Financial Data and Key Metrics Changes - Order intake grew by 6%, building on a 9% increase from the previous year [6] - Comparable sales increased by 1%, with a margin expansion of 130 basis points to 12.4% [7][32] - Adjusted EBITA margin range increased to between 11.3% and 11.8% for 2025, reflecting a 50 basis points increase [7][39] - Free cash flow for the full year is expected to be between €200 million and €400 million [8][40] Business Line Data and Key Metrics Changes - Diagnosis and Treatment (D&T) comparable sales decreased by 1% due to a high comparison base, but EBITA margin improved by 130 basis points to 13.5% [26][27] - Connected Care saw a 1% decline in comparable sales, with an EBITA margin improvement of 160 basis points to 10.4% [28] - Personal Health experienced strong growth across most geographies, although EBITA margin declined by 170 basis points to 15.2% due to increased costs [30] Market Data and Key Metrics Changes - Strong double-digit growth in North America and growth geographies for order intake [8][10] - China showed subdued consumer sentiment, impacting Personal Health sales, but there are signs of recovery [18][23] - Overall growth was supported by growth geographies, offset by a decline in China [31] Company Strategy and Development Direction - The company is focused on accelerating profitable growth and unlocking the full potential of its segments [42] - Emphasis on innovation and productivity measures to drive gross margins and operational efficiency [7][34] - Plans to host a Capital Markets Day in February to outline the next phase of strategy [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of the year, supported by order intake momentum and a robust order book [43] - The tariff landscape remains dynamic, with expected impacts on margins in the second half of the year [39][40] - Management remains cautious about the Chinese market but sees potential for recovery [23][64] Other Important Information - The company has made significant progress in quality management and supply chain reliability, achieving an all-time high service level of 86% [21][20] - The company has achieved €2.1 billion in savings since the start of its three-year plan in 2023 [33] Q&A Session Questions and Answers Question: Can you talk about the improvement in D&T margins? - Management noted a 130 basis points margin expansion driven by gross margin improvements from innovations and productivity measures [49][50] Question: Why have you only banked the tariff improvement and not the EBITA beat in the quarter? - Management indicated that they are happy with the outlook revision but need to accelerate margin expansion in the second half while absorbing tariff impacts [51][52] Question: Can you unpack the decline in Connected Care in the quarter? - The decline was primarily driven by a low single-digit drop in monitoring, but management sees strong demand and order intake growth [53][54] Question: How far along are you in the European market on the system side versus prior to the recall? - Management stated it is too early to provide specific market share numbers but is rebuilding momentum in the market [57] Question: Can you provide color on the growth in ultrasound revenue? - Management indicated slight declines in ultrasound growth but expects performance to strengthen in the second half due to new launches [100] Question: How much of the advertising spend in Personal Health was in price? - Management clarified that pricing in Personal Health is broadly flat, with advertising aimed at driving innovation rather than price reductions [90]

Financial Data and Key Metrics Changes - Order intake grew by 6%, building on a 9% increase from the previous year [5] - Comparable sales increased by 1%, with a margin expansion of 130 basis points to 12.4% [6][30] - Adjusted EBITA margin increased to between 11.3% and 11.8%, reflecting a 50 basis points increase due to recent tariff developments [6][37] - Free cash flow is expected to be between €200 million and €400 million for the full year [7][38] Business Line Data and Key Metrics Changes - Diagnosis and Treatment (D&T) saw a 1% decrease in comparable sales, with strong performance in Image Guided Therapy [25][26] - Connected Care experienced a 1% decline in comparable sales, primarily due to a low single-digit drop in monitoring [27] - Personal Health delivered strong growth across most geographies, although there was a decline in China due to inventory destocking [28][17] Market Data and Key Metrics Changes - North America showed sustained double-digit growth in order intake, while China is recovering slowly with increased tender activity [7][22] - The overall growth was supported by growth geographies, particularly in Europe and Latin America [29] - Customer demand in North America remains strong, with hospitals seeking productivity solutions [20][90] Company Strategy and Development Direction - The company is focused on simplifying operations and enhancing productivity, with a goal of achieving €800 million in productivity savings by 2025 [31][32] - A Capital Markets Day is planned for February 2026 to outline the next phase of the company's strategy [40] - The company aims for mid-single-digit growth and mid-teens margins beyond 2025 [40][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of the year, supported by order intake momentum and a robust order book [41] - The tariff landscape remains dynamic, with expected impacts on margins in the second half of the year [36][38] - Management remains cautious about the Chinese market but sees potential for recovery [62] Other Important Information - The company has made significant progress in quality management, reducing field actions and product updates by approximately 20% year-to-date [18] - Service levels reached an all-time high of 86%, improving by more than 10 percentage points year-on-year [19] Q&A Session Summary Question: Can you talk about the improvement in D&T margins? - Management noted a 130 basis points expansion in D&T margins, driven by gross margin improvements and productivity measures [46] Question: Why have you only banked the tariff improvement and not the EBITA beat in the quarter? - Management indicated that they are happy with the outlook revision but need to accelerate margin expansion in the second half while absorbing tariff impacts [49] Question: Can you unpack the decline in Connected Care in the quarter? - The decline was primarily due to a low single-digit drop in monitoring, but demand remains strong with significant partnerships in North America [51][52] Question: How far along are you in the SKU reduction process? - Management stated that SKU reduction is a multiyear process, with ongoing progress across all modalities [105] Question: What parts of the current strategy have been working well? - The company has improved control over patient safety, quality, and supply chain, which has contributed to order intake growth [110]