VibroSense Dynamics AB

Yes, hello and welcome to today's webcast, where VARBUSN's part-year report for the period from October 1st to December 31st 2023 will be presented. My name is Tony Speidel, I am CEO and co-founder of the company. Today I have Hans Wallin, the CEO of the company, with me. The presentation will take about 15 minutes, after which it is time to ask questions. You can do this by clicking on the chat icon or Q&A. For those who don't have the opportunity to see it all or have missed parts of it, the presentation will also be posted on our YouTube channel, so you can watch it afterwards. So, this will be recorded. And with those words, I'll hand it over to Hans.

Thank you, Tony, and above all thanks to all of you who took the time to listen to us. We appreciate it very much. As usual, I will I'll go through a little slide deck and then, as Torne mentioned, it's possible to ask questions afterwards. The main points of today's presentation follow a pattern. I will comment on the part-year report and summarize the second quarter and also go into the outlook for the rest of the fiscal year and note that we have, as you probably know, a broken fiscal year from the first of July to the last of June. Vi har två slides som jag alltid brukar börja med ifall det finns människor som folk som inte har lyssnat på oss tidigare och vet exakt vad vi sysslar med. Det kliniska problemet som vi adresserar kallas periferneuropati, eller om vi ska ta ner det på jorden, närskador i händer och fötter. Vi jobbar inom tre stycken kliniska områden eller affärsområden för oss, diabetes, vibration eller HAFs, hand-on vibration syndrome, och onkologi. And before these areas, there are an incredible number of people who are affected by peripheral neuropathy, nerve injuries in the hands and feet, and very many also who are in the risk zone to get this. So it's a big problem. The problem in healthcare today is that this type of nerve injury is discovered too late, and it often has very devastating consequences for those who are affected. The reason for the delay is that the clinical methods, the instruments that are available, are too insufficient and unspecific. And I want to be clear that this is not something that we claim, but this is what we say ourselves within healthcare, not only in Sweden, but also abroad. We use the same type of instrument in principle everywhere. For those who see the presentation on the web, you have it down to the left. What we use today is a stem gaffer or monofilament. There is also something called a biotesiometer. These instruments have about 50 years on their necks. There is a great need, a pronounced need within the health sector from staff to be able to work with better and more precise analysis methods and instruments. So there is a window on the market. There is a possibility. There is above all a need, as I said. There we will introduce our product, and our solution to this is the product we are working with, VibroSense Meter 2, and the software applications that we use for different clinical indications. The solution we have and offer, the technology is called multi-frequency vibrometry, and it is something that we ourselves have developed for a long time, a lot of studies behind it, and it has been developed in collaboration with Swedish healthcare and Swedish research. The easiest way to compare it is to do a hearing test on the skin. I'm not going to go into too much on the products now, but with our product, with our technology, you can identify very early and also follow up with time to clarify injuries, and this is a big advantage within healthcare. If we go into the last quarter and look at the figures we have achieved, both when it comes to sales and costs, In fact, the net turnover has increased for the sixth quarter in a row. And when I say the sixth quarter in a row, it is a comparison with the same period preceding the fiscal year. We have a stable trend where we are growing. The turnover during the second quarter increased by over 22% and accumulated during the first two quarters 2.7%. Still relatively small figures. We have higher ambitions. We will grow more. But it is important to have these figures with us. We still have a very good control over what we do and how we spend our money on company deposits. Income comes from sales, as most of you probably know today, from the instrument, every license that is not two, but also from running licenses and rental payments, which is a base, an important base for us. Every new instrument we put on the market, we either have a license or a rental income. And this builds our base also in recurring factors, which is very important. What we call FHV, company health care, is still the largest source of income where we come from. But diabetes increases and stands for an increasingly large part of the company's net turnover, about 30% today. So as I said, a very stable and up-and-coming sales trend, and we are happy to be able to deliver this quarter as well. If we go into the business area of diabetes and a little summary, Over Q2, the first two steps, step 1 and step 2, we always choose to keep here so that you can know how we work. We work a lot to establish heavier reference clinics. It can be a private clinic, it can also be the public health. And what we call KOL or Key Opinion Leaders, those who are heavy and normative within, perhaps diabetes in this case, within the health system, as the rest of the health system listens to. En av de viktigaste milstolparna i bolaget för sig i historia faktiskt och absolut under förra året och det sista kvartalet är att vi den 20 december skickade in en ansökan avseende regulatoriskt godkännande till den kinesiska myndigheten NMPA. Det är ett krav för att kunna sälja produkten i Kina och på alla marknader att man har ett regulatoriskt godkännande. En väldigt viktig milstolpe när vi får ett godkännande så innebär det att vi kan börja sälja produkten i princip omedelbart. Så spännande för oss och som sagt väldigt, väldigt viktigt. Vi har också registrerat produkten i England. Orsaken till det är egentligen att vi har fått förfrågan ifrån en väldigt duktig professor, en högt ansedd professor, som arbetar vid University of Exeter och som har börjat forska med hjälp av vårt instrument. Det föranledde att vi var tvungna att ta det steget i England. Väldigt positivt, för nu har den marknaden också öppnat för oss. Vi har möjligheter att sälja där. Jag ska inte säga att vi går in och aktivt the British market, but it opens up opportunities for us, and we have gotten some contacts that we have to see where it takes us internationally. And as everyone knows, the international market is important for us, for us to get a quick expansion, a faster expansion as well. As with Aron, good events continue during the quarter. We have delivered new instruments, including Sweden, There is one more instrument in Stockholm, which now has two of the instruments. You are obviously very pleased with the first delivery last summer and use this routinely in your clinical work. There are two different departments, two completely different clinics. Sofiahemmet, for those who do not know it, is a private clinic, a paraplegic hospital in Stockholm. where different clinics exist in different categories, different clinical indications, but a very, very, very heavy and important reference clinic that you, in many clinical indications, want to have as a customer. When I worked with Osteopathy before, it was very important to have Sofia at home in Stockholm, so we are proud to be able to deliver instrument number two to them. We have also talked about Skånes University Hospital in Lund. They have had as many of you probably know, one of our instruments, or two of our instruments, for a longer period, but have now officially confirmed and made a decision to introduce the procedure, the Diabetes Code Screening, in their daily clinical activities. So it's also a very important milestone for us. That we can go out now officially and work with those who are reference customers. And we have made the decision to rely on what we do, on technology. And this is one of the absolutely largest, most important, most well-respected clinics that exist. I would say not only in Sweden, but definitely in the Nordic countries and also in Europe. So very important for us. We also have further discussions with a number of new clinics within the private sector. And when we say private sector, it is for example in likeness to Sofiahemmet. So, very important for us. Our resource in Germany, and with resources, it is a person who works with sales, to work with a larger number of clinics during the quarter that has passed, so that we can meet potential customers. And we have begun to look at the possibility of also expanding this work to other regions. We are still working in southern Germany with this, to be able to limit ourselves to a strong focus. But we are looking at opportunities to extend this to northerly parts of Germany as well and be able to do the same thing to get a little better pressure. But it will be more if it takes longer. Very exciting for us at least. HAFs, Hand Arm Vibrations Syndrome. Avalova, as you know, Avalova Health in Sweden, one of the three major actors in corporate health, is still of course our most important customer. They use our instrument, they have a larger number in their network in Sweden. We had an exhibition in Gothenburg on the 26th of January. Tony, who is with us today, was up in Gothenburg with another colleague. I think it was 800-1000 people from Abanova around Sweden who were there at an internal meeting. We were one of the few suppliers who were invited to exhibit our product. Tony and Per, our other colleague, had it worse for three to four hours and did a lot of measurements, vibration measurements on Avonovas staff, had good interaction with them and they are still very, very interested in this instrument and continue to work with it. So it is a heavy and important basis for us. And we also see that we need and will also do to step up our activities during the coming months within company health care on the Swedish market. This is important for us. We talk a lot about diabetes in these presentations, but I want to be clear that we have absolutely not forgotten company health care and vibration damage, because it is an important area for us. For those of you who have listened to us before, I hope you recognize some of this. We have a plan to work on. We are aware of the goals and focus on those activities, but we also adjust along the way. We are working towards scaling up the company and increasing revenue, both with national and trying to find national cooperation partners for distribution and sales. We are not aware of this, but we are working on it. As I said, we are looking at new activities within company healthcare that we will start to roll out within the coming months. We have three geographical areas that you probably know that have priority. It is the Nordic countries, not just Sweden. It is Germany and China that are extremely important to us now that we have started and sent in our registration application. We continue to roll out diabetes screening in the Nordic countries and in Germany, where we work with establishing reference clinics and what we call key opinion leaders. We have a heavy clinic in Germany that we are working with. Lund gave its confirmation now also, very important, so now we have two clinics that are important co-operative partners. And this is what we do to be able to sell our product to further segments of the market, so other clinics in what we call level 2. We have also said earlier that we will invest in Swedish and international congresses, because there we have the opportunity to meet not only caregivers, but also companies that, for example, work with distribution. An example of this is that we have made a decision, and we will be at an international fair, or congress I should say, with an exhibition, leverantören inom diabetes. Den heter ATTD, förkortningen Advanced Technologies and Treatment for Diabetes. Den går i Italien, Florens den 6-9 mars och där kommer Tony och jag att finnas på plats. Så det blir spännande för oss och det är också ett viktigt steg för oss i den här utlandssatsningen som vi är mitt inne i. Sist men inte minst då Nu sitter vi, jag ska inte säga att vi sitter och väntar bara för vi gör många andra saker men nu blir det ett vänteläge för oss att få en återkoppling ifrån den kinesiska myndigheten för lanseringen i Kina. Vi börjar titta på förberedande aktiviteter men som sagt beslutet från den kinesiska myndigheten NMPA kommer att vara väldigt viktigt för oss under de närmaste perioden, de närmaste månaderna. Vår geografiska kundbas As you probably know, we have talked about how it looks now. The Nordic countries, Germany, should add England here, but they don't want to do it yet. It's a clinic that works with the instrument. We'll see where that takes us and what focus we have on the British market. It hasn't been decided yet. My closing words for this presentation today, where I actually started, we have a Svagt skulle jag säga, men ändå en gedigen och positiv försäljningstrend. Den fortsätter och vi ökar omsättningen successivt. Det är vi väldigt glada för. Drygt 32 procent under årets första sex månader jämfört med samma föregående år. Vi har under kvartalet som gått fått nya kunder inom diabetes i Sverige. Vi skruvar upp temperaturen lite i Tyskland framöver. Och vi har en ansökan inne på regulatoriskt godkännande i Kina. i de tre viktiga bitarna under det här kvartalet. Vi är stärkta över den här perioden som har gått, de första sex månaderna, och vi ser att vi ska ha bra förutsättningar att fortsätta den trenden genom hela det här räkenskapsåret som sträcks fram till den sista juni. Med det, tack så mycket för mig. Och då, Tony, finns det tid för lite frågor?

Ja, tack så mycket Hans. Då ska vi se här. Det är ganska många deltagare. Det är trevligt. Ska vi se om vi har några frågor som kommer in här. Det går alltså nu alldeles utmärkt att ställa frågor via chatten som finns längst ner på skärmen. Frågan är, när kommer ni börja sälja er produkt i Kina?