Bactiguard Holding AB (publ)

Thank you, Operator, and welcome to the presentation of Back to Guard's fourth quarter as well as the full year 2025. Our CFO, Patrick Buck, and I will go through the presentation together, and at the end, there will be time for your questions. Let's start with some high-level comments on the quarter and summarize 2025. Patrick will go into more details on the financials later in the presentation. we closed the year with a great Q4. Total revenues increased by more than 4% when excluding the negative effect of currency. Given our substantial US dollar exposure within the licensed business, the weaker dollar does continue to impact our revenues negatively. The main driver for both the fourth quarter and full year on revenues and EBITDA was the updated agreement with Zimmer Biomet in December. I will come back to how this new agreement reflects the solidified collaboration between Back2Guard and Zimmer Biomet a bit later. The strong finish resulted in stable license revenue for the full year, again, excluding the currency impact. We achieved this despite the fact that the 2024 comparison year included exclusivity revenues from the now terminated agreement. Total revenue decreased in 2025, but thanks to our new cost base and continued cost discipline, EBITDA continued to improve in the year. As we close out 2025, I would like to reflect on the strategic steps we have been taking throughout the year to advance our transition and shape the back to guard we are becoming. We are now a more focused and better aligned organization with our operations increasingly structured to support our new business model. That said, we do remain in the midst of our transformation and meaningful changes take time. Let's review our progress in line with our strategic pillars. To advance in licensed partnership, we have further strengthened our existing partnerships with both BD and Zimmer Biomet. We have refined our joint approach to collaboration and aligned our ways of working accordingly. I will explain more about each of these partnerships in more detail later. Development of new partnerships plays a key role in executing on our strategy. Our efforts have generated encouraging signals, and we have seen solid progress across an expanding range of early stage initiatives. We have continued to invest in our key knowledge areas with a particular focus on regulatory expertise related to the coding technology, as well as evaluation of new materials and applications. Continued data generation with back-to-guard technology is critical for market validation, and clinical studies in collaboration with our partners are proceeding according to plan. In the wound management portfolio, our strategic focus has been on hydrous and aqua, where we have strong growth. We see customer demand across the total portfolio and therefore include investments such as MDR regulatory transitions that will allow us to continue to drive stronger growth across product categories going forwards. In our licensed business, we focus on therapeutic areas with meaningful infection rates, creating a critical unmet need for effective infection prevention solutions. Our selected strategic areas, orthopedics, cardiology, neurology, urology, and vascular access are associated with infections that can lead to poor patient outcomes, severe complications, and in some cases, death. while also driving significant costs for healthcare. These areas offer the strongest potential for both enhanced and future licensing partnerships. I previously highlighted our progress in business development, and I want to emphasize our broad pipeline of potential new licensing partners, now including, as of this past year, two additional therapeutic areas of cardiology and neurology. At conferences that are new and highly relevant to us, we have found great interest from companies with applications at risk for infection in these areas. For example, we recently attended NUNS, the North American Neuromodulation Society Conference, and earlier TCT, a conference for interventional cardiology. While our discussions are still in an early stage, we have confirmed shared views of infection prevention relevance in key application areas across all of our therapeutic areas. Even though we are very encouraged by the early stage testing currently underway, it is important to emphasize that bringing MedTech innovations to market is a long-term process typically taking several years from initial testing to commercialization. These initial advances reinforce our confidence in the future value that can be created by leveraging our technology. If we dive into our commercial stage partnership with BD, the collaboration has advanced steadily throughout the year. We continue to support the market transition throughout the value chain, for example, through technology training for distributors and joint participation in conferences and sales activities. This particular photo with both back to guard and BD representatives was taken at the Swedish Urology Conference of the Swedish Urological Association and the National Association for Urology Nurses in early October. In India, where we have previously marketed our own catheters, BD launched its back to guard coded catheters earlier this year. The Indian market offers significant potential due to major challenges with healthcare associated infections. and we continue to support market penetration there. At the same time, we are preparing for other upcoming market transitions. At the end of last year, BD received its CE mark that enables additional launches, including in the European market. We remain fully aligned with BD on jointly driving growth of the back-to-guard coded Foley catheters business. As stated before, our extraordinary Q4 results were primarily driven by the updated trauma license agreement with Zimmer Biomed. The update signed in December reflects the mutual understanding to align our contracts around the ZNN back to guard coded trauma nail system and to reflect the ongoing or imminent market activities, the current scope of our collaboration. I want to emphasize that this does not preclude our ability to collaborate outside the areas covered by the revised contract. However, advancing to a later stage in such processes will require additional agreements. The updated license agreement now covers non-exclusive rights to Europe, selected markets in the Middle East and Africa, and Japan. BactiGuard regained the remaining global rights and now has the ability to form future orthopedic trauma partnerships, either with Zimmer or other companies. Under our newly re-cemented partnership, the commercialization of ZNM BactiGuard continues across Europe and in Middle East markets. Today, we have a strong relationship with Zimmer Biomet supported by ways of working that foster our long-term collaboration. The ZNN back-to-guard infection prevention solution remains a part of Zimmer Biomet's infection management strategic pillar. And we continue to work jointly on post-market clinical trials and regulatory transitions from MDD to MDR to drive future growth. Switching over to wound management. Through sales efforts and onboarding of new distributors in multiple markets, Hydreson continued to show double-digit growth across the product lines. During 2025, this expansion was largely offset by a drop in revenues in sutures in specific markets. Looking ahead, we see customer demand across the total wound management portfolio, which means that we expect to drive stronger growth in all product categories within wound management going forward and in line with our longer term strategic targets. Here as well, MDD to MDR regulatory transitions and investments are underway to be able to scale the portfolio to meet the demand. With that, I will hand over to you, Patrick, to review our Q4 and full year financial outcomes in more detail.

Thank you very much. Indeed, our Q4 report show a strong quarter and finish to the year. In short, we deliver an EBITDA in Q4 of 25 million, driven by the updated agreement with CIMR, and 44 million for the full year, We do this despite the decrease in total revenues, driven by negative currency effects and discontinued business. Total revenue amounted to 66 million for the quarter and 229 million for the full year. We delivered net sales in the quarter of 63 million, an increase of 10% net of currency effects, On a full year basis, our net sales decreased primarily due to currency and discontinued business. Excluding the negative currency effects on the net sales of around 11 million, net sales was still down minus 6%. And again, removing discontinued business here as well, we see positive growth in our license business as well as our management business. Looking closer at our license business, we report total license revenue in Q4 at 49 million, again lifted by the update of agreement with Simo Biomed. And for the full year, 152 million. Looking closer at our wool management portfolio, we did see a decrease of revenues of 9% in Q4, while we see a full year growth of 4%, excluding currency effects. In wool management, we continue to see strong double digit growth for HydroSyn across all our product categories. While as mentioned before, this growth was partly offset by a larger than expected decline in sutures. Our expectation is still that our wound management portfolio combined will deliver double-digit growth going forward over this strategic period. Finally, on total revenues, as expected, we have no BIP revenues recorded in Q4. For the year-to-date period, this results in a negative top-line impact of around 15 million, reflecting the discontinuation of the BIP portfolio. In addition, other revenues for the quarter are down 3 million and in the full year, 7 million, driven by negative currency effects. So again, the full year revenue decrease is driven by negative currency effects and discontinued business. When we look closer at our core business, we see licensed partner revenues for the quarter at 49 million again driven by the update of agreement with CIMA, and 152 million for the full year. Excluding the negative currency effects, we see our licensed partner revenues growing at positive 5%. Over the full year, BD came in with revenues at 107 million, excluding negative currency effects on the dollar. This corresponds to about an 8% decline. As we discussed in our Q2 and Q3 reports, the decline was driven by regulatory delays of the new market launches. We are excited about the future launches in 2026 and remain confident in the strength and future growth from our BD partnership. On Simr Biomed, Q4 revenues amounted to 17.6 million and 34 million for the full year. Again, in December, we announced an updated agreement with Simr regarding our trauma nail system and hence all revenues under the previous agreement was finalized and recognized in Q4. Going forward, revenues will relate to the new agreement as stated in our December 19 press release. Overall, across our partnerships, we continue to see positive in market volume growth and demand from customers and clinicians for our technology. Looking closer on cost and OPEX, we continue to make progress on reducing cost and complexity across our business. In Q4, our total operating cost was just under 34 million. And for the full year, our total costs were down 54 million, reaching a base of 154 million for the full year. This is a decrease of more than 25%. and is driven by our efforts to reduce cost and complexity across our business following the transformation, as well as a reduction and reversal of provisions relating to the update of the agreement with CIMR in Q4. While reducing cost and complexity in the full year 2025, we have at the same time continued to invest in the business, including strengthening within our organization. We will continue to do so and to operate with a similar mindset going forward. As mentioned, despite a decline in revenues, we continue to deliver positive EBITDA with 25 million for the quarter and 44 million for the full year, more than doubling our EBITDA margin from 7 to 19%. Our operating result for Q4 was a positive 13 million and for the full year, a 3 million loss. However, an improvement of more than 25 million versus our operating loss in 2024. The quarter also delivered a positive net profit of 12.5 million, while our full year net result is negative 8 million, yet up 22 million versus our 24 result. Looking at our cash flows, we in Q4 delivered a total positive cash flow for the period, of almost 7 million, with cash flow from operating activities being positive at almost 12 million. For the full year period, we have total negative cash flows driven by the voluntary repayment of loans back in Q1 of 51 million. We have cash flows from operating activities almost being flat for the full year at minus 1.5 million. Please note the updated agreement with Simr, which impacted our revenue and result for Q4 and for the full year, has not yet impacted cash flow in Q4. All in all, total cash end of Q4 increased to 44 million net of repayments. With that, back to you, Christine.

Thank you, Patrick. Before summarizing the presentation, I would like to revisit quickly our strategy and targets. We will continue to execute our strategy focusing on license partnership, supported by investments in key knowledge areas for our license business, as well as drive profitable growth in our wound management portfolio. We are on track towards our 2030 targets and reiterate our expected strategic target of more than 10 application areas in either exclusivity or license partnership phases. We also repeat our financial targets to deliver revenues of at least 600 million and EBITDA of at least 200 million by year end 2030. And now let me summarize 2025. We have reinforced partnerships through enhanced ways of working and achieved milestones together with our partners. We have also developed our early stage pipeline of new applications and potential partners across strategic therapeutic areas. Financially, we delivered a stable underlying licensed business in 2025, concluding with a strong Q4, and we continue to further improve our profitability. The overall takeaway is that back to guard now has a stronger foundation to deliver on our targets. And we look forward to demonstrating the commercial value of our coding technology in the years ahead. With these concluding remarks, I would like to open up for your questions and hand over to the operator.