RaySearch Laboratories AB (publ)

Hello and welcome to the presentation of research year end report for 2024. My name is Eva Nelson and I will be the moderator here today. Joining us in today's call is Johan Lööf, research founder and CEO, and also Nina Glennberg, research new CFO. Welcome, Nina. Thank you. Johan and Nina will give you a short summary of the quarter, including the financials. And after that, we open up for questions and you can ask them 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 you used for this Teams meeting and on the Research website. And with that, I hand over to you, Johan, go ahead.

OK, thank you, Eva. So I would like to start by welcoming all of you to today's webcast and also by welcoming Nina, who recently joined us here at Research as CFO. I'm happy to announce that our sales for the fourth quarter were highest ever, 323 million Swedish crowns, an increase of 8% compared to the same period in 2023. Operating profit was 74 million, corresponding to an operating margin of 23%. The improved margin was mainly driven by increased license revenue, which amounted to 160 million Swedish crowns. Order intake was 293 million, 4% down from last year, but we're keeping an upper momentum and opportunities for continued growth in Q1 and subsequent quarters look promising. Razor has a strong cash position of 463 million, stable cash flow and no loans. Considering the company's financial position and good future prospects, the board of directors proposed to increase the dividend from two Swedish crowns to three crowns per share. At the end of last year, the team at Trento Proton Therapy Center in Italy became the first in the world to introduce discrete proton arc treatments. The plans were optimized in Ray Station and delivered with a machine from IBA. Proton arc therapy is a method that has the potential to substantially improve treatments for patients. RACE Search has been a pioneer, and we played a crucial role in this development. And I'm happy and proud that the method now is in clinical use. In October, Genesis Care in the UK purchased RACE Station, Genesis Care has 14 specialist outpatient cancer centers across the UK, and the order will enable them to fully replace the current pinnacle treatment planning system with RayStation. RayStation will also improve Genesis Care's established adaptive radiotherapy capabilities and continue to support remote planning across the entire network. In early 2024, we acquired the product DragLog, which is a quality assurance system for chemotherapy. DragLog complements our product offering and represents yet another step towards achieving our long-term vision of providing software support for all types of cancer treatments, including chemotherapy and surgery. In January this year, we received our first DragLog order from the Children's Memorial Health Institute in Warsaw, in Poland. In the beginning of December, we exhibited at RSNA, which is the world's largest radiology conference. Among other product features launches, we present a new module for deliverability in RayStation. The method has been developed in collaboration between RaySearch MD Anderson Cancer Center and has shown significantly improved outcomes during liver ablation in the clinical trial. The reception at RSNA was very positive, and I'm looking forward to the development in this new and exciting area. Last May, we launched RayCare 2024A with many feature updates and improved usability and efficiency. And in September, an important milestone was achieved when Iridium Network in Belgium treated their first patient using RayCare together with TrueBeam. With RayCare now in clinical use with TrueBeam, we see a sharp increase in customer interest. Now let's take a closer look at the financials. So please, Nina, go ahead.

Thank you, Ilan. Starting with the overview of the quarter four, I think it's worth repeating that research reached an all-time high level in net sales, both in the quarter and for the full year. Net sales in quarter four increased by 8% to 323 million compared to 300 million last year. Adjusted for currency effects, the growth was 9%. The sales of licenses amounted to 160 million, corresponding to a growth of 16%. And the support revenue amounted to 131 million, which is an increase of 9% compared to last year. The quarter four order intake decreased by 4% from 318 to 305 million. The order intake for licenses were down 1%, ending at 159 million, and the order intake for support decreased 5% to 105 million. And it is important to bear in mind that the nature of the order intake, especially from licenses, that it fluctuates between the quarters, and that net sales can to a far extent be generated from orders received in the same quarter. The operating expenses for the period amounted to 235 million compared to 223 in the same quarter last year. And that corresponds to an increase of 5%. As also mentioned in previous quarterly calls, there has been a reclassification between sales cost and administration's cost in the 2024 Consolidated Profit and Loss Statement. And the effects from this has been disclosed in a separate table in year end report on page seven. Quarter four was another quarter of strong performance. Operating profit ended at 74 million and the operating margin was 23 percent. And that is eight percentage points higher than last year's 15 percent. Operating profit last year was 44 million. The cash flow from operations amounted to 103 million in the quarter compared to last year's 116 million. And it has been affected by fluctuations in contract assets and contract liabilities. The cash flow for the period was 24 million and we had higher leads payments in the cash flow statement in 2024. that was related to that we had lease payment that belonged to 2023 that was made in the beginning of January 2024. Moving on to the full year, order intake grew 8% from 1 billion 4 million last year to 1 billion 87 million in 2024. The order intake for licenses grew 13%, amounting to 523 million, and the order intake for support increased by 1% to 396 million. The full year growth in net sales was 17%, from 1 billion 22 million in 2023 to 1 billion 192 million. The sales of licenses increased with 30% to 576 million and support sales was up 14% to 473 million. Research ends a strong year with an operating profit of 260 million and a double operating margin of 22%. Last year's operating profit was 115 million and the operating margin was 11%. Cash from operations in 2024 improved to 485 million compared to 456 million in 2023. And the lower cash conversion rate in 2024, as I previously mentioned, is mainly related to fluctuations in contract assets and contract liabilities. The cash position at the end of the period amounts to 463 million, and that is a significant increase from the position at the beginning of the year, which was 344 million. Moving on, looking at the development of EBIT and EBIT margin quarter by quarter for the last two years, it reflects a stable and really strong outcome during 2024, and that research is on a good move towards the target of at least 25% operating margin by 2026. And the strong development is also visible on the next slide, showing the rolling 12 development in net sales and operating result starting in the first quarter in 2023 with a rolling 12 net sales of 866 million and the rolling 12 EBIT of 37 million and ending in the last quarter of 2024 with an almost 40% higher full year net sales and seven times higher full-year EBIT. Taking an even longer perspective on the development in net sales, it has been an almost steady growth development since 2008. The exceptions are 2020 and 2021, where sales was highly affected by COVID restrictions. And the recurring revenue from support sales was 40% of the total revenue in 2024. The end of the year backlog amounted to 1,813,000,000, of which 552,000,000 is expected to generate net sales in the next coming 12 months period. And that was all from me. Moving back to you, Johan.