Good morning, and welcome to Aiforia's earnings announcement from 2025. My name is Jukka Tapaninen, Aiforia's CEO.

Let's move forward. Today's agenda, I will give you the highlights on the second half of the year plus the fiscal year 25 and some highlights on our strategy execution, and at the end of the session, we have a Q&A.

Let's get started. Last year, I've been always saying so that we've been moving forward as planned on this journey we have, and after the IPO when we decided to move to clinical and focus on that side of the business, we've been building and really nice portfolio on the market, and I will cover that a little bit later, so, but now we've started to see a traction on revenue side as well.

We've been focusing on building the portfolio, getting the first flagship customers in, and now the company's kind of moving to a more kind of a scale-up phase. Last year, we did the 68% growth on clinical sector revenue, and for that number, we are very very happy from Aiforia's side.

That growth was actually of course due to the fact that we have that interesting portfolio. We've been increasing some new AI models so that we have more coverage.

At the same time, we've been introducing a lot of reselling partnerships and strategic partnerships, and Siemens Healthineers is a one of those that we expect to be really really important going forward, so, but so we've been moving forward in multiple fronts: increasing the portfolio, getting more traction in the market with the customers, and expanding the network what we have. As we are in a clinical business, then the regulation is really important part.

Currently, we have the biggest portfolio in the market, we cover kind of a big big part of the clinical workflow. We got the IVDR certification last year, and introduce five AI models on that side, and totally currently we have 11 CE-IVD mark solutions in a portfolio on 2025.

Actually one more, because in '26 we got the one additional one, but I come back to that later. At the same time, we've been investing heavily on the latest technologies, meaning that, okay, speeding up our own product development and those activities, but at the same time, all the different kind of functions in a company so that we've been going through and seeing where we can use AI to increase the efficiencies and profitability of the company.

It's a multiple actions going on, so, but I will cover some of those in detail. This is our customer list.

There are some of that I have already been introducing. For example, Mayo Clinic, it's first clinical customer for us and has been there for multiple years, still going strong.

They have a breast cancer suite in a production already since '23. There's a lot of pathologists using the development platform, and we are kind of innovating and developing new tools with Mayo Clinic.

I have to say from the US market, we also got one of the world's leading cancer centers as a customer in Q4, but unfortunately, we are not allowed to tell the name of the customer, so that's why we made that nice release and once we get the approval to kind of release the name, we will do so, but I have to say that, okay, the US market is also kind of moving forward. We did some changes in the organization last year so that it's more aligned with the strategy of the company, we have the new pre-sales, sales, and delivery capabilities in the country, and healthy pipeline going forward.

That's something that US is definitely one of our key markets. Then all of these others, I would say that big progress last year, we did, we got more deals from Italian market.

We got the Lombardia region, which is a really big one, it's a 10.5 million people, 32 hospitals, and we started to deliver in Q4. It's in an early phase of delivery and we already booked some of the revenue out of that deal, so, but that's a really kind of interesting and nice case.

The same as France. The first big clinical customer for us was AP-HP, the Paris hospital region, and that is the biggest one in Europe, it's 38 hospitals in total, and we started to deliver that.

We started to deliver with the prostate solution, and they're really happy and it's in a production in two hospitals now. I just wanted to point out so that even though this is kind of yeah, over 10 10 or 15 customers that we have here, and our ambition is to move to 50 clinical customers that has an opportunity to give us kind of over half a million recurring revenue.

We are on that track. Paris is a good example.

Out of 38, two hospitals with one AI model, and now we have multiple AI models to deliver plus we have a lot of upsell to do in that particular customer. The other thing about France, at this point of time, I would like to point out also that we have been investing in France, we built the full team, we put an legal entity in place, and we have got a lot of traction.

There's also a lot of government support on accelerating the AI in the country, and we are actually the only AI company that was chosen on those programs. Nantes is a interesting example of that, but we have also Institut Curie, it was a big win from a competition, and we expect that France will be in '26 one of those kind of big markets for us alongside with Italy, alongside with the US and the Nordic countries, but maybe one one number, because everybody is always interesting about numbers, so that currently this list gives us bit over 2 million recurring revenue, potential of this list is something like €7 million, €8 million, when we get it in full speed.

Then keeping in mind so that our ambition is to grow, let's say, 50 similar type of organizations, and plus the other business so that this is how we are going to start scaling up the business. On the investment side, yeah, somebody noticed that, okay, we have a certain cost level and certain investment in place.

We actually been reducing our overall kind of investment level a bit, but we keep on really going on and investing on development, because that's the key. We are in the top of the technology, really deep on this, and we've been leading the game with our offerings, and we need to make sure that, okay, we stay there.

A couple of things: so on clinical side, obviously we've been using the latest technologies so that we can do the actually development of AI models quicker. It used to be so that the typical kind of delivery time for AI model was 18 months.

Now we have these vision transformer technologies, foundation engines, all the nice things that we get from latest technology, we think that we can reduce the development time from 18 months to eight months. Significant kind of reduction on that, and it's a quicker to money on things when we decide to kind of build something and when we can actually commercialize it and change it as a revenue to our books.

Customer deployment is another thing as well. Sometimes somebody has been questioning, how long time it will take that we deliver, so, but if we look at the current situation, we've been using the latest technologies on kind of speeding up those processes, and we can actually deliver less than four weeks.

Of course there's a certain kind of prerequisites that has to be in place, the customer needs to have the scanners, they need to have the LIS systems, but if you look at the Aiforia's capabilities on delivering quickly, we can do that. That's not kind of blocking us on scaling up the business at all.

Then of course, as I said in the beginning, we've been focusing on kind of using all of those AI tools for internal productivity things, and not only on the product development, but in all functions. Whether it's a hire-to-retire process or kind of order-to-cash process or any of those core processes, we have invested already a time and we continue to do that so that, okay, how we can actually leverage and do things quicker, better, higher quality, and so on.

The first big kind of steps forward has been in R&D: improving the product quality, improving the kind of connectivity to all the surrounding systems, and generalizability of the product so that, okay, we can easier way to kind of replicate what we have actually built. That's why, €6.6 million on investment on this side.

I mentioned about the IVDR, so that's a big thing, and it's one of those moats on getting to a clinical side of a business, and we are extremely happy so that we actually chose to be in a clinical market: the large volumes, bigger deals, continuing business on those customers, but also that, okay, it a little bit blocks the competition out, because it's a regulatory-approved process. Whatever happens in a world, they need to comply with the regulations so that companies are able to sell in these markets.

As said before, we are leading the pack on this side, we have really nice offering, and I'll come back to that in a second, but last year, we got the IVDR. We got the first IVD regulated products under that regulation, and this year already kind of introduced the gastric.

The whole point is that getting the IVDR, it's a bit of a kind of effort to make that happen, but once it's done, then it's quicker to kind of build new AI models and release it under that regulation. We have done the heavy lifting and now we need to kind of let's say monetize that investment what we've been doing.

I come back to products a bit later. Then so as a results from '25 in brief, we grew 24% and also the growth was actually kind of accelerating in a second half of the year.

Then we are extremely happy that the clinical side of the business was picking up nicely, 68%. €6.6 million investment, and EBIT and EBITDA so both improved.

That was according to our plan. We made some extraordinary investments last year on a strategy session, revising that, we did some kind of extra recruitment costs for the leadership.

All in all, we were on a track with the cost levels, and we were happy so that it was going down. The employee number was staying quite stable, and then we have a nice amount of cash at the end of the year, we have a decent runway in front of us.

Maturity of the business was coming from European key markets, 12% from Finland, North America 20. For '26, I think that this pie will look more or less the same going forward, but the important thing, as I said, it's that we finally see the growth happening nicely on revenue side.

On the left-hand side, you can see the fully year 24%, clinical side plus 68. Actually, the kind of growth was accelerating in a second half of the year, so that was a plus 45% comparing to previous year, and clinical part was growing 65%, and we actually got some non-clinical deals as well, the non-clinical was in the second half staying more or less flat, but overall in a '25 numbers, we are happy, it was according to our plans, and of course, as I said, now we are entering the scale-up phase, and the revenue growth definitely will be in our focus.

Then strategy: so this is the slide that I've been showing in a previous kind of announcements as well. The market is there, and it's absolutely kind of turning on last year, this year, need is there.

The amount of samples that you need to diagnose is growing, at the same time the number of pathologists is staying the same or decreasing. I can give you one example from our good customer from Italy.

Large hospital region, they have a 409 pathologists currently. They told us that next 2 years, 100 will retire, only nine new people coming on board, meaning that they roughly lose 25% of their workforce in the next 2 years.

That was the reason why they are investing in a digital pathology and AI, because they want to be more productive and cover that gap that they will face in the next coming years. That was just the one concrete example, but on the other hand, it's the same thing in all the countries so that lack of resources.

That's why the automation, there's absolutely no question whether the kind of AI and this whole thing will move forward. If we look at the process where we are, we are talking about the laboratories where you get the tissue samples in, they will be kind of prepared, put it in a glass slides, put some staining, then digitized with the scanner, and then share it to pathologist for diagnosis.

Our part is to support the diagnostic decision-making, we show the image where the problems are and then we also kind of populate the report, we show the numbers as well, we do the quantitative analysis, and we cover, for example, the full breast panel so that they can actually make the diagnostic decision based on that, and then it goes to a treatment. The interesting thing is that as the market is picking up, I would say that, okay, none of the other kind of vendors in this play are able to sell anything—okay, of course they sell something, so, but all the scanner sales, laboratory information system sales, image management system sales are linked to AI.

If they don't have an AI story, where do you actually get the kind of return on investment, then it not happening. That's why it's extremely easy now to make partnerships.

As I said before, I think in some point of time, there will be some consolidation happening as well, because AI is driving the demand on this market. From our side, we are top of the curve on technology.

We were the first company to go on a deep-learning-based AI back in 2015, building that platform and then eventually the AI tools. Now we are using the vision transformers and foundation engine, which is actually patent pending, and that links to kind of different foundation models, but we are leading the pack on the kind of technology side.

We can provide information for pathologists so that, okay, which is really accurate, and we can go much deeper than most of the competition. Then the business model is a scalable, so that once you get in, we are kind of talking about recurring revenues and we haven't seen any churn with our customers.

I'm sure that will be in some level in the future for sure, but no logo churn so far, and no revenue churn so far. We are in upselling mode at the moment.

Then interoperability is a big thing so that when you sell to hospital or laboratory, you are not there alone, you need to be able to support multiple surrounding systems, and we have done that. We are supporting all the major scanners, LIS systems, image management systems, and so on.

This is really a key, so that the whole business is not just building an algorithm, it's really kind of providing a solution which is a robust and it's a regulatory kind of approved and you can actually deploy and maintain. About the clinical suite: so we've been looking at the major areas where we build the offerings.

I mentioned the breast cancer, but there's a lung, colon, prostate, lymph node, gastric, and so on, major organs, and we are having a supporting solutions for those. Breast cancer is a good example from that perspective so that when the pathologists is doing the diagnosis, they need to do so-called breast panel, and that panel contains six six different kind of areas, and you need to be kind of diagnosing all of those.

When you offer some solution for that area, it's good to have coverage for full of those six, because then you can automate everything. If you have a partial coverage, then you do some things automatically and some manually, but we are the only vendor who can actually provide the full panel for the end customers.

Then think about the commercial point of view, because when we sell, there's an idea so that you need to convince the user. Yes, we can do that.

Then you need to convince the IT so that you can support, you have all the connections to surrounding system. Then you have the budget owner so who makes the decision, and then it comes back to the question where the ROI is coming from on this play.

It's definitely one thing is that, okay, you can do things much faster, you can do double or triple amount of work with the same time, you can do it with a higher quality, less errors, so that's a big big portion as well. The other interesting thing was that now we have some data from a customer so that you can avoid on ordering more expensive stainings.

For example in Paris with the prostate cancer, they were estimating that they needed to order every second case, they needed to order an IHC staining, which is roughly about €50 per case. Now when they started using AI for prostate, it's only 10% of the cases needs that more expensive staining.

The value prop and return on investiment is coming really from those angles. Then we go forward, of course, then you go more prognostic and you have more kind of detailed data, you can do a better kind of a treatment decisions, and so on.

This is something that we haven't been talking about too much in this type of events, but at the end of the day, the beneficiary here is the patient. Because you get faster, first of all, that you have a resources that you can do things, you get your kind of diagnosis quicker and you can start the treatment, and you are more accurate so that, okay, we give more data than a human eye can actually do with the eyeballing of those samples, you can do much more precise treatment decisions.

These are the expected benefits that we are providing. The other thing is, and this applies to whole digital pathology and AI, so that if you have some remote location so where you don't have the best experts, then in a digital world and AI-driven world, then you can get the same level of a diagnosis in remote locations as well.

It's kind of more equal access to kind of high-quality diagnosis and treatment. This is our current kind of offering, and this is one of our kind of longer-term ambitions so that we cover 80% of the typical clinical workflow.

That was one of the things that we said during the IPO 4 years ago so that this is what we are going to do, and we are actually moving really nicely forward on this process. We have a coverage on 60% currently, and it's likely that we kind of reach the 80% by the end of the decade.

What idea was that, okay, when you start automating those big workflows, it's good to provide enough solutions so that you don't need to have a kind of multiple different vendors to, for example, for the IT department to manage, and providing a different user experiences, and so on. Our strategy is that, okay, we have a full offering, we will be the leader in this industry, and that requires of course the best products in the market and a best coverage for clinical workflow.

Last summer, we did an strategy refresh, not the major changes, so, but we were thinking about what are the growth drivers in the next coming years and in a longer time. I said, okay, we invested in US and it will kind of deliver nice amount of revenue for us, good opportunities.

I think in European area: France, Italy, Spain, Nordic countries, UK, there's, and now this year by the way, we are opening up the DACH area as well. That there's a lot of things going on.

There's in Italy, the driver was the COVID recovery fund, so that the most of the hospital regions move forward with the AI, because they got the initial investment, and they have roughly 15 hospital regions, so that we have seven out of those as a customer. In France, the public sector is now supporting heavily on adaptation of AI, and as said, we are the chosen one as the AI vendor on that program.

We see that Europe will grow. At the same time, we grow our offering, more apps and a little bit kind of upstream and downstream kind of expansion of our offering, and then a fully integrated AI workflow so that, okay, we will kind of give more tools for pathologists to do their work.

Then the global opportunity is there, because it's a global market, and once we kind of capture the opportunity in the key markets, we start kind of expanding globally, and we already have nice customers outside of the core markets, but it means that, okay, then we start investing and capturing the opportunity in a scale on those places. Then we have some approach for the prognostic models, and some, yeah, pharma companies have already approached us that, okay, can we do a companion diagnostic type of a solution together with them, and the prognostic models we have already built with Mayo Clinic, and there's a kind of a lot of expansion opportunities with current technology.

Then business targets, objectives for next coming years: so we are not giving out the financial forecast yet, but we have of course internally a lot of, yeah, ambitions what we want to do. The first one, so that achieve a financial independence by the end of '27.

We kind of changed a little bit the wording on this, it depends that, okay, if we see that the market is really kind of picking up, now it seems, then we kind of really focus on investing on capturing the market opportunity, because we think that, okay, if you want to play a kind of global leader game, then you need to be able to kind of capture the opportunity fairly quickly, and then that way kind of keep our flexibility here. It could be mean that, okay, if we continue and we want to be profitable, then we focus on that, so, but we want to keep the kind of flexibility on that.

It also means that, okay, financial independence, so that, okay, do we need to do an additional funding round, so that type of things. That's what we are kind of focusing on.

The offering I mentioned already. The 50 accounts: yes, so that's a really concrete plan, now we have roughly 15 clinical customers on that bracket, and very detailed plan how we are growing to 50.

More, we are of course not stopping there, so, but that's the kind of next step goal, and then of course we have a nice technology that can be leverage on multiple things, and we look those as an opportunities. Now, yeah, I stop here, and there's some room for questions.

The foundation engine what we have is a technology that can kind of link to multiple AI models. Currently, it's speed up the development cycle for us so that and we see that, okay, for the kind of market coverage and revenue, it's important so that we have a wide portfolio, and also that we have tools that are generalizable, meaning that, okay, we can build solution that it's easier to adapt on different kind of stainings, different scanners, different kind of surrounding systems.

All in all, so that's a core technology, but it will kind of speed up the kind of time to market from the development side.

Italy and France obviously driving that, but there are multiple other countries. When we talk with public, it's a different.

Then we talk with the private, private is more kind of a discussion about the ROI story, and that we can provide. Public sector is kind of I would say waking up in multiple locations, because you are doing a transformation.

You have a certain way of doing things in hospitals and healthcare systems, and they need to change that they have a budget in a AI as well and a digital pathology. That's happening, but then there are some accelerating things in some countries so that the public sector is stepping in saying that, okay, you will get the funding for next 1 or 2 years, and that way you can start the projects, and once you are in and you have done that transformation, it will continue.

There's a lot of things happening, and there's also drive for European AI and all of those things. We are actually in a good spot, if you think about the competition, there are not too many European companies in this field, and so good progress on that side.

Yes. Short answer.

Then also we did some leadership team recruitment, there was some extraordinary costs from those recruitment processes.

Thank you. Then one final question.

Could you tell more about the competition? Which companies are doing same business with AI products?

I don't want to start promoting the competition too much, but there's a one Israeli company who's focusing on a clinical side of the business. Typically, and so far in every single case, we've been beating them in a competition when it comes to kind of when the customers start comparing the products, but that's a good competitor.

Then we have a couple of companies from US and Germany Mindpeak, and Visiopharm from Denmark, but they are not exactly comparing apples to apples, they miss some functionality and we have something else, and sometimes we cooperate with those companies as well in a way on this business. Typically the competition stops in a heat map level that they show the image and the areas that they might be some problems, but in our case, we do the quantitative piece and provide the ready-made report, so that differentiates us big time plus the kind of size of the offering as well.

Let's take one final question about the market sizes. What are the market sizes of the market especially in France, Italy, Spain, and UK based on the number of hospitals?

That's a good question, I cannot give an exact answer. We've been doing of course a business planning exercise where we categorized the hospitals on large, medium, and small that are kind of according to our ideal customer profile, but we are talking about thousands of opportunities.

What I can say from our pipeline, currently we have on Monday when we last checked, we had over 200 line items in a pipeline. There is a demand.

They are of course not all clinical cases, but it tells that, okay, there's a lot of interest, but there's no limitation, how many hospitals or how many clinics there are and what is the need.

Thank you, Jukka. Those were all the questions for today.

All right. Thank you so much.

At the end, I just wanted to highlight that next events: so we are going to release the kind of report next week, on 11th, and then we have the Annual General Meeting on April 2nd, and the next kind of financial report comes out on August 28th. Thank you.