Galderma Group Ag U/Adr

Good day and thank you for standing by. Welcome to Galderma's conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session with financial analysts. To ask a question during the session, analysts connected on the teleconference call will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Emil Ivanov, Head of Strategy, Investor Relations and ESG to introduce the call. Emil, please go ahead.

Thank you, Sarah. Welcome to Goderma's Half Year 2026 Financial Results Call. The press release along with Goderma's financial statements were published at 7 a.m. Central European Summer Time today and can be consulted on our corporate websites at any time. Today's presentation slides as well as a recording of the webcast will be made available on our website after the call. Please be advised that today's presentation contains forward-looking statements which will be treated with appropriate level of caution as detailed on the slides. Let me now introduce today's half-year 2026 financial results webcast. Dr. Flemming Ornskov, CEO of Doderma and Luigi La Corte CFO, will provide a performance update and discuss the financial results and outlook for the full year. After the presentation, Flemming and Luigi will be available to answer questions from financial analysts before Flemming provides his final remarks to close the webcast. With this, I'd like to invite Flemming to start the Goldermas highlights for the first half of 2026. Flemming, over to you.

Thank you, Emil. Good morning, good afternoon, and welcome to Goldermas first half 2026. Financial Results Webcast. I'm pleased to be here today to discuss Gilderma's continued strong growth trajectory. Capitalizing on another year of opportunities, we're progressing on our ambition to become the undisputed dermatology powerhouse. I would like to thank our teams around the world for their dedication, hard work, and relentless commitment to strengthening our leadership in dermatology and continuing to outperform the market. Galderma is on a highly attractive growth journey. And as many of you know, we were recently selected for inclusion in the Swiss market index. Expected to become effective in September, the inclusion in Switzerland's leading blue chip equity index marks another important milestone in our journey as a publicly listed company. For the first half of the year, Galderma delivered record net sales, surpassing three billion US dollars for the first time in the first six months of the year. Net sales year on year growth was 24.6% at constant currency with double digit growth across all product categories and geographies. With a core EBITDA margin of 25.6%, margin expansion was ahead of initial expectations. Core EPS growth was also significant, up 68.5% year on year. We are raising our net sales guidance for the full year based on this stronger than anticipated trajectory especially in dermatological skin care, therapeutic dermatology, and newer modulators. We now expect 19 to 21% net sales growth year on year at constant currency. We are also confirming our core EBITDA margin guidance for the full year of approximately 26% at constant currency with the intent to continue investing behind growth opportunities and the second half of the year. Let's now look at our net sales performance in more detail. For the first half of 2026, Del Dorma delivered 3.1 billion US dollars in net sales. Growth was predominantly volume driven, complimented by favorable mix effects. Despite a competitive market environment, the business delivered a positive price contribution during the period Excluding the anticipated growth to net impact from Nibiru. Growth was broad-based with all our top 10 markets growing, of which nine grew double digits. Our market performance and outperformance continues to be driven by commercial excellence, innovation, and deeper penetration across global markets. International, our larger reporting geography, grew 19% at constant currency with double-digit growth in each product category. Our momentum remains strong in highly attractive and largely under-penetrated markets. The US, up 32.3% at constant currency, delivered net sales growth across all product categories. This growth momentum was particularly strong in injectable aesthetics and therapeutic dermatology, driven by Nimluvia. With that, let's turn to the performance and key highlights of each of our product categories. In injectable aesthetics, with net sales of 1.4 billion US dollars, up 12.1% at constant currency, we continue to outpace the market across geographies in both neuromodulators and in fillers and biostimulators. The U.S. phasing effect favorable in the first quarter unwound in the second quarter. Neuromodulators deliver net sales of 826 million U.S. dollars, up 13.4% at constant currency. U.S. shipment phasing specific to the second quarter is expected to benefit the third quarter of the year. Fillers and biostimulators achieved net sales of 611 million U.S. dollars representing growth of 10.5% year-on-year at cost and currency despite continued softness in the fillers market. Sculptra, meanwhile, continued to grow double digits in both international markets and in and the US. Executing on our new modulator portfolio strategy, we continue to gain market share in both the US and international markets. Dysport continue to grow in the US and in all top international markets with particularly strong performance across Asia and Latin America. Local investments in healthcare professional engagement and education continue to drive market share gains with outstanding performance in the second quarter in China and in South Korea. In addition, in Europe, including markets where Ralphie Des has already launched, this part sustained double-digit growth. Meanwhile, Ralphie Des continues to build momentum in international markets for which healthcare professional feedback continues to be very supportive. The second quarter saw launches in three additional markets, including in Hong Kong, our first Asian markets. We continue to advance regulatory reviews as we steadily build the broadest and most innovative portfolio in injectable aesthetics supported by one of the industry's most extensive global commercial and educational footprints. Our strategic ambition is crystal clear to become the global leader in injectable aesthetics. Neuromodulators are an important part of that strategy. Over the past several years, we have invested significantly in both R&D and in manufacturing capabilities in this area. Rafides is an internally discovered and developed innovation and is already approved in 33 markets with additional regulatory filings underway. As announced on July the 1st, Galderma received a complete response letter from the US FDA addressing remaining observations on our manufacturing side and on analytical method organization and optimization. This is not uncommon for complex biologics and manufacturing facilities in this space. Approval timelines in the US for newer modulators have generally become longer over recent years. Since 2018, Every new botulinum toxin product reviewed by the FDA has received at least one complete response letter, be it newcomers or the industry's most experienced players. I want to reiterate that these observations do not relate to the safety or the efficacy of the product. Looking ahead, we remain fully committed to resolving these topics promptly and to continue working constructively with the FDA. Advancing Rela Botulinum Toxin A in the U.S. remains a top priority for us. Meanwhile, we continue to drive strong growth and market share gains with Dysport in the U.S. We're excited to be pioneering the next generation of newer modulation. We remain confident in the underlying science and the long-term strategic importance of Ralphides to our injectable aesthetics portfolio. In light of our strong momentum from neuromodulators in both international markets and in the US, we do not expect the US complete response letter to impact our ability to deliver on our midterm guidance as updated earlier in March. In fillers and biostimulators, we continue to advance our portfolio and geographic expansion Supporting ongoing market share gains in international markets and in the U.S. First, we keep scaling recent launches. This includes sculpture in China, which continues to significantly outpace a fast-growing market. For Restylane, this includes investments in education and training to drive further adoption. For example, behind new indications in the U.S. for the chin and for temples. Second, we keep rolling out new technologies in our fillers portfolio. This includes the further expansion of our Restylane Skin Booster SmartClick syringe, now launched in China, and the third approval for Restylane Shape, now approved in Thailand, for chin augmentation. We keep expanding our biostimulators portfolio in new markets. This includes launching Sculptra in Indonesia, approval to launch in India later this quarter, as well as a further approval for body indications in Australia. Beyond our global leadership position with Sculptra, we keep investing in innovation and have made progress with two clinical stage biostimulator assets for our long-term growth. We keep advancing Our clinical development programs while also exploring external opportunities to further extend our leadership in aesthetics. Moving to dermatological skin care, we maintained our strong growth momentum across our flagship brands, Cetaphil and Elast. with net sales of 848 million U.S. dollars, up 16.4% a constant currency, we significantly outpaced the market. As anticipated, growth in the first house was strong, benefiting from a lower comparable base in the period. We continue to grow in both the U.S. and international markets with double-digit growth for Cedarville in fast-growing international markets and for Alastin, in both geographies. E-commerce remains the fastest growing channel supported by our digital first execution. We are also capturing growth opportunities globally through focused execution, through innovation and through portfolio synergies. Our momentum remains particularly strong in fast growing international markets, especially in Asia. On this slide, we're showcasing Cetaphil in China as it continues to deliver outstanding growth. We had the largest online share gains for the beginning of the year among top dermatological skincare brands. We also capitalized on local shopping events to outperform the market online. In the second quarter, this included a highly successful 618 campaign with a particular focus on expanding our presence in the face segment where we have historically been under-penetrated. We also continue to scale our innovations globally, extending their reach and impact across markets. In the US, this includes Cetaphil Skin Activator, one of the two largest US launches in the hand and body segment among dermatological skincare brands. Elastin, which continues to outperform the physician dispense market, including the strong uptake of its two recent launches with TriHex technology plus new great technology. In international markets, among many, these include Cetaphil Baby in India, where we are building leadership in the premium baby care segment, driving significant growth. Elastin also continues its international expansion, which now includes launches in Japan and in Taiwan. Elastin is a great example of a strategic bolt-on M&A. We'll continue to build on that success while also exploring other potential external opportunities. Moving now to therapeutic dermatology, net sales were 848 million US dollars, up 67.9% at constant currency. Growth remained very strong, driven by the ramp up of Nemluvio, which continues on its successful global launch trajectory. Nemluvio net sales for the first half of the year were 433 million US dollars, For the first time, Nemluvio contributed more than half of Therapeutic Dermatology's net sales overall. The US continues to represent the vast majority of sales, which we'll discuss shortly. In international markets, the launch trajectory continues to be even stronger. At the same time, regulatory reviews and approvals for Nemluvio continue to progress, including recent approval in Brazil for both atopic dermatitis and pericardial nodularis. We've also secured additional reimbursement wins in key international markets that support broader patient access. Performance was complimented by higher than expected growth from the mature therapeutic dermatology portfolio globally, up 10% at constant currency for the period. We saw positive growth from geographic expansion and lifecycle management of molecules with benefits also from delayed generic entries. Nemluvio is on a strong global trajectory for which the U.S. remains our largest opportunity. In the U.S., Nemluvio's market share in paid new patient stock, known as NBRXs, was trending at about 42% in periglinal nodularis and about 9% in atopic dermatitis from mid-June to early July. Underlying demand remains strong. In the second quarter, the majority of U.S. patients initiating treatment continue to be new to biologics across both indications. To support growth, we keep investing behind healthcare professional engagement and supporting efforts for strong reimbursement access. This represents a strong achievement and we look to our internal and external opportunities to further complement our growth trajectory in this segment. In the US, we also launched different epidural acne gel over-the-counter. This milestone represents yet another example of Gilderma's unique integrated dermatology strategy. Here, we leveraged our consumer go-to-market expertise to support this prescription to over-the-counter transition in acne care. Driven by strong science and execution, including support from major retailers, the uptake was stronger than we initially expected. The examples I've highlighted across our three product categories once again demonstrate the breadth of our growth opportunities and the significant potential we have to continue outperforming in our market. With that, I'm pleased to hand over to Luigi who is now fully on board to provide more detail on our financial performance and on our outlook.