OssDsign AB (publ)

Hello and welcome to this webcast with OsterSign. We're CEO Morten Henneveld and CFO Anders Svensson will present the report for the third quarter of 2025. After the presentation, there will be a Q&A. So if you have any questions for the company, please submit them using the form to the right. And with that said, I hand over the word to you guys.

Thank you very much and welcome everyone. My name is Morten Henneveld. I'm the CEO of OsterSign. And as always, I have our CFO Anders Svensson with me today. And today we want to walk you through our third quarter result and the result for the first nine months. As always when we do these things we have the normal disclaimer. Before we go into the details I want to give you my view of the highlights in the quarter. Firstly we continue to see good growth. In the first half of the quarter, we witnessed a general dip in procedures due to seasonality. But very importantly, the quarter finished exceptionally strong with September being the highest sales month ever recorded. And I can also disclose that we have seen that trajectory continue into the month of October. It's also worth noting that the optics quarter over quarter is significantly skewed by the changed order pattern from a few larger customers, resulting in 1.5 million in sales that shifted from Q3 into the last day of Q2, which we also communicated with the second quarter report. And then we also saw further deterioration in the USD exchange rate. And adjusted for this, the underlying growth quarter over quarter came in at 5%, which is very much within where we wanted to see. Despite this shift in sales, we saw very impressive operating leverage in the company, resulting in the best EBIT result in the history of the company. During the quarter, We also saw the very first publication of us design catalysts used in an extremity case showing rapid boning growth at three months. And that confirms the potential for wider application in adjacent orthopedic segments. And then finally, we entered the quarter fully capitalized to launch our new growth strategy scale to profit to further accelerate the company in the quarters and years to come. And we have already started executing this strategy with specific focus, of course, on doubling the US sales force. So with that, I'll now hand you over to Anders to walk you through the financial results for the quarter in more detail.

Thank you, Morten. So as Morten mentioned, we continue to see good growth in the company during the quarter. We reported organic growth of 35% compared to the same period last year on a constant currency basis and a 23% on a reported basis. Now, that's due to the US dollar headwind, as you mentioned. Now, the result was, of course, also adversely impacted by the 1.5 million SEC and a shifty order pattern that Morten just talked to. Looking at the sales for the first nine months, then sales came in at 135 million sec. That's an organic growth of 54% and 45% on a reported basis. As we also said before, time and time again, growth will not necessarily be linear, but will more take the form of a staircase. So there'll be some higher and some lower growth quarters. This quarter is actually an example of that where we jumped a lot in Q2 and came in a bit lower on growth in Q3. To us, what's important is that the underlying momentum in the company is the best indicator, being the 12-month run rate, which we call LTM. And as you can see in this slide, for the third quarter as well. It continues on a very strong trajectory and the LTM momentum is up 48% year over year, which is an excellent performance in our view that we're really satisfied with. Moving to the gross margin, it also continues to be very strong in the quarter, 95.6%. It's a little bit down compared to previous quarters, but this is driven by perfectly normal mix effects, customer mix and product mix. which vary from quarter to quarter. And then you also have a smaller adverse currency effect in there on raw materials, since we don't sell what we produce in the same month. So what we've started to sell now is what we produced maybe six months ago or eight months ago when the dollar rate was really, really high. Gross margin, however, it continues to perform well above the guided level of 93%. And we are very pleased with that performance. I'll now hand you back to Morten.