Medacta Group S.A.

Good afternoon. This is the Coruscall conference operator. Welcome and thank you for joining the Medacta full year 2025 results conference call. As a reminder all participants are in listen only mode. After the presentation there will be an opportunity to ask questions. Should anyone need assistance during the conference call they may signal an operator by pressing star and zero on their telephone. At this time I would like to turn the conference over to Mr. Francesco Siccardi, CEO of Medacta. Please go ahead, sir.

Thank you. Thank you very much. And good afternoon or good morning. Welcome to Medacta full year 2025 results conference call. The slides of today's presentation can be found on the Medacta Investor Relations website, along with the media release. I would like to remind all participants that the presentation includes forward-looking statements which are subject to risk and uncertainties. Listeners and readers are therefore encouraged to refer to the disclaimer on slide two of today's presentation. So after those remarks, I will now turn to slide number four of The presentation with the highlights of today's publication. We did report already our revenues, 684 million with 18.5% growth in cost and currency. The EBITDA margin in constant currency hit 29% and 27.9 in euro with an increase of 19.1% year over year. Medacta's net profit increased as well, 31% year over year to 95.5 million euro. And the board of director is proposing a dividend per share of 1.1 Swiss francs with an increase of almost 60% year over year. We did commented already on the top line revenues, so I will fly through the next slides relatively quickly. As we said, 18.5% in cost and currency in 2025. Now bringing our CAGR for the last four years, 2021 to 2025 period at 17.4%. A very, very strong performance, significantly outgrowing the market more than four times. If we move to slide number six, we just reiterate again which are the key pillars of our above-market growth. We clearly focus on differentiating innovation with the aim of really impacting and improving patient outcomes in a healthcare sustainable way. We supported the introduction of this innovation in the market with a strong focus on medical education and training for surgeons worldwide. And as we needed to expand our sales force in different geographies, the constant hire of new talents across all the different business lines and the different geographies. If we move to slide number seven, we can repeat again the growth rate we experienced in the different geographies. We did grow 15.2% in the EMEA region, 19% in North America, 23% in Asia Pacific, and 42% in Latin America. We moved then to the business line growth contribution on slide number eight. Our hip grew almost 12%, knee slightly above 20%, extremities at 46%, and spine at 12%. All those growth rates are in constant currency. To be noted that the knee business line surpassed the hip business line for the first time in 2025, knee representing 42% of our revenues, hip 40%, extremities 10%, and spine 8%. Digging a little bit into the different business line, the HIP definitely benefit from our focus on minimally invasive procedures, in particular, anterior minimally invasive surgery, which has been our flag product for many years now and is now reinforced by additional platforms introduced into the market. And on the next slide, number 10, we can see the very strong performance of our knee, growing at almost 21%, clearly benefiting from Medacta focus and introduction of the concept of kinematic alignment. Medacta has definitely been The first company to push this concept in the market, and we are today still the only company with a dedicated and specifically designed knee, the GMK Spherica, which is clearly pushing our sales in a very significant way. If we move on slide 11, we can see our performance in spine, slightly above 12%. Here as well, we focus on innovative products, mainly associated with our MySolution platform. And the focus is clearly on personalized medicine with techniques and technologies like the Nexstar Spine or the Rod Optimizer. Last but not least, our extremities business line on page 12 with a very good 46.2% growth year over year. we did a benefit as well from last year acquisition in the sports medicine sector with the parkus move and the constant expansion of our shoulder arthroplasty platform associated with our next technology as well i would now uh ask Corrado Farsetta to go into the margins and into the P&L. Thank you.

Thank you, Francesco. Moving to slide 14. Yeah. Let me now review the financial figures of 2025, and the gross profit increased by almost 15% to €459 million, reflecting the strong growth in revenues. Operationally, we continue to deliver efficient improvement, supporting the resilience of our margins, which remain solid at more than 67%, despite a negative effects impact of more than 1%. Moving to slide 15, here you can see three lines. As usual, the gray line shows the long-term trend of our profitability, excluding translational effects, since 2019. The yellow line represents our reported ABDA margin, and the red line shows the ABDA margin in cost and currency for the year, which is then comparable with 2024 performance. As shown by the red line, in 2025, the adjusted ABDA margin reached 29% in cost and currency with an expansion of about 2% versus prior year, confirming the continued improvements in profitability and the strong operating leverage of this year and in general of the company over the years. Despite the negative effects impact of around 1.1%, the reported EBDA margin was about 28% expanding by 0.8% versus prior year. More broadly, looking at the long-term trend based on 2019 FX rates, which is the gray line, our adjusted EBITDA margin highlight the structural and significant margin expansion achieved in recent years. Moving to slide 16, here we see the net profit for the period reached 95.5 million compared to 73 million last year. which is an increase of more than 30% year-on-year. And this includes also the one-off effects related to the acquisition completed at the beginning of 2025. Moving to slide 17, the strong growth of the company has required and continues to require additional instruments, facilities, and production capacity. And this is where our investments are focused. Total capex amounted to 137 million last year, mainly related to instruments, as always, 78 million, land, buildings, and production capacity, 35 million, and research and development for 15 million. Investments in facilities and production capacity reported are under other tangibles. include the expansion of our production site here in Vincate and new fully automated warehouse and logistics hub in Italy. Moving to slide 18, you can see here our robust cash flow generation. In 2025, the cash flow from operating activities reached 153 million, reflecting the strong profitability and the solid cash generation of the business, thanks to focus on the effective usage of all our assets. This allowed us to largely self-finance our investment program for 137 million, as just discussed, and as a result, the free cash flow increased to 16 million in 2025. Moving to slide 19, Our balance sheet, as you see, remains very solid with the leverage in 2025 down to 0.88 times the ABDA of the company. Over the past five years, you see the red line is the average ratio, which was around 0.94, confirming our disciplined financial profile and the strong capacity to support our growth. The last slide from my side is the dividend per share. As Francesco said, the Board is going to propose a dividend of 1.1 per share, representing an increase of about 60% compared to the prior year. And with this, I will now hand over to Francesco for the outlook 2026, a midterm, and some final remarks.