Alk-Abello As B Shs New

Hello everyone and welcome to this presentation of ALK's Q2 results and the revised full year outlook. Thank you all for joining us. Let's turn to slide number two with an intro to the agenda and the speakers. My name is Per Plotnikoff, I'm Head of Investor Relations and with me today are CEO Peter Helling and CFO Claus Steensen-Sølje. We'll first be sharing a couple of highlights from Q2, followed by a closer look at market and product trends, as well as half-year financials. We will then provide an update on recent progresses and on the pediatric agenda, our NEFI partnership, and other strategic priorities before we present the updated full year outlook. As usual, we will end the presentation with a Q&A session. To get started, I'll hand over to Peter for slide three for the highlights. Please go ahead, Peter.

Thank you, Per, and thank you all for joining this call. Commercial execution of the key strategic initiatives, including the children launches, was on top of our agenda in Q2. These initiatives started contributing to sales growth in Q2, although they are still all in early stage. The initiatives have come off to a good start, and this bodes well for ALK's ability to deliver sustained profitable growth going forward. In Q2, the ongoing rollout of our Carisax tablet for children with HSDM allergy is progressing well and have continued to exceed expectations. We also started the launch of the Tulisax tablet for children and adolescents with tree pollen allergy in European markets and Canada to secure that tablets are available for the coming pollen initiation season. Moreover, we launched the Euronefi adrenaline spray in Germany, the first EU market entry. Additional launches are lined up for the second half year, including the important UK market, where Euronefi was recently approved. Across markets, the initial feedback from stakeholders is very encouraging. In the US, we entered a co-promotion deal with ARS Pharma, enabling us to establish a new pediatric sales force to promote both NEFI and, in the future, ALK's respiratory tablets. Around 60 salespeople have now been onboarded, trained, and are fully deployed in the field. Market expansion also continued in other geographies. I'll detail this later. Q2 results exceeded expectations. Back in Q1, we expected revenue growth to soften temporarily due to lower shipments to international markets and destocking at European tablet wholesalers. Instead, we saw a 12% revenue growth driven by adrenaline autoinjectors and an improved momentum for the Acarisax tablet in the house dust mite AIT market in Europe. Q2 earnings improved by 41% in local currencies to 375 million Danish kroners, yielding an EBIT margin of 25%. Progress was driven by sales growth, gross margin improvements and last year's optimization and prioritization initiatives, which generated savings of more than 300 million DKK throughout 2025. These savings are allowing us to pursue strategic priorities more rigorously this year without jeopardizing earnings improvements. We also expect the improved sales momentum to continue into the second half year. Consequently, we upgraded the full-year outlook last week. We now expect full-year revenue to grow by 12-14%, while we maintain the EBIT margin outlook as we intend to allocate additional funds to growth initiatives. Remain optimistic about the remainder of the year, despite global unrest and turmoil from tariff wars. With this intro, I'll hand it over to Klaus and the market trends on slide 4.

Thank you, Peter. Let's take a closer look at the performance in our sales regions. Our main region, Europe, reported 13% growth. Revenue exceeded our expectations, driven by better than expected sales of anaphylaxis products and tablets. tablet sales in Europe increased by 17% on broad-based growth across countries. We saw reduced impact from price and rebate adjustments, meaning that growth was mainly driven by the plus 10% increase in new patients during the 2024-25 initiation season, and growth was reinforced by a steady inflow of new Akaisax patients in France, Germany, Eastern Europe, and other markets. The new pediatric indication for Akaisax contributed positively to revenue growth, while the contribution from the new Itulasax children approvals was modest, reflecting the early stage of the ongoing launches. Q2 tablet sales growth was similar to Q1, even though the impact from inventory build-ups at wholesalers in markets like Germany and France is estimated to have declined in Q2. This highlights the improved momentum for tablets in Europe, and we expect this momentum to continue into the second half year. Combined sales of skid and slit drops grew by 1%. Slit drop sales continued to increase in France, whereas skid sales fell short of expectations with a modest decrease. This decrease was partly due to fewer new patients and partly due to a reduced impact from price and rebate adjustments compared to previous years. Sales of other products were up by 51% in Europe, led by a 62% growth in the anaphylaxis portfolio. Sales of our adrenaline auto-injector JEXT benefited from strong commercial execution and favorable market dynamics, including supply issues from our competitors. Revenue also included minor UNEFI revenue from pipeline filling ahead of their launch in Germany. Revenue in North America increased by 17%. The US sales continued to bounce back from last year's stagnation as we benefited from a range of initiatives to rebuild growth across product lines. The tablet business in Canada also did well with growth rates exceeding those in the USA. Tablet growth in North America grew by 32%. The new pediatric indication for Adacta, our house dust mite tablet in the U.S., led to a higher uptake, especially among allergists and, to a minor extent, new pediatric prescribers. The new pediatric indications also contributed to growth in Canada. North American sales of SkidBulk increased by 2%, while sales of other products increased by 23%. Moving to international markets, revenue grew modestly by 1%, reflecting phasing of product shipments to China. After the recent renewal of ALK's import license, we resumed skid shipment to China in Q2, but shipments, as expected, were at a lower level than last year, so skid revenue in the region decreased by 20%. But Chinese in-market sales of skid continue to grow by double digits based on existing wholesaler inventories. Tablet revenue in international market was up by 9%. The primary market, Japan, delivered low double-digit revenue growth from royalties and shipments, although capacity constraints still prevent our partner, Tomei, from fully meeting demand. We expect Tori to start operations of the new API manufacturing facility in Q3 with a view to roughly doubling capacity and then incrementally increase market supply of CETA Cure tablets. Now let's turn to the product lines on slide five. Tablet revenue was up 16% on good performance in all three sales regions. Growth was predominantly driven by higher volumes linked to more patients. Revenue from skid and slit drops was down 1%. Performance was impacted by fewer shipments to China and the decline in European skid sales. These factors was then partly offset by growing slit drop sales in France and increasing skid bulk sales in North America. Global revenue from other products increased by 30% to 215 million Danish kroner. The Anaphylaxis portfolio led the way with 56% growth. JEX did very well in Europe, and NEFI also contributed, including a minor estimated cost reimbursement from AIS Pharma related to the new co-promotion agreement in the US. We also saw good performance from other products in the US, including PPN and life science products. After these quarterly updates, let's move to the half-year results on slide 6. Revenue was up 12% in local currencies and exceeded 3 billion Danish kroner. Topline growth mainly reflected growth in tablet and text sales. A gross profit of 2 billion Danish kroner yielded a gross margin of 66%, an improvement of 2 percentage points. The increased mirrored volume growth changes to the sales mix and various production efficiencies, partly offset by higher input cost. Capacity cost decreased by 1% in local currencies to 1,167 million Danish kroner following last year's optimization and prioritization initiatives, where we downsized operations in certain markets and further adjusted the organization in China. R&D expenses grew by 8%, while other capacity costs declined, so that the overall capacity cost to revenue ratio decreased by 5 percentage points to 38%. However, please also bear in mind that some phasing of activities contributed to this development. In the second half of the year, we plan to increase our spending linked to the key product launches. The operating profit, EBIT, was up 46% in local currencies to $844 million, raising the EBIT margin from 21 to 28 in the first half year, despite a little currency headwind. Progress was driven by higher sales, gross margin improvements and lower capacity costs. No one-off cost to optimization efforts were recognized opposite to last year where one-offs amounted to 38 million Danish kroner. Free cash flow doubled to 546 million Danish kroner as higher earnings offset planned changes in working capital and investments to build up tablet production and upgrade legacy production. Some of the cash generated was used to repay loans, bringing the net debt to EBITDA ratio down to 0.1, highlighting that we do not have any debt at this stage. The cash flow also included 5 million USD in milestone payment to AIS Pharma related to the first commercial sales of Eurodenefi. All in all, the best half-year performance so far. So with this, back to you, Peter, and slide seven for an update on the strategy execution.