engberg, and I'm an equity research analyst here at Carnegie Investment Bank. With me, I am Frans Fenker, CEO of Mentis, and Ulrika Dross, CFO of Mentis. We're going to present the first quarter. Frans and Ulrika, welcome. Thank you, Richard. Thanks for having us.

So the scene is yours. Very good. Thank you, Richard, for us being here. What we have today is the quarterly results for the first quarter, which we are happy to present to you and all of you. So what I have is four topics for today. First of all, the highlights and also the interview, basically overview presented by me, the financial results by Ulrika Drots, concluding remarks by me, and then we go towards questions and answers. Overall, if we look at the quarterly summary, what we see is that we had solid revenue growth year over year, where the net sales was up by close to 20%. What we saw is that the EBITDA was negatively impacted by one-offs. That was due to restructuring, but also due to currency effects. The revenue came from all three regions, so we were positive from all three regions, specifically North America from an absolute standpoint. From a percentage point also, we saw significant growth by APAC, although from a lower base. What we are doing is currently addressing the weak developments in the healthcare systems market by addressing also our value proposition. So really the growth also from an order intake came from the medical device industry. Overall order intake increased by 15% year over year and it signaled also a strong interest for our Mentus products going forward. Now, if you then look at the business development activities. So, first of all, there are activities, and we have put activities in place in order to streamline the organization to make sure that we're really focused towards the sales areas where we're driven, towards medical device industry as also the healthcare systems markets. We are consolidating the production currently, what we had in Stony Brook, towards the Denver, Colorado office, and make sure that we are going to produce in one location our physical simulation portfolio for the globe. We have continued focus also from the integration from acquisitions when it comes towards Anquiras, as also indicated towards physical simulation. And especially the latter part, we saw continuous development and strong order intake also towards that portfolio. There's progress towards the next generation neurovascular simulation platform where it's linked or phased towards NVConnect and Ankyras. We have, especially for Ankyras, we have approval in Latin America and Brazil in order to start selling and we are about to get good news also from the United States in order to have our next release also available for the US. So in overall, the initial steps are being taken to improve and strengthen our value proposition, not only in the medical device industry market, but especially also in the healthcare systems market. And we start focusing there clearly also on the neurovascular market in order to make an impact there. So with that, I want to give it over to Ricard Roos, Arisit, for the financial results and details.

Thank you, Frans. So the Q1 highlights, net sales increase with 19.5% to 54 million Swedish crowns and a 15% increase in order intake. The main impact comes from the region Americas and the region APAC, and we will come back to that in a short while. EBTA level minus 19 million, and as Frans mentioned, this is affected by one of costs of 3.5 million related to the reorganization. and 5 million as an effect of the strengthening corona, which gives a negative impact on our effects. The order book, 180 million, with 75 million scheduled for 2025. And when comparing this to the first quarter 2024, I just want to mention what we... said at the Q4 report that at the end of last year, we reviewed our order book and we excluded some orders where we have a very unclear delivery time. So that needs to be taken into account when you compare year over year. The Q1 has an operational cash flow that is negative on $3.3 million. And as Frances mentioned, solid sales for MDI, an increase of almost 26% during the first quarter. And as we also see, the somewhat weaker performance of the healthcare systems, HCS. And that is, as Frances already mentioned, being addressed with actions from us. So we will see a different development going forward. Looking at net sales from a region perspective, all regions exceeded last year, both on a quarterly and on a rolling 12 months perspective. So the Americas region still represents the largest region and had a growth in net sales with 17% for the first quarter. And the EMEA region increased with 4% for the first quarter. And this is mostly related to the medical device industry. And looking at the performance on a rolling 12-month perspective, it's a 12% development. The APEC region has, from a percentage point of view, a really good increase of 88%. And looking at the actual numbers, we have an increase of 4 million in sales. And looking at the rolling 12 months perspective, it's still an impressive increase of 49% in development. I should comment on the recurring revenue from software. We see an increase during the first quarter and we also see the increase on a rolling 12 months basis. And finally, a comment on the water intake for the quarter, 15% above last year, due to the increase in the medical device industry. And again, we see the somewhat weaker performance in the healthcare systems part. Again, that will be addressed going forward.