20 October 2025 Global Medical Technologies Global Medtech: The Long View on China... slides and transcript from our webinar Lisa Bedell Clive +44 207 676 7256 lisa.clive@bernsteinsg.com Susannah Ludwig +41 582 723 127 susannah.ludwig@bernsteinsg.com Delphine Le Louet +33 1 42 13 92 93 delphine.le-louet@bernsteinsg.com Lee Hambright +1 917 344 8429 lee.hambright@bernsteinsg.com Estelle Pang +44 207 676 7646 estelle.pang@bernsteinsg.com Richard Hombach +44 207 762 1858 richard.hombach@bernsteinsg.com Deeksha ...

Hearing Loss Prevalence and Impact - By 2050, it is estimated that one-third of the population will suffer from a hearing problem [1] - Approximately 15 亿 (1500 million) people worldwide currently suffer from hearing loss [4] - By 2050, it is projected that 25 亿 (2500 million) people will have hearing problems [5] - Among every 1000 children born, 4 face hearing problems from birth [6] - Undetected hearing loss can lead to social isolation, impacting personal and family life [4][15] Early Detection and Intervention - Hearing problems often go unnoticed in children due to lack of screening mechanisms at birth [7] - Early detection and diagnosis are crucial to prevent speech development issues and ensure a normal life [8][9][10] Hearing Aid Technology and Misconceptions - Hearing loss can happen at any age, not just in old age, due to increasing noise pollution and earphone usage [16][17] - Hearing aids do not cause permanent hearing loss and are now technologically advanced with features like Bluetooth connectivity, AI, and fall detection [18][19][20] - Modern hearing aids are often invisible, making hearing loss more noticeable than the devices themselves [18][21] Prevention and Awareness - The "60/60 rule" is recommended: limit earphone volume to 60% or usage to 60 minutes with breaks [22] - Using noise-canceling earplugs in noisy environments like nightclubs can protect hearing [23] - Regular annual hearing checkups are essential for early detection and management of hearing loss [24][25]

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $132 million, at the high end of the guided range, with EPS of $0.18, also at the midpoint of guidance [11][19] - Gross margins for the MedTech and Specialty Audio segment were 48.7%, down 450 basis points year-over-year, primarily due to a supply agreement impacting margins [19] - Precision Devices segment revenues were $73 million, flat compared to Q4, with gross margins at 35.7%, unchanged from the previous year [13][20] Business Line Data and Key Metrics Changes - MedTech and Specialty Audio revenue was $60 million, slightly up year-over-year but seasonally down from Q4 [11][19] - Precision Devices segment saw a flat revenue performance, with production challenges in the specialty film line being addressed [13][20] - The company expects year-over-year revenue growth to accelerate in Q2 2025, driven by strong demand in MedTech and Specialty Audio [12][17] Market Data and Key Metrics Changes - The company estimates that less than 5% of revenue is subject to current tariffs, with less than 3% of cost of goods sold impacted [7][8] - Inventory levels at distributors have normalized to 3-3.5 months, indicating increased order activity [34][52] - The company is seeing strong bookings trends across most end markets, particularly in Precision Devices [15][52] Company Strategy and Development Direction - The company is focused on growth in 2025, with strong design wins and increasing backlog across its product portfolio [17] - There is an emphasis on exploring acquisition opportunities while maintaining manageable debt levels [16][22] - The upcoming Investor Day will detail future growth plans and competitive advantages [17][60] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the tariff environment but believes the company is well-positioned for growth despite potential impacts [5][10] - The outlook for the MedTech and defense sectors remains strong, with essential devices expected to maintain demand [32][33] - Management anticipates a stronger second half of 2025, driven by improved capacity utilization and demand recovery [41][42] Other Important Information - The company repurchased $5 million in shares and reduced debt by $15 million in Q1 2025 [16][22] - Capital spending is projected to be $7 million in Q2, with full-year capital spending expected to be 5% of revenues [24] Q&A Session Summary Question: Overall end market customer exposure and outlook - Management indicated no change in demand and higher expectations for Q2, particularly in essential devices like pacemakers and hearing aids [31][32] Question: Updates on the $75 million capacitor order - A substantial prepayment was received, indicating strong customer commitment with no expected delivery impacts [37] Question: Gross margin trajectory for Q2 and Q4 - Management expects significant sequential improvement in gross margins, projecting an exit range of 45% to 47% by year-end [40][44] Question: Potential for gaining market share from competitors - Management noted increased inquiries from customers considering switching suppliers due to tariff impacts, particularly in the industrial space [46][47] Question: Commentary on bookings and receivables - Bookings were strong, with inventory levels at distributors decreasing, indicating rising demand [52][56]