Getinge AB (publ)

Welcome to Jetting to Q1 Report 2026 presentation. 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 Matthias Peerjus and CFO Agnetha Palmer. Please go ahead.

Thanks, and welcome, everyone. Thanks for joining the call today. As mentioned in the intro here, it's me and our CFO, Agnetha Palme, with you today. And in today's conference, we'll go through performance and some of the highlights in the first quarter of 2026 before opening up for a Q&A. So let's move directly to page number two, please. And I'd like to start by looking at the development of some of our strategic KPIs. And as you can see here, it's evident that we continue to clearly track in line with plan to increase the share of sales from recurring revenue and also accelerating the share of sales from higher margin products like, for example, our ECLS offering, our consumables in infection control and our beta bags within the transfer product category. This is all supported, of course, by solid and effective quality processes. And if we look at the specifics here, we can see that sales from recurring revenue continue to make up two-thirds and high-margin products closing in on about 70% right now. When it comes to quality, the number of field actions in relation to sales has decreased significantly, and we see this positive trend sequentially continue also into the beginning of 2026. And these improvements, we always act in line with thinking of responsible leverage and an attractive long-term return on invested capital. We can move to page number three, please. If we then look at some of the key takeaways from the first quarter, we managed to beat last year's record quarter and grow top line organically. Net sales grew by 0.8% organically with positive development specifically in life science and in surgical workflows. And on the order intake front, we saw an organic increase of 3.9%. When it comes to our adjusted gross and EBITDA margins, they were down in the quarter, mainly due to the strong headwind from currency and from tariffs. And adjusting for the 226 million SEC in currency and the tariff headwinds in the quarter, the EBITDA margin was about 50 basis points higher than last year's Q1. So the conclusion from that is that the underlying performance in our business continues to be strong, and it's developing according to the plans, the long-term plans that we have laid out. We also have a strong cash flow and they continue to have a solid financial position. So our financial leverage is at 1.5 and well below the 2.5 times EBITDA that we have kind of as an internal threshold. We can then move over to page number four and some of the key events during the quarter. And if we start with our product offering and our customers, I think one situation that is, of course, evolving on a daily basis is the situation in the Middle East. And we continue to monitor this closely. Our first priority is, of course, to tend to our employees in the region and continue to support our customers. And if you look at the region as such, it makes up about 2% of our sales, and where Saudi Arabia is half. And so far, the impact on top line and on cost has been very limited for us. To our life science customers, we launched a new steam sterilizer dedicated to larger items for use for labs and for research applications. And when it comes to the sustainability and quality perspective, I'm very happy to see that we got the CE approval for Cardiohead 2 in the quarter. And I'll talk more about that on the coming slide here. In addition to this, we have in our implants business received EU MDR certificate for the Integard Synergy, which is a vascular graft with an antimicrobial coating to minimize the risk of infections. Furthermore, in the quarter, we released our annual report for 2025, including our sustainability statement. And the annual report provides a lot of good information on getting it. So I encourage you to have a look at this if you haven't done so already. We're going to move to page number five, please. So just wanted to elaborate a moment on the positive news about the CE approval for CardioHelp 2. And just to remind everybody, this is a market segment where we are already the global market leader within ECLS therapy, thanks to our strong existing portfolio. With the launch of CardioHealth 2 now, we become even more relevant for our customers, and some of the system's key features are that it's even more lightweight and transportable, meaning that it can be used for both in-hospital and intrahospital use. It also has an attachable gas blender as an option, which is something that is highly appreciated by our customers. And from an interface standpoint, we have an interface now that is even easier for users to operate, and it includes also several smart monitoring functionalities for better decision support for our customers. We have initiated a limited market release now in the beginning of the second quarter to a handful of customers, and very happy to see how positive the reception from our customers have been for this important product. The plan now is to do a full C market release at the beginning of the third quarter. And when it comes to the important U.S. market, the plan is still to make the submission of the CardioHealth 2 system, including our HLS advanced consumer boost in the second half of this year. We can now move to page number six and talk about the top line for a moment. So overall, we had a solid top-line performance in life science and in surgical workflows. And when it comes to order intake for the group, we grew 3.9% organically. The order intake for acute care therapists decreased mainly due to the temporarily high comparative figures in ventilation, where one competitor last year drastically exited the market. So we were very successful in capturing some of that market share. At the same time, we saw really good growth when it comes to ECLS consumables across the board, and this is, as you know, one of our key categories. In life science, the organic order intake increased in the quarter, for example, because of an anticipated improvement from low levels that we've seen in bioprocessing for quite some time, and this is something that it's good to see some of the momentum. Those grew double-digit in the quarter, mainly on the back of the strong development across all our product areas, which is also encouraging to see. Net sales, there we had growth of 0.8% organically. For two care therapists, organic net sales decreased, mainly on the back of last year's consolidation in the ventilation market that I just mentioned. In life science, they had a really strong quarter in terms of deliveries, and they grew organic net sales in all product areas. Beta bags, as they are transferred, continues to show significant traction and momentum. In surgical workflows, the organic net sales increased primarily thanks to growth in infection control consumables within service and within our operating table category. With that, we can move over to page number seven, and I hand over to you, Agneta, for a moment.

Okay. Thank you, Mattias. So, overall, the headwind from tariffs and currency continued in the first quarter. Even so, we managed to hold up margins thanks to continued pricing and productivity. Starting with adjusted gross profit for the group, adjusted gross profit amounted to 3,828,000,000 SEK in the quarter, heavily impacted by currency and tariffs. Adjusted gross margin was down by 0.7 percentage points in total in spite of healthy contribution from price and need. If we then look at adjusted EBITDA, clear for currency, adjusted gross profits effect on the EBITDA margin was plus 0.3 percentage points, while OPEX adjusted for currency had a negative impact on the margin by about minus 1 percentage points in the quarter. And FX impacted by minus 0.3 percentage points. So all in all, this resulted in an adjusted EBITDA of 824 million SEK and a margin of 11.1%. Let's then move to page 8, please. And here we can clearly state that we remain in a solid financial position. Free cash flow amounted to 842 million SEK in the quarter. Compared with last year, free cash flow was impacted by improved operating profit and changes in working capital. Working capital days continue to be well below 100. We are now at roughly 90 days. On operating return on invested capital, we are at 11.4% on a rolling 12-month basis, which is well above the cost of capital. At the end of Q1, net debt decreased to 9.3 billion SEK. If we adjust to pension liabilities, we are now at 7 billion SEK. This brings us to a leverage of 1.5 times adjusted EBITDA, which is well below the 2.5 that we have set as an internal threshold. If we adjust for pension liabilities, leverage is at 1.1 times adjusted EBITDA. Cash amounted to approximately 4 billion SEK at the end of the quarter. So all in all, we can conclude that the financial position continues to be strong. Let's now move to page 9, please, and back to you, Mattias.