All right. The time is 11:00 A.M. in Finland, in Helsinki, and in Oulu, and that means our Q2 Optomed investor call is about to start. My name is Sakari Knuutti, and we also have on the line and presenting our CEO and Founder, Seppo Kopsala, and CFO, Lars Lindqvist. Our Q2 release came out this morning, and it is available on our IR site at optomed.com. Everyone can unmute themselves by pressing star six. Without further ado, Seppo, the stage is yours. Okay. Pleased to meet everyone here. My name is Seppo Kopsala, CEO of the company, and I will present the Q2 results. I will always say the slide number and you can follow the presentation that way. Going to the slide number three, of highlights of the quarter. We had a strong rebound from the earlier year Q2, so that was significantly affected by COVID. The revenue increased 55% during the quarter. Both segments were growing strongly. Software was recording at 21%, which was a very good number for software segment. Devices, obviously, the comparison period was extremely weak for devices segment, so the growth was a significant 124%. During the quarter, we were now able to publish our new China distribution setup. We have our long-term strategy customer, People's Med. It's a chronic disease management company, and we have been working several years with them and selling them a lot of cameras to be used as part of their services and their software platform in China. That has been the driving factor for our long-term growth in China for recent years. Now we have started scaling up the distribution operations. We signed a strategic distribution agreement with the Sinopharm. The business model is arranged so that Optomed sells cameras to People's and who packages them together with the software and services, and then the Sinopharm distributes the whole solution nationwide in China. That cooperation started in first quarter, and then it continued strongly in the second quarter. Favorable megatrends continue. COVID has had obvious negative effects in lot of our traditional business, but at the same time, it has given speed to telemedicine solutions and AI solutions and home care type of screening solutions. That trend supports our type of products very well globally. Going to slide number four. China, as mentioned Sinopharm, People's deliveries continued to grow strongly there. Sinopharm is a big organization, obviously in China, it's one of the largest healthcare organizations and companies in the world. In China alone, they have more than 1,000 regional sales organizations. Now we are in a process for training those regional sales organizations, and the first couple of deliveries have been made to this new sales channel during Q1 and Q2. Now the training and support is a main focus. At the moment the start has been going according to plan, at the moment it's very, very hard to yet forecast in the coming quarters and coming years how fast the revenue growth can possibly be. For this reason, we aren't able to give any accurate guidance for China for the second half of the year and for the 2022 yet. I think sometimes maybe after six months or nine months, we start seeing how effectively this channel can possibly work and grow. The upside potential is big because obviously Sinopharm is such a company that can potentially scale up our business in a totally new level. USA direct sales performing very well. USA has been recovering from COVID and even though there are occasional new concerns coming from the Delta variant of the COVID, but still so far so good in the U.S. market that America has adapted to new normal in a good way. We continue also building our distribution network. We are hiring sales reps, distribution companies, and working with our strategic reseller partners there. As a third task, we started late last year a significant clinical trial with the Israeli-based AI company called AEYE Health, and our goal is to have our Aurora camera FDA-approved with their AI system for detection of diabetic retinopathy, and that study is progressing as planned. If everything goes according to plan, our goal is that by end of this year, we'll be able to submit a 510(k) application. Time will tell if we can reach that timeframe. As such, so far, so good. COVID, slide number five. COVID continues affecting our business. It especially continues affecting in our traditional distribution channels, meaning traditional sales rep where we meet our distributors in different conferences and they then further go to meet doctors in hospitals. That type of a traditional sales rep is still difficult to do in many countries. Asia continues being affected and there are lockdowns in many of the key markets still continue. At the same time, in some other countries, as earlier mentioned, they are becoming back to normal quite fast. There is a rebound visible so that last year, many clinics didn't buy the cameras, but now they are buying again. Same trend is that of home care delivery operators and telemedicine service providers, their business has increased quite significantly. They are new customer segment which favors especially handheld devices. Overall, it seems that last six months, the market has been gradually opened up in most parts of the world and the trend is expected to continue as the vaccinations are progressing. If there are new lockdowns coming in the key markets, that may affect negatively, especially on the devices sales. So far, we have not seen affecting the software segment sales. That has been very well-performing regardless of COVID. That's because the recurring revenue model from our existing customer base. Going to slide number six, second quarter highlights. Revenue grew this 54.5%. Gross margin was now exceptionally high because we received Business Finland grant or actually they waived one of our old R&D loans. This loan was to support quite many years ago one of our new type of platform experimental development and it turned out that this platform was not at the end suitable for our types of products. That was, I guess four or five years ago. Now Business Finland waived the loan towards this development. That was written as a one-time item in this quarter. Without that, the gross margin would have been 67.4%, which is in a good level and within our targets. Adjusted EBIT was EUR 177,000+. Cash flow was EUR 1.4 million-. That was because the delivery volumes have been now growing quite rapidly in a devices segment, meaning that we have now a lot of work in progress and inventory levels are higher and the customer receivables are higher. Going to slide number seven. First half of the year growth 41%, gross profit growing 51%, and adjusted EBITDA pretty close to breakeven as our targets has been all the time. No big difference. Going to slide number eight and further to slide number nine, devices segment highlights. Very fast growth because the comparison period was very weak one year ago. EUR 1.9 million revenue. Gross profit was EUR 1.8 million, that now included this EUR 538,000 grant from this Business Finland organization, meaning Finnish government. Without that grant effect, the gross margin would have been 62.6%, which is close to typical what we have. Now we had a little bit bigger amount of OEM deliveries again compared to very little amount of OEM deliveries on reference quarter. As a second point, we launched a disposable eye cup product. This is a very interesting product. This has been requested from us by the market for quite a long time. Our handheld cameras, when you use the cameras, they touch the patient's forehead and/or surroundings of the eye with that type of eye cup part. These earlier eye cups, the method has been that you swipe it with alcohol to clean it between different patients. Some customers, especially in USA and other Western countries, they have been requesting this part to be disposable. It took quite long time for us to make it. Even it's a tiny part, a silicone part, but the shape and the feel and how it works, it needs to be exactly right. It has been taking a long time to develop, and now we managed to finally bring it to the market, and there is a good customer demand for that and a real need for that. Our install base is quite big. It's thousands and thousands of cameras in many countries. Once we roll out this product, it can also become a significant new revenue stream for Optomed. We look forward in coming years to see how that builds up. Also we brought to the market two traditional desktop cameras. These are not our own products. Obviously Optomed is a handheld camera manufacturer, but we have occasionally had solution sales deliveries, meaning that the customer buys software system from us, possibly AI solution, and a bunch of handheld cameras. In addition, they do need desktop cameras also in their bigger hospitals and stationary clinics as well, where operators are used to using that. Earlier they have always bought those other devices separately. This providing a standard desktop camera was so frequent request, we decided to choose a camera, make a private label agreement with the provider of this camera, and integrate that camera to our software system. Now we can provide that one as a package to our software customers. They are not expected to make any material revenue this year as such, but in the long- term, they are expected to create lot of solution sales opportunities and new user base and the recurring revenue for the software. That's the purpose of those two devices. As a third point, we received a medical device registration for Aurora in Brazil, now we are starting sales in Brazil as well. EBITDA was EUR 600,000 positive in the devices segment during the quarter. Going to slide number 10 and further to slide number 11, software segment highlights. Software segment has been all the time performing very stable, gradual growth, as long as we just get the new users using our software solutions and they are very sticky customers usually. That once we win a new customer or expand the existing customer systems and the amount of screenings increases, that means that the recurring revenue continues increasing. This was a little bit bigger jump now during this quarter. Revenue increased 21%, gross profit 11%, gross margins remained in a good level. EBITDA went a little bit down from earlier. That was because we have hired now quite many new software people in our company, and we are investing quite much in development of the new software and AI systems. That is reflected in higher operating costs for the segment. In this software segment, we mostly write all our development expenses as an expenses and not capitalizing most of them. Outlook for 2021, slide number 12 and slide number 13. We expect the revenue to grow strongly compared to 2020. Financial targets in the long- term and midterm remain the same, expecting to grow double digits in the midterm and in the long- term, organic revenue growth is targeted to be above 20%. In near- term, the priority is to open the new markets, bring the new products to the market and keep the EBITDA roughly close to the break-even level in the short- term. In the longer- term, as the revenue grows, as the main investments have been done, then late eventually the EBITDA target is to reach above 30% levels. For balance sheet and cash flow, I give the floor to our CFO, Lars Lindqvist. Thanks, Seppo, for always letting the most exciting slides go with me. Okay, slide number 15, balance sheet. It's not any huge variances that happened in the quarter. Equity ratio is still solid. Borrowing EUR 5.8 million versus EUR 6.6 million last year. As I said previous calls, that is a good balance, we believe, between equity and borrowings. Net working capital has increased EUR 4.8 million versus EUR 3.2 million, explanation being the strong sales that we had in basic POS segments of mainly in devices, also late in the quarter. Interest-bearing effect of -EUR 2 million versus -EUR 5.2 million last year. Over to slide 16. Cash flow from operating activities amount to -EUR 1.4 million, and the increase in working capital is due to higher product delivery volumes, as Seppo mentioned, and increased trade receivables, especially in China. For more details, you can go to our website and see and follow the balance sheet and capital details. Okay, back to Seppo. Okay. Thank you, Lars. Then finally, as a summary, slide 17. Optomed is in a stage of opening the new market. We are actively expanding to new geographic markets, meaning especially USA, we are opening now Latin America after Brazil registration. This is the direction where we look to grow. We also expect and hope that our new sales channel in China will deliver the growth and lead the growth in Asia as well. Another dimension of growth is that we are pushing the retina screenings towards primary care. More and more our customers are primary care operators and different type of telemedicine and home care operators. They are the locations where we believe retina screenings will be done and should be done in the future. That's a new tool also and type of market. There are a lot of primary care clinics available who are not yet doing the screenings and that's where we are looking to grow. Eventually the third is bringing AI-integrated health screening to the market. AI is in early stages, but COVID has been speeding up the take of AI significantly. It is still not a significant part of our revenue, but we hope to build that as a major part in the future. Most of the market estimates are suggesting that within next five years or so AI is expected to make a significant breakthrough in the field of ophthalmology and other areas of medicine and we are looking to be in the forefront of that change. With these three directions, we expect to reach our growth targets in the long- term. That was the presentation of Q2. Happy to answer questions. Remember, you can unmute yourself by pressing star six. Yeah. Hello, it's Pia Rosqvist calling from Carnegie. Can you hear me? Yes, very well. Yeah, good. I have a lot of questions. If we start by discussing the device sales, can you quantify, in volumes, units or then in sales, how much of the Q2 sales in devices came from the OEM channel? It was a vast minority came still from OEM channels. If you look at a couple of years back in history, most of our sales was OEM sales, but then the COVID changed this thing around and the OEMs went very low during the COVID time. They started a little bit recovering on a Q2 this year, and the recovery proceeded on a Q2. It started early this year and then the volumes continued to grow on Q2. OEM sales is very far away from our best years. That channel is nowhere near recovered to historical levels. Okay. Thanks. The strength in software, that surprised in the second quarter again. Q1 was strong and now Q2 continued with a growth of over 20%. First of all, where exactly does the software strength come from and is it fair now to expect that the software growth in 2021 for the full year is double digits above 10%? I think there was a couple of exceptional bigger deliveries, bigger than normal deliveries that happened during Q1 and Q2. Maybe there was a little bit order backlog from COVID times. We were not able to make all the deliveries in 2020 for the software solutions as in a normal year we could do. At least the last couple of quarters there has been a couple of bigger deliveries and they're larger than normal. It may be that maybe not this fast in coming quarters. Hard to say yet. The trend has been positive, and also all this telemedicine and AI take-off activities have been speeding up as mentioned, but maybe this is a little bit higher than expected growth also for us, what we have seen. Okay. If we continue jumping to a completely different subject, the coronavirus pandemic is challenging now in Asia and particularly in Thailand. How is your production at Fabrinet working? Do you have any issues with the production or component sourcing, et cetera? So far, nothing has affected our production and supply chain. We need to make extra work compared to normal situation to make sure that situation remains good. We have a couple of more people than normal working, and we are using also external help. That creates more like a little bit extra costs, but so far it has not limited our production, I'd say. Okay. All right. Your comment regarding ramping up sales in China with your new partner during the next 12- 18 months. Can you in any way quantify the level of costs of so-called extra or non-recurring costs you expect on a quarterly level from ramping up sales? Yeah. There are obviously staff costs. We need people to train and support. They need to travel quite much inside China to meet these sales organizations. There are marketing costs, so we are participating in promotional activities. There are doctors' education costs, those type of things. Also we have needed to make some arrangements for our old distributors because now we have exclusive channel in China with this People's Sinopharm cooperation, so that we have needed to clear some of the old distribution agreements, and there are certain costs involved for those as well. We are talking about maybe some hundreds of thousands per quarter level costs now, which have been now occurring and maybe occurring still some quarters more. Okay. Very good. Thanks. I have a final question. Yeah, it's regarding your net cash position. You now have a net cash position of EUR 2 million, and taking into account your growth investments, should we expect you to need to turn to the equity market in, say, next year or 2023 to ensure that you have enough financing to continue to pursue your growth strategy? We have to now see how actively we want to proceed in certain type of activities. We are, for example, nearing the time when we believe that we can get this AI FDA approval for the USA. That may, for example, trigger the need to raise more capital, but the decision so far has not been taken yet. Okay. All right. Good. That's all from me. Thank you very much. Thank you. Hello, this is Gergana from Redeye. Can you hear me? Hello. Yes. Hello. I have a question about the Aurora IQ camera. How do you see the sales developing? That continues on track. Yeah, we didn't write very much about that product in this quarter report, but I guess they're quite close to the expectations. We are selling it through the distributors, and new users are signing up using the service. The launch was made a bit more than half a year ago, and deliveries started in a bigger volume only on Q1. Too early to comment what the trend is looking like. I think we need to go towards end of the year before we can see really what's the annual growth. Which is the main market for the camera for your sales? China or the Western markets? So far, Western markets. Europe is number one for our IQ at the moment. There are certain countries in Asia are happily now starting up as well. Only the first unit deliveries have been made here or there, so hard to say based on only these few early customers how the main market will find the product. Thank you. I have a question about the U.S. expansion. What is the best way to allocate capital there, on which activities? Sorry, can you repeat, please? Which is the best way for the U.S. market to expand? What are you going to invest in, like marketing campaign? Yeah. Hiring more people? How are you going to use the resources for U.S. expansion? Right now we have six people in the U.S., sales team and product managers and customer support, all together six. This is the team we intend to keep growing in this level at least end of this year. The team has two goals, to build a distribution network. It means signing agreements with resellers, sales rep companies and distributors. To serve directly certain strategic customers, which are telemedicine operators and AI companies operating in the U.S. market and Canada. This team is, we feel, right size for that. Things will change once we have FDA approval for our AI solution. That's the time to decide if we scale up the team. If we do that way, then we may need to consider further fundraising as well. Okay. I have a question about the R&D activities. You said you've hired more IT people. What exactly are you focusing on in the research pipeline? In software side, we have this Optomed Avenue solution. It has telemedicine functionalities and AI service and connectivity modules to different hospital systems and so on. We are investing in development of this Avenue platform and all its functions quite heavily now. That's how the main costs are coming. Other costs are just simply customer deliveries and customer support. Okay, a question about margins. What activities are you going to undertake to improve the gross margins, if any? Yeah, the gross margin of the sales is very much depending on the product mix in both segments. In software segments for our certain type of products, especially our telemedicine platform and AI solutions, they are very profitable, high-margin products. As they grow, then that's favorable for the margins. In the software segment, we also have a certain standard third-party components, which have a lower margin. It depends on the product mix in our deliveries. In devices segment, our OEM business has traditionally had the lowest margins, whereas our own direct sales and China sales has the highest ones. Okay. Thank you very much. One thing maybe to add, it's too early to see yet, but maybe after one year we will see what's the possible effect of this disposable eye cup, and that can potentially over the years improve the devices segment margins as well. Seppo, do you see any other possibilities for disposables, recurring revenues? Yeah. The main recurring revenue components today are obviously the software and usage of our software platforms and products. I think that's kind of obvious, but in the devices segment, the main thing is really this disposable eye cup in coming years. If that grows to be significant, then that can potentially be a major contributor to our recurring revenue. Some of the customers also in the Western markets have been interested to look at possible rental schemes for our cameras and software products as a package. That may be also a new type of business area that we may explore in the future. Have you looked at any complementary or synergistic business opportunities perhaps? There are obviously device companies, for example, such device companies that have been frequently asked from us as a complementary product, so they could be looked at. Also some of the key software solutions, what helps us to provide our AI service effectively. There are interesting companies and we are actively looking at. Okay. Thank you. Hi, it's Pia Rosqvist from Carnegie here again. I still have another question, if I may. Yes. Yeah. Talking now On recurring revenue elements and the replaceable eye cups. Looking into, say, 2025, what is the outlook? Is it more likely that the replaceable eye cups represent a higher share of your recurring revenues than artificial intelligence-based recurring revenues? How do you view that one? Very tough question. Very tough question. tough question. Very hard to say. I think fundamentally, AI is very hard to predict. If you look at forecast reports, how AI is expected to take off, there are very bullish estimations in near coming years. Whereas some experts are very conservative saying that AI takes still a further five or 10 years. We must say that we know that very high certainty within five years AI is doing a significant amount of screening workload in ophthalmology. We have a very high confidence for that and it's consistent with most of the industry players. How that translates into a revenue for Optomed, that's a big question mark. We are still experimenting the optimal business model and the pricing model. For example, is it a transaction-based invoicing or is it a fixed monthly fee or so? We are experimenting same way like all the key industry players are experimenting. We don't have answer for that yet. It is expected that AI will be invoiced and based on the value it delivers. As it seems, it delivers the screening, it provides a lot of value. It makes the work lower cost than the human doctors and also seems to be making at least the same quality in a diagnosis. Therefore, it's reasonable to expect that there is value coming to the providers. We believe that within five years AI should be a significant part of our revenue and also it helps us to sell a lot of cameras to primary care. When it comes to disposable eye cups, I think that could be predicted with slightly maybe higher accuracy even though we are very early stage, but if you are looking at disposables from other companies in our industry, then the disposable revenue it's quite a significant part of their overall business. Is it bigger or smaller in 2025 compared to our device sales? That's hard to say. Probably it's still smaller, but over the years it can grow significant. All right. Thank you very much. All right. Remember you can press star six to unmute yourself and we still have some time if there are any additional questions. Okay. I guess that's it then. Many thanks everybody for participating and we hope to see you again at the latest in November when our Q3 report comes out. Thank you, everyone.