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

[Audio Gap] Presentation with the CEO, Torbjörn Kronander; and CFO, Jessica Holmquist. Today's presentation are prerecorded. Torbjörn Kronander is at the European Congress of Radiology today in Vienna, and he would join the Q&A session from there. My name is Helena Pettersson, Investor Relations Officer, and I will moderate the Q&A session after management presentations. And with that, I hand over to you, Torbjörn.

So welcome to the 9-month report presentation, 6 March 2026. The content of this will be interim highlights by me, financial developments done by Jessica Holmquist, our CFO. A little about our way forward, and then we have a Q&A session. This is, as Helena already said, a recorded presentation. The Q&A session will be live, but I will be present from Vienna, where I'm at the radiology conference at that time. Our business operation at Sectra is Imaging IT, our by far largest area handling and managing images and present images in hospitals. Images is a very strong part of the agnostic process, but they are not normal thing that you just put into database. They are larger data volumes and they take a special systems to treat them. We have Secured Communications, which is our communications of secret information. We do encryption for secret information and we do a whole system, especially eavesdrop secure telephones in -- on the national security level, which is the highest possible security levels. And then we have Business Innovation, which is our greenhouse and our future development program. These are -- should not be there forever. They should either be made on their own business area like in IT, Secure Communications. It can be incorporated into 1 of the existing business areas. It could be sold. We have sold or it's been shut down if it doesn't grow big enough to keep it. Some examples in the Business Innovations, medical education. In medicine now, development goes very, very fast, training the existing staff of health care doctors, nurses, et cetera, become a very important part. So we have -- before, we have done a lot of basic training, university training and when you are a student. Now we see an increasing need to have continued education for medical professionals over the world, and that does a very much growing area. Orthopedics IT. Orthopedics works with Images in a completely different way from [ radiologist ], for instance. They plan operations and they follow-up surgery, they do not only do diagnostic and they require special tools, and we do that orthopedics. Department. We have a new department since a few years called Genomics IT. -- genomics information is similar to Images. It's not Images, but it's closely related to diagnostics and it's very much made in conjunction with digital pathology that we do. It's about in order to do precision medicine, you need to know the genomics of both, for instance, the cancer if it's oncology, but you also need to know your own DNA, the patient's DNA. That means you can treat different patients with different treatment, which increases survival a lot. Then we have a few growth areas inside the big ones in Secure Communications where critical infrastructure with Ukraine, now that has been made clear that this is a very critical area to protect for society. We have a specialty division for that. In Imaging IT, we have an area that was moved from Business Innovation a few years back, which is still pathology, handling microscopy images. This is quite different from radiology because these images are very, very large. And then a new area in Imaging IT which is output, the diagnosis needs to be reported, and that report in order to be productive, needs to be very comprehensive and very good for the treating physicians to use, and we have a special product in that especially adapted for the U.S. market. But it will be generally applicable all over the world. Highlights from the quarter. We have happy customers as we have had since Sectra started. This has resulted that the order bookings have gone up despite the difficult comparison quarter -- 9 months ago. We still increased by 4%. Net sales grew by 8% and profit per share increased by 18% to SEK 2.5 per share. We are transforming to as-a-service model, and you see that and that we get more and more sales coming from recurring revenue and especially cloud recurring revenue, where we sell services software from the cloud, mainly in the U.S. and U.K. so far, but increasingly in Europe as well. And that grew a healthy 58%, and now where we have quite a large number to start with, percent relative growth in cloud recurring revenue makes a direct impact on the bottom line of Sectra. Recurring revenue includes the cloud recurring revenue. That grew less because we have less and less on-premise installations, but it still grew mainly driven by the cloud or driven by the cloud recurring revenue growth. And then we have -- if you are based on recurring revenue and selling services, you don't want to lose customers a few years into that path. So it's very, very important to keep the customers so they keep on paying for service and procedures. And thus churn is very important. And that's our large proportion you lose from these customers and only lost very little only 0.5% this rolling 12. The financial targets for the group are fulfilled. We have 3 overall financial targets. One is stability. Equity to assets ratio should be above 30%. We are at 48%. That's a hygiene measure. We don't want this to be 100% or 75%. It should be about 30 percentage show that we are a healthy operation that will not disappear because of financial issues soon. And we sell a very sensitive product for our customers. They want us to be stable. So that's a hygiene measure. Profitability. Operating margin is 21%. You see 2 curves there. What was a patent settlement we did last comparable quarter, but that is now gone and where the solid line is for the development without that patent. And it shows a healthy increase over the years. But again, the target is 15%. We do not have target that is higher than that. We have a huge opportunity for growth, and we will reinvest -- the profit is about 15% in growth when we see it. And then the main target, which is not a hygiene target, but unlimited upwards is growth of profits. We count that a profit per share because that is the best for existing shareholders and that should grow more than 50%, which is an average growth of about 8%, 9%. Over 5 years, it should grow 50% and will -- ways above that. We're 126% growth over the 5 last years. In Imaging IT Solutions, we are seeing -- beginning now that we are rolling out in these large contracts that we sold over the last 2, 3 years are now beginning to roll out. Revenue is increasing despite that we do not sell much on-prem licenses anymore. And we see that these large contracts now the first hospitals are live and we are beginning to see increased profits. It will not grossly affect this year, but we see an increase coming over the next year. We also are the most chosen vendor in the U.S. market. So we are growing faster than anyone else in the U.S., which is, of course, is a very large market, despite the dollar now is a little lower in value than it was, it's a very important platform for us. It's our largest market by margin. In Secure Communications, we have been selling mainly classified products. This is governmental approval -- approved encryption systems. They are difficult to administer for customers. There's a lot of regulations how you manage keys. You have to lock in the phones in the evening in safe, et cetera. Now the larger market of information or secret has to be kept secret for about 50 years. That's a very long time. We have to be very -- that's call secret level, a top secret level. Then you have a restricted level. Restricted level is still government control. And you need to lock in the phones in the evening, but the secrecy should only be for 1, 2 weeks against state back. Companies cannot have that administration bureaucracy around the products, but they still want secure products. We have launched a new family of product called Tiger/E. That's an eavesdrop secure phone and the E stands for essential. So we have Tiger/S for secret, Tiger/R for restricted. And now we added Tiger/E, which is mainly for a private market. You want a security but you cannot have a department that takes care of all the administration about it. So it's called Tiger Essentials, all the substantial things for high-level encryption is there. But you don't have the -- all the administration you need for restricted product. It's the same product philosophy, but much simpler this administration. Not formally classified as I said before, but that also means you can have that simpler administration without losing that classification. We've seen Secured Communications to postpone serial deliveries and that impacts financial outcome. The reason postponed is partly changed requirement from the customer. Cybersecurity is a fast-moving market and things happen. And then you have to change the products. And of course, serial deliveries are then delayed yet, might have to rebuild something in a very late stage, and this is what happened here. We had to redevelop things and that means a delay. This is not lost orders. We have very good order intake, but it's delayed. So -- and that affects this current fiscal year quite a lot. But we have still won new contracts and new partnerships. We have expanded with several new customers all -- and these products, we do not sell all over the world. we sell them in EU and NATO exclusively. After the quarter, we have been ranked again #1 in customer satisfaction worldwide. We are a 13th year in a row, the highest customer satisfaction large hospitals in the United States. 7th year in a row in Canada. And we also have the happiest customers in Northern Europe, Southern Europe, DACH, which is Germany, Austria and Switzerland, Middle East, Africa and Oceania. Of course, this is what drives us our growth. We have also announced recently that we have entered an agreement to acquire an AI company, Oxipit in Lithuania. We have avoided doing pixel-based AI ourselves in the company so far because we think the customers must have a very clear business case. Otherwise, it's too expensive for them. We have resold -- we have had an app store, we call that amplifier for AI. So we resell a lot of products integrated into our system. But this time, we saw that this company, Oxipit, they have something very special. They have autonomous AI solutions with diagnostic imaging, especially plain chest. And that means you can set up sensitivity threshold so high that you will not -- a very small probability will miss anything that is a real critical finding. But you will perhaps take 20%, 30% out that the doctor doesn't have to look at all. Now that really saves radiologist time. It takes 20%, 30% of the images that is not needed to be looked upon by radiologist. This is significant savings for screening with lungs, which is 1 of the biggest exams you do in the radiology department, plain chest X-rays is a big thing. If we can take out 20%, 30% of those not require radiologist at all to look at them, that's a very important thing because -- and the radiologist can concentrate and only do the 70% remaining. You'll find a lot of false positives, but we have almost no or very, very few false negatives. This will contribute significantly to the reduced cost of health care. It is an approved customer -- approved product in European Union and everyone who acknowledges MDR, which is the European regulations as a good reasonable thing to require it or to use it. So all big areas, all of European Union [ EUAS ]. We can sell it is in trials in several hospitals already. And it's an interesting year because this is a real solid business case for [ uses ]. We have FDA and other approvals in the pipeline. It is subject to customer closing conditions. We have signed a contract. Hopefully, this will be completed in March. It requires some authorization from Lithuanian authorities and other things. It is a small company. It's a small business, but it means we're going into AI for real, and we're going into the area of AI we believe, most in ourselves, to take actually workload away from the radiologist. It will have no material financial impact on the group this year and only a little next year. But it's an interesting area, and we hope that this would be significant in the future. Then I will leave the word to Jessica to tell a little about the financial development.

Thank you. Welcome again to our interim report presentation. I will take you through the financial development, focusing on the key financial metrics. Demand for Sectra's products and services remains high with the contracted order bookings exceeding SEK 6 billion in the 9-month period, of which SEK 4.5 billion was guaranteed order intake. In the 9-month period, we have seen strong inflow of large- and medium-sized orders in the U.S., Sweden and the U.K. And during the third quarter, several of our U.K. customers already using our imaging systems have signed Sectra One Cloud contracts, taking a step towards cloud services. Our book -- our rolling 12 book-to-bill ratio is 2.6. And we highlight the fact that the size of individual orders can cause large quarterly fluctuations in our reported order intake numbers. We see solid recurring revenue growth. Our net sales increased by 8% to SEK 2.5 billion in the 9-month period and high customer satisfaction, new deployments and increased production volumes all drive growth, whereas customer -- sorry, currency exchange rate movements and the delayed deliveries in Secured Communications have a negative impact on our sales trend. And just to repeat what Torbjörn said, our recurring revenue from our cloud services grows fast, up 58% year-on-year and we continue to report low recurring revenue churn, 0.5% rolling 12. We had substantial currency impact in the period. Adjusting for currency, sales would have grown by 16% instead of the reported 8%. And the third quarter sales increased by 5% to SEK 892 million, and adjusting the quarterly numbers for currency, sales would have grown by 16% also in the quarter. Our operating areas, Imaging IT Solutions and Business Innovation increased sales year-on-year and our Medical Imaging business grows with deployment of new customers, add-on sales and health care providers choosing to move from on-prem to cloud services. Imaging IT increased sales by 10% to almost SEK 2.2 billion in the 9-month period. In Secure Communications, we remain impacted by a delay in a major customer project, and we reported a sales decline of 3% year-on-year. Business Innovation increased sales by 25%, and this is driven by the development in our medical operations. In geographic terms, our U.S. operations reported by far largest sales growth year-on-year, but all geographic markets show growth in local currencies. We note that more than 70% of Sectra's sales are generated in foreign currencies, primarily euro, British pounds and U.S. dollars causing high sensitivity to currency fluctuations. First, I would like to highlight that all year-on-year profit comparisons in the -- during the presentation are made excluding the patent settlement that occurred in the third quarter last fiscal year, as this is a nonrecurring business transaction. The EBIT impact of the patent settlement was SEK 110 million. And having said that, our operating profit increased by 21% to SEK 502 million, and the margin was improved to 20%. And the growth in our operations and also more capitalized work for old news are drivers of the profit development. The third quarter operating profit of SEK 194 million is lower than in the comparable quarter where we had a larger impact of traditional license revenue recognized Imaging IT shows profit growth of 27% and an operating profit margin close to 22% in the 9-month period. And I repeat, increased sales and more production volume as our customers take our services into operation and more capitalized development costs and as well as lower consultant costs have impacted the profit generation in the period. Secure Communications operating profit declined by 25% to SEK 45 million, and the operating profit margin is at 15%, 9 months into the year. And here, we see the clear impact of delayed product deliveries this year. Year-to-date, the cash flow from operations amounted to SEK 578 million. Cash flow generation in the third quarter was strong, SEK 418 million, and underlying profit growth is the main driver of strong cash flow. Comparing to the 9-month period last year, we have increased our capital tied up in current receivables as -- mainly as a result of higher accounts receivable outstanding on the balance sheet. And that was all from me.

All right. I'll way forward. I've shown this picture very many times before. I show it again, a very important thing in a fast moving world is I try to be [ ahead and ] be good, better than competition predicting where the world will be. When Wayne Gretzky, the best hockey player in the world was interviewed why he was so good in hockey, he was not really good in any part of it. He didn't skate very well, he didn't shoot very hard. He said, "I do not state with the puck is, I skate where the puck is going to be." And we have been good at that over the years. So we are well positioned now when time comes. And now we have the genomics, we think will be -- that would be very important as well going forward. Our general philosophy about shareholders is that you need to start with a rational strategy in a growing market. It's being in shrinking markets is tough, because it normally ends up in a price war. In a growing market, you can grow with market or ideally you grow faster. Then if you have happy customers, and in order to have customers who must have happy employees, it's not possible otherwise. Dare to be expensive when you're worth it and have reasonable cost control, shareholders will be happy. But it comes in that order. And it's very important to realize that this is prioritization we make and that means we might take a small hit for profitability business if it's required by happy customers. Right now, we have the most happy customers in the planet, and thus, we think we have very happy employees. We do a lot of investigation in internal surveys that check this up. And without those employees, we would not be able to have the customers we have and shareholders will thus be happy will continue this way. In medical IT, the growth area is the diseases of the elderly. The demographics in the world is a little concerning and the cost in health care is mainly driven by the diseases of the elderly. And that's neurodegenerative disease, cardiovascular disease, cancer diseases, muscoskeletal disease and vision. And we are working in diagnostics for these areas in particular. We can do a lot of other diagnostics as well, but we should be very good and highly efficient in this area because these are the areas where society have to address in order to have a health care networks all the time, 2030 as soon. We are selling this now in a Sectra One contract. You signed 1 contract of Sectra, you can use anything we use. Very often, you start with one, like radiology. But if you were to add breast imaging, which is mammography, digital pathology, genomics, whatever, you can add this after a while, you don't -- you have a new contract with that. That has been a very good model. It's easy for the customers to take up the next area. So even if radiology is the major part of this income, you can use others as well. And genomics was, as I said before, it had a few years back. What we hear from customers will go around the world is that -- and especially in the U.S., but also in Europe and other places, there is a lack of medical staff. The workload is increasing, burnout risk is real. The burnout risk in specially in physicians is scary and of course if the substantial amount of the workforce gets burned out, the remaining people would be even more loaded because patients coming in the same rate as before. And our job is to help out with that. Workload efficiency is very, very important. And to make these doctors actually do medicine is either doing paperwork or doing administration, et cetera. Another concern we very often here is we have too many IT systems. We have thousands of IT systems in large corporation. Every 1 of these is cost too because the hospitals have to have expertise, knowing how to deal with all these systems. It's a general trend that they want less systems. It's also a lot of cybersecurity concerns. Every 1 of all these thousands of systems is security risk by getting the numbers down, they have less risk. And later, we see integrated agnostics. Personalized medicine is coming very strongly. That means different patients get different treatment. But then also do that, you need diagnostics information from all over the place, including genomics. We are the only vendor today who have all of these in 1 single system, and we will also use data from other areas in order to feed into especially medical tumor boards, which is a very expensive meeting, but it's very essential for treatment. We have a regularly radiology, cardiology, pathology, genomics, IT, ophthalmology and others in all in 1 single system, reducing the number of systems, increasing efficiency and improving the diagnostic quality. In cybersecurity, we see a new digital reality. 10, 15 years ago, people very seldom spoke about security and eavesdropping. Today, this is an everyday reality. It's growing and has to continue to grow. And there is no other way to go up. We see also that increased international tensions, there is concerning tensions in Europe, in Ukraine, but also other parts of the world that is driving the need to be able to communicate without someone else listening in. We are very well positioned, and we have a very strong brand name in area where trust is absolutely required. And our brand, both in medicine and in communications is our biggest asset, is not on the balance sheet, but it's definitely our biggest asset. In both of these market sectors, well positioned health care and cybersecurity of markets that due to external pressures have to grow, even if it's a recession in the economy and society, these 2 have to grow, and it's a nice place to be because our markets, we grow. If we grow with the market, we will grow, if we grow faster and we go even faster. Priorities and key takeaways going forward. Quarterly variations will slowly decrease. We're getting more and more recurring revenue. And that, of course, will drive down the variations. We still have a lot of variations between quarters, but it will decrease. We are now doing significant go-lives. Not many, the first ones on these large contracts are now operational. But over the next year, so we'll see more and more coming in. But cost is still high for the next quarters. So you will not see a huge profit gain, but you will see a high cost, but also increasing numbers of these hospitals that we've signed on getting live. Also, subject to closing, autonomous AI is an exciting new area, significantly reducing workforce stress in health care. Where this is an increasing area that we're just opening in up and we think there will be exciting news coming out of this over the next few years. We also want to point out that we have a large currency exposure, Sectra, you have to be a little careful about evaluating and predicting Sectra on that one. We have especially large income in foreign -- or currency that is not the Swedish krona. The upcoming financial events are in June 5, we have the year-end report. September 4, we have a 3 months first quarter report of next fiscal year. On September 8, we have Annual General Meeting that will be in real life as the [indiscernible] in here in Linköping. We don't believe [indiscernible] meetings. We think that meeting should be physical. Again, your feedback for this mints important they are done in order to serve you and the marketing shareholders. So if you think we should improve them anyway, please send an e-mail and tell us what you think we should improve upon. And then we open up for questions.

Thank you, Torbjörn and Jessica for the presentations. I want to start with apologizing to all of you try to connect to today's report presentation. We had have had some technical issues. And -- but these presentations and Q&A will be published as soon as the recording is done. And with that, I will start with a few questions from private investors to Torbjörn. And the first questions regard the Imaging IT Solutions operations. Have you made progress in shortening the implementation times for new customers?

Yes, we have. It's getting better and better, especially on the cloud deliveries, but there is still a lot to be done. We can always get better.

And the next question is, the capital region contract in Denmark now generating full revenues. Was it a successful implementation and can other regions in Denmark follow?

Well, 3 questions. Yes, it's full revenue since quite a long time back. It has been, according to the customer, a huge success. We think also it went well and everything is live and the customer is happy. As for the additional orders in Denmark, that is, of course, an ongoing fight and we would like to participate in more business in Denmark. We like Denmark. It's similar to our home market, and we would very much like to progress and sell more there.

And the next question, I think you have touched upon in today's presentation, but I will take it again. What is the status of transferring current U.S. customers to -- from on-prem to cloud?

There's been a few move. That is a complex installation. It's almost like installing something from a new. So it's an ongoing process and will take several years to get most of them or all of them even over to the new environment.

And the next question is about business innovation. How have the sales of the genomics IT module progressed?

We have 1 customer still, the 1 we got first. There is a lot of interest of more, but this is nothing particularly strange. This is typically what happens. We have completed a new product to a new customer, that it takes a while before other customers realize this actually works. It does work. It is University of Pennsylvania genomics lab, it's the most happy customers we have in the entire company. So we hope to get more business within a not too far distant future.

And then we have another question around AI risks. It's a longer-term strategic question. There is increasing market concerns that advances in AI could make parts of the SaaS industry obsolete. In my view, this has been 1 of the drivers behind the recent decline in the Sectra share price with the discussion accelerating after the recent plug-in release for Claude. How do you view this risk long term? And how resilient do you believe your software is to potential AI disruption?

Well, first, we are dealing in markets where trust is paramount. We are a trusted company in a market where trust is very important with the customers. If our medical equipment stops working, the hospital comes to a grinding halt. You don't buy that from 3 guys in the garage. You buy from people and a company you trust, that is not affected by the AI. And then as for AI, there is a wave of efficiency improvements coming that will make coding and specialty programming much, much faster. We are using it. Everyone else is using it. The benefit is as much on our side as on anyone else's side. The important thing is this is a wave that is coming. And a good company serves on the front of the wave. A poor company is paddling like crazy in the back of the wave. We are good at surfing the wave, and it will be as beneficial for us as for everyone else.

Thank you. Then I will move on to some questions from Nikola Kalanoski at ABG. And the first question is, during last year's Capital Markets Day, you showed a graph of the total processing on amplifier marketplace going up significantly. Do you see continually increased usage of amplifier marketplace among your customers?

That is a very healthy trend upward.

And we continue with AI. Are there any additional AI capabilities that you would like to develop with the help of the incoming Oxipit team or will focus be on Oxipit's existing product offering?

We see that as an AI center of Sectra or clinical AI Pixel-based AI center. There will be many more coming out with time, but we wanted to -- we want to rather be doing a few and doing it very well. And now autonomous AI is very important. We will not do all AI, we'll not compete with everyone and everything. We'll do what we're good at. And right now, there's autonomous AI for test.

And the next question is about Sectra One cloud. Approximately, how large a share of the order bookings are from Sector One cloud contracts?

Very large portion.

Is there any particular part of the world where you would like to hire more people? Or would you say it's similar as in previous years?

Right now, we're staffing up mainly in the U.S. and Canada and the U.K. That is where we have the large orders. We're also staffing up in Portugal and Sweden, where we have significant orders, and I would say these are the main with U.S., especially leading because we need to step up there.

And then a final question from Nikola and has NHS Scotland gone live at any site yet?

It's a development process of deliveries. Migrations of archives, et cetera, has started, but it's not live.

Thank you. Then I will move on to questions from Kristofer Liljeberg at DNB Carnegie. And the first 1 is any timing effects explaining strong sequential growth for the cloud recurring revenue. Does it include any one-off payments?

The answer to that is no. No. No significant one-offs or material impacts from -- or from one-off payments. It's related to volume growth.

And the next question, is the lower gross margin in the quarter explained by an increase of cloud storage costs?

Goods for resale include hosting and storage costs. Also includes hardware and components. And as the volume goes up, hosting and storage increase, but we can also have other components that impact goods for resale and the gross margin.

Thank you. And I think the next question from Kristofer Liljeberg is for you, Torbjörn. Can you please explain rationale for the acquisition? As you have previously said, you did not want to bet on a single AI solution but wanted to be gender neutral?

We are gender neutral still. We will have a lot of different solutions for AI working with all our partners all over the world. But this is different. This is autonomous AI and they are proof of that. The only approved solution to actually replace radiologist work. That's a huge difference of aiding or helping a radiologist with different things and actually taking a part of the workload out because that is what really is needed. There is a shortage of radiologists all over the world. If we can take part of the high-confidence normals in screening applications for you -- when you scan and screen a lot of people. Most of the images are normal. And if you set up sensitivity, you can take off a significant amount of those, perhaps 20%, say these are normal with very high probability, then no radiologist have to view this. And that's a big difference from other AI.

Okay. And a final question from Kristofer. Can you provide details of how much you will pay for this acquisition? .

We have not disclosed that.

And then I move on to questions from Jakob Lembke at SEB. And the first question is, could you elaborate on what drove the strong increase in cloud recurring revenue sequentially compared to Q3?

All right. I think we touched that in the previous question. So it's volume growth as we go live with new sites and as the usage increases our cloud revenue -- cloud recurring revenue grows.

And I also think you touched upon the next question previously, but you could repeat as well. Was there any impact from retroactive revenue recognition of cloud revenues in the quarter?

The answer is no.

And the next question is about the implementation process. Can you give an update on where you are in the implementation process on Quebec, U.S. multistate health care system and Greater Manchester?

We can begin with the last. Great Manchester is all live since many years. So there's no change over the last year. It has been live a long time. In Quebec, we are archiving everything, and 2 hospitals are live of the 100 plus that will go live, but 2 of them are live. In the large U.S. projects in the -- in all of those, there is 1 or 2 or 3 or regions going live. And they are split up in regions, but the majority is still to come.

And the next question from Jakob is could you elaborate on what drove the strong order intake in the quarter?

Of orders, we are doing -- selling well in many countries. So there was not 1 of those massively large, but still a lot of order impact.

And the next question is, it looks like you have won many deals in this fiscal year beyond what you have press release. Is the ambition to get this live in 1 to 2 years? Or do you see longer implementation time line since the backlog is increasing?

We're getting better and better in doing it faster, but there are significant delivery time to lease. Not the least because we have to migrate archives and archives have to move over when archive is included, and that takes time.

And the next question is, what drove the large increase in goods for resale in the third quarter?

Okay. Well, like I said, it includes hosting and storage, hardware and other components, and the increase is a mix quarter-on-quarter.

And the final question here from Jakob Lembke, and this is for Torbjörn and it's around AI again. Can you elaborate on what has driven the shift in your AI strategy from only integrating third-party tools to now developing your own? And a follow-up on that, so should we expect you to build more AI tools internally?

As I said before, partly mostly repack that question already. Autonomous AI is different. This is significant cost reductions for the health care and hospitals. We have never said that we would not ever do AI ourselves. We say we will not complete in all areas. But if it's good enough for hospitals and a big business, especially autonomous AI, we can do a few ourselves. We will not do everything.

Okay. Thank you. And I will just check my mailbox once again, and there is no further questions. So thank you, Torbjörn and Jessica. Do you want to say anything more, Torbjörn?

Thank you. Right now, I'm in Vienna and a very successful radiology show, ECR. And next week, we will be in California at HIMSS, which is a large informatics conference. So there's a lot of sales activities going on right now. So best regards and thank you for listening in.