Revenio Group Aktie

[Presentation]

Hello, and good afternoon, everyone, and welcome to Revenio Capital Markets Day 2026. My name is Mari Korhonen. I'm the Vice President of Strategy and Business Development at Revenio, and I'm very pleased to also host you all today. I'm very delighted to see many of you here in Helsinki with us, and a very warm welcome to everyone joining us via the webcast online.

So it has been a significant year for Revenio, and we today look forward to taking you deeper into the market dynamics that shape our industry, share our updated strategy and explain how we really intend to respond and create value in this new chapter.

I will walk us through the agenda shortly. So first, we will hear from our CEO, Jouni Toijala, about our market position and how the market is evolving. Next up, Erkki Tala, our Vice President of Product, will introduce the comprehensive portfolio and how we're positioned to really advance clinical confidence and workflow excellence. After that, Umberto Bargiggia, our Vice President of International Sales, will take us through our go-to-market and our sort of commercial excellence. We will -- I will be then coming back to talk about our operational excellence and how people and culture are in the central of what we do. We will have Jukka Kainulainen, our CFO, explain how the strategic priorities then translate into long-term value creation. And we will aim to conclude around 5:00 p.m. Finnish time with Jouni coming back to summarize the day and conclude with the Q&A.

We are here today, so you will be hearing from Jouni, Erkki, Umberto, myself and Jukka from our leadership team. But we also have Haniel, John, Heli Huopaniemi, Ari Isomaki, Jussi Nevanlinna and Hanna Vuornos as part of our leadership team. But with that, I welcome you all. It is my pleasure to welcome our CEO, Jouni, to the stage. Over to you.

Group CEO of Revenio. Excellent to see you all here at Sanomatalo and also there through the webcast. I'm going to split my part in 2 parts. So the first one, I'm a bit looking back how we have been able to execute the last strategy period for us. And then, of course, leading you more towards the next chapter, which the heading is saying, leading the shift from vision care to the connected eye health.

So if we would have a book on our hands, which tells the story, the whole Revenio growth story, even starting more or less more than 20 years back. Perhaps the chapter 1 would look like it covers all the businesses what we used to have more than 20 years ago, logistic lines, [indiscernible], call centers, over 80 legal entities, plus one business called iCare. So revolutional technology around the rebound tech.

And if concluding that chapter #1, it basically concluded in a phase where company decided to focus around the rebound tonometry. All other businesses were divested out and then the growth journey started around the health tech. If looking the chapter #2 on that very same growth book, it concentrated on scaling the rebound technology globally, but it's also concentrating on looking another leg on top of which the Revenio could stand. And that led us to the acquisition of the CenterVue business.

And so we opened the third chapter. Bit by bit, by moving just revolutionary technologies, rebound tonometer, TrueColor confocal imaging tech with the high automation, we acquired Oculo, we acquired Thirona Retina, and we started to move more towards the innovative ophthalmic solutions. We discussed during the last CMD that the amount of the patients is increasing, but then the eye care professionals amount is declining or at least staying static. And then 3 years ago, we said that we need more sophisticated products and software tools to cover that gap.

Last CMD, we had 4 key cornerstones. So first one was related to the products. So the hardware products, a couple of those you are going to see later in the event. So there, the strategy has always been with us that we have to have the best products in the categories where do we select to play. Quality needs to be excellent. The data which they provide needs to be the best in order to be able to feed the data to the solution and the back-end side in order to be able to do sophisticated clinical decisions on the best of -- based on the best data.

Then if we look the period what we have had even starting, I mean, last 6 years. So we have been growing from EUR 49.5 million to EUR 109.7 million. And the reason for that one is that we have been putting a lot of effort to scale the channel, improve the brand and really put the emphasis also on the operational side of the business. So constantly increasing the quality, constantly increasing the ways of working also at the manufacturing side.

And then, of course, we have been investing a lot to the people and culture side, and we have been able to grow the last years in a profitable manner. So if we look at these 4 cornerstones, so on the device side, we have launched MAIA microperimeter. We have launched ST500 new tonometer. Then we just last Thursday launched a new tonometer called IC1000, highly recommended to check it out if you yet haven't checked it out.

Then on the software side, we have entered with the ILLUME, the retina screening side. Now with the IC1000, you're actually having as well the first data management system called Altus. And then throughout all these years, the quality has been improving, and we have been able to deliver the products customers have been buying with excellent delivery accuracy.

And then on the people and culture side, business is moving. So we have been investing a lot to people, leadership team training, then also moving to more customer-driven development, so implemented the product operating model. And if you look the last roughly 3 years, so we have been growing faster than the market and the profitability is the best on the market.

But let's start shifting the gears. If you read the couple of sentences on this growth path and book, you go back to the old CMDs, you go back to the older investor meetings or earnings calls. So we have said that we are working on the ophthalmic diagnostic device market, roughly EUR 4 billion. We cover 1/3. 1/3 would be extremely interesting for us and extremely value adding. And this is basically closing the chapter 3 in a growth book. So we managed to close the Visionix transaction during the end of the May. We got that extremely interesting a bit more than the EUR 1 billion. So we were able to increase our addressable market, 2.5x. So from 1.1 million to 2.7 million. We got the extremely wide portfolio. We got to expedite the stronger global presence.

And I think now it's start to close the chapter and together they open the new chapter. And the heading on that chapter is leading the shift from vision care to the connected eye health.

So we are going to spend the next 1.5 hours to explain the dynamics behind the shift. Then we are going to go through how the product portfolio is enabling the shift. And then we are also going to go through by Umberto how this plays in the market, what value add we are able to create our customers, and then we have Jukka wrapping up the value creation part. But let's jump on it.

So a couple of drivers still valid and even supporting more our long-term growth. So aging population. So amount of the patients is increasing because of that. Then we have lifestyle-related diseases. Under this, we have always mapped the diabetes. I would say as well and even add on top of this, I would even add the myopia on this part and even say it's a bit lifestyle-related diseases because everyone is looking at their mobile phones, they are looking at their pads and so forth. So I'll come back to that one.

And then we have a labor shortage getting even worse because the amount of the patients is increasing. Then we have been also talking about the tech and the tech advancements. So tech is crucial here. So if we don't bring new innovation, whether they are products, whether they are software, so we are not able to close the gap between the static amount of the eye care professionals compared to the increasing patient amount. And a couple of examples on this one.

So retina screening, DRSplus ILLUME AI. So we have been able to, with the tech, move the burden of the diagnosis, as an example, to diabetic clinics where the diabetic nurse is able to operate simple-to-use high-quality device, analyzing the results with an AI and then passing the patient, if needed, then to the ophthalmologist. And what this has been also enabled is that the access of the care is not, in a way, focused only on ophthalmology. So we are going to have new places where screening diagnostics are able to be performed.

If we jump bit to the details. So on the aging population side, I mean, we see glaucoma increasing. I mean, that's more than 100 million patients more by the end of 2060. AMD, age-related macular generation, exactly the same. So the challenge regarding to the eye disease is increasing due to the aging population, not going to vanish anywhere, rather increase.

Then lifestyle-related diseases, same here. So diabetes growing extremely fast. Every diabetic person needs to be screened. The eyes needs to be screened. If you go back to the earlier discussions, as an example, in Czech Republic, it used to be 6 to 9 months. Now we introduced the ILLUME solution there, DRSplus ILLUME AI, we have been able to reduce the time in a couple of weeks.

And then I referred to the myopia, exactly the same case. So it's amazing to think that perhaps half of the people's -- I mean, the population is going to be myopic. When the myopia goes to worse, so it's also having an impact to your eye health.

Labor shortage, so getting worse all the time. So amount of the patients is increasing and even the eye professionals, I mean, even the supply is going to go down. And we really have a big gap on this one. And the only way how we are able to close the gap is to innovate on the new tech side. The new tech enables us to shift the tasks to the people who normally won't be able to do the work. And that leads to the expanding access to the care. And this is now also core on our strategy of shifting from vision care towards the eye health.

And we have seen this shift already on the normal health care. So I used to go to hospital to get my blood sample done. I used to go to the hospital to get my EGG done or so forth. But the tech has been evolving. The cost of the tech has been coming down. I mean, now I go to Mehilainen and one of the providers or Terveystalo, I mean, immediately, you get everything done at the point of the care. And what we also see now on the optometrist side, on the eye health side is that from ophthalmologist side, the care and the screening and the diagnosis, it's shifting towards the optical retail as well. And we come back to this one on Erkki's presentation. So this is a shift where we are going to be present and which is going to be a huge growth opportunity for us.

So let's spend a bit time around the terms, so vision care, eye health. So are there any differences? So if you talk about the vision care, so that's a more refraction. It's a vision correction. So it kind of helps if you are not seeing well. So for me, it means that I should have a reading classes because I'm plus 2. But it doesn't detect are my eyes healthy? That's a major difference.

So if we go on the eye health side, so it's about diagnostics. It's about early detection. It's about screening the diseases. And as we have said, so there's not enough eye care professionals to check that, are the people's and the patient's eyes, are they healthy? And where we jump into the picture, so we are going to lead the shift from vision care to the connected eye health. And these are now the 4 updated strategic cornerstones.

So we have combined the device side with the software, with the AI and the strategic cornerstone here states that we are going to advance the clinical confidence and workflow excellence. So this is crucial to add. So with extremely good devices, which are providing high-quality data in order to be able to do sophisticated clinical decisions in an easy way, so we are able to shift and delegate the duties across the chain.

Erkki is going to come back to this one, explain it more. And then on the software side, the software comes into the play regarding to the workflows and the workflow excellence. So Erkki is going to cover this one in more detail. Now after the Visionix transaction, we got access to the vision care side. Visionix is extremely experienced, extremely well positioned on the vision care side. We have been -- as a kind of old Revenio, we have been extremely strong on the optometry and ophthalmology side. Now when we are combining the products, product portfolio, we are combining the sales team. We are going to have more customers. And for those customers, we are able to sell more because we have a wider portfolio.

And Umberto is going to go through what does this mean in practice and what's the magic behind it, how we are going to do it. And then operational excellence. So if you look the Revenio business model, operative model, so we have been quite asset-light; quite, how would I say, efficient on the operations side; high availability or delivery accuracy on the products, et cetera. So where we are now moving as well, so we are looking now the combined company assembly manufacturing footprint. We are looking how the operations are run, et cetera. And the plan is really to scale this operational excellence, what we have had at the old iCare Revenio side, then, of course, to the Visionix side.

And then as before, the people and culture part. So I mean, that is what makes us stick. So we want to really take care that we have a best motivated, highly skilled people part of the team. And again, here, we have 4 strategic cornerstones. We have also included the brand part of the picture, and that's the work what we are currently doing. So what's going to be the brand in the long run, so work is ongoing. We come back to that one. Again, the logic exactly the same. We do all these 4 cornerstones well. We handle the brand, we handle the ESG. I'm sure we are able to provide a sustainable and profitable growth.

I'll start to finish here with a couple of comments related to the topic that how well we are positioned on this shift. So first important part. So we are still operating in a growing market supported by the megatrends, and those are even more stronger than they used to be a couple of years back. Then we have a highly complementary customer segments. Like I said, we have a differentiated product portfolio, and that covers entire customer journey. Then we have expanded our global footprint in terms of country coverage. Then we run part of the integration. We run the culture audit, and that's actually showing surprisingly good match, which is excellent news for the integration, which we are going currently through.

So you couldn't tell actually the difference. We were in London ESCRS during the weekend. We had a first dinner with the iCare team, with the Visionix team. I mean you could -- you just couldn't tell the difference and people were mixed up in a first joint trade show dinner. And I think that was impressive.

Then regarding the integration. So when we launched the deal, I mean, I got a lot of feedback that, "Hey, are you serious? So you went together, you joined the forces with Visionix, big team, more complex operations, et cetera. So how you are going to be able to do the integration?" And here, I can say good and relieving news. So we are proceeding extremely well on the integration side. We stated at the time of the signing and closing that the target is to have a EUR 20 million EBITDA uplift coming from the synergies. I'm happy to say on the run rate basis in the first 100 days, we have already of the planned EUR 20 million EBITDA uplift by the 2029.

Then regarding to the financial targets, so I reiterate even though that the stock exchange release was out earlier today. So we now gave a number. So we have been receiving quite a lot of feedback from the investors, from the analysts that, "Hey, you have been saying 3x faster than the market, but this market growing because you're Revenio, you are almost the only one who is able to grow the business on a profitable manner." So now we stated that the long-term growth aim is 5% to 10% during the strategy period ending up 2029. And then we reiterate the profitability target, which is to reach 25% adjusted EBITDA by the end of 2029.

I'll finish up here and hand it over to Erkki. So welcome, Erkki, and please, floor is yours.

Good afternoon, everyone, also from my behalf. My name is Erkki Tala, and I'm Vice President for Products here at iCare.

Next, I will dive into the combined product portfolio and how that supports our strategic goals Jouni just took us through. So as the headline says here on the slide, now we have a comprehensive offering really for different customers and covering the entire clinical customer journey. This allows us to advance clinical confidence and workflow excellence at all levels. What does it mean in practice?

Let's start from the market. There's some major changes in our addressable market. We operate in ophthalmic diagnostic equipment market, which is currently worth USD 4.1 billion. And you can see on lighter green background, the product segments or categories where Revenio before Visionix transaction or acquisition was playing. So that's ranging from fundus imaging to perimetry, tonometry and clinical data and telehealth, roughly USD 1 billion market.

Now on the dark green background, you can see the product categories we have got from Visionix. So OCT, a big part of and growing part of the package; refraction systems; slit lamps; and multimodal diagnostic devices. So all this together is now growing our addressable market from USD 1 billion to USD 2.7 billion. And equally important -- size is important, but equally important really is that now we cover the entire clinical customer journey throughout. So we are able to create a real end-to-end solution.

It's probably worth mentioning here as well what is included in that USD 1.4 billion market we are not in. So that's mainly related to surgical equipment or related solutions like operating room microscopes or optical biometers, which are largely used in cataract theater. And we have made a strategic choice not to get into surgical products because those ecosystems are pretty closed and there are only a few players in that space who dominate the market space.

But who are our customers? That's the market, who are our customers? Our key customer segments in that market are optical retail, optometry and ophthalmology with the 2 strongest focus areas being: one, in medical middle field, as I call it, because it cuts across clinical optometry and general ophthalmology; and two, optical retail.

Respectively, our solutions are used in different environments. Those environments are ranging from optical retail stores to optometry and ophthalmology clinics and hospitals. And as our customers are operating in different environments, they have got different roles in that clinical journey we are referring to many times. And that's good to understand as well. So optometry -- sorry, optical retail, let's start from there because the journey often starts from there. So optical retail customers are really kind of focusing on efficient and reliable refraction and vision testing, enabling then accurate vision correction and spectacle sales. And that's a big, big new customer segment for us and currently consolidating into larger networks where typically customer demand and supply of professionals is not really meeting. And there, we have got strong foundation, for example, in remote examination capabilities, which can unlock the service in more places.

Then optometry. That's like a mixed zone between optical retail and ophthalmology, but with full focus on eye health from screening to diagnostics. And the key in optometry really is to have a data analysis tools supporting clinical decision-making and also having smooth referral workflows when necessary when the patient or customer needs to be referred forward.

And then on top of the clinical hierarchy, there is ophthalmology that covers subsegments from generalists to deeply focused specialists. All the ophthalmology is fully focusing on ophthalmic diagnostics, treatment and care. So while all the customers are having different roles and working in different environments, there are certain shared, let's say, needs or common denominators they all have.

One is clinical confidence. It means that at all levels, I can trust on the technology I use. The second one is connectivity and access to data. I really need to have access to data and supporting tools in an easy and smooth manner. And the third shared need really is around workflow efficiency. So data and patient flow needs to be smooth within the clinic or the practice, if you like, and then between the operators.

If we then move on to this part. So why this broad portfolio, end-to-end portfolio is then really important, why it's key for our future success and delivering our strategy Jouni just described, how the role of these different customers we are just kind of now having, how they are evolving? As Jouni described in his section in opening earlier, the demand for ophthalmic diagnostic capacity and delivery of the professionals or supply of professionals, that's increasingly imbalanced. So this drives really clinical role expansion in optical retail and also in optometry to take on more clinically oriented tasks in this kind of clinical journey. So role of optical retail and optometry is moving.

And how this is possible? There are 2 main drivers for that. One is the increasing professional educational level of opticians and optometrists in many countries. But importantly, technology is the key enabler really for this shift. So we are in that spot providing these customers with technology that will enable them to adopt those more -- clinically more, let's say, demanding tasks and a bigger role. And typically, what are the first tools or diagnostic modalities adopted in this shift? It's tonometry and it's fundus imaging. And Revenio is really, really strongly positioned in that. So we feel we are perfectly positioned to lead this shift and to improve people's access to connected eye health services.

How we are different? I mean, everyone probably sees the world in the same way. The megatrends are the kind of same. So how Revenio is different so that we believe that we can lead this shift, and we have a winning position in this. Our position in the market is really built on 4 key differentiators. Efficiency is key. It's like the aging population and workforce shortage macro trend expressed at the practice level. It requires clinical confidence at all levels that enables, for example, delegation of clinical tasks without loss of trust.

Ease of use. That comes like hand-in-hand with efficiency, but it includes the -- or adds the human factor into the equation. So it removes the skill barrier from the use of diagnostic solutions. And I guess, as many of you know, iCare Revenio products are known for being highly automated, delegable, learn it in a day, intuitive, and they really are operable by nonspecialist staff. And the good news is that Visionix or ex-Visionix product philosophy follows very much the same logic.

Clinical confidence and quality. That's Revenio's core equity, and that's super critical in medical space. You have to own this. For us, quality means strong clinical evidence backing up or our offering. It's reproducibility of the measurements, it's reliability of the device. You know that when you pick up one of our devices, it will trust in a way.

And finally, innovation as the fourth differentiator for us in the market. Our products are giving customers new capabilities. They're allowing them to do something that they were not able to do before. And for us, the innovation is really related to genuine first in the market. And we have got strong track record of introducing those type of solutions. And what is good to probably mention here as well is that we also innovate in spaces that typically are considered highly commoditized like refraction systems.

So how the current combined portfolio is structured and how we -- how different parts of it are focused. Let's look a bit closer. Our broad portfolio, now combining ex-Revenio and ex-Visionix products and solutions is covering really the entire clinical customer journey from refraction and tonometry to advanced clinical diagnostics like imaging and perimetry. This breadth of portfolio is key to support the strategy to lead the shift from vision care to connected eye health.

We have got strong position in different customer segments, and that's built by different parts of the portfolio. So currently, optical retail, optometry and ophthalmology are partially using different parts of our broad portfolio. But while these roles are evolving, as just described, the needs of the customers are also evolving, and that's where we are very, very strongly positioned in the market. Our portfolio supports this role evolution by easy-to-adopt diagnostic solutions for optical retail where the major shift will happen. And we will also give more confident diagnostic solutions for optometry to adopt tasks that are currently done by ophthalmologists.

And equally important than having a kind of strong future-looking positioning of the portfolio is to be able to differentiate in a meaningful way within each of the product categories. One important part, although it's on the bottom of the slide, pretty thin string there. Our cloud platform is crucial in connecting all our devices and really creating one source for data. And that data is then used for customer-facing solutions where I'll give you some examples in a minute.

So now we are having 2 companies bringing own cloud assets into the equation. We are consolidating those, combining them, consolidating over time, while we make sure that we keep supporting our existing customers and we develop further the customer-facing solutions that are already in scale-up phase.

If we look a bit closer, the role of connected cloud platform and solutions we build on it. Different customer segments operate in different environments and have different clinical tasks as described earlier. That means that clinical data they manage is different. But while data management solutions and tools required may vary, smooth data flow really within the practice and from operator to another is a shared need, and we call it workflow excellence.

The data flow starts from collection of data, which happens, of course, at every phase of the clinical journey. But where necessary, the data needs to get transferred, whether it's a remote review of fundus images or second opinion or referral where necessary. Then when we get into more diagnostic part of the clinical journey, clinical decision support, in these days, often AI-assisted solutions is coming into play.

And finally, when a customer has got -- a patient has got diagnosed or treated, they need to be monitored and clinical data needs to be frequently reviewed to ensure effective care. And last point here now is really multisource data, and that's something that is related to our broad portfolio. So multisource data is more and more used in analysis and supporting clinical decision-making. With our portfolio now covering the whole journey, we are covering also from data perspective, different steps in the journey, and we have a comprehensive view of the patient and data flow during that journey.

So in practice, our common cloud platform will act as a shared foundation for what we call modular customer-facing solutions. It contains some shared features like user and patient data, device connectivity or connections to third-party solutions, data storage, data security and compliance. And today, we already have got several existing customer-facing solutions live and scaling. We have got remote examination. We have got Lenses Experience customer solutions targeted to optical retail. We have got retinal -- AI-assisted retinal screening, which is focused on either on national diabetic retinopathy screening programs or optical retail. We have got clinical workspace and workflow and referral solutions which are targeted to optometry and ophthalmology.

Good. Now that I've talked about the broad portfolio covering multiple product categories, I will briefly take you through the kind of most important ones, the kind of key categories, brief explanations what they do and where we differentiate in these categories.

So if we start from the refraction systems, they measure refractive properties of the eye for accurate vision correction, in practical terms, enabling then, for example, spectacle prescription and sales. Our core in this category is in complete connected digital refraction systems with remote refraction capabilities, and that's not very common. This is new addition to Revenio's product portfolio coming from Visionix.

If we then move on to tonometry, tonometry measures intraocular pressure, which is one key risk factor for vision-threatening glaucoma. We have a market-leading gold standard solution for handheld rebound tonometry as many of you know. And I think that was mentioned already in Jouni's opening as well. Just last week, on Thursday last week, we launched the latest addition to our tonometry family, IC1000, which added connectivity and workflow readiness to our tonometry portfolio as well.

Multimodal diagnostic devices. This is new addition from Visionix product portfolio to Revenio as well. And as the name says, it does many things. It combines auto refractometer with several measurements from anterior and posterior eye. And our devices, they use very unique wavefront technology, examining refractive properties of the eye in a very detailed way. These devices are also connected to digital workflows. They have got remote examination capabilities. They are also linked to Lenses Experience solution we offer to our optical retail customers.

Fundus imaging is more familiar probably. It provides detailed view of the retina, i.e., the back of the eye. It's like a photography of the back of the eye. And that's needed in confident diagnosis of many, many eye diseases. Where Revenio specialty in this category is, it's really in the imaging technique, that's called confocal imaging, providing several big benefits compared to traditional fundus imaging, like being able to image through to cataracts, small pupils, et cetera. So that means the best image quality, sharpness and imageability.

We have also been early in what's called ultra-wide field imaging market, and we are innovating in that space further. That seems to be really a driving trend. Then we have OCT, optical coherence tomography, which was long awaited, I think, to Revenio's portfolio and many have been focusing on this one. So it's like MRI of the eye, really taking a kind of 3D -- noninvasive kind of 3D image of the structures of the eye. And here, our specialty is what's called OCT angiography and related tools, which makes blood vessels and their condition visible in retina and choroid without any die injection.

So in normal store environment, for example, not clinical or hospital environment needed. So Visionix has got strong legacy in this, and we are innovating further in this space. If we move on to perimetry and microperimetry, these modalities are measuring visual field and sensitivity of retina. And Revenio's products are in a unique way, combining really examination of the structure of the eye and visual function. For example, our COMPASS Fundus perimeter includes or contains high-quality confocal fundus imaging capabilities and perimetry functionalities in the same device.

And connected cloud platform and solutions. We spent some time on that already. But in short, our cloud platform really connects devices, captures data from them and acts as a foundational infrastructure for customer-facing solution modules, as we call them, what we build on it. And these solutions, as explained, range from remote examinations to retinal screening, diagnostic decision support and workflow and referrals.

And then something I haven't presented yet as it doesn't belong to clinical customer journey, but there is a kind of solid piece of Visionix portfolio around finishing products. So our lens finishing solutions are used in efficient spectacle lens shaping and mounting. Different spectacle frame types, they require different finishing techniques, and we have got really strong knowledge in that space and can handle them all even in the same device. These solutions are often targeted to optical laboratories and typically located within optical stores. And this is really a new addition to Revenio's portfolio as well.

So it sounds like a kind of broad portfolio, and that's what it really is. So how is the broad portfolio of devices and solutions then used by different customer segments and how the adoption is evolving? I have touched the topic already before, but I think it's good to go it more in details. So every clinic, every examination room, they need certain standard equipment like examination units and slit lamps. And that's what Visionix kind of brings to Revenio's portfolio. Equally, refraction systems, they are needed everywhere. So all the customer segments are using those, and now we have got access to that.

Tonometers. When we get a bit more towards the kind of diagnostic direction, tonometers are broadly used partially by optical retail already, largely by optometry and ophthalmology. And here, our handheld rebound tonometry has got strong position to grow further in different segments, either finding ways to the kind of first-time users or for replacement customers.

Then multimodal diagnostic devices. They are mainly used by optometry and optical retail, where they are linked to our cloud-based solution, supporting remote examination, but also Lenses Experience solution for optical retail customers, supporting ophthalmic lens selection and sales.

Moving to fundus imaging. That's a standard diagnostic modality in optometry and ophthalmology already today. And this technology is now increasingly adopted by optical retail as a part of their clinical role expansion. And this is one great and clear growth area for us.

OCT is quickly becoming a standard of care in ophthalmic diagnostics. It's fully utilized by ophthalmology. It's largely used by optometry. And what we can see in the market already today, it can be really expected to see this technology getting more and more into retail environments as well in the years to come.

Finally, perimetry. That's focusing on glaucoma diagnostics and screening. It's purely diagnostic tool there. And as such, it's used by ophthalmology and optometry to a certain degree. So what's key here is really that we have got relevant offering to all 3 customer segments. And there is change really happening in the market. And we, at Revenio, we are having strong presence across the customer segments and clinical customer journey, which positions us really strongly in this ongoing market shift.

So a bit getting back to the kind of differentiators and how this strong position across the portfolio, across the customer segments is built. So there are 3 main growth drivers we can see really differentiating our offering. Relative importance is varying by customer segment and by product category, of course. But we differentiate either by product features by technology, we have got several unique technologies our products are built on or then we differentiate by business model.

And if we take a few examples from here, taking OCT, for example. There are 2 basic technologies all the OCT devices are built on, but the product features are still differentiating products from one from another. And our strong part here really is related to advanced tools, OCTA, OCT angiography and OCTA metrics, which are the only ones in the Visionix portfolio, which have got FDA clearance, for example. So no one else has got through FDA with those.

If you take software platform and solutions, we are differentiating in many ways. So we are not the only one providing cloud-based solutions, but we are really unique combination of hardware, software platform and AI, which is, for example, our retinal AI screening solution. So we have got in-house all that knowledge with a market-leading -- and creating market-leading solution. Or then taking, of course, tonometry or fundus imaging where we have got strong technological advancements there. So either rebound tonometry or confocal imaging. So that's what is creating really big differentiation in the marketplace. And the highest growth we expect to see is solutions, while all the product categories have got space to grow.

So as a summary, getting to an end. So our connected portfolio covers solutions for the entire clinical customer journey, combining diagnostic devices and cloud-based solutions. Our customer segments cover optical retail, optometry and ophthalmology, really the key strongest parts being in the medical middle field cutting across clinical optometry and general ophthalmology and on the other hand, in optical retail, which is a new big, big segment for us. We are strongly positioned to expand our offering, especially in optical retail and optometry when their clinical roles are expanding. All our product categories are growing and have clear differentiators.

And finally, we continue, of course, to innovate and invest in R&D on the strong technological foundation and customer understanding we have. And this is really supporting easy technology adoption, especially in the optical retail. So we believe that we are the one who can really introduce those new solutions for that change -- supporting that change for that big and growing customer segment.

So this is very much summarizing what I just showed on the portfolio slide. I think we are now finishing this part, and we are good to take a little break, and we will be back in 10 minutes. Thank you.

[Break]

Hello, and welcome back from that short break. We are ready to continue on our agenda today. So we will hear soon from Umberto walking us through how do we drive commercial excellence in the new company. We'll then hear from me from the operational and people's part to conclude the strategic cornerstones and then Jukka in the end for the value creation. But without further ado, let's welcome Umberto to the stage.

Good afternoon, everyone, and thank you again for being here. I'm Umberto Bargiggia, Vice President for International Sales. So far, we've talked about the ophthalmic diagnostic equipment market and how it's evolving, about our strategy to successfully position Revenio in this changing environment and about the immediate value and future potential of our combined portfolio, resulting from the Visionix acquisition.

In this section, we want to show how we translate the strategic positioning and the expanded potential of our portfolio into commercial results, leveraging the synergies between Revenio and Visionix.

As we bring the 2 organizations together, we see 4 core value creation priorities. First, we can capitalize on our commercial footprint. We are combining the best of the 2 organizations to strengthen our competitiveness in key markets.

And second, we can leverage now our greater scale to be more relevant across markets and across customer segments, while at the same time, diversifying our revenue streams across sales channels and geographies. And third, we can increase our sales and margin contribution from our direct channels, creating a stronger commercial engine for cross-selling and prospecting activities, while at the same time, insource incremental margin by selling direct in Central Europe. And fourth, we can optimize our distribution network.

We are assessing our combined distribution network that counts for more than 400 distributors in more than 130 markets to maximize our performance country by country and segment per segment. These are the 4 priorities we will walk you through to show you how we can create greater value together, turning 1 plus 1 into more than 2.

As Jouni introduced earlier, the ophthalmic diagnostic equipment market is a solid and steadily growing market. The U.S. and Western Europe provide the largest contribution to the projected growth with more than 40% of the total expected growth. And a relatively small number of other key markets account for the remaining larger part of the projected growth. And this concentration of growth perfectly connects with our first value creation priority to capitalize on our expanded commercial footprint.

Let's connect now market potential with our commercial footprint. This chart shows the size of the ophthalmic diagnostic equipment market across the top countries. Already before the combination, Revenio was a global company with a strong commercial international presence. We had a direct sales organization in the U.S., and we had direct sales representative directly deployed in the countries to support our distribution partners in Japan, China, India and Australia. But when we bring the 2 organizations together, our geographic positioning changes significantly.

Now we can accelerate our competitiveness in U.S., where already over summer, we have already integrated our companies, and we can increase our strength in Western Europe with 6 mature direct sales channels namely in, Germany, Italy, France, Spain, Portugal and Belgium. And at the same time, we can increase our ability to support our distributors directly in the country with direct salespeople in China, Brazil and Israel.

Let's now look at the added value of our expanded footprint. We see 3 tangible benefits. First, the immediate ability to leverage greater resources.

From day 1, we can leverage greater commercial power, focused exactly where it matters the most, for example, in Europe with our 6 direct sales channels. And second, increased ability to drive innovation. More direct resources means more market-specific expertise, more know-how as well as greater dedication to accelerate the execution of our strategy as well as accelerate sales of our products and solutions.

For example, in Brazil and in Latin America, where now we have resources directly in the country and for the region. And third, greater customer proximity. Having more direct customers and more direct resources brings us closer to our customers. It makes us more appealing for large accounts that more and more often want to engage directly with the manufacturer. And at the same time, it gives a greater ability to understand and serve our customer needs.

Let's now quantify the transformation. In U.S., that is our largest direct market, our combined business is approximately now 1.6x the size of legacy Revenio. And in EMEA, the transformation is even more significant. We reached almost 4x the size of the previous case with a broader and more diverse revenue streams.

We add on top the revenue from our direct channels. We increased the contribution from our indirect channels, and we add on top the distribution from our OEM partners. And in Latin America, we reached more than 3x the previous case, and this gives us greater critical mass and stronger regional impact. In Asia Pacific, Revenio was already strongly established, and this combination further improves our platform for future growth.

But there is another dimension to revenue diversification, our combined geographical scale. Our revenues are now distributed more broadly across geographies and therefore, across markets and therefore, across customer segments. So the combination does not simply make us bigger. It creates a more balanced and a more resilient commercial platform, and it gives us greater capacity to impact the markets that matters the most.

Now let's look at our direct sales channels. In U.S., that is our single largest market, direct market. Over summer, we have combined our 2 organizations, allowing us to build a sales force that is approximately 50% larger than before. And not only that, with more people in the field, we could pass from 18 to 27 sales territories that means reduced territories with a broader portfolio that we can sell there. And most importantly, probably, more than 35% of the combined customer base is newly addressable customer. It means customers that have a relationship with either one or the other part and that now we can target to accelerate our cross-selling capabilities. At the same time, with more people in the field with smaller sales territories that we can address with a broader portfolio, we can also create greater capacity for prospecting.

Let's now move to Central Europe. As we said, we had 6 mature sales channels and through that, more than 100 customer-facing professionals day in, day out, engaging with our customers. And probably even more importantly, through that, we incorporate more than 600 customers already using our software solutions. And this is particularly important to strengthen our leading position in the shift from vision care to connected eye health.

So our renewed positioning in Central Europe is a great asset that allows us to increase the penetration of our portfolio while at the same time, improving our profitability through selling direct. And of course, our go-to-market model is not only about direct sales.

A significant part of our global presence is built through our distribution partners, and we can now count on the combined network of more than 400 distributors in more than 130 markets. We have already started the process to assess our distribution network market per market and segment per segment, and we are doing it focusing on 4 major drivers. First, the strategic alignment. We are engaging with our distributors to assess who best aligns with our values, with our strategy and with our growth ambition. And second, our increased share of wallet.

Our broader portfolio gives us the chance to become more important for our customers and therefore, more central in their strategy. Third, stronger market execution. By selecting the partners with the strongest access to market and with the strongest access to our customer segment, we can now have a better reach, and we can combine this with structured technical service capabilities and with enhanced regulatory capabilities that are more and more important in our space. And finally, proven track record of success.

We have the unique opportunity to assess our distribution partners based on data and business intelligence that the 2 organizations can bring together. And as we speak, we are already applying this approach across more than 20 countries.

So now, so far, we've talked about our commercial footprint, our scale, revenue diversification, sales channels and execution. We want now to present 3 examples directly from the field to highlight how customers are already responding to our strategic positioning and expanded portfolio potential. The first 2 examples are from Europe, namely from France and Italy.

They are 2 very different markets with 2 different health care systems, but they illustrate the same underlying structural trends and needs. For example, demand for accessible eye health is increasing, driven by factors such as we discussed before, aging of population and lifestyle-related disease. And at the same time, the availability of eye care professional is limited, for example, ophthalmologists in France and optometrists in Italy.

And this creates a gap between the demand and the available professional capacity. And that gap requires new and more efficient and compliant workflows, and this is exactly where we come in. Our connected remote use, remote-ready technologies can create the desired value.

They allow customers to expand access, to improve their workflows and at the same time, to unlock new business opportunities. And the good thing is that it's already happening now. In the last 18 months, we've installed more than 200 installations of our DRSplus in France. These solutions are helping to improve geographical access to eye health, particularly in areas where access to ophthalmologists is limited.

At the same time, they are transforming the in-store workflow and supporting an enhanced role for optical retail. In Italy, we have installed more than 60 systems in the last 12 months about remote refraction solutions. We've partnered with one of our key accounts, and we help them to scale up and accelerate their expansion.

And now with just few remote optometrists, they can support more than 60 stores, extending in-shop opening hours, implementing new systems and new workflows for their customers that can have through that a better customer experience. And our third example from the United States. We want to highlight through this the power of our broader portfolio.

We are pleased to share the testimonial of 2 doctors, Dr. Julie Rodman and Dr. Mile Brujic, both of them already using a Revenio EIDON fundus camera and the Visionix Solix OCT. Let's hear directly from the doctors how the combination of the 2 solutions add value to their clinical confidence and ultimately to patient outcome.

I feel very fortunate to have the EIDON and Solix in my practice. They're both super easy to use and integrate right into our workflow. They are intuitive and anybody can learn how to use them. The EIDON provides the highest level of detail and resolution. The Solix is a multimodal imaging modality. I am always awed at the amount of detail and high image quality. Together, both of these devices have really allowed me to be the best diagnostician that I can and the best doctor that I can be.

We've had the EIDON for years now. The detail and the intricacy that we can see with this just elevates our clinical game and actually standardizes everybody's fundus examination. The Solix, in particular, is then our supplementary tool.

So we really leverage both of these technologies to optimize patient care and ultimately, the patient's experience in the practice by giving us more information to help those patients better.

Well, clinical confidence couldn't have been explained better. Thank you, Dr. Rodman, and thank you, Dr. Brujic, for your testimonials. So now let me bring this all together. In this section, we presented how we translate the strategic positioning and expanded potential of our portfolio in commercial results. And therefore, how we plan to continue accelerating our sustainable growth.

We want to focus on 4 major pillars: to capitalize on our expanded commercial footprint, to leverage our now greater scale and broader revenue diversification, to increase our sales and margin contribution from our direct channels, and to optimize our distribution network.

Thank you. Mari, back to you.

Thank you, Umberto, and hello, everyone, again. My name is Mari Korhonen. We've heard a lot today about how -- what kind of ambitions we have and how we can sort of make a change now in the new chapter. And my focus is now to really go through how do we enable that. So -- and this will be done through the operational excellence and quality with people and culture as the foundation.

So we continue building on and strengthening the scalable and cost-efficient and really resilient operating model that supports our growth and really strengthens the customer experience and safeguards the high standards of quality and compliance. We are advancing this through three clear priorities that I'll walk through now. First, we will really simplify and strengthen our global supply chain network. This means to improve the resilience, balance internal and external capabilities and applying dual sourcing, for example, where it creates value.

We will clearly define what capabilities we should have in-house that they are strategically important and where we need to trust on manufacturing partners, for example, for greater flexibility or scalability. Secondly, we will further advance our customer care and service operations to really combine the strongest capabilities from both of the organizations and harmonize the key processes to be consistent and responsive and to be able to provide that high-quality customer experience, really regardless of whether the product is sold through our direct channels or through distributors.

And thirdly, the quality is at the center of everything we do. We will strengthen the quality culture in the company and really provide an uninterrupted market access to continuously improve our performance in doing that. For us, quality is not just about product performance. It's about how we serve, support and collaborate with our partners and customers.

The business continuity will be critical when doing any changes, and we're going to phase this very deliberately to execute in a controlled way to protect the customer relationships and our day-to-day operations.

So, in short, we remove the complexity where it doesn't add value. We will build resilience where there might be a risk of disruptions and really protect the quality in everything we do. And that is how we enable excellence and again, scale with confidence. And to our final strategic cornerstone, which is developing people and culture as our foundational strength.

We strongly believe that our ability to execute the strategy will ultimately depend on how our people operate and how effective we are as one company. So the ambition to build a one, integrated organization with a shared culture and a positive employee experience is there. Three areas here as well, how do we continue enabling a high-performing organization. This means that we will have the right capabilities in the right roles.

Everyone knows what's expected of them that we align individual and team targets to really support a high-performing organization. We are creating a one company culture. Like already mentioned earlier, we have done a culture survey and to really understand the strength and characteristics of our both organizations. And the results show that we are very well aligned.

And there are also, of course, areas we can develop our new shared ways of working. Third, the employee experience, how we strengthen that and also strengthen the growth. We want Revenio to be a fair and transparent workplace where everyone can have meaningful opportunities to develop, contribute and succeed and employee well-being will remain an important part of that experience.

So together, all of these priorities will support the performance, our capability to innovate and ultimately, our long-term success. Surely what I mentioned, but I really want to shortly rephrase the operational excellence and uncompromising quality are the foundation of the scalable profitable growth. And the unified culture and the high-performing organizations really act as critical enablers for this integration to be successful and our long-term performance to be secured.

But let's go to Jukka and here in the fifth section about how we're positioned for value creation. So over to you, Jukka.

Thanks a lot, Mari. Nice to be here today. Actually, nice to see so many people here present and of course, online as well. And you have heard today our new strategy update in the market dynamics shift to the connected eye health.

You have heard about our new product portfolio by Erkki, go-to-market plan, our priorities in the operational excellence and people side as well. And what I'm going to present, I'm going to present how we turn that to the value generation, what's our revenue plan over the years, profitability plan and of course, as a result, our new updated financial targets.

But let's start first -- let's look a little bit about our history. What has been Revenio historical track and look in the net sales, profitability from the adjusted EBIT point of view and cash flow. And between the years 2019 up to 2025 -- we have been able to grow our top line, basically doubling that from around EUR 50 million in 2019 up to EUR 110 million during the year 2025.

And that has been always complemented and strengthened by the selective strategic M&A over the years, both in the hardware side and also software side.

And of course, the latest transaction, the Visionix, what we are covering here today as well. Then when looking at our profitability profile, which has been adjusted EBIT between 24% and 31% over the years, which is definitely one of the highest in this industry where we operate. And on top of that, we have been always generating strong operating cash flow as well when you look over the years, peaking up to EUR 30 million during the year 2025. And this has enabled us our investment on the products, also in R&D, 10% a year.

But at the same time, this creates a great foundation for the company in this new strategic phase where we are entering today. Then let's look again, a little bit repeating the reasoning of the Visionix transaction. Of course, the key driver is this market shift, like Jouni highlighted, from vision care to connected eye health. And what do we now have after the acquisition?

Like we have highlighted, our total addressable market has increased to more than USD 1 billion a year to USD 2.7 billion, so 2.5-fold increase in the addressable market. Then in addition, we have a stronger global presence, both in North America, Europe and APAC as well.

And then third one, we now have in our portfolio, OCT offering and other complementary offerings to serve this new market dynamics where we operate. And on top of that, this new scale enables us also the improvement in the profitability levels from the synergies and operational leverage side as well. And the next one, I'm just showing the indication of the new scale of the Revenio group. And these are the pro forma numbers from the year 2025.

So like you see the top line, our pro forma net sales in year 2025 was EUR 253 million. So quite a significant growth from the EUR 110 million what we reported out as a stand-alone revenue. And out of this EUR 253 million, our recurring revenue base is around 20%. So quite a significant base coming from the recurring revenue as well.

And when looking at the profitability levels in the pro forma numbers, adjusted EBITDA, EUR 45.3 million, 17.9% of the net sales. And just reminding, we are now targeting this EUR 20 million EBITDA uplift to joint value generation and the synergies, and we expect that to be in place by the year-end 2029. And the next one, you see the revenue breakdown pre-deal and post-deal when looking pro forma numbers in year 2025.

In old Revenio, EUR 110 million revenue, around half of that came from North America, so EUR 55 million, 1/3 came from the EMEA and LatAm region, so EUR 36 million and the EUR 18 million came from the region APAC. And when you look now this new group in pro forma numbers, North America revenue has grown to EUR 90 million, but at the same time, share of that has dropped from 50% to around 1/3 and of course, same time, significant growth in our revenue base in EMEA and LatAm from EUR 36 million up to EUR 139 million. So more than half coming from that region and then increase in the APAC revenue as well from EUR 18 million to EUR 24 million.

And the key highlights here is that we have less dependency on the one country, one region, broader revenue base of customer and geographies, which gives us more avenues to grow in the future. And then let's go to financial targets. So net sales targets for the years '27 and '29, 5% to 10% compound annual growth rate and adjusted EBITDA, 25% by the end of the year 2029. And the following slides, you see our plan and the steps how we get there.

Starting from the revenue, as I said, 5% to 10% compound annual growth target over the years. First thing, first driver in the top line growth is, of course, continue growing the existing portfolio, existing business and of course, cross-selling the combined portfolio as an example of the high-growth offerings of OCT, multimodal, what both Erkki and Umberto covered earlier today.

Then on top of that, we have now better access on different customer segments, different geographies, optical retail, broader access to optometry and some direct account as well on top of that. And then the third one, of course, we continue our R&D, our product development of the bundled combined offerings of the software, hardware in the market fit what was described today.

And then about our profitability plan and bridge over the years, of course, one critical element, what I'm going to show in the following slides is our synergies, EUR 20 million synergies altogether, what we aim to reach. And then on top of that, top line growth is bringing the operational leverage for the company. And then the third one, our continued focus in the software and services are improving our margins as well. And then let's cover a little bit our EUR 20 million synergy plan.

So like we have communicated, we are targeting by the year-end 2029, EUR 20 million synergies, bringing the annual recurring EBITDA uplift for the company.

And these are basically in 2 different areas. So commercial drivers, bringing 30%, and that includes optimizing our distributor network, like Umberto was highlighting, cross-selling to existing customers and, of course, getting new customers based on our new scale as a company. Major part of that 70% is coming on our improvements in operating model, fixed cost efficiency, improvement our supply chain, operational setup regarding production assembly overall.

And like we have communicated, we expect 70% of that to be reached until the year-end 2027. And like Jouni highlighted, only 3 months after the deal close, we have already secured 25% of those synergies, so EUR 5 million altogether. So we are well on track with this plan. Next one, regarding our one-off costs, which are fully connected, of course, on the acquisition and related integration.

So like I communicated, we expect the one-off cost to be more or less the similar size and amount than this EBITDA annual uplift of EUR 20 million, what we are gaining. And what are these one-off costs? So a big portion of the one-off costs are coming from IT. It's coming from restructuring. It's coming from marketing and branding and overall project management costs.

And we expect around 70% of those costs to happen between years '26 and '27. And what's the payback for those costs? Just repeating this EUR 20 million annual recurring EBITDA uplift by the year-end 2029. The next one regarding the rights offering, like we have communicated, we are planning during the H2 share issue at [indiscernible] EUR 80 million. And Nordea is our global coordinator in the share issue, and they are our underwriter for the case as well.

And like we have communicated, our main owners, William Demant and sellers at the deal close moment, owning 31% of the company, have irrevocably committed to subscribe the shares pro rata in the share issue. And the funds from the share issue, we will use to pay out the bridge to equity facility, EUR 80 million, what we got in the deal closing May 2026.

This is a little -- covering also the balance sheet metrics regarding the share issue before the share issue planned and after that, like we communicated in connection to quarter 2, we had a net gearing of 159% at the end of H1. After the share issue takes place, we expect that to drop to around 70% level. We also made public our net debt-to-EBITDA ratio in the quarter 2, which was around 5.3.

We expect that to drop on the level of 3 after share issue takes place. And equity ratio, we expect also to increase from 31% to up to 50% after share issue takes place. But remember that on top of that, of course, we continue as a company, deliver strong profitability, strong cash flow generation and that, of course, improved the balance sheet metrics over the time in the future as well.

Then at the end, like I commented, net sales target compound annual growth rate, 5% to 10%, driven by 3 different drivers of the bigger size of the company, broader portfolio, growing the existing business, utilizing the high-growth offering of multimodal and OCT offerings and of course, focus also in the recurring revenue side as well. And then adjusted EBITDA of 25%, driven by synergies, operational leverage and the higher margin coming from the services and the software offerings as well.

Then at the end, our priorities as a company on the short term and midterm regarding our value creation journey. In the short term, of course, we have been focusing, we will be focusing, combining the organization, which is well on track at the moment. We will continue developing our enterprise-level processes, our system landscape, our IT application regarding the both companies.

We will start taking the quick wins, as you saw in the procurement side, also in the go-to-market side, like Umberto highlighted. But of course, we, at the same time, start also planning the long-term synergies as well. On the midterm, when looking in the years '28 and '29, we will capitalize fully our go-to-market asset as a combined company. We continue developing this new turnkey solution regarding the market shift.

And then when looking that period beyond, we will continue strengthening our market leadership as a company. And of course, we also focus on the strong business performance as a company. But all these taking into account, there is 3 things we never compromise. First one is the business continuity. Second one is focus on customers and customer satisfaction and of course, our people in the Revenio Group. Thank you. And I think I hand over to Jouni, our CEO, as the next.

Thank you, Jukka, and the team. I think it's time to start wrapping the things up. So as I said earlier, so we are closing a chapter. We are closing a chapter in our growth book, which has been lasting more than the 10 years. But by the closing that one, we are going to open a new chapter and the new chapter heading is geared towards the leading the shift from vision care to connected eye health. And if we go through now the cornerstones, how we are going to do it. So Erkki covered the logic why it's critical that we can really increase, we can advance the clinical confidence and the workflow excellence across the different players when we are going through this shift. Then Umberto went through the benefits of combining the 2 companies in terms of having a more customers, in terms of having a more wider product portfolio and have a wider access to these customers in order to be able to sell more in order to be able to shift the vision care players more towards the connected eye health.

And then Mari went through the operations part, how we are going to even further improve the operations, the way how we work. And then Mari also covered how we are continuing keeping the people and the culture as a cornerstone of enabling our future growth. And if we do all these well, like we have been doing throughout the years, working also with the brand and with the ESG, I'm sure that this next chapter is also going to be the growth chapter for us in a profitable manner.

We are well positioned to lead this shift. So macro trends are backing us up as we have seen today. We have seen today that the product portfolio is extremely complementary, highly complementary and it's differentiated. And we really cover with the hardware products, with the software products, we are able to cover the entire clinical customer journey. Then on the scale side, so like Umberto said, amount of the customers is increasing, then we have a way more greater footprint, if you think from the sales go-to-market perspective. I mean, honestly, it looks good for the future.

And then lastly, but sure, not the least item, so we are culturally aligned. So if we take the old Visionix team, we take old iCare team, the culture seems to be aligned, and this is a great asset for us to forward the integration, which is going extremely well as we speak. So we have been able to execute now first 25% of the EUR 20 million EBITDA uplift, which we promised by the end of 2029. And then as Jukka said, so we are today also reiterating the financial targets in order to be way more clearer than the 3x faster than the market. Because most probably market hasn't been increasing too much. So now we are really stating and hopefully making this one more simple to you all. So the target for the growth is going to be 5% to 10% with the 25% adjusted EBITDA target by the end of 2025. But with these words, I think, Mari, it's time to move to the questions and answers part. There are hands up and run again, but maybe we sit down first, if that's okay.

Mari, over to you.

Thank you. Thank you, everyone. Lovely to hear from all of us. And let's go towards the questions. We could first have a few ones from the audience. I believe there was some hands up. So please maybe the lady from the front row.

This is Pia Rosqvist from DNB Carnegie. If I start by looking at your growth ambition of 5% to 10%, how should we think about the lower end of this range versus the higher end of the range? In your scenario analysis, what would take you to the lower end, but not to the high end? And what would take you to the high end?

So I would perhaps try to answer this one first and then colleagues please help. So we have been looking this one from the different scenario point of view. So like bit Erkki mentioned at the beginning, so we have a couple of high-growth segments, which are growing faster than the 3.9%, which is the average market growth for ophthalmic diagnostic devices. So we are envisioning that we are able to grow on the OCT side way faster than the market is basically growing. And if that growth is what we have been expecting, so from the OCT perspective, we are shooting towards the higher end of the spectrum. Then if we go for multimodal part, so if that part goes as expected, so that again brings us towards the higher part of the spectrum.

And then if we take the traditional one, so we are estimating the tonometry growth is going to continue, but most probably not on the high-end part of the spectrum because tonometry market in general, if it's growing normally, I mean, it's single digit, close to 0, perhaps 1% to 2%, but we have been able to grow way faster. Then on the fundus imaging side, there, we have been able to move also the needle, but I think that hits not on the higher end, but that hits on perhaps a mid-range or lower part of the bracket. I-- hopefully, this explains. And of course, we have to execute. One thing we have to also remember is that if you go to the finishing part of the product, so that market is not growing too much. So if you continue the whole company portfolio, which we said that it's 5% to 10%, if you consider that the finishing part is reasonably stable, good business, but reasonably stable. So it means that on the other ophthalmic diagnostic device side, we have to then grow a bit more faster. Hopefully, this answered to your question.

Yes. And if I just may continue with a specification. So how much of your current sales do these fast-growing segments represent? How much is OCT and multimodal devices of your -- the current combination EUR 253 million?

So unfortunately, the same trend is going to continue on this one. So unfortunately, we are not giving a product line specific numbers regarding to the revenue. So it's a bit like what we have been having a habit what we have had on the old Revenio side, sorry.

If I still continue with another question, just reflecting upon your long-term target, which is for an EBITDA margin, whereas you guide now for this year on adjusted EBITDA, why this discrepancy in the target setting?

Yes. It's a great question. And we wanted to be systematic on the deal close when we already announced some EBITDA targets for the mid and long term. So we wanted to be systematic with that and not to break that. And that's right for this year when look at the guidance, we use the EBITDA on the short term. So that was the main reason we wanted to stick on the mid and long term in the metrics we came out in the deal close.

And maybe building top of what Jukka said. So if thinking the A part and the forecasted A part because of the PPA depreciation. So are you open -- are you willing to open the bit amount so that you end up kind of at the guidance bracket?

Yes. So at the moment, our PPA depreciation on the annual level is more than EUR 8 million, so around EUR 8.2 million when looking at the annualized amount.

Hopefully, that builds the bridge to the guidance.

And then my final question for now is really on your combined sales, the EUR 253 million. In conjunction with the acquisition of Visionix, you showed a share of sales split with roughly, I think, 23% coming from OEM sales for Visionix. And now my question is what will happen with this OEM sales? Is it something you are now reducing? Should we analysts think of EUR 253 million as the base level going forward? Or will there be a shift in that revenue mix, a reduction in the revenue mix?

Maybe I take this one. So if we go for the Vision and also in the new combined company, so the OEM business, it is actually quite lucrative for us and what also Umberto mentioned regarding to the open, the access, perhaps the places where we wouldn't be without the OEM deals. And here, I'm referring especially to lens business. So quite a lot OEM businesses, I mean it's VX650, et cetera. And the OEM players are actually buying from us and bundling than the devices what they get from us with the lens business. And that's not -- I mean, that's not bad for us. It's good for us. And then, of course, there's a question that do we have -- is it a reasonable margin or not, but it's actually on the margin level comparable to the margin which we are going to get through the normal distribution network. So it's not kind of eating the margin compared to the normal distribution.

Anything, Umberto, you would like to add on this one. So not planning. So having a discussions with these players, and they are strategic for us and planning to continue to work with them. But Umberto, anything you would like to add because this is a ex-Visionix business.

Perhaps just highlighting that our experience so far has been that the partnership with them is a big enabler to bring to market new technologies has helped to drive in the market what we develop and innovate together with them. So I think it's a good asset and that will help us also in the years to come.

This is Nikko Ruokangas from SEB. I have 3 questions, and I'd like to start with maybe a bit larger picture on your strategy. You emphasized quite a lot that you want to enable optical retail to take broader or more diagnostic and treatment there. And I understand that you got more access to the segment through the acquisition. But I guess that Visionix has had access to the segment also as well as well as kind of other segments. So has Visionix tried to do that expanding from Vision Care to eye care and how successful has it been?

Erkki, would you like to take this one? I have a certain thoughts, but first, the guru words from Erkki.

Well, I can. So I would answer in probably in a couple of ways. So yes, the product offering, what Visionix has had is kind of -- has been fitting to that shift partially already. What is really kind of new here? I mean, Visionix brings really kind of a solid customer base in that optical retail where we haven't been so strong in old revenue. That said, as I mentioned in my presentation, some of the first diagnostic modalities often taken into use in optical retail are tonometry and fundus imaging. And if you look at the Revenio's product offering in there, our products are, I would say, perfectly fit and probably better fit than Visionix has been in that spot. So if you look at our DRSplus confocal fundus imaging camera, for example, fully automated, easy to use, easy to adopt to use and has proven to be successful in those settings.

So I think we are complementing each other, we have bring some really solid product offering and knowledge from eye care to those customers Visionix is having already. So it's complementary in that sense. And probably to add one more thing. So where Visionix has been really, I think, strong and good and innovative is to introduce those cloud-based solutions to those optical retail customers. For example, combining multimodal diagnostic devices we just talked about into Lenses Experience solution, which is supporting those customers. And we both have had some activity in retinal screening, AI-assisted retinal screening solutions where I think we can combine strengths of the both companies in one solid solution. So it really combines -- we have been operating slightly in different kind of areas, and it combines the strength of both.

One thing Erkki came to my mind. So are you able to open this Lens Experience? Maybe it's not familiar term for all.

Yes, sure. And that really relates to the customer profile in OEM business, what Jouni mentioned earlier. So main partners there are big ophthalmic lens manufacturers who are combining their lens offering to our multimodal devices or the data produced by our multimodal devices. So our devices are capturing refractive and other data from the customers, which then can be used in profiling the best fitting ophthalmic lens solution for customers. That supports the -- typically the sales of premium type lenses for the customers. And that's the kind of a big joint interest. Our multimodal devices are capturing data that is then transformed into a kind of sales support tool for optical retail customers. And that's, of course, a joint interest or common interest of both lens manufacturers and us as a tech provider.

All right. Then a question on integrating the 2 companies. You said that you are going to decide what capabilities to keep in-house, what suppliers and distributors to use. So I guess that these are quite essential for the cost synergy generation. How long are you in the planning phase of this?

So as we covered already during the Q2 and today, so we have been able to now conclude the organizational setup in the U.S.A. So now both teams in the U.S.A., we have organized them already in a new way. That covers the sales that covers the operations that covers the finance, it covers the whole U.S. entity. So they have been running now full steam roughly 6 weeks, I would say, in a new setup. And then, of course, we have plans and understanding that how we are able to move the countries in a setup that we drive the global functions through more. So if we go to the kind of old Visionix setup, so they were quite country-specific, very tight country-specific P&Ls. So U.S. had, as an example, own stock management for the product, own service organization, own customer service.

If we go then for -- as an example, for Italy or we go for France, so pretty much the same. And what we have been now doing is that we try to find the best pieces from the ex-revenue and ex-Visionix side so that we tighten up the old Revenio model or revenue model so that in the U.S.A., we have a P&L, rest of the world, we have a P&L, but we bring the global functions then to cuts across so that if we think the warehouses, logistics center, service, customer service, whatever is it, finance and control, quality, so they cut across and the direction and the development is coming from the global functions and then we main and keep only 2 P&Ls. One is the U.S.A., one is kind of the rest of the world, which Umberto is looking for. So -- and there, we have plans in place how step-by-step we take this journey forward.

Okay. And then continuing just on this, have you made kind of on higher-level decisions on kind of you having before the transaction, a lighter production model compared to Visionix maybe doing more themselves? How do you want to mix these 2 different production models?

There is the plan is developing. So we are looking the pros and cons for the both models and really looking also the kind of a total cost and then working on that front that what's an optimal model. So is it really to go really like Revenio used to be really light asset base where we don't manufacture anything or assemble anything by ourselves compared to Visionix model, which is the hybrid. So own manufacturing and part is through the strategic manufacturing partner. So this work is ongoing. I think we'll come back to this one when we have a plan ready.

Okay. And then the last one on sales growth. You are targeting 5% to 10% organically from '27 to '29. So first one, does this include also organic growth from '26 to '27? Or does it start from '27 onwards? And if not, are you kind of targeting this 5% to 10% kind of growth also in '27?

I can take it.

Yes, you can take that.

Yes, it's an organic growth target with the years '27, '29. So organic growth in '26, of course, is a starting point in our targets.

Do we have? Yes, of course.

Yes. Just a few quick ones from me. Yes, Daniel Lepisto from Danske Bank. So maybe a question on your key customer segments now post the transaction. So can you run us through on the -- what's your customer split at the moment? So I guess, optical retail become much more important for Revenio now post the transaction. So can you give us any percentages on the customer split?

Umberto, do you want to go?

Yes. So I think after the integration between the 2 companies in terms of split between the customer segments, we are quite well balanced with Revenio that historically was more on the optometry medical side, and we were more on the optical retail side. So this creates a very good blend. Our direct sales channels, for example, in Europe, they were primarily focused on the optical retail in Europe -- in the U.S. was more optometry in a similar way as Revenio did. So I think we are quite well balanced and around a 50-50 split, I think, between optical retail and optometry medical.

All right. Then I would like to know about if you can disclose anything about the gross margin variation between different product categories. So what are you willing to share from the different gross margin profiles of your different products?

Yes. I can comment on that. Yes, this is not what we disclose by product, the gross margins. But maybe it's worthwhile to look with the indicated numbers from 2025 for the combined company. If you look at the gross margin levels for 2025, it was around 60% level for the combined company. So I mean, that indication we can give you. But unfortunately, we cannot share you the exact gross margin by product line.

Can we -- or should we assume that all the products in Visionix portfolio carry a similar gross margin like the OCT and also the refraction and etching products?

I can comment on that. What we can comment that the gap between different product lines is not that big there. So actually, it's quite a positive overall when we look at the different gross margins in the Visionix, a product line side.

All right. And the final question on this recurring portion of your sales. What's the ambition here? You shared it's 20% of total. It seems that there's a little bit more of cloud software business in Visionix compared to Revenio. So what's the sort of a long-term view of this business because it's part of the margin target as well, the software sales?

Yes. Yes, like we communicated, gave the pro forma numbers that around 20% is the recurring Revenio base in the new combined company. So of course, we continue strengthening that. We don't disclose any numbers over there. But of course, constantly increased asset base will drive the spare part sales overall also in the future. And of course, we continue commercializing, for example, our software offering as a bundled offering on our devices.

Perfect. There's more questions from the audience. Yes.

It's Kimmo Stenvall from OP Markets. One detail question also on my behalf. The nonrecurring cost next year about 50%, so approximately EUR 10 million. So what are the main targets? Or is there something IT-related big projects ahead of you? Or what is the reason for this?

Yes, I can yes, share you kind of the main elements of the one-off cost overall. So of course, IT is the one big item over there. Also the branding and marketing, second big item, restructuring cost overall kind of the third big item and some project management costs on top of that. So those are the big kind of ticket items in the one-off costs overall.

Joni Sandvall from Nordea. Two quick questions. Starting with the U.S., old Revenio have roughly 50% of the sales coming from the U.S. and now you are as a combined company, roughly 1/3 coming from the U.S. So obviously, it seems that there is room to grow in U.S. and you have now the combined sales team in place. So what are the key actions to drive this? And where is the ambition in the U.S.? Is there something that has been lagging in Visionix, why the sales -- share of sales has been lower compared to old Revenio?

Yes. So as we discussed earlier, we've already integrated the 2 companies over summer. And in our opinion, this is now allowing us to be way more effective and efficient in the market. We talked about now having 50% more salespeople in the field. So this is our #1 driver, more people customer-facing. Broader portfolio, this is certainly another element that will help us being more effective in front of our customers, having more point of contact and engagement with our customers. And also thanks to the more people we reduced the sales territory. So they will have more time and more visits that they will be able to do with our customers.

And then we can leverage on real customer base. So we have, on a conservative assessment so far, more than 35% of customers that are newly addressable. So either the one company or the other has already sold, has already a relationship but hasn't yet managed the other one. And with that, we think we can strongly accelerate our performance over the months to go. And over summer, we already invested quite some energies into bringing the team up to speed. So we can say that now as of September, we are ready to be fully operational in the field.

Okay. And secondly, maybe a question, you are speaking about the change in the market as such. So could you elaborate anything on the R&D cost it has been on the Revenio, roughly 10%. So what should we expect now during the strategic period?

So all the plan is to -- based on the current understanding, so we are going through the portfolio, so more or less keep it on the same level. So if I recall the numbers right, so has been slightly below the 10%. So we now look the portfolio with Erkki's team and then we do the decisions, how do we allocate the capital. But I think the good guidance is that more or less the same amount of the Revenio, roughly 10%, we are going to invest into the R&D.

And any split within the R&D because historically has been maybe more on the products, but are you expecting to put more money on the software side now?

Yes, we have had a quite tight guardrails on having 1/3 to the software, 2/3 to the hardware side. And I would assume that it's going to continue like that and really the fact is that if you look at the strategy, so we really have to nail the products and like we now have even on the combined company. So we have a compelling road map for all the product segments now on the works. So we have to guarantee we get them out, then we consolidate the cloud assets into a one platform. So that work is ongoing because now we have a 2 cloud offering. So I wouldn't see that we wouldn't increase the software side. So we keep the teams pretty solid as they are.

And of course, if there are new opportunities, we need to lock in, so then expanding, of course, on the software side. But this is the current feeling. Work is on the progress. And then we are really now moving after the CMD also the budgeting planning for the 2027.

Great. Thank you. We could take a few questions still from the -- from online. So there's one regarding the brand that the most valuable asset of Revenio is the brand eye care. So the fully benefit the brand should mention with all the items that we deliver. So earlier, it has been suggested that the Revenio should name itself as eye care. Have we talked about this? Or what's -- have we heard the idea?

Maybe I could pick this one. I think this is perhaps a bit more complex and -- and Jussi, who heads our marketing sits here. So he's having with his team and with the wider team, he's having a project ongoing regarding to the branding. And it's not so simple as it seems to be or as you can kind of feel so whether it is it eye care, whether it's Visionix, okay, then if we go for OCT, Optovue is extremely strong. If we go for VX, VX is strong. So we are now really with the Jussi and with the Jussi's team really forming up a view in an analytical way that which of the brands are really seen as a valuable brands and resonate among our customers and patients and so forth. So this work is ongoing.

And I think we open also the discussion that in the coming months, okay, so should we even think and work on the Revenio brand. So these all are in the one package and team is heavily working on this one. And I would assume sort of towards the end of the year, I think we are wiser on that one. What would you say Jussi, you are nodding there. Sounds good. So maybe that answers.

Then a short question. Will you report eye care and Visionix separately or at least disclose the organic growth and synergy run rate quarterly so that the market could track the progress against these targets?

Yes. So I can comment on that. Of course, we will continue improving our financial reporting. So that will be the key in order the capital markets to understand what's the organic growth, inorganic growth overall. So that's -- we will, of course, keep the capital market informed about our progress and our top line growth from the inorganic and from organic point of view.

And if you really now look what is out, so you have a 25% pro forma out, that's a combined company, you have 20 -- first half '26 pro forma out as a combined company. We come out with the Q3 numbers, that's a combined company. We come out with the Q4 numbers, that's a combined company. And I mean, then you go back and you compare, so then you can see the organic growth from that one instead.

Yes. Correct.

Great. I think we can still take a few questions. There are some interesting ones in the chat. One being, why does it take so long as 2.5 years to realize the cost synergies? And do we see what are the main obstacles that prevent us from realizing them, for example, by the end of 2027.

Maybe I take a part of the question. So when we set the target for EUR 20 million EBITDA uplift, 2 major parts, cross-selling, upselling, so coming from the synergy side to increase the top line with the combined portfolio to the new customers, then we have the OpEx one. So OpEx one, perhaps a bit more straightforward regarding to the cross-sell, upsell, what we have been doing, as an example, in the U.S.A., we have been training the sales team across the products. We are building the cross-sell, upsell plans. So it just doesn't go as smoothly as that.

And then if we go on the product side, so -- or we go on the operation and assembly manufacturing side. So it's just not like a cliff that everything is done on the 18 months in a year. So we now go prune the portfolio, look at it in an analytical way, have a discussion with the customers. where is traction, where is not seems to be that the traction is good, but still we do the analytical work. And then we look supply chain, we look manufacturing footprints, et cetera, and that's just taking time. Maybe that answered.

Yes. Yes, I think so. Thanks, Jouni. Then there is still a question and also a comment from [indiscernible]. Even though the targets were expected, I think that EBITDA target moved from 25% in 2028 to 2029 to 25% by the end of '29. So there was some nuance that can we elaborate? And the 30% post 2030 ambition was no longer mentioned that why is this? And do you think the 30% is realistic and how?

Yes. I think what we earlier communicated, it was this 25% in the deal closes between the year '28, '29. So it's quite aligned with that communication what we came out in May this year.

And then what comes to 30%, so whereas you are somewhere there. So I mean, the logic is that we are now talking about the strategy period ends up at 29, so not moving that part so that we are trying to get, of course, the EBITDA levels up from the 25% after the 29.

And I at least have one very interesting question here. I would like to still coming from Juha. So why hasn't the market grown in recent year? And why is this going to change? And are there some -- what are the biggest market trends that really separate the winners from the losers during the next 5 years? Or we could talk about the strategy period.

Maybe regarding to the growth. So if you look the data what we have, so of course, mainly we have a data from publicly listed companies that have they been growing or not, have they been profitable or not? Maybe there are some others which are not listed, which are not growing. But I mean, in general, what's good at the revenue side. So at least if we look years back, so we have been able to constantly growing faster than the market. I think that's a positive thing and what was the second question...

Then what separates then winners from losers in the next 3 years? I think that's an interesting question to make and talk to..

I have actually answered, but maybe Erkki you pick up this one.

Probably commenting on the first one still briefly that, of course, the kind of environment -- operating environment has been quite uncertain over the last couple of years and this kind of capital equipment investment, you can postpone for a certain period of time. But at some point, the kind of you have to invest because the kind of main drivers, the demand is increasing and the kind of drivers are still there. You can adjust a bit timing. So that gives certain kind of fluctuation to the market.

What separates winners from the losers I think it is really kind of a few things and broad portfolio is one thing. So really being able to offer solution for the entire clinical customer journey, which is taken care of by all those 3 main customer segments we went through in the presentation. So there is less and less, let's say, kind of certain pockets. -- well, you may find a pocket where you can kind of be excellent and survive and really kind of perform well. But really to build a long-term sustainable, successful business, you need to be able to tap into these shifts in the market like we are now doing big time, and that requires a kind of broader portfolio. And there are not too many players being able to do that. And when it combines with a strong presence already in the kind of those key customer segments, I think that's what is one kind of winning formula.

The third one is really now really kind of looking to our strategic choice and really kind of strategy to lead the shift from vision care to connected eye health. Technology adopted in those, if you like, kind of low levels of the clinical hierarchy, technology kind of types has to be kind of right. So you really have to have easy to adopt solutions for those customers so that you can really kind of win that market. And that's where we are extremely strongly positioned.

Thank you, Erkki. Do we have any more questions from the audience before we conclude for today. There's one hand up.

One question. Now you have moved into the different segment, the lens business. And who are the competitors? I remember that Essilor bought Heidelberg and for the OCT. And what are your main competitors at the moment?

Should I start? So we have -- just to make it clear, we haven't moved to lens business, ophthalmic lens business. So we are serving, yes, new kind of growing kind of customer segment is in optical retail, the customers who are selling lenses, but they still need to have diagnostic technology to perform the examinations then, of course, allowing them to prescribe spectacles and sell the lenses. So I would say that the competition remains largely the same. So we have been kind of competing in this marketplace already previously. So I don't see any major change in that. It may be that, let's say, the kind of weight of the kind of weighting of the kind of different players in this specific -- more specific position we now take in the market may be different, but names of the players are pretty much the same. How would you say?

I would say so.

And who they are?

They are ones like Topcon or Zeiss or NIDEK, all these kind of big players.

I think we are ready to wrap up for today. If no further questions also from the audience. I much want to thank you all the various presenters today, all of the audience here in Helsinki. And of course, everyone joining us on the lines, big thank you, and have a lovely rest of the afternoon.

Thank you.

Good afternoon, and welcome to Revenio Group Q2 earnings call. My name is Jouni Toijala, and I'm extremely happy to have Jukka Kainulainen joining in a call with me today. So Jukka has started as a new CFO about a week ago, right?

Yes.

Right, Jukka? 2 weeks in a row almost. So would you like to introduce first yourself and then we get that to the agenda?

Yes. Thank you, Jouni, and of course, very excited to be here. It's so exciting moment for Revenio after the strategic acquisition and starting totally new journey as a new combined company. So great to be here and -- previously has been spending my last 10 years in the global technology growth company is, of course, focusing always on the growth, profitability and also capital allocation, and also acquisition is a little bit earlier in my career and the related integration topics. So great to be here, and thanks a lot, Jouni.

Thank you, Jukka. So let's jump to the agenda. So we are going to run a bit more different earnings call today. So we start actually with the Visionix integration status, then we are also going to go through where do we stand regarding the synergy. So we discussed during the transaction closing and announcement regarding to the EUR 20 million EBITDA uplift target. So we are going to recap that one. Then, of course, going through the highlights of Q2, first half -- Q2 and first half 2026. And then Jukka is going to do a deep-dive for the finance part. And then of course, we have a guidance at the very end.

Before jumping to the integration and synergies, so like Jukka said, so it's nice to join in for the company because we are having a quite historic moment now ongoing. So I would compare this one to the CenterVue acquisition at the time, in terms of the significance. Of course, now the size is bigger, but of course, the old Revenio, if I may use the word, so that's, of course, considerably sizable compared to the 2019.

So this is the first quarter when we now have 1 month numbers in from the ex-Visionix side. And based on the now kind of last or first 100 days, if I may use the 100-day word here, so everything is actually progressing well and according to the plan. So the strategic logic, why we closed the transaction, it is still as strong as it was at the time of the signing and closing, which I found extremely encouraging and good.

So from the integration perspective, integration is progressing really well. So we have a couple of scenarios here. So I would summarize that we are now leaning to watch the best -- kind of a best scenario in terms of the speed of getting the synergies in and the speed of integrating the actual organization. So if we look at the couple of key areas here, so first, from the overall integration perspective. So we have now nailed down, even end of May, the leadership team organization, of course, the Board structure, overall governance. And then during the summertime, we have been then moving further down to the organization in order to clarify the organization and operative model. So that's going really well.

In terms of the culture, so we run an extensive culture audit also during the summer. And cultures are actually matching together extremely well. And this is the -- at least for me, this is a more positive thing that I was expecting.

Then we have been putting a lot of effort to the commercial activation and to securing the business continuity. So the U.S. sales team, so we have actually combined already the U.S. organization, including the sales. And the new team has been running operationally from the beginning of August. And what we have done in the U.S.A., so we have also finalized all product training related to the different products to the team. And then also now bit by bit moving to cross-sales targets, et cetera, and really moving to the execution in the past 4 to 5 weeks.

On the international sales side, which Umberto is running, so that John is running the U.S. sales organization. So from the international side, so we have a clear plans now how to start moving forward with the different countries, whether they are direct or through the distribution. So that has moved to the execution in the last 2 weeks' time. And I would say that the overall things have been progressing really well.

Then on the -- coming back to the EUR 20 million EBITDA uplift. So we have already secured a bit ahead of time, the EUR 5 million run rate savings regarding to the EUR 20 million EBITDA uplift. So there we are on track. And then we also have plans regarding the next steps, regarding the operating model and then also things related to the procurement, et cetera, in order to be able to get the remaining part of EUR 15 million EBITDA uplift in the coming quarters. So if summarizing the integration status in one sentence, so it's going well and according to the plan.

Then to the numbers. So of course, top line up EUR 39.3 million, roughly 50% up. What we saw on the profitability side is, of course, we have been coming down due to the couple of things on the profitability. So the first one is the acquisition-related one-off costs, which during Q2 were roughly EUR 3.4 million. So Jukka is going to cover that one in a bit more detail. Then I think that we should pay also attention to the gross margin, which was exceptionally high in a previous year Q2 of 72.6% roughly.

And if we go back to the Q2 last year, so we actually didn't have a tariff impact almost at all at the time. So we were stacking a lot of products into the warehouse, so we didn't pay any tariffs on the imaging products, we didn't pay any tariffs regarding to the tonometers. We started to pay a bit tariffs towards the end of Q2 last year regarding to the probes. And if you look then from the gross margin perspective -- Q3, Q4, and Q1 this year, so I think we have -- we are able to say that we had the gross margin beyond the 70%. So that's partly explaining why gross margin is down. And of course, we have the Visionix dilution. But Jukka is going to cover this one in more detailed.

Then regarding the whole first half. So net sales, EUR 66.6 million, up from EUR 52.6 million. Operating profit, EUR 4.8 million. And then we had in addition to the EUR 3.4 million, so we had roughly same amount of acquisition-related one-off costs during the Q1 as well. So the whole acquisition-related expenses were a ballpark of EUR 6.9 million.

Then regarding to cash flow, Jukka is going to cover this one, but the cash flow was negative, and let's also come back on Jukka's presentation. So we had a really strong cash flow, exceptionally strong Q4 last year, roughly EUR 15 million. So part of the costs were actually occurring during the Q1.

Then after the Q2, so a couple of highlights from the other parts of the business. So we have been now receiving and working, of course, together with the iHealthScreen regarding to the DRSplus and the FDA clearance. So we managed now to get the first FDA cleared AI solution for the U.S.A. So that's an extremely good news. Now working closely with iHealthScreen in order to approach the customers and start pitching the product, and we look this one, of course, to boost the DRSplus sales in the coming quarters and years in the U.S.A.

Then another thing where we have been active and working for the long time in the U.S.A. and, of course, in the other parts of the world, and this is really linking to the macro trends what we are seeing, i.e., the amount of the patients is increasing, the resources on the iHealth professional side is limited, and we are not able to treat and diagnose all the patients. And in the constant communications, we have been emphasizing the easiness of the use and then automation what comes to the devices. And here we go. So this is a prime example of that one.

So we closed a strategic partnership in the U.S.A. with a company called EyeCheq, which is providing the kiosk, where we have been integrating the DRSplus for autonomous use and for the screening purposes. And then this kiosk is connected to the back-end platform. And then the patient is able to come to the kiosk and then do the holistic screening of the eyes. So extremely good thing for us in terms of the long run and just shows clearly where the market is going in the future.

But with these words, let's move to more detailed finances. So Jukka, over to you, please.

Thank you, Jouni. And let's start from the key figures for the quarter and maybe starting first from the Visionix. It's good to remember that Visionix has been now consolidated to the group numbers starting from the beginning of June. So 1 month Visionix, in our quarter 2 numbers.

And looking at the top line development, net sales increased 48.1%; currency-adjusted growth, 50.7%. And when looking as underlying business, our organic growth, that was more or less flat for the quarter.

Gross margin went down to 65% when rounding it up, comparing high, comparables of 73% for the quarter 2 last year. I'm going to go a little bit more in details in the following slides. And then when looking the adjusted EBIT for the quarter, it was EUR 5.8 million, so 14.6% from the net sales. And that included EUR 3.4 million acquisition-related nonrecurring expenses. So overall, this is quite a good start for the new combined company, and it's good to build the future based on this one.

Then let's look net sales development a little bit more in details. And the step-up in revenue, as you see in quarter 2, was coming from the Visionix impact, like I commented in the previous slide. So organic growth was more or less flat. And when looking the net sales development in different geographies, it was negatively affected by the market environments when looking at the regions, Middle East and Asia. And then at the same time, we see some positive development in our Europe region overall.

Then when moving to the profitability, like I commented, adjusted operating profit EUR 5.8 million during the quarter, 14.6% of the net sales. And then gross margin declined to 64.7% comparing 72.6% during the quarter 2 2025. And it's good to remember that it was really high comparable in gross margin, like Jouni commented, when looking whole last year gross margin, it was 71%. So quarter 2 2025 was really, really high comparable. But then at the same time, when Visionix was consolidated to the group numbers, that had actually 2 percentage points dilutive impact due to lower margin profile in Visionix business.

And then when looking the old Revenio underlying business over there, the gross margin in that business went down by 5 percentage points. And that was driven by, for example, the tariffs, which we didn't have in last year quarter 2 numbers. And then there was some increase in the unit cost, for example, in the electronic components side. And then also, overall, there was some increases in our fixed costs during the quarter 2 2026.

Then moving on the cash flow. Cash flow from operations was negative by EUR 2.4 million during the quarter. And it's good to remember that, that included around EUR 3 million of payments regarding the acquisition and the related project we are running. And then at the same time, our net working capital increased at the end of the quarter, especially relating to accounts receivables.

And this is not kind of a normalized run rate, of course, it's more like temporary situation regarding the acquisition. And then when looking both companies' cash flow generation, like you know, Revenio has been always really strong cash flow-wise, H2, especially quarter 4, and there is similar kind of cash flow profile also in the Visionix business. So a major part of the cash flow is generated in H2 comparing to H1 for the calendar year.

Then moving on the balance sheet and balance sheet metrics, of course, quite a lot reflected by acquisition financing and net debt now EUR 238 million, so temporarily up, including the EUR 130 million term loan from the -- what we closed in quarter 2, also bridge to equity financing EUR 80 million and the EUR 17 million vendor loan also relating on the acquisition. And then on top of that, we have a revolving credit facilities in use, around EUR 20 million at the moment. And when looking these metrics, our balance sheet metrics, equity ratio at the moment 31.2%, and net debt adjusted EBITDA is temporarily up in 5.3.

And then it's good to remember what we have communicated also earlier. So we are planning this post-completion rights issue worth EUR 80 million that will happen in the -- during the H2 2026. And the purpose in that right issue is to pay out this bridge to equity facility and through that, of course, strengthen our balance sheet and improve our leverage metrics overall.

Then briefly our shareholder space. So latest cap table. And as you know, Revenio is quite global when looking from the shareholders' point of view, more than 50% of the ownership is outside Finland. And of course, recent changes you see in this cap table in top 10, we have 2 new major owners, # 2, Caravelle Capital and then #10, Marc Abitbol. And these, of course, are the big changes and relating on this acquisition, Visionix acquisition we completed during quarter 2 2026.

Then as the next, let's cover the financial guidance for 2026. And in top line, we guide currency rate adjusted net sales to be between EUR 190 million up to EUR 205 million. And EBITDA, excluding nonrecurring items, we estimate to remain at satisfactory level. And the assumptions behind the guidance in the lower end, we continue -- we expect a little bit softer market environment and slower customer activity. And in upper end, we expect improvement in the market condition and then, of course, successful sales execution as well.

And Jukka, if I may jump in.

Yes. Sure. Let me go back.

I think that we have had the questions now regarding to the guidance, what the satisfactory means. And we have been a long time in a good level. So would you open that one a bit?

Yes, sure. It's an excellent comment. When looking, for example, our last year operative adjusted EBIT for the year. So we were in 24% and now when we look quarter 2 2026 the adjusted EBITDA, we were at 17%. And now we guide that we expect that to stay on satisfactory level when we communicated last year to profitability to stay on a good level. So that's the way to give you conclusions on our profitability guidance levels.

Then next one, a little bit also a reminder, 1 week from here, we are organizing Capital Market Day, so 15th of September, where we, of course, will present our new strategy. We will present our combined company go-to-market plan, combined company product portfolio, our synergies and then, of course, on top of that, the numbers, our new financial targets. So welcome, everyone, who is able to join to that event.

Then at the end, also, like I already mentioned, we are planning this cost (sic) [ post ] completion rights issue. That's a worth of EUR 80 million altogether. Nordea is our global coordinator and actually underwriter for the rights issue as well. We target to arrange that during the mid- to late H2 2026.

And our main owners, William Demant and also the sellers of the acquisition, owning altogether close to 31% of the shares have irrevocably committed to subscribe the shares pro rata based on that right issue. And like I already commented, target is to use the funds to repay our EUR 80 million bridge to equity facility and reduce our leverage ratio and strengthen our balance sheet altogether. Thank you.

Thank you. And I think it's time to move for the questions, please.

[Operator Instructions] The next question comes from Nikko Ruokangas from SEB.

This is Nikko Roukangas from SEB. I have 3 questions, and I'd like to go one by one and start with old Revenio or organic sales development, which was flat year-on-year. So to open that a bit more, given that it seems clearly lower than the original guidance you had entering this year in the winter. So has something changed in the market or your own performance? Or can you elaborate a bit more?

I could perhaps pick that one up. So if you look at Q2 old Revenio perspective, so -- and this one we have had also the earlier, so it might be that in the certain quarters, so the demand might be different or then we have 1 or 2 a bit more slower months. So if we look now and we go a bit and we break down the performance. So like Jukka said, so APAC was lagging behind on the growth like it was Q3 last year, Q4 last year, Q1 this year compared to the previous comparable quarters. But the positive side is that the situation is basically improving quarter-by-quarter. So part of the growth we were missing from the APAC.

Then everyone knows the Middle East status. So Middle East side of the business was extremely slow regarding to the Iran conflict. Then if we go for Europe, so Europe in reasonably good shape, I would say. So customer activity good and pipeline looks good. And the U.S.A., we saw a slight growth in the U.S.A. and tonometers were performing well, imaging slightly shy.

So I wouldn't draw too critical conclusions based on 1 or 2 months inside the one quarter yet. So -- but this is now the case. So Q1, at old Revenio, we had a growth and then it was reasonably stable and flat during the Q2. But now if we look how the Q3 has started, so I mean old Revenio back on the growth track. Hopefully, that answered to your question.

Yes, yes. And just a follow-up, how much on rough terms was the impact from Middle East?

We don't give the country-specific numbers. And also Visionix is having a Middle East business. So that's kind of visible on -- then on Visionix 1-month numbers regarding to the June.

Yes. I understand. Then I'd like to go a bit deeper still on gross margin, which was down year-on-year in old Revenio, you explained a bit more already. But I was wondering whether you can go a bit deeper into the topic, given that, I guess that the gross margin was weaker than in Q4 and Q1 when price increases in the U.S. had not been implemented well, so -- completely. So have you now been able to do all the price increases related tariffs? And then can you a bit more open the component inflation situation and what will you do about it?

Maybe I comment the price increases. So the price increases are in. Do you Jukka want to comment? I shortly commented on tariffs, but do you want to comment on component side?

Yes, I can -- yes, of course, I can do that. Of course, the tariff impact when looking year-on-year was quite significant. So we are not talking only hundreds of thousands, but it was more significant impact. And then the unit cost impact on top of that contributed basically the rest and like we commented the electronic component cost. And this is, of course, going further that, of course, we will review what kind of actions we do, either reducing the unit cost or from the pricing side. So those are the tools, of course, how we manage the situation going forward.

Okay. Then one last from me. You were reporting, I guess, EUR 13 million of adjusted EBITA consolidated, but not pro forma in H1. And then the pro forma was EUR 14.6 million. So is it so that the Visionix generated only EUR 1.6 million of EBITA from January till end of May. Has it declined in H1 year-on-year? Or is the profitability in Visionix extremely H2 weighted? Can you open that?

Yes. Nikko I can comment. This is a great question. And this is, of course, I know challenging for the investors when January and May are not in the numbers. But actually, in Visionix, of course, we know the H1 numbers. So there was quite a high weight in the profitability until the end of the H1. So that's the thing. And that's usually there's some seasonality in that sense in the Visionix business.

More, of course, I don't comment about the January-May Visionix numbers. And then when looking the pro forma, it's good to, of course, remember how pro forma is completed. It's based on the assumption that the deal is executed already 1st of January 2025. So it's some kind of the theoretical way also to build it up. So that gives some slightly differences when looking pro forma and where we are at the moment. But of course, it gives a good enough picture. But those I would highlight based on your question.

Okay. But if we look at kind of a year-on-year basis purely...

No. Yes. Overall -- that I can comment. Sorry, Nikko, I forgot to answer. So when looking H1 Visionix comparing last year H1, even though we have only 1 month in, so no significant change in the profitability profile year-on-year.

The next question comes from Pia Rosqvist-Heinsalmi from DNB Carnegie.

It's Pia Rosqvist from DNB Carnegie. I've got a few questions, so I'll try to limit myself. If I start with the sales development now in the second quarter. And I know, Jukka, you said, you don't comment on Visionix in particular for the first half. But is there any light you can share on how Visionix fared now in the first half of this year compared to the last year's first half? Did sales for Visionix decline in the first half of this year?

No. No. So on the top line perspective, flat. And so if we now look the competition and we compare the performance, so even though that iCare ex-Visionix or old Revenio grew during the Q1, and now if we look kind of a flattish Q2, and then the Q3 now looking good and then Visionix staying on the flat in the market where we operate. So I would consider, of course, not the stellar performance, but it's a quite robust performance compared to the competition. But Jukka, anything you would like to add on this?

No, I fully agree. Nothing to add on that.

And still going back to your first quarter report, where you told that the price increases had been applied, and I think starting to impact from February onwards. And now you said you reported flattish sales for the old Revenio. So is it actually so that the volumes declined in the first half and were compensated by the announced price increases?

I wouldn't say so. But we have also seen the Q2, like Jukka mentioned, so we have been also seeing the increases on the component prices. So whether is it the memory, whether it's the CPU, whether is it the increased price on the gold, which is then used in the probes. So I wouldn't draw that conclusion.

And what now comes when going forward, so we now start to go through the detailed bill of materials now during the second half and then doing decisions in the remaining part of the year that should we adjust the prices if the memory and CPU and raw material prices are going to remain the high. So that's a standard procedure what we do.

Okay. And then in general, looking at the market sentiment and demand and now given your broader footprint in the market, what do you see with regards to the market demand and your sales pipeline? I know you have always underlined that the Revenio sales pipeline is short, but in Visionix, you have slightly more visibility. So what is the current market demand?

So maybe I pick that one, and Jukka, please help me. So U.S.A. like we discussed in the earlier quarters. So that has been surprisingly robust. And now we have a new sales team in place. So the new combined sales team, we have split all the geographies, et cetera. Of course, there's a certain ramp-up time. But actually, if we look at the start for the Q3, so it looks good.

Then we have a lot of cases in a pipeline type of cases where we haven't been before because we have a combined portfolio. Of course, the key is to turn them to wins. So that's a crucial thing.

Then if we go for Europe, so Europe has been steady. And then I hope that the APAC turns in a bit more better shape. So we have had a positive trend now quarter-by-quarter. So we have seen the bit more better activity, as an example, in South Korea, et cetera, we did the distributor change in Australia. So that's the reason why that part has been a bit sluggish, if I may use the word earlier this year. So hopefully, that's going to help up the situation in APAC because that's one of the biggest countries for us in APAC.

Of course, now we have to remember when we report now the Q3. So then it's going to be first month where we also have a Visionix numbers fully in a quarter. So that's going to be interesting to see.

Anything, Jukka, would like to...

No. And it was, of course, positive highlight when looking at the underlying businesses that Europe region developed quite positively when looking at the quarter 2 overall.

Right. And still -- sorry, coming back to the gross margin and the discussion about the factors burdening that. Can you -- do you have some kind of guidance for your gross margin for the remainder of 2026?

Yes. No. Like you saw, we were guiding the EBITDA and then, of course, the top line. But it's good to remember now when we consolidated Visionix only 1 month. And then, of course, with the lower margin profile in the Visionix. Of course, we will now when we consolidate the whole company, that generating absolute terms, a lot of more gross margin, but then this dilution impact will be whole quarter starting from quarter 3. So that's a good remember when looking the percentages.

And I don't know, Pia, is it helping on -- sorry to jump in, sorry to interrupt. If you think that we look the quarter 3, quarter 4, so I think the old Revenio side, we have been roughly 68%, 69% depending on the quarter. And then we have a Visionix dilution part of the package, so further diluting. So I think that's all part, right, Jukka?

Yes.

Maybe it helps.

The next question comes from Daniel Lepisto from Danske Bank.

It's Daniel Lepisto from Danske Bank. I have a couple. Maybe starting still with or continuing on the organic growth of [indiscernible] Revenio. I mean, if you didn't execute this Visionix transaction, would this previous guidance of 8% to 15% growth this year, would it still be in place after the Q2? That's the first question.

I think that not too sure is it a relevant question at this new state, but I wouldn't see. So we have also the big deals in a pipeline for the remaining part of the year and Q3 or Q4 is basically strong. So I mean forecast looks good.

Okay. Just a follow-up would have been on those larger deals that you discussed. So they are still on the table. And I guess there would be a better second half to look for?

Yes. So for certain cases, we have been receiving kind of a single product POs. So still live and kicking. Of course, the timing and rollout, always a question mark.

Okay. That's clear. Then on this margin guidance, satisfactory margin. I mean how wide should we think the range is here, since, I guess, historically with the EBIT margin, I guess it used to be even 10 percentage points, at least it felt like it. But basically, how wide can this range be actually? Can you go single-digit on the EBITDA and it will be still satisfactory?

You were not far off what you commented in the beginning, but maybe I kind of repeat myself. So last year, adjusted EBIT was 24%. And now when you look at the adjusted EBITDA in the quarter 2, we were in 17%. So I apologize that I cannot comment that more because that's what we have disclosed. But I hope that a little bit helps you to understand what kind of range we have in place for that wording.

Okay. Then maybe on the stand-alone revenue gross margin, there was comment was 5 percentage points down year-on-year, so clearly below 70%. The comparison was, of course, difficult, but I guess in the midterm, I guess, 70% is the target that you are looking for revenue? Or has this changed? I think it changed over the company shortage and whatnot.

Maybe I pick that one, Daniel. So I think it's realistic to think that yes, we have had the target before the tariffs hit to the place to keep it above the 70%, which we have been able to do. And now when the tariffs are full in, we have been ballpark of bit depending on the quarter 68%, 69% and so forth. So I think that it would be reasonable to expect. And of course, we don't anymore in Q3 like in Q1 report the old Revenio if we use that term. So -- but if we go for old Revenio, I think it's fair to assume that being constantly over 70%. So that's undoable with the tariffs.

Okay. That's clear. Then maybe the final question on this ILLUME AI solution clinical trials. I mean, obviously, we saw that now the third-party solution was approved. Can you update us on the time line with your own solution? What's the status of the clinical trials and what's the approval time line that you see?

So we have now concluded the pre-study. So that went well. Results are okay. Now we are doing a new pre-submission just to be sure. And of course, now the iHealthScreen a bit reduced the pressure to push aggressively forward, rather now in a mode that we guarantee that we get the clearance when we do it. So the status is that the pre-study done. Now we drew the pre-sub -- another pre-sub for FDA to be sure that the house is in order.

Then we have start another study then towards the end of the year or early next year. And we communicated earlier that we are going to be ready by clearance by the end of the first half '27. I would be now more leaning towards the second half, hopefully Q3 '27. And the reason is that now we have the iHealthScreen clearance, so we just want to be sure that we are able to get the clearance. So we do the pre-sub now into the FDA again.

The next question comes from Erik Karlsson from Erik Karlsson (sic) [ CapeView Capital ].

It's Erik Karlsson from CapeView Capital. Just on Visionix, if we look at the first half performance, you said basically flat sales and kind of flat margins. How much worse is that compared to your business case you bought it? I guess at the time you thought they would grow and have increasing margins even before synergies. Just trying to understand how far below they are tracking currently?

That's according to the expectations, what we baked -- what was seen in the model. Because we had the closing then...

You didn't think it would grow and you didn't think they would increase margins without...

No, I mean, we -- so if we look the timing and the process, so of course, we had to forecast for the first half and for the second half. And then we started to bake in the numbers by the closing so that we get -- we are able to start getting the synergies, in terms of the OpEx savings and in terms of then the commercial synergies. So basically, Visionix in one sentence, Visionix has been performing during the first half, what was our expectation at the timing of the signing and closing the deal.

Okay. It sounded like when you did the acquisition that they had an internal plan to improve gross margins and margins because I think it was quite shocked by the low profitability they had at the time.

I think if you compare the profitability of ex-Revenio and the Visionix and the industry in general, so the Visionix had the numbers on black, almost everyone else on red. So that was basically known. And then we have -- if you think the Visionix, so we have had this internal efficiency plan, which they put in place at the time of the negotiations and a bit before that one. So that's progressing.

And then as I said earlier, so we have been able to now secure out from EUR 20 million EBITDA uplift to EUR 5 million already in. So that work is constantly moving forward. And the plan is to get the EBITDA level and improve the margins then up to 25% by the end of 2029. So the plan is there, and it's progressing according to the plan.

Okay. Got it. And then on the profit guidance, and I don't know who advised you on this, but I think there's 2 ways to go. One is that you don't want to tell the market and then don't guide or you want to help the market and you do guide and what the market wants is numbers. They don't want to work very hard. It just becomes like a game to translate that into numbers. I think either way is fine to go, but to start coming and saying, well, such structure for you might not be it for me. So we just get into this ridiculous game. So I think if I were you, I would either not guide on it or I would just put a number out there or arrange them. Does that make sense to you?

Great feedback. Thanks a lot. We appreciate that a lot. So yes, we will, of course.

Yes. I agree that one. And that has been the history that like Jukka said, that we have objective to describe the growth and describe the profitability. Now what we have been now trying to improve is now that we gave a bracket for the top line and still did the decision that we used the objective on the bottom line part. So that's going to remain for sure for the remaining part of the level -- for the year.

But I think this is constantly asked from us that should we actually give a euro amount or should we give a percentage amount. So we take that input in and see then on February, how do we go forward. But thank you, Erik, for very good feedback. And we have heard that one earlier that it's not fully clear.

The next question comes from Pia Rosqvist-Heinsalmi from DNB Carnegie.

Yes. Gentlemen, still a few questions, if I may. And now I'm going back to the synergy potential you have presented. So you target an adjusted EBITDA uplift of EUR 20 million by the end of '29. And I'm just trying to guess here, so this uplift of EUR 20 million, how is operational leverage included? Or is it not included in this uplift?

So are you able to open a bit the question what do you mean with the operational uplift?

Yes, the operational leverage, I mean from -- assuming your sales will grow there if operational leverage in your system. So I'm just -- if I understood your ambition to raise the adjusted EBITDA level by EUR 20 million. So in this discussion, how about growth and the implications from that?

Okay. Thank you, and Jukka, now correct me if I'm wrong. But we at the time of -- when we announced the transaction and at the time of the closing, we reiterated the EUR 20 million EBITDA uplift. And the big part of that one comes from the OpEx-related synergies, right, Jukka? And now if we think now the first EUR 5 million, so what we now have been able to achieve. So that's coming from the operational side in order to combine the Visionix U.S. team and then ex-Revenio U.S. team, and that's coming from the OpEx side. Then we also have a commercial cross-sell, upsell part, which is then the part of the EUR 20 million EBITDA uplift, which then comes more from the operational side.

And we haven't split the ratio. But if you would look the picture what we use the waterfall there's first commercial part and then there's an OpEx part. So you kind of get the sense and the feeling how it's divided. And then the scaling in a way, the OpEx and that part. So I mean, if we just grow, so -- okay, so you kind of get the scale from the growing, but there's only this cross-sell, upsell part that we count as a synergy, so not in a way the normal organic side. But Jukka, do you have anything to add on this one?

Of course, it's -- when you grow, of course, you always lead the business in a way that top line grows quicker than the fixed. If you refer to that. So that's a separate topic, of course.

Yes, exactly. That was my point. So yes, so EUR 20 million is kind of -- that's from the synergy and then anything you might grow up in addition to that, that brings more leverage to the equation.

Yes, fully agree.

Yes. All right. Then just shortly, when I skimmed through the report, did you directly comment on kind of sales impacts from maybe Visionix selling your products, so kind of internal sales that will be eliminated or even broadening the question to potential overlapping products. Have you taken this into account in the pro forma numbers?

Yes, it has been taken into account. I think it was something of EUR 300,000 when looking at 2025 numbers. So that has been taken into account.

All right. Okay. And then finally, if I still can get a clarification on net working capital to sales profile for the combined company. In what ballpark do you see the combination, say, next year on again?

Yes. Overall, roughly numbers when looking at net working capital for combined company end of quarter 2, it was around EUR 60 million level. And of course, we, of course, constantly will continue optimizing that going further.

The next question comes from Nikko Ruokangas from SEB.

This is Nikko Ruokangas again. I have a couple of clarifying questions still. And maybe now on EBITDA as you are now starting to report that as headline KPI. So out of the amortizations you are expecting to report in H2 or kind of on a run rate basis going forward. So how is that divided between kind of the amortization revenue, old Revenio had the stand-alone Visionix amortizations and then PPA from this transaction?

Yes. So this amortization increase, of course, all of those. And when you look a little bit the details, the Visionix acquisition brings around EUR 6 million, new PPA depreciation. And then on top of that, other amortizations, we have around EUR 2 million, a little bit more than EUR 2 million. So we are in around EUR 8 million level, a little bit higher than EUR 8 million annualized number going further.

Right. Then you were discussing about the leverage post rights issue of roughly 2.5% in time of the announcement of the acquisition. Is this still a relevant target, around 3%?

Of course, in some point, yes, I think when looking at the current -- I think you're talking about net debt to EBITDA, which was 5.3% in quarter 2. And after share issue, it goes closer to 3% when looking at the current estimates. But of course, we continue generating cash and profit going further. So that will always quarter-over-quarter improve that leverage ratio. But that's the short-term view.

Yes. Then still on tariffs, which we have been already discussing about, but then I guess that the basis for the tariff has a bit changed now over this 1-year period. So do you think that you could receive tariff refunds for the tariffs you have paid under the kind of old basis of tariffs?

Yes. This is something we are looking after the refunds from the tariffs. So it's -- this is what we are working at the moment actually.

There are no more questions at this time. So I hand the conference back to the speakers.

Thank you all. Extremely active call. And if I may summarize at the end. So integration moving extremely well forward. So I wouldn't be too concerned on that one. We have managed to get EUR 5 million out from EUR 20 million discussed EBITDA uplift already in sales teams integrated in the U.S.A. operative model moving swiftly forward. Then also, we are on the channel side in the rest of the world, we have moved to the execution. Then we are going to have exciting news coming on ESCRS. So we continue working extremely hard here in order to grow the top line, finalize the integration and get the margins up. Thank you for the participation and really looking forward to catch up then during the Q3 earnings call. Thank you for your time and interest.

Thank you.

Good afternoon, and welcome to Revenio Group Q1 Earnings Call. My name is Jouni Toijala, and I'm the Group CFO for Revenio. And today, we have a bit more bigger set of team members here. So in addition to the normal Robin Pulkkinen, our CFO, we also have Erkki Tala, Vice President, Products in a call as well. And the reason for that one is that we are going to run today a bit more longer earnings call. So of course, we are going to start with the Q1 financials and the business highlights.

Then we go through the guidance part, which we actually don't have. But then we have a pretty extensive part run by Erkki regarding to the Visionix transaction, especially related to the products and the product portfolio. But let's jump to the Q1. So reported net sales, EUR 27.3 million increase on the reported side is 4.8%. Currency adjusted net sales growth, 8.4%. So I think it's a good number, especially if taking into account the extremely strong start in the U.S.A.

So in terms of the euros, of course, but especially in terms of the U.S. dollar, the organic growth in the U.S.A was very, very strong. Then if you look at the other countries, so Europe was growing really strong as well. So especially France, U.K. and Germany. So in terms of the sales, good performance in the U.S.A. and in European countries. And then we still had a pretty tough comparables in the APAC side. So the APAC was slightly down.

And if we look now at the start for the Q2 in APAC, so we start to be extremely well on track also on APAC side what comes to the sales. Then operating profit reported EUR 2.4 million, so significantly, of course, down. And of course, the main bucket there is roughly EUR 3.1 million one-off costs related to the Visionix transactions. But Robin is going to cover these ones in more detail. So in adjusted operating profit perspective, good numbers of 21.3% from the sales, of course, slightly down from the last year.

But let's move to the financial part. So Robin, over to you.

Thank you. So the typical graph I think people are used to seeing. Jouni covered the top line part. Maybe also highlighting there that the comparable Q1 '25. FX-adjusted growth there was already close to 15%. So we had a really tough comparison period ahead of us in Q1. So considering 8.4% FX-adjusted growth, we feel it was a pretty good start and in line with our plans for the year.

The profitability did come down on the reported level, but there were EUR 3.4 million. So the EUR 3.1 million of the transaction-related costs and then also some additional costs related to certain organizational changes we did still in the first quarter. Overall, the profitability drop is largely driven also by the margin, which is a lot lower now compared to last year. We know that the tariffs are impacting that, but also the product mix. But we did now improve the gross margin from the last quarter of last year.

So we -- like we discussed, the price increases didn't go in at the end of the year. We have been now implementing those at the beginning of the year. So not fully effective for the whole quarter, but starting February, basically, the price increases have been in the U.S. Adjusted operating profit, so that's probably the better line to look at the profitability. So 21.3% and EUR 5.8 million of revenue.

I'll come to the others in the coming slides. Basically, looking at the quarterly trend line a bit on the sales. So Jouni covered, we did really well in the U.S. and Europe. Basically, the FX was really giving a lot of headwind on the dollar versus the euro. So basically, the change comparing to the comparable period, the euro is 11% stronger. So basically, that is pretty much the impact that we have on the consolidated level then when converting them to the euro.

So the U.S. growth alone was actually very strong as well as Europe. APAC, like Jouni said, we still continue to have some headwinds, but there were also some larger transactions in the comparable period, which are kind of impacting the growth, but we were able to achieve there. So here, the profitability trend lines. So here also reflecting the one-off costs and then the organizational impacts that we had.

On the cost side, there also was actually probably a bit less than we expected on the FDA costs related to the DRSplus and ILLUME regulatory approvals in the U.S. So those costs didn't really incur yet in the first quarter, but we are now expecting them to start accumulating more in the second quarter, and we see that patients are now starting to come into the clinics where we are doing the studies. Balance sheet remains unlevered for now.

Everybody knows and has heard about the Visionix transaction. So the equity ratio was still strong at the end of the first quarter. This is, of course, going to change as the transaction closes. So like we've discussed earlier, the net-debt-to-adjusted EBITDA is expected to decrease below 2.5 after the equity raise that we are planning to do in the fall. So basically, the leverage rates are going to be a lot higher at the closing, starting from the closing and then getting more to normalized levels once we do the rights issue in the fall.

So basically, equity ratio probably is going to be around 50% or slightly below 50% by the end of the year. But now at the end of Q2, when we come out with our Q2 numbers, the balance sheet is going to be quite levered. Cash flow was not very strong in the first quarter. There are basically a couple of drivers. At the end of the year, you can see our Q4 was really strong. We did that quite -- we have like in Italy for our subcontracting or manufacturing, we have 90 days payment terms.

We had quite big open invoices in accounts payable at the end of the year. Those have been actually not paid in the first quarter and also the revenue for the first quarter was very much March weighted. So well over 40% of the whole quarter sales was actually taking place in March, which kind of resulted in the AR to be quite abnormally high for this time of the year. Also, some tax payments were slightly higher than the previous year. And then the main shareholders, not many changes here.

The one that you can see is actually Danske, the # 5, Danske Invest. They have appeared on the list now. As a Finnish fund, I assume the result is that the Finnish ownership actually also increased by roughly 1.5% during the quarter. For the guidance, we have now withdrawn the prior guidance. We are kind of looking to come out after the transaction closes with an adjusted outlook for the year.

But for now, for the coming weeks, at least, we don't have any official guidance for the investors. And then we have the AGM coming up. So if you remember, we canceled the original AGM, which was planned to be held around mid-April. Now the new date is May 12. There's a couple of changes to the original invitation that we sent out.

So basically, in order to complete the transaction, we are asking the AGM to authorize the Board of Revenue to decide on a directed share issue for the sellers, which is part of the transaction payment and also asking for an authorization for the Board to decide on an issuance of shares in a planned EUR 80 million post-completion underwritten rights issue. Also, they are different from the original invitation.

We have new -- 3 new Board members that are being proposed. So the Board is proposing for the election of Charles Vilgrain, Marc Abitbol and Nicklas Hansen to the Board of Directors of Revenue at the AGM on May 12. And then also just to note here that we have transaction support from the largest shareholder, William Demant. So they have irrevocably undertaken to kind of subscribe -- or sorry, vote in favor of the proposals to the AGM by the Board or yes, by the Board.

Good. Excellent. So before the Q&A, so let's switch the gears to the transaction, which was signed April 13. So a couple of recap slides from me, and then we actually go -- Erkki is going to go through in more detail the product portfolio and the overall logic why this deal so very much is making a sense for revenue. But if we start from here, so as I said, so the April 13, we joined the forces with Visionix and why this is remarkable?

So we have been working in an addressable market, which represents roughly a $1 billion in terms of the U.S. dollar. So we have been working on Fundus Imaging Perimetry, Microperimetry and Tonometry. And by joining the forces with Visionix, we are going to get an extremely comprehensive product portfolio, and we are able to increase the addressable market now from USD 1 billion to USD 2.5 billion.

And why this is crucial for us also in the long-term is that now we have a full suite of products for optometry, optical retail and then, of course, enhanced coverage on ophthalmology side as well. But Erkki is going to come back to this one. And as a recap, so EV EUR 290 million plan was really to finance the deal with the cash reserves when issuing the revenue shares to current main shareholders of Visionix with the price EUR 22.40, so significantly higher amount, which we are currently trading.

And then we have a debt financing plus the vendor loan. And then, of course, the [ rights to ] Robin is going to come back to this one. And in addition to this one, of course, we are expecting to have significant synergies coming from the sales side and also from the cost side in the coming years. And a couple of words regarding to the Visionix. So roughly [ EUR 150 million ] of the sales team is a global team. So even if it's here said that it's a French company.

So less than 200 people in France. And then if people are wondering that at Revenio, there's 250 people at Visionix there's a bit less than 600. So I think here, we have to remember that Visionix operates directly, so sales directly in many countries. So it means more sales force than us. It means more customer service installations, et cetera. And of course, also the assembly part of the business, which Visionix is partly having in-house. This is also a really, really good deal in terms of the sales coverage.

So as everybody remembers, so we have roughly 50% sales coming from the U.S.A., then a bit more than 30% from the Europe, Middle-East, Africa, LatAm, Canada and then the remaining part from APAC. So this deal is nicely going to balance now the regions. So the U.S. sales comes proportionally down then the EMEA increases and then we are getting more muscle also to APAC. But maybe we move to actual products now and the logic why this makes very much sense.

Thank you, Jouni. Next, I will open the strategic rationale of the Visionix transaction from product and customer point of views. Combined with opportunities, this new combined portfolio opens for us in varying and actively evolving markets where really one size doesn't fit for all. I'll deepen the view of the impact of total addressable market and customer segments and how expansion of them will open new avenues for our future growth.

And all this will be combined with the evolutionary state of each market in terms of professional allocation of diagnostic tasks between optical retail, optometry and ophthalmology. And this is really at the heart of the acquisition rationale as it explains really the full market potential.

So it's not only about having more products in more segments, but really having a coherent portfolio of products as a turnkey solution for different customer needs in different markets. And really market conditions vary a lot based on regulatory or legal environment, professional education and role of different professional groups. At the same time, and I will go back -- get back to that in a short while, many markets are going through a significant evolution, especially in optical retail and clinical optometry, which means that as a result, many companies are increasingly adopting fundus imaging in optical retail.

And now OCT technology is adopted very fast in optometry practices. And indeed, really the value of getting OCT imaging into the portfolio will also be further open in this presentation. part. So let's start from this total addressable market expansion. As Jouni mentioned, our overall total addressable market expands from USD 1 billion to USD 2.5 billion a year.

But from a product portfolio point of view, this means that we will cover the entire diagnostic path from pretest to refraction, ophthalmic diagnostics and disease monitoring. And while this is already a good news, it's also crucial to understand what are those product categories we will not play in even with a combined portfolio and why? So are we missing still out something critical?

Actually, in fact, the remaining market is largely related to surgical cataract care pathways where the largest product segments are operating room microscopes and optical biometers. And these are very much used in surgical cataract ecosystems, which are typically relatively closed and would ideally require also proven intraocular lens portfolio. And this market has really relatively high entry barriers.

So we have made a clear strategic choice not to enter into the surgical settings, but stay in diagnostics. And this is a natural continuation for the strategic decision made already back in 2021 to focus fully on eye care and fully on ophthalmic diagnostics. That said, it's good to also have in mind that many general diagnostic modalities from refraction to OCT are also used with cataract patients, too.

So this means that we will cover almost all the product segments in this target market, excluding surgical cataract theater. If we then look at the customer segment expansion, that gives another important angle of view. Traditional customer segments for ophthalmic diagnostics companies are optical retail, optometry and ophthalmology.

And I have to say that most companies typically just cover some of them, but we will, going forward, cover them all. And also having a leading position on top of that in microperimetry with our unique MAIA device, servicing strongly growing pharma research field and going forward, also growing a retina specialist segment.

And additionally, we have also expanded to other health care like primary care and diabetes clinics with our screening solution, the solution that combines market's best screening fundus camera iCare DRSplus and very well-performing AI algorithm iCare RETCAD This combo, as we have seen in the market, has clear competitive advantage and has started to scale up well. So all-in-all, we can say that our customer segment coverage is the widest in the market when we combine these 2 companies together.

Okay. Let's move to a product portfolio then. So I started by covering the overall total addressable market expansion as well as the market-leading coverage in customer segments. So why does this combination matter? A few reasons. First of all, every single optical store, optometric practice, ophthalmology practice or clinic need refraction equipment, including lens meters, autorefractors, refraction units and [ autorefractors ].

Secondly, in optical retail, ophthalmic diagnostics starts from tonometers and advances to fundus cameras. Many large optical retail markets are still in this transition phase, offering a great potential for future growth. And I'll get back to this market evolution a bit more in details later. Thirdly, clinical optometry today demands ultra-widefield fundus imaging and increasingly OCT and typically as a combo.

Now that we have -- we will have these high-quality assets in the portfolio, this is really crucial to meet the needs of this segment, which is at the center of our business. And finally, ophthalmology. Ophthalmology uses OCT as a diagnostic standard in many cases already. And typically, this is combined with a high-end fundus cameras. So we will really have a broad portfolio of products meeting needs of different customer segments.

So we have called this as a turnkey solution for optical retail and optometry, and this is what it really is. So real turnkey solution can only be offered when the full clinical journey is covered by devices and solutions starting from pretest phase or screening phase as it shows here to refraction and further to clinical diagnostics and disease management.

And in our case, we will take the solution in optical retail until spectacle manufacturing by including finishing and dispensing devices in the portfolio. And beneath there, you can see connecting platform and clinical data management as an underpinning connector. So connecting software platform is really key to build efficiencies in clinical workflows to collect data from multiple data points, supporting clinical decision-making, often assisted nowadays by AI.

So when patients and professionals are not always in the same location, electronic data transfer and teleoptometry or teleophthalmology solutions are needed. And now these will be also included into our solution portfolio. So we will combine as a combined portfolio, all this together in a joint product portfolio and create a real one-stop shop for many key customer segments. As I mentioned earlier, optical retail and optometry landscape is really evolving fast.

And I want to take a few example markets really kind of trying to explain this more deeply why different markets need really different recipe, different products to be -- to meet the customer needs. So there are still many markets, also pretty large ones like Italy, what I've used here as an example, where optical retail is focusing on refractive examinations and spectacle sales. Now with the full refraction product portfolio, we can fully tap into these markets as well.

But there is, at the same time, clear trend that drives for larger adoption for clinical diagnostic tasks in optical retail and optometry, meaning that delegation of these tasks to better match increasing demand. And this is where Germany is used here as an example and is a good example of such a market. Such a market where optical retail is transforming towards early phase of clinical optometry services.

This includes typically tonometry and fundus imaging. And really, this offers a great potential for us as our combined refraction and clinical diagnostic device portfolio is in use. And we can see really a nice take-up on such kind of solution already today. Then as a third example here of different markets we operate in, I've got here U.S., U.K. and Australia, and there could be many other markets where we have got highly educated clinical optometry, acting as a primary care for ophthalmic conditions.

And in these markets, we offer full end-to-end diagnostic solution, including advanced fundus imaging and OCT. So hopefully, this clarifies the strategic importance of the full end-to-end product portfolio. This is really the only way to be relevant in all the markets and be able to tap into opportunities in the current evolution when they open. And then about the OCT. So OCT has been probably the best recognized and mostly mentioned addition to Revenio's current portfolio via this acquisition.

And really, it is an important part of it. But as I just explained, that's not all of the story. So with this transaction, we will get expedited entry to the OCT segment, which is really, in many ways, future-proofing our portfolio. And I'll now bring 3 different dimensions to the kind of importance of OCT. Of course, it is an interesting and important stand-alone business segment representing USD 700 million annual sales potential. And now we will get access to several subsegments in that business and in that market with this transaction.

So that's important. It's also equally -- almost equally important to really have a kind of solid solution for OCT as OCT is really becoming a diagnostic imperative in ophthalmic diagnostics in different ways, and I'll open that a bit on the next slide. And thirdly, OCT is not only a stand-alone business. So it also as a technology offers us new opportunities for our product development using the same technology across the different parts of the portfolio.

So what does it mean that OCT is becoming a diagnostic imperative in ophthalmic diagnostics. So a few words about the OCT itself, what it is. So you can imagine OCT being almost like an MRI of the eye. So really, it is a noninvasive micron resolution cross-sectional study of the structures of the eye. And that means that it really expands the diagnostic capabilities of fundus images to beneath the surface of retina.

It's not replacing fundus imaging, but it really increases the capabilities. And as such, it's really increasingly important tool for diagnosis and disease management for the common retinal and corneal diseases like AMD, diabetic retinopathy, glaucoma and anterior segment conditions. And we also believe that there will be increased use for OCT technology going forward in retinal screening solutions as well.

Then the role of the OCT as a driver for R&D -- future R&D opportunities. So how does it help to develop other products? Our confocal imaging technology has really proven to have superior image quality in fundus imaging. And now we can explore the options to combine this with a state-of-the-art OCT as the combo devices, fundus OCT combo devices are one of the fastest-growing OCT segment in the market.

Besides that, for example, our MAIA microperimeter, which is a gold standard in its segment, is an interesting area where OCT technology can be adopted to. So OCT technology will allow significant improvement opportunities for perimetry and microperimetry as well. So as an example, we have just released OCT-guided microperimetry software module for MAIA.

So we are already acting in that space, and now we will have own in-house OCT portfolio and technology and expertise and knowledge to build on. So to sum up the product and portfolio rationale for this transaction, really 3 key areas there or key elements there. So massive increase in total addressable market from USD 1 billion to USD 2.5 billion and covering vast majority of the diagnostic equipment we have decided to play in.

And on top of that, we will cover the market customer segments, all of them, actually, all core of them in the market have, as an outcome, have the widest customer segment coverage really, then allowing us to tap into opportunities in different markets, which are in different evolutionary phase.

And finally, of course, getting the OCT -- important OCT addition into portfolio and get that in a way that we will get 3 products straight into 3 subsegments in the OCT market. So having a great fast start and then really be able to adopt OCT technology into other product development as well going forward.

So then over to Robin.

So just a reminder, we'll just cover again how the transaction is being financed. So like in the beginning, you heard the enterprise value, EUR 290 million. Out of that equity value, EUR 250 million and EUR 40 million for net debt, net working capital and other adjustments. How it's being kind of allocated then the EUR 250 million is that 22.3% of that is being paid with shares. That adds up to EUR 55.7 million.

And the important point here is that the direct share issue to the sellers is done at a price of EUR 22.40, which is a roughly 50% premium of where we are trading today. And the remaining EUR 194.3 million is being paid with cash. For financing it, we have the Nordea term loan facility, EUR 130 million with very favorable terms from a shareholder point of view. We have the EUR 80 million bridge to equity facility with a maturity of 6 plus 6 months.

We have, of course, cash in hand, and we've agreed with Nordea on a revolving credit line, if needed. We have agreed with the sellers on EUR 17 million, roughly 10% of the cash portion vendor loan interest-free payable 12 months after closing. And with that, together with the directed issue is kind of how the transaction is being financed.

The post-completion rights issue for kind of repaying the EUR 80 million bridge loan that we've agreed with Nordea is actually subject to decisions of the AGM scheduled to be held on the 12th of May, so in roughly a couple of weeks. So Nordea has been engaged to act as the global coordinator and underwriter for the rights issue. The rights issue will be taking place sometime mid- to late second half.

So we need kind of to be able to close the Q2 first to have fresh numbers. We will be preparing a full prospectus for the issue. William Demant and the sellers together have basically representing roughly 31% of the shares after post completion have irrevocably committed to subscribe pro rata for the shares in the planned rights issue and the remaining 69% is basically underwritten by Nordea.

So the financing is fully committed as it stands. Basically, so like I said, the proceeds from the rights issue is being used then to repay the bridge loan we have in the balance sheet.

Let's start recapping. So here you see the phased value creation journey. So 3 major parts. So first one is the quick wins mobilization. Second one, traction and buildup. And then the third one is continued growth and sustained leadership on the product side. And if you start from the first one, so quick wins and mobilization. So we have been working already months in order to be ready from the day 1 after the closing.

So we have a clear understanding regarding to the -- how the organization operative model should go. And really the plan right from the beginning is to have a clear target setting regarding to the top line synergies. So where are we going to get the top line increase during '26, '27, where we are going to get the cost side of the synergies. So extremely good clarity for those plans starts to be there already and ready for the day 1.

And then regarding the long-term synergies, so we are working and starting to work in detail regarding the portfolio product strategy, updating the combined company corporate strategy and heading towards the CMD, which we are going to keep towards the end of September, early October. And as said earlier, so we are targeting to have a EUR 20 million EBITDA uplift by the end of '29, where the 70% is planned to come by the end of '27. Then if we move to the traction and buildup part, so of course, we continue to harness the synergy plan.

But then there's a big effort coming and on the plans already end of '26, early '27 how the combined product road maps are going to look. So we see there great opportunities. And of course, all the time during the '26, '27 and onwards, the both companies are planning to continue to invest into the R&D. So as a stand-alone revenue in every segment where we are currently operating, we are going to have compelling products and software services coming out in the future and same, of course, applies for the Visionix.

And here, we have said that by the end of '29 bit by bit, we are going to get also, of course, the profitability up into the levels where we're currently operating. And then beyond 2030, so we are having also the clear ideas in mind, of course, needs still a work, how we are able to sustain the innovation for the forthcoming products and what really compelling and totally new we would be able to bring to the customers in the long run.

And also the plan is to start approaching from 25% EBITDA margin more towards the 30%. And as said, April 13, so really the clear plan and target is that we are aiming to go 3x faster than the market. So I think this is just good for everybody to keep in mind. But before moving to the Q&A, I bet there's quite many questions coming.

So before jumping to that one, I would like to say a big thanks for Robin. So we have had a joint path together now almost daily basis for 6 years, you have been working for Revenio. 11 years on June and you came in, there were lots of people, then there were 35, 40, right?

30, 32.

And then we were divesting the portfolio, getting this interview in and now working on the Visionix in order to open the next great path. So on my behalf, big thanks, Robin, for -- it has been a pleasure to work with you and good luck for the forthcoming job as well.

So -- and then, of course, the good news is that we have been onboarding with Robin, Juha Jaatinen already and so we have a continuation plan already in place and working well. But thank you, Robin. And not released yet for sure. So we have a Q&A coming, and I bet there's many, many questions coming. But anything you would like to say?

No, I want to thank everybody in the company, the colleagues and coworkers, of course, the investors and all the partners involved. It's been, I think, a great 11 years in the company. The difficult decision, timing maybe not optimal. These are the M&A and changing jobs is a long process and kind of this time maybe the timing wasn't ideal.

But I feel 11 years in the company, it may be time to have a look at what else there is around other than revenue, but I'm still joining another public company. So if you follow, then I might be that our roads come across again.

Very good. Thank you, Robin. Let's move for the Q&A. I bet there's many questions coming. So let's address them all. Thank you.

[Operator Instructions] The next question comes from [ Guillermo Brinirocha ] from RBCCM.

Just 2 from me. Could you update us on how the iCare ILLUME ramp is progressing? So last result, you reported strong momentum in Life side. So has this momentum continued? That's my first question. And my second question, you pointed to a very strong sales growth in the Fundus device this quarter. So does this mean that we can expect a large increase in the ILLUME subscription through 2026 and next year as well?

So regarding to the ILLUME momentum, so that's continuing. So we see increasing amounts of systems taken into [ life ]. We see increasing amount of course, hardware sold part of the ILLUME end-to-end package. We see increasing amount of scaling the AI report package up. And as said quite many times, of course, now the majority of the revenue is coming from the device part, i.e., the DRSplus.

But the overall take-up is good. Feedback is extremely good regarding to the full end-to-end solution. Then regarding to the fundus imaging sales. So we see -- we saw a strong growth in the U.S.A. on the fundus imaging side, EIDON selling really well. Of course, the DRSplus, then more sales on Europe level regarding to the -- or driven by the screening whether it ILLUME or just DRS plus sold for screening. So I think that, hopefully, [ Juliame ] addresses your questions or anything else.

The next question comes from Nikko Ruokangas from SEB.

This is Nikko Ruokangas from SEB. And first of all, thank you, Robin, for the years and good luck for the future. I have a couple of questions, and I'd like to start also on the fundus imaging side of old Revenio business. Could you comment on -- have you seen kind of the market there improving or do you think that you are taking market share there given that some of your competitors seem to be struggling in the segment?

Regarding to the Q1, I think we haven't yet seen the competitor numbers. So I think coming most probably in 1, 2, 3 weeks' time. So hard to comment on that one. But I think it's the normal market when it's normal on the fundus imaging side growth roughly 3% or so forth. So for sure, we have had a higher growth.

But I think we know in a couple of weeks' time when we know the competitors numbers. But for us, it has been -- products have been moving out really, really well and especially even if looking from the U.S. dollar perspective, so growth in the U.S. dollar perspective, which is then comparing apples-to-apples. So we have had a good growth during the Q1.

That's good to hear. And is it something or this kind of a sales mix for the old revenue with higher now fundus imaging taking higher shares or is this something you expect to see also in the coming quarters?

For the whole year, I think we've kind of planned the growth also for tonometers. But now imaging did take a very strong start for the year. We do have very promising deals on the imaging side, especially on the pipeline. So there's a good chance that does perform quite well this year. Difficult to say yet. But I think Q1 was a bit stronger than we expected a couple of quarters ago.

Okay. Then moving on to Visionix. And I was wondering whether you could give us some comments on Visionix performance in Q1 as you probably know how they have been doing. And then maybe additionally, as you just talked about different product categories you are entering now through the acquisition. So could you give us some further color on which product segments within Visionix have been growing and which have not during the past couple of years?

So do you want to comment? So maybe I comment. So we signed the deal April 13. We haven't closed the deal. So we don't have a possibility to comment on their behalf their performance as such. Perhaps the general comment regarding to the different segments, what they are having.

So from the market study perspective and overall industry trend perspective, it's fair to assume that OCT is from the ophthalmic diagnostic device market perspective. So that's estimated to grow quite fast. So 4.7% roughly, as Erkki was mentioning. So I think it's a fair assumption also from their side that that's a growing segment.

And then, of course, the multimodal devices, which were really core of our strategy around. So if you go back the last CMD, so we were highlighting the multimodal growth. So that's really a growing segment where Visionix is having a unique product.

So on that perspective, I think they are good on that side as well. And of course, the software solutions. So coming back to the telehealth, what Erkki mentioned. So telehealth is increasing in terms of the demand as well. So -- but Nikko, sorry, not able to, before the closing answer on their behalf.

Yes. I understand. But that was good. Then the last one from me at this point. You are targeting for the combined company 3x market growth and EBITDA margin of 25% in '28 to '29. So my question is how tightly are these 2 targets, meaning growth and profitability targets connected? So how high combined sales do you need to have in your estimates so that you would reach 25% EBITDA margin?

So if you think the logic, so we have been communicating to the market that we are -- the target is to grow 3x faster than the market. So throughout all these years, whether is it '27, '28, '29, '30. So that's our aim to go 3x faster than the market.

And then the second topic is which we envision to improve quarter-by-quarter, year-by-year is hitting the 25% EBITDA margin by the end of '25. So sorry yes, '28. Yes. So that's in a planning book for us. So in a way, gradually bringing the profitability up and then, of course, keeping the sales growth up as well during the years and coming quarters.

Yes. We need growth also to cover, of course, the cost base continues to grow with inflation. So difficult without growth to achieve all these profitability targets, as I'm sure you understand.

The next question comes from Daniel Lepisto from Danske Bank.

It's Daniel Lepisto from Danske Bank. I also have a couple of questions. Maybe starting up with this gross margin, which remains below 70%, which is not something that we're used to seeing for you guys for a prolonged period.

So how much was the FX impact here? And with this tariffs in place, do you think this is the new normal? So basically, can you do anything here if this current tariff regime remains in place? Can you do more price hikes or are you like fighting towards the 70% level for now?

I think we're probably targeting to get closer to 70%. So the price increases weren't fully in for the whole quarter. So we kind of expect to do a little bit better. Then, of course, the imaging sales proportion was quite high in Q1, which also has an impact on the gross margin as the tonometry gross margin is a little bit higher.

But it's not kind of -- the price increase were not fully in yet for the whole quarter. So the tariffs definitely have an impact. So we're targeting to make as many euros as before, but kind of the tariffs are kind of -- price increases are just kind of covering the cost increase with 0 margin. So the percentage kind of mathematically comes down even though the euros are still kind of being covered by the price increases.

And comparable quarter Q1 2025, so there were no tariff impact as well, and that was the reason why gross margin was over 72%. FX has an impact because we got -- for this amount of dollars last year, we would have gotten 11% more top line from the dollar.

So basically, that, of course, has an impact on the gross margin. We do have cost of sales roughly 25% to 30% priced in dollars. So it's not kind of there's some buffer or some hedging there, but there's a big impact on the gross margin and EBIT level as well.

All right. Okay. Maybe continuing on this -- still on this segment level growth that you discussed on this fundus imaging growing very strongly. So along with how you typically guide verbally on these growth rates, how does this tally up with what comes with tonometers, probes and perimetry growing since with 8% growth, imaging devices growing very strong, it seems that something is not growing or is barely growing if we look at the product segments. So can you comment on these other segments? How are they growing?

The biggest reason by far the poor growth was kind of the APAC poor growth. So basically, that drew down. I think Europe and U.S., we were doing extremely well, but then - yes. But APAC was clearly down, but one driver there is that the comparable period, we had a pretty big onetime order that we didn't get this year. So kind of looking at Q2, we don't have that big order in the comparables in APAC. So it's expected to improve.

Okay. That's clear. Maybe final question on these larger deals in the pipeline that you have been talking about, I guess, since Q3 last year. So there seems to be a quite long lead time. So these have been noted to be as material as having potential impact on the guidance. So these are still on the table or you haven't fully wrote off these quite yet?

No, no, no, they're still there. Still there, still working on it, not the fastest to close apparently.

[Operator Instructions] The next question comes from Pia Rosqvist-Heinsalmi from DNB Carnegie.

It's Pia from DNB Carnegie. I'll start still by acknowledging that you have withdrawn your guidance, but can you give some kind of comments based on the performance you now saw in Q1?

Are you kind of -- you are tracking along the lower end of that guided range? So I think you alluded to that everything has proceeded according to your plans, but maybe coming back to Daniel's comments. So how are -- how is -- how comfortable are you that your portfolio will continue to perform in the same way?

I think we -- looking at last year's quarters, we had the toughest comparison quarter or the biggest growth quarter. Q1 grew last year almost 15%. So internally, our plans also was expecting the Q1 to be the lower growth quarter out of the 4. So in a way, it's fully in line what we've kind of been planning to do.

All right. Then regarding the clinical trial, I mean, you said you are now in the phase of recruiting or the patients are entering the clinics. What kind of costs should we expect related to the clinical trials now for the remaining quarters of 2026?

Pre-study expense estimation was like EUR 600,000, EUR 700,000. We did incur some of that already, but there is probably, I'd say, maybe EUR 400,000 to EUR 500,000 left or do you have a better estimate?

That's a ballpark, right?

Right. Okay. Then going to the Visionix deal. My first question is that what kind of terms and conditions do you have? Is there a risk that the deal falls through now given that your share price has declined clearly since the announcement?

No, no. We are proceeding as planned. There's no kind of -- nothing -- no kind of triggers related to the share price in any type.

All right. Good. And then regarding Visionix, you published sales and earnings numbers for '24 and '25. And yes, we the market saw that the company hasn't been growing. So is there any kind of -- can you give -- shed some light regarding the organic growth of that business going back several years like 4, 5 years would be really helpful to get an understanding of how their business has been able to grow.

So if you go back as a longer period roughly, I mean, 9 years, 10 years or so forth. So they have had the CAGR growth roughly 8% in a way. So they have been able to grow. And now when looking at the combined company, so we are extremely sure that we are able to get the combined company and also their product portfolio growing.

Otherwise, we wouldn't be, of course, closed the transaction. And we are extremely sure that we are able to get the profitability up as well. So we have a clear plan for that, and they have a clear plans already, and that has improved already in the background even during the Q1.

I think Marc said in the kind of the -- where we released the transaction or had the analyst visit in the presentations related to the announcement. I think Marc said that like us, the COVID years were very strong for them. So they're similar to us, they were growing very strongly in the beginning of the 2020s, just like we were.

All right. And maybe still regarding the expectations, I mean, looking forward for Visionix, they did not grow last year, but the profitability improved on EBITDA level and the margin improved. So can you shed any light on your expectations for or Visionix's expectations for this year?

For this year, I can't really open what the outlook is. I think we're going to come back to that then with the combined guidance and then I'm sure in the Capital Markets Day. And then for the Rights Issue, we need to do the full prospectus. So that will be a lot of valuable information for the investors to look into, but unable to comment at this stage.

Yes. All right. And then finally, when I as an outsider and not an ophthalmic specialist look at the portfolio of the combined company, the question, I think, appears that is this finishing and dispensing business, is it really core for you from a diagnostic perspective?

It's obviously not part of diagnostic pathway, but it's still part of the, let's say, customer journey, especially in optical retail, which is a kind of a strong segment for Visionix. So they are serving a lot of those customers in that segment who are still also manufacturing spectacles inside optical retail stores. So not really part of clinical journey, but part of customer journey.

Thank you, Robin, for excellent cooperation during the past years.

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Hey, thank you all. Have a good spring time, and we come back with the combined company Q2 numbers and now heading towards the closing of the transaction. And thank you for participating, and thank you for the really good questions. Bye.

Good afternoon from sunny Helsinki, and welcome to the webcast, everyone behind the line and also here in Sanomatalo. My name is Jouni Toijala, and I'm the CEO of Revenio Group. And excited to get everybody here in the audience and also in the webcast. So this is a significant day for us as a Revenio and also a significant day for Visionix. So we are going to make the history today. The name of the game is today to go through first by me, the logic why we decided to join forces with Visionix. Robin is going to go through the transaction details. And then perhaps one of the most interesting part is to actually get Marc from Visionix, our President and CEO on the interview together with Charles from Caravelle and also Arne Boye Nielsen, the Chairman of the Board for Revenio Group.

We have been having many, many discussions, I would say, even countless discussions regarding to the -- what would be the dream case match made in heaven for Revenio Group to join the forces with I can see many familiar faces here from the analysts also, we have had extremely huge amount of investor roadshows. And what we have been answering with Robin is that it would be great for the group in the long term to have extremely complementary product portfolio, expand our EUR 1 billion market in the ophthalmic diagnostic devices to the new segments where we are not currently playing.

Then if we get the scale to the product portfolio, we are going to get the scale to the channel in order to provide a better package in terms of product also for our distributors. And then, of course, the most important part as well is our existing and new shareholders. So we are really able to accelerate the growth. So really happy to announce today that we have now signed the deal with Visionix to join the forces. We are going to end up to the totally different league. Sales is going to be roughly EUR 250 million EBITDA level. And the enterprise value of the deal is EUR 290 million equity value, EUR 250 million. Robin is going to go through the details through in more detail, but we are going to finance the deal with the cash, with revenue shares and then, of course, the debt financing and then the vendor loan. But Robin is going to come back to this one later.

I'm sure we slightly missed at least the analyst schedule today. So thank you all for coming here at Sanomatalo face-to-face. And I'm sure quite many of you have after the reading the news, so you have been most probably looking what the Visionix is about the company. So founded by Marc. So really happy to have Marc on the stage later. So he's going to, to tell the story.

And then in terms of the sales, so a bit more bigger than Revenio Group, EUR 140 million EBITDA level, EUR 16 million, roughly EUR 17 million, 5 R&D centers across the globe. And then from the sales perspective, this is a really good match for revenue, as you can see. So we have roughly 50% of the Revenio side coming from the U.S.A., then roughly 30% from the Europe, Middle East, Africa, LatAm, Canada and then the remaining part from the APAC.

So this is nicely going to balance our joint combined company in the long run because a big part of the Visionix revenue is coming from the EMEA region. Then also like we, so extremely good thing is that the Visionix is also having a direct channel then part of the business coming from the OEM side and then as us distributor network as well. And from the offering point of view, we are really expanding the portfolio. So we are going to get a fully blown extremely high-quality OCT device package, so not only the one device, but the portfolio of devices at the OCT side. Then the multimodal devices, refraction system etching and mounting. And then on the software side, we are going to get the data management platform together with the telehealth, which is picking up really nicely at the Visionix end.

We have one product only, which is overlapping and that's the VX 110 fundus imaging device. But I mean from the product portfolio, perfect match. If you look at the combined company, so roughly EUR 250 million, EUR 40 million EBITDA level. I mean, we start to be one of the biggest players now on the ophthalmic diagnostic device side. And what's extremely important on this one is that we are rising the accessible market from EUR 1 billion to EUR 2.5 billion. So from EUR 1 billion to EUR 2.5 billion. Biggest part of that one is the OCT, then we get the refractometers, slit lamps and then the multimodal devices. And if you go back to the earlier discussions, whether they are our earnings calls or AGM or investor roadshows, so we have been saying that the market where we currently are playing grows roughly 3% to 4%, so fundus imaging, 3 to 4 perimeters, 2 to 3 tonometers, ballpark, the same, even 1% to 2%.

So this now gives us a room as a combined company to move from EUR 1 billion to EUR 2.5 billion. OCT, that's the fastest-growing segment as we speak, so a bit after 5%. And then the multimodal devices are even growing faster. So this is extremely good news for all of us. Then what we have really been saying that this really accelerates our growth and the value creation. So it's a total step change on the speed to get the more growth and the value creation. There's 3 top topics here. So the first one is the complementary product portfolio from the device side and also from the software side. Then I mentioned already that we are increasing the accessible market from EUR 1 billion to EUR 2.5 billion, getting immediate access to the OCT devices, which I think everybody have been missing.

And then the synergies are going to be extremely good. So we are also targeting EUR 20 million EBITDA synergies, which are coming by the increasing the top line and then also from the cost side. I'm going to cover these 3 topics now through. And I think this best illustrates the product portfolio. So we have been extremely strong on tonometers also on the microperimetry, a bit more challenging on the perimetry side. Then on the fundus imaging side, extremely strong. Still room to grow organically as everybody knows and understands. But however, if you now look at the portfolio, so we are going to get through by joining the forces with Visionix, we are going to get the OCT devices.

So that's the significant fastly growing EUR 700 million accessible market part. Then we are going to get the multimodal devices, refraction system and then also the etching and mounting part. And then the big topic, extremely important topic is also already fully working sellable telehealth solution, which is the Nexus part of the Nexus platform. If we switch the lens a bit and we look this one from the optical retail or optometry customer journey point of view. So we haven't been ever as a stand-alone Revenio. So we have had the spot products in a journey. So we have had the products in pretest cleaning side like the Tonometers DRSplus nothing from the refractive, the EIDON on the diagnostic side. And then, of course, nothing on the finishing and dispensing side.

But now by joining the forces with Visionix, we are actually able to cover the whole end-to-end journey, what the patient is going through and really provide the excellent and high-quality diagnostic devices for that, including the software. Another angle or lens to look -- this one is to look at the different diseases. So we have been strong in glaucoma, retinal diseases. What we have been missing is the OCT. Now by combining forces with Visionix, we are having it. We haven't been present on corneal issue side. We're not on the dry eye, not on the refractive side. Now we have it by combining the forces. And this is great news.

Then the customer segments. So if we think the customer segments where we have been operating, so we have been constantly saying that revenue as a stand-alone 55%, 60% comes from the optometry, then reasonably strong in ophthalmology. What we have been missing on the ophthalmology side regarding to the structure, so how to diagnose the structural changes of the retina, we have been missing the OCT. Now we have it ready to sell in all the geographies, extremely good portfolio, high-quality products. Then on the optometry, we are going to get the expansion for the optometry regarding the refraction. And then we haven't been too strong on fully blown optical retail. I mean, now we cover the whole customer journey.

And then, of course, in addition to that, we have been all the time at the home care, then other health care clinicals and then Maya for Pharma and research. Let's wrap this one up. I think this is one of the most important topics. I'm sorry if I'm repeating this one. So we used to be in a EUR 1 billion accessible market with tonometers, with fundus imaging with the perimetry. Now that is going to increase from EUR 1 billion to EUR 2.5 billion. OCT, multimodal, slit lamps, refractor meters. This is going to be now the path for us to grow years to come.

So if we would have been only as a stand-alone company, only focusing on this EUR 1 billion part and coming back to the all the earnings calls or AGMs or investor roadshows or analyst calls, we have been saying that, okay, yes, we can grow. And then there has been the discussion and question that what would be the dream package. Dream package is now here. So a wider portfolio moving from EUR 1 billion to EUR 2.5 billion in terms of the accessible market share, able to scale the channel, get the benefits also for customers. So this is really good news.

And then if we're really starting to look forward, so we haven't yet fully started the work on this front, but we have been many times saying that we as a revenue as a stand-alone, we have been constantly investing roughly 10% to the R&D. Visionix team has been doing more or less the same. And we are going to have extremely compelling products coming out for every segment. It's the same for Visionix. And then if you start really to look the long term, combining OCT with TrueColor Confocal, tonometry with multimodal devices, TrueColor in the multimodal devices, et cetera.

So we have a huge, huge trust that we are really able to create new innovation in years to come, but together with the Visionix team. Then value creation. So 2 main levers for the synergies and the value creation. First one is the commercial part. So what to do together to fast track the top line. And then we have operational levers. And based on our current estimates, roughly 70% of the synergies, we are able to realize by the end of '27. And there's no upsides on this one, whether is it relating to the bringing the new solutions into the market, optimizing the assembly.

So those things to be studied in a long run. But let's start with route-to-market opportunities and the channel optimization. So I mean, this is excellent news for our distributors. It's excellent news for the direct sales force in the U.S.A. We go direct -- all of us in the U.S.A. I mean, now we have a comprehensive portfolio. It's a way wider than before. That's a clear benefit. Then also for our distributors, this is a great opportunity now to plan together how in the long run, we do the business together because, again, we have a way more wider product portfolio. So really good news.

Then on the cross-upselling perspective, now as a combined company, we are actually able to go also to the new segments. So this is a good. So I mean, we have a really good, really competitive joint portfolio. As an example, if you go for Spain, I mean, Visionix is already distributing our products in Spain, extremely good traction on the OCT combined with EIDON Ultra-Widefield field Imaging. So there's really a lot of opportunities in a short term and in a long term to increase the sales as a combined company.

It's a game-changing combination. So think about the U.S.A. as an example. So we start to be one of the most major players in the U.S.A. Sales is going to be roughly USD 100 million, USD 110 million in the U.S.A. This deal also is going to reduce the U.S. risk. So if we now have a U.S. revenue 50% in the long run, roughly 1/3, a bit more than 1/3. There's other extremely good countries, I mean, Germany, U.K., Australia, France, Spain, Italy. And then, of course, all the other regions and the countries then contributing to the to the 26%.

Then on the scale benefits perspective, cost savings, other synergies. So the main savings from the operating expenses point of view is going to actually come by integrating and optimizing the systems, IT systems, et cetera. And then we really start to have a volumes on the assembly manufacturing side as well. So as everybody knows, so we are not manufacturing anything. Then if we go for the Visionix, so they have their own assembly lines. So when we start to combine the 2 companies, so I'm sure we are able to get lots of benefits regarding the joint purchasing, joint supply chain management, et cetera.

So this is going to be a big part of the synergies in going forward. Before I let Robin to go through the transaction details, so let's wrap up the value creation journey. So '26, '27, that's the time for quick wins and mobilizing the team. So as I said, we are able to harness 70% of the synergies in next 18 months. So we are more or less finished up with the first half. We are going to combine the organization, processes and the systems. So the plan is that we are targeting to close the deal end of May. We have a plan to have a -- right from the day 1, new teams in place, organization clear. We hit the ground on running in order to harness the synergies right away starting from the second half.

And then what we also start is the plan for the long-term strategic synergies. So we are going to have a CMD, October, November time frame. We are going to go through the corporate strategy. We are going to refresh the product portfolio, product strategy and that to be communicated then towards the October and November time frame. Then '28, '29, we are sure that the -- we are in extremely good shape when it comes to the synergy level. We continued development of the new innovative products and solutions. And then we start to discussing, of course, before that one that how we should optimize the whole assembly, so how the products are going to be manufactured.

And I think everybody, of course, are hopefully realizing here that we are really targeting on '28, '29 to the 25% EBITDA margin. So the Visionix team has been working a lot now to improve already the profitability. That work is going to continue. I'm sure that, that is what we are able to do. And then that then brings us to beyond the 2030. So the plan is to continue to grow. Otherwise, it would be a bit more difficult. So if you only would have a EUR 1 billion addressable market share, now we have a EUR 2.5 billion. We have an extremely good competitive product portfolio able to do the turnkey for optical retail optometry.

Then there's going to be new interesting innovations on the product side already now for us, for Visionix and then in the combination. And really, the plan is to get the profitability in a long run into the level where the revenue stand-alone is. And we are committed to grow 3x faster than the market as part of this journey. And now we are going to focus on getting everything ready, planning the integration, which, of course, is going to be a lot of work, but we have Marc here to support us and all the other team members. So we are going to be successful on that one. So we are going to focus now on the business continuity and building up the -- and continuing the integration work.

But with these words, Robin.

Thank you, Jouni. So my name is Robin Pulkkinen. I'm the Group CFO for Revenio. Let's go through a little bit how we're going to make this all work out. So you probably have read some of these terms already in the releases today, but the enterprise value, EUR 290 million, EUR 250 million of that is payable to the sellers and the remaining EUR 40 million is used for repaying current debt, net working capital and other adjustments of the transaction.

Basically, 22.3% of the purchase price is being paid with the Revenio shares, new shares that are being printed. The price for which they're being allocated at is 22.4%, which is roughly 14% higher than the closing price on Friday. The remaining 77.7% is being paid in cash. We've agreed with Nordea on a term loan facility for EUR 130 million. Basically, its maturity is 4 plus 1 years, down payments, EUR 1 million a month, payable every 6 months tied to 6 months Euribor interest. And the margins are actually something similar that many would be happy to pay for a house loan.

So we're talking about well below 1%, closer to 0.5% margins on the interest. On addition, we have a bridge-to-equity facility for EUR 80 million. The idea here is to be -- this to be repaid with the proceeds of the rights issue done in the fall this year. The -- it's basically 6 plus 6 months maturity for the bridge loan. Then we have cash in hand, of course, like revenue has always been a very strong cash-generating company. We also have the cash for the target or Visionix available. And then we've also negotiated a EUR 10 million revolving credit limit that is available for us to use if needed. And then finally, we've agreed with the sellers roughly 10%, a little bit below of the cash portion being paid.

There's a vendor loan for that interest-free vendor loan payable 12 months from closing of the transaction. So the AGM, I think everybody noticed we canceled it this morning. So the original Annual General Meeting was supposed to be held on Wednesday this week. The cancellation was because basically, there's no new things we need to bring on the agenda for the new meeting. We're going to be sending out the invitation this week and probably the new AGM will be held sometime mid-May. Basically, for completing the transaction, we would need to -- the Board of Directors will be proposing that the AGM approves the share issue of roughly 2.5 million new shares to the sellers.

In addition, we need to get the authorization for arranging the rights issue post closing or after in the fall of this year. The rights issue has been fully underwritten by Nordea. So in a way, we have fully committed financing available for the transaction. In addition, we will be kind of doing a little bit different Board proposal for the Board members than we had in the original invitation. So instead of the 5 -- the same 5 people who were there in the original invitation will be adding 3 new people.

We'll have Charles Vilgrain, who's here today. You'll see him in a few moments in the discussion panel. We have Marc, the CEO and Founder of Visionix; and then also Niclas Hansten, the Chief Investment Officer of William Demant Invest. We've received an irrevocable undertaking from Demant Invest owing roughly 24.5% of our shares to vote in favor of the Board proposal in the AGM. After the transaction closes, there's a bit look how the cap table will look. So the Visionix sellers will roughly hold 8.5% of the shares. So basically, there's a couple of people in there, so it will be split up. But basically, Caravelle is the biggest of the single owner of those sellers receiving shares.

And then the post-completion rights issue, we've engaged with Nordea as the global coordinator and underwriter for the rights issue, targeting to be arranged in the second half this year. So we have also for the rights issue, William Demant and the sellers after receiving the shares of the purchase price consideration, have both irrevocably committed to subscribe pro rata for the shares in the rights issue. And then that's basically 31% of the shares outstanding after completion of the transaction. The remaining 69% is underwritten by Nordea. And of course, the proceeds is being used to repay the bridge loan we have in the balance sheet.

Looking at the combined numbers. So basically, there's a few things you need to take into account. So you already saw we're looking at last year, how the numbers would have looked if we combine them. Net sales, EUR 153 million, EUR 48 million adjusted EBITDA. And then here, it's important to notice that basically the purchase price allocation and related depreciations and amortizations are not in here. So those will be published as part of our Q2 numbers that are coming out after summer. So we'll -- I won't be speculating what that might be looking like. But basically, that work is ongoing. And then on the lower part of the graph, you can see the more the balance sheet items.

So the combined unaudited numbers have some adjustments. So the total assets, we've added EUR 142 million to that. Basically, it's the difference between the net assets of Visionix and the equity value being paid. On the equity, we've eliminated the Visionix equity and added the EUR 55.7 million share issue to the sellers to the combined equity. On the liabilities, we've assumed refinancing of the new financial facilities in place. So if you look at after closing, the net debt adjusted EBITDA number is multiplied like 4.4 and equity ratio above 35%.

Those are expected to significantly improve after the rights issue is done. So -- so after the rights issue, we expect the net debt to adjusted EBITDA to be around or below 2.5 and the equity ratio to increase above 50%. And going forward, the group is expected to be very strong cash generating. So these numbers are expected to improve as we move forward. So the group structure, Visionix will be integrated into the Revenio Group structure. The combined group will operate under revenue governance model and reporting framework. So even after closing, you'll find us in NASDAQ with the same ticker, REG1V. So no change there from an investor point of view.

We're looking to kind of leveraging the best of the both companies that also goes to a balanced leadership participation. So the leadership team will have some changes as part of this transaction and the new leadership team will be announced then together with the closing time frame sometime later during this Q2. So we withdrew our guidance. I guess that's not a surprise to anybody at this stage. We'll be giving out the new guidance after the post completion of the transaction. And the one-off costs. So in order to achieving the synergies we're trying to get from this transaction, there will be one-off costs. Basically, our estimate currently is roughly EUR 20 million. 30% of that is IT related, which will be capitalized for a big part. But also there's costs through organizational restructuring, rebranding, marketing and project management and other costs as well.

Those are expected to take place like Jouni is expected for 70% of the synergies to take place within the next 18 months. The costs are also expected to take place mostly in the next 18 months. And time line, AGM sometime mid-May, invitation being sent out this week. Completion by the end of Q2, hopefully, a bit sooner than end of June. And then the post-completion rights issue after the summer. So we need, of course, fresh numbers, Q2 reported numbers before we can go out. So most likely, we're looking early September, October time frame.

And then can I invite Marc Abitbol, the CEO and Founder of Visionix on stage. Also Arne Boye Nielsen, the Chair of the Board of Revenio Group; and Charles Vilgrain, the Managing Partner for Caravelle.

Thank you.

Welcome, gentlemen.

Thank you.

Great to have you here. Usually, we are the ones that are answering all the questions with Robin, but now the situation is different. So we are going to have a couple of topics for today's discussion with the gentlemen. So we are going to start with the strategic rationale and the combined company governance. Then we are going to cover the strategic fit plus the value creation as a one theme. And then, of course, the interesting part is the integration and the oversight of the integration.

And then we have a choker question at the end. So we wait for that one. But Arne, first one goes for you. So from the revenue Board and shareholder perspective, what makes this acquisition strategically different compared to the other options that we have been looking? And how do you see this one playing out when it comes to the long-term strategic opportunities for the combined company?

I think it's not a secret that for some time, we have been looking at the opportunities for expanding partly because we needed a broader product program, but also so we can get a stronger distribution. And this is what I would see as quite a perfect marriage because we're getting a much better, broader product program. We are getting into the OCT business that we really can utilize to cross-sell some of the other products we have.

And by that, we can get back on -- not get back. We are on a growth track, but to continue to grow. But what really gives me a good feeling is that the last month here, we have spent quite some time together and also people -- some people in the organization and so on. And I really have a good feeling of the match between the culture and the people. It's very much the same way we are thinking. So I think that is the key.

If we didn't have this people match between us and we didn't have the sign-up from the sellers, not just taking all the people -- all the money on the table and leaving the room, but actually that you reinvest in the company and that you also will participate partly on the Board, partly on the whole integration of the company is very, very important. And I think that's important for the future success of this whole joint session that we have to go through that we're going through.

Thank you, Arne. And perhaps the continuation question, which goes for Charles. So it has been clear since beginning when talking with Marc, when talking with you, Charles, that you are not just selling as a Visionix shareholder, the shares out, but you are committed to the longer-term journey. So can you a bit explain that logic for us? Also, I think you are going to subscribe the shares with the higher price where we are trading today. And so can you kind of go through the logic because for me, it's great to hear that as a Visionix shareholders, you are staying in, investing also and being committed for the long-term growth of the company and opportunity.

Thank you very much, Jouni. Yes, for sure. First of all, so I represent Caravelle. Caravelle is a French family-owned industrial investor. And we have permanent capital, and we can remain shareholders as long as we believe we're relevant for the company we invest in. And as Robin earlier told you, we're not just exiting. We're keeping a 25% exposure. We're buying the Revenio shares at EUR 22.4, so with a slight premium compared to today's price, which will make us the second largest shareholder of the combined group. And we're doing this because we're very confident in the fact that joining forces, as you earlier described, between Revenio and Visionix, will be able -- you will be able to make the a leading turnkey solution provider in the global iCare market. And this is what really enthusiasts us and why we want to remain shareholders in this group.

Thank you. Thank you, Charles. And perhaps giving another shareholder spin on this one. So Arne, are you a bit able to open the logic? So William Demant, our biggest shareholder, almost owning roughly 25% of the shares is also committed in a long run. So from the all shareholders' perspective, are you able to open that one a bit?

Of course, we do this investment, this acquisition, we do to create value for all shareholders. And we do it because we feel with this acquisition, we are much better prepared to continue the future growth of the company, and we are better prepared to continue to improve the margins as well. So I think for all shareholders, this will hopefully mean that we will grow the value of the company in the coming years. And I think that is at the end of the day, that is agenda or the agenda we have, that is to create value for the shareholders.

I fully agree on that one. But Marc, next one goes for you. So I think that we have had a countless discussion days, even nights every now and then. And since the beginning when we started this journey, so it has been a bit the journey like the 20-year-old kind of teenagers or so forth have a crush and then we have been wondering what the parents are thinking. But luckily, the parents have been positive because the long-term value creation logic is so clear. But Marc, so we have been sharing the same beliefs and the principles regarding to the and under the joining the forces team. So are you a bit able to talk that one through from your perspective because this is -- I mean, Visionix is your creation. It's your baby. It has been yours for 30 years. It's still going to be yours because you are going to stay in a journey. But we have had a pretty sentimental moment even every now and then on this one.

Let me back to the first thing you mentioned. I think what was the trigger of it is when we met together. And we feel together that we have same DNA, we share same value. And there was not a feeling that one company want to absorb the other. I was very impressed by the way you described how you want to build a leadership which is balanced. You want to look at the talent in the company and you want to leverage on everything which is on the table. And I have been very impressed by how humble you came to this discussion. You could come as an acquirer. No, you didn't come with this one. And I think this is fundamental to the success of the second level, which is what are the fundamental of these 2 companies.

The fundamental is that there is complementary product like Jouni described very nicely. And I think complementarity in product and complementarity in go-to-market. That means we are creating a product range which is almost inequalable in our market. So that will push on the market from a competitive point of view, something unique. There is nobody which is going to have the capability to merge ultrawide field with OCT, no one. So -- and I can list in terms of product and technology and road map, the strong advantage we are going to bring to the market. This is number one.

Number two, in go-to-market, we are creating in the U.S., the biggest presence in diagnostic in the ophthalmic U.S. market. The U.S. market is the biggest ophthalmic market. And we all know that critical mass mean in the U.S. And by this presence, we are going to take more market share. We are going to have closer presence to our customer, et cetera. And the mirror of it is in Europe because in Europe, we have direct presence and joining forces with the product range injected in the direct sales channels we have is the second extremely important in terms of gross margin, capitalizing on the profit that we don't let to the distributor we put in our direct sales channel.

So from product to go-to-market, we are combining something which is unique in this market. And for me, it's like you say a bit emotional, okay, 30 years ago, Visionix was 4 people in a small caravan. Today, it is almost 600 people. And I say I don't want to look at how nice was the past, and I want to look how nice is going to be the future. Beautiful who are going to be successful. For me, this will be the accomplishment of the past by the success we are going to have. And like Jouni say, not only I'm reinvesting part of it in the combined group, but I'm going to be active together under the supervision of, I mean, in the Board either in integration in technology to bring the knowledge and the experience and the contact I have built in this market during 30 years.

Thank you, Marc. And you stole a couple of my questions regarding the strategic fit and value creation. So thank you for that one. I'll skip those ones. But let's move to the integration and the overall oversight. So you partly, Marc, touched this one. So you are committed to stay on the Board in terms of reinvesting into the shares. Then also you are going to help the operational team in an integration. You are going to be part of the Board, et cetera. So I mean, where -- how -- where do you kind of now after the closing? So where do you see your role evolving?

So first of all, I think when 2 company like that merge and 2 very charismatic people like Jouni and myself are together, it is important that there will, one, recognize leadership and for the combined group is Jouni. On the other hand, there is knowledge. And as I say, for me, the success of my past 30 years is going to have a strong integration success. And discussing with Arne, we said where I can help a lot is from the Board looking at the integration. The execution of the integration is, of course, under Jouni, but looking recommendation, bringing experience, et cetera, and helping shaping this integration through the knowledge of the company, the knowledge of our customer.

This will reflect a strong confidence to our customer, to our employee that really like we say, we are joining forces because Jouni from the executive, the trusted leader of the company and myself under the leadership of Arne and the Board, we are going to work together and to bring this experience, each one from his side. And I think better match than that I never had in my experience. So I am excited, convinced that we are going right to the target.

Thank you, Marc.

I hope I didn't take another question.

No, no, no, perhaps the question was a better form of -- regarding the integration, especially the integration oversight, and this goes to you, Arne. So we have set a couple of targets and the aims for the long-term growth like 3x faster than the market, then '28, '29, getting the profitability in the 25% EBITDA level. But I mean, if you look the -- what we are trying to achieve on the integration perspective, so beyond the financial parts as well. So I mean, how would the successful integration look for you, Arne?

Well, first, we are doing this because we believe that we can get 2 plus 2 to be more than 4. And the only way we can get 2 plus 2 to be more than 4, that is to get -- to attack this in a very, very structured way. And the fantastic thing back to this with the culture, the meetings we have had so far, it's not like it's one company acquiring the other company or whatever. It has really been a fantastic open discussions where we are learning from each other. We look at what did you do great or what do you do great in Visionix?

What do we do great at Revenio, where can we learn from each other and so on. And it is to find this best practice from both parts of the company. And then really in a very structured way, make sure that we benefit from this learning implemented in the whole organization. So we some years from now, have one organization that is running the same way and to win more business, help more customers in the market.

I think that is at the end of the day. But of course, we also -- we can see that we have said a minimum EUR 20 million of synergy. The only way we can harvest EUR 20 million of synergy in the market that is hard dedicated work, but we have looked -- it's not just something we have spent 5 minutes looking at where is it we can find EUR 20 million. It -- there's a very good plan behind those EUR 20 million.

Thank you, Arne. I think we are starting to finalize this wonderful discussion with the last choker question. So what excites you most professionally and personally about the next chapter we are now starting to build together. Perhaps we start from Charles, then Arne and we finish up with Marc.

It's a good question, difficult one. 2, 3 things. I think that the Visionix mission has always been to improve iCare through technology and accessibility. It's very important. It has always been important for Marc and us. And I think that this combined iCare Visionix, will provide even better solutions to the iCare professionals to empower them with intuitive, reliable, integrated solutions. And those solutions to transform the patient care journey with new exams that will be more efficient, accurate and accessible as we say it.

So this is very important from this mission standpoint of view. But as Caravelle, we're truly excited to see Visionix joining forces with a business of Revenio's caliber Definitely, that the combined entity will now have, as Marc earlier said, the resources, the critical mass to address the new challenges. And definitely, those 2 groups together, they have now the technologies, the people, the operational excellence to further accelerate what has always been at core, at the heart of your project, which is innovation and growth. So yes, we're very pleased to remain involved and invested in the new chapter.

Thank you, Charles. Marc?

I've been super excited. It has been super exciting to see how excited the people, the ones that have known a little bit about this before the announcement today, how excited they are about the future and the opportunities that this bring to us. And I don't think it's not a secret the level for critical mass in this industry is increasing, growing year-by-year. And we have not been able to get to that level ourselves fast enough. And with this level now, with this joint -- those 2 companies joining forces, then we are really getting to this strong foundation, this strong level now where we can continue this growth path we have been on.

And I'm very confident about the margin improvements as well. So I look forward to see -- that's how I'm driven. I look forward to see a happy engaged team, growing our market share, growing -- improving our margins, then it will be a fantastic 2019, a fantastic outcome.

Thank you. Marc finish.

So life is short. And I was always wondering what will be the next step of Visionix. And the cycle are long in our industry. And I think this is a unique opportunity to make it faster than everything else. And I am extremely excited and a strong emotion to know that I'm going to participate to this second cycle. And it is not a given. I could have exit and forget it. But now I'm going to be part of another beginning of something which is really fantastic. And what Arne said about people, I can tell you 10 time. I was thinking in Finland, you found only cog people. This is wrong. I found the warmer people that I have in this industry, and thank you very much for the wonderful guests you have and how you take care of me. And okay, wow, let's go.

I think we finish up with that. Thank you, gentlemen. I'll let you go to your seats, and then I'll wrap up and then we move to the Q&A. So one slide to go. So today, this is a significant day for revenue. It's a significant day for Visionix team. I think it's a significant day for our patients, like Charles said. So we are really improving as a joint company reach through the iCare services. So we are able to help more people to keep the wonderful vision for all.

Then secondly, this is a really good combination for our customers. So -- we have a complete product portfolio in terms of the total accessible market, we are moving from EUR 1 billion to EUR 2.5 billion, getting the new segments in, which are growing faster than in our previous EUR 1 billion bucket. Then in terms of the team, in terms of all our stakeholders, we are really increasing the scale. We are increasing the scale in portfolio. We are increasing the scale in the channel, and that's a beneficial for Visionix team, it's a beneficial for Revenio team. It's beneficial for all our partners.

And then the last part is, of course, the shareholders. So I'm extremely happy to see the existing Visionix shareholders to commit the long-term growth story. And with this transaction, we are really accelerating the growth, and we are accelerating the value creation. With these words, I think it starts to be time for the Q&A. So Robin, if you can come here, the plan for the Q&A is following. So we start with the live audience here, and let's have a see how many questions they are going to be. And then we -- of course, we have an online [indiscernible] Tim Mari is going to help us to ask the questions from the online. So there's going to be a big bunch of the questions coming through...

Long list already.

Yes, long list. So bear with us. But...

I'm Pia Rosqvist from DNB Carnegie. I also have a long list. I'll try to limit myself. But I'm really eager to hear more about Visionix. So how has the growth journey looked like? I saw from the press release that the company did not grow last year. So what does the growth journey historically look like? And what can you tell me about the profitability development of the company over the years?

Should we maybe go back to Marc. Yes. Maybe Marc, if you fancy coming to tell a bit about the history, you are visible on the webcast as well. So you can come in the middle, if that's okay. I go in the middle.

Whatever you want -- so okay, let's talk about the historical growth of Visionix. We had 2 very strong compounding growth, okay, external and organic growth. And indeed, the last 2023 and '24 were more stable. We had post-COVID, a very strong growth post-COVID, much twice the market. I think we were around 10%. Just to give you a figure in 2019, when Caravelle acquired a majority in Visionix, we were about close to EUR 90 million. And today, we are at EUR 144 million. So we have a strong rebound at post-COVID. The second half of '20 was the best at that time and '21, '22 and more flat in '23. So we had a historical parkour where we grow, we have some plateau and we continue to grow.

To give a reference, I think in 2010, we were around EUR 50 million. So you can see the progression. And part of it was through acquisition and part of it organic. I think we started in 2003, around EUR 12 million, so 2010, EUR 50 million, 2019, close to EUR 90 million and et cetera. So that has been the journey. In fact, as a start-up company, it took us some time to found the market segment and the right product, which was unique in our market and give us a growth potential. Regarding the profitability, so there is twofold which has impacted our profitability. And also, I will describe the plan we have. First of all, we had an impact of the manufacturing cost post-COVID. If you remember, there was quite a severe impact in the cost of components, et cetera. And that was the first one.

The second one, we have been impacted in the currency because we have manufacturing in Israel. And the new Israeli shekel has been -- it was at ILS 5 to euro. Today, we are at ILS 3.6, so when you have this manufacturing cost, so that also impacted a bit of our profitability. As a consequence, in the middle of last year, we started a plan to recover this loss of profitability. We hired a consulting company called FSO, and we developed a very detailed plan in order to recover 4 to 5 points in our gross margin, which this plan should start this year already to generate improvement in gross margin and be completed during '27 and it's going to be part of the complete plan of the 2 company where from our point of view, we are already at the execution because we went to all our portfolio of manufacturing, our supplier redesign of expensive part. So now we are at a stage where we are starting execution of this plan, and this is not even in the very nice uplift that Jouni has presented to you.

Thank you, Marc. Hopefully, that answered Pia to your question.

Thank you. I'm just trying to do a quick calculation here. So it -- I mean, take -- reading from your answer, if you had an EBIT margin of 7% in '25, then adding 4% to 5% to that would then represent kind of the new level.

Yes. I think Pia, now the guidance policy jumps in. So we are going to give you the guidance of the combined company then later on regarding to the profitability. So what we are currently now saying that for sure, the EBITDA is going to be improved and then 28%, 29% hitting towards the '29 -- sorry, 20%, 25% EBITDA level, so a bit under where we currently are. But we are going to have a CMD, then now the guidance is basically off. So we are going to guide the top line growth and profitability now reasonably soon. Sorry, Pia...

Okay. Then with regards to OCT, that is something that you have been attracted to, and we have discussed that many times. How big a share of sales does OCT represent of Visionix today?

So do you have the exact number in mind, Marc? Yes.

Yes. EUR 30 million...

EUR 30 million.

30, 30?

Yes.

Okay. Thank you. Very good. Then -- I haven't had time yet to dig into all the details at Visionix website. But do you have any market shares to be disclosed? What is your position in the market in the product?

So we come back to that one as well when we have a CMD, sorry, Pia. So sorting out the combined company, all what we can talk about the market share. So alignment needed on there still.

Okay. A final question. I have more then to come. But regarding the market growth ambition rate, so you want to grow 3x faster than the market. So can you just quantify based on all the product categories, what does that mean for revenue? Are we still talking about 9% to 12% annual growth? Is that 3x faster than the market of the combined company?

Yes, I think that's ballpark, yes. So currently, it's between 3% to 4%. I think we have been the only one who has been able to grow together with the Visionix more or less if looking. So it's an interesting question that how the market has been growing last year, but that's ballpark right, Robin.

It's Daniel Lepisto from Danske Bank.

I'll continue with still on the Visionix sellers and maybe a question for the sellers and Chairman. Can you disclose or clarify a bit what was the status of Visionix before this transaction? So has this company been for sale? Or is there an exit process ongoing? Or can you clarify what's the status of Visionix before this?

I mean, can you hear me? No, definitely not for sale. We've been having discussions for the past 2 years with Jouni, Arne. And definitely, we pushed back, if I may say.

Slightly if I may.

Honestly speaking, yes, we thought for a long time about joining forces, but we pushed back because we thought that we still had many things to do at Visionix, as Marc just mentioned. So no, they've just been very convincing to make us accelerate joining forces. But for sure, it was not for sale.

I think what convinced us is one day, we sit together we said together, if you remember, in Paris, and we look at the combined portfolio and we identify all the benefit. And every minute, we say, wow.

On the synergies.

On the synergy. And then that's -- I came back to Charles and I say, Charles, you need let's talk now because there is a really amazing project here.

All right. That's a good clarification. Maybe the next question on the synergies. Then I guess you had some bridge in the presentation, clarifying between maybe top line and cost synergies. Can you give us any rough estimates? Is it 50-50 or some other split?

60-40...

60-40...

60-40 -- so 60 for cost and 40 for top line. All right. Then I guess the final question on this different segments that you are now getting. Are there -- what are the rough or the highest sort of growth percentages that you are seeing in these new segments, talking OCT, talking about the new segments that you're having now.

So based on the latest market study, of course, it might vary between the different studies. But for the OCT, roughly 4.5%, so between 4 and 5, closer to 5. Then I think on the multimodal side, the growth has been even higher. So that's a good additional growth segment for us in the long run.

Joni?

Joni Sandvall from Nordea. Maybe one question on the assembly or manufacturing of Visionix because as we know, Revenio doesn't have own. So are you planning now to in-source more of, let's say, Revenio production to Visionix assembly sites? And secondly, how balanced is the manufacturing footprint geographically?

Yes. So there's a couple of manufacturing plants currently, so 4 in total. So 2 in-house, 1 joint venture in China and then the OCT manufacturing is -- that's outside. And now we are starting to plan in the coming quarters that what we are going to do on the manufacturing assembly side. So there, the plan is still open. What's still clear is that, as Marc said, so on the manufacturing assembly side, so there's a lot of lean improvement activities now ongoing on the Visionix side. And we do that same all the time with our manufacturing partners, which are external. So the work is going to start in coming months and quarters. I think we have a really busy, really busy.

Yes. Maybe before we go here, I don't know if there's any questions on the lines that we could take this on live before we jump into the chat questions. [Operator Instructions] There are no more questions at this time. So I hand the conference back to the speakers.

We go to pad iPad.

Yes, let's go to the iPad. So sales related, I think this is a threefold question, but what will be the sales strategy of the combined entity? How are the sales synergies meant to materialize? And how will the sales channels be optimized?

That's a bit difficult question. Perhaps I cover a bit from the opportunity perspective. And the reason for this one is that currently, we don't have a fully blown data. So part of the sales data, what comes to the detailed revenue split, gross margin, et cetera. So they are -- because of the [ antitrust ] they are still in the clean room, and that is -- we are going to have access as a combined company for both company, detailed sales-related data after the closing.

But if trying to partly answer to the question what was asked, so U.S.A. going to be extremely big opportunity for us. Visionix team goes direct, we go direct. And then we are the top player in the U.S.A. when going forward with the fully blown holistic portfolio of the product. And we haven't been as a revenue before in all the big national accounts. So this is going to be fast to enter to these discussions. Then on the other geographies, I mean, extremely low-hanging fruit, Spain. Visionix already distributing our products in Spain, then really looking forward to start the discussions with the distributors to present the whole fully blown portfolio. I think that we can make great things together with our distribution partners as well in Europe and in APAC as well. But I think more to come on that one also during the CMD when we get all the nitty-gritty details on the performance in every region, in every country, all the margin data, et cetera.

Also, they have direct channels to many countries in Europe, which we currently use distribution channels for. So we leave 40%, 45% of the money on the table in every country currently. So it's not difficult to assume those will be some countries and areas we will be looking into quite quickly.

Thank you. The next question on synergies, which synergies are the fastest to realize and which are the slowest? So referring to this 70% until 2027?

The fastest is Spain because we closest done, we eliminate the certain transactions from there on?

I would say top line and perhaps the slowest, let's have a see what we think about the ERP and so forth. So on the sales side, for sure, there's lots of low-hanging fruits then perhaps the overall IT system integration, et cetera, what comes to the CRMs and ERP and so forth. So I think we have to get that one -- those details in good shape, but that might take a bit more longer time. But to sum up, so the goal is between 2026 and '27, if we are talking the value creation and synergy EBITDA uplift, EUR 20 million, so 70% we are going to get in by the end of '27.

Thank you. Next on brand. Will you keep the Visionix brand or move directly to iCare branding for consistency and not confusing end users and creating more alignment?

This is a more complicated topic. We haven't started too much the discussion on this one. So if we go really back and now I even bring the Revenio brand on this one, this discussion. So if we really go back to the Revenio as a group name. So we used to have 80 legal entities. I mean, Robin sold the RIB boats 11 years ago, we had the let science, et cetera. So that was the logic for Revenio Group. Then fine-tuning portfolio down only to tonometers from 1,000 people to the 30 people and only having a tonometers acquiring CentreVue, then Oculo, then Thirona Retina now join the forces with Visionix.

So that starts to be so big package that I think that we -- it's too early to say we have to look the whole branding even starting from Revenio Group as a brand because now a bit confuses. So we have a iCare brand, there's a Visionix brand, then for many for shareholders, we have a Revenio brand. So we are coming back to this one. And luckily, we have here, don't see Jussi Nevanlinna, who is looking most probably the branding also in the long run. So we have a good team to look at that one.

Thank you. Then a more finance related. So there's a clear difference in EBITDA and EBIT for Visionix. So what does the D&A consist of? Is it capitalized R&D or PPA amortizations?

I think, yes, sorry. But I mean this also a bit links to the -- where the Marc already partly answered so the post-COVID manufacturing issue, the currency. But do you want to comment on the PPA?

No, no, it was regarding Visionix stand-alone numbers, I think so.

Yes, yes. Okay. But I think Marc covered that one already.

No, that was a bit. Yes. So basically, from Visionix P&L, the depreciations are more on the PPA depreciation, not depreciating capitalized R&D.

Yes. All right. Then there's a question on this revenue mix. So can we further elaborate on the mix between different brands and product areas? And how much overlap there is in products?

Not at this stage. So we come back to that one. And really, the reason is that part of the things are still hanging on in a clean room.

Thank you. And a final question from now from the chat is that could you talk about the AI strategy of the combined company?

Yes, two-folded way. So first, from the revenue perspective, and I think that applies also for Visionix, Marc to correct if I'm wrong. So we see the huge opportunity of bringing the algorithms and AI inside the devices, whether it is it to improve the clinical decision-making or then the overall experience and the usability of the devices. Then the second thing on the AI front is, of course, what sits on a back end.

So we have a ILLUME solution for that one, which covers the DRS plus the ILLUME retina screening platform plus the AI. Then if you go for Visionix product offering, so then they have a data management platform, which is then utilizing the AI. So I think more or less same strategy, same logic. And how this is going to go forward is that we form the portfolio strategy, we form the product strategy in the coming months to be communicated together with the AI plans during the CMD October, November time frame.

Thank you. That was all of the questions for now. I don't know if there's more in the audience or do we.

Thank you, Mari.

It's Pia from DNB again. I'm still curious or I would really appreciate if you would help me understand the product portfolio profitability in Visionix. So just looking at the EBIT margin of that business and compare it to you. So I tried to get a grasp on the quality of the products understanding. So are there any loss-making parts in Visionix?

No.

And in terms of sales distribution, I think you showed a picture of it, but I can't recall. How much of sales came from OEM distributing like your products, for example, of Visionix. Did you show that?

So no. So we come back to all these when we get all clarified. So what we currently have, so we have the '25 numbers, and it's a bit same logic. So we really think now that how we are going to report -- sorry, the combined company numbers, like you know, so we don't give out from 109 last year, how much was tonometers, how much was fundus imaging, how much was the perimeter part. So we come back to this one, Pia.

All right. And then with this new combination of Revenio and Visionix, who would you name as your main competitors?

What would I say, maybe Japan, maybe -- I think [indiscernible], I would say, NIDEK. Of course, we have -- I mean, depending on the region, ultra-wide field, it's choice, right Optos. So more or less depending on the geography. But I think now we are on the fully blown product portfolio. So that's a competitive package.

And it seems we have one question on the line. So should we take that?

Yes, we take that.

The next question comes from Nikko Ruokangas from SEB.

This is Nikko Ruokangas from SEB. I have 2 questions, and I'd like to start to discuss a bit more still on the sales synergies. So could you discuss about -- is it more -- are the sales synergies more selling OCT or acquired other products into your existing sales channels or Revenio's existing sales channels or then alternatively selling Revenio's products to Visionix sales channels? And then I guess there are also some negative sales synergies as you have some overlapping products. So how big do you estimate those to be?

So I think, Nikko, thank you for calling in. So it's the combination of the many things and combination of the things that you mentioned. So we have certain customers already kind of under our handle under our access. And then, of course, in a long run, we are able to offer more comprehensive portfolio for that one. So that's kind of upselling, cross-selling part. Same applies for Visionix team. So again, taking certain products for mass packaging, combining and moving the products forward. And then the significant part, of course, is that there's still certain customers that are not asking from us or asking from the Visionix, but now we have a fully blown portfolio, big national accounts in the U.S.A. as an example. So now we are starting to be a major player with the fully blown turnkey product portfolio. So for sure, we are going to get the new tables as well.

Okay. Good. Sounds good. And then on the overlapping sales and will this have a negative impact compared to the pro forma?

No, there's only one product VX 110 and that's a really tiny, tiny one. So answer is no, Nikko. Seems to be that we are starting to become an end. Thank you very much for your time. Thank you for the participation to the webcast and all audience here at Sanomatalo. Have a great afternoon, sunny afternoon if you are in Helsinki and have a good afternoon, wherever you are. Thank you.

Thank you.

Good afternoon from snowy Finland, and welcome to Revenio Q4 and Full Year 2025 Earnings Call. My name is Jouni Tojlla. I'm the Group CEO for Revenio. And then with me, as always, we have Robin Pulkkinen here as a CFO.

Plan for today is to go through the business highlights for Q4 2025 and then a couple of highlights also from the whole 2025. And then we are going to go through a recap regarding to the 3-year strategy period, focusing on the strategy execution during '25. And then Robin is going to take over and go through the financials for the Q4 2025 and then the whole year 2025.

And then we'll finish up with the guidance for '26 and of course, the Q&A at the end. Q4 net sales grew to EUR 31.2 million. So reported growth, 2.2% currency adjusted growth, 8.6%. And if you think and go back for the Q4 from the region perspective, so Q4, U.S. sales grew strongly, and we received the all-time sales record in the U.S.A. during the December. Also strong growth in Europe, Middle East, Africa region. And if we look for the APAC, so a bit more similar trend during the Q4 for APAC as we had for Q3. So the sales was down year-on-year. But on the positive note, now the tide bit turned and APAC started to perform a bit more better during the Q4 compared to the Q3.

On the profit side, quite a lot of down. I think it's good to understand a couple of things regarding to the EBIT development and comparing to the last year. So we had a couple of bigger buckets here, which had an impact to the EBIT performance for the Q4. So the first one was related to the delayed price increases. That cost on the bottom line about EUR 0.5 million, 2% on the GM level.

Then we had roughly EUR 0.5 million nonrecurring costs and then a bit more increased costs on the FDA side. And then if you go back to the 2024 Q4, so we had roughly currency tailwind about EUR 860,000, which then passed through also to the bottom line. But Robin is going to cover this one in more detail. But I think this is -- these things are just good to keep in mind.

Cash flow, extremely strong. So a bit shy on the EUR 16 million compared to the EUR 10 million on the comparable quarter. For full year, more or less in the middle of the guidance. So currency adjusted net sales growth, 9.1%, totaling to the EUR 109.7 million.

Profitability in good level. And then perhaps a highlight from the 2025 links also to the cash flow. So strong cash flow, ending up to roughly EUR 30 million from the EUR 23 million. And perhaps this is the right time to say a big thanks for all our customers. So they have been trusting us during the 2025. And then, of course, for all our partners and especially for the team. So I think the year 2025 was a good year for us in this turbulent market environment.

Then a bit doing the recap to the strategy and main drivers, which have been driving our growth for quite many years, and we don't see that tide changing at all. So even though that we have had turbulence in geopolitical environment also on the economical side, so the mega trends have been and they are going to support our growth also in the long run.

So people are aging. There's more lifestyle-related diseases. So really the need for care is growing globally as we are going to have more and more patients every day. And then if we compare to the amount of the available resources, so the gap is going to be widening. And where we have been seeing this one, especially during 2025 is the pickup on our retina screening solution in general. So these trends have been driving our growth, and they are going to be there for sure for years to come. When we entered to the strategy period, -- we laid out 4 cornerstones.

So the first one related to devices, which is here improve the quality of clinical diagnostics with targeted product innovations. Then we had the solution side as a second, then sales and operations and then the people part. So during 2025, we have been able to get the new products out in the market. First example is the MAIA microperimeter. Then also on the solution side, the data management solution, FDA cleared in the U.S.A. was launched during 2025 and now in first client installations.

Then on the solutions side, we have been really successful on rolling out the screening solution. It has been driving already during the 2025, our hardware sales, especially on the new segments where we haven't been before.

And a good example is -- and I think this is the first numbers what we are giving out. So even in the short period, we have now even now live sites more than 350 up and running and in this stage, even more. And also the reporting or report volumes, so we have been doubling them during the 2025.

On the sales side, I think a good year for the sales. So all product categories grew. during 2025 in all regions, even in the APAC, if we take into account the strong Q1, which we had in APAC.

And then, of course, ending up to all-time sales record during the December in the U.S.A. From the operations side, we were really well prepared to take the stock levels up because of the tariffs, so full on the money on that one. And then we have been able to increase also quality -- product quality across all product categories.

On the people side, we have been putting a lot of effort regarding to the leadership team development -- sorry, leadership development in general. And then also, we laid out the new product operating model during the second half 2025. And I think these all have been contributing our ability to maintain profitable growth during 2025.

So if looking at the priorities for the remaining part of 2026. So top 3 items here is, of course, to focus on the sales and marketing side. So we are going to put even more focus on that one in order to guarantee the sales growth also during 2026.

Then we have been constantly investing to the R&D. So in our mind, we have a really compelling product portfolio also in the future on the tonometry side, also on fundus imaging and perimetry side and software solutions side. So the key is to focus on those areas and get the products -- new products out on time.

And of course, the topic what we have been discussing in quite many earnings calls, and there always have been quite many questions around the M&A. So that's going to be high on our agenda also in the coming quarters.

But I think, Robin, before giving speech to you, so we are starting a new strategy period early 2027. So we are planning to have a Capital Markets Day during the fall '26. So keep eye on the more detailed dates. So we'll come back to this one. Over to you, Robin.

Thank you, Jouni. So let me run through the numbers a bit. So like I mentioned, we already covered the sales, 8.6% in the last quarter growth, FX adjusted and 9.1% for the whole year. Basically, the sales didn't include any of those larger deals we're discussing at the end of Q3. None of those are gone or have been lost. So they're all still in the works and kind of looking quite promising going into this year for the company and from the sales point of view.

The margin has been a surprise for the market clearly. The price increases were not fully implemented in the U.S. during the last quarter. You can see it clearly visible here. So we kind of run out of the tariff-free inventory at the end of Q3. And the impact is here when you see that the price increases are not in, it really had an impact on the gross margin. Like we discussed earlier, though, we are increasing the prices to cover for the cost of the tariff.

But basically, for example, if you add EUR 1,000 million in cost of goods sold as tariff and you add EUR 1,000 million of revenue, it will have a lowering impact on the percentage, but the kind of euros should be covered by the increases. So if you have the tariffs running through, it will have a lowering impact on the gross margin, but it shouldn't be this low. So we're working on getting all those fixed now in early this year.

And then looking at the ASP reports, we're seeing now signals that -- or signs that the prices are going up in the U.S., and this will be hopefully fixed in the coming months.

Basically, I don't think the price increases will maybe get us closer to 70%, but that's probably more realistic level for the coming quarters as long as the tariffs are at the level where they are today. I'll get back to the profitability a bit more later.

Basically, our earnings per share is slightly down for the year from last year. Net gearing, minus 13.3%. So kind of in a very balance sheet in a very healthy situation. So I'll also have more slides on those to come.

So the sales. So basically, some people have been wondering why the FX impact was so big and Jouni also mentioned that slightly there earlier. But the comparison period, we still -- some of you or hopefully remember that end of Q --'24, we made some adjustments to the balance sheet where we reallocated or restructured some of the foreign currency balances into different parts of the balance sheet to kind of avoid having a direct impact on the -- or kind of revaluations hit to our top line.

Last Q4 '24 was the last quarter we still had those. And in that quarter, there was EUR 860,000 of kind of FX adjustment to the top line from the balance sheet items, which basically flows through the whole P&L. So the comparison number, if we take those out, we take it out from the top line for our reporting currency adjusted growth, but actually the same EUR 860 million also has a full role in the EBIT line.

So mentioned no larger deals. So it's really business as usual for the quarter. We were kind of -- we left the guidance gap quite wide still at the end of Q3 with the assumption of the possibility to close some of those, but they didn't materialize yet, but we're still working on them and quite positive how things are looking.

So the profitability. So basically, I explained the FX part. So looking at why the revenue profitability is down from the Q4 '24. The FX had the EUR 860,000, the impact. Then we had clinical trial costs, which are EUR 0.5 million higher, which is related to the FDA ILLUME clinic DRSplus, so the screening platform, FDA trials. Those are expected to continue into this year.

We're still now in the pre-study phase based on the findings, then we'll kind of have a better understanding how the actual clinical trial is going to be done and what scope. So the full value or the cost is not fully clear yet at this point, but we're talking about above EUR 1 million, definitely most likely around EUR 1.5 million cost for this year. And those are hitting the P&L. So they are something we don't capitalize.

So the price increase delays also had an impact on the profit. And then finally, we had the nonrecurring costs during the quarter, basically related to negotiations and also other one-off projects.

Kind of going into '26, there's been kind of we've always been kind of seen as a scalable company. If you leave out the FDA clinical trial costs, which are some in one way, one-off costs, our assumption or our expectation is that we are going to target to grow the top line faster than the other operating expenses, so kind of getting scale back to the bottom line.

The balance sheet remains strong. There hasn't been any major shift here for the last couple of years. We had over EUR 26 million in the bank at the end of the year versus a little bit more than EUR 20 million a year earlier. The interest-bearing debt was roughly EUR 11 million at the end of the year.

And same picture you can see here. So basically, the interest -- the net gearing coming down fast, driven by the strong cash generation. So the interest-bearing debt basically breaks down -- so basically, we have EUR 5.8 million left of the bank loan we withdraw for acquiring Centervue. So basically 6 quarters -- so the down payment is roughly EUR 1 million a quarter. So next 6 quarters will be bank debt-free at least. And then the remaining part is the right-to-use liabilities, which are about EUR 5 million at the end of the year.

Cash flow, very strong record high, almost EUR 16 million within Q4, basically driven by efficient working capital management and then lower payments in tax than we had earlier.

And then the dividend. So we've had a long trend of more than 10 years of paying a growing dividend. Now reading today's analyst reports in media, seems like mostly people are under read it or maybe it's AI doing some of the parts, but it seems like the reports are stating that the dividend is EUR 0.44 that is payable just as normal.

If you read carefully what the Board is proposing to the AGM, it is asking for authorization to decide separately on a dividend payment of up to EUR 0.44 during this year. So -- but the intention or how maybe the investors should read it is that there isn't a chance that we will pay the dividend as normally after the AGM. But I'd say there's just as good of a chance that the dividend is paid after summer. It's maybe smaller than EUR 0.44 or there could be no dividend this year. So that's just to kind of clarify. And hopefully, those are being -- I think those -- some of the articles have been fixed already during the day.

Shareholder side, not really any major changes. Demand ownership slightly increased, not much. The foreign ownership is up less than 1%. So the Finnish down and foreign up. And then looking at the top 10 list, it's mostly the same. Swedbank and [ La Financière ] have fallen out. And we have Case Kapital and Handelsbanken that have come as owners on the top 10 list during the quarter.

And the guidance, we expect the exchange rate adjusted net sales to grow 8% to 15% from the previous year and profitability, excluding nonrecurring items, is estimated to remain at a good level.

Thank you, Robin. I think it's time for the questions.

[Operator Instructions] The next question comes from Nikko Ruokangas from SEB.

This is Nikko Ruokangas from SEB. I have 3 questions, and I'll go one by one. And starting with your sales guidance. So could you discuss about different building blocks behind the sales guidance and maybe their importance, although not exactly quantifying them. I mean, for example, the big deals in your pipeline, microperimeter growth, price increases and kind of underlying market growth, how important are they?

So if you look at the drivers, so what we see for this year, so we see tonometry growing, we see fundus imaging growing, we see microperimetry growing. So -- so those are the drivers. And of course, if we think the U.S.A., so the plan is to offset the tariffs now, and we were slightly delayed on that part. So there, we have been discussing that for the U.S.A. in order to offset the tariffs for the U.S. part of the business, it's roughly 4% to 5% that we have to increase the prices. But I think that's more or less in a nutshell, anything to add on the driver side, Robin?

Yes. I think to get to the upper end, we hopefully are successful in some of the larger deals we're working on and kind of the base assumption, excluding those is somewhere hopefully in the middle. So those are kind of the swing factors.

All right. I understand. Then continuing on the price increases related to tariffs. So what is the reason for lagging in price increases compared to your tariff costs now as you already had kind of a pre shipped inventory for 6 months ahead of the price increasing due to tariffs?

I think we were just perhaps too optimistic to get everything through the chain, so meaning through the -- up to the proposals up to the customers. So I think it was as simple as that.

All right. But you are now seeing that is progressing.

Yes.

Did you say, yes?

Yes. Sorry. Yes, yes. Sorry, we said yes. Sorry, Nikko, Yes. So the answer is yes.

Yes. Good. Then final one from me. You mentioned that your fixed cost should scale now in 2026 is excluding the FDA costs. But if you also include the FDA costs and gross margin headwinds from tariffs, should we expect kind of improving adjusted EBIT margin this year still?

It depends a bit how where we hit on the guidance. So it's maybe challenging on the lower end. If we're in the upper end, it is a very scalable model. So basically, we can grow 12% or 3% more, say, 5% more than -- EUR 5 million more than that, and it's still kind of making the 70% margin on the additional sales. So I think it depends a bit where we hit on the guidance level.

But I think the FDA is a bit tricky because we don't even know ourselves how much it's exactly going to be, and it's kind of something that is -- it's kind of a onetime. But basically, the operating engine, so the clinical trial costs are not really generated by any of our people. It's kind of outside service that we pay for.

So basically, the kind of our internal OpEx, that should be kind of now quite well under control in regards to growth and how the top line is growing versus cost is growing.

The next question comes from Jack Reynolds-Clark from RBC Capital Markets.

Three for me also, please. The first was on screening. Could you talk through how much growth in Q4 and 2025 was driven by screening kind of both in the hardware sales that kind of the system generated, but then also the reports that come out and then what your expectations are for 2026? And then I've got 2 more questions as well that I'll ask that.

Jack, so -- on the screening side, so here, I have to slightly disappoint you on the detailed numbers. So we don't disclose the kind of subgroup numbers. But I would perhaps frame it so that if we think the Europe, Middle East, Africa region, and we think the imaging sales, especially the DRSplus sales. So during the 2025, we saw a strong growth on the hardware side of the business in EMEA region, driven by the screening cases.

So the amount of the report, so we have doubled that one. I think we have tripled the amount of the live sites. And quite many of those also take the hardware. So on that front, it's scaling up quite nicely. But sorry to disappoint you slightly, Jack, so we are not able to give the sub breakdowns per product group in terms of the revenue.

Anything to add Robin on this?

Basically, the model is that we do recognize actually the whole hardware when we make a new deal for the screening centers. So in a way, upfront, it's very hardware weighted the revenue. But once the customer base and installed base increases, we will start to see a bigger part of the revenue coming from the software and AI side as well. But now it's actually -- yes, you will have the hardware in day 1 and then the software like the following X years. So in a way, it's very front hardware weighted.

And here, just to remind everybody about the business model. So we sell the hardware, then we sell the ILLUME yearly recurring software license, which scales up based on the reports based on the DRSpluses, which we have been attached to the system.

And then the third component is the AI reports. And there, the logic is a bit like the prepaid SIM card. So when you run out of the minutes, so you have to top up to be able to speak and hear if you want to run the reports and you are out of the report, so you just have to buy the new set.

That's super helpful. That's actually more than I'm expecting. thanks for the color. The next question is on sales and marketing. So you talked about this being a strategic focus for you for 2026. Can you just tell us kind of exactly what you're doing here and kind of what the changes are and how that will feed through to revenue growth?

So I think it's good to go back to the 2025 end of first half 2025 when we were wondering that what kind of approach we should have, especially in the U.S.A. So should we wait and sit still to see how the tariffs or what kind of impact the tariffs are going to have for the U.S. business, but we took the other approach. So we were more aggressive on the sales side. So we hired really good salespeople. So more really good salespeople for the U.S.A.

We bump up the marketing expense regarding the digital marketing in the U.S.A. and in other parts of the world to create more leads. And I think that explains and outlines also this year strategic focus, so if only talking about the sales and marketing. So more rentless attention to the distribution cooperation and more endless focus on really closing the sales in the U.S.A. via direct rep network. And then as you saw, so we also recruited a top-notch Global Head for our sales and -- sorry, for our marketing department, Jussi Nevanlinna. So strong background on the marketing, product marketing and marketing in general across the globe. A couple of examples, Jack, on that front.

That's great. And then my last question, Robin, you talked through one of the swing factors for guidance -- for top line guidance for next year, obviously being the contracts. Could you give any color on any other swing factors that we should be thinking about? Any risk to the downside or any other kind of big things that might swing?

Well, our kind of internal plan is somewhere in the middle. then, of course, we leave some room for movement regarding to any changes in the U.S. economic environment or the tariffs or sudden change in the demand. Our visibility is quite limited. So our backlog, we've sold almost nothing for March even yet.

So that's normal.

That's normal. So in a way, the -- also we don't see it that far in the future. So the kind of baseline assumption is somewhere in the middle and then the larger deals are the kind of the swing factor there.

But we see, so Jack is the – Of course, we see the pipeline. And so the pipeline is strong. So that's a good thing. And then also the year has started so that we are well on the track for the first couple of weeks.

Like APAC, for example, has been a bit problematic now for 2 quarters. So hopefully, we can turn that around during this year.

The next question comes from Daniel Lepisto from Danske Bank.

It's Daniel Lepisto from Danske Bank. I have also a couple of questions. Maybe still starting -- continuing with the ILLUME and the 350 sites you have in operation. So can you give us any indication what kind of revenue potential there could be for one of these sites? Are we talking about thousands or, for example, hundreds of thousands? Any help here?

Sorry, Daniel. Sorry, not too much. So not too much, but it just shows the pace of getting the sites operational. And then, of course, if you think of Germany, so then we have the unique Connect feature, which then also combines the ophthalmologist to being part of the network. So that's also picking up nicely, and it's a unique feature compared to the others. So we are bit by bit starting to build the ecosystem around the retina screen.

There's a message that audio stopped. Do you see? I guess kind of saying that the audio cut off.

Do you guys hear us on the line?

Are you hearing us, Daniel?

Yes, I can hear you.

Okay. Well, maybe there was some…

Okay.

Okay, let's view…

We got a WhatsApp that the audio cut off.

Okay, okay, I think we are in there.

Okay. Maybe if I then ask, is there any estimation how many such sites are there for you to address, if I put it this way? So you have 350, what's the universe that you are targeting? Any insight on this?

Yes, but not willing to comment too much. So sorry for that one, Daniel.

Okay. Maybe on the -- then on the capital expenditure. So if we look at '24, '25, there has been a bit of a small uplift what comes to maybe historical level. It's like 4% to 5% of sales over the past few years. So is this the new normal level? Or could there be a bit of a moderation looking forward?

It depends a bit on the road map. So there's -- once products start to come out, that always kind of changes the CapEx run rate. But it's probably something similar you could expect for this year.

All right. That's clear. Then my final question still on the clinical trial costs. Can you give any sort of indication on the phasing of these costs? Like will this run from Q1 onwards? Or will this start from the summer? Or any sense on the phasing, how do you see costs?

Yes. Maybe I take that one. So the biggest variable is that how we are able to recruit the patients into the clinic. So the current assumption is that it's reasonably evenly split, but I mean it depends on the pace of recruiting the patients in. Okay, so that's logic.

And then the next phase then is still a bit open.

Yes. And here, one thing -- that's a good point, Robin. So if we think the structure of the clinical studies, so where we have had a challenge and why we are late is that we have to now run the so-called pre-study because of the good quality of DRSplus images. And then we see and compare that one to the reference implementation or reference setup. And then most probably, we have to fine-tune the algorithm so that it matches the worser quality imaging device, which is used as a reference. And then we have to then start running the kind of official clinical study. So that's -- those are the variables on this one.

Okay. And can you clarify what's the latest time line on you to secure the FDA approval in the end? So, what's the time line?

Yes. So the latest on that one is towards the end of first half 2027. So that time line hasn't changed.

The next question comes from Pia Rosqvist-Heinsalmi from DNB Carnegie.

It's Pia from DNB Carnegie. I start by looking back at Q4 and your FX-neutral growth of roughly 9%. Can you split up that anyway in how much came from volume, how much from price increases given your comments on delayed price increases in the U.S.?

That's more on volume based. We did have a record sale in the U.S. in December, so clearly better than ever before. So the volumes grew actually quite nicely in Q4. We didn't actually have much price increases during that quarter.

All right. Then if I continue regarding these larger than typical orders. Do I understand correctly that these relate to imaging devices for screening purposes?

Actually, no, generally, in imaging and tonometers might be part of the picture as well and specifically in the U.S.A.

All right. Clear. And with regards to your comment on really strong sales in the U.S., particularly in December, are there any new client groups kind of becoming more active? Or is this just a reflection of a broad demand?

I think the sales was good also on the broader terms, but we have been now getting also into the different tables around the different tables, if I may use that phrase, where we haven't been before, thanks to the investments to the sales team during the end of first half. I think that's the logic.

All right. And still on your gross margin, can you repeat, Robin, your comment on your indication of the gross margin for 2026? I missed that. Did you say...

We have a…

…to remain below 70%.

We have an internal magical 70% that we kind of try to reach with the gross margin. with the tariffs is, of course, a bit more challenging, but we definitely should be higher than what we now saw in Q4, so closer to the 70% mark.

So closer, but still below?

It could be above also. It depends a bit on the mix and everything.

All right. Okay. And then 2 final short questions. Regarding the cash flow, you referred to it as an exceptionally strong cash flow. Were there any exceptional items in that strong cash flow?

No, no, it wasn't really. There was basically a small tax return that hit the Q4 numbers, but basically, it's clearly less than EUR 1 million. So other than that, it's business as usual.

All right. That's good. And then finally, can you remind us regarding Centervue and you allocated some of that purchase price, I presume, to be kind of depreciated. When are those depreciations coming to an end?

If I remember right, the technology bucket was the biggest, and I think it's 10 years. So we have still some time to go. It could be 7 years or 8 years or 10 years. I don't remember right on top of my head what the depreciation period is. But I think we still have some -- I can check and come back to you separately, if you want.

The next question comes from Joni Sandvall from Nordea.

Maybe starting with the new product pipeline, noticing that the R&D costs were somewhat elevated in Q4. So could you give any more color on the new product pipeline for this year?

So perhaps a couple of viewpoints. And Robin, you please correct me if I'm wrong. So we have been doing a bit of an allocation, right? So certain like FDA costs are now visible on the R&D bucket.

And clinical trials.

Yes, clinical trials are also in the R&D bucket. So that might be the reason. I think otherwise, we have been running quite steadily, roughly 10% per year out of the revenue. Am I correct, Robin?

Yes.

So perhaps if you see elevated numbers, so the FDA costs are now coming as a part of the R&D cost bucket. I think that partly explains the lift up on the R&D cost side.

And then we do have use outsourced for R&D outsourced service providers. So those also go project-wise, not necessarily evenly month after month. So there's some swings in those as well.

Okay. And so we should expect something new also this year?

Unfortunately, I cannot comment that one too much, but that one I can comment that we -- in our mind, we have a good road map for the products on the tonometry, fundus imaging and perimetry side in the forthcoming years and then timing to be decided and communicated when they come out.

Okay. Then maybe a second question on the sales mix. Robin mentioned that depends a bit where you will end with the gross margin in '26, but were there any specific in the gross sales mix in Q4?

No, it was actually -- all the main product groups were doing quite well. So nothing kind of out of normal over there. Also kind of depends how the APAC currencies, for example, are or the APAC sales. So they are struggling with sell in euros. So a bit hands tied of regards at least what comes to price increases there. And then kind of U.S., of course, direct sales has a very good gross margin. So it depends on the geography as well slightly.

[Operator Instructions].

It's Erik Karlsson from CapeView Capital. Three questions, please. Maybe on the gross margin in a bit longer perspective, not so much 2026, but over the next 2 years, 3 years, when you look at your product road map and where the business is heading, do you think gross margins will go up or down in the next 2, 3 years?

Yes.

Yes, maybe we take them one by one, it's easier.

Maybe it's easier to remember. So no, I think the software is starting to play in the recurring revenue is starting to play a bigger part in the coming years, and that will have an increasing impact on the gross margin. So the AI reports, for example, are more or less almost 100% gross margin and the software in general. So definitely, we hope to see that actually increasing going forward. But the software part is still like the screening, like we discussed earlier, that's very hardware heavy in the front. So once the installed base and the user base grows, then that kind of starts to have a bigger impact on the gross margin. And then I don't know what happens with the tariffs, but that's a separate problem that if it increases, it will probably have a lowering percent impact and vice versa.

Got it. And on [ microspectry ], what's your ambition there roughly? How much sales can you generate? Or would you target to generate this year?

Microperimetry, was it?

Yes...

So historically, we've sold before the new latest MAIA and the latest developments in geographic atrophy drug development. We used to sell EUR 2 million to EUR 3 million a year. I think our kind of message has been that we expect it to be clearly more than that. And then there's maybe do want Jouni open the clinical potential on the MAIA side.

Yes. So of course, clearly, I think we would be disappointed if it's not way higher than the previous years when we had the product. So I think that's a silver clear. Then during 2026, so we are putting quite a lot of effort to trying to push MAIA out from the research also to the clinical use in order to be able to measure the efficacy of the geographic atrophy-related drugs. And if we are able to be successful on that one, so that's going to have a major impact also to the MAIA sales in years to come, but that's shortly the logic.

That's helpful. And one last one. I think on M&A, you talked about it and then you mentioned that you're proposing to postpone the dividend and even lower it. It's a bit unusual, I think. It seems to me to signal that you might do that in the event of M&A. What are you specifically looking at? What type of product categories or type of acquisitions would be most of interest to you?

Perhaps just to be silver clear on this one so that we keep the 2 buckets perhaps separately. So first commenting the dividend. So I think it was ex-Volvo CEO that said 1980s that the cash is king when there's a turbulent times. So now the logic why the Board is proposing the setup is that we have a bit more freedom in this bit more, let's say, non-forecastable times that we maintain a bit more freedom to allocate the capital into the best places. So I think that's just good to keep in mind.

Then the second topic is your comment related to the M&A, and that has been on the table for quite a long time. So we would have been able to close already the deals on the M&A side, but we haven't closed them. And the reason simply is that they wouldn't have been good for our existing shareholders. So growth potential profitability hasn't had a match to the overall valuation.

So we have been working now with Robin quite heavily during the last quarters, during the last years to fill the gap. So if you think the market where we operate, so it's ophthalmic diagnostic device market, roughly EUR 3.5 billion. Here also we cover only 1/3. So we have a EUR 1 billion market coverage, and it would be great if in the coming years, coming quarters, we would be able to expand our product portfolio. on the hardware side, and that would enable us to go directly also in the big countries and of course, bring scale to the top line, bring scale to the bottom line. So I think that has been the logic on the inorganic growth side as a driver. But Robin, anything you would like to add on this one?

No, no, that's exactly. So kind of -- we've been working on that quite a bit for a long time with Jouni and still it remains on the agenda as we go into the new year.

It's very much appreciated. Maybe a follow-up, but it's very much appreciated by shareholders that you so disciplined on price. It seems to me, at least the public market valuations have come down. Just look at the share price of Carl Zeiss Meditec or most names in Alcon, et cetera, in the space. Do you also feel that in your M&A discussions that they are more realistic price expectations now? Or it hasn't yet filtered down to slightly smaller companies?

I think it's now becoming more reasonable in the -- also in the non-listed companies. At least like a couple of years, it's been -- they were sticking to the corona high pricing.

And quite often, they were looking at our multiples and not growing as much and not making profit as much, but the multiples are more or less.

Expect to be the same. Expect to be the same. Yes.

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Thank you all. Thank you for your time. Thank you for the very good questions. And I think next time, we are back on April with the Q1 earnings call. So thank you very much, and have a nice spring when it comes, at least here in Finland. It's not in too short time seems to be. So thank you, and have a good end of the week and good spring. Bye.

Bye.

"

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" SEB, Research Division

" RBC Capital Markets, Research Division

" Danske Bank A/S, Research Division

" DNB Carnegie, Research Division

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" Nordea Markets, Research Division

” Good afternoon from Finland, and welcome to the Revenio Group Q3 Earnings Call.

My name is Jouni Toijala, and I'm the Group CEO. And as always, with me, we have here as well Robin Pulkkinen, our CFO. I'm going to go through the highlights for the quarter. Robin is going to recap the financial performance, shareholders, and financial guidance for 2025.

Q3 so an extremely good quarter for us. Top line, EUR 25.9 million, 8.1% growth. From the currency-adjusted terms, the growth was 8.7%.

Operating profit, EUR 6 million, up EUR 9.1 %. If you look where the growth came, so a really good quarter in Europe, especially France, Germany, and the U.K., they were growing nicely, and the growth was quite a lot dominated also by screening-related device and software sales.

Also in the U.S.A., good growth, especially in dollar terms, but slightly muted because of the exchange rate impact. So Robin is going to cover a bit more detail the foreign exchange rates in the U.S.A. and also in the APAC.

APAC fell short of the targets, and the logic mainly was related to the strengthening euro. So we sell in 2 currencies. So in the U.S.A., we sell in USD, and for the remaining part of the world, Europe, LATAM, and APAC, we sell on Euro terms.

Then, good news from the software solutions part. So we also launched the Altus, our data management platform running on cloud in the U.S.A. during the review period.

If looking at the whole first 3 quarters, we are currently in the middle of the guidance. So we are going to, of course, reiterate the guidance. So we are on the net sales perspective, EUR 78.5 million, reported growth, 7.5% currency adjusted, 9.1%.

Profitability on a good level. And if we look at the other events, as I said earlier, we have been able to grow really well the screening-related hardware and software sales, and then also MAIA Micro perimeter was launched and was in sales already starting from the quarter.

So I hand it over to Robin.

Thank you. So, going through the numbers a little bit more in detail. So like Jouni said, 8.1% growth in the third quarter and 7.5% for the whole year. Some might have thought the FX impact would have been higher in the third quarter.

Actually, if you remember, the second half of last year, the FX was quite of a roller coaster. So the third quarter in the comparison period had quite a bit of headwind. And then vice versa in the fourth quarter, the last year, we had almost EUR 900,000 of tailwind in the numbers.

So, looking at the fourth quarter, most likely the FX-adjusted growth, there will be a bigger difference compared to the reported number.

Gross margin is at a very good level. Of course, dollars are pushing that down, but then we do have some costs that used to be posted in the variable costs related to commissions that are now in the OpEx side.

But also, we've had quite nice deals, direct deals where we've gotten a better sales price and also saved in some of the outsourced reps' commissions in the U.S. and also in Europe. So the sales mix has had an impact there. Overall, profitability growth in the third quarter as well as the whole year.

So if we look at the adjusted operating profit, up 11%, 11.5% and for the whole year, 16.1% Basically, there's been roughly as many adjusted costs in the reporting period as well as the comparison period.

So $700,000, $800,000 in both. So in a way, it does not really -- if you look at the year-to-date number, it's the adjustments are pretty much as big in both lines. EPS is up this quarter if you're looking at the third quarter FX rate.

So the bigger items when you look at the financial expenses for us are basically the euro against the U.S. dollar and the U.S. against the Australian dollar. Those were pretty stable throughout the third quarter.

So there are, I think, basically very close to 0 financial expenses in the P&L. But in the first half, if you remember, there was like almost EUR 2.5 million of those. So those do pull down the EPS for the whole year or year-to-date. So in the third quarter, we didn't have those unrealized FXs.

Sales growth in more of a graphical view. Basically, looks pretty similar to what we've seen before. I think the fourth quarter is always the strongest quarter for us. That's been at least for the last 10 years or even longer.

There's no reason why we won't think that wouldn't be the case this year as well. And of course, we are looking to finish the fourth quarter well, also in terms of the guidance, to be able to keep the guidance that requires that we do well in the last quarter as well.

EBIT improved. So same thing as the sales, the last quarter of the year typically is the quarter where we make the most profits. Looking at '23, it's roughly 35% of the annual EBIT was done in Q4 last year, and 36% of the EBIT was done in the last quarter.

So, something similar, if we can. So the business model is quite scalable. It's really driven by the top line. So the OpEx is rather fixed or very fixed. So in a way, the higher top line drives profitability as well.

The same for the guidance. So with the higher top line to keep the guidance, most likely, unless something very surprising happens, it should mean a very good quarter, also from the profitability point of view.

Cash flow. So slightly higher than last year. There was some on the working capital, and the payable side went down. We haven't actually had many orders from the contract manufacturers in the third quarter. So that pulled it down slightly.

Also, the finish for the quarter was very strong. So, actually, September was clearly the strongest month for the quarter, and that resulted in the accounts receivable going up. So those 2 combined had an impact on the cash flow as a whole for the quarter.

The unrealized FX from the first half of the year actually doesn't have any impact on the operating cash flow.

The balance sheet remains strong and unleveraged. The net gearing is back to negative. So it always jumps up when we pay dividends, and then we build the cash balances again, and it goes down to negative.

So we're approaching again the recent history record highs in the equity ratio, almost 80% of the balance sheet at the end of Q3.

On the shareholder side, William Demant is still the biggest owner. The whole top 10 list is more or less the same. But William Demant actually did increase its ownership in the third quarter. So at the end of the second quarter, they were below 22%. So they've bought basically 2.5% more shares during the quarter.

The selling side is not really fully clear to us yet. So the shareholder registers don't show exactly where they bought them, but there are some of the bigger owners that don't have verified data for the last day of the quarter yet.

So, probably in the next month or so, we should know where those shares came from.

But basically, the Finnish ownership versus foreign ownership is exactly the same as at the end of Q2. And on the country level, the Denmark part, of course, went up while Demand bought more shares. But the other end of that trade is still a bit open in the systems.

The guidance is basically unchanged. So the exchange rate adjusted net sales are estimated to grow 6% to 15% from the previous year, and profitability, excluding nonrecurring items, is estimated to remain at a good level.

Thank you, Robin. I think it's time for questions.

[Operator Instructions]

The next question comes from Nikko Ruokangas from SEB.

This is Nikko from SEB. I have a couple of questions, and I'll take them one by one.

Starting with the MAIA microperimeter, which you mentioned that it has been very well received in the market in your report. So, how big was the contribution from that product in Q3? Are we talking about EUR 1 million or more?

We don't disclose the exact sales numbers. The MAIA is still selling only to the pharma. So it is there are not that many deals that we close, but they tend to be bigger in size. So there is a monthly variation quite a bit. But I don't know, Jouni, do you want to open more?

Nothing to add much on that front and except that we haven't started marketing the product much on the product.

So we are delivering the orders that we have got and the new deals, which we have in the pipeline. But we haven't done aggressive marketing and sales for the product yet.

But also from the production side, so no production limitations. So we are able to ship the product, which is, of course, good because it's a new product.

But there were some of those deliveries in Q3.

Yes, yes.

I was just wondering kind of the volume growth on the other portfolio than the microperimeters, so I was trying to figure out whether there is something that you mentioned the fundus imaging and the screening side was doing well, but was there something that wasn't doing as well? Or can you open those a bit more?

So if you look in general, so tonometer business was growing, the fundus imaging and perimetry business was growing, software business was growing.

Where we had the differences was that Europe was very strong, the U.S. was strong, especially in USD terms, then because of the lower local in APAC. So the growth in the APAC was not as high as we were expecting during Q3.

Now it looks better in October. But the growth in APAC regions for certain key countries was slightly muted, would you say, so Rob?

Yes, or even down during the quarter. So if the APAC had been able to reach even a flat year, I think we would have had a really, really strong quarter.

So I think it's really APAC driven, maybe there's a bit softer, or that's what was the soft part for us within the quarter.

But out of the kind of product groups, if you would exclude the price increases, did you see growth in all the product groups as well?

Yes. Yes, we did.

Then continuing on the price increases, which you mentioned that you have already agreed on in the U.S., I guess, in addition to the one you already made at the beginning of the year for the whole portfolio.

So were they already visible now in Q3? And is it still the plan that you are aiming for to cover the whole tariff impact with this price increase?

So we already did the slight increase for the probes during Q2. So in terms of the probe prices, the price increases have already been in already during Q3. And now we are bit by bit when we start to run out, as an example, imaging business or autonometry hardware. So then we are going to increase the prices.

Yes. I think we're very close to that now with many devices. So we are now starting to ship the tariff-impacted inventory, which will then, of course, increase the prices, but that does have an impact on the percentages, of course.

So we will not be able to increase the prices with a margin. So basically, it's more or less a pass-through, if that's the right word to use. So we increase the prices to cover the additional tariff by product.

If specifically, Nikko, you were after the answer to the question that, as an example, did we have higher prices for tonometers and fundus imaging devices during Q3 in the U.S.A. So no. So we were shipping the tariff-free stock. Already increased.

The next question comes from Jack Reynolds-Clark from RBC Capital Markets.

I had a couple, please. I'll take them one by one. Regarding iCare ILLUME, you mentioned it was a strong quarter in Q3.

Could you talk about the kind of where you saw the strength? Like, were there more accounts kind of using kind of signing up to iCare ILLUME? Or was it kind of greater usage in the existing accounts, or a mix of both?

So if you first recap the ILLUME solution, so it's a combination of the hardware DRS plus the ILLUME cloud solution, plus then the iCare RedCat AI.

And where we saw the growth, so we saw extremely strong growth in Europe, it comes to the installed sites or new customer sites. So there were a huge amount of new sites in general now in use during the Q3, also Q2, Q1.

So amount of sites is increasing. For us, that means that we have been able to then also sell quite a lot of new hardware related to the ILLUME sales, so an impact on the DRS+ sales. And then we have also been able to increase the actual AI report count. So that's also steadily growing.

So not as high speed as the new sites. But I mean, it's a really strong growth related to the new customers and new customer sites.

Then my next question was on MAIA. You mentioned that it's currently quite focused on your pharma clients.

I guess what is the plan for rolling it out more broadly to a broader range of clients to really increase the kind of sales force efforts there? Like, what do you need to see before you start ramping there?

So there's perhaps the first 2 things in a way. So we have been quite selective now to provide the devices to the customers who have been waiting for them for quite a long time.

So we have concentrated on that, and those are going to go for pharma. Then we have been doing all the sales by our own. So we haven't yet trained, as an example, all distributors to sell the new MAIA and distribute the new MAIA. So that's the plan for the next year.

Then the second topic is linking to the new drugs, geographic atrophy-related drugs, as an example, in the U.S.A. So now if you look to next year, especially, we are ramping that part as well when it comes to pushing the product, marketing it more aggressively, and then also thinking about the features and the user experience as well, and make that one simple in the coming year.

So those are the 2 areas where we are especially going to focus during 2026.

I guess one very quick one just to follow up, if that's okay. Are you planning to do a Capital Markets Day at any point soon?

I think that the time starts next year.

We talked about it.

Yes, yes. So I think, Jack, that's the plan for next year, not this year anymore. I think Christmas is coming really fast. So next year, I think it's a good point, and we have been discussing that one already.

The next question comes from Daniel Lepisto from Danske Bank.

I also have a couple of questions. Maybe starting up with these costs related to the ILLUME RedCat FDA process. So, can you remind us how much you are anticipating of these costs? And how are these costs going to be phased when looking forward?

I think we'll start to see something now in the fourth quarter. But I think next year, there is going to be a bigger impact on that.

We haven't fully disclosed what it is, but it looks to be a 7-number cost for next year, most likely. So we're still working on the full plan. So it is quite a big cost, and it's going to go through the P&L.

But I think once we get clearer plans and also a guide for next year, we'll get back to that in more detail on how the impacts next year. But this year, Q4, if I give a number, maybe EUR 250 million, around EUR 250 million.

And then I think earlier, what we have been discussing, Daniel, is that the combined FDA clearance amount, perhaps we land somewhere around the EUR 2 million. But that's now more in the planning.

Then, on the Red Cat approvals in the big picture, I think you noted that you gained some new approvals during the quarter. I mean, can you walk us through what key regions you are still missing for this solution, apart from the U.S., when it comes to the regulatory side?

Europe is really well covered. We also got the TGA for Australia. And then, of course, in the APAC, it depends on country by country.

So there might be interesting countries. But I think the main target is really to get the FDA clearance. So that would really move the needle.

Maybe the final question still on this MAIA microperimeter. Can you maybe discuss a bit about this addressable market and market opportunity for MAIA specifically?

I mean, if we look at the ophthalmic perimeter market, how big of a portion that is? And how do you see yourself playing in that market with MAIA?

I think there's. So if you look at the overall perimetry market, we have been discussing a USD 300 million roughly perimetry market. So that's a traditional perimeter.

Micro perimeter is bundled on that one. It doesn't include is that the microperimetry goes to clinical use and when the new drugs are coming. So the logic there is how to measure the efficacy of the drug. And that's not quantified. We haven't yet fully quantified that one either.

I think it's a topic for the next CMD for us to come up with the number. And then, of course, the drug development and the approvals of the drugs hopefully are also a bit further away in other parts than the U.S.A. Anything, Robin, to add?

I think in the past, the prior MAIA generations, we were thinking that the MAIA market was like 10 million or so, so EUR 10 million to EUR 20 million. But if it gets into clinical use, it's clearly significantly larger.

The next question comes from Pia Rosqvist-Heinsalmi from DNB Carnegie.

It's Pia from DNB Carnegie. A few questions. And if I start with your sales pipeline, do I remember correctly that you have referred to some kind of mid-sized orders for screening solutions in earlier quarters? What's the status currently?

That's a very good question. The short answer is that, according to my memory, not too much discussed specifically about midsized orders for screening.

Maybe I don't remember either right now.

Maybe it's me, I'm not recalling correctly. Well, anyway, let's then discuss your guidance and your outlook.

Given that Q4 is typically a very strong quarter and I'll try to get some hedge here. So are there any specific changes in your sales force in the U.S.? Or are you fully comfortable that with your sales force, you are again able to achieve this really strong Q4?

So if I comment on the first sales force. We have slightly renewed the sales force. So we have been getting extremely good and extremely professional new sales force members in the U.S.A.

And that team has been clearly put us also on the new tables with the bigger customers. So that's going quite well. And then, of course, the question is when the pipe turns to sales. And there, I don't have a crystal ball to say.

Yes, I think Pia will probably ask why you didn't change the guidance at this stage, also. So as a result of these changes, there are actually very interesting large deals, quite a few we have in the pipe, which are very difficult to forecast if or when those would close, and that could have a big impact on the Q4 numbers.

So we actually ended up being a bit reluctant to change the upper end or the lower end. So there are quite a big swing factors that we have in the pipe currently for the quarter and the next year.

Maybe these were the things, the larger or yes, larger.

Yes.

So, these orders are in the pipeline. And just to be clear, now for Q3, there were no kind of larger orders that turned into deliveries.

No, it was a very typical quarter. So nothing larger in there.

And then if I continue, you booked some nonrecurring items. I think you don't specify them, but do I read correctly that they possibly relate to some M&A projects which have not yet turned into news?

Yes. I will not comment on those specifically, but if we have M&A costs, we would allocate those as nonoperational costs because we are actively working on that side with Jouni and have really nothing to do with the day-to-day business. So any costs like that, we would categorize there.

With regards to M&A, how is your pipeline looking like currently? Is it drying up? Or do you have many active discussions ongoing?

Actually quite busy. There are a few discussions ongoing, very interesting opportunities, but I don't know if we can comment too much. Jouni, do you have any?

I think you covered it well.

Then, finally, two questions: can I still continue? So first of all, with regards to sales in the Asia Pacific, why did sales fall short of your expectations? So, if we disregard the FX effect, is the demand more muted for these specific products, or any other explanation?

So what we hear from the region, of course, it depends a bit quarter-by-quarter. So there might be certain fluctuations, of course, quarter-by-quarter, regarding the sales.

But the main reason has been that if we go for, I mean, the Australian dollar or the Japanese yen or so forth. So we have had stronger euro development against those currencies, and that has slightly impacted our mind, the sales.

Then again, as I said, it depends month-by-month, quarter-by-quarter. So then, if you look at October, so now, I mean, really good progress in APAC countries during October.

So it might be that it's for sure, a bit currency-related item, but also maybe regarding the quarterly fluctuations. But anything you would probably, Robin, like to add?

Yes, I think the currencies have an impact. We have a number of distributors, for example, who have been asking about pricing and asking about payment terms and things, and clearly referring to the FX. So there's no doubt that that has an impact.

And then finally, if I can come back to something, Jouni. I think you mentioned with regards to a new product on the data management platform, which has been launched in the U.S.

Any assessment on the market opportunity, the target market, and the size of that? And yes, any more color would be appreciated.

So if we first start with the target market. So, of course, we have a data management platform already existing. I mean, Choice Forum really high-end ophthalmology-related platform around the Choice ecosystem also covers the surgical workflows and so forth.

So not where we want to play. Then, of course, we have a Topcon Harmony. It's quite a big platform as well, and the big change and so forth are partly covering that part.

Where we are targeting is a bit smaller optometry stores at first. So there's a huge amount. So when we ran the study already long time ago, there was a huge and huge amount of clients that they don't have any data management solution.

So, how do they manage the data? How do they connect the devices to it? So that's the segment where we are going to start first by integrating our devices, then, case by case, the others.

And key also for our side is to enable the replacement sales at the beginning. So if you want to move from DRSplus to EIDON or so forth, or upgrade the fundus imaging device, so we can then handle the data import and export and all those things.

And then what does this bring for us in the long run? So we have been discussing the software assistant clinical decision-making by combining the different modalities, whether it is the fundus imaging, whether it is the IOP data, et cetera.

So now we have a platform which stores the data on top of which we are then, in the long run, able to develop also the AI functionalities with the Red Cat team from the Netherlands.

So if we look, the strategy is that the ILLUME is fully focused on retinal screening, outuses, then going to manage the data coming from the devices. And then on top of the output, we are able to as well build the software-assisted decision-making tooling and the applications in the long run.

So, this is the first step towards that story starting from the U.S.A., and the product is already FDA cleared. So, we are good to go, and we have had the product in testing for almost the whole full year, but now we launched it to a wider audience during Q3.

The next question comes from Sy Gode from Infosys.

I was wondering if you could maybe talk a little bit more about the business environment in the U.S.

You touched on it, but just how is the demand environment looking? Are you seeing any change there in terms of demand? You talked about uncertainty before.

Would you say it's stable or improving? Or how would you describe the environment? And I had a question on the probes side as well, you should have a pretty good understanding of the mechanics of the probes business.

What kind of growth can we expect for the probes business over the next couple of years? Are we talking mid-single digits, high single digits? Or how should we think about it?

Maybe I take the first question regarding the U.S. demand, and Robin takes the probe part. And thank you for the question or questions.

So, if we first take the U.S. demand status. So, we were slightly a bit more worried, of course, during the Q2 when all these tariff things came up. And then we more or less decided towards the end of Q2, Q3, that this is going to be the new normal.

We have to ramp up our game by getting more competence and more sales force in the U.S.A. in order to be more efficient and more on the client's skin. And so far, that has been working quite well.

So, we have been able to increase the amount of leads because of doing more investments on the marketing side. And if looking at the Q4, we are looking positively at the Q4 and also towards the next year as well.

Of course, there's a lot of fluctuation, change, and so forth. But I think it's a new normal. We just have to live with it and plan accordingly, and execute more efficiently.

Robin, do you want to comment on the probe side?

Yes, the probes have always been growing very well for us. Just trying to remember, when I started 10 years ago, it was over 20% annual growth on the probes and kind of slowly once the number of devices we have out is well over 100,000, closer to 140,000 and the size of devices outside is not growing, of course, anymore as fast, even though we sell a little bit more devices, the probe growth is still actually double digit and even high double digits.

So, it's slowly coming down, but it's not hitting single digits in the next couple of years, hopefully. But it's one of the very fast-growing areas and consistently year after year.

The next question comes from Joni Sandvall from Nordea.

Joni from Nordea. Jouni, you were mentioning lower contract manufacturing now during Q3.

Are you expecting this to ramp up now in Q4 because you are also speaking about increasing inventories in the U.S. So, should we expect relatively strong cash flows then in Q4?

Yes. I think the manufacturing is not really happening like systematically every second week, the same month. So, it's a bit varied how we make the orders in.

But I think typically, yes, I would expect them to grow. But also the cash flow for Q4, I would expect it to be, again, the strongest of the year. That would be, unless something surprising happens, I would think that's the case normally. I think it's always been the strongest quarter for us in the cash flow as well.

So, nothing special to expect from that part. Maybe the second question is still coming back on the tariffs and the price increases.

Actually, how large a price increase do you have to make to mitigate the tariff impact? And have you seen in the U.S. any resistance to these increases that you have announced?

The good news is that nobody manufactures anything in the U.S., basically. So that's helping us. Everybody is in the same boat.

So, the tariff is put on, of course, the transfer price, which we import to the U.S., and that's significantly lower than the selling price. So, I would guess on average, maybe around 5% price increases would more or less cover the tariff impact if the tariff is 15%. So that gives an idea that the import value is 1/3 of the sales value.

So, no real resistance from there? The last question is still on the marketing spend. You have been speaking about this for some time, maybe now. Can you give any early indication of how much delta you are expecting for going into '26?

On marketing. We're actually still working on the budget next week. There's some work to be done, so we don't really have an answer for that.

[Operator Instructions]

Seems that we don't have any more questions. So, I wish everybody a nice rest of the autumn period. We resume back in early February, right, Robin? And thank you a lot for the participation and extremely good questions. Thank you.

Thank you. Bye.