SenzaGen AB

Thank you very much and a warm welcome to this presentation where Peter Nellstedt, the CEO of Sensagen, will present the Q4 report and the book release communique for 2025 and also present the new headquarters, AFER Investment, where a targeted new emission is made for them. So I'll pass the word over to you, Peter, and then we'll move on to a Q&A session after the presentation. Peter, go ahead.

Thank you very much, Rodney, and welcome from my side as well to this presentation of Q4 and the end of the book. Vi kommer att ha ett kortare program här där jag presenterar hur det har gått nu under fjärde kvartalet och hel året. Berätta om guard businessen där vi stängde 2025 väldigt starkt. Sen ge en liten uppdatering på hur det går med våra dotterbolag. After that, it will be a more general presentation of Sensei & Gruppen, if we have any new shareholders who want to listen to it. And also go through our growth plan of the strategic initiatives that we talked about on the Capital Market Day in November. And then of course, last but not least, we end with the very good news that we have received a new large institutional international shareholder. which is listed as number one on our list, the Eiffel Investment Group. Let's start with the report for 2025. This year, we ended the year with continued strong guard sales, and that was also what we said in the half-year report, that we expect a much stronger second half-year, and we have also delivered. So Q4, in total for the company, grew by 1%. However, we had a lot of currency against the wind. If we had had constant currencies, Q4 would have increased by 4%. Vi satte ny rekordförsäljning för Guard fjärde kvartalet med 12,3 miljoner vilket motsvarar kvartalstillväxt på 13% eller 18% valutajusterat. På helår då för koncernen så växte vi 1% eller 4% valutajusterat. Our gross margin was 65% all year round. It's stable and it's within the interval that is historically normal for Senza again. And we got a small temporary decline here in Q4-25, which we also got in Q4-24. So the gross margin ended up at 55% and it's a product mix question I will return to. At the same time as we have managed to increase our turnover so much at Guard and also at a certain extent at the company, we have managed to reduce our cost base by 6.5%. So our growth went down to 50.6 million over the year. We have worked a lot with cost control. And we have also worked a lot with efficiencies during the year. So throughout the year, we end up with a flat EBIT or minus 3% and a flat earnings per share or profit per share. I kvartalet så hamnar ebit, rörelseresultat, på minus fyra miljoner. Jag vill också säga det här innan jag går vidare, att vi nu kommer fokusera på ebit som rörelseresultatsmarginal. Vi har bytt redovisningssätt till IFRS, vilket vi också kommer berätta om i vår skriftliga rapport mycket mer. in order to prepare the company for future growth and have a reporting language that is now also more internationally easier to follow and it is also a requirement for larger stock lists to be prepared in IFRS. Till sist så vill jag också berätta att vår orderbok är väldigt stark vid slutet av året. Vi hade 7,9 miljoner när vi går in i 2026 mot de 4,9 vi hade när vi gick in i 2025 så att vi har en betydligt starkare position när vi går in nu i det här nya året. Guard went a lot faster this second half of the year than the first, just as we predicted. And we ended it with this record sale in Q4 with a 13% growth of 12.3 million. And we have also seen a stronger and stronger order intake here in Q4 from, among other things, the US. where we received an order of 1.5 million from a large global chemistry company and an order of 2.5 million from a global tech company. So here the company enters a new segment in technology. So this led to a growth of 8% or 12% per year. We have also continued to develop the business strategically. 19 new large global groups as customers. We got 14 in 2024, so we continue to increase. And the number of buying customers, which is a measure we measure, grew by 80% during the year. So we have had a much, much larger and broader customer base. At the same time, we have maintained our repeat business, that is, recurring customers. It increased to 84%. So I think this is a very good diversified, broad, recurring customer base. Then we have this product mix. A little bit interesting is that we have sold 19% of the completed test. And this is something that comes a little bit from the fact that we have now got GARD approved. as a standard test within OECD 497. And then you do GARD, but you also do it as a complement to your test, and we have started to sell that. And this is also a reason why we had a slightly lower gross margin in the fourth quarter, because we sold a number of outsourced test steps. But at the same time, in the fourth quarter, we have also worked with and insourced the test steps, so we will be able to fix that in the future. Plus, we don't really have so much outsourcing in the order book when we enter 2026. The order book, by the way, on Guard, is 50% higher than it was when we entered 2025. And with this strong repeat business and a broad customer base, it looks very promising for 2026. We have a very strong customer base, as I said, here we have some examples of companies that we have worked with. I would like to point out some here that you can look at. Clarence, a well-known cosmetic brand from France, and Bic, which also works in the cosmetics and healthcare field. If you go to Sensai's website, you can see a webinar we did together with them, where we helped these two to test very hard-tested natural botanical extracts, for example. You can also just search for Sensai Clarence on Google and you will see these webinars. We have worked with Sonova for a while, which makes hearing aids, medical technology. There we have a really nice poster, together with those that you can also search on Google, Sensorian plus Sonova. Then you can look at the poster where we have worked with Sonova, where they have screened new materials. So please take a look at it if you are interested in how we work with these big global leaders. Vi har ju då dotterbolag, VitroScreen och ToxHub. Vi har fortsatt att ha försäljningsfokus och kostnadsdisciplin. VitroScreen är under omställning. Q4-försäljningen gick ner jämfört med Q4 2024. Vi har ett antal åtgärder som vi jobbar med med bolaget och har jobbat med under hela året. En av dem är att vi har jobbat mycket med salespipen, jobbat mycket med leads, försöka få upp en betydligt starkare bredare salespipe. Det har vi nu lyckats med. Salespipen är mycket starkare under här när vi går in i 2025 än den var för ett år sedan, ungefär dubbelt så stor. We have also worked on implementing Guard on the lab in VitroScreen in Milan. In this way, we will increase the capacity for Guard and we will also get better efficiency on VitroScreen, where we have more constant load on the lab. We have also reduced the cost base. We have shifted costs from management to more operational resources in VitroScreen. So we have a number of things going on. We think things are going in the right direction, but we have, as you can see, not had full effect on sales yet. Full effect on sales we have on our subsidiary ToxHub, which is a consulting and advisory unit. Tokstav had a fantastic 2025. It now accounts for 10% of our group sales, up from 5%. And we have managed to expand to many new customer segments and new customers, including in the pharmaceutical industry. And the collaboration in our group when it comes to sales, you can also measure that if we look at this scale with cross sales, we have increased by 13% to 4.5 million. And that indicates that we have succeeded använda gruppens erbjudande på ett koordinerat sätt när vi pratar med kunder, de här synergierna. Det är vi väldigt glada för. These are the highlights from Q4 and 2025. I will now briefly go into the company and the group. Our vision is to replace animal studies and improve people's health by offering safe and ethical product tests. Vårt huvudbolag, Moderbolaget, ligger här i Lund och vi utgör nästan 70 procent av koncernens omsättning. Här jobbar 22 anställda. Vi har fokus på djurfri säkerhetstestning eller toxikologi och har utvecklat Guard-plattformen. We have a subsidiary company called VitroScreen in Milano, which then completes the sensor again by having so-called effect testing, so that you can run out of a product or a substance with the effects you said. And here we have the Aura platform, which is an organoid test platform where you can test the effect of substances on a small mini organ. So that technology is in place in Milano. And it accounts for about 20% of the group's turnover, where 11 people work. And then finally we have ToxHub, 10% of the turnover, three employees, but a network of other experts, which means that you can provide regulatory and toxicological advice on animal-free testing. These three companies are connected through safety testing, effect testing and advice, so that we can offer our larger customers a whole package. We are working on a growth market. There is a shift from animal testing to animal-free testing. The market is estimated to grow between 6 and 9.5%. The entire animal-free testing market is estimated to be 13 billion dollars. Vi har brutit ner den till den adresserbara delen av marknaden där vi har tjänster som fungerar idag till en halv miljard dollar. Så det finns gott om utrymme för gruppen att växa och ta marknadsandel under många år framöver. Vi tror dessutom att marknaden kommer fortsätta att växa. Det finns en vetenskaplig utveckling som går fort nu med AI-teknik, biologiska testmodeller There will be more and more regulations and prohibitions against testing on animals. Animal-free testing is more cost-effective than animal testing, it's faster, it doesn't require ethical conditions. So this is the third driver. And lastly, there is increased social responsibility from large companies if you don't want to abstain from animal testing and switch to animal-free testing. De stora regionerna är Europa och Nordamerika. Det är också där vi har vår absolut huvuddel av försäljningen. Vi jobbar väldigt brett vad gäller branschmässigt. Kosmetika, medtech, kemikalie och läkemedel. Vi har ett antal strategiska initiativ för att vi ska fortsätta att växa koncernen de närmsta åren. De fyra initiativen är att vi jobbar med att få GARD godkänt som en standard inom medicinteknik. That would lead to a very large market opening up. Today, there is no skin allergy safety test that is fully regulated. This is controlled by an international organization called ISO. Within this ISO group, methods are validated. We work to get GARDS as a standard method. Vi vill också fortsätta utveckla Guard inom till exempel DOS Response och vi vill också titta på hur vi kan utveckla genomikdelen av Guard. Så där har vi ett antal projekt på gång. När vi har lanserat och kommit igenom de här initiativen som kommer att ta bolaget in i vad vi kallar för accelererad tillväxtfas så vill vi fortsätta skala bolaget med ett antal nya innovationer. And while we do this, we work with our commercial organization to expand our market reach. And we have already done two acquisitions and strategic acquisitions can come here during our period to complete and strengthen our growth. Så lite kort här i genomgång av hur det går för oss med våra strategiska initiativ. Så vad gäller medicinteknik så är vi just nu på det sista steget. Vi har redan bevisat att GuardSkin för Medical Device fungerar för den applikationen. Det har vi publicerat. And now we are in a so-called ring trial and we will decide to show that the GARD test works on three labs independent of each other for the same substances. And we aim to get this fully included in ISON 2027 and it will lead to a significantly increased demand. We also work with dose-response. Here you can see that GuardSkin can measure where we have a problem. Some subjects are safe in low levels, but you can have problems if you exceed certain concentrations. Dose-response can measure that. You can also measure it on a so-called standalone basis without using other methods. So we have sent in a first application to ECWAM, which is the EU authority that recommends test methods to OECD. And here we are also working towards a timetable where we hope that this can take place in 2027. We are working with an expanded market reach. We have, as you have seen before, a very nice wide customer base. We are still working with the fact that we want to have these big global customers so that we can get strong repeat business. We know that the American market will become more and more important in animal-free testing. There have been signals, as you can see in the fact sheet on this picture, that NIH and FDA both come with signals that they want to go over to animal-free testing. We know that this is going to happen, so we have also signed a distribution agreement with an American CRO, Eurofins, in the USA. Furthermore, we have these scientific and technical collaborations with the major customers, such as Clarins, Bic and Sunova. In parallel with this work, we know that we are working with a slightly broader test portfolio, because we want to hook up complementary tests to GuardSkin. Here we have implemented Epicense A, which is a skin-sense test. During Q4, we worked with getting this production step for Epicense inside the doors, so that we can lower our product costs and increase our gross margin. and we are preparing for further complementary methods that we will implement on the sensor. VitroScreen, there we have a number of Aura models and the one that we got commercial interest in in 2025 was the Cartilage model. It is a sample model where you can look at things, for example, in medical applications. As I said, we got an initial order in 2025 and we also have several prospects in our pipeline. Vi fortsätter att arbeta med ett antal andra endpoints som ska kunna bli metoder på lite längre sikt. Fotosensibilisering, där man utsätter substanser för huvudljus så att egenskaperna ändras. Men även inom genotoxicitet, neuro- och utvecklingstoxicitet. Vi tittar förstås på att kunna få en hävstång på våra kunskaper inom AI-maskininlärning och så kallad in silico screening. Tillväxtfasen är lite grann fram till 2025 förstås. Vi ska kortsiktigt, där vi är nu, befinner vi oss i vad vi kallar break even fasen. Vi kommer att ha break even och genom strikt kostnadskontroll så att våra Våra medel räcker till att slutföra de viktiga projekt vi har som kommer accelerera tillväxten i accelerationsfasen där vi tror att marknadsefterfrågan på våra tester kommer att fördubblas och vår lönsamhet kommer att öka framför allt genom Medical Device ISO-inklusionen. And then we have several options to scale the company within new methods within the USA, perhaps to get a FTA approval on the MedTech method. And in addition to that, we can then carry out strategic acquisitions. So, we see the indicative sales impact looks like this. We are now entering 2026, we expect growth, we expect break-even. We expect that by 2027 we will enter a stronger growth phase, a significantly stronger growth phase, and that we can then continue to scale it up with new methods when we come to the end of this period, 2030. Vi tycker det här är en jättespännande plan och jätteglad att få jobba med och implementera den här. And someone who has also joined us on this journey, which we announced this morning, is that we have a new large shareholder in AFL Investment Group, which we are very happy to have joined Sensor again. This strengthens our ownership structure, our ownership base, with a large international institutional investor. AFL Group, an independent international institutional investor, 7 billion euro, asset under management roughly, and has a long-term, sustainable investment focus. We have implemented a targeted emission of about 17.5 million kronor to AFL, or we get in 17.5 million in the company. And with this, we get an owner who is completely with us on our long-term vision. And it will strengthen our opportunities to deliver this 2030 growth plan. And maybe also potentially accelerate some of our initiatives, at least what we will be working with now in management on the CEN side. The capital that we now add, we will use it for support our commercial scaling, our strategic initiatives and the expansion of our regulatory test portfolio. But I want to emphasize that our basic plan with break-even phase, acceleration phase and scaling phase is the one that counts. But with this owner and these funds, our chances of succeeding in this have increased quite a lot. And if you look at our top four shareholder lists in Sensei, you can see that it is starting to get a slightly different shape than it has historically. Now we have AFL Investment Group at 9.2%. Then we have ShapeQ, which joined us one and a half years ago, which owns 6.7%. ShapeQ is also en institutionell ägare som investerar runt om i Europa i techbolag. Jag är ägare på Ålandsbanken med 5,3% och sen har vi Carl Borgebach som professor och grundare med 5,2%. Vi har ett citat här från Loran där han poängterar att Sensagen är ett bolag man följt under lång tid och man ser våra styrkor inom djurfri testning och delar vår syn på att djurfri testning kommer att bli mer och mer viktigt och efterfrågan kommer att öka på regulatoriska pålitliga test och där ser de att sensorien har en stor teknisk fördel och en resa de vill vara med på. So, we are very happy with this deal and welcome Eiffel on board, together with other shareholders who have been traveling for a long time. And that was my last picture. I want to thank you so much. I also want to go back to Q4 and what will happen here in the future. The message is that we start 2026 stronger than ever. We have a record large order book and we have a lower cost base. And we have good interest for the interest of the company. And now also a strong headowner behind us. So we look forward to delivering growth and profitability in line with this growth plan that I showed you before. Thank you very much. And with that, I'll hand it back to you, Rodney. And we can see if there are any questions.

Thank you, Peter. Yes, we have some questions from the web. But I'm going to start with a few questions myself. And you just talked in the report about the tougher first half of the year that then returned during the second half of the year. What is the main reason that you managed to turn development in 2025?

We have managed to land more buying customers, received a number of larger orders, which we did not have in the first half of the year. Among other things, I am talking about orders of 1 to 2.5 million kronor in the USA. And we have become much better at selling complementary tests to Guard. So that is the main reason why our strategy has simply succeeded a little better.

You also end the presentation with a very optimistic tone. I have never heard it so optimistic. You say that the company stands stronger than ever. So you still feel confident that this turn will continue. What makes you so confident for 2026?

It's the things I told you about Rodney. I know that we have a very good customer base, and we have expanded it to 19 new international customers. And we know from several years that we have a very high return pattern, with over 80% of customers returning. So in combination with the fact that we have lowered our total cost level and have a larger order book, than one year ago, we are almost doubled up. So that's what makes me feel so optimistic. We can also add that now the balance sheet looks even stronger than it did before.

Yes, Gaal is doing very well, but I thought Wittroscreen, there you have had some challenges here in 2025. What measures have you taken to turn the trend there?

We see VitroScreen as a very important complement in our group, where we get effect tests. And you can also see that we have good cross-selling within the group, so that there is this interest among the customers, also for VitroScreen's solutions. What we have done is that we have built up a commercial organization around VitroScreen, which did not exist before in the same way, and it was a more easy-to-owner company. So this takes a little time in our industry. We usually talk about six to 18 months of sales cycle. But now we have built up a much more solid and strong sales pipeline. We have worked a lot with marketing and sales. We have a new website in place, among other things. And we are now in the recruitment phase of new sellers. The second step is that we also want to get better efficiency in vitro screening. Therefore, we implement GARD, which we have a constant and large demand for, so that they will be part of that burden. This will also make it a little easier for us to carry out all these growth projects that take up laboratory resources in Anspråk in Lund. So in combination with the commercial side, the scientific side, the technical side we have worked with, it is that we have lowered the costs by lowering management costs and placing them instead of operating resources.

Toxa, on the other hand, is doing very, very well. It is almost 10% of the sales there. What is it that you have succeeded with that makes it possible for you to get that kind of speed in sales?

Vår vd på ToxHub, Carla Landolfi, är en väldigt skicklig toxikolog och rådgivare och har också en bakgrund inom läkemedelsindustrin. Vi har jobbat tillsammans mycket för att hitta rätt i vad ToxHub ärbjudande är och vilka kunder vi kan gå till. And that has given fruit. We worked a lot with that already in 2023 and 2024. We got a little worse in 2024. And that's starting to bear fruit now, this work. Again, it takes a little longer effort in this industry as you start to see results afterwards. So that's the main reason. Then I also started to take advantage of the fact that it's a good company. It's an Italian company, the main customers have been in Italy, but we're starting to get customers outside of Italy now. It's a lot because you're part of an international group.

We have a few questions from the audience here, Gustav Meyer. But before that, I thought I'd have a few questions about the costs. Because if you look at the whole thing, the cost falls quite seriously if you adjust for the currency. So can you develop when you manage to lower the cost even though the company still grows?

Yes. As I said, we have had a very large cost focus in all three companies. I have already mentioned VitroScreen, where we have reduced the management costs compared to more operational personnel and still reduced the total image. And then we have increased internal efficiency. Vi gör fler tester, men med färre människor. Det är ett medvetet jobb kring vår testprocess som vi har jobbat med under året. Det finns inga andra förklaringar än att ha fokus på kostnader, hitta kostnadseffektiva alternativ och jobba med effektivare processer.

When it comes to the costs, they went up here at Q4 and you also talk about negative currency effects. I think that if the crown is stalled against the dollar and the euro, then your costs should be benefited by a stronger crown. But you talk about the fact that the currency has increased costs. Can you explain the driving forces behind that?

One example of this is that we basically invoice everything in euro or dollar. And then we get, so to speak, the income arises when we calculate the income, which is often in connection or around our invoicing. Then we get paid a few days later. With large groups, it can take 30, 45, 60 days. And when the crown is strengthened in that window, we get a currency loss and it shows quite a lot on us. Therefore, we have a resistance to the costs when the crown is strengthened. At the same time, we have a little cost base in euros as well. We can't blame the currency in the future. Our goal is to run a good company that is profitable regardless of how the crown looks.

But is it actually a financial cost because the invoicing is reduced, but that you provide as an operational cost? Yes, that's exactly what it is. We have some questions here from Gustav Meyer on Redeye regarding the order book. How long does it take to convert the order book to a reported payment?

It usually takes about eight weeks.

So relatively fast then. And what does the order value look like for the average new customer compared to recurring customers?

I can't tell you the exact figure, because we're still calculating. But in general, last year, the repeat customer was a bit lower than the new customer. Usually, you do an evaluation first, and then you follow up with a smaller order later. So I think you have to look at the order value per customer and year.

How many tests were carried out during 2025 compared to 2024?

We recently looked at the number of studies that we did, i.e. tests. You can include one, two or three tests in a study and that has increased a lot. A bit over 300 studies in 2025 compared to a little over 240-250 in 2024. So it's a big increase in the number of studies. However, the number of tests is more in line with the average grade sales increase, which was 13% adjusted to the currency throughout the year.

Okay, thank you. Good. There were no more questions from the audience yet, but you are welcome to send them in if you have anything. I was just thinking if we could talk a little about Eiffel. It's a French fund, as you mentioned, with around 75 billion kronor in administration. It's a big fund. But why, because they have invested in several other Swedish companies as well, but why did they get an interest from you? What made them want to become your main owners?

Eiffel is looking for investments in growth companies, not just in life science, but also in technology. And as you say, they have invested in a few, or chosen a number of Swedish companies. In a company I myself was CEO of earlier, which they also own in Probi, among other things. And that they invest in Sense again, and that they do it in this situation, There are a number of things that fall within their selection criteria. So it's about technology that can be completely leading in its niche. We see that with Guard. And it's about macro trends in animal-free testing, transition from animal testing to animal-free testing, which is a field they have noticed is growing. So those are the two things they think we are fulfilling. And then another thing we talked about is that they also invest not as early as possible, but you invest when you have a proven commercial

They are obviously a long-term owner, but have they also announced some of the owner's ambitions? For example, board representation or something else? Is that something they have communicated?

No. Normally, if you look at the companies that Eiffel is in, they are not directly represented in the board of directors. It is not the case that I see that they have historically worked or have worked now in the last years either. On the other hand, they tend to be active in the election preparations that are held in connection with the fact that they have a high shareholder. And they are also very professional and follow the company closely and will certainly be in these webcasts in the future. And they were there to ask questions to us.

Okay. If you look at the liquidity, now you get 17.5 million more and you already have, as you mentioned, a strong balance sheet with a large cash flow. So if I calculate correctly now, it will be somewhere around 45-50 million there now in the future. And you are more or less cash flow neutral over time. So the question is, what do you think this liquidity can be used for?

Yes, but okay, so we can bend this a little bit. It's correct, we already had earlier, without this liquidity, we had a good financial position with a burn rate that has dropped here over the years. But we also have growth initiatives underway. And when we go into these ring trials and so on, then we will need to pay them. But even with that said, on our capital market day we said, and I stand by that, that we had enough funding to carry out our growth plan. So with Eiffel... The media that comes in gives us the opportunity to further strengthen our activities and ensure that they are carried out. We will also look for opportunities to accelerate them because there are such occasions. We will go through management now when the business is in place. It's about having a better implementation within R&D so that we get through with these big, heavy growth initiatives we have. It's about our commercial capacity to continue to take care of customers, find new customers. And then this licensing and insourcing of complementary testing methods has proved to be a good complementary way for the company to grow. So that also gives us better opportunities to look at such projects now. So all in all, with Eiffel we get a very strong, nice, institutional, international headowner and we get an even better opportunity to execute on our growth plan.

Mm. Mm. Mm. Mm. Mm. Mm. Mm. Mm. Mm.

Mm. Mm. Mm.