Good morning, everyone, and thank you for dialing in to the Q2 2026 earnings call for the Vitrolife Group. I would like to start with three key highlights in the quarter.

We delivered record revenue of SEK 358 million in Consumables, which represents 15% organic growth in our Americas region. A net income of SEK 129 million and an EPS of SEK 0.95.

We also launched EmbryoCath and EmbryoViewer Pro, so for the first time, we can compete in the embryo transfer segment. EmbryoViewer Pro, which we recently showcased at the ESHRE Congress, is an advanced software program for our EmbryoScope time-lapse system.

I will now move us on, and I would like to provide you with an overview of the market in each of our regions, starting with EMEA. European IVF cycle activities appear to be at normal levels.

However, in the EMEA region, the Middle East crisis is impacting IVF cycles significantly. We do not, in the Vitrolife Group, see Middle East distributors restocking at this time.

In fact, the airspace has been regularly closed, so even shipping goods into the region is a challenge. In the APAC region, which I recently visited myself, in China, we see that IVF cycles are declining year-over-year.

This trend is expected to continue based on population demographics. The Southeast Asia within APAC is growing as access increases.

In Japan and Korea, the combined markets are in low single digits, although the birth rate in Korea has rebounded significantly in 2026, with total fertility increasing above 0.9 for the first time in many years. So one could reasonably expect a pickup in cycles in South Korea.

In the Americas region, if we look at the U.S., cycle activity was very slow at the start of Q2, so in April and May, but it started to pick up in the month of June. There were wide variations between the U.S.

states, with wealthier areas like Massachusetts, New York, and Southern California performing stronger. In South America, we see an increased presence of low-cost generic competitors in Genetics.

Cycle activity remains robust in the Americas region, in South America, within the Americas region, just to be very specific on that one. Okay.

Moving on to look at the performance in our largest region, EMEA, which accounts for 37% of our global revenue, as is evidenced from our donut here on the right-hand side of the slide. We delivered 1% organic growth in local currencies, excluding the exited business of NACE and GPDx.

Western Europe remained strong. However, IVF cycles, as I've just mentioned, are significantly down in the Middle East, and this weighed on the regional performance.

Consumables grew 4% in local currencies, with Europe performing well and the Middle East behind prior year. Technologies increased 3% in local currencies, with installs in Europe offset by low capital demand in the Middle East.

We are also seeing positive trends month after month in the consumable revenue stream from our EmbryoScope systems. Genetics decreased by 3%, with the Middle East volumes down substantially.

We've been focusing on driving margin improvement in all regions, so it's very pleasing to see the positive trend in our gross margin. If you just look at the chart, for the first time, you won't have seen this in previous slides that I've presented, but we have added the gross margin trend.

What you see here is a 2 percentage point improvement in gross margin, primarily driven, in the case of EMEA, by the exit of NACE and GPDx and also our operational efficiency program, which we have been focusing on across the Vitrolife Group. We will now move on and look at the Americas.

In the Americas region, we delivered 1% organic growth in local currencies. The share of revenue coming from Americas now stands at 34%, as you can see here in the donut on the right-hand side.

North America performed well across the portfolio. You know that this is one of our key focus markets.

We've been doubling down here for a couple of years now. South America's exit from low-profit genetic accounts reduced top-line growth, but it improved the regional profitability.

Consumables increased by 15% in local currencies, with significant gains in media in North and South America, and we are delighted with these wins because we've really doubled down to take share here, and I want to thank my team for their huge efforts in bringing these wins over the line. Time lapse decreased by 9% due to a large capital deal with the clinic chain in the same quarter last year, which most of you will likely remember.

South America had a very strong capital sales quarter as we increase our focus on EmbryoScope, both increasing the penetration of the capital systems but also the utilization of those EmbryoScopes. Genetics decreased by 3%, with continued growth in our key focus market of North America, offset by the exit of low-profit accounts in South America.

This is a strategic decision. We do not want to play in low-profit segments.

We are a premium service, differentiated company with best-in-class technology in genetics, and we will not follow low-price generic competitors. A 3.6 percentage point improvement in our gross margin, and this is really down to our increased focus in Consumables in Americas.

Again, this is a strategic decision to focus on this area, and we believe we have further opportunities in Consumables and in Technologies, particularly in South America, but also in North America. We will now finally move on to the APAC region, where we had a decline of 1% organic growth in local currencies.

APAC now accounts for 29% of our global revenue. I'm delighted to report that Japan delivered strong growth, our best in several years, in fact.

We continue to expand our share across the portfolio in Southeast Asia. However, as I've mentioned, demand in China slowed further as the quarter progressed.

Sales and Consumables decreased by 5%, with a strong performance in Southeast Asia and Japan offset by weak demand in China. Technologies increased by 6%, primarily driven by capital sales in Japan.

This is particularly pleasing to see because Japan is a high-penetrated market for EmbryoScope. Big call-out to our Japan team for the really nice job that they have done there.

Genetics increased by 2% across the region, so slightly above the regional growth rate for APAC at present. A 1.4 percentage point increase in gross margin, driven by price increases and operational efficiency.

The team on the ground have done a really nice job here. Driving price gains in a very competitive market is not an easy thing to do, and I think the Vitrolife Group APAC team have done a really nice job here.

Okay. I'll move on to the final slide, my final slide at least, before I hand over to Pär.

As you know very well by now, the Vitrolife Group has a mission to be the leading global partner in reproductive health, striving for better outcomes for patients. We focus on three key focus areas to get to that coveted number one spot.

They are growth, innovation, and operational excellence. How are we doing?

Are we advancing in these key areas? When it comes to growth, we are driving profitable growth through improved market and customer segmentation, and I think you can really see this in this quarter.

We are doubling down on the markets, on the areas of the portfolio, and on the customers where Vitrolife Group can drive profitable growth. We are gaining share in Consumables.

I mean, 15% organic growth in the Americas in media. That's well above the growth rates there, and we are increasing the penetration and utilization of EmbryoScope.

We are also building out our platform solution with the combination of EmbryoScope and eWitness. In relation to innovation, we're not just talking about innovation.

We launched EmbryoCath and EmbryoViewer Pro, which we showcased at ESHRE. However, we also have more launches planned in the coming quarters, and I really want to thank our R&D and innovation teams for the work that they've been doing there.

We're also advancing the efficiency of IVF clinics, partnering with our customers, and driving the use of AI in embryo selection. When it comes to operational excellence, we continue to invest in digital capabilities to improve the customer journey and our connectivity with clinics.

We have taken actions, and you can see this in our quarterly result. We have taken actions to optimize our cost base across operations and back office.

We are doing what we said we would do when it comes to our restructuring program. I would say in summary, we are advancing our mission and we are doing it in a profitable, sustainable way.

I will now hand you over to Pär, who will take you through the key financials.

Thank you, Bronwyn. Let's start with just some more information on the geographic segments.

Bronwyn just went through the slides, explaining sales and gross income and gross margin. I just want to add the market contribution.

We had same pattern there as on the gross margin improvements in all regions and also for the total. America ended up at gross contribution margin of 33.8% as an improvement of more than 4 percentage points compared to quarter two last year.

EMEA 39.4% compared to 35% last year. APAC 44% compared to 41% last year.

In total for Vitrolife Group, 38.8% compared to 34.7%. The market contribution is of course improved.

Part of it is the improved gross margin, but also the reduction in OpEx related sales and marketing cost. Moving to the next slide.

The highlights. The net sales ended up at SEK 857 million, that's -2% growth in SEK.

I will come back to more details on net sales on the next slide. Our gross income SEK 517 million, which represent a margin of 60.3%, almost 2 percentage points improvement from last year.

An EBITDA of SEK 295 million, equal to EBITDA margin of 34.4%, compared to 27.8%. In the quarter we had of course the effect of the strong gross margin, but also that we are working hard on the cost reduction program.

We also have some one-time items in the quarter amounting to SEK 13 million. The split on the sales development.

The -2% growth in SEK is explained by an organic growth of 1%. We have the exit of the NACE and GPDx that had full effect in quarter two that represent -2%.

We still have a negative currency impact on top line, although it's much less now. It's only 1% now, so that's good.

All in all, this explains the 2% negative growth in SEK. Let's have a closer look at the gross margin development the last five quarters.

Strong development, 2.3 percentage points improvement from Q2 last year. It's a result of our strategic decision to focus on higher margin products and markets.

We see an improved gross margin in all regions and all product groups. A minor positive effect is also from the mix coming from that we have growth in Consumables, flat in Technologies, and negative growth in Genetics.

We have also a positive mix effect in the quarter. If we have a close look at the operational expenses the last five quarters, we have a reduction of SEK 48 million compared to Q2 last year.

We continue to see the reduction that we have had now for three quarters in a row. It's reflecting the positive impact of the ongoing restructuring program and continued cost discipline.

Also as I mentioned, we have a positive one-time effect amounting to SEK 30 million, primarily driven by VAT accrual release, but also in the quarter, we had a positive currency revaluation effect of SEK 8 million. It was SEK -5 million Q2 last year, so it's a SEK 13 million swing there.

On the cash flow, our cash flow for the quarter amounted to SEK 114 million compared to SEK 151 million Q2 last year. We had a negative impact on a buildup on working capital, mainly driven by an increase in our operating receivables, but also a buildup on inventory ahead of the vacation period.

Summary of the key financials then. Sales, SEK 871 million, SEK 857 million in Q2.

Gross margin 60.3%. EBITDA SEK 295 million.

Strong EBITDA margin of 34.4%. Net income SEK 129 million compared to SEK 100 million Q2 last year.

Our earnings per share, SEK 0.95 compared to SEK 0.74 last year in Q2. Our operating cash flow, SEK 140 million compared to SEK 151 million.

Our net debt EBITDA ended up at 0.7x compared to 0.9x. As one also mentioned, yesterday the board approved a share repurchase program, which we communicated through a press release yesterday night.

It is a program to repurchase shares up to a maximum of SEK 500 million, starting tomorrow until the AGM 2027. This program aims to optimize the capital structure and enhance shareholder value.

The repurchase will be made on Nasdaq Stockholm in line with applicable regulations, and treasury shares may not exceed 10% of outstanding shares. This repurchase program is in addition to Vitrolife Group dividend policy.

The AGM on the 5th of May 2026 approved a dividend of SEK 1.10 per share, totaling SEK 149 million for full year 2025. That was my last slide.

We open up for Q&A.

Good morning, and thank you for taking my question. I will keep it to one as wished, and I want to keep it to Genetics.

Just to make sure we get things right, you mentioned how the Genetics exits or tests are impacting the Group development. If you break it down and focus just on the Genetics development, how do you see things moving following the exits of the test, how do you see things progressing going forward?

Thank you for your question, Ludwig. I just want to make sure that I understand it.

Having exited NACE and GPDx, how do we see the genetics business going forward? Is that correct?

Yes, exactly.

Yeah.

For the remainder of what's left, basically.

Obviously we actually have completely exited those two tests now. Most of the revenue came from the EMEA region, that's the region that has been most impacted by this exit.

As is also evidenced in South America, we are also exiting low-profit accounts. There are, in certain parts of the world, primarily in Latin America, we see an increase in generic competition with very low prices.

We're not going to play in low-cost generic segments. We have been exiting certain accounts in that region as well.

It has had a top-line impact in the quarter, but it improves our profitability. I think strategically going forward, we will continue to do that.

If we see an opportunity to improve the profitability of our business and it doesn't make sense to stay in lower profit accounts, we will continue to do that. We are very much doubling down on driving profitable growth across all portfolios.

The main areas where we have lower profit accounts are on the Genetics side. We will continue to do portfolio or, I guess, account rationalization is probably the best way to do that going forward.

It benefits our profitability, and it allows us to focus on driving growth in the more profitable parts of the portfolio. Pär, I don't know if you would add anything to that.

You summarized it well there.

Did you have a follow-up question, Ludwig?

Just a follow-up.

Yeah.

Yes, please. I want to stay on Genetics, and we're talking about profitability.

I know that you don't disclose the divisional profitability, but given that this is a thing to improve profitability, could you give any more color about how we should think about Genetics profitability and how it will move following this? Is it possible to say anything?

Yeah. What we can say, which I also mentioned in previous calls, is that we increase our focus and our ability to analyze profitability on customer level and market level to help us to guide which account and which market we should focus on and which one we should not focus on.

We have increased our toolbox and our competence and the focus in this area to drive profitable growth. That will continue.

We will continue to work on this in order to improve our profitable growth journey.

Great. Thank you for taking my question.

Thank you, Ludwig.

Yes, good morning. My question is relating to the Middle East, I'm wondering if you can comment on roughly how much it has declined in the quarter, also if you're able to decipher any trends in any direction in the recent weeks or months.

Good morning, Jakob. Thank you for your question.

We don't divulge Middle East revenue or percentage decline. It is significant, it has been significant since the start of this war, I guess, if we're calling it cat a cat.

It's a war. What I would say is that when the negotiations between U.S.

and Iran seemed to be going well, there was a slight pickup in June people were feeling more positive. Of course, we've seen a reverse in that trend in the past couple of days.

I know the market receives very mixed messages on the Middle East. The reality is, we see this, cycles are significantly down across the entire Middle East region.

The airspace has been closed on and off. Obviously it's not just Iran or UAE, it's Bahrain, it's Iraq.

It's very difficult to even do business in that region right now. Based on what we saw in June, if a deal can be reached between the Iranians and the Americans, the Strait of Hormuz opens back up, we feel that the cycles would return to normal levels.

I don't want to say quickly, the demand is there. The problem is doing business is extremely difficult.

The sooner we have peace and an agreement, I think the faster the region can get back to growing again. It is in negative territory right now.

The cycles are negatively down significantly versus last year. We see that in all clinics.

It's a very difficult question to answer, Jakob. I'm not trying to be evasive, it depends on factors outside of our control, I'm afraid.

Okay. That's fair enough.

My follow-up then is on Europe, which you say is strong. Is that you are growing sort of slightly above the cycle growth rate or is it sort of substantially above cycle growth rate, would you say?

I'd say it's above the market growth rate. I wouldn't say it's substantially.

We are growing above the market in Europe. Yeah.

Okay. I'll get back into the queue.

That's our stronghold and we intend to keep it.

Good. I'll get back into the queue and come back.

Thanks, Jakob.

Hi. Good morning.

I've also got a question on Genetics here, perhaps focusing on Americas. It's impacted by the exits as you have reported.

If we dig in a little bit closer into the report, you report the growth numbers even excluding those exits. It seems to be -3% instead of -4%.

I'm just struggling to understand a little bit on the U.S. growth in Genetics.

Are you seeing any kind of acceleration and did it actually grow in this quarter?

Genetics in North America absolutely grew in this quarter. We're doing really well there and have been for several quarters now.

North America's in very good shape. We are exiting low-profit accounts in South America.

That's a fact. Genetics South America is significantly down.

It's a strategic decision. It's low-profit accounts.

There are generic low-cost competitors come in. We're not going to follow the market down.

We have a lot of opportunities in Consumables and in Technologies in South America, and we would prefer to focus our team's efforts on accelerating the growth there, which they absolutely did in the quarter, than focusing on low-profit Genetics accounts. I can tell you, Filip, we don't give the breakdown, but North America is performing very nicely in Genetics.

Okay. Thanks for that.

Yeah.

Perhaps the follow-up from Filip's question that Ludwig asked as well. Just in general on Genetics.

Organic growth, still negative across the company, even when excluding the exited business. I'm just curious, what is the path back to growth for this area?

It's all going to be about focus. I don't think we should look at specific products or specific tests.

What we want to do is advance the growth of the Vitrolife Group company across the entire portfolio. If we believe we can accelerate faster in certain areas, which we do, that's where we'll double down.

It's very much a portfolio play. What we're not going to do is stay in low-profit tests, low-profit markets, and low-profit customer accounts.

We are not going to do that. The name of the game for our company is driving sustainable, profitable growth.

To Pär's earlier point, our commercial excellence is much more sophisticated now. We have been building pricing muscle.

Our visibility's really good. It's been improving all the time.

This allows us to segment the market in a much more sophisticated way. As I mentioned during one of my slides, in genetics, we have premium products, we have differentiated technology, we're a full-service provider, and that comes with premium prices, and that's where we will drive our growth.

We will drive our growth in the premium segments of the genetic services market, not in the lower-cost segment.

Okay. Thank you.

Pär, I don't know if you-

Thank you so much. I'll get back into the queue.

have anything to add to that. Thanks, Filip.

No.

Hello, and good morning to you, Bronwyn and Pär. I have two questions here as well.

Perhaps beginning a bit on China, considering your comments about IVF cycle activity in the region and the upcoming years here. What are your expectations about price levels in China the coming years?

Do you fear that pricing levels will fall, given that the clinics will have to fight for fewer cycles, or that vendors to the clinics will become more aggressive in pricing and defending their utilization? Can you give some comments about that and how we should think of gross margins in China as well?

Yeah. That's a great question.

Thank you. As I mentioned, I'm just back from China.

I spent some time there to really understand the market dynamics. Our prices are actually performing very well in China.

In fact, we have price gains in China. We feel confident about being able to protect those prices because we have a very strong share, we have a really good reputation for quality, and Chinese clinics, everything in IVF is about success rates.

That's what it's all about. In order to drive and increase your success rates, clinics typically like to use premium, proven quality products, and China is no different.

We don't feel price pressure in China in the segments where we play. I would anticipate there will be an increase in price competition in the more commoditized areas.

For EmbryoScope and for media and for needles, where we also have a differentiated offering, we believe we can hold pretty firm on our pricing. No expectations on a decline in the profitability of the China market.

I think you can see, if you look at the gross margin and the contribution margin, as Pär showed, we actually have a positive trend there, and we feel pretty good about that going forward.

Okay, great. Thank you.

The second question relates to the exit of Genetics in the South American markets. Are these markets or accounts that you're exiting also customers within your Consumables branch?

Have they been using both the Genetics and Consumables part from Vitrolife and Igenomix? If so, how are they responding to this decision to discontinue the Genetics leg in these markets?

Yeah. It's a bit of a combination, to be honest.

We have some customers who have EmbryoScope, use our Consumables and Genetic Services, but it's a bit of a mixed bag. I would say overall in South America, it's probably the region where we have one of the lower levels of complete portfolio purchasing.

There are other parts of the world, EMEA primarily, where you'll tend to have, I don't want to say full Vitrolife users, but higher total Vitrolife utilization. In South America, we do have a lot of large accounts that could primarily or have been primarily Genetic Services and not necessarily users of Consumables and Technologies.

The lower levels of profitability, and Pär, you can comment on this as well, the lower levels of profitability in South America, we've had this for a while. We've been carrying this for a while, I guess the lower-cost competitors entering, it just accelerates our decision not to play in lower-profit accounts.

There's an opportunity cost to doing that, and look at our margins. They're excellent.

It doesn't make sense to have sales teams focusing on either driving growth or defending accounts that have really low levels of profitability when we have a really nice portfolio where we can drive much more profitable growth for our company and our shareholders. Pär, I don't know if you'd-

I think it's a combination of the situation in South America and our strategic decision not to play in low-profit accounts, but it's also because we have increased our ability and transparency of reviewing and analyzing our profitability on account level and market level and customer level and so on. It's led to our strategic decision to step away from low-margin business.

Noted. Thank you so much for taking my questions.

I'll get back in the queue.

Hello. I just want to pull together what we've been talking about almost in the previous few questions.

It just seems that you presented the greater than 10% top line targets at the end of 2023, yet it seems, you're off, but slowly. It just seems that you've totally changed the strategy to one of very low top line net growth, if any, and for all the good reasons, it's a nicely profitable business and high profitability.

It just seems that over the next five years, we're almost waiting for the new chief executive to tell us this, that organic growth for the business, and it's a nice business, Vitrolife, but there isn't going to be much organic growth because you're going to get constant pressure on the low end of the genetics. Cycle growth is just not going to be that strong.

China's got issues. That's a big market.

I just feel very frustrated as a shareholder. We're basically in at least 12 months limbo before we have new targets that are going to look very different to the old targets.

It feels slightly odd that the greater than 10% targets were ever presented. I don't quite know.

It's a bit of a big question. I just feel very frustrated.

Anyway, that's my question.

Okay. I can just start.

No, the targets are set by the board. They are now into the third year.

The underlying assumption on organic growth was between 5% and 7% market growth, and us taking market shares on top of that. As you clearly seen recently, we are not there.

We are not on the 5%-7% underlying market growth. Of course, it is a challenge to be at 10% organic growth right now.

If the market comes back to those underlying market growth, we have a good chance to reach the 10%. In this quarter, we are far off, of course, with the softening in the market.

Yeah. I guess the only point that I would add, Carlos, is those targets were set to the point that Pär has made when IVF cycles were at higher levels.

The market is soft right now. There's the situation in the Middle East.

I think it's very clear what's happening in China. We know the macroeconomic situation isn't good there.

The market is soft right now, and we are driving profitable growth in the markets and in the areas of the portfolio where we see opportunities. There is growth to be had.

It's not the type of growth that we would want or shareholders would want. We're doubling down on the more profitable areas.

That's a fact.

Yeah. It seems more structural than cyclical.

It just seems that the decision to focus on where there's more profitable niches and a lot of the big trends like China, to say they're cyclical is a bit misleading really. They are medium term, if not long term, issues.

Unless there's a massive change in government strategy, massive reimbursement, which is unlikely, Vitrolife net top line isn't going to be very much over the next five years. Simple as that, really.

It's just very odd to have such a mismatch between what's the reality and what are the targets set by the company. Anyway.

I think there are very wide regional variations, Carlos, to your point. China, it definitely appears structural, for sure.

North America has shown very positive green shoots, but the geopolitics there make it very volatile. Western Europe is there or thereabouts, but there are parts of the world that clearly have structural issues, and then there are opportunities in other parts.

China is the largest IVF market in the world in terms of cycles, so it does have an impact on the global cycles when demand is soft there.

Thanks.

Thank you, Carlos.

Yeah, thank you. I have a few more questions.

I'll start on the work you're doing with restructuring and discontinuation of products and countries. On the sales line, it seems like the impact here in Q2 is a bit smaller than you communicated.

I think it was The impact is SEK 11 million in the quarter. I think based on what you said before, it should have been more like SEK 20 million.

Have you discontinued all the tests, or is there more to come here going forward?

Yeah. We have discontinued all the tests, and we communicate in December it will have an impact of 2%-3%, and it had an impact of 2% in quarter two.

From a percent point of view, it's in line with what we communicated in December. It is according to our expectation.

Okay. There's no more revenue that is going to go out going forward?

No. We have completely exited those two tests.

We are not performing them any longer.

Very good.

I think the last one was at end of Q1.

Okay. On the savings part, wondering how much you have realized here in Q2 and also if you are at sort of full run rate exiting Q2.

Yeah. No, we are not at full run rate yet exiting Q2.

We communicated a restructuring program with a restructuring reserve of SEK 55 million. We have consumed more or less half of that.

We will continue into Q3 to execute on the planned restructuring. We are in line with our plans, and we will most likely finish according to plan also end of Q3 as we have communicated.

The full saving of SEK 65 million on annual basis will be reached. On the other side, we will also continue to invest in our key markets and key functions and IT and so on, offsetting some of that SEK 65 million.

You cannot really expect to see a SEK 65 million reduction on or improved EBITDA because we at the same time also invest in prioritized areas. We are in line with the restructuring plans.

Okay, good. I'm also wondering which P&L line this VAT reversal is in.

It's in the other operating income expense.

Yeah.

Okay, good. Then maybe a final question also, if you can comment on how much sort of earnings gain you get year-over-year from the timing of the ESHRE conference, which I think is in Q3 this year and was in Q3 last year.

Yeah, I think the effect is SEK 5 million that we took in June last year, we didn't take this year in June. Because of timing.

Okay, good. Thank you.

Thank you all for dialing in. Hopefully we've been able to answer most of your questions.

If you do have any, of course you can follow up with our investor relations team. We wish you all a very nice summer from everyone here at the Vitrolife Group.

Thank you very much.

Thank you.