Hello, welcome to the Q2 2021 report for Mentice. My name is Martin Harris. I'm the VP of Marketing, and with me we have Göran Malmberg, CEO and Group President for Mentice, and we'll be joined by Elisabet Lund, CFO, for the Q&A session at the end as well. Göran, just hand over the sessions to you. Thank you, Martin. Good morning, everyone. It's nice to be able to present the second quarter of 2021. I dive right in here. Disclaimer, we don't need to spend any time on. That's me. You've seen that enough. Really going in directly into the details, have some comments on the side. Obviously it's really nice for me to see that we have been able to execute in the way we have in the second quarter, but also for the first half year. We have addressed some of the issues that I've had in the end of last year, but also going into the first quarter. Really nice to be able to present this, and I think we are on a good path to where we want to be. First, a couple of comments on the business status. We see a continued very strong medical device demand, really globally. We have had strong order intake from all regions. We are up almost 60% for the first six months compared to last year, which is really nice. We also see that the Americas region that had a really good year last year, and the best ever last year, but we're still continuing to grow there, which is nice since that's the market we invest the most in. We are up almost 50% year-over-year for the first half year on order status. We see that the Americas, for the first six months, carry about 50% of our total business, which is where we want to be. We also see that APAC continues to develop in a good way. APAC had a very strong first quarter, but are also continuing with a good second quarter. We are about 2x the same period for last year for the first six months. Obviously on lower amount compared to America, so it doesn't affect the total business as much, but it's about 25%, which is where it should be. We can see that APAC is mostly carried by China and Japan, where we have other parts of APAC that still is very much impacted by the pandemic, like India as one example. We hope we have some further upside there. In EMEA, we see both in Central Europe and the Middle East, it's really the market that is most affected by the pandemic, and that's still the case. We have had decent business in Q1 and Q2, but not to the level that we have expected. That's also an upside we will say for the second part of the year here and going into next year. Generally, we see, again, we see a delay from the healthcare segment, which also impacts the strategic alliances part of our business related to the pandemic. Even if you see the Americas region is coming back to almost normal in terms of traveling and possibility to have meetings and things like that, it's still affected from the financial implication from the pandemic. We see in Europe, obviously, we're still having a difficulty in getting meetings, especially when we don't have staff in the local countries. That's clearly an upside for the coming quarters. It's obviously very nice to see that we've been able to carry our growth here with the medical devices. It will also give us further upside when we see a revamp or when the hospital market is coming back. We see very good activities from the Vascular Simulations, the business we acquired end of last year. We have started off the year in a very good way, and we really managed to leverage our sales and distribution in a nice way. We see business coming from all parts of the world, really. That's clearly going to be a good addition to what we do for the full year as well. On the financial stand, order intake for the quarter up to SEK 40 from SEK 28, and change last the second quarter. For the first half-year, we are SEK 80.1 compared to SEK 60.9, which is the 31.5% increase for the first half-year compared to last year. Represent the highest ever, both the quarter and the first half year for Mentice in the Mentice kind of history. Order book, as well, significantly higher, 65% higher compared to end of second quarter last year. Also is important for the year, since a large part of this is something we will render for the year, for 2021. About half of this amount is revenue already planned for 2021. Net sales significantly up for the quarter, 91%, almost double compared to the second quarter last year. SEK 78.7 compared to SEK 58.1, so 35.5% up for the first half year, which is really nice. I think, obviously, the 91% here is due to some delays we had on deliveries from both Q4 and Q1, but I think if you see the consistency here for the first half year, that's really where I would want to be with the business. It's a nice execution from the entire organization here, and the ability for us to really ship and render revenue is really nice to see. That's been one of the issues that I and we have dealt with during the quarter here. We can also see that the gross margin is back to about 80%, and if we look at the currency effect, it will be at same level as last year. This is also something that I commented back in Q4 and beginning of Q1, which we have been working on for the quarter. Some of this is related to the introduction of our new hardware device, the G7 and G7+. We're dealing with that, and I'm super pleased with the ability to get back to the levels where we want to be. We might even have more upside here on the margin, this is really a good achievement by the group here, or by the team, sorry. Cost levels. We have increased operating expenses. We're about 17.5% for the first half year. In that, we have Vascular Simulations for about SEK 4.2 million, about SEK 2 million for the second quarter, SEK 2.2 million for the first. That's fully according to plan, and I would actually talk more about that later on. Cash flow in the quarter was positive, SEK 6.7 million, slightly less than last year. Again, last year, we were extremely lean in the second and third quarter during the pandemic. We basically stopped all activities and cut down on consultants and stuff. That's understandable. This is in line with what we want to see. The negative for the first half year is only due to the start of the year in the first quarter. We also have some activities here too, where we had payment from a client that also slipped into the third quarter. Operating income, we had almost breakeven on EBITDA for the quarter, and we're still carrying the loss we had in the first quarter. We are obviously much better down for the first half year compared to last year. Key observations. I sort of mentioned it already, but the pandemic last year had really no effect on cost in Q1. In Q2 and Q3, we were extremely lean, where we cut down on consultants, we had no travel, and we did everything to really be lean. We also have some subsidies to help us. Now when we obviously all start to travel again, we are ramping up, we're hiring, there will be a larger delta in expenses. That's what you see, or in cost levels. In organization, we have moved from just over 90, 93 by the beginning of January, up to 101 by the end of the quarter. If you look at the full-time equivalents, including consultants, we are about 120 people now, where we were just over 100 by the beginning of the year. As I said, we had an expectation to improve the cash level for the quarter, but we've seen some delays, especially in U.S., related to larger clients. That's something that we will deal with. We will have a special focus on this for the third quarter going forward. That's something we expect to deal with. Close to breakeven EBITDA. This is also good. Looking at that historically, I think we are better positioned for the year than we have been in a couple of years back. I talked about this already. We're really pleased with the execution on deliveries, both from the order book, so already booked orders, but also new orders in the quarter. That's really nice to see. What we are saying here really is that we are investing in the future. We are growing the organization, preparing for where we need to be for 2021, but even more so for 2022 and 2023. That's a positive sign. We're really looking at where we want to be in the next couple of years. We are increasing costs, but we are increasing costs in a controlled way and we need to make sure that the cost level increases or are at a lower level than the increase in top line. Some market observations we've seen over the last year here for the pandemic. Increased interest for online and remote services, i.e., when clients can log into cloud server or similar and participate in a training session or simulation session online. Distributed, where you might have a presenter or a physician in one location. You have people signing in to a meeting, just as we do now, but really providing them with relevant experience even if they are not in the same location as the doctor. That's something that we see a lot of demand for, especially from the medical device side. I think that also will come with hospitals with needs defined by from the companies like Siemens and Philips as well. Really interesting development here, which is a direct consequence of the situation we had in the pandemic last year. Vascular simulation, really interesting how the combination of physical and virtual makes sense for the market and the client and the ability for us to provide both. It's really a unique ability. I'm really pleased with the acquisition we did in the end of last year. We see a lot of good feedback from the market on the ability to really provide a much broader set of solution and really address more kind of situations. Where some situations, where the physical modeling is more relevant while others, obviously virtual, are the most effective one. We see approach with imaging vendors and the robotic solutions, how we integrate ourself into their solutions is really unique. I really see that as I've talked about that in the past, maybe not recently, but I really see the development and the work we do there day after day is really building something for the kind of future here. We also see a change of attitude generally, and I think to some extent this is driven by the pandemic, where we will see a complete different interest and a lot of discussions. We see a lot of posts on social media and similar, where leading physicians and hospital really are allocating use of solutions like Mentice in a different way than before. Before it's more with unique situations for training and in many cases related to basic training and so on. Here we see a change of attitude where people see that what we do is relevant in their daily practice and by practicing an experienced physician in a much different way than we've seen earlier. I think there as well, actually, the situation in the pandemic has made that clear for many people. I would say as a summary, we are expanding our footprint in the image-guided therapy area, which is really our intention. We don't want to be seen just as a simulation company or just as a training company. We want to do much more. I think what we do here is really expanding that footprint and expanding the perception of Mentice, which is really nice. A little bit about Q2 and beyond, or beyond Q2 rather. Really good outlook for the year with the strong position we have now after the second quarter. We hope we can really provide growth within the frame of the financial targets for growth. Medical device will continue to be the driver for growth, but we obviously hope that we will get support from the hospital market, both direct but also through our partners like Siemens and Philips for the remainder of the year and definitely going into next year. As I said, the strategic alliances with Siemens and Philips are still negatively impacted by the hospital market, but we have a lot of activities there. I will talk a little bit more about that later. We can see that what we have done in the net sales for the first six months and combine that with the active order book for the year really provide a really good base for us to say that we will exceed the 2020 full year's performance and sales. That we can say with confidence. We really were looking at a decent year. Key drivers, with everything on unique technologies, new G7+ platform has gained a lot of interest. We see a lot of upgrades both from hospital and industry. The ability to use the haptic realism functionality on the new platform is really relevant. Our ability in the structural heart, the heart valve arena combined with ultrasound is really a unique solution for the market. The online solutions, the cloud solutions for remote services, all of this really is expanding our footprint, as I said earlier. Vascular Simulations we talked about, a really important addition. Gave us a broader footprint as well. The large client and the work we do with the mega medical device clients is really, really important, and we are expanding our thought footprint there clearly. Neurovascular has been a focus for us for some time. The vascular simulation piece is really neurovascular focus. As you all see in the virtual side, the relationship we have there with key positions in the world and the program we're bringing out there will really be that's going to pave the way for precision medicine and others. More to talk about that in there in the next coming quarters. Strategic alliances, we talked about that before. The integration and embedding and bundling really what we're working on behind the scenes. You haven't seen a lot of that from the result in the business yet. That's clearly going to come. AI machine learning is really going to be important for us going forward. Combine that with the use of data, it's a focus and going to be a focus for Mentice, that will be a critical part for our future, clearly. Linking that together with the robotic solutions where we work with Siemens but also some other players in the market, we believe we have a really strong position there, and that's clearly going to be a sweet spot for Mentice going forward. Really strong start, really positive view of the full year. I believe a very strong market position, and we see good demand for our solutions in all marketing segments. Really nice to be able to present this. Maybe I did this too short, but really positive view of where we are and what we've done for the first half year. Thank you, Göran. We actually have a few questions that have come through. If I could just start those questions and just make sure that Elisabet is with us as well. The first question, it seems to be a good position after Q2. Do you believe this can continue the growth levels through the entire year? Yeah. I need to be careful about answering those questions, obviously. That's our ambition. There is no guarantee, and we're not providing any forward-looking guidance. That's the ambition to be able to continue that. We believe we have a strong pipeline for both Q3 and Q4. That's the ambition, clearly. Okay. The next question is, we have not heard much about the development with respect to Philips and Siemens. How do you think they will impact your business for this year? Well, we don't see that that would be a main driver for this year. Obviously, we probably lost a year or one and a half year due to the pandemic in the development there on the actual business. We have obviously not been standing still during this period of time, and we have been developing the relationship with both Siemens and Philips. We're actually seeing Philips has moved quite a bit over the last six or nine months, where we have installed systems in their U.S. training center. We have installed systems in the Chinese center. The relationship with Siemens, we are really expanding into further solutions and more technology to provide more value to their end clients. The discussion on bundling is clearly go on. We have multiple discussions in several regions but also on global levels, and we hope they would present a tangible result there next couple quarters. That's clearly really linked to the hospital market is still recovering or starting up again after the pandemic. Okay. The final question we have is you are increasing your cost levels. What is the rationale for that? Yes, it's a good question. We are obviously looking at our five-year plan and three and five-year plan. We have an ambitious growth plan for the coming year. We also have articulated our financial targets for growth and EBITDA. The growth level really requires us to build the organization for the need we will have in 2022 and 2023 and further. That's why we are growing in sales. I've talked about this before. We are growing the market organization, which you Martin and run, obviously, where we understand if we're going to double or triple our sales organization in the next five years, we need to have a different infrastructure for marketing. We have further demand from development to really build a broader set of solutions. We have discussions on AI machine learning. Yeah. We are really investing in where we believe we need to be in a couple of years. As you know, if you invest today, you will see the effect of that in nine or 12 or 15 or even 18 months based on what the resources you are adding. We are doing that in a controlled way, and the board and owners understand that we also need to invest to get somewhere that will have a short-term impact on our profitability. You need to invest to really get where you want. Okay. Thanks. That's all the questions we received. I'd like to thank everyone for attending, and you'll be able to find the recording of this session on the Mentice website. Thank you, everyone. Thanks again for joining, and thanks for being part of the inspiring journey we have here already, interesting journey we have here at Mentice. Thank you. Thanks.