Welcome to today's event where we have the pleasure to present Embla Medical. Today's event will, of course, cover the Q2 2026 results, and maybe a little bit look into the rest of 2026. As always, we are joined by Sveinn Sölvason, President and CEO of Embla Medical, to help us through today's small result presentation and then the following Q&A. We will do most of this by the Q&A, do feel free to ask questions in the box down below during the short presentation or do it afterwards. But do feel free to fill in a lot of questions, then we will go through the quarter through mainly the questions. For now, I will hand the call over to you, Sveinn. Thank you very much, Michael, good morning, everyone. Thanks for dialing in to our quarter two results presentation. This was a good quarter and a good first half year for Embla Medical. Here in quarter two, we reported 11% growth in local currency, 6% organic growth, and strong margins. Our margins are up compared to same quarter last year. We also posted a super strong net profit result. What is impacting our margins is mainly that we have strong organic growth in our core product business as well as good overall cost control in an inflationary environment. Also that we did get a refund from the U.S. government on tariffs. Net $3 million impact here in the first half of the year. Overall, strong first half of the year and a strong quarter two. A few highlights on the operational side. We've now completed the ForMotion brand rollout, which is a major milestone for our organization. We now have all our clinics transitioned to the ForMotion brand, which is a super important step in our efforts to really build a global patient care franchise. Good progress on the R&D side. Six new launches here in the quarter, and we are also giving an update on our efforts to build and release a specific solution for the less active part of the population, like K2 knee, where we now have a well-functioning prototype, which will be used for testing and validation here over the next quarters. We're still on track for launch late 2027. We have reiterated our guidance but narrowed the top, or let's say the top-line growth guidance from what was previously 5%- 8% growth is now 5%- 7% growth. We have reiterated our EBITDA margin guidance of 22%. A few more highlights before we turn to the Q&A. We did include a short update on our R&D efforts. R&D or investing in innovation has always been core to our progress in the O&P industry. We have, over the last five years, invested close to $200 million in R&D and introduced very impactful new innovations on the bionic side as well as on the mechanical side. We see the relative share of sales launched, or let's say as a result of recent innovation increasing here in the last years, which is a sign of health for our innovation efforts. Our goal going forward is to continue to make investments such that we are solving the right needs for the patients that rely on our products and services. Just a few words on the underlying segments. Yeah, super solid performance in our Prosthetics & Neuro Orthotics business across all regions and markets and product segments. 12% organic growth here in quarter two, which is comparing to also a close to double-digit organic sales growth in the comparable quarter last year. Lots of things moving in our favor here, and also happy to report strong progress on the Neuro Orthotics side that we are now starting to see impact also in the U.S., where we are starting to get traction in terms of sales of our Bionic Knee Brace, which is a great milestone. On the Bracing & Supports side, 1% growth. We do expect a stronger second half in Bracing & Supports. We launched some important products here in quarter two, which will help us here in the second half. On the regional dimension, U.S. was good here in the first half of the year, while EMEA was behind. Again, the product launches will help us here in the second half of the year. Patient Care has been a big topic for us here in our quarter two release. Patient Care is, or let us say the sales growth here in the first half of the year is disappointing. It is slightly below our expectations. Ultimately, our goal in Patient Care is to provide excellent care to the people that rely on our products and services. As I mentioned earlier, we have, over the last 18 months, been focused on building a global Patient Care business. We have around 200 clinics. The financial performance in those clinics will be a result of our ability to serve patients in a productive way and maintain a healthy level or the right level of fixed cost. We see really good progress in Americas, now the third consecutive quarter where we have quarter-over-quarter movement in the right direction. APAC is stable. While we have two of our big European markets behind, compared to where we had forecasted for the year, and that is the main variance in our performance in Patient Care, more specifically Sweden and France. We are working super hard on moving our Patient Care business to a more normalized performance. With that, I will just summarize again with our reiterated guidance, Michael. Yeah, a slight narrowing of the top-line guidance, otherwise, we are optimistic here going into second half of the year. Perfect. Let us jump into the questions, the first one is actually on the Patient Care. What are you needing to fix? Put it bluntly. What are the needed fixes? Is it to get patients in the door, or is it to be more efficient? What are the main problem? I guess with the growth it might be to get more patients in the door. Yeah. In Patient Care, over the last decade, we've made close to 40 acquisitions in 11 markets. These are good companies, well-positioned in healthy markets. Over the last 18 months, we have taken steps to really integrate and build a global Patient Care franchise, meaning, ultimately with the objective of enhancing our ability to deliver great care, building some scalability into the business, building a strong brand because we believe that this is simply the right and really the only sustainable way of running the Patient Care business. If we look across our portfolio of 200 clinics, step by step, we see a bigger part of our portfolio generating healthy results. There is still work to do in some regions, and ultimately each and every clinic, the net result is a combination of the ability to bring patients in the door, serve them effectively and maintain a healthy fixed cost level. We are working on all three levers in the areas where we're still challenged. With that said, we talked about it here that the main markets where we're challenged is Sweden, where it's more a result of the tender environment in Sweden. It's the only market where we have tenders. That's the nature of the business. You win some, you lose some, and now we're kind of in between, where we've lost some tenders but have not yet started to have benefits from the tenders that we've won. That is a little bit of a timing impact, if you will. In France, we have great team, great position, healthy market. Have been through lots of integration work, both brand rollout also really combining what has been lots of smaller acquisitions. The initiatives that we have focused on are yet to yield the results that we are expecting, but we'll get there. At the end of the day, the market is healthy, and it's more of an internal project that we need to work through. Have you lost any patients? Because if I understand, the Patient Care is pretty simple. You get one in, you serve him almost for life, right? He needs so it matters whether you lose patients. Gaining new is good, but you also need to keep the patients in that is there. Has that been a big factor in this integration? Is that a way to fix it, or is it more you have kept the patients, but it's more getting the new ones in the door that is focused? It's not our understanding, Michael, that we've lost a significant amount of patients there. In a change process like this, there will be some turbulence, and yes, maybe a few patients have decided to get their service elsewhere as a result of these changes, but that is not a major theme. It's more a productivity topic also, perhaps not attending well enough to our referral sources through a change period like this. There's a few things like that. Again, we have a great team in France and have historically had a good reputation for delivering good results for our patients. We are confident that we'll get back on track. The most important fact is that the market in France, it's a healthy market. Yeah. Reimbursement is reasonably stable, payers have also shown some understanding for gradually opening up for reimbursement of higher quality devices. We have every reason to be optimistic. That's why, yes, you are dissatisfied with it hasn't happened faster. This model where when you get the patient in, you have him for a very, very long time, it's actually small fixes. Is that understandable? Yeah. You have some kind of a base to work out from. Now it's the small fixes that should bring you back to what is market growth expected here? Is that around 3% or something like that? No, market growth in Patient Care is mid-single- digit growth. Okay. Maybe a little bit different from region to region, but it's. Everywhere else. What drives that growth, you're right, Michael, in the sense that there is, o ur core business, you could say the Prosthetics & Neuro product business and the Patient Care business. This is where we are serving a population that has a consistent need to maintain, upgrade, and renew their mobility devices, and simply work through the issues that arise having to deal with a chronic mobility challenge. Our job is to serve this population as well as we possibly can, both as a manufacturer of products and solutions that we sell onwards to our independent clinical customers, as well as in our own Patient Care franchise. We are very enthusiastic and excited about the prospects of really starting to harvest the benefits of operating a global Patient Care business with a strong brand, building some scalability into the business, and really building these capabilities, which will ultimately enhance our capabilities to really offer excellent Patient Care and offer some differentiation on that front. If you look from the outside, someone could say, okay, you need the products, your product business is actually running extremely good. We haven't seen your big competitor, you beat them in the first quarter. It might look like you beat them in the second quarter also on your product side. That's not what you are missing, right? Yeah. Okay. Then you would need that in the Patient Care also. Yeah. There are no indications of that. Perfect. Yeah. Very simple questions about the tariff refunds. Yeah. $3 million this quarter. Is there more to come or have you gotten everything back, is the question. Well, after these tariffs were determined to be illegal by the Supreme Court in the U.S., we did follow the process provided by U.S. authorities to claim for reimbursement of the tariffs that we did pay prior to this ruling. We have now received repayment of the majority of what we applied for. There is maybe $1 million that we could get here in the second half of the year in total, that's nothing that will move the needle materially with regards to our overall results. The impact year- to- date is net $3 million. We expect our run rate tariffs to be about $1 million per quarter. There continues to be some uncertainty around this impact of tariffs. Yeah. Actually, there is a question. Do you still operate with a plan B if tariffs get returned? I saw now he's threatening Canada. I know it's only on a small part of your portfolio and the Bracing and what is coming in from China. Do you continue to work with maybe more or have you stopped now when the danger is over, the big danger is over and you stopped? Are you still trying to maybe think a little bit about being agile or doing something for the tariffs that is still existing on the China products and so on? The tariffs have now been in our world for more than a year. Okay. I believe companies like ourselves that are manufacturing, global companies that have manufacturing in China or Southeast Asia and are selling products in the United States, have all found a way to understand the potential impact of changes in tariffs and all have plans with regards to potential mitigation and so forth. We have built up lots of, I believe, resilience in this area and are constantly working on our contingency plans and have a good view on what our options are. There is still, I believe, I still believe we haven't found a new normalized level, which we believe we can say this is where we are for the foreseeable future, which could trigger perhaps some more longer-term changes on the supply chain side. We're still taking it step by step. Step by step, but still being on your toes. Yeah. Very much on our toes. The question is. Yeah Is everybody relaxing now when Yes, perfect. Then on Ukraine, you mentioned it actually in your report as a part of something that is driving a little bit of your sales. Here's a specific question. Can you do something in that market? Can you build up a network, or is it still your presence over there, or is it still too difficult with the current situation, which unfortunately seems to be worse on the civilian side and that part by more bombings. Yeah How do you go into this environment and operate and try to build something up that can help them with their needs? As we've talked about previously, there is an unprecedented situation in Ukraine with regards to the need for prosthetics as a result of the invasion. We are in a good position to support that need. We have established a team in Ukraine that is working with our independent clinical customers who are building up a capacity to serve the population in Ukraine that needs prosthetics. We have also established our own clinic. It is fair to say that there are lots of operational challenges in moving all these things forward given the current situation on the ground. There's unfortunately no line of sight in terms of when that will change. We're doing everything we can and we, yeah, expect Ukraine to be a bigger part of our efforts as a company going forward. There's lots of uncertainties. We remain committed to doing what we can here in the short-medium- term, given the situation. On the U.S. situation, we always talked about this improved reimbursement. It will go slowly. I'm starting to see that. Maybe I have a little clarifying question because you mentioned you have a new invention to the K2 knee. Is that a lower price point you need, you said at the end of 2027 to really have a strong presence by this new reimbursement? Is it price point or is it capabilities? Just to make other understand. Yeah How are you seeing, is it progressing and is your current product, will they serve that, but you need something to really serve that market? The good news for the patient population in the United States is this expanded coverage that happened now a couple of years ago that has opened up for more patients having access to better products, including the less active patients now also being eligible for reimbursement of these, what we refer to as bionic knees or microprocessor-controlled knees, very sophisticated devices. Our portfolio is well-positioned to serve this lower active population. We have our three flagship knees, the RHEO, the Navii, the Icon from College Park, that all are eligible for reimbursement under this expanded reimbursement regulations. We've also said that we would benefit from a product that is specifically designed for the least active patients. That is what we're working on. It's more of a feature, rather than a price topic, Michael. We gave a small update here in the quarter that our efforts are on track. We now have a well-functioning prototype, which we're testing and validating. It's a big responsibility to bring a new device like this to market, let's say a knee joint that needs to be safe, an individual needs to be able to trust in that device and load it with their full body weight. It is a delicate task to bring a device like this to market. Our standards are super high in that regard. We're enthusiastic that we are now entering into the next phase of this development process and have an exciting product that we hope to bring to market end of next year. You have products, you will serve this market. Yeah. Yes that price point and with those capabilities, it will fit perfectly into this increased reimbursement. Yes To understand? Understood. Yeah. Yeah. Perfect. A little bit on the share buyback side, there's a question here. Is that something we should now expect continuing, or is it in a lag of you not having found any M&A? A little bit how we should think about your distribution and a little bit on the M&A front. Yeah. We have our capital allocation policy is around maintaining a ratio of 2x, 3x times net debt to EBITDA. We will use share buybacks to regulate our capital structure. Our first priority is to do selective acquisitions that strengthen our ability to deliver on our strategic objectives. The timing of these types of acquisitions can fluctuate. Our core business is very cash generative, and we see that here in quarter two, where we're generating very healthy free cash flows. Those free cash flows Again, our goal is to grow the business, but in the absence of those opportunities and timing and all that, our goal is to regulate the capital structure through share buybacks. That's what we expect to continue to do. Yeah, I guess M&A must be on the table, right? Because if you should look at any success stories by you, if I read through, I can see Streifeneder, and I can see that you are bringing it to new markets. Yeah. I guess that story, when you measure that in a couple of years is saying, Yes, that was a good strategy. I may be putting words into your mouth, but I can see through the report, right? You're still in the early phase of rolling something out and what extra growth this gives you. I guess that must be on the table, right? Yeah for me, it seems like something that is really working for you. Yes. It's been a big part of our development as a company to grow through acquisitions. We have good experience in that and are always looking at the right opportunities. Yes, we've been fortunate to team up with great brands and companies here in the last couple of years, College Park, FIOR & GENTZ, Streifeneder, are all companies with a great position, great culture, and a really good fit to what we are striving for in this industry to ultimately reach more patients that need our products and services. Me looking from the outside, it looks like now you are large enough, you are global enough. I don't like to talk about the DSV model, but you can really use the purchase because you are still a fragmented business, right? You might be a company who has the best product and only selling in Germany. Yeah This one. That's right. Yeah. I guess that still could be the picture. Yeah. Indicating that there could be very healthy returns for you on M&A. Yeah. Is that? That's a fair description, Michael. Yes. Yeah. Perfect. Then in the end, you took a slide with, and you touched upon it, the R&D and the sales effect, which is exploding, right? And we can see all your product innovations. Are you trying to place yourself a little bit more like a high-tech company than a medical device company? There is distinctions we need to. Is that how you're trying to place it, and how high can your revenue from new products actually go? Now, I think it was. Yeah who was doing that. Around 27%, or something like that. Do we have set any internal targets on how that can go, and this making you want to invest more in the R&D because. Yeah You can see your model working? Well, innovation has always been part of our core business. We invest a big part of the innovation capital that's invested in the overall industry. Innovation is not an easy task. You need to make the right choices with regards to what needs to solve. It requires a very clear view on patient needs. Also a really good understanding of the underlying reimbursement market, because that is the reality of our business. We are operating in healthcare systems that have set certain protocols for how they pay for these types of services. Yeah. We've also demonstrated our ability historically to demonstrate to payers that the health economics of paying for expensive, sometimes expensive devices, is still a good investment because it lowers the cost burden for systems for when people are more mobile. It's our goal to continue to invest in R&D. That always needs to go hand in hand with those investments resulting in healthy sales growth. What we see here over the last years is that we've been fortunate to make the right choices. Our investments are resulting in more patients getting better products. That will continue to be a theme in our business. When you take a step back and look at the facts, there is still a very low portion of the global population that we want to serve that is actually using and having access to high-quality products. There's still so much we can do to replicate the more normal movements of the human body. There's a plenty of room to continue to invest in R&D, but success will always depend on a balanced, humble view on really understanding patient needs and balancing that against the reimbursement realities that we're always battling. Yeah. You mentioned the reimbursement because as I saw this slide you presented the first time on another presentation, I can see you have made a lot of product launches, which of course can explain it. Do you also see it as would we be very important for your long-term growth trajectory, that it is the society more accepting your innovations? If you understand what I mean. Yeah. You bring it to market, but if it was 20% earlier, now it's reaching 30%. Is that a willingness in society you're seeing increasing to pay for this, which would yield. Yeah a more positive for your view on the future because society is actually now paying for the innovation, you can build a model where you do the innovations. I know it's not easy, but then you also get paid for them, like in the pharma sector versus maybe in the medical supplies. Yeah Before that. I mean the reality of operating in healthcare is that healthcare budgets are always going to be constrained and pressed. You have healthcare systems in Europe that are dealing with increased aging and all the healthcare costs that come as a result of that. You have lots of big economies in Europe that are also having to divert government spending towards things like defense-related matters. All of this would just increase the burden of proof, if you will, that healthcare providers are providing solutions that are economically efficient for payers. This is again, just goes to the core of our business. It is a fact that if people are more mobile, if they're able to go about their lives, if they have access to efficient mobility solutions, all else equal, the cost burden for healthcare payers for these individuals will go down. That's the system and that's the reality that we will need to navigate. We believe that we have an important role to play, and can really help with the challenges that healthcare systems are facing on the cost side, and at the same time, help patients. We're in a way in a luxury position in many ways. If we do better, that means that the healthcare systems are doing better and patients do better. That's how it all comes together. Just a final question, and maybe we are looking a little bit too much up and then I will let you go and have your deserved holiday. Thank you. Bionics, we mentioned it before, it's kind of a topic. Could you use increasing your R&D and actually spreading it out to two areas, right? Humanonics and bionics, and taking care of the needs of disabled people. You could actually spread your R&D investments in two ways and get a higher return of that. Or is that still too early? I guess the technology of letting a robot's hand move is kind of what we are trying to imitate. Yeah Human. You must have some knowledge there. It's always gaining ahead of competitors by innovating enough and innovating more. The more you can spread and the more you can use that R&D, the more you can get ahead. Any thoughts about that, or it's still too early that we have start talking a lot about that? No. Well, it's our job to always evaluate where do we have a right to play as a company? Where do we have strength? Where do we have assets? Where do we have a role to play, and how do we prioritize? If I look at our core business today, we have plenty of, let's say, opportunities, in what is just our core business, really our core business and just this chronic mobility area, both on the traditional prosthetic side, also on the Neuro Orthotic side. With that said, we have lots of knowledge around mobility, robotics, how devices are attached to the body. We're one of the companies that has this largest intellectual property portfolio in and around that topic. We're always, let's say, looking at adjacent areas. We talk to other industry participants and get a lot of outreach from other players that are positioning themselves in this whole robotics humanoids industry. I'll say that we're focused on our core today, but this is certainly an area where we could have some angle. I hope that's a fair answer at this point, Michael. Perfect. Yeah, I didn't expect you to look into the future here. Perfect. Thank you, Sveinn. I think that was the last question. I'm just checking. Yes, that it was. Thank you for taking the time to present your result and answer some questions, and thank you for the audience listening in. May everybody have a nice holiday if they're on it or if they're going on it. Thank you very much everyone. Appreciate everyone listening in. Have a nice day.