Mentice AB (publ)

Good morning, everyone. My name is Richard Engberg, and I'm an equity research analyst here at D&B Carnegie. With me, I have Frans Venkert, CEO of Mentes, and Ulrika Drots, CFO of Mentes, to present the third quarter. So, the scene is yours.

Welcome. Thank you, Richard. Thank you for having us here. We are proud to share the third quarter results. I'm here together, of course, with Ulrika Drots, our CFO. And so we're going to present not only the highlights and the overview, but also the financial results as also some concluding remarks and also question and answers afterwards. If we look at the third quarter, actually we see quite a strong performance. And it's really our strategic actions are starting to yield results. As you know, we did quite a change also in reduction of operating expenses during the third quarter, executed in the third quarter. And so that is also really driving and bearing the fruits that we see. So overall, we see a net sales of 71 million SAC. That is more than 22% up year over year, quarter over quarter. as also it is an organic growth of 30% offset by some foreign exchange. And we're proud of that result, what we see. On the rolling 12 months, we recovered and also our sales from 275 million SEC, and that is more or less in line also with the period of last year. If we look at the order intake, what we see is that it is slightly down 2% year over year. We're now at 57.6 million SEC. That is basically a little bit down. If you look at the foreign exchange, we've also impacted this. Overall, it would be effectively flat. This is also due to the fact that there were two larger orders that we could not get into the third quarter, and they actually just moved into the fourth quarter, and more on that later as well, on the sentiment, what we see in the market also for the fourth quarter. But it's similar to also what we saw in the third quarter. But unfortunately, we could not get those orders in, and that meant that we have them for the fourth quarter. The EBITDA margin improved towards 10.7% compared to minus 10.8% in the previous quarter, 12 months ago, and that shows the positive impact also of the efficiency measures that we implemented. And this is also something which we are proud of, but also where we have relentless focus on a cost perspective to making sure that when we drive now also revenues, that we get an amplification effect towards the EBITDA level but also EBIT level going forward. The growth that we saw is primarily coming from the medical device industry side, specifically in North America, but also the EMEA side. APAC remains more or less flat, as I said, when it comes to MDI. And we're addressing this also by now focusing more growth also and getting basically the propositions what we bring in America also to aid back to see that we can grow there as well. But strong activity in specifically the Americas where we saw it growing significantly from a medical device industry standpoint. if you look at the healthcare segment yeah that is uh that was not so strong and although it's a smaller segment for our business still what we see is that quite a bit of hospitals have budget constraints in order to go towards our solutions and we're currently addressing that also from a proposition standpoint to making sure that we turn this around and receive growth when the market picks up again So in all, if I see the business highlights also for Mantis in the third quarter, it's first of all our strategic workforce alignment is bearing its fruits. So we see the 25 million SEC on an annual basis in cost reduction. We see that being implemented and effectively we see also the results in our EBITDA levels going forward. We did a rights issue. We did that also in Q3. We received approximately 32 million SEC also for our cash position. And what you see is that we were even oversubscribed significantly for this rights issue and that the proceeds are being allocated within the company, first on commercial innovation, but also product innovations and making sure that we have a solid foundation from a cash standpoint. then the third highlight is that we finalized in q3 the product development efforts for a portable virtual simulation system and that's what we introduced recently at a cardiac show which is the tct in san francisco and it was well received this is a portable virtual simulation system which allows also our medical device industry companies to have their representatives travel with our solutions. And that helps. They can put it in a backpack, travel on a plane with it, and they can show it then to physicians, but also care providers who need simulation capabilities. And it's a big hit. As I said, we see quite a bit of interest from the larger medical device industry companies towards this solution. Now, increasing the market activity, what we see in Q3, as I stated also specifically for the medical device industry, And there is no reason to believe that this is not going to continue, also what we currently see for Q4. So really, that bodes well. Signed and renewed MSAs, so master sales agreements that we put in place. And we also resigned one with one of the leading medical device industry companies. And that also shows the confidence that the companies have in the leading solutions for Mentes. And so we're proud of bringing that forward and helping patients and care providers in order to treat them. With that, I want to hand it over to Ulrike Trotsch, who gives some financial highlights and results for Q3.

Thank you, Franz. And yes, as you can see, the highlights for the third quarter, a strong quarter on net sales and EBITDA level. 71 million in net sales and organic growth of 30%, as Franz mentioned. And the main impact year over year is from the EMEA region with over 50% and 33% from the Americas region. Order intake more or less on the same level as a small growth year over year and being affected by FX as all our business is. EBTA, a really improvement compared to the third quarter 2024, where we had a result of minus six million. So this is obviously an effect of the reduced cost base and the increased revenues. Order book on 9 to 7 million, where of the 37 million are scheduled for 2025. And operational cash flow minus almost 11 million. This is mainly due to the change in working capital and as an effect of the increased revenue during the quarter. For those of you who have been following our earnings call, you know that we like to look at our performance and development on a rolling 12-month basis. And why is that? It's because we have a variability between the quarters. And as Frans mentioned, we saw this again early Q4 with large order coming in. So looking on a rolling 12-month perspective, this gives us a better understanding of our performance. And the strong Q3 takes us back to a rolling 12-month level, as we've seen previously, on net sales. And that also goes for the OPEX, where the cut in the cost base takes us back to rolling 12-month OPEX in line with previous years as well. And sorry, looking at net sales, EMA drives a strong quarter within MDI. And that means that if you look at the right hand side, you can see the graphs with the rolling 12 months performance within MDI and the HCS business areas in the different regions. And you can clearly see that the EMEA increased with close to 53% in the current quarter, and that gives an organic growth of almost 26%, or a bit above 26%. And the region Americas, which is our biggest region, grew with 33% during the quarter, and that is a stable increase of 2%. And just a reminder that all our invoicing is done in mainly US dollars or euros, which means that all our revenues are affected by FX, has been and will be going forward. Some comments about the OPEX. The decrease in OPEX during the third quarter is an effect of the strategic realignment decided and announced in Q2. It has been implemented during Q3, as Frans also mentioned, and we will continue to see the effect of this going forward over the coming months. And that means that we are in line with Q3 2024 and on a rolling 12-month basis, we are at the same level. And as Franz mentioned, this is tight cost control and we are cost cautious and will be cost cautious going forward. Order intake. You see the same kind of pattern as for net sales. Order intake growing in MDI and a weaker performance in HCS. And the decline in HCS is related to all the different regions. And finally, a comment on the order book, where we can see the 97 million in order book, whereof we have the 37 million for the fourth quarter. Over to you, Frans.