Sectra AB (publ) (SECTB) Earnings Call Transcript & Summary

Welcome, everyone, to the Sectra Capital Markets Day. My name is Mats Franzen. I am the moderator today, previously CFO of the company. Luckily, we have the present CFO here as well and some other colleagues. We will get back to the presentations. But initially, since this is a sort of a pre session, I, without the further ado, leave the word to our group CEO, Torbjorn Kronander, to give the background.

All right. Thank you. So my name is Torbjorn Kronander. We decided to do it like this because many of you have heard the old story many times. And then we say we'll not repeat everything every time. So we did a pre-session of history on the basic culture, and then we'll go into today's session, looking forward starting at 1 and I have an incredible amount of slides. So I will be quite fast. There will be Q&A sessions during the sessions later on. So I'll give you a little introduction. Sectra was founded by Professor -- with 3 of his PhD students to solve encryption, Sectra stands for secure transmission. That was 1978 ways before I came into the company. In 1983, it was decided by that group and one more person on Jan-Olof Bruer, who's also PhD student for the same professor to try to make it a dream company. And I was -- 1984, I start as a PhD student at the same professor, and that's how I came in. But the vision was from the beginning from these people to make it a product company one day. We use consultants to finance, not have external capital, but finance internally. I did some extra work for them. So I worked by the hour, I think, SEK 50 an hour because I understood the math behind encryption and coding theory. And that math is a little difficult. And if you want to write programs, customers got the consultancy reports, they didn't understand how to write their programs plus and at times is something completely different. This module something large polynomial -- polynomial or something. 1989, I made my PhD, and they want to come over. I didn't want that. I want to do work in medical technology, all my family are medical doctors. And I came to lean shifting to study medical technology because medicines, too much by heart and a lot of computers. But then I did my PhD something completely different, signal processing mainly, but I want to go back there to medical. And then we started medical sector. And that was a teleradiology product moving images instead of a 24/7 taxi that drove film between Lindesberg and Orebro from the beginning. 1993, we got our first tax and tax is actually also archiving. If you view all radiology images in a computer that would be in -- and a very enthusiastic medical doctor who thought this was fun now. When you had film, he came home to his family at 4:00 in the afternoon with the digital, it came home at 7:00, but he was happy. And that started it. And then we got VISUS and we got [ Orbost's ] which is a big, big, big system of many hospitals, 3 hospitals, Tonsberg in Norway and from there, we have grown in the medicine field. 1997, we teamed up with Philips, where actually they found us, they needed a pax partner, and they thought we were good because we had built it on general available technology instead of special systems. And we got the first U.S. project together with Philips and Riverside, California. 2000, we want to do some -- we didn't really trust Philips. So we want to do something else that didn't hurt it. I met a guy from [ KK, Marks ] Donaldson, and we hear the fantastic detector of x-rays, Photon counter. We started a product around that, Microdose mammography. We built absolutely the best mammographic system in the world. But it took a little time. We also met Epic that became a good partner going forward. It's a large medical record system in the world. 2004. That started with Philips telling me because we were so -- Philips work with both us and Epic. But they said to me because I said we have to meet them. If you work with them as well, these systems need to work together to create an efficient hospital. Philips said, you're not allowed to meet them. And then I said, I call Judy Faulkner, actually who's the CEO and owner of all of Epic, and I said, Philips doesn't want us to meet, why don't we need to find out why and she lasts than we've been friends since then. Very good, I think, for both, but of course, very much for us. 2005, Philips acquires competitor after trying more or less repos. And that was a big blow, 60% of our turnover with Philips. They had a business plan that will pick us up or nothing in the fall. Our both turnover and our stock fell like a rock for a while there. 2011, we continue. We bit the bullet, and we continue. 2011, we sold mammography back to Philips. In this time because they didn't have a mammography system. And we just got -- as soon as we got our FDA approval, hardwares and software are very difficult combined. The hardware companies are not very good at software and software companies are not very good in computers. It's very difficult to send an x-ray tube as an attachment to the email. And people call us and our service people say, "Oh, what should I do about this green algae growing in the system?" But there is kind of a fixed software. So we sold that to Philips. And there was concentrated complete software instead, which we know better than hardware. But when I met Judy before [ format ] Epic, she said, if you want to be big in the U.S., you need to fight with customer satisfaction and she has done on that. She wins a lot the Best in KLAS every year. And KLAS is an organization in Salt Lake City in Utah that awards or they do customer surveys of quality in software. And I bought 2 big Bolsa champagne, this size. I put one in lean shipping, still there, but it's empty, which is good and one in Shelton, Connecticut, our office in the U.S. and said, we will open this when we're #1 in class. It took a few years but 2011, I think it was. Under the guidance of also Marie did a great job there. We won the happiest customers in the U.S. And that was an extremely important. First year, they said, Sectra, that's a crooked organization James Bond. How can they win Best in KLAS on radiology in the U.S.? But second year and third year now we won it 12 years in a row, and now we recognized as a very good and viable partner for hospitals in the U.S., a very important thing. Today, with the fastest-growing tax vendor, taxis actually taking care our taxis -- archive picture archiving and communication system with the fastest growth in the world. And Isaac, we will later talk about that very hard primarily the fastest growing in the U.S. Our philosophy with shareholders from the beginning has been that if you start with a rational strategy in a growing market, you don't want to own gas stations right now because people are getting electrical cars, right? And only gas stations, the only thing remaining to fight with is price. And that's a tough market to be in. You can succeed there, but it's a tough market. It's much easier to grow in a growing market. So you select markets that are rational and growing. Then if you have happy customers. And in order to have happy customer, you must have happy employees. There's no way you can have happy customers without happy employees. People think like that. If you think you can. You can. And dare to be expensive when you worth it. Don't give a win. If you have a high value to provide to customers, you need to get paid for it and have reasonably cost control and some stubbornness. Then shareholders will be happy. And that is very important, but it comes in this order. And we have been -- we will be fine, if we have to take down the results for a quarter in order to keep customers happy because that's the best for shareholders long term. And that's the basic rationale on how we work. And looking, I will not go into the cybersecurity market here, but I will look into medical and what drives it. This is a population pyramid of Germany. There are ways to few people that are young. And of course, it's going to work. You see there's still working people between 55 and 65 in Germany. But when they get old and get dependent, there would be very few people take care of these people and Germany is kind the locomotive of European economy. It will be tough when the demographics look like that. Japan, the other after the second world war economy in the growth tiger, even worse. I was in the fall last year, I was in Tokyo on a trip organized by Aza Banca. And there was a professor national economy that spoke about 40 minutes, and he said, well, I speak here, Japan will become 500 people less. These are not small problems. In my eyes, the European Union should look at nothing else. This will be big trouble. U.S. is a little bit better. Huge demographic or ethnicity change or culture change, I would say because the people have a lot of children in the U.S., it's not the people, who make the most money or most well educated, but they have a better structure. Now we'll see the administration out through all of these out, it will become more like it looks in the Rest of world. When I was feeling this is a cycle on the Internet and use Bureau of sensors. And I found this is not really important for this one, but you can see a very interesting observation, just share it with you because it's interesting. This is Russia. If it looks like that, you're in big trouble. Look at any one below, there's no kids. Very interesting on the big scale, not for this section, but I thought I'd share it with you because it was interesting and that will live longer to this demographic situation. And you have a rising trend of health care costs. This is a prediction I didn't find many cures on the net. But as you can see, the predictor was 19.3%. This is U.S. 19.3% of GDP would be spent for health care. One split of health care -- in health care. That didn't materialize. I looked at the real figures yesterday. The cost per capita is what it was predicted. The percentage is a little less today, but still 17.6% on -- Sweden is about half of this. Most European countries are about half of this. But it shows the trend and the derivative in all countries the same. This won't last. This won't work. If you split this down into age bracket instead and say, what is the cost per capita per age bracket. You see that for children, for small children and anyone up at 50, Germany spends more money in health care than the U.S. does. But after the age of about 60, every country exposes and boom. It's interested yellow card there above 80, we, in Sweden, tend not to tend much for people, obviously, because after 80, the curve is flatten in Sweden, but that's the only country I know of where this is not a monotonous growth. But anyway, this shows where you have to do. If you want to do something because health care won't work in this environment. You need people building cars and producing car producing food as well, a friend of minus, who is the development manager in Counterbase Sweden had calculated that if we're going to keep the relationship between a working person and a patient in numbers, so one working person in health care will takes care of so many patients. If we want to keep that relationship, I think 2035 or [ '40 ], not that far away, every kid at least leaves high school in Sweden is going to health care. Every single one, that will work. So something needs to happen. And if you're going to address this situation in the market, you have to concentrate on the ages of the elderly because that's where the cost will be. And these are neurodegenerative disease, Alzheimer's, MS Parkinson. It is cardiovascular disease. It's cancer disease musculoskeletal disease, which is grossly undervalued in -- because it's very expensive and vision and hearing. If we can sort these diseases out we will save society from not being able to cope with health care and go into the future, and that's what we're concentrating in our efforts. We do imaging for everyone, but we are supposed to be -- we will be very good in these areas. This leads to our business area in Medical, which is the increased effectiveness of health care, while maintaining or keeping quality. Now we very often increase quality as well, while we do things. But the main thing we can sell today is efficiency increase. And it's very interesting -- before the pandemic, we didn't see this so much in the U.S. In Sweden, it's been the case in since '90s. But in U.S., we didn't see it. Now almost every customer will talk to in the U.S. is very concerned about efficiency workflow and stuff like that because they have the same situation. it's a little later, but basically, it's the same situation. So we are well positioned as for markets, health care, IT and cybersecurity, which we are not speaking. We will have another Capital Markets Day for cybersecurity somewhere in the fall because it's completely different subject. But both of these are growing markets where a recession will not affect the growth because people get sick in either direction. So if the society booms or bus, is society healthcare and cybersecure needs to grow. So we are in a good place market-wise. So that was the first condition on the story, right? Next checkbox was happy customers. After the first win 12 years ago, a Best in KLAS, most happy customers of all vendors selling into large hospitals in the U.S. We have continued to win that. We have won the large hospitals in the U.S. for 12 years in a row. Last year, that we went -- just came back from being awarded in Las Vegas. We want 8 of them. So both the large and small hospitals in the U.S., Canada, we won in pathology, which was a new category only recognized in Europe and in Middle East, and with Canada and Northern and Southern Europe. So we have the happiest customers in all these places, and we are seconding a few more. And this is what long-term drives our growth. KLAS also does executive deep dives and the reports, they sell to hospitals and analyst and stuff and you can buy them with them. We will not -- we also buy them. But I will show you 1 slide. The new one is not out yet, but this is from last year and us and our major competitors in the U.S. This is the U.S. market only. And this makes me proud and happy. 98% of our customers would buy again from us. We are so high above all competition that we are the only one above the average all else is below the average. Only question, would you buy the same system again? This is what drives our stock value and also enjoy working because it's not only about the money, you need to have fun as well. This makes me very happy, very proud, and we will talk a little more about when Isaac talks about a little later. This is 1 year old. There is a new 1 out. I'm not allowed to show it yet, but it's not worse. It's better. And this is a lot of customers in the U.S. Checkbox 3, happy customers is the only possible with happy and motivated employees. We are very careful about employing and recruiting my saying is, if we get the right wrong people on the bus or in the company, I can be the best manager on the planet. It will not work anyways. If we get the right people on the bus into the company, I can be the worst manager on the planet. It will work out anyways because they will not care, what I say if it's something stupid, and they will do something good. And that's how we recruit. We are very careful to some frustrations sometimes in the -- with our middle managers and managers because it's a little slow process, where I still meet every single one and I say no to about 1 out of 5. And it's very embarrassing when I say no. So it increases the bar for everyone coming in. That it begins there. So it begins with -- and we hire for attitude and ability. They need to be smart and the need to be a good person. And my theory is, if I like them all, they will like each other, and that will be fine and customers will like them. And then if there is no everything when they come on board, if they're smart, they will learn fast. And we all live in an area. We have to relearn everything, every 50-year anyways. And then we work a lot with culture. Culture eats strategy for breakfast. I think was Marie gave that slide first. I still don't remember who said it, but it's a quote. It's not we -- [indiscernible] it. But it will work a lot in culture in a very fast pace you cannot have rules for everything. You cannot have a manual that pick how you should behave in a certain situation. People have to know by heart, how the company operates, otherwise, it will not happen. And we can -- the biggest frustration can have customers is a frustration. Yes, I agree, it doesn't work. I have to call and you come back one later with a reply. We demand the only action not allowed of our employees, when a customer is in trouble is no action. They have to do something. That means sometimes they do mistakes. But that's fine. They did something -- have to explain the rationale at works, but they better doing something and sometimes fail and not doing anything. And I think we have got better operational. And a good company culture is quite simple. We also teach people on that. If you just remember this rule, do unto others as we want them to be to you. We'll be fine. People forget, oldest rule in humanity, finding all religions, and I'm an IT manager, let's say, remember what been said you manager with 10,000 years and we'll be fine. And some companies forget. So lots of shareholders start with a rational strategy in a growing market. Then if you have happy customers, happy employees, dare to be expensive when you work it, reasonably cost control, shareholders will be happy. And this is the financial trend, et cetera since 1978 when it was founded, Up until now, the curves are okay. And that concludes my introduction on the history and a little about the culture of the company. Anything about that questions? We'll make a little break here, and you can ask there. And we'll have a Q&A session later on. Short pass.

Sectra, my name is Mats Franzen and this is the Group CEO Torbjorn Kronander. I was previously the Finance -- Chief Financial Officer, and we have the present one here as well today. This is the agenda. For those of you who might not have picked up the agenda out in the coffee room. So we have a full pack day and which means we have to have a tight schedule. So this is for the medical IT section only "only" in Sectra, not the cybersecurity part of things. And with this, I will introduce the speakers. If no one knows, this is our group CEO, Torbjorn Kronander. We have Marie, President of the Imaging IT section and [ Fredrik Can ], who will also hold the presentation went in short. And [ Fredrik Gustavsson ], CTO of the company, also presenting today; and Isaac Zaworski, Head of our U.S. operations of North American operations. And then we also have additional colleagues present. And please stand up so we can all see you in -- in life. Several of these colleagues will also have a moderation presentations later on out in the coffee room. And that's about that. Now safety instructions, regulatory information. If we have to exit the building, for fire or any other urgent reasons, follow the green signs. The first one is there. That one how I feel like a flight attendant, but go back where you came from in the coffee room and out, do not use the elevators. Fire extinguishers, we have the first one behind there. And the other one in the sick room. And the filibrator or [indiscernible] in Swedish is on the ground floor and at the third floor. That's pretty much it. If you are not comfortable being on a photograph because we will take some pictures. I urge you to take contact Helena, information relationship officer -- Investor Relationship Officer in the coffee break, and we will sort that out. So you should not have any concerns about that. Also, we will have Q&A sessions. So please have a bit of a patience, if you have questions during the presentations. We do the presentation, and then we can have the questions at the assigned time for the Q&As. That's about it. And other practical details, I don't have any. But restrooms are behind the closet outside the coffee room, if no one has been able to find that. That's what I can say about that. So with that, I leave the word to Torbjorn again.

Thank you. And this would be a lot of slides again. So high speed. And there would be Q&A session afterwards, if you have questions. So a little about myself. I'm a founder of medical side of Sectra as I said, I am CEO, President since 2012, I've been running the medical science, since we started up 1990. Been in Swedish navy 3.5 years, reservice officer, I grew up in Gotland on the PhD and MBA, sale of most things have flow. Pilot the most things that fly and still fly helicopters quite a lot and also the largest shareholder. As for market data of the [ image ] business, our main business, I mean, that's 85% of what we do in the whole company and 90-plus percent of what we do in medical. Marie will discuss that. So I will not discuss the marketing details and growth here. I will not do many financial figures either. I will just go through what we are in finance after the quarter 3 and again, explained our economical targets. We are a trust business. The CIO of Stanford University, Michael Pfeffer told me that he has about 1,085 I think, he said IT systems in 1 hospital. They rank them all for importance for the hospital and the PACS that we deliver came out top. It's a single most important system they have for running business. The EMR, of course, is more important on a general long-term business, which is [Foreign Language] in Swedish. But if our system stops in acute intake stops and the hospital comes to grinding halt. EMR can update afterwards very often. You don't buy that from a company you don't trust. And that's also the case in cybersecurity. You don't buy systems that keep the most important secret in the nation, secret from someone you don't trust. And trust can mean a price premium as well. But we also need to be trustworthy financially. So we can't borrow a lot of money we need to be. They need to feel that we will be there in the future with them as well. They cannot buy otherwise. So stability is important. Equity assets ratio should be above 30% -- it's a hygiene factor. It's currently at 47% at the Q3. Profitability and that's been a dispute with some of you over many years. I maintain that 15% is enough as a hygiene factor. It's not what we make our money on. And that's important. I can double margin all of a sudden, and we probably can for a short while that will eat our future growth. If we had doubled our margin and increase our margin a lot 15 years back, some people suggest we would, we would not be where we are today. It's another hygiene factor to have a reasonable margin to prevent you from doing stupid things. But the main target when the first 2 are fulfilled, is growth of EBIT per share, and we choose per share by intent because some I wouldn't do it, I'm a large shareholder, but pre -- successful of me might be tempted, and there's quite common that companies buy each other for the ego of the management board than the use of the shareholders and there you buy your own shares is not even visible and you do stupid things for the shareholders. But the ego of the management grows. You can't do that if you have a target of EBIT per share because then what you buy has to be at least as good as yourself. That's why we have that point. That's our main target. That should be above 50% counter over 5 years. It's currently at 121%. So well above that. If we ever are going to change any measures or targets, et cetera, we're not -- we don't do that very often. It would be the third one we change. The main business lines of Sectra's Imaging IT that Marie is heading. And IT security, which we will not discuss here. We'll have another capital markets for that in this fall, headed [ Mansco ]. Actually, the cybersecurity now is our, by far, fastest growing area. It grows a lot, not the least because security situation in the world is a little concerning, but also because we have a very good management there, and we have maturity in our product that we developed for many years. But we'll not discuss that further here. I will discuss a lot on this session about nonfinancial things, and that's a little what we do besides imaging IT, which is the main business. What do we have as growth opportunities? What will become the big things going forward long term. And we have a few of those organized in a unit call business innovation. Medical Education headed by Johan? That is Johan? And if you want to know more about education, you can ask [indiscernible] also be a demo out here. Orthopedics headed by Gustaf Schwang, sitting there. Genomics, Fredrik Lysholm, sitting there, our newest area, and we have research and of Claus Lysholm research management is not here today. Mainly doing research in AI, AI for medicine. And then we have a lot of growth opportunities that we do not discuss very often, but I will mention here inside Imaging IT. And that is pathology, for instance, [ Elaine Sinais ] is not here. She's managing that, but that's microscopy, which is another type of images come back to that. Cardiology, Bjorn is here. Bjorn Limber, heading Cardiology, another type of images. And we have AI platform headed by [ Nickel Braemer ] and she is actually in the U.S. So she's not here either, which is app store for AI applications. I'll come back to that. We did a strong performance in all operating areas and in all the markets, which is nice. We are rapidly transitioning to sales as a service model, and you will hear a lot about that today because that's been going on for several years. It will go on for 1 or 2 more years as well. And that's a tough thing to change because you lose all that nice front-end income and you spread it out after a few years, it's better but during the transition, it looks not at all as good as it would have looked if you continued in the old way. We are growing a lot. We had a very large order intake, especially in Imaging IT and communications. And we do have high customer satisfaction, as I discussed before, the past year. This is an interesting, if you get paid per exam, which we do. You get paid for every exam passing through. The number of exams need to go up, is going to grow. This is the number of exams. And this actually tells more than the financial figures now because the change of business model kind of put that initial thing and flatten it out goes forward. But this is actually what's going to pay it. And you see there is no flattening out there. We are growing a lot. We do -- in the world, it's typically so a little more than the U.S. In U.S., they do about 2 regulate procedures per capita per year. In Sweden is a little about one. Most countries is about 1. So each capital -- it's first in the country generates about 1 radiology exam per year. This is a gradual only. And that means that we are act as a primary radiology system for somewhere between 110 million and 150 million people, which is quite a lot of people. So if they go to a radiology exam, we take care of the images. Or an interesting fact, we do about 4.8 exams per second. So 4.8 final examples done by radiology saying good or bad, what sees each second, day around year around. This is per country or per sales group. And you see that there is not a coincidence that [ ISAs ] here from the U.S. is by far our largest market. About half of volume today is in U.S. and Canada. And then we have the other countries of which U.K. is the biggest one. Partner sales is increasing a lot. And partner sales is interesting. We sell through distributors in countries we do not prioritize highly or we don't see we can afford to go into ourselves. Sometimes, we buy our distributor after a few year. That was the case in Denmark. That was the case in Netherlands. Both of these distributors, we acquired after a couple of years and we're now doing very well in both of this. But we have distributors in the Middle East in a lot of countries around the world. That is quite interesting business with that's still an income per license sales in the beginning. We will transition to a service as well, but it's not there yet. Growth comes from 3 factors: adding new customers, of course, normal growth, no growth by selling more. But we also grow with our old installed base because health care grows by itself, people getting sicker and sicker and older and older. So they grow 5%. So we'll also grow with our installed base. So our growth is double, both selling more, but also that our installed base is growing and do more patients. As we get paid per exam that's I think it increases our income. And then, of course, if you are selling as a service, you cannot lose customers. We have a very low churn about 0.5% which -- that's an average stay time each customer 200 years. So 200 years later, they will still be there. But that's, of course, joking a little bit. But it's very low. And that's important because if you lose customers, that Software-as-a-Service model become a bad business model, but we don't. Example of growth outside of the main business. So I will not talk about Imaging IT, Marie will do that. But I will talk a little about kind of the little seeds we have here and there that I spoke about and just brief. All of these that I will now mention will not make it, may not make it, but some will. None of them are small. There are opportunities. We are like a greenhouse. We have good ideas. That's where we use that extra margin about 15% that's invested in these future businesses. And so far, we've done great. All have revenue, all have positive growth. Sorry, about spelling error, I did that yesterday, and late. I will start with medical education. Medical knowledge, and that's interesting. In 1950, the doubling time of medical knowledge was estimated about 50 years. So if you came out of medical school you knew a lot of -- 50 years later, you needed to know about double as much in order to practice medicine well. And that's a lifetime, right? What you learn in medical can you keep the rest of your life. But things are changing. 1980, it was estimated to be 7 years, the doubling of knowledge needed to practice medicine on some form doubled in 7 years. 2010 estimated 3.5 years. 2075, 73 days. So today, so much research is done in medicine that in 73 days, 2 months, a little more than 2 months, the medical knowledge needed to practice medicine doubles. That means your knowledge when you leave medical school is already obsolete. That's created a situation a little like us engineers. You have to relearn. What I learned in University people even know the name of it. I said [ Fortran ] they look at me and say, "Well, that's a cap, something." It's the medical professionals are coming into like we, in engineer, I've been for a long time. They had to learn a new. And this creates both areas where you need to learn medicine from the beginning. But also continued need to renew your knowledge. And that has created an area, a market that's growing very much for tools, and we have now in imaging under Johan, a portal, educational portal we can subscribe to. You can also have those large tables that we have shown historically. We can teach patients. It started with autopsies because it was difficult to find people, who wanted to donate their grandmother to be cut up by students these days and still do it, but not as many. And we have a -- when you learn in universities, you cut up 1 patient or 1 person, a corps, you learn how that corps was but you don't learn how the variance are. If you have it all digital in 3-dimensional and we'll show that here, you can see that you variance diseases much better for learning medicine to the game. We started there in the initial medical school. Now we have expanded into both teaching our customers in it That if you want to do the latest and the greatest in medicine, you now have photon counting CT. How can you use those images. And we have a portal that international -- it's our first real cloud business we did and definitely our most international business. These are medical schools or universities and clinics around the world that use systems. And that's the only thing we have in China, for instance, and we're all over the world in South America. The interesting thing is that students do this, in Sweden, please don't say we're going to do an auto or anatomical lesson. They say we're going to do a Sectra lesson. Now 10 years, 15 years from now, there will be the decision makers. And they will have seen Sectra in their entire basic training. That's a huge synergies there. The growth is good. This is only cloud business. This is the revenue per year, the growth. And this is the usage, incontinent number of log-ins and you see every of these curves is the growth per year. And in March here, you see that the growth is quite large. So this -- and they pay per month or per usage as well. Not super large today, but it's very interesting because this need of continuous education will continue and grow. There's also a lot of synergies with especially emitting IT. Orthopedics, we have a special -- remember the old people's diseases, we'll tick them off here, musculoskeletal disease. The challenge here is that 1.7 billion people have musculoskeletal conditions. I guarantee that some of you have a piece of metal somewhere. And some have a lot, my mother law she has changed everything both hips or one shoulder. And this is -- become a replacement people to some extent, right? It's a leading contributor to the disability and disability is expensive. 30.5 million orthopedic surgeries annually done over the world has a lot. And 30% to 40% of all medical imaging is used for musculoskeletal disease. It's the third largest health care costs on the planet. We do preoperative planning. So what prosthesis, there is like 60,000 or 100,000 different prosthesis available, which one should go into use when you need one. So when my mother got the prosthesis her leg ended up like half an inch shorter than the are a leg, but she was happy anyways because she didn't have pain anymore. Now the people who get the new hip, they're going to run a marathon next year. So the demands on having exactly the right prostheses going up. And we do planning for that. We do follow-up after that the growing in a very interesting area, because you don't want to replace the prosthesis, if you can avoid it. It's very complex and for men, quite dangerous operation. When you take out the lower one and sit in -- put in a new one. And we have special tools to detect, so you don't do that unless you really have to do it. It's the estimated growth per year is about 6% for orthopedics as a whole. And the usage in our environment is quite good. If you look at the last curve up there, 3D plans as a new, before you did that planning and what procedure should I put into this patient, especially, we did that in 2D. So it's a flat image. Today increasingly due in 3 dimensions, much better because it's 3 dimension body, right? And you can have -- we have all these plans or the templates as CAD drawings from the vendors, and we can plan to you as a patient get exactly the best procedures you need. And 3D is in use, and that grows a lot right now. We're doing 30,000 per year and we have about 5,200 active users. And then I'll come to genomics. The challenge in genomics is that in cancer, especially the use of genomics and planning for or sequencing is -- the survival rating cancer has gone up tremendously. Anyone here above or my age or above. No, I think everyone else knows someone who died from malignant melanoma for instances. Malignant melanoma skin cancer. It was almost 100% deadly disease only 20, 25 years ago. Today, 65% survived 5 years when Malignant Melanoma. It's enormous change. That has been made possible by precision medicine and immunotherapy, which means you actually use your own body's immune response immune defense against the cancer. You teach your own internal police to fight the cancer instead of just trying with chemo stuff. But then you need to know what cancer is and what immunotherapy will work, and which will not. That is increasingly done by DNA. See you measure the DNA of the cancer, which is called somatic genomics. We were contacted about 2, 2.5 years ago by one of our customers, University of Pennsylvania in the U.S. who wanted help because the volume has gone up so much that was intenable to continue. I mean they kept track of the mutations. And in the old days, I have a friends oncologist. She said that 20 years ago, 5 mutations. Most people have heard of the BRCA gene. The BRCA gene is a bad thing if you're a woman, it will with very high probability cause breast cancer or ovarian cancer. So if you have the BRCA gene, you need to know it and it's inherited from the female side of families. And most women who have that gene will take away both breast and ovaries [indiscernible] preventive reasons. But that and a few other genes. Now it's like 500 genes you need to keep track. No human can keep that in the head. So you need tools for doing that. You need tools because it's becoming production. Perhaps you did 5 sequences per week a few years back. Now you do hundreds or 500 per week. This area needs industrialization. And that's where we're good at. We are doing industrialized medicine. And it sounds like hard and bad, humans can -- but what is industry is doing the same thing with predictable quality at the lowest price possible, lowest cost possible. That's exactly what medicine has to go through. Otherwise, we can't handle with that demographic situation. We need to industrialize medicine, high -- best possible and predictable quality at the lowest possible cost. And this area is exactly there right now. It's growing like crazy, and it needs to be industrialized. The growth drivers is increased usage, as I said, more and more cancers are sequenced, almost all. Some very famous institutions, they sequence everything, everything that comes in. And you need to reduce the cost. You need to get the speed up, and it's very seldom acute, except for a few -- very few cases. This is a thing that can take a week or 2, but it's a very rapidly growing area. We were contacted by University of Pennsylvania on this one. They asked us, they had a homebuilt system that they have built by a doctor. But that's scary if you're a big hospital, right? These PACS by bill. If bill is run over by a car or a bus, it's a bad thing for the hospital. So they want an industry partner to build a really productive system for them. And Fredrik ran that group in 1.5 a year we build something and that they are now been using almost a year, and they're very happy about it. It doesn't do everything in genomics, but it does the industrialization workflow very well. And you see that estimated growth in genomics is 10%. It's a big underlying growth as well in addition to the growth that we will have when we begin to send there. Amplifier. That's another of those of new things. The challenge here is that there are thousands of AI applications for medicine. It's not ChatGPT; it's image analysis and other things. Our ChatGPT is coming as well, but not -- that's not what we are addressing here. We're addressing things that can detect cancer or detect disease in images that help out the medical doctors. Rapidly growing demand, difficult business case because each of these companies, thousands of companies around the planet, very smart, very well financed, but they cannot afford to do the sales call because they get so little per procedure that the sales call will take their revenue for 5 years. So it's very difficult. They need to have other channels out of the customers, and we are already there. So we said that instead of building all that knowledge and competing with thousands of companies, we build an so-called App Store that you all have for your iPhones and Androids and sell it to them. It's also integration complexity when you get such a system in, just to get access through the firewalls of hospital takes forever. Administration, how do you invoice so small sums in a reasonable way for a hospital. We include that in Sectra One. And this is a real high-growth area. It's 35% estimated for AI use in medicine. And we only do the App Store part of it, but we charge a percentage just to manage the invoicing and installation integration in this area. Today, we have more than 100 AI applications in Radiology, Pathology and Cardiology and we have about 40 partners providing those through us. And that, of course, makes life much easier for the hospital. They only have invoice, however many of these they use. And these customers -- this is quite a new business. It's not as spread out yet, but we are growing. And some of the famous ones are Barnes-Jewish in St. Louis in U.S., Greater Manchester in U.K., North East London; big, big customers, Northern Ireland and Region Copenhagen in the U.K. and then smaller hospitals in different places. The amplify usage per month, note that the scale on the X-axis is one per year over here and then it's per month. So it's a linear scale on the x-axis here. But you just see the last year, you see the growth is very large in the usage of this area. It's part of the PACS business. It's not a thing that is a unit that we make money on all by itself, but it's a very strong argument for buying the PACS business for us because we can provide this from anyone. Digital pathology. The challenge there is the microscope needs to be digitized. There's a lot of benefits, workflow and cooperation. They want to ask the colleague. And they want to work from home as everyone else wants now and then. Telepathology and working from home, as I said. Teaching, teaching pathology has been looking at a microscope and then they tell the student, look because there's only one, right? Now there are multiple head microscopes but not many. So how do you discuss when you have to explain, look there under the lower right of the corner. You can't even point to what you mean. So for teaching, this is big in pathology as well. And we have teaching in the education portal as well. So you can have a thousands of cases that demonstrate for students how it's done. That can only be done in digital. High need for AI. This is probably one of the biggest areas for AI because it's a lot of boring tedious tasks like counting 200 cells that have a special structure or a special color. That can be done by a machine in milliseconds. Very large data size. It's not easy. This has to be built like Google Maps. You don't have the entire map of the entire planet that they're scaling your phone. Your telephone speaks to the big service and get exactly what you see downloaded, and we built this in exactly the same way. Image viewing is completely different from radiology, but the workflow component is very similar, which meant we could take a lot of things from radiology and just reapply it in pathology. We change the viewer. And this is a good thing for hospitals. We're in pole position. We got -- Sweden was a pioneer country in the world on this. We were awarded to build a demonstrator that it could actually be built at all. These images are huge. We did that with the research team. Sectra and Sweden lead, we are -- we have almost all installs in Sweden, not all, but most of them. And we lead the market here. And Sweden is by far the most digitized. It's a little like mobile phones was in the beginning. Sweden is trigger happy, right? We like new things, that cannot be bad. Sometimes it is bad, but then we change our mind after a while. But it's an easy market to start new technology. Rapid growth in almost all countries. And we moved it from research into imaging IT because it made more sense. It's more of a package that fits into imaging IT with all the infrastructure we have there. We are the only vendor with pathology and radiology in the very same system, and I'll come back to that later. The number of IT systems is a problem for hospitals. They have too many IT systems. It's too expensive. Now we can reduce them at least one just when you have pathology and radiology into one system. And it's very often is that we go in with either radiology or pathology, customer is happy and then we get all of it after a while. This is where we are today. This is number of labs. It's a very early market in the U.S. because the FDA was a little slow about approving this, we have very interesting growth in the U.S. as well now. And as you can see, in Korea, for instance, we have 14 installations. And in Korea, we couldn't go in with Radiology. They have a good local vendor. But we can come in with Pathology, same in France. And then, of course, we can add up with more ologists later when they want to buy Radiology as well because it's the same system. This is the growth we see today, and this is viewed images per month. And you see we're up there around 3 million, 3.5 million images viewed every month in our systems, heavy growth. Little about cardiology and other of those disease areas. Cardiovascular disease is the single leading cause of death in the world. It's about 2x as much as cancer, the single largest health care cost in the world. And you need a lot -- you use a lot of images in it. It has been special systems dedicated for cardiology before. But now we have it in the same system as everything else. Cost in the U.S. for this disease is to predict it to quadruple in the coming 2 decades. Because what happens is that new technology decreases mortality, but the aging populations compensate for that and more. So it's a growing area of concern for this society. And we have special units. And again, we run it in the same system, which is very beneficial for most hospitals. They do not want so many IT systems. And there's a lot of correlation between genomics and heart disease as well because the cardiologists want to see the risks of these different diseases, and they see that on the gene profile of people. The current state, we have been working with third parties earlier in this area. But now we are building more for ourselves, and we're building it for the cloud from the beginning. Focus on the daily workflow, and that's what we're good. We are industrializing things, right? We're making production go up. We're making it efficient. The very esoteric thing you do on one patient per million, we will find a partner for those, but we do the production. And we are very flexible to adding other subspecialties. With that, my session is over, this one. I just want to go through and show you all of the interesting things we are doing. All of these are selling today. We have other ones are not selling. We're not discussing those. Every one of those is bringing in money today. They are various stages, everything works. And with that, I will leave the word to Marie, who will tell you about the largest areas -- largest area, which is imaging IT, which is mainly radiology, but also pathology.

Okay. Thank you, Torbjorn. So hello. Nice to see you all. And I'm so happy to tell you a bit about Sectra Imaging IT Solutions. And today, I will have the opportunity to talk a bit about the organization because I see the questions beforehand. And there was a lot of people wanted to be more educated. What do you do? How do you deploy? I mean, how do you sell it? What do you do? In what countries are you? So that's what I'm going to focus on today. Yes, Marie is my name. And I've been working at Sectra a very long time, almost 30 years now. I surprised myself, time flies when you have fun, and I have fun at work. I joined Sectra in '96, so that was a long time ago. I always had been working with health care. I have a computer science, and that is my background, but I was interested in medicine as well as Torbjorn chose between these 2 areas, and I can combine them. And before I started at Sectra, I was working as a developer and working with EMRs, medical records and developing them. So it's always been my interest and driving forces to do something good for society as well. Yes, I'm a member of the Royal Swedish Academy. I'm proud of that. But unfortunately, I don't have time to spend that much because traveling is taking a lot of my time, and I should travel because we have, as I will show you, people out there serving our patients and our customers in many countries. Yes, Torbjorn talked about KLAS, and I also -- I'm super proud of our KLAS award, super proud. I personally go to Utah together with some member of my team, including Isaac and talk to this KLAS, the Institute KLAS, and they tell us how -- what we have done good and what we maybe could improve the trends. We listen carefully to this every year. They also go to our headquarter in Linkoping. And this year, they were there and we focus on, in this case, Germany, DACH, U.K. and Sweden and listen to them and what the customer says. They interviewed thousands of customers, and we got their comments regularly that all vendors can get this. So this is not only Sectra. And we really listen carefully to this. So this is something I'm very, very proud of, and I'm eager to keep and work with our people, so we understand the importance of this. I'm going to start with current state, and I think Torbjorn mentioned quite a lot about this. Enterprise imaging. Yes, we were super early out with this. We started a long time ago. Although I don't think we have reached the market totally with that message, we could do much more there because we are unique in having one platform with all of this there in one place. They don't need to go to different workstations or users. They don't need to draw menus or spending time flickering in between. We have one platform for our products. The second one with the big trends that we see is Digital Pathology taking off Again, yes, Sweden, we're early out, but now it's taking off in U.S. and all the other countries, super important. And Isaac and his team will have a good job try to sell that to our U.S. customers. Brilliant workflows. That's something Fredrik Hall will talk later about when he talks about product, at least a bit to hope. This is important. And that was also something we understood very early because if you're going to be efficient, you need to have the right workflow, not clicking in around, not looking for new features; it has to be there for the customer, for the end users. So it's easily to find and also that we understand in what way they're working through our products, so we can confirm and optimize our product accordingly, very important. And that's something we focus a lot about. And Lisa here, she's an expert on that one, yes. Consolidation. This is going on. Not only in Sweden, we are consolidated. In U.S., there were thousands of hospitals. There's still thousands of them, but there's not that many because they form groups, private groups change or they go together into one hospital. That's what's happening is we see it in U.S. very -- coming very strong and it's there in the middle of it, but it's also coming in all countries, even in Germany, where there's many midsized hospitals, they form and start building groups. That's perfect for us because our platform is built in a way it can easily scale out and add on new sites. That's how we built the whole architecture. AI. I don't even need to mention it, is essential. But for us, it's not only in our products, it's also how we work internally. I'll talk a bit about that, how we can use AI as a tool. And then, of course, as Torbjorn said, Software-as-a Service, this has been a paradigm shift in our organization. It's not easy to go from delivering licenses and the customer take care of the platform, you don't have to bother when you have delivered the licenses, install the training, you don't need to bother that much. Today, we have to be there for a customer, 24 hours a day every day in a year. Every minute, we have to be there for the customer. We are their IT department. Delivering a SaaS, a service is something completely different from delivering licenses and then going back now and then. We have to be there. And I will talk a bit about how we work together with the customer regarding this. Numbers of exam, yes, Torbjorn show it as well. I just want to show the growth. And you can imagine, our job is to make sure that these users, we have more than 350,000 users is in our universal view, meaning the labs and the techs and the referring physicians, and we have more than 300,000 users in a diagnostic workstation. And our job is to give them tools so these people could be effective, can be effective and serve the patients. That's our job. It's quite a few. They serve, what this is, 160 million patients. So we made them make sure that they are effective, and that's the job. And I'm going to talk a bit about how we do that. We have, since a couple of years back, we formed in 3 regions. One is Scandinavia, one is North America and one is rest of the world. And where we don't have our own subsidiaries, we work with partners in certain chosen countries. We have a big world. We're not everywhere, and we have picked the regions and areas where we think our offering and our product fit the most -- the best. That's how we pick this. And in places where we don't have our own subsidiaries, we work with partners. And we have around 20 distributors, partners in 26 different countries, serving more than 400 customers and handling also a lot of exams annually. And in parts, even in U.S. and in Canada, we could work with partners, and they can take the customers that we don't think we have the perfect fit for. They could be too small or something like that. And then we work with partners and we cooperate with our partners. So that's how we can do this. And we really believe that this is a strong growth potential in areas where we don't -- where we decide not to have our own subsidiary and also when going cloud because it's easier for us to control that the core for our products is okay, it's safe, it's set up in a way that we can, well, guarantee the quality and the partners can work with the end customers. That's a way of us -- a way for us to grow. And I think we will see more about that in the future. Highlights in North America. I will not mention much about U.S. because that is Isaac's job, and he's doing this very well. But I will talk a little bit about Canada. I think most of you know that we have a recent win in Quebec. That was a big deal. I mean the biggest we ever had. We're starting up very good. I was there myself just a few -- 2 months ago in Montreal and talking to the customer. And when you're running these projects, and this is what I will talk a bit about as well, you have to be extremely structured. You cannot handle such big sites and go into the customer, "Hey, how do you think we should deploy this project?" You have to be super structured. You have to have good methodologies. Otherwise, you will not succeed. We also see there is more coming up in replacement sites coming up in Canada. And as KLAS said, they have never seen such a fast replacement market. And today, we have a very good position, I would say. Our brand is good in Canada. So this is what we have today, 14 installations, where we had 12 on-prem and 2 cloud. The latest one is cloud installations. We serve today 4 million patients, and that means approximately 8% of the market today. But with Quebec, so this is before -- but today, when we have Quebec starting the installation, we're not yet there. We have started it up, but we have not yet brought in that many patients. We have 3 cloud, where we have a super big one, means 12 million exams. So now together, we have 16 million exams in Canada or soon we will have, where it means that we're going from an 8% market share to a 30% market share. So it's very good, and we have a super good team in North America cooperation with the U.S. team as well. So we can share specialists, we can share the burden and we can help out when we have peaks. And Canada is run by our President for Sectra Canada, Nader Soltani. Highlights in Scandinavia then. Well, Scandinavia is a home market, as Torbjorn mentioned about [indiscernible] and all this. I wasn't there at [indiscernible] time, but I was almost there, the other ones. And we just have a very -- well, it's not 1.5 years. We won Region Hovedstaden in Denmark, Copenhagen, and that has been a very successful product. It's very fun to run it. And these customers is super happy as well. So we see that there's still growth, especially in Denmark, but there's also a lot of add-on sales in Scandinavia. Most of the sites has radiology, maybe something more orthopedic they have usually, but we have ophthalmology, cardiology. There's still a lot of things to do in the Scandinavian market, even though that most of them have our radiology products. All new sales, I would say, in Sweden, we know there has been cloud, but our private cloud. We have 2 platforms, private and public cloud. I think concerning the climate, the global what's happening in the world, this could be maybe quite good to have already had 2 platforms, both private for Europe and then the public one. You never know what's happening. Anyway, in Scandinavia, we have our private platform. And most procurement, of course, in Scandinavia is European Union procurement. And that is complex sales, and I will get to that as well here. When it goes to rest of world, we have 6 countries, U.K., DACH, France, Benelux consisting of the Netherlands and Belgium, Iberia is mostly Portugal, but even Spain and then Australia and New Zealand. So that's the 6 country. We call them Rest of World. We are a market leader in U.K., and I will show you some numbers soon there, Portugal and the Netherlands. We have a very fast cloud adoption in U.K. U.K., NHS that decides what they should do there. And they have been quite strict. First, they say okay to private cloud and now they say, okay, for our public cloud with our preferred partner, Microsoft. So NHS give these directives, and we can act accordingly. So they were early out as well as Scandinavia with cloud. In DACH, meaning Germany, Austria, Switzerland, Belgium, Spain, Australia and France, we see a huge growth potential. We're not the market leader there. We have a way to go to get there, but we have a good position and we have a good brand in these countries as well. And when I just mentioned it before for Scandinavia, most procurement are European Union procurement. That means quite complex sales. It takes long time, tough to sell. But when you have got the sites, it's long-term profit. And also in the Scandinavian countries, we have our RIS. So that means we have a very broad solution. RIS is Radiology Information System that control and administrate not only -- it's not only the images, it's also the -- yes, the referrals and the request and whatever goes with it, the booking and everything. And that is needed in the Scandinavian countries, that makes a very even more complex sales with a broad offering from our side. Then just 2 examples. I think the clock is, but I think I have some minutes to go. 10 minutes, yes, good. U.K. and DACH is just 2 examples of how we are positioning ourselves. As you can see, in U.K., we have a big share of market in radiology and even more in pathology. So there's more to do, but we have a good market share. If we take another country then, Germany or DACH Germany and Switzerland. We have a quite small market position in Germany, as you can see here. Switzerland, a bit more. The pricing in Switzerland is higher than in Germany. But here, we have a huge potential. We just -- we changed leadership there for a bit more than a year ago. So we have a very strong leadership and today in Germany, a good position with a good brand. So that was our operations in the different countries. And how do we do then when we install? How do we work with our customer? First of all, we -- when we grow, we realize, and that's also something KLAS said to us, you need to keep the close contact to your customers. You cannot lose that when you're growing. So we form portfolios where a dedicated team work with dedicated customers. That makes it possible for our team to get to know the customer and know a bit more instead of having -- and the customer when they call us or mail us or chat with us, they don't get a new face for every call. They get -- we know them and we can plan for them. We can be there with them. So that was a really big change for us forming these portfolio teams. And we do that in the same way globally. We work with the same process, the same methodology, and we have the same kind of organization, almost, not exactly, but almost. And that is we can form our quality systems accordingly. We have framework for how they should work with the customer, how often they should talk to them at least regularly, which report they can use to see that the performance are okay or there is any trend that performance goes up and down, whatever. We can see how they use our product and help them. And we have customer success managers that work with the customer and have discussions with them regularly say, "Hey, we see a trend here that your performance is getting a bit slow, what can we do about that? Or it seems like your people haven't gone on training, what can we do with that?" So that is something we work daily with our customer with. Yes, and have this meeting. So what the trend we saw when we introduced these portfolios in U.S., KLAS, again, said to us they have never seen such a big change. The customer was even more positive. And it was really going up like this because they felt that we know them even though we were growing because earlier, we saw that there was a downgoing trend that they thought we were in not that personal anymore. They didn't get contact with us, and that's totally changed since we introduced this portfolio. We started with that 2021. So I say in U.S., we are totally done there. And we are working in all countries, we have that, but some has been a bit slower than U.S. we have something -- when we talk about customer success and how we work with the customer, we call it the Sectra One journey. It starts when we luckily get a deal, sign a contract with a customer. Then we look, how do they look like? What can we do with this customer? How should we start deploying this customer? So we have our best practice we work according to and we have blueprints. And say, 5, 6 years ago, we were more open when we came to a new customer and ask them, how do you want to work? Now we use the experience and the customer ask us to use our best practice, our experience, so we can make them as effective as possible because as Torbjorn said, that's what matter. You have to help them be more effective. And then Fredrik Hall and his team could also steer. So they're doing our product accordingly that a certain workflow fits best for our customers. So that's what we do a lot. So -- and then this is a wheel. We do the upgrades. We're coming back. We talk to them regularly. That's the Sectra One journey. We're with them all the time doing this. The future state then, we have 3 pillars. We work with OKR, Objective and Key Results. One is sustainable growth. Whatever we do, we cannot grow that much that we lose quality. That's number one, super important. Customer success. Whatever we do, we cannot lose our customer satisfaction. And the third one is cloud first. We need to go to a SaaS organization. We are already there. We need to continue working with it, and we need to get our customer on cloud, all the current customers as well. So Yes, that was one. So we also have a 5-year vision, that is mainly internal to keep -- to reach this goal, we need to guide our people. We are quite money. We're more than 2,000 people. How do we make sure that everybody running in the same direction? You need to have goals. You need to have goals for each country, for each organization, each department. And this is a 5-year vision we have. This vision is made internally because we could have said money, but we had took a goal in double the number of exams. It could also be, and that's what we really mean, help twice as many patients because that means something for our people. That's what they're running for, that's what they care for. And according to this, you can see it's going better than we even expected to help twice as many patients because that's what it's all about. We also have a wanted state. Where are we going? We are going to help large organization. That's what we're focusing on to be as effective as possible. That's our wanted state. And this drives the goals we have. How do we get there? You cannot just say we want to be there. We have to have measurement and we have to have initiatives so people know what to do. And that's something we work very hard with. So this is a wanted state. And when it comes to our product here, SaaS is, of course, our future. That's the platform. Amplifier, yes, of course, we need to continue working with that. And also understanding how our customers are working in our product. I think you will mention a bit about that, Fredrik, yes, that we see the usage. Are they doing it in the right way? Are they using the product in the wrong way? How could we help them to be more efficient? That's they want to state in the strategy about the product. When it comes to technology, we need to use AI, of course, not only in our products, but also when we work with support, installation, automation, whatever we do. Customers, we have -- we focus today as in U.S. and Canada, all is cloud customers. But we also need to convert our on-prem customers. We have hundreds of customers that needs to go from their on-prem platform to the cloud platform. That's the job we have planned for, and we're starting that journey to help them and make plans and structure a process to reach -- to help them go cloud. You cannot take them one by one and do it differently. We need to have a methodology there as well, and that's what we have. Well, 2 minutes, Yes, I'm done. Thank you. It's so fun to tell you what we really do because that's something I'm super proud of. And whatever we do, again, we cannot lose our customer satisfaction, and we have a very low churn today, and we want to keep that. The customer journey, I told you about the Sectra One journey. We need to do similar processes with all our customers. Otherwise, we cannot control it. Otherwise, we cannot do it in a good way. We have to do that. And that's why we have a global and aligned organization where we have a matrix organization where we have specialists all over the globe, but they're working together to form this. Yes. The last one is Tire SaaS. Again, we go into a DevOps organization and again, cross-functional team. So according to product, yes. Technology and AI needs to go together. We need to handle our customer in the right way, and we need to know where to go. Otherwise, we will not get there, right. So to summarize, global organization, efficiency and best practice guides us and our customer, so we can help them be effective. Sectra One Cloud, which Fredrik Gustavsson will talk more about, is the business model we use. So of course, you cannot have different contracting on different legal agreements for all our customers, there will be a mess. And least but not last, customer success. So together, Patient in the center, that's what we care for. And there's a lot of new things we can work when you can talk about oncology, as Torbjorn said, you need all information available to take the right decision about a person's future, a patient future. Our job is to deliver these tools to the end users so they can help patients. That's what we're careful. That's what my heart is with. And who is building all these products and who decides what will be in these products, that is Fredrik Hall and his team, and he will tell you a bit more about that. Yes. Thank you.

We started our journey within radiology and breast imaging. That's where we grew up. That's where we came from. But over the years, we found that we can extend our platforms into other ologies, leveraging our assets and providing benefits for the customers from the heritage we come from. So growing that into pathology and cardiology and then most recently also into genomics IT. How does that relate to what we see in the competitive landscape around us? Are we the only ones that are seeing that this makes sense for health systems? Of course, not. Where I see us being different from the competitive landscape is in 2 facets. One is the width of the portfolio. As Torbjorn mentioned, there are things that we do that are unique to the market. No one else is able to provide the width of the portfolio, including pathology and genomics into the same infrastructure. That is something that is unique to the market. The other element is to the degree that this is all in a shared platform. So take, for instance, Fuji as one of the imaging IT competitors. They have one platform for radiology and cardiology, and then they recently acquired a company for pathology. So yes, they could offer pathology, but that's a completely separate platform, separate IT and infrastructure. Looking at Philips, one of the other big players in the industry, they have one platform for radiology and breast imaging, another platform for pathology, another platform for cardiology. So yes, there's a single vendor able to provide a wide range of IT services, but it's not a single platform. And I'll get back to some of the benefits that we do see for the customers of providing that single platform. So a couple of things that are possible to realize with one integrated IT platform for multiple ologies is increased return on R&D investment. This is good both for the customer and for Sectra. Let's say we're investing in improving the way we present the patient overview. We build that once, and we can leverage that benefit both for the radiology customer and for the pathology customer and for the cardiology customer. So these means that we get leverage for our investments and that the customer get more value for their money. Another facet is savings. As Torbjorn mentioned initially, there are significant life cycle costs for our customers in managing these disparate IT platforms. They need to make sure that each platform integrates with their EMR, that it is safe from a cybersecurity standpoint. They need to manage and maintain each system. They need to train their staff on each system. And all of that compounds so that if you're able to consolidate them into a single platform, these are pretty significant savings from a TCO perspective as they're able to consolidate these platforms. And these are some of the same rationales that customers are already used to driving consolidation of EMRs and creating cohesive platforms for the medical records. Finally, this also means a reduced time to value, and this is beneficial for Sectra in terms of getting our products into market, but also for the health systems. If you look at the alternative, for instance, if they want to digitize pathology, their option of procuring a completely separate system, designing that, integrating that, deploying that, training users versus extending and enabling a component within a system they're already used to, with the vendor they're used to, with the service organization they're used to. This will be a much faster and much more efficient journey for the health systems to take. So the first topic was related to providing that consolidated platform. Who do we try and provide those systems into? We focus on the largest health organizations in our market. We've shared that earlier that there are benefits of consolidation that allows our customers to service a larger patient audience. And we find that we are an excellent fit for those large customers. Today, we are leading in providing solutions for large customers. So in the markets where we're active, if you look at the largest health systems per those markets, you will find them to be Sectra customers. This is what we strive to do, and this is what we do well. If I look at the differentiation from competitors, I think this is something that influences what are the competitors that are able to service on a national scale or to the left, for instance, in the U.S., multistate actors that work on a large portion of the U.S. That's a difficult problem to solve. Not a lot of vendors on the market are able to address those customer needs. If we look in Europe and in New South Wales to the right, quite commonly, there's a demand to also include built-in reporting. And if you look at the vendor landscape of who's able to provide solutions on a national scale with built-in reporting, that's going to be a very short list. So what does that mean from a competitive standpoint? It allows us to differentiate and create opportunities for Sectra in the market in 3 ways. The first one I've already touched. This is a high bar for competitors. It means that the bargain basement companies that primarily compete on price, they can't service this segment. It means that the providers that you do provide quality products at a nice market price. So this is something where there's fewer competitors and an ability for us to differentiate in an excellent way. It's also an excellent opportunity to upsell. If you look at a large geography or even a national installation, as they've consolidated on radiology and breast imaging, which is usually the starting point, when they see that the time is right to go from 30 different cardiology systems and try and consolidate those, this is an excellent area for us to upsell consolidation of additional ologies. So it's a great arena for us to work with and upsell towards those large installed customers. And the last part is, these form long-lasting customer relationship. Assuming we do a good job, we provide happy customers. These will be customers that are going to be with us for a long time, providing low churn and nice long-term revenues. Because if you do a good job, the political decision that those customers need to take to potentially replace you is going to be a very difficult decision to make to drive and organize a reprocurement from a system that works on a national scale. So the last part relates to what then do we try and do for these customers. And as Torbjorn mentioned initially, there's a huge focus on the health care industry to try and do more with the resources they have. So I think the radiologists in the image over here looks fairly happy. Unfortunately, that's not too common these days. There is tremendous productivity pressure on all markets, scoping with increasing data volumes, increasing study complexity and diminishing payments and diminishing staff resources. So there is tremendous pressure to increase the productivity, which is an opportunity for us to help accomplish that for our customers. If we can be more successful in providing productivity benefits than our competitors, this is an attractive landscape for us. One of the ingredients for productivity is performance. There's an old saying speed is king. And I think providing top performance, there's nothing that frustrates users more than watching an hour glass just turn and turn. So providing top-level performance regardless if we're talking a thin slice CT containing 10,000 small images or if we're talking digital pathology with huge, huge images or cardiology within Bjorn's domain here, watching beating hearts circling at 100 frames per second in multiple views, you need a performance system regardless of the domain. Doing all of these things well, that's a high bar for others to pass and something that we have as a passion and a competence within us. The last part that Marie touched briefly is related to workflows. You can have the fastest car in the world, 1,000 horsepowers. But if you can't get it around the track, if you go off the rails in the first turn of the corner, you're not going to get much done. So being able to provide smooth workflows is perhaps an even bigger productivity benefit than the raw performance alone. So this is something that we invest continuously in. And if you'll have the opportunity to walk by the demonstrations, I'm sure that all of the workstations that we demonstrate will provide ample opportunities to show how can we bring productivity through efficient workflows. Now providing a full solution with built-in nice workflows doesn't mean that we do everything on our own, building everything in-house. It's a wide market with lots of specialty companies. And we strive to build the best solution for the customer. Sometimes that means that we build things ourselves. And sometimes that means that we partner with other vendors. So one recent example is that we are working together with Siemens that produces the top line CT machines in the industry to be able to do post-processing directly within PACS from their flagship modalities. Lisa will be able to demonstrate that if you're interested in the details of that. But this is something that is unique to the industry and a good example where Sectra and Siemens that could be seen as competitors work together to provide benefits for our customers and a more efficient workflow for the end users. Another example of this is where we've worked with GE that provide advanced visualization capabilities for the niche workflows, and we embed them into our product for the end users, that means that fewer clicks, highly integrated workflow and being able to access the highly specialized tools without jumping between workstations or between environments. So these are examples where we work with the other vendors to provide cohesive solutions for us -- for our partners. And this is an area where I see the landscape continuing to evolve. We've gotten very, very positive feedback, both from the customers and from the industry partners around wanting to do more of this. So I would expect us moving forward to identify additional opportunities where can we work together to bring the market forward, to be thought leaders in terms of how we accomplish these things for our customers and make more of this happen.

All right. So now we go into the next session, the demos. And Torbjorn, you rapidly presented the demo guys before, but I think you guys should stand up so you can be acknowledged and found out in the coffee room, where we will have this combined session, so to speak. And if you're not tech savvy, do not worry, Lisa tried me as guinea pig and even I saw some benefits to this. So I urge you to delve into the different solutions at the guys.

I work with your demoing is your own cardiologist. These are radiology that we have spoken so much about [indiscernible] but that's our main business. You want indication and Fredrik Genomics, right? We have many more, but we try to keep the numbers down a little bit.

And following that, we will have the touching upon some of the questions we had in the queue. And in the first Q&A session, Fredrik will cut it on the Sectra One and the business model transition. And following that, Isaac will attempt to the -- and more focused on the U.S. section, where we also will be technology provided. Hopefully, we'll talk to a real-life customer, Dr. Navarro from Kaiser Permanente, which is a great value for us, I think, to listen into. Okay. So mind the time, please. And enjoy the demos. So without further ado from the cinema bun to Sectra One.

Thank you so much, Mats. Yes, that was a good start of the day. So good afternoon. Great to see you all. My name is Fredrik Gustavsson. I'm the CTO. I had the pleasure of being with Sectra for some 12, almost 13 years now. I've been in the eHealth business for about 25 years. So I'm going to talk about the transition to cloud and services today. Torbjorn already mentioned some of that during his Q&A session. So I'll try to flesh out that a bit, give some nuances and talk about what that shift means, where we're at. And try to paint the picture on this very important step in Sectra's journey. So pleasure being here, hopefully have 15 interesting minutes. And so one of the things we did 4 or 5 years ago was to really try to simplify our offering and making something simple is very hard. And every day, we work very hard to make the lives of our users simpler and easier, and more effective and efficient. And so we do that with our business model, our service delivery as well. And so we did Sectra One. It's actually about 4 years, maybe 4.5 years from now. And that was the shift to a single subscription model where customers had an easier way of getting access to all that innovation and to the products and modules that we've been talking about. There's always a big success. It was very successful. Customers really like that. The big shift where we're seeing right now is that the shift to Software as a Service. And customers ask us for something that's really comprehensive, predictable, and scalable. And we're going to talk more about the shift to cloud services. But basically, today, when you're buying new solutions for PACS radiology. Most of our customers feel like, well, I'm not going to install this on-prem. I want to actually get this as a service. I don't want to manage. I want to go out and buy a hardware. I don't want to buy storage. I don't want to buy network switches. It's too complicated, too much effort, I have lack of resources. Can I buy this in a better way, kind of get access to this technology innovation in a better way. And that's where Sectra One cloud comes in. So it's the combination of the Sectra One business model that we started with, that was just for the software and then combination with cloud and Software as a Service. So I'll expand a bit on that. And I'll contrast a bit what some of our competitors are doing. Some of our competitors, if you may look at it and look at those margins, they actually take the software, sell that to the customer, and then the customers sort of have the fun task of getting that onto the cloud platform themselves, alright? That means that, that revenue recognition happens upfront, which improves the profit margin short term, okay? But from Sectra perspective, we don't think that's the best way. Our customers ask us for a service, not just software that then they have to host on their own. They want Sectra to help them on the journey, becoming more effective, efficient by using the Sectra software. So we think there is a fundamentally better way to deliver our solutions and innovation to customers. And that's by providing a comprehensive Software as a Service. We sometimes use the phrase one throat to choke. I'm not sure how politically correct that is, but it sort of really illustrates what it's all about. It's us taking responsibility to deliver a kickass service to our end customers. And if something has it wrong, we're going to fix that. And that really comes back to that culture that Torbjorn talked about earlier this morning, customer dedication, customer focus. And we can deliver much better service to our end customers. I think there's a fundamental economical perspective in terms of efficiencies that we should cover as well when we talk about SaaS and cloud. This is why we think it's a much better model of delivering our innovation and technology to customers. If you think about having thousands of customers in the disperse spread-out environment, think about thousand different customers, thousand different environments, okay? Over here, I do everything in the cloud. I can automate. I can really create efficiencies of scale. If we install in thousand different customers' environment or if I run it in the cloud, it's fundamentally different when it comes to long-term efficiency and profitability. So that's why we think the model that we have selected, it's a far superior way to deliver the services, both from a customer experience point of view, customer satisfaction point of view, and ultimately, efficiency and profitability. Customers ask us also for -- and we did have a bit of a chat over the cinema bun and the coffee, how can we take down thresholds for customers to access new technology, to access the education portal, to access genomics, to access digital pathology. And we're doing that by providing customers' access in our cloud solution by sort of taking down the threshold and saying you pay on a usage basis, whereas historically, they had to pay upfront for the software license, right? And also, if they were to start using pathology, they might have to go about buying a petabyte of storage. That's an upfront capital investment. When we were delivering a SaaS and a cloud service, we can say you can get started tomorrow. You pay for what you use. So we're taking down the thresholds. We'll let customers get much faster access to our technologies and services. And so the usage-based pricing is fundamentally also taking down thresholds, providing access to innovation and technology, and it's going to spur growth and scalability. All right. So we already touched on some of the reasons why customers are really moving to the cloud. And I think there was a question, what are the benefits or customers' testimonies in terms of efficiencies or benefits they've seen. These are a few -- these are three different areas where we see sort of really drive the adoption of cloud and basically the why. AI and scalability. So as I mentioned, the ability to scale when you have organizations that acquire other organizations and the ability to quickly bolt them on and to create efficiencies within radiology groups to share information and to really leverage that organizational growth. If you have to start buying hardware, setting that up, constructing, scaling, it becomes much more complicated in an on-prem environment. So a dynamic landscape, a cloud solution is far superior when it comes to scalability. It also provides access to AI, both in terms of Amplifier, which is our AI store that Torbjorn talked about earlier, but also new technologies such as augmentation through GPT and reporting. So the actual ability to gain access to a lot of that AI innovation right now also really connects well into that cloud story. And as mentioned, genomics is actually only available on cloud. And so all of this really creates a fundamental powerful platform for customers to grow on. And so it really gives them access to innovation, scale and growth. Torbjorn did mention security. The average cost -- and again, the healthcare customers are really prime targets. And so this is data from the U.S. The average cost of a data breach in the U.S. related to PHI or patient healthcare information is about USD 10 million. And through the combination of experience and know-how within Sectra on the cybersecurity side with a fundamental knowledge about how we develop safe and secure software in combination with also the capabilities that are exclusively available on the cloud platforms, we can create an offer that's as strong as it can be. There's never 100% guarantee, but there is really a tremendous difference between trying to manage that level of threat when you're on-prem and if you have a lack of resources. It's hard to recruit cybersecurity professionals if you're competing with the Googles, and the Amazon, the Microsoft, if you're a small hospital somewhere. And so that sheer leverage of size and technical ability really builds higher level of security into our offering. All right. Have we been successful? I really think so. It's actually to the point where 85% of the order intake right now is cloud-based deals. Torbjorn presented during the nine months year-over-year comparison, 44% growth over -- on the cloud recurring revenue. And so as you think about it, the 85% on the order intake is a precursor to revenue growth, right? Those are the contracts that over time will materialize into revenue. So it's a huge proof point that the shift is happening. Customers are really loving it and we're seeing a huge adoption in the market. Now how quickly will go? Will it take five years? Torbjorn said there is some differences in different markets, so it's very hard to predict, but the numbers are very, very clear. Another number I wanted to share with you is that when we compare software only versus our SaaS cloud deals right now and don't sort of take this as a rule, but on average, it's about 100% increase of the revenue for the total deal. So comparatively speaking, if we were to sell a solution for x, it's actually 2x, 2x when you add on the service fees for cloud hosting, storage and other services related to that. So it's a top line growth. And if you think about those economies of scale that I mentioned in the beginning in that 1,000 environments versus cloud environment, looking in the future, the efficiencies are going to be huge. Okay. Torbjorn also mentioned some of the changes that we've seen already and that we're seeing over the coming years in the shift in terms of revenue recognition. So I'll run you through an example just to sort of -- for illustrative purposes. We'll look at an example where we look at a deal comparatively speaking on the software only. And then for that identical software component, but in a SaaS setting, okay? So we're looking at a deal about $500,000 software and maintenance historically, and it's over six years. It just sort of rounds out the numbers in a good way. And what we're seeing here is that on the left-hand side, we see the revenue recognition for that traditional on-prem sale, where from a revenue recognition perspective, that first bump comes up, that first nice sort of set of revenues. And then there is a lower maintenance fee throughout the contract period, and that sort of continues in perpetuity, right? When we do this in a SaaS perspective, due to the fact that they are integrated performance obligations, the revenue recognition is spread out. So when you look at these different colors, the blue one is the on-prem sales upfront component, lower per year fee in maintenance. When we do this as a SaaS service, it's a higher annual total fee that sort of goes on in perpetuity. And there is a breakeven point at about 5, 6 years. Now I want to stress this is not adding the hosting components. This is just looking at the software component in isolation. And it may sort of explain some of the delay in the growth of revenue comparatively speaking to what Torbjorn showed you when the graph in terms of growth of the number of exams. Does that make sense? I see a few heads nodding at least. And this is actually the illustration of the breakeven level on that. You have the opportunity to ask questions later. So I'll leave that at that here. I want to maybe just stress again that this is software only and the treatment of that software in the on-prem version versus when we deliver SaaS or a cloud delivery model. Okay. Some other financial perspectives on the shift to SaaS. And so as you might imagine, the balance sheet effect isn't that dramatical. Customers are paying on a subscription basis. Generally speaking, they pay sometimes a bit upfront on a quarterly basis, and we have our payments to our cloud providers sort of sync up with that. So there is no huge effects on the balance sheet. We don't buy hardware. We typically grow this on a public cloud basis, I should say, and scale that as our business grows. So that's very nice. We don't make upfront investments on the cloud side. Cash flow perspective, we already started the shift to subscriptions 4 or 5 years back. So from a cash flow perspective, that subscription shift already happened. Now that revenue recognition perspective, though, shifts when we do SaaS, as I mentioned before. Profit margins without making any promises, I just want to call out again the question about economies of scale, managing today thousands of customer environments throughout the whole world versus managing a few cloud instances. That's, I think, a very much clear picture on where we're heading, both with existing customers and new customers. There is also a very nice sustainability perspective to add to this. And that's when we're moving to public cloud, we're moving into the modern, most well-managed data centers that's out there that has much less carbon footprint and environmental impact than any else data center. So we see this in the European market, some customers are asking us for environmental impact analysis. And so moving to public cloud really helps customers to also sort of respond in a positive way to what they do to contribute. Because if you run a data center on your own with the cooling and the power and the power requirements so that, that's usually much more ineffective than what you can do when you run these really large data centers. All right. So's that was a bit of fleshing out on Torbjorn's comments. I tried to add a bit of detail on the shift into Software-as-a-Service and the revenue recognition perspectives and some of the drivers. And I think with that, I'm actually spot on 15 minutes, and that was that. So thank you so much. And let me also introduce Isaac. We've had a great success in the U.S. and Isaac is the captain leading that team. So Isaac Zaworski, please. Thank you.

All right. Thank you, everyone, for giving me the opportunity to speak this afternoon. And I, as Fredrik indicated, I get the opportunity to give you a little bit of an update on how things are progressing in the United States market. So this is building off of what you heard from Marie, but then also touching a little bit on the business model transition and the product side of things as well. So first off, who am I? My name is Isaac Zaworski. I'm the President of Sectra Inc., which is our U.S.-based entity. I joined Sectra -- I'm the newbie in the group out of all of these, except for maybe Jessica. I joined Sectra just almost 4 years ago now, so coming up this summer on 4 years. And actually, before that, I spent the rest of my career in the defense and intelligence industry, got introduced to the American-Swedish partnership world through a number of previous ventures that -- joint ventures that integrated technology from Sweden with market demands and needs from specialized industries in the United States and figuring out how to scale them and bring them to market. So it's been a fun 3.5 -- for almost 4 years, both coming into Sectra and having an opportunity to get to know the organization, but also to get to know the market itself and the industry as a whole. My background is in mechanical engineering. I used to build race cars, but strangely somehow through various winding path, I've spent all of my career in IT, high-performance computing, and image processing to include some deviations in sandy parts of the world and all sorts of strange places. So as we look at the U.S. market from the Sectra perspective, really, I have the opportunity to have a very transparently positive and bright view of where we stand right now and what is in front of us. The U.S. market is not always the first to do anything. I think we've heard multiple examples here today where Scandinavia or some of the European markets have been ahead in their adoption of certain technologies and policies and approaches to problems. The U.S. has a long track record of not always being first, but when we decide to move, we tend to move very quickly and throw a lot of resources at the problem. And I think we're in the midst of several major transitions in the healthcare industry where some kind of long-standing alignment around what direction to take has kind of settled in, and we're now very much in the very rapid investment and transition curves, which is a fun place to be, particularly when you've established the foundation to work from that we have here at Sectra. And speaking of that foundation, this is not the first time you've heard this today and probably won't even be the last time that you'll hear it today. Customer success is the foundation of everything that we work with here at Sectra. And I'm extraordinarily proud of the team in the United States for the fact that the best-in-class awards this year represent 12 consecutive years for our organization in delivering that best-in-class customer satisfaction for our customers. That is -- it's always good to be on top, but it's always difficult to be on top in the way that you become the target for everybody else that's out there. So as Marie alluded to earlier, we invest an incredible amount of time and effort engaging with not only our customers, but also engaging with organizations like KLAS to make sure that we are keeping our eye on where the ball needs to go. And that has involved -- that has driven a lot of our strategic changes, which I'm also extremely proud to highlight, has led us to a place where not only is this the 12th consecutive year that we're best-in-class, but this is actually the highest scores for customer satisfaction that we have ever had as an organization. We -- coming through my tenure here at Sectra, we've gone through some major organizational changes where we set expectations with our customers that through those changes, the experience with us would take some time to stabilize. We had to retool our organization to be able to scale from a people perspective, from a customer perspective, from a customer engagement perspective. And so we're now, as Marie indicated, kind of on the tail end of many of those big organizational changes as far as the way we interact with our customer. And so we've transitioned through a dip that we knew would be coming, even though we were still on top, it was a dip in the overall scores. And we're now on the other side where we're not only trending higher and higher than we have ever been. But for me, this -- the fact that we got not a single score from a customer under the 70% threshold is one heck of a strong example of the level of detail that we go into with every single one of our customers. We leave no one behind. And I think one of the powers of the reorganization that we have undertaken is that it really allows us to get back to that small business level of focus where we have small groups focused on small groups of customers, so nobody gets left behind no matter how big we get or how many new customers we add. And add to that one additional piece of data that I'll share from the data that KLAS collects. This is a bit of information around all of the procurement decisions that they tracked, I believe, between the end of 2023 and the beginning of 2025. And a couple of things to note in this. Out of all of the procurement decisions that they tracked amongst the cohort of customers that are relevant for us, we are considered in half of the deals. And within those deals that we were considered, we won half of them, which is a pretty astounding statistic. You can take the half that we were not considered in as either we qualified them out as they -- we didn't feel that they were a good fit for us or they were organizations that decided to stick with their incumbent vendor or something to that matter. That's roughly where that is. But by far, if you look at us in comparison to the rest of the industry, we're being considered more often and we're winning more often. And couple that with a little column on the right-hand side that highlights the fact that now 100% of our customers, our existing customers view us as a part of their long-term plans and are not looking in any time in the near future to shift away from us, 100%. It's a heck of a stat. So what does the market look like today? We have 122 customers in the United States that represent many more hospitals beyond that. As of right now, the bulk of them are still our on-prem installed base customers. We have 7 active live Sectra One cloud customers. This has been a big area of focus for the new sales and deployment side of the world for us now. Of those 122 customers, that represents about 62 million annual exams that we are managing through active systems, which, depending on how you do your math based on volume, puts us at about an 8% market share in the United States. If we look at what is under contract, so this is what's signed in backlog being deployed right now in the near future. That number for installations jumps a little bit, 133 installations. You'll notice that, that includes some transition of some of our on-prem customers into Sectra One Cloud as well as continuing to aggressively add new Sectra One Cloud customers. But out of the 11 -- the net 11 new installations that are getting added here, that represents almost a 50% increase in the overall exam volume that we're going to be hosting in those live systems, which is, needless to say, not a small jump. And that will take us over the 10% threshold and up to 12% or thereabouts in the market. And this is just what's on contract right now that we're executing on. Needless to say, a lot of work is ongoing. And I will say that our organization is running very fast. I'd like to talk to my organization about the fact that we've spent the last several years to one of the questions earlier, working through the -- how do we manage all these organizational transitions, how do we get through the early stages of getting to a first reference customer for Sectra One Cloud in the market? And then how do we start scaling our ability to deploy those so that we can keep up with the demand from the market. And if we were looking at this in an analogy to a race at this point in time, I'd like to say that we've gotten off the blocks and our heads are up, but we are still very much gaining speed, and there's a whole lot of runway in front of us. Getting to the question of what's really driving the decisions in our favor in the market. You've heard much of this from some of the previous presentations, but really to put a fine point on it. Consolidation is a huge driver amongst the customers that we're engaging with today. You'll hear it again from Dr. Navarro here in a few minutes from the Kaiser Permanente perspective, but this is just true across all of the major health systems that we're interacting with today. They're investing heavily in commercializing their management and their infrastructure. And when you have new leadership coming in from frequently the outside of the industry, looking at the almost 2,000 IT systems that an individual hospital is maintaining, consolidation is very high on their priority list. You add to that the fact that we're dealing with organizations that are, in many cases, distributed across an entire state or multiple states, multiple time zones, where they're looking for solutions that can actually support not only the scale of their operations from an exam volume perspective, but actually the physical scale of their operations as well, which is a non-trivial problem to deal with. And then ultimately, it comes down to cost. So for them, our healthcare in the United States is under tremendous pressure from a cost and efficiency perspective. And so every decision that is being made is being made through the lens of cost control. And granted, the investment in us may not be directly cutting costs, but it is enabling efficiency in revenue-generating centers for the hospitals that yield a net return on investment that's quite significant. And that's where the Software-as-a-Service message really starts to resonate because once you have leadership in these big organizations that are looking more holistically at the question of how do we generate return on investment, how do we cut costs across the entire organization, then the message around Software-as-a-Service and the fact that you can remove some of these really tight pain points, generate efficiencies, allow us as a vendor to do the thing that we're best at while focusing your staff on where you're actually generating revenue, that message really, really hits home. So in that context, the Sectra One journey, which was referenced earlier, is a key component for us. So as I mentioned, the incredible volume of new work that we are bringing on and add to that the volume of conversion work as we start to look at that installed base of on-prem and recognize that we need to be able to get them over into our Sectra One cloud infrastructure as quickly as possible in order to recognize the efficiencies that we have planned on and that we really want to see out of these investments. We have to be able to run things very efficiently in parallel with as few staff as possible. And that's a challenging aspect. But through the work that we've invested in the Sectra One journey and changing the methodology for how we do things, we're getting much more effective at being able to empower the customers to do more of the work, to take more of a standardized approach where we can do things repeatably and efficiently, and then really focusing down on how we structure the engagement with the customer, all the way from contract signing, all the way up through their activation and go-live, but then the continuing customer success cycle where we continue to grow with them and roll out additional modules and generate additional value in a much, much more efficient and structured way. And that really truly is going to start to hit as we really build up some momentum in this transition process. So for us, I've set a very aggressive goal for my organization. I have the benefit of the fact that our market doesn't face any of the policy challenges that maybe Europe does in whether or not we can move to a public cloud Software as a Service. So I've been very aggressive with my organization in placing -- in ending sales for new on-prem customers. We did that last year. We're going to end sales for hardware refreshes for our existing customers in the very near future as a means of as rapidly as possible, moving all of our customers into this new model. And we've been very transparent with our customers and the response has been quite positive from them thus far. But it's going to be one of our key areas of focus certainly over the next several years. And that, I think, kind of brings us to the -- where is our North Star? Where is our -- what are we orienting our organization towards? And the answer really comes down to execution at this point in time. We've done a lot of -- an incredible amount of work internally in order to prepare the organization to execute at scale. And now we're really starting to pick up steam. And as the business model and the revenue recognition side of things starts to catch up with the usage side of the world that we can see very materially, I think our organization is in a really strong place to move forward. Beyond that, as we think forward to our next presenter with Dr. Navarro coming on board, the question of where do we in the United States go from here because that's an incredible amount of business, but it is bread-and-butter business in my mind. It's the stuff that we really know, we know well. We're taking the products that we are really, really comfortable with, even the ones that are -- have maybe been more dedicated in the European market, and we're really bringing those and scaling them in the market. What comes next for the market is going to be huge. And this is where we're starting to see a massive recognition in the value of what we'll call either enterprise imaging or integrated diagnostics, looking at the broader medical imaging world through the lens of modern oncology and cardiology use cases where as technology and AI continues to develop, the ability to get towards that more precision medicine future state is going to be enabled by these platforms. And that's where going from what used to be radiology into radiology and cardiology and pathology and then genomics being able to pull them together in a way that clinicians like Dr. Navarro can actually look at the holistic picture of a patient is really the future of where we're going. So with that, I think I'm handing it back to Torbjorn, who is going to introduce our next presenter.

So we will now proceed with the last presentation. And then you're free to have coffee or go whatever you like. All right. Thank you. So where are we going and some final remarks. What we hear from customers, not the least in the U.S., but all over the world, we lack medical staff and our workload is increasing. The burnout risk is real, and there's been surveys done in U.S. medical doctors where more than 50% say, I'm just on the brink of burning out. That is not the case in Europe. It's not as bad here. So they make a lot of money compared to European salaries, but there is a limit and people need to see the kits even if you're a medical doctor. And if 50% burn out, the workload on the rest will be absolutely impossible. So this is a real concern in hospitals. We can't get new ones because it's too few around. Our workload is increasing. People are getting older and older and more and more images is done. And we're burning out the ones we have. Very, very, very important driver in healthcare and not the least in the U.S. So workflow efficiency becomes paramount. A lot of the customers who are up for replace their systems is because it's not fast enough. And we are super fast. They need to be fast. It need -- you cannot walk up and go. That's why the integration with Siemens CT is so important for them because Siemens has come out with a new photon counting CT, the best product in the world. But you need a special software to view that efficiently. You can view it in a normal workstation, but then it's just a normal CT. So you would buy something cheaper than a Siemens photon counting device. So -- and the doctors say, I cannot rise up, go to another place, login, find a patient, do the images, take down the results on a ticket, go back to my normal workstation workday. It takes too much time. So even if it's better at medical care, they won't do it. And that collaboration between us and Siemens, Lisa showed out here and Fredrik has been paramount in. We have a lot of Fredriks, by the way. So Fredrik Hall. It's super important for customers. And that's really nice. We are good at working with other companies. Every -- most companies see everyone else as a competitor. We are [indiscernible] taking everyone else is primarily cooperator, a partner in delivering what healthcare needs to get in order to survive. We want healthcare when we get old as well. I'm almost old, but not there yet. Another thing they say, we have too many IT systems, untenable. I can't hire the people. I cannot support it. It's huge cybersecurity risks because no chain is stronger than its weakest link. If you have 1,000 IT systems in a hospital, there's 1,000 potential attack vectors. And you can't be sure all these are safe. So this is Stanford University Hospital, which is one of our customers, have 1,085 IT systems. And you know the cost of a software engineer in Silicon Valley, Palo Alto is not cheap. It's dangerous and difficult to maintain. And later, we also integrate diagnostics. So take a diagnostic decision on a patient is not the job of a single radiologist or single pathology. It takes a team to do that. And then you want all information available that you need to take the decision. And we can provide all that information to, for instance, a tumor board, where there's pathology, there's genomics, there's radiology, there's patient history. And that is super important. And if any time saver is important, those tumor boards when there are 25 doctors in there, super stressed sitting in one meeting, losing 2 minutes there is disaster. And also AI will need data. So far, AI has gotten data for only one modality. So you get AI in pathology, AI in radiology. No human would do that. You don't take decision only without even reading the patient history. So it's now being realized in the AI industry that an AI needs auxiliary information as well from the EMR, from other modalities, and then AI can become really strong. Very few AI today do that. And as I said, tumor boards in these meetings, 25 doctors sitting there with a very high cost per minute. If they don't get the information presented effectively, that's a disaster. They don't have that time. So we have radiology, cardiology, pathology, genomics, ophthalmology, dermatology, orthopedics, and we have taken these 4 or 5 different disease -- major diseases for the aging person, which the critical problem going forward in society. And we are addressing all of them one by one. Ophthalmology addresses, of course, the eye diseases, where we work with Kaiser during the pandemic, a very interesting development. Our team set in Linkoping, no one can travel anywhere, except we can go to Norrkoping perhaps and to the shop and California, where they were locked in really. And we developed this during the pandemic and with teams meetings and we show them the prototypes during the entire development that this works. It's fantastic. We can work directly with customers in the U.S. within years in Sweden to develop a very good product. We are the only vendor with all of this in one single system. That creates opportunity also for true integrated diagnostics where you can have all this data available when you take the decisions, which is crucially important, saves cost and time to treatment, and it decreases cybersecurity risk. And we see ourselves as Microsoft Office in imaging. You can buy -- in the old days, you can buy a PowerPoint solution. I think it was called Alders persuasion in the old days, and you can buy the word processor and you can buy a spreadsheet from different vendors. Today, you buy Microsoft Office and you solve kind of all of it. It takes a very, very good spreadsheet to get into or compete with Excel when you already have it. And that's what we do. We provide a Microsoft Office to our customers, and we have Excel and we have PowerPoint, and we have included in that package, which is a good thing for both in our opinion. And then we charge per hour or charge per exam. So it's quite similar to a Microsoft Office delivered their software today. Summing up, our packs will gradually morph into Pixel EMR, Dr. Navarro's statement here, which he invented, which is enterprise imaging, which Marie was very much driving from the beginning, which will then become enterprise integrated diagnostics. Genomics is not images, something else, but we're adding the information that's needed for other specialties to do a diagnosis fast because the faster you do diagnosis, the better the treatment and the less cost for both patients and hospitals. And this is absolutely required for precision medicine, especially in oncology, you need that tools. You cannot take a decision on pathology or radiology only. You need all of it. AI will be used more and more -- more than only for image detection. We have so far spoken mainly for AI as an interpreter of images. But AI you have all used ChatGPT, at least that is my assumption. These LLMs, large language models, they have now out. They tried it on the final exams to become a doctor, board exams in Harvard Medical School. And the LLM standard just out of the box performed as the top 10% of the medical students. This will revolutionize medicine. My personal say it will save medicine because this burnout risk -- it won't work. Someone has to produce food as well and cars and stuff. This will save it. It will change medicine in its foundations. And I don't know if you know who Semmelweis and Flemming were, but they were important people in the history of medical. Semmelweis discovered that actually you need to wash your hands before going between the morgue and the delivery department of babies in Vienna. And so sterilization and Fleming invented penicillin or antibiotics. These change medicine in its foundations, so will AI. But it's different between the AI for detection, and we are working with a lot with LLMs as well, but LLMs need all those information as well. This does not mean that we will abandon our core customers in radiology and pathology. We will be with them as before. We want to be the best. We have separate groups knowing everything about the specialties. We will be the best for each one of them, but we also can deliver something together and widen the scope for hospitals, which is what Kaiser Permanente recognized. And we will also concentrate a lot on the output because the output of diagnostics is the value for the hospital and the patients. So we will do more work in the output and creating of output from the hospitals. With fewer IT systems, improving diagnostic efficiency, quality of diagnosis and cybersecurity, this is what we have today. We started with the radiology, the patient, and the organ level of diagnosis. You see organs, you see the patient as a whole. Pathology goes down into the cell, which is very important. Now the next level we need for a complete diagnosis looking at everything is down to the gene. So we developed this picture we've used for many years. Many of you have seen it before. This is our vision. We need to get all this data, and we need population health and probability data from the EMR, we can pick it up. And that together makes we can build a toolbox for integrated diagnostics, and that's what we are doing. We are coming from imaging. We're becoming diagnostics in more general terms because that would be crucial for the future. And a little about the culture. I present this on our rookie course for the people and say, what is it working for Sectra? So it's me there on the right, and it's a new rookie Sectra to the left there, right? As Sectra, there's only a few things that you need to remember. We do important things for important people. We had a glitch here in mammography. You might have read about that. That was where we didn't think all the way for the risks. It was not really a bug, but it increased risk that meant a few women with cancer was not detected. We have to be careful doing these things. It will happen again. We have so many lines of code. But we do -- if we do mistakes, people might die and people might live because of us. Lives depend on us. Keep all promises. That's the thing -- people ask me in the interviews, what do you think is most important in Sectra for employee? And I have one single answer, honestly, because if you're not honest internally and with customers, society doesn't work. And we are a team. We have to work together. And if you see a problem in Sectra, you own it. It's a little bit about the culture. If you -- when I go to a customer and they complain about the wrong working of something, I need to take care of that. And everyone -- every single one in Sectra, has to listen to customers. And if they get a complaint, overspend on customer complaints, we will fix it. I like this picture. Some of you have seen it before. We are there to build integrated diagnostics. People didn't think it was possible to build pathology, but we did it, and we are going there as well. That concludes our day. Our feedback is very important. Note that you also have a QR code. You can give feedback on that. These meetings is not for us. They are for you. As we listen to customers, you are today, our customers. So give us feedback, and we can make these days better so it can become even better next time. And then I open for some final questions before we close. All right. Thank you very much for coming, and I hope you had a good use of the day. Thank you very much.