RaySearch Laboratories AB (publ)

Hello and welcome to the presentation of Research Interim Report for the second quarter of 2024. My name is Eva Nelson and I will be the moderator here today. Joining us in today's call is Johan Löf, Research Founder and CEO, and Annika Blundell-Henriksson, CFO. Johan and Annika will give you a short summary of the quarter, including the financials, and after that we open up for questions, which you can ask either orally or in writing. I also want to remind you that this session is recorded and you can find it through the same link as it used for this teams meeting and on research website. And with that, I hand over to you, Johan, please go ahead.

Thank you, Eva. I would also like to welcome all of you to today's webcast. I'm happy to report that our sales for the second quarter of the year were our highest ever for a quarter. 319 million Swedish crowns, which is up 33% compared to the same period in 2023. Our operating profit was 79 million Swedish crowns, corresponding to an operating margin of 25%. The improved margin was mainly due to increased license revenue, which amounted to 164 million. Of this, 37 million was generated from prepaid licenses sale to our long-standing collaboration partner MedAustron in Austria. Order intake for the quarter was 290 million, compared to 239 million last year. Cash flow from operations were 155 million, and cash and cash equivalents were 435 million. To summarize, we are keeping up our momentum, and our opportunities for continued growth are good. Raysearch continues to have a strong financial position, stable cash flow and no loans. The New York Proton Center has been our customer since 2022, when they bought their first RayStation licenses. Today, two years later, I'm pleased to announce that after a thorough evaluation, the center has decided to expand its use so that going forward, RayStation will be useful for the majority of the center's treatment planning. In June, RayStation was used for the world's first clinical treatment with OxRay, which is Hitachi's new and groundbreaking linear accelerator. The treatment machine was developed in partnership with Kyoto University Hospital, and integrated with RayStation through close collaboration between Hitachi and us. Oxway has new treatment possibilities with extremely high precision and flexibility, and I really look forward to continuing this exciting collaboration with our longstanding partner Hitachi. The latest version of RayCare was launched in late May, and as we have communicated earlier, this version is already certified to be interoperable with all linear accelerators in the Varian TrueBeam family. In technical evaluations of different oncology information systems, Raycare has received positive reviews, and in combination with the further improved functionality in the new version, we see that Raycare is now a very attractive alternative to other systems. And this has also been confirmed by both new and existing customers. For example, when we presented Reker, PTCOG and WPM during the summer. Okay, so now let's take a closer look at the financials. Annika, please go ahead.

Thank you, Johan. We present here in the second quarter our order increase, which increased by 21%, from 239 million to 290 million. The order intake for licenses increased by 42%, from 94 to 134 million. And the order intake for support came pretty much in line with the same period of last year at 118 million. Our net sales increased by 33%, amounting to 390 million compared to 239 million in Q2 of last year. The exchange rate impact on net sales was small in the quarter. Adjusting for the exchange rates, the net sales increased by 32%. Licensed sales amounted to 164 million in the quarter, of which 37 million was generated from a delivery to MedAustron in Austria in the period. The support revenue amounted to 150 million compared to last year's 102 million, corresponding to an increase of 13%. The strong sales in the quarter resulted in operating profit amounting to 79 million and an operating margin of 25%, to be compared to last year's result of 18 million and a margin of 8%. This is the eighth consecutive quarter with a positive operating profit for research. The good result in the period and a positive impact from working capital explains and generated cash flow from operation amounted to 155 million. An improvement of 87 million from last year, 67 million. Cash at the end of the period amounted to 435 million. For the six-month period of 2024, the order intake amounted to 529 million, an increase by 19% from last year's 446 million. The order intake for licensing increased by 30% to 247 million, and the order intake for support increased by 11% to 199 million from last year's 179. Raised such net sales amounted to 576 million and increased by 23% from last year's 470 million. The sales of licenses and support amounted to 282 million and 221 million respectively. The strong sales for the six months period of 2024 resulted in an operating profit amounting to 121 million compared to last year's 42 million. And the operating margin improved for this six months period from last year's 9% to 22%. Cash flow from operations for the period improved compared to the same period of last year from 221 million to 322 million. On this graph, we are looking at research development of the operating result quarter by quarter since Q2 of 2022. And as you can see, it shows a steady improvement, both in absolute amount as an operating margin with the last quarter amounted to 79 million and a 25% operating margin. The next slide is presenting racist development of net sales in a 12 months perspective, where we end the past 12 months period at 1,129 million, ending June. The number shows a steady growth of total net sales, as well as an increase in support revenue, a support revenue which amounts to 40% of the last 12 months net sales. And on this slide, we present research development, net sales and operating results in the 12 months perspective since Q2 of 2022. The development of rolling 12 months net sales has grown from 693 million in the second quarter 2022 to now a 1,129 million end of June 2024. Their operating result has improved from a negative 33 million for the 12 months preceding Q2 2022 to a positive 198 million for the past 12 months ending June 2024. So we end up here with a backlog of 1,791 million of which 507 million is expected to generate net sales in the following 12 months period to come. Back to you, Johan.