Welcome to Probi Q4 Report 2022. For the first part of the conference call, the participants will be in listen only mode. During the questions and answer session, participants are able to ask questions by dialing star five on their telephone keypad. Now I will hand the conference over to CEO Anita Johansen and CFO Henrik Lundkvist. Please go ahead. Welcome, and thank you for dialing in to Probi's presentation of our Q4 Results for 2022. With me is Henrik Lundkvist, the CFO of Probi, and my name is Anita Johansen. I'm the interim CEO of Probi since December last year. Before commencing with the financial results, I'll provide a short background of my professional profile. I joined Probi in April 2022 as the VP of Research and Development. In this role, I'm maintaining in parallel with my current interim CEO role. My education is a Master in Pharmacy, and I have earned a PhD in Pharmaceutical Technology from the Danish University of Pharmaceutical Sciences, which is now the University of Copenhagen in Denmark. I have more than 20 years of experience from working in the consumer healthcare industry, holding senior leadership roles in new product development in companies like Pfizer Consumer Healthcare and Novozymes OneHealth. Please take a few moments to familiarize yourself with this statement. This is the agenda of our presentation today. I'll start with the executive overview. As described in our year-end report that was published earlier today, quarter four was financially a very hard quarter for us. In the fourth quarter, our net sales decreased by 15% to SEK 144 million. Unfortunately, the year ended with historic winter storm conditions over North America, which delayed delivery of orders having a value of SEK 18 million in net sales. Our EBITDA margin in quarter four ended at 11%. This number is affected both by the delayed deliveries of orders and for some extraordinary one-off expenses. These one-off expenses are related to business development and also personal costs for off-boarding the former CEO and other restructuring. When adjusted to these one-off items, the EBITDA margin in quarter four was 24%. One of the positive highlights of quarter four that we expect will contribute to our growth this year is the takeover of the distribution of our own brand in Sweden, which will start April 1st in this year. One outcome of our business development efforts in 2022 is the purchase of the sole rights to a spore strain. This is a new product category, this will provide us with opportunities, especially in the U.S., due to the ability of spores to be used in more consumer-friendly forms like gummies. As already mentioned, on December 8th last year, the board of directors of Probi released Tom Rönnlund from his responsibilities as CEO of Probi and announced the appointment of myself as interim CEO. A new recruitment is underway. The last bullet point on this slide states that the board of directors has proposed to the annual general meeting a dividend of SEK 1.30, which is equal to last year's dividend. When we look at the entire year of 2022, this was clearly a financially challenging year. Total net sales landed at SEK 618 million, which is a 6% decrease versus 2021. The EBITDA margin for the entire 2022 amounted to 22% versus 28% in 2021. Adjusted for one-off items, the EBITDA margin was about 25%. When digging into the three regions, we saw that the Americas region decreased by 6%. The weaker development in the Americas region is driven by changed order patterns and a more cautious market. The EMEA region is generally developing well, and we see a positive trend with most of our customers in this region. Unfortunately, the execution of the planned big European launch by our customer Perrigo has not gone according to their expectations, and they decided to stop the launch and take the brand off the market, which has impacted our EMEA results with an overall decline of 12% versus last year or the year before. In APAC, we had good progress, and we increased our net sales with 10%. Turning our focus to the new launches, Probi has progressed R&D activities, and we've launched several innovations in 2022. First, our strategic partnership with Blis Technologies allowed us to transfer the production of the strain BLIS K12 to our Redmond fermentation facility. We produced the first commercial batches in March 2022. This capability will contribute to our growth in 2023. Also during 2022, our collaboration with Symrise resulted in the launch of SymFerment, which is now commercialized by Symrise. This is an upcycled fermentation media from Probi that has the potential to be used as a moisturizing active ingredient in cosmetic products. As stated here, it has been very challenging to progress clinical studies during the pandemic and also in 2022. However, at the end of 2022, we were pleased to finalize a pilot clinical trial exploring the potential benefits of Probi strains in the so-called gut-brain area, also called mental health or brain health. Here, I prefer to use the concept Gut-brain and not call it mental health. Gut-brain covers a broader spectrum of health areas such as mood, sleep, stress, and cognition. We see a growing interest and a great potential in this area. We expect to deliver a concept proposition to our customers during 2023. In 2022, we continued our investment in our production capabilities and especially in our fermentation capacity investment. Now I will hand over to Henrik for a more detailed financial review. Thank you, Anita. I will walk you through the financial section of the report here. As Anita earlier stated, we reported a net sales of SEK 144 million for the fourth quarter, which was a decline of 15%. If we adjust for currencies, it was a decline of 27%. The quarter was negatively affected by the snowstorm that hit parts of the U.S. and delayed orders in region Americas of a value of SEK 18 million. If we adjust for that, the reported level in Americas would have been in level with previous year. In APAC, we saw strong growth of 27%, but it's still from low levels as APAC is our smallest region. In region Americas, we declined by SEK 9 million, and as earlier said by Anita, it was Perrigo that partly explained that one, but it's also our Swedish distributor that is currently reducing their stock level as we are taking over the distribution in April, which means that they have placed fewer orders with us in the last quarter. For the full year, our sales was SEK 618 million, down 6% compared to previous year, or -17% if we adjust for currencies, as we are being helped by the strong US dollar. The profitability, if we look at the EBITDA in Q4, that one was significantly negatively affected by large one-off expenses and the de-delayed order, and adjusted for this, it would have been around 24%. Should also mention that the compare was really strong with a 32% EBITDA margin. The EBITDA for the full year, the reported was 22%, but adjusted for the one-off items from Q4, it would have been approximately 25%. Overall, the lower sales volume explains why the outcome is lower than last year and the target as well. If we look at the regional sales for the full year, we see on this slide that Americas was down 6% or adjusted for currencies, minus 20%. If we would have adjusted for the delayed orders for the full year, it would have been down 2% in reported numbers. The American market seemed to be a bit more cautious, but we also had a couple of larger customers where we saw decline versus last year. In EMEA, we see a good development with many of our customers, but we couldn't fully compensate for the decline we saw on the Perrigo account. In APAC, we saw good growth by 9%, but from low levels. The growth mainly comes from the Chinese market despite the COVID restrictions during the year. We are optimistic to further develop this market during 2023 when it's now possible to interact more with our customers. The profit or the gross profit or the gross margin in region Americas, it was slightly lower compared to previous year, connected to lower volumes. That is the same story in region America, slightly lower compared to previous year. The opposite for region APAC, where we had 58% in gross margin compared to 56% for 2021. If we look at the reconciliation of our net income, we should keep in mind that the first, that the compare was very tough here with an EBITDA margin of 32%. Compared to that one, we have, the lower net income mainly is a result from lower volumes together with a lower gross margin. They are, of course, interlinked, the two of them there. In the quarter, we also had very large one-off items. If we adjust for the delayed orders and the one-off expenses, net income would have been SEK 12 million instead. Our cash flow, the gross operating cash flow amounted to SEK 142 million for the full year. We had a positive cash flow effect from lower working capital by SEK 29 million, mainly due to lower accounts receivables. We have paid taxes of SEK 15 million. We have continued to invest in our manufacturing sites. We also upgraded our laboratory in Lund, and we have invested in clinical trials and patents, et cetera. Total amount of SEK 65 million, and the majority of that is, of course, the manufacturing site in U.S. We have paid dividend of SEK 15 million during 2022. Our financing activities has been, we have paid SEK 15 million connected to that. We have a positive FX effect on our cash on hand of SEK 10 million, which means that our ending cash was SEK 324 million. We have generated SEK 73 million in cash, even if we have invested quite significant amounts in our manufacturing site and also paid dividends to our shareholders. A quick look at our balance sheet. It continues to be very strong, and we have no external bank loans. Our equity amounts to SEK 1.4 billion with an equity ratio of 90%. It's of course, very good for us to have a strong balance sheet, especially under the current macroeconomics uncertainties in the world. This position enable us to further invest in new projects, capabilities, and will allow us to continue to build the growth platform for Probi. Now I will hand over the word to Anita again. Thank you. Our outlook for 2023 is clear. Our key priority is to come back to growth and thereby increase our profitability. We have already strengthened our sales team in the Americas region, which is covering 75% of our net sales distribution. Also, during 2022, we actively worked with driving our marketing and sales efforts towards selling more of our Probi ClinBac® products, which have better science and better margins. These efforts will continue in 2023. In Sweden, the takeover of the distribution of our own brand from April 1st is a key must-win that should provide us increased net sales of around SEK 10 million on an annual basis. Also, very important is to timely succeed with the launching of new innovations that can contribute to growth. According to a recent article from December last year in the Nutrition Business Journal, brain health is the number one trend expected by U.S. consumers when they are asked what they intend to purchase in the next year. The trend for brain health is followed by immunity and digestive health, which is also our core areas. Therefore, as I've already mentioned, we see very good potential in our coming gut-brain offering based on the results of our recent pilot study. Furthermore, launching spores will enable us to offer a product that our customers can apply in gummies. It's a new delightful type of format that is increasingly demanded by many U.S. customers specifically. As mentioned earlier, last year, we continued our investment in production capabilities, especially in our fermentation site in Redmond. We'll continue the upgrade of equipment, and we'll improve our production process and ensure that we have the right resources in place to benefit from our investments, investment in manufacturing. This is the end of our presentation today, and we are ready to take questions. If you wish to ask a question, please dial star five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star five again on your telephone keypad. The next question comes from Gonzalo Artiach from ABG Sundal Collier. Please go ahead. Hi, good morning, Anita and Henrik. I have a couple questions, the first one is on the short-term, midterm strategy in the U.S. What is, I mean, if you could give us some color on that. It's true that you mentioned in your report that you're still cautious on this area, could you give us some words on that? Also, I mean, in the previous quarter, you announced that you had two or three new customers for the Probi ClinBac® segment for early 2023, which could be quite relevant. Is this still ongoing? Okay. Good morning. Good morning, Gonzalo. To talk about the two or three customer, that was, I will start with that piece that was mentioned in the previous report. They are still valid. As we speak, we have one of them we have received POs from, and the other two, I would say we are trying to close down, and we expect that to happen during the first quarter of this year. They are very much alive and the late stage for us. We are confident that we will see some growing accounts. Of course, they are not big from the beginning. These are accounts that needs to grow over time. We are very optimistic about these larger accounts that could become key accounts going forward here. It's also three accounts that or two of them at least are in, ClinBac®s, ClinBac® section, which means for us that it's a bit higher margin compared to our average margin, which is also positive for us. Maybe I can answer the first question. With regards to the short, medium US strategy, I think I actually already mentioned it. Our strategy has been to strengthen our sales team. We have moved our VP of sales and marketing to the U.S., and we have strengthened our team there with capabilities. We think we have the right team in place, then going out to customers, showing all our good concepts and especially our ClinBac® as Henrik also mentioned. Then of course, adding on top of that our new innovations that will provide more opportunities to discuss with our customers. Okay. Thank you very much. I have a second question, and it's on the spore strain what you were describing now in your report. You have bought the right for the spore strain from your partners, and now you can start to drive product development and commercialization faster. Could you give us some words on that also and how fast you can start now commercialization with this segment? Sure. Maybe Henrik can give the background of our partnership in the past, looking forward, I can say, having the 100% ownership of the strain allows us to make the partnerships and agreements that we need to have in place to produce the strain and to put it in place and ready to order. We expect to be ready to offer this spore strain and have the first sale in early quarter two this year. Okay, great. Thank you. One last question is on the U.S. impact of these snowstorms that you mentioned that it's around SEK 8 million in net sales. Is the whole totality of this going to be received in Q1? Or how does it look? Yes. It was SEK 118 million that was delayed, and they went out already the first week of January. Yes, it will be seen in the Q1 report. All right. Thank you very much. Thank you. The next question comes from Mattias Vadsten from SEB. Please go ahead. Hi. Thanks for taking my questions. The weakness that you have experienced previously was mostly an effect of weaker momentum in LiveBac® as far as I've understood things. Is this still mainly the case, or are you seeing sort of headwinds within the ClinBac® segment as well? That's the first one. Yeah. Good morning, Mattias. Yeah, it is, it continues to be mainly LiveBac® where we have seen some issues or. It's a general cautious market. As you know, the ClinBac® segment, it takes time to get in new customers. It's, it's not new business overnight. It's long negotiations and, potentially we also see a market that is more cautious in launching new products. It's, more of a, you know, consolidation right now where our customers, ensure that they have profitable products and, are potentially a bit cautious. Good. The next one, I mean, you are cautious in the report on the market outlook for US and EMEA, and we've heard that from other players as well. Not much comment around the APAC region. I mean, you are doing quite well there, and it's in China is doing okay. Could you give me some comments on China and maybe Asia overall, what you see there in terms of consumer behavior and so on, activity-wise? Yeah, of course, there's been some cycles here over the last couple of years with the close down-. Yeah ...etc. We are coming from relatively small levels, to be honest. We have a large opportunity there, and we have also strengthened the team over the last couple of years here. We are looking at our pipeline. We are quite confident about that region. Of course, things can happen in China now when things are opening up, et cetera. Yeah, we are getting traction in some of the markets in APAC. We are quite confident about that region. Good. May- The next one. Okay. Yeah, sorry. No, I just wanted to add that when you look at APAC, every market is different, and some of the markets have a little bit more complicated regulatory processes. Timing-wise, it is not necessarily something that will happen tomorrow, but we do have very good interactions with customers and very big interest in our, specifically in our ClinBac® concept. We are generally speaking positive about the developments in China and APAC in general. Good. The next one is probably fast. I mean, in EMEA, you declined sales some SEK 9 million compared to Q4 2021. How much of that effect is this, you know, Sweden decision to go yourself with own brands? I guess this effect should remain sort of year-on-year in the next sort of 3 quarters, or am I missing anything there? No, no, it's a fair comment, Mattias. I would say that more than half of that, or let's say approximately 50% of that decline was connected to that. You're right that this will also be visible in the Q1 report because they need to cycle out their inventories. Starting from first of April then we should do the launch. Yeah. I guess that is the pattern that we should see. A slowdown in Q1 and hopefully an aggressive growth in Q2 when we take over the business. Then we need to do the work and continue to grow the business over the next upcoming quarters here. That's very clear. Thank you. Obviously now some cautious sales numbers here in Q4, but do you see a risk to Q1 where, you know, possible pre-buying behavior from distributors from Q4 will impact Q1 since you had price increases kicking in from turn of the year into this year? Is that something that we should think of when looking at Q1 or how do you see that? No, no. Of course, there's always some customers doing that, but, I wouldn't say that they are significant. A small amount of that, but not, completely distorting the picture. Okay, good. Obviously many questions, but the last one would be, you talked about the investments and so on that you've done quite a lot during this year and also for 2021. Do you expect such investments to fall somewhat into sort of this year and 2024 in absolute terms? How should we view the CapEx profile of Probi? I think we will continue to invest. It's an ongoing thing, I believe. We absolutely already have invested, and we have also seen the benefits of that, but we need to continue to make sure we upgrade our facility and our equipment to be able to be as efficient as possible. I think we will also see a similar CapEx this year. Okay, clear. Thank you very much. Thank you. Thank you. There are no more questions at this time, so I hand the conference back to the speakers. Okay. No more questions, that means that we will end for today. The next time, we will be at the end of April for our interim Q1 report for this year. With that, I just want to thank you all for listening, and have a good day.