Vitrolife — Call Transcript 2026

Welcome to Vitrolife Q1 2026 earnings call. For the first part of the presentation, participants will be in listen-only mode. During the questions-and-answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Please start by asking one question, followed by a follow-up question. It's then fine to queue up again for more questions. Now I will hand the conference over to CEO Bronwyn Brophy and CFO Pär Ihrskog. Please go ahead. Good morning, everyone, and welcome to the Vitrolife Group Q1 2026 earnings call. Thank you for dialing in. I'm joined by Pär Ihrskog, the CFO of the Vitrolife Group. I'd like to start this morning and today's presentation by providing you with an update on the latest dynamics that we are seeing in the reproductive health market. I've broken this down into three key areas. Markets or regions, customers, and competitors. Let's start with the markets. What we're seeing is European IVF cycles are remaining stable. We see cycle growth rates starting to increase in North America after a slow start to the year. What I would point out is we're starting to see an increased seasonality there, whereby January is a particularly slow month and the growth tends to accelerate as the calendar year progresses. Middle East IVF cycle activity is significantly down, as one would reasonably expect given the geopolitical situation. In APAC, the markets are performing stronger than expected, but I would like to point out that Q1 2025 was exceptionally low. The other dynamic that we are seeing is an increase in regulation of genetic testing. We welcome this as we believe it is in the best interest of patients. The Vitrolife Group has a lot of competence in the area of regulatory affairs and market access in general. I'll now move over to discuss the customers. Consolidation is continuing, with chains expanding their footprint in all regions. We see an insourcing of genetic services in the Middle East. I guess that's not surprising given the drop in IVF cycles that I have mentioned and clinics increasingly looking for sources of revenue. We're also seeing an increase in RFPs or tenders from clinic chains. This tends to favor the full portfolio larger players. Again, we see this as an advantage for the Vitrolife Group. Finally, demand for automation is high, and it's increasing as clinics strive to improve their efficiency. Of course, this is one of the core pillars of the Vitrolife Group strategy to help clinics with automation. Okay, moving on then to competitors. In the market, there have been supply issues from competitors in parts of the consumables portfolio in particular, and we have taken advantage of this dynamic, capturing share. Interestingly, we're seeing an increased presence of low-cost genetic competitors in low-price regions. I think this is going to be an interesting one to watch because regulatory demands are going up, and I think grabbing share at low prices is going to be tough to maintain as the regulatory demands increase. We, as you know, at the Vitrolife Group, have a goal of driving sustainable, profitable growth, so we will not be engaging in low-price competitive tactics. I think this is an interesting one to point out. Competitive activity is regionally based, despite the fact that on paper we face global players in terms of the competitive landscape. The Vitrolife Group is a true global player, as evidenced from our regional revenue split. However, we don't face the same competitors across the key markets. All right. We'll now move on, and I'll take you through some of the key highlights. America sales. America sales increased by 11%, and the strategic investments that we have made in North America are clearly paying off. We're starting to see this quarter-after-quarter now, and if anything, the growth in North America is accelerating. We're happy to see our gross margin back up at 59.9%. In fact, this is one of our strongest gross margin performances in a long time. We are becoming more sophisticated in terms of our ability to leverage the full portfolio in the key markets where we have decided to double down. Consumable sales increased by 9%. It was difficult to pick either consumables or technologies because technologies also had a very strong performance in the quarter. I think this consumables number clearly demonstrates that we are improving our competitive position globally. The technologies growth, by the way, for those of you who haven't seen the number yet, is +11%, as I said, organic growth in local currencies. All right. Let's now move into the regions. We will start with our largest region, which is EMEA, accounting for 38% of the global revenue of the Vitrolife Group. Sales of SEK 312 million in the quarter, a decline of -1% in local currencies. We had robust growth in Europe, offset by declines in cycle volumes in the Middle East. This is not lost share, it's cycle volumes. As I said, Europe performing well. Sales and consumables were flat. The Middle East is impacting the region's performance as a whole. Sales and technologies decreased by -2% with very strong sales actually in Europe, both of capital and consumables and technologies offset by a significant decline in capital sales in the Middle East. Would like to point out here that Europe is our most penetrated region for EmbryoScope, but clinics' need for automation is driving demand. I think what's particularly pleasing about the Technologies numbers is the Consumables revenue per EmbryoScope is accelerating nicely. Sales in Genetics decreased by 2%, due again to the situation in the Middle East. Of course, in this region, this is actually the region most impacted by the exit of certain tests in the genetic services portfolio. I would say broadly across the region, strong performance in Europe offset by decline in IVF cycles in the Middle East due to the situation there. Okay, let's move on now and we will take a look at market region Americas. As you all know, we made a strategic decision to invest in sales and marketing in North America, but particularly in the United States. We are now delivering strong double-digit growth in the largest IVF market in the world in terms of revenue. Sales of SEK 264 million in an organic growth in local currencies of 11%. What I really like about the performance here is that it's strong across the entire portfolio. It's everywhere, so and well above the market growth rates. Sales and Consumables increased by 16%, and this is driven by share gains in high volume centers. This has been one of the key growth drivers for us and an area where we have very much doubled down and brought in specialist talent to work with us in the large clinic chains. Sales and Technologies grew by 107% as we increased adoption of EmbryoScope in the large clinic chains. Sales in Genetics increased by 2% with a strong performance in North America, offset by a decline in low-priced markets in South America. To conclude, very strong performance in Americas driven by North America and on this occasion, particularly by the United States. Okay. Finally, we move to APAC. The APAC market, as you well know, has been turbulent for several quarters. We are pleased to see some signs of recovery. We delivered sales of 232 million SEK in the quarter, an organic growth of 7%. I should also point out, as you can see here from the donut, that APAC now accounts for 29% in terms of share of revenue. Higher market growth than we've seen for several quarters, partially due to a low Q1 in 2025. Consumables grew by 15% with a strong performance across the portfolio in key markets. What we're really starting to see now is that our ability to leverage the strong position that we have in media and other areas is serving us very well in terms of our ability to start accelerating growth across the other parts of the Consumables portfolio. Technologies sales increased by 5% as we increase our EmbryoScope penetration. In Genetics, sales declined by 6%, and this is primarily due to the timing of genomic kits orders from major clinic chains. This can have big swings from one quarter to the next. I would say again to conclude here, I'm overall pleased to see APAC back in growth terms. All right. I'm going to move on to my final slide before I hand you over to Pär. As you know, we have a mission to be the leading global partner in reproductive health, striving for better outcomes for patients. Of course, we are executing on our quarters, but very importantly, we need to stay on track in terms of executing on our long-term strategy, helping us to become that leading global partner. I'd like to give you an update in terms of how we are doing in relation to growth, innovation, and operational excellence. When it comes to growth, we're driving profitable growth through improved market and customer segmentation. We've become much more sophisticated, strategic, and I would say premeditated in terms of which markets we're going to play in, which markets we're not going to play in, and same goes for customers. This is all in the name of driving profitable growth. We're gaining share by leveraging the full Vitrolife Group portfolio. We are a true end-to-end provider for large clinic chains. We have Consumables, we have Technologies, and of course we have a full service in terms of Genetics. Then we are accelerating penetration of our EmbryoScope and Lab & Quality control solutions in clinic chains. As I mentioned in my opening slide, demand for automation to improve clinic efficiency is high, and it's only increasing. In terms of innovation, we have a strong pipeline of new products, of new tests, and solutions that we are going to be bringing to market in the coming quarters. We're very excited about this. Innovation is an area where we decided to double down over the past two and a half years. We are also advancing the efficiency of the IVF clinic workflow through the use of AI and our iDAScore software in embryo selection. When it comes to operational excellence, we're investing in IT and digital capabilities, as we've mentioned several times. This is to improve the customer journey, but also to improve connectivity with the large clinic chains, and this is where we're winning. You can see this from the results. That connectivity piece is very important. We are taking actions to optimize our cost base across operations and back office. Of course, you're very familiar with the restructuring program that we announced in December. With that, I'm going to hand you over to Pär to take you through the financial highlights. Thank you, Bronwyn. Some numbers. Our net sales ended up at SEK 807 million. It's in SEK, -4% growth, heavily impacted by negative currency as we have seen now for four quarters in a row. I will come back to that in the next slide. Our gross margin ended up at SEK 483 million, with a gross margin of 59.9%, which is one of the stronger we've seen for many quarters. Our EBITDA ended up at SEK 251 million and a margin of 31.1%. The increase in margin was driven by product and market mix, strong growth in Consumables, and strong growth in Technologies and strong growth in APAC. That's what I mean with the product and market mix. Go back to the net sales then. We ended up at SEK 807 million. We had a 5% positive organic growth in local currencies, but with the current situation that started actually 12 months ago, we still see that. A negative impact from currency of 9% on the top line ending up in a SEK growth of -4%. On the gross margin, 59.9%, it's one of the strongest quarter in gross margin due to a strategic focus on key markets and product groups. We had strong sales in Technologies and Consumables, two product groups with high gross margin. Also very strong sales in APAC with high gross margin. This is behind the product and market mix comment. If you look at the segment, Bronwyn already talked about the sales, but if we look at the incoming gross margin, we see an improved gross margin in all regions. Very positive. 56.1% in Americas compared to 53.7%. 61.7% in EMEA, compared to 59.5%, and 61.7% versus 58.4% last year. Good improvement in all regions in gross margin. On the market contribution, 25.9% versus 25.3% in Americas. 38.8% versus 39.2% in EMEA, and in APAC, 43.4% compared to 42.4%. All in all, we had a slight improvement in market contribution, a total 35.9% versus 35.6% last year, quarter one. If we look at then at the operational expense development the last five quarters, we see a reduction versus the last three quarters, and it's flat versus Q1 last year. I will come back with some details on that. The restructuring program that Bronwyn mentioned is on track. We don't have that much impact in Q1 when it comes to savings. The savings will kick in starting Q2 and also Q3. On the details on the OpEx. It's flat compared to Q1 last year, but we see an increase in selling and marketing that's related to the investment we've done in Americas that Bronwyn explained. We also have a slight increase in admin that is related to IT spending. The increase in R&D of SEK 6 million compared to Q1 last year is related to spending that have been allocated to support upcoming product releases and launches. The increase from these three have been offset by positive currency revaluation effect that is booked in other income expense. All in all, it's flat compared to last year. On the cash flow, we usually comment upon the middle bar here, the cash flow from operating activities, which ended up at SEK 172 million. Last year it was SEK 69 million. Of that cash, we have invested SEK 44 million in the ongoing investment in the new production facilities in Gothenburg, but also R&D investment in product development. Of the remaining cash, we have reduced our loans by SEK 66 million, ending up at cash flow for the period of SEK 61 million. To summarize then, the key financials, SEK 807 million, representing 5% organic growth in local currencies. Strong gross margin 59.9%. Strong EBITDA margin 31.1%. Our net income, SEK 101 million, in line with last year. Earnings per share SEK 0.74. Our cash flow that I just explained, SEK 172 million versus SEK 69 million last year. Our net debt to EBITDA SEK 0.6, a slight improvement from last year. Our proposed dividend is SEK 1.10 per share. By that, we open up for Q&A. If you wish to ask a question please dial pound key five on your telephone keypad, to enter the queue. If you wish to withdraw your question please dial pound key six on your telephone keypad. Please start by asking one question followed by a follow-up question, it's then fine to queue up for more questions. The next question comes from Ulrik Trattner from DNB Carnegie. Please go ahead. Thank you very much, and good morning, Bronwyn and Pär. My question would relate to the growth in North America and the strong development that we have seen there. It looks like you're continuing to grab market share, and you talk about it. Is it possible to quantify how much of the growth here is coming from normalized market versus market share gains? Especially also if we can get some nuances on from whom you're grabbing this market share. My impression is that both Irvine and Kitazato are relatively aggressive in the marketing in the region. Would you say that the share base is broad-based from all your competitors, or is it from single source? As well as a follow-up would be, how important is your Denver facility in order to sort of grab these market share versus your competitors that are predominantly outside of the U.S. in production? Okay. I think that's three questions in one, but I'm more than happy to answer them all, Ulrik. Thank you. Actually, I'm going to start with the final part. We do have a facility in Denver, as you rightly point out. We have manufacturing, but we also have our main lab there, as you know. We also have a laboratory in Miami and customer service there, and then we have manufacturing in San Diego. We have a sort of a strong footprint in terms of, let's just say, what would be expected. Who are we taking share from? It's always very difficult to say because in the IVF market, unfortunately, unlike other areas of healthcare like orthopedics or cardiology, you don't have independently published data confirming the competitive position of each of the players. Equally, we report Americas together. I can tell you, if we look at our North America growth broken out, it is significantly above cycle growth in the region. There's a lot of distraction factor going on in the market, Ulrik. The largest competitor has its own challenges with the strategic review and I guess, yeah, that sort of plays to our advantage. You have players three, four, and five consolidating into a new company. What I say to the team, Ulrik, is don't get distracted. Keep our heads down. We have a fantastic end-to-end high-quality portfolio. We've invested in the region in a really, really strong team. Just don't get distracted, keep your eyes on the prize and drive share gains. I think the other thing that's really helped us is we are targeting the large clinic chains, and they are demanding high quality, but they're also increasingly looking for automation. The combination of EmbryoScope and the efficiency that that brings, you can see EmbryoScope, we're up 107%. It's not insignificant. The combination of EmbryoScope, then the high-quality consumables portfolio, and then we're one of the market leaders when it comes to genetic services. We're really leveraging the full portfolio. This is a guesstimate, but I think it's broad share gain from multiple players. The distraction factor, of course, helps. I've answered the manufacturing footprint, I've answered the share, and hopefully, I've answered that it is well above the market growth rates without divulging the exact percentage. It's healthy across the board, Ulrik. No, no, that's pretty gone. We obviously don't give you the breakdown. You see it by Genetics, by Consumables, and by Technologies. What I can tell you is it is across the entire portfolio. It's everywhere, which is really nice and a healthy thing to see. Okay, great. Thank you very much, Bronwyn. Just a quick follow-up. As you mentioned, more consolidation and higher sort of tender activity. Is that something that is purely favoring you, or are you seeing price pressure as well on the back of that? Yeah. Right now it's favoring us because the large clinic chains tend to want to deal with one supplier with a potential backup. They don't want to have to deal and contract with multiple players. I would say maybe slight bit more price pressure on the genetic side, not so much across the rest of the portfolio. Again, I guess the thing, of course, with genetic services is people tend to want to go with very high-trust players, and that doesn't necessarily mean that they're as cost sensitive as one would expect. I would say we're not experiencing high-cost pressure in the market, and typically the larger tenders are something that favors the larger players, us being one of them. Yeah, I would say right now it's a tailwind, not a headwind. Great. Thank you very much, Bronwyn. I'll get back into the queue. Thank you, Ulrik. The next question comes from Jakob Lembke from SEB. Please go ahead. Yeah. Hi. A question on APAC. Quite positive development here in the quarter, and you sound a bit more positive on the market growth, I would say, but you also highlight that Q1 last year was exceptionally weak. I guess my question then is, when you look forward, do you see APAC sort of getting back to the, yeah, maybe better low to mid-single digit growth again? Yeah, looking forward. Yeah, it's a really good question, Jakob. It's quite a mixed bag in APAC. Happy to see the growth, but yeah, as you correctly say, Q1 was very low. I think there are some green shoots, but I wouldn't be getting too excited. It's very much regionally based. What we are seeing, and I got this question this morning from Dagens Industri is, governments across the world, and we see it here in Sweden, are really starting to improve the support for people, not just the IVF costs, but also the cost of raising a child. I think over the longer horizon, we would have to believe that these measures will start to kick in. I think I would be cautiously optimistic, Jakob, on APAC. It's been turbulent for quite a while. Yes, it's a good quarter, and we managed to do particularly well, but I would like to see some sustained quarters of recovery before I could conclusively say that it's returning to the type of numbers that you mentioned. In summary- Okay. That's very helpful. ...it's very difficult. Yeah. Okay, great. Just a follow-up then, regarding the gross margin, which I believe is strong here in the quarter compared to recent quarter. As you said, Pär, I know it's very mix sensitive, but I guess if we say that the mix on reagents and products, they're the same, should we expect the same gross margin ahead of time? Yeah. As I said, it's a product and market mix where Consumables, which is a high gross margin product group, is growing well, and Technologies as well, and less growth in Genetics, which is the lower gross margin product group. Yeah. I think this mix we have right now, it's not a one time off mix. I think we can expect similar mix going forward. Maybe not to that extreme, but leaning towards this mix that we saw now. I think we would like to communicate, it is not a coincidence. We are aiming towards growing in the more profitable areas, in the more profitable countries. We are also, as communicated in December, leaving some product lines that are not so profitable and leaving some low margin small countries. Yeah These are of course helping us. We haven't seen the full effect of this. It started to kick in a little bit in the end of quarter one, but more will come. The full effect we will see in Q2 and onwards. That will help us even further on the gross margin a little bit. Okay. That's clear. I'll get back to the queue. Thanks. The next question comes from Ludvig Lundgren from Nordea. Please go ahead. Yes. Hi, and thanks for taking my questions. I wanted to start out on your current view of the IVF market. You sounded quite optimistic regarding cycle growth coming back to mid-single digits for 2026 in the Q4 report. Has your market view changed in any way since then? Yeah. It's exactly as I said at the start. There are regional differences for sure, but Europe is stable, which is good. That's our largest region. U.S. and North America, as we know, was very rocky last year for all of the reasons that we know. It did start slow, but it's improving, which is good. Middle East is a disappointment, but what can we do? You can only control the controllables. APAC, to the point we've just discussed there with Jakob's question. APAC is a mixed bag, but key markets there make a very big difference. I think, very hard to say if only, but if everything had been normal in the Middle East, I think, yeah, we would've been back in that sort of range, but of course, it isn't. We're all hoping for peace, and the sooner that happens, the better. Certainly, things are a lot more stable than they were last year, and that's good. Yeah, it's been very difficult to predict. We are starting to see, I think the words that they use on the other side of the pond is normalcy. We're starting to see more normal cycle levels, which is good. With the Middle East piece, I don't believe we're back up to mid-single digits. We're not there yet with that situation, but healthier signs in most of the regions, which is good. Okay, thanks. Very clear. Then a bit of a follow-up on the gross margin side. You mentioned mix affecting mainly APAC and Americas, but in EMEA, it seems that the mix was somewhat similar to Q1 last year. What explains this, I think 2% gross margin increase year-over-year in EMEA isolated? Yeah, I can have a go at that, Pär. Technologies and Consumables did very well in Europe in this quarter. Unfortunately, that performance was offset by the situation in the Middle East, but the higher margin parts of the portfolio are performing well in Europe. As Pär mentioned, Genetics is lower margin, so the growth being down positively affects the mix. I don't know, Pär, if you have a better way of explaining it. No, that's it. Okay, great. Thanks. I'll jump back into the queue. Thank you. The next question comes from Sten Gustafsson from ABG Sundal Collier. Please go ahead. Yes, good morning. Thank you. I want to ask you about the supply issues you mentioned for one of your competitor. If you could perhaps talk about what kind of products is related here, and also how much of the 9% growth you had in the quarter is sort of related to that, if that would be possible to break out. Yeah. Sten thank you for the question. This particular competitor has had supply issues, but also recalls and legal challenges. This has been ongoing for quite a while. You have a little bit of a compounding impact here, Sten, in terms of, as I've stated in previous earnings call, we have captured media share. We've been capturing it for a while. With that full portfolio play and us becoming much more targeted in terms of the markets where we're playing in, where the ability to leverage the full portfolio and pull through across the rest is leading to share gains in other areas outside of media. Our consumable growth is well above market growth. The exact split is very difficult to quantify, unfortunately. I'm not being evasive, I just don't have objective data to be able to commit to a number on that. Consumables in North America grew 16% in the quarter. That is significantly above the cycle growth in North America this quarter. It has been compounding, Sten. It's- Okay. ...supply issues, it's recalls, it's distraction. Yeah, it's multiple factors. Yeah. All right. Yeah, thank you very much. If I may follow up on the gross margin, just so I understand correctly. There are no sort of incremental improvements on your actual products. It's all related to the mix, which we should assume to sort of continue with your ambition to grow in more profitable areas, both from a geographical and product mix. Yeah. During last year, we did increase prices in our regions, which of course, have an impact still compared to last year then. That is, of course, contributing. There is no specific action on a specific product group this quarter. It's more the mix, the focus on the regions, the profitable regions, and the profitable product lines that explains the improvement in the gross margin. There is, of course, a price effect there as well, coming from last year price increases. For example, we increased prices by 6% in the U.S. last year, in the mid-year last year. I think that is still have an impact when you compare to last year. We have to carry the cost of tariffs as well, Sten. Don't forget that. We have the tariff piece. Mm-hmm. Sometimes I think people forget med tech, we have tariffs, pharma doesn't. We had to pass those prices on to customers. We did, and we did it quickly, and it helped to insulate us from the tariff effect. I wouldn't say- Yeah, that's. ...it's not by accident. No, no. We took measures, and we executed on them quickly to protect ourselves from that. No, that's very helpful and impressive to see how the gross margin improved here. Thanks for- Mm-hmm ...the color on those questions. Thank you. Thank you, Sten. The next question comes from Filip Einarsson from Redeye. Please go ahead. Okay. Hello everybody. My question is sort of the topic of innovation, which you mention in the report, that you're planning to release new products to bring to market. Maybe you could elaborate a little bit on what sort of products this is and also how impactful you expect them to be over, let's say, the coming year or two on the P&L. Yeah. I would love to tell you that, but I'm not going to tell our competitors who are listening in. What I will tell you is that we have launches coming in all parts of the portfolio. We have launches coming in consumables, we have launches coming in technologies, and we also have launches coming on the genetic services side. Vitrolife has a wonderful history of doing M&A, but I think in-house innovation has been an area for improvement, and we really took a strategic decision to double down here a couple of years ago and not throw paint at a wall and try to innovate everything, but to pick the key areas that will move the needle and be impactful for clinics and for patients. I think what's going to come this year is the results of that R&D prioritization. I don't know if you're planning to go to ESHRE. If you are, hopefully you should see some exciting new things there from the Vitrolife Group. It's coming. Great. Then in terms of impact, yeah, a couple of the launches, one of the launches in particular towards the back end of this year could be quite meaningful. Equally, I would say there will be a launch probably coming out back end of this year or early next year, which we also expect to be very meaningful. I would say two meaningful, impactful ones coming, and others more, I guess, what I would call iterative innovation. Yeah. Okay. That's helpful. With all respect, of course, if you don't want to disclose too much, but maybe you could help us understand if it's more of, let's say, a new product share resource or is it more add-ons to existing products and services? Yeah. It's both. It's some new products. It's other areas where we haven't had an offering before. Others are improvements on what we already have. We also have some breakthroughs coming where we would be first to market with a particular technology. A sliding scale of exciting things to come, Filip. Okay, great. Thank you. Thank you. I'll get back in the queue. Yeah. The next question comes from Filip Wiberg from Pareto Securities. Please go ahead. Hi, good morning. I had a question on the Technologies, which was quite strong in Americas. Q1 is normally on the weaker side seasonally. I'm just trying to get a better sense of the drivers here. First, if there were any orders pushed from Q1 to Q1, for instance, and also what kind of visibility you have going forward now in that area? Very high visibility. We are tracking the funnel on a weekly basis. We're intensely tracking the funnel for EmbryoScopes, for the consumable revenue of EmbryoScopes, for the services revenue, and for the pull-through. We have built a commercial excellence engine with best-in-class industry talent. I can tell you we are very closely monitoring this. It's not spillover orders that didn't come in in Q4 and came in in Q1. Really what this comes down to is breakthrough in acceptance of EmbryoScope in the clinic chains. That's what it is. That's been more difficult for us. I think historically, Vitrolife Group has been better at selling EmbryoScopes to mom-and-pop smaller clinics. Now, with the chains needing to drive efficiency and reduce costs, they really see and appreciate the advantages that EmbryoScope can bring. While it takes a lot longer to negotiate the purchase of larger numbers of EmbryoScopes, it does, the time from lead to close is a lot longer, but when the deals come over the line, they're larger. That's, yeah, in the case of Q1, that was a big needle mover. We have very high visibility, very high visibility on the EmbryoScope funnel and utilization and consumable revenue per EmbryoScope. Yeah. Okay, thanks. Very happy with that answer. Second one on the just Middle East situation, and- Yeah Obviously always very difficult to answer. The cycle impact, is that mostly about people delaying starting treatment, or have you seen any disruptions to your operations as well? Just, I know it's very uncertain, but do you expect any longstanding consequences from this, like we've seen with the insourcing of genetic services or maybe more a return to normal once the situation deescalates? Yeah. It's mainly, as you rightly point out, Filip, it's mainly people delaying their IVF cycle. Activity is way down in the clinics. It's everywhere, because sometimes people tend to think it's just Iran, Israel. It's across the Gulf. It's across the Gulf States. The impact is pretty far-reaching. I think this is going to take time to return to normal. Because from when a couple, and in the Middle East it's usually a couple, it's not individuals going. From when a couple starts on the IVF journey, it takes a couple of months before they're ready and before we start actually coming into the clinic for retrievals and transfers and all of that. Our expectation is, even if we have peace next week, it's going to take time for the Middle East to recover from this. In terms of disruption to our operations, yeah, we do have some disruption to our operations. We have a genetic services laboratory in Dubai, so activity is obviously way down. In terms of ability to ship to the region, that's also impacted. We have up to now found ways of getting around that. Yeah, the entire region is impacted. Volumes are down, cycles are down in the clinics. We've been managing the disruption, but we haven't been unaffected. Perfect. Thank you very much for that. Maybe the other thing, I don't want to sound too negative, of course, but capital sales are way down in the Middle East. Our EMEA region Technologies did very well in Western Europe, but capital sales are way down in Middle East, which I guess isn't surprising given the situation. Yeah, we think it's going to take a while for this to recover. Yeah. Good. I'm happy with that. Okay. Thanks, Filip. The next question comes from Jakob Lembke from SEB. Please go ahead. Yeah. I have some further follow-ups. I'll start on a question on the U.S. If we look from the market's perspective, I would assume that Q2 last year was the weakest quarter, and I guess also Q3 was a quite weak quarter. With that in mind, should we sort of see potential for even better growth in that region here in the coming quarters? Yeah. The start of Q2 wasn't so badly impacted last year, Jakob. The latter half of the quarter was. The quarter where we really saw the most impact was Q3. Can we accelerate faster? I mean, that's always going to be the goal. We have to say Q1 was very strong across the board. The goal is always going to be to maintain that. I don't think we will see a big bump from the comps in Q2. I think where we would expect it would be more around Q3, Jakob. It's a good point that you raise in terms of the phasing and the comps from last year. Yeah. Okay. That's clear. A more general question on consumables. I'm wondering if there was any large orders or something in the quarter that we should not expect maybe in the coming quarters? Were there large orders? Yeah, there were some large orders in South America. We're starting to perform well in Consumables in LATAM, in South America. The rest of the regions, it's pretty much steady as she goes. There are no big outliers that I would call out. Yeah. Okay. I also have a question on the IT projects you're running. I'm wondering if there would be any sort of, I guess, large investments, sort of, I don't know, that makes individual quarters sort of deviate, or should we expect the current investment level to be sort of a run rate for the coming quarters? Yeah. I think the current level is what you should expect until further notice. There will be, perhaps in the future, a need for bigger investments in IT. But for the time being, there are no such decisions, you can expect the present level going forward. Okay, great. I just do one final, and that is another question on the Middle East. If it's possible to, in any way, quantify the effect it had in the quarter, let's say if it had a 1 percentage point impact to organic growth, for example. I don't think we can quantify that, can we? Yeah, we don't communicate that. Yeah. We don't disclose that information. Yeah. That's what I mean, yeah. You saw the EMEA. It's a net effect of the Middle East and Western Europe, and as Bronwyn said, strong growth in Western Europe, offset by the negative growth in the Middle East. We don't disclose the specific impact. Yeah. I understand. Thank you very much. That's all from me. Yeah. I don't mean to sound evasive, Jakob. We don't disclose that, but I wouldn't underestimate the magnitude of the drop in the Middle East. It's very significant. It's on fumes. Couples are not going forward for IVF in this environment , so t's way down. Down enough that in the Vitrolife Group, it's pulled down the performance of our largest region. We are severely impacted by this. Yeah. There's no doubt about it. Yeah. That's why we're happy with our 5% organic growth in local currencies, because we've managed to deliver it while navigating the Middle East situation. Thanks, Jakob. The next question comes from Ulrik Trattner from DNB Carnegie. Please go ahead. Thank you very much for taking my follow-up question. One question regarding product launches, and I know that you don't want to give up too much information to your competitors, but if we can just phrase it like this. Your Embryo Transfer Catheter gained 510(k) approval mid-year last year. Is that a commercial product now, or is it still in preparation? Yeah. You're smart, Ulrik. I always underestimate you. Yeah, that's going to be one of the ones that's coming, for sure. The ETC, and of course, what's very compelling in our case is we also have EmbryoGlue, right? We have the ETC with the EmbryoGlue, which is a very nice and compelling value proposition for customers. Yeah, that's going to be coming out of the gates. All right. It's an upcoming product launch. Mm-hmm. Great. A second question would potentially be more addressed to you, Pär. It sounds like you're doing a traditional tail cutting, as you're focusing on higher margin products, higher margin markets. To suggest low-hanging fruits, how much of the portfolio are you currently reviewing and assessing beyond what's been announced regarding the genetic strategic review? Yeah. No. It's an ongoing process. What we communicated in December is the lowest hanging fruit. There are more fruits hanging low, so we will continue to do this, and we are working. It's a combination of focusing on this, but also developing tools and measures, how to measure profitability on customer level or product line level and so on. It's an ongoing process, and yeah. We will do more. Is it possible to, in any way, quantify how much of total top line sales would be assessed, or is it just a review of everything all the time? Yeah, we don't disclose that information. We assess everything in all product groups, in all regions. Yep. Again, that's great. Thank you, Pär. Last question on my end. We're now approaching the one-year mark of the class action lawsuit being filed on your end. We have seen the dismissal from your competitors here in the last half a year. Can you provide us with any update on the matter? Yeah. Well, how long is a piece of string is unfortunately how these things go. We see it as a positive sign that there have been other dismissals in this area. Also, the case against Vitrolife was, I'm not quite sure the exact legal language, but it wouldn't have been as strong, as compelling as it was against some of the other competitors, but you never quite know. We're feeling more comfortable around this one in the U.S. Not to go too technical, but we also have certain clauses in our contracts which provide additional safety for us in these types of instances. Let's just put it this way, we don't see any disimprovement or need for increased concern around these cases in the United States. In fact, we see it the opposite way, so. It's a very long process as well, and we haven't received any major updates on that- No ...in the last couple of months here. It takes time. Yeah. That's great. Is it possible to, in any way, quantify how much the lawsuits or legal processes have cost in terms of cost beyond your insurances, etc? Yeah. It's not that much. We have not accrued anything when it comes to potential claims, because we don't believe in that will happen. We have accrued, and we have had costs for the legal support, and that is a couple of million SEK, so far. Correct. That's great. Thank you for taking my additional questions, and I'll get back into the queue. Thanks, Ulrik. The next question comes from Sten Gustafsson from ABG Sundal Collier. Please go ahead. Yes, thank you. Very quick follow-up on the Middle East situation. Could you, and I understand you don't want to give us the exact details on how much it has declined, but could you share with us on a normalized level, how much of your sales comes from the Middle East in a normal year or normal quarter? We don't give the exact percentage, Sten, but I can tell you it's in the single digits. Okay. Thank you. Yeah. Of global or of EMEA? Global in a normal quarter. Yes. Yeah. That makes sense. Okay. Perfect. Thank you. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. There are no more questions at this time. I hand the conference back to the speakers for any closing comments. Thank you very much for joining us. Over and out from sunny Stockholm. Thank you. Thank you very much.

Speaker 6: Welcome to Vitrolife Q1 2026 earnings call. For the first part of the presentation, participants will be in listen-only mode. During the questions-and-answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Please start by asking one question, followed by a follow-up question. It's then fine to queue up again for more questions. Now I will hand the conference over to CEO Bronwyn Brophy and CFO Pär Ihrskog. Please go ahead. Welcome to Vitrolife Q1 2026 earnings call. welcome to vitrolife q1 2026 earnings call For the first part of the presentation, participants will be in listen-only mode. for the first part of the presentation participants will be in listen-only mode During the questions- and- answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. during the questions- and- answers session participants are able to ask questions by dialing pound key five on their telephone keypad Please start by asking one question, followed by a follow-up question. please start by asking one question followed by a follow-up question It's then fine to queue up again for more questions. it's then fine to queue up again for more questions Now I will hand the conference over to CEO Bronwyn Brophy and CFO Pär Ihrskog. now i will hand the conference over to ceo bronwyn brophy and cfo pär ihrskog Please go ahead. please go ahead

Speaker 1: Good morning, everyone, and welcome to the Vitrolife Group Q1 2026 earnings call. Thank you for dialing in. I'm joined by Pär Ihrskog, the CFO of the Vitrolife Group. I'd like to start this morning and today's presentation by providing you with an update on the latest dynamics that we are seeing in the reproductive health market. I've broken this down into three key areas. Good morning, everyone, and welcome to the Vitrolife Group Q1 2026 earnings call. good morning everyone and welcome to the vitrolife group q1 2026 earnings call Thank you for dialing in. thank you for dialing in I'm joined by Pär Ihrskog, the CFO of the Vitrolife Group. i'm joined by pär ihrskog the cfo of the vitrolife group I'd like to start this morning and today's presentation by providing you with an update on the latest dynamics that we are seeing in the reproductive health market. i'd like to start this morning and today's presentation by providing you with an update on the latest dynamics that we are seeing in the reproductive health market I've broken this down into three key areas. i've broken this down into three key areas Markets or regions, customers, and competitors. Let's start with the markets. What we're seeing is European IVF cycles are remaining stable. We see cycle growth rates starting to increase in North America after a slow start to the year. What I would point out is we're starting to see an increased seasonality there, whereby January is a particularly slow month and the growth tends to accelerate as the calendar year progresses. Markets or regions, customers, and competitors. markets or regions customers and competitors Let's start with the markets. let's start with the markets What we're seeing is European IVF cycles are remaining stable. what we're seeing is european ivf cycles are remaining stable We see cycle growth rates starting to increase in North America after a slow start to the year. we see cycle growth rates starting to increase in north america after a slow start to the year What I would point out is we're starting to see an increased seasonality there, whereby January is a particularly slow month and the growth tends to accelerate as the calendar year progresses. what i would point out is we're starting to see an increased seasonality there whereby january is a particularly slow month and the growth tends to accelerate as the calendar year progresses Middle East IVF cycle activity is significantly down, as one would reasonably expect given the geopolitical situation. In APAC, the markets are performing stronger than expected, but I would like to point out that Q1 2025 was exceptionally low. The other dynamic that we are seeing is an increase in regulation of genetic testing. We welcome this as we believe it is in the best interest of patients. Middle East IVF cycle activity is significantly down, as one would reasonably expect given the geopolitical situation. middle east ivf cycle activity is significantly down as one would reasonably expect given the geopolitical situation In APAC, the markets are performing stronger than expected, but I would like to point out that Q1 2025 was exceptionally low. in apac the markets are performing stronger than expected but i would like to point out that q1 2025 was exceptionally low The other dynamic that we are seeing is an increase in regulation of genetic testing. the other dynamic that we are seeing is an increase in regulation of genetic testing We welcome this as we believe it is in the best interest of patients. we welcome this as we believe it is in the best interest of patients The Vitrolife Group has a lot of competence in the area of regulatory affairs and market access in general. I'll now move over to discuss the customers. Consolidation is continuing, with chains expanding their footprint in all regions. We see an insourcing of genetic services in the Middle East. I guess that's not surprising given the drop in IVF cycles that I have mentioned and clinics increasingly looking for sources of revenue. The Vitrolife Group has a lot of competence in the area of regulatory affairs and market access in general. the vitrolife group has a lot of competence in the area of regulatory affairs and market access in general I'll now move over to discuss the customers. i'll now move over to discuss the customers Consolidation is continuing, with chains expanding their footprint in all regions. consolidation is continuing with chains expanding their footprint in all regions We see an insourcing of genetic services in the Middle East. we see an insourcing of genetic services in the middle east I guess that's not surprising given the drop in IVF cycles that I have mentioned and clinics increasingly looking for sources of revenue. i guess that's not surprising given the drop in ivf cycles that i have mentioned and clinics increasingly looking for sources of revenue We're also seeing an increase in RFPs or tenders from clinic chains. This tends to favor the full portfolio larger players. Again, we see this as an advantage for the Vitrolife Group. Finally, demand for automation is high, and it's increasing as clinics strive to improve their efficiency. Of course, this is one of the core pillars of the Vitrolife Group strategy to help clinics with automation. We're also seeing an increase in RFPs or tenders from clinic chains. we're also seeing an increase in rfps or tenders from clinic chains This tends to favor the full portfolio larger players. this tends to favor the full portfolio larger players Again, we see this as an advantage for the Vitrolife Group. again we see this as an advantage for the vitrolife group Finally, demand for automation is high, and it's increasing as clinics strive to improve their efficiency. finally demand for automation is high and it's increasing as clinics strive to improve their efficiency Of course, this is one of the core pillars of the Vitrolife Group strategy to help clinics with automation. of course this is one of the core pillars of the vitrolife group strategy to help clinics with automation Okay, moving on then to competitors. In the market, there have been supply issues from competitors in parts of the consumables portfolio in particular, and we have taken advantage of this dynamic, capturing share. Interestingly, we're seeing an increased presence of low-cost genetic competitors in low-price regions. Okay, moving on then to competitors. okay moving on then to competitors In the market, there have been supply issues from competitors in parts of the consumables portfolio in particular, and we have taken advantage of this dynamic, capturing share. in the market there have been supply issues from competitors in parts of the consumables portfolio in particular and we have taken advantage of this dynamic capturing share Interestingly, we're seeing an increased presence of low-cost genetic competitors in low-price regions. interestingly we're seeing an increased presence of low-cost genetic competitors in low-price regions I think this is going to be an interesting one to watch because regulatory demands are going up, and I think grabbing share at low prices is going to be tough to maintain as the regulatory demands increase. We, as you know, at the Vitrolife Group, have a goal of driving sustainable, profitable growth, so we will not be engaging in low-price competitive tactics. I think this is going to be an interesting one to watch because regulatory demands are going up, and I think grabbing share at low prices is going to be tough to maintain as the regulatory demands increase. i think this is going to be an interesting one to watch because regulatory demands are going up and i think grabbing share at low prices is going to be tough to maintain as the regulatory demands increase We, as you know, at the Vitrolife Group, have a goal of driving sustainable, profitable growth, so we will not be engaging in low-price competitive tactics. we as you know at the vitrolife group have a goal of driving sustainable profitable growth so we will not be engaging in low-price competitive tactics I think this is an interesting one to point out. Competitive activity is regionally based, despite the fact that on paper we face global players in terms of the competitive landscape. The Vitrolife Group is a true global player, as evidenced from our regional revenue split. However, we don't face the same competitors across the key markets. All right. We'll now move on, and I'll take you through some of the key highlights. America sales. I think this is an interesting one to point out. i think this is an interesting one to point out Competitive activity is regionally based, despite the fact that on paper we face global players in terms of the competitive landscape. competitive activity is regionally based despite the fact that on paper we face global players in terms of the competitive landscape The Vitrolife Group is a true global player, as evidenced from our regional revenue split. the vitrolife group is a true global player as evidenced from our regional revenue split However, we don't face the same competitors across the key markets. however we don't face the same competitors across the key markets All right. all right We'll now move on, and I'll take you through some of the key highlights. we'll now move on and i'll take you through some of the key highlights America sales. america sales America sales increased by 11%, and the strategic investments that we have made in North America are clearly paying off. We're starting to see this quarter-after-quarter now, and if anything, the growth in North America is accelerating. We're happy to see our gross margin back up at 59.9%. In fact, this is one of our strongest gross margin performances in a long time. America sales increased by 11%, and the strategic investments that we have made in North America are clearly paying off. america sales increased by 11% and the strategic investments that we have made in north america are clearly paying off We're starting to see this quarter-after-quarter now, and if anything, the growth in North America is accelerating. we're starting to see this quarter-after-quarter now and if anything the growth in north america is accelerating We're happy to see our gross margin back up at 59.9%. we're happy to see our gross margin back up at 59.9% In fact, this is one of our strongest gross margin performances in a long time. in fact this is one of our strongest gross margin performances in a long time We are becoming more sophisticated in terms of our ability to leverage the full portfolio in the key markets where we have decided to double down. Consumable sales increased by 9%. It was difficult to pick either consumables or technologies because technologies also had a very strong performance in the quarter. I think this consumables number clearly demonstrates that we are improving our competitive position globally. We are becoming more sophisticated in terms of our ability to leverage the full portfolio in the key markets where we have decided to double down. we are becoming more sophisticated in terms of our ability to leverage the full portfolio in the key markets where we have decided to double down Consumable sales increased by 9%. consumable sales increased by 9% It was difficult to pick either consumables or technologies because technologies also had a very strong performance in the quarter. it was difficult to pick either consumables or technologies because technologies also had a very strong performance in the quarter I think this consumables number clearly demonstrates that we are improving our competitive position globally. i think this consumables number clearly demonstrates that we are improving our competitive position globally The technologies growth, by the way, for those of you who haven't seen the number yet, is +11%, as I said, organic growth in local currencies. All right. Let's now move into the regions. We will start with our largest region, which is EMEA, accounting for 38% of the global revenue of the Vitrolife Group. Sales of SEK 312 million in the quarter, a decline of -1% in local currencies. We had robust growth in Europe, offset by declines in cycle volumes in the Middle East. This is not lost share, it's cycle volumes. The technologies growth, by the way, for those of you who haven't seen the number yet, is +11%, as I said, organic growth in local currencies. the technologies growth by the way for those of you who haven't seen the number yet is +11% as i said organic growth in local currencies All right. all right Let's now move into the regions. let's now move into the regions We will start with our largest region, which is EMEA, accounting for 38% of the global revenue of the Vitrolife Group. we will start with our largest region which is emea accounting for 38% of the global revenue of the vitrolife group Sales of SEK 312 million in the quarter, a decline of -1% in local currencies. sales of sek 312 million in the quarter a decline of -1% in local currencies We had robust growth in Europe, offset by declines in cycle volumes in the Middle East. we had robust growth in europe offset by declines in cycle volumes in the middle east This is not lost share, it's cycle volumes. this is not lost share it's cycle volumes As I said, Europe performing well. Sales and consumables were flat. The Middle East is impacting the region's performance as a whole. Sales and technologies decreased by -2% with very strong sales actually in Europe, both of capital and consumables and technologies offset by a significant decline in capital sales in the Middle East. As I said, Europe performing well. as i said europe performing well Sales and consumables were flat. sales and consumables were flat The Middle East is impacting the region's performance as a whole. Sales and technologies decreased by -2% with very strong sales actually in Europe, both of capital and consumables and technologies offset by a significant decline in capital sales in the Middle East. the middle east is impacting the region's performance as a whole. sales and technologies decreased by -2% with very strong sales actually in europe both of capital and consumables and technologies offset by a significant decline in capital sales in the middle east Would like to point out here that Europe is our most penetrated region for EmbryoScope, but clinics' need for automation is driving demand. I think what's particularly pleasing about the Technologies numbers is the Consumables revenue per EmbryoScope is accelerating nicely. Sales in Genetics decreased by 2%, due again to the situation in the Middle East. Would like to point out here that Europe is our most penetrated region for EmbryoScope, but clinics' need for automation is driving demand. would like to point out here that europe is our most penetrated region for embryoscope but clinics' need for automation is driving demand I think what's particularly pleasing about the Technologies numbers is the Consumables revenue per EmbryoScope is accelerating nicely. i think what's particularly pleasing about the technologies numbers is the consumables revenue per embryoscope is accelerating nicely Sales in Genetics decreased by 2%, due again to the situation in the Middle East. sales in genetics decreased by 2% due again to the situation in the middle east Of course, in this region, this is actually the region most impacted by the exit of certain tests in the genetic services portfolio. I would say broadly across the region, strong performance in Europe offset by decline in IVF cycles in the Middle East due to the situation there. Okay, let's move on now and we will take a look at market region Americas. As you all know, we made a strategic decision to invest in sales and marketing in North America, but particularly in the United States. Of course, in this region, this is actually the region most impacted by the exit of certain tests in the genetic services portfolio. of course in this region this is actually the region most impacted by the exit of certain tests in the genetic services portfolio I would say broadly across the region, strong performance in Europe offset by decline in IVF cycles in the Middle East due to the situation there. i would say broadly across the region strong performance in europe offset by decline in ivf cycles in the middle east due to the situation there Okay, let's move on now and we will take a look at market region Americas. okay let's move on now and we will take a look at market region americas As you all know, we made a strategic decision to invest in sales and marketing in North America, but particularly in the United States. as you all know we made a strategic decision to invest in sales and marketing in north america but particularly in the united states We are now delivering strong double-digit growth in the largest IVF market in the world in terms of revenue. Sales of SEK 264 million in an organic growth in local currencies of 11%. What I really like about the performance here is that it's strong across the entire portfolio. It's everywhere, so and well above the market growth rates. Sales and Consumables increased by 16%, and this is driven by share gains in high volume centers. This has been one of the key growth drivers for us and an area where we have very much doubled down and brought in specialist talent to work with us in the large clinic chains. Sales and Technologies grew by 107% as we increased adoption of EmbryoScope in the large clinic chains. We are now delivering strong double-digit growth in the largest IVF market in the world in terms of revenue. we are now delivering strong double-digit growth in the largest ivf market in the world in terms of revenue Sales of SEK 264 million in an organic growth in local currencies of 11%. sales of sek 264 million in an organic growth in local currencies of 11% What I really like about the performance here is that it's strong across the entire portfolio. what i really like about the performance here is that it's strong across the entire portfolio It's everywhere, so and well above the market growth rates. it's everywhere so and well above the market growth rates Sales and Consumables increased by 16%, and this is driven by share gains in high volume centers. sales and consumables increased by 16% and this is driven by share gains in high volume centers This has been one of the key growth drivers for us and an area where we have very much doubled down and brought in specialist talent to work with us in the large clinic chains. this has been one of the key growth drivers for us and an area where we have very much doubled down and brought in specialist talent to work with us in the large clinic chains Sales and Technologies grew by 107% as we increased adoption of EmbryoScope in the large clinic chains. sales and technologies grew by 107% as we increased adoption of embryoscope in the large clinic chains Sales in Genetics increased by 2% with a strong performance in North America, offset by a decline in low-priced markets in South America. To conclude, very strong performance in Americas driven by North America and on this occasion, particularly by the United States. Okay. Finally, we move to APAC. The APAC market, as you well know, has been turbulent for several quarters. Sales in Genetics increased by 2% with a strong performance in North America, offset by a decline in low-priced markets in South America. sales in genetics increased by 2% with a strong performance in north america offset by a decline in low-priced markets in south america To conclude, very strong performance in Americas driven by North America and on this occasion, particularly by the United States. to conclude very strong performance in americas driven by north america and on this occasion particularly by the united states Okay. okay Finally, we move to APAC. finally we move to apac The APAC market, as you well know, has been turbulent for several quarters. the apac market as you well know has been turbulent for several quarters We are pleased to see some signs of recovery. We delivered sales of 232 million SEK in the quarter, an organic growth of 7%. I should also point out, as you can see here from the donut, that APAC now accounts for 29% in terms of share of revenue. Higher market growth than we've seen for several quarters, partially due to a low Q1 in 2025. Consumables grew by 15% with a strong performance across the portfolio in key markets. We are pleased to see some signs of recovery. we are pleased to see some signs of recovery We delivered sales of 232 million SEK in the quarter, an organic growth of 7%. we delivered sales of 232 million sek in the quarter an organic growth of 7% I should also point out, as you can see here from the donut, that APAC now accounts for 29% in terms of share of revenue. i should also point out as you can see here from the donut that apac now accounts for 29% in terms of share of revenue Higher market growth than we've seen for several quarters, partially due to a low Q1 in 2025. higher market growth than we've seen for several quarters partially due to a low q1 in 2025 Consumables grew by 15% with a strong performance across the portfolio in key markets. consumables grew by 15% with a strong performance across the portfolio in key markets What we're really starting to see now is that our ability to leverage the strong position that we have in media and other areas is serving us very well in terms of our ability to start accelerating growth across the other parts of the Consumables portfolio. Technologies sales increased by 5% as we increase our EmbryoScope penetration. In Genetics, sales declined by 6%, and this is primarily due to the timing of genomic kits orders from major clinic chains. What we're really starting to see now is that our ability to leverage the strong position that we have in media and other areas is serving us very well in terms of our ability to start accelerating growth across the other parts of the Consumables portfolio. what we're really starting to see now is that our ability to leverage the strong position that we have in media and other areas is serving us very well in terms of our ability to start accelerating growth across the other parts of the consumables portfolio Technologies sales increased by 5% as we increase our EmbryoScope penetration. technologies sales increased by 5% as we increase our embryoscope penetration In Genetics, sales declined by 6%, and this is primarily due to the timing of genomic kits orders from major clinic chains. in genetics sales declined by 6% and this is primarily due to the timing of genomic kits orders from major clinic chains This can have big swings from one quarter to the next. I would say again to conclude here, I'm overall pleased to see APAC back in growth terms. All right. I'm going to move on to my final slide before I hand you over to Pär. As you know, we have a mission to be the leading global partner in reproductive health, striving for better outcomes for patients. This can have big swings from one quarter to the next. this can have big swings from one quarter to the next I would say again to conclude here, I'm overall pleased to see APAC back in growth terms. i would say again to conclude here, i'm overall pleased to see apac back in growth terms All right. all right I'm going to move on to my final slide before I hand you over to Pär. i'm going to move on to my final slide before i hand you over to pär As you know, we have a mission to be the leading global partner in reproductive health, striving for better outcomes for patients. as you know we have a mission to be the leading global partner in reproductive health striving for better outcomes for patients Of course, we are executing on our quarters, but very importantly, we need to stay on track in terms of executing on our long-term strategy, helping us to become that leading global partner. I'd like to give you an update in terms of how we are doing in relation to growth, innovation, and operational excellence. When it comes to growth, we're driving profitable growth through improved market and customer segmentation. Of course, we are executing on our quarters, but very importantly, we need to stay on track in terms of executing on our long-term strategy, helping us to become that leading global partner. of course we are executing on our quarters but very importantly we need to stay on track in terms of executing on our long-term strategy helping us to become that leading global partner I'd like to give you an update in terms of how we are doing in relation to growth, innovation, and operational excellence. i'd like to give you an update in terms of how we are doing in relation to growth innovation and operational excellence When it comes to growth, we're driving profitable growth through improved market and customer segmentation. when it comes to growth we're driving profitable growth through improved market and customer segmentation We've become much more sophisticated, strategic, and I would say premeditated in terms of which markets we're going to play in, which markets we're not going to play in, and same goes for customers. This is all in the name of driving profitable growth. We're gaining share by leveraging the full Vitrolife Group portfolio. We are a true end-to-end provider for large clinic chains. We've become much more sophisticated, strategic, and I would say premeditated in terms of which markets we're going to play in, which markets we're not going to play in, and same goes for customers. we've become much more sophisticated strategic and i would say premeditated in terms of which markets we're going to play in which markets we're not going to play in and same goes for customers This is all in the name of driving profitable growth. this is all in the name of driving profitable growth We're gaining share by leveraging the full Vitrolife Group portfolio. we're gaining share by leveraging the full vitrolife group portfolio We are a true end-to-end provider for large clinic chains. we are a true end-to-end provider for large clinic chains We have Consumables, we have Technologies, and of course we have a full service in terms of Genetics. Then we are accelerating penetration of our EmbryoScope and Lab & Quality control solutions in clinic chains. As I mentioned in my opening slide, demand for automation to improve clinic efficiency is high, and it's only increasing. In terms of innovation, we have a strong pipeline of new products, of new tests, and solutions that we are going to be bringing to market in the coming quarters. We're very excited about this. Innovation is an area where we decided to double down over the past two and a half years. We have Consumables, we have Technologies, and of course we have a full service in terms of Genetics. we have consumables we have technologies and of course we have a full service in terms of genetics Then we are accelerating penetration of our EmbryoScope and Lab & Quality control solutions in clinic chains. then we are accelerating penetration of our embryoscope and lab & quality control solutions in clinic chains As I mentioned in my opening slide, demand for automation to improve clinic efficiency is high, and it's only increasing. as i mentioned in my opening slide demand for automation to improve clinic efficiency is high and it's only increasing In terms of innovation, we have a strong pipeline of new products, of new tests, and solutions that we are going to be bringing to market in the coming quarters. in terms of innovation we have a strong pipeline of new products of new tests and solutions that we are going to be bringing to market in the coming quarters We're very excited about this. we're very excited about this Innovation is an area where we decided to double down over the past two and a half years. innovation is an area where we decided to double down over the past two and a half years We are also advancing the efficiency of the IVF clinic workflow through the use of AI and our iDAScore software in embryo selection. When it comes to operational excellence, we're investing in IT and digital capabilities, as we've mentioned several times. This is to improve the customer journey, but also to improve connectivity with the large clinic chains, and this is where we're winning. You can see this from the results. That connectivity piece is very important. We are taking actions to optimize our cost base across operations and back office. Of course, you're very familiar with the restructuring program that we announced in December. With that, I'm going to hand you over to Pär to take you through the financial highlights. We are also advancing the efficiency of the IVF clinic workflow through the use of AI and our iDAScore software in embryo selection. we are also advancing the efficiency of the ivf clinic workflow through the use of ai and our idascore software in embryo selection When it comes to operational excellence, we're investing in IT and digital capabilities, as we've mentioned several times. when it comes to operational excellence we're investing in it and digital capabilities as we've mentioned several times This is to improve the customer journey, but also to improve connectivity with the large clinic chains, and this is where we're winning. this is to improve the customer journey but also to improve connectivity with the large clinic chains and this is where we're winning You can see this from the results. you can see this from the results That connectivity piece is very important. that connectivity piece is very important We are taking actions to optimize our cost base across operations and back office. we are taking actions to optimize our cost base across operations and back office Of course, you're very familiar with the restructuring program that we announced in December. of course you're very familiar with the restructuring program that we announced in december With that, I'm going to hand you over to Pär to take you through the financial highlights. with that i'm going to hand you over to pär to take you through the financial highlights

Speaker 7: Thank you, Bronwyn. Some numbers. Our net sales ended up at SEK 807 million. It's in SEK, -4% growth, heavily impacted by negative currency as we have seen now for four quarters in a row. I will come back to that in the next slide. Our gross margin ended up at SEK 483 million, with a gross margin of 59.9%, which is one of the stronger we've seen for many quarters. Our EBITDA ended up at SEK 251 million and a margin of 31.1%. The increase in margin was driven by product and market mix, strong growth in Consumables, and strong growth in Technologies and strong growth in APAC. That's what I mean with the product and market mix. Go back to the net sales then. We ended up at SEK 807 million. Thank you, Bronwyn. thank you bronwyn Some numbers. some numbers Our net sales ended up at SEK 807 million. our net sales ended up at sek 807 million It's in SEK, - 4% growth, heavily impacted by negative currency as we have seen now for four quarters in a row. it's in sek - 4% growth heavily impacted by negative currency as we have seen now for four quarters in a row I will come back to that in the next slide. i will come back to that in the next slide Our gross margin ended up at SEK 483 million, with a gross margin of 59.9%, which is one of the stronger we've seen for many quarters. our gross margin ended up at sek 483 million with a gross margin of 59.9% which is one of the stronger we've seen for many quarters Our EBITDA ended up at SEK 251 million and a margin of 31.1%. our ebitda ended up at sek 251 million and a margin of 31.1% The increase in margin was driven by product and market mix, strong growth in Consumables, and strong growth in Technologies and strong growth in APAC. the increase in margin was driven by product and market mix strong growth in consumables and strong growth in technologies and strong growth in apac That's what I mean with the product and market mix. that's what i mean with the product and market mix Go back to the net sales then. go back to the net sales then We ended up at SEK 807 million. we ended up at sek 807 million We had a 5% positive organic growth in local currencies, but with the current situation that started actually 12 months ago, we still see that. A negative impact from currency of 9% on the top line ending up in a SEK growth of -4%. On the gross margin, 59.9%, it's one of the strongest quarter in gross margin due to a strategic focus on key markets and product groups. We had a 5% positive organic growth in local currencies, but with the current situation that started actually 12 months ago, we still see that. we had a 5% positive organic growth in local currencies but with the current situation that started actually 12 months ago we still see that A negative impact from currency of 9% on the top line ending up in a SEK growth of -4%. a negative impact from currency of 9% on the top line ending up in a sek growth of -4% On the gross margin, 59.9%, it's one of the strongest quarter in gross margin due to a strategic focus on key markets and product groups. on the gross margin 59.9% it's one of the strongest quarter in gross margin due to a strategic focus on key markets and product groups We had strong sales in Technologies and Consumables, two product groups with high gross margin. Also very strong sales in APAC with high gross margin. This is behind the product and market mix comment. If you look at the segment, Bronwyn already talked about the sales, but if we look at the incoming gross margin, we see an improved gross margin in all regions. Very positive. 56.1% in Americas compared to 53.7%. We had strong sales in Technologies and Consumables, two product groups with high gross margin. we had strong sales in technologies and consumables two product groups with high gross margin Also very strong sales in APAC with high gross margin. also very strong sales in apac with high gross margin This is behind the product and market mix comment. this is behind the product and market mix comment If you look at the segment, Bronwyn already talked about the sales, but if we look at the incoming gross margin, we see an improved gross margin in all regions. if you look at the segment bronwyn already talked about the sales but if we look at the incoming gross margin we see an improved gross margin in all regions Very positive. 56.1% in Americas compared to 53.7%. very positive 56.1% in americas compared to 53.7% 61.7% in EMEA, compared to 59.5%, and 61.7% versus 58.4% last year. Good improvement in all regions in gross margin. On the market contribution, 25.9% versus 25.3% in Americas. 38.8% versus 39.2% in EMEA, and in APAC, 43.4% compared to 42.4%. All in all, we had a slight improvement in market contribution, a total 35.9% versus 35.6% last year, quarter one. 61.7% in EMEA, compared to 59.5%, and 61.7% versus 58.4% last year. 61.7% in emea compared to 59.5% and 61.7% versus 58.4% last year Good improvement in all regions in gross margin. good improvement in all regions in gross margin On the market contribution, 25.9% versus 25.3% in Americas. 38.8% versus 39.2% in EMEA, and in APAC, 43.4% compared to 42.4%. on the market contribution 25.9% versus 25.3% in americas 38.8% versus 39.2% in emea and in apac 43.4% compared to 42.4% All in all, we had a slight improvement in market contribution, a total 35.9% versus 35.6% last year, quarter one. all in all we had a slight improvement in market contribution a total 35.9% versus 35.6% last year quarter one If we look at then at the operational expense development the last five quarters, we see a reduction versus the last three quarters, and it's flat versus Q1 last year. I will come back with some details on that. The restructuring program that Bronwyn mentioned is on track. We don't have that much impact in Q1 when it comes to savings. The savings will kick in starting Q2 and also Q3. If we look at then at the operational expense development the last five quarters, we see a reduction versus the last three quarters, and it's flat versus Q1 last year. if we look at then at the operational expense development the last five quarters we see a reduction versus the last three quarters and it's flat versus q1 last year I will come back with some details on that. i will come back with some details on that The restructuring program that Bronwyn mentioned is on track. the restructuring program that bronwyn mentioned is on track We don't have that much impact in Q1 when it comes to savings. we don't have that much impact in q1 when it comes to savings The savings will kick in starting Q2 and also Q3. the savings will kick in starting q2 and also q3 On the details on the OpEx. It's flat compared to Q1 last year, but we see an increase in selling and marketing that's related to the investment we've done in Americas that Bronwyn explained. We also have a slight increase in admin that is related to IT spending. The increase in R&D of SEK 6 million compared to Q1 last year is related to spending that have been allocated to support upcoming product releases and launches. On the details on the OpEx. on the details on the opex It's flat compared to Q1 last year, but we see an increase in selling and marketing that's related to the investment we've done in Americas that Bronwyn explained. it's flat compared to q1 last year but we see an increase in selling and marketing that's related to the investment we've done in americas that bronwyn explained We also have a slight increase in admin that is related to IT spending. we also have a slight increase in admin that is related to it spending The increase in R&D of SEK 6 million compared to Q1 last year is related to spending that have been allocated to support upcoming product releases and launches. the increase in r&d of sek 6 million compared to q1 last year is related to spending that have been allocated to support upcoming product releases and launches The increase from these three have been offset by positive currency revaluation effect that is booked in other income expense. All in all, it's flat compared to last year. On the cash flow, we usually comment upon the middle bar here, the cash flow from operating activities, which ended up at SEK 172 million. Last year it was SEK 69 million. The increase from these three have been offset by positive currency revaluation effect that is booked in other income expense. the increase from these three have been offset by positive currency revaluation effect that is booked in other income expense All in all, it's flat compared to last year. all in all it's flat compared to last year On the cash flow, we usually comment upon the middle bar here, the cash flow from operating activities, which ended up at SEK 172 million. on the cash flow we usually comment upon the middle bar here the cash flow from operating activities which ended up at sek 172 million Last year it was SEK 69 million. last year it was sek 69 million Of that cash, we have invested SEK 44 million in the ongoing investment in the new production facilities in Gothenburg, but also R&D investment in product development. Of the remaining cash, we have reduced our loans by SEK 66 million, ending up at cash flow for the period of SEK 61 million. To summarize then, the key financials, SEK 807 million, representing 5% organic growth in local currencies. Of that cash, we have invested SEK 44 million in the ongoing investment in the new production facilities in Gothenburg, but also R&D investment in product development. of that cash we have invested sek 44 million in the ongoing investment in the new production facilities in gothenburg but also r&d investment in product development Of the remaining cash, we have reduced our loans by SEK 66 million, ending up at cash flow for the period of SEK 61 million. of the remaining cash we have reduced our loans by sek 66 million ending up at cash flow for the period of sek 61 million To summarize then, the key financials, SEK 807 million, representing 5% organic growth in local currencies. to summarize then the key financials, sek 807 million representing 5% organic growth in local currencies Strong gross margin 59.9%. Strong EBITDA margin 31.1%. Our net income, SEK 101 million, in line with last year. Earnings per share SEK 0.74. Our cash flow that I just explained, SEK 172 million versus SEK 69 million last year. Our net debt to EBITDA SEK 0.6, a slight improvement from last year. Our proposed dividend is SEK 1.10 per share. By that, we open up for Q&A. Strong gross margin 59.9%. strong gross margin 59.9% Strong EBITDA margin 31.1%. strong ebitda margin 31.1% Our net income, SEK 101 million, in line with last year. our net income, sek 101 million in line with last year Earnings per share SEK 0.74. earnings per share sek 0.74 Our cash flow that I just explained, SEK 172 million versus SEK 69 million last year. our cash flow that i just explained, sek 172 million versus sek 69 million last year Our net debt to EBITDA SEK 0.6, a slight improvement from last year. our net debt to ebitda sek 0.6 a slight improvement from last year Our proposed dividend is SEK 1.10 per share. our proposed dividend is sek 1.10 per share By that, we open up for Q&A. by that we open up for q&a

Speaker 6: If you wish to ask a question please dial pound key five on your telephone keypad, to enter the queue. If you wish to withdraw your question please dial pound key six on your telephone keypad. Please start by asking one question followed by a follow-up question, it's then fine to queue up for more questions. The next question comes from Ulrik Trattner from DNB Carnegie. Please go ahead. If you wish to ask a question please dial pound key five on your telephone keypad, to enter the queue. If you wish to withdraw your question please dial pound key six on your telephone keypad. Please start by asking one question followed by a follow-up question, it's then fine to queue up for more questions. The next question comes from Ulrik Trattner from DNB Carnegie. if you wish to ask a question please dial pound key five on your telephone keypad, to enter the queue. if you wish to withdraw your question please dial pound key six on your telephone keypad. please start by asking one question followed by a follow-up question, it's then fine to queue up for more questions. the next question comes from ulrik trattner from dnb carnegie Please go ahead. please go ahead

Speaker 9: Thank you very much, and good morning, Bronwyn and Pär. My question would relate to the growth in North America and the strong development that we have seen there. It looks like you're continuing to grab market share, and you talk about it. Is it possible to quantify how much of the growth here is coming from normalized market versus market share gains? Thank you very much, and good morning, Bronwyn and Pär. thank you very much and good morning bronwyn and pär My question would relate to the growth in North America and the strong development that we have seen there. my question would relate to the growth in north america and the strong development that we have seen there It looks like you're continuing to grab market share, and you talk about it. it looks like you're continuing to grab market share and you talk about it Is it possible to quantify how much of the growth here is coming from normalized market versus market share gains? is it possible to quantify how much of the growth here is coming from normalized market versus market share gains Especially also if we can get some nuances on from whom you're grabbing this market share. My impression is that both Irvine and Kitazato are relatively aggressive in the marketing in the region. Would you say that the share base is broad-based from all your competitors, or is it from single source? As well as a follow-up would be, how important is your Denver facility in order to sort of grab these market share versus your competitors that are predominantly outside of the U.S. in production? Especially also if we can get some nuances on from whom you're grabbing this market share. especially also if we can get some nuances on from whom you're grabbing this market share My impression is that both Irvine and Kitazato are relatively aggressive in the marketing in the region. my impression is that both irvine and kitazato are relatively aggressive in the marketing in the region Would you say that the share base is broad-based from all your competitors, or is it from single source? would you say that the share base is broad-based from all your competitors or is it from single source As well as a follow-up would be, how important is your Denver facility in order to sort of grab these market share versus your competitors that are predominantly outside of the U.S. in production? as well as a follow-up would be how important is your denver facility in order to sort of grab these market share versus your competitors that are predominantly outside of the u.s in production

Speaker 1: Okay. I think that's three questions in one, but I'm more than happy to answer them all, Ulrik. Okay. okay I think that's three questions in one, but I'm more than happy to answer them all, Ulrik. i think that's three questions in one but i'm more than happy to answer them all ulrik

Speaker 9: Thank you. Thank you. thank you

Speaker 1: Actually, I'm going to start with the final part. We do have a facility in Denver, as you rightly point out. We have manufacturing, but we also have our main lab there, as you know. We also have a laboratory in Miami and customer service there, and then we have manufacturing in San Diego. We have a sort of a strong footprint in terms of, let's just say, what would be expected. Who are we taking share from? Actually, I'm going to start with the final part. actually i'm going to start with the final part We do have a facility in Denver, as you rightly point out. we do have a facility in denver as you rightly point out We have manufacturing, but we also have our main lab there, as you know. we have manufacturing but we also have our main lab there as you know We also have a laboratory in Miami and customer service there, and then we have manufacturing in San Diego. we also have a laboratory in miami and customer service there and then we have manufacturing in san diego We have a sort of a strong footprint in terms of, let's just say, what would be expected. we have a sort of a strong footprint in terms of let's just say what would be expected Who are we taking share from? who are we taking share from It's always very difficult to say because in the IVF market, unfortunately, unlike other areas of healthcare like orthopedics or cardiology, you don't have independently published data confirming the competitive position of each of the players. Equally, we report Americas together. I can tell you, if we look at our North America growth broken out, it is significantly above cycle growth in the region. It's always very difficult to say because in the IVF market, unfortunately, unlike other areas of healthcare like orthopedics or cardiology, you don't have independently published data confirming the competitive position of each of the players. it's always very difficult to say because in the ivf market unfortunately unlike other areas of healthcare like orthopedics or cardiology you don't have independently published data confirming the competitive position of each of the players Equally, we report Americas together. equally we report americas together I can tell you, if we look at our North America growth broken out, it is significantly above cycle growth in the region. i can tell you if we look at our north america growth broken out it is significantly above cycle growth in the region There's a lot of distraction factor going on in the market, Ulrik. The largest competitor has its own challenges with the strategic review and I guess, yeah, that sort of plays to our advantage. You have players three, four, and five consolidating into a new company. What I say to the team, Ulrik, is don't get distracted. Keep our heads down. We have a fantastic end-to-end high-quality portfolio. There's a lot of distraction factor going on in the market, Ulrik. there's a lot of distraction factor going on in the market ulrik The largest competitor has its own challenges with the strategic review and I guess, yeah, that sort of plays to our advantage. the largest competitor has its own challenges with the strategic review and i guess yeah that sort of plays to our advantage You have players three, four, and five consolidating into a new company. you have players three four and five consolidating into a new company What I say to the team, Ulrik, is don't get distracted. what i say to the team ulrik is don't get distracted Keep our heads down. keep our heads down We have a fantastic end-to-end high-quality portfolio. we have a fantastic end-to-end high-quality portfolio We've invested in the region in a really, really strong team. Just don't get distracted, keep your eyes on the prize and drive share gains. I think the other thing that's really helped us is we are targeting the large clinic chains, and they are demanding high quality, but they're also increasingly looking for automation. The combination of EmbryoScope and the efficiency that that brings, you can see EmbryoScope, we're up 107%. It's not insignificant. We've invested in the region in a really, really strong team. we've invested in the region in a really really strong team Just don't get distracted, keep your eyes on the prize and drive share gains. just don't get distracted keep your eyes on the prize and drive share gains I think the other thing that's really helped us is we are targeting the large clinic chains, and they are demanding high quality, but they're also increasingly looking for automation. i think the other thing that's really helped us is we are targeting the large clinic chains and they are demanding high quality but they're also increasingly looking for automation The combination of EmbryoScope and the efficiency that that brings, you can see EmbryoScope, we're up 107%. the combination of embryoscope and the efficiency that that brings you can see embryoscope we're up 107% It's not insignificant. it's not insignificant The combination of EmbryoScope, then the high-quality consumables portfolio, and then we're one of the market leaders when it comes to genetic services. We're really leveraging the full portfolio. This is a guesstimate, but I think it's broad share gain from multiple players. The distraction factor, of course, helps. I've answered the manufacturing footprint, I've answered the share, and hopefully, I've answered that it is well above the market growth rates without divulging the exact percentage. It's healthy across the board, Ulrik. The combination of EmbryoScope, then the high-quality consumables portfolio, and then we're one of the market leaders when it comes to genetic services. the combination of embryoscope then the high-quality consumables portfolio and then we're one of the market leaders when it comes to genetic services We're really leveraging the full portfolio. we're really leveraging the full portfolio This is a guesstimate, but I think it's broad share gain from multiple players. this is a guesstimate but i think it's broad share gain from multiple players The distraction factor, of course, helps. the distraction factor of course helps I've answered the manufacturing footprint, I've answered the share, and hopefully, I've answered that it is well above the market growth rates without divulging the exact percentage. i've answered the manufacturing footprint i've answered the share and hopefully i've answered that it is well above the market growth rates without divulging the exact percentage It's healthy across the board, Ulrik. it's healthy across the board ulrik

Speaker 9: No, no, that's pretty gone. No, no, that's pretty gone. no no that's pretty gone

Speaker 1: We obviously don't give you the breakdown. You see it by Genetics, by Consumables, and by Technologies. What I can tell you is it is across the entire portfolio. It's everywhere, which is really nice and a healthy thing to see. We obviously don't give you the breakdown. we obviously don't give you the breakdown You see it by Genetics, by Consumables, and by Technologies. you see it by genetics by consumables and by technologies What I can tell you is it is across the entire portfolio. what i can tell you is it is across the entire portfolio It's everywhere, which is really nice and a healthy thing to see. it's everywhere which is really nice and a healthy thing to see

Speaker 9: Okay, great. Thank you very much, Bronwyn. Just a quick follow-up. As you mentioned, more consolidation and higher sort of tender activity. Is that something that is purely favoring you, or are you seeing price pressure as well on the back of that? Okay, great. okay great Thank you very much, Bronwyn. thank you very much bronwyn Just a quick follow-up. just a quick follow-up As you mentioned, more consolidation and higher sort of tender activity. as you mentioned more consolidation and higher sort of tender activity Is that something that is purely favoring you, or are you seeing price pressure as well on the back of that? is that something that is purely favoring you or are you seeing price pressure as well on the back of that

Speaker 1: Yeah. Right now it's favoring us because the large clinic chains tend to want to deal with one supplier with a potential backup. They don't want to have to deal and contract with multiple players. I would say maybe slight bit more price pressure on the genetic side, not so much across the rest of the portfolio. Again, I guess the thing, of course, with genetic services is people tend to want to go with very high-trust players, and that doesn't necessarily mean that they're as cost sensitive as one would expect. I would say we're not experiencing high-cost pressure in the market, and typically the larger tenders are something that favors the larger players, us being one of them. Yeah, I would say right now it's a tailwind, not a headwind. Yeah. yeah Right now it's favoring us because the large clinic chains tend to want to deal with one supplier with a potential backup. right now it's favoring us because the large clinic chains tend to want to deal with one supplier with a potential backup They don't want to have to deal and contract with multiple players. they don't want to have to deal and contract with multiple players I would say maybe slight bit more price pressure on the genetic side, not so much across the rest of the portfolio. i would say maybe slight bit more price pressure on the genetic side not so much across the rest of the portfolio Again, I guess the thing, of course, with genetic services is people tend to want to go with very high-trust players, and that doesn't necessarily mean that they're as cost sensitive as one would expect. again i guess the thing of course with genetic services is people tend to want to go with very high-trust players and that doesn't necessarily mean that they're as cost sensitive as one would expect I would say we're not experiencing high-cost pressure in the market, and typically the larger tenders are something that favors the larger players, us being one of them. i would say we're not experiencing high-cost pressure in the market and typically the larger tenders are something that favors the larger players us being one of them Yeah, I would say right now it's a tailwind, not a headwind. yeah i would say right now it's a tailwind not a headwind

Speaker 9: Great. Thank you very much, Bronwyn. I'll get back into the queue. Great. great Thank you very much, Bronwyn. thank you very much bronwyn I'll get back into the queue. i'll get back into the queue

Speaker 1: Thank you, Ulrik. Thank you, Ulrik. thank you ulrik

Speaker 6: The next question comes from Jakob Lembke from SEB. Please go ahead. The next question comes from Jakob Lembke from SEB. the next question comes from jakob lembke from seb Please go ahead. please go ahead

Speaker 4: Yeah. Hi. A question on APAC. Quite positive development here in the quarter, and you sound a bit more positive on the market growth, I would say, but you also highlight that Q1 last year was exceptionally weak. I guess my question then is, when you look forward, do you see APAC sort of getting back to the, yeah, maybe better low to mid-single digit growth again? Yeah, looking forward. Yeah. yeah Hi. hi A question on APAC. a question on apac Quite positive development here in the quarter, and you sound a bit more positive on the market growth, I would say, but you also highlight that Q1 last year was exceptionally weak. quite positive development here in the quarter and you sound a bit more positive on the market growth i would say but you also highlight that q1 last year was exceptionally weak I guess my question then is, when you look forward, do you see APAC sort of getting back to the, yeah, maybe better low to mid-single digit growth again? i guess my question then is when you look forward do you see apac sort of getting back to the yeah maybe better low to mid-single digit growth again Yeah, looking forward. yeah looking forward

Speaker 1: Yeah, it's a really good question, Jakob. It's quite a mixed bag in APAC. Happy to see the growth, but yeah, as you correctly say, Q1 was very low. I think there are some green shoots, but I wouldn't be getting too excited. It's very much regionally based. What we are seeing, and I got this question this morning from Dagens Industri is, governments across the world, and we see it here in Sweden, are really starting to improve the support for people, not just the IVF costs, but also the cost of raising a child. I think over the longer horizon, we would have to believe that these measures will start to kick in. I think I would be cautiously optimistic, Jakob, on APAC. It's been turbulent for quite a while. Yeah, it's a really good question, Jakob. yeah it's a really good question jakob It's quite a mixed bag in APAC. it's quite a mixed bag in apac Happy to see the growth, but yeah, as you correctly say, Q1 was very low. happy to see the growth but yeah as you correctly say q1 was very low I think there are some green shoots, but I wouldn't be getting too excited. i think there are some green shoots but i wouldn't be getting too excited It's very much regionally based. it's very much regionally based What we are seeing, and I got this question this morning from Dagens Industri is, governments across the world, and we see it here in Sweden, are really starting to improve the support for people, not just the IVF costs, but also the cost of raising a child. what we are seeing and i got this question this morning from dagens industri is governments across the world and we see it here in sweden are really starting to improve the support for people not just the ivf costs but also the cost of raising a child I think over the longer horizon, we would have to believe that these measures will start to kick in. i think over the longer horizon we would have to believe that these measures will start to kick in I think I would be cautiously optimistic, Jakob, on APAC. i think i would be cautiously optimistic jakob on apac It's been turbulent for quite a while. it's been turbulent for quite a while Yes, it's a good quarter, and we managed to do particularly well, but I would like to see some sustained quarters of recovery before I could conclusively say that it's returning to the type of numbers that you mentioned. In summary- Yes, it's a good quarter, and we managed to do particularly well, but I would like to see some sustained quarters of recovery before I could conclusively say that it's returning to the type of numbers that you mentioned. yes it's a good quarter and we managed to do particularly well but i would like to see some sustained quarters of recovery before i could conclusively say that it's returning to the type of numbers that you mentioned In summary- in summary-

Speaker 4: Okay. That's very helpful. Okay. okay That's very helpful. that's very helpful

Speaker 1: ...it's very difficult. Yeah. ...it's very difficult. ...it's very difficult Yeah. yeah

Speaker 4: Okay, great. Just a follow-up then, regarding the gross margin, which I believe is strong here in the quarter compared to recent quarter. As you said, Pär, I know it's very mix sensitive, but I guess if we say that the mix on reagents and products, they're the same, should we expect the same gross margin ahead of time? Okay, great. okay great Just a follow-up then, regarding the gross margin, which I believe is strong here in the quarter compared to recent quarter. just a follow-up then regarding the gross margin which i believe is strong here in the quarter compared to recent quarter As you said, Pär, I know it's very mix sensitive, but I guess if we say that the mix on reagents and products, they're the same, should we expect the same gross margin ahead of time? as you said pär i know it's very mix sensitive but i guess if we say that the mix on reagents and products they're the same should we expect the same gross margin ahead of time

Speaker 7: Yeah. As I said, it's a product and market mix where Consumables, which is a high gross margin product group, is growing well, and Technologies as well, and less growth in Genetics, which is the lower gross margin product group. Yeah. I think this mix we have right now, it's not a one time off mix. I think we can expect similar mix going forward. Maybe not to that extreme, but leaning towards this mix that we saw now. I think we would like to communicate, it is not a coincidence. We are aiming towards growing in the more profitable areas, in the more profitable countries. We are also, as communicated in December, leaving some product lines that are not so profitable and leaving some low margin small countries. Yeah. yeah As I said, it's a product and market mix where Consumables, which is a high gross margin product group, is growing well, and Technologies as well, and less growth in Genetics, which is the lower gross margin product group. as i said it's a product and market mix where consumables which is a high gross margin product group is growing well and technologies as well and less growth in genetics which is the lower gross margin product group Yeah. yeah I think this mix we have right now, it's not a one time off mix. i think this mix we have right now it's not a one time off mix I think we can expect similar mix going forward. i think we can expect similar mix going forward Maybe not to that extreme, but leaning towards this mix that we saw now. maybe not to that extreme but leaning towards this mix that we saw now I think we would like to communicate, it is not a coincidence. i think we would like to communicate it is not a coincidence We are aiming towards growing in the more profitable areas, in the more profitable countries. we are aiming towards growing in the more profitable areas in the more profitable countries We are also, as communicated in December, leaving some product lines that are not so profitable and leaving some low margin small countries. we are also as communicated in december leaving some product lines that are not so profitable and leaving some low margin small countries

Speaker 1: Yeah Yeah yeah

Speaker 7: These are of course helping us. We haven't seen the full effect of this. It started to kick in a little bit in the end of quarter one, but more will come. The full effect we will see in Q2 and onwards. That will help us even further on the gross margin a little bit. These are of course helping us. these are of course helping us We haven't seen the full effect of this. we haven't seen the full effect of this It started to kick in a little bit in the end of quarter one, but more will come. it started to kick in a little bit in the end of quarter one but more will come The full effect we will see in Q2 and onwards. the full effect we will see in q2 and onwards That will help us even further on the gross margin a little bit. that will help us even further on the gross margin a little bit

Speaker 4: Okay. That's clear. I'll get back to the queue. Thanks. Okay. okay That's clear. that's clear I'll get back to the queue. i'll get back to the queue Thanks. thanks

Speaker 6: The next question comes from Ludvig Lundgren from Nordea. Please go ahead. The next question comes from Ludvig Lundgren from Nordea. the next question comes from ludvig lundgren from nordea Please go ahead. please go ahead

Speaker 5: Yes. Hi, and thanks for taking my questions. I wanted to start out on your current view of the IVF market. You sounded quite optimistic regarding cycle growth coming back to mid-single digits for 2026 in the Q4 report. Has your market view changed in any way since then? Yes. yes Hi, and thanks for taking my questions. hi and thanks for taking my questions I wanted to start out on your current view of the IVF market. i wanted to start out on your current view of the ivf market You sounded quite optimistic regarding cycle growth coming back to mid-single digits for 2026 in the Q4 report. you sounded quite optimistic regarding cycle growth coming back to mid-single digits for 2026 in the q4 report Has your market view changed in any way since then? has your market view changed in any way since then

Speaker 1: Yeah. It's exactly as I said at the start. There are regional differences for sure, but Europe is stable, which is good. That's our largest region. U.S. and North America, as we know, was very rocky last year for all of the reasons that we know. It did start slow, but it's improving, which is good. Middle East is a disappointment, but what can we do? You can only control the controllables. APAC, to the point we've just discussed there with Jakob's question. APAC is a mixed bag, but key markets there make a very big difference. I think, very hard to say if only, but if everything had been normal in the Middle East, I think, yeah, we would've been back in that sort of range, but of course, it isn't. We're all hoping for peace, and the sooner that happens, the better. Yeah. yeah It's exactly as I said at the start. it's exactly as i said at the start There are regional differences for sure, but Europe is stable, which is good. there are regional differences for sure but europe is stable which is good That's our largest region. that's our largest region U.S. and North America, as we know, was very rocky last year for all of the reasons that we know. u.s and north america as we know was very rocky last year for all of the reasons that we know It did start slow, but it's improving, which is good. it did start slow but it's improving which is good Middle East is a disappointment, but what can we do? middle east is a disappointment but what can we do You can only control the controllables. you can only control the controllables APAC, to the point we've just discussed there with Jakob's question. apac to the point we've just discussed there with jakob's question APAC is a mixed bag, but key markets there make a very big difference. apac is a mixed bag but key markets there make a very big difference I think, very hard to say if only, but if everything had been normal in the Middle East, I think, yeah, we would've been back in that sort of range, but o f course, it isn't. i think very hard to say if only but if everything had been normal in the middle east i think yeah we would've been back in that sort of range, but o f course it isn't We're all hoping for peace, and the sooner that happens, the better. we're all hoping for peace and the sooner that happens the better Certainly, things are a lot more stable than they were last year, and that's good. Yeah, it's been very difficult to predict. We are starting to see, I think the words that they use on the other side of the pond is normalcy. We're starting to see more normal cycle levels, which is good. With the Middle East piece, I don't believe we're back up to mid-single digits. We're not there yet with that situation, but healthier signs in most of the regions, which is good. Certainly, things are a lot more stable than they were last year, and that's good. certainly things are a lot more stable than they were last year and that's good Yeah, it's been very difficult to predict. yeah it's been very difficult to predict We are starting to see, I think the words that they use on the other side of the pond is normalcy. we are starting to see i think the words that they use on the other side of the pond is normalcy We're starting to see more normal cycle levels, which is good. we're starting to see more normal cycle levels which is good With the Middle East piece, I don't believe we're back up to mid-single digits. with the middle east piece i don't believe we're back up to mid-single digits We're not there yet with that situation, but healthier signs in most of the regions, which is good. we're not there yet with that situation but healthier signs in most of the regions which is good

Speaker 5: Okay, thanks. Very clear. Then a bit of a follow-up on the gross margin side. You mentioned mix affecting mainly APAC and Americas, but in EMEA, it seems that the mix was somewhat similar to Q1 last year. What explains this, I think 2% gross margin increase year-over-year in EMEA isolated? Okay, thanks. okay thanks Very clear. very clear Then a bit of a follow-up on the gross margin side. then a bit of a follow-up on the gross margin side You mentioned mix affecting mainly APAC and Americas, but in EMEA, it seems that the mix was somewhat similar to Q1 last year. you mentioned mix affecting mainly apac and americas but in emea it seems that the mix was somewhat similar to q1 last year What explains this, I think 2% gross margin increase year-over-year in EMEA isolated? what explains this i think 2% gross margin increase year-over-year in emea isolated

Speaker 1: Yeah, I can have a go at that, Pär. Technologies and Consumables did very well in Europe in this quarter. Unfortunately, that performance was offset by the situation in the Middle East, but the higher margin parts of the portfolio are performing well in Europe. As Pär mentioned, Genetics is lower margin, so the growth being down positively affects the mix. I don't know, Pär, if you have a better way of explaining it. Yeah, I can have a go at that, Pär. yeah i can have a go at that pär Technologies and Consumables did very well in Europe in this quarter. technologies and consumables did very well in europe in this quarter Unfortunately, that performance was offset by the situation in the Middle East, but the higher margin parts of the portfolio are performing well in Europe. unfortunately that performance was offset by the situation in the middle east but the higher margin parts of the portfolio are performing well in europe As Pär mentioned, Genetics is lower margin, so the growth being down positively affects the mix. as pär mentioned genetics is lower margin so the growth being down positively affects the mix I don't know, Pär , if you have a better way of explaining it. i don't know pär if you have a better way of explaining it

Speaker 7: No, that's it. No, that's it. no that's it

Speaker 5: Okay, great. Thanks. I'll jump back into the queue. Okay, great. okay great Thanks. thanks I'll jump back into the queue. i'll jump back into the queue

Speaker 1: Thank you. Thank you. thank you

Speaker 6: The next question comes from Sten Gustafsson from ABG Sundal Collier. Please go ahead. The next question comes from Sten Gustafsson from ABG Sundal Collier. the next question comes from sten gustafsson from abg sundal collier Please go ahead. please go ahead

Speaker 8: Yes, good morning. Thank you. I want to ask you about the supply issues you mentioned for one of your competitor. If you could perhaps talk about what kind of products is related here, and also how much of the 9% growth you had in the quarter is sort of related to that, if that would be possible to break out. Yes, good morning. yes good morning Thank you. thank you I want to ask you about the supply issues you mentioned for one of your competitor. i want to ask you about the supply issues you mentioned for one of your competitor If you could perhaps talk about what kind of products is related here, and also how much of the 9% growth you had in the quarter is sort of related to that, if that would be possible to break out. if you could perhaps talk about what kind of products is related here and also how much of the 9% growth you had in the quarter is sort of related to that if that would be possible to break out

Speaker 1: Yeah. Sten thank you for the question. This particular competitor has had supply issues, but also recalls and legal challenges. This has been ongoing for quite a while. You have a little bit of a compounding impact here, Sten, in terms of, as I've stated in previous earnings call, we have captured media share. We've been capturing it for a while. Yeah. yeah Sten thank you for the question. sten thank you for the question This particular competitor has had supply issues, but also recalls and legal challenges. this particular competitor has had supply issues but also recalls and legal challenges This has been ongoing for quite a while. this has been ongoing for quite a while You have a little bit of a compounding impact here, Sten, in terms of, as I've stated in previous earnings call, we have captured media share. you have a little bit of a compounding impact here sten in terms of as i've stated in previous earnings call we have captured media share We've been capturing it for a while. we've been capturing it for a while With that full portfolio play and us becoming much more targeted in terms of the markets where we're playing in, where the ability to leverage the full portfolio and pull through across the rest is leading to share gains in other areas outside of media. Our consumable growth is well above market growth. The exact split is very difficult to quantify, unfortunately. I'm not being evasive, I just don't have objective data to be able to commit to a number on that. Consumables in North America grew 16% in the quarter. That is significantly above the cycle growth in North America this quarter. It has been compounding, Sten. It's- With that full portfolio play and us becoming much more targeted in terms of the markets where we're playing in, where the ability to leverage the full portfolio and pull through across the rest is leading to share gains in other areas outside of media. with that full portfolio play and us becoming much more targeted in terms of the markets where we're playing in where the ability to leverage the full portfolio and pull through across the rest is leading to share gains in other areas outside of media Our consumable growth is well above market growth. our consumable growth is well above market growth The exact split is very difficult to quantify, unfortunately. the exact split is very difficult to quantify unfortunately I'm not being evasive, I just don't have objective data to be able to commit to a number on that. i'm not being evasive i just don't have objective data to be able to commit to a number on that Consumables in North America grew 16% in the quarter. consumables in north america grew 16% in the quarter That is significantly above the cycle growth in North America this quarter. that is significantly above the cycle growth in north america this quarter It has been compounding, Sten. it has been compounding sten It's- it's-

Speaker 8: Okay. Okay. okay

Speaker 1: ...supply issues, it's recalls, it's distraction. Yeah, it's multiple factors. Yeah. ...supply issues, it's recalls, it's distraction. ...supply issues it's recalls it's distraction Yeah, it's multiple factors. yeah it's multiple factors Yeah. yeah

Speaker 8: All right. Yeah, thank you very much. If I may follow up on the gross margin, just so I understand correctly. There are no sort of incremental improvements on your actual products. It's all related to the mix, which we should assume to sort of continue with your ambition to grow in more profitable areas, both from a geographical and product mix. All right. all right Yeah, thank you very much. yeah thank you very much If I may follow up on the gross margin, just so I understand correctly. if i may follow up on the gross margin just so i understand correctly There are no sort of incremental improvements on your actual products. there are no sort of incremental improvements on your actual products It's all related to the mix, which we should assume to sort of continue with your ambition to grow in more profitable areas, both from a geographical and product mix. it's all related to the mix which we should assume to sort of continue with your ambition to grow in more profitable areas both from a geographical and product mix

Speaker 7: Yeah. During last year, we did increase prices in our regions, which of course, have an impact still compared to last year then. That is, of course, contributing. There is no specific action on a specific product group this quarter. It's more the mix, the focus on the regions, the profitable regions, and the profitable product lines that explains the improvement in the gross margin. There is, of course, a price effect there as well, coming from last year price increases. For example, we increased prices by 6% in the U.S. last year, in the mid-year last year. I think that is still have an impact when you compare to last year. Yeah. yeah During last year, we did increase prices in our regions, which of course, have an impact still compared to last year then. during last year we did increase prices in our regions which of course have an impact still compared to last year then That is, of course, contributing. that is of course contributing There is no specific action on a specific product group this quarter. there is no specific action on a specific product group this quarter It's more the mix, the focus on the regions, the profitable regions, and the profitable product lines that explains the improvement in the gross margin. it's more the mix the focus on the regions the profitable regions and the profitable product lines that explains the improvement in the gross margin There is, of course, a price effect there as well, coming from last year price increases. there is of course a price effect there as well coming from last year price increases For example, we increased prices by 6% in the U.S. last year, in the mid-year last year. for example we increased prices by 6% in the u.s last year in the mid-year last year I think that is still have an impact when you compare to last year. i think that is still have an impact when you compare to last year

Speaker 1: We have to carry the cost of tariffs as well, Sten. Don't forget that. We have the tariff piece. We have to carry the cost of tariffs as well, Sten. we have to carry the cost of tariffs as well sten Don't forget that. don't forget that We have the tariff piece. we have the tariff piece

Speaker 7: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: Sometimes I think people forget med tech, we have tariffs, pharma doesn't. We had to pass those prices on to customers. We did, and we did it quickly, and it helped to insulate us from the tariff effect. I wouldn't say- Sometimes I think people forget med tech, we have tariffs, pharma doesn't. sometimes i think people forget med tech we have tariffs pharma doesn't We had to pass those prices on to customers. we had to pass those prices on to customers We did, and we did it quickly, and it helped to insulate us from the tariff effect. we did and we did it quickly and it helped to insulate us from the tariff effect I wouldn't say- i wouldn't say-

Speaker 8: Yeah, that's. Yeah, that's. yeah that's

Speaker 1: ...it's not by accident. ...it's not by accident. ...it's not by accident

Speaker 8: No, no. No, no. no no

Speaker 1: We took measures, and we executed on them quickly to protect ourselves from that. We took measures, and we executed on them quickly to protect ourselves from that. we took measures and we executed on them quickly to protect ourselves from that

Speaker 8: No, that's very helpful and impressive to see how the gross margin improved here. Thanks for- No, that's very helpful and impressive to see how the gross margin improved here. no that's very helpful and impressive to see how the gross margin improved here Thanks for- thanks for-

Speaker 1: Mm-hmm Mm-hmm mm-hmm

Speaker 8: ...the color on those questions. Thank you. ...the color on those questions. ...the color on those questions Thank you. thank you

Speaker 1: Thank you, Sten. Thank you, Sten. thank you sten

Speaker 6: The next question comes from Filip Einarsson from Redeye. Please go ahead. The next question comes from Filip Einarsson from Redeye. the next question comes from filip einarsson from redeye Please go ahead. please go ahead

Speaker 2: Okay. Hello everybody. My question is sort of the topic of innovation, which you mention in the report, that you're planning to release new products to bring to market. Maybe you could elaborate a little bit on what sort of products this is and also how impactful you expect them to be over, let's say, the coming year or two on the P&L. Okay. okay Hello everybody. hello everybody My question is sort of the topic of innovation, which you mention in the report, that you're planning to release new products to bring to market. my question is sort of the topic of innovation which you mention in the report that you're planning to release new products to bring to market Maybe you could elaborate a little bit on what sort of products this is and also how impactful you expect them to be over, let's say, the coming year or two on the P&L. maybe you could elaborate a little bit on what sort of products this is and also how impactful you expect them to be over let's say the coming year or two on the p&l

Speaker 1: Yeah. I would love to tell you that, but I'm not going to tell our competitors who are listening in. What I will tell you is that we have launches coming in all parts of the portfolio. We have launches coming in consumables, we have launches coming in technologies, and we also have launches coming on the genetic services side. Yeah. yeah I would love to tell you that, but I'm not going to tell our competitors who are listening in. i would love to tell you that but i'm not going to tell our competitors who are listening in What I will tell you is that we have launches coming in all parts of the portfolio. what i will tell you is that we have launches coming in all parts of the portfolio We have launches coming in consumables, we have launches coming in technologies, and we also have launches coming on the genetic services side. we have launches coming in consumables we have launches coming in technologies and we also have launches coming on the genetic services side Vitrolife has a wonderful history of doing M&A, but I think in-house innovation has been an area for improvement, and we really took a strategic decision to double down here a couple of years ago and not throw paint at a wall and try to innovate everything, but to pick the key areas that will move the needle and be impactful for clinics and for patients. I think what's going to come this year is the results of that R&D prioritization. I don't know if you're planning to go to ESHRE. If you are, hopefully you should see some exciting new things there from the Vitrolife Group. It's coming. Vitrolife has a wonderful history of doing M&A, but I think in-house innovation has been an area for improvement, and we really took a strategic decision to double down here a couple of years ago and not throw paint at a wall and try to innovate everything, but to pick the key areas that will move the needle and be impactful for clinics and for patients. vitrolife has a wonderful history of doing m&a but i think in-house innovation has been an area for improvement and we really took a strategic decision to double down here a couple of years ago and not throw paint at a wall and try to innovate everything but to pick the key areas that will move the needle and be impactful for clinics and for patients I think what's going to come this year is the results of that R&D prioritization. i think what's going to come this year is the results of that r&d prioritization I don't know if you're planning to go to ESHRE. i don't know if you're planning to go to eshre If you are, hopefully you should see some exciting new things there from the Vitrolife Group. if you are hopefully you should see some exciting new things there from the vitrolife group It's coming. it's coming

Speaker 2: Great. Great. great

Speaker 1: Then in terms of impact, yeah, a couple of the launches, one of the launches in particular towards the back end of this year could be quite meaningful. Equally, I would say there will be a launch probably coming out back end of this year or early next year, which we also expect to be very meaningful. I would say two meaningful, impactful ones coming, and others more, I guess, what I would call iterative innovation. Yeah. Then in terms of impact, yeah, a couple of the launches, one of the launches in particular towards the back end of this year could be quite meaningful. then in terms of impact yeah a couple of the launches one of the launches in particular towards the back end of this year could be quite meaningful Equally, I would say there will be a launch probably coming out back end of this year or early next year, which we also expect to be very meaningful. equally i would say there will be a launch probably coming out back end of this year or early next year which we also expect to be very meaningful I would say two meaningful, impactful ones coming, and others more, I guess, what I would call iterative innovation. i would say two meaningful impactful ones coming and others more i guess what i would call iterative innovation Yeah. yeah

Speaker 2: Okay. That's helpful. With all respect, of course, if you don't want to disclose too much, but maybe you could help us understand if it's more of, let's say, a new product share resource or is it more add-ons to existing products and services? Okay. okay That's helpful. that's helpful With all respect, of course, if you don't want to disclose too much, but maybe you could help us understand if it's more of, let's say, a new product share resource or is it more add-ons to existing products and services? with all respect of course if you don't want to disclose too much but maybe you could help us understand if it's more of let's say a new product share resource or is it more add-ons to existing products and services

Speaker 1: Yeah. It's both. It's some new products. It's other areas where we haven't had an offering before. Others are improvements on what we already have. We also have some breakthroughs coming where we would be first to market with a particular technology. A sliding scale of exciting things to come, Filip. Yeah. yeah It's both. it's both It's some new products. it's some new products It's other areas where we haven't had an offering before. it's other areas where we haven't had an offering before Others are improvements on what we already have. others are improvements on what we already have We also have some breakthroughs coming where we would be first to market with a particular technology. we also have some breakthroughs coming where we would be first to market with a particular technology A sliding scale of exciting things to come, Filip. a sliding scale of exciting things to come filip

Speaker 2: Okay, great. Thank you. Okay, great. okay great Thank you. thank you

Speaker 1: Thank you. Thank you. thank you

Speaker 2: I'll get back in the queue. I'll get back in the queue. i'll get back in the queue

Speaker 1: Yeah. Yeah. yeah

Speaker 6: The next question comes from Filip Wiberg from Pareto Securities. Please go ahead. The next question comes from Filip Wiberg from Pareto Securities. the next question comes from filip wiberg from pareto securities Please go ahead. please go ahead

Speaker 3: Hi, good morning. I had a question on the Technologies, which was quite strong in Americas. Q1 is normally on the weaker side seasonally. I'm just trying to get a better sense of the drivers here. First, if there were any orders pushed from Q1 to Q1, for instance, and also what kind of visibility you have going forward now in that area? Hi, good morning. hi good morning I had a question on the Technologies, which was quite strong in Americas. i had a question on the technologies which was quite strong in americas Q1 is normally on the weaker side seasonally. q1 is normally on the weaker side seasonally I'm just trying to get a better sense of the drivers here. i'm just trying to get a better sense of the drivers here First, if there were any orders pushed from Q1 to Q1, for instance, and also what kind of visibility you have going forward now in that area? first if there were any orders pushed from q1 to q1 for instance and also what kind of visibility you have going forward now in that area

Speaker 1: Very high visibility. We are tracking the funnel on a weekly basis. We're intensely tracking the funnel for EmbryoScopes, for the consumable revenue of EmbryoScopes, for the services revenue, and for the pull-through. We have built a commercial excellence engine with best-in-class industry talent. I can tell you we are very closely monitoring this. It's not spillover orders that didn't come in in Q4 and came in in Q1. Very high visibility. very high visibility We are tracking the funnel on a weekly basis. we are tracking the funnel on a weekly basis We're intensely tracking the funnel for EmbryoScopes, for the consumable revenue of EmbryoScopes, for the services revenue, and for the pull-through. we're intensely tracking the funnel for embryoscopes for the consumable revenue of embryoscopes for the services revenue and for the pull-through We have built a commercial excellence engine with best-in-class industry talent. we have built a commercial excellence engine with best-in-class industry talent I can tell you we are very closely monitoring this. i can tell you we are very closely monitoring this It's not spillover orders that didn't come in in Q4 and came in in Q1. it's not spillover orders that didn't come in in q4 and came in in q1 Really what this comes down to is breakthrough in acceptance of EmbryoScope in the clinic chains. That's what it is. That's been more difficult for us. I think historically, Vitrolife Group has been better at selling EmbryoScopes to mom-and-pop smaller clinics. Now, with the chains needing to drive efficiency and reduce costs, they really see and appreciate the advantages that EmbryoScope can bring. Really what this comes down to is breakthrough in acceptance of EmbryoScope in the clinic chains. really what this comes down to is breakthrough in acceptance of embryoscope in the clinic chains That's what it is. that's what it is That's been more difficult for us. that's been more difficult for us I think historically, Vitrolife Group has been better at selling EmbryoScopes to mom-and-pop smaller clinics. i think historically vitrolife group has been better at selling embryoscopes to mom-and-pop smaller clinics Now, with the chains needing to drive efficiency and reduce costs, they really see and appreciate the advantages that EmbryoScope can bring. now with the chains needing to drive efficiency and reduce costs they really see and appreciate the advantages that embryoscope can bring While it takes a lot longer to negotiate the purchase of larger numbers of EmbryoScopes, it does, the time from lead to close is a lot longer, but when the deals come over the line, they're larger. That's, yeah, in the case of Q1, that was a big needle mover. We have very high visibility, very high visibility on the EmbryoScope funnel and utilization and consumable revenue per EmbryoScope. Yeah. While it takes a lot longer to negotiate the purchase of larger numbers of EmbryoScopes, it does, the time from lead to close is a lot longer, but when the deals come over the line, they're larger. while it takes a lot longer to negotiate the purchase of larger numbers of embryoscopes it does the time from lead to close is a lot longer but when the deals come over the line they're larger That's, yeah, in the case of Q1, that was a big needle mover. that's yeah in the case of q1 that was a big needle mover We have very high visibility, very high visibility on the EmbryoScope funnel and utilization and consumable revenue per EmbryoScope. we have very high visibility very high visibility on the embryoscope funnel and utilization and consumable revenue per embryoscope Yeah. yeah

Speaker 3: Okay, thanks. Very happy with that answer. Second one on the just Middle East situation, and- Okay, thanks. okay thanks Very happy with that answer. very happy with that answer Second one on the just Middle East situation, and- second one on the just middle east situation and-

Speaker 1: Yeah Yeah yeah

Speaker 3: Obviously always very difficult to answer. The cycle impact, is that mostly about people delaying starting treatment, or have you seen any disruptions to your operations as well? Just, I know it's very uncertain, but do you expect any longstanding consequences from this, like we've seen with the insourcing of genetic services or maybe more a return to normal once the situation deescalates? Obviously always very difficult to answer. obviously always very difficult to answer The cycle impact, is that mostly about people delaying starting treatment, or have you seen any disruptions to your operations as well? the cycle impact is that mostly about people delaying starting treatment or have you seen any disruptions to your operations as well Just, I know it's very uncertain, but do you expect any longstanding consequences from this, like we've seen with the insourcing of genetic services or maybe more a return to normal once the situation deescalates? just i know it's very uncertain but do you expect any longstanding consequences from this like we've seen with the insourcing of genetic services or maybe more a return to normal once the situation deescalates

Speaker 1: Yeah. It's mainly, as you rightly point out, Filip, it's mainly people delaying their IVF cycle. Activity is way down in the clinics. It's everywhere, because sometimes people tend to think it's just Iran, Israel. It's across the Gulf. It's across the Gulf States. The impact is pretty far-reaching. I think this is going to take time to return to normal. Because from when a couple, and in the Middle East it's usually a couple, it's not individuals going. From when a couple starts on the IVF journey, it takes a couple of months before they're ready and before we start actually coming into the clinic for retrievals and transfers and all of that. Our expectation is, even if we have peace next week, it's going to take time for the Middle East to recover from this. Yeah. yeah It's mainly, as you rightly point out, Filip, it's mainly people delaying their IVF cycle. it's mainly as you rightly point out filip it's mainly people delaying their ivf cycle Activity is way down in the clinics. activity is way down in the clinics It's everywhere, because sometimes people tend to think it's just Iran, Israel. it's everywhere because sometimes people tend to think it's just iran israel It's across the Gulf. it's across the gulf It's across the Gulf States. it's across the gulf states The impact is pretty far-reaching. the impact is pretty far-reaching I think this is going to take time to return to normal. i think this is going to take time to return to normal Because from when a couple, and in the Middle East it's usually a couple, it's not individuals going. because from when a couple and in the middle east it's usually a couple it's not individuals going From when a couple starts on the IVF journey, it takes a couple of months before they're ready and before we start actually coming into the clinic for retrievals and transfers and all of that. from when a couple starts on the ivf journey it takes a couple of months before they're ready and before we start actually coming into the clinic for retrievals and transfers and all of that Our expectation is, even if we have peace next week, it's going to take time for the Middle East to recover from this. our expectation is even if we have peace next week it's going to take time for the middle east to recover from this In terms of disruption to our operations, yeah, we do have some disruption to our operations. We have a genetic services laboratory in Dubai, so activity is obviously way down. In terms of ability to ship to the region, that's also impacted. We have up to now found ways of getting around that. Yeah, the entire region is impacted. Volumes are down, cycles are down in the clinics. We've been managing the disruption, but we haven't been unaffected. In terms of disruption to our operations, yeah, we do have some disruption to our operations. in terms of disruption to our operations yeah we do have some disruption to our operations We have a genetic services laboratory in Dubai, so activity is obviously way down. we have a genetic services laboratory in dubai so activity is obviously way down In terms of ability to ship to the region, that's also impacted. in terms of ability to ship to the region that's also impacted We have up to now found ways of getting around that. we have up to now found ways of getting around that Yeah, the entire region is impacted. yeah the entire region is impacted Volumes are down, cycles are down in the clinics. volumes are down cycles are down in the clinics We've been managing the disruption, but we haven't been unaffected. we've been managing the disruption but we haven't been unaffected

Speaker 3: Perfect. Thank you very much for that. Perfect. perfect Thank you very much for that. thank you very much for that

Speaker 1: Maybe the other thing, I don't want to sound too negative, of course, but capital sales are way down in the Middle East. Our EMEA region Technologies did very well in Western Europe, but capital sales are way down in Middle East, which I guess isn't surprising given the situation. Yeah, we think it's going to take a while for this to recover. Yeah. Maybe the other thing, I don't want to sound too negative, of course, but capital sales are way down in the Middle East. maybe the other thing i don't want to sound too negative of course but capital sales are way down in the middle east Our EMEA region Technologies did very well in Western Europe, but capital sales are way down in Middle East, which I guess isn't surprising given the situation. our emea region technologies did very well in western europe but capital sales are way down in middle east which i guess isn't surprising given the situation Yeah, we think it's going to take a while for this to recover. yeah we think it's going to take a while for this to recover Yeah. yeah

Speaker 3: Good. I'm happy with that. Good. good I'm happy with that. i'm happy with that

Speaker 1: Okay. Thanks, Filip. Okay. okay Thanks, Filip. thanks filip

Speaker 6: The next question comes from Jakob Lembke from SEB. Please go ahead. The next question comes from Jakob Lembke from SEB. the next question comes from jakob lembke from seb Please go ahead. please go ahead

Speaker 4: Yeah. I have some further follow-ups. I'll start on a question on the U.S. If we look from the market's perspective, I would assume that Q2 last year was the weakest quarter, and I guess also Q3 was a quite weak quarter. With that in mind, should we sort of see potential for even better growth in that region here in the coming quarters? Yeah. yeah I have some further follow-ups. i have some further follow-ups I'll start on a question on the U.S. i'll start on a question on the u.s If we look from the market's perspective, I would assume that Q2 last year was the weakest quarter, and I guess also Q3 was a quite weak quarter. if we look from the market's perspective i would assume that q2 last year was the weakest quarter and i guess also q3 was a quite weak quarter With that in mind, should we sort of see potential for even better growth in that region here in the coming quarters? with that in mind should we sort of see potential for even better growth in that region here in the coming quarters

Speaker 1: Yeah. The start of Q2 wasn't so badly impacted last year, Jakob. The latter half of the quarter was. The quarter where we really saw the most impact was Q3. Can we accelerate faster? I mean, that's always going to be the goal. We have to say Q1 was very strong across the board. The goal is always going to be to maintain that. I don't think we will see a big bump from the comps in Q2. I think where we would expect it would be more around Q3, Jakob. It's a good point that you raise in terms of the phasing and the comps from last year. Yeah. Yeah. yeah The start of Q2 wasn't so badly impacted last year, Jakob. the start of q2 wasn't so badly impacted last year jakob The latter half of the quarter was. the latter half of the quarter was The quarter where we really saw the most impact was Q3. the quarter where we really saw the most impact was q3 Can we accelerate faster? can we accelerate faster I mean, that's always going to be the goal. i mean that's always going to be the goal We have to say Q1 was very strong across the board. we have to say q1 was very strong across the board The goal is always going to be to maintain that. the goal is always going to be to maintain that I don't think we will see a big bump from the comps in Q2. i don't think we will see a big bump from the comps in q2 I think where we would expect it would be more around Q3, Jakob. i think where we would expect it would be more around q3 jakob It's a good point that you raise in terms of the phasing and the comps from last year. it's a good point that you raise in terms of the phasing and the comps from last year Yeah. yeah

Speaker 4: Okay. That's clear. A more general question on consumables. I'm wondering if there was any large orders or something in the quarter that we should not expect maybe in the coming quarters? Okay. okay That's clear. that's clear A more general question on consumables. a more general question on consumables I'm wondering if there was any large orders or something in the quarter that we should not expect maybe in the coming quarters? i'm wondering if there was any large orders or something in the quarter that we should not expect maybe in the coming quarters

Speaker 1: Were there large orders? Yeah, there were some large orders in South America. We're starting to perform well in Consumables in LATAM, in South America. The rest of the regions, it's pretty much steady as she goes. There are no big outliers that I would call out. Yeah. Were there large orders? were there large orders Yeah, there were some large orders in South America. yeah there were some large orders in south america We're starting to perform well in Consumables in LATAM, in South America. we're starting to perform well in consumables in latam in south america The rest of the regions, it's pretty much steady as she goes. the rest of the regions it's pretty much steady as she goes There are no big outliers that I would call out. there are no big outliers that i would call out Yeah. yeah

Speaker 4: Okay. I also have a question on the IT projects you're running. I'm wondering if there would be any sort of, I guess, large investments, sort of, I don't know, that makes individual quarters sort of deviate, or should we expect the current investment level to be sort of a run rate for the coming quarters? Okay. okay I also have a question on the IT projects you're running. i also have a question on the it projects you're running I'm wondering if there would be any sort of, I guess, large investments, sort of, I don't know, that makes individual quarters sort of deviate, or should we expect the current investment level to be sort of a run rate for the coming quarters? i'm wondering if there would be any sort of i guess large investments sort of i don't know that makes individual quarters sort of deviate or should we expect the current investment level to be sort of a run rate for the coming quarters

Speaker 7: Yeah. I think the current level is what you should expect until further notice. There will be, perhaps in the future, a need for bigger investments in IT. But for the time being, there are no such decisions, you can expect the present level going forward. Yeah. yeah I think the current level is what you should expect until further notice. i think the current level is what you should expect until further notice There will be, perhaps in the future, a need for bigger investments in IT. there will be perhaps in the future a need for bigger investments in it But for the time being, there are no such decisions, you can expect the present level going forward. but for the time being there are no such decisions you can expect the present level going forward

Speaker 4: Okay, great. I just do one final, and that is another question on the Middle East. If it's possible to, in any way, quantify the effect it had in the quarter, let's say if it had a 1 percentage point impact to organic growth, for example. Okay, great. okay great I just do one final, and that is another question on the Middle East. i just do one final and that is another question on the middle east If it's possible to, in any way, quantify the effect it had in the quarter, let's say if it had a 1 percentage point impact to organic growth, for example. if it's possible to in any way quantify the effect it had in the quarter let's say if it had a 1 percentage point impact to organic growth for example

Speaker 1: I don't think we can quantify that, can we? I don't think we can quantify that, can we? i don't think we can quantify that can we

Speaker 7: Yeah, we don't communicate that. Yeah, we don't communicate that. yeah we don't communicate that

Speaker 1: Yeah. Yeah. yeah

Speaker 7: We don't disclose that information. We don't disclose that information. we don't disclose that information

Speaker 1: Yeah. That's what I mean, yeah. Yeah. yeah That's what I mean, yeah. that's what i mean yeah

Speaker 7: You saw the EMEA. It's a net effect of the Middle East and Western Europe, and as Bronwyn said, strong growth in Western Europe, offset by the negative growth in the Middle East. We don't disclose the specific impact. You saw the EMEA. you saw the emea It's a net effect of the Middle East and Western Europe, and as Bronwyn said, strong growth in Western Europe, offset by the negative growth in the Middle East. it's a net effect of the middle east and western europe and as bronwyn said strong growth in western europe offset by the negative growth in the middle east We don't disclose the specific impact. we don't disclose the specific impact

Speaker 1: Yeah. Yeah. yeah

Speaker 4: I understand. Thank you very much. That's all from me. I understand. i understand Thank you very much. thank you very much That's all from me . that's all from me

Speaker 1: Yeah. I don't mean to sound evasive, Jakob. We don't disclose that, but I wouldn't underestimate the magnitude of the drop in the Middle East. It's very significant. It's on fumes. Couples are not going forward for IVF in this environment , so t's way down. Down enough that in the Vitrolife Group, it's pulled down the performance of our largest region. We are severely impacted by this. Yeah. yeah I don't mean to sound evasive, Jakob. i don't mean to sound evasive jakob We don't disclose that, but I wouldn't underestimate the magnitude of the drop in the Middle East. we don't disclose that but i wouldn't underestimate the magnitude of the drop in the middle east It's very significant. it's very significant It's on fumes. it's on fumes Couples are not going forward for IVF in this environment , so t's way down. couples are not going forward for ivf in this environment , so t's way down Down enough that in the Vitrolife Group, it's pulled down the performance of our largest region. down enough that in the vitrolife group it's pulled down the performance of our largest region We are severely impacted by this. we are severely impacted by this

Speaker 4: Yeah. Yeah. yeah

Speaker 1: There's no doubt about it. Yeah. That's why we're happy with our 5% organic growth in local currencies, because we've managed to deliver it while navigating the Middle East situation. Thanks, Jakob. There's no doubt about it. there's no doubt about it Yeah. yeah That's why we're happy with our 5% organic growth in local currencies, because we've managed to deliver it while navigating the Middle East situation. that's why we're happy with our 5% organic growth in local currencies because we've managed to deliver it while navigating the middle east situation Thanks, Jakob. thanks jakob

Speaker 6: The next question comes from Ulrik Trattner from DNB Carnegie. Please go ahead. The next question comes from Ulrik Trattner from DNB Carnegie. the next question comes from ulrik trattner from dnb carnegie Please go ahead. please go ahead

Speaker 9: Thank you very much for taking my follow-up question. One question regarding product launches, and I know that you don't want to give up too much information to your competitors, but if we can just phrase it like this. Your Embryo Transfer Catheter gained 510(k) approval mid-year last year. Is that a commercial product now, or is it still in preparation? Thank you very much for taking my follow-up question. thank you very much for taking my follow-up question One question regarding product launches, and I know that you don't want to give up too much information to your competitors, but if we can just phrase it like this. one question regarding product launches and i know that you don't want to give up too much information to your competitors but if we can just phrase it like this Your Embryo Transfer Catheter gained 510(k) approval mid-year last year. your embryo transfer catheter gained 510(k) approval mid-year last year Is that a commercial product now, or is it still in preparation? is that a commercial product now or is it still in preparation

Speaker 1: Yeah. You're smart, Ulrik. I always underestimate you. Yeah, that's going to be one of the ones that's coming, for sure. The ETC, and of course, what's very compelling in our case is we also have EmbryoGlue, right? We have the ETC with the EmbryoGlue, which is a very nice and compelling value proposition for customers. Yeah, that's going to be coming out of the gates. Yeah. yeah You're smart, Ulrik. you're smart ulrik I always underestimate you. i always underestimate you Yeah, that's going to be one of the ones that's coming, for sure. yeah that's going to be one of the ones that's coming for sure The ETC, and of course, what's very compelling in our case is we also have EmbryoGlue, right? the etc and of course what's very compelling in our case is we also have embryoglue right We have the ETC w ith the EmbryoGlue, which is a very nice and compelling value proposition for customers. we have the etc w ith the embryoglue which is a very nice and compelling value proposition for customers Yeah, that's going to be coming out of the gates. yeah that's going to be coming out of the gates

Speaker 9: All right. It's an upcoming product launch. All right. all right It's an upcoming product launch. it's an upcoming product launch

Speaker 1: Mm-hmm. Mm-hmm. mm-hmm

Speaker 9: Great. A second question would potentially be more addressed to you, Pär. It sounds like you're doing a traditional tail cutting, as you're focusing on higher margin products, higher margin markets. To suggest low-hanging fruits, how much of the portfolio are you currently reviewing and assessing beyond what's been announced regarding the genetic strategic review? Great. great A second question would potentially be more addressed to you, Pär. a second question would potentially be more addressed to you pär It sounds like you're doing a traditional tail cutting, as you're focusing on higher margin products, higher margin markets. it sounds like you're doing a traditional tail cutting as you're focusing on higher margin products higher margin markets To suggest low-hanging fruits, how much of the portfolio are you currently reviewing and assessing beyond what's been announced regarding the genetic strategic review? to suggest low-hanging fruits how much of the portfolio are you currently reviewing and assessing beyond what's been announced regarding the genetic strategic review

Speaker 7: Yeah. No. It's an ongoing process. What we communicated in December is the lowest hanging fruit. There are more fruits hanging low, so we will continue to do this, and we are working. It's a combination of focusing on this, but also developing tools and measures, how to measure profitability on customer level or product line level and so on. It's an ongoing process, and yeah. We will do more. Yeah. yeah No. no It's an ongoing process. it's an ongoing process What we communicated in December is the lowest hanging fruit. what we communicated in december is the lowest hanging fruit There are more fruits hanging low, so we will continue to do this, and we are working. there are more fruits hanging low so we will continue to do this and we are working It's a combination of focusing on this, but also developing tools and measures, how to measure profitability on customer level or product line level and so on. it's a combination of focusing on this but also developing tools and measures how to measure profitability on customer level or product line level and so on It's an ongoing process, and yeah. it's an ongoing process and yeah We will do more. we will do more

Speaker 9: Is it possible to, in any way, quantify how much of total top line sales would be assessed, or is it just a review of everything all the time? Is it possible to, in any way, quantify how much of total top line sales would be assessed, or is it just a review of everything all the time? is it possible to in any way quantify how much of total top line sales would be assessed or is it just a review of everything all the time

Speaker 7: Yeah, we don't disclose that information. We assess everything in all product groups, in all regions. Yep. Yeah, we don't disclose that information. yeah we don't disclose that information We assess everything in all product groups, in all regions. we assess everything in all product groups in all regions Yep. yep

Speaker 9: Again, that's great. Thank you, Pär. Last question on my end. We're now approaching the one-year mark of the class action lawsuit being filed on your end. We have seen the dismissal from your competitors here in the last half a year. Can you provide us with any update on the matter? Again, that's great. again that's great Thank you, Pär. thank you pär Last question on my end. last question on my end We're now approaching the one-year mark of the class action lawsuit being filed on your end. we're now approaching the one-year mark of the class action lawsuit being filed on your end We have seen the dismissal from your competitors here in the last half a year. we have seen the dismissal from your competitors here in the last half a year Can you provide us with any update on the matter? can you provide us with any update on the matter

Speaker 1: Yeah. Well, how long is a piece of string is unfortunately how these things go. We see it as a positive sign that there have been other dismissals in this area. Also, the case against Vitrolife was, I'm not quite sure the exact legal language, but it wouldn't have been as strong, as compelling as it was against some of the other competitors, but you never quite know. We're feeling more comfortable around this one in the U.S. Not to go too technical, but we also have certain clauses in our contracts which provide additional safety for us in these types of instances. Let's just put it this way, we don't see any disimprovement or need for increased concern around these cases in the United States. In fact, we see it the opposite way, so. Yeah. yeah Well, how long is a piece of string is unfortunately how these things go. well how long is a piece of string is unfortunately how these things go We see it as a positive sign that there have been other dismissals in this area. we see it as a positive sign that there have been other dismissals in this area Also, the case against Vitrolife was, I'm not quite sure the exact legal language, but it wouldn't have been as strong, as compelling as it was against some of the other competitors, but you never quite know. also the case against vitrolife was i'm not quite sure the exact legal language but it wouldn't have been as strong as compelling as it was against some of the other competitors but you never quite know We're feeling more comfortable around this one in the U.S. we're feeling more comfortable around this one in the u.s Not to go too technical, but we also have certain clauses in our contracts which provide additional safety for us in these types of instances. not to go too technical but we also have certain clauses in our contracts which provide additional safety for us in these types of instances Let's just put it this way, we don't see any disimprovement or need for increased concern around these cases in the United States. let's just put it this way we don't see any disimprovement or need for increased concern around these cases in the united states In fact, we see it the opposite way, so. in fact we see it the opposite way so

Speaker 7: It's a very long process as well, and we haven't received any major updates on that- It's a very long process as well, and we haven't received any major updates on that- it's a very long process as well and we haven't received any major updates on that-

Speaker 1: No No no

Speaker 7: ...in the last couple of months here. It takes time. Yeah. ...in the last couple of months here. ...in the last couple of months here It takes time. it takes time Yeah. yeah

Speaker 9: That's great. Is it possible to, in any way, quantify how much the lawsuits or legal processes have cost in terms of cost beyond your insurances, etc? That's great. that's great Is it possible to, in any way, quantify how much the lawsuits or legal processes have cost in terms of cost beyond your insurances, etc ? is it possible to in any way quantify how much the lawsuits or legal processes have cost in terms of cost beyond your insurances etc

Speaker 7: Yeah. It's not that much. We have not accrued anything when it comes to potential claims, because we don't believe in that will happen. We have accrued, and we have had costs for the legal support, and that is a couple of million SEK, so far. Yeah. yeah It's not that much. it's not that much We have not accrued anything when it comes to potential claims, because we don't believe in that will happen. we have not accrued anything when it comes to potential claims because we don't believe in that will happen We have accrued, and we have had costs for the legal support, and that is a couple of million SEK, so far. we have accrued and we have had costs for the legal support and that is a couple of million sek so far

Speaker 9: Correct. That's great. Thank you for taking my additional questions, and I'll get back into the queue. Correct. correct That's great. that's great Thank you for taking my additional questions, and I'll get back into the queue. thank you for taking my additional questions and i'll get back into the queue

Speaker 1: Thanks, Ulrik. Thanks, Ulrik. thanks ulrik

Speaker 6: The next question comes from Sten Gustafsson from ABG Sundal Collier. Please go ahead. The next question comes from Sten Gustafsson from ABG Sundal Collier. the next question comes from sten gustafsson from abg sundal collier Please go ahead. please go ahead

Speaker 8: Yes, thank you. Very quick follow-up on the Middle East situation. Could you, and I understand you don't want to give us the exact details on how much it has declined, but could you share with us on a normalized level, how much of your sales comes from the Middle East in a normal year or normal quarter? Yes, thank you. yes thank you Very quick follow-up on the Middle East situation. very quick follow-up on the middle east situation Could you, and I understand you don't want to give us the exact details on how much it has declined, but could you share with us on a normalized level, how much of your sales comes from the Middle East in a normal year or normal quarter? could you and i understand you don't want to give us the exact details on how much it has declined but could you share with us on a normalized level how much of your sales comes from the middle east in a normal year or normal quarter

Speaker 1: We don't give the exact percentage, Sten, but I can tell you it's in the single digits. We don't give the exact percentage, Sten, but I can tell you it's in the single digits. we don't give the exact percentage sten but i can tell you it's in the single digits

Speaker 8: Okay. Thank you. Okay. okay Thank you. thank you

Speaker 1: Yeah. Yeah. yeah

Speaker 8: Of global or of EMEA? Of global or of EMEA? of global or of emea

Speaker 1: Global in a normal quarter. Global in a normal quarter. global in a normal quarter

Speaker 8: Yes. Yes. yes

Speaker 1: Yeah. Yeah. yeah

Speaker 8: That makes sense. That makes sense. that makes sense

Speaker 1: Okay. Okay. okay

Speaker 8: Perfect. Thank you. Perfect. perfect Thank you. thank you

Speaker 6: As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. There are no more questions at this time. I hand the conference back to the speakers for any closing comments. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. as a reminder if you wish to ask a question please dial pound key five on your telephone keypad There are no more questions at this time. there are no more questions at this time I hand the conference back to the speakers for any closing comments. i hand the conference back to the speakers for any closing comments

Speaker 1: Thank you very much for joining us. Over and out from sunny Stockholm. Thank you. Thank you very much for joining us. thank you very much for joining us Over and out from sunny Stockholm. over and out from sunny stockholm Thank you. thank you

Speaker 7: Thank you very much. Thank you very much. thank you very much