RaySearch Laboratories AB (publ)

Good morning and a warm welcome to the presentation of Research Q3 2025 results. My name is Carolina Strömlid and I'm new head of investor relations at Research. With me today are our founder and CEO Johan Lööf and our CFO Nina Grönberg who will take you through the highlights and financials of the quarter. After the presentation we will open up for questions so feel free to submit them in the chat or ask them live. With that, let's kick off today's presentation.

Thank you, Carolina, and welcome again, everyone. Before we go through the Q3 results and highlights, I'd like to give a brief overview of Raysearch and our business. As you know, Raysearch is a pure software company, and we develop software for cancer treatments. four platforms, RayStation, which is our treatment planning system, RayCare, which is the oncology information system, RayTelligence is our analytics tool for exploring population data, and RayCommand is the treatment control system. So if you look at the comprehensive cancer center, we have Usually the radiotherapy treatment in the basement, you see the treatment machines down there. In the comprehensive cancer center you also perform surgery for cancer and you deliver chemotherapy and other systemic therapies. So comprehensive cancer center can deliver all the types of treatments that are available for cancer. Razor has so far, during our first 25 years, been mainly focused on radiotherapy, or I would say only focused on radiotherapy. So we do the treatment planning for radiotherapy and also with Raycare we manage the workflows, et cetera, for delivering radiotherapy. We have recently added a new function in RayStation for deliberation, planning and delivery. So there's a little room in this clinic picture where you see a liver ablation to the far right. And this is the first time we actually go outside of radiotherapy because liver ablation is interventional radiology. And going forward, we will, take care also of the other aspects of cancer treatment. Next year we are entering into chemotherapy where we add chemotherapy planning into RayStation and chemotherapy management into RayCare. Further down the line we will also support surgery in the same way. So our long-term goal and vision is to provide a comprehensive cancer center with all the tools necessary to do whatever goes on in a center like that. So we would support comprehensive cancer care. Many patients receive a combination of treatments. Breast, for example, you usually first perform surgery to remove the tumor or the breast and then you irradiate lymph nodes and after that you deliver chemotherapy. So many patients that have a combined treatment like that and I would say there is hardly any support, any software support for that situation. So we want to be able to co-optimize and coordinate such treatments in the future. This slide shows the long-term development for research in terms of revenues. We go all the way back to 2008. I show this slide because I want to emphasize the importance of looking at research long-term because, as I have repeatedly stated over several years, is that our quarters fluctuate in terms of revenues. That has been quite common for for a long time even though maybe we see a little bit less of that than in the past but it's still um sort of a it's still a characteristic of a research because there are some big deals that can fall on either side of the the coin into one quarter another quarter So it is important to look at research over a longer period. And if you look at this slide, you see that it's a pretty stable growth over the years. The magenta colored bars are the support revenues, and they are steadily increasing. And there are now about 39, 40% of the total revenues. There is a dip, as you see, 2020 and 2021. that were of course during the COVID years where we were quite badly affected. But overall, over a longer period, we can see that there is a steady growth. So even if we had a somewhat weaker Q2 this year, Q1 and Q3 are record quarters in terms of revenues. we have all-time high this quarter, but Q1 was very close as well. So basically we have two all-time high quarters this year so far and one a little bit weaker. So I just want to remind everyone that one has to have a longer term perspective on research development. Okay, so now over to the latest developments. So I'm happy to report that Q3 was a strong quarter for research with record high net sales and improved profitability. I think Q3 demonstrates the strength of our business model and the importance of maintaining this long-term perspective. While revenues can fluctuate between quarters, this quarter confirms the company's continued solid performance. We saw a continuous strong interest for solutions in the quarter, supported by the deliveries to six major particle centers in Asia. Net sales grew by 13% to 332 million Swedish crowns, reaching the highest revenue we have ever recorded. The increase in net sales helped lift operating profit by 44% to 89 million, with an EBIT margin of 27%. Adjusting for costs from our global employee conference, EBIT was 103 million, corresponding to a margin of 31%. Recurring support revenue continued to grow, reaching 130 million in Q3, which then represents 39% of total revenues. So let's move on to the operational highlights of the quarter. The overall customer activity remains strong, with order intake increasing by 70%. Many of our existing customers expanded their installations during the quarter to add more systems and functionality. Roughly half of our licensees continue to come from the installed customer base, demonstrating steady demand from the existing customers. Interest in razor solutions remain high across all regions with an increasing number of clinics choosing RayStation and RayCare over other systems. I can mention a few notable examples in Q3. Stanford Healthcare in the US placed a new order for advanced proton therapy. AKMS Oncology selected RayCare and RayStation for its new cancer center in California. KMU, Dongshan Medical Center in South Korea, will install RayStation and RayCare at its new proton center. RayStation has been installed at three new proton centers and two carbon ion therapy centers in China. Auckland City Hospital in New Zealand is expanding its radiotherapy capacity with additional RayStation licenses. The replacement of Philips treatment planning system Pinnacle, which will be discontinued by 2027, continued in the quarter. The German health provider Med360 will deploy RayStation across 10 clinics for electa and accurate treatment machines. And in France, several clinics will replace both Pinnacle and Eclipse with RayStation. Another example of customer activity was the annual Astro Conference that took place in San Francisco at the end of September. This is a very important event for us and we had a great interest in our offering. Finally, in September, we celebrated an important milestone. The research marked 25 years as a company For the first time since the pandemic, we gathered all our employees from around the world with an internal conference. This created valuable opportunities for knowledge sharing, while also strengthening our company culture and engagement. Together, we will continue to build on this, improving cancer treatments for patients worldwide. In September, we launched a new version of Ray Intelligence, which is our oncology analytics platform. It's cloud-based and we have built it with modern technology for scalability and accessibility. It comes with interactive dashboards that you can use to visualize data and understand correlations, etc. It's seamlessly integrated with RayStation and RayCare, meaning that it listens to everything that goes on in these systems. So without the user having to do anything, Ray Intelligence will capture the information that's being generated in RayStation and RayCare. There is also a very powerful SQL scripting interface for custom queries and in-depth data exploration. Some examples of use cases for re-intelligence is that you can get an overview of the clinical operation. You can get an overview of everything that goes on in your department. You can monitor machines, treatments, toxicities. You can also track treatment quality and look at your population of patients over time. What are the side effects and what are the tumor control probabilities, etc. In our systems, we have several machine learning or AI models in certain algorithms, and Ray Intelligence can also be used to monitor the performance of these machine learning models. Ray Intelligence is also a very powerful tool to generate reports that takes data from Ray Station Ray Carrier, but also external sources. This is an example of a dashboard where you follow the treatment planning in a specific clinic. So you can track it over time, you see the time axis in one diagram there. You can track it on tumor type, so how many plants did we create for breast, how many for prostate, for lung, etc. There's also statistics here for the different treatment planners, so how many, I mean, which person did the most plants and who did the least, etc. So this is just an example of things that you can see and visualize with ray intelligence. It's also important to note that although Ray Intelligence comes with a large number of predefined dashboards that we have made, the user can create, have tools in Ray Intelligence create their own dashboards. So it's a very powerful addition and complement to the RayStation and RayCare. So in the next slide, try to visualize how brain intelligence can be used to gather data. Ray World, we call the combination of all our systems are called Ray World. And we want Ray World to be a learning system. So what this slide illustrates is that those little squares or rectangles are data points that are being automatically at the back end captured by Ray Intelligence from Raycare and RayStation. And that data is put in the cloud, in the data warehouse in the cloud. It can be a cloud on premises, but it can also be a cloud in the cloud, so to speak. And based on this data, we achieve clinical insights. We feedback information. Those networks, neural network symbol there represents machine learning models going back to our systems. But there are also other data points represented by those dots that are insights that we feed back to improve our algorithms. So we have several algorithms that rely on historical data like deep learning segmentation and deep learning planning. So that is to improve the performance of, for example, RayStation. But we can also improve the efficiency, the operational efficiency of the clinic. So Ray intelligence will help determine bottlenecks in the workflow. And then you can take action to remove those bottlenecks. And we also want to provide clinical decision support by following the patients over time and knowing exactly what we did to these patients and what the preconditions were, we can improve when we can give recommendations to the clinical teams on how to treat the next patient. And combined, all of this will then improve outcomes, the treatment outcomes for our patients. So, with that, I would like to hand over to Nina to tell us about the financial development.

Yes, thank you, Johan. In quarter three, we saw continued high activity in the market, both from new and existing customers and across the regions. Order intake increased by 17%, which brought... Oh, sorry. Yeah. which brought the rolling 12 curve upward again, up from the smaller drop that we had in the last quarter. And we had high order intake from support contracts in the period. The order backlog ending at 1 billion 617 million was also affected by that we had six Asian particle sales turning into net sales in the third quarter. High net sales gave us a book to bill ratio in the quarter of 0.9 and for the last 12 months it was 1. Despite headwind from the strengthening of the Swedish krona, net sales grew with 13% in the quarter. And since the 332 million outcome beat the previous record that we had from quarter one this year, if only with half a million, we did mark out a new record level. Licensed sales growth was 40% and support sales grew with 8%. The organic growth was 19%, mainly coming from new orders, but also from the already mentioned particle sales in Asia, sales that was previously recognized in our order backlog. The high net sales drove EBIT up with 44% to 89 million in the quarter and strengthened the margin to 27%. If we adjust for the costs that we had from our internal conference and the very small currency effect in the quarter, EBIT was 103 million and the EBIT margin 31%. Year-to-date net sales was up 11% and 15% organic-wise, and the year-to-date EBIT margin was 21%. Okay, something happened there with the slides. I want the rolling 12 development of net sales and EBIT. Moving on to the rolling 12 development of net sales and EBIT and also the perspective that we believe gives a better and more relevant description of research business performance. We see that net sales for the last 12 months amounted to 1 billion and 292 million, and that gave us an annual growth rate of 14% over the last two years. And the rolling 12 EBIT of 274 million means a solid margin of 21%. And this I want to point out is despite that we've had large effects from non-recurring costs and currency losses during 2025. Recurring revenue from the support contracts was, as mentioned, up 8%, amounting to 130 million in the quarter and corresponding to 39% of total net sales. Year to date, the support contract growth was 13% and amounting to 385 million, and that corresponds to 40% of the total net sales. Rolling 12 development pictured with the blue line in this graph show the steady increase that we have in our support revenue over time. Moving on to the cash flow development, cash flow in quarter three was minus 82 millions. and strongly impacted by a higher working capital. Though this is not a satisfying outcome, I want to break it down for you and I want to point out that the picture is brighter than it first looked like. There is mainly three things that has impacted working capital in the quarter. One of them being the already mentioned Asian sales, which were to large extent prepaid. And that is a good thing. I mean, we get paid before we deliver anything. And that is something that is common when it comes to our sales in the APAC region. But it also means that no cash flow is generated later on when the sales is recognized. Secondly, we have sales with longer payment terms. In some cases, these longer payment terms is related to tenders and framework agreements. And that is something that gives us good and profitable sales, but where we have to accept that we get paid a little bit later. And for example, in the last two quarters, we had strong sales in the French market. And there we have these kinds of contracts. And then we get a smaller portion of the payment when we deliver. But we also have to wait with the invoicing until customer has finalized their testing. In other cases, we have accepted longer payment terms or later invoicing since we can benefit from it in terms of price or in terms of long term value from the customer relations. And third, a portion of the cash flow outcome is always related to timing of the sales in relation to quarter end, a timing that was not in our favor in the third quarter. Cash flow was also affected by quarter three being summer months, which means vacation payouts. Last but not least, I want to remind you that we have a cash balance of 323 million when we exit the quarter. We have no loans and on top of that a non-used overdraft facility. Breaking it down further to you and looking at the three items in our balance sheet, building up the main part of the working capital, the contract assets and the contract liabilities, which is receivables and liabilities we have towards our customers. Here we have been used to having a net that is negative. And that means that we have more prepayments from our customers, meaning they pay us before delivery, than the customers owe us because we have delivered and not get paid. And that is an extremely good position, I must say. And now in September, it turned the other way around. But as I see it, we're still in a rather good shape. And as with net sales, we will have fluctuations in these items as well going forward, depending on the mix of the customer contracts. And we will, of course, continue optimizing the working capital in relation to the business. And with that, I hand over to you, Johan, that will give a summary of the quarter.