Bactiguard Holding AB (publ)

Welcome to the Bactiguard Q32026 report presentation. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to the speakers. CEO Christine Lind and CFO Patrick Bock, please go ahead.

Thank you, Operator, and a warm welcome to Back to Guard's third quarter presentation for 2026. I'm joining you today from Boston following a couple of days at the AdvaMed MedTech Trade Association Conference, where MedTech leaders come together. With me on the call is our CFO, Patrick Bach. I'll take you through the quarter's strategic highlights, then hand over to Patrick for a closer look at the numbers before we open the line for your questions. Today's title, Accelerating Performance Validates Our Partnership Model, captures exactly where we landed, a very strong third quarter, following a solid second, with growth in our licensed business flowing straight through to earnings and cash flow. So let's dive straight into the quarter. Let's start with some high-level numbers. we're very pleased to report third quarter net sales growth excluding currency of 24% with total revenue of 58 million sec up from 48 million a year ago. Licensed revenues grew 40% excluding currency driven mainly by our BD partnership where we saw the strongest growth in a decade. Adjusted EBITDA came in at 20 million sec corresponding to a margin of 34%. It's a clear demonstration of the operating leverage of the licensed business with top-line growth flowing through to earnings and cash flow. Strategically, it was a quarter of real progress. BD is performing strongly across both established and newly launched markets. Market-based revenues from Zimmer Biomet are gaining momentum, and we made meaningful headway in our partner dialogues with the strongest engagement in orthopedics. Let me take these one at a time. Let's turn to the BD Partnership, which was a key contributor to the performance this quarter. Revenues from BD grew 30 percent, excluding currency, and the growth in the partnership is the strongest we have seen in a decade, coming both from Concentrate as well as royalties on market sales. What makes this particularly encouraging is why this is happening. The long-standing markets keep performing well, and the markets launched over the past year, such as the Nordics, Poland, and parts of the Middle East, are now generating increasing demand. That reflects the cumulative impact of our cooperation and development efforts with BD, the regulatory approvals, the technology training across the regions, and the continued commercialization and market development activities in Europe. Increasing volumes in these newer markets validate the work behind those market transitions, and they support our confidence in the long-term expansion of the partnership. It's also worth remembering the foundation. This is a partnership that goes back to the early 1990s with more than 245 million back-to-guard coated Foley catheters to date, and with BD having the exclusive global rights outside of China since only late 2023. We renewed this agreement for the long term as recently as earlier this year, and there is still plenty of opportunity for us to grow together. Now to Zimmer Biomet. Under the amended agreement signed late 2025, our royalties are now more closely tied to underlying market performance. This quarter, we saw that start to come through, and in addition to fixed fees, we had double-digit growth in royalties from in-market product sales. Our partnership with a global leader in orthopedics has clear long-term potential as the use of and demand for back-to-guard coated implants grows. We also continue to execute on our regulatory programs and on our scientific publication and visibility strategy. In September, we presented new data at two leading conferences, including a joint publication with Zimmer Biomet comparing silver-containing surface technologies, which shows that silver is not the same as silver, and the differentiation of our noble metal technology, which has no market equivalent. We also presented Bactiguard's data on the durability of the coating. The relevance of all this data extends beyond the trauma implant and our Zimmer Biomet relationship. and is something we can leverage for the technology across all of our partnerships. Also during the quarter, an independent study from the University of Bari in Italy was published. These results further confirmed promising infection prevention outcomes with the Xena and Bactiguard nail in high-risk fracture patients. The combination of differentiated mechanism, demonstrated durability, and good clinical outcomes creates trust in the back-to-guard noble metal technology, both from clinicians and hospitals deciding which trauma nail products to purchase, but also for potential new partners. Now let's turn to business development. This slide is a snapshot across the therapeutic areas. and the various categories of our partnerships, including material transfer agreement, application development, exclusivity, and license partnerships. Given the expected lead times associated with partnership and product development in MedTech, we continue to take a long-term perspective on these opportunities. Having said that, during the quarter, we deepened our engagement and made meaningful headway in various dialogues, which further reinforces our optimism for future product development. OrthPEDIX IS WHERE PARTNER ENGAGEMENT IS STRONGEST. THIS REFLECTS THE WELL-RECOGNIZED NEED FOR INFECTION PREVENTION AND IMPLANT SURGERY AND PAYERS WHO ARE INCREASINGLY FOCUSED ON THE ECONOMIC BURDEN OF INFECTIONS. WE ARE ALSO INCREASINGLY A STRATEGIC PARTNER BEYOND THE NOBLE METAL TECHNOLOGY ITSELF. OVER THE PAST TWO YEARS, WE HAVE EXPANDED OUR REGULATORY EXPERTISE AND OUR DIRECT DIALOGUE WITH AUTHORITIES including the US FDA, to help partners through an efficient product approval process, and we continue to strengthen the scientific evidence behind the technology. That growing involvement shows how the value we bring extends beyond the coding. As always, in a licensed business, discussions like these take time to mature into signed agreements, and our focus remains firmly on advancing them. Now to wound management. After a very strong second quarter, wound management had a softer third quarter. Revenues were 14 million SEC, down just under 9% excluding currency, mainly reflecting product order phasing and the inherent variability from quarter to quarter. The longer term picture is therefore more relevant, and wound management grew approximately 14% organically over the first nine months led by Hydrus and Aqua. We continue to invest in ensuring product availability, including the MDR process and our operations in Penang, Malaysia. And as we've said before, we continue to expect double-digit growth from the wound management portfolio. With that, over to Patrick for a closer look at the numbers.

Thank you, Christine. I'm very happy to dive into the strong financials. In short, we deliver strong revenue growth, flat OPEX, accelerated EBITDA margins, and cash flow generation this quarter, driven by our strong development across our licensed business. For the third quarter, we report a total revenue growth of more than 21% at constant currencies. Total revenue came in at 58.5 million for the quarter, and 166.5 million year-to-date. Now, at a rolling 12-month basis, we see revenues at constant exchange rate close to 240 million. Similarly, net sales grew 24% in the quarter at constant currencies driven by our licensed business and delivering solid growth as well on a year-to-date basis. Now, looking closer at our core licensed business. Our license revenues accelerated due to strong demand from both partnerships in urology and orthopedics. In particular, we see increasing demand from PD, which came in at almost 38 million SEK for the quarter, up more than 30% at constant currencies. Also, on a year-to-date basis, we report more than 9% growth, and we right now see increasing demand and growth from existing markets and from, in particular, new markets and new market launches across EU and the Middle East. As Christine mentioned, we see the strongest demand and volume shipped to BD in a decade. We are pleased to see the increase in coated catheters being used worldwide, and we're equally excited about the future to come. Simmer Biomed contributed with a bit more than 3 million for the quarter, in line with our expectations and reflecting double-digit growth in sales and demand for the CNN Bactiguard coated trauma nail systems across European markets. Across both of our partnerships, we do see continued positive in-market volume and sales growth. In particular, we see the accelerated demand from BD new markets, but we also see positive demand within Simma Trauma and as well across orthopedics in general. We see clear demands and accelerated demand for our technology and to prevent infections. Now turning to OPEX costs. For the quarter and for the year-to-date period as well, we continue to manage and keep our total operating costs flat. We do this despite continuing to invest in future growth, such as our efforts in regulatory pathways and even in new clinical data and evidence, as Christine mentioned. This truly sets our technology apart. This goes for our licensed business, but also for our wound management business in Malaysia, as we continue to strengthen that platform for continued profitable growth. Now turning to profitability. Driven by strong growth and demand for our licensed business, increasing gross margins and a flat OPEX, we deliver strong and profitable quarter. Adjusted EBITDA came in at 20 million SEK for the quarter, up more than 14 million versus Q3 last year, and corresponding to a margin of 34%. This is more than tripling our margin last year. On a year-to-date basis, we now reach more than 30 million in adjusted EBITDA, and our rolling 12-month now sits above 55 million with a margin of 24%. Now, we are pleased to demonstrate this scalability and leverage in our P&L that we see from the growing demand in our licensed business. And we are equally excited to continue to demonstrate this in the future. For the quarter, we also turned a positive net profit of more than 7 million SEK, an improvement of more than 14 million versus Q3 last year. Turning to cash flow. In the quarter low, we delivered a strong cash flow from operating activities of 14 million SEK, a substantial improvement of more than 16 million from Q3 last year. Equally, on a year-to-date basis, we see positive cash flow from operating activities of almost 19 million. Also here, this represents more than 30 million improvement for the nine-month period versus last year. Our total cash flow for the period was also positive at about 10 million SEK for the quarter and is also positive on the year to date period. Now, given the positive cash flow in Q3, our total cash end of the quarter increased to 55 million SEK. With this quarter's continued positive development in terms of profitability and cash flow, I wanted to highlight the transformation which is visible when we zoom out and look across periods. For both profitability and cash flow, we now stand with a solid profitable cash generating platform. We have lifted our adjusted EBITDA with more than 125 million since our reported 2023 number, and our business model today allows us to accelerate and scale that further with increased demand in our licensed business. At the same time, we have de-risked the business and lowered our debt and leverage. Again, this is despite investing in future growth and strengthening our organizations as needed, both in Sweden and in Malaysia. As this chart demonstrates, we have also reduced our NEP debt to 64 million, excluding leasing, corresponding to a ratio of about 1.2 times our adjusted EBITDA for the rolling 12 months. With the strong results for Q3, we are pleased to demonstrate the accelerated performance and we're excited about the future ahead. With that, I hand it back to Christine.