Getinge AB (publ)

Welcome to the Jettinga Q3 Report 2026. 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 Agneta Palmer. Please go ahead.

Thanks and welcome everyone to today's earnings call. As mentioned I have our CFO Agnetha Palme with me today and in the conference call today we'll go through our performance and some highlights in the third quarter before opening up for the customary Q&A. So let's move to page number two right away please. So we start looking at the development of some of our longer term strategic KPIs. We continue to clearly track in line with plan to increase the share of sales from recurring revenue, accelerating the share of sales from high margin products like, for example, our ECLS offering and the beta bags since they are transferred, which both had a very strong year so far. All these activities are of course supported by solid and effective quality processes as well. If we look at sales from recurring revenue, it continues to make up about two-thirds of our sales and the high margin products are at 70% as of Q3. When it comes to quality, the number of field actions in relation to sales have decreased significantly in the last three years. We are currently tracking slightly above last year's level but remain within our expected range on this KPI. These improvements should of course be achieved also through responsible financial leverage and an attractive long-term return on invested capital. Let's move to page number three, please. So if we look at the key takeaways when it comes to the third quarters and with an emphasis on the financial KPIs. Overall, we deliver a healthy financial performance in the quarter with top line growth. Net sales grew 2.1% organically with positive development in most of the business areas. Order intake increased by 2.6% organically. We then look at the adjusted gross and EBITDA margins. They were up in the quarter as a result of the continued positive underlying performance that we've seen for quite a while now. Margins were also supported by a remaining tariff refund of 45 million SEK. This led to another quarter with strong cash flow and a very solid financial position. Our financial leverage is at 1.5 right now, so well below the 2.5 times EBITDA as we have an internal threshold. So let's move to page number four and talk about some of the key events from the quarter. I think first and foremost, I would like to share the information that we recently had the results of our annual customer feedback survey. And I'm very pleased to report that our net promoter score has reached an all time high. We also had very strong employee engagement. And these are two KPIs that are extremely important for long term success. I'm also happy to say that we, at the end of the quarter, initiated the launch of the new version of our ECMO platform, CardioHelp 2, in CE countries and in Hong Kong. And so far this has been very well received by our customers, so we look forward to continuing this launch. Within our digital health solutions, we launched Thor Implant Optimizer, which supports the surgical planning in hospitals thanks to an AI-powered system. And just to quote the head of OR management at Klinikum Stuttgart in Germany, he mentioned that this supports better informed planning decisions and much more effective use of our existing surgical capacity. Furthermore in collaboration with the Swedish non-profit organization Beredskapslyftet we continued our support to the national specialized children's hospital in Kyiv through a donation of ECMO consumables the hospital operates one of Ukraine's leading pediatric ECMO programs treating critically ill children from across the country and in 2025 the hospital reported that it doubled its ECMO capacity and this continues to trend in a good direction. We're very happy to be part of supporting this important initiative. It's really clear that our donation helps sustain life-saving capability. And then just continuing on the pediatric track for a moment, we received also in the quarter 510 clearance for a new smaller EDI catheter, which is used with our ventilators. And this makes it possible to support premature infants between 500 and 1000 grams in weight. It's also very comforting to see that our sustainability KPIs are tracking well, just to highlight two of them. Compared to last year, we have reduced our scope one and two greenhouse gas emissions by more than 20%, and the share of renewable energy is above 70%. We can then move to page number five, please. So if we talk about our organic top line growth, this was driven by ACT and SW in the quarter. So order intake grew 2.6% organically. The organic order intake in acute care therapy increased primarily in ECLS therapy consumables and cardiac assist and EVH consumables. Life science organic water intake declined slightly during the quarter. The positive performance in bioprocessing and service did not fully offset the continuing decline that we see within our washer, isolator and sterilizer subsegment. Certical workflows increased, mainly driven by strong performance in operating room equipment such as surgical tables and lights. If we then look at the net sales part, we grew net sales with 2.1% in the quarter. This was mainly driven by disciplined work with pricing. Acute care therapies increased the net sales organically, primarily due to ECLS therapy consumables, intraduct balloon pumps and cardiac assist, and also our coverage stents. Organic net sales for life science fell slightly following a continuing decline in washers, isolators, sterilizers, and this was despite robust growth in sterile transfer. In surgical workflows, organic net sales rose slightly following growth in infection control and in our digital health solutions portfolio. We can then move to page number six, please, and I hand over to you, Agnete, for a moment.

Thank you, Mattias. So overall, we continue to improve our margins, and I'm particularly pleased with that the main driver of this is the underlying improvement in the business, mainly thanks to the disciplined pricing efforts that Mattias mentioned, but also positive mix shift and productivity. Let's have a look at adjusted gross profit. For the group, adjusted gross profit amounted to SEK 4,343,000,000 in the quarter, primarily on the back of the factors I just mentioned, but also supported by the remaining tariff refund of approximately SEK 45,000,000. This led to an increase of the adjusted gross margin by plus 2.2 percentage points in total. Moving on to adjusted EBITDA. The effect from adjusted gross profit on the EBITDA margin was plus 1.7 percentage points. OPEX increased less than inflation and adjusted for currency OPEX had a slight positive impact on the margin by about plus 0.1 percentage points in the quarter. FX impacted by plus 0.3 percentage points. All in all, this resulted in an adjusted EBITDA of SEK 1,278,000,000 and a margin of 15.1%. Let's move to page 7, please. The strong operating results further strengthened our financial position. Free cash flow was again above the 1 billion SEK mark, amounting to 1,302,000,000 SEK in the quarter. Compared with last year, free cash flow was impacted by the improved operating profit and changes in working capital. At the end of Q3, net debt decreased to 10.4 billion SEK due to the cash flow generation. If we adjust for pension liabilities, net debt was at 8.1 billion SEK. This brings us to a leverage of 1.5 times adjusted EBITDA, which is well below the 2.5 which we have as an internal threshold. If we adjust the pension liabilities, leverage is at 1.1 times adjusted EBITDA. Cash amounted to approximately 3.2 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 then move to page 8, please, and back to you, Mattias.