Q2 2026 SKAN Group AG Earnings Call

August 18, 2026

Operator 2: Ladies and gentlemen, welcome to the SKAN Group publication of half-year results 2026 conference call. I am Moritz, the conference call operator. I would like to remind you that all participants will be in a listen-only mode and the conference is being recorded. The presentation will be followed by a question and answer session. You can register for questions at any time by pressing star and 1 on your telephone. Webcast viewers may submit their questions via the relative field. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Jonas Greutert, CEO. Please go ahead, sir.

Operator: Ladies and gentlemen, welcome to the SKAN Group publication of half-year results 2026 conference call. I am Moritz, the conference call operator. I would like to remind you that all participants will be in a listen-only mode and the conference is being recorded. The presentation will be followed by a question and answer session. You can register for questions at any time by pressing star and 1 on your telephone. Webcast viewers may submit their questions via the relative field. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Jonas Greutert, CEO. Please go ahead, sir.

Speaker #1: Ladies and gentlemen, welcome to the SKAN Group publication of Half Year Results 2026 conference call. I am Moritz Socorro, your call operator. I would like to remind you that all participants will be in listen-only mode and that the conference is being recorded.

Speaker #1: The presentation will be followed by a question and answer session. You can register for questions at any time by pressing star one on your telephone.

Speaker #1: Webcast viewers may submit their questions via the relevant field. For operator assistance, please press star and 0. The conference must not be recorded for publication or broadcast.

Speaker #1: At this time, it's my pleasure to hand over to Jonas Greutert, CEO. Please go ahead, sir.

Speaker #2: Thank you. Good afternoon, everyone. Thank you for joining today's conference call. This morning, we published our half-year 2026 results. Joining me today are our CFO, Burin Maray, and our Investor Relations Manager, Thomas Balmer.

Jonas Greutert: Thank you. Good afternoon, everyone. Thank you for joining today's conference call. This morning, we published our H1 2026 results. Joining with me today is our CFO, Burim Maraj, and our Investor Relations Manager, Thomas Balmer. Together, we will walk you through the key highlights of the period before opening the call for questions. The beginning of the talk, let me briefly walk you through the agenda today. I will begin with an overview of H1, followed by an update on our strategic progress. Burim will then discuss the financial results in more detail. I will conclude with our outlook, and then we will be happy to take your questions. Let me highlight a few key achievements from H1. We delivered strong growth and improved all key financial metrics compared to the previous year.

Speaker #2: Together, we will walk you through the key highlights of the period before opening the call for questions. Good. We'll begin in the document. Let me briefly walk you through the agenda for today.

Speaker #2: I will begin with an overview of the first half, followed by an update on our strategic progress. Burin will then discuss the financial results in more detail.

Speaker #2: I will conclude with our outlook, and then we will be happy to take your questions. Let me highlight a few key achievements from the first half.

Speaker #2: We delivered strong growth and improved all key financial metrics compared to the previous year. Order intake increased by 16.3% to CHF 247.6 million. Market momentum improved particularly in the US, while demand in Europe remains solid.

Jonas Greutert: Order intake increased by 16.3% to CHF 247.6 million. Market momentum improved, particularly in the US, while demand in Europe remained solid. Our sales teams did an excellent job in winning several large and complex projects. In addition, we successfully converted a number of engineering contracts into orders for complete systems. As a result, our order backlog increased by 27.8% to CHF 442 million. The backlog includes several major projects extending into 2028 and provides good visibility for the coming years. Net sales grew by 22.2% to CHF 165.5 million or 24% at constant currencies. Growth was supported by both our existing businesses and acquisitions completed last year. Profitability improved significantly. Project execution was stronger than in the prior year. The contribution from Services & Consumables increased, and our efficiency measure delivered first results.

Speaker #2: Our sales teams did an excellent job in winning several large and complex projects. In addition, we successfully converted a number of engineering contracts into orders for complete systems.

Speaker #2: As a result, our order backlog increased by 27.8% to CHF 442 million. The backlog includes several major projects extending into 2028 and provides good visibility for the coming years.

Speaker #2: Net sales grew by 22.2% to CHF 165.5 million, or 24% at constant currencies. Growth was supported by both our existing businesses and acquisitions completed last year.

Speaker #2: Profitability improved significantly. Project execution was stronger than in the prior year, the contribution from service and consumables increased, and our efficiency measures delivered first results.

Speaker #2: As a result, EBITDA increased to CHF 50.3 million, while net profit reached CHF 5.4 million. Overall, we are pleased with the first half performance. The strong order intake, growing backlog, and improved profitability give us confidence in achieving our full-year targets.

Jonas Greutert: As a result, EBITDA increased to CHF 50.3 million, while net profit reached CHF 5.4 million. Overall, we are pleased with the H1 performance. The strong order intake, growing backlog, and improved profitability gives us confidence in achieving our full-year targets. Looking at our segments, both businesses contributed positively to the H1 performance. In equipment and solutions, demand remained solid, particularly for large and complex projects. Customers continue to invest in new production capacity for oncology drugs and increasingly for biosimilars. We also saw very strong interest in our E-beam technology. In Services & Consumables, growth was even stronger. The business benefited from healthy organic growth, contributions from acquisitions, and the continued expansion of our service offering. As a result, the service now accounts for almost 40% of group net sales and continues to make an important contribution to our profitability.

Speaker #2: Looking at our segments, both businesses contributed positively to the first-half performance. In Equipment and Solutions, demand remained solid, particularly for large and complex projects.

Speaker #2: Customers continue to invest in new production capacity for oncology drugs, and increasingly for biosimilars. We also saw very strong interest in our eBIM technology.

Speaker #2: In service and consumables, growth was even stronger. The business benefited from healthy organic growth, contributions from acquisitions, and the continued expansion of our service offering.

Speaker #2: As a result, the service now accounts for almost 40% of group net sales and continues to make an important contribution to our profitability. Together, this development demonstrates the benefits of our increasingly balanced business model and supports our long-term growth and margin ambitions.

Jonas Greutert: Together, these developments demonstrate the benefits of our increasingly balanced business model and support our long-term growth and margin ambitions. Let me briefly update you on our strategic progress. We continue to execute on the four priorities we presented at our Capital Markets Day last year. First, we strengthened our market leadership by winning most of the larger fill-finish line projects in the US market. Second, we continue to expand our addressable market through the development of our next-generation E-beam solution. In the third pillar, we made strong progress in Services & Consumables. The share of the group net sales increased to 39% there. As a highlight, we secured several multi-year service contracts, which is great to see our progress there. We also continue preparations for the launch of our Pre-Approved Services offering.

Speaker #2: Let me briefly update you on our strategic progress. We continue to execute on the four priorities we presented at our Capital Market Day last year.

Speaker #2: First, we strengthened our market leadership by winning most of the larger fill-finish line projects in the U.S. market. Second, we continue to expand our addressable market through the development of our next-generation eBIM solution.

Speaker #2: And in the third pillar, we made strong progress in service and consumables. The share of the group net sales increased to 39% there. As a highlight, we secured several multi-year service contracts, which is great to see—our progress there.

Speaker #2: We also continue the preparations for the launch of our pre-approved service offering. And finally, in the fourth pillar, we delivered our first digital twin projects, supporting customers in improving equipment performance and productivity.

Jonas Greutert: Finally, in the fourth pillar, we delivered first digital twin projects, supporting customers in improving equipment performance and productivity. This is an additional differentiation layer in our sales process. Overall, we are executing consistently against our strategy and are making tangible progress towards our long-term objective of growth, recurring revenues, and improved profitability. Let me now turn the call over to Burim to cover the financial results. I will come back with some additional commentary on the outlook later.

Speaker #2: This is an additional differentiation layer in our sales process. Overall, we are executing consistently against our strategy and are making tangible progress towards our long-term objectives of growth, recurring revenues, and improved profitability.

Speaker #2: Let me now turn the call over to Burin to cover the financial results. I will come back with some additional commentary on the outlook later.

Speaker #3: Thank you, Jonas. And hello, everyone, also from my side to this half-year financial results presentation. So let me start with the order intake and first briefly put the market environment into context.

Burim Maraj: Thank you, Jonas, and hello, everyone, also from my side to this half-year financial results presentation. Let me start with the order intake and first briefly put the market environment into the context. The market activity was healthy in H1, with particularly good momentum in the US, supported by investments in new production capacity, the regionalization of critical supply chains, and ongoing onshoring initiatives. Europe also showed a solid demand environment. At the same time, the market continues to normalize after the exceptional growth phase during COVID. Customers are more selective, decision cycles remain longer, and competition has intensified. Against this backdrop, we increased our order intake from CHF 213 million to CHF 247.6 million, which is up 16.3% year-on-year. We consider this as a good result, which demonstrates solid demand for our solution despite a more selective investment environment.

Speaker #3: So, the half with particularly good momentum in the US, supported by investments in new production capacity, the regionalization of critical supply chains, and ongoing onshoring initiatives. Europe also showed a solid demand environment.

Speaker #3: At the same time, the market continues to normalize after the exceptional growth phase during COVID. So, customers are more selective, decision cycles remain longer, and competition has intensified.

Speaker #3: So, against this backdrop, we increased our order intake from 213 million to 247.6 million, which is up 16.3% year on year. We consider this a good result, which demonstrates solid demand for our solution despite a more selective investment environment.

Speaker #3: The largest contribution to growth came from service and consumers, as you see, which accounted for around 30 million, or almost 80% of the increase at constant currency rates.

Burim Maraj: The largest contribution to growth came from Services & Consumables, as you see, which accounted for around CHF 30 million or almost 80% of the increase at constant currency rates. Equipment and solutions contributed a further CHF 8 million to the growth. When we look at the book-to-bill ratio, it remains at 1.5 times after 1.6 times in the prior year period. The key message is that even in a more normalized market, order intake continues to run ahead of net sales. Together with a healthy order pipeline, this gives us confidence in our growth trajectory. With that overall picture in mind, let me turn to the regional developments. Starting with Europe, our largest market, order intake increased from CHF 125.3 million to CHF 138.6 million, or by 10.7%. This confirms that the region continues to provide a stable base for the group.

Speaker #3: Equipment and solutions contributed a further €8 million to the growth. When we look at the book-to-bill ratio, it remained at 1.5 times, after 1.6 times in the prior-year period.

Speaker #3: So, the key message is that even in a more normalized market, order intake continues to run ahead of net sales. Together with a healthy order pipeline, this gives us confidence in our growth trajectory.

Speaker #3: With that overall picture in mind, let me turn to regional development. Starting with Europe, our largest market, order intake increased from €125.3 million to €138.6 million, or by 10.7%.

Speaker #3: This confirms that the region continues to provide a stable base for the group. The more pronounced development came from the Americas, where order intake rose from $66.1 million to around $100 million, an increase of almost 50%.

Burim Maraj: The more pronounced development came from the Americas, where order intake rose from CHF 66.1 million to around CHF 100 million, an increase of almost 50%. As a result, the region's share of group order intake increased from 31% to around 40%. This brings the Americas back to a level broadly in line with the range we have seen historically. The prior year was subdued, as you all know, mainly because a number of customer decisions took longer to materialize during the H1. Several of those decisions progressed into firm orders. In Asia, order intake declined from CHF 20.8 million to CHF 9.1 million. This fluctuation is largely driven by the timing of larger individual orders and should therefore not be over-interpreted in that point. In summary, Europe remained a stable backbone with a solid increase, while the Americas regained a more normal share of the order mix.

Speaker #3: As a result, the region's share of group order intake increased from 31% to around 40%. This brings the Americas back to a level broadly in line with the range we have seen historically.

Speaker #3: The prior year was subdued, as you all know, mainly because a number of customer decisions took longer to materialize during the first half. During the year, several of those decisions progressed into firm orders.

Speaker #3: In Asia, order intake declined from 20.8 million to 9.1 million. This is a fluctuation, but this fluctuation is largely driven by the timing of larger individual orders and should therefore not be overinterpreted at this point.

Speaker #3: So, in summary, Europe remained a stable backbone with a solid increase, while the Americas regained a more normal share of the order mix. Turning to the net sales...

Burim Maraj: Turning to the net sales. We increased sales from CHF 134.6 million to CHF 164.5 million, representing a growth of 22.2% year-on-year. At the constant exchange rates, growth was 24%, while organic growth reached 13.3%. This growth was broad-based, with Services & Consumables accounting for roughly two-thirds of the group net sales increase, and equipment and solutions also making a meaningful contribution. Of course, the acquired businesses also developed very well and provided an additional contribution to the reported growth. Overall, the increase in net sales was supported by a healthy underlying business across both segments, complemented by the contribution from acquisitions. Importantly, the higher level of net sales was achieved while maintaining a strong order base. As you see, the order backlog increased from CHF 346.1 million at year-end to CHF 442 million or around 28%, which provides us good visibility for the coming periods.

Speaker #3: We increased sales from CHF 135.6 million to CHF 164.5 million, representing growth of 22.2% year on year. At constant exchange rates, growth was 24%, while organic growth reached 13.3%.

Speaker #3: This growth was broad-based, with Services and Consumables accounting for roughly two-thirds of the Group net sales increase, and Equipment and Solutions also making a meaningful contribution.

Speaker #3: Of course, the acquired businesses also developed very well and provided an additional contribution to the reported growth. So, overall, the increase in net sales was supported by a healthy underlying business across both segments, complemented by the contribution from acquisitions.

Speaker #3: Importantly, the higher level of net sales was achieved while maintaining a strong order base. As you see, the order backlog increased from 346.1 million at year-end to 442 million, or around 28%, which provides us with good visibility for the coming periods.

Speaker #3: As you also see within this backlog, approximately $15 million to $20 million remains subject to potential cancellation risk. It's important to understand that this is the same exposure as we have already disclosed at year-end and does not represent a new risk.

Burim Maraj: As you also see within this backlog, approximately CHF 15 to 20 million remains subject to potential cancellation risk. It is important to understand that this is the same exposure as we have already disclosed at year-end and does not represent a new risk. The matter remains currently unsolved and we are closely working constructively with our customer toward a commercially sound, mutually acceptable solution that supports the long-term relationship with our customers. Despite the strong increase in net sales, we enter the H2 with a higher order backlog and good visibility for the coming periods. Now turning to the profitability. EBITDA improved from CHF 0.9 million to CHF 15.3 million, lifting the margin from 0.7% to 9.3%. At group level, you see on the right side both segments, equipment and solutions and Services & Consumables, contributed to this improvement.

Speaker #3: So, the matter remains currently unsolved, and we are closely working constructively with our customer toward a commercially sound, mutually acceptable solution that supports the long-term relationship with our customers.

Speaker #3: So despite the strong increase in net sales, we entered the second half with a higher order backlog and good visibility for the coming periods.

Speaker #3: Now, turning to profitability, EBITDA improved from CHF 0.9 million to CHF 15.3 million, lifting the margin from 0.7% to 9.3%. At group level, you see on the right side, both segments—Equipment Solutions and Service and Consumables—contributed to this improvement.

Speaker #3: In addition, strong revenue conversion, more favorable project progression, and the measures taken to improve the cost base supported the result. On the left side, this is visible in the cost development, and we see the operating expenses increased from CHF 135.7 million to CHF 154.5 million, or by 13.8%, while net sales grew by 24%.

Burim Maraj: In addition, strong revenue conversion, more favorable project progression, and the measures taken to improve the cost base supported the result. On the left side, this is visible in the cost development and we see the operating expenses increased from CHF 135.7 million to CHF 154.5 million, or by 13.8%, while the net sales grew by 24%. The key point here is that the net sales grew materially faster than the cost base, which results in an improved operating leverage at group level. At the same time, we are really clear that this 9.3% EBITDA margin remains below our target range. The progress is, as mentioned, encouraging but there is more work to do with our focus remaining in the second half on execution, product mix, and also cost discipline. With the group level picture established, let me now turn to the segment performance, starting with equipment and solutions.

Speaker #3: So, the key point here is that net sales grew materially faster than the cost base, which results in improved operating leverage at the Group level.

Speaker #3: At the same time, we are really clear that this 9.3% EBITDA margin remains below our target range. The progress is, as mentioned, encouraging, but there is more work to do, with our focus remaining in the second half on execution, product mix, and also cost discipline.

Speaker #3: With the group-level picture established, let me now turn to the segment performance, starting with Equipment and Solution. In that segment, the order intake increased from 160.4 million to 166.4 million.

Burim Maraj: In that segment, the order intake increased from CHF 160.4 million to CHF 166.4 million, or by 3.7%. Compared with the subdued CHF 88 million recorded in H2 2025, this represents a clear step up in the market activity. The Americas contributed meaningfully, as already mentioned, as customer decision progressed after the longer approval cycles seen previously, and in parallel, prior year's loss reservation, as we have announced, and engineering orders continue to convert into equipment orders. When we look at the nature of the orders, the majority were for large and complex customized filling lines, and we saw particularly good demand in high-speed lines featuring with the E-beam technology. This demand was supported by new drug projects, especially in the core field of SKAN, the oncology applications, and increasingly also by biosimilars.

Speaker #3: Or by 3.7%. So compared with the subdued 88 million recorded in H2 2025, this represents a clear step up in the market activity. The Americas contributed meaningful as already mentioned as customer decision progressed after the longer approval cycle seen previously and in parallel prior year slot reservation as we have announced and engineering orders continue to convert into equipment orders.

Speaker #3: When we look at the nature of the orders, the majority were for large and complex, customized filling lines, and we saw particularly good demand in high-speed lines featuring the EBIM technology.

Speaker #3: So, this demand was supported by new drug projects, especially in the core field of SKAN, the oncology applications, and increasingly also by biosimilars. This order development supported an increase in backlog of around 24%, from €293.1 million to €362.5 million, providing a substantial base for future execution.

Burim Maraj: This order development supported an increase in backlog of around 24%, from CHF 293.1 million to CHF 362.5 million, providing a substantial base for future execution. In the middle of the graph, net sales increased, as you see, from CHF 90.7 million to around CHF 100 million, or by 10.2%, supported by less project delays, better execution, and higher share of projects which came in in the value-added or value-intensive phase. This operational improvement also translates, as you see on the right side on the profitability, where the EBITDA moved from -CHF 9.1 million to +CHF 2.3 million, which is an improvement of CHF 11.4 million, and the margin improved from -10% to +2.3%. Equipment and solutions is moving in the right direction, but profitability still has further to go. Turning to the Services & Consumables, a different picture. The segment Services & Consumables continued to develop very well in the first half.

Speaker #3: In the middle, you can see on the graph that net sales increased from CHF 90.7 million to around CHF 100 million, or by 10.2%, supported by fewer project delays, better execution, and a higher share of projects which came in the value-added or value-intensive phase.

Speaker #3: These operational improvements also translate, as you see on the right side, into profitability, where the EBITDA moved from minus CHF 9.1 million to plus CHF 2.3 million, which is an improvement of CHF 11.4 million. The margin improved from minus 10% to plus 2.3%.

Burim Maraj: This operational improvement also translates, as you see on the right side on the profitability, where the EBITDA moved from -CHF 9.1 million to +CHF 2.3 million, which is an improvement of CHF 11.4 million, and the margin improved from -10% to +2.3%. Equipment and solutions is moving in the right direction, but profitability still has further to go. Turning to the Services & Consumables, a different picture. The segment Services & Consumables continued to develop very well in the first half.

Speaker #3: So, equipment and solutions are moving in the right direction, but profitability still has further to go. Turning to the service and consumables, it's a different picture. The segment service and consumables continued to develop very well in the first half, as you see in the order intake, which increased from CHF 52.5 million to CHF 81.2 million, or by almost 55%, with organic growth of almost 27%.

Burim Maraj: As you see, the order intake increased from CHF 52.5 million to CHF 81.2 million, or by almost 55%, with organic growth of almost 27%. The important point is the quality of that growth. The underlying Services & Consumables business remained strong, while the acquired businesses provided an additional contribution and broadened our offering. Growth is therefore being supported by both the existing business and the acquired activities. When we look on the net sales, the same pattern is visible, which increased, or the net sales increased from CHF 43.9 million to CHF 64.6 million, representing a growth of 47.2%, including an almost 15% organic growth. At the same time, the order backlog, as you see, almost doubled from CHF 40 million to around CHF 80 million, supporting activity in the second half. This development increased Services & Consumables share of growth net sales to 39.3%. This is strategically very important.

Speaker #3: The important point is the quality of that growth. So, the underlying service and consumables business remained strong, while the acquired businesses provided an additional contribution and broadened our offering.

Speaker #3: So, growth is therefore being supported by both the existing business and the acquired activities. When we look at net sales, the same pattern is visible.

Burim Maraj: Growth is therefore being supported by both the existing business and the acquired activities. When we look on the net sales, the same pattern is visible, which increased, or the net sales increased from CHF 43.9 million to CHF 64.6 million, representing a growth of 47.2%, including an almost 15% organic growth. At the same time, the order backlog, as you see, almost doubled from CHF 40 million to around CHF 80 million, supporting activity in the second half. This development increased Services & Consumables share of growth net sales to 39.3%. This is strategically very important.

Speaker #3: Which increased or the net sales increased from 43.9 million to 64.6 million representing a growth of 47.2% including an almost 15% organic growth. At the same time, the order backlog as you see almost doubled from 40 million to around 80 million supporting activity into the second half in the second half.

Speaker #3: This development increased the service and consumables share of growth net sales to 31 to 39.3%. This is strategically very important. Over the medium term, we aim to increase the contribution from service and consumables and thereby strengthen the share of recurring business within the group.

Burim Maraj: Over the medium term, we aim to increase the contribution from Services & Consumables, and thereby strengthen the share of recurring business within the group. EBITDA on the right side increased from CHF 10 million to CHF 13 million, or by 29.7%. The margin remained healthy at 20.1%, compared to 22.8% in the prior periods. The softer margin mainly reflects the product mix and a timing effect across parts of the Services & Consumables business. Activities in that segment are aligned with our customers' operating plans, while the related personnel costs are recognized throughout the year. As scheduled customer activities are executed over the remainder of the year, we expect the related revenues to increasingly come through and drive the margin development in H2.

Speaker #3: EBITDA on the right side increased from $10 million to $13 million, or by 29.7%. The margin remained healthy at 20.1%, compared to 22.8% in the prior period.

Speaker #3: The softer margin mainly reflects the product mix and a timing effect across parts of the service and consumables business. So, in other words, activities in that segment are aligned with our customers' operating plans, while the related personnel costs are recognized throughout the year.

Speaker #3: So, as scheduled customer activities are executed over the remainder of the year, we expect the related revenues to increasingly come through and drive the margin development in the second half.

Speaker #3: Overall, the service and consumables segment remains an important contributor to group growth and profitability, and its increasing weight in the group is, as mentioned, strategically relevant.

Burim Maraj: Overall, the segment Services & Consumables remains an important contributor to group growth and profitability, and its increasing weight in the group is, as mentioned, strategically relevant. Now let's have a look on the cash generation. On the left side, the operating cash flow was CHF 16.3 million in H1, supported by the improved operating result. A key structural feature of our business model is customer advance payments, which are an integral part of project financing and remained an important driver of operating cash flow. On the investment side, cash outflows amounted to CHF 13.6 million and primarily reflected continued investments in our Pre-Approved Services offering. Even after these investments, free cash flow remained positive at CHF 2.7 million.

Speaker #3: Now let's have a look at the cash generation. On the left side, the operating cash flow was CHF 16.3 million in the first half, supported by the improved operating result.

Speaker #3: A key structural feature of our business model is customer advance payments, which are an integral part of project financing and remain an important driver of operating cash flow.

Speaker #3: On the investment side, cash outflows amounted to €13.6 million and primarily reflected continued investments in our pre-approved services offering. Even after these investments, free cash flow remained positive at €2.7 million. And when we look at the cash and cash equivalents, which moved from €94.1 million at year-end to €88.5 million at the end of June, the important message here is that customer advances continue to provide structural cash funding, while the working capital remained controlled despite the higher level of activity.

Burim Maraj: When we look at the cash and cash equivalents, which moved from CHF 94.1 million at year-end to CHF 88.5 million at end of June, the important message is here that customer advance continued to provide structural cash funding while the working capital remained controlled despite the higher level of activity. This cash discipline supports a solid financial position, which brings me to the balance sheet. Net debt stood at CHF 42.2 million at the end of June, corresponding to a net debt EBITDA of 0.8 times. This is particularly relevant in the context of the acquisitions completed over recent periods. Despite those investments, leverage remains below one times preserving capacity for operations and selective growth. On the right side, the equity stood at CHF 125.5 million, corresponding to a reported equity ratio of CHF 26.1 million.

Speaker #3: This cash discipline supports a solid financial position, which brings me to the balance sheet. Net debt stood at €42.2 million at the end of June, corresponding to a net debt to EBITDA of 0.8 times.

Speaker #3: This is particularly relevant in the context of the acquisitions completed over recent periods. Despite those investments, large leverage remains below one times, preserving capacity for operations and selective growth.

Speaker #3: On the right side, the equity stood at 125.5 million, corresponding to a reported equity ratio of 26.1%. This figure needs a little bit of context, as it is materially affected by the accounting treatment of the acquisitions-related goodwill.

Burim Maraj: This figure needs a little bit of context as it's materially affected by the accounting treatment of the acquisitions related goodwill. When we look at this KPI on an adjusted base, excluding this effect, the equity ratio would be above 40%. Taken together, the balance sheet remains solid, leverage is controlled, and the group retains adequate financial flexibility. Let me close by summarizing the key message of the financial results from H1. The market remains attractive even as customer are more selective and decision cycles are longer. Our order intake and order pipeline shows that demand for our solution remains healthy. Operationally, we made clear progress in H1, with higher net sales, improved profitability and strong momentum in Services & Consumables. At the same time, our priorities remain clear.

Speaker #3: So, when we look at this KPI on an adjusted basis, excluding this effect, the equity ratio would be above 40%. Taken together, the balance sheet remains solid, leverage is controlled, and the group retains adequate financial flexibility.

Speaker #3: Let me close by summarizing the key messages of the financial results from the first half of the year. The market remains attractive, even as customers are more selective and decision cycles are longer. Our order intake and order pipeline show that demand for our solutions remains healthy. Operationally, we made clear progress in the first half, with higher net sales, improved profitability, and strong momentum in service and consumables. At the same time, our priorities remain clear: drive margin improvement across the business, execute the backlog, and maintain cost and cash discipline.

Burim Maraj: Drive margin improvement across the business, execute the backlog and maintain cost and cash discipline. We have a good basis for H2, and our focus remains firmly on execution. With that, I hand over to Jonas, who will take us through the outlook and our priorities for the remainder of the year and beyond.

Speaker #3: We have a good basis for the second half, and our focus remains firmly on execution. With that, I hand over to Jonas, who will take us through the outlook and our priorities for the remainder of the year and beyond.

Speaker #1: Thank you, Burim. Let me provide an update on the market environment and our outlook. The long-term growth drivers in our industry remain attractive. Demand continues to be supported by the increasing requirements for quality, automation, containment, and regulatory compliance, including the Annex 1 topics.

Jonas Greutert: Thank you, Burim. Let me provide an update on the market environment and our outlook. The long-term growth drivers in our industry remain attractive. The demand continues to be supported by the increasing requirements for quality, for automation, the containment and the regulatory compliance, including the Annex 1 topics. In addition, the growing importance of biologics and antibody-drug conjugates and cell and gene therapies continues to drive investments in advanced aseptic manufacturing solutions. At the same time, the market is evolving. We have political discussions around drug pricing, which continue, and many high revenue biologics will lose exclusivity. There is this patent cliff coming over the coming years. We also see customers becoming more selective in their investment decisions as competition and cost pressure increases across the industry. However, we see all these developments as creating attractive opportunities for SKAN.

Speaker #1: In addition, the growing importance of biologics, antibody-drug conjugates, and cell and gene therapies continues to drive investments in advanced aseptic manufacturing solutions. At the same time, the market is evolving.

Speaker #1: We have political discussions around drug pricing, which continue, and many high-revenue biologics will lose exclusivity. There is this patent cliff coming over the coming years, and we also see customers becoming more selective in their investment decisions as competition and cost pressure increase across the industry.

Speaker #1: However, we see all these developments as creating attractive opportunities for SKAN. In particular, we expect continued investments in new production capacity for both biosimilars and innovative next-generation therapies.

Jonas Greutert: In particular, we expect continued investments in new production capacity for both biosimilars and innovative next generation therapies. We believe SKAN is well-positioned to benefit from these market trends and to continue delivering double-digit growth rates. Our strong market position, technology leadership, and broad portfolio provide a solid foundation for future growth. At the same time, we are strengthening our competitive edge. We continue to advance our innovation projects, we enhance our operational excellence, and expand our sales and service capabilities. In addition, we are establishing a new leadership structure with clear segment accountability. This will further strengthen the execution and increase our customer focus. Looking ahead, we will continue to accelerate the growth of our Services & Consumables business, and at the same time, we place a stronger focus on improving profitability and increasing our EBITDA margin.

Speaker #1: We believe SKAN is well positioned to benefit from these market trends and to continue delivering double-digit growth rates. Our strong market position, technology leadership, and broad portfolio provide a solid foundation for future growth.

Speaker #1: At the same time, we are strengthening our competitive edge. We continue to advance our innovation projects, we enhance our operational excellence, and expand our sales and service capabilities.

Speaker #1: In addition, we are establishing a new leadership structure with clear segment accountability. This will further strengthen execution and increase our customer focus. Looking ahead, we will continue to accelerate the growth of our service and consumables business.

Speaker #1: At the same time, we place a stronger focus on improving profitability and increasing our EBITDA margin. Based on the attractive structural growth drivers, our solid order backlog, and our strong first-half performance, we remain confident for the current year.

Jonas Greutert: Based on the attractive structural growth drivers, our solid order backlog and our strong H1 performance, we remain confident for the current year. With that, we already come to the guidance. We therefore confirm our guidance for 2026 and continue to expect net sales growth in the high teens and an EBITDA margin between 13% and 15%. With that, we come already at the end of our presentation, and we can now go to questions and discussion section, and I hand over to Thomas.

Speaker #1: And with that, we already come to the guidance. We therefore confirm our guidance for 2026 and continue to expect net sales growth in the high teens and an EBITDA margin between 13% and 15%.

Speaker #1: With that, we have already reached the end of our presentation, and we can now move to the questions and discussion section. I will now hand over to Thomas.

Speaker #2: Yes, thank you. We will now move to the Q&A session. First, we will take questions from the telephone conference. The moderator will inform you about what to dial to join the line.

Thomas Balmer: Yes. Thank you. We are going to Q&A. We will first take questions from the telephone conference. The moderator will inform you about what to dial to enter into the line. After the questions from the telephone conference, we will also take questions from the webcast. Participants in the webcast have the Q&A sign on the bottom left-hand side of their screen, and there they can write down their questions, which we will then answer. Please, operator, go on with the telephone questions.

Speaker #2: After the questions from the telephone conference, we will also take questions from the webcast. Participants in the webcast will find the Q&A sign on the bottom left-hand side of their screen.

Speaker #2: And there, they can write down their questions, which we will then answer. So, please, operator, go on with the telephone questions, please.

Speaker #3: Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator 2: Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking a question. Webcast viewers may submit their questions via the relative field. Anyone who has a question may press star and one at this time. One moment for the first question, please. The first question comes from Tanja Hansalik from UBS. Please go ahead.

Operator: Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking a question. Webcast viewers may submit their questions via the relative field. Anyone who has a question may press star and one at this time. One moment for the first question, please. The first question comes from Tanja Hansalik from UBS. Please go ahead.

Speaker #3: You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star then two.

Speaker #3: Participants are requested to use only handsets while asking a question. Webcast viewers may submit their questions via the relevant field. Anyone who has a question may press star and one at this time.

Speaker #3: One moment for the first question, please. And the first question comes from Tanja Hansalik from UBS. Please go ahead.

Speaker #4: Good morning. Can you hear me?

Tanja Hansalik: Good morning. Can you hear me?

Tanya Hansalik: Good morning. Can you hear me?

Speaker #5: Yes.

Thomas Balmer: Yes.

Speaker #4: Okay, great. Thank you. So, I have three questions, please. The first one: on the 2026 guidance, you confirmed today that this requires an H2 acceleration on sales and a margin uplift.

Tanja Hansalik: Okay, great. Thank you. I have three questions, please. The first one, on the 2026 guidance you confirmed today, this requires an H2 acceleration on sales and margin uplift. Can you maybe go through for us the main drivers in the different divisions that will drive this better second half?

Tanya Hansalik: Okay, great. Thank you. I have three questions, please. The first one, on the 2026 guidance you confirmed today, this requires an H2 acceleration on sales and margin uplift. Can you maybe go through for us the main drivers in the different divisions that will drive this better second half?

Speaker #4: Can you maybe go through for us the main drivers in the different divisions that will drive this better second half?

Speaker #5: Well, the main driver is in the project business. As you have seen, we have a strong order backlog, and we have projects that will come into the value-intensive phase, which will drive our net sales contribution or revenue recognition and therefore also drive the margin.

Burim Maraj: Well, the main driver is in the project business. As you have seen, we have a strong order backlog and we have projects that will come in the value intensive phase, which will drive our net sales contribution or revenue recognition and therefore also drive the margin. We have also shown this in the past years that the business driven by our order intake, which comes typically at the end of the year, which drives also a little bit seasonality, will be the impact. We are confident that we will make the second half here in equipment and solutions. For Services & Consumables, as I mentioned, is also second half lasted as customers or operation plan of customers.

Speaker #5: And we have also shown this in the past years, that the business driven by our order intake—which comes typically at the end of the year and also drives a little bit the seasonality—will be the impact. We are confident that we will make the second half of the year in Equipment Solutions.

Speaker #5: And for service and consumers as I mentioned is also second half lasted as customers or operation plan of customers the timing when they set the services to to be provided is this year a little bit in the second half driven and therefore we have also a strong backlog as you have seen double the order backlog the the the backlog and we will execute or perform the service in the second half which again will be will drive the margin improvement.

Burim Maraj: The timing when they set the services to be provided is this year a little bit in the second half driven. Therefore, we have also a strong backlog as you have seen, double the backlog, and we will execute or perform the service in the second half, which again will drive the margin improvement.

Speaker #4: Great, thank you. And the second question is in Service and Consumables. Can you discuss what were the impacts on the H1 margin on an organic basis?

Tanja Hansalik: Great. Thank you. The second question is, in Services & Consumables, can you discuss what were the impacts on the H1 margin on an organic basis? I think taking out Medtronic, you would have had a lower teens margin.

Tanya Hansalik: Great. Thank you. The second question is, in Services & Consumables, can you discuss what were the impacts on the H1 margin on an organic basis? I think taking out Medtronic, you would have had a lower teens margin.

Speaker #4: I think, taking out Medtronic, you would have had a lower-teens margin, which is well below the last five years. So, yeah, you know... yeah, I'll let you go.

Burim Maraj: Yeah

Tanja Hansalik: Which is well below the last five years. So, yeah.

Tanya Hansalik: Which is well below the last five years. So, yeah.

Burim Maraj: Yeah.

Tanja Hansalik: I'll let you go.

Tanya Hansalik: I'll let you go.

Burim Maraj: You have to understand the EBITDA margin of Services & Consumables in the past years. 2024 was driven. We were at 28.9% EBITDA. There was extraordinary impact from Aseptic Technologies, which is not anymore here. Now the contribution from Medtronic, of course, it's a positive impact, but also there, this business has also certain seasonality, as mentioned. Also, the software business will have a positive impact in H2 and improve the margin at levels that we have also seen historically.

Speaker #5: You have to understand yeah you have to understand the EBITDA margin of service and consumables in the past years it was also or 2024 was driven we were at 29 28.9% EBITDA there was a extraordinary impact from a septic technologies which is not anymore here.

Speaker #5: And now the contribution from Medtronic is is of course it's a positive impact but also there that this business has also certain seasonality as mentioned also the software business will have a positive impact in the second half and improve the margin at levels that we have also seen in historically.

Speaker #4: Great, thank you. And the last question is: Can you provide an update on pre-approved services? I understand you said approval is still expected this year. What about commercial revenues?

Tanja Hansalik: Great. Thank you. The last question is, can you provide an update on Pre-Approved Services? I understand you said approval we still expect this year. What about commercial revenues? When do you expect this, and how long will it take to ramp up to your targets for the business?

Tanya Hansalik: Great. Thank you. The last question is, can you provide an update on Pre-Approved Services? I understand you said approval we still expect this year. What about commercial revenues? When do you expect this, and how long will it take to ramp up to your targets for the business?

Speaker #4: When do you expect this, and how long will it take to ramp up to your targets for the business?

Speaker #1: Basically, nothing has changed since the last communication. We are still working towards these approvals, and we already started to do the first production runs—non-GMP production runs—but these were very small revenue contributors, of course. But meaningful business will start next year, and then it will develop over three to four years, and we will see, as communicated.

Burim Maraj: Basically, nothing has changed since the last communication. We are still working through these approvals and we already started to do first production runs, non-GMP production runs. These were very small revenue contributors, of course. Meaningful business will start next year, and then it will develop over three to four years and we will see communicated. We are on track there. It's a complex topic to bring this all live, but we are making good progress.

Speaker #1: So we are we are on track there. It's a complex topic to to bring this all live but we are we are making good progress.

Tanja Hansalik: Mm-hmm. Thank you very much.

Tanya Hansalik: Mm-hmm. Thank you very much.

Speaker #4: Thank you very much.

Speaker #3: And the next question comes from Estelle Petri from Berenberg. Please go ahead.

Operator 2: The next question comes from Estelle Petrizet from Berenberg. Please go ahead.

Operator: The next question comes from Estelle Petrizet from Berenberg. Please go ahead.

Speaker #4: Yes, hello. I also have two questions from my end. First of all, regarding the order intake for equipment and services, you mentioned the majority is for large and complex, customized lines, with the duration going into 2028.

Estelle Petrizet: Yes. Hello. Also two questions from my end. First of all, from the order intake for equipment and solutions, you mentioned the majority is for large and complex customized lines with the duration going into 2028. Could you just please explain the nature of these extensions, what it means also for the lead times? Because I remember during COVID, these were around 18 months for larger projects and have recently gone down to around 12 to 14 months. So to understand.

Estelle Bétrisey: Yes. Hello. Also two questions from my end. First of all, from the order intake for equipment and solutions, you mentioned the majority is for large and complex customized lines with the duration going into 2028. Could you just please explain the nature of these extensions, what it means also for the lead times? Because I remember during COVID, these were around 18 months for larger projects and have recently gone down to around 12 to 14 months. So to understand.

Speaker #4: Could you please explain the nature of these extensions? What does it mean for the lead times? I remember during COVID, these were around 18 months for larger projects, and have recently gone down to around 12 to 14 months.

Speaker #4: So, yeah, just to understand.

Speaker #1: Yes, of course. These are what we—these larger projects that we did win in the US were high-speed lines, and so, in the US, they really increased the output of their production.

Burim Maraj: Yes. Of course, these larger projects that we did win in the US are high-speed lines. In the US, they really increased the output of their productions. These super high-speed lines, they are typically then run at the limit what the technology can provide. So yes, typically, they still take 18 to 24 months to deliver. But these are also, in some cases, new technologies that some of our partners provide in this project. So we are a little bit cautious about what is the time frame we need to deliver that backlog. So maybe it is a few months on top of the 18 months when we talk about this large project.

Speaker #1: And these super high-speed lines are typically then run at the limit of what the technology can provide. So yes, typically they still take 18 to 24 months to deliver.

Speaker #1: But these are also, in some cases, new technologies that some of our partners provide in these projects. So we are a little bit cautious about what is the time frame we need to deliver that backlog.

Speaker #1: So maybe it's a few months on top of the 18 months when we talk about these large projects.

Speaker #4: Okay. Yeah. Thank you. And also just if you could guide us on how you expect to split between both segments to evolve this year if we should expect something around like we have just seen right now the 39% for service and consumables or more going back a bit more towards the the for year 2025 split.

Estelle Petrizet: Okay. Yeah. Thank you. Also, just if you could guide us on how you expect the split between both segments to evolve this year, if we should expect something around like we have just seen right now, the 39% for Services & Consumables, or more going back a bit more towards the full year 2025 split.

Estelle Bétrisey: Okay. Yeah. Thank you. Also, just if you could guide us on how you expect the split between both segments to evolve this year, if we should expect something around like we have just seen right now, the 39% for Services & Consumables, or more going back a bit more towards the full year 2025 split.

Jonas Greutert: I did not fully understand your question, but I assume that you ask what are our targets for equipment and solution margins and Services & Consumables, right?

Speaker #5: I did not fully understand your question, but I assume that you asked about what our targets are for equipment and solution margins, and service and consumers, right?

Speaker #4: I think it was more on the split of the business. Like, you intend to go towards more of a 50/50 split in the midterm or longer term. So, how does it look for the first half into the second half?

Estelle Petrizet: I think it was more on the split of the business. Like you intend to go towards more of a 50/50 split in the midterm or longer term.

Estelle Bétrisey: I think it was more on the split of the business. Like you intend to go towards more of a 50/50 split in the midterm or longer term.

Jonas Greutert: Ah, yes.

Estelle Petrizet: How does it evolve from H1 into H2?

Estelle Bétrisey: How does it evolve from H1 into H2?

Speaker #5: Yeah it's I I we we assume as the both segments will develop in the second half as already mentioned so the split will remain more or less in this between 30 to 39% but long or midterm our goal is to have 50/50 split between both segments which gives us or makes us less depending on on the project business on the fluctuation of the project business.

Jonas Greutert: Yeah. We assume both segments will develop in H2, as already mentioned, so the split will remain more or less between 30% to 39%. But long or midterm, our goal is to have a 50/50 split between both segments, which makes us less depending on the project business, on the fluctuation of the project business.

Speaker #4: Okay. Thank you.

Estelle Petrizet: Okay. Thank you.

Estelle Bétrisey: Okay. Thank you.

Speaker #3: As a reminder, if you would like to ask a question, you may press star and one at this time. There are currently no further questions by phone, so I would like to turn the conference back to Thomas Balmer for any written questions.

Operator 2: As a reminder, if you would like to ask a question, you may press star and 1 at this time. There are currently no further questions by phone, so I would like to turn the conference back to Thomas Balmer for any written questions.

Operator: As a reminder, if you would like to ask a question, you may press star and 1 at this time. There are currently no further questions by phone, so I would like to turn the conference back to Thomas Balmer for any written questions.

Speaker #1: Thank you. We have a written question from Dale Robertson from Chelburton Asset Management, who asked: As we look over the coming years, and if EBITDA margins rise into the teens as you expect, what do you think free cash flow will look like? Will it have a stable relationship to EBITDA, and what level of EBITDA conversion into free cash flow should we expect?

Thomas Balmer: Thank you. We have a written question from Dale Robertson from Chelverton Asset Management, who asked, "As we look over the coming years and if EBITDA margin rise into the teens, you expect, what do you think free cash flow will look like? Will it have a stable relationship to EBITDA? And what level of EBITDA conversion to free cash flow should we expect?

Speaker #5: As we or or have announced that we we were in a investment cycle until pre-approved services is is live we were more negative in free cash flow now we are positive we expect that the free cash flow will be also positive on a higher level but this will yeah this we will how is it communicate later on when we when we communicate the guidance the the overall guidance in in March.

Jonas Greutert: As we have announced that we were in an investment cycle until Pre-Approved Services is live. We were negative in free cash flow. Now we are positive. We expect that the free cash flow will be also positive on a higher level, but this we will communicate later on when we communicate the overall guidance in March.

Speaker #1: So there are no more written questions. I give back to the operator... There is now another one coming. Sorry, there's a new one. From Mark Bossa: "Is the split between equipment and services, and service and consumables, also valid for the impressive order intake in the US or are there differences?"

Thomas Balmer: If there are no more written questions, I give back to the operator. There is now another one coming.

Thomas Balmer: Oh. Sorry. There is a new one from Mark Foster from Invest. Is the split between equipment and services and Services & Consumables also valid for the impressive order intake in the US, or are there differences?

Speaker #2: I can maybe give a little bit of color to that. I mean, in the US, we clearly see that the investment climate is very strong.

Jonas Greutert: I can maybe give a little bit of color to that. In the US, we clearly see that the investment climate is very strong. In the US market, we see a lot of investment in new production capacity. The order entry in that sense, did grow much faster there than in the equipment and solutions part and in the Services & Consumables. You could even go a step further, saying that as the drug prices are a little bit under pressure in the US, the US customers start to try to reduce their operation cost in a way, but they are still investing quite heavily into new capacity.

Speaker #2: In the US market, we see a lot of investment in new production capacity, so the order entry in that sense did grow much faster there in the equipment and solution part than in the service and consumables. You could even go a step further, saying that as the drug prices are a little bit under pressure in the US, the US customers start to try to reduce, or are reducing, their operating costs in a way, but they are still investing quite heavily into new capacity.

Speaker #1: For the moment, there are no further questions from the webcast, so we hand back to the operator.

Thomas Balmer: At the moment, there are no further questions from the webcast, so we hand back to the operator.

Speaker #3: Thank you. Today we have one follow-up question from Tanja Hanzalic from UBS. Please go ahead.

Operator 2: Thank you. Then we have one follow-up question from Tanja Hansalik from UBS. Please go ahead.

Operator: Thank you. Then we have one follow-up question from Tanja Hansalik from UBS. Please go ahead.

Speaker #4: Yes. Hello, I wanted to follow up also on aseptic technologies. You had quite a strong development in 2024. Can you maybe update us on how the pipeline is going and the interest for your vial technology? When can we expect, maybe, this business to accelerate?

Tanja Hansalik: Yes. Hello. I wanted to follow up also on Aseptic Technologies. You had quite a strong development in 2024. Can you maybe update us on how the pipeline is going and the interest for your vial technology, when we can expect maybe this business to accelerate?

Tanya Hansalik: Yes. Hello. I wanted to follow up also on Aseptic Technologies. You had quite a strong development in 2024. Can you maybe update us on how the pipeline is going and the interest for your vial technology, when we can expect maybe this business to accelerate?

Jonas Greutert: Again, aseptic. Can you repeat the question? Sorry, I couldn't get it again. What was the question?

Speaker #5: Again, as effective—can you repeat the question? Sorry, I couldn't catch it. What was the question?

Speaker #4: As aseptic technologies, the business—how do you expect this to develop? Yeah.

Tanja Hansalik: Aseptic Technologies, the business, how do you expect this to develop?

Tanya Hansalik: Aseptic Technologies, the business, how do you expect this to develop?

Speaker #5: Yeah. The the the pipeline as you know we we always did disclosed it's around 400 or our customers around 400 ingredients in in the closed vials.

Jonas Greutert: Yeah. The pipeline, as you know, we disclosed it's around 400, or our customers around 400 ingredients in the AT-Closed Vial. It's more or less stable. We have still these eight drugs commercial in our AT-Closed Vial. As you know, the whole funding had constraints during the last two years, which also impacted a little bit the development in cell and gene. Now it's picking up, and we expect also there that this will have a positive impact on Aseptic Technologies. As you all know, these are cell and gene, and the majority will not make it to commercial. The good thing is that our pipeline is still on a stable level and are consuming still the majority of the vials compared to the eight products that we have commercial.

Speaker #5: It's more or less stable and we have still this eight eight drugs commercially in our closed vials. And as you know the whole funding was was we had or the the funding had constraints during the last two years which also impacted a little bit the the development in cell and gene.

Speaker #5: Now it's a little it's picking up and we expect also there do the the that these will have a positive impact on a septic technologies.

Speaker #5: But as you all know these these are cell and gene and the majority will not make it to to the to commercial but the good thing is that our pipeline is still on a stable stable level and our consuming still the majority of the of the vials compared to the eight products that we have commercial.

Speaker #4: Thank you.

[Analyst]: Thank you.

Tanya Hansalik: Thank you.

Speaker #3: There are currently no further questions by phone, so I will hand back to Thomas Balmer for any additional written questions.

Operator 2: There are currently no more questions by phone. I will hand back to Thomas Balmer for any more written questions.

Operator: There are currently no more questions by phone. I will hand back to Thomas Balmer for any more written questions.

Speaker #1: Yes. We have more questions from Mark Bossa. Okay, the first question is: Is the value proposition for customers in the pre-approved services still unchanged, meaning 12 to 18 months' savings of go-to-market?

Thomas Balmer: Yes, we have more questions from Marc Bosse, from Vermögensverwaltung. First question: Is the value proposition for customers in the Pre-Approved Services still unchanged, meaning 12 to 18 months savings of go to market?

Speaker #5: This is still valid. Yeah.

Jonas Greutert: It is still valid, yeah.

Speaker #1: And his second question: How has the competitive landscape changed over the course of the last 12 months, maybe from a technology and market share point of view?

Thomas Balmer: His second question, how has the competitive landscape changed over the course of the last 12 months, maybe from a technology and market share point of view?

Speaker #5: Now, of course, we need to look into the different segments. Probably, the question is more geared towards our core business—the isolator business.

Jonas Greutert: Now, of course, we need to look into the different segments. Probably the question is more geared towards our core business, the isolator business. Of course, we are not the only one in the market. There are other big players. I am sure you all also observe what is going on with Syntegon and some of our other competitors there. In the past, we were in a market where there was not enough demand, or not enough supply. The demand was very high. Now I would say we are more in an equilibrium between demand and supply. We actually have now tenders in the market, and we have to win. It is not just a given. We have to fight much more to win the business.

Speaker #5: Of course, we are not the only ones in the market. There are other big players. I am sure you all also observe what's going on with Synthagon and some of our other competitors there.

Speaker #5: In the past you know we were in a market where it was more kind of there was not enough demand or not enough supply and the demand was very high.

Speaker #5: Now I would say we are more in equilibrium between demand and supply. So we actually have tenders in the markets now, and we have to win.

Speaker #5: It's not just a given. So we have to fight much more to win a business. We were super successful in the first half-year, and I'm actually super proud of our sales teams, specifically in North America, where we did win most of the larger projects.

Jonas Greutert: We were super successful in H1, and I am actually super proud about our sales team, specifically in North America, where we did win most of the larger projects. Yes, there is more competition and good customer relationships. Strong project execution is more important than ever.

Speaker #5: So yes, there is more competition, and good customer relationships and strong project execution are more important than ever.

Speaker #1: Then we have a question from Michael Schulz. He's pointing out that full-time equivalents have been reduced by 61 positions compared to year-end. Does that mean that personnel expenses will go down in the second half of this year?

Thomas Balmer: We have a question from Michael Schulz, Invest. He is pointing out that Full-Time Equivalents have been reduced by 61 positions compared to year end. Does that mean that personal expenses will go down in H2 of this year? Question one. Question two, were there costs related to this reduction in headcount?

Speaker #1: Question one and question two: Were there costs related to this reduction in headcount?

Speaker #5: Yes. The thing is, it's exactly the first—the headcount has been, or FTEs have been, reduced by 61. And the full impact will be shown, or will have an impact, in the second half.

Jonas Greutert: Yes. As I said, the headcount has been, or the FTEs, has been reduced by 61. The full impact will be shown or will have an impact in H2. It is a bit difficult also to compare because in the personal cost, we have also the acquisition included. But when we look from a like-for-like comparison, of course, this will increase, and it will not be the full year effect. The full year effect of this decrease will have the impact only in 2027. But it is also a meaningful reduction in 2026.

Speaker #5: And it's a bit difficult also to compare because in the personal cost we have also the acquisition included but when we look from a a life for life comparison of course is this this will increase and it will not be the full year effect the full year effect of this decrease will be will have the impact only in 2027.

Speaker #5: But it's also a meaningful reduction in 2026.

Speaker #1: Okay, thank you. We don’t have any more questions in the webcast, and as I can see, also no more questions in the telephone conference.

Thomas Balmer: Okay. Thank you. We do not have any more questions in the web call. As I can see also, no more questions in the telephone conference. Therefore, I hand over to Jonas for his closing remarks.

Speaker #1: Therefore, I hand over to Jonas for his closing remarks.

Speaker #5: Hey, thank you all for participating in this call. I'm, again, very happy with our half-year results, and with that, we conclude the session for today.

Jonas Greutert: Hey, thank you all for participating in this call. I am again very happy with our half-year results. With that, we conclude the session for today.

Operator 2: Okay. Thank you very much. Ladies and gentlemen, the conference is now over. Thank you for joining, and have a pleasant day. Goodbye.

Operator: Okay. Thank you very much. Ladies and gentlemen, the conference is now over. Thank you for joining, and have a pleasant day. Goodbye.

Speaker #5: Thank you very much.

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Q2 2026 SKAN Group AG Earnings Call

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