Good afternoon. Welcome to Ypsomed full year results presentation for the 2025/2026 financial year. We're delighted to have you all here with us in Zurich in person and for all of those online. Before we begin, please note this presentation contains forward-looking statements that naturally comes with a certainty. Turning to today's agenda, our CEO, Simon Michel, will open with our strategic priorities, go over our business and operations updates. Then followed by CFO, Samuel Künzli, with a review of the financial results. We will then open the floor to your questions, first to the people that are joining us here in person and then online. If you'd like to ask a question, please raise your hand, state your name and the company you work for, and then we'll unmute your mic or bring you a mic if you're here in person. Note the pre-presentation is recorded, and we'll make the recording available after the session online. Without further ado, I will now pass on to Simon, please. Thank you very much. Sam, good afternoon, from my side as well and a very warm welcome here in Zurich. We really look forward to spending the next hour with you. I would like to start with some making three points before I dig into my strategic slides. Number one, we can really say this company has delivered. We have delivered on our financial targets. We have a record win of new projects, not only new projects, also new innovation on IP side. Phenomenal year, number one. Number one, the transformation that we went through over the past four years, selling off the B2C business, selling Diabetes Care is done. This is now a pure play company, very focused, a company that we will all have a lot of fun with. Number three, this is also a very disciplined organization. When I look into Ypsomed, how we are set up, how we take lean as a serious measure, our YpsoFIT program, and Samuel will deepen that, is core to us. We spend a lot of money on IT, on our new manufacturing operating model, and in AI. We have a huge AI program. It's not just Copilot, it's actually very deep in our roots. It's very deep in our operations. We try to be more efficient with new technology. These three points being said, let me start, and as always, we are starting with our purpose. This is why we get up every morning. We make self-care simpler and easier for people with chronic conditions, and we are good at that. We do that for 40 years, and customers trust us. They come to us because they know we deliver. As you all know, and some of you have seen these slides now for a couple of years, but I have to show them every single time. We have a lot of tailwind. Therapy go from hospital to home because it makes sense. It makes sense from a healthcare perspective. It makes sense from a patient perspective. IV therapies go subQ because it's cheaper and better. Number two, more drugs have to be injected because the molecules are too big. They cannot be swallowed. The stomach, the acid would destroy them. GLP-1 is a small exception. We will deepen that today. All other drugs have to be injected also tomorrow. Number three, biosimilars. The golden age of biosimilars is here. Hundreds of millions of new drugs reaching the market in areas where there have not been these possibilities. It's about access, it's about the responsibility. This med is not only delivering to originators, but also to biosimilar organizations. That's our promise. Number four, of course, the incretins, this new wave that will help the society by making life and life quality better by losing weight and not being affected by all those consequences that you have with obesity. The transformation is now history. For us, it was a lot of work, but when I look back those four years, selling the needle business, selling the DiaExpert, the training business, stopping BGMs, selling the pumps, we have done the right thing. This is now a company which is easy, much easier to lead, very clearly focused, very clearly structured. Our focus is operational excellence. We will deepen that today as well. This is a company that has one focus, to make self-care simpler and easier by providing best packaging for pharma and biotech. That's our mission. It's a B2B story, high margin, fast growth, clear story. When we look at how we invest our money, we always have those three, four things in mind. Number one, the platforms. We are and remain a platform company, and we will shortly introduce to you three new platforms that will bring us to the next S-curve. Innovation. We continue to invest significant amounts of money in innovation. Operational excellence, lean, lean. Every meter, every second, every square meter is money. We get rid of it, and this is a standardized program we have within the group. The financial, the responsibility towards you and the shareholders is at the core of how we work. Cost and YpsoFIT is an element which is deeply rooted, and we will have to deepen that with you today. Have a look at the platforms. This is our portfolio. I think the important thing here is that we are the only organization out there that offers both a complete auto-injector portfolio for syringes and pens for cartridges. This is one core reason why. SHL Medical only has the auto-injectors. We have both platforms, and that's core. We have now the first clients who buy from us for the same molecule, two platforms. Look at Innovent. They launched incretin in mainland China. They have launched it in auto-injector, now they got the approval two weeks ago for the UnoPen, the pen. These companies come deliberately to us because they can breathe with us. They may not know how successful auto-injectors are or when pens kick in, they are happy to be able to have flexible deals with Ypsomed. If they need less auto-injectors, they will buy more UnoPen s, we have flexible contracts, that's a huge USP. More and more molecules will be available in both formats. When we look at the trajectory and what we have achieved, this is a record. We have never had more than 40 deals in a year. 44 deals. When I deepen a bit those deals, about half of them are in biosimilars. You see these drugs being more successful, but only 1/3 in emerging markets. The developed markets are still in the lead. Look at the different fields of therapy, it's very broad. It's 15 out of those 44 is incretins, different formats of GLP-1. 15 is different autoimmune diseases, from polyarthritis to Crohn's disease to lupus, very diverse. We have a couple of very new interesting drugs against mid to severe psoriasis. You have drugs for oncology, neurology, hormone therapy, it's very broad. This is an important message today. We have a very broad spectrum, and with over 130 clients, we have no real risk. The largest client for us makes not even 15% in revenue. The top 10 customers together make less than CHF 50 in revenue. We add more and more clients every day, and over time, obviously, this will even grow. When we look at the spectrum of different indications, we are now at 25. 80 products launched. 80 devices in the market. On the left side, the pens and the auto-injectors, syringe-based. Apart from the 80 approved ones, we have 180 in our pipeline. In total, we look at 260, 80 in the market, 180 new ones that we work with. Of those 180 that are in the pipeline in those indications and new ones, roughly 70% will hit the light. Our hit rate is 2/3 to 70%, which means 70% are reaching the light will actually lead the market. Some of them obviously will be stopped because they are sold, because they don't reach the output in a clinical trial. Out of the 180, roughly 2/3, 120-ish, will actually reach the market in the coming two to five years. There's a huge flow of new products reaching in order for us, for us to deliver the growth that we and you expect. The platform logic is still the basis for our success. We want to grow, and we want to build upon this platform logic, that's why we continue to invest in innovation. The three new innovations we have presented to the world last November at the large conferences is YpsoLoop, YpsoDot, and YpsoFlow. YpsoLoop, that's the green device here to the right, that's a new generation auto-injector. What is in common to those three platforms, they are all recyclable. They are from one to two plastic types. They can be recycled. It's a totally new domain. When you think back how we created, how the industry created products, we were always looking at the function. The device needs to bring drugs in your body. We have looked at automation. How can they be automated on a big line? The focus was on usability, so people don't make a mistake because nobody reads IFUs. Now suddenly it's a new domain in engineering. It's called engineer to recycle. We have taught our organization six years ago with the Ecodesign guidelines how to do that. We are now creating every new innovation must be based on this logic. This is not just because of Brussels or Paris or whoever. It's because we are convinced the world will need to loop the existing goods. We need to loop the raw material as high as possible. We need to stay in the loop and not downcycle. It's easy to form a chair out of our pens, but our vision is to form a pen again, a pen into a pen into a pen. We will build the basis with those new platforms that customers can recycle if they want. Because big pharma decide today for the next 10 to 12 years, they will probably think twice if they have the choice of a recyclable or a non-recyclable platform. When we talk to our customers, they are really willing to look at those three new platforms. It's a new auto-injector, and it's two new pens. The YpsoDot in the middle, it's a GLP-1 optimized device for four injection. Click, click. I think you have a demo device over there. The YpsoFlow is a spring-driven pen, like the FlexTouch that you all know from Novo. These are our three new innovations. We won a couple of prestigious awards. This is the new platform generation that will bring our patent cliff from 2034, 2036 to the 40s. As you know, our S-curve from a IP perspective in the Western world, not in China. In China, we have competition. Outside of China, there is very, very, very few competition. We have to bring our clients from the existing level to the new S-curve, to the new technological S-curve with the new IP protection until the 40s. This is our work and what we have to do over the coming years to convince our clients, but I believe we have hit the trend, and not only in Europe, also in the U.S., people are looking very carefully into the Ecodesign logic. The Ecodesign logic is not just device. It's very deeply rooted in our DNA, responsibility as a corporate value. We've reduced the supply chain carbon emission by pushing out our pressure down to our 500 most important suppliers. We give them clear targets to deliver less carbon, we have decided to zero every building. Once we open a factory, once we open a infrastructure, we net zero them with certificates, and we have less CO2 in our products. This has benefits because it reduces dependencies, more sources on the granulate. We meet the customer's demand today and especially tomorrow because they will be forced to deliver less Scope three. In the end of the day, this leads to lower cost of goods. It leads to lower utility costs. If we can build better building, we have a lower energy bill, and we are a very energy demanding industry. We have a lot of benefits also from a monetary perspective. It's not just an ecological logic. Apart from our innovation in the space of ecology, we have the innovation in the space of services. We have decided to look very carefully in the customer journey, and it's not only the product, it's actually the service. One key element on the customer side is time to clinic. While on average it took us 18 months from time to clinic or in the past, with the new program, Clear to Clinic, we are down to six months. Large pharma are usually well-planned, this is not only large pharma. We have many clients out there who at some point in time, "Oh, yes, we need a pen." Now we are ready to deliver a device in a couple of months to go into clinic, and that's a huge benefit for small biotechs. As you know, small biotech invent, big pharma buy small biotech. We want to be in the pipeline of the small biotech to then end up in the hands of pharma. Our Clear to Clinic program saves a lot of time by pre-document, pre-validate, verify, and to be ready from a product perspective. There's much less testing, much less paperwork, and then makes life easier for the customer. Platform innovation and the third piece before I hand over to Samuel is operational excellence. In operational excellence, obviously the core and what is in interest to you is our footprint and where we are, and Ypsomed is becoming more and more global. You have read the news over time. Let me just introduce a couple of the achievements in the last 12 months. We have opened in Solothurn our new and second tool shop. We have now a capacity of up to 100 plastic molding tools per year, which makes us much less dependent from third-party suppliers. We are employing roughly 100 people in Burgdorf, and we are now ramping up with a second tool shop about the same size for our own plastic molding tools. In Solothurn, apart from plastic molding tool, we have a huge program, we call it Hermes. This is basically moving out the old contract manufacturing business and moving in our new Ypsomed lines. This is a program in two phases, and it's delivered until end of 2026. Very important to us because it delivers demand and capacity and work for people for the next 10-20 years. A huge upgrade. We invest over CHF 200 million in Solothurn. Currently, the project is well on track. Also well on track is China in Changzhou. As you know, we have opened in June. We are operational since end of last year, and we deliver devices both to clients in India at the moment, Russia, and also in China. Main focus obviously will be China for China. At the moment, we want to fill a bit capacity, so we deliver products to clients outside of mainland China, but it's a China for China factory. Runs very well. Highly pleased on the cost of goods, so they are already below every other site after half an year. Very motivated, highly motivated, very eager, very professional team. The teams tells me, "Every day, we want you to learn from me." We're so very pleased with how China works. Apart from China, we have our large program in Schwerin. This is Schwerin II. This is where we invest a large chunk of our CapEx. You see on the left side, the existing factory, the 250 m long building with the 200 plastic molding machine, which is full now. Some of you have seen the site. This huge cube in the middle, that's a 40 m high, 15,000 pallet warehouse with 10 trucks, delivery lots. You see this building phase one. This has capacity for roughly 250 to 300 million devices, we can add another such building with another 250 million devices in 2029, 2030. We have to see where we prioritize. Whether we prioritize in China as a second factory, whether we prioritize in the U.S., or whether we build a second factory here. This will be something that we have to decide in roughly a year from now. What you see here is the new building, which is a drone picture from before yesterday. Somehow we want to ramp up this in October, so there's some work to do. We don't need the trees. I know. We can start ramping up without the trees and the grass. Will be fascinating how we ramp up the first lines. We have a nice inauguration in April for the site, which will deliver products for mainly Western Europe and with a huge growing demand. The next and newest program in infrastructure for us is Holly Springs. As you know, we have decided for North Carolina for many, many reason. North Carolina is the fastest growing state in the U.S. It has a very high density of universities and community colleges, so they have a functional apprenticeship program. They have learnt a lot from former President Schneider-Ammann. He has been one of the forces in this state to actually implement apprenticeship programs, which is really in place, and you can go to desks and demand for people, and they support you. I'm quite positive to find the people here. The program is up now. This is a finished building, but it's empty. We are now staffing and moving in the material, so by end of 2027 we will be ready to deliver to the clients. With that, I already come to the end, ladies and gentlemen, and just a short picture on the development of our staff headcount. Obviously, almost 800 people left us. They went from Ypsomed to mylife Diabetescare with the pump business. We have sold Ypsotec, as you know, and we have added 245 new jobs. We are roughly at 2,100 now. For the new year, we see roughly 150 new functions, roughly 50 in Switzerland and 100 abroad. Obviously it's less. We are able to profit now from the, from the operational leverage. We are able to profit now from the installed capacity. We are able to profit now from the platforms that we have delivered. With that, I would like to hand over. I can tell you made a wise decision to spend some time with us. This is a great company and thanks for the trust. I hand over to Samuel, please. Thank you, Simon Michel, and welcome also from my side. I will now walk you through the financials 2025, 2026. Let us start with our top line. The transformation into a self-injection specialist to a pure play company is now also clearly visible when we look at our sales split. We reported CHF 731 million of sales, and out of it more than 80%, CHF 601 million is Ypsomed Delivery Systems, our core business. CHF 75 million is from the Ypsomed Diabetes Care business in the months April to July, in the time the business was still with us. CHF 56 million is in the other segment. This is mainly the contract manufacturing we still do for Ypsomed Diabetes Care. The phase out of the pen needle business and BGMs business, and as well Ypsotec, which was with us from April to October 2025. Let's look at the core business, at the Delivery Systems business. We achieved our goal. We reached 20% growth in that business. We grew from CHF 501 million to CHF 601 million. What were now the main drivers of that growth? When we look at our platforms, the main driver were the autoinjectors, especially the 1 ml and the 2.25 ml. When we look at the therapeutic areas, one driver was incretins, roughly 1/3 of the growth. Think of it like 30 million-40 million out of that 100 million growth is coming from GLP-1s. You see it's not the main growth driver. All our other therapeutic areas are still heavily contributing to our growth in the core business. Project revenues are on high level. They are above CHF 80 million, CHF 86 million we reported in 2025/2026, compared to CHF 88 million in the previous year. For those who follow us closely, have in mind that we now don't show the capacity reservation fees. The sales from that we don't show anymore in the project revenue, but in the commercial sales. Have that in mind when you, especially when you look at the previous year. Let's look at the bottom line. On EBIT level, we achieved our goal. You remember our guidance here was to be between CHF 190 million and CHF 210 million. We reached CHF 196 million of EBIT. That represents a 33% EBIT margin. We had, in the four months, Diabetes Care was still with us, we had a loss there of CHF 6 million, and we had a profit of CHF 56 million in others. The two main drivers of that profit was, on the one side, we had a profit from CHF 68 million when we sold Diabetes Care, and on the other side, we had a loss of around CHF 12 million when we sold Ypsotec. That were the main drivers. Let's compare also with the previous year. In the previous year, 2024/2025, we reported CHF 113 million of EBIT. Now CHF 246 million, so more than double as much in EBIT. In the center of that slide, you see the growth of the profitability in Delivery Systems. We grew by roughly CHF 30 million from CHF 167 million of EBIT to CHF 196 million. We not only doubled our EBIT, we also propose to our AGM to double the dividend. We stay with our policy that we want to pay out roughly 35% of our profits to our shareholders. Let us now focus on cash. Exceptionally strong was the operating cash flow. That shows us how well our business is generating cash, more than CHF 300 million operating cash flow. Looking at the cash flow from investing activities, we should have two things in mind. On the one side, we look at our growth investments, I come to that on the next page. On the other side, we divested Diabetes Care, and from that divestment, we got CHF 307 million in. Net in the cash flow from investing activity was only roughly CHF 30 million. We ended up in a free cash flow of CHF 280 million, and we used that money. As you know, on the one side, we bought shares back, CHF 150 million, and we reduced our loans. Where did we invest the money? The growth CapEx. You saw the pictures which Simon showed, mainly in fixed assets. CHF 295 million went into our factories, Schwerin being a big part of it, but as well in Switzerland, in Solothurn, and as well the US site. You saw the building in Holly Springs and the site, and also our factory in China, in Changzhou. We keep innovating. We also invest in intangibles, in R&D. We invest a total CHF 28 million. When you compare that with the previous year, yes, it is significantly lower. Have in mind, in the previous year, the Diabetes Care business was still part of those intangible investments. In the actual business year, 2025/2026, we invested roughly CHF 20 million, is roughly capitalized development costs for the Ypsomed Delivery Systems business. You saw we launched three new platforms. When we put that investment, that growth investment into the wider context, those who follow us for many years, they know roughly two years ago, we announced our growth investment program of CHF 1.5 billion. Now being two years in the program, our actual planning shows that we will spend roughly CHF 1.3 billion in those six years until end of the decade. One key driver of that was our operational excellence program, our YpsoFIT. I come to that later. We have the goal, as Simon mentioned, to increase our utilization rate, to improve our OEEs. We work every day on that. We have a strong focus in building a flexible and modular manufacturing system, and we have a strong focus on capital efficiency. In the business year 2025/2026, we realized a ROCE, a return on capital employed, of roughly 20%, so we created clearly shareholder value. Co-financing stays a key element of that big CapEx program. Roughly 30% is co-financed by our customers, and the main instrument we use there are capacity reservation fees. You see that amount now also growing in our balance sheet when you look at our report. Now we are still having a year with high CapEx ahead of us. You see that in this illustrative simulation, 2026, 2027 CapEx are still high comparable to the year we had. In 2027, 2028, we expect them already to be a little bit lower, and we expect them to cover with our operating cash flow in 2027, 2028. We expect to be, in 2027, 2028, free cash flow positive. Now we look at our robust balance sheet. We have more than 55% equity, and we have a very low debt level. Net debt to EBITDA is on 0.8, so below one. The number I also wanna highlight, because it shows how well the delivery system business is generating cash, is the EBITDA from delivery systems, CHF 278 million. That's a very strong result. That balance sheet and that cash flow generation allows us to fund our organic growth with our own balance sheet. That's the message here. Before we now come to the outlook, I want to illustrate a few important elements of our resilient business model. As you know, we have very long-term contracts, typically up to 10 years, because a drug stays with us until this drug loses the exclusivity. For that time, it's bound to our device. What is, of course, also common when you have long-term contracts, that you have indexations. That is especially now important looking at the current geopolitical situation in which you can have also inflation pressure. It's crucial that you have an instrument that you can hand over those costs also to your customers. We have indexations for our main cost blocks, so for plastics, the granulate, the energy, and as well labor. This mechanism is also aligned with our supply chain, with our suppliers. When it comes to potential downside protection, two elements I wanna highlight. First, the capacity reservation fee. That's something a customer pays independently if then this capacity is used or not. In case a customer wants less volume, this money we still have. Also the volume-based pricing, also that protects us from volatility in customer demand, because that means simple, if a customer orders less, then the price per device is higher. That is a very important downside protection for us. The Swiss francs. Yes, we are a Swiss-based company and a lot of functions are in Switzerland, a lot of R&D, but we have a natural hedge. Majority of our contracts are in Swiss francs, so that's nothing we have to worry about. Have also in mind, our device sits in the FDA master file, so that makes it difficult for our customers to exchange us as a supplier. We are not in a industry in which you have typical dual sourcing. We are the single source, the single supplier to our customers, and that is an important element of our business model as well. The second topic I want to touch before we come to the outlook is our YpsoFIT program. We want to get fit for the growth, and we also want to be lean because, yes, we also want to protect our margin. We have also to work on our cost base. We have four pillars defined on which we work. The one, the operational efficiency, you heard already the goal is we are in a capital-intensive industry for us with a high operating leverage. To have as much OEE as possible, that is key for us, and on that, we work with different initiatives. As an organization, we are growing, and we still wanna be fast because also our competition, especially in Asia, is fast. We wanna take decision fast. We wanna take them where the decision should be taken, at the front line, close to the customer, at the shop floor. For that, we also have initiatives running. Yes, you hear that from many companies, but of course, we also wanna take advantage of AI. We wanna have a competitive IT cost base. That's something where we feel we can also differentiate ourself and where we can save costs. Where we hope for the biggest saving is actually in procurement. Procurement also when you gain scale, when you grow as we do, you have a certain volume you buy. You get a certain negotiation power. We want to use that better. We want to do more dual sourcing and take advantage of better prices. Now, let's finally look forward. We guide for the next year a sales growth of 12%-15% in Delivery Systems with own devices. What do I mean now with these own devices? The CHF 601 million we reported 2025, 2026, that includes still around 40 million contract manufacturing for pens. As you heard from Simon Michel, that is something we phase out. We take that away, and the starting point for that guidance for the new one is the CHF 560 million, which you see here on the left side. From that, growing 12%-15% would mean a midpoint of roughly CHF 635 million. The contract manufacturing for the pens, that is phasing out, and that still will be CHF 15 million-CHF 20 million. Add that, and also add another CHF 50 million for the contract manufacturing we do for diabetes care, the infusion sets and the reservoirs. The reported EBIT will still be around CHF 700 million. Looking at the profitability, we guide an EBIT between CHF 210 million and CHF 230 million. There you can take as a starting point, more or less the CHF 196 million, because the contract manufacturing for the pens, as you know, is a cost-plus business and now in the phasing out, so there is no significant profit in there. We wanna stay above 33% EBIT margin in the next business year. Now, in the last page, I wanna even look out further. We announced our midterm ambition in September 2025 at our capital market day. From there, you know, we wanna grow with sales in a range between CHF 0.9 billion and CHF 1.1 billion until end of the decade with our core business, the delivery system business. You see by then everything is phased out, also the contract manufacturing for the diabetes care. The EBIT should stay between CHF 280 million and CHF 340 million, always above 30% EBIT margin. I mentioned we have a strong focus on capital efficiency. The ROCE should stay all over these years around 20%. Now we look forward to your questions, and I hand over to Sam. Thank you, Samuel. Thank you, Simon. A remarkable year indeed. Now we'll open the floor to questions. Feel free to raise your hand, and then you can ask a question. Sibylle von Vontobel, would you like to start? I'll bring you a mic. Thank you very much, Sibylle Bischofberger, Vontobel. I have questions about the pens. You talk a lot about autoinjectors, which are obviously your growth drivers. When I calculate my estimates, it seems that you're growing also in pens again after you had the capacity were full. Is this the reason China, which is supporting pens? Second, could you give us any hint how many units you have produced in 2025/2026? Is it more than 350 million units? Thank you. I have to deliver the answer to the last question. I don't have the figure in mind, frankly speaking. On the question on the pens, it's also the U.S. two glargine molecules have received FDA approval in our UnoPen. It's two Chinese insulin manufacturer that achieved FDA approval in our UnoPen. one driver is biosimilar in the U.S. from a Chinese manufacturer. That's one main driver. We have growth in all other emerging markets. We have growth in China, in Russia, and in other markets. The main driver for the next 24 months is the launch of the glargines. Thank you. Thanks. Thanks, guys. Giang Nguyen from Citi. Nice to meet you in person. I have two questions, please. The first one is on YpsoFIT. Half a year on, could you give us an update on how it's tracking by each of the four pillars? Any chance you could quantify the expected benefit from YpsoFIT to gross margin and OpEx over time? The second question is, if you could talk to the building block for the EBIT margin outlook for 2026, 2027. Specifically, can you talk to the drivers of gross margin for the fiscal year? Thank you. Good. I start maybe with the YpsoFIT, quantifying that. In the next three to five years, we expect a low double-digit CHF million amount out of that program hitting our P&L accumulated over those years. Talking about the gross margin also in the next business year, what you see that in our business we have around 15% between gross margin and EBIT. I simplify here a little bit, so think of it like that. Also in the next business year when we say 33% EBIT, you would reach a gross margin around 50%. Feel free to add, Simon. No, it's fine. I think I'm good. Thank you. Sandra Dietschy from Octavian. I have also two questions. The first on the midterm guidance. Your midterm guidance at the midpoint implies a sales CAGR of 15.7%. This year it looks like you have a sales growth below the average with the guidance of 12%-15%. How should we think about the trajectory in the years to come? Is it a catch-up above average growth next year, or is it more a linear development you would assume? That's the first question. The second on the new platforms. Have you already signed a contract with any of the new platforms or what proportion of the contracts you will or you ambition to sign this year are you targeting to sign on the new platforms? Thanks. Thank you, Sandra. We have not signed any deal on the three new platforms. These platforms have passed the stage design maturity. They are now in the industrialization phase, we will have the first devices ready for clinical trials in roughly one year. On a clinical volume perspective, if you would say on a hit rate of 40 deals this year, we try to reach four or five deals. In this year the real ramp-up of signing those will be in 2027, 2028. Number one and number two on the midterm ambition, basically it is when we look out into the next, it's pretty linear. It's pretty linear. We have, we are a bit slower in 2026, 2027, and we will catch up a bit in 2027, 2028. Overall, we try to flatten a bit, with certain means we try to optimize a bit, so it gives a more straight line. The CAGR of 15% is quite on plan of what we see today in our latest forecasts over the next four years. Tanya Hansalik from UBS. Also two questions, please. One is, can you make any comments if there's been any changes to Ypsomed's plans for the Novo agreement and how we should think of the contribution midterm, how it affects maybe recent news, the midterm guidance? Second question is on just the geopolitical issues in the Iran war. Is there anything to highlight on impact for Ypsomed? You mentioned the indexation, but maybe also customer decision-making changes. Sure. On Novo Nordisk, we cannot give you details. We are all on track. We ramp up the two lines in Solothurn. We have ramped up the line in Schwerin. It's fully up and functional. The automated spring manufacturing with the Vaillant supplier is fully attached and validated. We are ready to deliver. We have no indication for lower volumes. We are ready to deliver according to plan. We have no implication on the midterm view. Everybody obviously waits for December 26 when CagriSema should be presented. We all stay full on course with our client. On Iran, we are lucky that we have both on the shipment and on the supplier side done our homework already. After the Suez issue, we have decided to ship everything around the Cape of Good Hope, so we are not affected by Hormuz. From a granulate perspective, Samuel mentioned a couple of elements. We have now on most granulate, second or third sources and for those where we have not yet, it's cumbersome work to actually bring in a new plastic type because you have to reverify your product. We put up a higher stocks. No, we are not affected from that perspective. If I look on a geopolitical perspective, two years ahead, we will be not affected at all because we source locally, we manufacture locally, we deliver locally. We solve the problem by localizing for our clients. If I may add to the, to the first one, have also in mind that we said also midterm, no customer is making more than 15% of our sales. On profitability level, that is even less. Have that also in mind when you simulate your Novo assumptions. Of the 260 programs we have, of which 80 are launched and 180 are in the pipeline, we have something above 50 in incretins, so it's roughly one-fifth. As Samuel mentioned, this is in the area of 30% end of decade, 31 on revenue and on the EBIT way below because larger volume contracts. There is no single risks. We have very broad scale of clients and makes us robust. Vasco Research Partners, two questions from my side, please. Number one, this impairment of CHF 10.1 million in development costs, did that go into this CHF 195.5 EBIT from YDS? The second question is, you gave this outlook on sales for Sanofi CHF 15 million to CHF 20 million, for TecMed, CHF 50 million. Can you talk about the EBIT impact of these businesses? Because, I guess TecMed is a mid-single-digit range of EBIT. Is that still valuable? I guess from Sanofi you have a negative impact. Can you clarify a little bit? Absolutely. I take those two, then you can add, Simon. Yes, you saw rightly we had a write-off of intangibles. You see that in our in our table in the appendix. Have in mind that we had that in the previous year as well, every year we go through our intangibles and write off those things which are not any more valuable. Yes, these numbers are included in the 196, and they were also in the 167 in the previous year included. About the EBIT impact of those two discontinued operations. For you it's fair to assume that now phasing out the contract manufacturing for the pens, that is rather making a loss, but think of a single-digit million CHF amount. On the other side, the CHF 50 million, again, contract manufacturing for Diabetes Care, which is cost plus, think of that as a profit single-digit million amount. To maybe also a little bit your question, the reported EBIT at the end is more or less what you also see as a guidance for the core business because those other two effects, they basically offset. I hope that helps. Daniel Jelovcan at ZKB. Just simple questions. The tech consolidation effect you mentioned once, so both companies have to build HR, et cetera, et cetera. That was, I guess, already expensed. Can you quantify this effect, the build-up cost? F or the headquarters. I mean, you I think you guys. Y ou know what I mean. I can start, and you add, Simon. Of course, when you take a business with two divisions apart, you have certain dyssynergies, and actually that dyssynergies we addressed also with our YpsoFIT program to minimize that. For us, that means basically also just not growing in those indirect costs, that we now grow the business and as Simon said, take advantage of the operating leverage because we have IT and overhead installed. We want to grow now in those functions clearly under proportional. Yes, we had an effect. It was not zero. Feel free to add, Simon. I mean, it's less than 1%, so of 2,000 people, maybe 20 positions are doubled, such as the executive team obviously, the standard team quality system responsibility. These 20 people will remain double, but it's actually all solved. After the closing, we have to know when exactly who goes where and who. This has been solved with the Mercury program. When we got apart, this was already solved. Okay, thanks. Regarding the Swiss franc contracts, which is well known, and it is very good for you, but if I would be a US customer, I have a certain pressure by saying, "Hey, if your price is so high for me as a US guy because of the dollar, then I also have SHL as an alternative, which is operational now in the U.S." Isn't that a bit a risk for you? We have two answers to that. Most US clients are today sourcing through their European sites. Most of our US customers are buying the product through their French or German or Dutch facility in euros or in Swiss francs, shipping it themselves to America. That's number one. Number one is, with North Carolina in 18 months, you know, if you bring this to the table, you basically stop discussion. Our contracts are very, very robust. There is no possibility to on that end, they all know, it will be solved in due time. It's actually not a topic with Americans. We've have it with some Europeans that are getting a bit demanding on the euro side, but we remain very firm on that. We might now do some contracts in euro because obviously we have higher costs in euro as well now with Schwerin. If you look at our financials below the line, we try to be naturally hedged, and we manage that very closely, and you give us clear guidance. I think for sales it's clear to stay firm on our policy. If I can add to that one, have also in mind our industry has those long-term contracts. Everyone who has a contract in euros or dollars has a different inflation. For the customer, if you have a dollar contract, it gets for you automatically every year 4%, 5% more expensive. Yes, that is then somehow translated into the exchange rate. Through the mechanism I mentioned before. For us, when you have a Swiss francs indication, those price increases are not big, but you feel that price exchange in the exchange rate. That's why, yes, we work on that we keep our contracts in Swiss francs as much as possible. Thanks. Last one to sneak in. The maintenance shutdown of Sanofi. I mean, in theory, your guidance ex Sanofi 12%-15% would have been more because you also have the unused capacity when Sanofi takes out the equipment. You see my point? You could have more sales if Sanofi will not be busy with taking out the equipment. You see the point? Oh, no. No we have any capacity issue. No, I mean, Sanofi's old lines. You cannot use the space. That's true, yes. We have enough space in Solothurn, so we never had an issue. This is important topic. We always have over capacity on space. Sure. Over the past three years, we have invested heavily in infrastructure on the line side, so we never had an issue on that. This is of course adds to the ramp-up cost. We have stranded cost on this Hermes program because one shop floor is empty for four months, four or five months, and this is a fact that had a pressure also on the cost. We'll have a pressure on the profitability next year, very, very minimal. I mean, in the end it will be taken up by new projects. We could not have been more efficient. This is, it's not a box shop like Formula one in a second. It's a quite a big project. You have to move out, two soccer fields of infrastructure out and then move in and then the other one. We will be very glad to do a day together next year, once we open it and then we can show the magnitude of the new lines. Brilliant. Thank you very much. I think we've got the gentleman in brown, and then we'll take some question remotely online. Dominik Feldges from Neue Zürcher Zeitung. I have three questions actually. You've said that the competition obviously in Asia is very fast, have to watch it carefully. Are there any new kids on the block maybe emerging or is the situation, the competition still the same? You've mentioned Russia two or three times. Do you pay any taxes in Russia? How about the tariffs? Have you paid any tariffs during the last financial year? Then maybe a very last question. What about these pills which are now getting on the market, being picked up fast. We see it with Novo Nordisk and Eli Lilly. Does that concern you in any way that there might be less demand for injectable GLP-1s? Thank you very much, Dominik Feldges for the questions. I start with China. We have a handful of small medtech companies that are able to manufacture medical devices, insulin pens, auto-injectors on a similar quality or even same quality as Ypsomed. What keeps them away from reaching Europe is IP. Their IP would infringe our IP of other players in the market until 2034, 2036. Depends on the platform. That's why they are not a competition for our main business. They are locally strong, but, you know, based on our size and the operational leverage that we have, the large tools, the large lines from a cost of goods perspective, we are still below them. They are of course happy to deliver at zero margin. We are not. At the moment, we are look very carefully which deal we have to win, which we don't have to win. We know the space in the Chinese pharma world for the past 20 years now very well. We know very well which clients we have to keep and which we may not need to keep. At the moment we are on top of the things, but we watch at it very closely. We also interact with those players. I think there's also possibility eventually in the future to collaborate with some of them for the local or the regional market. For Russia, we have, that's public, we have two clients in Russia. They are picking up the goods in Solothurn. They pay 100% upfront and they pay in CHF. It's safe, we pay no taxes in Russia. It's Geropharm and Pharmstandard. It's two big pharma companies that buy UnoPen for the insulin from us for over 10 years, a very robust relationship, and that's all SECO-proofed. This is all according to the standards and the agreements that Switzerland has with the European Union and Russia. Then the question on tariffs. As I mentioned before, we have been very lucky that we have not been affected by tariffs since we work almost 100% ex-work or ex-factory. Customers pick up the goods at our factories in Switzerland, in Germany. They do the import from Europe into the U.S. That's for the majority of contracts. Where we will see an effect or may see an effect is in the delivery of the plastic molding tools because we manufacture the plastic molding tools in Switzerland in an existing and a new tool shop in Burgdorf and Solothurn and there is a 15% tax currently expected and not a 50% because, is still yes, but U.S. doesn't have any plastic molding companies left. They realize they cannot tax the 50%, otherwise they get no tools from Europe, so they apply the lowest possible tax tariff, which is currently 15%. That's what we factor in and that what we will feel in 2027. All in all, this is maybe 1 or 2 million CHF in tariffs. The last question on the GLP-1. Lilly and Novo report steep trajectories on the start of the pills for GLP-1. That's a good sign. It actually shows that this therapy of taking medicine for losing weight gets traction, not only in lifestyle, but generally also in society, which has in generally a positive trend towards injections. Don't forget, this pill delivers 10%-15% weight loss. It's more a lifestyle thing, whereas injections is for severe obesity, Adipositas, for people who really have to lose weight because they have a BMI of 35, 40 and more. If they don't lose weight, it's life-threatening. That's why WHO also supports these therapies. Your question is very relevant to us, Mr. Feldges. We watch at the GLP-1 trend very well. At the moment, we see a positive trend towards this class of therapy. Maybe you want to add something, Samuel, to those four topics? Maybe only to the orals, which is of course a common topic also in the market and among investors. We observed it carefully. Yes, it grows the overall market. It's, as Simon said, it's another target audience which takes it, and it's even for many people, let's say a first contact to that drug category and could and leads them also later to take those semaglutides and other molecules. We don't see that as a competition. It's a coexistence which helps also our business, our subQ device business. Other than that, nothing to add. Brilliant. Thank you very much. We'll now take the next question online. Jeremy, if you may unmute the next person. Hello. Can you hear me? It is Jonathan Unwin from Barclays. Yep. Yes. Can hear you. Great. I have a couple of questions, please. The first one is just a follow-up on the YpsoFIT program. You mentioned CHF low double-digit million out of the P&L over the midterm. Does that include the lower D&A expected from the lower CapEx you've announced? Is that CHF low double-digit million amount included in the midterm EBIT guidance of CHF 280-340, or could it be upside to that number? That's the first question. The second question is about the mix of pens versus auto-injectors. You spoke about how customers are kind of key because you have both. How should we think about potential headwinds from you selling more pens versus auto-injectors? Because in GLP-1s, for example, a pen can replace four auto-injectors, and presumably there's a different margin profile between the two products. If you see a big uptick in pen demand, what impact could that have on your midterm EBIT target? Thank you. Are we taking the first one? I can start with the first one and then hand over for you for the second one. The YpsoFIT program, this double-digit million amount I mentioned, yeah, that would also include the improvements we have through operational excellence, less investments, less depreciation. For you, it's fair to assume when we do a midterm ambition that a certain amount we include, we have as a realistic target. Of course, YpsoFIT can also provide actually an upside to that midterm profitability goal if we execute well. As I mentioned, one key factor there will be procurement savings. That is a potential upside. The questions to pens and auto-injector, I hand back to you, Simon. Sure. It's a very relevant question to ask, what is the trend in GLP-1. I mean, it's a GLP-1 thing, where it's possible to use both an auto-injector and a pen for some of the molecules. Many GLP-1 molecules are not liquid stable. You cannot put them in a pen. They will rest in an auto-injector. Let's take semaglutide, for instance, and the biosimilars of it, you can put them in a pen. Yes, we feel a slow trend towards device, but every biosimilar company is watching what Novo and Lilly are doing. When Novo and Lilly are launching auto-injector in some markets, they would also go for an auto-injector. If they go for a pen, they would also go for a pen. It's actually more sticky to what the two incumbents, the originators are doing, and then biosimilars are following the good messages. Jonathan, for us, the good message is that we have both product platforms in our portfolio, and this makes us hugely unique. As I mentioned before, we can really shift with clients. We can tell them, "Look, if you don't know yet where your auto-injector volumes will land, you can get the pens from us." Indeed, it's less lucrative for us because it's less volume, of course, but we can give the freedom and we can keep the customer with us. For us, it's a very valuable trend. I don't see it as negative. I see it as natural. It's also less plastic waste, by the way. It's not so much the cost. It's much more what the two originators are doing in the market, and then you can apply the trend for Ypsomed. Thank you. We'll take the next question online. Jeremy. Oh, hi. Thanks for taking my questions. It's Odysseas Manesiotis from BNP Paribas. First to Samuel Künzli, could you please confirm whether group EBIT for the year is expected at around CHF 210 million-CHF 230 million as well like core YDS? I'm just getting mid-single digits below, wanted to confirm. Secondly, could you please help us understand what commercial sales growth for YDS was, excluding the capacity reservation fee, for the second half of this year, just to get a cleaner number of the commercial exit rates? In the last fiscal year. Thirdly, could you also give us a comment on phasing for this year's guidance? P ens in H2, is it fair to think you'll see higher growth in H1? Any comment around margins. Thank you. Thank you, Odysseas. To your first question, you understood right. EBIT guidance is CHF 210 million-CHF 230 million with the delivery system business with own devices, midpoint would be CHF 220. As I mentioned before, the other EBIT effects, they more or less offset the EBIT which is coming from contract manufacturing Diabetes Care, which is positive, is offsetting with the slightly negative EBIT from phase out of contract manufacturing pens. To your second question, how is the growth dynamics of commercial sales. When you analyze, you see that it was last year, in the business year 2024, 2025, a little bit more than CHF 10 million capacity reservation fee revenue. Now in the business year 2025, 2026, it was around CHF 20 million. You can take those two sums away, then you have the full year dynamics. When it comes now to what you mentioned, H2, let us that pick up separately. Happy to have then in a separate analyst call a look at that dynamic. Phasing, the third question, as many of you know, we historically have rather a stronger second half year, so we had that also now in 2025, 2026, and we expect that also for 2026, 2027. For that business year. The rough estimate you can take is roughly 45% of sales in the first half year and then 55% in the second half year. Feel free, Simon, to- Okay add something. Thank you. We'll take the next question online, if that's okay. Yes. Hi. It's Friedrichs from Deutsche Bank. Thanks for taking my questions. I have two. First of all, could you please explain again why the growth in 2026, 2027 is a touch slower than in the previous year, and then also, compared to what you expect for 2027, 2028? Is this simply a timing question of new capacity coming online, or is there maybe also a connection to the expected ramp up of Novo volumes? Connected to that, could you remind us how much GLP-1 revenue you eventually had in fiscal year 2025, 2026? I think you pointed to around 10% at some point in the past. A confirmation here would be great. Also just to confirm, is there already meaningful Novo volume in there, or is this expected for this the fiscal year that has just begun? It's probably fair to assume, given the launch is early 2027, that over the just the fiscal year that has just begun, Novo volumes will probably start to ramp up for you. Thank you. I start, then I know. The growth compared to previous years, yes, when we look at Delivery Systems in the past, there was also a slide which we showed at our Capital Market Day that there was 20% growth in that business. Have in mind, that was also on a much lower base. We also tried to explain you in the Capital Market Day from which therapeutic areas that growth was coming and is coming in the future. You might remember, main growth drivers are autoimmune growing double-digit, then we have the GLP-1 incretin space also growing, neurology, we have rare diseases growing very fast. We also have also one important therapeutic area which is expected to grow slower than in the past, and that is insulin, and that was in the past growth rates, of course, still a driver. The second question, the ramp-up, Simon mentioned it is more or less a linear growth we expect until end of the decade. Of course, a certain phasing when certain drugs are launched, this is natural. We don't have somehow a specific element which would now, let's say, make this grow now slower and then in the future faster. Think of it when you model it as a linear growth more or less towards the end of the decade. The third question about how much is incretins today of our sales. The number you mentioned is right. Around 30% of the sales 2025, 2026 were related to incretin customers. 10. 10. Sorry. 10% in the last year and 30% in the midterm. Thank you. Novo, the question for you it's fair to assume that, of course, Novo is building up the supply chain before they launch. It's fair to assume that we already have certain sales already for Novo. Feel free to add Yes, it's ramping up, but it's not significant. The majority comes from other companies in China and around the world. T hat we just announced such as Sun Pharma and, one company we also announced is Innovent in mainland China, so this is real significant double-digit million volumes devices that we ship. It's quite broad. Of course also project revenues with those 50 projects in GLP-1. Thank you. We have two more questions online and then we'll wrap up. Perfect. Thanks for taking my questions. Just a couple on KPIs and then one on Holly Springs. I mean, firstly, if we look through the KPIs in terms of disease areas and originated drugs, it's past your target, but on the biosimilar side it was lower than expectations. I was wondering if you could talk to this particular phenomenon. Is there a catch-up in biosimilar projects expected, or did you prioritize certain originators? Maybe just another KPI that you've commented on the past but don't disclose now about equipment effectiveness. You had a target of 70% for the previous fiscal year. Could you talk quantitatively how this looks today versus those original expectations? Thanks. Take the second one. Take the first one. I can start then with the second one with the OEEs, that is, and I mentioned it in the Ypsomed program. The 70% is overall still a goal. We have certain lines which need to have higher OEEs where we are also today above the 70%. A thing I wanna highlight here, what of course is crucial in ramp-up phases, that you reach those target OEEs as fast as possible. You might remember the slide also I showed at the Capital Market Day, that for us, ramping up and especially coming to target OEEs, that can take a year, there is where we have a clear focus on it. Just because we don't report it anymore doesn't mean that we have it as a focus. It's a clear focus because it's one of the main cost drivers, the OEE. Yeah, the first one. Overall, I am not sure if I fully got your question. If I do not answer correctly, feel free to ask again. On biosimilars, basically we, of the 44 deals we have signed, last year, 21 were biosimilar, so I think we have a quite a healthy spread. We have never guided or mentioned any targets on biosimilar versus. originators. No, we are very happy. We are closing six or seven out of 10 deals in the Western world. We are closing a bit below five deals in China, I guess. That's pretty difficult for us to figure out because they're very a lot of small shops that is difficult for us to really prioritize. In general, I mean, we are full on track with the overall trajectory on deals. Maybe you wanna concretize your biosimilar question. Hi, can you hear me? Yes. Yep. Yes. Sorry. Yeah, just on the annual report, I mean, it's on page 23, there is a target that talks about injection systems for biosimilars in numbers. In terms of the target, it was 52, and the number you're quoting is 47. In terms of originators, the target was 31, and you're looking like you're serving 36. I just wanted to try and understand, is there a pull forward of maybe higher value contracts in originator or vice versa or any- Okay dynamics there? First of all, impressed how. Yeah detailed you read our report. Thanks a lot. These are targets that have been set four years ago, so obviously it's quite difficult to No, I mean, there's no sign or trend. It is, we close what we can close. We try to prioritize. Every deal below CHF 5 million annual revenue, we look at very carefully. Every deal below CHF 1 million, we don't do. There are of course biosimilar deals we don't do because it's, they're too small. No, this is not a trend. This is a figure now. Basically, we are setting new targets now for the next term, four years and for the non-financial and the financial reporting guidelines, and so we'll be very careful on setting a target there. Brilliant. Perfect. I think we have one more question online, and then we'll close the call. Hi, yes. This is Anna Snopkowski from KeyBanc. Congrats on the great results. I have two questions. The first is around the record number of new projects. It looks like it's pretty balanced between both incretin and non-incretins, as well as originators and biosimilars. Do you think you could just remind us how many existing projects you have in place and give us a sense of whether these customers were motivated by your new launches of your devices, and what makes these devices better for next generation therapies? Then I have a follow-up, but maybe we can start there. Thank you, Anna, for the two questions. On the 44 projects, 15 have been incretins, and if I do the maths correctly, 29 is non-incretin. Of the 80 launch projects, only a handful are incretins. The majority are outside of the space. Of the 180 overall projects in the pipeline, roughly 1/3, roughly 50, are incretin or somehow GLP-1 related, which will, if you now take the line, you know, it will end up to something like 30%, 1/3 of the overall revenue in five, six, seven years will be GLP-1 related. On the devices, you know, our competition is excellent. We have great colleagues with the other companies. They manufacture and develop excellent products as well. In the end it's always a package, and what we have seen over the past many years that the trust and the track record and the fact that we are known in the industry to deliver, that we pick up the phone after one time ringing, that we answer the email in 24 hours, that we deliver the project on cost, on time, that these things in the industry are really known. Many pharma clients choose us because of those values. Other companies in Taiwan, for instance, they are doing a great job as well, and we are motivating each other to invest more in innovation. Today, we are clearly ahead of them. We are clearly number one, but we have to stay awake, you know, and keep up the good work. Thank you. I mean, Sibylle, can we do that one-on-one, your question? Let's stop it here, okay? Thank you very much. We will close the recording. Thank you. Thank you very much, so, for coming, and, we have some more time outside for some one-to-ones. Thank you very much. Thank you also from my side.