Vimian Group AB (publ)

We'd like to start our call by going through a couple of highlights. First of all, we operate in a solid market, and the growth continues to be robust. We have made a decision to reduce our AOTP program this year, which is in our MedTech business, where we are normalizing and facing our revenues throughout the year. This is to match the customer's consumption with their deliveries. and to streamline our supply chain and to be able to operate our business with lower working capital, both in inventory and accounts receivable. This change and this offer to our customers to move from annualized order programs where they would buy a full year consumption at the beginning of the year to switch over to a quarterly or a monthly order pattern has impacted our first quarter growth in our MedTech segment. This has no impact on our full-year revenue, and the gap that was created in Q1 will be fully recovered throughout the remaining quarters of the year. We have strong momentum both in our vet services business and in our specialty pharma business. Both of these businesses are delivering a robust double-digit growth. If we look at our customers in our medtech segment, that has never been participating in an AOP program ever, that group of customers are also growing by double digits. In March, we announced new financial targets, our adjusted EBITDA above 300 million euros by 2030 and our net leverage of 3x or below. Those are good targets and we also look forward to execute and deliver on those. We also did a rights issue with 1.6 billion so that we have opportunities to go after and finance value creation acquisitions. We also announced our intention to list on the main market. I'd like to thank our shareholders who participated and for your support in this process. We look at the next slide here and maybe talk about a few things more in detail. The first quarter organic growth came in at 1%, driven by the reduction of the annual order program in our MedTech business. We had an additional contribution of 3% from acquisitions. We also did a small bolt-on acquisition in our MedTech segment. There's no impact of this for the rest of the year, so we have a facing on MedTech. Our EBITDA is down to 26.3%, and this is a direct result of the reduction of our AOP program. Our specialty pharma, vet services, and diagnostics business delivered on the plan that we had for those businesses in the first quarter. And as you can see on this slide here, the light blue depicts the change in the AOP program that was a 10 million euro program in the first quarter last year that was reduced to a 5.5 million euro program in 2024. Moving over to our specialty pharma segment, we grew 11% there. And it was driven by our US specialized nutrition business and our European allergy test and treatment business. As we've mentioned before, we're focusing on driving organic growth through cross-selling products into new geographies and new channels. And we had a significant contribution of growth from those initiatives in the first quarter. Our margins has been stable over the years, and we had a solid 17% EBITDA growth. Going to our maybe R&D and innovation track for specialty pharma, we launched 13 new products in the quarter, and our new allergy vaccine is progressing well, where we have initiated studies on client dogs during the first quarter, and so far it's progressing very well. All in all, we see continued good positive momentum in our specialty pharma and foresee this business to continue to have very healthy growth going forward. Turning to our medtech segment, the result of the decline in the AOP program is resulting in an organic decline of 12%. And it's solely described by the U.S. and by the AOP program changes there. Again, we are matching the customer demand with our deliveries, and it gives us an opportunity to reduce the volatility and increase the visibility, transparency, and predictability of this business. A lot of our customers that were offered a transition here took advantage of it, so they are now on a monthly or a quarterly order plan, and that transition went a lot quicker and faster than we had anticipated. The AOP program is still available for customers who would like to order a full year volume at once. Look at outside of the US, in Europe, in Asia Pacific and in Canada, where we do not have an AOP program. The customers there and the revenues there have been delivering a high single-digit growth for the first quarter. We have good underlying momentum in this business and These facing changes in the first quarter will have no impact on the full year revenue. Going over to veterinary services, organic growth here is 15% and it's healthy growth across all of our geographies. It's predominantly driven by new member acquisition. We welcome 350 new clinics during the first quarter. We have a good conversion of membership into a higher level tier. Our co-owned clinics are also progressing and developing very nicely. They're growing ahead of the market. Our margin development year over year was up 170 basis points and a solid growth of EBITDA of 28%. We see a stable and very positive trend in our veterinary services, and we foresee that this business will continue to deliver outstanding growth in the future. Ollie, who is joining us here today, will spend more time talking about some of the exciting growth opportunities that we have in this part of our business for the future. Going into our diagnostics business, we have a decline of 6% here, and this business is operating in an end market that has been a little bit tougher than all the other markets that we're operating in. The amount of disease outbreaks has been low during this period, and that impacts the need for testing. We're continuing our efforts to diversify our portfolio in the diagnostic segment, and we're diversifying into the companion animal space. We are launching our AI-enabled parasitology platform for our companion animal here in the second quarter. And we are going to reinvest a larger portion of our earnings generated out of the core of diagnostics into further diversifying and growing our footprint into the companion animal space. So we foresee that our margins in this business will be lower than it has been traditionally because of this reinvestment into diversification. We turn to our the ESG effort. Our strategy here is centered around our people, animals and our planet. And we continue to focus on ESG and we're making good progress here. In February this year, we achieved a higher rating by MSCI. We got an A rating there, which we're very proud of. And it was driven by two distinct changes and improvements. We did one around people development and the other one around our governance. We also released our sustainability report for 2023 here in April. And this slide, as we're showing here, is pretty busy, but I want to highlight a couple of things of importance here. More than half of our leaders in Vimeo are women. We trained 15,000 professionals in the healthcare space, animal healthcare case last year. And we launched 111 new products that improve the health of animals. We've also established a carbon reduction plan for scope one and two emissions. And for the first time, we reported on our scope three emissions as well. And during this period, we've also taken the opportunity to bring ESG criteria into our M&A and due diligence processes so that we have that as a basis also for evaluating new acquisitions. We're a young company, we're fast growing, and we're very proud of the achievements we have done so far, but we recognize we're in the beginning of a journey here and we will continue this important work and strongly committed to drive really positive change for our people, our animals, and our planet. And with that, I'd like to thank you for your attention and hand it over to Carl Johan who will walk through our financials in more detail. Over to you, Carl Johan.

Thank you, Patrick. And let us dive into the numbers and move to the next slide, give you some further details on the first worker. The adjusted EBITDA amounted to 24.1 million euro at the margin of 26.3%. The first quarter margin is, as Patrick said, negatively impacted by the reduced annual order program in Medtech. We report operating profit of 13.4 million euro down from 18.5 million last year, mainly a result of the annual order program impact well as the higher non-recurring items of 5.1 million euro relating to acquisitions and the us litigation the net financial items of minus 7.9 million euro consists of three parts the first element being financing costs of 6.5 million with an average interest rate for the quarter of 6.7 percent secondly contingent considerations where we have a net negative impact of 5.8 million. The quarterly discounting impact amounts to 1.8 million, and the negative impact from probability adjustments amounts to 3.0 million, reflecting the strong performance in global one pet products and vertical vets. And finally, a positive impact of 3.4 million from exchange rates. The income tax expense for the quarter amounted to 1.8 million euro. And all of the above resulted in a net profit for the quarter of 3.7 million euros. Turning to the first quarter cash flow, where cash flow from operating activities reached 11.2 million in the first quarter. And it's positive that we continue to see an improvement in cash generation in our businesses. Networking capital amounted to 75.3 million at the end of the quarter, equal to 22% of revenue, which is an improvement in relation to sales from same period last year. Compared to end of December 2023, inventory declined by 0.6 million, driven by continued inventory reduction in MedTech. Accounts receivables increased by 11 million as AOP revenue is paid in installments during the year and US specialized nutrition build up trade receivables after strong growth in March. Accounts payable increased by 6.8 million in the quarter. Cash flow from investing activities was 6.1 million, primarily reflecting capital expenditure of 3.9 million and acquisitions of 2.6 million is an acquisition of veterinary transplant services DTS in Medtech. The capital expenditure is split between 2.5 million investments in intangible assets and 1.4 million investments in property plant and equipment. The main areas for investments are capitalization of R&D and expansion of laboratory capacity in specialty pharmaceuticals, investments in manufacturing capabilities in Medtech and development costs related to the vet family platform in veterinary services. Cashflow from financing activities of 4.1 million include the 3 million repayment of debt. Moving to the next slide, looking at net debt and leverage for the quarter, where net debt amounted to 287.4 million, with leverage of 3.0 times, which is a similar level as the previous quarter. Cash and cash equivalents amounted to 38.1 million at the end of the quarter. External lending of 301 million, broadly in line with 302 million per the end of December, as repayment of 3 million was offset by unfavorable currency movements. With the funds from the capital raised of slightly above 140 million euro received in April, The leverage has come down to 1.5 times. During the first quarter, we also signed an amendment to our bank agreement, adding another 70 million to our existing facilities. The capital raised together with the amended bank agreement had put us in a good position to pursue strategic value-adding acquisitions. Now handing over the word to Olli for a deep dive into veterinary services.

Thank you, Kali-Oan, and good morning, everyone. I'm here today to give you a short overview of the veterinary service segment within Vimian Group. Vimian Veterinary Services, or VetFamily as we call it, is a global leading veterinary service platform, currently supporting over 7,550 members across 11 markets. Historically, predominantly being a Nordic procurement organization, we have, during the last years, transformed the business with a wider set of key services, as well as offer a vibrant community for our members across four continents. We also partner with most of the leading animal health companies of the world, allowing them to in an efficient way access and engage with our members. Being an independent clinic is challenging and overwhelming, especially with all the non-care tasks you need to address. Today, vets spend around 50% of their time on non-care related work. Through the services of the family, we help our members overcome the non-care task and allow them to focus on the core of their business, the pets. Our mission is to empower the independent veterinarians of the world to stay competitive and relevant in a fast-moving and changing environment. Therefore, we continuously invest and develop our platform to enhance our support for our members. Our revenue streams can on a high level be divided into three main areas, all benefiting from each other. Within partner services, we have commercial agreements on local, regional and or global level with key industry partners, giving our members the benefit of scale and our partners an efficient way to access and engage with our vibrant member community. Approximately 40 to 50 percent of our revenues comes from partner services. Within clinic services, we offer value-add services our members use to evolve their clinics and develop their ways of working. The longer we've operated in the market and the mature the market is, the more value-add services we tend to offer. 20 to 25% of our revenues come from clinic services. Within clinic operations, we currently run a co-ownership program with 11 clinics. We see these clinics and entrepreneurs as innovation hubs that gives us the opportunity to develop and test new ideas within important focus areas, benefiting our entire membership ecosystem. Our clinic operations stand for 30 to 40% of our revenues. Looking at our development and achievements since the IPO, we've more than tripled our revenues with a revenue CAGR of 51%. We have increased our membership base from 2,600 to over 7,550 member clinics. We've gone from seven European countries to 11 countries across four continents through acquisitions in Australia and US, as well as organic entries into Brazil and Belgium. Our global reach has increased our relevance with our partners and with the larger number of clinics now supporting, we've changed our one-size-fits-all approach to a tiered and tailored offering, better meeting the needs of both clinics and partners. We've done focused investments into capabilities within digital, data, and insights, evolving our service offering and relevance, and we have invested into our organization, bringing in additional key talent and prepared our team for accelerated growth beyond our current achievements. We are the only company doing what we do at global scale. And I'm very proud of the development we've had as an organization since the IPO. But we're far from done. There are several avenues of growth we're pursuing and the need of our services increase for every day that passes. We can continue growing by adding new member clinics within the 11 markets we currently operate in. We can expand our service offering to existing members and partners. We can expand organically into new geographies, which we have a proven track record of, and we can leverage our M&A ability to support and accelerate all avenues of growth, as well as utilize Vimeo's geographical and industry footprint. The growth we've enjoyed so far shows the value our services bring to the independent vet community, and I truly believe we will continue to play an important role for our partners and member clinics around the world. Thank you.