OssDsign AB (publ)

Hello and welcome to OsterSign's Q2 presentation. My name is Elvin Older, I work here at D&B Carnegie and I will be moderating today's presentation. I'm joined here by Mark Vo, the CEO of OsterSign and Anders Svensson, the CFO. I will now leave the word to the OsterSign team for their presentation.

Thank you. Good morning, everyone. This is Mark Waugh, and I'm the CEO of Ost Design. And if you're new to our quarterly calls, I'll mention again that I joined the company January of this year. I also have our CFO, Andrew Svensson, with me today. And we're going to walk you through our second quarter 2026 results. As always, when we do these presentations, the normal disclaimer. Moving into our Q2 2026 highlights. For the quarter, AusDesign sales of SEC 37.8 million, or approximately USD 4 million, were essentially flat versus Q1 sales performance, and that was in line with my prior guidance. On a year-over-year comparables basis, Q2 translated to a 16% decline in constant currency terms, although that was on a very challenging comparable driven by some large bulk orders occurring in the last day of that same 2025 period. Gross margin and EBIT both improved for the quarter versus Q1. I'll let Anders cover the details on those after I finish with these highlights. And the science behind Catalyst and the results we continue to publish remain strong. I've mentioned before that our preclinical and our clinical data were two of the biggest reasons I joined the company. We continue to share that data with our customers during the Southernmost Spine and the International Society for the Advancement of Spine Surgery meetings recently. Additionally, on June 3rd, Ost Design shared the publication of a new scientific article in the Journal of Bone and Mineral Research, or JBMR. This was a preclinical study that evaluated Ostazine Catalyst as a standalone bone graft in trauma versus an earlier generation bone graft. And I'm pleased to tell you that the results showed significantly more bone formation with Ostazine Catalyst at earlier time points, as well as clear evidence that the graft is remodeled over time, or in other words, broken down and replaced by bone growth in the body. This study and others continue to support the outstanding performance of fourth generation nanosynthetic bone grafts like Catalyst. Next, some additional significant organization updates. On June 25th, we announced Adam McAllister as Ost Design's new VP of Sales. Adam is an experienced medical devices sales leader with a great track record of leading teams to achieve above-market performance in his previous roles. He's quickly getting up to speed, working closely with our regional sales teams. And regarding those teams, our new area sales director for the East also started on August 10th. That role had been vacant since May, and we screened and interviewed a number of candidates, and I'm very pleased with who we were able to hire for this important position, and I know she's going to be a great asset for our sales team. Overall, since January, when I joined the company, we've replaced more than 50% of OS Design's commercial team. I've mentioned before that our path to doubling the size of our team, which was a goal set forth by my predecessor, would not be a linear progression and we'd see some turnover alongside the additions we're making. The changes we've made have better positioned us for commercial execution going forward. We'll continue to add members to this team and I don't see an immediate ceiling on that as long as our hiring both supports and delivers on our commitments to growth. I also want to let you know that I'm personally involved in our hiring process for the commercial team members because it's important to me that we're hiring the right people both professionally and from a cultural fit perspective. Finally, regarding organization, I mentioned in our release that since February, our entire team's incentive structures are aligned to growth. That's another important dynamic that ensures our reward structure is tied to our shareholders' expectations. And before I hand things over to Anders, I'll reiterate that I still believe we can achieve the goals put forth last year as part of Ost Design's scale-to-profit strategy. The market is highly competitive, but Ost Design Catalyst is as well. And as you can see, we're making aggressive changes to return our sales trajectory to strong growth. I'm also pleased with the progress we've made on our next product release, MIS Catalyst. I'll have more to communicate next quarter on this launch, but things are moving forward quite nicely since our last release call. I'll now hand you over to Anders, who's going to walk you through the financial results this quarter in more detail. Anders?

Thank you, Mark. As Mark mentioned, in Q2, we saw a decrease in sales compared to the second quarter of 25. In SEC, we reported 37.8 million in sales. That's compared to 46.5 million last year, which translates to an 18.7% decrease. As you can see here in the growth chart, we still experienced some US dollar headwind on sales, but considerably less than we did in previous quarters. So the actual underlying decrease, as Mark mentioned, is 16% for the quarter. You may also remember that our Q225 sales were inflated by some last-day orders, which would explain roughly half of that organic decrease. Still, we acknowledge that there's room for improvement, and we're working hard to achieve that. Now, when we presented our Q1 results, we guided that Q2 sales were expected to come in around the same level as Q1. And as you can see in the growth chart here, we actually grew by 2.4%, quarter over quarter. But as you can also see, the growth was entirely exchange rate driven. So, in fact, Q2 sales did come in at the same level as Q1, as per our guidance. Moving to the LTM chart. You've heard us say so many times now that growth is not going to be linear over time. More likely, take the form of a staircase. And I guess the current LTM slide is case in point, with the decreasing last 12-month run rate presenting as our current sales plateau. The latest 12-month period sales are 7% higher than the 12-month period leading up to Q2 2025. which, of course, is an increase, but much less of an increase than we've seen in previous observations. As stated earlier, our sales reorganization, which is still ongoing, has been quite extensive, and we expect those efforts to start delivering improved commercial momentum later in the year. On the gross margin, 92.1%, was an improvement over the 91.6 in the first quarter, but clearly below the 96.8, very high margin reported in Q2 last year. Now, there are so many factors that impact gross margin. I can't go into detail on all of those, but suffice to say that the main drivers behind our current gross margin development is product and customer mix, as was the case in Q1, but with very different mix effects. There are still some exchange rate-related production cost effects from when the dollar peaked in early 25, but the main current driver is mix. And with that, I'll hand you back to Mark.