OssDsign AB (publ)

Hello and welcome to today's WebScout presentation where we have Aas Design who will be presenting the Q1 report for 2024. With us presenting we have the CEO Morten Henneveld and CFO Anders Svensson. If you have any questions feel free to use the form that is located to the right and we'll take that up during the Q&A section and with that said please go ahead with your presentation.

Thank you very much and welcome to this first quarter of 2024 webcast. which is also our first quarter as a pure play of the biologics company. My name is Morten Hennevald and I'm the CEO of OsterSign and with me I have our CFO Anders Venson. Today we want to walk you through our Q1 results and highlights of the quarter. As always, when we do this presentation, the normal disclaimer. Overall, we've had another good quarter with sustainable growth and some very positive developments in the company, both during the quarter and after the quarter ended. We'll go into details on all of these. So the key takeaway here is that we continue the strong momentum we've seen previously, where we keep building border access in the US market with some significant contract wins with Premier and the VA. The meaningful investments we are making in clinical programs have also started to pay off, with a strong 93% fusion rate published from our first clinical trial to fusion. And last but not least, we are delivering on our strategic guidance with a significant uplift in gross margin, and we are showing clear signs of operating leverage. Anders will now take you through our financial performance, and then I will come back to talk more about the highlights in greater detail.

Thank you, Morten. So before we go into the numbers, I just want to clarify that given that the company no longer operates in the cranial space, so going forward, we will only compare to previous periods of orthobiologic cells. But when it comes to gross margin, this can't be separated out. So therefore, we will compare gross margins to the previous blended period. Now, if we turn to the results for the first quarter, we reported 27 million SEC in sales, which equals 207% growth versus the same quarter last year. That's quite a pleasing number. And this is the same actually on constant currency basis. There was no big difference in exchange rates. Now, as Morten mentioned, we are seeing sustainable and accelerating growth in the business with another underlying uplift this quarter. So what you see here on the slide is now the last nine quarters, with the bars being quarterly sales and the circles above showing the reported growth rates against the same quarter the previous year. Now, for 2022, of course, we have no comparison period. Now, as you can see, sales are increasing at a very meaningful rate, quarter on quarter, and we continue to be a high growth company, significantly outperforming the industry peer average. But in terms of the quarter on quarter sales between Q4 and Q1, we really have to adjust for the large extraordinary orders that we saw in Q4, which we mentioned at the time. And we've also indicated that in the slide. Otherwise, you won't really have a a reasonable comparison on the development in Q1. Now, as usual, I want to deep dive into how the US continues the exponential growth trajectory. And perhaps we've done this for many quarters now, but perhaps it's especially relevant now that we only sell in the US. Now, what you see in this bar chart is the last 12 months sales in each bar. And we've seen this trend for many quarters now starting in Q2 of 22. and we see good underlying acceleration in the first quarter again. An excellent performance, we are really satisfied with that. Turning to the gross margin then. In the first quarter, the gross margin continued to develop favorably compared to last year, and we reached 93.7%, which is an increase of 23.3% against a blended rate in Q1 2023. As we previously guided, we expected to operate with a gross margin at or above 90% as a pure play of the biologics company. So it's very pleasing to see that we're actually delivering on that. So just one thing I just want to remind everyone is that given the nature of this business that we're in with manufacturing biologics products, they undergo significant testing and so on. we will inevitably have some products that occasionally don't pass these tests. And combined with the fact that we're still in the early stages of commercialization with relatively low volumes, it means that the gross margin may be subject to some percentage point fluctuations between quarters going forward. Looking at the operating leverage then, if we go to the income statement, which I don't plan to go through in detail, I just want to call out how we now, as a pure play author biologics company, can see clear signs of improved operating leverage in the business, with a significant improvement in the net result year on year. Just to set the right expectations, though, I also want to remind everyone that the company is currently in full motion to transition more functions to the US. And consequently, the start of year operating expenses were somewhat lower than the expected level going forward. Now, once the transition is completed, which we believe will be during Q2, we expect to see a somewhat higher operating expense level, which will then also naturally impact the operating leverage development. Nevertheless, we are extremely pleased that, as we also mentioned during our strategy announcement last year, we already see operating leverage in the very first quarter as an orthobiologics company. I will now hand you back to Morten to talk about the other significant developments.