OssDsign AB (publ)

Hello and welcome to today's FineWire broadcast presentation with Host Design. After presentation, there will be a question and answer session. So if you have any questions, you can submit them using the form on the right. With that said, I'll hand the floor to you, CEO Mark Volk or CFO Anders Svensson. Please go ahead.

Thank you. Thank you. Welcome, everyone. My name is Mark Waugh, and I'm the new CEO of AusDesign, effective January 1st of this year. I have with me our CFO, Anders Vinson. Today, we want to walk you through our fourth quarter and full year 2025 results. As always, when we do these presentations, the normal disclaimer. Before we go into the details, let me give you my view of the highlights in the quarter. First, we continue to see strong growth. Constant currency growth in U.S. dollar sales for Q4 was 24% and reported 9%. Although this predates my tenure with AustDesign, I'm very proud of the team's achievement of full-year constant currency growth of 45% or reported 35% due to the U.S. dollar to SEC exchange rate fluctuations. Two, it's worth noting that the optics quarter over quarter are still skewed by further deterioration in the U.S. dollar to SEC exchange rate. We've seen further erosion in the U.S. dollar, which impacts our reported figures in SEC, given our sales are generated in U.S. dollars. Three, we continue to generate strong gross margins, and we saw further improvement in adjusted EBIT levels net of some transition costs we incurred with our CEO change. During the quarter, we saw an additional publication of Ostazine Catalyst and a challenging revision foot and ankle case showing rapid bone ingrowth. This confirms, again, the potential for wider application in adjacent orthopedic segments. We also gained access in two new Western Region IDNs, allowing us to pursue new business within their numerous facilities. Finally, our scale-to-profit strategy is on track. The full-year performance at 45% constant currency is outstanding, but frankly, the 24% growth in Q4, while solid, is slightly disappointing. A slowdown in the pace of recruiting and hiring sales team members impacted our fourth quarter growth rate. Our commercial team are already addressing that and recruiting and hiring with a greater cadence. I'm pleased to communicate to you that the entire team is fully aligned and refocused on delivering our strategic imperatives as we begin 2026. I will now hand you over to Anders to walk you through the financial results for the quarter in more detail.

Thank you, Mark. So as Mark mentioned, looking at sales in Q4 first, we continue to see a pretty good growth in the company during the quarter, we believe. So the reported growth of 24%, of course, on a constant currency basis, that is. The reported basis is so significant punished by the US dollar headwind. It's a bit extreme right now. And it has continued to decline in Q4. But as you also may remember, it took a really big jump up in Q4 last year. So the discrepancy is just extra large right now. Hopefully, there won't be much more further down the dollar can go. If we look at the full year, we did... 180 million, 0.2. Now, 45%, regardless of the Q4 number, regardless of the dollar, 45% growth is, to us, a fantastic growth number for the full year. So we're very pleased with that one. And as we've also said before, over and over again, that growth will not necessarily be linear in our business and for our company. It will more take the form of a staircase. with some higher quarters and some lower quarterly increases. And this was particularly evident, as you may remember, between the second and the third quarter. We had some business shifting between the quarters. It's also the case in Q4. Now, added to this, as Mark mentioned earlier, we've also experienced a slowdown in the recruiting and hiring of sales team members in the second half of the year. And that's just contributing to a reduced growth rate for that period. What's important, however, is the underlying momentum that you see on this slide in the company that we see as the best indicator at the 12 month run rate, which we call LTM, which of course after December is exactly the same as the full year. And as you can see for the fourth quarters continues here on a pretty strong trajectory and 45% up for the year. Shifting to the gross margin, It continues to be very strong in our design catalyst for the fourth quarter. 96.3% for the quarter, which is also what it was for the full year. That's a step up from the previous quarter in 25. And to remember as well, this is despite the adverse exchange rate effects on sales and COGS, and especially on the raw materials, because a lot of the products that we're selling now, they were produced at a more costly time period. with a much higher US dollar sec rate. But gross margin continues to perform very well and a long way above the 93% that we've guided. So very happy about that. And now I'll hand it back to Mark.