Embla Medical hf

Quarterly Report • Apr 29, 2025

Interim Report Q1 2025 Announcement no. 19/2025

Sveinn Sölvason, President and CEO, comments:

"Sales in Q1 2025 amounted to USD 203 million and organic growth came in at 4% driven by a strong finish to the quarter. Growth was strong in our Prosthetics & Neuro Orthotics segment supported by continued momentum and solid volume growth in EMEA and APAC regions, while the year started out softer in Americas following a strong end to 2024.

Our Navii® and Icon® bionic knees advanced into full launch during the quarter following successful pre-launch activities and promising user feedback. Both Navii® and Icon® are great innovations that will help us reach more users across different lower limb functional levels, including some of the active functional level K2 patients from the US Medicare coverage expansion, which took effect last fall.

EBITDA margin was 18% in Q1 2025; up 1%-point from Q1 2024. The stronger margin was driven by the positive effects from the cost reduction initiatives implemented in manufacturing during Q1 2024 as well as positive contributions from product mix and continued cost control in SG&A.

We iterate our guidance for the full year of 5-8% organic sales growth and 20-21% EBITDA margin before special items."

Highlights Q1 2025

• Sales amounted to USD 203 million and organic growth was 4%, compared to 7% in Q1 2024.
• Prosthetics & Neuro Orthotics sales grew by 9% organic, while our Bracing & Supports and Patient Care sales ended flat in the first quarter of 2025, compared to 10%, 1% and 6% respectively in Q1 2024.
• Gross profit margin was 63%, compared to 62% before special items in Q1 2024 (60% reported). The increase is supported by the manufacturing cost reduction initiatives implemented in Q1 2024 as well as favorable product mix and efficiency.
• EBITDA was USD 36 million, and EBITDA margin was 18% of sales, compared to 17% before special items in Q1 2024. The EBITDA margin expansion was driven by an increasing gross profit margin following cost reduction initiatives implemented in Q1 2024 and continued cost control in SG&A.
• Net profit grew by 45% and was USD 12 million with a net profit margin of 6%, compared to 4% in Q1 2024.
• Free cash flow amounted to USD 8 million or 4% of sales, compared to negative free cash flow of USD 7 million or negative 4% of sales in Q1 2024. Free cash flow was solid, benefiting from strong operating results, but it should be noted that cash flow is seasonally low in the first quarter of the year.
• NIBD/EBITDA was 2.5x at the end of Q1 2025, which is within our target range of 2-3x EBITDA. In line with our capital structure and capital allocation policy a share buyback program was reinitiated in early February. During Q1 2025, Embla Medical bought back 295,653 shares at a market value of approximately USD 1.3 million.

Other highlights

• André Rocha has been appointed as Executive Vice President of R&D at Embla Medical. André Rocha previously served as Partner at McKinsey & Co and brings 25 years of experience and a proven track record across all organizational levels.
• Conal Harte has been appointed Executive Vice President of Patient Care, having served as Vice President Patient Care Europe since 2023, and prior to that, held various roles at Össur and Touch Bionics.

2025 Outlook

• Organic sales growth guidance is unchanged at 5-8%.
• EBITDA margin before special items guidance is unchanged at 20-21%

			FY Guidance
	Q1 2025	Q1 2024	2025
Sales growth, organic	4%	7%	5-8%*
EBITDA margin, before special items	18%	17%	20-21%*

*Impact is expected due to the US trade tariffs but significant uncertainty and frequent changes in the global tariff environment, makes it too speculative to quantify an exact impact on Embla Medical's financial results as of today.

USD millions		Q1 2025	Q1 2024	FY 2024	FY 2023	FY 2022	FY 2021
Income Statement
Net sales		203	200	855	786	719	719
Gross profit		128	120	535	486	440	455
Operating expenses (excl. other income / exp.)		106	105	422	398	373	360
EBITDA		36	29	169	139	114	149
EBITDA before special items		36	33	173	139	128	149
EBIT		22	15	113	89	65	97
Net profit		12	8	69	59	43	66
Sales Growth
Sales growth USD	%	1	10	9	9	0	14
Growth breakdown:
Organic growth	%	4	7	6	9	4	10
Currency effect	%	(2)	0	0	(1)	(7)	3
Acquired business	%	0	3	3	1	3	1
Balance Sheet
Total assets		1,589	1,545	1,539	1,386	1,325	1,247
Equity		802	734	781	705	636	627
Net interest-bearing debt (NIBD)		437	482	414	395	404	363
Cash Flow
Cash generated by operations		23	13	160	126	92	128
Free cash flow		8	(7)	77	52	35	74
Key Ratios
Gross profit margin	%	63	60	63	62	61	63
EBIT margin	%	11	8	13	11	9	14
EBITDA margin	%	18	15	20	18	16	21
EBITDA margin before special items	%	18	17	20	18	18	21
Equity ratio	%	50	48	51	51	48	50
Net debt to EBITDA before special items*		2.5	3.3	2.4	2.8	3.2	2.4
Effective tax rate	%	23	24	24	23	23	24
Return on equity*	%	9	8	9	9	7	11
CAPEX / Net sales	%	3.0	5.7	4.6	5.4	3.6	3.7
Market
Market value of equity		1,742	2,078	2,125	1,713	2,035	2,724
Number of shares in millions		428	428	428	421	423	423
Basic EPS in US cents		2.8	1.9	16.2	14.0	10.3	15.6
Diluted EPS in US cents		2.8	1.9	16.2	14.0	10.3	15.5

* Financial ratios are based on operations for the preceding 12 months.

Management's report

Financial performance

Sales

Sales increased by 4% organic

30 April 2020 Announcement no.

Interim report Q1

Sales performance in line with expectations

Össur guidane suspended

27/2020

2024

Sales in Q1 2025 amounted to USD 203 million, compared to USD 200 million in Q1 2024, corresponding to 4% organic growth and a 1% reported growth (USD growth). The currency impact on sales was negative by 2%-points in the quarter.

Sales by geographical segment (USD million)	Q1 2025	Organic growth	Δ Acq.	Δ Curr. effect	USD growth
Americas	85	(1%)	0%	(1%)	(3%)
EMEA	101	7%	0%	(3%)	4%
APAC	16	13%	0%	(5%)	8%
Total	203	4%	0%	(2%)	1%
Sales by business segment (USD million)	Q1 2025	Organic growth	Δ Acq.	Δ Curr. effect	USD growth
Prosthetics & Neuro Orthotics	111	9%	0%	(3%)	6%
Bracing & Supports	35	0%	0%	(2%)	(3%)
Internal product sales	(9)	11%	0%	(3%)	8%
External sales	137	6%	0%	(2%)	4%
Patient Care	66	0%	0%	(2%)	(3%)
Total	203	4%	0%	(2%)	1%

Growth in Q1 2025 was driven by solid volume growth in Prosthetics & Neuro Orthotics; especially in EMEA and APAC regions while sales were soft in Americas.

Strong growth in EMEA and APAC while Americas declined

Sales growth in the EMEA region was strong in the first quarter with 7% organic growth. In Prosthetics & Neuro Orthotics the strong growth trajectory from 2024 continued in key European markets during the first quarter. Growth was driven by strong volume growth coupled with increased uptake of our recently launched innovation such as Navii® (bionic knee) and Pro-Flex® Terra (mechanical feet solution). Our Neuro Orthotics business (Fior & Gentz) is moving ahead according to plan following the expansion into new international markets last year. Sales performance in Patient Care was mixed with strong sales in select European markets while sales were soft in other markets. Sales in Bracing & Supports were soft, with pockets of growth in select markets but were offset by softer performance in others.

In APAC, organic sales were strong or 13% in Q1 2025 with solid performance in Prosthetics & Neuro Orthotics and Patient Care. Growth was strong in Australia driven by continued improvements in reimbursement approval backlogs. Growth in the region was partly offset by softer sales in Bracing & Supports in markets such as China.

In Americas sales declined by 1% mainly due to soft sales across markets in our Patient Care segment, where we observed lower patient volume than usual during the first couple of months of the year. Sales in Prosthetics and Neuro Orthotics came in modestly for Q1 following a strong end to 2024, somewhat correlated with the softness we see in Patient Care. Sales in Bracing & Supports were soft, similar to what we observed in EMEA.

As expected, we are yet to see any material impact from the US Medicare coverage expansion for K2 patients as upgrades for eligible K2 patients are rolled out on a selective basis. Fittings are expected to increase in the periods to come as prosthetists are gaining experience from fitting the first patients and submitting reimbursement claims.

As communicated previously, we expect our recently launched bionic knees Navii® by Össur and Icon® by College Park to address active K2 amputees consistent with the coverage standards published by Medicare. We have received encouraging initial feedback on our launches from a clinical performance perspective and will continue our efforts to enable more active K2 functional level amputees to gain access to advanced bionic knee technology, which previously was restricted to functional level K3 and K4 users.

Gross profit margin of 63%	Operations Gross profit in Q1 2025 amounted to USD 128 million or 63% of sales, compared to USD 123 million excluding special items or 62% of sales in Q1 2024 (60% reported in Q1 2024). The 1%-point gross profit margin expansion was supported by cost reduction initiatives in manufacturing implemented during Q1 2024 in addition to positive product mix, scalability, and manufacturing efficiency.
OPEX ratio of 52%	Operating expenses (OPEX) OPEX amounted to USD 106 million or 52% of sales in Q1 2025, compared to USD 104 million excluding special items or 52% of sales in Q1 2024 (USD 105 million or 53% of sales reported). OPEX ratio remains stable with continued focus on cost control within SG&A.
EBITDA margin before special items of 18%	EBITDA EBITDA amounted to USD 36 million or 18% of sales, compared to EBITDA before special items of USD 33 million or 17% of sales in Q1 2024 (15% reported in Q1 2024). The EBITDA margin expansion for the quarter was driven by an expanding gross profit margin and continued cost control in SG&A cost, in addition to positive effects from currencies by approximately 30 basis points (net of hedging).
	Financial items, income tax and net profit Net financial expenses in Q1 2025 amounted to USD 7 million, compared to USD 5 million in Q1 2024. The increase is due to currency developments impacting net financial expenses negatively by USD 3 million Q1, compared to neutral effect in Q1 2024, following a weakened US dollar.
Effective tax rate of 23%	Income tax amounted to USD 4 million in Q1 2025, corresponding to a 23% effective tax rate, compared to USD 3 million in Q1 2024, corresponding to a 24% effective tax rate.
Net profit margin of 6%	Net profit grew by 45% in Q1 2025 and amounted to USD 12 million or 6% of sales, compared to USD 8 million or 4% of sales in Q1 2024. Increase is driven by stronger operating results and absence of special items this quarter compared to Q1 2024.
	Diluted earnings per share in Q1 2025 amounted to 2.8 US cents, compared to 1.9 in Q1 2024.

Cash flow

Cash generated by operations

Cash generation of USD 23 million

Cash generated by operations amounted to USD 23 million or 11% of sales in Q1 2025, compared to USD 13 million or 7% of sales in Q1 2024. Cash generation was solid in the quarter, mainly benefitting from strong operating results. It should however be noted that cash generation is seasonally low in the first quarter of the year.

Capital expenditures

Capital expenditures in Q1 2025 amounted to USD 6 million or 3% of sales, compared to USD 11 million or 6% of sales in Q1 2024.

CAPEX has returned to a normalized level of 3-4% of sales as facility expansion programs in 2024 have been concluded.

Free cash flow

Free cash flow in Q1 2025 amounted to USD 8 million or 4% of sales, compared to negative free cash flow of USD 7 million or negative 4% of sales in Q1 2024. Solid free cash flow during the quarter; mainly benefitting from strong operating results and less CAPEX than in the comparable period, partly offset by changes in net working capital. It should be noted that free cash flow is seasonally low in the first quarter of the year.

Bank balances and cash equivalents

Bank balances and cash equivalents amounted to USD 92 million at the end of Q1 2025 and USD 66 million of existing facilities were undrawn. Bank balances and cash equivalents in addition to undrawn credit facilities at the end of Q1 2025, therefore, amounted to USD 157 million.

Capital structure

Net-interest bearing debt

Net interest-bearing debt, including lease liabilities, amounted to USD 437 million at quarter-end Q1 2025 compared to USD 482 million at quarter-end Q1 2024. Net interest-bearing debt to EBITDA before special items corresponded to 2.5x at quarter-end Q1 2025, within the target range of 2.0-3.0x. NIBD/EBITDA before special items at 2.5x

Share buybacks and treasury shares

The purpose of the program is to reduce the Company's share capital and adjust the capital structure with a desired capital level of 2.0-3.0x net interest-bearing debt to EBITDA before special items, by distributing capital to shareholders in line with the Company's Capital Structure and Capital Allocation Policy. February 2025

During Q1 2025, Embla Medical bought back 295,653 shares at a market value of approximately USD 1.3 million. At the end of Q1 2025, treasury shares totaled 997,300.

Cash and undrawn facilities amounted to

Free cash flow was 4% of sales

USD 157 million

Share buybacks reinitiated 14

2025 Financial guidance

Guidance	Guidance FY 2025	Actual FY 2024
Sales growth, organic	5-8%	6%
EBITDA margin before special items	20-21%	20%
For modelling purposes
CAPEX as % of sales	3-4%	5%
Effective tax rate	23-24%	24%

Guidance for organic sales growth remains unchanged and is expected to be in the range of 5-8%.

We expect strong performance in Prosthetics & Neuro Orthotics across regions supported by solid growth in the core business, contributions from the recently launched Navii® and Icon® bionic knees, and positive impact from the US Medicare Coverage Expansion for active K2 patients. It's worth noting that sales related to the US Medicare expansion are expected to grow gradually in the initial phase as prosthetists continue to build experience fitting select K2 patients.

In Neuro Orthotics (Fior & Gentz) we expect the international expansion to new markets to continue to contribute to growth leveraging Össur's global commercial infrastructure and the ForMotion footprint within O&P clinics.

In Patient Care, we expect growth to be moderate reflecting market growth across regions. All else equal we expect good volume growth, with increased efficiency to drive growth bearing in mind that growth in EMEA may be somewhat impacted by a strong comparison in 2025 compared to 2024.

Lastly, Bracing & Supports is expected to grow approximately in line with market growth, with growth driven by key product categories, but with some competitive pressure in selected markets.

The guidance for EBITDA margin before special items remains unchanged and is expected to be in the range of 20-21%. The EBITDA margin is expected to be positively impacted by solid sales performance, a favorable product mix from high-end solutions, continued efficiency gains in manufacturing, and cost control in SG&A.

Potential impact from US trade tariffs

An impact is expected due to the US trade tariffs but significant uncertainty and frequent changes in the global tariff environment makes it too speculative to quantify an exact impact on Embla Medical's financial results as of today.

The main impact would be on Bracing and Supports products manufactured in China and sold in the US. It is our expectation that adjustments could be made to our manufacturing setup to mitigate a large part of additional direct cost. Potential tariff impact on other manufacturing sites is deemed minimal as the tariff situation looks today.

Foreign exchange

Sales are particularly exposed to fluctuations in the EUR/USD exchange rate. Additionally, the ISK has a relatively high impact on operating results as part of manufacturing, R&D and some corporate functions are based in Iceland, while sales in ISK are minimal. A breakdown of sales and costs by main currencies can be found in note 4 of the accompanying Condensed Consolidated Financial Statements.

All else being equal, a +/- 5% movement in EUR/USD is estimated to have an annual impact on EBITDA in the range of +/- USD 3.5-4.5 million when unhedged. The same movement in ISK/USD is estimated to have an annual impact on EBITDA in the range of +/- USD 3.5-4.5 million when unhedged. Embla Medical utilizes forward contracts to hedge approximately 50% of the estimated net currency exposure in ISK.

Currency overview USD	EUR	ISK
Average exchange rate FY 2024	1.082	0.0073
Average exchange rate in Q1 2025	1.052	0.0072
Opening rate April 28 2025	1.136	0.0078
Estimated average exchange rate for FY 2025*	1.115	0.0077
Change in estimated exchange rate FY 2025 compared to last year's average	+3%	+5%

*Estimated average exchange rate is calculated as the exchange rate of Q1 combined with the exchange rate (open) on 28 April 2025 for the remainder of the year

Other highlights

Product launches during last 12 months

Launch quarter	Segment	Product name	Product description
Q3 2024	Prosthetics Upper limb	NP 3rd generation (Naked Prosthetics)	The third generation of Naked Prosthetics technology features significant enhancements to the PIPDriver®, MCPDriver®, ThumbDriver®, and GripLock Finger®. With a refreshed color palette, new surface textures, and customizable hardware, this update delivers greater personalization and improved durability, driven by market feedback and advanced manufacturing.
Q2 2024	Prosthetics Liners	Iceross Seal-In® X Locking TF (Össur)	Build for comfort and stability, the Icelock 850 Hybrid Lock and Iceross Seal-In X Locking TD liner bring the benefits of advanced vacuum suspension of the Seal In system to users with lower limb amputations of all activity levels who prefer or rely on locking or lanyard suspensions.
Q2 2024 (Full launch Q1 2025)	Prosthetics Bionic knee	Icon® (College Park)	Icon® features responsive sensors, streamlined setup, and the intuitive Stride Studio app. Icon® is the versatile solution for low to high activity users.
Q2 2024 (Full launch Q1 2025)	Prosthetics Bionic knee	Navii® (Össur)	Navii® is a fully waterproof bionic knee featuring a powerful actuator provided to support consistency for stair and ramp descent. Navii® posses a variable position mechanical lock that can securely lock at three different angles and stay locked for standing during longer periods of time.

Conference call details

Embla Medical will host a conference call on April 29, 2025, at 9:00 CET / 7:00 GMT / 3:00 ET.

To actively participate in the telephone conference, please use the dial-in details provided below:

DK: +45 78 76 84 90 UK: +44 20 3769 6819 US: +1 646 787 0157 Participant access code: 274982

The webcast will be available through following link: Embla Medical Q1 2025 webcast

Financial calendar and events 2025

April 29 2025	Interim report Q1 2025
April 29 2025	Q1 2025 HCA Capital virtual presentation and Q&A
April 29 2025	Q1 2025 Road Show Copenhagen (Carnegie)
April 30 2025	Q1 2025 Road Show Frankfurt (Carnegie)
May 5 2025	Q1 2025 Virtual Road Show US (Danske Bank)
May 6 2025	Q1 2025 Virtual Road Show UK (DNB)
May 7 2025	Q1 2025 Virtual Road Show Helsinki (Nordea)
May 8 2025	Redeye MedTech Day, Stockholm
May 19 2025	AktieInfo investor event, Copenhagen
May 28 2025	Carnegie/Embla Expert Call: Navii (vitual)
June 3 2025	Carnegie Healthcare Day, Paris
July 22 2025	Interim report Q2 2025
Aug 27 2025	Økonomisk Ugebrev Life Science Conference, Copenhagen
Sept 4 2025	Goldman Sachs MedTech conference, London
Sept 16 2025	Pareto Securities Annual Healthcare Conference, Stockholm
Sept 18 2025	HC Andersen Investor Seminar, Copenhagen
October 21 2025	Interim report Q3 2025
Nov 26 2025	Danske Bank Winter Seminar, Copenhagen
Dec 2 2025	Nordea Focus Seminar, Paris

For further information

Contact details
Klaus Sindahl, Head of Investor Relations	+45 5363 0134	ksindahl@emblamedical.com

Embla Medical corporate announcements by e-mail

If you wish to receive Embla Medical's e-mail alerts, please register on our website: https://emblamedical.com/investor-relations

Forward-looking statements

This press release includes "forward-looking statements" which involve risks and uncertainties that could cause actual results to differ materially from results expressed or implied by these statements. Embla Medical hf. undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Embla Medical hf.

Condensed Interim Consolidated Financial Statements

31.3.2025

Embla Medical hf Grjóthálsi 5 110 Reykjavík Id-no. 560271-0189

Statement by the Board of Directors and President and CEO

The Condensed Interim Consolidated Financial Statements of Embla Medical hf. for the period from 1 January 2025 to 31 March 2025 consist of the Financial Statements of Embla Medical hf. and its subsidiaries (together referred to as "the Company" or "Embla Medical"). The Condensed Interim Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards for Interim Financial Reporting, IAS 34, as adopted by the EU. The Condensed Interim Consolidated Financial Statements are neither audited nor reviewed by the Company's auditors.

The total Net sales of the Company amounted to USD 202.8 million and the Net profit amounted to USD 12.0 million. Total assets of the Company amounted to USD 1,588.7 million at the end of period, liabilities were USD 787.0 million and equity was USD 801.7 million.

It is our opinion that these Condensed Interim Consolidated Financial Statements present all the information necessary to give a true and fair view of the Company's financial position at 31 March 2025 and financial performance and cash flow for the period ended 31 March 2025.

The Board of Directors and the President and CEO of Embla Medical hf. hereby confirm the Condensed Interim Consolidated Financial Statements for the period from 1 January 2025 to 31 March 2025 with their signatures.

Reykjavík, 29 April 2025

Board of Directors

Niels Jacobsen Chairman of the Board

Svafa Grönfeldt Vice Chairman of the Board of Directors

Arne Boye Nielsen Alberto Esquenazi

Tina Abild Olesen Caroline Vagner Rosenstand

Member of the Board of Directors Member of the Board of Directors

Member of the Board of Directors Member of the Board of Directors

President and CEO

Sveinn Sölvason

Consolidated Income Statement

All amounts in USD '000	Notes	Q1 2025	Q1 2024
Net sales	3	202,786	199,852
Cost of goods sold		(75,020)	(79,418)
Gross profit		127,766	120,435
Other income / (expenses)		367	236
Sales and marketing expenses		(78,057)	(76,307)
Research and development expenses		(10,569)	(9,848)
General and administrative expenses		(17,280)	(19,097)
Earnings before interest and tax (EBIT)		22,227	15,419
Financial income		674	708
Financial expenses		(5,250)	(6,020)
Net exchange rate difference		(2,606)	137
Net financial expenses		(7,181)	(5,174)
Share in net profit of associates		613	739
Earnings before tax (EBT)		15,659	10,984
Income tax		(3,631)	(2,682)
Net profit		12,027	8,302
Attributable to:
Owners of the Company		12,159	8,260
Non-controlling interests		(131)	41
Net profit		12,027	8,302
Earnings per share
Basic earnings per share (US cent)		2.8	1.9
Diluted earnings per share (US cent)		2.8	1.9

Consolidated Statement of Comprehensive Income

All amounts in USD '000	Q1 2025	Q1 2024
Net profit	12,027	8,302
Items that may be reclassified subsequently to profit or loss:
Change in cash flow hedges	(79)	156
Exchange difference on translating foreign operations	8,541	(5,402)
Income tax	1,422	(814)
Other comprehensive income, net of income tax	9,883	(6,060)
Total comprehensive income	21,910	2,242
Attributable to:
Owners of the Company	22,042	2,201
Non-controlling interests	(131)	41
Total comprehensive income	21,910	2,242

Consolidated Balance Sheet

Assets

All amounts in USD '000 Notes		31.3.2025	31.12.2024
Property, plant and equipment	5	71,565	71,824
Right of use assets	6	136,219	127,802
Goodwill	7	789,249	776,306
Other intangible assets	8	97,322	96,645
Investment in associates		23,666	20,364
Other financial assets		2,651	2,704
Deferred tax assets		48,674	46,365
Non-current assets		1,169,346	1,142,010
Inventories		153,880	143,102
Accounts receivable		125,983	121,915
Other financial assets		1,395	1,475
Other assets		46,283	44,300
Cash and cash equivalents		91,770	86,163
Current assets		419,311	396,955
Total assets		1,588,658	1,538,965

Consolidated Balance Sheet

Equity and liabilities

All amounts in USD '000	31.3.2025	31.12.2024
Issued capital and share premium	92,188	93,464
Other reserves	(67,617)	(75,390)
Retained earnings	773,505	759,112
Shareholders equity	798,076	777,186
Non-controlling interest	3,601	3,513
Total equity	801,677	780,699
Borrowings	338,685	328,754
Lease liabilities	128,651	118,279
Deferred tax liabilities	36,755	37,478
Provisions	8,232	7,937
Deferred income	8,638	8,589
Other financial liabilities	24,952	47,946
Non-current liabilities	545,913	548,982
Borrowings	37,256	28,620
Lease liabilities	23,955	24,136
Accounts payable	34,797	27,275
Income tax payable	19,498	18,305
Provisions	12,618	12,615
Accrued salaries and related expenses	46,958	48,715
Other financial liabilities	31,450	10,258
Other liabilities	34,537	39,361
Current liabilities	241,068	209,284
Total liabilities	786,981	758,266
Total equity and liabilities	1,588,658	1,538,965

Consolidated Statement of Cash Flow

All amounts in USD '000 Notes	Q1 2025	Q1 2024
Earnings before interests and tax (EBIT)	22,227	15,419
Depreciation and amortization 5, 6, 8	14,240	13,596
Change in inventories	(8,093)	(2,789)
Change in receivables	(3,635)	(4,821)
Change in payables	(1,678)	(8,994)
Change in provisions	178	2,115
Other operating activities	(36)	(1,506)
Cash generated from operations	23,203	13,020
Interest received	654	594
Interest paid	(5,100)	(5,950)
Income tax paid	(4,946)	(3,626)
Net cash generated from operating activities	13,811	4,038
Purchase of fixed and intangible assets 5, 8	(6,172)	(11,484)
Acquisition of subsidiaries, net of cash in acquired entities	(3,239)	(74,629)
Other investing activities	(2,231)	(13)
Cash flows used in investing activities	(11,641)	(86,126)
Changes in revolving credit facility	8,706	94,123
Payments of lease liabilities	(6,460)	(5,853)
Purchased treasury shares	(1,277)	0
Cash flows generated from financing activities	969	88,270
Net change in cash	3,139	6,182
Exchange rate effects on cash held in foreign currencies	2,468	(1,477)
Cash and cash equivalents at beginning of period	86,163	72,653
Cash and cash equivalents at end of period	91,770	77,358

Consolidated Statement of Changes in Equity

All amounts in USD '000	Share capital	Share premium	Other reserves	Retained earnings	Share- holders equity	Non controlling interests	Total equity
Balance at 1 January 2024	4,781	61,479	(64,045)	699,667	701,882	3,123	705,005
Net profit				8,260	8,260	41	8,302
Change in cash flow hedges			125		125		125
Transl. diff. of shares in subsidiaries			(6,184)		(6,184)	(0)	(6,184)
Total comprehensive income	0	0	(6,060)	8,260	2,201	41	2,242
Share option charge for the period			(77)		(77)		(77)
Issued new shares	48	27,156			27,205		27,205
Change in non-controlling interests				382	382	(382)	0
Balance at 31 March 2024	4,829	88,635	(70,181)	708,310	731,593	2,782	734,375
Balance at 1 January 2025	4,829	88,635	(75,390)	759,112	777,186	3,513	780,699
Net profit				12,159	12,159	(131)	12,027
Change in cash flow hedges			(63)		(63)		(63)
Transl. diff. of shares in subsidiaries			9,946		9,946		9,946
Total comprehensive income	0	0	9,883	12,159	22,042	(131)	21,910
Share option charge for the period			344		344	(0)	344
Share option vested during the period			(2,454)	2,454	0		0
Purchase of treasury shares	(2)	(1,275)			(1,277)		(1,277)
Change in non-controlling interests				(219)	(219)	219	0
Balance at 31 March 2025	4,827	87,361	(67,617)	773,505	798,076	3,601	801,677

1. Summary of Material Accounting Policies

Statement of compliance

The Condensed Interim Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standard (IFRS) for Interim Financial Reporting, IAS 34 as adopted by the EU. The Condensed Interim Consolidated Financial Statements are presented in accordance with the new and revised IFRS accounting standards and new interpretations (IFRIC), applicable for the period. New and amended IFRS accounting standards that are effective for the current year have minor impact on the Company´s Financial Statements. The Company has not early applied new and revised IFRS accounting standards that have been issued but are not yet effective. The Financial Statements are presented in USD, which is the Company's functional currency. They do not include all of the information required for full Annual Consolidated Financial Statements and should be read in conjunction with the Company's Annual Consolidated Financial Statements for the period ended 31 December 2024. The Company's Annual Consolidated Financial Statements can be found on the Company's website www.emblamedical.com.

Basis of preparation

The Condensed Interim Consolidated Financial Statements have been prepared under the historical cost basis except for certain financial instruments that are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The Condensed Interim Consolidated Financial Statements are presented in USD and all values are rounded to the nearest thousand ('000), except when otherwise indicated. This rounding may have impact on the total sum. The accounting policies adopted are consistent with those followed in the preparation of the Company's Annual Consolidated Financial Statements for the period ended 31 December 2024.

2. Quarterly statements

	Q1	Q4	Q3	Q2	Q1
	2025	2024	2024	2024	2024
Net sales	202,786	224,781	213,528	216,727	199,852
Cost of goods sold	(75,020)	(82,663)	(79,916)	(78,192)	(79,418)
Gross profit	127,766	142,117	133,612	138,535	120,435
Gross profit margin	63%	63%	63%	64%	60%
Other income / (expenses)	367	(86)	123	126	236
Sales and marketing expenses	(78,057)	(80,628)	(75,333)	(78,882)	(76,307)
Research and development expenses	(10,569)	(11,005)	(9,498)	(10,481)	(9,848)
General and administrative expenses	(17,280)	(18,532)	(16,263)	(16,072)	(19,097)
EBIT	22,227	31,867	32,641	33,225	15,419
Net financial expenses	(7,181)	(8,041)	(5,171)	(7,543)	(5,174)
Share in net profit of associates	613	1,055	668	878	739
EBT	15,659	24,882	28,138	26,559	10,984
Income tax	(3,631)	(6,263)	(6,165)	(6,493)	(2,682)
Net profit	12,027	18,619	21,973	20,066	8,302
EBITDA	36,467	46,502	46,568	47,040	29,016
EBITDA margin	18%	21%	22%	22%	15%
EBITDA before special items	36,467	46,502	46,568	47,040	33,154
EBITDA margin before special items	18%	21%	22%	22%	17%

3. Net Sales

	Q1 2025	Q1 2024
Sales by geographical segment:
EMEA	101,471	97,584
Americas	85,171	87,361
APAC	16,144	14,908
Total	202,786	199,852
Sales by business segment:
Prosthetics & Neuro Orthotics	111,142	105,066
Bracing & Supports	35,007	35,905
Internal product sales	(8,879)	(8,377)
External product sales	137,270	132,594
Patient Care	65,516	67,258
Total	202,786	199,852

4. Sales and expenses split by main currencies

		Q1 2025
	LCY	USD	%
Sales
USD	76,462	76,462	38%
EUR	58,689	61,741	30%
ISK	132,981	961	0%
Nordic curr. (SEK, NOK, DKK)		24,109	12%
Other (GBP, AUD, CAD & Other)		39,513	20%
Total		202,786	100%
COGS and OPEX
USD	74,185	74,185	41%
EUR	40,065	42,149	23%
ISK	2,941,578	21,249	12%
Nordic curr. (SEK, NOK, DKK)		23,019	13%
Other (GBP, MXN, CAD & Other)		19,957	11%
Total		180,559	100%
	LCY	Q1 2024 USD	%
Sales
USD	77,944	77,944	39%
EUR	54,906	59,618	30%
ISK	110,906	808	0%
Nordic curr. (SEK, NOK, DKK)		23,319	12%
Other (GBP, AUD, CAD & Other)		38,163	19%
Total		199,852	100%
COGS and OPEX
USD	72,074	72,074	39%
EUR	41,949	45,550	25%
ISK	3,071,453	22,366	12%
Nordic curr. (SEK, NOK, DKK)		22,538	12%
Other (GBP, MXN, CAD & Other)		21,905	12%
Total		184,433	100%

Currency split is derived by using best available information at each time.

5. Property, plant and equipment

	Leasehold	Machinery &	Office	Computer
2025	improvements	equipment	equipment	equipment	Total
Cost
At 1 January	51,273	80,116	14,939	13,941	160,269
Additions	763	1,898	148	880	3,689
Eliminated on disposal	(43)	(89)	(14)	(10)	(157)
Exchange rate differences	667	452	401	277	1,798
At 31 March 2025	52,659	82,377	15,473	15,088	165,598
Depreciation
At 1 January	19,654	50,499	9,850	8,442	88,445
Charge for the period	1,352	1,978	386	897	4,613
Eliminated on disposal	(21)	(49)	(14)	(2)	(86)
Exchange rate differences	383	239	250	189	1,061
At 31 March 2025	21,368	52,667	10,472	9,526	94,033
At 31 March 2025	31,292	29,710	5,001	5,562	71,565
Depreciation classified by functional category:				Q1 2025	Q1 2024
Cost of goods sold				2,613	2,371
Sales and marketing expenses				871	989
Research and development expenses				263	191
General and administrative expenses				866	970
Total				4,613	4,521

6. Leases

Right of use assets

	Buildings &	Machinery &
2025	sites	equipment	Total
At 1 January	123,789	4,012	127,802
Additions and renewals	11,177	450	11,627
Depreciation charge for the period	(6,153)	(586)	(6,740)
Exchange rate differences	3,352	177	3,530
At 31 March 2025	132,165	4,053	136,219
Depreciation classified by functional category:		Q1 2025	Q1 2024
Cost of goods sold		2,583	2,333
Sales and marketing expenses		2,120	1,166
Research and development expenses		729	700
General and administrative expenses		1,308	1,847
Total		6,740	6,046

7. Goodwill

	31.3.2025	31.12.2024
At 1 January	776,306	690,855
Business combinations	0	104,489
Exchange rate differences	12,943	(19,038)
At end of period	789,249	776,306

8. Other intangible assets

	Customer &	Patents &
2025	distribution relationships	development costs	Trademarks	Software & other	Total
Cost
At 1 January	36,701	32,214	8,156	63,175	140,246
Additions	0	97	8	494	599
Additions - internally generated	0	0	0	1,884	1,884
Exchange rate differences	900	100	213	73	1,286
At 31 March 2025	37,600	32,411	8,377	65,627	144,015
Amortization
At 1 January	9,393	9,789	523	23,896	43,601
Charge for the period	806	522	8	1,551	2,887
Exchange rate differences	129	43	0	32	204
At 31 March 2025	10,329	10,354	531	25,479	46,692
At 31 March 2025	27,272	22,057	7,846	40,148	97,322
Amortization classified by functional category:				Q1 2025	Q1 2024
Cost of goods sold				245	449
Sales and marketing expenses				1,821	1,302
Research and development expenses				396	405
General and administrative expenses				426	874
Total				2,887	3,030