Promimic (Stockholm:PRO) Q1 2025 Earnings Call

0:00 Hello and welcome to our presentation of the first quarter of 2025. A quarter with high activity, great focus on strategic business and of course continued research on the development side, where we invest to reach both new customers and new market segments. What would you like to share with us?

0:21 First of all, I would like to share that we have two new license agreements. We have one within the market segment Spine, i.e. back implants, which is our largest business area. And the other is a strategic license and collaboration agreement with a company called Linkotech, which is one of the major subcontractors within the orthopaedic area. It is a framework agreement that we can use to develop different application areas and products together with Linkotech.

0:50 That's right, a lot of good news. Our customers have also increased the number of approved products to a total of 59 on the market, and these are existing customers.

1:03 Yes, and new products and new licensing agreements are future revenues. Together with one of our most important customers, Curitiba, we have extended the contract with them. They have an exclusive contract and we have also set up a production facility together with them in their factory in Hansville, Alabama. This means that they can produce and supply their own products, but we can also use the facility as a backup if something were to happen in our own facility in Warsaw, Indiana. We have also signed two cooperation agreements with packaging companies, which means that we can both to store and pack the products to our customers, and then they are ready to be sterilized and sent out to customers or to warehouses.

1:57 And is this something that our customers have been asking for a long

2:01 time? Yes, in this way we can offer a holistic solution. In February, we also presented data from a study that we have done, where we study how our surface behaves, or how bacteria behave on our surface. We see here that we reduce the number of bacteria, i.e. a bacteriostatic effect of HA Nanosurface. Up to 45% of the number of bacteria was reduced on the surface. We have also developed a low-temperature method to be able to apply soft polymers, i.e. sutures or other types of netting that are used in soft weaving surgery. We have opened up a completely new business area for us in sports medicine. We have actually a quite unique solution and we are quite far ahead in that area. We'll see when it comes to the market.

3:01 Yes, it's fun that it happens a lot. The sales in the quarter ended at SEK 8.8 million with a result before deductions of SEK 2.4 million. The cash flow has improved compared to the corresponding quarter of 2024 and ended at SEK 900 000. Our royalty and license revenues show a negative growth compared to the same period last year. Income from processing grew by 4%, i.e. the investment of the customer's implant. Customer development shows a fantastic growth of 37%.

3:37 That is good, because it is our future revenues and of course an indication that Royalty will be able to increase in the future. Thank you very much for watching!