Tristel PLC

Good morning and welcome to the Tricel PLC investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand over to Chris Lee. Good morning, sir.

Good morning. Thank you. Good morning. Hi, my name is Chris Lee. I'm joined by my colleague Anna Vassel, our CFO, and it's a pleasure to be able to present the Tricel PLC's Auditor Results for 2026. I'd like to start by just drawing your attention to the disclaimer, which you can read at your leisure. And while you're doing so, I'd just like to tell you a bit about Tricel and what we do. We're a chemistry company who operates in the high-level disinfection space with a proprietary chemistry chlorine dioxide. Our whole mission is to prevent using our powerful biocell chemistry is to prevent the transition of microbes either from an object or a person to another. As I'm new to the business, this is my third month in the company, I thought I'd just do a brief introduction of myself. I've been in the med tech space for over 35 years. I started my career at Johnson & Johnson. where I spent 18 years across multiple specialty segments in both Europe, the US and Asia and ended up my career there running the Ethicon franchise across Europe, Middle East and Africa. Since then I've worked in multiple SME type of organisations across the globe and my most recent one was the CEO of Summit Medical which is a UK-based private equity-backed medical device group. This is also my third public company that I've worked for as a CEO or as a deputy CEO. I've had extensive experience, particularly in the US, around customers, distribution models and channels, and leadership of teams. And it's an absolute pleasure to be here as a member of the Tricel team. And although they're not my numbers, I'm delighted to present what's going to be an outstanding set of numbers for the business. With that, I'd just like to say that the board remains unchanged. Obviously, Anna joined the board a year ago, which just over a year ago when she joined the business. And I've just joined the board and the rest of the board remained as it was previously. And I'm grateful to them for their support and contributions to the business. I'd like to hand over to Anna now to talk about the financial performance. And in doing so, I'd also like to just thank the entire Tricel team for an outstanding contribution over the last 12 months to bring us to this point. Anna.

Thank you, Chris. Good morning, everyone. Let me tell you about two financial highlights. Our Tricel team has delivered an amazing year with a double-digit growth, 10% growth in top line. our revenues reached a record 51.1 million pounds and grew across the world in the UK our home market by 5% and overseas by 13% and America's sales tripled and of course we will spend more time on these figures in later slides our adjusted PPC grew by 15% to 11.7 million adjusted EBITDA to 15.7 million and we have reached a very high margin of 31% and adjusted EPS grew by 6% to 18.19%. In terms of cash, our operating cash flow reached 11 million, was up 8% over last year and resulted in a 16 million balance at the end of the year of cash and short-term deposits. We remain debt-free and we're planning to pay the final dividend of 9.23% per share which we will pay in December of this year. And that will mean that the total annual dividend will grow by 5% year-over-year. I will now spend a bit of time on key performance indicators, which show our continuous strong track record. This last year, again, as I've mentioned, we have grown 10%. This mostly came from volume, so 4.3 million out of 4.6 of additional sales came from volume, and the remaining, basically, from strife. That means that we've reached a 10-year CAGR of 11.26%. And in terms of cash flow, I've already mentioned the figures in the previous slide, but what you can see here is this continuous, strong growth, which gives us plenty of optionality for investments and progressive dividends going forward. Our profitability is very high with 31% of adjusted MPCA remains very well comfortably above our commitment of 25% margin. I will walk you through our summarized P&L, our summarized income statement here. I've already touched on the top-line growth, but what I would like to highlight here is that actually the 10% growth year-on-year looks even better when you look at the individual segments. So our medical device disinfection product grew by 11%, our surface disinfection by 27%, and it's actually our legacy product which decreased year-over-year. Our gross profit increased, so gross profit margin to 82%, that's reflecting the savings realized from bringing in-house the manufacturing of 308, which was completed and announced previously, and as expected, brought solid savings in the second half of the year, and of course will continue delivering those going forward. Our gross margin for medical device disinfectants grew to 85% because of that project, and our surface disinfectants margins grew to 61%, mostly due to volume. Our administrative and distribution expenses grew by 8%, and this is largely driven by increase in employees, with 18.8 million of our staff costs. That's related to increasing headcount, and as we've announced before, we continuously invested in commercial expansion, so we've brought sales heads into the organizations, and a few more sort of clinical focus employees as well, and we will continue doing this investment in 2027. Our depreciation, amortization, and impairment line you will see it increased to 3.5 million by 48%. And this is largely driven by a one-off impairment of some of the intangibles related to surface line. And that was 0.8 million. That brings us to adjusted profit before tax of 11.7 million, which is a 23% margin, very, very solid. And finally, the tax line. So you will see here we have the tax expense has grown from 1.8 to 3 million, by 69%. And this is largely driven by two things. Firstly, by a further reduction in patent cost benefit. and secondly, by reclassification of our IRDEC. So, in the past, the R&D Expense Credit was recognized on the tax line as a Redux Tax Liability, and currently it has been reclassified 1026 to Other Operating Income, so above tax line. And since we consider that the IRDEC is not truly dependent on Tristell's actions and it's just dependent on HMRC policy, we decided to adjust it out from our adjusted profitability measures. I will move on to Balanced KPIs, where you will see that our networking capital remains at very healthy ratios, at around 15%, and over the last two years, as we grew the business in total by 22%, the networking capital only increased by 16%, releasing a lot of cash into the business. Our return on capital employed remains very robust at 27% in last year, speaking to our high operational performance efficiency and our ability to create long-term value for stakeholders. And finally, our progressive dividend, which, as I mentioned, will increase by 5% and reach 14.91 pence per share in the year. I have a balance sheet slide here, but to be honest, I will spend very little time on it, because it really serves more as a reinforcement that we have a very healthy and strong balance sheet, which remains debt-free. We have seen 25% increase in cash and short-term deposits. Our liabilities remain quite low, and that gives us plenty of capacity to support our plant investment and growth initiatives. Now I would like to spend a little bit more time explaining where the growth came from. So UK, our home market grew by 5%, but similarly to the group level, the growth has actually been better when you look at the individual segments. So our medical device disinfectants grew by 8% in the UK, and 21% for surface disinfectants with the legacy products that's declining. When you look at Europe, Middle East and Africa, the overall growth was of 15% to 24 million, and that really came from a range of markets. So starting from Germany, which grew by 8% in medical device, the contamination products, despite emerging competition on the market. We go to Italy, growing by 16%, also in medical device decontamination primarily. And that market grew significantly despite the fact that quite a few tenders have been delayed, which means that most of the growth came from increased adoption among our existing customers and moving the products to the new departments, such as ENT and cardiology. In Italy, we have also seen first signs of increased dual-ULT usage following the clinical studies and publications around HPV transmission with the use of ultrasound devices. That's really clearly an area where our strong cooperation with the opinion leaders and work on clinical studies helps us to raise awareness around these issues and to really influence the clinical practice. If we move on to France, also grew double digits in both medical device and surface disinfectant. We've seen significant gains, especially in surface disinfectant portfolio, where we have seen in a few hospitals, where in difficult outbreak situations, we have chlorine dioxide products really outperformed competition and allowed us to transfer the cool surface disinfection practice to our products. Overall we see that surface disinfectant products globally have grown very strongly and what we see there is that they differentiate very nicely not only because of higher efficacy than competing products but also because of simplicity of use. So we have one contact time for all the different microbes while competition refers to different contact times for different types of microorganisms, which in practice means that it's quite difficult to use the product with full effectiveness. So we're really happy with development there. Our Middle East team has also performed very well with 24% growth year-over-year. And in APAC, we saw a similar performance to the first half of the year, where it was quite a varied picture. So in our mature markets such as Australia and New Zealand, we've seen quite flat performance over the last year with some competitive headwinds in Australia. In New Zealand, the medical device, the contamination portfolio actually grew slightly. However, the legacy product declined and sort of dragged the whole growth down. In Southeast Asia, Malaysia and Singapore grew very strongly, 21% and 16%. very happy with that performance. And if you look at Americas finally, in Americas we've reached 0.8 million in revenues. And I would like to spend a bit more time and explain the different revenue streams related to Americas Fitness. So first is the direct US product sale. That's the line where our newly launched OPH product is reported. And you can see really great growth there. So the 340,000 pounds is mostly consisting of the growth in OPH product. And the second line, which is the royalties line, that's related to Parker's sale of Streissel UMP. So these are our royalties that we receive on that sale, and that, of course, flows through our income statement at 100% gross margin. Our distributor sales in America, coming mostly from Canada and Chile, grew by 54%, and that overall meant that America grew 202%. And now I would like to ask to Chris, who will tell us more about the U.S. profile.