Welcome to Sectra's financial report presentation with CEO Torbjörn Kronander and our CFO Mats Franzén. My name is Helena Pettersson, Investor Relations Officer at Sectra, and I will be moderator of the Q&A session today. This is the first time we do a report presentation in this way. If you can switch or I can switch slide. As you can see, the agenda is the same as before. I will just give you some brief instructions before we start the presentations. The chat function is open, and you who watch online can use it to ask questions during the presentations. Management will address the questions after their presentations. You find the chat function on top of your screen. It's a symbol that looks like a speech bubble with a question mark in it. If you don't see it, you may need to switch to mode with full-width screen. With that, I leave the word to Torbjörn Kronander. All right. Thank you very much. I will begin, and then Mats will come in a little bit later. Sectra creates value for customers who then share a part of that value with us in Imaging IT, which is our biggest business area, and that is mainly managing, communicating, presenting medical images. We started with radiology. We're increasingly doing more and more ologies of different image types. We are, till to date, the only company who can do all medical imaging in one single system, which is important for hospitals because they don't want a lot of different IT systems when they can avoid it. We also have an operation Secure Communications, which is where Sectra started. Sectra stands for secure transmission, and that is mainly very high-level encryption, I'll come back to that, and data security. We have Business Innovation with two areas, Orthopaedics and preoperative planning for orthopedic procedures and postoperative follow-up. We have Medical Education, which facilitates medical education. We started by replacing cadavers and dissections, but we're increasingly doing entire programs for medical teaching education over the web. Q1 highlights. We had a very strong Q1, unusual for us because normally the Q1 is weak. Our net sales rose by 35%, profit per share rose by 331%, and order bookings actually decreased by 35%. We are very volatile between quarters, and that uptick in profit and downtick in order booking shouldn't be taken too seriously because the variation between quarters are normally very large at Sectra, and in the COVID situation, it's been larger than normal. We say very clearly we don't expect this very large increase in Q1 to affect the whole year. Our financial targets are from the left here, equity to asset ratio, that's stability. We deal with products and deliveries who are mission-critical for our customers, may they be government for security or large hospitals who depend completely on the imaging systems. It's very dangerous for them to trade with customer or vendors that are not financially stable. They want us to be around. We have a stability equity assets ratio, a target of 30% or above. We are well above that at currently 59.6%. Our second priority target is profitability and operating margin. The target there is 15%. While COVID has decreased travel a lot, and international exhibitions as well has been very much decreased, we're ways above the 15%. That is not the place we want to stay. We want to invest that money for future growth again. Right now, that would come out of the COVID situation. We will increase cost again as soon as international travel and all travel in general can begin again. Then we have a third goal, which is growth in EBIT per share over a five years period. That should be above 50%. Right now, we are at 161.3% growth. All the financial targets are fulfilled. We do have seasonal effects, and as I said before, the pandemic has increased these. Travel and marketing costs will increase after the pandemic, but we do not believe it will go back to historic levels. Both the customers and vendors have learned a lot from the pandemic, and we are more effective now than we used to be. It will come back, but how far, we don't know yet. Depends a lot what customers demand. In Secure Communications, we are participating in Vinnova, which is a Swedish fund for research and development. It's more and more clear, especially after the pipeline was attacked in the U.S. East Coast from gas, that society as we built it is extremely sensitive to cybercrime. Therefore, more and more authorities and countries stock products. We are participating in sustainable energy product with cybercrime knowledge and products in that large product, which is a governmental product in Sweden. We also note that we have inadequate margins in Secure Communications. This cannot go on for long. COVID has impacted Secure Communications a lot, mainly because a lot of those discussions cannot be done over Teams. The sales discussions and the deliveries actually of our high-end product must be done in person. If they are done by courier and we have to go there to discuss with customers and we cannot travel, this is impossible. It's not safe enough to do this over Teams or Zoom or any other medium like that. We hope for a rebound when COVID gradually decreases. The financial performance in Secure Communications is that the sales were SEK 38.5, a little up. Profits were down. That's SEK 0.1. Our profits was up actually, SEK 0.1, just barely profitable, and operating margin is 0.3%, which of course is not where we want it to be or can have it to be long-term. Growth initiatives in Secure Communications is mobile secure workplaces. That's a very important part. In the COVID situation, more and more people have been working from home, but they want to have the same cyber security as if they were in the office. This demands special products, special services, and high-level security. We see a growth area in that space. We do have a lot of, as I said before, societies and governments are becoming gradually aware of how important it is that critical infrastructure is not attacked over the internet. That is another area where we work a lot. We deliver the highest possible security levels for secure mobile voice and network systems. It's a mobile, very high-level security up to the secret and top-secret levels, and also for high-speed network encryption devices, where you can do very high-speed links over secret and top-secret communication levels. In Business Innovation, we have made both Orthopaedics and education to independent legal entities. We still include in the Business Innovation segment as reported together. We had a strong negative impact from pandemic effects, especially in Orthopaedics, because more or less all elective procedures, which is planned operations and for instance, a replacement of a hip is a planned operation. Most of these were canceled for a long time. That of course affects the plan. You don't need to plan if you don't, are doing the operations. This, however, has piled up. These operations still need to be done, but we have had a large negative effect during the pandemic. Sales were SEK 12.3 million. Operating profit was a loss of SEK 1.5. It's better than last summer, but it's of course not where we want to have this long-term. Growth initiatives in Business Innovation, in Medical Education, we have seen that while medical students have been trained from home, it's again, they want a service that they actually can teach, for instance, anatomy from home. That was the large project, especially with Sapienza University of Rome, where we taught those students from remote, even though they had lockdown in Rome. This has been an immense success, and we see increasing demand also for doing this type of training education when the lockdown is over. New areas within orthopedics is that we have before, historically, we've been working with pre-operative planning. That is planning what prosthesis should go into which person. We see a very large interest in actually see if these prosthesis are moving or not. Because if a prosthesis moves in comparison to the body, it has to be redone. A version of that system, the implant motion and movement analysis, is actually when you use it for medical studies. For instance, a prosthesis company want to see if a prosthesis move down over time, and we call that CTMA, Computed Tomography Micromotion Analysis. We can identify very fine motion, which is required from authorities to approve a prosthesis for clinical use. In research, we mainly focus on AI for medical applications, and we also look into future application areas that might be of interest neighboring to what we already do. Q1 highlights in our largest area, Imaging IT Solutions, we had a large growth in the U.S. A couple of years back, we said that we're going to focus on the U.S. This has worked very well, and we now exceeded SEK 0.5 billion in rolling 12-months sales in the U.S., which is today our largest market. Several top U.S. healthcare providers use our solutions for radiology, and increasingly also other diagnostic imaging area as digital pathology and cardiology. We have also a special app store, as we can call it, but for AI vendors. We can't do everything ourselves, and AI has a lot of different vendors out there, and we open up a marketplace for them within our workstations, and we expanded that workspace or that market with digital pathology, before we only had radiology in that area. Imaging IT did very well. The sales went up to SEK 362 million in the quarter from SEK 260 million, and the operating profit went up to almost SEK 100 million from SEK 35.7 million, and the operating margin went up to 27%. Growth initiatives in Imaging IT solutions are new markets. We work with new markets all the time. We're looking into expansions where we are not already. We don't want to be global. We don't want to sell to the entire planet. We want to be in a number of direct markets or indirect markets, but we want to grow a large market share where we are. We don't want to be small in a lot of places. That's very difficult to keep customer happiness up in that situation. It's also more difficult to get profitable. We're expanding new markets after a while. We also concentrate on enterprise imaging, where one single back-end system can have radiology, pathology, integrate diagnostics for a combined pathology and radiology, especially for oncology purposes, and cardiology in the very same system. This saves a lot of time, workforce, and money for our customers, and we are the only vendor to date who have that installed, where we have all these ologists for different images in the same system. We're also focusing even more on the U.S. It is the world's largest medical device market. We do top customer satisfaction, and we have a small but growing market share, so it's a place where we can grow and have good prospects for growing for a long time to come. Financial development, I will give the word to Mats. Thank you, Torbjörn. As we have said before, the order bookings is a quite significant downturn compared with last year. The two previous years before that, on the other hand, we didn't reach 300. The book-to-bill is obviously below one in this quarter. We're down from 1.6 fiscal year-end to 1.4 now, approximately. About SEK 220 million in reduction comes to 70% from two areas, Secure Communications and the U.K., with Imaging IT Solutions. The difference is not all over the line, but in a few big markets. If we add a third one, being North America, we cover 90% of the difference. Strong sales, some headwind, about 3 percentage points, weighted, I checked that, compared with last quarter, but not a significant impact, really compared with what we have seen in historical periods. As we said about this, earlier than we had expected, deployment in the U.S., two bigger deployments. One was expected in August and another one in November was in the U.S., which you can see on the geographical spread where we have. With the exception of Netherlands, we see contributions in all their major markets, but the U.S. clearly is ahead of the curve in terms of this quarter. As we have said before, this is not something that changed the view of the full year, as we can see it from where we're standing, at least. A big surprise. No, not really. This time it was actually Imaging IT Solutions who actually contributes to more or less the whole growth in the quarter. As I said, geographically in the U.S. primarily then. That also goes for the earnings. Since these two deployments was revenue recognized to a large extent in the first quarter, we see a nice uptick. Again, a temporal one that was supposed to be spread throughout Q2 and Q3 to quite a significant extent. That was a bit too fast. What happened here? Something went wrong. You can use a computer. Let's see. Now. It seems to be done manually. We have a Teams problem, obviously. Networking problem. We apologize for this. It seems we have a problem with the networks here. Can you please try to share your PowerPoint? Okay. Sorry for that. Apologize for that, yes. Here where we left off. The final commentary is actually on the cash flow. As you can see, we have sluggish cash generation this first quarter. Actually, I would say it's the comparative year that was extremely strong with a high conversion rate from strong invoicing in the fourth quarter, and quite sluggish, especially in the first quarter, which meant that we could convert, let's say, the year-end receivables to a larger extent than we could now, because this quarter we have had strong invoicing in the end of the quarter. Also somewhat higher investments, some SEK 18 million shorter, compared with SEK 30 million in the comparative quarter. With that, I leave the word back to you, Torbjörn. Thank you for that, sorry about that little interruption. It was something in Teams that went wrong. What are we going to forward? We will continue our focus on high customer satisfaction. We believe that is the only long-term, sustainable way to grow business. In order to create high customer satisfaction, you need happy employees. It will not work. In a fast market, you also need a very good and strong company culture. We're working a lot with that. We want to continue to grow profitably. Of course, we want to skate to where the puck is going to be. We want to be where the market goes five years from now or so. When that hits, we'll be there ready, and we have done very well in that historically. Pathology is a good example. We started that eight years ago. We now see that we are in a very good position worldwide when this market finally picks up speed. In customer satisfaction, of course, last year we won five Best in KLAS awards, which is a U.S. customer survey company. We're very proud of that in the most important area for ourselves, which is large hospitals in the U.S., PACS for large hospitals. We won it for the eighth year in a row. That is a very important part. It shows other potential customers that we are keeping our promises, we are doing good delivery, and our previous customers are happy with what we do. We normally say that success in business is quite easy. Just live in that golden rule, and we try to teach our people and get this into the company culture. If your company behaves as you want to be behaved to, we'll be okay, and that goes through what we try to do with customers and internally at the company. A very interesting rule is present in almost all religions known to man in one version or the other. We also see that the recurring revenue is increasing now. We are beginning to publish this in a way that we have not done before in our reports. We are moving gradually, fairly slowly yet, but gradually with pay for usage for our services. We are selling software as a service instead of software as a license. Now, this is not a fast transition. We have to comply with customer wishes, but we will gradually go over to more and more recurring revenue. The interesting thing is that this is perceived as improved value for both customers and vendors. As you might know, most of the world in software is going over to these kind of models. We have a Sectra One subscription that was presented last year on one of these meetings. It will play a very important role in this transition, and it's well thought out, and the customer can subscribe, and then you can use any of our services. You can use it for radiology, pathology, cardi ology, orthopedics, or whatever you like. Transition will be gradual, however, as I said, but it has been somewhat accelerated by pandemic effects, especially in the U.S. Skate to where the puck is going to be. This is Wayne Gretzky, who was known to be the best hockey player for many years in a row, and he was once interviewed and asked, "How can you be so good in hockey? You're not very good in anything." He said, "I skate to where the puck is going to be, not where it is." That is a mantra we've had at Sectra for many years. We want to see what are the major trends in society, so we can be at a certain place with certain products when that need kind of blossoms out. Productivity of healthcare is at core of society's needs. There is no way we can continue the cost increases in healthcare as a percentage of GDP. It has to be controlled, we do product that facilitates that. We consolidate all medical imaging, so you don't need many systems, we can do remote pathology, for instance, which is a very important thing, pathology, because it's so specialized. It improve workflows and interactions. You can speed things up, not compromising quality as well. You can also use AI to gain efficiencies in some areas. That AI would replace radiologists or pathologists, that is science fiction still, but it can make them more effective. There is a quote that we use from Curtis Langlotz, also Stanford University in the U.S., that says that AI will not replace radiologists, but the radiologists who use AI will replace the radiologists who do not. Secure mobile workplaces, as I said before, during the pandemic, we've seen a huge increase in working from home, and people still need to be as safe as on their network in the office. Secure communication channels. Society is increasingly threatened by cybersecurity, cybercrime, and you need to communicate safely between different offices and different entities. We have some completely new areas that we look into as well. Implant movement analysis, that's a huge market. Unnecessary revisions, that is reoperations and putting in new prosthesis, are both dangerous and very costly. Can we increase or decrease the number of those by more accurate measurements? It's a huge gain for society and for individuals. Also digital pathology, that is still just in its very infancy, and we will see a large growth in that area in years forward. We have been very open how we prioritize things with shareholders. We say that if you have happy customers, happy employees, and happy employees can make customers happy, and they can. A good position in growing markets, it's easy to grow in markets that grows. A reasonable perseverance and reasonable cost control, then shareholders will be happy. It has to come in that order. That is why we have customer satisfaction as such an important goal for ourselves. We have also added some proposals to the Annual General Meeting that will be held by mail next week. We are proposing a split. Our share value, share price is quite high. We are proposing a split, one share is divided into five. The share redemption program will be kept at SEK 90.9 per share in the new shares, which is equivalent to SEK 450 in the old shares. We have proposed that we will also introduce a long-term performance-based incentive programs. That is important. We have historically been using convertible debentures. That doesn't work in all countries, and it has been increasingly difficult to administer. We are proposing a matching shares program, and you can read more about that in the notes with the Annual Meeting. We believe that would be very good to incentivize and keep employees. The upcoming financial reports and the AGM next week. Well, the AGM is September 14. We only do postal voting. That will be entirely a virtual meeting. Then we have our six-monthly report December 10 this year. This was the first time we did it in this way. It's a test for our side. Please let us know what you think of this kind of way of presenting things. Send an email to info@investor.sectra.com what you think. We can modify, we can go back to the old, or we can keep this and go forward based on your feedback. If you follow us online, please use the chat functions to give questions. Otherwise, our analyst is included in the meeting. They can do oral questions as well. Will I introduce Helena to come up here and tell us what questions, if any, came in openly? Yes. I will start with leaving the word to Karl Norén at Danske Bank, you are online, and you are welcome to mute and ask the first questions. Do we have Karl with us? Oh, there seems to be a problem for Karl. I think now I can speak. Yes. Okay. Okay. it seems. Oh, good. Great. Thank you. My first question is relating to the access to the hospitals. Obviously, you could install more than anticipated in the first quarter, and you still have a quite solid order book, to say the least. I wonder how the installation environment is developing now and in the upcoming quarters, just to get a sense of how the two earlier deployments in the U.S. will impact the upcoming sales figures. We have said that was a free kind of planned installs, but it's very difficult to say how this works in different countries. Even inside the United States. Southern U.S., some states have very poor vaccination rates, while in other states, the vaccination rates are very high. It's very local. We see Denmark. Denmark is releasing all restrictions on COVID very soon, next week, I think, while Australia is locking down completely. It's very different in different countries. It's difficult to say. We don't see any major impact different from what we're seeing today. Okay. Thank you. Another question, I think one of your competitors was quite positive in their quarterly results some weeks ago on the number of potential upcoming deals that looked quite strong, and they saw several replacement and upgrade opportunities from these large legacy PACS providers in the U.S. Can you comment on anything on how your pipeline is looking, and are you still convinced that you should be able to grow your market share in the U.S. with around 2.5% points per annum? We don't give that number. We think there's a good position for us to continue to grow. We have some very unique strengths, not the least in that we can handle all images in one system, which is very appreciated by the large institutions. We look forward to the future with a good faith in that we will continue to perform. Okay. Just the last question on the Business Innovation side, could you please tell us a bit more regarding the commercialization of the implant movement analysis, how that is progressing, and how large you estimate the market to be, and are there any plans to separate this area out of Business Innovation anytime soon? Right now we're doing a lot of clinical trials, and it's kind of a test phase. This product, the technology was from the beginning developed at the Karolinska Institute of Stockholm. Then we took over the commercial part of it. There's a huge interest, and there might be a very large impact from it. Right now we're clinical phase and studies, and it looks very promising, but there are many go long, and it's a slow market, but it's also a slow market in, but it's a slow market out as well. It looks good, but it mainly is a very early phase of that development. Okay, thank you. That was all of my questions. Thank you, Karl. We move over to questions from the audience online. I will start with some questions from Kristofer Liljeberg, analyst at Carnegie. The first one is, would it be possible to quantify how much early deliveries contribute to the sales? Yes, we can do that. It's SEK 34 million. Okay. The next question is, when you say strong Q1 will not affect full year, does it mean margin will be closer to 15% for full year or will cost continue remain below normal? As I said in the presentation, costs will remain below normal, but if we will go down all the way to 15%, we simply do not know. We have also to invest in the growth. We have to get new people, and new people, when they're new on board and need training, they are not very productive from a bottom-line standpoint. Yes, we will continue to grow. Our target is above 15%. Will we get down to 15% during the full year? We will see, but I don't think so for this year. The next question is approximately how large part of sales comes from enterprise imaging contracts? Is that new contracts or? All of the sales comes from contracts. As we presented the recurring revenue, a part of that is old service subscriptions. A part of that is actually new subscriptions, but they are quite few, and the remaining 43% is more or less new contracts. We have another question from another participant online. What is the outlook and strategy for Sectra Imaging IT Solutions for Southeast Asia, China, and other emerging markets? Good questions. We have done quite a lot of analysis in these markets. We are growing into Korea, with digital pathology. It's an area with very high penetration of local actors in radiology, but pathology was an opening for us, and that's very good because we can get a bridgehead with pathology, and then we can follow up with radiology and other functionality. We have not done anything in China. We are a little concerned about the IP situation, and the general business situation in China. We are investigating and looking into other markets as well. In Korea, we're already going on, and we're looking to others. Okay. That's all the questions I have online, but before I leave, I will ask you, Karl, if you have any further questions? Yes, I can take one more if I may. It will be around Secure Communications, Torbjörn, and if you could speak a little bit more about the critical infrastructure side and how that side is progressing. It's progressing slow. The need is not changed. We lose almost no business. The speed of the sales are slow. One of the reasons, of course, COVID. A lot of these companies have shut down completely. They do not take visits, they don't want to talk to anyone during the pandemic. It has slowed it down even further. It's still a huge need. It's still going forward, but not at the speed we would have wished for. Okay. Would you expect it to come out stronger after the pandemic? It has to be solved. These situations have to be solved. Society's very vulnerable to cyber attacks, and every time something really ugly happens somewhere in the world, we see an increased interest. The pipeline on the East Coast of the U.S., the natural gas pipeline, was something that really woke people up because it threatened the energy consumption for half of the U.S. There's other such incidents that come up. The need is there. It is perhaps even bigger than before, but it's a very, very slow market. I see. Thank you. Thank you. Kristofer Liljeberg has clarified his question regarding the part of sales from enterprise imaging. What he means is enterprise deals versus traditional PACS -only deals. Okay, that I understand. The enterprise part is increasing. It's very different in different countries. The general market size of old radiology legacy PACS systems is decreasing, and the enterprise is increasing. How much exactly it is difficult to say, but we think it would be more or less all of it long term because hospitals do not want so many different IT systems. Okay, thank you. No further questions. All right. Thank you very much. Again, we encourage you to come with feedback on this. We apologize for the little interruption there based on that we lost the Teams connection for a while, and hope to see you again, both at the AGM, if you come there or listen to that, but then in December. Thank you very much and goodbye from us.