Bonesupport Holding AB (publ)

Welcome to Bone Support Q2 2026. 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. Welcome everyone to BoneSupport Q2 2026 results call. My name is Torbjörn Sjöld, CEO of BoneSupport. With me here today is our CFO Håkan Johansson and together we will use the next 25 minutes to guide you through the Q2 presentation and then open the line for questions. Before starting the presentation, I would like to draw your attention to the disclaimers covering any forward-looking statements we will make today. So let's look at the financial and operational highlights of the quarter. Q2 reflected solid execution across the business. Net sales came in at 356 million Swedish crowns, corresponding to a growth at constant exchange rates of 30% versus Q2 2025. Reported growth was 25%, showing that the currency impact on our figures for the quarter has decreased compared to the previous quarters. Our adjusted operating result excluding incentive program effects was 104 million Swedish crowns corresponding to an adjusted operating margin of 29%. Reported operating result was 90 million SEK. We saw another quarter of solid cash generation with operating cash flows reaching 67 million SEC. After completing a share buyback of 83 million SEC, this resulted in a cash position of 434 million SEC at quarter end. After a period of significant commercial investments, it's encouraging to see the strong operating margin together with continued strong cash flows as confirmation of the scalability of our business model. We continue to see strong traction for Cermet in the US with sales reaching 295 million SEC for the quarter compared with 236 million SEC in Q2 2025. In Europe and rest of the world, we saw solid momentum across all markets with a growth of 26% at constant exchange rates compared to Q2 2025. During the quarter, the regulatory process for Ceramat-V progressed according to plan within the framework of the de novo process. If granted market authorization, Ceramat-V will constitute an entirely new product category like Ceramat-G in 2022. Just as in the review of the de novo application for Ceramid G, both CDER, Center for Drug Evaluation and Research, and CDRH, Center for Devices and Radiological Health, are involved, and the lead review team, which sorts under CDRH, remains the same as during the 510 process. Bone Support has continued the constructive dialogue with FDA within the scope of the de novo process and is working purposefully to address the requested details and clarifications. Responses are to be submitted no later than end of August. Progress on CERAMENT for spine continues to be solid. The CERAMENT BVF launch is on track and the preparations for the studies on antibiotic eluting CERAMENT follow plan. An important step as we continue is expanding our portfolio of indications and applications. In Q2, USCMS proposed improved reimbursement for the use of Ceramac-G in complex orthopedic infection surgery and more specific identification codes for Ceramac-G. Now let's move to the sales development. Next slide, please. This 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 CEREMENT-G in the US is strong, given that we keep bringing new strong clinical studies and opening up new market segments, new indications, a product like CEREMENT-G will remain in launch phase for many years to come. However, throughout 2025 and in the first half of 2026, we've seen strong influence from the US dollar to Swedish crown depreciation, which influences the optics of the graph, but not the in-market performance as you will see in Håkan's slides later in the presentation. Last 12 months growth in Q2 of 21% in the graph corresponds to an even stronger 32% at constant exchange rates. US CERAMENT BVF last 12 months sales was flat year over year at constant exchange rates. In total antibiotic eluting CERAMENT grew with 40% last 12 months in the quarter at constant exchange rates. Next slide please. In US sales amounted to 295 million sec representing a growth of 31% at constant exchange rates. Growth OF CERAMENT G WAS SLIGHTLY LOWER THAN EXPECTED DUE TO A HANDFUL OF CUSTOMERS IMPLEMENTING RESTRICTIONS IN THEIR USAGE OF CERAMENT, SO-CALLED PRE-APPROVALS. THIS REDUCED THE GROWTH RATE SOMEWHAT IN THE QUARTER. IT'S NOT NEW FOR CUSTOMERS WHO STARTED USING CERAMENT G MORE RECENTLY TO TEMPORARILY LIMIT USAGE WHILE AWAITING RESULTS. The restrictions is set by hospital administration to keep short-term costs down. The demand and the need among treating clinicians remains intact and is growing. We've seen this pattern before. When customers accelerate their use of CERAMENT-G, hospital administrations may, as a cost-driven response, introduce temporary restrictions, so-called go-stop-go. These hospitals continue to use CRMNTG, albeit at the reduced level, which creates a good foundation for increasing usage, again, using health economic arguments. The proposed changes to DRG codes announced by CMS during the quarter, with expected implementation in the fourth quarter, add further strength to these dialogues. Excluding the impact from these customers mentioned, we continue to experience strong growth of Ceramac G, driven by both increased access through new accounts and new surgeons, as well as wider adoption among existing users. We see growth from all three prioritized platforms, foot and ankle, trauma, and arthroplasty. As part of our ambition to modernize an outdated standard of care in the US, we have opened one market segment after another, starting with foot and ankle, followed by trauma, and now moving into revision arthroplasty. Our market research presented at our Capital Markets Day indicates that around 60% of the revision arthroplasties receive some form of local antibiotics, mainly from PMMA, and antibiotic powder. It also indicates that 80% of the surgeons in the survey found CermetG appealing to highly appealing. Interest continues to grow for CermetG in revision arthroplasty and periprosthetic joint infections where the clinical needs remain substantial and 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 the market. In Q2, we continued the early stage launch of Ceramet BVF in spinal procedures with distributors actively engaging spine surgeons across both existing and new partnerships. The surgeon access and early stages of adoption in spine follow plan and indicate the strength and potential of this segment. As this is a new clinical segment for us, more clinical data is needed to support broader market penetration. Importantly, the performance of CERAMENT BVF in spine will help confirm the value proposition for the CERAMENT platform, which will pave the way for future antibiotic eluting CERAMENT launch. Our market research, also presented at our Capital Markets Day in April, points to strong clinical and market rationale for antibiotic eluting CERAMENT in spinal procedures. infection and reinfection prevention remain major unmet needs in spine surgery. 75% of surgeons already use local antibiotics for surgical treatment and 86% use them for prophylaxis in at least some patients. The current standard applying antibiotic powder without controlled delivery, often called dumping, is used by roughly 78% of the surgeons, yet 82% consider that this approach is suboptimal, pointing to a clear gap between current practice and what surgeons believe is the right solution. In Q2, USCMS, Center for Medicare and Medicaid Services, announced a proposed ruling, full year 27 IPPS, including changes that improve payments for the use of Ceramide G in the treatment of complex orthopedic infections, such as periparasitic joint infection, fracture-related infection, and diabetes-related bone infection. In parallel, CMS proposes the introduction of more specific procedure and identification codes for CERAMENT-G. Although this is a proposed ruling, this is very positive for bone support as it validates the uniqueness and value CERAMENT brings and reduces potential barriers for using CERAMENT in daily clinical practice. The company submitted additional clarifications to the CMS during the public comment period, aiming to tie the extra reimbursement specifically to on-label use of approved products in this category, where we currently hold the only approval, strengthening our competitive mode. In parallel, we've prepared a roll-up plan with supporting education and communication materials to fully capitalize on the ruling. A final decision from CMS is expected in late summer 2026, and the ruling expected to come into effect as of October 1st, 2026. Now let's turn to Europe. Next slide, please. Sales in Euro came in at 61 million SEK, representing 26% growth at constant exchange rates. While part of this reflects a softer comparison base in Q2 2025, it was still a very strong quarter. We saw strong development across our three market structures, direct, hybrid, and distributor markets. This model is well suited to the early stage the company is currently in. In our direct markets, the market conditions in Germany have stabilized and healthcare providers have adapted to the new normal following last year's market reforms. Our investments in hybrid markets developed well, underlying continued potential ahead. In our distributed markets, we see large potential to increase our footprint by entering more countries. Meanwhile, the Sarmat launch in India with a focus on the private market is going according to plan. We note volatility in the Middle East where geopolitical unrest is affecting market presence and logistics in the short term. Now, I'll leave a deep dive into the numbers to Håkan.

Thank you, Torbjörn. So net sales improved from 284 to 356 million, equaling a growth of 25% in reported sales growth, or 30% in constant exchange rates. Torbjörn has already spoken about the performance in especially the US and the major drivers behind the sales growth, but as the large movement in US dollars over time somewhat hides the true trajectory in the US, I would like to share the US sales performance in US dollars. Having Ceremon G as the growth driver in the US, this slide shows the quarterly Ceremon G sales in the US in US dollars with continued solid performance, despite the isolated headwinds already covered by Torbjörn. The contribution from the US segment improved by 35.8 million versus Q2 2025, and amounted to 140.2 million. The improved contribution relates to increased sales after the effect of increased costs. Selling and marketing expenses during the quarter amounted to 135.3 million compared with 117.8 million previous year, of which sales commissions to distributors fees amounted to 94.5 million compared with 78.5 million in 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 93.8%, with a decline in the quarter, mainly following the impact from tariffs, impacted with 1.5 million in comparison with the same quarter last year. In Europe and rest of the world, a contribution of 16.8 million was reported compared with 13.6 million previous year. Selling and marketing expenses increased by 5.3 million, mainly related to the previously communicated commercial investments in the so-called Euro booster program. From the lower graph and orange marker, a minor movement in gross margin can be noted, mainly impacted by market mix. Selling expenses excluding sales commission and fees increased by 16.2 million compared with previous year following the commercial investments in both the US and Europe. Investments aimed at future sales growth driven both by market opportunities and by sustained high marketing activity. R&D remain at a stable level and focused on strategic initiatives such as the market authorization submission for segment V in the U.S., the research and studies in Spine, and also future portfolio innovation. And administrative expenses, excluding the effects from the long-term incentive programs, remaining stable with an increase of 1.3 million in the quarters. The adjusted operating result amounted to 104.1 million, with only minor currency effects impacting. And I will come back to this on a later slide. Gross modern is down following a 2.7 million inventory write-down regarding components and materials, as well as continued impact from US tariffs. As mentioned previously, a 1.5 million impact compared with the same period last year. The difference between adjusted and reported operating result is cost related to our long-term incentive programs, amounting to an expense of 14.5 million in the quarter compared with an expense of 7.6 million previous year, as you could see from the previous slide. The increase in expense include 1.6 million relating to the long-term incentive program approved by the AGM in May 2025, which was included from the beginning of this year. Operating cash flows were strong in the quarter. However, net cash is down following the executed share buyback, totaling 83 million. During the quarter, the Swedish krona has experienced volatility and weakened against US dollars, among others, with only minor exchange gains and losses reported as other operating income and expenses. This 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 y-axis. The blue dotted line read out on the 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 the table below the graph, you can see that the FX adjusted operating margin of 28% in the quarter compared with 26% in the same quarter last year. In the shorter term, the operating margin has been impacted by the commercial investments made in both Europe and US, and this quarter shows a return to a gradually improved operating margin. As already mentioned, a solid cash conversion has been reported continuously since Q3 2024, with an average cash conversion of 79%, visible as the dotted line in this graph. Q2 this year reports a solid 67% cash conversion. And with this, I hand back over to you, Torbjörn.