BICO Group AB (publ)

Welcome to BICO Q3 2025 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to the speakers, CEO Maria Force and CFO Jacob Thordenberg. Please go ahead.

Hello and welcome to BICO Group's Q3 2025 Earnings Call. I'm Maria Forbes, President and CEO, and I will, together with BICO's CFO Jakob Thorndenberg, present this interim report. Here's today's agenda. I will open today's session by presenting how BICO serves the world's leading pharma and biotech companies with solutions that transform how labs operate and innovate. Following that, Jakob will provide a summary of the quarter's key developments and present the Group's financial performance. We'll proceed and comment on our two business areas, Life Science Solutions and Lab Automation. Additionally, we will highlight our R&D pipeline with ongoing product development efforts. And this session will conclude with final remarks before opening up for Q&A. At Baico, we serve the world's leading pharma biotech companies. Our portfolio ranges from Baicero's market leading Green Button Go software, enabling full lab orchestration, to off-the-shelf automation products and bioprinting from our life science solutions business. Our solutions enable smarter, faster, and more efficient labs, and here lies an underlying strong demand. Pharma and biotech companies face the same fundamental challenge, long and costly development cycles for new therapies. And the development of a new therapy often takes more than 10 years and costs between 2 and 4 billion US dollars, where 90% of the pipeline ultimately fails. To overcome this, these companies are investing heavily in automation to increase efficiency, speed and quality, bringing innovations to the market faster and at a lower cost. The next wave of automation goes beyond instrument orchestration to connect entire workflows and data streams, where AI and machine learning continuously optimize experimentation and decision making. And Byco is at the core of this development, providing the data backbone that unifies AI-powered services with lab automation. Our products and services enable our customers to connect data across diverse informatics systems and apply AI tools to plan, run and optimize experiments in real time. Already today, we are powering AI drug discovery workflows that follow the design, make, test, analyze paradigm using our Green Button Go platform. Further, we integrate AI-driven image analysis as high-throughput analytical tools into cell line development workflows, enhancing speed and precision in bioprocess optimization. Today, researchers spend too much time on manual tasks and fragmented data, resulting in wasted samples and stalled projects. And combined with macroeconomic pressure, talent shortages, and tighter budgets, automation has become not just a competitive advantage, but a necessity for the future of discovery. BICO is at the core of this transformation, connecting workflows and data streams and enabling AI powered experimentation. And this is what our mission and vision is all about. Our vision is to enable and automate the life science lab of the future. And our mission is to be the first choice lab automation partner and provider of selective workflows to pharma. And this brings us to a video I'm about to share, which shows an example of an integrated lab automation solution we have designed and delivered to one of our customers. And in my view, this truly reflects our mission. Bye. With this introduction, my aim has been to emphasize BiCO's mission, our strategic direction and the value we deliver to our customers. We lead the way in solving the challenges in life science with speed, accuracy and efficiency. Speed by reducing the time to find optimal candidates for treatment therapies and supporting our customers in driving forward a personalized approach to treatment. accuracy by enabling the development of physiological relevant models and enhancing the reproducibility through automated processes that reduce variability in experimental outcomes. And by efficiency, we develop solutions to maximize productivity of automated lab equipment and scientists. All in all, our customers can run their processes faster, improve their quality of data and ultimately make better decisions. I will now hand over to Jakob to present the results for the third quarter.

Thank you, Maria. I will summarize the third quarter of 2025 for the group and then provide more financial details for the quarter. When looking at the performance for the third quarter, Life Science Solutions delivered 4% organic sales growth in line with market performance. The growth was mainly driven by a positive uptake in diagnostics as well as increased demand for lab automation components. Cyanium continued to perform well, delivering double-digit growth after major commercial and operational improvements in a diagnostic market which is coming back to more normal investment levels. Lab automation delivered 35% organic sales growth, rebounding after an abnormal Q2. Good progress has been made in the execution of the action plan, significantly enhancing processes, leadership and operational capabilities. In addition, BioZero received orders from a global pharma company worth 15.2 million US dollars as a part of a global master framework agreement. This showcases the strong underlying demand for lab automation and BioZero's market leading software suite, Green Button Go. We have also resolved impairments in DiscoverEcho and BioZero totaling 1 billion and 36 million. These impairments will not affect cash flow, but impacted EBIT for the quarter. With that said, I would like to highlight that we anticipate long-term growth around 10% CAGR, which is in line with our financial targets for both DiscoverEco and BioZero. I will elaborate more about this shortly. The closing of the transaction of the divestments of Matic and Visigol was finalized in early July. These divestments generated 740 million, which significantly strengthened our cash position. Next slide, please. Q3 was a quarter of solid progress. Net sales reached 387 million despite ongoing macroeconomic challenges and funding headwinds in key markets, with an organic sales growth at 12%. We also experienced that academic and biotech funding remains constrained, especially in North America, which has led to cautious customer spending and extended sales cycles. Adjusted EBITDA amounted to 17 million, corresponding to an adjusted EBITDA margin of 5%, which is an improvement in the adjusted EBITDA margin of 3 percentage points year over year. The improved margin is a result of continued cost control activities, mainly due to synergies derived from centralization of functions, as well as initiative for operational efficiencies. Maria will now comment on the progress of the execution of the comprehensive action plan to scale up BioZero.