RaySearch Laboratories AB (publ)

A warm welcome to Research 2025 Year End Results presentation. My name is Karolina Stramblid, and I'm Head of Investor Relations. With me today are our CEO and founder, Johan Lööf, and our CFO, Nina Grønberg, who will take you through the key highlights and financial results. After the presentation, we will open up for questions. Feel free to submit them in the Q&A chat or ask them live. With that said, Johan, over to you.

Thank you, Carolina, and welcome again, everyone. So this is the agenda for this webcast. I will start with an interaction about research. Then I will summarize Q4 and the full year. After that, Nina Granberg will talk about the financial development. Then I'll take over again and mention the dividend proposal that we have. Since there is a strong focus on AI these days, I will make a deep dive into what that means for research. And then I will just summarize the presentation and make an outlook. After that, we take Q&A. So, a few words about RaySearch. RaySearch is a pure software company, and we are dedicated to cancer treatment software. And we have four platforms, RayStation, RayCare, RayIntelligence and RayCommand. What we see in this image is a comprehensive cancer center. And our long-term goal is to support such a center with all the software that they need. So not only radiotherapy, but also support for chemotherapy, surgery, tumor board meetings, and other things. So that's the long-term vision for research. So far we have focused mainly on radiation therapy of cancer. What we see in this image is the user interface of RayStation, our treatment planning system. And it summarizes quite well what's going on in treatment planning for radiotherapy. In the upper left, upper, let's see, upper right image here, you see a machine. This particular machine happens to be an Oxray by Hitachi. And we can see in this image how the machine moves around the patient. So it rotates and it also swivels this ring around the patient. So one thing that we have to do in our treatment planning system is to model this machine so we understand how we can move and also the physics of the beams. We can calculate dose in the patient, et cetera. The next thing we need is a model of the patient. So we see the patient in the middle. upper image here and also in the other images you see different cross-section of the patient and we also see the dose distribution which is the color wash overlaid on these CT images and the idea here is that we get a high dose to the tumor which is the red color in this image and low dose to the organs at risk outside of the tumor for example you see the spinal cord in this in this sagittal view, that it has a very low dose. The lower right image shows the patient from the source. If you look at the patient from the source, this is how the patient would move. It looks like the patient rotates, but it's actually the source that rotates around the patient. So this is in summary what we are doing in treatment planning for radiotherapy. We also want our systems to absorb data as we treat the patients, so that all of our products will automatically capture the data that's being generated before the treatment starts, during the treatment, and during follow-up, what happens to the patient after the treatment. And by absorbing all of this data in the system intelligence, we can achieve clinical insights and feed information back to our systems to improve the systems. And some of those icons represent machine learning models, but it can also be other aspects, other types of clinical insights. And we use this feedback data to improve our algorithms. We have some examples of that already out in the field. We can improve the efficiency of the operation. Ultimately, we want to provide decision support so that the members of the tumor board, for example, can make the best possible choice of strategy for the patient and ultimately improve outcomes. I show this diagram just to illustrate the long-term journey in terms of revenues. The reason is I want to highlight that we shouldn't look at research revenues on a quarterly basis. If you zoom out a little bit, this one goes all the way back to 2008. we can see that there has been a steady growth of revenues year after year. The two pandemic years are an exception, and we understand why those two years were weaker. But besides those, there has been a steady growth of the company, even though you may see fluctuations between quarters. Okay, and now I will make a few comments about the last quarter and also the full year. So Q4 was a strong finish of the year. Net sales grew by 16% to 375 million Swedish crowns, which is all-time high. Adjusted for the strong currency headwinds, the growth would have been 28%. Recurring support revenue was 139 million Swedish kronor, which corresponds to 37% of the total revenues. The strong sales translated directly into improved profitability. Operating profit increased by 25% to 92 million Swedish kronor, resulting in a 24% EBIT margin. Adjusted for personal losses, the margin would have been 27%. So for the full year 2025, net sales increased by 13% to 1.34 billion Swedish grams, marking the highest annual revenue in the company's history. Organically, net sales grew by 19%. Recurring support revenue was 524 million, which corresponds to 39% of the total revenues. Operating profit was 292 million Swedish crowns for the full year and the margin 22%. If we adjust for currency effects and extraordinary items, the operating profit would have been 353 million and the margin 26%. Let me briefly highlight a few of the new orders and expanded installations we secured during the quarter. We continue to see solid momentum with strong license sales to both new and existing customers across all regions. Greater Poland Cancer Center expanded its registration installation to include proton therapy, bringing photon and proton planning together on a single platform. The University of Pennsylvania, one of the premier proton therapy institutions in the US, selected RayStation as a unified treatment planning system for proton therapy across its three clinics. Universitetsklinikum Gießen and Marburg in Germany chose to replace Philips Pinnacle, which reaches the end of life in 2027, with RayStation. We have also seen strong clinical progress during the quarter. The Royal Marston NHS Foundation Trust achieved a major milestone by performing its first online adaptive treatment on a standard electrical DYNAC using RayStation's adaptive planning module. Until now, most online adaptive treatments have been limited to specialized machines that few centers have. This achievement makes online adaptive radiotherapy accessible to far more clinics and patients. At the Southwest Florida Proton Center, the first patient treatments were delivered using RayStation and RayCare together with IBA's proton therapy system, enabling highly precise treatments including proton arc therapy. Together with the Trenton Proton Therapy Center, we performed the world's first clinical proton arc treatments in 2025. A technique that improves dose distribution by using many beam angles and optimized energy levels. This achievement was actually named one of the top 10 scientific breakthroughs of the year across the entire field of physics by Physics World. And that's something that we're very proud of. And now I will hand over to Nina, who will go through in more detail the financial development.

Thank you, Johan. Taking off from your presentation and the numbers in brief, we can conclude that it has been high interest in research solutions throughout the year, and that goes both from new and existing customers and in all of our regions. And that is also something that is very much reflected in the numbers for the last quarter. Order intake increased by 8% in the fourth quarter and 17% for the full year. And I want to highlight that these numbers include the effects from the stronger Swedish krona, which, as you know, has affected us a lot during the year. And that goes both in terms of growth and on the bottom line. Order backlog end of December amounted to 1,528,000,000 and the book-to-be ratio was 0.9 both in the quarter and for the full year. Moving on to net sales, we finished the year beating the last sales record by far. Net sales of 375 million means a growth of 16%. The organic growth was 28%, showing that the underlying business really performs well. Licensed sales growth was 15% in quarter four, and support sales grew with 6% year on year. When we take out the currency effects from the support sales numbers, the growth was 16%. The high net sales drove EBIT to 92 million a quarter and strengthened the margin to 24%, compared to 23% for the same period last year. Currency losses from the revaluation of working capital affected EBIT with just about 10 million, and adjusted for that, the EBIT margin would have been 27%. Next slide is the rolling 12 development of net sales and EBIT and the perspective that we believe gives a better description of research business performance. For the full year 2025, net sales increased 13% to 1,344,000,000. The organic growth was 19%, and with an EBIT of 292 million, we ended the full year 2025 with a margin of 22%. That is equal to last year, but also burdened by 37 million in currency losses. Adjusted for those and an additional 23 million that we treat as non-recurring costs, the margin would have been 26%. Moving to the next slide showing the revenue split and where I focus on the revenue from support, we saw a growth of 11% in our support revenue for the full year 2025. With the steady growth we have in our support revenue over time, we increased the robustness in the business from recurring revenue. And for the total year 2025, the portion of recurring revenue in relation to total net sales was 39%. Cash flow in quarter four, as you can see here on the next slide, improved significantly and amounted to 91 million. And that includes positive effects from a lower working capital. We will continue to put focus on having a good cash flow in 2026. However, I want to point out that I also, or what I also said in quarter three, that the cash flow can fluctuate also going forward. We always seek to work with standard payments or standard payment terms in our customer agreements, but we also have situations where the gap between sales and payment is longer. It can be tenders or framework agreements or related to certain markets. Sales that comes with a good profit, but where we have to accept later invoicing. We want to have a position where we sometimes, for strategic reasons and in relation to important customers, can choose to accept profitable sales over short payment terms. And with a cash balance end of 2025 amounting to $407 million and no loans, we have a solid financial position. The next slide shows the contract assets, that is our customer receivables, and also our contract liabilities. That is the balance sheet items that shows how much payments we have received from our customers in advance. We have during 2025 moved away from a position where our contract assets were lower than the contract liabilities. And that is to a large extent dependent on that we have delivered on prepaid sales in our backlog. But I want to point out that a net position of 118 million is still a good position. But of course, this doesn't take away our intention to lower this number and to improve the working capital where we can during 2026. And with this, I hand over back to you, Johan.