Hi everyone, and welcome to today's conference call. With me today I have Agneta Palmér, our CFO, and in today's conference we'll go through our performance and some highlights for the second quarter before opening up for Q&A.

We can move over to page number two, please. As usual, let's start by looking at the development of our strategic KPIs.

We continue to clearly track in line with plan to increase the share of sales from recurring revenue, accelerating the share of sales from higher-margin products like, for example, our ECLS offering, consumables in infection control, and beta bags in sterile transfer. This is all supported by solid and effective quality processes.

Sales from recurring revenue continue to make up about two-thirds, and higher-margin products are now at 70%. For quality, the number of field actions in relation to sales has decreased significantly, and we're pacing a lot better than last year.

These improvements should, of course, be achieved through responsible leverage and also an attractive long-term return on invested capital. With that, we can move over to page number three, please.

If we zoom in on the second quarter and some of the financial key takeaways for the quarter, overall we deliver a healthy financial performance in the quarter with solid top-line growth. Net sales grew 4.6% organically and with positive development in most of the business areas.

Order intake increased by 6.2% organically. Adjusted gross and EBITA margins were up in the quarter as a result of the tariff refund and also continued positive underlying performance in our business.

This led to a strong cash flow and a strong financial position with financial leverage at 1.7 times, well below the 2.5 times EBITDA as we have as our internal threshold. We can then move over to page number four and some of the key events in the quarter.

We take a step back here and look at some of the key events in our business across the second quarter. When it comes to the offering and customers, we continue to be innovative, and in the quarter we launched three products which will benefit customers and patients.

We have launched the Aquadis Endo 110, which is the next generation of automated endoscope reprocessing, while the Fluobeam LX expands the fluorescence imaging portfolio for small incision surgery. We also launched Vasoview Hemopro 3, which is the latest evolution of our EVH platform, supporting coronary artery bypass grafting procedures.

In Hamburg in Germany, we opened a digital OR innovation center with the purpose of accelerating the path to a more intelligent perioperative workflow. Furthermore, in Surgical Workflows, we strengthened our infection prevention offering in endoscopy by acquiring PannaMed, a UK-based distributor of endoscopic consumables.

We, of course, also monitored the situation in Middle East closely. Our first priority remains to tend to our employees in the region and continue to support our customers.

The region makes up about 2% of sales, whereof Saudi Arabia is around half. Thanks to our team's diligent efforts to reroute shipments, to implement sourcing initiatives, and also take other mitigating actions, the impact on both top line and costs have been very limited so far.

Naturally, this might become more of a headwind if the situation worsens, we continue to follow this very closely. If we then move to sustainability and quality, we reached an important regulatory milestone in June when we submitted the 510(k) application to FDA for our Cardiosave intra-aortic balloon pump.

I'm also happy to see that several of our sustainability KPIs are trending in the right direction, for example, when you look at the product quality KPI and the greenhouse gas emissions noted here on the slide. As briefly mentioned also, when it comes to our tariffs that were communicated separately, we did receive an IEPA refund in the quarter of approximately $36 million.

We can then move over to page number five, and we'll discuss our top-line performance. When it comes to top lines and we start with with order intake, the organic order intake in Acute Care Therapies increased primarily in ECLS therapy consumables, in our covered stents portfolio, and within EVH.

When it comes to Life Science, the organic order intake rose sharply during the quarter following a double-digit growth in sterile transfer and in bioprocessing. WSS continued to decline as a result of the geopolitical uncertainty and the impact that this has on decision-making and the continuing continued challenging investment climate for pharma.

The organic order intake for Surgical Workflows increased slightly, driven by a strong performance in infection control, while Digital Health Solutions and surgical workplace places noted a decline in the quarter. Then when it comes to net sales, we had 4.6% organic growth.

Acute Care Therapies increased its net sales organically primarily due to sales of of stents, ECLS therapy consumables, as well as intra-aortic balloon pumps and consumables in the cardiac assist sub-segment. In Life Science, organic net sales fell slightly despite robust growth in all product categories except for WSS.

In Surgical Workflows, organic net sales increased following growth in surgical workplaces as well as service and consumables in infection control. With that, we can move over to page number six, please, and I hand over to you, Agneta.

Adjusted for currency, opex had a positive impact on the margin by about plus 1.1 percentage point in the quarter, and FX impacted negatively by minus 0.4 percentage points. All in all, this resulted in an adjusted EBITA of 1 billion 478 million SEK and a margin of 17.6%.

Let's move to page seven, please. We remain in a solid financial position.

Free cash flow in the quarter amounted to 1 billion SEK. Compared with last year, free cash flow was impacted by improved operating profit and changes in working capital.

At the end of Q2, net debt increased to 11.5 billion SEK on the back of the final earnout for Paragonix, the acquisition of PannaMed, and the dividend. If we adjust for pension liabilities, net debt is at 9 billion SEK.

This brings us to a leverage of 1.7 times adjusted EBITA, which is well below the 2.5 times which we have set as an internal threshold. If we adjust for pension liabilities, leverage is at 1.3 times adjusted EBITA.

Cash amounted to approximately 2.1 billion SEK at the end of the quarter. All in all, we can conclude that the financial position continues to be strong.

Let's move to page eight, please, and back to you, Mattias.

Great. Thank you very much, Agneta.

Besides the tariff refund, Q2 was the first quarter in a while with a little bit cleaner year-on-year comparison as there were tariffs also in Q2 2025. Even if there was still headwind from FX in this quarter, it has eased.

Looking then at the rolling 12 months development for adjusted EBITA margin, we were at 12.7% two years ago and we're now at 15.2%. Normalized, which means that excluding tariffs, we are at 15.5%.

If we go back to the capital market update that we had in May 2024, we guided for an adjusted EBITA margin span of 16 to 19% by the end of 2028. We're about half way to the end of 2028 from then, and we are closing in on this span here.

The main drivers which will support us there in spite of continued tariffs are the gradual cost release from the second half of this year primarily stemming from the regulatory submission and the future approval processes when it comes to Cardiosave and also Cardiohelp 2. There's also the mix shift to more recurring and high-margin revenue, and there's also the results of our continuous productivity measures and some of the key product launches that we have ahead of us.

With that, we can move to page number nine, please. In terms of the financial outlook for 2026, I think we're all aware of that we live in uncertain times with a lot of geopolitical uncertainties that we need to navigate on a daily basis in our business.

Based on the underlying demand that we see and our regular dialogue with customers, our expectation remains for an organic net sales growth to be in the range of 3 to 5%. This is adjusted for the phase-out of our surgical perfusion product category.

Surgical perfusion is still expected to have some net sales in 2026, but declining from about 250 million SEK to around 50 million SEK. We can then move to page 11, please.

Just to summarize the quarter before we head into Q&A: overall, we had a robust financial performance with solid organic growth in top line, margins came in healthy thanks to the tariff refund and also our improving underlying performance, cash flow in the quarter and our financial position remains strong. For 2026, we reiterate our guidance for organic net sales growth of 3 to 5% adjusted for the phase-out of the surgical perfusion.

Our priorities for 2026, they remain the same as they've been from the beginning of this year. We continue to have the number one priority of addressing the remaining challenges in Acute Care Therapies.

We have the sustainability productivity improvements that we're working on and the cost consciousness when it comes to navigating in this geopolitical uncertainty and also addressing the impact from tariffs. Number one priority, of course, is also continue to creating added value for our customers, which I think is something that we see on an everyday basis in our business.

With that, I open up for questions. Thank you very much.

Hi, good morning, everyone. First, I wanted to ask about the composition of organic order growth, specifically for EMEA.

Obviously very strong at 16%, and you're saying that mainly it seems to do with ventilator orders. I also wanted to ask you, is there any component of Cardiosave return and early Cardiohelp 2 units that you're seeing now in order intake?

Also on the Polish, Italian ventilator tenders, were they sort of very significant and, I guess, nonrecurring? Any color on both of those would be very helpful.

Right. Thanks, Erik.

We don't disclose detailed numbers on product area level, but we do have some sales of both categories that you mentioned here, and also a bit of an impact from sales in Poland, but we don't disclose detailed numbers of this. There's an impact, but it's early days when it comes to both Cardiohelp 2 and also the shipments of Cardiosave.

Thank you. Then I wanted to also ask about sub-segment products as well, I guess, but on the order quality in Life Science, super strong as well, especially Americas.

I just wanted to see if you can say anything about in part what's happening with the market order, and also if you can talk about the mix between sterile transfers versus bioprocessing split, if there's anything nonrecurring in that order intake or if it's just seeing, say, the US markets on a new higher level.

I'd say there is nothing nonrecurring in there. It is sterile transfer continuing to trend very, very strongly as it has for a while, and also then in addition to this we are seeing a bit of a better market climate when it comes to bioprocessing.

Then on the negative side, as I mentioned in the call, we have a slightly more challenging situation when it comes to the WSS business and the capital goods there. There's still some decision anxiety when it comes to our pharma customers, so that is a drag on the business, but there's nothing unusual or of one-off nature when it comes to the order intake otherwise there.

Good. Just quick one, is these types of orders, which I guess are mostly consumables looking at the mix in Life Science, are they converting relatively fast or is this order intake for long-term, to say?

Sorry, which category were you talking about then?

Mainly sterile transfer, but overall consumables within Life Science.

I think there's some lumpiness when it comes to order patterns in consumables in Life Science, but again, there's nothing that stands out dramatically here, I'd say. When it comes to the sales, it is a lot more smooth when it comes to deliveries, nothing out of the ordinary, I would say, in the quarter as such.

Perfect. Thanks very much.

I'll jump back in queue.

Thank you.

Good morning, guys. More product detail questions then.

I was wondering if you could share with us sort of growth rate and demand for your ECMO and intra-aortic balloon pump products. I guess we all saw one of the competing products out there having some issues and weak sales momentum.

I was wondering if that has helped your products in the market.

Thanks Sten. No, we have no evidence of that to us.

I can't talk about competitor positions here or anything that they've discussed in their earnings calls, but when it comes to our business, we basically continue to see the good trend that we've had for our ECLS business, and this is geographically I'd say very, very strong across the board also. When it comes to the balloon pump business, as you know we started to release shipments for CE markets and kind of ramping up the deliveries here as well, but I don't see a big connection between what other companies have communicated here and our growth.

For us, it seems like normal, strong end-demand driven here.

Great, thank you. Then my second question is and this is more of a clarification, I think you mentioned in your remarks cost releases in the second half related to the upcoming launches.

I was wondering if you could perhaps quantify those.

We haven't put a number on this when it comes to the second half of this year. What we've said is really just reiterating what we've talked about for a few years now that all the costs that go into remediate in the two remaining categories in cardiopulmonary and in cardiac assist will start to come down in the second half of this year.

The overall number I'm talking about here is the 800 million SEK of extraordinary quality costs that we said peaked in 2024. We had a little bit of a lowering of these costs in 2025, we expect another lowering in 2026, mostly back-end loaded for '26, and then a little bit of a more rapid decrease of cost in 2027 and '28.

Perfect. Thank you very much for the clarifications.

Thanks.

good morning, and thank you for taking my questions. First, I just want to follow up on the IABP ramp-up in CE markets.

Maybe mentioned, but would you say that there are any stocking effects in that at the moment since you're ramping up or would you say that the sales and orders are very true to the underlying demand?

No, we're still supply-constrained, there's no possibility for anyone to stock any of the balloon pumps that we've started to ship here. We've really just been able to meet the most critical and urgent customer demand.

Great. Thank you.

Secondly, I just wanted to focus a bit on ACT margins here. Could you help us understand and maybe elaborate a bit on the underlying margin development for ACT specifically if we adjust for tariff refunds?

How should we think about that?

Go ahead, Agneta.

Yeah. No, the majority of the tariff refund is related to ACT, but underlying margin performance is rather strong connected to those factors that Mattias also mentioned.

It is a mix shift, it is the high-margin disposables that's come through, it is continued pricing efforts, and it is those productivity initiatives. Underlying margin development is strong, but it is boosted by this refund.

Thank you. Then just a quick final one, if I may.

Recently there has been some discussions regarding US hospital capex levels. I was just curious if you could share anything which you're currently seeing within the US if you've noticed any change recently in customer dialogues.

No, we have the same data as everybody else here, and we actually have seen this since almost a year back in some of the data from our customers as well, but we are very close to the strongly needed acute therapies, we haven't had any real demand impact from our perspective, and I think as I alluded to in the call, the continued dialogue that we have on an everyday basis with our customers is still rather positive and customers seems to be willing invest in the type of products and therapies that we offer because it's something that is needed to treat patients on an everyday basis.

Great. That was all for me.

Thank you for taking my questions.

Thank you.

Hi. Thank you.

Two questions. First, could you update us on the Cardiohelp 2 previous, hopefully, fan problem status?

Also, I'm curious to hear your view here now about the potential to lift margin for the full year and also if we adjust for this tariff refund that you had and maybe somewhat more of that in the second half of the year. Thank you.

When it comes to the Cardiohelp 2 limited market release, this issue that you mentioned has been resolved, we are back into the final phase of that, and then of course in the coming months then move into a full market release, so that issue is behind us. When it comes to the margin guidance, we don't give detailed guidance for 2026, but we have mentioned earlier that our ambition is to improve the reported margin also this year.

We have not changed that at all, but we're not prepared to give any more detailed guidance now. When it comes to the tariffs, we've of course reported what has been refunded to us and also how this is reported in the financial numbers, and we'll continue to report forward-looking from here on what tariffs we end up paying.

I would underline that as of next week, there is a new tariff regime coming into place. We don't know exactly what this is, we'll continue to update you once we have clarity on this, but our intention is only to continue to report tariffs paid going forward.

Could I just follow up on what you said about margin? Would you say that the second quarter underlying margin development was according to what you were planning earlier this year or have you become more confident in this margin recovery we're seeing now after the second quarter?

I think the drivers of the margin if we disregard the tariffs, I think the other drivers of the margins when it comes to impact from leverage on growth, when it comes to the product mix, when it comes to the productivity improvements that we have, I think it's broadly tracking according to the plans that we have, maybe some additional comfort from this, but I think to us, no major surprise. We can see this development on a day-to-day business as we follow up everything that we do.

Thank you very much.

Thank you.

Hi, thanks taking my questions. First one, zooming out on APAC here in this quarter, overall dropping in orders and in sales, although nothing material, but could you just describe maybe climate that you see in the region, perhaps specifically covering key drivers in China?

I think China's like we've said for some time now, we expect to be a challenging market for the foreseeable future. Last year, we did have around 2% growth in China.

We don't guide on individual markets, but I think the headwinds are I think quite well-known by now, and there's no particular dynamic to call out. I think China was one of the weak points in the quarter from a geographic perspective, but it's also something that fluctuates between quarters, I think we have no reason to revise our outlook or anything when it comes to evolution in APAC overall or China in particular.

I think the categories within ACT that we have strong positions in, they continue to have a good demand situation. Surgical Workflows on the other hand, we've had some strong competitive pressure for quite some time, and that's also continued now, and Life Science is a little bit more diverse depending on which product category you look at.

From a demand perspective in China, nothing to call out. We expect this to continue to be challenging, but I think our team locally is doing a very good job in navigating this also.

Good. Thank you.

The next question relates to ventilators. Seems to be doing well.

How would you describe the comparison figures when you're moving in here to the second half of the year compared to what you experienced in the first half? Are they easing up?

We've had some positive boost from this ventilator conversion that was going on and impacted the comps last year. We see we had some of that remaining in Q2, but I think Q3 and Q4 are kind of cleaner from that perspective, and overall the ventilation market has I think stabilized quite well after all this post-COVID turbulence, and we continue to protect and develop our market share.

Good. Final question is what is a reasonable timeline from now as to when you're able to sell Cardiosave and the full ECMO offering in the US without restrictions based on your knowledge?

Yeah. That is a important question, but very difficult to give a timeline on.

When it comes to the timeline, the part that we can impact, which means the submissions of 510(k) applications, I think we're on top of that, so as I mentioned in the call here and we have submitted the 510(k) application for our intra-aortic balloon pump. When it comes to the ECMO indication, it is second half of the year, and we'll come back specifically when that happens as well.

No change to plans or I think the time plan when it comes to submissions either. Then of course approval processes it's a dialogue that we have with FDA and not something I can give you any guidance on.

H2 is both the Cardiohelp and the HLS set then?

It's the complete submission, yes, for US ECMO indication, which means both hardware and consumables.

Perfect. Thank you.

Good morning, guys. Thank you for taking my questions.

I'll take them one by one. First one, you mentioned price adjustments as a contributor to growth, I'm kind of wondering how much did that contribute.

You mentioned in Q4 that you expect prices to contribute about 2% for the full year. Does that still stand or have you been able to increase prices further?

No, it's around the same level, no change here.

All right, perfect. Thank you.

Then on Life Science, growth declined despite solid development in all categories except WSS, how big part of Life Science sales are WSS roughly?

We don't disclose detailed numbers on categories, but it is the legacy part of our portfolio, I think the longest offering that we've had in the market, and it consists also capital and service close to around 50-50 for those, but no detailed numbers on exactly what the size of the business. It is the one with the strongest headwind in Life Science right now.

Understood. My last question is on field actions.

You report field actions per SEK billion, and it was up quarter-over-quarter by 0.1. What was the reason for that increase?

We don't disclose I think detailed field actions. I think the information that you can get is from what is official published from regulatory authorities here.

No other particular drivers to call out here. This is also something that can vary quite a bit over quarters, nothing to call out here in terms of product categories or geographic markets.

Thank you. That was all for me.

Right, thank you.

Morning, guys. First question just on the revenue guidance.

Obviously 2.7% year-to-date. I just wondered if the top end of the range at 5 is really in scope and what drives the acceleration in the second half to get there.

Thanks.

We're not going to break down the guidance span into any more detail here. We have fairly good momentum and reiterate the span as such.

When it comes to the demand drivers, I'd say overall is what we've talked about for a while. We do see good traction when it comes to the cardiopulmonary business and the ECLS therapy products that we have.

We expect sterile transfer to continue to be a strong point as well within Life Science, but we can't give you any more details on where we expect to land and what's required in terms of the guidance span here.

Fair enough. Then just on margins, on the cost inflation side, is there anything you want to call out in terms of additional cost inflation, either the impact on the second half or into next year?

Thanks.

This is something we're monitoring very, very closely. Far, we haven't seen any significant impact.

I think the biggest individual impact has been when it comes to transport and transport surcharges, but again, not material at this stage. We continue to monitor all different categories very closely, and we have a productivity program in place since quite a while.

We were hoping maybe for some of these benefits to drop through to the bottom line, but right now they have more of a mitigating effect towards some of the inflationary pressures that we see. Definitely on our radar, and thus far manageable, and I think we will be able to offset hopefully most of this with the continued productivity improvements that we're working on.

That is good call. Thank you.

Then just finally, on the IABP, you say you're supply-constrained. Are you planning on ramping up capacity and if so, when do you expect that to be able to meet demand?

I can't give you a timeline. We are continuously ramping up capacity here, but there are some constraints when it comes to components and also when it comes actually to labor and ramping up.

We've had a lot of capacity constraints because of the remediation program and having to do quite a lot of testing when it comes to products and so on. It is an upward trajectory, and I can't give you a timeline for when we will be kind of in balance here.

Great. Thank you.

Thank you.

All right. Thank you very much.

Thanks for tuning in. I think we already made the summer here, appreciate you taking the time to be with us today, and wish you a great rest of the day.

Thank you very much.