Alk-Abello As B Shs New

Hello everyone and welcome to this presentation of ALK HQ2 and first half year results. Thank you all for joining us. Let's turn to slide number two with an introduction to the speakers and the agenda. My name is Per Plotnikof. I'm head of investor relations. With me today are CEO Peter Halling and CFO Claus Steensen Solje. Peter and Claus will walk you through the quarterly highlights, markets, product trends and financials. After a brief strategy update, we will turn to the full year outlook. And as usual, we will end the call with a Q&A session. First, I'll hand you over to Peter to the highlights on slide three. Please go ahead, Peter.

Thank you, Per. And thank you all for taking the time to listen to this call. ALK sustained strong sales momentum in Q2, with double-digit sales growth across all regions, driven mainly by tablets and NFLAX's products. Søren Daniel Niegel, Claus Steensen Solje Tablet sales again exceeded 1 billion DKK and were up 22%. The tablets with the new pediatric indications for Carasax and Etulisax continue to perform well and were increasingly contributing to the inflow of new patients across key markets. We continue to see pediatric indications as a key growth driver for ALK for many years to come. There are still many opportunities in this space. In China, the local phase 3 trial of Acarizax is rapidly approaching the finishing line, with results expected in Q4 this year. If these are positive, we expect to see an important opportunity opening in China, which is the world's largest house dust mite market, and if approved, Acarizax could be launched in 2028. On NEFI, we made further progress with market access and launches. We have seen good progress with our total anaphylaxis business in Germany and we are off to a promising start with NEFI in Canada. I'll be back to this shortly, but I'll mention revenue contribution from NEFI in the quarter was still relatively modest and came primarily from Germany and the US. This reflects the early stages of the launches and particularly the situation in the UK where prolonged formulary approvals and administrative processes continue to impact the full rollout of NEFI. The ongoing reform of the UK healthcare system is impacting the pace of market access progress, but nevertheless, we remain very confident in the opportunity in the UK. In June, we presented detailed data from our successful Phase 2 peanut tablet trial at the IAACI Congress in Istanbul. The Congress was attended by more than 7,000 healthcare professionals, and we saw strong interest from the scientific community in our progress. Feedback on our peanut trial results was very encouraging, and we still expect to initiate phase 3 development before the end of 26, and planning is progressing well, including conversations both with EMA in Europe and FDA in the US. Based on the momentum for tablets, we are updating the revenue outlook. The update also reflects greater transparency on pricing and rebates. After Germany passed new legislation increasing the mandatory rebate on prescription drugs from 7 to 15.5%. This change will take effect from 1 January 2027. It is not expected to have any impact in 2026. and we remain confident in the strong growth outlook in Germany and globally for the years to come. Germany is ALK's largest market and it accounted for approximately 25% of global revenue in 2025. Hence, we are working hard to mitigate the financial effects of the rebate increase next year. The new scheme came as no surprise, although the size of the increase was slightly higher than what we had indicated earlier. Thank you for watching! While not all details are yet in place, including potential exemptions from the rebate increase, it is, however, obvious that healthcare providers cannot and should not benefit twice from the rebates, and will therefore seek to carefully rebalance our existing agreements and contracts with the healthcare providers. The rebate increase does not change LK's long-term financial ambitions and will still target more than 10% growth in the years ahead. Our business platform and market positions are robust and Germany remains an important growth market for ELK. We will continue to execute on our strategy and push forward for strong results in the coming years. Earlier today, we announced the appointment of Jacob Glinting as the new head of R&D. Jacob joined ALK in 2007 and has worked extensively in the interface between commercial and science. He has been a key architect in several of ALK's strategic developments, including the partnerships with Turi, Abbott, Gensai, and Ares Pharma. He has been deeply involved in the pediatric expansion and strategy development. Few people know our patients better than Jacob. His background in R&D and with a PhD in vaccines and immunology makes him an ideal leader to drive our innovation efforts. Jacob and the team will do so under the Allergy Plus strategy and secure a strong bridge to LK's commercial operations, including our long-term targets. His job will be to balance core business growth with expansion in existing and new adjacent allergy areas through our own pipeline, partnerships, and business development and licensing. Now I'll hand it over to you, Claus, for the regional trends on slide 4.

Thank you so much, Peter. So let's look at the sales. All sales regions delivered double-digit growth in Q2, and Europe continued to lead the development. European revenue was up 19% in local currencies, driven particularly by tablets and anaphylaxis products. The performance was sustained. Q2 sales growth was identical to growth in Q1. Tablet sales was up 27%, mainly on higher volumes, linked to the strong inflow of new patients during the 25-26 initiation season. The new pediatric and adolescent indications for Akaisax and Etulasax remained strong, contributing to growth, whereas the contribution from Grasax was more modest. Tablet sales grew strongly in most markets in Central and Western Europe, including Germany and France. High sales growth, although from a lower base, was also achieved in Eastern European markets such as Poland, Slovakia and the Czech Republic, as well as the UK, where Kaizax and Itulasax obtained general reimbursement for adults used last year. I can add that just a few days ago, Akaisax and Etulesax for pediatric use received a positive endorsement from NICE in the UK. Of other positive news, I can tell that in Sweden, the government recently introduced a new national allergy strategy calling for more preventive, effective and equal allergy care throughout the country. We expect these new guidelines, once implemented regionally, will support more patients in treatment with AIT. Combined skid and slit drops sales in Europe increased by 4%, with skid growth coming from both venom and non-venom subsegments in Central Europe. Sales of slit drops, primarily marketed in France, regained some momentum in Q2 after a weak start to the year. Sales of Anaphylaxis and other products in Europe increased by 28%. Growth for our Anaphylaxis products alone was 30%, which also became a key driver behind the 20% market growth in Europe. Our Jext Auto Injector continued to benefit from tender winds, strong commercial execution, as well as intermediate competition, supply issues in certain markets. And the overperformance by Jext more than made up for the slow uptake of Euronefi in the UK, as mentioned earlier by Peter. Revenue in North America increased by 13% in local currencies, based on continued double-digit growth in both the US and Canada. Canadian tablet sales remained an important growth contributor, reflecting an increasing number of customer touchpoints and solid demand, particularly for the three-tablet Etulatec, which again was boosted by the pediatric indication. Tablet sales in North America were up 17% with double-digit growth in both Canada and the U.S. Skit sales was flat, while revenue for nephrolaxis and other products increased by 22%. The increase was linked in part to the cost compensation from AIS Pharma related to the co-promotion of NEFI, as well as sales of prepen, diagnostics and other products. In international markets, revenue grew by 18%, mirroring increasing product shipments to China and Japan. Skid shipments to China increased compared to last year, when shipments were impacted by the renewal of ALK's import license. In-market sales growth temporarily slowed down during the transition to our new partner Gensai, but a new sales setup is now in place, and in-market sales are expected to pick up in the second half year. Tablet revenue returned to growth and was up 9% in international market. Japan delivered double-digit growth from product shipments and royalties. Supply from our Japanese partners' new API manufacturing facility for the Cetacure tablet has reached the market, and in-market sales at both Cetacure and Mitacure accelerated in Q2. We remain confident that ALK's revenue from Japan will pick up further in the second half year as planned. Now let's continue to slide 5 with the product lines. Global tablet sales grew by 22% to just over 1 billion DKK. Sales exceeded the billion DKK mark for the second consecutive quarter, well supported by the pediatric rollout. Europe led the way with 27% tablet growth, followed by North America with 17% growth and international markets with 9%. Combined skid and slid drops sales were up 7% to 515 million DKK, mainly driven by the ramp-up of skid shipments to China. Sales of anaphylaxis and other products increased by 26% to 267 million DKK. Sales were boosted by JEXT, with a growing but still modest contribution from NEFI. Now let's turn to slide 6 and the half-year financials. Half-year revenue increased by 18% in local currencies to 3.6 billion DKK on double-digit growth across all sales regions and product lines. The gross profit of 2.4 billion DKK yielded a gross margin of 68% off from 66% last year due to higher sales volumes, production efficiencies and changes to the sales mix with a higher proportion of ALK-branded products with higher margins. Capacity cost increased by 22% in low occurrences to 1.4 billion Danish kroner, driven by significant investment in current and future growth drivers, including product launches, commercial infrastructure and R&D, not least the Peanut and LK014 programs. Sales and marketing cost increased 25%. Six percentage points of this increase was due to the U.S. NAFI co-promotion cost and the marketing fee to our Chinese partners. These items had very limited impact on our numbers last year. The operating profit improved by 20% in local currencies to more than 1 billion Danish kroner. The EBIT margin was unchanged at 28%, as progress on the gross margin was offset by a slightly higher capacity cost-to-revenue ratio, which we had guided for. The net profit was 776 million Danish kroner, up from 617 million DKK a year ago. Free cash flow improved to 889 million Danish kroner driven by higher earnings and changes to working capital, including timing of payables and lower capex investments. Free cash flow was higher than expected, which is also why we have notched the full year assumption for free cash flow up. The net debt to EBITDA ratio remained negative at 0.6%. All in all, another strong quarter and solid financial position with high growth and margin resilience despite extra allocation of funds and resources to growth initiatives. Now let's continue to slide 7 for the execution of the Allergy Plus strategy. Over to you, Peter.