RaySearch Laboratories AB (publ)

Hello, and welcome to the presentation of the Research Interim Report for the third quarter of 2024. My name is Eva Nelson, and I will be the moderator here today. And joining us in today's call is, as always, Johan Löf, Research Founder and CEO, and also Annika Blondohi-Annexon, the Interim CFO. Next slide, please. Johan and Annika will give you a short summary of the quarter first, including the financials, and after that we open up for questions. And you can ask your question either orally or in writing. And 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 also on the Research website. So 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 announce that our sales for the third quarter were our highest ever. For the third quarter, 293 million Swedish crowns, which is up by 19% compared with the same period in 2023. Operating profit was 62 million, corresponding to an operating margin of 21%. The improved margin was mainly driven by increased license revenue, which amounted to 133 million Swedish crowns, Order intake for the third quarter was 253 million and we had a cash flow from operations of 61 million. To summarize, we're keeping up our momentum and the opportunities for continued growth look promising. Research has a strong financial position with cash and cash equivalents of 425 million Swedish crowns, stable cash flow and no loans. In the beginning of September, Iridium Network in Belgium treated their first patient using RayCare together with the Varian TrueBeam linear accelerator. This marks an important milestone since it greatly increases the market potential for RayCare, which now includes the approximately 4,000 TrueBeam machines in use at radiotherapy centers worldwide. In August, we announced Connecticat Proton Therapy Center as yet another RayCare customer. The center plans to create clinic-specific workflows and aim at taking RayCare in clinical use in 2026 when the center opens. RayCare will be used together with RayStation that they purchased last year. Revenue from the RayCare order will be recognized in 2025. Okay, so now let's take a closer look at the financials. Annika, please go ahead.

Thank you, Johan. In the third quarter of 2024, our order intake increased by 5% from 241 million to 253 million. The order intake for licenses increased by 5% from 113 million to 118 million. And the order intake for support decreased by 9% from 102 million to 93 million compared to the same period of last year. Our net sales increased by 16%, amounting to 293 million compared to 253 million in Q3 of last year. Adjusted for the exchange impact, the net sales increased by 17%. The sales of licenses amounted to 133 million, an increase by 36% from last year's 98 million. The support revenue amounted to 120 million compared to last year's 107 million, corresponding to an increase of 12%. The operating expenses for the period amounted to 203 million compared to 193 in the same period of last year, corresponding to an increase of 5%. It should be noted that the operating expenses is categorized differently in the consolidated statement profit and loss in the year 2024 compared to 2023. In research interim report on page six, a separate table displays the differences between the two years. The strong sales in the quarter resulted in an operating profit amounted to 62 million, an operating margin of 21.1%, to be compared to last year's operating profit of 29 million and a margin of 11.3%. This has raised nine consecutive quarters with a positive operating profit. The cash flow from operation amounted to 60 million in the quarter compared to last year's 124 million, a decrease which is explained by the change in operating liabilities in the working capital. The change in operating liabilities also explains the cash flow for the period amounted to 1.7 million compared to 64 million in the same period of last year. For the first nine months of 2024, the order intake amounted to 782 million, an increase by 14% from last year's 686 million. The order intake for licenses increased by 21% to 364 million. And last year, the amount was 302 million. And the order intake for support increased by 4% from 291 million in 2023 to 291 in 2024 from last year's 281. Research net sales amounted to 869 million and increased by 20% from last year's 723. The sales of licenses amounted to 450 and increased by 37% and support increased by 16% to 642 million. The strong sales for the first nine months of 2024 resulted in an operating profit amounted to 187 million compared to last year's 71 million. and operating margin improved to 21.5% from last year's 9.8%. Cash flow from operations for the period January to September improved to 382 million compared to last year's 340 million. The main driver to the improvement is the improved profit before tax. Cash and bank at the end of the period amounted to 425 million, a significant increase from the cash at the beginning of the year, which amounted to 344 million. Looking at Razor's development of the operating result quarter by quarter since Q4 2022, it shows a steady growth and improvement in absolute amount well as in operating margin with the last quarter amounted to 62 million and a 21 operating margin on this slide we present races development of net sales and operating result in a 12 months perspective since q3 of 2022 the development of the rolling 12 months net sales has grown from 768 million to 1,169,000,000 and of September 2024. The operating result improved from 5,000,000 in Q3 2023 in a rolling 12 months perspective. And now we are reporting 231,000,000 ending September 2024. Looking at research development of net sales in a 12 months perspective, we have close to 1.2 billion at the end of the last 12 months period. The number shows a steady growth as well as increasing support revenue, which amounts to 40% of the last 12 months net sales. So we end the period with a backlog of 1.7 billion, of which 471 million is expected to generate in net sales