Medistim — Call Transcript 2026

A very good morning from sunny Oslo, and welcome to Medistim's presentation of our first quarter 2026 financial results. My name is Kari Krogstad, and together with CFO Thomas Jakobsen, we will together take you through the results. Before getting into the highlights, we like to start these presentations just reminding ourselves on Medistim's track record and also just highlighting that our growth over the past 10 years in sales has been close to 11%, and on our EBIT, we have been growing close to 15% over the past 10 years in a CAGR way. That's a reminder of our promise to continue to deliver profitable growth. Let's now dive into the first quarter. I'm very happy to being able to present another record sales quarter from Medistim. For the first time, we are exceeding NOK 200 million in revenues. That means 11.1% growth in NOK. We can see that we have some negative currency effects here. If we adjust for this, we will see that the currency neutral sales development is actually up at 18.5%. Further, looking at sales of our own products, which is of course the strategic product portfolio and the most important part of our business, we see that this is up a solid 28.8%. All regions are contributing to this result. Americas is up 30.9% currency neutral this quarter. EMEA up 11.5%, and Asia Pacific have a tremendous 57.5% growth. We're also noting that our third-party products is down by 30.2%. We will remember that the beginning of last year was very, very strong due to sales to new hospitals in Norway. We couldn't expect that to be repeated in this quarter. When we look at the EBIT at NOK 57.1 million, that is also a very, very strong operating result. It's actually the second-best operating result ever, just beaten by the same quarter last year. If we are adjusting for currency effects here, we would actually see a close to 4% improvement in the EBIT for this quarter. We know that the U.S. tariffs is making an impact this quarter, so impacting our gross margin and that's also the EBIT margin. The margin remains strong at 28.3%. Little bit lower than the same quarter last year, but still at the high level that we would like to see. Of course, very much driven by the strong sales of our own products. We will note, and have some explanation to some higher operating expenses this quarter. Of course, some of that is connected to the establishment of the direct operation in Japan. We are also seeing increasing higher activity levels throughout our sales organization, which is a very deliberate effect that we want to see. We're also taking some expenses on an IT infrastructure upgrade. The General Assembly yesterday decided that we will pay out a dividend of NOK 8 per share, so that will be a total of NOK 146.2 million. With that, introduction, I will leave the word to Thomas. Thank you very much, Kari. Good morning, everyone. I will take us through the first quarter profit and loss balance sheet and cash flow. Going directly to the profit and loss, Kari will take us through total revenue, splits per region and per product. I will not go into that detail. However, we do have a weaker gross margin in percent this quarter, and this is explained by our sales channels. We have communicated before that, you know, our margin is very much dependent upon the sales channel we are selling through, either through distributor network or if we are direct in a market, and there's also variances between different regions. For this first quarter, relatively speaking, we have strong sales to our distributor network, but we also have very strong sales to our APAC region, which affects gross margin and gives us a little bit weaker gross margin as such. Not much, but it is a little bit lower than our margins in the U.S. market. Also what Kari mentioned is the tariff. The U.S. tariff was not implemented in the first quarter 2025. We have full effect of that in 2026, and it amounts to NOK 5.1 million. That was an expense obviously we did not have last year. Salary and social expenses are at the same level, more or less, as last year, but we do have additional operating expenses this quarter, and that's related to a lot of activities which Kari has touched upon. We do have this IT infrastructure project, which we also spoke about in the fourth quarter. In this quarter, we've expensed NOK 1.5 million related to that project. We also have the establishment of our direct operation in Japan, and that has added another NOK 1.5 million expenses to our P&L. We also had recruitment expenses. We recruit and grow the business continually, and the recruitment expenses for this quarter was NOK 1 million higher compared to last year. Last but not least, we do have a high level of commercial activities, which was NOK 3 million higher this quarter compared to last year, and it's very much travel and face time with customers we're then talking about. Last but not least, we also have an agent commission for this quarter. This is not very normal in Medistim because we either sell through distributor or our direct sales network. Some hospitals require that they have a contract directly with Medistim, and that's happened this quarter. These contracts are then controlled through letters of credit, which controls the cash flow from the hospital to the manufacturer and also controls that the hospital are actually getting the delivery and secure the delivery that they're being promised. This happened in the first quarter, we have an agent commission then of NOK 2.1 million, which are then the return commission to our distributor for the services that they provide. Given all this, our EBITDA ends at NOK 63.3 million, a little bit weaker than 1st quarter last year that ended at NOK 64.7 million. Depreciation increases. We do have additional lease obligations, which is the reason for the increased depreciation. Our operating profit ends at NOK 57.1 million and an EBIT margin of 28.3%. That's weaker than the 1st quarter last year, I think, you know, look at the big picture, the fiscal year 2025, our EBIT margin was 28%. We are well in line with what we communicated earlier that our EBIT margin should be in the high 20 area. Net finance is negative. We have experienced strengthening of the Norwegian krone, especially towards U.S. dollars, but also towards Euro. The net effect of finance is negative by NOK 5.5 million. Profit before tax ends at NOK 51.5 million, and profit after tax ends at NOK 40.3 million. Looking at our balance sheet, our intangible assets increases. We have 2 major development projects ongoing, which are recognized as an asset in our balance sheet. We also have this IT infrastructure project, which I mentioned in the P&L. Basically, what we're doing with the IT infrastructure project is that mainstream code and setup are expensed and Medistim unique code and setup is recognized as asset. It's a combination of those two. Inventory level, same level as the end of the year. The increase in our working capital is related to accounts receivables. That increases from NOK 86 million to NOK 104 million. Cash position is solid, ends at just under NOK 210 million, a little bit below the cash position by the end of the year. I will comment that a little bit further later on in the cash flow statement. Equity is strong, ends at over 74%. We have no interest-bearing bank debt. Haven't had that for many years. Our long-term liabilities are related to two things. We have lease obligations of a total of NOK 46.2 million, where NOK 11.6 million is short-term. The deferred revenue is extended warranty contracts, two to three year contracts, which then revenue are then recognized over that time period. All in all, we do have now decided that we are going to pay out a dividend, and that will be paid, I think, estimated 18th of May. That will obviously affect our equity, when we are then closing the second quarter, NOK 146 million. We'll then reduce our total equity and equity percent, but it's still a solid equity as such. Earnings per share, still solid, more than NOK 2 per share this quarter. We do have also a strong equity position, as you can see, 70.9% by the end of the year, increased now to 74.3%. Cash flow, we do experience that our cash flow from operation is relatively weak this quarter, and there are reasons for that. First of all, we have prepayments of income tax of NOK 14.1 million. We do have the increase in working capital related to increase in our accounts receivables. We also have what is called here other, which are accrued expenses in 2025 that we now have paid out in the first quarter. A lot of this is related to commissions and also yearly bonuses that has been achieved based upon the results that Medistim delivered in 2025. Net cash from operation is NOK 7.2 million. In addition to that, we have investments related to our development project and the IT infrastructure project. We have paid lease obligations of NOK 2.9 million. Net negative cash flow is then NOK 2.3 million, which then leaves us with a cash position pretty much the same as we enter the year into with, NOK 210 million. I leave the word to Kari. Thank you. Yes. Let's then dive into our business segments update, starting with the flow and imaging systems sold in units. This is obviously our most important part of the product portfolio since it's our absolute unique product offering. We are the only company out there providing combined flow measurements and high-frequency ultrasound technology in the same system, which is providing really high value both to cardiac surgeons and to vascular surgeons. As you know, we are selling this product as about double the price of a flow-only system. This is very important for us to see a continued uptake and adoption of this technology. For the quarter, we see it's a good quarter for us. We sold 28 systems this quarter. EMEA and Asia Pacific sold more than the same quarter last year. Americas is down by four units this quarter. These typically vary from quarter to quarter. All in all, a strong quarter for flow and imaging unit sales. When we are selling these systems, the imaging probe sales tend to follow, and we're also seeing therefore strong imaging probe unit sales this quarter. Here Americas is up by two units, EMEA up by seven, and Asia Pacific down by 1 unit. When we look at the flow-only systems, it's also very reassuring to see that this is also growing. Strong flow system unit sales this quarter up eight units quarter-over-quarter. Americas is up. EMEA is a bit down here. We recognize that they had the higher flow in imaging sales, so this tend to sort of level out a little bit. We're seeing that Asia Pacific grows by 10 units this quarter, and this is very much driven by growth in our sales to China. When it comes to flow probes in units, we see that it's a very strong continuation of growth here, so up 27% this quarter. A really strong contribution from all the territories. As we know that the strong capital system sales are driving the probe sales across all of these regions. Looking a little bit more into the regions, starting with Americas. Americas this quarter delivered sales revenues of NOK 84.8 million. If we adjust to the same currency as we had last year, we look at an underlying growth of 30.9 for the quarter. As we know, the U.S. is the majority of Americas, and looking at U.S. in isolation, the currency neutral growth was 33%. We have increased our prices significantly in the U.S. and the growth this quarter, we see that about 50% of the 33% is coming from price increases. It's then very reassuring to see that we have good system volume sales as capital, although not as high as the same record quarter last year, and also very strong flow probe volume growth at 46%. Canada has a little bit weaker quarter in the beginning of this year, while the Latin American distributors delivered a strong quarter but, of course, from a much lower base. Diving a little bit further into the U.S. We can see here in the table the system sales and also the outplacements on PPP or lease contracts. The total number of units that we have then sold or outplaced this quarters is 14 versus 18 last quarter last year. We're seeing this fewer number of systems sold, but we also see strong sales of consumables to the capital customers. If we look in the second table, the number of procedures from flow probes to capital customers, we see that that is growing by the high 35%. We're also seeing very high growth of imaging probes to capital customers of 15%. New customers are increasingly coming in as capital accounts, and we also see that some of the current PPP or lease customers tend to convert to capital. This is a trend that is continuing. To the right in this slide, we have split out the flow procedures, splitting out the cardiac part of these procedures and the vascular part. Now we can follow the development of flow procedures to cardiac, here highlighted in orange, either by year or by quarter. This means that it's very easy to calculate the penetration or the adoption of our technology in the U.S. in CABG. The cardiac number for 2025 is about 80,000 procedures. Considering a market of around 200,000 procedures, that leads us to a share of 40% covered by Medistim in the U.S. CABG market. Hopefully this would be useful to follow going forward. Moving on to Asia Pacific. Here we delivering NOK 42.7 million in sales. Making this currency neutral, the increase is actually 57.5%. We see that the sales to China is making up the majority of this and growing as high as 74.6% for the quarter. We have continued to explain that we have to expect quarterly variations in our sales to China. Because we do have, of course, sales office with our own staff, but we still rely on local distributors and agents, and that will inevitably result in some quarterly variability. Japan, it is a new era for us in Japan, and Q1 was the final quarter where we're selling through a distributor there. It was on the low side at NOK 2.7 million, much lower than the same quarter last year. This also means that there will be no inventory build-up in the distribution channel as we saw in China when we went direct there. We know that when we are starting to sell from the second quarter onwards, that will be through our own team, and there should be no unexpected inventory issues going forward. We also see this quarter quite strong contribution from the other Asia-Pacific distributors, up 105% and contributing then in total with NOK 14.7 million. In Europe and Middle East, the region delivers NOK 52.1 million in sales in the first quarter. Currency neutral, this corresponds to an increase of 11.5%. We note that our direct markets delivered sales in line with the prior year, so no big change there. While the distributor sales is actually providing the growth contribution this quarter going up 26% currency neutral. Just thinking back at the EMEA performance also through 2025, varying quite a lot, direct markets from time to time contributing very strongly and in other quarters a bit weaker. I expect to see a bit variation going forward here as well, but really good news that we in the first quarter are already growing by 11.5% currency neutral. That's very encouraging. The third-party products, as mentioned in the introduction here, the revenue is down 30%. We are reminded that the first quarter last year represented an exceptionally strong comparable because we sold a lot of ophthalmology products to two new hospitals in Norway. We could not plan for or expect to repeat that sales in this quarter. Other than that, we have a highly diversified product portfolio, and it's Mentor and A.M.I., which are the biggest contributors in the whole portfolio. This table is just summarizing the growth in the NOK from the direct markets and also from the distributor parts and regions. I will not go through the details here. Of course, we are following closely the development of the vascular sales since this is the new market that we are establishing a position in. In this specific market, we see that growth is missing in the vascular segment. It's just 1% up from the same quarter last year. We see that the cardiac sales growth was 34.5%, really at the high side and is responsible for being the driver of the total growth this quarter. Vascular sales is accounting for 17% of our own product sales, it's not a bad proportion. It was a little bit higher than when we looked at the 2025 numbers. Here we are just expecting the vascular growth to continue and going forward will be in line with what we've seen in previous years. We also follow the split of flow portfolio versus the imaging product portfolio closely. We can see this quarter that both the flow products and the imaging products are contributing nicely to the total growth, 23% from the flow products and 12.6% from the imaging products. That is a solid performance as well. Closing up here now, taking a look at the recurring versus capital revenues, we can see that this quarter we are seeing 20% growth in our recurring revenues, which is quite in line with also how the capital revenues are growing. The last 12 months takes us to a 70% share of recurring revenues of the total, which is quite in line with the historical levels. A few comments on our strategy. Yeah. Just to go through this really quickly, we have a strong position in the coronary bypass segment, so the cardiac segment. We have some markets with really high market share with our Medistim technology. Japan, China, the Nordic countries, the German-speaking countries, and other European countries as well, with really high share, up to 80%-90% of the procedures covered. Here it is important for us to continue to convert the dominant flow only install base to a flow in imaging install base. This is gradually increasing and ongoing. We are also working to grow our adoption in what we regard as under-penetrated markets, including the U.S. at 40%. Of course, it's growing, but still regarded as under-penetrated in our view. Clinical marketing, the studies that we are doing really critically important in order to get that traction. Flexible pricing and business models are important in some particular areas. We have mentioned India before. There are other areas also where we are finding different business models and ways of making our products available and affordable to the customers. That's a part of our strategy. As I mentioned, building a position in vascular has been a focus for quite some time already, and we are getting traction there. Last but not least, to expand our direct market coverage and getting closer to our customers, that leads us into the change that we announced the 2nd of February this year, that we're opening our direct sales office in Japan. As of 16th of March, we are direct. We have now a very solid team in place. We have 10 employees there and a very experienced leader with background from the vascular area, which is really very important and provides optimism in terms of breaking into a vascular market also in Japan. We know that Japan is the strongest market for us in terms of the market penetration. 90% of the CABG surgery procedures are already supported with our technology. The question is how to continue this growth. By getting closer to the end users, we want to get higher traction of the conversion from flow-only systems to flow with imaging systems. Of course, we get the, let's say, the one-off effect of capturing the distributor margin, that's also important. We will then seek to untap this potential from vascular procedures as well. Last year we had sales through our Japan, Japanese distributor of about NOK 21 million, and that gives some idea about what we could expect for this year, taking into account that the distributor margin would be now going to Medistim. As also mentioned in the previous quarterly presentation, related to the first quarter, I want just to remind that we are now sponsoring a new randomized clinical trial in CABG surgery, the so-called SMARTFLOW trial. Being a large randomized clinical trial comparing the use of flow technology versus no use of flow technology, this could be a breakthrough into providing the evidence to make our technology being eligible for guideline inclusions in the U.S., which is the country where we are lacking that kind of support. The lead investigator of the trial, Professor Mario Gaudino, well-known, really one of the, I would say the stars on the CABG heaven at this time. He was also the first author of the circulation paper that we have been referring to many, many times, which is a absolutely critical consensus paper stating that this group of highly renowned surgeons are saying that TTFM should be used in every CABG case. This paper is also concluding that there is a lack of randomized clinical data, and this is now the project that they want to go through. We know that the first patients have been enrolled in this trial. It is going to be 1,242 patients enrolled, and there will only be Medistim's MiraQ flow measurement system that will be used. That will be mandatory, and then we will of course also encourage the surgeons to use the imaging component while this is not mandatory. It will be a relatively big trial with 20 centers in U.S., Canada, Europe, and Asia, so good coverage there. The goals of the study to begin with is to determine whether TTFM reduces the rate of graft failure. This will be checked within 1-3 months of the surgery, and it's going to be documented by coronary CT angiography. The idea is that this provides a platform to continue the study and evaluate the impact of TTFM on the longer-term clinical outcomes. We're talking about myocardial infarction, repeated revascularization, survival, and quality of life. These are the outcomes that are relevant for guidelines consideration. We really believe and hope that the whole platform study will be prolonged into this long-term clinical outcomes study. Exciting days. Our involvement here, of course, it's a scientifically independent trial, but we are making a limited financial contribution of $500,000, which will be, well, supporting the study over the course of the trial. At the side of course, the main objective, which is to provide this evidence, is also providing us with an opportunity to facilitate upgrade of the imaging at the sites that are currently not imaging users. That's a, let's say, a very interesting business opportunity. We will also encourage and help the centers to get hold of the newest INTUI software. This is also a great opportunity. Yes. I think we can open up for questions. We have some questions today too. Congratulations on surpassing NOK 200 million in first quarter revenue. APAC delivered strong growth in this quarter, accounting for around 24% of sales of own products. What is your ambition for this region, which markets do you see offering the greatest growth potential from today's levels? Yes, absolutely. I think the moves we've made in Asia Pacific, first by establishing our own team in China and going through a little bit of a rough patch in the early days there with some distribution channel issues. We now see that we are really getting a return on that initiative and investment. It was really encouraging us to move forward also with going direct in Japan. Asia Pacific is of course, many other interesting countries and opportunities, and we've highlighted India as one of the next big growth opportunities in the territories. That will also be a region where we will, yeah, be placing, I guess, more resources and give more attention and continue the great collaboration we have with LivaNova in that territory. Yes, Asia Pacific is the runners up for driving growth for Medistim. The Americas and U.S. in particular will continue to be the major and foremost growth driver also in the sort of near term or the next few years. Thank you. On the cost side, other operating expenses increased significantly. Do you view this as one-offs or should we expect higher operating expenses going forward? Answer that, Kari. The cost master. Well, of the increase of just over NOK 10 million, I would say around NOK 5 million are one-off expenses. That is related to the IT infrastructure project. That will be a project that we will finalize during the year. We also have this agent commission, which are unusual, NOK 2.1 million. In addition to that, I would say that the establishing of the Japanese office around NOK 1 million are one-off expenses. Going forward, we will still have that operations ongoing, but this is kind of like a one-off to establish everything. Those are the one-offs. The recruitment, I mean, Medistim is growing, so we will always recruit. That will be ongoing. Could be timing, related to that when the expenses are coming. Our commercial activities are something that we are actually driving to make sure that our sales force are getting out there and make sure that they have the face time with the customers. Around NOK 5 million, I would say, are one-off expenses. Thank you. The next one is on currencies. Currency movements have had a no-noticeable impact on this quarter results. Could you outline your currency strategy and how Medistim manages FX risk? It's actually very simple. We do not speculate in currency. That means that most of our cash coming in in $ and EUR are then converted to NOK as they, as they come into us. However, we do have some hedging contracts that we enter when we do see that the currency is favorable for Medistim. In that sense, we are a little bit speculative, but in general, it's more like a spot conversion to NOK. This has been the case for Medistim in many, many years. We tried to make hedging contracts in order to reduce the risk. We do see that, you know, whether you do that or you enter, or convert on spot currencies, all in all, you will, you know, you could lose or gain regardless. If we do have a secured cash flow for a large project, it makes sense to have a hedging contract because you know then you will have an amount of EUR or U.S. dollars coming in. Our cash flow is not like that. It's more a random cash flow stream that comes into Medistim, and therefore it's a little bit more difficult to plan that in that sense. Thank you. The third-party business show a decline of some 30% compared to 2025. Can you elaborate on the development and the expectation going forward? I can perhaps say something about that. I mean, as we know, we had a tremendous year last year. The first quarter and maybe a bit into second quarter as well, we provided a very strong result and growth for the third party portfolio last year. Going back, yeah, it has been a lot of variation, but I would say maybe the growth rate has been around 5%, so much more moderate. And I think, in sort of a normal circumstance, you know, it's probably around there that expectations should be. Yeah. There's no real changes that we're seeing. I mean, we have a solid portfolio of products. We are managing those, working closely with the suppliers that we are serving. We're also seeking new agencies on a regular basis. You know, I'm very happy with the third party team that we have. They are operating a lean organization, providing good margins on their work. Yeah, I'm expecting that to continue sort of in the more historical levels. The last question is from the public chat. What kind of gross margin level on own products is to be expected going forward? What we've seen throughout the years is that our own products are increasing more than third-party products. As we do that, the gross margins increases in percent and also the EBIT margin. To answer that, I mean, we do have in our reports the split of the segments, sales of our own products and sales of third-party products. Based upon that split, you could see what margins are to be expected from sales of our own product and EBIT margin as well. The thing, though, that could affect it is that, you know, if we continue to grow, and that is expected in our direct markets, these margins will actually continue to grow as well as we shift more business from direct operation compared to distributor operation. Thank you. That was all the questions. Just a sec. Just came in one. Could you give us an update on your factory automation project? Yes. We have mentioned that one of the projects that we're working on has been to redesign our probes and making them possible to automate. That part of the project has come to almost a conclusion, and we are in the phase of sort of looking into various options on how to actually move forward with that automation. I can't give very specific information about that, but this is a very important and critical project for us. We want to make sure that we have really a future-proof production process that not only provides improved cost levels for us, but are securing the high volumes that we will be needing to supply the market with, you know, when we are fulfilling our growth objectives. It's moving forward. We will give more information when it's becoming more concrete. We are through. Thank you. Thank you. Thank you very much, and we look forward to the next encounter. Thank you.

Speaker 1: A very good morning from sunny Oslo, and welcome to Medistim's presentation of our first quarter 2026 financial results. My name is Kari Krogstad, and together with CFO Thomas Jakobsen, we will together take you through the results. Before getting into the highlights, we like to start these presentations just reminding ourselves on Medistim's track record and also just highlighting that our growth over the past 10 years in sales has been close to 11%, and on our EBIT, we have been growing close to 15% over the past 10 years in a CAGR way. That's a reminder of our promise to continue to deliver profitable growth. Let's now dive into the first quarter. I'm very happy to being able to present another record sales quarter from Medistim. A very good morning from sunny Oslo, and welcome to Medistim's presentation of our first quarter 2026 financial results. a very good morning from sunny oslo and welcome to medistim's presentation of our first quarter 2026 financial results My name is Kari Krogstad, and together with CFO Thomas Jakobsen, we will together take you through the results. my name is kari krogstad and together with cfo thomas jakobsen we will together take you through the results Before getting into the highlights, we like to start these presentations just reminding ourselves on Medistim's track record and also just highlighting that our growth over the past 10 years in sales has been close to 11%, and on our EBIT, we have been growing close to 15% over the past 10 years in a CAGR way. before getting into the highlights we like to start these presentations just reminding ourselves on medistim's track record and also just highlighting that our growth over the past 10 years in sales has been close to 11% and on our ebit we have been growing close to 15% over the past 10 years in a cagr way That's a reminder of our promise to continue to deliver profitable growth. that's a reminder of our promise to continue to deliver profitable growth Let's now dive into the first quarter. let's now dive into the first quarter I'm very happy to being able to present another record sales quarter from Medistim. i'm very happy to being able to present another record sales quarter from medistim For the first time, we are exceeding NOK 200 million in revenues. That means 11.1% growth in NOK. We can see that we have some negative currency effects here. If we adjust for this, we will see that the currency neutral sales development is actually up at 18.5%. Further, looking at sales of our own products, which is of course the strategic product portfolio and the most important part of our business, we see that this is up a solid 28.8%. All regions are contributing to this result. Americas is up 30.9% currency neutral this quarter. EMEA up 11.5%, and Asia Pacific have a tremendous 57.5% growth. For the first time, we are exceeding NOK 200 million in revenues. for the first time we are exceeding nok 200 million in revenues That means 11.1% growth in NOK. that means 11.1% growth in nok We can see that we have some negative currency effects here. we can see that we have some negative currency effects here If we adjust for this, we will see that the currency neutral sales development is actually up at 18.5%. if we adjust for this we will see that the currency neutral sales development is actually up at 18.5% Further, looking at sales of our own products, which is of course the strategic product portfolio and the most important part of our business, we see that this is up a solid 28.8%. further looking at sales of our own products which is of course the strategic product portfolio and the most important part of our business we see that this is up a solid 28.8% All regions are contributing to this result. all regions are contributing to this result Americas is up 30.9% currency neutral this quarter. americas is up 30.9% currency neutral this quarter EMEA up 11.5%, and Asia Pacific have a tremendous 57.5% growth. emea up 11.5% and asia pacific have a tremendous 57.5% growth We're also noting that our third-party products is down by 30.2%. We will remember that the beginning of last year was very, very strong due to sales to new hospitals in Norway. We couldn't expect that to be repeated in this quarter. When we look at the EBIT at NOK 57.1 million, that is also a very, very strong operating result. It's actually the second-best operating result ever, just beaten by the same quarter last year. If we are adjusting for currency effects here, we would actually see a close to 4% improvement in the EBIT for this quarter. We know that the U.S. tariffs is making an impact this quarter, so impacting our gross margin and that's also the EBIT margin. The margin remains strong at 28.3%. We're also noting that our third-party products is down by 30.2%. we're also noting that our third-party products is down by 30.2% We will remember that the beginning of last year was very, very strong due to sales to new hospitals in Norway. we will remember that the beginning of last year was very very strong due to sales to new hospitals in norway We couldn't expect that to be repeated in this quarter. we couldn't expect that to be repeated in this quarter When we look at the EBIT at NOK 57.1 million, that is also a very, very strong operating result. when we look at the ebit at nok 57.1 million that is also a very very strong operating result It's actually the second-best operating result ever, just beaten by the same quarter last year. it's actually the second-best operating result ever just beaten by the same quarter last year If we are adjusting for currency effects here, we would actually see a close to 4% improvement in the EBIT for this quarter. if we are adjusting for currency effects here we would actually see a close to 4% improvement in the ebit for this quarter We know that the U.S. tariffs is making an impact this quarter, so impacting our gross margin and that's also the EBIT margin. we know that the u.s tariffs is making an impact this quarter so impacting our gross margin and that's also the ebit margin The margin remains strong at 28.3%. the margin remains strong at 28.3% Little bit lower than the same quarter last year, but still at the high level that we would like to see. Of course, very much driven by the strong sales of our own products. We will note, and have some explanation to some higher operating expenses this quarter. Of course, some of that is connected to the establishment of the direct operation in Japan. We are also seeing increasing higher activity levels throughout our sales organization, which is a very deliberate effect that we want to see. We're also taking some expenses on an IT infrastructure upgrade. The General Assembly yesterday decided that we will pay out a dividend of NOK 8 per share, so that will be a total of NOK 146.2 million. Little bit lower than the same quarter last year, but still at the high level that we would like to see. little bit lower than the same quarter last year but still at the high level that we would like to see Of course, very much driven by the strong sales of our own products. of course very much driven by the strong sales of our own products We will note, and have some explanation to some higher operating expenses this quarter. we will note and have some explanation to some higher operating expenses this quarter Of course, some of that is connected to the establishment of the direct operation in Japan. of course some of that is connected to the establishment of the direct operation in japan We are also seeing increasing higher activity levels throughout our sales organization, which is a very deliberate effect that we want to see. we are also seeing increasing higher activity levels throughout our sales organization which is a very deliberate effect that we want to see We're also taking some expenses on an IT infrastructure upgrade. we're also taking some expenses on an it infrastructure upgrade The General Assembly yesterday decided that we will pay out a dividend of NOK 8 per share, so that will be a total of NOK 146.2 million. the general assembly yesterday decided that we will pay out a dividend of nok 8 per share so that will be a total of nok 146.2 million With that, introduction, I will leave the word to Thomas. With that, introduction, I will leave the word to Thomas. with that introduction i will leave the word to thomas

Speaker 3: Thank you very much, Kari. Good morning, everyone. I will take us through the first quarter profit and loss balance sheet and cash flow. Going directly to the profit and loss, Kari will take us through total revenue, splits per region and per product. I will not go into that detail. However, we do have a weaker gross margin in percent this quarter, and this is explained by our sales channels. We have communicated before that, you know, our margin is very much dependent upon the sales channel we are selling through, either through distributor network or if we are direct in a market, and there's also variances between different regions. Thank you very much, Kari. thank you very much kari Good morning, everyone. good morning everyone I will take us through the first quarter profit and loss balance sheet and cash flow. i will take us through the first quarter profit and loss balance sheet and cash flow Going directly to the profit and loss, Kari will take us through total revenue, splits per region and per product. going directly to the profit and loss kari will take us through total revenue splits per region and per product I will not go into that detail. i will not go into that detail However, we do have a weaker gross margin in percent this quarter, and this is explained by our sales channels. however we do have a weaker gross margin in percent this quarter and this is explained by our sales channels We have communicated before that, you know, our margin is very much dependent upon the sales channel we are selling through, either through distributor network or if we are direct in a market, and there's also variances between different regions. we have communicated before that you know our margin is very much dependent upon the sales channel we are selling through either through distributor network or if we are direct in a market and there's also variances between different regions For this first quarter, relatively speaking, we have strong sales to our distributor network, but we also have very strong sales to our APAC region, which affects gross margin and gives us a little bit weaker gross margin as such. Not much, but it is a little bit lower than our margins in the U.S. market. Also what Kari mentioned is the tariff. The U.S. tariff was not implemented in the first quarter 2025. We have full effect of that in 2026, and it amounts to NOK 5.1 million. That was an expense obviously we did not have last year. Salary and social expenses are at the same level, more or less, as last year, but we do have additional operating expenses this quarter, and that's related to a lot of activities which Kari has touched upon. For this first quarter, relatively speaking, we have strong sales to our distributor network, but we also have very strong sales to our APAC region, which affects gross margin and gives us a little bit weaker gross margin as such. for this first quarter relatively speaking we have strong sales to our distributor network but we also have very strong sales to our apac region which affects gross margin and gives us a little bit weaker gross margin as such Not much, but it is a little bit lower than our margins in the U.S. market. not much but it is a little bit lower than our margins in the u.s market Also what Kari mentioned is the tariff. also what kari mentioned is the tariff The U.S. tariff was not implemented in the first quarter 2025. the u.s tariff was not implemented in the first quarter 2025 We have full effect of that in 2026, and it amounts to NOK 5.1 million. we have full effect of that in 2026 and it amounts to nok 5.1 million That was an expense obviously we did not have last year. that was an expense obviously we did not have last year Salary and social expenses are at the same level, more or less, as last year, but we do have additional operating expenses this quarter, and that's related to a lot of activities which Kari has touched upon. salary and social expenses are at the same level more or less as last year but we do have additional operating expenses this quarter and that's related to a lot of activities which kari has touched upon We do have this IT infrastructure project, which we also spoke about in the fourth quarter. In this quarter, we've expensed NOK 1.5 million related to that project. We also have the establishment of our direct operation in Japan, and that has added another NOK 1.5 million expenses to our P&L. We also had recruitment expenses. We recruit and grow the business continually, and the recruitment expenses for this quarter was NOK 1 million higher compared to last year. Last but not least, we do have a high level of commercial activities, which was NOK 3 million higher this quarter compared to last year, and it's very much travel and face time with customers we're then talking about. Last but not least, we also have an agent commission for this quarter. We do have this IT infrastructure project, which we also spoke about in the fourth quarter. we do have this it infrastructure project which we also spoke about in the fourth quarter In this quarter, we've expensed NOK 1.5 million related to that project. in this quarter we've expensed nok 1.5 million related to that project We also have the establishment of our direct operation in Japan, and that has added another NOK 1.5 million expenses to our P&L. we also have the establishment of our direct operation in japan and that has added another nok 1.5 million expenses to our p&l We also had recruitment expenses. we also had recruitment expenses We recruit and grow the business continually, and the recruitment expenses for this quarter was NOK 1 million higher compared to last year. we recruit and grow the business continually and the recruitment expenses for this quarter was nok 1 million higher compared to last year Last but not least, we do have a high level of commercial activities, which was NOK 3 million higher this quarter compared to last year, and it's very much travel and face time with customers we're then talking about. last but not least we do have a high level of commercial activities which was nok 3 million higher this quarter compared to last year and it's very much travel and face time with customers we're then talking about Last but not least, we also have an agent commission for this quarter. last but not least we also have an agent commission for this quarter This is not very normal in Medistim because we either sell through distributor or our direct sales network. Some hospitals require that they have a contract directly with Medistim, and that's happened this quarter. These contracts are then controlled through letters of credit, which controls the cash flow from the hospital to the manufacturer and also controls that the hospital are actually getting the delivery and secure the delivery that they're being promised. This happened in the first quarter, we have an agent commission then of NOK 2.1 million, which are then the return commission to our distributor for the services that they provide. This is not very normal in Medistim because we either sell through distributor or our direct sales network. this is not very normal in medistim because we either sell through distributor or our direct sales network Some hospitals require that they have a contract directly with Medistim, and that's happened this quarter. some hospitals require that they have a contract directly with medistim and that's happened this quarter These contracts are then controlled through letters of credit, which controls the cash flow from the hospital to the manufacturer and also controls that the hospital are actually getting the delivery and secure the delivery that they're being promised. these contracts are then controlled through letters of credit which controls the cash flow from the hospital to the manufacturer and also controls that the hospital are actually getting the delivery and secure the delivery that they're being promised This happened in the first quarter, we have an agent commission then of NOK 2.1 million, which are then the return commission to our distributor for the services that they provide. this happened in the first quarter we have an agent commission then of nok 2.1 million which are then the return commission to our distributor for the services that they provide Given all this, our EBITDA ends at NOK 63.3 million, a little bit weaker than 1st quarter last year that ended at NOK 64.7 million. Depreciation increases. We do have additional lease obligations, which is the reason for the increased depreciation. Our operating profit ends at NOK 57.1 million and an EBIT margin of 28.3%. That's weaker than the 1st quarter last year, I think, you know, look at the big picture, the fiscal year 2025, our EBIT margin was 28%. We are well in line with what we communicated earlier that our EBIT margin should be in the high 20 area. Net finance is negative. We have experienced strengthening of the Norwegian krone, especially towards U.S. dollars, but also towards Euro. Given all this, our EBITDA ends at NOK 63.3 million, a little bit weaker than 1st quarter last year that ended at NOK 64.7 million. given all this our ebitda ends at nok 63.3 million a little bit weaker than 1st quarter last year that ended at nok 64.7 million Depreciation increases. depreciation increases We do have additional lease obligations, which is the reason for the increased depreciation. we do have additional lease obligations which is the reason for the increased depreciation Our operating profit ends at NOK 57.1 million and an EBIT margin of 28.3%. our operating profit ends at nok 57.1 million and an ebit margin of 28.3% That's weaker than the 1st quarter last year, I think, you know, look at the big picture, the fiscal year 2025, our EBIT margin was 28%. that's weaker than the 1st quarter last year i think you know look at the big picture the fiscal year 2025 our ebit margin was 28% We are well in line with what we communicated earlier that our EBIT margin should be in the high 20 area. we are well in line with what we communicated earlier that our ebit margin should be in the high 20 area Net finance is negative. net finance is negative We have experienced strengthening of the Norwegian krone, especially towards U.S. dollars, but also towards Euro. we have experienced strengthening of the norwegian krone especially towards u.s dollars but also towards euro The net effect of finance is negative by NOK 5.5 million. Profit before tax ends at NOK 51.5 million, and profit after tax ends at NOK 40.3 million. Looking at our balance sheet, our intangible assets increases. We have 2 major development projects ongoing, which are recognized as an asset in our balance sheet. We also have this IT infrastructure project, which I mentioned in the P&L. Basically, what we're doing with the IT infrastructure project is that mainstream code and setup are expensed and Medistim unique code and setup is recognized as asset. It's a combination of those two. Inventory level, same level as the end of the year. The increase in our working capital is related to accounts receivables. The net effect of finance is negative by NOK 5.5 million. the net effect of finance is negative by nok 5.5 million Profit before tax ends at NOK 51.5 million, and profit after tax ends at NOK 40.3 million. profit before tax ends at nok 51.5 million and profit after tax ends at nok 40.3 million Looking at our balance sheet, our intangible assets increases. looking at our balance sheet our intangible assets increases We have 2 major development projects ongoing, which are recognized as an asset in our balance sheet. we have 2 major development projects ongoing which are recognized as an asset in our balance sheet We also have this IT infrastructure project, which I mentioned in the P&L. we also have this it infrastructure project which i mentioned in the p&l Basically, what we're doing with the IT infrastructure project is that mainstream code and setup are expensed and Medistim unique code and setup is recognized as asset. basically what we're doing with the it infrastructure project is that mainstream code and setup are expensed and medistim unique code and setup is recognized as asset It's a combination of those two. it's a combination of those two Inventory level, same level as the end of the year. inventory level same level as the end of the year The increase in our working capital is related to accounts receivables. the increase in our working capital is related to accounts receivables That increases from NOK 86 million to NOK 104 million. Cash position is solid, ends at just under NOK 210 million, a little bit below the cash position by the end of the year. I will comment that a little bit further later on in the cash flow statement. Equity is strong, ends at over 74%. We have no interest-bearing bank debt. Haven't had that for many years. Our long-term liabilities are related to two things. We have lease obligations of a total of NOK 46.2 million, where NOK 11.6 million is short-term. The deferred revenue is extended warranty contracts, two to three year contracts, which then revenue are then recognized over that time period. That increases from NOK 86 million to NOK 104 million. that increases from nok 86 million to nok 104 million Cash position is solid, ends at just under NOK 210 million, a little bit below the cash position by the end of the year. cash position is solid ends at just under nok 210 million a little bit below the cash position by the end of the year I will comment that a little bit further later on in the cash flow statement. i will comment that a little bit further later on in the cash flow statement Equity is strong, ends at over 74%. equity is strong ends at over 74% We have no interest-bearing bank debt. we have no interest-bearing bank debt Haven't had that for many years. haven't had that for many years Our long-term liabilities are related to two things. our long-term liabilities are related to two things We have lease obligations of a total of NOK 46.2 million, where NOK 11.6 million is short-term. we have lease obligations of a total of nok 46.2 million where nok 11.6 million is short-term The deferred revenue is extended warranty contracts, two to three year contracts, which then revenue are then recognized over that time period. the deferred revenue is extended warranty contracts two to three year contracts which then revenue are then recognized over that time period All in all, we do have now decided that we are going to pay out a dividend, and that will be paid, I think, estimated 18th of May. That will obviously affect our equity, when we are then closing the second quarter, NOK 146 million. We'll then reduce our total equity and equity percent, but it's still a solid equity as such. Earnings per share, still solid, more than NOK 2 per share this quarter. We do have also a strong equity position, as you can see, 70.9% by the end of the year, increased now to 74.3%. All in all, we do have now decided that we are going to pay out a dividend, and that will be paid, I think, estimated 18th of May. all in all we do have now decided that we are going to pay out a dividend and that will be paid i think estimated 18th of may That will obviously affect our equity, when we are then closing the second quarter, NOK 146 million. that will obviously affect our equity when we are then closing the second quarter nok 146 million We'll then reduce our total equity and equity percent, but it's still a solid equity as such. we'll then reduce our total equity and equity percent but it's still a solid equity as such Earnings per share, still solid, more than NOK 2 per share this quarter. earnings per share still solid more than nok 2 per share this quarter We do have also a strong equity position, as you can see, 70.9% by the end of the year, increased now to 74.3%. we do have also a strong equity position as you can see 70.9% by the end of the year increased now to 74.3% Cash flow, we do experience that our cash flow from operation is relatively weak this quarter, and there are reasons for that. First of all, we have prepayments of income tax of NOK 14.1 million. We do have the increase in working capital related to increase in our accounts receivables. We also have what is called here other, which are accrued expenses in 2025 that we now have paid out in the first quarter. A lot of this is related to commissions and also yearly bonuses that has been achieved based upon the results that Medistim delivered in 2025. Net cash from operation is NOK 7.2 million. In addition to that, we have investments related to our development project and the IT infrastructure project. Cash flow, we do experience that our cash flow from operation is relatively weak this quarter, and there are reasons for that. cash flow we do experience that our cash flow from operation is relatively weak this quarter and there are reasons for that First of all, we have prepayments of income tax of NOK 14.1 million. first of all we have prepayments of income tax of nok 14.1 million We do have the increase in working capital related to increase in our accounts receivables. we do have the increase in working capital related to increase in our accounts receivables We also have what is called here other, which are accrued expenses in 2025 that we now have paid out in the first quarter. we also have what is called here other which are accrued expenses in 2025 that we now have paid out in the first quarter A lot of this is related to commissions and also yearly bonuses that has been achieved based upon the results that Medistim delivered in 2025. a lot of this is related to commissions and also yearly bonuses that has been achieved based upon the results that medistim delivered in 2025 Net cash from operation is NOK 7.2 million. net cash from operation is nok 7.2 million In addition to that, we have investments related to our development project and the IT infrastructure project. in addition to that we have investments related to our development project and the it infrastructure project We have paid lease obligations of NOK 2.9 million. Net negative cash flow is then NOK 2.3 million, which then leaves us with a cash position pretty much the same as we enter the year into with, NOK 210 million. I leave the word to Kari. Thank you. We have paid lease obligations of NOK 2.9 million. we have paid lease obligations of nok 2.9 million Net negative cash flow is then NOK 2.3 million, which then leaves us with a cash position pretty much the same as we enter the year into with, NOK 210 million. net negative cash flow is then nok 2.3 million which then leaves us with a cash position pretty much the same as we enter the year into with nok 210 million I leave the word to Kari. i leave the word to kari Thank you. thank you

Speaker 1: Yes. Let's then dive into our business segments update, starting with the flow and imaging systems sold in units. This is obviously our most important part of the product portfolio since it's our absolute unique product offering. We are the only company out there providing combined flow measurements and high-frequency ultrasound technology in the same system, which is providing really high value both to cardiac surgeons and to vascular surgeons. As you know, we are selling this product as about double the price of a flow-only system. This is very important for us to see a continued uptake and adoption of this technology. For the quarter, we see it's a good quarter for us. We sold 28 systems this quarter. Yes. yes Let's then dive into our business segments update, starting with the flow and imaging systems sold in units. let's then dive into our business segments update starting with the flow and imaging systems sold in units This is obviously our most important part of the product portfolio since it's our absolute unique product offering. this is obviously our most important part of the product portfolio since it's our absolute unique product offering We are the only company out there providing combined flow measurements and high-frequency ultrasound technology in the same system, which is providing really high value both to cardiac surgeons and to vascular surgeons. we are the only company out there providing combined flow measurements and high-frequency ultrasound technology in the same system which is providing really high value both to cardiac surgeons and to vascular surgeons As you know, we are selling this product as about double the price of a flow-only system. as you know we are selling this product as about double the price of a flow-only system This is very important for us to see a continued uptake and adoption of this technology. this is very important for us to see a continued uptake and adoption of this technology For the quarter, we see it's a good quarter for us. for the quarter we see it's a good quarter for us We sold 28 systems this quarter. we sold 28 systems this quarter EMEA and Asia Pacific sold more than the same quarter last year. Americas is down by four units this quarter. These typically vary from quarter to quarter. All in all, a strong quarter for flow and imaging unit sales. When we are selling these systems, the imaging probe sales tend to follow, and we're also seeing therefore strong imaging probe unit sales this quarter. Here Americas is up by two units, EMEA up by seven, and Asia Pacific down by 1 unit. When we look at the flow-only systems, it's also very reassuring to see that this is also growing. Strong flow system unit sales this quarter up eight units quarter-over-quarter. Americas is up. EMEA is a bit down here. EMEA and Asia Pacific sold more than the same quarter last year. emea and asia pacific sold more than the same quarter last year Americas is down by four units this quarter. americas is down by four units this quarter These typically vary from quarter to quarter. these typically vary from quarter to quarter All in all, a strong quarter for flow and imaging unit sales. all in all a strong quarter for flow and imaging unit sales When we are selling these systems, the imaging probe sales tend to follow, and we're also seeing therefore strong imaging probe unit sales this quarter. when we are selling these systems the imaging probe sales tend to follow and we're also seeing therefore strong imaging probe unit sales this quarter Here Americas is up by two units, EMEA up by seven, and Asia Pacific down by 1 unit. here americas is up by two units emea up by seven and asia pacific down by 1 unit When we look at the flow-only systems, it's also very reassuring to see that this is also growing. when we look at the flow-only systems it's also very reassuring to see that this is also growing Strong flow system unit sales this quarter up eight units quarter-over-quarter. strong flow system unit sales this quarter up eight units quarter-over-quarter Americas is up. americas is up EMEA is a bit down here. emea is a bit down here We recognize that they had the higher flow in imaging sales, so this tend to sort of level out a little bit. We're seeing that Asia Pacific grows by 10 units this quarter, and this is very much driven by growth in our sales to China. When it comes to flow probes in units, we see that it's a very strong continuation of growth here, so up 27% this quarter. A really strong contribution from all the territories. As we know that the strong capital system sales are driving the probe sales across all of these regions. Looking a little bit more into the regions, starting with Americas. Americas this quarter delivered sales revenues of NOK 84.8 million. We recognize that they had the higher flow in imaging sales, so this tend to sort of level out a little bit. we recognize that they had the higher flow in imaging sales so this tend to sort of level out a little bit We're seeing that Asia Pacific grows by 10 units this quarter, and this is very much driven by growth in our sales to China. we're seeing that asia pacific grows by 10 units this quarter and this is very much driven by growth in our sales to china When it comes to flow probes in units, we see that it's a very strong continuation of growth here, so up 27% this quarter. when it comes to flow probes in units we see that it's a very strong continuation of growth here so up 27% this quarter A really strong contribution from all the territories. a really strong contribution from all the territories As we know that the strong capital system sales are driving the probe sales across all of these regions. as we know that the strong capital system sales are driving the probe sales across all of these regions Looking a little bit more into the regions, starting with Americas. looking a little bit more into the regions starting with americas Americas this quarter delivered sales revenues of NOK 84.8 million . americas this quarter delivered sales revenues of nok 84.8 million If we adjust to the same currency as we had last year, we look at an underlying growth of 30.9 for the quarter. As we know, the U.S. is the majority of Americas, and looking at U.S. in isolation, the currency neutral growth was 33%. We have increased our prices significantly in the U.S. and the growth this quarter, we see that about 50% of the 33% is coming from price increases. It's then very reassuring to see that we have good system volume sales as capital, although not as high as the same record quarter last year, and also very strong flow probe volume growth at 46%. If we adjust to the same currency as we had last year, we look at an underlying growth of 30.9 for the quarter. if we adjust to the same currency as we had last year we look at an underlying growth of 30.9 for the quarter As we know, the U.S. is the majority of Americas, and looking at U.S. in isolation, the currency neutral growth was 33%. as we know the u.s is the majority of americas and looking at u.s in isolation the currency neutral growth was 33% We have increased our prices significantly in the U.S. and the growth this quarter, we see that about 50% of the 33% is coming from price increases. we have increased our prices significantly in the u.s and the growth this quarter we see that about 50% of the 33% is coming from price increases It's then very reassuring to see that we have good system volume sales as capital, although not as high as the same record quarter last year, and also very strong flow probe volume growth at 46%. it's then very reassuring to see that we have good system volume sales as capital although not as high as the same record quarter last year and also very strong flow probe volume growth at 46% Canada has a little bit weaker quarter in the beginning of this year, while the Latin American distributors delivered a strong quarter but, of course, from a much lower base. Diving a little bit further into the U.S. We can see here in the table the system sales and also the outplacements on PPP or lease contracts. The total number of units that we have then sold or outplaced this quarters is 14 versus 18 last quarter last year. We're seeing this fewer number of systems sold, but we also see strong sales of consumables to the capital customers. If we look in the second table, the number of procedures from flow probes to capital customers, we see that that is growing by the high 35%. Canada has a little bit weaker quarter in the beginning of this year, while the Latin American distributors delivered a strong quarter but, of course, from a much lower base. canada has a little bit weaker quarter in the beginning of this year while the latin american distributors delivered a strong quarter but of course from a much lower base Diving a little bit further into the U.S. diving a little bit further into the u.s We can see here in the table the system sales and also the outplacements on PPP or lease contracts. we can see here in the table the system sales and also the outplacements on ppp or lease contracts The total number of units that we have then sold or outplaced this quarters is 14 versus 18 last quarter last year. the total number of units that we have then sold or outplaced this quarters is 14 versus 18 last quarter last year We're seeing this fewer number of systems sold, but we also see strong sales of consumables to the capital customers. we're seeing this fewer number of systems sold but we also see strong sales of consumables to the capital customers If we look in the second table, the number of procedures from flow probes to capital customers, we see that that is growing by the high 35%. if we look in the second table the number of procedures from flow probes to capital customers we see that that is growing by the high 35% We're also seeing very high growth of imaging probes to capital customers of 15%. New customers are increasingly coming in as capital accounts, and we also see that some of the current PPP or lease customers tend to convert to capital. This is a trend that is continuing. To the right in this slide, we have split out the flow procedures, splitting out the cardiac part of these procedures and the vascular part. Now we can follow the development of flow procedures to cardiac, here highlighted in orange, either by year or by quarter. This means that it's very easy to calculate the penetration or the adoption of our technology in the U.S. in CABG. The cardiac number for 2025 is about 80,000 procedures. We're also seeing very high growth of imaging probes to capital customers of 15%. we're also seeing very high growth of imaging probes to capital customers of 15% New customers are increasingly coming in as capital accounts, and we also see that some of the current PPP or lease customers tend to convert to capital. new customers are increasingly coming in as capital accounts and we also see that some of the current ppp or lease customers tend to convert to capital This is a trend that is continuing. this is a trend that is continuing To the right in this slide, we have split out the flow procedures, splitting out the cardiac part of these procedures and the vascular part. to the right in this slide we have split out the flow procedures splitting out the cardiac part of these procedures and the vascular part Now we can follow the development of flow procedures to cardiac, here highlighted in orange, either by year or by quarter. now we can follow the development of flow procedures to cardiac here highlighted in orange either by year or by quarter This means that it's very easy to calculate the penetration or the adoption of our technology in the U.S. in CABG. this means that it's very easy to calculate the penetration or the adoption of our technology in the u.s in cabg The cardiac number for 2025 is about 80,000 procedures. the cardiac number for 2025 is about 80,000 procedures Considering a market of around 200,000 procedures, that leads us to a share of 40% covered by Medistim in the U.S. CABG market. Hopefully this would be useful to follow going forward. Moving on to Asia Pacific. Here we delivering NOK 42.7 million in sales. Making this currency neutral, the increase is actually 57.5%. We see that the sales to China is making up the majority of this and growing as high as 74.6% for the quarter. Considering a market of around 200,000 procedures, that leads us to a share of 40% covered by Medistim in the U.S . CABG market. considering a market of around 200,000 procedures that leads us to a share of 40% covered by medistim in the u.s . cabg market Hopefully this would be useful to follow going forward. hopefully this would be useful to follow going forward Moving on to Asia Pacific. moving on to asia pacific Here we delivering NOK 42.7 million in sales. here we delivering nok 42.7 million in sales Making this currency neutral, the increase is actually 57.5%. making this currency neutral the increase is actually 57.5% We see that the sales to China is making up the majority of this and growing as high as 74.6% for the quarter. we see that the sales to china is making up the majority of this and growing as high as 74.6% for the quarter We have continued to explain that we have to expect quarterly variations in our sales to China. Because we do have, of course, sales office with our own staff, but we still rely on local distributors and agents, and that will inevitably result in some quarterly variability. Japan, it is a new era for us in Japan, and Q1 was the final quarter where we're selling through a distributor there. It was on the low side at NOK 2.7 million, much lower than the same quarter last year. This also means that there will be no inventory build-up in the distribution channel as we saw in China when we went direct there. We have continued to explain that we have to expect quarterly variations in our sales to China. Because we do have, of course, sales office with our own staff, but we still rely on local distributors and agents, and that will inevitably result in some quarterly variability. we have continued to explain that we have to expect quarterly variations in our sales to china. because we do have of course sales office with our own staff but we still rely on local distributors and agents and that will inevitably result in some quarterly variability Japan, it is a new era for us in Japan, and Q1 was the final quarter where we're selling through a distributor there. japan it is a new era for us in japan and q1 was the final quarter where we're selling through a distributor there It was on the low side at NOK 2.7 million, much lower than the same quarter last year. it was on the low side at nok 2.7 million much lower than the same quarter last year This also means that there will be no inventory build-up in the distribution channel as we saw in China when we went direct there. this also means that there will be no inventory build-up in the distribution channel as we saw in china when we went direct there We know that when we are starting to sell from the second quarter onwards, that will be through our own team, and there should be no unexpected inventory issues going forward. We also see this quarter quite strong contribution from the other Asia-Pacific distributors, up 105% and contributing then in total with NOK 14.7 million. In Europe and Middle East, the region delivers NOK 52.1 million in sales in the first quarter. Currency neutral, this corresponds to an increase of 11.5%. We note that our direct markets delivered sales in line with the prior year, so no big change there. While the distributor sales is actually providing the growth contribution this quarter going up 26% currency neutral. We know that when we are starting to sell from the second quarter onwards, that will be through our own team, and there should be no unexpected inventory issues going forward. we know that when we are starting to sell from the second quarter onwards that will be through our own team and there should be no unexpected inventory issues going forward We also see this quarter quite strong contribution from the other Asia-Pacific distributors, up 105% and contributing then in total with NOK 14.7 million. we also see this quarter quite strong contribution from the other asia-pacific distributors up 105% and contributing then in total with nok 14.7 million In Europe and Middle East, the region delivers NOK 52.1 million in sales in the first quarter. in europe and middle east the region delivers nok 52.1 million in sales in the first quarter Currency neutral, this corresponds to an increase of 11.5%. currency neutral this corresponds to an increase of 11.5% We note that our direct markets delivered sales in line with the prior year, so no big change there. we note that our direct markets delivered sales in line with the prior year so no big change there While the distributor sales is actually providing the growth contribution this quarter going up 26% currency neutral. while the distributor sales is actually providing the growth contribution this quarter going up 26% currency neutral Just thinking back at the EMEA performance also through 2025, varying quite a lot, direct markets from time to time contributing very strongly and in other quarters a bit weaker. I expect to see a bit variation going forward here as well, but really good news that we in the first quarter are already growing by 11.5% currency neutral. That's very encouraging. The third-party products, as mentioned in the introduction here, the revenue is down 30%. We are reminded that the first quarter last year represented an exceptionally strong comparable because we sold a lot of ophthalmology products to two new hospitals in Norway. We could not plan for or expect to repeat that sales in this quarter. Just thinking back at the EMEA performance also through 2025, varying quite a lot, direct markets from time to time contributing very strongly and in other quarters a bit weaker. just thinking back at the emea performance also through 2025 varying quite a lot direct markets from time to time contributing very strongly and in other quarters a bit weaker I expect to see a bit variation going forward here as well, but really good news that we in the first quarter are already growing by 11.5% currency neutral. i expect to see a bit variation going forward here as well but really good news that we in the first quarter are already growing by 11.5% currency neutral That's very encouraging. that's very encouraging The third-party products, as mentioned in the introduction here, the revenue is down 30%. the third-party products as mentioned in the introduction here the revenue is down 30% We are reminded that the first quarter last year represented an exceptionally strong comparable because we sold a lot of ophthalmology products to two new hospitals in Norway. we are reminded that the first quarter last year represented an exceptionally strong comparable because we sold a lot of ophthalmology products to two new hospitals in norway We could not plan for or expect to repeat that sales in this quarter. we could not plan for or expect to repeat that sales in this quarter Other than that, we have a highly diversified product portfolio, and it's Mentor and A.M.I., which are the biggest contributors in the whole portfolio. This table is just summarizing the growth in the NOK from the direct markets and also from the distributor parts and regions. I will not go through the details here. Of course, we are following closely the development of the vascular sales since this is the new market that we are establishing a position in. In this specific market, we see that growth is missing in the vascular segment. It's just 1% up from the same quarter last year. Other than that, we have a highly diversified product portfolio, and it's Mentor and A.M.I., which are the biggest contributors in the whole portfolio. other than that we have a highly diversified product portfolio and it's mentor and a.m.i which are the biggest contributors in the whole portfolio This table is just summarizing the growth in the NOK from the direct markets and also from the distributor parts and regions. this table is just summarizing the growth in the nok from the direct markets and also from the distributor parts and regions I will not go through the details here. i will not go through the details here Of course, we are following closely the development of the vascular sales since this is the new market that we are establishing a position in. of course we are following closely the development of the vascular sales since this is the new market that we are establishing a position in In this specific market, we see that growth is missing in the vascular segment. in this specific market we see that growth is missing in the vascular segment It's just 1% up from the same quarter last year. it's just 1% up from the same quarter last year We see that the cardiac sales growth was 34.5%, really at the high side and is responsible for being the driver of the total growth this quarter. Vascular sales is accounting for 17% of our own product sales, it's not a bad proportion. It was a little bit higher than when we looked at the 2025 numbers. Here we are just expecting the vascular growth to continue and going forward will be in line with what we've seen in previous years. We also follow the split of flow portfolio versus the imaging product portfolio closely. We see that the cardiac sales growth was 34.5%, really at the high side and is responsible for being the driver of the total growth this quarter. we see that the cardiac sales growth was 34.5% really at the high side and is responsible for being the driver of the total growth this quarter Vascular sales is accounting for 17% of our own product sales, it's not a bad proportion. vascular sales is accounting for 17% of our own product sales it's not a bad proportion It was a little bit higher than when we looked at the 2025 numbers. it was a little bit higher than when we looked at the 2025 numbers Here we are just expecting the vascular growth to continue and going forward will be in line with what we've seen in previous years. here we are just expecting the vascular growth to continue and going forward will be in line with what we've seen in previous years We also follow the split of flow portfolio versus the imaging product portfolio closely. we also follow the split of flow portfolio versus the imaging product portfolio closely We can see this quarter that both the flow products and the imaging products are contributing nicely to the total growth, 23% from the flow products and 12.6% from the imaging products. That is a solid performance as well. Closing up here now, taking a look at the recurring versus capital revenues, we can see that this quarter we are seeing 20% growth in our recurring revenues, which is quite in line with also how the capital revenues are growing. The last 12 months takes us to a 70% share of recurring revenues of the total, which is quite in line with the historical levels. A few comments on our strategy. Yeah. We can see this quarter that both the flow products and the imaging products are contributing nicely to the total growth, 23% from the flow products and 12.6% from the imaging products. we can see this quarter that both the flow products and the imaging products are contributing nicely to the total growth 23% from the flow products and 12.6% from the imaging products That is a solid performance as well. that is a solid performance as well Closing up here now, taking a look at the recurring versus capital revenues, we can see that this quarter we are seeing 20% growth in our recurring revenues, which is quite in line with also how the capital revenues are growing. closing up here now taking a look at the recurring versus capital revenues we can see that this quarter we are seeing 20% growth in our recurring revenues which is quite in line with also how the capital revenues are growing The last 12 months takes us to a 70% share of recurring revenues of the total, which is quite in line with the historical levels. the last 12 months takes us to a 70% share of recurring revenues of the total which is quite in line with the historical levels A few comments on our strategy. a few comments on our strategy Yeah. yeah Just to go through this really quickly, we have a strong position in the coronary bypass segment, so the cardiac segment. We have some markets with really high market share with our Medistim technology. Japan, China, the Nordic countries, the German-speaking countries, and other European countries as well, with really high share, up to 80%-90% of the procedures covered. Here it is important for us to continue to convert the dominant flow only install base to a flow in imaging install base. This is gradually increasing and ongoing. We are also working to grow our adoption in what we regard as under-penetrated markets, including the U.S. at 40%. Of course, it's growing, but still regarded as under-penetrated in our view. Just to go through this really quickly, we have a strong position in the coronary bypass segment, so the cardiac segment. just to go through this really quickly we have a strong position in the coronary bypass segment so the cardiac segment We have some markets with really high market share with our Medistim technology. we have some markets with really high market share with our medistim technology Japan, China, the Nordic countries, the German-speaking countries, and other European countries as well, with really high share, up to 80%-90% of the procedures covered. japan china the nordic countries the german-speaking countries and other european countries as well with really high share up to 80%-90% of the procedures covered Here it is important for us to continue to convert the dominant flow only install base to a flow in imaging install base. here it is important for us to continue to convert the dominant flow only install base to a flow in imaging install base This is gradually increasing and ongoing. this is gradually increasing and ongoing We are also working to grow our adoption in what we regard as under-penetrated markets, including the U.S. at 40%. we are also working to grow our adoption in what we regard as under-penetrated markets including the u.s at 40% Of course, it's growing, but still regarded as under-penetrated in our view. of course it's growing but still regarded as under-penetrated in our view Clinical marketing, the studies that we are doing really critically important in order to get that traction. Flexible pricing and business models are important in some particular areas. We have mentioned India before. There are other areas also where we are finding different business models and ways of making our products available and affordable to the customers. That's a part of our strategy. As I mentioned, building a position in vascular has been a focus for quite some time already, and we are getting traction there. Last but not least, to expand our direct market coverage and getting closer to our customers, that leads us into the change that we announced the 2nd of February this year, that we're opening our direct sales office in Japan. As of 16th of March, we are direct. Clinical marketing, the studies that we are doing really critically important in order to get that traction. clinical marketing the studies that we are doing really critically important in order to get that traction Flexible pricing and business models are important in some particular areas. flexible pricing and business models are important in some particular areas We have mentioned India before. we have mentioned india before There are other areas also where we are finding different business models and ways of making our products available and affordable to the customers. there are other areas also where we are finding different business models and ways of making our products available and affordable to the customers That's a part of our strategy. that's a part of our strategy As I mentioned, building a position in vascular has been a focus for quite some time already, and we are getting traction there. as i mentioned building a position in vascular has been a focus for quite some time already and we are getting traction there Last but not least, to expand our direct market coverage and getting closer to our customers, that leads us into the change that we announced the 2nd of February this year, that we're opening our direct sales office in Japan. last but not least to expand our direct market coverage and getting closer to our customers that leads us into the change that we announced the 2nd of february this year that we're opening our direct sales office in japan As of 16th of March, we are direct. as of 16th of march we are direct We have now a very solid team in place. We have 10 employees there and a very experienced leader with background from the vascular area, which is really very important and provides optimism in terms of breaking into a vascular market also in Japan. We know that Japan is the strongest market for us in terms of the market penetration. 90% of the CABG surgery procedures are already supported with our technology. The question is how to continue this growth. By getting closer to the end users, we want to get higher traction of the conversion from flow-only systems to flow with imaging systems. Of course, we get the, let's say, the one-off effect of capturing the distributor margin, that's also important. We have now a very solid team in place. we have now a very solid team in place We have 10 employees there and a very experienced leader with background from the vascular area, which is really very important and provides optimism in terms of breaking into a vascular market also in Japan. we have 10 employees there and a very experienced leader with background from the vascular area which is really very important and provides optimism in terms of breaking into a vascular market also in japan We know that Japan is the strongest market for us in terms of the market penetration. 90% of the CABG surgery procedures are already supported with our technology. we know that japan is the strongest market for us in terms of the market penetration 90% of the cabg surgery procedures are already supported with our technology The question is how to continue this growth. the question is how to continue this growth By getting closer to the end users, we want to get higher traction of the conversion from flow-only systems to flow with imaging systems. by getting closer to the end users we want to get higher traction of the conversion from flow-only systems to flow with imaging systems Of course, we get the, let's say, the one-off effect of capturing the distributor margin, that's also important. of course we get the let's say the one-off effect of capturing the distributor margin that's also important We will then seek to untap this potential from vascular procedures as well. Last year we had sales through our Japan, Japanese distributor of about NOK 21 million, and that gives some idea about what we could expect for this year, taking into account that the distributor margin would be now going to Medistim. As also mentioned in the previous quarterly presentation, related to the first quarter, I want just to remind that we are now sponsoring a new randomized clinical trial in CABG surgery, the so-called SMARTFLOW trial. We will then seek to untap this potential from vascular procedures as well. we will then seek to untap this potential from vascular procedures as well Last year we had sales through our Japan, Japanese distributor of about NOK 21 million, and that gives some idea about what we could expect for this year, taking into account that the distributor margin would be now going to Medistim. last year we had sales through our japan japanese distributor of about nok 21 million and that gives some idea about what we could expect for this year taking into account that the distributor margin would be now going to medistim As also mentioned in the previous quarterly presentation, related to the first quarter, I want just to remind that we are now sponsoring a new randomized clinical trial in CABG surgery, the so-called SMARTFLOW trial. as also mentioned in the previous quarterly presentation related to the first quarter i want just to remind that we are now sponsoring a new randomized clinical trial in cabg surgery the so-called smartflow trial Being a large randomized clinical trial comparing the use of flow technology versus no use of flow technology, this could be a breakthrough into providing the evidence to make our technology being eligible for guideline inclusions in the U.S., which is the country where we are lacking that kind of support. The lead investigator of the trial, Professor Mario Gaudino, well-known, really one of the, I would say the stars on the CABG heaven at this time. He was also the first author of the circulation paper that we have been referring to many, many times, which is a absolutely critical consensus paper stating that this group of highly renowned surgeons are saying that TTFM should be used in every CABG case. Being a large randomized clinical trial comparing the use of flow technology versus no use of flow technology, this could be a breakthrough into providing the evidence to make our technology being eligible for guideline inclusions in the U.S., which is the country where we are lacking that kind of support. being a large randomized clinical trial comparing the use of flow technology versus no use of flow technology this could be a breakthrough into providing the evidence to make our technology being eligible for guideline inclusions in the u.s which is the country where we are lacking that kind of support The lead investigator of the trial, Professor Mario Gaudino, well-known, really one of the, I would say the stars on the CABG heaven at this time. the lead investigator of the trial professor mario gaudino well-known really one of the i would say the stars on the cabg heaven at this time He was also the first author of the circulation paper that we have been referring to many, many times, which is a absolutely critical consensus paper stating that this group of highly renowned surgeons are saying that TTFM should be used in every CABG case. he was also the first author of the circulation paper that we have been referring to many many times which is a absolutely critical consensus paper stating that this group of highly renowned surgeons are saying that ttfm should be used in every cabg case This paper is also concluding that there is a lack of randomized clinical data, and this is now the project that they want to go through. We know that the first patients have been enrolled in this trial. It is going to be 1,242 patients enrolled, and there will only be Medistim's MiraQ flow measurement system that will be used. That will be mandatory, and then we will of course also encourage the surgeons to use the imaging component while this is not mandatory. It will be a relatively big trial with 20 centers in U.S., Canada, Europe, and Asia, so good coverage there. This paper is also concluding that there is a lack of randomized clinical data, and this is now the project that they want to go through. this paper is also concluding that there is a lack of randomized clinical data and this is now the project that they want to go through We know that the first patients have been enrolled in this trial. we know that the first patients have been enrolled in this trial It is going to be 1,242 patients enrolled, and there will only be Medistim's MiraQ flow measurement system that will be used. it is going to be 1,242 patients enrolled and there will only be medistim's miraq flow measurement system that will be used That will be mandatory, and then we will of course also encourage the surgeons to use the imaging component while this is not mandatory. that will be mandatory and then we will of course also encourage the surgeons to use the imaging component while this is not mandatory It will be a relatively big trial with 20 centers in U.S., Canada, Europe, and Asia, so good coverage there. it will be a relatively big trial with 20 centers in u.s canada europe and asia so good coverage there The goals of the study to begin with is to determine whether TTFM reduces the rate of graft failure. This will be checked within 1-3 months of the surgery, and it's going to be documented by coronary CT angiography. The idea is that this provides a platform to continue the study and evaluate the impact of TTFM on the longer-term clinical outcomes. We're talking about myocardial infarction, repeated revascularization, survival, and quality of life. These are the outcomes that are relevant for guidelines consideration. We really believe and hope that the whole platform study will be prolonged into this long-term clinical outcomes study. Exciting days. The goals of the study to begin with is to determine whether TTFM reduces the rate of graft failure. the goals of the study to begin with is to determine whether ttfm reduces the rate of graft failure This will be checked within 1-3 months of the surgery, and it's going to be documented by coronary CT angiography. this will be checked within 1-3 months of the surgery and it's going to be documented by coronary ct angiography The idea is that this provides a platform to continue the study and evaluate the impact of TTFM on the longer-term clinical outcomes. the idea is that this provides a platform to continue the study and evaluate the impact of ttfm on the longer-term clinical outcomes We're talking about myocardial infarction, repeated revascularization, survival, and quality of life. we're talking about myocardial infarction repeated revascularization survival and quality of life These are the outcomes that are relevant for guidelines consideration. these are the outcomes that are relevant for guidelines consideration We really believe and hope that the whole platform study will be prolonged into this long-term clinical outcomes study. we really believe and hope that the whole platform study will be prolonged into this long-term clinical outcomes study Exciting days. exciting days Our involvement here, of course, it's a scientifically independent trial, but we are making a limited financial contribution of $500,000, which will be, well, supporting the study over the course of the trial. At the side of course, the main objective, which is to provide this evidence, is also providing us with an opportunity to facilitate upgrade of the imaging at the sites that are currently not imaging users. That's a, let's say, a very interesting business opportunity. We will also encourage and help the centers to get hold of the newest INTUI software. This is also a great opportunity. Yes. I think we can open up for questions. Our involvement here, of course, it's a scientifically independent trial, but we are making a limited financial contribution of $500,000, which will be, well, supporting the study over the course of the trial. our involvement here of course it's a scientifically independent trial but we are making a limited financial contribution of $500,000 which will be well supporting the study over the course of the trial At the side of course, the main objective, which is to provide this evidence, is also providing us with an opportunity to facilitate upgrade of the imaging at the sites that are currently not imaging users. at the side of course the main objective which is to provide this evidence is also providing us with an opportunity to facilitate upgrade of the imaging at the sites that are currently not imaging users That's a, let's say, a very interesting business opportunity. that's a let's say a very interesting business opportunity We will also encourage and help the centers to get hold of the newest INTUI software. we will also encourage and help the centers to get hold of the newest intui software This is also a great opportunity. this is also a great opportunity Yes. yes I think we can open up for questions. i think we can open up for questions

Speaker 2: We have some questions today too. Congratulations on surpassing NOK 200 million in first quarter revenue. APAC delivered strong growth in this quarter, accounting for around 24% of sales of own products. What is your ambition for this region, which markets do you see offering the greatest growth potential from today's levels? We have some questions today too. we have some questions today too Congratulations on surpassing NOK 200 million in first quarter revenue. APAC delivered strong growth in this quarter, accounting for around 24% of sales of own products. congratulations on surpassing nok 200 million in first quarter revenue. apac delivered strong growth in this quarter accounting for around 24% of sales of own products What is your ambition for this region, which markets do you see offering the greatest growth potential from today's levels? what is your ambition for this region which markets do you see offering the greatest growth potential from today's levels

Speaker 1: Yes, absolutely. I think the moves we've made in Asia Pacific, first by establishing our own team in China and going through a little bit of a rough patch in the early days there with some distribution channel issues. We now see that we are really getting a return on that initiative and investment. It was really encouraging us to move forward also with going direct in Japan. Asia Pacific is of course, many other interesting countries and opportunities, and we've highlighted India as one of the next big growth opportunities in the territories. Yes, absolutely. yes absolutely I think the moves we've made in Asia Pacific, first by establishing our own team in China and going through a little bit of a rough patch in the early days there with some distribution channel issues. i think the moves we've made in asia pacific first by establishing our own team in china and going through a little bit of a rough patch in the early days there with some distribution channel issues We now see that we are really getting a return on that initiative and investment. we now see that we are really getting a return on that initiative and investment It was really encouraging us to move forward also with going direct in Japan. it was really encouraging us to move forward also with going direct in japan Asia Pacific is of course, many other interesting countries and opportunities, and we've highlighted India as one of the next big growth opportunities in the territories. asia pacific is of course many other interesting countries and opportunities and we've highlighted india as one of the next big growth opportunities in the territories That will also be a region where we will, yeah, be placing, I guess, more resources and give more attention and continue the great collaboration we have with LivaNova in that territory. Yes, Asia Pacific is the runners up for driving growth for Medistim. The Americas and U.S. in particular will continue to be the major and foremost growth driver also in the sort of near term or the next few years. That will also be a region where we will, yeah, be placing, I guess, more resources and give more attention and continue the great collaboration we have with LivaNova in that territory. that will also be a region where we will yeah be placing i guess more resources and give more attention and continue the great collaboration we have with livanova in that territory Yes, Asia Pacific is the runners up for driving growth for Medistim. yes asia pacific is the runners up for driving growth for medistim The Americas and U.S. in particular will continue to be the major and foremost growth driver also in the sort of near term or the next few years. the americas and u.s in particular will continue to be the major and foremost growth driver also in the sort of near term or the next few years

Speaker 2: Thank you. On the cost side, other operating expenses increased significantly. Do you view this as one-offs or should we expect higher operating expenses going forward? Thank you. thank you On the cost side, other operating expenses increased significantly. on the cost side other operating expenses increased significantly Do you view this as one-offs or should we expect higher operating expenses going forward? do you view this as one-offs or should we expect higher operating expenses going forward

Speaker 3: Answer that, Kari. Answer that, Kari. answer that kari

Speaker 1: The cost master. The cost master. the cost master

Speaker 3: Well, of the increase of just over NOK 10 million, I would say around NOK 5 million are one-off expenses. That is related to the IT infrastructure project. That will be a project that we will finalize during the year. We also have this agent commission, which are unusual, NOK 2.1 million. In addition to that, I would say that the establishing of the Japanese office around NOK 1 million are one-off expenses. Going forward, we will still have that operations ongoing, but this is kind of like a one-off to establish everything. Those are the one-offs. The recruitment, I mean, Medistim is growing, so we will always recruit. That will be ongoing. Could be timing, related to that when the expenses are coming. Well, of the increase of just over NOK 10 million, I would say around NOK 5 million are one-off expenses. well of the increase of just over nok 10 million i would say around nok 5 million are one-off expenses That is related to the IT infrastructure project. that is related to the it infrastructure project That will be a project that we will finalize during the year. that will be a project that we will finalize during the year We also have this agent commission, which are unusual, NOK 2.1 million. we also have this agent commission which are unusual nok 2.1 million In addition to that, I would say that the establishing of the Japanese office around NOK 1 million are one-off expenses. in addition to that i would say that the establishing of the japanese office around nok 1 million are one-off expenses Going forward, we will still have that operations ongoing, but this is kind of like a one-off to establish everything. going forward we will still have that operations ongoing but this is kind of like a one-off to establish everything Those are the one-offs. those are the one-offs The recruitment, I mean, Medistim is growing, so we will always recruit. the recruitment i mean medistim is growing so we will always recruit That will be ongoing. that will be ongoing Could be timing, related to that when the expenses are coming. could be timing related to that when the expenses are coming Our commercial activities are something that we are actually driving to make sure that our sales force are getting out there and make sure that they have the face time with the customers. Around NOK 5 million, I would say, are one-off expenses. Our commercial activities are something that we are actually driving to make sure that our sales force are getting out there and make sure that they have the face time with the customers. our commercial activities are something that we are actually driving to make sure that our sales force are getting out there and make sure that they have the face time with the customers Around NOK 5 million, I would say, are one-off expenses. around nok 5 million i would say are one-off expenses

Speaker 2: Thank you. The next one is on currencies. Currency movements have had a no-noticeable impact on this quarter results. Could you outline your currency strategy and how Medistim manages FX risk? Thank you. thank you The next one is on currencies. the next one is on currencies Currency movements have had a no-noticeable impact on this quarter results. currency movements have had a no-noticeable impact on this quarter results Could you outline your currency strategy and how Medistim manages FX risk? could you outline your currency strategy and how medistim manages fx risk

Speaker 3: It's actually very simple. We do not speculate in currency. That means that most of our cash coming in in $ and EUR are then converted to NOK as they, as they come into us. However, we do have some hedging contracts that we enter when we do see that the currency is favorable for Medistim. In that sense, we are a little bit speculative, but in general, it's more like a spot conversion to NOK. This has been the case for Medistim in many, many years. We tried to make hedging contracts in order to reduce the risk. It's actually very simple. it's actually very simple We do not speculate in currency. we do not speculate in currency That means that most of our cash coming in in $ and EUR are then converted to NOK as they, as they come into us. that means that most of our cash coming in in $ and eur are then converted to nok as they as they come into us However, we do have some hedging contracts that we enter when we do see that the currency is favorable for Medistim. however we do have some hedging contracts that we enter when we do see that the currency is favorable for medistim In that sense, we are a little bit speculative, but in general, it's more like a spot conversion to NOK. in that sense we are a little bit speculative but in general it's more like a spot conversion to nok This has been the case for Medistim in many, many years. this has been the case for medistim in many many years We tried to make hedging contracts in order to reduce the risk. we tried to make hedging contracts in order to reduce the risk We do see that, you know, whether you do that or you enter, or convert on spot currencies, all in all, you will, you know, you could lose or gain regardless. If we do have a secured cash flow for a large project, it makes sense to have a hedging contract because you know then you will have an amount of EUR or U.S. dollars coming in. Our cash flow is not like that. It's more a random cash flow stream that comes into Medistim, and therefore it's a little bit more difficult to plan that in that sense. We do see that, you know, whether you do that or you enter, or convert on spot currencies, all in all, you will, you know, you could lose or gain regardless. we do see that you know whether you do that or you enter or convert on spot currencies all in all you will you know you could lose or gain regardless If we do have a secured cash flow for a large project, it makes sense to have a hedging contract because you know then you will have an amount of EUR or U.S. dollars coming in. if we do have a secured cash flow for a large project it makes sense to have a hedging contract because you know then you will have an amount of eur or u.s dollars coming in Our cash flow is not like that. our cash flow is not like that It's more a random cash flow stream that comes into Medistim, and therefore it's a little bit more difficult to plan that in that sense. it's more a random cash flow stream that comes into medistim and therefore it's a little bit more difficult to plan that in that sense

Speaker 2: Thank you. The third-party business show a decline of some 30% compared to 2025. Can you elaborate on the development and the expectation going forward? Thank you. thank you The third-party business show a decline of some 30% compared to 2025. the third-party business show a decline of some 30% compared to 2025 Can you elaborate on the development and the expectation going forward? can you elaborate on the development and the expectation going forward

Speaker 1: I can perhaps say something about that. I mean, as we know, we had a tremendous year last year. The first quarter and maybe a bit into second quarter as well, we provided a very strong result and growth for the third party portfolio last year. Going back, yeah, it has been a lot of variation, but I would say maybe the growth rate has been around 5%, so much more moderate. And I think, in sort of a normal circumstance, you know, it's probably around there that expectations should be. Yeah. There's no real changes that we're seeing. I mean, we have a solid portfolio of products. We are managing those, working closely with the suppliers that we are serving. I can perhaps say something about that. i can perhaps say something about that I mean, as we know, we had a tremendous year last year. i mean as we know we had a tremendous year last year The first quarter and maybe a bit into second quarter as well, we provided a very strong result and growth for the third party portfolio last year. the first quarter and maybe a bit into second quarter as well we provided a very strong result and growth for the third party portfolio last year Going back, yeah, it has been a lot of variation, but I would say maybe the growth rate has been around 5%, so much more moderate. going back yeah it has been a lot of variation but i would say maybe the growth rate has been around 5% so much more moderate And I think, in sort of a normal circumstance, you know, it's probably around there that expectations should be. and i think in sort of a normal circumstance you know it's probably around there that expectations should be Yeah. yeah There's no real changes that we're seeing. there's no real changes that we're seeing I mean, we have a solid portfolio of products. i mean we have a solid portfolio of products We are managing those, working closely with the suppliers that we are serving. we are managing those working closely with the suppliers that we are serving We're also seeking new agencies on a regular basis. You know, I'm very happy with the third party team that we have. They are operating a lean organization, providing good margins on their work. Yeah, I'm expecting that to continue sort of in the more historical levels. We're also seeking new agencies on a regular basis. we're also seeking new agencies on a regular basis You know, I'm very happy with the third party team that we have. you know i'm very happy with the third party team that we have They are operating a lean organization, providing good margins on their work. they are operating a lean organization providing good margins on their work Yeah, I'm expecting that to continue sort of in the more historical levels. yeah i'm expecting that to continue sort of in the more historical levels

Speaker 2: The last question is from the public chat. What kind of gross margin level on own products is to be expected going forward? The last question is from the public chat. the last question is from the public chat What kind of gross margin level on own products is to be expected going forward? what kind of gross margin level on own products is to be expected going forward

Speaker 3: What we've seen throughout the years is that our own products are increasing more than third-party products. As we do that, the gross margins increases in percent and also the EBIT margin. To answer that, I mean, we do have in our reports the split of the segments, sales of our own products and sales of third-party products. Based upon that split, you could see what margins are to be expected from sales of our own product and EBIT margin as well. What we've seen throughout the years is that our own products are increasing more than third-party products. what we've seen throughout the years is that our own products are increasing more than third-party products As we do that, the gross margins increases in percent and also the EBIT margin. as we do that the gross margins increases in percent and also the ebit margin To answer that, I mean, we do have in our reports the split of the segments, sales of our own products and sales of third-party products. to answer that i mean we do have in our reports the split of the segments sales of our own products and sales of third-party products Based upon that split, you could see what margins are to be expected from sales of our own product and EBIT margin as well. based upon that split you could see what margins are to be expected from sales of our own product and ebit margin as well The thing, though, that could affect it is that, you know, if we continue to grow, and that is expected in our direct markets, these margins will actually continue to grow as well as we shift more business from direct operation compared to distributor operation. The thing, though, that could affect it is that, you know, if we continue to grow, and that is expected in our direct markets, these margins will actually continue to grow as well as we shift more business from direct operation compared to distributor operation. the thing though that could affect it is that you know if we continue to grow and that is expected in our direct markets these margins will actually continue to grow as well as we shift more business from direct operation compared to distributor operation

Speaker 2: Thank you. That was all the questions. Thank you. thank you That was all the questions. that was all the questions Just a sec. Just came in one. Could you give us an update on your factory automation project? Just a sec. just a sec Just came in one. just came in one Could you give us an update on your factory automation project? could you give us an update on your factory automation project

Speaker 1: Yes. Yes. yes We have mentioned that one of the projects that we're working on has been to redesign our probes and making them possible to automate. That part of the project has come to almost a conclusion, and we are in the phase of sort of looking into various options on how to actually move forward with that automation. I can't give very specific information about that, but this is a very important and critical project for us. We want to make sure that we have really a future-proof production process that not only provides improved cost levels for us, but are securing the high volumes that we will be needing to supply the market with, you know, when we are fulfilling our growth objectives. It's moving forward. We have mentioned that one of the projects that we're working on has been to redesign our probes and making them possible to automate. we have mentioned that one of the projects that we're working on has been to redesign our probes and making them possible to automate That part of the project has come to almost a conclusion, and we are in the phase of sort of looking into various options on how to actually move forward with that automation. that part of the project has come to almost a conclusion and we are in the phase of sort of looking into various options on how to actually move forward with that automation I can't give very specific information about that, but this is a very important and critical project for us. i can't give very specific information about that but this is a very important and critical project for us We want to make sure that we have really a future-proof production process that not only provides improved cost levels for us, but are securing the high volumes that we will be needing to supply the market with, you know, when we are fulfilling our growth objectives. we want to make sure that we have really a future-proof production process that not only provides improved cost levels for us but are securing the high volumes that we will be needing to supply the market with you know when we are fulfilling our growth objectives It's moving forward. it's moving forward We will give more information when it's becoming more concrete. We will give more information when it's becoming more concrete. we will give more information when it's becoming more concrete

Speaker 2: We are through. Thank you. We are through. we are through Thank you. thank you

Speaker 3: Thank you. Thank you. thank you

Speaker 1: Thank you very much, and we look forward to the next encounter. Thank you. Thank you very much, and we look forward to the next encounter. thank you very much and we look forward to the next encounter Thank you. thank you