RaySearch Laboratories AB (publ)

Welcome to Research Presentation of the First Quarter 2022. My name is Karolina Stavlis, and I'm Head of Investor Relations. As usual, our CEO and founder, Johan Löf, and our CFO, Nina Grönberg, will walk you through the key highlights and financial results of the quarter. After the presentation, we will open the floor for questions. Simply raise your hand in teams to ask a question live. And with that short introduction, I will now hand over to you, Johan.

Thank you, Carolina, and welcome again, everyone. I apologize for my voice. I have a cold, as you can tell. Before we dive into the results and highlights, let me start with a quick overview of Razor's business. So Razor is a software company, and we focus on, and recommend. What we see here is a schematic view of a comprehensive cancer center. Although research has been focused on radiation therapy for the first 25 years, we are now about to expand into the other areas of cancer therapy, into chemotherapy, surgery, and liver ablation, for example. So everything that goes on in a comprehensive cancer I think it's important to look at the long-term performance on research. This diagram shows the revenue all the way back from 2008. And you can see here that there's been a steady growth every year. growing year over year. I would also like to show another view of the same thing, basically, where we also look for every year at the revenues for the individual quarters. And as you can see, for many of these years, there are fluctuations between quarters. We can look at 2017 for examples. It fluctuates, but nevertheless, there is a growth for the full 12 months. Another example can be 2022. You see fluctuations. Some of the weak issue too, but when you take all the quarters together, again, growth. 2024, the same thing. And 2025 even has a similar situation. So this is nothing unusual for research. There are, of course, underlying revenues from the support, but 40 plus percent. And many smaller orders are the foundation for the revenue for every quarter. But whether the quarter is really good or bad depends on a few big deals. It can be two, three, four different deals. that determine whether the quarter is late or not. And they can fall, you know, within a quarter or they shift to the next quarter or the quarter after that. But this shows a very long track record for many, many years that even though there are fluctuations between quarters, the growth over the 12-month period happens anyway. So I just want to highlight that, even though we have a softer quarter this quarter. All right, so Q2 in brief. Profitability remained robust despite the software net sales in the first quarter. Net sales declined by 20% to 290 million Swedish crowns. It was mainly due to a stronger Swedish crown and a tough comparison in the last year, which included a large order of carbon ions from China. So the organic growth was a negative 5%. But as I mentioned, there were a number of these that we thought would come in into this quarter, but they didn't simply. It's a timing effect, and then we come in in Q2 or Q3 at the latest. I have one example of a It was ordered then that the purchase order was signed, but it was stuck in the Chinese customs, and that's something that's very unfortunate and not something we can control. So that order is already in now as an example. The recurring support revenue continued to provide stability, amounting to $133 million, or 42% of total revenue. Operating profit reached 68 million Swedish crowns corresponding to an operating margin of 23 percent in line with last year. Some business highlights. The demand remained steady during the first quarter with high customer activity across our markets. We secured several strategically important deals, including three new order in key markets. We received our first RayCare order in China, together with an order for RayStation for a proton therapy facility at the Shanghai Proton and Heavy Iron Center. The solution is to support an upright proton therapy system, which is a cost-effective pathway for clinics to introduce proton therapy. The order is an important milestone for us in this large and growing market. In France, Institute Hartmann chose to replace its existing treatment planning and oncology information systems, Eclipse and ARIA, which are from Marion, with RayStation and RayCare, enabling a unified workflow across a mixed treatment machine environment. And this was our first RayCare order in France. In Germany, several clinics selected RayStation to replace Pinnacle, And we continue to see business opportunities ahead of that system's planned end of life in 2027. We're also proud that the first patients were treated in the railway station in Ukraine during the quarter. That's an important step in modernizing radiotherapy under very challenging circumstances in this country. I will now hand over to Ina. to go through the financial development and be more speed-heavy.

Thank you, Johan. The quarter one sales numbers may give the picture that business is slowing down, but as you heard from Johan, that's not the case. Order intake dropped 13% compared to last year, It was affected by currency and in relation to a very strong comparison quarter with above 70% growth. The activity from our customers and in our sales team remains on a high level. The book-to-bill ratio was 1.2 and order backlog end of March amounted to $1,615,000,000. and 624 of those is expected to turn into net sales in the next 12 months. Moving forward to net sales and EBIT, net sales was down 12% in the first quarter. More than half of the downturn is related to a weaker Swedish krona in 2026. although quarter one last year was the quarter when the value of U.S. dollar, euro, and several currencies started to fall. The organic growth was minus 5%, again in relation to a strong first quarter 2025, and to raise such normal fluctuation. And as Johan mentioned, we had revenue that got slack in customs in China, and for other reasons, delayed into later quarters. License sales decreased with 24%, and support sales with 1% year on year. Taking away currency effects from support numbers, the growth would have been 8%. Despite the lower sales, EBIT was solid at 68 million, and the margin amounted to 23%, which is the same level as last year. We have approximately 20% of our costs in US dollar, and together with good cost control and slightly higher R&D capitalization rate, operating costs were stable. In the 2026 quarter one, currency gains from revaluation of working capital gave us a positive 10 million SEC effect. The rolling 12 development graph over net sales and EBIT, as you see in this picture, is tipping down a bit in the 2026 first quarter. As you can see, it also did in quarter two last year. Just to turn upwards again in the next quarter and then continue its pathway upwards. The rolling 12 EBIT margin amounts to 22%. Moving on to the next slide and the revenue split, as Johan said, the support revenue was 42% of total revenue. That is a slightly bigger part than we usually have, and that is related to the lower license sales in the quarter. The lack of growth in support revenue was, as mentioned, mainly due to currency. And we also had some periodization effects from a couple of contracts that gave us a lower number in the first quarter. And I want to highlight here that those periodization effects, it doesn't mean that we lose any revenue. It just means that revenue is sometimes moved between the quarters. The next slide and the cash flow, the underlying performance in cash flow was good in the first quarter, and we had about 30 million inflow from contract assets. However, this positive effect was offset by an active choice to pre-purchase inventory, something we did in order to mitigate effects from price increases in hardware. It is service and computer that we normally buy upon order and transfer almost instantly to the customer. Cash balance end of the quarter amounted to 439 million, and cash flow remains an important focus area also going forward. And with this, I'll hand over to you. Adaptive.