Good afternoon and welcome to Revenio Group Q1 2025 earnings call. My name is Jouni Toijala. I'm the Group CEO. As always, we have here as well Robin Pulkkinen, our CFO. Plan for today is to go through the highlights for the Q1, and I'll cover that part, and Robin is going to continue going through the financials for the Q1, and then shareholders and financial guidance for 2025. We finish up for the Q&A. Let's kick off. Extremely good start for the first quarter. The Q1 was very strong for us in terms of the sales and profitability. Net sales was EUR 26.1 million, up 10.5% from the previous year, EUR 23.6 million. If we look at the currency-adjusted growth, that was 12%. EBIT on good level, EUR 6.6 million, 25.4% out from revenue. If we then go more to the sales split, imaging and tonometer business grew in every region during the Q1. We got the growth from the U.S.A, APAC, Europe, Middle East, Africa, Latam, and Canada. If we do a bit more deeper dive into the specific countries, in the APAC region, China grew very strongly, same for India as well. We got the good growth also from Europe and Canada. I'm sure that there's a lot of questions related to the outlook and the pipeline. As of today, we see a healthy pipeline from the sales perspective in the USA as well. If going through a bit more detailed, the actual product lines, from the tonometer perspective, probes selling really well, IC200 selling really well, and we launched also the new TonoVet Pro version during the second half of 2024. That has been performing extremely well as well. On the fundus imaging side, more or less the same story than in the last quarter. DRSp lus business growing well and the EIDON product family growing extremely well as well. During Q1, all the growth was organic. We did not have microperimeter sales in at all. From the microperimeter perspective, everything is looking extremely good. We got the FDA approval during Q1. Actually, we got also the CE certification end of March 2025. We are good to go in all the regions. We have been starting the deliveries already. We have a good order pipeline also for the coming months and coming quarters. From the software solution perspective, business is moving well forward as well. If we look at the iC are, ILLUME screening business. If we go in the details of the actual installed base and the sites, we grew roughly 50% in terms of the live sites and live customers compared to the last quarter of 2024. Also, the report amount has been increasing 30% year on year. The plan is also, of course, to expand the business in other countries. I am sure everybody is keen to understand where do we stand with the U.S. tariffs. Let's cover this one. I am sure there are a lot of questions as well. Let's be sure that all the questions are tackled during the Q&A. A couple of words regarding the tariffs. When comparing us to the comparable companies, we are in an extremely good and resilient position. If we look first at the macro trends, they are definitely backing us up still. In all the regions also during Q1, we have been seeing an increasing amount of patients. If we look at the product portfolio perspective, we are well positioned in terms of the value of the products compared to the price. Currently, as said earlier, if we look at the pipeline in the USA and globally, the pipeline is looking still very good. Also, the profitability is in good level. The profitability in Q1 was 25.4% out from revenue. For us, this means that we are able to still invest and continue all our R&D projects as in the last couple of years. We have a good toolbox to tackle the tariffs. Let's go back to that topic. What we have been doing already in order to be prepared. We have increased inventory levels already during Q1 and even last part of last year. If you look at the inventory in more detail, of course, it depends product by product. We have, depending on the products, the inventory from two to six months. Of course, that is having a slightly impact also to the net working capital. In a nutshell, we are well prepared from the inventory level perspective. We have been estimating the tariff impact to the bottom line. Robin is going to come back to that one. If we look at Q2, Q3, Q4 2025, the hit to bottom line if we do not do anything is roughly EUR 800,000-EUR 1.4 million. This is without any actions. If we increase the prices, which is the plan, we have a strong view that we are able to mitigate the impact of the current level of the tariffs, which is as of today, 10%. This is where we stand in terms of the tariffs. I let Robin go through financials and then we come back to this topic for sure in the Q&A. Thanks, Jouni. Jouni went through the numbers there slightly. Great start for the year. Best quarter in Q1 in terms of profitability and top line euros. 10.5% growth on top line. FX adjusted 12% growth. Now looking at, people remember that we did some changes in the balance sheet, restructured it a bit during the last quarter of the year. You can now see some of those FX impacts that we had before hitting the revenue line, now hitting the financial costs. By doing so, there's actually roughly EUR 500,000 of FX cost that is now hitting the financial expenses instead of revenue. If we did not do those changes, the top line would have been lower. Of course, the FX adjusted number would have fixed it, but the reported number would have been lower. Gross margin also higher than what we're used to seeing for us. have been some changes in the IFRS accounting, more related to how we treat our own personnel commissions. In the past, they have been posted to cost of goods sold, and nowadays, due to the changes, we are now posting them in the operating expenses. It has a slight improvement on the margin line, less than 1% impact. The tariffs will then again go the other direction. It is interesting to see how this line is going to continue to develop during the year. In general, the Q1 average FX was 1.05 compared to 1.085 a year ago. Now that we can see that the FX is moving towards 1.14, this will also have some impacts on our numbers going forward. Operating profit EUR 6.6 million, up almost 30%, 28.6%, and above 25.4% of revenue. I will come back to the other numbers a bit later. Q1, a bit longer trend line here for the sales development. It's really good to see that we're able to grow quite well in the first quarter after having a quite flat Q1 last year. Also keeping in mind that we didn't have the new MAIA in our product portfolio. That will be now kicking in starting this quarter. The Demant pipeline seems very strong for that. The sales team is very positive about the product. I think the operations team is pulling out as many devices from the manufacturing line as they can. That capacity is also increasing quarter by quarter as we move towards the second part of the year. Operating profit also for the first quarter on a record level, EUR 6.6 million. There were no significant extraordinary items or actually either clinical trial costs within the quarter, which would have had an impact on the profitability. For the bit more clarified from we've been expecting, I think the investors have also been expecting these clinical trial costs for the iCare ILLUME-based screening solution to start kicking in. That's been our original estimation also last year. Currently, we're still kind of going through alternatives and the authorization process for the FDA and kind of reviewing clinical study alternatives for the authorizations. Our current expectation is that the trial costs will not start to run within the next two quarters either, earliest Q4. Cash generation, very good. Looking at, if you look at last year Q1, okay, it's flattish. It's good to keep in mind that all our employees have a short-term incentive program. In 2024, we had very little payouts for that program. Now we're back to normalized levels this year. You can look back to 2022 Q1, the operating cash flow was basically zero, same for 2023. The 2024 was actually quite exceptionally good due to the kind of not very or very low bonus payouts, which is not the normal trend. It's the first time in the last 10 years that it was close to zero. That was a good reason for it. It's basically for the not so good performance in 2023. This year, basically what that difference is, is this year the payouts were roughly EUR 2.5 million in the first quarter and last year less than EUR 500,000 during the same time. If those were kind of set at the same level last year also, if the payouts were normal last year, our operating cash flow this year would have been almost 50% higher than a year ago. The balance sheet continues to get stronger. We are again above 80% equity. It is actually the first time since the acquisition of CenterVue that we are reaching this level. The interest-bearing debt is actually down from EUR 16.6 million last year after the Q1, down to EUR 11.3 million at the end of Q1 this year. We basically have twice as much cash in the bank than we have interest-bearing debt. In Q2, of course, the cash balance is going to go down due to the dividend payouts and the net gearing will go up slightly closer to the zero range. Shareholders, some actually changes here. At the end of last year, Demant was still around 19%, 19.6%. Now they actually flagged in Q1 that they went above the 20% ownership. If we're actually looking at the top 10 list, the logos are all the same. Seven out of 10 of the largest owners have increased their ownership of Revenio during the quarter, which is, I can't remember such a positive movement in one quarter in any of the recent years at least. Overall, I think the Finnish ownership is slightly up, United States slightly down, Denmark slightly up, Sweden and France pretty flattish during the quarter. The guidance remains the same. The exchange rate adjusted net sales are estimated to grow from 6%-15% from the previous year in profitability, excluding non-recurring items, is estimated to remain at a good level. Like we've said earlier, even though the range is quite large, we aim for the double-digit growth. There is quite a bit of uncertainty in the market. That is the reason for the wider range for this year, for now at least. Good. Great. Thank you, Robin. It's time for questions. If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Nikko Ruokangas from SEB. Please go ahead. Hello, this is Nikko Ruokangas from SEB. Thank you for the presentation. I have a couple of questions relating to naturally tariffs and then also another one. Maybe starting with a question that you indicated in your report that your sales were supported by a couple of bigger one-off deals. How big impact did these orders have? Hey, hi, Nikko. Not as big as we have had, but a bit more bigger than the normal smaller deals. I think that's the best way to put it. Okay, so are we discussing about seven-digit number or less than that? Ball of bark, yes. I mean not the millions like we have had before. Yeah, okay. All right, thanks. Yeah, and of course less than the million, but yes. Yeah, but million ball of bark, okay. All right, then on tariffs, what's your take on the market and client activity since the announcement of the tariffs? You said that you have a good sales pipeline in the US, but have you seen kind of any changes in the demand environment before that? On the other hand, do you think that your Q1 sales were supported by pre-buying ahead of tariffs? First, answer to the pre-buying, no. Especially if we look at the USA, there is a tendency that nobody buys for the stock. Tonometers, 24-48 hours from order to delivery, one to two weeks for imaging devices. The clients were not buying products in a stock. If you look from the pipeline perspective, last time we checked the pipeline on Friday and the pipeline is looking good. We have not seen any decrease on the sales pipeline side. All right, that's good to hear. You estimated this EUR 0.8-1.4 million impact on earnings in Q2 to Q4, assuming no actions taken to mitigate the tariffs. Just to get the estimate and ballpark of the impact, right? Given that you already have increased your inventory, this kind of EUR 0.8-1.4 million impact would be if no other actions impacting Q3 to Q4, am I kind of assuming right? Yes, there could be also in some products we have around two months inventory. Could be some products going out the door with tariff impact already during Q2, but basically mostly Q3, Q4. The idea is that we will be increasing our price. We did actually a global increase in price at the end of Q1, but we will be doing another increase actually in the US due to the tariffs. There will be in place as long as the tariffs are in place. If they are withdrawn, we're kind of planning to withdraw the tariff increase as well. Yeah, I understand. You have not kind of seen that end of Q1 price increase impacting your client activity? No, we do that every year around the same timeframe. Okay, good. Then last one for me at least at this point. Your fixed costs increased like 10% year on year despite the comparable quarter having the higher FDA costs, which you did not have now. You already flagged the change in IFRS reporting, but kind of how much did this change explain this increase year on year? It's a couple hundred thousand. In general, we do have more people. Also, the marketing costs were slightly up. Basically, it's payroll related for a big part. Also, the fact that some of that cost of goods sold is now being posted in the costs is driving the cost up from just looking at the OpEx. Yeah, okay. If we clean those reporting related issues, there is some kind of underlying cost hikes as well. Yeah. More people. Okay, I think. I heard roughly the average number of employees is from 219 to 246 in Q1. That also increases. Salary increase. Yeah, plus salary increase. Yeah. Yeah, I understand. Okay, I think that I'll go back to the queue. Thank you. The next question comes from Jack Reynolds-Clark from RBC Capital Markets. Please go ahead. Hi there. Thank you for taking the questions. I had a few, please. The first one just on tariffs again. You mentioned obviously the price increases to offset the impact of tariffs. What level of pricing increase do you think that your customers are willing to kind of accept? How much kind of Demant elasticity to price do you anticipate? The plan is to, basically the end user price increase is not exactly 10%. We will be able to kind of split the pain to kind of borrow our Head of Sales comment on the fact. We will be able to cover the tariff kind of euros, but kind of overall, of course. If you say that we invoice a million more and we get a million more in COGS, some of the percentages will see an impact in the percentages. Basically single-digit increases we're looking at. Okay. Do you expect Demant to be impacted by those increases? The good thing is that all of our competitors mostly also manufacture outside the U.S. We are also the most profitable company. Many of the competitors have been struggling last year with the profitability and growth. I would expect to see increases also from the other players. It is a bit unclear to us, I guess, also how much different companies have inventory in the U.S. imported before the tariffs. Of course, having a close eye how things develop. In general, Jack, we have been extremely good what comes to the price and value. If you look at the competition in terms of the product, the value which we are able to deliver in specific price points. There is a flex on the price compared to values compared to competitors. We are talking about the single-digit increase here. Based on the sales input, we do not see too much a risk on this one what comes to the demand. I think the plan is to communicate to the customers also that, like I mentioned earlier, if the tariffs are removed, the increases will be also removed that are being done for the tariffs. Understood. Super clear. Thank you. My next question was on MAIA. Obviously positive development on the launch there. Could you talk through how you're thinking about that from a geographical perspective? Are you able to quantify at all what kind of contribution to revenue growth it could offer in 2025? A couple of topics. The first topic is that now the approvals are okay in CE marked countries plus the FDA. Currently, the pipeline, the order pipeline comes more from the drug research and drug testing side, which is extremely good. They are not so price sensitive in general. For sure, they have had the will to buy the product already beforehand. Now luckily we have a product in place. I would be personally extremely disappointed if we would not be selling more than we sold MAIA earlier. We sold steadily EUR 2 million-EUR 3 million per year. There is an expectation for a higher amount during the queue, during 2025. Robin, anything you would like to add on the expectation demand side? No, seems like everybody within the sales, the specialists in the board are extremely positive about the product and its outlook. We are quite optimistic. Time will show, of course. It is still very early. We do have a good solid number of orders in the tens of units already in the system. Great. Okay, understood. My third question was just on iCare ILLUM. You mentioned obviously 50% kind of more placements with 30% kind of more patients coming through. Could you kind of remind us how that translates into revenue for Revenio? Kind of what's the revenue model there and how do those higher volumes translate to benefit to you guys? We do not, sorry Jack, give the details, but I can go through the revenue model and the split. First, starting from the solution itself, it consists of three parts. The first part is DRSp lus, a fundus imaging device. Then we have ILLUME Cloud Solution. Then we have iCare RetCAD AI. That is a Thirona asset which we acquired last year, the remaining shares in Q3 last year. In 90% of the cases when we sell the solution, we also sell the DRSp lus. Of course, we sell the ILLUME recurring license, usually for one year. We have volume-based prices for AI reports. There are three revenue streams: selling the device, selling the ILLUME subscription, and AI reports. That is the model. If you look at the Q2, even the device sales starts to be significant in a way because we really say almost in all the cases we also sell the hardware. This hardware sales is generally going to totally new segments like diabetic clinics. That is where we stand today. Feedback is extremely good. We also launched Q1 so-called ILLUME Connect, which helps us to refer the patients to the ophthalmologists, which are in a way out from the network. For example, in Germany we have a case that devices in diabetic clinics or in the optometry, but there is no in-house ophthalmologist. We are able to refer the patient digitally to the right place right away if there are challenges in the eyes. This was the core functionality which we got through the Oculo platform, which is used in Australia and New Zealand. Now that's also the part of the ILLUME solution. Okay, great. That's super clear. Thanks very much. Good question. The next question comes from Daniel Lepisto from Danske Bank. Please go ahead. Hi, it's Daniel Lepisto from Danske Bank. Thanks for the presentation. I have a couple of questions as well. Maybe still going back to the products and discussion on these. I noticed that you did not mention SD500 in the report, even though I recall that the initial reception has been extremely good. What is the status on that one? How is the sort of business momentum getting traction with this device? Let's start with the positioning of the product first. If we think the IC100, IC200 with QuickM easure, the main segment is optometry and the optometry related workflow. SD500 segments ophthalmologists. If we look now at the progress on the SD500 perspective, we started the sales work towards the end of last quarter. We have been moving forward in the areas where the ophthalmology specific workflows are in use. We have to recognize that the start applies the same logic as in the early phase for the handheld tonometers. There is more heavy lifting which we should do because the workflow is new and the customer segment is totally new. Still, feedback is good. Lots of, of course, work ahead. It is a new product compared to the volumes of IC200 with the QuickM easure. Not yet moving the needle as much as, as an example, IC200 with QuickM easure, but moving on steadily. Okay, thank you. Are you expecting SD500 to maybe start to contribute more maybe later in this year or next year? How are you seeing the sort of commercial traction? Sure. Going to contribute. I mean it's a so big amount what we are getting the growth from the IC200 with QuickM easure example. And home continues to grow constantly in the double digit. For the new products, of course, it's taking time. Yeah, okay. Fair enough. On sort of these geographical trends, you noted that the APAC growth has been quite strong in Asia, particularly in China. China is a sort of a new area for you to target. Can you quantify a bit how much growth contribution is coming from China, for example, at this point? We do not disclose exactly. We have not disclosed the country level. China growth was in the hundreds of percentages. It was a very good growth for us. Also India, very, very strong growth. We have not disclosed exact EUR amounts for those countries, but definitely they had an important part in the quarter success. Okay, thank you. Maybe the final question on this FX. Obviously we have seen large movements in FX once again after Q1. You did these balance sheet reclassifications. I guess you mentioned that, okay, there is not that pronounced impact to the top line anymore from the FX. How much of an impact should we anticipate when it comes to the percentage points since there seems to be so much change when it comes to this topic as of late. Can you help on this one? Yeah, I think this year when you look at the FX adjusted sales, okay, we don't get the direct postings to the revenue anymore from certain US dollar balance sheet items. The comparison numbers have them in them. Last year we did still have, like last year Q1, the number had EUR 4,500,000 of FX tailwind posted in the revenue. The divider in the FX adjusted growth will need to be adjusted this year still. I think the balance sheet impact on this year reported numbers will be very low. Of course, what happens to the US dollar exchange rate. Now it's around 1.14, I think. If it goes up to 1.20, of course it's not good for us. That will have an impact. The good thing is, we don't hedge with any financial hedging, but we have natural hedging. Certain parts of our components are US dollar based. Also in the US, we pay our commissions to the reps in dollars. We have the whole sales team and marketing team in the US on payroll. All the travel is in dollars. We have like 50% or so depending on the sales mix. Natural hedging what comes to the dollar FX impact. Okay, that's helpful. That's all from my side. Thank you. Daniel. The next question comes from Pia Rosqvist-Heinsalmi from Carnegie Investment Bank. Please go ahead. Hi, Jouni. Hi, Robin. Thank you for the presentation. A few questions. If I start with probe sales, I think in the report it said probe sales were also really good in the quarter. Is there anything specific behind it? Is it driven by increased usage, or is it some kind of, yeah, stocking effect among your clients? I think the probes have been growing for the last decade very strongly. I don't know if you remember, but back when we still reported the probe part of the, I think when I started 10 years ago, the probe part of the total sales were like 22-23%. It grew to over 30% by the time we stopped reporting it. All along, the probes have been one of the very strong growing parts of our company. It seems to be continuing that way, which is good. We can see that our devices are being actively used around the world. We haven't really seen any slowdown on probe sales ever during my time. All right, thank you. Still regarding the larger one-off orders, are the orders for imaging devices specifically and not for tonometers? What kind of customers are placing these bigger orders? Imaging and government. That is in a nutshell. For screening for certain, if you think for the Europe, also screening related business. All right, thank you. Going back to the U.S. and the clinical trial, it seems that the process has been delayed further. Is there any color you can add to what you are working on now? What do you mean by studying alternatives in the U.S.? This links back to what we discussed shortly a bit more than one month ago related to the extremely good quality coming from the DRSp lus. Also, based on the discussions with the other AI players who have been trying to get the approval for the DRSp lus, the basic dilemma which we are facing is that because of the extremely good image quality for DRSp lus plus good AI performance, the results are compared to the standard fundus imaging ground truth device plus the human being. That combination is not seeing as many diabetic retinopathy cases. When we run the same patients with DRSp lus plus AI, we detect better the positive cases. Those cases are then compared to the ground truth device, which is the standard fundus camera plus the human. They do not detect the same cases even though they exist. We get more false positives. Now we really have to think through what the protocol is and how we run the clinical studies so that we get comparable results and we are not wasting too much money and time and get this one right. That is simply the logic. Also, the requirements from the FDA regarding what kind of people we should use and what kind of ground truth devices we should use in the study have changed in the last four to five quarters. We are adapting to those changes as well and looking for the optimal setup. Of course, not optimal case, but in the meanwhile, I would like to still emphasize that we sell a lot of DRSp lus devices in the U.S.A. for screening cases, which is a huge amount and they are sold for the human grading. There is a lot of human grading screening business where the DRSp lus is used. That is the status as of today. That's clear. Thank you. If you start the clinical trials in Q4, is there any estimate or guesstimate on what kind of costs we should consider? Not exactly. I think the whole package and the alternatives are all a bit different priced. Better not to say anything on the cost yet. All right. Timeline point of view, shooting still towards the end of next year, but now really trying to optimize the amount of the patients and the amount of the sites and the protocol. All right, thank you. Regarding the costs and the personnel costs in Q1, do you consider them representative for the remainder of the year, the current personnel cost level? I didn't hear the question. Can you repeat? Sorry, the personnel costs in Q1, are they representative you think for the remainder of the year? Yeah, yeah. We will probably have some new people, but in so all the bonus accruals and others are in. There's no adjustments for last year's employee costs. It's a pretty clean quarter what comes to the cost. Of course, it depends a bit if the growth is towards the upper end of the guidance, then the bonus accruals will increase towards the end of the year. At the moment, I think it's a fair number to use throughout. Of course, the salary increases are starting from February or March, do you remember, Omi. It's not for the full quarter, but there will be a little bit higher salary basis for the full quarter in Q2, but maybe a couple percentage more when the Q1 was. Okay, thanks. Finally, regarding the U.S. and your presence there, are you looking into transferring some of the assembly to the U.S. and what kind of timeframe and costs would that maybe include? I think there the time will show. Of course we look all the options, but now the tools which we have in the toolbox and which we are planning to use at first because it's a quite volatile environment and we don't know for sure where this is going to end. We don't want to do any hasty decisions. The tools which we are currently using is really we have been adding the inventory already during the Q1 and the last parts of the 2024. The inventory looks good in the USA and then plan is to do a slight trade specific or tariff specific price increase only for the USA. These are now the tooling. We evaluate the other options, but as the direction is not clear, we do not want to commit to investment if the situation is changing, as an example, to moving the production. This is where we stand today. Anything to add, Robin? No. Very clear. Thank you. That's all for me. The next question comes from Nikko Ruokangas from SEB. Please go ahead. Hello, this is Nikko Ruokangas from SEB again. I have one additional question and also related to profitability and your guidance. As you discussed, you have personnel costs up this year and then FX headwinds will impact your kind of sales and margins even if no balance sheet impact anymore that much. Possibly some impact from tariffs, even though maybe not kind of an absolute number impact, but margin impact. If kind of summing those, do you think that you should be able to improve your EBIT margin this year if you reach the sales guidance or at least the double-digit sales growth level? I know your guidance on profitability, but maybe just if you could discuss a bit factors behind that. Maybe the tariff is tricky to say what happens there. Basically, when you say, okay, if we have a plan to kind of mitigate the dollar or euro impact with the tariff price increases, basically it's probably more or less a flush. Say that you have a million more on top line, a million more on cost of goods sold, but the EBIT is zero. In a way, it depends how big the tariffs end up being. Also has an impact on what the percentage for profitability will then end up being if you follow what I mean. Then on the. Yeah, yeah. Yeah. If the tariffs go back up to 25%, the impact will be bigger. In EUR wise, we're covering the impact, but percentage will be weaker just as to how the math works. I think the FX is good to remember that we have a lot of dollar-based salaries as well. If the FX continues to get, euro gets stronger compared to the dollar, then also the cost on the operating costs will continue to go lower when we consolidate to the Europe or the group numbers. It's a bit difficult to say. It's difficult because we don't know how the tariffs will play out. If the tariffs were not there, we would definitely, I think I would be easy to commit that we should do a better profitability if we're in a higher double digit growth. I understand that answer to the question. Thank you. Thank you. I think I have an extremely good continuation of the spring. Let's come back with the Q2 and first half numbers early August. Have a good continuation of the spring and thank you for the participation. Bye-bye. Thanks. Bye.