Bonesupport Holding AB (publ)

Welcome to Bone Support Year-End Report 2025 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 CEO Torbjorn Skuld and CFO Håkon Johansson. Please go ahead.

Thank you, operator, and welcome everyone to Bone Support's Q4 and full year 2025 results call. My name is Torbjörn Sjöld. I'm the CEO of Bone Support, and with me here today is our CFO, Håkan Johansson, and together we will use the next 25 minutes to guide you through the Q4 presentation and then open the line for questions. But before we start the presentation, I would like to draw your attention to the disclaimers covering any forward-looking statements that we will make today. So let's look at the financial and operational highlights from the quarter. Q4 was another strong quarter with solid execution across the business. Net sales came in at 313 million SEC, corresponding to a growth of 22% versus Q4 2024. Sales growth at constant exchange rates was 36%, showing that there was a continued strong currency impact on our figures for the quarter. Our adjusted operating results, excluding incentive program effects, was 81 million SEC, corresponding to an adjusted operating margin of 26%. Reported operating results was 82 million SEC, and we saw solid cash generation with operating cash flows reaching 54 million SEC. We continue to see strong traction for Ceramat-G in the U.S., where both new accounts and increased use among current users contributed to the strong progress. Therma G sales in the US reached 207 million SEC for the quarter, compared to 154 million SEC in the same period the year before. In Europe and the rest of the world, we saw strong momentum, which more than offset the negative effects of the German market reforms. During the quarter, we also advanced our regulatory pipeline. As communicated in early December, the FDA submission for Cerament V has now been transferred from the 510 pathway to the de novo process. This change reflects the FDA's assessment that Cerament V may constitute an entirely new product category. like CERAMENT-G in 2022, and positions us for a stronger long-term market entry. In addition, we initiated the early stage launch of CERAMENT-BVF for Spine in the US, an important step as we continue expanding our portfolio of indications and applications. I will come back to that later in my presentation. Now, let's move to the sales development. The chart shows total last 12 months reported sales in Swedish Krona by quarter since 2019 in stacked bars per region and product category. As you can see, the launch momentum for Ceramid G in the US is exceptionally strong. Given that we keep bringing new strong clinical studies and opening up new market segments and new indications, a product like Ceramid G will remain in a long phase for many years to come. However, throughout 2025, we have seen strong influence from the US dollar to Swedish crown depreciation. Last 12 months growth in Q4 of 31% in the graph corresponds to an even stronger 40% at constant exchange rates. So most of this quarter over quarter slow down in last 12 months sales is due to a strong currency impact. US Sarmat BVF last 12 months was flat year over year in constant currency. In total, antibiotic eluting ceramide grew with 54% last 12 months in the quarter in constant currency. Next slide, please. In the U.S., sales amounted to 259 million SEC, representing a growth of 40% at constant exchange rate. There was some general variability during the quarter due to the number of working days. At the same time, we continue to experience strong growth of Cerament G, driven by both increased access to new accounts and new surgeons, as well as wider adoption among existing accounts and surgeons. In trauma, we see expanding access and adoption in level one trauma centers, which is an important validation of CERAMENT-G for treating complex infections and bone voids in the most demanding clinical environments. There are roughly 250 level one trauma centers in the US. These are the very large and most important centers for advanced trauma treatments. And at the end of 2024, we had sold Saramant to 15 of these. At the end of 2025, we had sold to more than 140 level one trauma centers. That said, actual use is evolving gradually as trauma surgeons carefully assess and evaluate new products before they become part of regular use. And remember that full healing and evaluation of a trauma patient can take more than six months. As part of our mission to modernize an outdated standard of care in the U.S., we have successfully opened one market segment after another. We started in foot and ankle, followed by trauma, and now moving into revision arthroplasty. Interest continues to grow for Ceramac-G in revision arthroplasty and periprosthetic joint infections, two areas where the clinical needs remain substantial and where the evidence supporting our antibiotic-eluting technology has resonated strongly with surgeons. We've built a solid foundation for our spine strategy over the past quarters by establishing distributor coverage and preparing for the market. In Q4, we initiated the early stage launch of Cerament BVF in spinal procedures, with distributors now actively engaging spine surgeons across both existing and new partnerships. As this is a new clinical segment for us, more clinical data is needed to support broader market penetration longer term. Importantly, the performance of Cerament BVF in Spine will help confirm the value proposition for the Cerament platform, which will pave the way for the future Cerament G launch. We have made strong progress in evaluating and preparing the regulatory pathway and will share more on the path forward at our Capital Markets Day this spring. Now, let's turn to Europe. Next slide, please. Sales in Europe and rest of the world came in at 54 million SEC, representing 18% growth at constant exchange rates. Sales in Europe continued to be influenced by the same dynamics as observed in Q3, meaning that hospital reforms and surgical protocol programs in Germany were still impacting our sales. However, direct markets excluding Germany delivered at normal growth rates And by the way, when we say normal growth rates, we mean normal for Saruman. The growth rates that we see outside Germany are 45 times higher than growth rates for the market in general. Furthermore, hybrid markets in Southern Europe, Australia and Canada are performing strongly. We see positive traction from the investments made during the first half of 2025 reflected in improved sales performance. Now I'll leave a deep dive into the numbers to Håkan.

Thank you Torbjörn. Net sales improved from 257 to 312.5 million, equaling the growth of 22% reported sales growth or 36% in constant exchange rates. Torbjörn has already spoken about the solid performance in especially the U.S. and the major drivers behind the sales growth. But as the weak U.S. dollar somewhat hides a continuous strong trajectory in the U.S., I would like to share the U.S. sales performance in U.S. dollars. Ceremon G is the growth driver in the U.S. And this slide shows the quarterly Ceremon G sales in the U.S. in U.S. dollars. with continued solid performance quarter to quarter. The number of working days in each period impact sales, especially in Q4, which is impacted by both Thanksgiving and the holiday season over Christmas and New Year's. Taking this into consideration, a strong net sale per working day is noted during the quarter when looking at the orange line in the presentation. The contribution from the U.S. segment improved by 30 million and amounted to 120.2 million. The improved contribution relates to increased sales after effect from increased costs. Selling and marketing expenses during the quarter amounted to 128 million compared with 108.8 million previous year, of which sales commissions to distributors and fees amounted to 85 million compared with 69.6 million the same quarter last year. From the graph at the bottom of the screen showing net sales as bars and gross margin as the orange marker, it can be noted that the gross margin remains stable and strong at around 95% with a minor decline in the period following a gradual impact from US tariffs. In Europe and rest of the world, a contribution of 11.9 million was reported to be compared with 12.8 million previous year. Selling and marketing expenses increased by 4.9 million, including 3.6 million related to the previously communicated commercial investments in the so-called Eurobooster program. From the lower graph, an orange marker, a minor drop in gross margin can be noted, mainly impacted by the market mix. Selling expenses, excluding sales commission and fees, increased by 8.6 million, mainly in staffing expenses, of which 3.6 million relates to the so-called euro booster. The increase from Q3 this year relates to seasonality, as Q4 is usually intense in terms of congresses and marketing activities. R&D remained focused on the execution of strategic initiatives, such as the application studies in Spying Procedures and the market authorization submission for Sermon V in the U.S. The expense for the quarter includes submission fees and other additional expenses related to the change in regulatory pathway for settlement B in the U.S. And finally, administrative expenses, excluding the effects from long-term incentive programs, reports a small increase for the period, of which 2.8 million relates to the CEO succession. The reported operating result amounted to 81.8 million, despite unfavorable currency effects totaling 2.9 million. I will come back to this on a later slide. The newly introduced tariffs in the United States had a gradual impact on costs in the quarter. The full effect of the current 50% tariff will equal a 0.8% impact on U.S. gross margins, which will come gradually with full effect late 2026. The difference between adjusted and reported operating results are costs regarding our long-term incentive programs amounting to a negative expense of 0.5 million in the quarter compared with an expense of 13.7 million previous year, as you can see from the previous slide. The reduced costs are due to the drop in share price. Operating cash flow remains solid with an increase in accounts receivables at the end of the year, mainly as customer payments seem to have been deferred to after the holidays. During the period, the Swedish krona has continued to strengthen against the US dollar. Other operating income and expenses therefore contain foreign exchange gains and losses from the translation of the group's receivables and liabilities in foreign currency amounting to a negative 2.9 million. The graph on this slide shows with gray bars how the relationship between the US dollar closing rate and the Swedish krona has varied over time. This is read out on the right x-axis. The blue dotted line read out on the left y-axis shows adjusted operating result. The adjusted operating result excluding translation exchange effects is the orange line and gives a more comparable view of the underlying trend in operating results. In the table below the graph, you can see the FX adjusted operating margin of close to 27% in the period, compared with 23.6% in the same quarter last year. And with this, I hand back to you, Torbjörn.