Q4 2021. Throughout the call, all participants will be in listen-only mode, so there's no need to mute your own individual lines. Afterwards, there'll be a question and answer session. Today, I am pleased to present CEO Tom Rönnlund and CFO- Thank you. Good morning and welcome to everybody. Thank you for dialing in to our presentation here of our Q4 and full year results for 2021. Together with me here down in Lund, I have Henrik Lundkvist, as mentioned. Next Slide, please. Next Slide, please. Today's agenda, we will have an overview of our results, our financials, and as well as some comments with regards to our outlook and also open up for Q&A towards the end of the presentation. This quarter, we amounted to sales of SEK 170 million, which is our second strongest quarter in 2021 and up 7% versus Q3 in 2021. With the ability to interact with face to face with customers, our activity level has been high, and we've been able again to meet with many customers all over the world, resulting in interesting leads and opportunities on the larger scale than we had during 2021. Still, when comparing ourselves with the fourth quarter in 2020, which was our fourth biggest quarter ever, we were down by 8%, 9% if we adjust for currency. We continued to be pressured by the customer dynamics in our earlier mentioned customers, continued to pressure our growth abilities in that region. Coupled also with lingering effects from the pandemic-related stock buildup, in that region in particular, and slightly lower demand in 2021 from a market perspective through the year and finished the year with close to 28% growth in Q4 compared to Q4 2020. APAC delivered strong growth in the fourth quarter compared to previous year, but still from low levels. Both our gross margin and our facility in Redmond, Washington. For the full year, we have been and continue to be clear that our ambition is to drive growth in our company. While our sales in 2021 was not satisfactory at -3% if we adjust for currency, we did see a market development, particularly in the U.S., which was slower in 2021 compared to 2020. This, coupled with the impact on the missing orders from the two large customers in the U.S., continued to grow in EMEA and APAC. Even with the growth in these two regions, they are not yet of the size to offset the challenges we face in the U.S., leading to a slight decline in our sales revenue for the full year when adjusted for currencies. As we sold in 2021, we're proud of our EBITDA results for the full year. This is an effect of strict OpEx management and continuous work to improve our gross margins through our facilities. We did not reach our full year long, but we are convinced that we have set the track to get there over time. Still, with the underlying consumer demand and interest in probiotics remaining high, higher activity levels among our customers and with our product portfolio. Next Slide, please. If you look at the year 2021, it was an exciting one for us. One of the most notable events during the year was the establishment of the strategic partnership with an investment in Blis Technologies, adding strains K12 and M18 for use in oral health and ear, nose and throat health to our portfolio. These health areas that Probi before the partnership did not have offerings for our customers, and this represents a great agreement. We will also manufacture the product that we sell at our own facility. A positive opportunity to increase volumes through our factories, as well as lower the cost for these strains, which we have worked with in the past, but to a quite limited extent. Just a decline of 3%. We're not satisfied with this, even if it represents our second largest year ever. At the same time, as mentioned, when we compare ourselves to our all-time high in 2020 conditions of 7% annual growth, as we saw the U.S. market slow down through the year and as well as having some specific challenges with Probi and certain customers. The U.S. finished the full year with a decline of -8%. We are very proud about the strong performance in EMEA in particular, and also in APAC, where EMEA reached an all-time high sales result with a growth of 17% over 2020. APAC also showed growth on the full year at 6.5%. This is a good development, and we will continue to invest to make sure that these regions will continue to develop well. During the year, we've also entered into new exciting customer partnerships, most notably with Chinese Sinopharm, for example, who are launching several Probi ClinBac concepts into the Chinese market, as well as the partnership within the wellness area with Oriflame, who are this year launching their first probiotic product into their already initiated in 2020, the launch of Perrigo's Probi five product based on Probi's ClinBac concepts have also performed well throughout 2021 and was a strong contributor to the good performance in EMEA. We've continued the process optimization in our upgraded fermentation facility in the U.S. We are this year installing the last pieces of that upgrade for additionally upgraded capacity during 2022 and onwards. We expect this to continue to have positive impact on our gross margins moving forward. We've also initiated in the last few months of 2021, a total rebuild where it provide us with greater capabilities for pre-clinical research and product development. Not only strategic partnerships, such as Blis Technologies, as I mentioned before, and Vital Nutrients, who have been communicated back in 2020, are a part of our strategic agenda to build our company. We have throughout the year been very active in the space and evaluated several potential targets. Not always is the right strategic fit, and there's also fierce competition for targets, but our activities in this space remain high. Next Slide, please. Looking at our fourth quarter, our net sales landed on SEK 170 million, which as I earlier mentioned, was up 185 million in Q4 last year. That represents the currency adjusted decline of 9% in the quarter. For the full year, we landed at SEK 658 million, which is a currency adjusted decline of 3%. Our EBITDA, 47 million in Q4 last year. This represents an EBITDA margin in Q4 2021 of approximately 32%. The quarterly margin was particularly strong, this past quarter, impacted by SEK 182.5 million in EBITDA, representing a 28% margin. Slightly shy of our long-term strategic ambition of 29%. Even if we didn't reach all the way, we're proud. Next Slide, please. As earlier in the year, our main headwind this quarter came from the Americas, where we were down 17%, reported, and the decline in the U.S. was -8% on a currency adjusted basis. The sales in the U.S. was in Q4, about the same as in our third quarter, and the team there is working really hard to turn the tides and make sure we get back to growth mode. The overall market will likely develop a bit sluggish moving forward, but we remain confident that we throughout 2022 should be able to get back to growth in the region based on the opportunities provided through our. In EMEA, we continue the strong development in the quarter. We were up all the way up to 28% up compared to Q4 last year, and plus 17% for the full year. We've entered into several important customer partnerships with existing customers. It's not only coming from new launches and new collaborations as the pandemic effect in Europe has worn off a bit. With a large part of our growth being driven by new launches and strong development with existing customers, we remain very confident about our opportunities in EMEA. In APAC, even though the specific quarter in Q4 and for the full year, we landed on a more modest growth of a bit above 6%. We had even higher expectations for the region in 2021, but one large expected order that we had planned for by a South Korean customer didn't match. We expect this to help us drive additional growth as we move forward. The launch in collaboration with Sinopharm in China is developing well, and with the strong pipeline we see there, we remain positive on our ability to drive continued growth in the region moving. We had really strong growth margins in our Americas region in the quarter, as I mentioned before, driven by both a favorable product mix, but also high volume, with EMEA down in the quarter and APAC up. Both these dynamics are explained by the product mix that was sold in the quarter. Next Slide, please. I will now walk you through the financial section, so please, turn to page 9. As earlier mentioned, we reported net sales of SEK 170 million, which was an increase of 7% for 2020. We did, however, have a tough compare with a quarter that was one of the best in Probi's history, and that was positively affected by additional demand related to the pandemic. The decreased sale was, as already communicated back in our Q2 report, explained by two large U.S. customers, where sales has not recovered due to stock build-up effects, but also to changes in customers' product portfolio. Our EBITDA landed at SEK 54 million in Q. Increased profitability was mainly explained by the positive product mix, but also an effect of higher volumes in our own manufacturing sites. This gave us an EBITDA margin of 32% in the quarter, compared to 26% last year. Our full year EBITDA landed at almost 28%, which is a number that we are quite pleased with, given that we are missing some sales volume. EBIT was 14% higher than last year, and net income and earnings per share was 20% higher than last year. Net income for the quarter landed at SEK 26 million, which was an increase by SEK 4 million. Compared to last year, we had a negative sales volume effect of approximately SEK 6 million. As earlier mentioned, the positive gross margin effect mainly came from a favorable product mix, but we also managed to push through more volumes in our manufacturing sites. Looking at operating expenses, we did have some extra offset by, again, from the sold machines and lower R&D expenses. The reported total operating expenses were in line with previous year. The financial result plus taxes was also in line with previous year. The gross operating cash flow amounted to SEK 185 million for the full year, which demonstrates the healthy business model. The working capital increased by SEK 16 million, mainly due to a strong During the year, where the largest part was related to the upgrade program of our manufacturing site in U.S. We have, however, also continued to invest in clinical trials, patents, and in our lab in Lund. During the year, we have invested in Blis Technologies. In May, we paid dividend to our shareholders of approximately SEK 13 million. The cash flow from financing activities is related to payments and interest for lease obligation. To summarize, our cash generation continues to be strong, and during the year, we have managed to finance both an acquisition of Blis Technologies and the manufacturing upgrade program in U.S. Despite these rather large investments, we have a stronger cash position. We continue to have a very strong balance sheet and no external bank loans. Our equity amounts to SEK 1.3 billion with an equity ratio close to 90%. This means this development project to grow our business. Blis Technologies has been one good example during 2021, but we are actively working on finding more opportunities. Now turning to page 13 and handing over to Tom again. To page 14 then. Year 2021 was quite tough for Probi. Even if we saw really strong performance in both EMEA and, to a slightly lesser extent in APAC, we did have challenges. We remained focused on our strategic priorities, driving top-line growth, staying in the frontline of innovation and science in our field, and also through investments ensure world-class manufacturing capabilities, making sure that they are attuned to customer demand, delivering high. We continue to have a positive outlook on our ability to reach our long-term ambitions of organic growth of 7% and an EBITDA margin of 29%. We've set the stage for this through important strategic partnerships such as Limus, and also have over this past year added really strong partnerships and accounts with the ability to grow well into the future. We see a stronger pipeline in the U.S. today than we did before, and we've added resources there also to drive demand, and also expect that help us to return to growth in 2022 in the region America. APAC and EMEA are smaller, but still on a very good track to contribute to our overall growth ambitions. Several seeing good signs in their development, and we maintain a positive outlook also for our opportunities there. One element that we've communicated clearly in our growth strategy is in M&A and strategic partnerships. While we have entered into several strategic partnerships over the past year, additional growth opportunities. We are very active in the space, and even if we did not conclude any larger transactions in 2021, we're committed to make this a part of our building our company. In innovation, research and product development, a significant upgrade of our laboratory capabilities, and we have a really high activity level and have interesting candidates for launches, both in medium and long-term, from a medium and long-term perspective. In manufacturing, we are nearing completion in our growth agenda and allow opportunities for improved growth margins moving forward. As a company, we're fully focused on achieving our long-term financial targets, even if 2021 didn't live up to those expectations entirely. We have a great team, a strong product portfolio in the future. With that, can move over to the next Slide and open up for questions and answers. Before that, I have to invite you all to participate in our next quarterly. Thank you. If you wish to ask a question, please dial 01 on your telephone keypads now to enter the queue. Once your name has been announced, you can ask your question. If you find it's answered before Mattias Vadsten of SEB, please go ahead. Your line is open. Yes. Hello, guys. Mattias Vadsten from SEB here. Thanks for taking my question. Beginning just on the sales figure and the missing orders from two major customers in the U.S. in 2021, and you do not expect them to return anytime soon. I guess that's another SEK 15 million-SEK 20 million headwind year-over-year for Q1 2022. Just to make sure that's correct from my end. Thank you, Mattias, for the question. I would say both those two customers had really strong ordering patterns throughout, well, Q2 through Q4 last year, and to a lesser extent in Q1 2022. Perfect. Perfect, Isier. Just on the U.S. market as a whole, obviously difficult question coming here, but do you expect it to grow faster in 2022 compared to the growth rate in 2021 overall? I mean, given the stuff, but what do you expect for 2022 there? What we're seeing is a higher activity level with our customers. We're also seeing more and high quality leads coming our way as well, that we're working on together with our customers. As you know, there is a bit of a lead time in terms of where such things materialize in our business, so it's not overnight. Judging from that, it seems like 2022 could be a better year in the U.S. compared to 2021. At the same time, if you look at the global forecast, et cetera, the U.S. is estimated to grow in the low single digits or be about flat year-over-year for the next four or five years. We do view our opportunities in the market as quite strong, both based on the fact that we now have completed the upgrade in Redmond, as well as added additional health positions to our portfolio through the collaboration with Blis. We expect to return to growth in the U.S., but we are shooting, probably. I mean, 2020 was significantly high there, but with- Great. You know, nice to see the strong gross margin in America. I think two questions here. Can you provide us with some flavor in terms of the product mix that you're seeing and also the fact that you produce more in your own manufacturing? Do you mind disclosing how much is produced in your own facilities today versus a year ago? Just to put it into a little bit of a context here. That would be great. Thank you, Matthias. We do not share those specifics out of competitive reasons. Like the lower relative sales, the fact that we've been able to manufacture more of our demand internally versus sourcing it externally has supported the gross margin in the quarter. Any expected gross margin headwind for next year, given higher input costs overall that we're seeing? We're seeing that as everybody else, transportation, raw materials, consumables, et cetera. From that perspective, we do believe that that is gonna hamper some of the benefits we see from our internal manufacturing operations. We're also, of course, focused on making sure that we also raise our prices to our customer needs for price increases. That is an integral part of our strategy as well to offset those negative impacts that we're experiencing from sort of overall inflation and rising input costs. Great. Operations and partnerships. One is related to the missing order in Korea I alluded to. Is this related to the customer that was expected to contribute SEK 10 million to sales during 2021? If so, I mean, at the time of the announcement, it implied SEK 10 million Q4, and do you expect this to come during the beginning of 2022, or has anything changed here? The customer in question, we have mentioned them during last year as had passed over the $1 million or EUR 1 million mark. They did place orders with us last year, but not reaching the full potential that we had expected. The order that didn't materialize then in Q4 when it falls, we don't have a solid order in our books right now, but what the indications are that they will place this bit by bit throughout 2022. Perfectly clear. That we launched in 14 European countries, according to the go-to-market strategy back then. Are you all up and running in those countries or are there, you know, further launches left during the They're launched at five markets so far. Don't quote me on that. I I think you're right on that. Yeah. Yeah. I think it's A handful or- Yeah. A handful of those. Of course, they're assessing the individual market stream but the exact time schedule of that is not clear to us. They decide on that themselves, huh. So far, it's in five markets. It's doing well, and we hope to see more launches coming out. Really good. My last one is on Oriflame then. You know, at what month did the initial launch go ahead? Sorry. Just repeat that. I didn't quite hear you there, Mattias. Yeah. My question was if you are pleased with the initial performance of this collaboration with Oriflame? The launch is happening as we speak, as they roll out new products and concepts in their social selling networks system. They have taken one first order, I believe, from us to Start to stock their pipeline, basically, and fill their warehouses. Of course, now it's gonna be dependent on their drive demand for the product. It's still a bit early to say whether or not it's successful or not. Great. Sorry for having so many questions, but thank you very much for answering. It's okay. Thank you. Thank you, Mattias. Hello. I have two questions regarding the Blis Technologies transaction. First, your recent acquisition, Blis, it targets oral health. Are there other new areas you are interested in adding to your portfolio? Second, could you perhaps talk a bit about how you think about sales synergies when you evaluate new potential acquisitions? Thank you. Thank you. Yeah. Your first question, other health areas that we're interested in and as through the collaboration and partnership with Blis Technologies, we've added oral and ear, nose, and throat. Yes, there are other areas, most notably for us, we are active in as well as mental health, building on the rising body of evidence with regards to the gut-brain axis of the microbiome actually having impact to be evaluating both from a sort of internal development perspective, but also from a sort of potential collaboration or investment perspective. There is also skin care, which where we have some activities in collaboration with our main shareholder Symrise today. Also, Blis actually has interesting product offerings within this area. With investments, of course, that is a part of our evaluation of targets. We've been clear that we, when we look at acquisition targets, we're either looking at adding opportunities to our product portfolio, where we are today, relatively under-resourced, compared to our ambitions in the regions. Yes, that does form a part of our strategic assessment of the potential investment targets. Thank you. Our next question comes from the line of Jakob Lanke of ABG Sundal Collier. Please go ahead. Your line is open. Hi. Good morning. Lots of questions already, but I have a couple. You mentioned that you invest more in your lab in Lund, and we're also seeing benefits to gross margins from product mix. Should we sort of interpret this as you increasingly more? The investment in Lund for our laboratory is mainly focused on providing us with greater capabilities from a preclinical point of preclinical development and external partners for that to the benefit of faster turnaround and lower cost for that. Also very important element for that is expanding our capabilities to work with product development with our old lab was fit for purpose but was in need of an upgrade. Those are the main two reasons for investing in that rebuild of the lab. You can update some sort of the timing of you potentially being able to offering their strains in your offering? Yes. Thank you for the question, Jakob. Our ambition was to actually have run our first one additional piece of equipment in the production line for those specific strains. That machine was ordered well in advance, et cetera, but actually had been held up and delayed in delivery to us. We now have it despite global ongoing challenges in deliveries of certain components. Anyhow, we have the machine now in our facility since a week or two back. It now needs to be fitted and fine-tuned, et cetera. We expect to run the first towards the end of the first quarter or beginning of the second. Of course, the commercial teams are already out selling the concept. We hope then to see impact of this towards the end of this year. All the questions I had. Thank you, Jakob. Thank you. Currently we have one further person in the queue. So just as a reminder to participants, if you do wish to ask a question, please dial zero one now. The next question is. Go ahead, your line is open. Just one additional question from me. Can you give us some flavor to what extent sales in physical stores has been affected by the rapid spread of the Omicron variant around the world since mid-November or so? seen any strong signals from that. If we look at our U.S. sales in particular, we got a healthy mix of sort of in-store sales, retail sales, and comment on that. We have not seen any customers so far saying, "Okay, it's not moving from the shelves because people have not been in the stores, so we're canceling further orders." That we have not seen an impact so far. Thank you very much. Questions from the phones at this time. I'll hand the floor back to our speakers. Thank you so much for your attention and participation today, and looking forward to speak to you again in April.