AddLife AB (publ) (STO:ALIF.B)

CMD 2019

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Feb 18, 2019

Okay. Then we have to change to English. So this will be a session in Swedish, as we said. We are Swedish Auras, so we will try to speak English because we know that we have a lot of friends looking at the webcam right now. Wish you most welcome to our Capital Markets Day today. I think it's 1.5 years since we have the latest Capital Markets Day. A lot of things have happened in Ad Life since that time. So we are here to present and you can ask questions and we will sort of tell you how we look today and what's happening right now and in the future and in the market. So welcome all. This is the speakers, all of us. It's me. I am Kristina Virgen. I'm the CEO of Llife. I've been there since the listing in 2016. And here is the rest of the management team. It's Martin Algren, our CFO. And here comes a lot of people with what happened. And here comes a lot of people with the work company. And you will hear them much more later on because we will all try to tell you a little bit about our company. The agenda for today is I will start with some update about Ad Life. How do we look today as a company? Then marketing will do some financials, of course. Financials is many of you are focusing on financials. I know that. But we have to try to tell you what is the smaller financials in this company. And then one important thing is actually our vision and corporate philosophy. Many of you know that we have a very specific, I would say, a specific corporate philosophy in the group from our heritage, from Wernen and Berlin to EdTech and now EdLife. So a corporate philosophy course is something that all employees in the group attends. All new acquisition also attends these courses and they are normally for 2 days. But we will let you out after 30 minutes approximately today. So you will get a very brief summary of what do we talk about in these courses. And Peter will have that point. Then last year, we'll talk about the MedTech, and we will talk about the LabTech, and then we'll do a summary and Q and A. And if you want to shoot questions during this, please do that. And we'll try to answer or if we think we have to answer later, we would just say that it will come later on. So hope you enjoy this. And around 12, I think we will end the session. We ended with close to $2,500,000,000 in sales. Another figure for this year is that we have 2 business areas. I think most of you know that we have the lab tech business area. It's approximately 60% of our sales. And then we have the med tech business area. And they correspond to close to SEK1.5 billion and SEK1 billion in sales during last year. The group ending December has now close to 900 employees. And we are very equal. If you look at men and women in the group, close to fifty-fifty. And we have a little bit more than 40 subsidiaries right now. And many of you probably read that in the end of December, we acquired a company in Austria, which added a lot of subsidiaries to our group, but they have not yet part of any figures in 2018. If we start with some financials, though, you can see that from 2012 to 2018, this is the development we have had from a sales perspective. The 1st 4 years, we were part of Abtech. This was mainly Labtech business. In the summer of 2015, we acquired Mediclast, who started out as our part in the medtech division, and we continued 50 60 in the medtech segment, where we sort of took up to a new level in the group. In 2017, we did most acquisitions in the home care. That's why we have another figure in this slide. So since the listing in March 2016, we have been growing from 25 to 43 companies in the group. We have been growing from close to 430 employees to 873. Sales has increased from SEK 1,500,000,000 to close to SEK 2,500,000,000, which is average of 18% growth yearly. We have done 10 acquisitions, adding SEK 500,000,000, and we have organically grown approximately SEK 400,000,000. So the organic growth during these close to 3 years has been 7% yearly on average, and the acquisition has added 11% yearly. Our EBITDA, which is the line, was when we were listed SEK 135,000,000 and now we ended this year with SEK 240 $5,000,000 It's an increase with 24% yearly over the 3 last years. And organically, the growth has been more than 7%. So what we do when we acquire companies that we work a lot with the margins, improve the margins and make sure that the efficiency in the companies is increased as well. This is a picture we often show when we talk about our market. You know that we are in the healthcare and the life science market. And the life science market, you could say, is like an ecosystem where each part are dependent from each other to be able to grow. And we work in R and D, diagnostics, health care and home care. We are a niche player, so we don't have a total product portfolio, of course. We are targeting different niches in these areas in the market. The lab tech business area are on the diagnostics and R and D side, and the med tech business area are working more in healthcare and home care. The Nordic market is approximately SEK 50,000,000,000 in size. It has a growth of somewhere between 2% and 4% on average yearly, which is actually the same as in the European market. There are not actually any official statistics in the Nordic market, but this is what we, from our knowledge, have seen that is happening in the market. So we would say it's 2% to 4% growth, the same as we see in the European markets. So what do we do? Well, very often, we're talking about products, products, products, products. But I would say, we would be nothing if we didn't have other 3 legs. So for us, the more most important thing is actually the knowledge with our employees. They give advice to our customers. And what we see is that customers today, they are focusing their core business, and they don't have money enough, you could say, to have experts. So very often, our employees act as expert for the customers to help them to choose the right products. Technical service, extremely important, especially in the lab tech business area, is both to connect the instruments, but then it's a lot of aftermarket to make sure that the instruments do whatever we intend them to show, especially in the diagnostic field, but also for researchers. And then we do a lot of training. So these four parts is our offering in the market. And I would say that the competitive advantage that we have is the skills with our employees in the market. That's really how we can take market share in the market today. The trends in the market. Well, the first one, I think we all read and know. The population is growing. We are aging. We live longer in proportion, and the number of elderly people increases all the time. In the Nordics, the growth of people will be 15% until the year 20 40, which is much more than the average in Europe. One of the reasons is that we have a healthier lives here, but we have also taken on a lot of immigrants to these countries, especially Sweden. So the number of people more than 65 is growing. And if we talk about Finland, for example, in 2030, which is just 10 years ahead, half of the adult people will be more than 65. Yes, of course, they will be perhaps a bit healthier than my great grandfather, but still the need of more health care or the need of more treatments will increase over time, which is good for us from a market perspective. What we also see is that there are growing areas for diagnostics. Diagnostics have had fantastic technology changeover the latest 5 to 10 years, I would say. So now we can, through diagnostics, foresee a lot of things for each and every person. So there are personalized treatments. There are tests to make sure that what we read everyday, bacterial resistance. It's a big problem, I would say, to the world that there increased bacterial resistance. So what will happen in the coming 10 year if we don't take care of it? So therefore, diagnostics is important. We also see that advanced DNA analysis, For those of you who have read our report have seen that we write something we call next generation sequencing. It's a way of looking to each and every person's DNA and make sure that the treatments can be done exactly for you. Now these methods is coming also from research into the diagnostics test in the hospitals. And then we see in the diagnostics area, we see a change in the market. We see that larger laboratories are centralized. And at the same time, these new techniques means possibilities for decentralization, which means point of care test. You do tests very close to you and you get the answers very quick. So this is a driver in our system. Digitalization, I think, for us all, changes how we work every day, also for healthcare and also, I would say, for this meeting we have today, since we are now right on YouTube, I don't think we could have done that a few years ago, actually. The next point is public procurement. More or less everything we do is public procurement today. And what we see is that the procurements are consolidated, which means they are getting larger and larger and the timeline for these standards are getting longer, which means that either you're in or perhaps you can be out of the market. This will be very challenging for smaller players in the market, we think. So the largest players that already are in the market will be beneficial from these changes we see in the market. There's also a trend we see in the public procurement that they don't only talk about price. Of course, all of us don't want to pay more taxes because this is taxes who pays for the health care. But the price pressure, yes, it's strong, but we are talking much more about quality of service, how is the support and sustainability increasingly important. And Pieter and Lazarek will come back to that because that's really a trend we see in a lot of procurement that's up right now. And when we talk about the public procurement, I would say there is a good luck in effect. We, who has been in the market for many years, we are a well known actor in the market. So if we are established and if we deliver the instrumentation that we mainly do with the diagnostics, we will be able to continue year after year because it costs a lot of money for the public to change all instrumentation, to train our personnel in the laboratory, for example. So if you are an actor who already are in the market, you will feel a benefit from these trends that we see. The 5th trend is the entry barriers. And I very often talk about the Nordic market a bit specific. And I think the new markets that we're going into also are a bit specific. They are quite small geographies. We have a lot of different languages. We do procurement in different parts in Sweden, Norway, Finland and Denmark, for example. So there's a need to be really local to be good in the market. Another entry barrier is really the product security. Product support is fundamental if you want to work in medical devices. And there is coming a lot of new regulations, especially from the EU, to make sure that all the devices will, in the coming year, have more and more demands on them. This will be hard for smallware suppliers in the market. And that can also be difficult for innovative small companies to come into the market. So you have to have a bit of strength to be able to play in these markets going forward. The last bullet is something I also often talk about. How does this market look like? Well, it's a very fragmented market. If you look at Europe, you see a few large international players. You have Siemens, you have Roche, you have a bit from Dick and Son, you have J and J, companies like that. They are huge. But of the 27,000 companies who works in MedTech Europe, 95% are SMEs with less than 50 employees. So the market itself is really dominated by smaller players in the market. Many of them, of course, are interesting acquisition objects for us. So this market, there is some sort of collaboration between larger players, smaller players and distributors. We have to work together in different areas or we compete in different areas in the market. So it's a difficult market in that sense. You can't really see what's happening in one place goes all over because it's a lot of smaller changes everywhere. As I said, sustainability. This is our way of trying to explain how does the goods or whatever we do in the group go through us. We look for long term healthy development. And to be long term healthy, you have to have growth, you have to have profitability, but you have to act sustainability. If you don't act sustainable, you will not be able in the long term to have a healthy growth. So this really is dependent on each other. For us, the central world code of conduct and core values is probably the most important that we have, because that gives a sort of a framework for all our employees, how shall we work in this environment. For us, it's very important that we work with high ethical standards and that we do business in a very good manner because we are getting paid from tax money. I think that's very important to understand. Talking about our employees, I said they are our most valuable assets in the company. So we really had to treat them, of course. We have to be a good employer. If we are not a good employer, we will help them to market. So we have to behave, do the very best to make sure that our people stays in our group, continues to develop in the group. So that is really core for us. How do we work with employees? And then we do yearly service, etcetera, etcetera, to be able to show that we, over time, are a better employer. Our business is based on long term relationships with suppliers and with customers. And of course, we have to make sure that our suppliers behave. Those of you who read Swedish newspapers today could read about gloves. A company, I don't know, Malaysia, they are produced. When there have been audits in their cattle in Malaysia, somebody thought it doesn't work good enough. They don't treat the employees good enough. So this is a big issue. We have to make sure that our suppliers are sustainable long term. Otherwise, that will hit us in the market. And we have to be a good citizen and work for a better world. So this is very important to work with. And we do, of course, service, and we go out and meet our suppliers and make sure they behave and do the best they can. Very often, when you talk about sustainability, we talk about environmental, but this is not just about carbon. Of course, we are transporting products. So in that sense, yes, we are part of the environmental. But again, I think as the distributor, which is our main business, we don't really do so much push on the environmental side. So I think we should work on the supplier side, make they behave better. We should take care of our employees and they will make sure that we, together with our customers, look for a better world in the future. So coming from long term healthy development, this is our financial goals. We have a goal, which is not the top line goal, it's profit growth, 15% yearly. That's the goal we have. And actually, that's what we have done since we were listed, not every year, but over time, that's what we would like to achieve. Profitability, which Peter will talk much more about later, is important for us because we want to get cash flow in the business. And of course, all of you, our shareholders, would like to have some dividends. So one goal we have is to pay out dividend every year, 30% to 15% after tax. That's what we are aiming for. To reach these goals, we have 3 strategies. As I said, we work in niches. And to be profitable, we have to be market leading in the niches. So we try to get market leading positions in the niches that we have chosen to work in. The second one is that we want to have operating mobility, and that is really our business model. We like to work with smaller, agile company who can adopt to market changes, technology changes. That's why we have the business model, which we will come back to. And the third one is acquisitions. And that is actually to be able to grow, attract more technology to the group and make sure that we fulfill the goals we have. Talking about acquisitions, well, Pete Bellows Eric, who is on the slide, they are the ones who is really hunting out there. They do a lot of coffee drinking, as we call it. Meet a lot of companies all the time to make sure what companies do we think we should add to our group. So what do we look for? We look for profitable companies. We are not good in startups, I would say, even though there's a lot of startups with interesting technology. I think we want them to prove that their products are commercial. We are looking for new markets, geographical markets or new segments in the existing markets. We are looking for trading companies because trading is where we come from, but we also would like to add own products, initiatives where we think we are beneficial to have our own products. And the last bullet, I would say, is probably the most important. It's a strong management, because when we acquire a company, we want them to continue with us. We want their management to stay with us, but we have a continuity over time. Very often, a lot of companies, they are in sort of a generation ship, but we would like to know that he or her will stay another 3 to 5 years, so we can have a good succession over time and make sure that this company develops as we launch. So when we talk about acquisitions, the Nordic market where we have done acquisition until, I would say, December 2018 is a market where you have a population of 32,000,000 if you include the OpEx. But as you see, we already have subsidiaries in Italy where we have some production. We have Benelux, which has done where we sell some of products. We have that also in the U. K. And the ring on the right corner, that's China, where we have a sales office with own products. So this is where we are today or until December 2018. In December, I think it was November actually, but in December, we finalized the acquisition of ViaMedica. That was an acquisition that we have, I would say, looked into for many years. A company that we have known for long, Los Erik, have known them for many years. They have actually visited us in Sweden before to learn how we act in the market and see how can we collaborate in the market. And during the spring and the summer in 2018, we suddenly realized that, well, why don't you become part of us? That was the natural step to do an acquisition of BioMedica in France. And what we wanted to do is to get a gateway into the European market. And with B America, we got that gateway. They are working in 13 countries in Central and Eastern Europe. They have great business related similarities. And Peter and Lucerik will come back to that and tell you about how is it how that works within both the MedTech and the Labtech business. Exactly as us, 60% is Labtech, 40% is MedTech. Headquarter is in Vienna. And they of the 30 countries they work in, 6 of them are so large that they are 80% of the net sales. This is a privately held company. They have the family started it in 1978. And now they will remain and work with us. And as I said, strong management is essential. We will keep the same management, and they are very positive, and we are working together right now to see how can we develop over time. The net sales they had when they closed the books in March because they had March closing was €65,000,000 in sales. They have a little less margin than we have had in Ad Life. They have between 5% 7 percentage EBITA margin. So with this acquisition, this is the step we did. We came from a population of 32, added on 132 and other people because population drives health care. And most of these countries, both in Nordics and Europe, spend approximately 10% of the GDP on health care. Some of these countries are rather small. They don't have the size of the GDP as we have in the Nordic countries, but still, they spend some 10% of the GDP and health care. And they will want to become more and more technology advanced. So we see a lot of similarities in these markets. In the markets in the Central East and Europe, it's public procurement, just the way that we do in the Nordics. So that market, we know. So that's the reason for this expansion. What we see in this expansion is, I would say, a sales synergy. We don't actually look at the cost and see what can we do from a cost perspective. It's more how much product can we sell together because we have similar suppliers in some parts in Labtech. We can see that we can work better with those suppliers and get them into more markets. In the medtech part, we have more complementary product portfolio. So there, we can set products in another way. So with this acquisition, we hope that we can increase the total volume of the sales over time. Also in December, we announced another acquisition, which is actually that we buy a part of the company. That's a company named Wellspect Healthcare. It's owned by Dentsply Sirona. Dentsply Serona is one of the leading dental manufacturers in the world. And for many years ago, they acquired a company called Astra Tech, which I think a lot of Swedes recognize, renamed that to Wellspect Healthcare. And in that company, they serve surgery and respiration, which is something completely different from their dental focus. So they approached us with this portfolio of own products. So we acquired a portfolio of owned products, and we integrate the business they have in the existing business we have. They are today acting in 26 different geographies, but Ad Life, including Biomedica, have operations in 22 of these, I think, was there? Yes. So there are 4 countries where we don't operate today, and that is where we have to do distribution through them for a while until we have sort of built up our own representation there. This acquisition is intended to be completed end of Q1 this year. Most of the production products from Wellspect are produced with Nolato in Hungary. So they don't have that huge production facilities. And you probably know that we are not a manufacturer. We sell our own product, but we don't manufacture so much of it. We actually use subcontractor, which is the case here as well. With this acquisition, we also got actually subsidiary in Australia. And I got the question, how come that you go into Australia? Well, actually, we have had a lot of sales, not a lot of, but we have had sales in Australia from own products from the Mediplast company for many, many years. So we knew the Australian market a little bit. And that was sort of the longest step for us to go into the Australian market. And now we have our own subsidiary with some net sales of SEK 50,000,000 in Australia. So if we summarize the growth from November until now, geographically, we have covered more or less the whole of Europe, except for Portugal. But to be frank, in most of these countries, we just have 1 or 2 offices. But still, we are there, and we can start to operate in these markets. So it's a big step for us. And what we see, if we continue with the sales graph that I showed you before, if we just put Ad Life 2018 figures, adding Biomedica and Wellspect, we will end up with a net sales of some SEK 3,300,000,000 and we will end up with an EBITDA margin just north from SEK 300,000,000 So I would say for us, this is a game changer. We have done a big step from 2015 until now. I just have one more final slide, and that's something I think most of you know about. We are right now in the middle of a new share issue. The Board of Allied, together with us in the management team, decided that we wanted to do a right issue to be able to continue this growth because we see a lot of opportunities to grow further and add new acquisitions, both in the Nordic market, but also in the new markets where we today are working. And we will know on February 21 the results. So I'm waiting to see what happened in the new share issue. But that is really where we're standing today. So I will hand over to Martin now. Thank you. Figures and facts for 2018. And we continue and start with acquisition intensive quarter. That was the headline of our Q4 quarter. We had sales of SEK685 1,000,000 in the Q4 2018, which was a 3% increase compared to the same period previous year. All of the increase comes from acquired companies. If we go to sales in 2018, we had, as Kristina said, a little bit less than SEK 2,500,000,000 in sales, an increase of 6%. All of it comes from acquired companies also. What we see in the Q4 is that we have had a little bit weaker instrumental sales to researchers and also the weaker sales to customers in Denmark in the pharmaceutical companies. In the Danish market, there have been some cost savings and staff cutbacks as we already wrote about in the Q3. And now in the Q4, we see effect of that. We also see that in the Home Care, the sales in 2018 has been strong during the year. But in December, they closed in mid December. So the last 2 weeks of December, we didn't have so much sales to the end of the week, who is the main customer in Huawei in home care. If we look at the EBITDA, dollars 74,000,000 in the 4th quarter compared to $79,000,000 the year before, which is a decrease of 6%. In the 4th quarter, we have had $6,000,000 in acquisition costs for the BioMedics acquisition that we did. So if we compare if we adjust for this acquisition cost, we will have we will be on par to previous year. The same gross margin same EBITDA margin, 11.7% if we adjust for the acquisition cost. In 2018, we had an EBITDA of SEK 245,000,000 compared to SEK 234,000,000 dollars and EBITDA doubling of 9.5 percent, which is almost in line with the previous year. If we look at the business update, overall, we have a good demand in all the Nordic markets that we see. Let me start with the Swedish market. We had a stable growth in Sweden, and we still see that the government continue to invest to make Sweden a leading research nation within life science. We also see the trend that Kristina talked about before, increased demand on sustainability questions in our public tenders. But on the total, the Swedish market is stable and growing. If we continue to Norway, the government in Norway are continuing to invest both in research and also in newer hospitals. They are building newer hospitals in this country. We also see that there is a trend in the home care going to more welfare technology. So that's a new trend that we see. New technology in elderly homes and institutions are increasing in home care. Finland, we have talked about the health care reform in Finland previous that has been going on. What we have seen in the last two quarters in 2018 is that it has been more stable market for us. We still see that there are some projects in some segments that are affected by this health care reform, but the business is more stable there. In the diagnostics field, we also have good positive signs there. And also that the Finnish government has announced that they will increase their grants to their researchers in 2019. So there are some positive signs in the Finnish market. Going to Denmark. The Q4, as I just mentioned, was a little bit weaker in some segments. But on the long term, we see that they are continuing to invest in new hospitals. We also see that we continue to invest in research grants from mainly privately funded research funds, for example, in the Gennectic research, which is a niche area that we are presently working in. If we look at the rest of the world then, we have started to have business in the Baltics, and we have mainly started to focus on the Estonian market. And we have a positive 1st year in Estonian. In 2018, we also changed our sales organization in U. S. We closed down our sales company there, and now we are using a distributor instead. And we see that this has had a good and positive effect on the results for 2018. And China are still continuing their research, so we're continuing to have a good sales in China as well. If we go to LUBTECH and start with sales there. The sales in Q4 almost on par with previous year. We had a decrease of 1%, mainly due to the sales in Denmark that I talked about before. EBITDA margin is on par with previous year. As you can see, we have both in the quarter and year to date increased our EBITDA margin. So in the LaveTech, we have been working with profit expansion and increase our profits, which we see as a result. We also have had a good year in Diagnostics. We continue to have a good growth in our traditional markets. Glob gas, for example, we are capturing market shares there. And we also see that we are have a good growth in newer markets like food and veterinary that we have just entered into. Our Finnish diagnostics company has had a really good 2018 with new instrumental sales, a lot of the JADJANS sales to their already installed instruments and also good sales of service to already installed instruments, which is positive. If I continue with the MedTech, we have had a good sales increase both in the Q4 year to date, 8% up in sales in the quarter and 10% up in sales for the year 2018. This increase comes from acquisition companies. If we look at the EBITDA margin and EBITDA, we see that we are on par with previous years. And we see also that the market has been stable in Sweden and Norway. In Denmark and Finland, we had a tough start. 1st quarter, we have not really been able to compensate for the tough start that we had in the Q1. And we see also a trend in the market, especially in home care. We have more focus, as I said, on the well technology, but also in the bathroom segments. Continuing to the balance sheet. Oh, sorry, the profitability, profit through working capital is next slide, sorry. We ended 2018 at 62%, which is in line with the previous years that we have had. We are stable around this level and our it's well above our target of 45. Continue with the balance sheet then, which is my last picture. As you can see, the balance sheet has grown almost SEK700 1,000,000 compared to December 2017. And this is, of course, due to the acquisition of BioMedica that was integrated in the balance sheet end of December. So that's the reason behind that. But still, we have a healthy balance sheet with a net debt to equity of 0.9, percent, equity rates of 35% and financial net liabilities to EBITDA of 3.3 billion. And as Kristina said, we are looking to further strengthen our balance sheet with the preferential rights issue that is going on at the moment. So we add another 500,000,000. So we can continue our journey and growth strategy going forward. Okay. Thank you. That was everything for me. So Kristina mentioned that our Vision and Coop philosophy is really something we're really proud about within the group. And it's been a long legacy coming, starting up in Bergman and Feilding and then AdTech and then into AdLife. I think this is really the core work for the Adlife companies. It's really something that bring us the soul and of course the idea to the companies, how we're working together, gluing us together as an organization due to the fact that we are working decentralized, it can be somewhat tricky from that point of view. Usually, this kind of training is a 2 day training session for all the employees in the company. And that's really important. They're training for all the employees to have the understanding about what kind of requirements do we have within AMPlife, but also what about our core values. If we acquire a company, you should run it for the company between 3 to 5, 6 months after the acquisition with all the personnel. Then we should, of course, start with the vision. And I have to say that I think we have a fantastic vision. I mean, strive to improve people's lives by being a leading and value added player within life science. Isn't that a fantastic purpose? I mean, you have it when you go to work. Today, I'm going to really strive to improve somebody's life. I mean, we're not making anything bad to society. It's really to do something good for society. So I think this is a very, very strong part in our organization. The other thing I think is value adding. I mean, ad tech, where we're coming from, ad life, is really that we have to add value to our offering, because I think that's the key thing for us that we have to add value, but not only moving boxes, these kind of things. We have to add value through the fact that we have skilled personnel in the company. That really can help the customer to gain the best out of that kind of solution we are giving to the customer. From the underlying point of view, if you look at the basic requirements, what we have on all the companies within underlying is actually 3 different requirements. Christine already mentioned 2 of them, and it's actually growth. That will be 15%. I will come back to that. Its profitability could be more than 45%. And last but not least is also development because we need to develop the companies, otherwise we won't see growth over time. That's also very, very important part we have to look at. So when we talk about growth in Ad Life, what do we mean? Then we talk about profit growth. That's the first thing what we talk about, it's profit growth. Of course, over time, to have profit growth, we also need to grow sales or revenue, but it's really the focus of profit growth. And the group target is 50% annually over a business cycle. That was a good performance. 15% is quite a challenging growth target. And what we say is that half of that should come from organic growth and the other half should come from acquisitions. So that's how we reach the 15%. What does it mean to have 15% profit growth annually? That's quite fantastic with mathematics actually, because if we have that in 5 years, every year 15% growth, we actually are going to double the profit in 5 years. So it's quite, quite a fantastic tool to develop the profitability of the company. And also when we talk about profitability, if we can have the profitability more than this 45%, we can actually also help that us to invest to really reach that kind of growth, add the kind of cash flow to reach the growth to achieve this doubling in 5 years. And how have we done throughout the past? If we look at AdTech from 2,002 to 2015, it was in average 80% profit growth. And if we look for Ad Life since our start 2016, we have had 24% in average. So we're a bit actually ahead of the 50%. So that's always nice to be on that side. Very important in this kind of training, so of course, to get the understanding for the employees really how we can achieve this kind of targets, how can we achieve this kind of growth. And talking then about profitability is really to optimize fixed parameters. So it's not really that rocket science, but it's really something that everybody can understand. So how can we influence the profit? So how do we get the profit? Yes, I think that it probably starts first with some sales. So of course, we have to think about how can we increase the sales, how can we sell more. That's, of course, a very important step to get the profit. Then, of course, we need to have a gross margin. And of course, with the gross margin, of course, we would like to have as high margins as possible. On the other hand, it's also very competitive well. So it's not that easy to just put the gross margin we would like to have. So we have to work with that, of course. It also have to be competitive. And it can, of course, lower the purchase price, getting that kind of increased gross margin. And of course, we have the expenses. That's something that we have control about in the company. So we can always be more cost cautious, more cost efficient. So I think to get the profit is, of course, to have the sales times the gross margins minus the expenses. Then we got the EBITDA with the profit. How can we then influence the working cap? Of course, we have the inventory. So we can, of course, work to see that we have a very efficient handling of inventory. We have a high inventory turnover rate. And of course, if we can reduce the inventory, it also has a very positive effect to work with that part. We have, of course, customers paying us the accounts receivables. And of course, if they pay in time, it's fantastic. And then it's money in our hands. So of course, to work with accounts receivables to get the payments in time. And then, of course, we have the accounts payable. I hope we don't have any suppliers here, but we try to pay them as far away as possible. Now we will stick to the agreements, course. But of course, we can work with that too to really optimize the working cap when it comes to paying the suppliers. And I think one of the big takeaways from these training sessions that we have with the OBM for these is really that everybody in the company, it doesn't matter what kind of position you have, what kind of work role you have in your company, you can influence at least 1 of the 6 parameters in order to optimize the profit in the company. And I think this is really something that makes everybody aware about that actually I can influence the profit, the profitability of the company in my work. Because usually, Manny talks about the sales people, the service technicians, they are the stars in the company. No, everybody working with logistics, you can still make improvement on what you can do on that side. I think this is really the key takeaway when it comes to this training for the people. And it's so fun to see how enthusiastic they are when they are leaving this one training session. They get so many good new ideas how they can improve in their work what can really help the customer in the future or the comfort of the future. Then of course, this was Charles Darwin. It's not the strongest that survive, but the ones most responsive to changes. And I mean, we're really living in an environment now, it's a lot of changes. It's a lot of changes in our business. And of course, that means that we have, of course, to think new, we have to learn new and actually to try something new. So that's also why development is so important for the companies for the future, that we are developing the company really for the future. And when we talk about development within Ad Life, it's really linked to how can we optimize once again these 6 parameters we talked about. How can we optimize this through our developments, what we have in the different kind of companies? And of course, there can be several types of developments. But for instance, think about organic growth, how can we increase added value, for instance? Can we do more with services? Can we do more in that kind of direction? Should we have own kind of products to gain more organic growth? Of course, new suppliers as being a distributor, we're always looking for new suppliers. It's happening so many things in the marketplace. So we like to really be in the front end to have the most interesting suppliers also for the future. Of course, acquisitions is a very important part what we have, but it can also be that we're acquiring part of an agency into a company like we have. So it's not going to always mean that we have to acquire a complete company. But last, but not least, I mean, the people in the company, that's really our assets. They make the difference every day meeting the customers. So, of course, the most important development is really to how can we develop our personnel in the company to have the right skills really to do their job in the best way and support the customer the best way. And that goes really as a key thing. As we mentioned before, it's, of course, really very important for us to have a strong cash flow, and we get that really to have control about our profitability. As Martin mentioned, we are at 62% last year profitability, so we're actually far ahead of the 45%. That's good. That was talking about the requirement what we have on the companies. The other part during this kind of training is really talking about the values, the culture that we have in Ad Life and the culture of the other companies. And we have 4 different core values in Ad Life. The first one is simplicity. The second one is responsibility. The third one is commitment and the 4th is innovative. And just to give you a little bit of a highlight, what we mean by these kind of core values. Simplicity is really a bit what it is. It's really trying to do work that way to do everything what we can in the most simplest way, the most efficient way. It should be easy to do business with us, for our customers, also calls to deal with us with our suppliers. We're working decentralized organization. That's our kind of a model. And of course, we have to every time, I would say, when it's come to simplicity and also efficiency, question, What we're doing right now, what I'm doing right now, is that giving value for the company? Is it not giving value for the company? Hey, then we shouldn't do it. I mean, there are so many times there are lots of tasks done in companies done by tradition because we always place that paper in that folder. It was on that drawer. And we've done it for 5, 10 years, but nobody looked in that folder. But somebody told somebody that that's the way you should do it. I mean, we should always be critical and say, okay, if it doesn't make value for the company, why do it? Let's spend time on something that really gives value for the company. And of course, we have some kind of different kind of tools we can use when we're analyzing the companies we're working with. The next one is responsibility. And I think what we would like to highlight is really not just to get responsibility because getting responsibility, it's a bit of a passive way of doing it. I like when people say, I would like to take responsibility. Because sometimes when you ask, okay, who will take the notes for this meeting? Usually, don't ask me this time again. But if somebody raised their hand and say, okay, I would like to take this responsibility. I would like to take this proposal for this kind of project. What do you think about that outcome? I mean, you have the strong heart behind. It's going to be fantastic. So we really encourage our employees not only get responsibility, take responsibility. And of course, it goes all the way when it comes to develop the organization, develop the company, but also to develop yourself. That's also your responsibility to see to what you develop yourself. Especially when it comes to leaders, it's really also important. And I think sustainability, we are in a market really where sustainability is very, very, very important, of course, overall for society. So we have to see too that we are working in a sustainable way. What is really important when it comes to responsibility, it also if you take responsibility, you get a lot of freedom in our companies, in our organizations. And I think if you would ask employees, what is the most thing you like working in an ad light company? I think it's really having that kind of freedom and responsibility because you have to have both. Otherwise it won't work. And it's built on trust, trust between the people in the company with the managers. The third one is commitment. And of course, I think motivation, commitment is going to work and realize it is today, I'm going to do something fantastic in order to make people really strive to make their healthier in their life. I think the dedication is really a very important thing when it comes out of our employees. They're really dedicated. They're highly motivated. I think it's really a matter of the whole development of the organization. And I think once again, when it comes to managers, I think we have to be good role models. We have to walk the talk. We have to really see to that we follow our core values. We are working as good examples because otherwise, nobody will see this is not important. So why should I even do anything about it? It's a changing environment. And of course, we have to be innovative. Change can seem to different ways. We can see, of course, opportunities in changes. We can be proactive or we can be reactive. And I think we would like to see changes in a proactive way. Actually, that can give us business opportunities if we are proactive. And every day also, we need to also challenge ourselves. I think we always have to challenge. We have to take the next step, the next boundary to really see that as part of our DNA in the company and also sharing the way that we do the business and we do the business as good as possible, what we can do. So once again, I think responsibility and freedom is really a key, key, key, key factor for people working in our organization. On the other hand, it also means that some people probably wouldn't work well in our organization, wouldn't fit into our organization, because some people would like to have somebody telling them what to do because that's the way when they are more successful and being self driven this kind of time. But I think that's people that doesn't really feel comfortable in our organization. We're pretty clear on that also when we're recruiting people. We like people to have a strong own driving force. So how do we keep this kind of thing together with this kind of vision and corporate philosophy? I think that one of the key success factors is that we immediately when we started them, like we said, we have to have control about how can we develop our employees in the company. So we started up actually what we call the Adlife Academy. And the Ad Life Academy is taking care of the trainings that we have within the Ad Life organization. So the first basic training, what we talked about was the solution and corporate philosophy that all the employees have to go through in the company. For salespeople, we have different level of sales training. It's in what we call effective sales and business acumen. And we make the trainings when it comes to the sales trainings, we make them in Danish, we make them in Finnish, we make them in Swedish, and we make them in English. So we're trying to keep the language as local as possible because then it also has easier to adapt to learn from these kind of trainings. Leadership trainings, we have leadership trainings for the, managing directors, for the sales managers, but also for all leaders in Allied Companies. If you have the leadership role, if you have the personnel responsibility, then you should go through these leadership trainings. So everybody has the same kind of information. What about leadership and trainings? Other areas is within marketing. We really have developed our marketing, I have to say, during these 3 years. And we try to use, of course, best practice because we still have I mean, we have more than 40 companies now. And of course, some are really in the high end of outbound marketing, inbound marketing. So that's really been very successful, these kind of trainings. The same goes with the finance people. They also do training for the service technicians. And it's not been training with the technicians how they can actually repair the instrument. No, it's more about how can we deal with the customers? How can we help the customer even more? So it's more about that kind of relation with the customer. And also, we are working within supply chain also to have trainings how we can organize that. So this figure, 8.20, I'm really proud about that. Any idea what that can be? It's actually the number of people going through the trainings since March 2016. So it's almost 3 years now. So we have a very, very high pace when it comes to trainings. And I think that's really, really important to keep it in a good way. So I think this ends up with our model. I mean, this is the model we are working on because we are a deep centralized organization. We like entrepreneurial drive within those companies. And when we acquire companies, as Christina said, we are acquiring well performing companies. So there is, of course, that we can help that kind of company to actually also develop in the future. But we like the kind of flexibility in the small company, the personality of what we have and also the effectiveness in that company. So as Allied, we then can support them with resources, with networking and of course, sustainability. So we really like this small scale business, large scale wise. That's really a model that is working great for us. So thank you very much. Okay. I will try to tell you a little bit about our MedTech business. And as Martin already said that we are we were crossing, so to say, SEK 1,000,000,000 last year, but we are still a little bit behind the downtick, but we are fighting strongly to get up in a more equal position. You can say that we are working in different areas and different segments. And the areas we are working in mainly is hospital area and then coming more and more special surgery and also home care. And if you go for the segments, then of course, in the hospital, you have general surgery, you have ENT here, North and Throat, you have ICU products and also Ostomy and wound care. If we go for special surgery products, then we are in the thoracic surgery, never surgery, interventional surgery. And in the home care, we are mostly in the home adaption statement and in the aids and equipment supply, also more and more welfare technology and also in a niche like hygiene products. If you go for the hospital segment, there are mainly disposable, but we are also selling medical devices and equipment to the hospitals. The customers are primary public health care sector and close to 95% of our business are in public procurement. And the average length of every contract is around 2 to 4 years, mainly 4 years, but you got them 2 plus 1 plus 1. And in the hospital segment, we have around 20% of the turnover in our own products. You can say that we are really in the front line when we are discussing PBC, key product or sustainability is what we're saying. We have been there for more than 10 years. We are really, as I said, 1 on the front line. We have totally PVC free product controllers in the infusion and respiration. And I think the rest of Europe are not there, but we are already ready for the European market. If we go for the specialized surgery, there are many countries are going towards specialisela 3Q4, what we call it in Swedish, specialized surgery. And Sweden is one of them. And you can say the greatest example is here in Stockholm, Kavilynska Precusit, which is really specialized hospital. And what we call the specialized surgery group is, of course, the NAV group for us and interventional and also the orthopedic surgery. We are not selling too much of our own products in this field. We are distributing both equipment and disposables for mainly worldwide producers. And we are, of course, attracting both new innovative new suppliers, both from the U. S. And from the Far East. And we are also, I think, which is bigger and bigger account for us, working with worldwide companies, part of their portfolio, which they are not focusing by themselves. And there is one difference if you take also from the hospital side to the specialized service side. This is also the sales force and the product management. If you go for the hospital, you have more broader and not so deep. But if you go into the specialized surgery, you are very narrow and very deep knowledge because here you are mainly also the support through the doctors doing operations. So we are really standing in the operating room every day. 90% of the sales are also in the public's procurement for this and the same setup for the country for the company for the contract. If we go for the Home Care, we have changed a little bit about the vision. We have stayed longer at home in the early days, but now we have stayed at home. It's a big difference from our perspective because with our products, we don't need to have another destination of the patients. They can stay at home with the WellCare technology and also with the products we are supporting them with. And there is, as you have heard, there is a huge demand for improving the health care quality for the future because we are getting elder and elder and that will be a challenge for the future for all of us. And you have probably read in the newspaper this weekend, there is a famous artist, a song artist in Sweden, And she's really claiming now the elderly home for her father and that will be in part, I think that will have a big impact for the next coming months for these discussions. We are working mainly in the home adaptations, the welfare technologies. That's the main focus in the home adaptation is more for the hygienic products. As you are probably the same as I am with that integrity. And this is from the last part of the health we want to have is on the hygienic side. So we are now trying to have adjusted by adjustable toilets, adjustable basins and so on. And of course, in the future, together with WellCare technology, it will hopefully change if there is one coming in, in the toilet or at home. If there are some difference in the length of the couple and so on, there will be automatically change when the people are coming into the toilets. We have not close to 90%. We have 75% is public procurement in the home care side. There are a big difference compared to the hospital and the other side. Here, we have 75% of home products in the sales. And of course, what also Christina told about this, there will be a lot more home care in the future and also more and more treatment at home because there are onethree of the cost if you can treat the patient at home instead of by infusion. Our own products is, of course, more and more important on the hospital side and also on the home care side now when we are making our geographical expansion, because then we are owning the product. We are owning the product portfolio. And that is much easier to go outside the Nordics with our own products. All of the most of the products are either supporting the distribution products or helping them to give us a better proposal to the customer. Mainly, we have higher gross margin on the own products, which is, of course, very good in the final end. We are using both own production, but mainly we're using subcontractors. The own production we have is more assembling units. So we are using subcontractors the basics and then we are making the samplings and final testing in house. Today, we have or end of 2018, in the metex side, we have around 30% of the total sales was in home products. But you have heard about the well spec products. And when we are in rolling 12 in end of 2018, we will be close to 40%, 45% of our own products in the MedTech. I will not go too much deep into this because this was exactly what Martin was saying illiterate about the growth or the market in the Nordics. But I think one part here in Sweden is that there is, as Kristina mentioned, there is a very strong focus on the sustainability at the moment, both in Sweden and also in Norway. For instance, the Stockholm's Lancelin in Sweden has been a lot of lay in Sweden in Stockholm Lancelin. But on the other hand, they have they're doing also very much good in the point of sustainability. They are making their own sustainability investigations by the suppliers and they are really focusing on the environmental questions for the future. I mean, as I've mentioned, we have PVC free products, which started 10, 12 years ago. And we can be honest, there are very few customer outside Sweden for the P2C3 products, even if there are a lot of discussion everywhere, but no one are taking the final decision. If you see the Danish, I think most of them was this has been informed by Martin. There are one difference between the markets and the Danish market is a little bit more flexible than the other Nordic. They have more price agreements, which are more on a generally 1 year basis. In Norway, there are a lot of discussions also about sustainability and they have also gone a little bit further than the Swedish because they are visiting also the suppliers' health and service. You can say in connection with Stockholm's land landing and health service, we have very few strong partners for the sustainability questions. Then there are also some, yes, positive, negative things. It depends on which side you are. You know that one of the biggest customer, the national tenders in Norway, they call it NAV, They have now opened up. So there are more than 1 winners because when they as always, when you are making a new systems, you are going in this direction and now they are coming back a little bit because they have seen that the competition is so much weaker. So they need and then I think that that's positive for the market even if you are perhaps on the winning side from the beginning. But I think it's very good that there are more companies coming up. Vietnam is probably the country that our don't have so much focus on the sustainability yet, but it will probably come. And otherwise, I think most of the points was covered by Martin. And also, you can say that overall, the points which were not covered by Martin in that case that are a new directive now coming into 2020. And that will be much higher pressure on the producers and also on the distributor side, because today, the pressure on the distributors are not so high as the suppliers. But there will be a new directive coming in 2020 in May, and 1 year is going very quickly. And I'm sure that the threshold for small companies will be, in some cases, too high. There are a lot of companies who are actually now recognizing that this threshold will come. So there is a lot of discussions, both for acquisition and partnership, because they need to have a much stronger quality department than they have today. You can say that what they are doing in Europe is a little bit strange because you know all of you know the FDA in the States. But the new MDR requirements, they are even higher than the FDA. And that will probably mean that in the future, small and innovative companies from the states, they cannot go to Europe because then they need to make another step than the FDA. And sorry, that's so it's a big change. It's a huge change for all companies in Europe. Yes, as you have heard, we have had a hard time during the last half year or year to discuss the acquisitions. And we are extremely happy that we succeeded in both Vio America and Wellspect. For the Vio America, which is a little bit nearer over live, so we have 40% medtech. And they are mainly in the medical device business, which is similar to what we have here in the Nordics hospital and also specialized surgery. And they also have one part, which is clinical IT, which is more patient monitoring system, especially for the intensive care units. That's a big product group for the medtech in the America. Victor will cover the other. So what we are doing at the moment with Mi America, we are making what we call cross fertilization. We are having cooperation between our organization in both MedTech and LabTech. We have meetings from different sites. We are discussing course, zone products into the Nordics. We are, of course, discussing we have a lot of suppliers in the Nordics. They have a lot of suppliers in their countries. We are now discussing with some of these suppliers in order to work also for to have more countries. Then, of course, there will be a lot of possibilities for add on acquisitions in the Biomedica area in order to be even more stronger. So there are so many nice opportunities. For the Westpac, which is also a fantastic complement to the existing hospital business, There will be, as Christina mentioned, there will be own products into the existing product portfolio. We will, as you saw on the map, we will integrate most of the business into existing sales and product management. We are working with Novato in Hungary. And as we said or Christina was mentioning also Australia, which is of course, far away. But on the other hand, we have been there for more than 10 years with our ENT products. And now we are actually taking over the existing subsidiary for Wellspect and we are turning around. So we are distributing the Wellspect Rolodexcel portfolio in Australia. And that will give us the company around SEK 50,000,000 and with SEK 8 or SEK 9,000,000 SEK 9,000,000 SEK 9,000,000 SEK. So that will also, of course, be the first step in also to make cross fertilization with other products, with our own product portfolio and also with distribution products. So there is a lot of positive discussions already with our existing suppliers here in the Nordics to go, first of all, go to the American areas and also to Australia. So I think in overall, the summary, which is fantastic 2019 ahead of us for both Ed Life and especially the metric, because there are so much things happening at the moment. Thank you very much. Excuse me. On Wellspect, what would be the main kind of products they sell or distribution? You can say the main 50% of the sales are in the wound drainage side. And then they have some blood collecting system and they have some surgical operating circuit suction sets, which is in one case, all of the products are in the 1 another way already supporting the existing product portfolio what we have today in the Meta Plus area and also the BioMedics area. So you can say that Medi Plus will take care of the Nordics and some of the European countries. VioMedica will, of course, take care of their countries and Austria and Switzerland. So there will be people coming in from Westpac, employed in Vienna by the America, already working in Austria and so on. So there are they are fitting well and well into the existing product portfolio. Okay. Thank you. So thank you. And then coming into Labtech. Looking at some figures, we saw before that we made almost SEK1.5 billion in net sales. And we had a profit EBITDA of SEK1.65 million. And EBITDA margin was 11.4%. So even though that we didn't grow as much as we actually had hoped for in net sales, we were able to increase the profit by 10%. So we went from 10.8% in EBITDA margin to 11.4%. So Maria was working hard with that kind of achievement. So looking at what kind of segments are we working in and the green one is those who is actually covered by the IDD diagnostic part. And I think it's quite important to understand that diagnostic is a broad area. And we are in IDD diagnostic, in vitro diagnostics, what you do outside the body. So you have a lot of x-ray or other kind of things or these kind of things, but they also cover in diagnostic, but we are not active in that part. So this is really going for the hospitals in this area. And we are especially, I would say, focusing within molecular and microbiology and also point of care and pathology. Clinical chemistry, that is more the, let's say, the traditional IVD diagnostic tools that start more in a central lab with a huge system recovering that kind of things. We are not really that much into that kind of things in this huge kind of systems. Looking at the blue or purple is then for what we do for the R and D side and also for industrial analysis. So in R and D, we do a lot about all kind of research going later on into IVD diagnostic tests. So it's very much in that kind of thing, what we do with the academia, for instance, and also pharma companies. But we also involve with advanced implementation when it comes to auto quality control out in the industry. So we're also covering, let's say, food industry. We cover also veterinary. That is then not the human diagnostic, but it's very close, of course. And of course, also into pharmaceuticals and also environmental analysis. So it's a quite broad scope overall that we're doing in the lab tech part. Quite interesting to mention is that one of the Nobel Prize winner last year in medicine, James Ellison. He was working with immunotherapy. And part during his research way back, he was using different kind of kits from our supplier sales in the technology. So it means that we are in the forefront with our suppliers that we even get can help somebody to get the Nobel prize. Looking then into diagnostics. We are then selling instruments and products that, of course, used for the IVD diagnostic market to all kind of laboratories, both public, of course. There is a few public, but also private laboratories. So the customers are primarily in the health care sector. 90% of the business we do there is according to public procurement. So the same as also what we see in the medtech part. And the length of the contract is usually between 4 to 6 years approximately. Instruments is 20% of the sales and rages 80% of the sales. And it's a very interesting business model really what we have here. We call it razorblade business model. So actually the instrumentation is done the razor and the ranges of the razor blades. So during this kind of 4 to 6 year period, we're supplying the rations to the hospital, to the customer's lab, running them on our instrumentation. So it's a very, very nice business model. And it's also that we have been very, very successful in maintaining our customers year over year, very much to the fact what also Cristina mentioned is due to our service offering, is due to our training, what we have with the customers. So it also builds up a certain barrier that also keeps us really continue to work with the customer in a very, very good way. Very closely linked, of course, as I mentioned before, is then also the veterinary, where we also are working with the veterinary side. And the veterinary side is also a very interesting market. I mean, sometimes we spend probably almost more money on our animals and pets than we do in ourselves. So it's an interesting market from that point of view. Getting into the bioengineering research, here we're also selling instruments and reagents then used for the research laboratories, but also for quality control in the industrial labs. Customers are primarily into academia, private laboratories research, both in healthcare, pharmaceutical and also into food industry. It's a little bit less public performance. It's 70% in this case. We have 10% is own products. And here's a little bit different, the business model. It's 75% is more instrumentation and 25% is reagents. So it's a little bit of a mixed picture what you see when it comes to the diagnostic part. Looking a bit about the market, the market update, I think we've covered a few of those. But looking into Sweden, is that we can still see that we have a very good market actually, both for the healthcare, but also for the research market. There's a lot of money also put into different kind of foundations into the research. We got, of course, the new Karolinska cabinet, but also they also have the Karolinska Institute with the geomediculum in all these. So there's a lot of interesting things happening in the market. We can see that in general, in all the Nordic countries, it's a lot of things happening in the healthcare market, but also in the research market. And that's really very, very inspiring. Of course, Sweden would like to be really in the lead. We haven't been in the lead for life science research for quite some years. There was an initiative coming that the previous government action at the beginning of 2018 decided to establish a life science office, really with the goal to see to you that we can reach that kind of position. It seems that it's still continuing after this kind of election that we have. And they are coming up with some kind of a national strategy for the life science industry. And that's quite interesting. We can also see some other initiatives into the same kind of field. We can see a lot about restart taking place when it comes to genomics. And I think that really is what will change or has already changed a lot about the industry or also within the healthcare that we now can have a totally other kind of tools to make diagnosis and also to see the genome. This is a very interesting thing coming up with this genomic medicine in Sweden. It's several central places in Sweden, actually working that we are bringing out these kind of new technology to the patient, but also to establish new kind of therapies. So this is really a very, very important step. And also we can see that also looking into this antibiotic resistance is also an issue we've taken here, how can we improve that part, not only on the Swedish level, but also on the global level. Denmark, we mentioned that we had a little bit of a weaker sales at the end of the year, and that was timely coming from the pharma sector. Novo Nordisk was actually laying off some 400 people in another major research site in Molde. So that make a bit of a stop in their kind of business development. And of course, when it comes to instrumentation, it's a bit of digital. But I think that will be overcome over time. It's already mentioned that in Denmark, we also have this kind of super hospitals set up coming that are built and also going to be increased to a higher level when it comes to the services. Denmark has also the same kind of initiatives when it comes to this genome research, genome screening in Denmark. That's also now established, the National Genome Centre. And for the first time actually, probably in 2019, the pharmaceutical export in Denmark is going to be number 1. They always, not always, but they've been number 2 for many, many years. It's always been agriculture that was number 1, but actually it seems like they're going to be number 1 in 2019. That's what we like. Norway, also mentioned before, it's a good activity in the market place. There was this kind of some handling performance was actually started up some years back. And one of the part in that reform was actually to bring out more into the primary care to make, let's say, more tests, diagnostic tests closer to the patient and also that you can get a result much, much faster. Actually, you can wait 1 hour or 2 hours and then you can have a diagnosis. And then it will be a positive step. And I hope and I believe that this will be a development we will actually see in more countries to come. Because nowadays, the diagnostics tests are so good and it's also so easy to use and secure to use. So I think we will see much more going into the primary care. So you don't have to wait for a week or something before you can get some kind of a decision what kind of therapy you're going to get. I think this is a very, very positive step. And also mentioned before, most new hospital also in lab for Norway. In Finland and the Baltics, in Finland, we had a really outstanding performance in 2018. We had a fantastic growth, both in sales, but especially in profit from all our companies in Finland. So it's really not a positive step going forward. In the beginning or the end of 2017, we started up our organization in the Baltics, and we have started quite well actually. So we are now covering since more than 1 year, we're covering Estonia, Latvia and Lithuania. And that time, of course, we knew that Latvia and Lithuania is a bit different market to Estonia, so it will take a certain time to get into that market. But I have to say that we have really been stocking up quite well and that looks promising for the future. They have this kind of soft debt, this comprehensive change in the healthcare and social service reform, actually was planned from the very beginning to come in place 2019, but it's been postponed many, many times. And now they have an election in Finland in the springtime. So definitely, probably nothing happens until probably half a year ahead or 1 year ahead. What will come out of that kind of things, nobody knows. Really positive in Finland is that they have been cutting down for many years the funding for the academic research. And actually, now the government told that they're going to actually grant some €12,000,000 to the research side. And I think that's a really positive sign in Finland. We haven't seen this for many, many years. So I think that will be interesting to follow that kind of development. International. And international for us means the part of our own products that we have in Labtech. So when it comes then to a company called BioLin Scientific that we acquired in December 2017. They are a global company. They are making instrumentation for surface science. And they have had a fantastic development the last few years in China, and that seems to continue that part. Christina already mentioned that we had a dynamic sales organization where we actually acquired the company in the U. S. But we wasn't really that happy with that kind of performance. So during springtime 2018, we changed to a distributor in the U. S. And that seems to have had a very, very good effect. So we had a good development in that company. The other part of our own products is a company called Labrobot down in Seneson. They are making special solutions for microbiology measurements when it comes to food. And they are also a global company working with distribution. And there we also have broadened the number of distributors. So now we also activate South America. We also went into South Korea and also went into Portugal. So we are spreading a bit the map around the world. And that's really very, very exciting because food is almost pretty soon as close as pharmaceuticals when it comes to taking care of the security. So coming to Biomerica. Already mentioned so far is that the Labtech part is approximately 60% in the America. And Australia, as Lars Erik said, is a mirror of Ad Life. So they are active in IVD diagnostics as we are. They are also into veterinary and food diagnostics as we are. They're also into life science, what we call biomedical research. And they also have their own products, actually own manufacturing that we don't have. So that's really very exciting. Otherwise, they're covering the same kind of market that we are actively in. So we can really say it's a perfect fit for us. Of course, we really can have the cooperation within the group because we already have some common suppliers that we can work together with around those suppliers. But especially, there's a number of suppliers that we have, that they don't have today and vice versa. So hopefully, we can attract some of the suppliers also moving into the other markets. But I think also our offering, I mean, now we can cover somewhat 20 countries in Europe and the Nordics. So that's quite a strong offering when we are talking to potential new suppliers that they can actually get that in one hand. So I think that's a very, very strong offering what we have. Then of course, they have their own immuno essays. And this is an interesting thing because they haven't been that successful in the Nordic market. This is really into some niche biomarkers, but very special. They have the production in bratislava. And this is something that we can bring now to our organization in the Nordic countries, but also we can look for supporting them in finding also distribution wildlife for these kind of products. So this, I think, is a very, very interesting opportunity for us getting into this. So coming up, just summing up a bit about the trends that we saw. We talked about this consolidation at the customer sites in the different councils and in different countries. But we can also see it, of course, on the supplier side. There's been a lot of acquisitions going on the last few years from the big ones, and that's probably going to continue. We can see for sure that having this kind of pan Nordic setup is really attractive. We're now also then adding BioMedica, the 13 countries in the CEE into the picture, really going to be a very, very strong thing for us to attract new suppliers. I think it's really key for us. We can see higher requirements for services actually. Christina was mentioning that, that many of the customers today really don't have the chance to have all this expertise in house. In many cases, these kind of laboratories is more like a production facility. So there we can really add our services around the product and help them in this kind of way. Also, when it comes to research, it's not always easy to use these kind of new tools, to use these kind of new technology, and then we can also help the customer to use the products in the best way. So it's more consulting point of view. We already mentioned that the growing need for diagnostics, no doubt. We talked about this demographics coming on. We're going to live longer. We're going to have a number of chronic diseases, but we can keep them in place due to the fact that it's good medicine. But we also have to have diagnostic in place to follow this kind of treatment, what we have. We're seeing it also, of course, when it comes to personalized medicine. Really very, very interesting. In the past, we had the same medicine for us for the same illness. But now we find out through all this Genopex screening, these kind of things that it's different from different persons. And this, of course, also have much, much higher criteria to really have re diagnostic tools and practice. So I think that's also really very good for us for the future. And in general, the rapid technology development, I mean, we talked about digitalization. There's a lot of data coming out when you make, for instance, this kind of NGS screening. The critical part is more to take care about the data, the big data. That's really interesting. We can, of course, see all these steps into eHealth that is coming on. More and more, we will see home diagnostics. This is another interesting area also for the future. And I think, last but not least, this kind of preventive health care. I mean, in the past, it will always to go to the health care to be treated for disease. But what about, I mean, scanning your genome, you can see that there is a risk that you can get this kind of disease or illness. And of course, what can I do really to have a healthier life to hopefully not get into that position? Or if you can see, for instance, that probably you have a good chance to good chance, not chance, but you can get Alzheimer. If you start to treat that kind of patient 2, 3 years in advance before you saw it with the old kind of diagnostic, that's really interesting. And it's also a lot of saving for the society, money saving, but also good for the future. So thank you very much. I'll Then it's me. And then we have Oh, awake still, I hope. A lot of things we want to tell you about adlib, but this was a sort of what has happened the last years. And I would like to say, well, this is the new ad life. We're going from the Nordics, more covering Europe, a little bit in Australia, of course. But this is the new ad life and we are all looking forward to seeing what we can do in the future with this fantastic company. And hope you got the flavor about the culture, how we want to work internally, because that gives a feeling of I think we're a bit different from a normal big organization. We try to be decentralized, quick in the market, smaller companies, another efficiency and another way of working. And as the last slide, I just want to show, well, if you were a shareholder 16 March 2016, you have had quite a good journey until now if you compare to the average index in Stockholm. So this is what we work for. Except for reaching the vision, we work for increasing the share price actually as well. Okay, questions or comments? Yes? Yes. May I start. Just looking at this profitability target, R through RK, obviously, you produced 65%, which looks very good. But how does it look when you split it up on the 2 business arms? You can say since you saw that in lab tech, we have a little bit higher EBITDA margins. So we have higher profitability in the lab tech area. That is both because we have higher margins, but also that kind of business, there isn't the same demand of having a big inventory. Of course, instrumentation or perhaps you want to comment, Peter, but instrumentation is quite quick through our inventory directly to the customers. So we don't need to have as much as inventory as we have to have in medtech. But what we have done in the medtech segment, we have a little bit lower margin. We have to have a bigger stock. But we have you jumped it over very fast, Lars Erik. We have invested a lot in our better logistics in Sweden, because we need to make sure that we have a higher turnover rate in the logistics area there to be able to increase. So we are on a bit higher in lab check, but we are above what we are sort of the 45 is we are above 45% in the metric. That's how it looks today. So when you drill down the further level then to the business units, how big part of the group is about 45% today? Martin, can you help me? Well, I would say it can't be more than 3, 4 companies that are below 45. 45 is sort of this is the lowest level we accept. And when we acquire a company, they are almost never close to the 40 5. So that is the first thing that we start to work with. So if we're good there, over time, we can get out the cash flow and continue. But it takes time. You don't change processes because this is to change process in a company. You can't just shut down the stock. You have to change the ways you're working. So drill that to the next level. And obviously, you have a very decentralized organization, which seems to work very well. But when you look at those 2, 3 companies that are below 45, how much focus do you put on those from group management, so to say, really squeeze it to get to where it should be? A lot. But that's actually what we always work with is to sort of raise at the lowest level, make sure that the lowest level always gets up. So companies who have problems, problems who are not that profitable or doesn't have the right sort of margin that we want, of course, we work with them much, much more. And then we have the second strategy, which you saw was the number first was to be market leading initiatives. The second one is to have operating mobility. And that is something we work with a lot. That means that the company has quite a bit more problems. We can either put in more resources or perhaps we sweep that company and move parts to another company so they can focus even more to be more profitable. So this is a continuous work. Always, there are a few ones not performing well. We work a lot with them And then it comes to new ones. So that's the continuous work that mostly peak third loss Eric is working a lot with. Do you want to comment? No, I think that I think as you mentioned, I think that that's really a continuous work all the time. I think everybody knows what is the hygiene level. And of course, I think it's quite clear also that if you look at if you are on a certain level, what should you focus on? So there's no question in the company, if there will be below the 45, it's clear for the company that you have to focus on profitability. That's the number one that we have to work with. So it's quite easy for people in the company to understand where to put all the focus and all the activities. To come back to our financial goals, profit goals and profitability, here we benchmark all the companies, which is a fantastic way of challenging people. Nobody wants to be in the bottom, but there's always a company in the bottom who wants to be better. So to benchmark all the time and work with that, you will people are a bit competition like if you're an MP, I would say, in a company. You want to be better. So it's a good way of making people to perform better. And actually, those who are in the top, they get a special award every year when we have larger meetings. Two more quick ones on Arthur RK. Looking at Biometric, how are they looking in that kind of situation? And particularly, if you look at the 20% that is then outside the core markets, are they is it really possible to drive that kind of profitability target on those kind of volumes? I would say, yes. Coming back to when we acquired Mediplus actually, because when we acquired Mediplus, you were not close to the 45. But after a few years, continuously hard work for the with all the employees in the company, we have been able to raise that. So I would say, yes, but it takes time. You don't do that in a quarter or a year, but it takes a few years, change process, best practice, and you will be able to come up to these levels. So I'm very positive to reach that as well. Any more questions? Yes. We can web further. We got the question on the web. Okay. Thanks for posting this live. Much appreciated. I have a question on capital allocation. Could you please share your thoughts on keeping the dividend while simultaneously raising equity? Thanks. Okay. Yes. That was a discussion we had in the Board. As many of you have read the report, we have decided to continue with dividend even though we are doing a rights issue at the same time. And of course, you could say, is it wise to first take in money and then give some more dividends. But we think, I mean, that goal we have is to continue to give dividends and the percentage is 1 point whatever of the share price is actually the dividend. So we think it's fair to continue to have a dividend even in when we do this rights issue. So that was the decision we have to don't raise it, but keep it at the same level as we had last year. Jan? Yes. You are an acquisition expert, and you have long experience in this. And you're trying to acquire good businesses and keep management and so on. At the same time, you are learning your culture and so on. And that seems to be quite good to work in the Nordics at least. When expanding into Europe, I guess there are even more differences in cultural use in companies. Do you see that as a challenge or would you handle that differently than the Nordics? I mean, right now, we've done I was one acquisition outside of Nordics. And I think the reason why it came an acquisition was actually the culture, because they have met us for many years. We have met them for many years. They worked, and I call them, they paramedica in this case, work very decentralized with their subsidiaries, very close to how we work in the Nordics. So we share this basis of working in a decentralized organization. And I think that was one of the reasons why this was a very good match for both parties. And during all these talks, we see so many similarities, but from both sides, we see also that we can learn from each other, things that Biomedica is very sort of in the forefront of in the different areas where we could help in the Nordics to be a little bit better and vice versa. So I think these acquisitions, I prefer when they take long time because then you have the time to really get acquainted, sit in the same room, discuss going forward. So in this case, it was fabulous actually that we didn't have any broker with us. We just sat together and talked. And over these discussions, it's suddenly we realized, well, why don't we do an acquisition? Because it was a good fit for them. It's a good fit for us. So, yeah, that's why I like this long time coffee drinking. That's the sort of the basis to make sure that we understand each other and have the same thoughts about how to deal with the future. But in reality, it's not Biomedica is not one company. It's also including all the subsidiaries. So try to force the culture to small subsidies in remote parts of the year? I don't think it's easy or I don't think it's wise to force a culture, but what we will start up is that Peter, as you heard talking about our culture here, will be the, as always, the man in charge to make sure that people hear about our corporate culture. We will start trainings here in April, April, beginning of April of all employees. And that would take time. And it has to take time. I think all of us, it takes time to change. But I think the fundamental important here is that the management in Biomedica has sort of bought in really on where we're standing. So you have to have the leaders in that organization sort of brought in this new model, and that will take some time. And I think that's fine. And also, you have to understand that the same way that we operate in Sweden, we will probably not operate the same way in Czech or in Slovenia, because it's a different country. We have different culture, but we can still share the same way of helping out, benchmarking how we go to the market and how we look on freedom, responsibility, things like that. But they are the experts in their local market. And we really must be sort of humble when we look on the skills we see there. Yeah. Nordic market is also quite different because of the nature. We know that. Nordic market isn't one market. It's very different from Finland to Norway and Sweden and Denmark, yes. So it's more of a financial type of question. The driving force seems to be cross selling opportunities and so on. But the other thing I think you have to change in your distributors. And of course, you can take your products to Europe and then Sort of summarizing for people looking at the webcast, we're talking about the sales synergies. Of course, we sit perhaps with suppliers in Finland, if you compare to Hungary, which could be and our competitors in the world. But that is really the fact already as we have in Novartis. We have, in some cases, the main competitors working within assets distributed by Ad Life. So I think that we are very used to, how to handle different suppliers even if they compete in the world. We will do that with smartness. You have to be very transparent. You have to discuss with them. We meet them. Of course, we started out sending mail and the telephone therapies is what happened. And then we have a lot of meeting with all the suppliers. Do you want to have this market as well? Or perhaps you already have a distributor in Austria or Sweden or wherever? They prefer to change, but that's nothing that happens the 1st week. That will take some time. And I think we have to realize this will take some time. This is a revolution. It's an evolution. We are on that journey. And I cannot promise that, well, in 6 months, this will happen. Of course, we try to do everything as quick as possible. But again, you have people who wants to do what you have to make them get a responsible commitment and feel that this is the right way to work. And we will not stand in Stockholm and pointing at people saying, you have to do this. We like to get everybody involved in these changes. But I see opportunities and perhaps you've heard that from all of us. We see opportunities, but it will take some time. And I suppose you're not prepared to give a number. No, I'm not prepared. I never give predictions, you know that. That's Okay. Do we have any more questions? Or is it lunchtime perhaps? So big thanks for coming to us. We are available for questions afterwards, of course. And if you have questions later on, call us, mail us, whatever. Thank you for listening in. And Thank you for today.

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