Thank you very much, welcome to Vitrolife Interim Report, January to March 2021. As mentioned today, it is the 22nd of April. The speakers of today will be Mikael Engblom, the CFO of Vitrolife, and myself, Thomas Axelsson, that is the CEO of Vitrolife. Please change page to number two, and let's get into the presentation. What Mikael and I would like to go through today is, first, I would like to go through the global recovery within the IVF market, and that could be expressed easily as a summary of Q1, that our sales was SEK 379 million, and that is a growth of 14%. If we're looking local currency, the sales increased by 20%. After that, when I've gone through the sales for the regions and also for the divisions, Mikael will go into the key financials. I can just mention one thing, and that is that the EBITDA was SEK 163 million, and that was a margin of 43%. Let's go into the situation in different markets and on page three. As you can see, the growth in local currencies was 20%, and that is organic growth, non-acquisition. If we are starting from the right side and look on the region, Japan Pacific, it was an extremely good quarter. It was a growth of 42%. That sales is coming from a good situation in Japan and also in Australia for the Time-lapse equipment. There has also been a good pick-up on our introduced, for a year ago, our media in Japan. Overall, as mentioned, a 42% growth in the region is something that we are quite satisfied with. When we are then going into the region Asia, then it is a little bit more different to compare to last year because it was in the region of Asia, and especially in China, where the COVID at first was impacting Vitrolife. The growth for the region in this quarter compared to last year is 50%. The total sales was SEK 85 million. I would like to mention that when looking into this region, China, and China is our biggest market, and it was also in China where we could see the first decline last year, that China is back to more or less 100% of pre-COVID procedures. The last weekend, it was the CSRM, which is the Chinese Society of Reproductive Medicine. Discussions at that meeting and their view was that the Chinese market is back to 100%, and that's going to be the situation most likely for the next coming quarters. There is not any large pent-up demand in the China region. There are still a challenge for the IVF tourists, and we still see consequences of the COVID in Thailand. We see those consequences in India. The last information, and also that was impacting Q1, is that the number of cycles being done in, for instance, India is maybe two-thirds of a normal year. It has been a great development of both Time-lapse and media within the region, and then especially in China. As mentioned also at the last presentation, that was Q4 last year, that we see that our media is well accepted and we are taking market shares in that region. Going into the other segment or actually region, which is the EMEA region. There, the growth was 6%. It is a mixed picture within the EMEA region. It is more or less back to normal situation in, for instance, the Nordic countries. We see the same in the DACH region. It is a mixed picture between those territories that has some private and also public clinics, where the private clinics are performing more than what they did in 2019 or even in 2020. The publics are still behind. The territories or regions and clinics that are depending upon IVF tourists are also within this region behind normal numbers, and that is for Spain and Turkey, and especially for Middle East. Overall, good growth within the region, 6%, and the growth will coming from Time-lapse and disposable devices as well as media. The last region for today to go through is the Americas. There we see a growth of 7%. Every region did grow organically and in local currency this quarter. We believe, and we do see with our contacts with the U.S. clinics, that they have a higher demand than normal. There is some pent-up demand, but it's also a situation where they see growth currently that is not due to the pent-up demand. One of the explanations that we have got is that the remote work has helped the clinics to get new business. It's easier for them to communicate and get in contact and do the consultation, and also start the treatment. Americas, as I mentioned, there is good growth in the U.S., while there is still a situation with challenges in South America. Okay. If we go to page number four, I will go through a little bit more about the current situation about COVID and see how that is impacting and how it could impact Vitrolife in the next coming quarters. As I said, we believe that globally, if we are considering all the IVF cycles being done, it is an over-performance, let's say that, to normal situation in some territories, like in the U.S., and there are some territories that are still behind. Overall, in total, we believe that the market is almost back to normal in cycle numbers. We see that the uncertainty for the clinics to plan for the cycles, and especially for those that are traveling into their clinics, is still a challenge. Before all of the markets have opened up, we will see some challenges for those markets, and that is especially the IVF tourist markets. Talking about the pent-up demand, yes, there can be a pent-up demand, and we probably will see that for the market I mentioned that currently has some problems, which is Thailand, Turkey, Spain, for instance, and also for the Middle East. What we see also within our production is that there can be a situation where some suppliers will have a problem in supplying us with the products that we need for the production. It is not yet the reality. I would like to take the opportunity to inform you that it could be a risk for the next coming quarters regarding the supply of products. The reason for that challenge is that the pharma companies that are involved, or medic companies that are involved in vaccine production, the demand from them has, of course, increased, and there is a priority from the suppliers to supply those companies first. Just once again, it is not the reality, but I would like to mention the risk. During the last couple of quarters, we've seen an increased profitability, and we also see that due to the COVID, we have changed some working processes, and that's one of the reasons for our very good profitability. When the business is coming back to this normal situation with ability for us to travel, we expect, of course, that the expenses will increase because we are a little bit behind in meeting customers. We are a little bit behind in some product development where we will need to do clinical trials. The consequence of this situation is that we most likely will come into a situation where some processes will be more cost-effective, for instance, through virtual meeting with customers. If we are leaving that situation and go into page number five and are looking into divisions, we start with our largest division, which is the Consumables. That is media, disposable devices, the sales there was 193 million SEK. Between the different product lines, it is a good mix and an even growth. A situation that the Consumables are growing with 15% shows that the market are back where we have a good market share. Technologies, which is more or less only Time-lapse. We see a good growth there with 36%, the sales was SEK 136 million. The growth there is a combination of that some clinics was holding their orders, now when they see that the market is coming back, they are willing to invest in hardware. Another situation is that we are launching, and we have launched in April, our software that is supporting the Time-lapse called iDAScore, which is then making the usage of Time-lapse and how to use morphology as a selection tool a lot easier. We can see that the introduction of that has increased the trend and also motivated some customers to go into the use of Time-lapse. Genomics, it is declined with minus 7%, that is, as we said before, due to that we have lost customer and that was done at the end of Q1 last year. That's why we are still seeing that decline. The sales there in our smallest division was SEK 27 million. We are then going into more about the key financials, I would like to hand over to Mikael in page number six. Thank you. Looking into the gross margin, it was 65% in the first quarter, compared to 62% in the first quarter last year. The reason for the improvement is the high sales that brings economies of scale. We have also seen a positive development in the product mix as more sales are done for media and time-lapse in relation to genomics. We have also reduced our scrapping costs. We took some scrapping costs in the first quarter last year that impacted the margin negatively. Looking at the EBITDA margin, it was 43% compared to 35% last year. Besides the improved gross margin that I just mentioned, we have lower operating expenses in relation to sales, so about 28% compared to 33% last year. That's primarily related to marketing and sales. What Thomas mentioned, we are seeing less cost of traveling, exhibitions, marketing activities, and also reduced cost for staff. All in all, that brings the increase from last year to this year. Looking at the net debt, we have net debt in relation to EBITDA of -2.2. We had a strong cash flow during the first quarter of SEK 129 million, adding to the money in the bank. At the end of the first quarter, we have SEK 1,118 million in the bank and no financial loans. As before, our ambition is to use this money for value-adding acquisitions. Please change to number seven for long-term outlook. We continue to see the long-term market growth of 5%-10% in monetary terms. As before, we expect that to be driven by the growing middle class and the trend of parents to wait longer with having children, including the increased social acceptance of IVF. When it comes to Vitrolife's ambitions, we are targeting sales expansion and broadening the product offering, and that will be done both through organic development and sales expansion as well as through acquisitions. With that, operator, we are ready to take questions. Thank you. Dear participants, if you wish to ask a question, please press star and one on your telephone keypad. The first question comes from line of Ulrik Trattner. Please ask your question. Great. Thank you very much, and good morning, Thomas and Mikael. If we could just start off with the development in North America because seeing that it's growing 7% organically, and we have talked previously about pent-up demand effects abating, but it seems like they're rather being quite stable. If you can just help deciphering the strong development in quarter in the North American market as well as if you could provide some more granularity on the split between your exposure in North America, between U.S., Canada, as well as to South America, that would be very helpful. That's the first question. Okay. Good morning. Let's look into the Americas. For us, the main business in Americas is U.S. I don't think we have gone out with exactly how the split is, the main business for us is in U.S. The pent-up demand there is what we believe, we see the numbers in North America. It is difficult to do an exact estimate. If I would say like this, that we believe that the cycle numbers in Q1 compared to last year in U.S., and this is confirmed from some other places, is 10%-15%. That's just the guesses. With then the growth that we have in North America, let's say in Americas, we are comparing then the growth for the region, we are in line. I wouldn't say that we are taking any market share in U.S. We're not losing any market share. We are just within the market in U.S. We are not then growing 10%-15% in Americas is due to that there is less sales. They are behind in South America. That's great. Thank you. If you're able to- Yeah, no. That was great. [audio distortion] Yeah. Yeah. Thank you very much, Thomas. If we were to turn on to China, you're talking about media and consumable gaining market share, I would guess it's mainly within media. How much would you call that to be sustainable? Is it due to the fact that your media products are favored, or is it due to the fact that competitors have a hard time supplying the market right now? I don't see that there is any major problem with the supply. There are always small problems with supply from all companies, that is not changing the market shares. If we are looking into the Chinese market, the growth there is coming from all product lines. What I mentioned regarding the growth in media specifically, is that I do feel, I can say that we know that just from the conference this weekend, that customers are very satisfied with our products, that's why we are still gaining small market share, even if we are the biggest supplier in that field. If I would go do a long-term perspective, we will get more domestic competition, I don't see that around the corner. That is more of a projection within a couple of years on the media side, that is for all product ranges. The growth also in China is coming from the Time-lapse situation where the investment and what we have done in Time-lapse and working together with key opinion leaders has, right now, shown that will probably pay off. Great. If we were to stay on the topic of Time-lapse and technology development, because obviously it was really strong this quarter, at least quite a quicker recovery than I anticipated. Just your thoughts on how important it has been that you're now launching the, or finished developing the iDAScore, since it was finalized in April. How much impact has that launch or development had on Time-lapse in the specific quarter of Q1? Q1, looking into the technology business, you mentioned Time-lapse, there is always ups and downs between the quarters. The projections regarding Time-lapse and sales of Time-lapse can go up and down. We had a good quarter Q1. Going into the situation regarding iDAScore, yes, I do think that it has an impact, that customers know that something is coming. They've seen presentations on it, and there's also been clinics that have been involved in our validation and clinical testing, and it is a small market, so some of those clinics, of course, will then directly start to buy some extra. Our projections is that iDAScore will be of a huge help for the growth of Time-lapse overall, and especially in clinics where they will buy Time-lapse due to workflow and maybe not so much due to the selection tool itself. Do you have any targets or projections or ambition in terms of where do you believe Time-lapse will go penetration-wise if we were to look long term? Yeah. We are not changing our ambition and what we believe that Time-lapse slowly will get into and be a standard product. Today, probably around 20% of all the cycles are being done with Time-lapse. The challenge here has been the cost and also the situation regarding the ease and ease of use, and with more software, so it gets easier and with more precision-wise software, and also with larger, let's say, purchase orders and IVF clinics. When IVF clinics are expanding and they go into clinic chain, one of the reasons for doing it is to standardize the business. The growth are coming from those clinic chains and those that are interested in doing standardized professional IVF laboratories. I definitely believe that it is going to continue to grow. The question is how quick, and then what's going to happen with the smaller clinics? There is a difficulty to sell hardware as well as software to clinics that is performing, let's say, less than 250 cycles. Great. Thank you. I have two more questions, if I may, this might be directed to Mikael. Margins are very high in the quarter and have been so over the last few quarters. Just looking specifically to, SG&A being 30% of sales, might not be sustainable long term. However, with current traveling restrictions, are we to expect any near-term changes? Are there any trade shows that will take place in person for 2021, for example, when are you to expected to filling up vacancies from last year? Yeah. We have initiated a number of recruitments in the company. We're looking to fill up vacancies and strengthen the organization in the selected areas as well. We are expecting personnel costs to gradually increase over the year. When it comes to the kind of external activities such as exhibitions and customer events and traveling, we are still in a situation with travel restrictions like everyone knows. That is limited. Of course, we can only guess when those activities can become physical again. Most likely in the second quarter, we will have relatively few physical customer events, which should impact the cost in a positive way. Then during the second half of the year, we could probably expect more of physical meetings to occur. That's still depending on what happens with the COVID situation, of course. Great. Thank you very much, Mikael. Last question. You highlighted a potential problem in the supply chain. Is there any specific products that would be affected more than others, and is it the same for the entire industry or more related to Vitrolife? As well as when would you really know if these effects will come into play? It will impact the industry. It is not only Vitrolife, because more or less all of us is having supply from the companies that are also supplying to the pharma industry. That is an overall concern. We don't know if it is going to be a problem. We are having contacts and we are working with those suppliers, and they are doing their best. We don't know if it's going to happen. If it's going to happen, the main area in that case would be the media, because that's closest to the biotech industry. Do you know when you will get a more clear picture on the supply chain? We are working on it. We don't see any immediate risk. It is a concern. That would probably then be if nothing is not going to change within the next coming two quarters, something like that. They are also increasing their production and the supply. There's always a risk in times like this. Great. Well, thank you very much, both Thomas and Mikael, and congratulations on a stellar report. Thank you. Thank you very much. Thank you. Thank you. The next question comes from line of Patrik Ling. Please ask your question. Thank you. Yes, I have a few additional questions. First of all, just one more question on the AI systems for Time-lapse. If you could elaborate a little bit on pricing per system, if it's one software license per machine, and can all already installed systems be upgraded without any hardware reconfigurations? Okay. I can start first. Every machine that are working what we are calling the Plus system, EmbryoScope+, they can use the iDAScore. The old EmbryoScope can't use the new software. The business model is that the ones that are buying new equipment is having a special offer on the software the first year. Our business model is that we are having a subscription on the software, and it's going to be annual based. Of course, it's always also a discussion depending upon number of products that they're buying, new EmbryoScopes. The idea is to have hardware sales and combine that with, of course, then the consumable products that are the dishes and then the software. Can you say anything about what you would expect a normal user to pay annually for those type of software licenses? Currently, the initial price will be if they are only buying the software around $10,000 a year. Okay. A client that already has an EmbryoScope+ system without the iDAScore, they can just pay $10,000 per year to get the license to use that. Depending upon the number of EmbryoScopes that they have, because it's also a situation about that we want customers to have the system so they can get used to it, and they can see the advantages of changing the clinic to only a Time-lapse clinic. Okay, great. I had a follow-up question on the sales and marketing expenses. Going back and looking at your history, you've been on a quarterly basis, a little bit north of SEK 60 million per quarter. Given what you said about also trying to retain some of the savings from the change in working practice that we've seen across basically all industries, would you say it's fair that it will still take quite a long time before you reach historical peaks on sales and marketing? Even if you change your working practices to some extent, such a large pent-up demand that we will actually rather quickly see costs coming up to old highs, despite having an underlying change in the way you operate? Yeah. We expect costs to increase in the sales and marketing, both through personnel costs as well as the external activities. At the moment, there is a pent-up demand to organize customer meetings and exhibitions and to get in contact with customers. We can expect costs to increase in those areas when we are able to travel again. The long-term effects of savings of conducting some meetings through digital channels instead of physically, something we will have to evaluate over time. The exact effect of that, I think it is difficult to assess that today. Okay. Could I also ask about administrative costs this quarter, which jumped up a little bit more than what I had expected. Are there any particular items in that? I saw in the report that you mentioned that you had some legal processes going on and that you were taking the legal costs directly. Is that something that impacts administration? Yes, that's correct. We have the patent litigation ongoing, and we have charged legal costs for the support of that process against the administration. That's correct. Approximately how much was it in this quarter? It was a little bit less than SEK 2 million. Okay. It's not the majority of the uptick that we saw from Q4 then. Going forward, is SEK 2 million per quarter, is that a reasonable assumption for the legal costs? I think it's difficult to assess that. Depends on how the process will develop. Okay. Last question. Genomics, what can you say there, regarding that operation, which was weaker than what I had hoped for the quarter? What's your outlook and take on when Genomics will start to come back? Is that second half of this year then, or is it even longer term? It will come back with, as I believe, two things. One is what we are trying to do is always to convert customers to the Illumina equipment if they have gone to another platform. Another situation is our development that we will launch this year. We are calling it EmbryoMap. It is our own then product. I do hope that those two things will benefit the genomic business. Okay. When during this year will you launch EmbryoMap? It will depend upon one of the things that you have had a question about, how can we go out and do all the kind of validation and clinical studies. Some of the things is tricky to do when you are restricted to travel. The situation is that we are doing the development, this team, this situation, mainly with the team in U.K. The situation right now for those to travel to U.S. or to travel to other places has been tricky. Hopefully, it's going to open up quite soon. Okay, great. Thank you very much, guys. Thank you. Thank you. Thank you. The next question comes from line of Björn Olander. Please ask your question. Yes, thank you, great presentation as always, and many questions. I have some follow-up, and starting with the last one actually, with genomics. We have seen declining sales for some six quarters in that area right now. I suppose it's primarily U.S. Could you shed some more details on what has happened except for the pandemic, of course? Is it sort of a saturated market or are we losing market share or pricing? Anything that would shed some light on that dynamic would be helpful. It's mainly two things, that U.S. are currently the biggest market for us. We don't have the Asian market. In U.S. there has been a centralization within the laboratories. That will mean that they're using other solutions. Another thing is that since we are distributing the products, we are working with our own kits, is that it has been a price erosion out on the market. Okay. Is this sort of in line with your expectation when you entered into the agreement with Illumina, or is it a disappointment? No, I wouldn't say a disappointment. What I am disappointed about is the time to get the new product out to the market. We have had a development team, and we have been more or less standing ready for a long, long time to do the final things. We want to have a very good validated product, and it's been very tricky the last year to continue with all those processes. It is just a delay within our ability to do our own launch. That's my biggest disappointment. Yeah. Could you mention some more about what that kit is going to add to the current offering in your current markets? It's going to open up for the customers to increase their production. It's also going to have improved software. It's two things. It is the capacity and also user-friendliness. Okay. The other thing that product will enable is the launch in Asia excluding China, right? Correct. Do you have any expectations from that? Is it going to be 50/50 between Asia and North America? Any indication? No, we can look on the global market, on the Genomics overall, and it is the U.S. that is the biggest market, for sure. Yeah. The market is growing in other regions. It's a very good market in Spain, for instance. There's good market in U.K., in some Middle East. Overall, if we are comparing different markets, there are very few cycles being done with genomics in some markets. There is a growth potential for sure, in Asia, but they're coming from a lower level. Yeah. Okay. You don't know when you will launch that? No. When doing that? Our aim is to do it this year. Yeah. Okay. Finally, a bit more about the supply and logistics. You mentioned the more of a pharma type of supply could be at risk, which is media then. Are there any risks for the others? There have been a lot of talk about semiconductors and so on, and you have more technology-oriented products as well. Do you see any constraints? I would guide you wrong if I said that there is not any risk in any other products, but they are not yet seen. I can just mention a thing that what we have done is that we have taken scrap due to that we have media on cold chain. Currently, since so much vaccine is being distributed, the cold chain on the global market are under a lot of, let's say, challenges. That's just an example where there can be on different level. It can be on the supply and raw material. It can be on electronic components. That's very little for us because we have a huge inventory on it, because we have been taking action on it. Also a situation that if a vaccine shipment will be done from U.S., our shipment can be stopped for a day or two. If that is stopped for a day or two, the cold chain is under a lot of stress. It could be in different areas that you could never imagine. Yeah. It's a challenging environment, of course. I've heard some companies talking about much higher transportation costs and so on. I suppose that could potentially affect your gross margin. You have high gross margin. I guess the impact will be quite low. Any views on that? You are correct. The cost for price has for sure gone up, and especially on the cold chain. The cost on other products are increasing. As you say, our gross margin is quite good, it's not really going to impact the margin so much. At the end, we will need to put it on to the consumer. Exactly. Just one final observation in terms of the inventory. You have lower inventory now than before the COVID crisis. It seems like the market is recovering quite fast now, and we have these challenges with the supply chains and so on. How confident are you that your situation will not be a problem from that point? Or are you increasing your inventory as we speak? If we see a risk, of course, we are increasing the inventory. What you are seeing with the decreased inventory is that we have been selling quite good. The biggest challenge for us on inventory is finished good on the hardware products. If it's going to be a delay with a quarter or two for a customer. Part of it is that we have a good safe situation, of course, and the disposable devices is something that is also growing. It's the biggest items on the warehousing side are finished goods and also some of the disposable devices and finished good for hardware. Okay. Thank you. That's all from me and congratulations to another great report. Thank you. Thank you. Thank you. The next question comes through line of Daniel Albin. Please ask your question. Hi, Thomas Axelsson, and hi, Mikael. I've two questions, and maybe we can take them one by one. The first question being, if you could maybe give us some color regarding the lawsuit taking place in Germany. When is it expected to be settled and have there been any arguments that have been processed there in Q1? If you could just update me on that one, please. Yes, I can give a short update. We did receive that lawsuit in the beginning of the quarter, and according to the time plan stipulated in Germany, we were supposed to do our defense filing by the beginning of April and that was done. During this quarter, we have gathered some evidence and documentation that we believe supports our view on the situation and as noted, we haven't included any provisions for the lawsuit in the accounts except for the running cost of the legal advisors. When it comes to the next steps, there will be some exchanges of information further. Based on our knowledge, there will be an oral hearing happening thereafter, most likely next year. That's based on how we understand the situation. Thank you. My second question is on the Technologies Time-lapse sales and especially APAC. I wonder since acquiring FertiliTech back in 2014 that you have sold quite some EmbryoScope. Is it possible to sort of break down if new sales are coming from new IVF labs or you're sort of replacing earlier ones? If you talk about APAC, that's mainly new products. Okay. Okay. Thank you. That was all for me. Thank you. Thank you. Thank you. Dear participants, if you wish to ask a question, please press star and one on your telephone keypad. Dear speakers, there are no further questions at this time. Please continue. Okay. If that's the case, thank you very much for listening in to the interim report January, March 2021. Thank you and bye.