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Presentation of Year-end Report 2025 ©2025 Surgical Science. | All rights reserved.
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CEO comments – Q4 2025 ▪ In Q4, Surgical Science continued to take steps in the right direction ▫ Net sales of SEKm 269, 7% growth. 15% growth adjusted for FX ▫ Adjusted EBIT at 17%, in line with financial targets ▪ Mixed performance in Educational products with 4% growth ▫ Continued high activity in ultrasound and strong demand globally, with sales up 48% ▫ Profitability improvement efforts are starting to have a positive impact, but were offset by adverse currency effects ▫ New distributor program launched. Impact expected in Q1 2026 ▪ Industry/OEM performed well with sales increasing by 10% ▫ All time high license sales of SEKm 92, from Intuitive and several other customers ▫ Continued strong development of the robotic surgery market, with more players and bigger pipeline of robotics projects ▫ Continued strong interest for the newly launched RobotiX Express platform ▫ Pipeline of ongoing medical device development projects up 15%, repeat customers exceeding 70% ▪ New strategy presented at Capital Markets Day in December. Focus on increased market penetration and profitable growth across the five defined market segments
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Q4: Profitability in line with financial targets Q4: ▪ Net sales up 7% to SEKm 268.9 (251.5). In local currencies up 15%. SEKm 14.2 from IU. ▪ Educational Products up 4% (-8% excl IU). Regions: Europe +4%, Asia -21%, Americas +43%. ▪ Industry/OEM up 10%. License revenues up 21%, SEKm 92.3 (76.4). Sim sales SEKm 21.4 (42.5). Dev rev’s SEKm 21.5 (4.7). FY2025: ▪ Net sales up 12% to SEKm 992.3 (884.1). In local currencies up 19%. SEKm 75.3 from IU. ▪ Educational Products sales up 13% to SEKm 501.5 (442.5). ▪ Industry/OEM sales up 11% to SEKm 490.8 (441.6). 2 SEKm
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Revenue streams ▪ License rev’s: 34% (30) of total revenues. Intuitive sales strong both in terms of dV5 and older generations. Larger batch order from another robotic customer. ▪ Simulator sales down 12%. ▪ Continued strong development rev’s. Consists of both robotics’ projects and sales of simulators w/in Indu. For the Q revenues from project in Southeast Asia. ▪ Stable service revenues. SEKm 3
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Costs and EBIT margin Q4 2025 ▪ Gross margin 66% (68). Higher license revenues positive, but currency and inclusion of IU negative effect. ▪ Sales: 17% (20) of sales. SEKm 3 in tariffs on simulators from non-US production units. ▪ Admin: 9% (9) of sales. Increased costs related to for example internal dividend and CMD. ▪ R&D: 22% (21) of sales. Activated costs SEKm 9.5 (10.2). SEKm 3 restructuring in Seattle. ▪ Other: Option programs, FX-effects. ▪ EBIT SEKm 40.1 (39.1), 15% (16). EBIT for IU SEKm -4.8. FY2025: ▪ EBIT adjusted for acquisition and restructuring costs 10% (16). Adjusted for FX effects 17%. 4 Sales costs 17% (20) Cost of goods sold 34% (32) Research and development costs 22% (21) Operating income and costs 3% (2) Administration costs 9% (9) Operating margin 15% (16) Costs/margin as a percentage of sales
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Organization No of employees at end of period: 313 (274) Offices / Development sites Women 87 (75) Men 226 (199) * Other: Primarily Germany and China. Sweden 68 (64) Israel 152 (138) UK 28 (1) Other 21 (17) * USA 44 (54) 5
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Adjusted EBIT* Q4: ▪ Adjusted EBIT SEKm 45.7. Adjusted for restructuring costs SEKm 48.4 (45.3), margin 18% (18). FY2025: ▪ Adjusted EBIT SEKm 91.8. Adjusted for acquisition and restructuring costs SEKm 122.4 (168.7), margin 12% (19). 6 *Excluding acquisition and restructuring costs related to IU in Q1 and Q3 2025 and Seattle in Q4 2025.
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Finance net and taxes Q4: ▪ Finance net for the quarter SEKm 2.4 (0.3). Interest on bank balances, revaluation of internal loans and IFRS 16 effect. ▪ Tax expense for the quarter SEKm -9.2 (-3.2). ▪ Net result for the quarter SEKm 33.3 (36.3). FY 2025: ▪ Finance net for the year SEKm 31.3 (13.8). Interest on bank balances, revaluation of internal loans and IFRS 16 effect. ▪ Tax expense for the year SEKm -33.3 (-26.4). ▪ Net result for the year SEKm 66.8 (131.6). 7
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Cash flow ▪ Cash flow from operating activities SEKm 72.9 (56.7). Change in working capital SEKm -3.0 (-2.2). Inventory unchanged, A/R decreased. ▪ Cash flow from investing activities SEKm -15.1 (-12.1) mainly investments in development costs. SEKm 3.2 invested in production facility in Tel Aviv. ▪ Cash flow from financing activities SEKm -25.7 (240.0). ▪ Cash at end of period SEKm 616.4 (968.2). ▪ A/R as % of sales LTM at good level. 8 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 0 100 200 300 400 500 600 700 800 Q4 Q1 2024 Q2 Q3 Q4 Q1 2025 Q2 Q3 Q4 SEKm Net cash position Accounts receivable as a percentage of rolling 12-month sales
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