Vimian Group AB (publ)

Welcome to the Vimeon Group Q3 Report 2025 presentation. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now, I will hand the conference over to the speakers, CFO and Interim CEO Karl-Johan Zetterberg-Baudry and Magnus Schellberg, Vimeon Specialty Pharma. Please go ahead.

Good morning, everyone, and welcome to Vimeon's third quarter earnings call. I'm Kaliwan Sattabaibodri, CFO and Interim CEO, and with me today is Magnus Kjellberg, who's leading Specialty Pharma, our largest segment representing almost 50% of Indian. We'll go through the quarterly results, and Magnus will give you some additional insights to our Specialty Pharma segment. We deliver strong revenue growth of 19%, with 9% organic growth in the third quarter. We also saw strong earnings growth with adjusted EBITDA up 17% in the quarter. Both specialty pharma and veterinary services continue to deliver strong performance, and our medtech segment returned to organic growth in the quarter after a tougher second quarter this year. In August, we received the positive news in the US indemnification dispute. The court awarded us $40.2 million in damages, which means that we're entitled to compensation exceeding the amount we paid in the settlement with deficiencies in 2023. Our M&A pipeline continues to build, and we're working hard to progress key targets in the pipeline. Turning to the numbers, And looking at the past years, Veeman has a strong track record of growth and profitability with 16% compounded annual revenue growth and 14% adjusted EBITDA CAGR between 2022 and the third quarter of 2025. For the third quarter isolated, we reported 19% total revenue growth reaching 104.3 million euros. Organic growth in the quarter was 9%, driven by strong performance in specialty pharma and veterinary services. And it was also satisfying to see Medtech returning to organic growth of 5% in the quarter. In total, we had 40% contribution from acquisitions and 4% negative impact from currency movements in the quarter, predominantly from the US to Euro movements. We delivered strong adjusted EBITDA growth of 17% in the quarter to 25.5 million euros. Margin was 24.5% compared to 25.0% the same period last year. Negatively impacted by our investments in the commercial organization in MedTech Orthopedics and the consolidation of the dental business ION3 that has a different financial profile. With the headline overview, I will hand over to Magnus for an update on specialty pharma, followed by a walkthrough of the other segments and financials.

Thank you, Karl-Johan. For specialty pharma, we are satisfied to deliver another quarter of all-time high revenues for individual quarter. We delivered double-digit organic growth of 11% with growth across all four therapeutic areas. The strongest contribution this quarter came from specialty pharmaceuticals and specialized nutrition. In specialty pharmaceuticals, new products, new contracts with corporate clients and internationalization were key growth drivers. In specialized nutrition, we got the opportunity to do another national campaign across the US with one of the leading retailers that supported growth in the quarter. Adjusted EBITDA grew band organically with 14% and we had 150 basis points margin improvement driven by the strong revenue growth and good drop through to bottom line. Turn to the next page, I will put Q3 performance into a strategic context. We have a two-pronged strategy, organic and M&A driven growth. Our organic growth strategy revolves around three pillars, cross-selling, innovation, and education. Cross-selling, we currently have 16 cross-selling initiatives ongoing, representing 18% of sales. A key initiative has been to nationalize our portfolio by going direct with our own sales force as opposed to a distributor. Our acquisition of ICF in 2020 is a case in point. ICF, great topical product range, great brands, great presence in Italy, proprietary production, very synergistic with our alley range, but largely an Italian phenomenon, relying upon third-party distributors outside of Italy. We have internationalized the business by terminating the distribution contracts for the veterinary channel in France, the Netherlands, and Belgium. We now go direct with our own sales force in these markets. We have also expanded our channel presence. We have launched a range online in the UK, Scandinavia, Germany, and France. All in all, we have grown the international business of ICF during our ownership by 18% KGAR. In Q3, our internationalization and channel expansion initiatives of the ICF range continued with good momentum. 60% of cross-selling growth came from these ICF initiatives. Innovation. We launched 21 products in Q3 and currently have 70 products in pipeline. Innovations in antimicrobial otology continue to be important. Our antimicrobial otology range typically substitutes antibiotics. Also, it is very synergistic with our allergy range. 50% of all allergic dogs get otitis as a secondary infection. In Q3, we launched a follow-up to our best-seller autodyne called Peptivet4. It reduces bacterial growth in the air canal. It includes two novel peptides, which we have patented. Also, the composition ensures a slow release function, so it lasts between applications. Education. We attended 30 congresses in Q3. A key highlight was the British Equine Veterinary Association Congress in Birmingham, where we were a gold sponsor. We were also a gold sponsor at the European Society of Veterinary Dermatology Congress in Bilbao. PETBET4 was an important launch at the Congress, and we continue to promote the advantages of our molecular algae testing platform, PET Algae Explorer, PACS, at the Congress. M&A. The prospects for M&A are strong, Our industry remains highly fragmented. We have taken our business from 4 million euros of sales at inception 10 years ago to more than 180 million euros today, a growth of 45x. And M&A has been an important tool for the trajectory. And M&A will continue to be an important tool going forward. Year to date, we have screened more than 235 targets in existing and new therapeutic areas, a testament to the fragmentation of the industry. More M&A will also unlock more cross-selling opportunities. Turning to the next page, I will provide more color on cross-selling. 39% of year-to-date organic growth comes from cross-selling. Increased direct market presence and internalization has been the main contributor at 49%. Channel expansion, 35%. And the remainder has come from substituting third-party products with our own products. Our cross-selling strategy going forward rests on three pillars. Grow existing cross-selling initiatives, launch new cross-selling initiatives, we have eight to be launched in 2026, and create new cross-selling initiatives from M&A. I will now hand back to you, Kalle-Johan.