Warm welcome to RaySearch 2025 Year-End Results Presentation. My name is Karolina Strömblad, and I'm Head of Investor Relations.

With me today are our CEO and founder, Johan Löf, and our CFO, Nina Grönberg, who will take you through the key highlights and financial results. After the presentation, we will open up for questions.

Feel free to submit them in the Q&A chat or ask them live. With that said, Johan, over to you.

Thank you, Karolina, and welcome again, everyone. This is the agenda for this webcast.

We start with a introduction about RaySearch. Then I will summarize Q4 and the full year.

After that, Nina Grönberg will talk about the financial development. Then I take over again and mention the dividend proposal that we have.

Since there is a strong focus on AI these days, I will make a deep dive into what that means for RaySearch. Then I will just summarize the presentation and make an outlook.

After that, we take Q&A. A few words about RaySearch.

RaySearch is a pure software company, and we are dedicated to cancer treatment software. We have four platforms: RayStation, RayCare, RayIntelligence, and RayCommand.

What we see in this image is a comprehensive cancer center. Our long-term goal is to support such a center with all the software that they need.

Not only radiotherapy, but also support for chemotherapy, surgery, tumor board meetings, and other things. That's a long-term vision for RaySearch.

Far, we have focused mainly on radiation therapy of cancer. What we see in this image is the user interface of RayStation, our treatment planning system.

It summarizes quite well what's going on in treatment planning for radiotherapy. In the upper right image here, you see a machine.

This particular machine happens to be an ORXRAY by Hitachi. We can see in this image how the machine moves around the patient.

It rotates, and it also swivels this ring around the patient. One thing that we have to do in our treatment planning system is to model this machine so we understand how it can move, and also the physics of the beams so we can calculate dose in the patient, etc.

The next thing we need is a model of the patient. We see the patient in the middle upper image here and also in the other images.

You see different cross-section of the patient. We also see the dose distribution, which is the color wash overlaid on this CT images.

The idea here is that we get a high dose to the tumor, which is the red color in this image, and low dose to the organs at risk outside of the tumor. For example, you see the spinal cord in this sagittal view that it has a very low dose.

The lower right image shows the patient from this source. If you look at the patient from the source, this is how the patient would move.

It looks like the patient rotates, but it's actually the source that rotates around the patient. This is in summary what we are doing in treatment planning for radiotherapy.

We also want our systems to absorb data as we treat the patients so that all of our products will automatically capture the data that's being generated before the treatment starts, during the treatment, and during follow-up, what happens to the patient after the treatment. By absorbing all of this data in the system RayIntelligence, we can achieve clinical insights and feed information back to our systems to improve the systems.

Some of those icons represent machine learning models, but it can also be other types of clinical insights. We use this feedback data to improve our algorithms.

We have some examples of that already out in the field. We can improve the efficiency of the operation.

Ultimately, we want to provide decision support so that the members of the tumor board, for example, can make the best possible choice of strategy for the patient and ultimately improve outcomes. I show this diagram just to illustrate the long-term journey in terms of revenues.

The reason is I want to highlight that we shouldn't look at RaySearch revenues on a quarterly basis. If you zoom out a little bit, this one goes all the way back to 2008.

We can see that there has been a steady growth of revenues year after year. The two pandemic years are an exception, and we understand why those two years were weaker.

Besides those, there has been a steady growth of the company even though you may see fluctuations between quarters. Now I will make a few comments about the last quarter and also the full year.

Q4 was a strong finish of the year. Net sales grew by 16% to 375 million Swedish crowns, which is all-time high.

Adjusted for the strong currency headwinds, the growth would have been 28%. Recurring support revenue was 139 million Swedish crowns, which corresponds to 37% of the total revenues.

The strong sales translate directly into improved profitability. Operating profit increased by 25% to 92 million Swedish crowns, resulting in a 24% EBIT margin.

Adjusted for currency losses, the margin would have been 27%. For the full year 2025, net sales increased by 13% to 1 1.34 billion Swedish crowns, marking the highest annual revenue in the company's history.

Organically, net sales grew by 19%. Recurring support revenue was 524 million, which corresponds to 39% of the total revenues.

Operating profit was 292 million Swedish crowns for the full year, and the margin 22%. If we adjust for currency effects and extraordinary items, the operating profit would have been 353 million and the margin 26%.

Let me briefly highlight a few of the new orders and expanded installations we secured during the quarter. We continue to see solid momentum with strong license sales to both new and existing customers across all regions.

Greater Poland Cancer Centre expanded its RayStation installation to include proton therapy, bringing photon and proton planning together on a single platform. The University of Pennsylvania, one of the premier proton therapy institutions in the US, selected RayStation as a unified treatment planning system for proton therapy across its three clinics.

Universitätsklinikum Gießen und Marburg in Germany chose to replace Philips Pinnacle, which reaches the end of life in 2027, with RayStation. We've also seen strong clinical progress during the quarter.

The Royal Marsden NHS Foundation Trust achieved a major milestone by performing its first online adaptive treatment on a standard Elekta linac using RayStation's adaptive planning module. Until now, most online adaptive treatments have been limited to specialized machines that few centers have.

This achievement makes online adaptive radiotherapy accessible to far more clinics and patients. At the Southwest Florida Proton Center, the first patient treatments were delivered using RayStation and RayCare together with IBA's proton therapy system, enabling highly precise treatments, including proton arc therapy.

Together with the Trento Proton Therapy Center, we performed the world's first clinical proton arc treatments in 2025, a technique that improves dose distribution by using many beam angles and optimized energy levels. This achievement was actually named one of the top 10 scientific breakthroughs of the year across the entire field of physics by Physics World, and that's something that we're very proud of.

Now I will hand over to Nina, who will go through in more detail the financial development.

Thank you, Johan. Taking off from your presentation and the numbers in brief, we can conclude that it has been high interest in RaySearch solutions throughout the year, and that goes both from new and existing customers and in all of our regions.

That is also something that is very much reflected in the numbers for the last quarter. Order intake increased by 8% in the fourth quarter and 17% for the full year.

I want to highlight that these numbers include the effects from the stronger Swedish krona, which, as has affected us a lot during the year. That goes both in terms of growth and on the bottom line.

Order backlog end of December amounted to 1 billion 528 million, and the book-to-bill ratio was 0.9 both in the quarter and for the full year. Moving on to net sales, we finished the year beating the last sales record by far.

Net sales of 375 million means a growth of 16%. The organic growth was 20 28%, showing that the underlying business really performs well.

License sales growth was 15% in quarter four, and support sales grew with 6% year-on-year. When we take out the currency effects from the support sales numbers, the growth was 16%.

The high net sales drove EBIT to 92 million the quarter and strengthened the margin to 24% compared to 23% for the same period last year. Currency losses from the revaluation of working capital affected EBIT with just about 10 million.

Adjusted for that, the EBIT margin would have been 27%. Next slide is the rolling 12 development on net sales and EBIT and the perspective that we believe gives a better description of RaySearch business performance.

For the full year 2025, net sales increased 13% to 1 billion 344 million. The organic growth was 19%, and with an EBIT of 292 million, we ended the full year 2025 with a margin of 22%.

That is equal to last year, but also burdened by 37 million in currency losses. Adjusted for those and an additional 23 million that we treat as non-recurring costs, the margin would have been 26%.

Moving to the next slide showing the revenue split and where I focus on the revenue from support, we saw a growth of 11% in our support revenue for the full year 2025. With the steady growth we have in our support revenue over time, we increased the robustness in the business from recurring revenue.

For the total year 2025, the portion of recurring revenue in relation to total net sales was 39%. Cash flow in quarter four, as you can see here on the next slide, improved significantly and amounted to 91 million.

That includes positive effects from a lower working capital. We will continue to put focus on having a good cash flow in 2026.

However, I want to point out what I also said in quarter three, that the cash flow can fluctuate also going forward. We always seek to work with standard payment terms in our customer agreements, but we also have situations where the gap between sales and payment is longer.

It can be tenders or framework agreements or related to certain markets, sales that comes with good profit, but where we have to accept later invoicing. We want to have a position where we sometimes for strategic reasons and in relation to important customers can choose to accept profitable sales over short payment terms.

With a cash balance end of 2025 amounting to 407 million and no loans, we have a solid financial position. The next slide shows the contract assets, that is our customer receivables, and also our contract liabilities.

That is the balance sheet items that shows how much payments we have received from our customers in advance. We have during 2025 moved away from a position where our contract assets were lower than the contract liabilities, and that is to a large extent dependent on that we have delivered on prepaid sales in our backlog.

I want to point out that a net position of 118 million is still a good position. Of course, this doesn't take away our intention to lower this number and to improve the working capital where we can during 2026.

With this, I hand over back to you, Johan.

Thank you very much, Nina. I will just briefly mention the dividend proposal.

We are pleased to announce that the board proposes a dividend of 4 Swedish crowns per share for 2025, which is up from 3 crowns per share. The dividend will be decided at the Annual General Meeting on May the 7th.

The board has also revised RaySearch dividend policy effective from 2026. The goal is to distribute 50% of profit after tax annually, taking into account the company's capital needs, investment opportunities, and overall financial position.

Now we would like to devote some time to AI and how it affects RaySearch. It's very important to note that AI is something very positive for RaySearch, and it's definitely not a threat against our products.

There has been some belief in the community in general for software companies that AI can create and replace ordinary system development. That's probably true for simpler applications and with thin functionality and not so much data.

With our large and complex systems, it's not doable for AI today. AI can only produce smaller snippets of code with high quality.

Also, in our field, we need very deep domain knowledge. We also need to consider patient safety, as well as cybersecurity.

We are liable for that, and we have to take responsibility for the code. AI could never make sure or promise that there is no maltreatment of patients, for example.

We as a company, we need to understand the code and make sure that it doesn't harm any patients as we treat millions of cancer patients, and we cannot make a mistake one single time. There is also huge data requirements in our field.

We need clinical data, images, plans, contours, etc. We need to perform measurements for machine modeling and quality assurance.

Then we have the medical device regulations, such as FDA, where we as a company have to promise and document that our system performs according to the requirements and that it is a safe application. AI doesn't take any responsibility in that regard.

We are existing in an ecosystem with many, many partnerships with machine vendors and our installed base of about 1,200 clinics. In order to develop these platforms that we develop, we need to do that in partnership with all of these stakeholders.

AI for RaySearch is a very useful thing. We have a large machine learning department at RaySearch where we leverage AI for our products.

For example, we have a functionality in RayStation called Deep Learning Segmentation, where we, based on images such as CT images and MR images, can automatically segment the organs in the patient, as you see in that image to the right. Those are about 200 structures in the patient that has been automatically segmented with Deep Learning Segmentation.

It takes about 1 minute to do that, which would take many hours to do in a manual setting or in a manual manner. This is used clinically throughout the world.

Only 2000 2025, 270,000 patients were segmented using this particular module. This leads to significant time savings, and it also increased the segmentation quality.

You can achieve better consistency over different users and over different institutions. Second product that we have in RayStation is Deep Learning Planning.

Here we automate the very time-consuming task of treatment plan generation. 7,000 clinical treatment plans have been generated by our customers so far, but this is increasing rapidly now as more and more customers get their hands on this technology.

This increase plan quality and, again, consistency and saves a lot of time. It also opens up for multiple treatment plan generation per patient so that we can explore a larger solution space.

One good example is a customer in Belgium, Iridium, that have now automated almost all of their prostate patient planning using the AI capability in RayStation. What they have seen is that the Deep Learning Planning models outperform manual planning by a human being, achieving superior quality and consistency.

You can see some of the time savings that they achieve. On the patient modeling side, they save 44% time.

On the plan generation side, they save 47%. We also use AI to help our developers write code faster.

For example, Microsoft Copilot can help our developers to find bugs, can explain complex code and patterns, write tests, and also help with documentation. It's important that developers stay in control.

They always review and modify the AI output. The code that's generated by AI is not very tidy or beautiful, the developers have to stay on top of that.

Now the final section of the presentation is a quick summary and outlook. We saw that we had record-high net sales despite macro uncertainty and very heavy currency headwind.

Despite of that, we could show solid profitability and also improved cash flow, which we're very happy about. There is still a strong demand for RaySearch solution, an increasing demand, I would say, for RaySearch solutions across all the regions.

We are confident about our EBIT margin target of at least 25% in 2026. With that, I will open up the Q&A session.

I believe Karolina will manage the questions.

Thank you, Johan. Yes, we will start the Q&A session with live questions.

Before we do that, I would like to remind you that you can also post written questions in the Q&A chat. Let's start with the first question that comes from Kristofer Liljeberg at DNB Carnegie.

Kristofer, please go ahead and unmute yourself.

There. Sorry.

I have quite a number of questions. Maybe I'll start with three and then come back.

First-

Kristofer, could I ask you to ask one question at a time, please?

Okay. I'll do that.

You're the boss. Maybe then I would like to ask about the support revenues, if there are any one-offs here helping that in Q4 or if that's a good starting point for 2026.

That's a question for me then. We have some one-offs.

It is not very much, but it is a little bit tricky, I think, to talk about one-offs in our support revenue because we always have a little portion of that. We have situations where there is a delay in timing when they are renewed, and it might be that we, because of that, have revenue for more than three months in one quarter.

It's a little bit too hard to say, Kristofer, give a straight answer to that. I would say that you can use this as the base going forward.

Great. Thank you.

Please go ahead, Kristofer.

Okay.

No. If you take one question at a time, that's all.

You can continue.

Okay. That helps.

Thank you. My second question, the news that you sent out a couple of weeks ago about Royal Marsden doing online adaptive on Elekta machine, was this without RayCare?

If so, how are they able to do that? If it's possible to just give a quick answer on that.

Absolutely. That was on a Versa HD Elekta machine.

Far, only RayStation, without RayCare, but that means the workflow is somewhat clunky, takes more time, but is doable to do it. That's the important message here.

They will implement RayCare going forward, and then the workflow would be smoother and quicker. Of course, they have also Radixact machine, it would be quicker on that machine given that we have interoperability between RayCare and the Radixact.

It will be also smoother on a Varian TrueBeam, since RayCare is fully integrated. The point here is that even without this strong integration, you can do it, but it's not as quick.

That's helpful. Thank you.

My third question, if you could comment on the Pinnacle conversion in Q4 and the outlook for that here in 2026.

This is the last year that Pinnacle is around, so that will be a strong focus during 2026. In Q4, it was actually surprisingly low.

It has been quite high percentage of license sales in previous quarters. In Q4, the license revenues from Pinnacle conversion was only 11%.

That shows that we can, because I think that has been discussed, and there has been a lot of questions about whether we are able to convert other clinics than Pinnacle clinics, but that shows you that that's very possible.

Thank you very much. I'll get back to the queue and let someone else ask questions.

Okay.

Thank you.

Thank you, Kristofer. The next question comes from Mattias Vadsten at SEB.

Mattias, please go ahead and unmute yourself.

Morning. Can you hear me?

Yes, we hear you loud and clear.

Good. I will also take them one by one.

You shared the license share of Pinnacle here in Q4, which was a low number. Could you share that for the full year?

Also, that leads me to believe then that the conversion, the Varian conversion and Elekta conversion, must have been very strong to end the year. Just if the momentum has switched gears there, and what's driving that?

That's the first one.

Okay. First you asked for the full-year number.

I think it was 20

23%

license revenues from Pinnacle conversion. It's just that we have been able to convert other types of clinics.

For example, this large UPenn, University of Pennsylvania, order in Q4, which was, I believe, 57 million Swedish crowns around that number

in order.

What was it in 53 then in revenue?

A bit above 40. Aha.

Okay. That was an Eclipse conversion.

That, of course, affected that mix for the Q4. This will vary from quarter to quarter.

It's very hard to predict. Since we have a time-limited opportunity now for Pinnacle conversion, there will be strong focus for that in 2026.

Good. Then I have a follow-up on Kristoffer's question on the online adaptive radiotherapy that you can perform on Elekta Linacs and TrueBeam with RayStation.

Do I still read you correctly that in order for a clinic to seamlessly sort of perform online adaptive, you would still need RayCare in the future, or how should I interpret that?

No, that's correct. To have a broad clinical use for this, RayCare is needed.

That you have understood that correctly.

Good. Do you expect it to be frequently used among those clinics that have RayCare, for maybe 2026 and the years to come?

I think it's one of the main drivers for RayCare going forward now that we have a very good combination of equipment with RayStation, RayCare, and Varian's TrueBeam, where you can make extremely effective online adaptive treatments. We see a lot of interest all over the world for this combination.

Thank you very much. I will limit myself to one more question.

In terms of the new orders, the University of Pennsylvania, if that was recorded as sales in Q4, and then maybe the same question for Greater Poland Cancer Centre as well? That's my last one.

Thank you very much.

It was. A big portion of the UPenn order was recorded as sale as Johan also just said.

Perfect. Thank you.

Thank you.

Thank you, Mattias. We have a question from Oscar Bergman at Redeye.

Oscar, please go ahead and unmute yourself.

Thank you. Just wondering if you can give an update on roughly how many Pinnacle centers are left to convert, and also then whether fewer conversions in absolute terms from the clinics in Q4, or have you sort of lost any market share on conversion?

We don't know the number of Pinnacle clinics. It's in flux right now, it's very hard to know the number of remaining Pinnacle clinics.

In some countries, there are almost none, like in the UK and Japan, they have been basically all converted. In Germany, there are quite a few remaining, in the United States and China.

It's a couple of hundred. I can't give you a more detailed, but there is still a big opportunity out there.

No, we have not lost market share in terms of Pinnacle conversion. It's rather that other conversions have been because we look at percentages here.

In absolute numbers, we are still very successful in converting Pinnacle clinics to RayStation.

Thank you. I always ask about RayCare, and I have to ask about it also this time.

Just wondering how many new RayCare centers were signed in Q4, and perhaps also if you can elaborate on what remains the largest obstacle for increasing RayCare clinics?

No, there are no real obstacles. We had I believe four RayCare orders in 2025 in total.

Of course, that's not where we want to be, but we believe that this will ramp up during 2026. One obstacle is the online adaptive capability, which needs two new versions of RayStation, RayCare, requires FDA approval.

That takes the time it takes. It's not something we can Yeah, we can affect it to some extent, but we're also in the hands of FDA.

That's needed. In Europe, the online adaptive treatments on this platform will start during spring.

That's also a good message for the US market, because then they see it's just a matter of time before they can get their hands on this functionality as well. Regarding ramp-up of RayCare, it only takes time, but there is a lot of interest for RayCare now.

There are no particular obstacles in place, we are quite confident that we will see, let's say, over the next two, three years, a good ramp-up of RayCare sales.

Okay. I think in the Q3 report, you mentioned that you opened up some modalities for a customer base for a six-month trial period.

Just wondering if we can get an update on how that has progressed so far.

It's still limited to a couple of countries, and it's progressing well. That they are very happy that they can try out new functionality.

I think the limiting factor there is the time they have at their disposal. They're running very busy clinics, and it's hard to spend time on just exploring new functionality.

Otherwise, it has been very well received in the countries where we have opened up so far.

Thanks. Just a final question.

I know you're not supposed to give your view on the share price, of course, but at these share price levels, why are you focusing on dividends rather than stock repurchases?

That's a good question. I think buying back shares is an interesting option that we will look into deeper.

We are really looking into that for sure.

Okay. Great.

Thank you very much.

Thank you.

Thank you, Oscar. We will now take a question from Aryan Nourdamer.

Please, Aryan, go ahead and unmute yourself.

Hello. Can you hear me?

Yes.

I have a question about the order backlog. We have seen it steadily decrease over the past few years, and right now is on a 1.1 times for the sales for this year.

Why is it decreasing so much? Is this a problem for revenue growth going forward, or is there something else going on here?

The main reason why it has shrunk lately is that the dollar effect, or the currency effect. No, we don't really see it as a problem.

Okay. You don't think that is limiting growth over the past few years?

No.

Okay. Thank you.

That was my question.

Thank you.

Thank you. We will now move back to Kristofer Liljeberg at DNB Carnegie.

I guess you have a follow-up question.

Yes. A few more.

First, just a clarification. The 11% and 23% you mentioned for Pinnacle conversion part of total license sales, or the question is, is that of total license sales or license sales to new customers?

Out of total license sales.

Great. Thank you.

Then a question on the cost and particularly administration costs seem to have remained high here in Q4 sequentially, given that I guess third quarter you should have had the extraordinary cost, much of that in that line, or-

Sorry, Kristofer. Can you-

If I look at administration costs, they remain at quite high level here, actually higher in Q4 than in third quarter and second quarter when I guess you had cost for the employee conference, or was that in another cost line?

No, it's included in the administration costs.

Okay. Did you have such costs this quarter as well, or why does administration costs remain so high?

No, we didn't have those costs in this quarter, and yeah, it's a good question. I must come back to that one.

I haven't looked at it from that perspective.

Okay. Then maybe, Johan, I don't know if you want to say, you sound pretty positive in the CEO word in the report.

When it comes to the sales outlook for 2026, do you expect a similar positive trend here, or anything that could change that? Thank you.

No, to to achieve the 25% EBIT margin or and with at least 25% EBIT margin, that relies heavily on a sales growth. We are positive in that regard.

Great. Thank you.

Thank you.

Now we have a question from Mats Andersson. Mats, please go ahead and unmute yourself.

Hi. I have a question about the Ortega order.

In Q3, you said that the first center will have their income in Q4. My first question is, how much is the income in Q4?

Next, when will the next delivery for next center go?

I didn't hear. Was it Ortega you're talking about, or-

Yeah.

Yes, the Ortega order. You have the

first- Okay. Got it.

Got it. No, there hasn't been any revenue from that during 2025.

Our estimate is that there will be revenues from at least two centers during 2026 from the Ortega order that will be delivered and booked as revenue.

Thank you.

Thank you.

Moving on to the next question that comes from Carlos Mariano. Can you please unmute yourself?

Hello. You're obviously very near your kind of previously set medium-term margin targets.

You mentioned in Q3 that you might revise those targets, give new long-term guidance. Do you still expect to do that at some point during 2026?

Yeah. During 2026, we will communicate a new, let's say, three-year margin target and possibly some other financial target.

You can expect that will be communicated.

Is that with the half year or the first quarter, or it's sometime during the year?

I don't know for sure. It involves the board.

The board has to make a decision, I can't say by myself. That's not a problem.

We want to communicate a new, let's say, medium-term target. That will happen.

Sorry, I interrupted you.

I'm sorry. Say again.

What's-

Sorry, I interrupted you. I apologize.

Sorry.

No, no problem. Go ahead.

No, no, that was it. That's good.

We're going to get some new targets at some time during the year, and by the sound of it, we're going to get margin and maybe sales. There's going to be some sort of more

than margin

medium-term target. Okay.

I just want to add what another person said. If your shares are just being pushed down because they're in some basket, I appreciate the dividend is fantastic, but it just seems to me you have to be on the other side of AI selling, and it just seems to me there'll come a point where spending your cash on buying your shares is a very sensible investment, right?

To me, it just seems like an extremely good idea. Anyway, I just wanted to get that.

Thank you.

I note your comment, and I think you're probably right. Thank you.

Thank you. We have a follow-up question from Aryan Nourdamer.

Aryan, please go ahead.

That was an accident. Sorry.

Okay. Oh, we have a follow-up question from Mattias Vadsten.

Mattias, go ahead.

Thank you. I just thought if you could help disclose some outlook on timing of approvals, release of modes to expand the use of the software products you have to further cancer therapy areas.

Timeline for that is So if you take liver ablation, for example, that's can be used in Europe as of now. There we are waiting for 510(k) clearance for in the US.

Chemotherapy will be cleared sometime during 2027. Surgery will be Yeah, that that's hard That's even further into the future, I can't I can't say that.

Liver ablation will be first, chemotherapy after that, and then surgery is coming after that.

That's very clear. Thank you.

Thank you.

Thank you all for your questions. With that, we will conclude today's presentation.

A recording will be available shortly on our investor website. If you have any additional questions, you're very welcome to reach out to us.

We appreciate your participation today, and we look forward to connecting with you again on April the 29th when we present our Q1 results. We wish you a pleasant rest of your day.

Thank you.

Thank you.

Thank you.