RaySearch Laboratories AB (publ)

Hello and welcome to the presentation of Research Interim Report for the first quarter of 2025. My name is Henrik Preyfors and I will be the moderator today. Joining us in today's call is Johan Lööf, Research Founder and CEO, and Nina Grönberg, our CFO. Johan and Nina will give you a brief summary of the quarter, including the financials, and after that, we open up for questions. I also want to remind you that this session is being recorded, and you will be able to find it on our website in the upcoming days. With that, I hand it over to you, Johan. Please go ahead.

Thank you, Henrik. I would also like to welcome all of you to today's webcast. I'm happy to announce that our sales for the first quarter were our highest ever, 332 million Swedish crowns. Compared with the same period of 2024, the increase was 29%. Operating profit was 75 million, corresponding to an operating margin of 23%. The improved margin was mainly driven by increased license revenue, which amounted to 165 million, Because of the political turbulence in the US, operating profit was affected more than usual by exchange rate fluctuations. Excluding those, operating profit would have been 95 million Swedish crowns, which corresponds to an operating margin of 29%. Order intake was 410 million, representing a 72% increase. To summarize, we're maintaining a solid momentum and outlook for continued growth remains very positive. In addition, Ray Search has a strong financial position with cash and cash equivalents of 503 billion Swedish crowns, stable cash flow and no loans. In early March, Heiyu Hospital in Foshan City in China, placed an order for Ray Station worth 77 million Swedish crowns. Of this, 26 million was recognized in the first quarter. This is the third largest order in research history and the biggest we've had since December 2022. Apart from the large order value, what makes this agreement exciting is that Heijou is the first customer to use RayStation with a combined Hitachi carbon iron machine and proton machine. This will also be using the They will also be using the system for their conventional focal therapy. The order strengthens our already solid market leader position in treatment planning for particle therapy. Moving to Europe, Odense University Hospital in Southern Denmark also placed an order for RayStation. The hospital is known for its advanced use of automation, to deliver high quality and efficient cancer care. The majority of the order, valued at around 15 million, excluding service contracts, was recognized as revenue in the first quarter. With registration, the center is taking a major step forward in automating the entire treatment planning process. It's a great example of how hospitals are using our technology to advance the field of treatment planning. The Royal Marston NHS Foundation Trust in the UK has become the first hospital to treat a patient using a new adaptive replanning module, including in the latest RayStation release. This new module allows for faster, more efficient treatment adjustments, which saves valuable time for both clinicians and patients. The next step for Marston in the development is to add RayCare, as this could further reduce treatment time. We're looking forward to continuing our close collaboration with the professional team at Marston. As I just mentioned, the new adaptive replanning module is included in the latest version of RayStation, which was launched last week. We have continued our efforts to automate as much as possible of the treatment planning process And apart from the replanning module, the new version includes an updated plan explorer, which now works together with our latest methods for automated treatment planning, that is machine learning and ECHO. In the area of machine learning, we have improved performance and added models with several new plan types. ECHO is an algorithm developed by Memorial Sloan Kettering Cancer Center in New York, and it has now been integrated into RayStation. Both of these methods simplify the workflow for creating individually tailored treatment plans and reduce the time required compared to manual planning. The planning results are also more consistent and reproducible, which supports a more standardized care for patients. The new version of registration also includes extended support for treatment planning with the Leo Cancer Care upright patient positioning system. Okay, so now let's take a closer look at the financial. So please, Nina, go ahead.

Thank you, Johan. The first quarter in 2025 was really an overall strong quarter. Net sales increased with 29%, from 257 last year to 332 million in 2025. Adjusted for currency effects, the growth was 26%, since we had a stronger average Swedish crown in the first quarter last year. The sale of licenses amounted to 165 million, corresponding to a growth of 39%, and the support revenue amounted to 125 million, which is an increase of 17% compared to last year. Order intake in the first quarter was strong and increased 72% from 239 to 410 million. And this is including 77 million from the Chinese Heiyu order, which Johan also mentioned, is the third largest order ever. The order intake for licenses were up 42%, ending at 159 million, and the order intake for support increased 151% to 201 million. The operating expenses for the period amounted to 216 million compared to 193 in the same quarter last year, which corresponds to a 12% increase. The increase is due to that we have a higher number of employees now than we had one year ago. The high level of net sales brought an operating profit of 75 million and an operating margin of 23%. And that is five percentage points higher than last year's 18. Operating profit last year was 46 million. Cash flow from operations amounted to 147 million in the quarter compared to 167 million last year. The decrease compared to last year is due to a strong cash flow in the first quarter last year, and that we paid taxes in January 2025, but that belonged to the net earnings of 2024. The net cash flow for the period was 66 million, and cash conversion was 156%. The cash position at the end of the period amounts to 503 million. Moving on, looking at the development of EBIT and EBIT margin quarter by quarter for the last two years, it is visible that quarter one is normally one of the weakest quarters and that the outcome of the first 2025 quarter stands out. The operating margin in the first quarter 2025 is on a steady 23% despite that it has been affected by 20 million in currency losses recognized in the P&L. The rolling 12 development graph displays research last two years of steady growths in total 46% and with a CAGR of 29% and with an increasing operating margin over the quarters. Net sales for the last 12-month period now amounts to almost 1.3 billion and EBIT for the same period amounts to 290 million, which means an operating margin of 23%. Moving on to the next slide, this is the research growth journey from 2008, also showing the increased robustness in the business from a larger portion of recurring support revenue during the last years. The backlog end of March amounted to 1 billion 734 million, of which 546 million is expected to generate net sales in the next coming 12-month period. Book-to-bill in the quarter was above 1.2 and the decrease in the backlog compared to December 2024 is in its total related to currency revaluation. Here it is important to bear in mind that our backlog stretches over several years, and that the value will bounce back when and if the Swedish crown becomes weaker again. That was all from me. Moving back to you, Johan.