Welcome to ADDvise Group Q1 2024 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to CEO Rikard Akhtarzand and CFO Oliver Humlen. Please go ahead. Thank you. Good afternoon, and once again welcome to ADDvise Q1 2024 earnings call. I will take you through the presentation together with Oliver Humlen, CFO of ADDvise Group. So isolated, the Q1 this year 2024 was robust. However, comparing to the Q1 last year and some of the quarters during 2023, we saw pharma revenues coming in significantly softer than last year. What we also saw during the quarter was some strong tailwinds in the laboratory segment, especially in the product segment where we provide research facilities and the pharma industry with clean rooms and climate rooms. We still believe that we are on the trajectory as we have been on for the last couple of years, and our view on our long-term financial target remained the same. So overall, we saw strong sales in the quarter, up more than 30%, which is above our long-term financial targets, driven by acquired companies consolidated in the quarter and, as mentioned, tailwinds in the lab segment. On group level, we saw negative organic growth, mainly driven by the pharma segment performing softer than last year. However, some of that were offset by the stronger performance in the laboratory segment. On group level, our negative organic growth came in at 10%, -10%. Stripping out the pharma segment and the pharma revenues, our organic underlying growth came in just shy of 4%. And if you compare the size of the pharma segment in the Q1 this year with the Q1 last year, pharma stood for around 9% of group sales in the Q1 this year compared to 23% last year. We are at the moment broadening our drug portfolio, and we are expecting a few new products to be launched in the Q2 this year on the U.S. market. And I believe that in the back end of this year, that will offset some of the negative organic growth, specifically in the pharma segment. We also saw the capital goods market in the U.S. coming in a bit soft in the quarter. And the same thing goes for that segment. We believe that the second half we believe that we will see a pickup in the second half of 2024 when U.S. interest rates are cut, and that will effectively unravel the market. And organic growth, excluding pharma, as mentioned, coming in slightly below 4%. And except from the laboratory equipment sales being strong in geographic terms of exposure, we saw the Nordics coming in very strong. We also, in the quarter, worked hard to make sure to mitigate some of the FX exposure that we have had historically. By issuing a U.S. dollar-denominated bond, we are now much more prepared for the fluctuations in the currency market, making the lumpiness much less in the upcoming quarters in terms of FX. When it comes to our presence in the U.S., we have established our ADDvise Group U.S. headquarters in Fort Lauderdale, and we are now ready to accelerate our U.S. presence by having people on the ground from headquarters in our largest market. As mentioned, the Nordics performed well in the quarter, and we saw strong demand for climate and clean rooms, in particular from the Middle East. This is obviously a business where we carry slightly lower margins. But as you can see, we had a very strong tailwind in the laboratory segment. The organic growth in that segment exceeded our expectation. But at the same time, we saw margins in that segment coming down a bit based on the product mix. When clean rooms and climate rooms increase in size, obviously that pushes back some of the very high margin revenues that come from our clinical trial business, and that kind of affects the margin in the laboratory segment. We are or we did consolidate all of our acquired entities or newly acquired entities in the quarter, and these four acquired entities performed very strong in line or above our expectations. And as you can see on the pie chart up in the right-hand corner, you can see that we have today a more diversified geographical exposure. That means basically that North America and more so the U.S. are now around 44% of our sales in the quarter. We now have a very solid footprint in South America, which obviously is our largest acquisition up until today, Kolplast, which is part of the healthcare segment. We also strengthened our operations in the U.S., as mentioned before. We now have three people on the ground in South Florida covering the organization and operations we have in the U.S. That means that we, first of all, can be very close to the businesses we have in the U.S., but at the same time, we can accelerate our M&A strategy on U.S. soil. Looking at the product split, as you know, we split ADDvise Group into lab and healthcare, but below that, we have six revenue streams that we monitor. What you can see on this slide and the key takeaway here is the lower slice of pharma revenues, standing for 9% in the Q1 this year compared to more than 20% the Q1 last year. If you look at the historical numbers, we are on path with our long-term trajectory. If you look at sales CAGR the last three years, we are at 60%. If you look at EBITDA CAGR the last three years, we are above 100%. Net sales in the quarter came in at SEK 413 million, which is obviously the strongest quarter ever in terms of sales. We have slightly changed the split between owned products and proprietary products. Owned products today stand for 60% of our sales, which is very good for us because we believe that the scalability in owned products is better than distributed products. However, we want to continue and have a footprint into distribution because we believe that we can utilize the distribution companies that we own to launch products that we own into new markets. Organic growth, as mentioned, came in at -10% on group level. Stripping out pharma, we are just shy of 4% in terms of organic growth. Order intake is a little bit more lumpy. The outlier here is Q4 2022 when we received our largest order ever in the back end of Q4 2022, and that kind of skews the number a bit. Other than that, we have had resilient growth in order intake over the quarters. Looking isolated at the Q1 2024, stripping out pharma, our organic growth came in just below zero and overall -20%, heavily affected by lower order intake in the pharma segment. Taking a step into the two segments, healthcare came in at SEK 245 million in sales in the quarter, and the organic negative growth in the quarter excluding pharma was -9%. Including pharma, it was around 20%. And the delta between 0% and -9% is, to a large extent, capital goods sales in the United States, where we believe that we will see a pickup later this year. Gross margin slightly lower than before, but at a healthy 60%. And that is a level where we believe, or slightly above that, where we believe that we will see the upcoming quarters. Overall growth in the quarter +10% driven by acquired entities consolidated in the quarter, and our EBITDA margin came in at 23%. And here you can also see the effect on our geographic exposure in the segment specifically. U.S. was almost at 80% on the full year or in Q4 last year, and now we are down at 62%, giving us a more diversified geographic exposure, specifically in the healthcare segment. Laboratory segment came in strong in the quarter. Sales came in at SEK 168 million with an organic growth of 26%. And if you take into consideration all acquired entities, we were above 90% in terms of growth. The margin was a bit lower than last year, and the main reason for that is obviously the product mix, where we had a large portion of the revenues in the laboratory segment coming from our project business. And the project business normally carries lower margins than most of all, or more compared to the clinical trial business. So EBITDA margin came in at 26% in the segment. If you look at geographic exposure in the laboratory segment, we are now proud to say that we have a foothold in North America, the US, and in the laboratory industry and the laboratory space. US is as important as the US is for the healthcare space. So having a footprint in the US is obviously a platform for us to accelerate growth within the lab segment in the United States, which we believe we can do over the upcoming years. So I'm handing over to Oliver Humlen to take you through the financial slides. Thank you, Rikard. Good afternoon all. Diving into the profitability in the quarter, EBITDA amounted to SEK 99 million, which corresponds to a margin of 24%. As Rikard has touched upon, this is lower than what we have seen during 2023 and is driven by a change in product mix, where we are seeing a normalization of sales of pharmaceuticals in the U.S., which has brought down profitability within that segment, and at the same time, very high activity within our clean rooms business in the Q1. As Rikard has already touched upon, this is a business which has somewhat lower margins and also a longer cash conversion cycle. High sales within this category affected both margins and working capital in the quarter. As we have said before, we are going to see margin fluctuations between quarters depending on the product mix, but our long-term EBITDA margin target of 28% remains unchanged. Worth highlighting is that the four acquisitions that we completed during the back end of the quarter are now fully reflected in the figures for the Q1 and are all performing in line with or even above our expectations as regards both growth and profitability. If we take a look at our key profitability metrics, we have seen a broad improvement year-over-year compared with the Q1 of 2023. EBITDA is up 18%, EBIT is up 15%, and net income is up 21%. We are delivering our highest ever earnings per share at SEK 22 per share. You will remember that during the Q4 call, we discussed a number of initiatives which we're taking to improve conversion from operating earnings down to the bottom line. I'm pleased to see that these initiatives have started to yield results. Our effective tax rate in the quarter was around 21%, which compares with 37% in 2023. I don't think one necessarily should expect sub 25% tax rates every quarter, but I would certainly say that we're heading in the right direction and will see a lower overall tax rate this year compared with what we saw during 2023. During the quarter, we also took action to optimize our capital structure and currency exposure. We issued our first dollar-denominated bond, as Rikard touched upon. Two-thirds of the proceeds from that bond were used to repurchase our existing bond in Swedish krona. And through this, we have significantly reduced our currency risk through a better matching of assets and liabilities. This also should reduce the magnitude of currency effect in our financials going forward. Moving on to cash flow and capital efficiency. On the left-hand side, you'll have our cash flow bridge for the Q1. As a reminder, when we talk about cash flow from operations, we look at the underlying cash flow generated by our businesses, and then we deduct changes in working capital as well as investments in our asset base, including leases as well as acquisition-related items. We had a bit of a soft quarter in terms of cash flow, which was primarily due to working capital build, mainly in the lab segment, which saw strong growth in the quarter. Cash flow from operations came in at SEK 55 million, which corresponds to cash conversion of 56%. What is positive to see is that we're now back to normalized levels of depreciation and lease expense as the large lease-based customer contracts, which we worked through last year, have rolled off the books. Depreciation in the quarter was around half of the levels we saw during Q3 and Q4 of last year. The pillar called investments, which is both traditional CapEx but also lease amortization, is 60% to 70% lower. This should provide for better transparency and visibility on cash flow going forward. On the right-hand side, you have our return on capital employed, which is a KPI which we're publishing for the first time this quarter. This was 17.5% for the rolling 12-month period. Moving on to the balance sheets, our financial position remains solid. We have a net leverage standing at 2.4 times EBITDA pro forma at the end of the quarter, which is in line with our target of being below 3 times net leverage. At the end of the quarter, we had some SEK 460 million in cash and undrawn credit facilities, meaning that we feel very comfortable from a liquidity perspective. As I mentioned, as part of our work to optimize our balance sheet, we issued a $60 million bond after the end of the quarter. The bond is therefore not reflected in the Q1 numbers, but it does not meaningfully affect net leverage because most of the proceeds were used to repurchase existing debts. Besides reducing our FX exposure, the new bond also improves our maturity profile by pushing around a third of our gross debt maturity out by almost one year, from May 2026 to April 2027. The new bond has a $200 million framework, which gives us the financial flexibility to continue to pursue acquisitions which align with our strategic and financial criteria. That was all from me. I'll now hand over to Rikard for some closing remarks. So key takeaways from the Q1. Growth came in at 33%, which is above our long-term financial target. Organic part of that, excluding pharma, came in just shy of 4%. Overall organic growth, minus 10%. Profitability, as mentioned before during the call, our profitability was affected by the product mix, a slowdown in the pharma segment coupled with tailwinds in the laboratory segment, especially in the clean room side of that space, pushed the profitability a bit down. However, we were able to reduce the gap between EBITDA and net profit, increasing the EPS to the highest level ever in the quarter. Cash flow, tailwinds in the laboratory segment, project business also means working capital buildup, and that put a little bit of pressure on the cash flow in the quarter. The comparable numbers were a bit skewed because the Q1 last year was extreme in terms of cash flow. Financial position, we have a strong financial position, net leverage at 2.4 times, giving us flexibility in terms of our M&A strategy. And on the M&A side, we see numerous opportunities to execute on. However, we are a bit more careful in terms of what we acquire within the life science segment. We have or are, as mentioned in the Q4 call, we are much more disciplined in terms of just focusing on businesses in already existing subsegments to drive density in group and by doing that, being able to even more find synergies between acquired entities. So these are the key takeaways from the Q1. And I would like to open up the floor for Q&A. 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 Christian Binder from Redeye. Please go ahead. Good afternoon, and thanks so much for taking my question. I have one regarding the directed share issue during the quarter. Can you expand a little bit more on your reasoning? I guess the press release indicated that you see a lot of acquisition opportunities. But in general, can you elaborate on your philosophy when it comes to your own valuation, which seems rather low? And in general, how do you plan to use equity in terms of raising funds for acquisitions? I mean, as mentioned before, we have three buckets that we use for our strategy. The first and cheapest one is obviously operational cash flow. The second one is debt. The third one is equity. The most expensive for existing shareholders is obviously the equity bucket. That being said, for us, it's extremely important to build a solid investor base, institutional investor base. What we were able to do in the quarter is to bring on board a tier one Swedish institution, which is obviously something that is good for the long-term strategy in ADDvise Group. The equity instrument, as mentioned before, is something that we are extremely careful with. Our ambition is to bring ADDvise Group to the maturity where no more equity is needed and where you basically can fund the acquisition strategy with operational cash flow and at the same time pay dividend to the shareholders. That's the strategy. All right. Perfect. Thank you so much. That was all from my side. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. If there are no further verbal questions, we have a number of written questions, which I will read out loud. Starting with the first one, it's a similar question to the one we just received. Could you elaborate on your thoughts on pricing, timing, and the need for the equity issue in Q1? From the outside, this seemed reactionary, not a part of the long-term strategy. Maybe, Rikard, if you'd like to elaborate and give a bit more color on that. Yeah, I think the answer to that is the same as the previous question. I mean, we believe that equity is the most expensive tool to finance the strategy with. We want to come to the maturity of the business as soon as possible where no more equity is needed. Hopefully, we are there already. We are working extremely hard to improve operational cash flow. By doing that, we are making it possible for us to take the next step in the journey where we are self-funded, basically, in our acquisition strategy with operational cash flow. I mean, we are still. I mean, you can't compare us with the larger peers that have been doing this for 30 or 40 years. We are still in a buildup phase. We are very. I mean, we work relentlessly to make sure that we improve shareholders' value every day here. But there will be some lumpiness over the buildup years. So I think that kind of gives you some color on the view. I'm one of the biggest shareholders in ADDvise Group. And obviously, I hate dilution. But still, if you have the long-term view on ADDvise Group, at some points, it is necessary. Hopefully, we have that in the past now. But yeah, that's my view on equity. Thank you, Rikard. We have two questions from a listener. Are you dependent on low interest rates for your acquisition model to create shareholder value? And how long a repayment period do you generally expect for an acquisition? I mean, obviously, we are dependent on interest rates since some of the acquisitions are financed through our bond structure. So that is obviously something that is important for us. Just to know or obviously, you never know, but to believe that there will be interest rate cuts later this year, both in Europe, Sweden, and in the U.S., obviously, is good for our strategy. It will improve our cash flow. It will improve our net profit and our profit per share. That is obviously a good thing for us. There was a second question. How long a repayment period do you generally expect for an acquisition? That is nothing that we disclose in the market. But obviously, we have models that we work with in ADDvise Group. A question here. If there's any thoughts on moving the stock to OMX Small Cap instead of First North? I mean, I think, as mentioned, it's part of the long-term journey. But it's also, I mean, to choose we only have 24 hours per day to kind of work with here. We do a lot of things every quarter in order to improve shareholders' value. I believe that one of the next steps is to go to main market. If that happens this year, next year, or in two years, I don't know. But still, I think it is an important step. I believe that we will, at some point, take that step. Yes. We have a few questions on M&A. How do you find acquisition targets through your own research or through a broker? And how much capital do you have available for M&A this year? And do you expect to be able to deploy the available firepower? If you start with deploying capital, obviously, for us, it's very expensive to not deploy the capital. The carry cost is quite high since the interest rates are high. We want to deploy the capital as soon as possible. However, we are very disciplined in terms of acquisitions. That means that we choose carefully before we acquire a company. Since we also added one search criteria when it comes to focusing on businesses that are already in an existing subsegment in ADDvise Group, it becomes a bit more tricky. The M&A process, even though we have an ample pipeline, it takes a little bit more time. We have a little bit more pricing discussions since we become even more disciplined. Because if you really want to meet all our search criteria in terms of profitability, in terms of being in an already existing subsegment, it kind of narrows down the flexibility in the M&A pipeline. So what more, Oliver? There was a second part of that question. How much capital we have available for M&A this year. Maybe I can address that. I think looking at where we are from a cash perspective and the near-term obligations that we have falling due in terms of earnouts, etc., I would say that depending a little bit on the size of acquisition, we should have comfortable capacity for one or two acquisitions. There are a few questions here on the pharma sales. I would try to address maybe we can address those as one. I think maybe I could give a little bit of color on the dynamic of pharma sales. What is the reason for the current development? And whether it's inventory-related correction or fundamentally weaker demand, any specific products you'd highlight that are seeing softness? I mean, in general, there is no softness in the pharma market as far as we can see. I mean, most of the drugs that we have in our portfolio are generic or close to generic drugs. What happened during 2023 or basically at the back end of 2022 was that we received some large initial orders on a product that we launched on the market. We executed these orders during the first basically from the Q4 2022 all the way into mid-Q4 last year. Then we saw a significant slowdown on that specific product. That is kind of the effect of, I mean, the softer pharma sales. That is something I mean, in general, if you look at the pharma industry, especially on the generic side, there is a lot more lumpiness. On the other side, you see much higher margins. So that's the upside on the pharma segment. What we are now, we are in a gap between this very high sales we had on a specific product last year. Now we are back on kind of normalized levels. But at the same time, we have 2-3 products that we hope can be blockbusters in the same way as the strong sales we had on the back end of 2022 initial orders we had. So this is kind of there is kind of more lumpiness in sales in the pharma segment. However, it drives margins and organic growth, obviously. So it's something that we are very proud of to have had during 2023. It's not that we have no pharma sales in the quarters. I think we stabilized on a kind of base level now. I expect the sales in the second half of 2024 to increase, basically, based on new products launched on the market. At the same time, within the pharma segment, we are also exploring new sales channels to reach further, basically, with already existing products. We have invested in our platform for distribution of generic drugs. We basically, today, have licenses in most U.S. states. I think we cover, basically, somewhere around 90% of the U.S. population in terms of access with prescription-based drugs. We have invested in that platform to even reach further and to make the platform more accessible with the products we have. I think the combination of new products launched on the market and exploring new sales channels will give effect in the second half of 2024. Thank you. There's a few questions on pharmaceuticals, the strategic rationale for the investment, and also whether there is a target to buy more companies in the pharma market near-term or more focus on MedTech. I mean, the whole structure of ADDvise in terms of risk profile is to have a broad geographic exposure, have a split between lab and healthcare, and not to be dependent on one single subsegment. And obviously, pharma is a fairly new and small segment in ADDvise Group. However, it comes with very high margins. So my view or our view is to continue and build the pharma segment in parallel to the laboratory equipment and to the medical device equipment to even more give us a good risk profile of ADDvise Group. I mean, we mitigate risk in many different ways. We do it in terms of geography. We do it in terms of different subsegments. And we do it in terms of two main segments, lab and healthcare. And that, combined with a non-cyclical market, we believe gives a very nice risk profile of ADDvise Group. So even a drop that we have seen in the pharma segment still leaves us with an EBITDA margin of 24% or adjusted above 20% or EBITDA margin of 21%. So that's my view. And you, as mentioned on several calls before, both on the Q4 call and the Q3 call, there is no. We will not see linear development of ADDvise Group quarter on quarter. There will be some lumpiness between quarters. Obviously, if we were 10x bigger, we wouldn't probably see the lumpiness. But that is kind of an effect of us being in a buildup stage still. There's a next question here. Elaborate on the outlook for order intake within the lab segment. My view, I mean, this is obviously no official forecast or projection. I mean, my view is that the sentiment in the laboratory segment is very strong. It's stronger in general than the healthcare segment. The expectations on organic growth, not in ADDvise Group, but in general in the laboratory equipment segment, is probably twice as high as the healthcare segment. I believe that the expected CAGR in the laboratory industry is almost 10% the upcoming five, six years. So I think my expectations on the laboratory segment is high. Next question. Could you comment on your visibility of demand for launching new drugs in the pharmaceuticals vertical? What makes you confident that this will drive growth going forward? I mean, we have experience of launching new products before in the acquired entities. We have seen these launches playing out well. I think my view and my comment to that is that based on historical data points, we feel, I wouldn't say comfortable, because always launching a new product always takes more time than you expect. But I mean, I think I have factored that into my expectations on seeing some result during the second half of 2024. Next question here being, going forward, should we expect the mix of clean room versus clinical trial in the lab segment to be similar to what is seen in Q1? I mean, to be honest, if I had a crystal ball, I would answer that question. I mean, it's demand on a quarterly basis. I think the demand for clinical trials remains high, especially in our U.S. operations where we see a lot of potential in that platform. But at the same time, the demand for business-critical clean rooms is also very high, especially in the Middle East where we see, I mean, huge investments into research and pharma infrastructure. Then I think the last question that we have today. Annualizing Q1 EBITDA brings full year 2024 slightly below last year. Is that a fair expectation? And when do you expect the earnouts on recent acquisitions to be paid? I think I can address both of those questions. We obviously haven't released any guidance for the full year 2024. We are working with our long-term financial targets, which is growth of 30% and an EBITDA margin of 28%. And as I think we mentioned previously, if we see that we are in a position to provide any guidance on the full year, then we will do so. And regarding the earnouts on recent acquisitions, typically, these acquisitions have earnouts running two years for the two financial years after closing. And the details of those can be found in the respective press releases pertaining to the acquisitions. Then we have one last question here. Do you see the Middle East exposure in terms of growth to be impacted by the current geopolitical status? I mean, the main impact on the Middle East where basically we are active is oil price. So to some extent, the oil prices have an impact on the demand in the Middle East. But we are supplying and installing clean rooms basically worldwide. So it's not the fact that we only have demand in the Middle East. We have a broad geographical exposure in terms of or when it comes to clean rooms. But specifically in the Middle East, I guess it's most of all the oil price, not the geopolitical situation, unless that affects the oil price significantly. I mean, basically, the higher oil price, the better for the demand because, I mean, the countries investing in clean rooms are, in many cases, oil-dependent countries. That was all the questions that we have received. Unless there are any further questions from the audience, I think we can conclude today's call. So thank you all for dialing in, and thanks for taking time. Thank you.