Vimian Group AB (publ)

Welcome to Vimean Group Q3 Report 2026 presentation. During the Q&A 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, CEO Alireza Tajbash and CFO Karl-Johan Zetterberg-Boudry. Please go ahead.

Good morning and welcome to Vimean's third quarter earnings call 2026. I'm Olli Taibach, Group CEO, and will together with our CFO, Karl-Johan Setteberg Bodry, present the results for the third quarter. We continue to deliver strong performance with strong revenue and earnings growth in the quarter. Organic growth remains at double digits, which is well ahead of overall animal health market. Our cash flow improved significantly compared to the previous quarter with operational cash conversion of 71%. We also see our M&A pipeline progressing in the right direction. And after the end of the quarter, we entered soft-tissued surgery through the acquisition of Norfolk Medical Products in the US. On the management side, we finalized the recruitment of our new Head of Specialty Pharma, Hans Garplöt, bringing on board another highly experienced leader to the team, and promoted long-term team member Andrea Tidholm as head of M&A. Our business continues to outperform the overall animal health market, which reflects the strength of our strategy, which focuses on attractive market niches, but also strong brand portfolio and disciplined execution. Looking at the numbers more specifically, we report 15% revenue growth and reached 120.3 million euros in revenues in the third quarter. Organic growth was 11% with strong momentum across all segments. 3% contributions from acquisitions and 1% positive impact from currency movements. Adjusted EBITDA grew 14% to 29.2 million euros with strong growth across all four segments. Margin was 24.3%. Moving on to Specialty Pharma. Specialty Pharma's underlying business momentum remains strong with 7% organic growth driven by double digit growth in the therapeutic areas, allergy, dermatology and specialty pharmaceuticals. As previously communicated, the therapeutic area Specialized Nutrition was impacted in the third quarter by a strong prior year comparison. Adjusting for the impact from the sales campaign in Specialized Nutrition, organic growth in Special Pharma was 11% in the third quarter. During the quarter, we launched an updated version of our allergy test platform, Pet Allergy Explorer or PAX, that covers an additional 25 allergens. Pax is the most advanced veterinary allergy test and there are several third-party scientific studies reaffirming the test platform's ability to outperform other tests on the market. We continue to drive strong profitability in specialty pharma and adjusted EBITDA grew 12% to 15.2 million euros and the adjusted EBITDA margin improved to 30.3%. Our MedTech business achieved another quarter of double-digit growth reaching 15% in Q3. Both the dental and orthopedic business delivered double-digit growth in the third quarter. In the dental business, growth was driven by strong commercial execution and deepened penetration of key customer accounts in the US, as well as strong growth in APAC. In the orthopedic business, growth was led by APAC in Europe and our North American business delivered another quarter of growth in unchanged market conditions. We continue to drive education in the quarter and train 1,300 veterinarians in the quarter across our dental and orthopedic businesses. Adjusted EBITDA grew 20% to 10.5 million euros and the adjusted EBITDA margin improved to 24.4% driven by strong growth and improved gross margin in our dental business. I'm pleased with the development our Medtech business and the new management team continues to review the business to address operational improvements. In our veterinary service business the momentum remains strong with 10% organic growth and 12,400 member clinics at the end of the quarter. During the quarter we officially entered two new countries which we talked about previously, Japan and Portugal receiving positive feedback from the veterinary community. Adjusted EBITDA grew 28% to 5.9 million euros and the adjusted EBITDA margin improved to 30.5% including positive effects in the quarter from mix and our strategic partner agreements. Our diagnostic business delivered 13% organic growth in the quarter driven by extraction and PCR test sales in the livestock business. Adjusted EBITDA grew to 0.5 million euros. The adjusted beta margin was 7.2%, including our investment to diversify companion animal diagnostic. Looking at our M&A activities, we have completed five acquisitions year to date and continue to have an active pipeline covering both large new platform acquisition as well as smaller bolt-ons. Earlier this week, we signed the acquisition of Norfolk Medical Products, a leading niche provider with soft tissue surgery. Norfolk is a US-based business that develops, manufactures and sells specialized implants and consumables, including, for example, a well-renowned urinary bypass implant for cats and dogs. The acquisition adds annual revenues of around $6.9 million and expands our medtech offering into a new, fast-growing niche. Norfolk's portfolio is complementary to our existing surgical offering and operating model are well aligned with focus on close relationships with the specialist community and education to unlock market growth. Profile of the customer base is also largely the same as ours. Many orthopedic clinics also do soft tissue surgery and Norfolk has currently a very small sales force. So we see good opportunities to grow the business by leveraging our medtech sales force across the globe. We continue to deliver our sustainability agenda focus on animals, people and planet integrated into the core of our operations. In the quarter, we completed our employee experience survey with continued high engagement scores. We also held our first global leader conference with 100 leaders from around the world to strengthen the cross-company culture and collaboration across the group. And with that, I will hand over to Kalle for deeper insights into the financials.

Thank you very much, Olli, and good morning, everyone. As mentioned, I will give you a more detailed view on the financial development in the third quarter. Adjusted EBITDA in the third quarter was 29.2 million euros, an increase of 14%, corresponding to an adjusted EBITDA margin of 24.3%. As we have previously stated, we foresee a more stable margin development for the full year 2026 versus 2025 driven by our investments to drive growth in the Medtech segment. The slightly lower margin in the third quarter specifically compared to the same period last year is primarily a result of higher central costs. Central costs amounted to minus 3.0 million in the quarter, an increase from minus 1.8 million last year. The increase is mainly a result of expenses related to our long-term incentive programs, in total 0.6 million euro in the quarter. These are non-cash IFRS expenses that will recur for the duration of the three-year programs. We report an operating profit of 20.5 million euro, a 17% increase from last year's result of 17.5 million. Items affecting comparability were similar to the same period last year and totaled minus 2.1 million euro, mainly attributed to acquisition costs in medtech and veterinary services. Net financial items amounted to minus 6.9 million euro and consisted of three main parts. One financing expenses of minus 4.2 million with an average interest rate of 4.0% during the quarter, partly offset by interest income of 0.8 million euro. And secondly, a quarterly discounting impact of minus 0.9 million and negative impact of minus 2.2 million from probability adjustments related to contingent considerations, mainly from new acquisitions. and lastly a negative impact of 0.5 million from exchange rate effects on the revaluation of debt. Income tax expense for the quarter was minus 4.3 million at an effective tax rate of 31%. In the quarter the tax expense as a percentage of pre-tax profit was negatively affected by probability adjustments related to continuing considerations and other non-deductible expenses. In total, this resulted in a profit for the period of 9.3 million euro with an earnings per share of 2 euro cents for the quarter. Cash flow from operating activities reached 22.6 million corresponding to cash conversion defined as operating cash flow in relation to EBITDA of 71% for the third quarter. Networking capital amounted to €116.4 million at the end of the quarter, equal to 25% of revenue and an increase from €114.1 million at the end of the second quarter, which equaled 26% of revenue. Cash flow from investing activities amounted to minus €21.0 million, primarily consisting of acquisition and earn-out payments. Capital expenditure amounted to 4.1 million, which is 3% of total revenue, with 2.9 million related to investments in internal R&D and software development. And investments in property, plant and equipment amounted to 1.2 million. Cash flow from financing activities totaled 2.4 million euro, mainly from proceeds from borrowings. At the end of the quarter, net debt amounted to 262.4 million, which is down from 273.7 million at the end of the second quarter. Cash and cash equivalents amounted to 55.6 million, an increase compared to 51.6 million at the end of June. External lending was 263.1 million at the end of the third quarter. This resulted in a leverage at the end of the quarter equal to 2.0x, a decrease from 2.1x at the end of the second quarter. We continue to be well capitalized with an ability to execute on our strengthened acquisition pipeline. With this financial review, I hand the word back to Ali for concluding remarks.