Q2 2026 BICO Group AB Earnings Call

August 19, 2026

Speaker #2: Call recording is.

Speaker #1: On.

Speaker #2: Welcome to the BICO Q2 2026 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the question and answer session, participants will be able to ask questions by pressing the pound key and 5 on their telephone keypad.

Operator: Welcome to BICO Q2 2026 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to the speakers, CEO Maria Forss and CFO Ewa Linsäter. Please go ahead.

Speaker #2: Now, I will hand the conference over to the speakers, CEO Maria Force and CFO Eva Linsater. Please go ahead.

Speaker #3: Thank you, everyone, for joining us today. It's a great pleasure to be here. My name is Eric Attenholm, and I'm here today in my capacity as Chairman of the Board.

Erik Gatenholm: Thank you everyone for joining us today. It is a great pleasure to be here. My name is Erik Gatenholm, and I am here today in my power as chairman of the board. We will spend the first minutes of this earnings call to comment on the press release published yesterday evening regarding the leadership transition. We will then proceed with the BICO Group Q2 earnings call. Today, I have the pleasure of having Maria Forss, CEO, Ewa Linsäter, CFO, and Anders Fogelberg, current CCO and incoming CEO in the call. The purpose of my remarks is to provide the board of directors' perspective on yesterday's announced leadership transition. After constructive discussions together with Maria Forss, the board of directors concluded that this is the right time for a leadership change as BICO enters its next phase of development, with amplified focus on commercialization, customer engagement, and profitable growth.

Speaker #3: We will spend the first minutes of this earnings call to comment on the press release published yesterday evening regarding the leadership transition. We will then proceed with the BICO Group Q2 earnings call.

Speaker #3: Today, I have the pleasure of having Maria Force, CEO; Eva Linsater, CFO; and Anders Fogelberg, current CCO and incoming CEO, on the call. The purpose of my remarks is to provide the Board of Directors' perspective on yesterday's announced leadership transition.

Erik Gatenholm: The purpose of my remarks is to provide the board of directors' perspective on yesterday's announced leadership transition. After constructive discussions together with Maria Forss, the board of directors concluded that this is the right time for a leadership change as BICO enters its next phase of development, with amplified focus on commercialization, customer engagement, and profitable growth.

Speaker #3: After constructive discussions together with Maria Force, the Board of Directors concluded that this is the right time for a leadership change as BICO enters its next phase of development.

Speaker #3: With amplified focus on commercialization, customer engagement, and profitable growth, the board is pleased to appoint Anders Fogelberg as president and CEO, effective September 1.

Erik Gatenholm: The board is pleased to appoint Anders Fogelberg as President and CEO effective 1 September. As Chief Commercial Officer and a member of the executive management team since 2024, he has already played an important role in driving global commercial execution and advancing key market positions. I would also like to sincerely thank Maria Forss for her contributions and dedication to BICO. Maria, you have, together with the team, played an important role in strengthening the financial position, strengthening of the balance sheet from net debt of -877 million Swedish crowns to net cash of 207 million Swedish crowns, and improved net working capital from 27% to 10%, improving operational discipline and integrating acquired companies into a more streamlined organization. Thanks to Maria, the company now stands on firmer ground and is better positioned for the next phase of development.

Speaker #3: As Chief Commercial Officer and a member of the executive management team since 2024, he has already played an important role in driving global commercial execution and advancing key market positions.

Speaker #3: I would also like to sincerely thank Maria Force for her contributions and dedication to BICO. Maria, you have, together with the team, played an important role in strengthening the financial position, strengthening of the balance sheet from net debt of negative SEK 877 million.

Erik Gatenholm: Maria, you have, together with the team, played an important role in strengthening the financial position, strengthening of the balance sheet from net debt of SEK -877 million to net cash of SEK 207 million, and improved net working capital from 27% to 10%, improving operational discipline and integrating acquired companies into a more streamlined organization. Thanks to Maria, the company now stands on firmer ground and is better positioned for the next phase of development.

Speaker #3: Grounds to net cash of 207 million Swedish kronor, and improved net working capital from 27% to 10%. Improving operational discipline, and integrating acquired companies into a more streamlined organization.

Speaker #3: Thanks to Maria, the company now stands on firmer ground and is better positioned for the next phase of development. On behalf of the board of directors, I would like to wish you all success in the future and, at the same time, give Anders Fogelberg a very warm welcome to this new role.

Erik Gatenholm: On behalf of the board of directors, I would like to wish you all the success in the future. At the same time, give Anders Fogelberg a very warm welcome to this new role. I now hand over the word to you, Maria Forss.

Speaker #3: I now hand over the word to you, Maria Force.

Speaker #4: Thank you, Eric. It's been a privilege to lead BICO during an important period of transformation, and I have worked closely with Anders during the past years. I'm confident in his ability to lead the company moving forward.

Maria Forss: Thank you, Erik. It has been a privilege to lead BICO during an important period of transformation. I have worked closely with Anders during the past years, and I am confident in his ability to lead the company moving forward. Anders knows the organization, he knows our customers, our strategy, and opportunities well. I look forward to supporting a seamless handover over the coming months, and I wish him and the entire team every success.

Speaker #4: Anders knows the organization; he knows our customers, our strategy, and our opportunities well. I look forward to supporting a seamless handover over the coming months, and I wish him and the entire team every success.

Speaker #3: Thank you, Eric. Thank you, Maria. I'm honored to be appointed President and CEO of BICO. Having served as Chief Commercial Officer and a member of the executive management team, I've had the opportunity to work closely with our colleagues, customers, and partners around the world.

Anders Fogelberg: Thank you, Erik. Thank you, Maria. I am honored to be appointed President and CEO of BICO. Having served as Chief Commercial Officer and a member of the executive management team, I have had the opportunity to work closely with our colleagues, customers, and partners around the world. I have a strong passion for this industry and the important impact that our people and our customers perform every day. I have been prioritizing deep customer engagement, operational excellence, and profitable growth since joining the company, and I will continue to do so also in my new role. BICO has an attractive position at the intersection of automation, intelligence, and life science workflows, serving leading pharma and biotech customers globally. The opportunity ahead is substantial. My immediate priority is execution, supporting our customers, driving commercial performance, improving operational efficiency, and delivering sustainable, profitable growth.

Speaker #3: I have a strong passion for this industry and the important impact that our people and our customers have every day. I have been prioritizing deep customer engagement, operational excellence, and profitable growth since joining the company.

Anders Fogelberg: I have been prioritizing deep customer engagement, operational excellence, and profitable growth since joining the company, and I will continue to do so also in my new role. BICO has an attractive position at the intersection of automation, intelligence, and life science workflows, serving leading pharma and biotech customers globally. The opportunity ahead is substantial. My immediate priority is execution, supporting our customers, driving commercial performance, improving operational efficiency, and delivering sustainable, profitable growth. I really look forward to engaging with all of you over the coming months.

Speaker #3: And I will continue to do so, also in my new role. BICO has an attractive position at the intersection of automation, intelligence, and life science workflows.

Speaker #3: Serving leading pharma and biotech customers globally, the opportunity ahead is substantial. My immediate priority is execution: supporting our customers, driving commercial performance, improving operational efficiency, and delivering sustainable, profitable growth.

Speaker #3: And I really look forward to engaging with all of you over the coming months. Thank you, Maria and Anders. I now hand over the word to Maria and Eva to present the BICO Q2 earnings report.

Anders Fogelberg: I really look forward to engaging with all of you over the coming months.

Erik Gatenholm: Thank you, Maria and Anders. I now hand over the words to Maria and Ewa to present the BICO Q2 earnings report.

Speaker #4: Thank you, Eric, and thank you, Anders. I will continue today's session by summarizing Q2 2026 and also describe how BICO serves the world's leading pharma and biotech companies with solutions that transform how labs operate, innovate, and solve our customers' challenges.

Maria Forss: Thank you, Erik, and thank you, Anders. I will continue today's session by summarizing Q2 2026 and also describe how BICO serves the world's leading pharma and biotech companies with solutions that transform how labs operate, innovate, and solve our customer challenges. Following that, Ewa will then present the group's financial performance. I will also comment on our R&D pipeline with our ongoing product development efforts. Additionally, I will highlight some recent product launches. The session will then conclude before we open up for Q&A about the financial results. In the quarter, we saw a continued good sales momentum, navigating in a dynamic market still affected by geopolitical uncertainty. We are gaining confidence in a gradual market recovery, although the academic end markets remain soft due to reduced funding.

Speaker #4: Following that, Eva will then present the group's financial performance. I will also comment on our R&D pipeline and our ongoing product development efforts. Additionally, I will highlight some recent product launches.

Maria Forss: Additionally, I will highlight some recent product launches. The session will then conclude before we open up for Q&A about the financial results. In the quarter, we saw a continued good sales momentum, navigating in a dynamic market still affected by geopolitical uncertainty. We are gaining confidence in a gradual market recovery, although the academic end markets remain soft due to reduced funding.

Speaker #4: The session will then conclude, and before we open up our Q&A about the financial results. In the quarter, we saw continued good sales momentum, navigating in a dynamic market still affected by geopolitical uncertainty.

Speaker #4: But we are gaining confidence in a gradual market recovery, although the academic and markets remain soft due to reduced funding. Sales amounted to SEK 336 million, and organic growth in local currencies was 7%, mainly derived from continued strong bench of instrument and consumable sales, while still experiencing challenges in the project-based business.

Maria Forss: Sales amounted to 336 million SEK, an organic growth in local currencies of 7%, mainly derived from continued strong bench-top instrument and consumable sales, while still experiencing challenges in the project-based business. Due to continued currency headwinds, our total growth was 4% in Q2. We also see an improved profitability in the quarter as commercial and operational excellent activities are paying off, decreasing our overall costs, resulting in an adjusted EBITDA of 20 million SEK or an adjusted EBITDA margin of 6%. Cash flow from operating activities totaled -53 million SEK, which is mainly stemming from changes in net working capital. After the period ended, Scienion, one of our business units, successfully signed long-term supply and license agreements as a prolongation of its ongoing business with one of its current customers. The agreements have a combined contracted value of approximately 50 million EUR over a 10-year term.

Speaker #4: And due to continued currency headwinds, our total growth was 4% in Q2. We also see improved profitability in the quarter, as commercial and operational excellence activities are paying off.

Speaker #4: Decreasing our overall costs, resulting in an adjusted EBITDA of SEK 20 million, or an adjusted EBITDA margin of 6%. Cash flow from operating activities totaled negative SEK 53 million, which is mainly stemming from changes in working capital.

Maria Forss: Cash flow from operating activities totaled -53 million SEK, which is mainly stemming from changes in net working capital. After the period ended, Scienion, one of our business units, successfully signed long-term supply and license agreements as a prolongation of its ongoing business with one of its current customers. The agreements have a combined contracted value of approximately 50 million EUR over a 10-year term.

Speaker #4: After the period ended, Caelians, one of our business units, successfully signed long-term supply and license agreements as a prolongation of its ongoing business with one of its current customers.

Speaker #4: And the agreements have a combined contracted value of approximately 15 million euros over a 10-year term. All numbers presented are in million SEK, unless otherwise stated.

Maria Forss: All numbers presented are in million SEK unless otherwise stated. Before Ewa provides more details on our financial performance, I will present how BICO serves the world's leading pharma and biotech companies with solutions that transform how labs operate and innovate, which is what our vision is about. BICO supports customers to advance science so that therapies can reach patients faster. Our solutions, with predominantly bench-top instruments, enable smarter, faster, and more efficient labs in which we see an underlying strong demand. Pharma and biotech companies all face the same fundamental challenge, long and costly development cycles for new therapies. The development of new therapy often takes more than 10 years and costs between $2 and $4 billion, with a probability of approval after phase I at just 10%.

Speaker #4: Before Eva provides more details on our financial performance, I will present how BICO serves the world's leading pharma and biotech companies with solutions that transform how labs operate and innovate.

Speaker #4: Which is what our vision is about. BICO supports customers to advance science so that therapies can reach patients faster. Our solutions, with a predominantly benchtop suite of instruments, enable smarter, faster, and more efficient labs.

Maria Forss: Our solutions, with predominantly bench-top instruments, enable smarter, faster, and more efficient labs in which we see an underlying strong demand. Pharma and biotech companies all face the same fundamental challenge, long and costly development cycles for new therapies. The development of new therapy often takes more than 10 years and costs between $2 and $4 billion, with a probability of approval after phase I at just 10%.

Speaker #4: In which we see an underlying strong demand. Pharma and biotech companies all face the same fundamental challenge: long and costly development cycles for new therapies.

Speaker #4: And the development of new therapy often takes more than 10 years and costs between $2 and $4 billion US dollars, with a probability of approval after phase 1 at just 10%.

Speaker #4: And to overcome this, our pharma and biotech customers are investing heavily in automation and AI to increase efficiency, speed, and quality, and to bring innovations to market faster and at a lower cost.

Maria Forss: To overcome this, our Big Pharma and biotech customers are investing heavily in automation and AI to increase efficiency, speed, and quality, to bring innovations to market faster and at a lower cost. AI accelerates discovery, then the wet labs become the new bottleneck. Generative models and predictive biology dramatically speed up hypothesis generation, yet wet lab automation and validation, sorry, remains the hard constraint. In fact, more AI-driven candidates mean more experiments, not fewer, intensifying pressure on lab throughput, system uptime, and data reproducibility. This means that wet labs become more critical than obsolete. AI breakthroughs have made wet labs even more central to R&D. The lab is now a biological compute cluster, validating AI predictions, so high throughput automation and trusted data become mission-critical.

Speaker #4: AI accelerates discovery, and then the wet labs become the new bottleneck. Generative models and predictive biology dramatically speed up hypothesis generation, yet wet lab automation and validations remain the hard constraint.

Speaker #4: In fact, more AI-driven candidates mean more experiments, not fewer—intensifying pressure on lab throughput, system uptime, and data reproducibility. This means that wet labs become more critical, not obsolete.

Maria Forss: In fact, more AI-driven candidates mean more experiments, not fewer, intensifying pressure on lab throughput, system uptime, and data reproducibility. This means that wet labs become more critical than obsolete. AI breakthroughs have made wet labs even more central to R&D. The lab is now a biological compute cluster, validating AI predictions, so high throughput automation and trusted data become mission-critical.

Speaker #4: AI breakthroughs have made wet labs even more central to R&D. The lab is now a biological compute cluster, validating AI predictions through high-throughput automation, and trusted data has become mission critical.

Speaker #4: Customers using BICO Laboratory Solutions consistently report measurable gains in productivity and reliability, including reduced handover time, faster turnaround time, and higher instrument utilization. So, to summarize, BICO leads the way in solving the challenges in life science, with speed, accuracy, and efficiency.

Maria Forss: Customers using BICO laboratory solutions consistently report measurable gains in productivity and reliability, including reduced handling time, faster turnaround time, and higher instrument utilization. To summarize, BICO leads the way in solving the challenges in life science with speed, accuracy, and efficiency. All in all, our customers can run their processes faster, improve the quality of the data, and ultimately make better decisions. I will now hand over to Ewa to present the results for the second quarter.

Speaker #4: All in all, our customers can run their processes faster, improve the quality of the data, and ultimately make better decisions. I will now hand over to Eva to present the results for the second quarter.

Speaker #2: Thank you, Maria. I will now give some more details on the numbers presented by Maria. Navigating these dynamic market conditions, savings in Q2 amounted to 336 million, representing organic growth of 7% compared to a weak comparison quarter.

Ewa Linsäter: Thank you, Maria. I will now give some more details to the numbers presented by Maria. Navigating these dynamic market conditions, sales in Q2 amounted to SEK 336 million, representing organic growth of 7% compared to a weak comparison quarter. Due to the continued currency headwinds, our total growth was 4%. As Maria mentioned, the commercial and operation excellence activities are paying off, decreasing our overall costs, leading to an improvement in adjusted EBITDA of 21 percentage points, resulting in an adjusted EBITDA margin of 6%. While the market will experience geopolitical uncertainty, we are gaining confidence in gradual market recovery, although the US academic end markets remain soft due to reduced funding. Sales amounted to SEK 336 million, an organic growth in local currencies of 7%. A continued good momentum with growth in our bench-top instruments business while still experiencing challenges in the project-based business.

Speaker #2: Due to continued currency headwinds, our total growth was 4%. As Maria mentioned, the commercial and operational excellence activities are paying off, decreasing our overall costs and leading to an improvement in adjusted EBITDA of 21 percentage points, resulting in an adjusted EBITDA margin of 6%.

Speaker #2: While the market will experience geopolitical uncertainty, we are gaining confidence in gradual market recovery. Although the US academic market remains soft due to reduced funding.

Ewa Linsäter: While the market will experience geopolitical uncertainty, we are gaining confidence in gradual market recovery, although the US academic end markets remain soft due to reduced funding. Sales amounted to SEK 336 million, an organic growth in local currencies of 7%. A continued good momentum with growth in our bench-top instruments business while still experiencing challenges in the project-based business.

Speaker #2: Sales amounted to $336 million, with organic growth in local currencies of 7%. We saw continued good momentum with growth in our benchtop instruments business, while still experiencing challenges in the project-based business.

Speaker #2: Also, consumables had a nice development during the quarter and grew by 10%. Last year's sales were negatively impacted by a re-estimation of remaining project hours of approximately SEK 40 million, due to the project delays in our integrated lab automation project business.

Ewa Linsäter: Consumables had nice development during the quarter and grew by 10%. Last year's sales were negatively impacted by a re-estimation of remaining project hours of approximately SEK 40 million due to the project delays in our integrated lab automation project business. Excluding this adjustment, organic growth was negative 4%. We see growth year-on-year in Europe and Asia, while North America is declining as expected. The decline in North America is due to continued soft academic funding as well as timing of customer projects within our European-based diagnostic business. While the underlying demand remains within the diagnostic business, the industry continues to experience longer lead times for larger automation investments, extending the uncertainty around sales cycles. The emerging market for integrated lab automation solutions is in a transformation phase where pace of development and the competitive landscape have changed substantially.

Speaker #2: Excluding this adjustment, organic growth was negative 4%. We see growth year-on-year in Europe and Asia, while North America is declining as expected.

Speaker #2: The decline in North America is due to continued soft academic funding, as well as the timing of customer projects within our European-based diagnostic business. While the underlying demand remains within the diagnostic business, the industry continues to experience longer lead times for larger automation investments, extending the uncertainty around sales cycles.

Ewa Linsäter: The decline in North America is due to continued soft academic funding as well as timing of customer projects within our European-based diagnostic business. While the underlying demand remains within the diagnostic business, the industry continues to experience longer lead times for larger automation investments, extending the uncertainty around sales cycles. The emerging market for integrated lab automation solutions is in a transformation phase where pace of development and the competitive landscape have changed substantially.

Speaker #2: The emerging market for integrated lab automation solutions is in a transformation phase, where the pace of development and the competitive landscape have changed substantially. As described in Q1, we see execution challenges in part of our U.S.-based integrated lab automation solution business.

Ewa Linsäter: As described in Q1, we see execution challenges in part of our US-based integrated lab automation solution business. In combination with lower demand as the legacy projects are nearing completion, the US business has been right-sized to align with current staffing requirements. We are now reassessing our position in the market to regain trust and grow the business for integrated lab automation solutions in a sustainable way. We saw substantially improved gross profit margin this quarter from 44% in Q2 last year to 59% this year. Part of the improvement is due to the negative adjustment from updated cost estimation in ongoing projects within the integrated lab automation project business last year. But the improvement in gross margin this year is due to continued favorable product mix and higher share of direct sales. EBITDA amounted to SEK 60 million, with adjusted EBITDA being SEK 20 million.

Speaker #2: In combination with lower demand as the legacy projects are nearing completion, the US business has been right-sized to align with current staffing requirements. We are now reassessing our position in the market to regain trust and grow the business for integrated lab automation solutions in a sustainable way.

Speaker #2: We saw a substantially improved gross profit margin this quarter, from 44% in Q2 last year to 59% this year. Part of the improvement is due to the negative adjustment from updated cost estimation in ongoing projects within the integrated lab automation project business last year.

Ewa Linsäter: We saw substantially improved gross profit margin this quarter from 44% in Q2 last year to 59% this year. Part of the improvement is due to the negative adjustment from updated cost estimation in ongoing projects within the integrated lab automation project business last year. But the improvement in gross margin this year is due to continued favorable product mix and higher share of direct sales. EBITDA amounted to SEK 60 million, with adjusted EBITDA being SEK 20 million.

Speaker #2: The improvement in gross margin this year is due to continued favorable product mix and a higher share of direct sales. EBITDA amounted to SEK 60 million, with adjusted EBITDA being SEK 20 million.

Speaker #2: The difference relates to a restructuring provision of SEK 4.5 million in relation to our US-based project business. Adjusted EBITDA margin improved by 21 percentage points, resulting in an adjusted EBITDA margin of...

Ewa Linsäter: The difference relates to a restructuring provision of SEK 4.5 million in relation to our US-based project business. Adjusted EBITDA margin improved by 21 percentage points, resulting in an adjusted EBITDA margin of 6%. Excluding last year's SEK 40 million adjustment, EBITDA margin improved from -2.6% last year to 6% this year. The improvement was mainly driven by our commercial and operation excellence initiatives, supported by favorable product mix. Operating expenses decreased with 7% year over year. During the quarter, we launched a group-wide program to identify opportunities to improve how we work and further streamline core processes across the group. The program focused on areas with clear potential for standardization, automation, and efficiency gains across the full value chain, primarily related to our ERP systems.

Speaker #2: Excluding last year's SEK 40 million adjustment, EBITDA margin improved from negative 3.6% last year to 6% this year. The improvement was mainly driven by our commercial and operational excellence initiatives, supported by a favorable product mix.

Speaker #2: Operating expenses decreased by 7% year over year. During the quarter, we launched a group-wide program to identify opportunities to improve how we work and further streamline core processes across the group.

Ewa Linsäter: Operating expenses decreased with 7% year over year. During the quarter, we launched a group-wide program to identify opportunities to improve how we work and further streamline core processes across the group. The program focused on areas with clear potential for standardization, automation, and efficiency gains across the full value chain, primarily related to our ERP systems.

Speaker #2: The program focused on areas with clear potential for standardization, automation, and efficiency gains across the full value chain, primarily related to our ERP system.

Speaker #2: The restructuring project launched in Q1 aimed at improving cost efficiency and R&D pipeline execution by consolidating the activities at the site in Lyon to Berlin.

Ewa Linsäter: The restructuring project launched in Q1 aimed at improving cost efficiency and R&D pipeline execution by consolidating the activities in the site in Lyon to Berlin. The project progresses successfully, and the completion of the project is expected this fall. The anticipated annualized savings from the project of SEK 30 million communicated in Q1 remain fully achievable. The effects will start to materialize in the second half of the year. Cash flow from operating activities amounted to -SEK 53 million, impacted by negative net working capital change on SEK 54 million, mainly derived from lower accounts payables and increased accounts receivable, as well as inventory of raw materials. Cash reserves by end of the period were SEK 628 million, of which SEK 57 million were restricted. As mentioned on the previous slide, the effect of changes in working capital amounted to -SEK 54 million compared to the previous quarter.

Speaker #2: The project progresses successfully, and the completion of the project is expected this fall. The anticipated annualized savings from the project of 30 million communicated in Q1 remain fully achievable.

Speaker #2: The effects will start to materialize in the second half of the year. Cash flow from operating activities amounted to negative SEK 53 million, impacted by a negative net working capital change of SEK 54 million, mainly derived from lower accounts payables and increased accounts receivables, as well as inventory of raw materials.

Ewa Linsäter: Cash flow from operating activities amounted to -SEK 53 million, impacted by negative net working capital change on SEK 54 million, mainly derived from lower accounts payables and increased accounts receivable, as well as inventory of raw materials. Cash reserves by end of the period were SEK 628 million, of which SEK 57 million were restricted. As mentioned on the previous slide, the effect of changes in working capital amounted to -SEK 54 million compared to the previous quarter.

Speaker #2: Cash reserves by the end of the period were $628 million, of which $57 million were restricted. As mentioned on the previous slide, the effect of changes in working capital amounted to negative $54 million, compared to the previous quarter.

Speaker #2: Operating receivables increased by SEK 15 million, mainly in relation to accounts receivable. Inventories increased by SEK 6 million, mainly in relation to raw material. Operating liabilities decreased by SEK 33 million, mainly in relation to accounts payable.

Ewa Linsäter: Operating receivables increased by SEK 15 million, mainly in relation to accounts receivable. Inventories increased by SEK 6 million, mainly in relation to raw material. Operating liabilities decreased by SEK 33 million, mainly in relation to accounts payable. In percentage of the last 12 months' sales, net working capital in the quarter corresponded to 10%. Over time, we expect working capital in relation to sales to be in line with industry standard of closer to 20% of sales. I will now hand over to Maria to present the R&D portfolio and some recent product launches.

Speaker #2: As a percentage of the last 12 months' sales, net working capital in the quarter corresponded to 10%. Over time, we expect working capital in relation to sales to be in line with the industry standard of closer to 20% of sales.

Speaker #2: I will now hand over to Maria to present the R&D portfolio and some recent product launches.

Speaker #3: Thank you, Eva. One focus area for growth is continuous product innovation, and we have a solid R&D pipeline and roadmap in place, which is based on the portfolio strategy as part of BICO 2.0.

Maria Forss: Thank you, Ewa. One focus area for growth is continuous product innovation, and we have a solid R&D pipeline and roadmap in place, which is based on the portfolio strategy being part of BICO 2.0. Multiple product launches are planned for this year, and these include both software, instruments, and consumables. The fast development of AI is an opportunity for BICO as AI accelerates discovery and shifts the bottleneck to the wet lab, as described earlier in this call. This is where our automation solutions are at the core. We had two key launches during the quarter, DPure, which automates DNA purification, and yet another AI solution, this time for cell culture workflows.

Speaker #3: Multiple product launches are planned for this year, and these include software, instruments, and consumables. The rapid development of AI is an opportunity for BICO, as AI accelerates discovery and shifts the bottleneck to the wet lab, as I described earlier in this call.

Maria Forss: The fast development of AI is an opportunity for BICO as AI accelerates discovery and shifts the bottleneck to the wet lab, as described earlier in this call. This is where our automation solutions are at the core. We had two key launches during the quarter, DPure, which automates DNA purification, and yet another AI solution, this time for cell culture workflows.

Speaker #3: And this is where our automation solutions are at the core. We had two key launches during the quarter: D.Pure, which automates DNA purification, and yet another AI solution, this time for cell culture workflows.

Speaker #3: Our company Echoes' new Confluence AI turns one of cell culture's most subjective steps into a quantitative, reproducible metric, which we deliver as a licensed software feature to our Rebel and Revolve systems already in the field.

Maria Forss: Our company, Echo's new Confluency AI turns one of cell culture's most subjective steps into a quantitative reproducible metric, which we deliver as a licensed software feature to our Rebel and Revolve systems already in the field. Confluency AI is built directly into our microscopes through our software to detect and calculate the number of cells more reliably. This removes subjectivity and improves decision-making, timing, as well as reproducibility. The other launch this quarter is the DPure G.PURE 2, which automates DNA purification, delivering rapid, reproducible plastic tip-free sample cleanup for seamless NGS library prep workflows. This saves the use of 300,000 pipette tips per year for a mid-size laboratory. It is also 10 times faster, which significantly increases the throughput. Saving 18 minutes per plate means roughly four working weeks of technician time per instrument per year.

Speaker #3: Confluence AI is built directly into our microscopes through our software to detect and calculate the number of cells more reliably. This removes subjectivity and improves decision-making, timing, as well as reproducibility.

Speaker #3: The other launch this quarter is the DPure Gen2, which automates DNA purification, delivering rapid, reproducible plastic T3 sample cleanup for seamless NGS library prep workflows.

Maria Forss: The other launch this quarter is the DPure G.PURE 2, which automates DNA purification, delivering rapid, reproducible plastic tip-free sample cleanup for seamless NGS library prep workflows. This saves the use of 300,000 pipette tips per year for a mid-size laboratory. It is also 10 times faster, which significantly increases the throughput. Saving 18 minutes per plate means roughly four working weeks of technician time per instrument per year.

Speaker #3: And this saves the use of 300,000 pipette tips per year for a mid-sized laboratory. It's also 10 times faster, which significantly increases the throughput.

Speaker #3: And saving 18 minutes per plate means roughly four working weeks of technician time per instrument per year. And these are just two examples of technology and solutions delivering customer value, which are the results of our efforts within R&D.

Maria Forss: These are just two examples of technology and solutions delivering customer value, which are the results of our efforts within R&D. This will be my last quarterly report for BICO Group, and I am proud of what we have accomplished together during my tenure. We have focused on commercializing, consolidating, and professionalizing the group to position the company for long-term success. I now hand over the leadership to Anders Fogelberg, in whom I have great confidence, and I wish every success in the next chapter and look forward to following BICO's continued development as the group enters an exciting new phase. Thank you to our employees, our customers, partners, shareholders, and the board for your support and commitment throughout this journey. This was the final slide before the Q&A. I will hand over to the earnings call host for further instructions.

Speaker #3: This will be my last quarterly report for BICO Group, and I'm proud of what we have accomplished together during my tenure. We have focused on commercializing, consolidating, and professionalizing the group to position the company for long-term success.

Speaker #3: I now hand over the leadership to Anders Vogelberg, in whom I have great confidence. I wish every success in the next chapter and look forward to following BICO's continued development as the group enters an exciting new phase.

Maria Forss: I now hand over the leadership to Anders Fogelberg, in whom I have great confidence, and I wish every success in the next chapter and look forward to following BICO's continued development as the group enters an exciting new phase. Thank you to our employees, our customers, partners, shareholders, and the board for your support and commitment throughout this journey. This was the final slide before the Q&A. I will hand over to the earnings call host for further instructions.

Speaker #3: Thank you to our employees, our customers, partners, shareholders, and the Board for your support and commitment throughout this journey. This was the final slide before the Q&A.

Speaker #3: I will hand over to the earnings call host for further instructions.

Speaker #1: If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad.

Operator 2: If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Ludvig Lundgren from Arctic. Please go ahead.

Operator: If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Ludvig Lundgren from Arctic. Please go ahead.

Speaker #1: The next question comes from Ludwig Lundgren from Arctic. Please go ahead.

Speaker #4: Yes, hi guys, and thank you for taking my questions. I wanted to start off a bit on the license and supply agreement, which I argue deserves a bit more spotlight, given the significant effect it should have on the P&L here in Q3.

Ludvig Lundgren: Yes. Hi, guys, and thank you for taking my questions. I wanted to start off a bit on the license supply agreement, which I argue deserves a bit more spotlight given the significant effect it should have on the P&L here in Q3. Starting off on the license part of it, of almost EUR 11 million, which will be recorded as revenue in Q3 if I understand correctly. I just assume this relates to another company licensing your microdispensing technology in Scienion. Maybe if you can just give some flavor on what type of IP they are licensing and what type of product that this goes into and the end market for that. If you can, yeah, just give some more flavor on that would be nice.

Speaker #4: So, starting off on the license part of it, of almost €11 million, which will be recorded as revenue in Q3, I understand correctly.

Speaker #4: So I just assume this relates to another company licensing your micro-dispensing technology in Siamion. So maybe if you can just give some flavor on what type of IP they're licensing, and what type of product that this goes into, and the end market for that. If you can, yeah, just give some more flavor, that would be nice.

Ludvig Lundgren: I just assume this relates to another company licensing your microdispensing technology in Scienion. Maybe if you can just give some flavor on what type of IP they are licensing and what type of product that this goes into and the end market for that. If you can, yeah, just give some more flavor on that would be nice.

Speaker #2: So, this is with our diagnostic business. So, it's in the technology license that we have with the customer.

Ewa Linsäter: This is with our diagnostic business. It is in a technology license that we have with the customer.

Speaker #4: Okay, thanks. And just on the margin for this license agreement, I suppose this is a bit higher than what you have for the instruments, typically.

Ludvig Lundgren: Okay, thanks. Just on the margin for this license agreement, I suppose this is a bit higher than what you have for the instrument, typically.

Speaker #2: We don't comment on margins for specific products or licenses. I'm sorry for that.

Ewa Linsäter: We do not comment on margins for specific products or licenses. I am sorry for that.

Speaker #4: Okay, fair enough. Then just somewhat of a—because I guess you've had this, this is somewhat of a follow-up license agreement that you have now, and you've had it before, but I guess this spans over many years.

Ludvig Lundgren: Okay, fair enough. Then just somewhat of a because I guess this is somewhat of a follow-up license agreement that you have now, and you have had it before, but I guess this spans over many years. Have we seen this type of negotiation before in the BICO numbers, or was it the last time this was negotiated was before it was even acquired by BICO? I also wonder a bit on the cash flow profile of this. I assume you will not get the full cash flow here in Q3 for the revenue, but, yeah, just how this spans over the next few years would be nice. Some more flavor on that.

Speaker #4: So, have we seen this type of negotiation before in the BICO numbers, or was the last time this was negotiated before it was even acquired by BICO?

Speaker #4: And also, I wonder a bit about the cash flow profile of this. So, I assume you won't get the full cash flow here in Q3 for the revenue, but, yeah, just how this spans over the next few years would be nice to know.

Speaker #4: Yeah, let me add some more flavor to that.

Speaker #3: Thank you, Ludwig, for the question. I will start and answer in terms of what this has been before, and then I'll hand over to Eva to answer about the financial implications, accounting-wise.

Maria Forss: Thank you, Ludvig, for the question. I will start and answer in terms of what this has been before, and then I will hand over to Ewa to answer about the financial implications accounting-wise. This type of agreements, there are two, one license agreement and one supply agreement, is a prolongation of earlier business that we have done with this customer. Given the tenure of these type of contracts, the original contract was something that was signed with the customer and Scienion prior to BICO acquiring Scienion. We have not communicated to the market about these contracts before. It has been a long negotiation with the customer for this prolongation, and given the nature of supply agreement as well as license agreement over a tenure of 10 years, that has some accounting and cash flow implications.

Speaker #3: So, this type of agreement—there are two: one license agreement and one supply agreement—is a prolongation of earlier business that we have done with this customer.

Speaker #3: And given the tenure of these types of contracts, this was— the original contract was something that was signed with the customer and Scienion prior to BICO acquiring Scienion.

Speaker #3: So, we have not communicated to the market about these contracts before, but it's been a long negotiation with the customer for this prolongation.

Maria Forss: We have not communicated to the market about these contracts before. It has been a long negotiation with the customer for this prolongation, and given the nature of supply agreement as well as license agreement over a tenure of 10 years, that has some accounting and cash flow implications. Please, Ewa, if you can give some more flavor on that would be helpful.

Speaker #3: And given the nature of the supply agreement, as well as the license agreement over a tenure of 10 years, that has some accounting and cash flow implications. And please, Eva, if you can give some more flavor on that, that would be helpful.

Maria Forss: Please, Ewa, if you can give some more flavor on that would be helpful.

Speaker #2: So as you can see in the report, for the license, we will take €10.6 million at the point of time in Q3.

Ewa Linsäter: As you can see in the report, for the license, we will take EUR 10.6 million at the point of time in Q3. That is the revenue recognition of the license part that is non-cancellable. According to IFRS, we need to do it at point of time. That means that it will deviate from the cash flow. The cash flow will be invoiced on a yearly basis going forward, but the revenue we need to take at the point of time in Q3.

Speaker #2: So that is the revenue recognition of the license part that is non-cancellable. And according to IFRS, we need to do it at a point in time.

Speaker #2: That means that it will deviate from the cash flow. So the cash flow will be invoiced on a yearly basis going forward, but the revenue we need to take at the point in time in Q3.

Speaker #4: Okay, thank you. Very clear, yeah, yeah. And then just a final one from my side on this matter. So just on the supply part of it—so you take some revenue as well for previous deliveries, if I understand correctly, for the products themselves?

Ludvig Lundgren: Okay. Thank you. Very clear. Yeah. Just a final one from my side on this matter. Just on the supply part of it, you take some revenue as well from previous deliveries, if I understand correctly.

Ewa Linsäter: Yes.

Ludvig Lundgren: For the products themselves.

Ludvig Lundgren: For the products themselves. Do you expect this prolongation or new deal to drive any incremental extra sales for the hardware, or will this just run as it has done before, basically?

Speaker #4: But do you expect this prolongation or new deal to drive any incremental extra sales for the hardware, or will this just run as it has done before, basically?

Ludvig Lundgren: Do you expect this prolongation or new deal to drive any incremental extra sales for the hardware, or will this just run as it has done before, basically?

Maria Forss: The contract is primarily the license and consumable business. However, what sometimes happens when you enter these kind of partnerships, there are additional opportunities, but there is nothing that we can comment on. Of course, that is in our commercial interest to pursue.

Anders Fogelberg: The contract is primarily the license and consumable business. However, what sometimes happens when you enter these kind of partnerships, there are additional opportunities, but there is nothing that we can comment on. Of course, that is in our commercial interest to pursue.

Speaker #3: This contract is primarily for the license and consumables business. However, what sometimes happens when you enter these kinds of partnerships is that there are additional opportunities.

Speaker #3: But there's nothing that we can comment on, but of course, it's in our commercial interest to pursue.

Speaker #4: Okay, thank you. Very clear.

Ludvig Lundgren: Okay. Thank you. Very clear.

Speaker #2: This is something I've had in past years, Ludwig.

Ewa Linsäter: But it is the same business that we have had in past years, Ludvig Lundgren.

Speaker #4: Yeah, okay, great. Thanks. I'll jump back into the queue.

Ludvig Lundgren: Yeah. Okay. Great. Thanks. I will jump back into the queue.

Speaker #2: Thank you.

Ewa Linsäter: Thank you.

Speaker #3: Thank you, Ludwig.

Maria Forss: Thank you, Ludvig.

Speaker #1: The next question comes from Maria Carlson Osipova from DNB Carnegie. Please go ahead.

Operator 2: The next question comes from Maria Karlsson Osipova from DNB Carnegie. Please go ahead.

Operator: The next question comes from Maria Karlsson Osipova from DNB Carnegie. Please go ahead.

Speaker #5: Hi, hello there. Thanks for taking my question. So, I'm going to start with the same topic that you guys started with—the CEO transition.

Maria Karlsson Osipova: Hi. Hello there. Thanks for taking my question. I am going to start with the same topic that you guys started with the CEO transition, and the promoting from the firm is practically as little drama as it can get. Rather than asking actually what is the drama, since there is no drama, I will flip it. Maria, what is the one thing that you would actually expect Anders to change when he takes over the reins? Maybe for Anders also, could you give us a little bit more color on your immediate priorities once you take the lead on 1 September?

Speaker #5: And promoting from the firm is practically as low drama as it can get. So rather than asking, actually, what's the drama—since there is no drama—I'll flip it.

Speaker #5: Maria, what's the one thing that you would actually expect others to change once you take over the reins? And maybe for Anders also, could you give us a little bit more color on your immediate priorities once you take the lead on September 1st?

Speaker #3: Yeah, no, as you say, Maria, there is no drama in this. I was recruited by the board of directors three years ago with the task to focus on commercialization, consolidation, and professionalizing the company. As we have presented in the report today, we have come quite far in that transformation.

Maria Forss: Yeah. As you say, Maria, there is no drama in this. I was recruited by the board of directors 3 years ago with the task of focus on commercialization, consolidation, and professionalizing the company. As we have presented in the report today, we have come quite far in that transformation. I recruited Anders Fogelberg, our Chief Commercial Officer, 6 months into my tenure, and we have worked closely the past 2 years together with the rest of the executive team. So together with the board, we have agreed that this is a good time for a shift in leadership. Now when we are entering into a new phase, with an additional increased focus on executing the commercialization, continue our engagement with the customers and also ensuring profitable, sustainable growth. So, Anders, in terms of your focus and any comments from you, please.

Speaker #3: And I recruited Anders Fogel as our Chief Commercial Officer six months into my tenure, and we have worked closely the past two years together with the rest of the executive team.

Speaker #3: So together with the board, we have agreed that this is a good time for a shift in leadership. Now, when we're entering into a new phase, with an additional increased focus on executing the commercialization, continuing our engagement with the customers, and also ensuring profitable, sustainable growth.

Maria Forss: So together with the board, we have agreed that this is a good time for a shift in leadership. Now when we are entering into a new phase, with an additional increased focus on executing the commercialization, continue our engagement with the customers and also ensuring profitable, sustainable growth. So, Anders, in terms of your focus and any comments from you, please.

Speaker #3: So, Anders, in terms of your focus—any comments from you, please?

Speaker #5: Absolutely. Thank you for the question. And of course, I've been with BICO for these two years and with Maria, so in some ways, I continue what I've done, which is support the global customer base.

Anders Fogelberg: Absolutely. Thank you for the question. I have been with BICO for these 2 years and with Maria, so in some ways, I continue what I have done, which is support the global customer base, building a commercial engine, and strengthening the market presence. The next few months, me and my executive management team, we will look at the business and might come back with additional things or insights. When I first started in November, commercial engine, operational efficiency, and profitable growth.

Speaker #5: Building a commercial engine and strengthening the market presence. But of course, over the next few months, my executive management team, the board, and I will look at the business and might come back with additional tips or insights about how, when I thought at first.

Speaker #5: Member, commercial engine operational efficiency, and to profitable growth.

Speaker #3: And I will remain an advisor for sure, to ensure that we have a smooth transition and a successful handover to Anders. But of course, Anders knows the customers, knows the market, so there's no drama or big deal in this.

Maria Forss: I will remain advisor for sure, to ensure that we have a smooth transition and handover to Anders. Anders knows the customer, knows market, so there is no drama or big deal in this. I really hope that we will have good success moving forward as well, and I am sure that will be the case.

Speaker #3: And I'm confident that we'll have good success moving forward as well, and I'm sure that will be the case.

Speaker #5: All right, thank you so much for the comments there. And now, a little bit on the numbers. The instrument picture is a bit mixed.

Maria Karlsson Osipova: All right. Thank you so much for the comments there. Now a little bit on the numbers. The instrument picture is a bit mixed. We have seen some organic growth now, but instruments in total declined. However, you do mention that the benchtop instruments are going well, and they are staying strong. Could you maybe quantify a little bit on the split between these benchtop instruments and then maybe larger ones that you have? Maybe describe some trends that support your comment that you are gaining confidence in the market recovery?

Speaker #5: I mean, we've seen some organic growth now, but instruments in total declined. However, you do mention that the desktop instruments are going well, and they're staying strong.

Speaker #5: Could you maybe quantify a little bit on the split between these benchtop instruments and maybe larger ones that you have? And maybe describe some trends that support your comment that you're gaining confidence in the market recovery?

Speaker #3: I think, overall, Maria, if we look at our peers who are operating in the same market as us, we see the same type of trends.

Maria Forss: I think overall, Maria, if we look at our peers who are operating in the same market as us, we see the same type of trends in the quarter as everyone else is doing, and I will come to the instrument shortly. First of all, both consumable, which is increasing by 10%, also see a slight increase in service. That is also seen by our peers. When it comes to instrument sales, despite the softness in academia, our benchtop instruments are going really well in several of our business units, which is really pleasing to see. When it comes to the instrument decline in the quarter, that is due to the project-based business. That is the reason for the decline. So that has nothing to do with the benchtop industry part of our results.

Speaker #3: In the quarter, several milestones are due, and I'll come to the instrument shortly. But first of all, both consumables, which are increasing by 10%, and we also see a slight increase in service.

Speaker #3: That's also seen by our peers. When it comes to instrument sales, despite the softness in academia, our benchtop instruments are going really, really well in several of our business units, which is really pleasing to see.

Maria Forss: When it comes to instrument sales, despite the softness in academia, our benchtop instruments are going really well in several of our business units, which is really pleasing to see. When it comes to the instrument decline in the quarter, that is due to the project-based business. That is the reason for the decline. So that has nothing to do with the benchtop industry part of our results.

Speaker #3: When it comes to the instrument decline in the quarter, that's due to the project-based business. That's the reason for the decline. So, that has nothing to do with the benchtop industry part of our results.

Speaker #3: So that's expected, given the lumpiness that you see when you start new projects. There will always be big instrument sales, and then you get a peak in those quarters where big new projects start.

Maria Forss: So that's expected given how lumpiness that you see when you start new projects. Then there will always be big instrument sales, and then you get a peak in those quarter where big new project starts. So that's the reason. Anders, you want to comment anything further?

Speaker #3: So that's the reason. Anders, do you want to comment further?

Speaker #5: I think, as you said, Maria, we see what our peers are seeing. And there is some improvement, and everyone sees that the specialized instruments are being sought after.

Anders Fogelberg: I think, as you said, Maria, we see what our peers are seeing, and there is some improvement. Everyone sees that the specialized instruments are being sought after. Instruments that are more commodities might not have the same demand because the funding situation primarily in the US, and we see that dynamics play out in our industry, in our market as well.

Speaker #5: Instruments that are more like commodities might not have the same demand because of the funding situation, primarily in the US. And we see those dynamics play out in our industry.

Speaker #5: In our market as well. Thank you for the comments there, as well. And to finish off my brief section here, a short comment maybe on capital allocation.

Maria Karlsson Osipova: Yeah. All right. Thank you for the comments there as well. To finish off my short part here, a short comment maybe on capital allocation. You've mentioned this in Q1, if I'm not mistaken. Is there any short follow-up you can give us on those dialogues, for instance, bolt-on acquisitions or something that you referenced in Q1?

Speaker #5: You've mentioned this in Q1, if I'm not mistaken. Is there any short follow-up you can give us on those dialogues? For instance, with bolt-on acquisitions or something that you referenced in Q1?

Speaker #3: Thank you, Maria, for that question. I mean, of course, we're quite happy that we now have a balance sheet in order. And we brought in new capital in Q1, which is a good foundation for continued both organic and potential inorganic growth.

Erik Gatenholm: Thank you, Maria, for that question. Of course, we're quite happy that we now have a balance sheet in order, and we brought in new capital in Q1, which is a good foundation for continued both organic and potential inorganic growth. As we have marked it before, smaller bolt-on acquisitions could be opportunities, but also, we are increasing our collaborations, such as the one we have with Sartorius, and looking for different collaboration partners. So it's a mix of ensuring that we can continue to invest with R&D, continue to explore strategic and collaborations, as well as looking at potential strategic fit, smaller bolt-on acquisitions.

Ewa Linsäter: Thank you, Maria, for that question. Of course, we're quite happy that we now have a balance sheet in order, and we brought in new capital in Q1, which is a good foundation for continued both organic and potential inorganic growth.

Ewa Linsäter: As we have marked it before, smaller bolt-on acquisitions could be opportunities, but also, we are increasing our collaborations, such as the one we have with Sartorius, and looking for different collaboration partners. So it's a mix of ensuring that we can continue to invest with R&D, continue to explore strategic and collaborations, as well as looking at potential strategic fit, smaller bolt-on acquisitions.

Speaker #3: As we have remarked before, smaller bolt-on acquisitions could be opportunities, but also we are increasing our collaborations, such as the one we have with Sartorius, and looking for different collaboration partners.

Speaker #3: So it's a mix of ensuring that we can continue to invest in R&D, continue to explore strategic collaborations, as well as looking at potential strategic fit, smaller bolt-on acquisitions.

Speaker #5: Yeah, thanks. That will be all from me. I'll get back in the line. Thanks.

Maria Karlsson Osipova: Yeah, thanks. That will be all from me. I will get back into the line. Thanks.

Speaker #3: Thank you, Maria.

Maria Forss: Thank you, Maria.

Speaker #1: The next question comes from Philip Einerson from RedEye. Please go ahead.

Operator 2: The next question comes from Filip Wiberg from Redeye. Please go ahead.

Operator: The next question comes from Filip Wiberg from Redeye. Please go ahead.

Speaker #4: Hi everybody. So, my question is actually on the sort of bio-serials side, to start off. And I know we have discussed previously the legacy projects.

Filip Wiberg: Hi, everybody. My question is actually on the Biosero side to start off. I know we have discussed previously of the legacy projects within Biosero. My question is, maybe if you could provide just some guidance of some sort of the duration expected of these legacy projects and what the reasonable expectation would be for how long it can continue to provide headwind. Thank you.

Filip Einarsson: Hi, everybody. My question is actually on the Biosero side to start off. I know we have discussed previously of the legacy projects within Biosero. My question is, maybe if you could provide just some guidance of some sort of the duration expected of these legacy projects and what the reasonable expectation would be for how long it can continue to provide headwind. Thank you.

Speaker #4: Within bioserial, and so my question is maybe if you could provide just some guidance of some sort of the duration, expected of these legacy projects, and what the reasonable expectation would be for how long it can continue to provide headwind.

Speaker #4: Thank you.

Speaker #5: Yeah, thank you. The legacy projects are something we focus on quite a lot. And if you look at the lab automation space and what we are achieving here, it's a huge project—often custom-made hardware, custom-made software solutions in an industry that does not really have standards yet.

Anders Fogelberg: Yeah. Thank you. The legacy projects is something we focus on quite a lot. If you look at the lab automation space and what we are achieving here, it is huge projects, often custom-made hardware, custom-made software solutions in an industry that do not really have standards yet in place. It is quite groundbreaking. We are working with scientists at Big Pharma to set this up in a good way, and it is an entrepreneurial work. As we have communicated many times, some of these bigger projects take longer than anticipated, and that is something we face. That is something many of our competitors face as well. Our main priority is to make the customer satisfied with the solution. That is priority number one. We are working very hard and close with these customers to make that happen.

Speaker #5: In place, and it's quite groundbreaking. We're working with scientists at big pharma to set this up in a good way, and it's entrepreneurial work.

Speaker #5: And as we have communicated many times, some of these bigger projects take longer than anticipated. That's something we face, and it's something many of our competitors face as well.

Anders Fogelberg: As we have communicated many times, some of these bigger projects take longer than anticipated, and that is something we face. That is something many of our competitors face as well. Our main priority is to make the customer satisfied with the solution. That is priority number one. We are working very hard and close with these customers to make that happen.

Speaker #5: And our main priority is to make the customer satisfied with the solution. That is priority number one. We are working very hard and closely with these customers to make that happen.

Speaker #5: And at the same time, as we said in the quarterly report, we are reassessing the space. What does this mean for us?

Anders Fogelberg: At the same time, as we said in the quarter report, we are reassessing this space. What does this mean for us? How can we scale this in a good way? How should we be positioned in lab automation to have a sustainable, profitable growth? This is something we are looking at. At the same time, we do our utmost to make our customers happy with what we deliver.

Speaker #5: How can we scale this in a good way? And how should we be positioned in lab automation to have sustainable, profitable growth? This is something we're looking at.

Speaker #5: At the same time, we do our utmost to make our customers happy with what we deliver.

Speaker #4: Okay, and maybe then a short follow-up for that, if I may.

Filip Wiberg: Okay. Maybe a short follow-up for that, if I may.

Filip Einarsson: Okay. Maybe a short follow-up for that, if I may.

Speaker #3: Can you add there? I think it's important just to distinguish—we talk about lab automation overall, and we do lab automation in most of our companies.

Maria Forss: Yeah. I think it is important just to distinguish. We talk about lab automation overall, and we do lab automation in most of our companies. What is under SCI-SQUARED now with Biosero is our lab automation solutions business, which is project-based. We have a lot of lab automated solutions also with our benchtop instruments. We do not just say that lab automation is Biosero, because that is not the case.

Speaker #3: So, what Anders described now with BioSerials is our lab automation solutions business, which is project-based. But we have a lot of lab automated solutions also with our benchtop instruments.

Speaker #3: So we don't just say that lab automation is bioserials, because that's not the case.

Speaker #4: Okay. And so, a short follow-up then from me would be: maybe if you could help us, are there any of these legacy projects that you think might be completed, let's say, during 2026?

Filip Wiberg: Okay. A short follow-up then from me would be, maybe if you could help us, are there any of these legacy projects that you maybe think will be completed, let's say, during 2026? Will this be a fading headwind or anything on that?

Filip Einarsson: Okay. A short follow-up then from me would be, maybe if you could help us, are there any of these legacy projects that you maybe think will be completed, let's say, during 2026? Will this be a fading headwind or anything on that?

Speaker #4: And will this be sort of a fading headwind, or anything on that?

Speaker #5: Yes, we have completed several of these projects in 2025. We had dozens of them completed, in fact, in Q4 2025. If you look at 2026, yes, we have completed some.

Anders Fogelberg: Yes. We have completed several of these projects in 2025. We had dozens of them completed, in fact, in Q4 2025. If you look at 2026, yes, we have completed some. We will complete a few more of them. When you have this business, you have this building phase. When you build it at the factory, you have the site at the pharma site. Then when it gets operational, there is, of course, the service and the aftermarket component when you work with the scientists day to day. So in a way, the projects, yes, they get built, they get completed, but in a way, they were years afterward as partners to these customers.

Speaker #5: We will complete a few more of them. And when... This business, you have the building phase when you build it at the factory. You have the site.

Speaker #5: At the pharma site, and then when it gets operational, there is, of course, an aftermarket component. When you work with the scientists on a day-to-day basis—so, in a way, the projects, yes, they get built, they get completed, but in a way, they...

Speaker #5: Years afterward, as partners to these customers.

Speaker #4: Okay, that's clear. Thanks. I have one more. So, would you say that Q2's product mix and sort of share of direct sales would be a fair proxy to extrapolate for the second half of the year?

Filip Wiberg: Okay. That is clear. Thanks. I have one more. Would you say that Q2's product mix and share of direct sales to be a fair proxy to extrapolate for the second half of the year?

Filip Einarsson: Okay. That is clear. Thanks. I have one more. Would you say that Q2's product mix and share of direct sales to be a fair proxy to extrapolate for the second half of the year?

Speaker #2: We cannot guide you on the forward-looking numbers. But for Q1 and Q2, we saw the desktop instruments growing.

Maria Forss: We cannot guide you on the forward-looking numbers. For Q1 and Q2, we saw the benchtop instruments, the growing.

Speaker #4: So you wouldn't say that, sorry.

Filip Wiberg: You wouldn't say that. Sorry.

Filip Einarsson: You wouldn't say that. Sorry.

Speaker #3: No, please, Philip, go.

Maria Forss: Please, Filip, go on.

Speaker #4: No, so what I'm really after is whether you would say that Q2 is sort of an outlier quarter, or if this is something we can extrapolate?

Filip Wiberg: No. What I'm out for is more in terms of, would you say that Q2 is an outlier quarter, or is this something we can extrapolate in those relating to that?

Filip Einarsson: No. What I'm out for is more in terms of, would you say that Q2 is an outlier quarter, or is this something we can extrapolate in those relating to that?

Speaker #4: In those related to.

Speaker #3: We're not guiding for the future, but as we have reported all the years, our business is quite seasonal, where usually the first half of the year is slower than the second half due to how budgets are put into our customers' pockets.

Maria Forss: We're not guiding for the future, but as we have reported all the years

Maria Forss: We're not guiding for the future, but as we have reported all the years. Our business is quite seasonal, where usually the H1 of the year is slower than the H2 due to how budgets are put into our customers' pockets.

Maria Forss: Our business is quite seasonal, where usually the H1 of the year is slower than the H2 due to how budgets are put into our customers' pockets.

Speaker #4: Okay, thank you.

Filip Wiberg: Okay. Thank you.

Filip Einarsson: Okay. Thank you.

Speaker #1: The next question comes from Ludwig Lundgren from Arctic. Please go ahead.

Operator 2: The next question comes from Ludvig Lundgren from Arctic. Please go ahead.

Operator: The next question comes from Ludvig Lundgren from Arctic. Please go ahead.

Speaker #5: Yes, hi. Just a few follow-ups from my side. First, regarding the academic and market segment, which you say is still a bit slow.

Ludvig Lundgren: Yes. Hi. Just a few follow-ups from my side. First, just on the academic end market, which you say is still a bit slow. However, I have heard from some peers at least that it seems to turnaround now as budgets are not down that much, or not at all, actually, on the NIH side. Just some comments on that would be nice.

Speaker #5: However, I've heard from some peers, at least, that it seems to be turning around now, as budgets are not down that much, or not at all actually, on the NIH side.

Speaker #5: So just some comments on that would be nice. If you look at the NIH funding, which is very important for academic projects in the US, the way that they fund and the way that they pay this—

Anders Fogelberg: If you look at the NIH funding, which is very important for the academic projects in the US, the way that they fund and the way that they pay this funding is a bit different. They pay for longer time periods. They incentivize longer projects, and there are fewer project starts. If you look at their project lists, we had some delays when there was, in Washington, DC, they had a standstill, so there were delays of payment. There are fewer starts, which means that those that sell commodities to the academic segment, they will struggle more than those that sell niche products. Because commodities, that is what you normally buy when you start up a lab and you start something, whereas the niche products, you buy later on in the project.

Speaker #5: It's a bit different. They pay for longer time periods and incentivize longer projects, and there are fewer project starts. If you look at their project lists, we have seen some delays. For example, in Washington, D.C., they had a standstill, so there was a delay in payment.

Speaker #5: Then there are fewer starts, which means that those who sell commodities to the academic segment will struggle more than those who sell niche products.

Anders Fogelberg: There are fewer starts, which means that those that sell commodities to the academic segment, they will struggle more than those that sell niche products. Because commodities, that is what you normally buy when you start up a lab and you start something, whereas the niche products, you buy later on in the project. If you look at our portfolio, we as everyone else, we are facing challenges when it comes to commodity products.

Speaker #5: Because commodities—that's what you normally buy when you start up a lab and you start something. Whereas the niche products, you buy later on in the projects.

Speaker #5: So, if you look at our portfolio, we, like everyone else, are facing challenges when it comes to commodity products. Okay, thanks. Very clear.

Anders Fogelberg: If you look at our portfolio, we as everyone else, we are facing challenges when it comes to commodity products.

Ludvig Lundgren: Okay, thanks. Very clear. Just a final one, a bit of a follow-up to the licensing supply agreement question before. Are there any similar type of licensing deals that you have in Scienion that could be renegotiated this way? Or was this like a bit of a one-off when it comes to size and so on?

Speaker #5: And then, just a final one—a bit of a follow-up to the licensing supplies agreement question from before. Are there any similar types of licensing deals that you have insight on that could be renegotiated in this way?

Speaker #5: Or was this a bit of a one-off when it comes to, yeah, size and so on? Of course, we cannot give guidance on future opportunities.

Anders Fogelberg: Of course, we cannot give guidance on future opportunities. But it is not a very common setup for us to go after these kind of license agreements. In this case, we have worked with them for several years before, and we have renegotiated our contracts for several reasons, and we are happy to have this continued trust from this customer. But it is not a core offering. It is not the core strategy to go after these kind of contracts.

Speaker #5: But it's not a very common setup for us to go after these kinds of license agreements. And in this case, we have worked with them for several years.

Speaker #5: Before, and we've renegotiated our contracts for several reasons, and we are happy to have this continued trust from this customer. But it's not a core offering.

Speaker #5: It's not the core strategy to go after these kinds of contracts. Okay, understood. Thanks a lot. That was all my questions.

Ludvig Lundgren: Okay. Understood. Thanks a lot. That was all my questions.

Speaker #1: There are no more questions at this time, so I will hand the conference back to the speakers for any closing comments.

Operator 2: There are no more questions at this time. I hand the conference back to the speakers for any closing comments.

Operator: There are no more questions at this time. I hand the conference back to the speakers for any closing comments.

Speaker #3: Thank you for all the questions received. And thank you for your continued interest in the group. And together with Eva, Anders, and Erik, I wish you a great Wednesday.

Maria Forss: Thank you for all the questions received, and thank you for your continued interest in our group. Together with Ewa, Anders, and Erik, I wish you a great Wednesday.

Operator 2: The host has ended this call. Goodbye.

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