Nightingale provided an update today. We will discuss the business and figures a bit more with CEO Teemu Suna. Greetings, Teemu. Great to have you for the interview. Could you first tell us a bit about the main points of H2?

Yes, and regarding H2. It was indeed the best, the best earnings release we have ever had. So that was of course a good, good thing. We have focused very strongly throughout the financial year on this commercial commerciality, and that might of course sound a bit silly to someone, as to what is so difficult about it. But, but. We must remember that we are nevertheless a kind of technology company, which, which for the past 10, the preceding ten years, has built this technology platform and global laboratory capabilities and so on and so forth, so now this transformation into commercial operations has been built. This entire, entire financial year. And financial years. Here in the second half, we then started seeing these results already in the fact that when I look at the pipelines, I look at the case volumes. I look at the sales activities that are taking place around the world. They have grown. Grown very, very much. I am satisfied with that. What I am not satisfied with is of course the fact that we had this one large, large research project from which a large revenue was then postponed, did not come in the previous financial year, but it was postponed to this financial year. That amounted to three quarters. Some of the parties were involved in the matter. We did everything we could, but we were not able to turn it around. And of course I cannot be satisfied with that, because through that, this entire fiscal goal of ours was then not reached.

Well, as one point I'd like to pick up from the report is that you mentioned investing in sales in Britain and Europe, so could you tell us a bit more about this? What kind of opportunities are there and what are you targeting with these additional investments?

Yes, our sales are very much like that now that we are in B2B sales. This is it. It is really important to remember that we do B2B and B2G sales and it is very, very different than if we were selling directly to the end customer. Now in B2B sales. We have approached this by always selecting these now in EMEA, selecting these European countries and then scouting out customer accounts from there that talk about prevention, that our technology agreement suits, or at least appears to suit directly. Then we have been in direct contact and after that we have flown a lot by plane. And this first phase is such that we are looking for those wins. And at the same time as we talk to customers, we are also building the commercial model. Meaning how do you always do it in B2B sales? How do you sell that technology? It is by no means self-evident. And for us too, globally, selling is different depending on where you are. Now, through these pilot wins that we have reported on. That is how it is. Little by little, we understand better what the sales model is. The next phase is then that we will set off. Once we have sort of standardized the model for selling in the EMEA region, we will then start growing the commercial team around it. Meaning more salespeople will come in, and through that, a repeatable sales model will be driven. And the same applies to the UK, which is treated as its own region because it is. Perhaps there are very long traditions in healthcare there and it is perhaps a slightly different system than in many other European countries.

Well, your target for the now-begun period is a revenue of at least 10 million. If we break this down a bit, that means an increase of at least 4.5 million in euros compared to last year, the last period. Of that, two million comes through the Aalborg agreement, which you also referred to here. And if we consider the last financial period, the absolute euro growth there was. It was probably around 800,000. Now we are going from this Ahlborg-adjusted figure by at least 2.5 million. Or Aalborg on top of that. Well, this naturally means an acceleration of sales. So, what kind of factors are behind this? From where? From where does this growth consist?

There are several factors, if I look at the research-side market, there we have this multi-omics side, which we brought in during the last financial year. We have quite a few projects in that, at that point very strong interest, and this multi-omics specifically in the way that it includes our own technology. Then there is some proteomics technology and then such packages are built. At that point, quite strong interest. Then again, when we look at the healthcare market, the healthcare market is turning in a very positive and favorable direction for us. More and more. Customers are thinking in terms of the question, what is being treated? Are we treating some individual biomarker? For example, now like LDL cholesterol, or are we treating the risk of having a heart attack? These are two different things. Treating that heart attack risk also includes treating LDL cholesterol, but it also includes many other things. And now traditionally, when there were no metrics to measure that actual risk in a repeatable, reliable way, as these current tools are terribly manual, a completely different way of thinking about the entire healthcare becomes possible now. And this change is driving quite a lot of demand in our direction. And now when we forecast this, or have set this target, this is for example an underlying trend like this. One thing that is also driving this is GLP. GLP, GLP drugs, meaning obesity drugs. There too, we sort of come to the same thing, that weight loss is of course one of those goals and helps us with that drug. But there is everything else besides that. The development of these cardiometabolic risks should be understood more broadly. And now we come to the point of what you measure it with. You can measure some change in HbA1c, but that is a pretty thin, thin, thin way to look at it. Instead, if you look at those risks regarding endpoint events. Now the whole, like the whole obesity drug world can start looking quite different. What if those disease risks can be managed with the help of that medicine, and that starts having a pretty different impact as well. If we look at public health, look at the value generated by it, there are several such changes in this market that are heading towards such holistic health profiling, specifically identifying the risks of those endpoint events. And these trends are now visible to us in the fact that when I look at the pipelines of these different business areas, they are there. There are more deals, there are. The use cases are very well suited for us, meaning we have a very strong competitive advantage in them, and through that we strongly believe. We can win more business, we will win more business, revenue will grow and. It is a tough target indeed, when last period saw 50% growth, now we set roughly a hundred percent. But we have very good reasons why the target has been set this way.

How would you characterize the fact that you naturally have this Ahlborg-based agreement. Then there is, for instance, Terveystalo's revenue, which surely is very defensive and predictable. So how? How big a part of this target is such very continuous or already agreement-based business versus new customer wins?

Indeed, there are quite a few new wins that are being sought in this growth. Sort of. It definitely comes from these new customer accounts, and perhaps. It is essential in my view also that this forecast, since we have two types of, two types of sales and business, we have the work that we do. Our sales do it daily, meaning building the pipeline and building a larger funnel, and then converting a certain number of customer accounts from that funnel. This is sort of the bread and butter. What do we? What do we do here? That is what drives growth here. It is the engine that is being built and set up here. It operates efficiently. Then we have. Then we have strategic, sort of flagship cases like these, which could be. They can be quite large. They can be quite significant for the narrative of this entire company. But this 10 million target is not built around them, but rather it is the result of this operational work, the building of that commercial engine, which is being pursued with it. And then of course it's nice if strategic wins like these come along, they also help us in the actual operational sales work, like more and more. So that definitely applies very well at this stage where we are.

And the focus is apparently little by little evolving towards healthcare, and the relative weight of the research side correspondingly decreases.

Yes, yes, yes, that is now visible. Actually, for the first time when we look at all our regions and look at their targets and the forecasts of what is being aimed for in them, the visibility into the split between research and healthcare. Now, perhaps when I look at the forecasting horizon, I see. It shows that we are quite close to moving to a fifty-fifty split. I am not saying it will happen during this financial year, but the trend is very clear. What is being done here and what is being pursued, so. And that is of course, if we think about this. I said about this, that turning a technology company into a commercial company is quite a challenging thing. Well, I say that at the point when this split starts looking like this, that we are closer to fifty-fifty, then there will be. Then there are indeed very strong signs that it has been successful, and I do not believe. Looking at this market, we will achieve this breakthrough here at first, so I very strongly believe that demand will start to come. Demand of a kind where, well, because those use it too. This is nevertheless a reference market very strongly, and this is what I mean when I talk about a commercial breakthrough. This is what I mean by having a sufficient critical mass of deals so that the market itself actually starts talking. Well, since those use it too, after which selling becomes very different. And I don't believe we are, we must. We must win these deals. How do you win deals? I say internally that deals, deals, deals and like. Because that is what it is, that is what turns this game, and yeah. And we are going to win those deals, we have a really competent, really motivated team doing this, and we have. We have a really fierce hunger to win. We have built this for so long that now we, now we. Now we will show that we also know how to make business out of this.

Speaking of deals, there has been a lot of news here, mainly of all kinds of pilot-type cooperation. But could you tell us a bit about what percentage of these pilot-type cooperation projects then turn into more permanent sample flow and such more mature customer accounts?

Well, perhaps it is partly a bit early to say yet, but the data we have now, we don't really have any pilots where they said after the pilot, well, never mind. So basically those pilots do go into production. There are perhaps some exceptions where the interest then somehow fades a little. But, but. Like with a really high percentage. They do continue, now why the results are not showing yet, we must remember that for example. Here. In EMEA sales. We started it at the beginning of the last financial year and then when you think that August and you start building from there. The pipeline of who you meet? Then from the moment you get on an airplane for the first time and then you need to visit 20 different countries many times in each of them. And even if you flew on an airplane every day, you would have like it is quite. Like, like quite a challenging task. And I want to say that that is exactly what we did, that it was almost every day then. Then from the airplane, our EMEA, our head of EMEA. So, so that quite a lot of customers then. Customers were met, but that's where it starts, that sales is ultimately. Sales is ultimately footwork. It is about doing effective targeted actions every day, over and over and over again. And this is what we have now learned as an organization. It is a very different mindset than if you are doing research. In that, the time horizon and sort of the way of thinking are completely different. But now I am. I am very pleased that our key, key personnel in actually all of our businesses have, have indeed succeeded very well. A really good model has been found for doing it again, again, and again. And through that then. Now these pipelines look, look, look good and it is really good to build this financial year from here.

Well, you are getting this laboratory license from the United States. A few, a few months ago. Based on the report, it seems that we are at a fairly early stage in New York. But could you give an update on what the situation with the US laboratory is at the moment?

Yeah, well, the situation is good in the sense that, first of all, getting this, getting this Gleb approval. This New York state is the strictest state to get any approvals in the United States. Well, who is crazy enough to go there? Well, it's worth going there because if you get that New York approval, you are good to go. As in, pretty much in the whole, whole, whole country. And getting that approval already in the spring tells quite a lot about what kind of capabilities we have, what kind of readiness, you don't just get it quite easily. Now, what we are doing is that we are driving. There are two phases in this approval. Now we are in this second phase, where we are now driving this kind of validation of individual biomarkers, validation reports. In cooperation, those validation reports are always sent there to the authority and they comment on and approve them. Finally, that work is now in full, in full swing and of course we aren't. It is an authority process. It takes the time it takes. But, but. We do think that in the second half of this financial year, we will be able to launch the products and engage in full sales, commercial ventures in the United States. We did now hire a Chief Commercial Officer on the Ground there. Changes were made in our management team, we took, we took, we assigned responsibilities in the management team for the United States in different ways as well. We increased this kind of senior-level commercial capability a lot. So now, now we are, like, now we are having discussions with customers, doing deal-making, and fundamentally, the landing timelines for these partnerships and deals are then here in our next half-year, so we certainly. We are now in a pretty fast and pretty good position there, there in the United States, so there are still question marks. But then again, that app title and how the customers see this product of ours, I have really. I am really excited about that, that this timing could be. I'm not promising it yet, but I'm saying that the timing might be really good. There are signs in the air.

A similar question regarding your Singapore laboratory. There you are taking a step back and making revisions to your report. Now it is. How are customer relationships progressing in Singapore right now?

Yeah, maybe Singapore has to take a bit of a hit commercially here, sort of on behalf of everyone, because the problem that was in our report first landed in our lap there, which was maybe that it's a long story. But if I condense it a bit, it was maybe somewhat of a health report made by engineers. And of course, in a way, when it's made like that, it is. You have a certain group of people for whom some think it's just fantastic. But then when you take a slightly larger population and you try to go into such widespread use, then that perspective may no longer be the right one. And we actually revamped that perspective completely in that report. About a year ago. So, in our first wave during the last financial year. And we built it much more like we did. It is clearly much more understandable. It is more intuitive, it's just easier to use both for doctors and then for the patient, who is kind of the end, end customer there. And we succeeded in that pretty well. One reason was that we had, that there in Singapore there was sort of a platform where we got a really fast feedback loop for that, also for that report and also our own product development, our headquarters team as well. We found. I am also really glad that we found such a fast way and such an iterative way to do that development. With that, we got the report out. Like. After the turn of the year and customers. We've had a lot of discussions with customers and when I compare the interest before and after that report, there is a massive difference now, and the commercial team there in Singapore is working on it. They are working hard to make these order volumes start, start growing. We will see during this financial year how it, how it, how it succeeds, but we are in a really good position. We are in a really good position there too. You are right that it was a step back, but it was a step back that we had to take. And it's good that the feedback came, came from there and we got it. We got it fixed. I believe that our product-market fit is at a completely different level now than it was a year ago.

So one could say that the bottlenecks have been removed and now it's a matter of sales success.

Well yes, yes, it's about sales success. And then of course the fact that we are in Singapore. We are in such a partner-to-partner structure there that we also have a partner who is our distributor, through whom we operate, so there is our own sales work, which is of course the primary focus. To put the effort into that. And then there is also the success of this cooperation with the partner and getting it to work really well. So there is a bit of this kind of thing. There is sales work and then there is this kind of partner management and partner cooperation and both are being done, we have a really good team. A really good team in Singapore, so it's not. It's not too big, nor is it too small. It's a very, very efficient team, so we will see what the results will be during this financial year. So, you know. We'll see then. But it looks good there.

Did I understand correctly that you are making similar tweaks in Japan?

Yeah, in Japan the timeline is very different, because in Japan we have had a product on the market for a long time. And we have. It also shows in the revenue from there. It shows that the revenue hasn't grown much, but there is a loyal customer base there now, with that product revision we are aiming to get it on a growth track. And now the Singapore example gives a really good confidence that we can do this, because the product that is on the market in Japan has the exact same kind of engineer product problem as we had in Singapore, and now we have it. We are now able to fix it really quickly, since we have such good customer feedback. Then again from Singapore, that it's being done in Japan and there. Now it is progressing in such a way that during this current half-year we will get it finished there and now commercial activities are also already being done there. The commercial results from Japan will only start showing here. Then in our second half-year, because in Japan it is really. In a way, product updates can only be made once a year and that time is at the end of the Japanese financial year, i.e., around March-April.

Good. Let's take a final question then regarding funding. You clearly have faith in the commercial progress, but right now the situation is that cash is being consumed after all, so how do you view your cash sufficiency from the perspective of the cash flow inflection point? Do you believe that this current cash will be sufficient for that?

Yeah, well, this is. I look at this from the perspective of asking the question whether our current cash is such that we can get that commercial transformation done, and to that I answer yes, that's what it will mean. And now this current cash. So we have a two-year runway here. And now that runway changes very quickly if revenue growth is achieved and this net cash outflow kind of decreases. This situation changes really fast. What kind of financing arrangements might need to be made depends above all on this business growth and growing the business. We are. Our balance sheet is basically debt-free. We are starting to, get more deals, start winning cases. We will certainly also be able to build things using debt financing elements if, if, if needed in a situation where the business is growing at a furious pace. I would say that the financing question is mostly a positive problem at the point if, if the top line is going upwards at a fast pace, so our focus is on that and the financing situation is sufficient to get this commercial transformation done.

Thank you very much for the interview and good luck with closing deals! Thank you very much!