ANNUAL REPORT
2025
Annual Report 2025
OVERVIEW
STRATEGY
INNOVATION
PERFORMANCE
SUSTAINABILITY STATEMENT
FINANCIAL STATEMENTS
Consolidated Financial Statements 103
GOVERNANCE
MARKETS
49
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OVERVIEW
Embla Medical in Brief
Embla Medical is a leading global provider of
innovative mobility solutions that help people live
a Life Without Limitations®. Founded as Össur in
1971, Embla Medical is now home to industry-leading
brands such as Össur, Fior & Gentz, College Park and
ForMotion.
We Improve People’s Mobility
Össur is a leading global provider of prosthetics
and bracing & supports solutions. Fior & Gentz is
an innovative developer of neuro orthotics, and
College Park designs and manufactures lower
limb prosthetics. ForMotion patient care clinics
are spread across multiple countries and provide
patients with compassionate care from world-class
healthcare professionals. Embla Medical is focused
on reaching more people with our mobility solutions
and contributing to the advancement of the Orthotic
& Prosthetic industry in a sustainable manner. Our
commitment and responsibility extend to our people
and our planet as we embrace diversity and recognize
the impact we have on the world around us.
Embla Medical is listed on Nasdaq Copenhagen,
has operations in over 40 countries with around
4,500 employees worldwide.
Our Purpose
Embla Medical is a purpose-driven company
dedicated to improving people’s mobility through
the delivery of Prosthetics, Neuro Orthotics, Bracing
& Supports and Patient Care.
Our passionate commitment to improving people’s
quality of life through innovation and patient
outcomes has been the core of our success.
Helping people live a
Life Without Limitations®
is why we exist as a company.
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HONESTY
Stay True
We show respect by adhering to facts and reality,
fulfilling promises and claims, and admitting failures.
We nurture honest communication throughout the
company by sharing information and respecting each
other’s time and workload.
FRUGALITY
Make Every Step Count
We use resources wisely. The company aims to
minimize costs across all areas of its business through
effective communication, preparedness, planning and
optimized processes.
COURAGE
Aim Higher
We are open to change and constantly strive
for improvement. We challenge unwritten rules,
show initiative, and take calculated risks, while at
the same time, take responsibility for our ideas,
decisions and actions.
OUR VALUES
Our Values
Embla Medical’s core values of Honesty, Frugality and Courage serve as the foundation and driving force behind
the company’s success, guiding employees across the organization in their day-to-day activities and decision-
making. At Embla Medical we believe that by honoring the values, the company will achieve long-term sustainable
success, furthering our mission of improving people’s mobility.
Our Sustainability Commitment
We apply our core values in our approach towards sustainability.
We show courage in setting ambitious goals and are honest about
where we stand, acknowledge the challenges we face and what we
can improve. We practice frugality by using our resources wisely
and efficiently. Our sustainability commitment is captured under
the theme of Responsible for Tomorrow®, understanding that the
decisions and actions we take today will impact future generations.
Vision
Enable Life Without Limitations
Mission
We Improve People’s Mobility
Goal
Serve More People for Profitable Growth
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OVERVIEW
Letter from the CEO
2025 was a year of meaningful progress for Embla
Medical. Across geographies and patient care settings,
the need for our solutions remains as strong as ever, and
once again, our teams delivered with focus and purpose.
We achieved 6% organic growth driven by strong
performance in Prosthetics & Neuro Orthotics and
delivered a robust EBITDA margin of 20%, reflecting
operational efficiency and effective cost control. These
results underscore the strength of our business model
and our ability to operate in a dynamic environment.
We continued to advance our Growth’27 strategy
through a combination of innovative solutions, market
expansion, and operational execution. A key milestone
during the year was the acquisition of a majority share
in Streifender ortho.production, positioning Embla
Medical as a full-range provider. This investment
strengthens our presence in key markets and expands
our reach in less developed healthcare markets –
enabling us to better support clinicians, customers
and, most importantly, reach more patients.
Innovation remains at the heart of our progress.
In 2025, we introduced new solutions across our
portfolio of leading global brands: Össur, College Park
and Fior & Gentz. Our innovations have improved
millions of lives and created lasting value for patients
and healthcare systems. Yet, there is so much more we
can do to reach more people with even more impactful
solutions, and we are fortunate to have one of the most
innovative teams in the industry leading the way.
We also strengthened our foundation in Patient Care
following a year with lower-than-expected growth,
as we undertook important changes to better support
patients and clinicians over the long term. With the global
rollout of our ForMotion brand and the implementation
of new performance management systems nearing
completion, our focus is on creating the best possible
environment for clinicians to deliver exceptional patient
care and on ensuring optimal outcomes for patients.
These efforts position our Patient Care business to
return to a stronger growth trajectory in 2026.
One particularly meaningful milestone was the opening
of a new clinic in Kyiv. Establishing a presence in Ukraine
underscores our commitment to ensuring access to
high-quality mobility care and reflects our belief that
mobility is fundamental to dignity and independence.
During the year, we were honored to receive multiple
awards and accolades, not only for our products
and innovation capabilities but also our broader
commitment to responsible growth. This includes being
named one of TIME Magazine‘s World‘s Best Companies
in Sustainable Growth. These recognitions are a
testament to the dedication of our employees and the
trust placed in us by customers, partners, and end-users
around the world.
While the global environment remains challenging, we
stay grounded and focused on what we can control.
What has not changed, and will not change, is the need
for what we do. People around the world continue to
count on us to improve their mobility, and our purpose
remains as strong as ever.
As we look ahead, we remain confident in our strategy
and our ability to navigate change while creating value for
patients, customers, employees, healthcare systems and
shareholders. The underlying drivers of demand - an aging
population, rising incidence of mobility-limiting conditions,
and growing expectations for quality of life, remain firmly
in place. Our focus is clear: putting patients first. We will
continue to innovate, collaborate, and invest in solutions
that help people live life without limitations.
I would like to sincerely thank our employees,
customers, end-users, and shareholders for their trust
and continued collaboration. Together, we are shaping
a future where more people can live a life with greater
mobility, independence, and confidence.
Sveinn Sölvason
President and CEO
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Celebrating
Excellence
2025 was marked by achievements and accolades that reflect
our commitment to innovation, quality, and meaningful impact.
These honors recognize the dedication of our teams and the
trust of those we serve.
Embla Medical receives Iceland’s Presidential
Export Award 2025, recognizing the company’s
success as an international business
Össur Americas Customer Care named
a finalist for the “Best in Class Contact
Center” award at Customer Contact
Week (CCW)
Embla Medical named one of the World’s Best
Companies in Sustainable Growth 2026 by
TIME Magazine for the second year in a row
Forbes Magazine names Embla Medical to its
first-ever global Accessibility 100 list, recognizing
the company’s history of innovative prosthetics,
neuro orthotics and bracing solutions,
and high-quality patient care services
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2025 Financial Highlights
20%
EBITDA Margin
2025 Sustainability Highlights
929m
Highest Ever
Sales Recorded
(USD)
+6%
Organic Sales
Growth
+7%
Local Currency
Growth
(including acquisitions)
-13%
Emissions Intensity
2024/2025
Market Based Emissions
(tCO
2
e/mUSD)
49% : 51%
Gender Ratio
Female : Male
7.9 of 10
Employee
Engagement Index
4.0
Employee Incident
Rate
Total Recordable Incident Rate
(TRIR) per 500 FTEs
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OVERVIEW
Business Segments
Our Business Segments
Embla Medical operates within three business segments of the non-invasive orthopaedics market;
Prosthetics & Neuro Orthotics, Bracing & Supports and Patient Care.
Prosthetics & Neuro Orthotics
51% of Total Sales
Our prosthetics product portfolio, marketed under the Össur and College Park brands, includes a range of lower
and upper limb prosthetic components. This offering now also includes Streifeneder orthopaedic materials and
equipment, added through our investment in Streifeneider ortho.production.
The portfolio spans solutions that support individuals with lower activity levels who may struggle to balance safety,
comfort, and mobility, as well as advanced solutions designed to empower more active users to excel and engage
in high-impact activities.
Our neuro orthotics product portfolio, marketed under the Fior & Gentz brand, includes a range of premium knee and
ankle orthotic joints to create innovative custom-made orthotics for patients experiencing gait impairments resulting
from neurological conditions.
SUB-SEGMENT
END-USER PROFILE
IMPROVING MOBILITY
Mechanical Products
People living with lower and upper
limb loss or limb difference
Broad product offering of prosthetics and
neuro orthotics
Bionic Products
People living with lower and upper
limb loss or limb difference
Advanced
microprocessor
-controlled feet, knees,
hands, fingers, and neuro orthotic joints
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Bracing & Supports
16% of Total Sales
Össur offers a broad range of mobility solutions for acute injuries and osteoarthritis.
Össur’s osteoarthritis (OA) solutions are designed to enhance quality of life, reduce pain, and improve mobility
for people living with osteoarthritis. Össur offers the Unloader One® range of knee braces that relieve pain from
knee osteoarthritis, as well as the Unloader® Hip which is designed to reduce pain by optimizing load dispersion
for patients suffering from mild and moderate osteoarthritis of the hip.
SUB-SEGMENT
END-USER PROFILE
IMPROVING MOBILITY
Injury Solutions
People recovering from fractures, ligament
injuries or need post-operative treatment
Products stabilizing joints and improving
healing
OA Solutions
People living with Osteoarthritis (OA)
Non-surgical treatment by unloading
affected joint with braces
Össur’s portfolio of solutions for acute injuries are designed for people recovering from fractures, ligament
injuries or for those in need of post-operative treatment solutions. These solutions are designed to support
the healing process of bone and soft tissue injuries.
Patient Care (ForMotion)
33% of Total Sales
Embla Medical provides patients with world-class care through a global network of leading Orthotic & Prosthetic
(O&P) facilities, operating under the ForMotion brand. Each location is staffed by expert clinicians and highly
skilled professionals in mobility.
SUB-SEGMENT
END-USER PROFILE
IMPROVING MOBILITY
Prosthetics
People living with lower and upper limb
loss or limb difference
Fitting patients with lower and upper limb
prostheses
Orthotics
People living with neurological, gait, and
musculoskeletal conditions
Fitting patients with orthotics and assistive
devices
Our Geographical Segments
With operations in over 40 countries, Embla Medical’s industry-leading brands have global operations
in three regions:
2025 Regional Overview
HQ FTEs: ~700
APAC
8%
of total sales
USD 73 million
Organic growth: 11%
FTEs: ~200
EMEA
49%
of total sales
USD 457 million
Organic growth: 8%
FTEs: ~1,900
Americas
43%
of total sales
USD 399 million
Organic growth: 2%
FTEs: ~1,400
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Patient Care
Own O&P clinics and
independent providers
STRATEGY
Business Model
Our business is centered on improving people‘s mobility so they can live a Life Without Limitations®. We develop,
manufacture and distribute a wide range of prosthetic, neuro orthotic and bracing & supports solutions, and we
serve patients in need of various mobility solutions in our patient care facilities across the globe.
Innovation
New product
introductions every year
Manufacturing
Off-the-shelf and
customized solutions
Prescribers and Payers
Over 90% of products
and services reimbursed
Patients
Patient-centric
business model
Sales and Marketing
Mainly direct sales
but also distribution
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Patients
The patients we serve include people with lower and upper limb loss resulting from conditions such as vascular
disease, including diabetes, as well as cancer, trauma and congenital defects. Our patient population also
includes individuals who require off-the-shelf or customized orthotic solutions due to mobility impairments
related to neurological conditions, osteoarthritis of the knee or hip, or musculoskeletal conditions present at
birth or caused by illness or injury, or those who require enhanced healing following surgery or injury.
Growing Number of Amputees Receiving Prosthetics
Prosthetic Patients
Source: Embla Medical Management estimates
The primary cause of lower limb amputation is vascular-related disease. Market data, however, shows that
the proportion of people living with limb absence due to trauma, cancer and congenital defects is higher than
incidence rates alone would suggest. This is because individuals with lower limb loss resulting from vascular-
related diseases have a shorter average life expectancy than those whose limb loss is caused by other factors.
This underscores the potential opportunities in catering to the needs of chronic patients who need lifelong
service and explains why 70-80% of Patient Care revenue is recurring.
Source: Embla Medical Management estimates
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Innovation
Embla Medical develops and manufactures prosthetic, neuro orthotic and bracing & supports solutions, from
idea to finished product. With every innovation, our goal is to deliver cost-effective mobility solutions that
create value for patients and healthcare systems worldwide. To obtain independent clinical evidence and health
economic data, Embla Medical initiates and supports clinical studies in cooperation with leading scientists,
institutions, and healthcare professionals in the field.
As part of our ambition to remain at the forefront of innovation and new technology, we participate in externally
funded projects, collaborating with partners across industry and academia. We contribute to initatives involving
world-class scientists engaged in cutting edge research. This enables us to jointly shape the technologies of the
future with the mission of improving people’s mobility.
Manufacturing and Quality
Embla Medical maintains a strong global manufacturing function. At Embla Medical, there is a continuous strive
for efficiency, which includes finding ways to optimize the manufacturing process and investments have been
made to make the manufacturing platform increasingly scalable.
Manufacturing of prosthetic solutions takes place in Iceland, Scotland, Germany, United States and Mexico.
Neuro orthotics are manufactured in Germany, and manufacturing of bracing solutions takes place in Mexico
with outsourcing of soft goods to China. We also operate a few smaller manufacturing and assembling facilities
in select countries.
Reykjavik (IS)
Livingston (SC)
Lüneburg (DE)
Olympia (WA, US) Celle (DE)
Warren (MI, US)
Emmering (DE)
Newburgh (NY, US)
Orlando (FL, US)
China
Tijuana (MX)
Manufacturing Locations
We place great emphasis on quality, which is an intrinsic part of our processes. Embla Medical entities maintain
certified Quality Management Systems (QMS) based on ISO standards, ensuring compliance with applicable
medical device regulations in the countries where we operate.
Sales and Marketing
Products are delivered to users of our products and solutions through healthcare providers who specialize in
assisting individuals who suffer from impaired mobility. In Prosthetics and Neuro Orthotics, these customers are
Orthotic & Prosthetic (O&P) clinics and in Bracing & Supports, it is a combination of O&P clinics, hospitals, and
surgery centers. Our customers claim reimbursement from private or public insurance as the vast majority of
Embla Medical’s products and services are reimbursed. We have operations in around 40 countries and largely
sell our products through our own direct sales network.
Patient Care
Embla Medical products are serviced through a global network of patient care clinics. Moreover, in selected
countries, Embla Medical manages its own Patient Care facilities under the ForMotion brand. Each location is
staffed by expert clinicians and highly skilled mobility professionals. The clinics help people with limb loss or limb
difference, and those in need of gait and musculoskeletal support - improving their mobility and quality of life.
Prescribers and Payers
Prescribers include healthcare professionals who prescribe products and services based on the clinical indication
of their patients. These include orthopaedic surgeons, non-surgical physicians, rehabilitation, and emergency
physicians as well as other professionals providing medical diagnosis.
Payers include healthcare systems, insurance companies and individuals. In most cases, when an individual has
been fitted with a product, Embla Medical’s customers claim reimbursement from the relevant public institutions
or private insurance companies. Around 90% of Embla Medical’s product sales and services are estimated to be
reimbursed by a third party. Generally, Embla Medical’s sales in the developed markets are mostly reimbursed
while sales in emerging markets are mostly paid out-of-pocket.
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STRATEGY
Growth’27 Strategy
Embla Medical introduced its five-year Growth’27 strategy in 2023. The focus of the Growth’27 strategy
is to reach more people in need of mobility solutions.
The strategy addresses key industry themes and supports our transformation into an increasingly patient-centric
company. It is our aim to drive accelerated organic growth and continue generating value for individuals and
healthcare systems.
Unlocking a Larger Playing Field as an Increasingly
Patient-Centric Organization
Over the past years, we have been transitioning from a product-focused company to an increasingly patient-
centric organization. This shift primarily focuses on chronic mobility categories, where individuals require lifelong
solutions, as well as on those who have suffered acute injuries requiring short-term solutions. This transition
presents opportunities to gain direct access to patients, payers, and providers while addressing a broader
set of chronic mobility categories.
Growth Drivers
Patient Reach, Innovative Solutions, and O&P Value Creation are the three growth drivers that form the basis
of Growth’27. These growth drivers address our ambition to become increasingly patient driven and to cater
for the needs of individuals with chronic mobility challenges. In other words, they guide our strategic priorities
within Prosthetics, Neuro Orthotics and Patient Care.
In Bracing & Supports, we will continue to drive growth in line with our “Bracing Simplified” strategy, by being
a trusted partner for our customers through the delivery of a simplified and strong product portfolio.
Embla Medical‘s M&A strategy is also integral to the execution of Growth’27 as it involves actively seeking strategic
acquisitions to support our vision of enabling Life Without Limitations®. In addition, our foundational pillars of
Sustainability, People, and Scalability are the backbone of successfully implementing our strategic ambitions.
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Transitioning from being a product company
to an increasingly patient-centric organization
Our Growth’27 Strategy
*Subject to potential M&A and special items
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Patient Reach
Patient Reach is about creating value by improving our ability to reach and serve patients effectively. The patient
population we focus on, individuals with chronic mobility impairments, remains widely underserved in terms of access to
quality mobility solutions. For instance, globally, only one in three new amputees currently receives a prosthetic device.
Access to proper care and products differs greatly between countries, influenced by the maturity of infrastructure
and healthcare systems. Patient Reach is about collaborating with our primary stakeholders in each market to
reach more patients and increase access to high-quality mobility solutions. Our primary stakeholders are classified
into four segments: Certified Prosthetists & Orthotists (CPOs), Payers (public and private insurance companies),
Referral sources (physicians and rehabilitation doctors), and Patients.
Innovative Solutions
Embla Medical‘s history is deeply rooted in innovation. We integrate innovation into all our actions, creating value
for our customers through functional trade-up and ease of doing business. Through the Growth‘27 strategy,
our focus is to drive innovation across the entire value chain and offer lifelong health services, ultimately
improving the quality of life for the patients who rely on our products and services.
We aim to capture commercial opportunities with innovative solutions by pursuing advancements in technology
and clinical applications that can be perceived as transformational for our patients. We channel our efforts into
developing solutions that not only meet the current lifestyle needs of patients but also provide them with the
prospect of sustained mobility over the long term. To ensure patients have access to our products and services,
we continue to prioritize the collection of clinical evidence and engage with payers and reimbursement systems
around the world.
Our innovation efforts enhance our Patient Reach through distinct growth drivers: contribute to higher fitting
rates, increase bionic penetration, drive functional trade-up and grow Emerging Markets.
O&P Value Creation
O&P Value Creation forms the third pillar of the Growth’27 strategy, connecting Patient Reach and Innovative
Solutions. It revolves around driving productivity across the entire value chain, with the aim of attracting and better
serving a greater number of patients in O&P clinics, while becoming a stronger partner to our O&P customers.
Over the last decade, we have strategically expanded our Patient Care portfolio, focusing on defining key
processes and leveraging economies of scale. Today, our Patient Care facilities span 12 countries, with
approximately 200 locations across all regions.
Most patients visiting O&P clinics face chronic mobility challenges, which often lead to the formation of strong
bonds between the patient and their Certified Prosthetist & Orthotist (CPO). While some solutions offered are
off-the-shelf, others are more complex and require frequent clinic visits. In both cases, maintaining a consistently
high standard of care is crucial to delivering enhanced value to patients and underscores the importance
of having a robust clinic presence.
A key element in O&P Value Creation is driving innovation and productivity in the delivery of mobility solutions
within our Patient Care facilities. The end-goal is to achieve better patient outcomes, enhanced service, and
an improved overall patient experience, resulting in higher-quality care and an increased number of patients
seeking care at our clinics.
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Bracing Simplified
In the Bracing & Supports segment, our robust product portfolio addresses fundamental healthcare challenges
for both acute and chronic injuries.
We began implementing our Bracing Simplified strategy in 2021 and continue to focus on the four key pillars
of the strategy: Identity, Customer Convenience, Product Confidence and Responsibility. Our goal with
Bracing Simplified is to have a strategy that extends beyond innovation alone, recognizing the increasing
costs and diminishing effectiveness of relying solely on innovation to drive growth within the bracing industry.
Furthermore, our aim is to establish a framework that enhances efficiency and streamlines our operations.
Acquisitions
We will continue to pursue growth opportunities through strategic acquisitions aligned with our vision of enabling
Life Without Limitations®. Our M&A focus will be on acquisitions that enable us to reach and serve more patients,
through a combination of market access, technology and portfolio expansion.
In September 2025, Embla Medical closed a majority investment in Streifeneder ortho.production,
an international developer and supplier of orthopaedic mobility solutions, employing around 100 people.
In addition to its offerings of prosthetic and orthotic components, Streifeneder ortho.production also supplies
orthopaedic materials and equipment to the O&P industry.
Financial Ambition
Sales Growth
7-10% = 5-7% + 2-3%
Local currency growth Organic growth Acquisitive growth
p.a. on average p.a. on average p.a. on average
EBITDA Margin Before Special Items
■
The ambition is to gradually increase the EBITDA margin before special items.
■
EBITDA margin expansion is subject to acquisitions and currency movements, in addition to changes
in the business mix.
Capital Allocation
■
We will prioritize growth opportunities, value-adding investments and acquisitions, while maintaining
a healthy balance sheet with a target range of 2.0-3.0x NIBD/EBITDA before special items.
■
Excess capital will be returned to shareholders via purchase of own shares.
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MARKETS
Markets and Trends
Embla Medical is a leading global provider of
innovative mobility solutions that help people live
a Life Without Limitations®. Home to several leading
brands, Embla Medical is dedicated to improving
people‘s mobility by providing Prosthetics, Neuro
Orthotics, Bracing & Supports and Patient Care
through a global network of Orthotic & Prosthetic
facilities.
The Prosthetics
Product Market
Prosthetics include artificial limbs and related
products for people who were born with limb
loss or limb difference, or who have undergone
limb amputation. Through the Össur and College
Park brands, we provide a full range of premium
and standard lower and upper limb prosthetics,
including feet, knees, hands, fingers, liners, and
other components. The size of the global prosthetics
product market is estimated to be approximately
USD 2 billion. Embla Medical is the second largest
company operating in Prosthetics with a market
share estimated at around 25%. The growth rate
of the market is estimated to be 6-8%.
Growth in the prosthetics industry is driven by
volume and product mix, supported by a consistent
renewal and maintenance cycle for prosthetic
products, increasing fitting rates for prosthetics
patients, expanding reimbursement coverage,
the adoption of new innovative technologies for
reimbursement, and improved healthcare access
and disposable income in emerging markets.
The primary sales channel in the prosthetics
market is Orthotic & Prosthetic (O&P) clinics
(Patient Care clinics).
Pricing in the prosthetics product market is on
average relatively stable, with annual adjustments
influenced by inflationary trends and regional
reimbursement developments.
Prosthetics Product Market
Source: Embla Medical Management estimates
Note: Estimates only account for component sales from providers to suppliers, i.e. not clinical services
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The Neuro Orthotics Product Market
Neuro orthotics include products for people living with a mobility impairment as a result of stroke, spinal
cord injuries, multiple sclerosis, cerebral palsy, or other neurological conditions. Through the Fior & Gentz
brand, we provide a full range of premium orthotic joints for custom ankle foot orthoses (AFOs) and knee
ankle foot orthoses (KAFOs).
The size of the global neuro orthotics product market in which Embla Medical operates is estimated to be
approximately USD 500 million, and Embla Medical’s market share is estimated at around 6%. The growth
rate of the market is estimated to be 10-12%.
Growth in the neuro orthotics industry is driven by both volume and mix, supported by a consistent renewal
and maintenance cycle, increasing fitting rates, expanding reimbursement coverage, the acceptance of new
innovative technologies for reimbursement, and broader healthcare coverage.
Pricing in the neuro orthotics product market is generally stable, with annual adjustments influenced by
inflationary trends as well as region-specific reimbursement developments.
Neuro Orthotics Product Market
Source: Embla Medical Management estimates
Note: Estimates only account for component sales from providers to suppliers, i.e. not clinical services
The Bracing & Supports Product Market
Bracing & Supports include products used to provide support for both therapeutic and preventative
purposes. Össur provides a comprehensive line of products with a primary focus on osteoarthritis and injury
solutions, including devices that support the spine, knee, hip, foot, ankle, and hands.
The size of the global Bracing & Supports product market in which Embla Medical operates is estimated to
be approximately USD 3 billion, and Embla Medical’s market share is estimated at around 5%. The growth
rate of the market is estimated to be 2-3%.
Market growth is driven by healthy volume growth. Rising participation in amateur sports and higher general
activity levels, along with increased volumes of elective surgeries such as knee replacement procedures,
which drive demand for postoperative bracing, support ongoing growth. Market expansion is further
supported by the adoption of high-end innovative products, such as the Unloader® OA bracing products.
The primary sales channel in the Bracing & Supports market are Orthotic & Prosthetic clinics (Patient Care
clinics), hospitals, and orthopaedic clinics.
Price levels are relatively stable with annual adjustments influenced by inflationary trends and region-specific
reimbursement developments. In some markets, however, moderate price pressure exists for selected
product categories, particularly those with lower levels of innovation.
Bracing & Supports Product Market
Source: Embla Medical Management estimates
Note: Estimates only account for component sales from providers to suppliers, i.e. not clinical services
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The Patient Care Market
The Patient Care market consists of patient care clinics, often referred to as Orthotic & Prosthetic (O&P)
clinics, that provide services to patients with orthotic and prosthetic mobility needs.
The size of the global Patient Care services market is estimated to be approximately USD 15 billion.
Embla Medical is estimated to be the third or fourth largest company operating in the market,
with a market share of around 2%. The market’s growth rate is estimated at 3-5%.
Growth in the Patient Care services market is driven by both volume and mix, supported by a consistent
renewal and maintenance cycle, increasing fitting rates for orthotics and prosthetics patients, expanding
reimbursement coverage, the acceptance of new innovative technologies for reimbursement, and improved
healthcare coverage and disposable income in emerging markets.
Pricing in the market is determined by region-specific reimbursement systems and is, on average, limited
to moderate. Selected markets increase reimbursement rates up to inflationary levels, while most have
limited rate adjustments.
Patient Care Market
Source: Embla Medical Management estimates
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Orthopaedic Industry Stakeholders
In the orthopaedic industry, many stakeholders and decision makers are involved in the
purchasing decision. Stakeholders can be categorized into five groups.
Industry Trends Create Opportunities
Economic development around the world, along with and global macrotrends, is creating increased demand
and new opportunities for growth. We have selected six trends that positively impact the demand for Embla
Medical‘s products and services:
Prescribers
Healthcare professionals who prescribe products based on the
condition and clinical indication of the patient.
2
Providers
Healthcare professionals, such as CPO’s, doctors, and other
clinical specialists who provide patients with products.
3
Payers
Public and private insurance companies. Around 90% of Embla Medical
sales are reimbursed by a third party.
4
Influencers
Healthcare systems, insurance companies, medical associations,
patients and their families.
5
Patients
People who receive medical treatment and use our products and service
solutions. Also referred to as a user or end-user of our products.
1
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MARKETS
Streifeneder
ortho.production
In September 2025, Embla Medical announced
an agreement to invest in a majority share
(51% of the shares) in privately owned
Streifeneder ortho.production GmbH located
in Bavaria, Germany.
Streifeneder ortho.production is an international
developer and supplier of orthopaedic mobility
solutions, employing around 100 people. In addition
to its offerings of prosthetic and orthotic components,
Streifeneder also supplies orthopaedic materials
and equipment to the O&P industry.
The investment in Streifeneder is a solid strategy
for Embla Medical to become a full range provider
expanding our reach to a larger part of the global
O&P market including the Emerging Markets,
ultimately reaching more patients.
The majority investment in Streifeneder will also
strengthen Embla Medical’s presence in Germany,
the second largest O&P market in the world.
Streifeneder is estimated to grow in line with the
global prosthetics market in the range of 6-8% in
the near-term, in addition to realizing commercial
synergies by leveraging Embla Medical / Össur’s
global footprint.
Key Facts
■
Family-owned business (Bavaria, Germany)
■
Sales of EUR 25m in 2024 (~USD 29m)
■
Employing around 100 people
■
Key player in German O&P market
■
Strong in Prosthetics “value segment”
■
Solid O&P materials offering
Source: Embla Medical company data
Embla Medical - 2025 Annual Report
| 23
MARKETS
Leading the Future
of Patient Care
INTERVIEW WITH
Conal Harte
Executive Vice President, Patient Care
while honoring local expertise and heritage.
ForMotion represents a clear promise: access
to the highest standard of care in the industry,
wherever they are.
Q3:
The Patient Care business
delivered a period of lower growth in
2025. Why do you think this is and
how do you plan to turn this around?
A:
Our Patient Care business experienced lower than
expected growth, mainly in some of our more mature
markets. This can partly be ascribed to softness and
timing in patient volumes amid broader uncertainty,
especially in the US. At the same time, 2025 has
been a year of significant internal transformation.
Q1:
You are now 12 months into
your role as EVP Patient Care. What
motivated you to take on the role, and
how has your experience been so far?
A:
Having worked in the O&P industry since 2004,
I jumped at the opportunity to transition to Patient
Care. The field has evolved significantly in recent
years, and stepping into this role has been both
enlightening and energizing.
I have witnessed tremendous untapped potential
across our organization and am excited about what
we can achieve together as one global team.
Spending time face to face with teams in our clinics
around the world, seeing firsthand their relentless
focus on delivering the best possible care to
their patients, has been the most rewarding and
humbling experience of all.
Q2:
The ForMotion rebranding has
been a major initiative in 2025.
What was the background for this,
and what does it mean for the
organization and your patients?
A:
From late 2024 and throughout most of 2025,
we introduced a new unified brand identity,
ForMotion, across the majority of our Patient Care
facilities. The goal was to bring our network of O&P
clinics together under one cohesive brand.
Over the past 11 years, we have acquired many
clinics, each with its own unique identity. While this
individuality remains important, the time was right
to unite under the ForMotion brand and clearly
articulate what we stand for in Patient Care.
ForMotion has created a stronger sense of belonging
and connection, transforming us into a truly global
team with a shared global purpose and the power
to impact global change.
The transition has gone smoothly, credited
to meticulous planning and strong change
management. A key part of the process was
honoring the legacy of each local brand, retaining
what makes it unique while carrying that forward
into the new identity. These conversations were
essential in building local engagement and
identifying champions for the change.
ForMotion brings together some of the world‘s
best O&P clinics under a common purpose,
a shared goal, and a recognizable set of values.
The unified network will deliver comprehensive,
modern, and innovative care to our patients,
Alongside the ForMotion rebranding, we are
undertaking global system integrations to improve
operational efficiency and scalability. While these
initiatives are essential for long-term value creation
and sustainable growth, they have temporarily
impacted revenue and profitability. Returning Patient
Care to its historical growth levels is a top priority.
We have already launched focused performance
management initiatives to unlock the full potential
of the business, and I am confident that we are on
the right path.
Embla Medical - 2025 Annual Report
| 24
MARKETS
Growth Markets
INTERVIEW WITH
Gudjon G. Karason
President Growth Region
Q3:
The situation in Ukraine has
created a significant humanitarian
challenge. How can Embla Medical
help address the unmet need in
a conflict setting?
A:
As a result of the ongoing war, there are sadly
thousands of new amputees in Ukraine. Many are young
and veterans, and we have been encouraged
by the demand for high-end products. This requires
more funding and more clinical effort, but we see
a willingness from governments and private donors
to provide support during this difficult time.
As one of the leading players in the industry,
we want to be prepared when the war hopefully
soon comes to an end. We have recently established
Q1:
Can you describe Embla
Medical’s activities in Emerging
Markets and why these markets
represent a significant untapped
opportunity?
A:
Approximately 80% of new amputees globally
live in Emerging Market countries, yet these markets
still only represent a small share of Embla Medical’s
revenue. A key challenge is limited access to quality
healthcare, often compounded by little or no public
insurance coverage. In many regions, there is also
a lack of established supply chains and clinical
infrastructure, which restricts patients’ access to
prosthetic care.
Amputees in Emerging Markets are generally
younger and healthier, meaning the potential
benefit of receiving a prosthetic device, is, all else
equal, even greater. We see this as a substantial
opportunity as we establish a stronger presence
in these countries. We are expanding our activities
in existing markets through locally relevant
innovations and offerings, while also selectively
growing our footprint to reach more patients.
Q2:
You have highlighted India as
a Private Pay opportunity. Can you
elaborate on this strategic initiative?
A:
India is now the world’s most populous country
and has a correspondingly large amputee population.
Historically, many of these amputations have largely
been work- or trauma-related, but we are seeing a
shift toward vascular disease as a growing cause.
Despite the high number of amputations, fitting
rates remain low in many regions, preventing
patients, particularly younger individuals, from
returning to active lives and placing a significant
burden on society.
Our approach to unlocking this potential focuses
on addressing three key barriers: access, awareness,
and affordability. We aim to tackle these through
proprietary solutions combined with an agile and
innovative delivery model.
As a first step, we are launching a pilot clinic in
Delhi, taking a selective approach to both patient
groups and solution offerings to maximize positive
impact. While healthcare coverage remains
limited, we believe there is strong potential for
improvement in the near future.
and present with complex injuries, including multiple
limb loss and significant nerve damage. This has led to
greater than anticipated need for advanced solutions,
including bionic technologies.
Today, funding is available through a combination
of public sources and donations for both civilians
our first prosthetic clinic in Kyiv and will continue to
strengthen our presence through clinician training
and education. Over time, we plan to expand our
organization and clinical footprint in Ukraine and
offer our full portfolio of mobility solutions across
a broad range of patient needs.
Embla Medical - 2025 Annual Report
| 25
Emerging Markets at Glance
Emerging Markets represent over 80% of the new amputee volume worldwide. However, Emerging Markets only make up around 10%
of Embla Medical’s current sales, representing a material growth contributor with ample room for further growth.
Overview of the Emerging Markets Growth Rates in Emerging Markets
*Russia not included
*Our Emerging Markets growth calculation does not include Russia. Embla Medical has taken the decision
not to sell into Russia due to the ongoing war.
1) Embla Medical Market Intelligence Reports and News reports
Addressable Market in Emerging Markets
INNOVATION
Embla Medical - 2025 Annual Report
| 26
INNOVATION
Advancing Mobility
Through Innovation
Our next generation multi-articulating hand
introduces several unique features, and initial user
feedback has been very positive. In addition, our
AeroFit® liner, built on proprietary 3D-printed silicone
technology, significantly reduces humidity build-up
on the skin and will soon be available to conventional
socket users.
INTERVIEW WITH
André Rocha
Executive Vice President of Research & Development
Finally, within the growing neuro orthotics space,
we are advancing bionic ankle and knee solutions
with our Fior & Gentz team.
Q3:
Embla Medical is a recognized
innovation leader. How has the
competitive environment for product
development evolved?
Q4:
Bionics have been quite
transformative for many users.
What do you see as the next major
Q1:
André, you joined Embla Medical
less than a year ago as EVP R&D.
What attracted you to the role?
A:
Three things stood out. First, Embla Medical’s
mission and strong sense of purpose, making a
meaningful, positive impact on thousands of lives.
Second, the scale of the opportunity ahead. While
Embla Medical has delivered impressive growth,
there remains significant untapped potential to help
even more people live without limitations.
Finally, the people and culture, particularly within
R&D. I had exposure to the team before joining, and
their passion for improving mobility, their drive for
continuous improvement, and their warmth and
collaboration impressed me from the outset.
Q2:
Innovation has been a strong
growth driver in 2025. Looking at the
pipeline, what excites you most going
forward?
A:
We have an exciting innovation pipeline.
We recently upgraded the Power Knee™ with
significant improvements, including a new
advanced gait algorithm, Synchronous Control™,
and work on the next release is already underway.
Powered microprocessor knees are the future,
and we are focused on strengthening our
leadership in this category.
We also see an opportunity to better serve the low
active population with a dedicated microprocessor
knee, complementing existing solutions such as
Rheo Knee®, ICON®, and Navii®.
A:
Competition continues to challenge us,
both established players and new entrants,
which keeps us focused on preserving and
strengthening our innovation leadership. This
requires optimizing both the effectiveness and
efficiency of our innovation efforts and ensuring
we invest where we can deliver the greatest
benefit for users.
A share of our investment goes into exploratory
research and technology maturation, which is
essential for long-term leadership. At the same
time, industry-wide challenges, such as the
shortage of prosthetists and orthotists, require
us to innovate beyond products, including making
solutions easier to fit, configure, and service,
and improving clinical workflows.
What has not changed is the extent of unmet
need. People with mobility challenges still face
limitations in functionality, comfort, safety,
and ease of use, and only a small proportion of
amputees globally have access to prosthetic
solutions. Despite progress, there is still much
work to be done.
advances in mobility solutions?
A:
Digitalization and AI are already reshaping our
industry, from digital clinic workflows and AI-based
control algorithms to the use of generative AI to
enhance innovation productivity.
At the same time, bionics still require advances
in actuation and control to achieve seamless
integration with user intent and become a truly
natural extension of the body.
The quality of the human-device interface is critical,
making innovation in materials and interfaces a key
focus. Össur liners have long been foundational to
our business, with AeroFit® being a recent example,
and there remains significant opportunity to
innovate in socket design as well.
Neuro orthotics also represent a major growth
opportunity. While awareness remains low, solutions
for conditions such as stroke, MS, and cerebral palsy
are clinically effective and life-changing. With the
expertise and solutions at Fior & Gentz, we are well
positioned to lead in this space.
INNOVATION
Embla Medical - 2025 Annual Report
| 27
INNOVATION
Product Launches during 2025
Strong
Intellectual
Property
Portfolio
Navii® by Össur Icon® by College Park Odyssey® iQ by College Park
Patient-Driven
Innovation
Embla Medical‘s intellectual property (IP) strategy
aims to safeguard our investment in innovation,
enhance its value and preserve the competitive
edge the company has gained through the
development of innovative products, processes,
and services.
Navii® is a fully waterproof bionic knee designed
to enhance mobility, confidence, and independence
across all activity levels. It features a powerful
actuator for controlled stair and ramp descent,
effortless swing dynamics, and automatic activity
modes for seamless transitions between walking,
running, cycling, and stair ascent.
Icon® is a versatile microprocessor-controlled knee
for low to high activity users, featuring responsive
sensors, streamlined setup, and the intuitive Stride
Studio
TM
app.
The Odyssey® iQ is a lightweight, weatherproof, low
profile microprocessor foot with hydraulic damping,
fast response, and long battery life, supporting
a wide range of users and activities.
Our intellectual property portfolio is strategically
developed to align with our overarching business
strategy and consists of a broad range of IP assets.
At year-end 2025, the IP portfolio consisted of
around 2,200 patents and patent applications as
well as around 820 trademarks and 560 domain
registrations. According to a 2024 report by the
Icelandic Intellectual Property Office, Össur is
Pro-Flex® LP Junior by Össur AeroFit® by Össur Power Knee
TM
by Össur
by far the largest patent holder in Iceland.
Designed for active young users, the Pro-Flex® LP
Junior delivers exceptional ankle range and power,
enhanced durability and waterproof performance.
Built with the proven Pro-Flex three-blade technology
and split toe design, it promotes a smooth, natural
gait combined with comfort and control every day.
AeroFit® is a breathable prosthetic interface system
combining a vented socket with a 3D-printed silicone
liner to significantly reduce humidity inside the
prosthesis. Excess moisture is a common cause
of discomfort and skin issues for lower-limb.
Power Knee™ controls have been updated to deliver
functional improvements that enhance mobility
and adoption of powered solutions. Synchronous
Control™ provides natural, powered motion that
adapts seamlessly to each step at any walking speed.
Sit-to-stand assistance can now be smoothly ramped
and tailored to user preference, while improved stair
and stumble-recovery functions deliver more natural
transitions and support when it is needed most.
INNOVATION
Embla Medical - 2025 Annual Report
| 28
INTERVIEW WITH
The Navii® is a fully waterproof bionic knee developed by Össur
featuring a powerful actuator provided to support consistency for
stair and ramp descent.
Patients using the new Navii solution will enjoy strong support and
enhanced mobility whether they are walking, standing or descending and
this solution will provide safety and comfort in any terrain.
Juliet Björnsson
Former Global Product Manager, Navii (now with ForMotion)
Helgi Tómas Hall
VP Global Prosthetics Lower Limb, Embla Medical
Q1:
How do you work with product
development at Embla Medical?
A:
In the product development team, we continously
scan the market for unmet user needs and challenges.
This always frames “The Why” behind our new
product development. Our goal is to improve the
user experience while operating sustainable and
profitable business.
Q2:
What specific needs of
above-knee amputees led to the
development of Navii?
A:
Above-knee amputees typically have less muscle
control, which can limit stability and confidence,
particularly in challenging environments such as
stairs, curbes, and slopes. In addition, many existing
solutions have limited water resistance, restricting
participation in activities in and around water. Users
are also increasingly informed and expect greater
personalization, user-centric design, and meaningful
digital engagement. Addressing these needs was
central to the development of Navii.
Q3:
How did Navii address these
needs, and what feedback have you
received from users?
A:
With Navii, our aim was to deliver a solution that
removes the need for users to consciously think
about how to use their device. We wanted users to
trust the knee to support them intuitively, enabling
confident and natural movement.
A key focus was eliminating water-related limitations,
allowing users to participate freely in activities
without planning around water exposure. We also
wanted Navii to feel personal, something that reflects
their individuality, while expanding the range of
functional exercises to help both prosthetists and
users get the most out of the device.
Ahead of the external launch, we conducted pre-launch
evaluations in 18 countries with 67 users. The results
were very encouraging: 80% of participants preferred
Navii over their current prescribed device. Qualitative
feedback highlighted improved stability during
standing
and greater confidence and security when walking,
sitting, and navigating stairs. These insights reinforce our
excitement about bringing Navii to a broader user base.
INNOVATION
Embla Medical - 2025 Annual Report
| 29
PERFORMANCE
Five-Year
Overview
USD MILLION
2025
2024
2023
2022
2021
Key Ratios
Gross profit margin %
62
63
62
61
63
EBIT margin %
13
13
11
9
14
EBITDA margin %
20
20
18
16
21
EBITDA margin before special items %
20
20
18
18
21
Equity ratio %
52
51
51
48
50
NIBD to EBITDA
2.4
2.4
2.8
3.2
2.4
Effective tax rate %
23
24
23
23
24
Return on equity %
10
9
9
7
11
CAPEX to net sales %
3.4
4.6
5.4
3.6
3.7
Full time equivalent at period end
4,192
4,078
3,999
3,892
3,761
Full time equivalent on average
4,138
4,091
3,945
3,866
3,668
Market
Market value of equity
2,202
2,125
1,713
421
14.0
14.0
2,035
423
10.3
10.3
2,724
423
15.6
15.5
Number of shares in millions
430
428
EPS in US cents
19.6
16.2
Diluted EPS in US cents
19.6
16.2
USD MILLION
2025
2024
2023
2022
2021
Net sales
929
855
786
719
719
Gross profit
579
535
486
440
455
Operating expenses (excl. other income)
454
422
398
373
360
EBITDA
186
169
139
114
149
EBITDA before special items
186
173
139
128
149
EBIT
125
113
89
65
97
Net profit
84
69
59
43
66
Sales Growth
Sales growth USD %
9
9
9
0
14
- Organic growth %
6
6
9
4
10
- Currency effect %
2
0
(1)
(7)
3
-
Acquired business %
1
3
1
3
1
Balance Sheet
Total assets
1,730
1,539
1,386
1,325
1,247
Equity
896
781
705
636
627
Net interest-bearing debt (NIBD)
439
414
395
404
363
Cash Flow
Cash generated by operations
178
160
126
92
128
Free cash flow
100
77
52
35
74
Definitions of key ratios and terms can be found on page 138 in the notes to the Consolidated Financial Statements.
INNOVATION
Embla Medical - 2025 Annual Report
| 30
PERFORMANCE
Performance in 2025
Financial Performance in 2025
■
Sales amounted to USD 929 million where organic growth was 6% and local currency growth was 7%
including acquisitions.
■
Prosthetics & Neuro Orthotics sales grew by 10% organic, Bracing & Supports declined 1%, and Patient
Care sales grew by 1% organic. Growth in 2025 was mainly attributed to strong volume growth and
positive product mix supported by high-end solutions.
■
EMEA and APAC regions both demonstrated strong performance; especially in Prosthetics & Neuro Orthos
supported by solid contribution of recently launched innovation. Growth in Neuro Orthotics was also good
following an ongoing expansion into multiple new markets.
■
Gross profit margin was 62%, compared to 63% in 2024. The gross profit margin was positively impacted
by strong sales in Prosthetics & Neuro Orthotics and efficiency gains in manufacturing but partially offset
by tariffs, negative FX impact, and initiatives in Patient Care during the year.
■
EBITDA margin was 20%, on par with 2024. The EBITDA margin was negatively impacted by a lower gross
profit margin, FX, temporary dilution effect from Streifeneder, and initiatives in Patient Care to strengthen
growth and profitability of the segment. Total impact on EBITDA margin from these initiatives and other
items amounts to ~1.5%-points in 2025.
■
Net profit grew by 21% and amounted to USD 84 million or 9% of sales, compared to 8% of sales in 2024.
■
Free cash flow amounted to USD 100 million or 11% of sales, compared to 9% of sales in 2024. The strong
free cash flow generation benefitted from solid operating results and lower CAPEX compared to 2024.
■
NIBD/EBITDA before special items was 2.4x at the end of 2025, within our target range of 2-3x EBITDA
in line with our Capital Structure and Capital Allocation Policy.
INNOVATION
Embla Medical - 2025 Annual Report
| 31
2026 Outlook
■
Organic sales growth guidance of 5-8%, driven by strong volume growth in the core business with moderate
price increases.
■
EBITDA margin guidance of 20-22%, driven by scale and efficiency coupled with continued focus on cost
control in SG&A.
Financial Guidance for 2026
USD MILLION
2025
2024
GUIDANCE 2026
Sales growth, organic
6%
6%
5-8%
EBITDA margin before special items
20%
20%
20-22%*
*Potential impact from US trade tariffs continues to be an uncertain element to quantify given the frequent changes in the global tariff
environment. Consequently, we deem it too speculative to quantify and guide an exact impact from potential tariffs on Embla Medical’s financial
results, but some absorption of tariffs is assumed in the guidance.
Financial Performance
Sales Performance
Sales in 2025 amounted to USD 929 million, compared to USD 855 million in 2024, corresponding to 6% organic
growth, a 7% increase including acquisitions (local currency growth) and a 9% reported growth (USD growth).
Impact on sales from acquisitions amounts to about 1%-point positive effect on the reported growth rate.
Currency movements amounted to impact on reported sales was positive by 2%-point.
Sales by Geographical Segment
USD MILLION
2025
ORGANIC
GROWTH
Δ ACQ. /
DIV.
Δ CURR.
EFFECT
USD
GROWTH
EMEA
457
8%
2%
5%
16%
Americas
399
2%
0%
0%
1%
APAC
73
11%
0%
(2%)
8%
Total
929
6%
1%
2%
9%
Sales by Business Segment
USD MILLION
2025
ORGANIC
GROWTH
Δ ACQ. /
DIV.
Δ CURR.
EFFECT
USD
GROWTH
Prosthetics &
Neuro Orthotics
513
10%
2%
2%
14%
Bracing &
Supports
148
(1%)
0%
1%
0%
Internal product
sales
(39)
0%
0%
2%
1%
External sales
623
8%
2%
2%
11%
Patient Care
306
1%
0%
3%
4%
Total
929
6%
1%
2%
9%
INNOVATION
Embla Medical - 2025 Annual Report
| 32
Business Segments
Prosthetics & Neuro Orthotics sales amounted to USD
513 million and grew by 10% organic in 2025. Bracing &
Support sales amounted to USD 148 million and
declined
by 1% organic, and Patient Care sales amounted to USD
306 million and grew organically by 1%.
In 2025 we saw
strong growth
in
Prosthetics
&
Neuro
Orthotics driven
by solid
volume growth
and
positive
product mix supported by our high-end solutions.
Throughout the year EMEA and APAC contributed
strongly across product categories, especially across
Bionics and Feet solutions with strong contribution
from
recent innovations such as Navii and Pro-Flex Terra.
n addition, Neuro Orthotics performed well
following
an ongoing expansion into multiple new markets.
Sales in Bracing and Supports came in soft in
2025 with growth in select markets and product
categories, but offset by challenging market
dynamics in other markets.
In Patient Care, we delivered 1% organic growth.
Throughtout most of the year we delivered
modest growth in Patient Care, mainly in Americas
region. The performance can partly be ascribed to
softness and timing in patient volumes but also
internal change initiatives including the ForMotion
rebranding, system integrations, and other initiatives
temporarily impacting the business.
Operations
Gross profit in 2025 amounted to USD 579 million
or 62% of sales, compared to 63% of sales in 2024.
The gross profit margin was positively impacted
by strong sales in P&NO and efficiency gains in
manufacturing but offset by negative impact from
FX, tariffs, and initiatives related to Patient Care.
Operating Expenses
Operating expenses, excluding other income,
amounted to USD 454 million or 49% of sales in 2025,
same as in 2024. Throughout 2025, we continued
to see positive effects from effective cost control in
SG&A but operating expenses were also negatively
impacted by initiatives related to Patient Care.
EBITDA
EBITDA amounted to USD 186 million or 20% of
sales, compared to EBITDA before special items of
USD 173 million or 20% of sales in 2024. The EBITDA
margin decreased due to FX, tariffs, slight temporary
dilutive impact from the acquisition of Streifeneder,
and costs related to initiatives to enhance the growth
and profitability of Patient Care. These initiatives
include restructuring costs in the form of severance,
ForMotion rebranding, and system implementations
impacting both COGS and OPEX. Total impact on
EBITDA margin from these initiatives in Patient Care
and other items amounts to ~1.5%-points in 2025.
Negative impact from currency movements on the
EBITDA margin amounted to approximately 30 basis
points in 2025 when compared to 2024.
Financial Items, Income Tax and
Net Profit
Net financial expenses in 2025 amounted to USD 24
million, compared to USD 26 million in 2024. Lower
net financial expenses can be attributed to lower
financial expenses following a period with lower
interest rates.
Income tax amounted to USD 24 million in 2025,
corresponding to a 23% effective tax rate, compared
to USD 22 million or 24% effective tax rate in 2024.
Net profit in 2025 increased by 21% and amounted
to USD 84 million or 9% of sales, compared to USD
69 million or 8% of sales in 2024. Net profit was
positively impacted by strong operating results and
net financial expenses. Diluted earnings per share
in 2025 amounted to 19.6 US cents, compared to
16.2 in 2024.
Cash Flow
Cash generated by operations amounted to USD 178
million or 19% of sales in 2025, compared to USD 160
million or 19% of sales in 2024.
Capital expenditures (CAPEX) amounted to USD
32 million or 3% of sales in 2025 compared to USD
39 million or 5% of sales in 2024. CAPEX in 2025
returned to a normalized level around 3% following
closure of facility expansion programs carried out in
2024 to support growth.
Free cash flow in 2025 amounted to USD 100 million
or 11% of sales, compared to USD 77 million or 9% of
sales in 2024. Free cash flow was positively impacted
by strong operating results and lower CAPEX
compared o 2024.
Bank balances and cash equivalents amounted to
USD 103 million at year-end 2025 and USD 114 million
of existing facilities were undrawn. Bank balances
and cash equivalents in addition to undrawn credit
facilities at the end of 2025, therefore, amounted to
USD 217 million.
Capital Structure
Net Interest-Bearing Debt
Net interest-bearing debt, including lease liabilities,
amounted to USD 439 million at year-end 2025,
compared to USD 414 million at year-end 2024.
Net interest-bearing debt to EBITDA corresponded
to 2.4x at year-end 2025, which is within the target
range of 2.0-3.0x.
Share Buybacks and Dividends
The purpose of the share buyback 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.
During 2025, Embla Medical carried out a Share
Buyback program acquiring 1,987,027 at an average
price of DKK 32.00. Following the completion of the
program Embla Medical hold 2,673,596 treasury
shares, corresponding to 0.62% of the Company‘s
total share capital.
A new Share Buyback program for 2026 was
announced 23 December 2025.
INNOVATION
Embla Medical - 2025 Annual Report
| 33
PERFORMANCE
Guidance For 2026
GUIDANCE GUIDANCE FY 2026 ACTUAL FY 2025
Sales growth, organic
5-8%
6%
EBITDA margin before special items
20-22%
20%
For Modeling Purposes
CAPEX as % of sales
3-4%
3%
Effective tax rate
23-24%
23%
For 2026 organic sales growth is expected to be in the range of 5-8%. We anticipate continued strong momentum
in our Prosthetics & Neuro Orthotics business across regions supported by solid contributions from our fast-growing
bionic portfolio and recently launched innovations in addition to upcoming launches in 2026. Some positive impact
from the US Medicare Coverage Expansion is also expected to contribute to sales supported by our existing portfolio
of microprocessor knee (MPK) solutions, which in the future will be complemented by a dedicated K2 MPK solution
to better serve the least mobile users in the low active K2 patient population.
In Neuro Orthotics we expect to see the increasing effects from the ongoing roll out of our Neuro Orthotics
offerings (Fior & Gentz) into new markets leveraging our global commercial infrastructure and ForMotion
footprint within O&P Clinics. Albeit growing from a low base we expect to see solid growth in the EMEA region
with some contributions expected in Americas during the course of 2026 as we prepare ramp-up for a broader
launch of our first bionic knee joint “NEURO HiTRONIC MPKAFO”, which received a reimbursement code last
summer in the important US market.
In Patient Care, we expect growth to gradually improve during 2026 with the aim of eventually returning to
consistent sales performance in line with market. Growth in 2026 is expected to be driven by volume growth,
increased efficiency supported by effects from the initiatives implemented across our Patient Care business
in the second half of 2025. Focus will be on strengthening growth and profitability and benefiting from the
structural growth in the O&P industry our product business has observed in recent periods.
Lastly, Bracing & Supports is expected to grow approximately in line with market growth. We assume solid
growth in selected key regions supported by expected launches of new product categories but also with
continued competitive pressure in selected markets.
EBITDA margin is expected in the range of 20-22% for 2026 compared to 20% in 2025. The EBITDA margin
is expected to be positively impacted by solid sales performance, a favorable product mix from increased sales
of our high-end solutions, continued efficiency gains in manufacturing, increasing profitability in Patient Care,
and cost control in SG&A.
At current foreign exchange rates, keeping all other factors constant, the EBITDA margin is expected to be
negatively impacted by about 30 basis points in 2026 when compared to 2025.
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 4.0-5.0 million when unhedged. Embla Medical utilizes
forward contracts to hedge approximately 50% of the estimated net currency exposure to ISK.
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GOVERNANCE
Shareholder Information
Embla Medical is a large cap company that has been listed on the Nasdaq Copenhagen since 2009
and prior to that on Nasdaq Iceland since 1999.
At year-end 2025, the share capital of Embla Medical was 430,441,257 nominal value, divided into
the same number of shares. There is only one class of shares, and all shares carry one vote, besides
treasury shares that do not carry voting rights.
Key Information Table
Market
Nasdaq Copenhagen
ISIN
IS0000000040
Ticker
EMBLA
Industry
Healthcare
No. of Shares
430,441,257
Ownership Structure
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Embla Medical’s largest shareholder is William Demant
Invest A/S (WDI) which held 50.95% of the total shares
and 50.95% of the voting rights at year-end 2025.
WDI has been a shareholder in Embla Medical
(previously Össur) since 2004. In an announcement
from WDI on 4 January 2018, when their ownership
in Embla Medical crossed the 50% threshold, it was
stated that the intention was to hold 50-60% of
Embla Medical’s shares going forward. Apart from
Embla Medical, the fund’s investment activities
include holdings in Demant, a leading provider of
hearing aids, as well as Vision RT, Vitrolife, CellaVision,
Revenio, Jeudan, INVISIO, GN Store Nord and Pleo.
At year-end 2025, the following shareholders had
announced holdings above 5% to the company.
Shareholders - Geographical Distribution
Share Performance
Embla Medical’s share price decreased by 9% in 2025, from DKK 35.6 per share at year-end 2024 to DKK 32.50
per share at year-end 2025. Embla Medical’s market capitalization was DKK 14 billion (USD 2.2 billion) at year-
end 2025 compared to DKK 15.3 billion (USD 2.1 billion) at year-end 2024.
Share Performance (Indexed)
120
100
80
60
40
20
0
Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25
Major Shareholders
The following shareholders have announced holdings above 5% to the company:
INVESTOR
TYPE
COUNTRY
THRESHOLD CROSSED
William Demant Invest
Investment Fund
Denmark
50%
Inter Long Term Capital S.A.
Investment Fund
Luxembourg
10%
ATP
Pension Fund
Denmark
5%
Lífeyrissjóður verzlunarmanna
Pension Fund
Iceland
5%
Embla Medical
OMX C25 GI
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Capital Allocation
With emphasis on growth opportunities, value-
adding investment opportunities and acquisitions,
Embla Medical decided to discontinue dividend
payments in 2022 and instead focus on returning
excess capital to shareholders via purchase of own
shares. This is in accordance with Embla Medical‘s
Capital Structure and Capital Allocation Policy
approved by the Board of Directors in 2022.
In February 2025, Embla Medical initiated a new
share buyback program allowing the company to
purchase up to 2 million shares under the assumption
that the total consideration for the shares purchased
would not exceed USD 10 million.
The program was completed December 23, 2025
with 1,987,027 shares being purchased at a total
consideration of USD 9.96 million. A new program
was started in January 2026.
At year-end 2025, Embla Medical‘s treasury shares
totaled 2,673,596.
Since 2013, when Embla Medical
started returning capital to
shareholders, we have paid out
total of USD 245 million.
Annual General Meeting
Embla Medical’s 2026 Annual General Meeting will be
held on 10 March 2026. The meeting is convened with
at least three weeks’ notice. The AGM results are sent
to the news system of Nasdaq immediately following
the meeting and are also available on the
company’s
website
.
Analyst coverage 2025/2026
Names and analyst details of the financial institutions that publish equity research reports on Embla Medical.
COMPANY
ANALYST
EMAIL
COUNTRY
ABG Sundal Collier
Morten Larsen
Denmark
Danske Bank
Tobias Nissen
Denmark
Nordea
Martin Brenøe
Denmark
SEB
Yiwei Zhou
Denmark
DNB Carnegie
Jesper Ingildsen
UK / Denmark
Økonomisk Ugebrev
Steen Albrechtsen
Denmark
Intron Health Research
Naresh Chouhan
UK
Berenberg
Beatrice Fairbairn
UK
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Financial Calendar Contact Investor Relations
and Corporate Communications
Investor Relations
Embla Medical‘s policy is to disclose financial and
corporate information to provide investors, analysts,
and other stakeholders with comprehensive and
accurate information to help them understand Embla
Medical‘s current and expected developments.
Klaus Sindahl
Head of Investor Relations
E
M
+45 536 30134
Financial reports, announcements, presentations,
the financial calendar, upcoming events, share
information, and other information can be found
on the
company’s website
.
Q1 2026
Q2 2026
Q3 2026
Q4 2026
Annual General Meeting
10 March 2026
Interim Report Q2
21 July 2026
Interim Report Q3
20 October 2026
Interim Report Q4
and Annual Report 2026
2 February 2027
Interim Report Q1
28 April 2026
Edda H. Geirsdóttir
VP Corporate Communications
E
M
+354 664 1055
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GOVERNANCE
Corporate Governance
At each Annual General
Meeting the Shareholders:
■
Confirm the Consolidated Financial
Statements and decide on the
distribution of the net profit.
■
Approve the Remuneration Policy.
■
Decide on the remuneration for the
Board of Directors.
■
Elect the Board of Directors.
■
Elect an auditor.
Other resolutions are made on
an ad-hoc basis, such as:
■
Amendments to the Articles
of Association:
–
Capital reductions.
–
Authorizations for the Board
of Directors to increase the share
capital.
■
Authorizations to the Board
of Directors:
–
Purchase own shares.
–
Initiate share buyback programs.
Organizational
Structure
According to the Articles of Association,
Embla Medical is managed by Shareholders’
Meetings, the Board of Directors (the Board),
and the Chief Executive Officer (CEO). Their roles
and responsibilities are described in this chapter.
Shareholders’
Meetings
The supreme authority in Embla Medical’s affairs
is in the hands of lawful Shareholders’ Meetings,
within the limits provided for in the Articles
of Association and law.
Resolutions at Shareholders’ Meetings generally
require a simple majority. However, resolutions to
amend the Articles of Association generally require
two-thirds of the votes cast and capital represented.
Minutes of Shareholders’ Meeting
are available
on our website.
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Annual General Meeting
March Meeting
Election of Chair and
Vice Chair
Appointment of the
Audit Committee
Review of Internal
Rules
Board of Directors
The Board of Directors is the supreme authority
in Embla Medical’s affairs between Shareholders’
Meetings. The Board shall operate in accordance with
the Articles of Association and the Board’s Rules
of Procedure.
The Board of Directors’ work, role and
responsibilities are further described in the Board’s
Rules of Procedure, which are reviewed annually
by the Board and updated as necessary.
The Board’s Rules of Procedure
are available
on our website.
The Board of Directors is composed of six members,
all elected by the Shareholders at the Annual General
Meeting for a term of one year. The Board shall
be represented by at least 40% of each gender.
Currently, the Board consists of three men and three
women. Several Board members have long-standing
tenure, providing continuity and deep insight into
Embla Medical’s business and markets. Three Board
Members are considered independent in accordance
with the Danish Recommendations on Corporate
Governance.
The Chair and Vice Chair of the Board of Directors
are elected annually following the Annual General
Meeting. The Chair’s primary responsibility is to
ensure that the Board performs its duties in an
orderly and efficient manner. In the absence of the
Chair, the Vice Chair assumes these responsibilities.
Niels Jacobsen has served as the Chair since 2006,
and Svafa Grönfeldt has served as Vice Chair
since 2021.
Further information on the
Board of Directors
is
available on our website.
The Board of Directors’ Annual Schedule
Quarter 1
Quarter 2
Quarter 3
Quarter 4
February Meeting
Full-year results
Corporate Governance
Statement
Capital Structure and
Capital Allocation
Policy
Agenda for the Annual
General Meeting
April Meeting
Quarterly results
July Meeting
Half-year results
October Meeting
Quarterly results
September Meeting
Strategy
December Meeting
Strategy and forecast
Performance
evaluation
The Board has various roles
and responsibilities:
■
Establish goals for Embla Medical and
formulate the policy and strategy to
achieve those goals.
■
Hire a CEO to manage the daily
operations, supervise activities
and ensure that Embla Medical’s
organization and operations are in
proper order.
■
Ensure adequate surveillance
of the accounting and financial
management.
■
Evaluate the capital structure.
■
Evaluate the performance of the
Board and the CEO.
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Audit Committee
The Audit Committee’s main objective is to ensure a
competent and independent audit of Embla Medical
and supervise the internal control system and risk
management. The Audit Committee’s responsibilities
are further described in the Audit Committee’s
Terms of Reference, which are reviewed annually by
the Board of Directors and updated as necessary.
The Audit Committee’s Terms of Reference
are
available on our website.
The Audit Committee is composed of three Board
members. The majority of the Audit Committee
shall be independent of Embla Medical, the CEO
and the Auditor.
Audit Committee members shall possess the
knowledge and expertise needed to perform the
tasks of the Audit Committee. At least one Audit
Committee member shall have solid knowledge and
experience in the field of financial statements or
auditing. Arne Boye Nielsen has served as the Chair
of the Audit Committee since 2012.
Further information on the
Audit Committee
is available on our website.
The Audit Committee’s Annual Schedule
The Audit Committee has various roles and responsibilities:
■
Ensure a competent and independent audit.
■
Monitor and assess Embla Medical’s
■
Submit proposals to the Board on the
internal control systems and enterprise risk
nomination of an auditor candidate at the
management systems and perform other
Annual General Meeting.
related tasks and duties.
■
Submit proposals to the Board on an
■
Monitor the financial and sustainability
agreement with the Auditor, containing e.g.
reporting process and make
provisions on the audit fees as well as the
recommendations or proposals for securing
general scope of the Auditor’s non-audit
integrity. This includes reporting to the Board
services.
on significant accounting policies, significant
accounting estimates, related party
■
Monitor and evaluate the Auditor’s work,
transactions and uncertainties and risks,
including statutory audit of the financial
including in relation to the outlook, prior to
statements and annual report, taking into
the Board’s approval of financial statements.
consideration the results of the most recent
quality control.
■
Assess the need for an internal audit
function taking into consideration the
■
Report to the Board the results of the
scale and complexity of Embla Medical’s
statutory audit and the sustainability
activities, risk factors and cost / benefit
reporting, including the financial and
considerations.
sustainability reporting process.
■
Monitor Embla Medical’s Speak-Up Line.
■
Monitor the progress made on sustainability
targets and report the result to the Board.
■
Monitor Embla Medical’s Tax Policy.
The Audit Committee Meetings
AUDIT COMMITEE MEMBER MEETINGS ATTENDED
Arne Boye Nielsen, Chair
Alberto Esquenazi
Caroline Vagner Rosenstand
Quarter 1
Quarter 2
Quarter 3
Quarter 4
February Meeting
Audit report
(presented by the
Auditors)
Review of Q4 and full
year results
Related party
transactions
Internal Control and
Risk Management
update
Report on external
lending
ESG/CSRD reporting
update
Election of the Chair
Annual Schedule
Review of Q1 results
Related party
transactions
Internal Control and
Risk Management
update
Status of entities
integration
and systems
implementation
ESG/CSRD reporting
update
Audit plan and fees
for the coming year
(presented by the
Auditors)
Review of Q2 results
Related party
transactions
Internal Control and
Risk Management
update
Report on external
lending
ESG/CSRD reporting
update
October Meeting
Report on valuation
methods on significant
accounting estimates
Review of Q3 results
Related party
transactions
Internal Control and Risk
Management update
Status of entities
integration and systems
implementation
ESG/CSRD reporting
update
Tax update
December Meeting
Meeting with the
Auditors (including
private session)
Report on Internal
Controls and Enterprise
Risk Management
Double Materiality
Assessment results
Security update
Speak-Up Line status
Assessment of the need
for an internal audit
Financial forecast
assumptions and risk
Proposal to the Board on
nomination of auditors
and auditors’ agreement
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Nomination Committee
A Nomination Committee was established in 2022. The Nomination Committee’s main objective is to prepare
recommendations to the Board in relation to the composition, development, and succession of the Board.
The Nomination Committee’s responsibilities are further described in the Nomination Committee’s Terms
of Reference, which are reviewed annually by the Board of Directors and updated as necessary.
The
Nomination Committee Terms of Reference
are available on our website.
The Nomination Committee is composed of the Chair of the Board and the Chair of the Audit Committee.
Remuneration Committee
A Remuneration Committee was established in 2022. The Remuneration Committee’s main objective is to
prepare recommendations to the Board in relation to the remuneration policy and remuneration for the Board,
the CEO, and the Executive Management. The Remuneration Committee’s responsibilities are further described
in the Remuneration Committee’s Terms of Reference, which are reviewed annually by the Board of Directors and
updated as necessary. The
Remuneration Committee’s Terms of Reference
are available on our website.
The Remuneration Committee is composed of the Chair of the Board and the Chair of the Audit Committee.
Board Performance Evaluation
The Board of Directors conducts a performance evaluation each year. The Chair oversees the evaluation
process and proposes actions to be taken, if any. The Chair seeks external assistance at least every three
years. The Board performance evaluation for 2025 was discussed by the Board in December 2025.
The topics discussed included the following:
■
Size and composition of the Board
■
Board collaboration and the Chair’s leadership
■
Board meetings and Board material
■
Board responsibilities and focus areas
■
The Executive Management’s performance and collaboration with the Board
The main conclusion of the performance evaluation for 2025 was that the Board performs at a high level and
contributes to Embla Medical’s growth and value creation.
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Chief Executive
Officer
The CEO is responsible for Embla Medical’s daily
operations and is obliged to follow the Board
of Directors’ policy and directions, within the limits
provided for by the Articles of Association and law.
The daily operations do not include measures that are
unusual or extraordinary, which may generally only be
taken if specially authorized by the Board.
The CEO is not a Board member, but shall attend
Board Meetings and has the right to participate
in discussions and put forward proposals, unless
otherwise decided by the Board in specific instances.
The Board of Directors evaluates the CEO’s
performance each year. Subsequently, the Chair
of the Board and the CEO have a meeting to discuss
the results of the evaluation and the actions to be
taken, if any.
Executive
Management
Embla Medical also has a wider Executive
Management consisting of the CEO, the CFO and
Executive Vice Presidents.
The Executive Management generally meets every
week and collectively prepares and implements
Embla Medical’s strategic plans. The CEO is
responsible for the work and results of the Executive
Management.
The CEO evaluates the performance of other
members of the Executive Management each year
and discusses the results of the evaluation with each
member and the actions to be taken, if any.
Further information on the
Executive Management
is available on our website.
Remuneration of the
Board of Directors
and the Executive
Management
At Embla Medical’s Annual General Meeting on
12 March 2025, the shareholders approved a
Remuneration Policy, which applies to the Board
of Directors, the CEO and other members of the
Executive Management. The Remuneration Policy
was prepared by the Remuneration Committee and
approved by the Board of Directors without any
amendments. The
Remuneration Policy
is available
on our website.
Information on the remuneration of the Board
of Directors, the CEO and other members of
the Executive Management can be found in the
Remuneration Report
, available on our website.
Recommendations for
Corporate Governance
Embla Medical follows the Danish Recommendations
for Corporate Governance issued on 2 December
2020 by the Danish Committee on Corporate
Governance, which are available on the
Committee’s
website
. The Recommendations are the best practice
guidelines for companies admitted to trading on
a regulated market in Denmark.
Each year, the Board of Directors evaluates and
decides to what extent Embla Medical should comply
with the Recommendations and consequently,
whether relevant rules, policies and processes should
be adopted or updated.
In general, the Board of Directors shares the
Committee’s views on corporate governance and,
accordingly, Embla Medical complies with most
of the recommendations. In the few cases where
Embla Medical deviates from the Recommendations,
the “comply or explain” principle is applied, and
well-founded explanations are provided on why
the relevant recommendation is not considered
appropriate or desirable for Embla Medical.
Embla Medical’s Corporate Governance Report
is approved by the Board of Directors. The Report
includes both the statutory statement on corporate
governance as well as comments and information
on each item in the Recommendations.
The
Corporate Governance Report
is available
on our website.
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GOVERNANCE
Risk Management
Key Risks
An investment in Embla Medical shares involves
various risks such as business, financial conditions,
and operational results, and could be negatively
affected if any of the factors described in this
chapter occur. Even though the long-term
prospects and underlying fundamental drivers
of the markets where Embla Medical operates are
not expected to change, Embla Medical highlights
key risks which are currently considered the most
relevant to the Company.
Embla Medical cannot ensure that the given
assumptions for the description of any of these
risks are correct. Additional risks and uncertainties,
as well as risks that Embla Medical currently deems
immaterial or are not presently known to us, may
adversely affect Embla Medical’s business, financial
conditions, and operational results.
I.
Reimbursement Landscape
Description
Most of Embla Medical’s products and services are
reimbursed by third-party payers, including both
government healthcare programs and private health
insurance plans. Third-party payers continue to
develop methods of controlling healthcare costs,
including reviews of claims, selective contracting,
and competitive bidding. Our business depends
on understanding and adapting to reimbursement
and insurance plans in all markets where we conduct
our business.
Potential Impact
These cost-control methods may limit or even
eliminate the coverage and the amount of payment
for which third-party payers may be willing to pay
for Embla Medical’s products and services.
As a result, customers may reduce or eliminate
purchases and sales may decline significantly.
Reviews of claims may lead to repayment of prior
sales. Finally, failing to understand and adapt to
changes in reimbursement systems may affect
Embla Medical’s license to operate and thus affect
our sales.
Mitigative Actions
Embla Medical only brings products and services
to the market that address medical indications,
and which are clinically validated. In addition,
we apply our reimbursement knowledge from
the earliest stages of product development
to the post-sale education of customers.
Finally, we monitor and analyze changes to the
reimbursement landscape in the markets where
we operate and adapt our reimbursement strategy
accordingly.
II.
Regulatory Requirements
Description
Embla Medical’s products and services are subject
to global and local regulations. Such regulations can
restrict practically all aspects of a medical device’s
design and testing, manufacturing, safety, labeling,
storage, record-keeping, reporting, clearance and
approval, promotion, distribution, and services.
In our interactions with government officials,
healthcare professionals, and business partners,
we must comply with relevant third-party regulatory
requirements. Finally, our footprint is growing in
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new emerging markets which are characterized
by complex regulations, business volatility and
unpredictability.
Potential Impact
Failure to comply with the regulatory requirements
of the applicable authority may subject Embla
Medical to fines, penalties, sanctions, or product
withdrawals. If the Company would fail to receive
regulatory clearance and approval for the products
and services it could adversely affect sales and
potential for future growth, threaten Embla
Medical’s license to operate in the respective
market, and affect the brand and reputation.
Mitigative Actions
Embla Medical maintains a robust global quality
system that complies with international medical
device standards, and which forms an intrinsic
part of internal processes. Embla Medical also
has a regulatory compliance program, including a
Code of Conduct, under which employees identify,
assess, manage, and report potential risks from
international and local regulations in the countries
where we market and sell our products and
services. Finally, tracking and analyzing regulatory
requirements of new markets forms a part of our
market access strategy.
III.
Insufficient Innovation and
Technology Obsolescence
Description
Embla Medical operates in markets where
technological development is ongoing and driven
by research. Technological innovation takes place
at various stages in our value chain and may include
individual components, design, and functionalities
of our products and services.
Potential Impact
The development by suppliers or competitors of
substitute products or components that better
satisfy market demands could have a material
adverse effect on Embla Medical’s business and
results of operations. A failure to identify and adopt
technologies could cause technological gap, limiting
our ability to compete in specific markets and
impacting revenue growth.
Mitigative Actions
Embla Medical’s significant investment in research
and development and constant strive for finding
innovative technologies, has resulted in a vast
intellectual property portfolio and a strong position
to compete with potential new entries. External
connections with universities, research institutes and
investors provide us with the opportunity to stay
informed and review emerging innovation as part
of acquisitions or research cooperation initiatives.
IV.
Industry Consolidation, Forward
Integration, and Acquisitions
Description
Major shifts in Embla Medical’s marketplace include
the consolidation of orthotics and prosthetics (O&P)
manufacturers and forward integration, which
involves acquiring service providers in the O&P
industry. It remains uncertain to what degree we will
be able to participate in manufacturer consolidation,
forward integration or other acquisition
opportunities and how it will affect our operations.
Industry consolidation, forward integration, and
acquisitions can lead to increased challenges and
complexity, while our success depends in part on
our ability to effectively operate in this changing
marketplace.
Potential Impact
The consolidation has been a material contributor
to the external growth of Embla Medical in the
past. Acquisitions also play a key role in our growth
and market expansion but come with risks such
as operational impact, integration challenges,
and unmet strategic objectives. If we were not
to participate in further consolidation, forward
integration or strategic acquisitions, it might limit our
potential for future growth. In addition, these market
trends may impact the competitive landscape of the
industries and the associated market shares. Finally,
these changes in the marketplace may impact our
customers and patients, and interactions with them.
Mitigative Actions
It is at the core of our strategy to operate effectively
in this changing marketplace. Embla Medical
continuously reviews value enhancing acquisitions
and investment opportunities in our business
segments and keeps a good relationship with the
relevant stakeholders in the industry. By enhancing
acquisition and integration practices, we aim to
reduce risks and maximize the value of acquisitions.
We operate our own clinics in certain regions and
have partnership programs in place with healthcare
providers to offer customers quality products and
services in the interest of our end-users. These
measures collectively support Embla Medical’s
ability to navigate market shifts and capitalize on
growth opportunities.
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V.
IT Systems, Cybersecurity,
and AI-driven Digital Disruption
Description
Embla Medical is exposed to risks related to critical
IT systems, cybersecurity threats, and emerging
technologies, including Artificial Intelligence, which
are increasingly embedded in business processes.
Potential Impact
System outages, cyberattacks, or failures in digital
tools or AI-driven processes could disrupt operations,
compromise data, affect decision-making, and
adversely impact financial performance and
stakeholder trust.
Mitigative Actions
Embla Medical maintains an information security
framework aligned with ISO 27001, enhances
cybersecurity controls, follows a cloud-first approach
to strengthen resilience, and continues to mature its
business continuity planning and governance over
emerging technologies, including AI.
VI.
Geopolitical Tensions and
Macroeconomic Conditions
Description
Embla Medical is exposed to geopolitical
developments, trade restrictions, sanctions regimes,
and macroeconomic volatility.
Potential Impact
Such developments may disrupt supply chains, affect
cost structures, create compliance complexities,
or influence strategic decisions and market
conditions.
Mitigative Actions
Embla Medical monitors geopolitical and economic
developments, assesses exposure within the supply
chain, applies scenario planning, and incorporates
macroeconomic considerations into strategic and
operational planning.
VII.
Supplier Dependency
Description
Embla Medical is exposed to risks related to
dependency on selected suppliers of critical
components, equipment and raw materials.
Potential Impact
Disruptions such as delayed deliveries, quality issues,
or supplier insolvency could impede production,
increase costs, or negatively affect the availability
of products.
Mitigative Actions
Embla Medical conducts regular audits of key
suppliers, maintains safety stock where appropriate,
applies structured onboarding and performance
monitoring, and evaluates alternative supply options
to safeguard business continuity.
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GOVERNANCE
Taxation
Our Responsibility
Towards Taxation
Taxation is an integrated part of Embla Medical’s
business. We apply the same core values and
committment to the UN Sustainable Development
Goals when determining our global tax footprint,
acknowledging that being a sustainable, responsible,
and compliant taxpayer is part of our corporate social
responsibility.
Embla Medical’s approach to
taxation is guided by the following
principles:
Compliance and Transparency
Embla Medical complies with local legislation and
international regulations, both in letter and spirit,
guided by prudence and transparency. We are
committed to the payment and remittance of all
relevant domestic and foreign taxes and adhering
to transactional and periodical filing obligations
accurately, in good faith, and on time. We recognize
the importance of technology in ensuring the
accuracy and reliability of our tax processes, tax
reporting and tax compliance obligations. Embla
Medical is part of the William Demant Invest A/S
consolidated group and reports under Country-by-
Country Reporting requirements and the OECD
Global Anti-Base Erosion Model Rules (referred to
as Pillar Two). We respond to any enquiries from
authorities and provide information to external
stakeholders on our approach to taxation, annual
tax payments, and tax position in a timely and
transparent manner.
Business Driven Approach
In managing our tax affairs, Embla Medical acts
responsibly, with commercial considerations
driving our business structure in alignment with
our business activities and ensuring genuine
operational substance. We do not engage in
artificial or aggressive tax planning for transactions
and investments. Embla Medical does not have
operations in so-called tax havens. We operate
in accordance with the OECD Transfer Pricing
Guidelines (arm’s length principle) to ensure a
fair allocation of revenue and tax payments in the
countries where value is created and economic
activities take place.
Tax Incentives
When applying for tax credits, Embla Medical
ensures compliance with both business and
applicable legislative requirements, using such
incentives in the manner intended by the granting
authorities. We have been granted two tax incentives
for research and development activities in Iceland
(Össur) and the United Kingdom (Touch Bionics).
Governance
Embla Medical’s Tax Policy is the responsibility of
the Board of Directors, and assigned to the Chief
Financial Officer, supported by an in-house Global
Tax team and external experts. These functions
advise and guide the business on the potential tax
implications of commercial, organizational, business
and investment or divestment decisions. The Tax
Policy applies to all entities within Embla Medical.
Managing Tax Risks
Embla Medical manages its tax affairs responsibly
to protect its assets and reputation and as an
integral part of our Risk Management Framework.
This includes continuous monitoring of legislative
developments in the countries in which we operate to:
■
Ensure compliance with tax law and regulations.
■
Ensure transparency regarding tax planning and
contributions to society.
■
Minimize the unforeseen tax impacts arising from
regulatory changes or new business initiatives.
INNOVATION
Embla Medical - 2025 Annual Report
| 47
GOVERNANCE
Board of Directors
Niels Jacobsen
Chair of the Board of Directors
Born in 1957
Member of the Board of Directors since 2005
Education
■
Master of Science (MSc) degree in Economic and Business
Administration from the University of Aarhus in Denmark
Board positions
■
Thomas B. Thrige Foundation, Chair
■
Central Board of the Confederation of Danish Industry, Board member
■
The Board of the Employers of Industry (IAD, under the
Confederation of Danish Industry), Board member
Additional duties related to William Demant Invest A/S
■
Demant A/S, Deputy Chair
■
Jeudan A/S, Chair
■
Vision RT Ltd, Chair
Experience
Niels Jacobsen has extensive leadership experience from major
international companies. His competencies include business
management and in-depth knowledge of financial matters,
accounting, risk management and M&A. He has broad experience
from the global healthcare industry. He is currently CEO of William
Demant Invest A/S and prior to that he was President & CEO of
Demant A/S (formerly William Demant Holding A/S).
Shares held in Embla Medical
203,330 (incl. related parties).
Niels holds no share options in Embla Medical.
Other
Niels has no interest links with Embla Medical’s main clients or
competitors. Niels is a dependent member of the Board as he
represents the interest of Embla Medical’s controlling shareholder,
William Demant Invest A/S.
Dr. Svafa Grönfeldt
Vice Chair of the Board of Directors
Born in 1965
Member of the Board of Directors since 2008
Education
■
Doctorate in Industrial Relations from the London School
of Economics
Board positions
■
Icelandair hf., Board member
■
Marel hf., Board member
Experience
Dr. Svafa Grönfeldt is a Professor of Practice at the Massachusetts
Institute of Technology. She is a founding member of MIT’s newest
innovation accelerator DesignX focused on developing new ventures
created at MIT. Svafa is the cofounder of The MET fund, a Cambridge
based seed investment fund. Previous positions include executive
leadership positions at two global life science companies where she
served as Chief Organizational Development Officer of Alvogen and
Deputy to the CEO of Actavis Group. Svafa is a former President of
Reykjavik University.
Shares held in Embla Medical
Svafa holds no shares nor share options in Embla Medical.
Other
Svafa has no interest links with Embla Medical’s main clients,
competitors, or major shareholders. Svafa is considered a dependent
member of the Board due to her long tenure on the Board.
Arne Boye Nielsen
Member of the Board of Directors
Born in 1968
Member of the Board of Directors since 2009
Education
■
Master’s degree in Business Administration from the Copenhagen
Business School in Denmark
Board positions
■
Revenio Group Oyj, Chair
■
Cookie Information A/S, Board member
■
Natus Sensory, Board member
Experience
Arne has spent most of his career with Demant A/S in various and
expanding roles throughout the world. After working as an interim
General Manager of Oticon Australia Pty Ltd, Arne assumed, in 1996,
as President of Diagnostics and Communications in Demant, which
has operations worldwide. Arne left Demant A/S in 2023.
Shares held in Embla Medical
Arne holds no shares nor share options in Embla Medical.
Other
Arne has no interest links with Embla Medical’s main clients,
competitors, or major shareholders. Arne is considered a dependent
member of the Board due to his long tenure on the Board.
Dr. Alberto Esquenazi
Member of the Board of Directors
Born in 1957
Member of the Board of Directors since 2021
Education
■
Medical degree in Medicine and Surgery from Universidad Nacional
Autonoma de Mexico in Mexico
Board positions
■
AMRPA and Jefferson Einstein Healthcare Network, Board member
Experience
Dr. Alberto Esquenazi, MD, serves as the John Otto Haas Chair of
the Department of Physical Medicine and Rehabilitation at Jefferson
MossMagee Rehabilitation in Philadelphia and is the Chief Clinical
Officer as well as Director of the Gait and Motion Analysis Laboratory
and Clinical Director of the Regional Amputee Center. He is Professor
of PM&R at Jefferson School of Medicine and the SVP, Enterprise
Rehabilitation and Postacute Care Network. Alberto is the past
president of the American Academy of PM&R. He has published
widely and is a member of national and international professional,
educational, and research societies.
Shares held in Embla Medical
Alberto holds no shares nor share options in Embla Medical.
Other
Alberto has no interest links with Embla Medical’s main clients,
competitors or major shareholders. Alberto is an independent
member of the Board.
INNOVATION
Embla Medical - 2025 Annual Report
| 48
GOVERNANCE
Board of Directors
Caroline Vagner Rosenstand
Member of the Board of Directors
Born in 1979
Member of the Board of Directors since 2024
Education
■
Master’s degree in Applied Economics and Finance from
Copenhagen Business School
Board Positions
■
K/S Habro-Plymouth, Board member
Experience
Caroline Rosenstand is the EVP of the Chronic Care Commercial
business unit of Coloplast A/S. In this capacity, she serves as a
member of the Executive Leadership Team of Coloplast A/S. Previous
positions include Exective Vice President and President for Atos
Medical AB, Vice President Central Eastern Europe & Israel, and Vice
President Strategy, Mergers & Acquisition for Coloplast A/S. The
positions were based in Denmark, Sweden and the US. Prior to joining
Coloplast, Caroline was part of the investment team in the Danish
private equity company Axcel, and a management consultant at A.T.
Kearney in Copenhagen.
Shares held in Embla Medical
Caroline holds no shares nor share options in Embla Medical.
Other
Caroline has no interest links with Embla Medical’s main clients,
competitors or major shareholders. Caroline is an independent
member of the Board.
Tina Abild Olesen
Member of the Board of Directors
Born in 1972
Member of the Board of Directors since 2024
Education
■
Master’s degree in Economics and Business Administration
(Strategy, Organization and Leadership) from Copenhagen
Business School
Experience
Tina Abild Olesen brings extensive experience from several senior
leadership positions in the pharmaceutical industry latest as Senior
Vice President (SVP) of the Global Diabetes Franchise at Novo Nordisk
A/S. During her 16,5 years with Novo Nordisk, Tina in addition held
various positions like SVP of Global Commercial Strategy, General
Manager in Germany and head of Marketing in the Danish, Norwegian
and German affiliates. Prior to joining Novo Nordisk A/S, Tina worked
11,5 years for GlaxoSmithKline Pharma primarily across Commercial
functions (Prescription / OTC medicines and Vaccines) as well as
Corporate Affairs and New Business Development.
Shares held in Embla Medical
Tina holds no shares nor share options in Embla Medical.
Other
Tina has no interest links with Embla Medical’s main clients,
competitors or major shareholders. Tina is an independent
member of the Board.
INNOVATION
Embla Medical - 2025 Annual Report
| 49
GOVERNANCE
Executive
Management
Ólafur
Gylfason
Christian
Robinson
André
Rocha
The Executive Management team consists of the President and CEO, together
with seven senior leaders who hold executive responsibility
for our Business Areas and the functions of Corporate Finance, Operations,
Research and Development, and People, Strategy and Sustainability.
Together, they oversee the implementation of Embla Medical’s strategic
plans, drawing on extensive industry and leadership experience.
Collectively, the team brings decades of service within Embla Medical
and the broader medtech sector, providing continuity, stability,
and a strong foundation for long-term value creation.
See the biographies of the Executive Management members on the following page.
Conal
Harte
Lukas
Märklin
G. Arna
Sveinsdóttir
Margrét Lára
Fridriksdóttir
Sveinn
Sölvason
INNOVATION
Embla Medical - 2025 Annual Report
| 50
GOVERNANCE
Executive Management
Sveinn Sölvason
President and CEO
Born in 1978
With the company since 2009
Education
■
Master’s degree in Finance and Accounting (Cand. Merc.FIR) from
Copenhagen Business School
■
Bachelor’s degree in International Business from Copenhagen
Business School
Board Positions
■
Icelandic-American Chamber of Commerce, Board member
Experience
Before being appointed President and CEO of the company in 2022,
Sveinn served as the Chief Financial Officer for almost a decade.
Sveinn first joined the organization in 2009 where he initially took on
roles within Corporate Development and Treasury. Prior to that, he
worked at Marel, Kaupthing Bank, Goldman Sachs and HSH Nordbank.
Shares held in Embla Medical
68,342
G. Arna Sveinsdóttir
Chief Financial Officer
Born in 1966
With the company since 2022
Education
■
Master’s degree in Accounting and Finance from the University of
Uppsala, Sweden
■
Cand.oecon. degree from the University of Iceland
Board Positions
■
Fossar, Board member
Experience
Before joining the company in 2022, G. Arna held finance roles
at Kvika Bank and subsidiaries. Prior to that, she was at Teva
Pharmaceuticals/Actavis for ten years, including as the CFO of Teva
Pharmaceutical Generic R&D. During her time at Teva, she worked
and lived in Switzerland and in the US. G. Arna was an independent
consultant to financial institutions in Iceland before joining Teva
and worked in various finance roles at Kaupthing Bank 2001-2008,
including as the CFO. She also worked at Eimskip in Iceland and PWC
in Stockholm.
Shares held in Embla Medical
G. Arna holds no shares in Embla Medical.
Christian Robinson
President Americas & Global Bracing
Born in 1982
With the company since 2012
Education
■
Juris Doctorate from Harvard Law School
■
Bachelor’s Degree in English Literature from Brigham Young
University
Board Positions
■
National Association for the Advancement of Orthotics and
Prosthetics (NAAOP), Board member
Experience
Since joining the company in 2012, Christian served in several roles
including as General Counsel Americas, VP of Finance Americas, and
as Managing Director Americas. Prior to joining the organization, he
practiced corporate and transactional law with international law firm
Paul Hastings LLP with a focus on M&A and capital markets.
Shares held in Embla Medical
13,207
Ólafur Gylfason
EVP Chronic Solutions
Born in 1969
With the company since 1997
Education
■
Master’s degree in International Business Economics from Alborg
University in Denmark
■
Bachelor’s degree in Business Administration from Bifrost School of
Business in Iceland
Experience
Ólafur joined the company in 1997 as the sales manager for emerging
markets. He moved to The Netherlands in 2000 to establish and lead
the European region as part of the executive team and then shifted
his role over to the Americas region in 2013. Prior to his appointment
as Chief Commercial Officer in 2022, Ólafur was EVP of Global Sales &
Marketing and Prosthetics for six years.
Shares held in Embla Medical
32,808
INNOVATION
Embla Medical - 2025 Annual Report
| 51
GOVERNANCE
Executive Management
Margrét Lára Fridriksdóttir
EVP of People, Strategy & Sustainability
Born in 1978
With the company since 2000
Education
■
Master’s degree in Management and Strategy from the University
of Iceland
■
Bachelor’s degree in Business Administration from the University of
Iceland
Board Positions
■
Investment committee member of VEX I and VEX II
■
Icelandic Chamber of Commerce, Board member
■
Annata, Board member
Experience
Over the course of more than two decades at the company, starting
in 2000, Margrét has held key positions in finance, corporate strategy
and human resources. Prior to joining the Executive Management in
2013, Margrét served as Vice President of Corporate Strategy.
Shares held in Embla Medical
35,376
Lukas Märklin
Chief Operating Officer
Born in 1974
With the company since 2023
Education
■
Master’s degree in Mechanical Engineering from ETHZ Swiss
Federal Institute of Technology
Experience
Lukas was appointed Chief Operating Officer in 2023. Lukas came
to the company from Straumann, the world’s largest dental implant
manufacturer group. His career with Straumann spans over two
decades where he most recently served as Senior Vice President of
Operations. In between his time at Straumann undertaking diverse
positions, Lukas worked as Head of Global Operations Management
at Endress+Hauser Group.
Shares held in Embla Medical
Lukas Märklin holds no shares in Embla Medical.
Conal Harte
EVP of Patient Care
Born in 1980
With the company since 2016
Education
■
Bachelors Degree in International Business from National University
of Ireland, Galway
■
Diploma in Financial Management from Dublin Business School
Experience
Conal has worked in the O&P industry since 2004 in a variety of
commercial roles across international markets. He came to Embla
Medical in 2016 through the acqusition of Touch Bionics where he
served as General Manager (Europe) and subsequently assumed the
role of Managing Director Emerging Markets for Össur. He started
working in the Patient Care division in 2023 as Vice President in
Europe.
Shares held in Embla Medical
2,015
André Rocha
EVP of Research and Development (R&D)
Born in 1978
With the company since 2025
Education
■
Master of Business Administration (MBA), European School
of Management and Technology, Berlin, Germany
■
Master of Science in Economics, University of Porto, Portugal
■
Bachelor of Science in Electrical and Computer Engineering,
University of Porto, Portugal
Experience
Before joining the company in 2025, André served as Partner at global
management consulting firm, McKinsey & Company, for 13 years,
where his work focused primarily on R&D, innovation and product
development topics. His career also included R&D roles in several
companies and research institutions, including Nokia (formerly Nokia
Siemens Networks). Across his 25-year trajectory before Embla
Medical, André led teams across a wide range of geographies and
cultures, including the Nordics, Germany, the Netherlands, the U.S.,
India, Japan, and Iberia.
Shares held in Embla Medical
André Rocha holds no shares in Embla Medical.
FINANCIAL STATEMENTS
Embla Medical - 2025 Annual Report
| 52
Sustainability Statement
2025
FINANCIAL STATEMENTS
Embla Medical - 2025 Annual Report
| 53
Responsible for Tomorrow
®
INTERVIEW WITH
Bergthora Hlidkvist Skuladottir
Global Sustainability Director
Q1:
How does sustainability fit into
Embla Medical’s business strategy?
A:
Sustainability is embedded in our core strategy and
reflects who we are as a company. Our approach is
built on a strong foundation that aligns with our
values and business model. At the heart of it, we are
here to help people live healthier, more mobile lives
without limitations, and we want to do that in a way
that is responsible for the planet and for people.
That means using production methods that minimize
our environmental footprint, supporting global climate
action, and ensuring that inclusivity and transparency
are part of everything we do.
We are committed to creating a safe, inclusive
workplace and respecting human rights across our
value chain. Strong governance ties this all together by
keeping us transparent in our reporting, ensuring
ethical business practices, and maintaining robust
compliance systems.
All our sustainability efforts are managed within our
Responsible for Tomorrow program, which brings
together teams across departments, business areas,
and countries. This collaborative approach ensures
that sustainability is integrated into everyday
operations and decision-making.
Our ambition is to grow responsibly and create
long-term value, for society and for our business.
Q2:
What is the biggest challenge on
this journey, and how do you see it as
an opportunity?
A:
The biggest challenge today is delivering on our
climate commitments while continuing to grow
and reach more patients. Decoupling growth from
environmental impact is difficult, but it is also
a significant opportunity to innovate and lead.
This year, we are sharing our first climate transition
plan to meet our science-based targets. This plan
is an ambitious roadmap for sustainable growth
and resilience, pushing us to rethink how we
operate, explore new technologies, and strengthen
partnerships. By doing this, we’re not only cutting
emissions, we are making our business more efficient,
resilient, and prepared for future challenges.
For us, sustainable growth is not just about hitting
targets. It is about shaping a future where health,
mobility, and environmental care go hand in
hand. That vision inspires us every day and turns
challenges into opportunities.
Q3:
How do you stay committed amid
regulatory uncertainty?
A:
Regulations are constantly changing and
uncertainty is part of the landscape. However,
our commitment goes beyond compliance.
Sustainability is a long-term responsibility and
a strategic advantage. Rules may shift, but our
purpose does not.
Sustainability also strengthens our business.
By embedding risk management into our operations,
whether related to supply chain vulnerabilities,
climate-related impacts, or ethical compliance,
we reduce exposure to disruptions and remain
prepared. This proactive approach helps us anticipate
challenges and seize opportunities in a changing
market.
We are investing in transparency, innovation, and
partnerships because we believe businesses that lead
on sustainability will be more resilient. Our focus on
science-based targets and strong values ensures that
our progress is meaningful and future-ready.
At the end of the day, sustainability is about trust
and impact. Even in times of uncertainty, we remain
committed to doing what is right, for our patients,
our communities, and the environment.
FINANCIAL STATEMENTS
Embla Medical - 2025 Annual Report
| 54
SUSTAINABILITY STATEMENT
General Disclosures (ESRS 2)
Basis for Preparation
General Basis for Preparation
of Sustainability Statements (BP-1)
Embla Medical’s Sustainability Statement is prepared
on a consolidated basis unless otherwise specified
and incorporates data points from topical standards
identified as material through our Double Materiality
Assessment (DMA). This statement is inspired by
the principles of the Directive (EU) 2022/2464 (the
Corporate Sustainability Reporting Directive, CSRD)
and the European Sustainability Reporting Standards
(ESRS) issued by the European Commission. The term
“inspired by CSRD” indicates that this Statement
does not fully comply with all ESRS requirements. We
disclose all material qualitative information available
to us, including relevant policies and procedures. For
quantitative information, where we report on a metric,
we comply with all material data points as required per
the ESRS and clearly indicate any deviations regarding
methodology from the ESRS in the accompanying
accounting policies. Only quantitative data points for
2025 marked with the icon “ ” have been subject to
limited assurance by our auditor, PwC. The auditor’s
limited assurance report is included at the end of this
Statement.
Due to uncertainties regarding upcoming changes to
the standards, we will continue to report in the same
manner as in 2024. We believe this approach ensures
consistency and comparability.
Embla Medical has not excluded any information
related to intellectual property, know-how, innovation
results, or business-sensitive data. We remain
committed to transparency in our ongoing research
and development efforts.
Disclosures in Relation
to Specific Circumstances (BP-2)
The scope of reporting covers all Embla Medical
subsidiaries, unless otherwise stated. It encompasses
Embla Medical’s operations, as well as upstream
and downstream value chain impacts, risks, and
opportunities. When a new company is acquired,
environmental impact data from that entity is included
only after a full year of data has been collected.
This approach ensures data accuracy and comparability
and allows proper integration with our reporting
systems and assurance processes. Further details are
provided in the accompanying accounting policies.
We prioritize transparent reporting to provide our
stakeholders with a clear and accurate view of our
sustainability efforts. When data is unavailable, we rely
on well-founded estimations to ensure comprehensive
reporting. We regularly reassess our use of estimates
based on experience. Main estimations, assessments,
or changes in calculation methodologies are explained
in the accounting policies or in relevant chapters.
In the
chapter, the primary changes
in the greenhouse gas (GHG) emissions calculation for
current reporting year are:
■
To improve transparency, the tables in chapter E1-6:
Gross Scopes 1, 2, 3 and Total GHG Emissions have
been revised so that all information now appears
in two tables instead of three. As a result, the
additional Scope 3 categories that were previously
presented in a separate table are now included
within the Total GHG emissions.
■
The emissions calculations have been revised
for 3.1 Purchased Goods and Services and 3.2
Capital Goods by adjusting spend data for inflation.
Emission data for 2024 and the base year were also
adjusted for inflation and historical figures restated.
Furthermore, for 3.1 Purchased Goods and Services,
we updated the emission data for both 2024 and
the base year using more accurate information from
patient care facilities. The changes are reflected
in the restated historical figures.
■
Emissions from upstream and downstream
transportation are reported separately in their own
lines under 3.4 and 3.9 Upstream and Downstream
Transportation and Distribution. The changes also
apply to the 2024 figures and are restated in the
report.
■
The 2024 figure for 3.7 Employee commuting has
been
restated using updated commuting distance data.
■
The 2024 mobile combustion figures have been
restated due to inclusion of acquired companies.
The changes mentioned above are also reflected
in the total figures. For more information on the
changes above, see accounting policies in chapters
Energy Consumption and Mix (E1-5) and Gross
Scopes 1, 2, 3 and Total GHG Emissions (E1-6).
In the
chapter, this year’s report covers
S1-10: Adequate wages disclosure requirements for
the first time. In S1-13: Training and Skills Development
Metrics, the reported figures for the average number
of training hours per employee in 2024 have been
restated. This adjustment was necessary due to
the identification of some double counting in the
previously recorded training hours.
Our accounting policies are applied consistently
throughout the financial year and correspond with the
comparative figures, where applicable. All greenhouse
gas data points (GHG Scope 1-3) are reported based on
the Greenhouse Gas Protocol.
We have applied time horizons for material
impacts, risks, and opportunities, as presented in
Embla Medical is required to comply with a wide
array of laws, regulations, and treaties pertaining
to sustainability, at both international and local
levels. However, a comprehensive list of data points
derived from other EU legislation is not included in
the current year’s Sustainability Statement and will
be phased in over the coming years.
FINANCIAL STATEMENTS
Embla Medical - 2025 Annual Report
| 55
Governance
The Role of Our Management
(GOV-1)
Our management plays a central role in ensuring the
governance processes, controls, and procedures that
are necessary to monitor, manage, and oversee
sustainability-related impacts, risks,
and opportunities.
The Chief Financial Officer (CFO) is responsible
for enterprise risk management by establishing a
process for identifying, assessing, managing, and
reporting risks that may affect the achievement
of the company’s strategic objectives. This includes
ESG control systems to ensure the accuracy of the
company’s sustainability reporting and compliance
with relevant laws and regulations.
Sustainability is embedded into our strategy
and throughout our organization, and our
Responsible for Tomorrow® program ensures clear
departmental ownership and responsibilities for
metrics and targets. In 2025, the program’s focus
was on establishing a climate transition plan,
conducting a climate scenario analysis and working
on circular pilot projects.
The Program Steering Committee, chaired by the
Executive Vice President of People, Strategy &
Sustainability, sets our sustainability strategy and
ensures its execution throughout the organization.
The Committee meets at least quarterly and
reports to the Executive Management team, led
by the Chief Executive Officer (CEO).
Our Sustainability Commitment
We provide products and services that contribute
to good health, using responsible production
methods and supporting climate action, while
being a sponsor for inclusivity and transparency.
We believe that sustainable growth is the only way
to build a successful and responsible business for
the benefit of future generations.
The Internal Control & Risk team ensures that the results of the Double Materiality Assessment are
incorporated into the annual Enterprise Risk Assessment. Identified material risks are reported to the
Steering Committee of the Responsible for Tomorrow program to validate their prioritization and create
mitigation action plans to address the prioritized risks.
The sustainability reporting process is overseen by the Audit Committee. According to the Terms of
Reference for the Audit Committee of Embla Medical hf., the Committee monitors the financial and
sustainability reporting process, makes recommendations to ensure integrity, monitors progress on
sustainability targets, reports results to the Board, and assesses the company’s internal control and
enterprise risk management systems. The status of sustainability reporting is reported to the Audit
Committee four times a year.
FINANCIAL STATEMENTS
Embla Medical - 2025 Annual Report
| 56
Sustainability Awareness of Our
Management (GOV-2)
The Executive Management team is updated at least
once a year on the identification and assessment
of material impacts, risks, and opportunities.
The Steering Committee of the Responsible for
Tomorrow program regularly receives information
on the results of due diligence processes, as well as
the effectiveness of policies, actions, and targets
in mitigating risks and achieving sustainability
objectives. Chaired by the Executive Vice President
of People, Strategy & Sustainability, the Responsible
for Tomorrow Steering Committee reports
directly to the Executive Management team on
material sustainability-related impacts, risks, and
opportunities. Additionally, ad-hoc updates are
provided if critical issues arise. The results of the
Double Materiality Assessment are reported to the
Audit Committee once a year. Our administrative,
management, and supervisory bodies actively
incorporate sustainability impacts, risks, and
opportunities into the company’s strategy, decision-
making, and risk management processes, ensuring
alignment with long-term goals.
Sustainability Related Incentives
(GOV-3)
Including sustainability performance in management
incentives is essential to aligning executive actions
with long-term corporate goals and stakeholder
expectations, thereby driving accountability and
progress. Embla Medical first incorporated social-
related sustainability metrics into its Executive
Committee Incentive Scheme. In 2025, the scope was
expanded to include environmental and governance
metrics, ensuring a comprehensive approach to
sustainability performance.
Statement on Due Diligence (GOV-4)
As part of our commitment to sustainable
business practices, and inspired by the Corporate
Sustainability Reporting Directive (CSRD), Embla
Medical has implemented due diligence processes
to assess and manage the environmental, social,
and governance (ESG) impacts of our operations
and value chain. These processes ensure compliance
with relevant sustainability legislation, mitigate
risks, and promote long-term value creation for our
stakeholders. Based on our due diligence findings,
we implement mitigation actions, for all material
risks identified in the Double Materiality Assessment.
We continuously track the effectiveness of our
actions using regular reporting mechanisms.
This approach ensures progress toward our
sustainability targets and enables us to adjust
strategies as needed. Our due diligence process
involves ongoing engagement with stakeholders,
helping us to identify new risks, validate our findings,
and ensure that our actions reflect stakeholder
concerns and expectations.
Risk Management and Internal Controls
(GOV-5)
Risks are a natural and integral part of our business
activities, and our risk profile is continuously evolving.
We aim to mitigate these risks and reduce them to an
acceptable level through effective risk management.
See more in our
The results of the Double Materiality Assessments
are integrated into our yearly Enterprise Risk
Assessment process to ensure alignment with the
organization’s strategic goals. In the climate risk
assessment, key employees, identified as Subject
Matter Experts from various functions, evaluate
risks and opportunities across the entire value chain.
This assessment covers physical, regulatory,
technological, reputational, and financial dimensions,
considering both the likelihood and impact on our
operations. To ensure the accuracy, completeness,
and consistency of our sustainability reporting,
Embla Medical is in the process of strengthening risk
management and internal control processes.
Our internal controls over sustainability reporting
include:
■
Data Governance: We have implemented
structured data governance to ensure the accuracy
and reliability of the ESG data collected across
our operations. This includes data ownership,
responsibility for ESG metrics,
and clear reporting lines.
■
Control Activities: We are in the process of
embedding control activities into the sustainability
reporting process, including checks and balances,
reconciliations, and validation procedures for
data inputs and outputs. These controls are
designed to prevent, detect, and correct errors or
irregularities in ESG reporting. Processes are still
in development for some activities, and we are
continually working on improving the controls.
■
Training and Awareness: We conduct training for
relevant employees to ensure they understand
the importance of sustainability reporting and
their role in maintaining the quality and integrity
of ESG disclosures.
To further enhance confidence in the reliability
of our sustainability disclosures, external auditors
provide limited assurance on selected quantitative
data points.
FINANCIAL STATEMENTS
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Strategy
Strategy, Business Model and Value Chain (SBM-1)
Embla Medical is a leading global provider of innovative mobility solutions, dedicated to helping people live
a Life Without Limitations®. Our mission is to improve people’s mobility, and we do that through the delivery
of Prosthetics, Neuro Orthotics, and Bracing & Supports solutions, along with Patient Care. An overview
of our products, services, markets, and business models can be found in other chapters of this report.
Embla Medical places a strong emphasis on product quality, which is fundamental to our processes as a medical
device company. With a broad global presence, our products are available in over 100 countries and registered
in compliance with local medical device regulations.
We have adopted a management system approach to drive our sustainability initiatives. The Double
Materiality Assessment process identifies which topical standards are material to our operations.
For each standard, we manage, and control identified material impacts, risks, and opportunities by
implementing relevant policies, processes, actions, metrics, and targets. This is followed by internal control,
progress reporting, and assurance. We are continually enhancing this management system to improve our
sustainability efforts. Reflecting the results from the Double Materiality Assessment, our key sustainability-
related goals focus on developing quality products and services that improve people’s mobility, reducing
our greenhouse gas emissions to meet our science-based targets, and enhancing the well-being and
development of our employees within an inclusive and safe workplace.
Our primary sustainability challenge today is climate action. Embla Medical faces a dilemma: while expanding
our operations to reach more patients and enhance their quality of life is crucial, this growth is currently linked
to increased greenhouse gas emissions due to global infrastructure constraints. Our main challenge is to
decouple our growth from these emissions. For more details, please refer to our
We develop and manufacture a wide range of prosthetic, neuro orthotic and bracing & support solutions,
and serve patients in need of various mobility solutions in our patient care facilities across the globe.
Our business model is patient centric. It encompasses the innovation of new product solutions, manufacturing
of both off-the-shelf and customized high-quality solutions, and sales and marketing through direct sales
channels and distributors. We prioritize patient care through our own O&P clinics as well as independent
providers, working closely with prescribers and payers. Notably, more than 90% of our products and services
are reimbursed by public healthcare systems and private insurance providers. Innovation to address emerging
patient needs drives our business model. Our goal is to deliver cost effective, high-quality medical solutions
that provide value for patients and the healthcare systems while minimizing our environmental impact.
In the orthopaedic industry, purchasing decisions involve multiple stakeholders and decision-makers,
each playing a specific role. These stakeholders can be categorized into five groups: Patients, who are the
end-users of our products; Prescribers, healthcare professionals who prescribe the products; Providers,
healthcare professionals who provide patients with products, such as Certified Prosthetist Orthotists (CPOs)
doctors, and other clinical specialists; Payers, both public and private insurance companies that cover the cost;
and Influencers, including healthcare systems, insurance companies, medical associations, patients and their
families. For more information, please refer to our
At Embla Medical, we apply the highest quality standards for all our purchased raw materials, components,
and finished goods. Our commitment is to deliver safe and reliable products to our customers and the
patients we serve. The primary raw materials utilized in our manufacturing processes include metals, silicone,
composites, and plastics, sourced from our trusted key suppliers.
FINANCIAL STATEMENTS
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Interests and Views of Stakeholders (SBM-2)
We value feedback from our stakeholders and strive to understand their perspectives, expectations and concerns regarding our sustainability efforts. Our key stakeholders are our employees, healthcare professionals, patients,
suppliers, shareholders/investors and payers. The following table highlights how Embla Medical engages with these stakeholders to ensure their interests and views are considered in our strategy and business model.
STAKEHOLDERS
PURPOSE OF ENGAGEMENT
HOW ENGAGEMENT IS ORGANIZED
EXAMPLES OF OUTCOMES FROM THE ENGAGEMENT
Employees
To foster a culture that attracts, retains, and
actively engages skilled employees by valuing
and addressing their perspectives and concerns.
■
One-on-one or group meetings, news on company intranet, location announcements,
employee meetings, performance reviews and check-ins.
■
Global engagement surveys.
■
Quarterly employee meetings to inform all employees of updates within the
company.
■
Action plans from engagement survey outcome.
■
Policy updates.
■
Communication to new and existing employees based on
feedback.
Healthcare Professionals
(Customers)
To deliver exceptional customer service while
advancing product and solution expertise within
the O&P industry.
■
Regular communication with healthcare professionals through in-person visits and
customer service channels.
■
Regular training and education conducted in-person and virtually.
■
Tradeshows, conferences and webinars.
■
Customer feedback processes.
■
Product and service improvements.
■
Supporting customers in providing optimal clinical
outcomes to patients.
Patients
(End-Users)
To guide and support our end-users in using our
product solutions effectively to enhance their
quality of life.
■
Interaction with patients through the process of fitting and caring for their medical
needs.
■
Communication via online platforms, social media and targeted publications.
■
On-site events such as mobility clinics and other user experience days where all
individuals are welcome.
■
Education and engagement during product development.
■
Product users educated about solutions available for
different needs.
■
Product improvements.
■
Community where end-users seek advice and support.
Suppliers
To ensure responsible sourcing by promoting a
safe and respectful working environment in our
value chain and reducing environmental impact.
■
Collaborate with suppliers on material selection to identify high-quality and eco-
friendly materials.
■
Screening of suppliers in relation to Environmental, Social and Governance aspects.
■
Performing Social Audits and Fire Safety Audits at high-risk suppliers.
■
Performing annual surveys on environmental management at high-emitting
suppliers.
■
Code of Conduct Training.
■
Suppliers well-informed on Embla Medical’s
sustainability strategy.
■
Enhanced trust and reliability.
■
Increased collaboration with suppliers on improvements
to lower emissions.
Shareholders / Investors
To ensure that ESG metrics are tied to business
objectives in a transparent and measurable way,
driving responsible behavior and attracting ESG
focused investors.
■
Regular outreach and engagement through investor road show activities and
conferences.
■
Quarterly releases and conference calls.
■
Events such as Capital Markets Day, Expert Calls and Analyst Days.
■
ESG ratings through a global ESG disclosure system (CDP, Sustainalytics etc.)
■
Investor confidence through timely responses and
transparency.
■
Continuous improvement of ESG disclosures leads to
improved ESG scores and industry ranking.
■
Positive brand reputation.
Payers
(Healthcare Reimbursement
Systems)
To ensure alignment on reimbursement policies,
promote accessibility to innovative products,
and demonstrate the value of medical solutions.
■
Regular meetings and consultations with payers to understand reimbursement
policies and requirements.
■
Providing clinical evidence and outcomes to support reimbursement.
■
Participation in industry forums and policy discussions.
■
Improved reimbursement policies for innovative medical
solutions.
■
Expanded patient access to products and services.
■
Strengthened relationships with payers and
policymakers.
FINANCIAL STATEMENTS
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Material Impacts, Risks and Opportunities (SBM-3)
The Double Materiality Assessment (DMA) is designed to identify material sustainability-related Impacts, Risks,
and Opportunities (IROs) and the results are the basis for determining the disclosures in Embla Medical’s
Sustainability Statement.
In 2025, the DMA results were that 8 out of 12 ESRS standards are material to Embla Medical, consistent with
the DMA results in 2024 and 2023. Besides ESRS 2 on General Disclosure, the material standards identified are:
E1 Climate Change, E2 Pollution, E5 Resource Use and Circular Economy, S1 Own Workforce, S2 Workers in the
Value Chain, S4 Consumers and End-Users, and G1 Business Conduct. The results align with and reinforce our
sustainability strategy. We strive to reduce our greenhouse gas emissions, have a clear focus on our resource
use and strive to move from a linear to a circular economy. We are a global company with a clear strategy on
the safety of our own workforce, workers in our value chain, and our patients. Additionally, we maintain a strong
focus on opportunity and inclusion, and practice transparent and ethical business conduct.
In the table below we have listed all identified material Negative and Positive Impacts, Financial Risks and
Opportunities across our operations and value chain related to sustainability topics. Please refer to our topical
chapters for more information on our responses to identified material impacts, risks and opportunities.
TOPIC
MATERIAL IMPACT, RISK OR OPPORTUNITY
EMBLA MEDICAL’S RESPONSE
VALUE CHAIN
TIME HORIZON
E1 Climate Change
Negative Impact
Greenhouse gas emissions,
contributing to climate change.
To reduce the impact, we have set science-based targets and actions
to meet them. We have a certified environmental management system
according to ISO 14001:2015 in our largest manufacturing and distribution
sites, and in some of our patient care facilities.
Upstream
& Own Operations
Medium term
(1-5 years)
Financial Opportunity
Innovation in low-emission
products and packaging, renewable
energy and energy efficiency.
We work on energy efficiency, source around 95% of our purchased
electricity from renewable energy sources and are exploring new
opportunities towards innovation on low-emission solutions for a
transition to a low carbon economy.
E2 Substances of Concern
Financial Risks
Increased sourcing and testing
costs due to restrictions on
substances of concern.
We are continuously improving our management of substances and
innovation towards safer alternatives.
Own Operations
Short term
(current reporting
year)
Note: Table continues on the next page
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TOPIC
MATERIAL IMPACT, RISK OR OPPORTUNITY
EMBLA MEDICAL’S RESPONSE
VALUE CHAIN
TIME HORIZON
E5 Circular Economy
Negative Impact
Waste with embedded greenhouse
gas emissions from raw materials.
Active innovation towards circular solutions and collaborative supplier
management. Partnering with responsible waste management service
companies.
Across
Short to medium
term (current
reporting year
to 5 years)
Financial Risks
Failure to meet new regulatory and
tender requirements or customer
expectations, resulting in reduced
sales.
Key focus is to work towards innovation on low-emission solutions on
products and packaging.
Financial Opportunity
Innovation in circular solutions
enabling efficiency.
We innovate towards low-emission solutions for products and packaging
and continuously improve our processes to enhance raw material yield
and waste management. These efforts are driven by our R&D investments,
which are key to innovation and long-term sustainability.
S1 Employee Engagement,
Retention and Attraction
Negative Impact
Low job satisfaction harms well-
being, reducing engagement, and
affecting workplace inclusion.
We foster an inclusive workplace through open engagement,
work-life balance, and address issues like discrimination and inequality.
Own workforce
Medium term
(1-5 years)
Financial Risk
Potential talent loss due to low job
satisfaction or morale.
We invest in development, monitor engagement, and promote retention
through internal career opportunities.
S1 Health and Safety at
Work
Negative Impact
Potential health issues due to
workplace incidents.
We have a strong culture for safety and operate an efficient safety
management system in our largest manufacturing and distribution sites,
as well as some patient care facilities. Safety is our top priority.
Own workforce
Short term
(current reporting
year)
S2 Workers in the Value Chain
Negative Impact
Adversely affected workers’ rights
and well-being due to unethical
practices in the supply chain.
We have implemented policies such as the Code of Conduct, Human
Rights Policy, and Speak-Up Policy, and encourage reporting of unethical
behavior. High-risk suppliers are subject to enhanced ESG screening and
annual external compliance and social audits.
Across
Medium term
(1-5 years)
Note: Table continues on the next page
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TOPIC
MATERIAL IMPACT, RISK OR OPPORTUNITY
EMBLA MEDICAL’S RESPONSE
VALUE CHAIN
TIME HORIZON
S4 Data Privacy
Financial Risks
Penalties, reputational loss, and
potential business impact due to
non-compliance.
We have adequate policies and procedures in place as well as regular
training and awareness.
Own Operations
& Downstream
Medium term
(1-5 years)
S4 Product Quality
Positive Impact
Improved mobility and
participation in society thanks
to high quality products.
Key focusing on producing high quality products, allowing users to become
mobile. Our processes include comprehensive testing of clinical benefits of
our products.
Own Operations
& Downstream
Medium term
(1-5 years)
G1 Business Ethics
Financial Risk
Penalties, stakeholder trust loss.
We provide training and awareness of our Code of Conduct and core values
Honesty, Frugality and Courage as well as other ethical policies, including
promoting the Speak-Up Line.
Across
Medium to long
term (from 1 year
to more than 10
years)
Financial Opportunity
Investor confidence, competitive
differentiation.
Commitment to follow industry standards and guidelines regarding
Corporate Governance Reporting.
G1 Regulatory & Trade
Environment
Financial Risks
Higher compliance cost, legal
penalties and reputational damage.
Exposure to changing trade
regulations.
Processes in place to monitor upcoming regulatory changes and to explore
alternative routes and adjust contracts to mitigate financial impacts and to
adapt as needed.
Across
Short to long term
(current reporting
year to more than
5 years)
FINANCIAL STATEMENTS
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FINANCIAL STATEMENTS
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As part of the 2025 update of the Double Materiality Assessment, the company reviewed assessment of all material impacts, risks and opportunities (IROs). This reassessment resulted in a few changes to the materiality status
of topics compared to the 2024 reporting period. The changes reflect updated knowledge, regulatory developments, and process improvements. The changes did not result in an increase or decrease in the number of mandatory
ESRS disclosures, as the underlying topical standards remain material for other impact or opportunity dimensions. The key changes are outlined below:
TOPIC
CHANGE IN MATERIALITY
REASON FOR CHANGE
IMPACT ON ESRS REPORTING
E1 Climate Change
Financial Risk → Not Material
Reduced likelihood of cost increases due to regulatory changes
(EU Omnibus) and no observed physical climate-related financial
impacts.
No change; E1-9 becomes non-mandatory but is already subject
to phase-in. E1 remains material for Negative Impact and Financial
Opportunity.
S2 Workers in the Value Chain
Financial Risk → Not Material
No financial impacts observed; suppliers operate under stable
ethical standards.
No change; S2 remains material for Negative Impact.
S4 Product Quality
Negative Impact → Not Material
Low incidence of product quality issues; likelihood below
threshold.
No change; topic remains material for Positive Impact.
S1 Employee Engagement,
Retention and Attraction
New -> Material as Financial Risk
Separation of impact and risk dimensions; clarified assessment
shows potential financial effects of talent loss.
No change; disclosures already required due to Negative Impact
materiality.
FINANCIAL STATEMENTS
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Impact, Risk and Opportunity Management
Double Materiality Assessment Process (IRO-1)
The purpose of a Double Materiality Assessment (DMA) is to identify, assess, prioritize and monitor potential and
actual impacts on people and the environment (Impact Materiality) as well as business risks and opportunities
arising from sustainability topics (Financial Materiality). At Embla Medical, the DMA is conducted by a cross-
functional team with members from Internal Control & Risk, Global Sustainability, Finance, Operations, Human
Resources and other relevant subject matter experts. While the previous assessment was based on input from
internal stakeholders only, in 2025 the process was further strengthened by involving external stakeholders,
including selected customers and suppliers. Their perspectives provided valuable insights into the company’s
sustainability-related impacts and risks across the value chain. The process begins with establishing a mutual
understanding through business model mapping, value chain documentation, and stakeholder mapping. Identified
stakeholders are then engaged to validate the list of potential sustainability topics and provide feedback on their
relevance and significance. Subsequently, Impacts, Risks, and Opportunities (IROs) are identified and listed, and
their materiality is assessed according to a defined methodology inspired by the ESRS requirements.
When identifying IROs related to climate change (E1), Embla Medical has consistently reported greenhouse gas
emissions in accordance with the Greenhouse Gas Protocol and set Science-Based Targets validated by the SBTi.
Climate change is therefore considered material for Embla Medical. Since 2023, we have conducted climate risk
assessments as part of our Enterprise Risk Assessment. These assessments evaluated Physical Climate Risks and
Transition Risks related to regulations, technology, reputation, and financial aspects. The 2025 climate change
risk assessment shows shift in risk significance compared to 2024, with financial and regulatory risks decreasing,
technology risks increasing, and physical risks remaining at a medium level, while more granular site-level risks
were identified as part of improvements to the assessment process. Overall, the results highlight the need for
ongoing monitoring and mitigation to maintain resilience against evolving climate-related challenges.
The material IROs related to Pollution (E2) is primarily due to the financial risk of potential restrictions on
chemical substances used in our manufacturing. Embla Medical has a certified environmental management
system at our largest manufacturing and distribution sites and has screened these locations to identify actual
and potential pollution-related IROs in our operations. Pollution from our own operations was not deemed
material, but we plan to evaluate the upstream value chain as part of our supplier management in the next
1-4 years. We have not conducted consultations with affected communities.
IROs related Water and marine resources (E3) was not deemed material for Embla Medical. We have a certified
environmental management system in place at our largest manufacturing and distribution sites and comply with
applicable local regulations. These locations have been screened to identify actual and potential water and marine
resource-related IROs within our operations. We plan to assess water and marine resources in our upstream
value chain as part of our supplier management processes over the next 1-4 years. We have not conducted
consultations with affected communities in relation to this topic.
Embla Medical has not assessed the impact on Biodiversity and Ecosystems (E4). While we acknowledge the
growing importance of this topic, it has not been deemed material due to limited information at this stage.
As we gain greater insight into impacts within our upstream value chain and strengthen collaboration with our
suppliers, the outcome of the DMA for this topic may change.
We have screened our operations to identify actual and potential IROs related to Resource Use and Circular Economy
(E5), both in our own operations and downstream value chain, and this topic has been deemed material. We have a
robust waste management system and as a global market player, Embla Medical acknowledges the importance of
circular solutions to reduce the use of virgin raw materials to lower greenhouse gas emissions. In 2025, we conducted
an impact analysis of major product portfolios, identifying opportunities for eco
-
design and service
-
based business models.
Embla Medical has screened its own operations, suppliers and business partners to identify potential risks and
opportunities related to Business Conduct (G1). Key risks identified are corruption and bribery, both for reputational
risk and financial risk. As a global medical device manufacturer and service provider, changes in regulatory
environment and reimbursement systems for medical devices can have a negative impact on the company.
In 2025, the company conducted a physical climate scenario analysis for its key locations. The assessment applied
IPCC-aligned scenarios (SSP1–2.6, SSP2–4.5, SSP3–7.0 and SSP5–8.5) and evaluated both acute and chronic physical
climate hazards across current conditions and future horizons (2030–2100). The results for the most likely scenario,
SSP2–4.5 by 2050, were used for further analysis and mitigation actions. The results were used in our Annual
Enterprise Risk Assessment and integrated into our Property Risk Assessment. The findings highlight differentiated
risk profiles across the company’s locations and inform prioritization within the climate risk management and
adaptation strategy.
Impact Materiality
The Impact Assessment contains assessment based on scale, scope, irremediability (together: severity) and
likelihood with the use of scoring from 1 to 5 as shown in the table below. For environmental categories the scope
is assessed with regard to how many sites and/or suppliers, products, and immediate surroundings are relevant.
For social and governance categories the scope is assessed regarding number of rights holders affected.
SCORING
SEVERITY / IMPACT
LIKELIHOOD
Scale
Scope*
Irremediability
1
Very light impact
Low number
Very easy
Rare:
> 10 years
2
Light impact
Several / Low
number
Easy to remedy
Unlikely:
5-10 years
3
Medium impact
Many / Medium
number
Possible
Possible:
2-5 years
4
Heavy impact
Large / High
number
Difficult
Likely:
1-2 years
5
Large impact
Major / Very high
number
Non-remediable
Almost certain:
< 1 year
*See the severity and likelihood scale on next page
FINANCIAL STATEMENTS
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Financial Materiality
Financial Assessment is based on the potential financial effect on the company’s revenue, costs, cash
flow, and market position over short-, medium-, and long-term horizons. Financial Assessment contains
assessment based on the size of the financial impact (risk) and likelihood (probability) with the use of scoring
from 1 to 5 as shown in the table below.
SCORING
SEVERITY / IMPACT
LIKELIHOOD
1
0% - 25% Threshold
Rare: > 10 years
2
25% - 75% Threshold
Unlikely: 5-10 years
3
75% - 100% Threshold
Possible: 2-5 years
4
100 - 200% Threshold
Likely: 1-2 years
5
> 200% Threshold
Almost certain: < 1 year
Impacts, Risks and Opportunities are scored on a severity and likelihood scale to prioritize high-risk areas.
Material risks are considered as those, which based on the severity and likelihood assessment, have been
marked as high as shown in the table below.
DMA and Enterprise Risk Assessment
After risks are assessed, Embla Medical prioritizes them based on their potential financial impact and
strategic significance. High-priority risks are managed with specific action plans, including mitigation
strategies and resource allocation. Results of the DMA are incorporated into Enterprise Risk Management.
The Steering Committee of the Responsible for Tomorrow program makes decisions on mitigation actions.
In addition to risks, the company identifies opportunities that are integrated into the company’s business
model, aiming to leverage competitive advantages and enhance financial performance.
Embla Medical monitors the risks and opportunities through its Enterprise Risk Management system,
ensuring that emerging risks are identified and that mitigation strategies are adjusted. Risks that have been
identified as material during Double Materiality Assessment are incorporated into the company’s enterprise
risk register. Updates are provided to the Executive Management and the Audit Committee to ensure
alignment with the overall corporate strategy. Our Double Materiality Assessment is reviewed and updated
at least annually.
FINANCIAL STATEMENTS
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Disclosure Requirements Covered in the Sustainability Statement (IRO-2)
The table below lists the Disclosure Requirements that Embla Medical is reporting on following the outcome of the Double Materiality Assessment, including the page numbers where the related disclosures can be found
in the Sustainability Statement. Disclosure requirements with quantitative data points that have undergone limited assurance are marked with an icon “ ”.
ESRS
DR
NAME OF DISCLOSURE REQUIREMENT (DR)
PAGE
General Information
ESRS 2
BP-1
General basis for preparation of the sustainability statement
BP-2
Disclosures in relation to specific circumstances
GOV-1
The role of the administrative, management and supervisory bodies (also covering G1)
GOV-2
Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies
GOV-3
Integration of sustainability-related performance in incentive schemes (also covering E1)
GOV-4
Statement on due diligence
GOV-5
Risk management and internal controls over sustainability reporting
SBM-1
Strategy, business model and value chain
SBM-2
Interests and views of stakeholders (also covering S1, S2, S4)
SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model (also covering E1, S1, S2, S4)
IRO-1
Description of the process to identify and assess material impacts, risks and opportunities (also covering E1, E2, E5, G1)
IRO-2
Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement
Environmental Information
N/A
N/A
Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation)
ESRS E1
E1-1
Transition plan for climate change mitigation
E1-2
Policies related to climate change mitigation and adaptation
E1-3
Actions and resources in relation to climate change policies
E1-4
Targets related to climate change mitigation and adaptation
E1-5
Energy consumption and mix
E1-6
Gross Scopes 1,2,3 and Total GHG emissions
E1-7
GHG removals and GHG mitigation projects financed through carbon credits
Note: Table continues on the next page
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ESRS
DR
NAME OF DISCLOSURE REQUIREMENT (DR)
PAGE
ESRS E2
E2-1
Policies related to pollution
E2-2
Actions and resources related to pollution
E2-3
Targets related to pollution
E2-5
Substances of concern and substances of very high concern
ESRS E5
E5-1
Policies related to resource use and circular economy
E5-3
Targets related to resource use and circular economy
E5-4
Resource inflows
E5-5
Resource outflows
Social Information
ESRS S1
S1-1
Policies related to own workforce
S1-2
Processes for engaging with own workers and workers’ representatives about impacts
S1-3
Processes to remediate negative impacts and channels for own workforce to raise concerns
S1-4
Taking action on material impacts on own workforce
S1-5
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
S1-6
Characteristics of the undertaking’s employees
S1-7
Characteristics of non-employees in the undertaking’s own workforce
S1-8
Collective bargaining coverage and social dialogue
S1-9
Diversity metrics
S1-10
Adequate wages
S1-13
Training and skills development metrics
S1-14
Health and safety metrics
S1-16
Metrics (pay gap and total remuneration)
S1-17
Incidents, complaints and severe human rights impacts and incidents
Note: Table continues on the next page
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ESRS
DR
NAME OF DISCLOSURE REQUIREMENT (DR)
PAGE
ESRS S2
S2-1
Policies related to value chain workers
S2-2
Processes for engaging with value chain workers about impacts
S2-3
Processes to remediate negative impacts and channels for value chain workers to raise concerns
S2-4
Taking action on material impacts on value chain workers
S2-5
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
ESRS S4
S4-1
Policies related to consumers and end-users
S4-2
Processes for engaging with consumers and end-users about impacts
S4-4
Taking action on material impacts on consumers and end-users
S4-5
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
Governance Information
ESRS G1
G1-1
Business conduct policies and corporate culture
G1-2
Management of relationships with suppliers
G1-3
Prevention and detection of corruption or bribery
G1-4
Incidents of corruption or bribery
G1-5
Political influence and lobbying activities
G1-6
Payment practices
FINANCIAL STATEMENTS
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SUSTAINABILITY STATEMENT
Our Environment
Embla Medical has a positive impact through our innovative products and helping people live a Life Without
Limitations®. At the same time, we take responsibility for our environmental impact and continually improve
our environmental management and performance. However, we are faced with a dilemma: while expanding our
operations to reach more patients and enhance their quality of life is crucial, this growth is currently linked to
increased greenhouse gas emissions due to global infrastructure constraints. Our main challenge is to decouple
our growth from these emissions. Our efforts contribute to the UN Sustainable Development (SDGs) Goal 12 on
Responsible Consumption and Production, and Goal 13 on Climate Action. As a signatory of the United Nations
Global Compact, we are committed to upholding its environmental principles, integrating sustainability into our
operations, and supporting global efforts to protect our planet.
Climate Change (ESRS E1)
Addressing climate change is crucial for ensuring the long-term sustainability and resilience of our business.
By actively working on climate initiatives, we not only mitigate risks associated with climate change but also
unlock opportunities for innovation and growth. Our commitment to climate action demonstrates
our responsibility to stakeholders and helps us align with global sustainability goals, ultimately contributing
to a healthier planet and a more sustainable future for all.
Climate Transition Plan (E1-1)
In 2025, Embla Medical established a Climate Transition Plan inspired by the requirements of the European
Sustainability Reporting Standards (ESRS) and the Science Based Targets initiative (SBTi). Our science-based
targets are consistent with the Paris Agreement objective of limiting global warming to 1.5°C.
Past and Current Actions
Since 2023, we have initiated supplier sustainability assessments, implemented eco-design in our packaging,
investigated and piloted circular solutions, optimized our transportation and distribution, improved energy
FINANCIAL STATEMENTS
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efficiency, and transitioned over 95% of our
electricity consumption to renewable energy
sources. We have also implemented ISO 14001:2015
environmental management systems at selected
sites for several years. Together, these actions form
the foundation for our transition plan.
Emissions Profile and Risks
As disclosed in 2024, approximately 90% of
Embla Medical’s base year GHG emissions occur
in Scope 3 (Purchased Goods and Services, and
Transportation and Distribution), while Scope 1 and
2 together account for approximately 10%. This
indicates a significant dependency on raw materials
and logistics, creating potential locked-in emissions
and transition risks.
Strategic Actions (2026–2030)
Our Climate Transition Plan focuses on five
workstreams: Sustainable Procurement, Eco-Design
Integration, Circular Solutions, Transportation
Optimization, and Energy Transition. Each
workstream includes tailored training and awareness
programs to support effective implementation.
Integration with Business Strategy
The Climate Transition Plan is embedded within
our Responsible for Tomorrow program, and
integrated into product development, supply chain
management, and operational efficiency initiatives.
Governance and Monitoring
Governance of the Climate Transition Plan is
anchored in our Responsible for Tomorrow program,
ensuring cross-functional accountability and
oversight. Progress is monitored through defined
KPIs and reported annually to ensure transparency
and accountability.
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Policies (E1-2)
The Embla Medical Environmental Policy states that we aim to minimize our negative environmental impact
by reducing greenhouse gas emissions to mitigate climate change, adapt to climate change impacts, while
promoting energy efficiency and transitioning to renewable energy sources.
Actions (E1-3)
Embla Medical’s actions and resources in relation to climate change policies are managed under our Responsible
for Tomorrow program, explained in
Climate Transition Plan, conducting a Climate Scenario Analysis, and executing pilot projects on circular solutions.
Life Cycle Assessment (LCA)
Embla Medical has developed internal expertise and established a procedure for conducting LCAs on our
products. Previously, external consultants performed LCAs for our key products. This internal expertise is
crucial to our ongoing efforts to map emissions across our product portfolio and serves as the foundation for
implementing feasible design changes to reduce emissions and support our efforts towards circular solutions.
Circular Solutions
We are committed to advancing circular solutions that optimize material use and support sustainable
growth, strengthening resilience in the healthcare sector.
Our recent stakeholder engagement and market analysis confirmed that permanent product ownership is not
always required to meet customer needs. In some cases, temporary or metered access to mobility-enhancing
solutions offers greater value and sustainability benefits.
Based on these insights, we conducted an impact analysis of major product portfolios in 2025, identifying
opportunities for eco-design and service-based business models. We completed a circular pilot in full compliance
with medical device regulations, validating the feasibility of circular product use. Additional pilots are under
evaluation to deepen understanding and quantify customer benefits.
To accelerate progress, we launched the Circular Solutions Initiative under our Responsible for Tomorrow
program to capture, prioritize, and implement scale-up projects. These actions will enable systematic integration
of circularity into our business practices and set the foundation for broader adoption in the coming years.
Suppliers and Environmental Performance
Approximately 90% of our base year emissions originate from our value chain, primarily from purchased goods,
reflecting the importance of supplier collaboration and management in achieving our science-based targets.
Össur, Embla Medical’s largest commercial entity, has assessed the environmental sustainability performance
of key suppliers through annual surveys since 2023, encouraging them to join our sustainability journey.
In 2025, Össur invited 59 suppliers, representing over 80% of direct goods spend, to participate, achieving
a 93% response rate. As in previous years, suppliers were scored on a 100-point scale and grouped into four
categories: Unaware (0-20%), Aware (20-50%), Engaged (50-80%), and Advanced (80-100%).
The 2025 results show significant progress: 34% of suppliers are now in the Engaged or Advanced categories,
up from 25% in 2024. We welcome this improvement and will use the results for further supplier engagement.
The survey will continue annually, with the goal of increasing the proportion of Engaged and Advanced suppliers
year-over-year.
UNAWARE
AWARE
ENGAGED
ADVANCED
2025
2024
2025
2024
2025
2024
2025
2024
Suppliers (%)
25.4
28.1
33.9
39.1
23.7
17.2
10.2
7.8
Taxonomy
The information about Taxonomy-eligible CapEx is included in the notes 11, 12 and 14 to Consolidated Financial
Statement in lines representing additions and business combinations. Financial figures disclosed as Taxonomy-
eligible OpEx are included in the Consolidated Income Statement – specifically within lines of sales and
marketing, research and development and general and administrative expenses. In 2025, Embla Medical did
not meet the requirements of alignment in the understanding of European Union Taxonomy, resulting in no
aligned capital and operating expenditures.
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Targets (E1-4)
Embla Medical has received validation from the Science Based Target initiative (SBTi) for our science-based
targets for reduced Greenhouse Gas emissions. We have identified and implemented several decarbonization
levers, outlined in our climate transition plan, see
Our Science-based Targets:
■
Near-term 2030:
Embla Medical commits to reduce absolute scope 1 and 2 GHG emissions by 79% by 2030 from a 2019 base
year. Embla Medical also commits to reduce absolute scope 3 GHG emissions from purchased goods and
services, fuel- and energy-related activities, upstream transportation and distribution, and downstream
transportation and distribution 25% by 2030 from a 2021 base year.
■
Long-term 2050:
Embla Medical commits to reduce absolute scope 1 and 2 GHG emissions by 90% by 2050 from a 2019 base year.
Embla Medical also commits to reduce absolute scope 3 GHG emissions 90% by 2050 from a 2021 base year.
Progress on Scope 1 and 2 Science-based Targets
In 2025, our Scope 1 and market-based Scope 2 emissions were reduced by 68% compared to our 2019 base
year. This significant reduction is primarily due to our commitment to purchasing Energy Attribute Certificates
(EACs) to confirm renewable electricity claims under the market-based approach. As reflected in our Climate
Transition Plan we aim to meet our 2030 target by continuing to focus on energy efficiency in our largest
facilities, the transition to electric leased vehicles and to purchase Energy Attribute Certificates (EACs) for
renewable electricity.
2019 BASE
YEAR
2025
2024
2030
TARGET
2050
TARGET
Scope 1 & 2 emissions
(tCO
2
e)* **
7,760
2,460
2,700
1,600
800
Scope 1
(tCO
2
e)**
2,870
2,290
2,390
Scope 2 market based
(tCO
2
e)
4,890
170
310
Scope 1 & 2 emissions %
change (-/+) from base
year
0%
-68%
-65%
-79%
-90%
*CO
2
-equivalent emissions (CO
2
, CH
4
, N
2
O) from company facilities and vehicles, and purchased electricity (market-based), steam, heating,
and cooling for own use.
**Base year and 2024 year figure restated. See accounting policies for details.
Progress on Scope 3 Science-based Targets
The categories included in our Scope 3 science-based targets are Purchased Goods (cat. 3.1), Fuel- and Energy
Related Activities (cat. 3.4), Upstream Transportation and Distribution (cat. 3.4) and Downstream Transportation
and Distribution (cat. 3.9). In 2025, the emissions from these categories increased by 1% compared to our 2021
base year.
As reflected in our Climate Transition Plan we aim to meet our 2030 target by decoupling our growth from
our emissions by sustainable procurement, applying eco-design principles, implementing circular solutions,
and optimizing the transportation and distribution of goods.
2021 BASE
YEAR
2025
2024
2030
TARGET
2050
TARGET
Scope 3 emissions (tCO
2
e)*
77,930
78,440
82,450
58,400
7,800
Scope 3 emissions %
change (-/+) from base year
0%
1%
6%
-25%
-90%
*CO
2
-equivalent emissions (CO
2
, CH
4
, N
2
O) from purchased goods, fuel- and energy-related activities, and both upstream and downstream
transportation and distribution of goods. Base year and 2024 year figure restated. See accounting policies for details.
§ Acccounting Policies – Targets Related to Climate Change Mitigation and Adaptation (E1-4)
Science-based targets are developed in accordance with the requirements of the Science Based Target initiative (SBTi),
with greenhouse gas (GHG) emissions calculated following the Greenhouse Gas Protocol.
Progress on Scope 1 and 2 emissions targets is assessed by comparing current year’s emissions against the 2019 base year
emissions, both in absolute terms and percentage change. These emissions cover CO
2
-equivalent emissions (CO
2
, CH
4
, N
2
O) from
company facilities and vehicles, as well as market-based purchased electricity, steam, heating, and cooling for own use.
Progress on Scope 3 emissions targets is assessed by comparing current year’s emissions against the 2021 base year emissions,
both in absolute terms and percentage change. These emissions originate from purchased goods, fuel- and energy-related
activities, as well as upstream and downstream transportation and distribution.
The figures restated for 2024 and the base year result from adjustments in Scope 1 GHG emissions related to mobile combustion
and Scope 3 emissions in Category 1 – Purchased goods. For further details on this restatement, see the accounting policies for
Gross Scope 1, 2 and 3 Emissions (E1-6).
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| 73
Energy Consumption and Mix (E1-5)
§ Accounting Policies – Energy Consumption and Mix (E1-5)
Energy consumption covers stationary and mobile combustion, purchased electricity and district heating.
Stationary Combustion
Gas consumption from stationary combustion is monitored at eight manufacturing and distribution sites located in Mexico, the US,
the UK, and the Netherlands. To ensure data completeness, gas consumption at patient care locations is estimated using a ratio of
consumption per full-time equivalent (FTE), combined with country-level statistics on natural gas use for heating.
Mobile Combustion
Mobile combustion is monitored through fuel consumption data from owned and leased vehicles, as well as distances driven under the
Embla Medical car allowance system. This covers over 300 vehicles across Europe, the U.S., Mexico, and emerging markets. The mobile
combustion figures for 2024 have been restated to include companies acquired in the previous reporting year.
Purchased Electricity and District Heating
Electricity consumption is monitored at manufacturing and distribution sites in Iceland, Mexico, the US, the UK, Germany, and the
Netherlands. District heating is monitored in Iceland.
For purchased electricity at our global network of patient care facilities, consumption is estimated using an emission factor per FTE,
derived from available data in Europe, Australia, and US. This factor is then extrapolated to ensure comprehensive coverage across
all O&P clinic locations. To achieve comprehensive coverage for electricity, additional extrapolation is performed for Embla Medical
entities not included above. This represents approximately 3% (2024: 5%) of the total electricity cost within the consolidation.
Electricity consumption data is connected to grid datasets, providing detailed energy mix information for each grid.
Net revenue in 2025 for Embla Medical is USD 929 million (2024: USD 855 million) as shown in Net sales line in the Consolidated
Income Statement.
At Embla Medical, we are committed to reducing our environmental impact through responsible energy
management. In 2025, our total energy consumption was 30,610 MWh, up from 29,540 MWh in 2024.
Despite this increase, our energy intensity per net revenue decreased to 33.0 in 2025 from 34.5 in 2024.
The share of energy from renewable sources rose to 31%, compared to 29% in 2024. Our total purchased
electricity was 18,540 MWh, up from 17,170 MWh in 2024*.
ENERGY CONSUMPTION AND MIX (MWh)
2025
2024
Fuel consumption from coal and coal products
0
0
Fuel consumption from crude oil and petroleum products*
5,490
6,300
Fuel consumption from natural gas
4,410
4,090
Fuel consumption from other fossil sources
0
0
Consumption of purchased or acquired electricity, heat steam and cooling from
fossil sources*
8,910
8,660
Total fossil energy consumption*
18,810
19,050
Share of fossil sources in total energy consumption (%)
61%
64%
Consumption from nuclear sources
2,170
1,980
Share of consumption from nuclear sources in total energy consumption (%)
7%
7%
Fuel consumption for renewable sources, including biomass (also comprising
industrial waste of biologic origin, biogas, renewable hydrogen, etc.)
0
0
Consumption of purchased or acquired electricity, heat steam and cooling from
renewable sources*
9,630
8,510
The consumption of self-generated non-fuel renewable energy
0
0
Total renewable energy consumption*
9,630
8,510
Share of renewable sources in total energy consumption (%)
31%
29%
Total energy consumption*
30,610
29,540
Energy Intensity Per Net Revenue
Total energy consumption from activities in high climate impact sectors
per net revenue from activities in high climate impact sectors (MWh/USD
million)*
33.0
34.5
*2024 year figure restated. See accounting policies for details.
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| 74
Gross Scopes 1, 2, 3 and Total GHG Emissions (E1-6)
Embla Medical conducted an assessment of all fifteen Scope 3 emissions categories defined by the
Greenhouse Gas Protocol. Based on this assessment, seven categories were identified as significant and are
therefore included in our disclosures.
In 2025, our total market-based greenhouse gas (GHG) emissions across Scope 1, Scope 2, and significant
Scope 3 categories amounted to 100,840 tCO
2
e, compared with 107,090 tCO
2
e in 2024, representing a year
on year decrease. The reduction was primarily driven by lower emissions from purchased goods and business
travel, reflecting updated industry average emission factors for both key raw materials and traveling activities.
In addition, emissions from fuel and energy related activities declined, because purchased energy attribute
certificates were mainly sourced from hydropower. Conversely, we observed an increase in emissions from
upstream transportation and distribution, reflecting business expansion and outreach to new markets.
Our GHG emissions intensity relative to net revenue provides insight into how effectively we are decoupling
emissions from business growth. In 2025, our total market-based GHG emissions intensity was 108.6 tCO
2
e
per USD million of net revenue, improving from 125.3 tCO
2
e per USD million in 2024. This represents an 13%
reduction in emissions intensity, driven by both lower total emissions and increased net revenue.
GROSS SCOPES 1, 2, 3 GHG EMISSIONS
2025
2024
2025 / 2024 %
Total Scope 1, 2, and 3 emissions (tCO
2
e)
Total GHG emissions, locations-based*
104,810
111,110
-6%
Total GHG emissions, market-based*
100,840
107,090
-6%
GHG emissions intensity per net revenue (tCO
2
e/USD million)
Total GHG emissions (location-based) per net
revenue*
112.9
130.0
-13%
Total GHG emissions (market-based) per net
revenue*
108.6
125.3
-13%
GROSS SCOPES 1, 2, 3 GHG EMISSIONS
2025
2024
2025 / 2024 %
Scope 1 GHG emissions (tCO
2
e)
Gross Scope 1 GHG emissions*
2,290
2,390
-4%
Stationary combustion
950
850
12%
Mobile combustion*
1,320
1,540
-14%
Fugitive emissions
20
0
n/a
Scope 1 GHG emissions from regulated
emission trading schemes (%)
0
0
0%
Scope 2 GHG emissions (tCO
2
e)
Gross location-based Scope 2 GHG emission
4,140
4,330
-4%
Gross market-based Scope 2 GHG emissions
170
310
-45%
Scope 1 and 2 emissions (tCO
2
e)
Gross Scope 1 and 2 GHG emissions,
market-based*
2,460
2,700
-9%
Significant Scope 3 GHG emissions (tCO
2
e)
Gross Scope 3 emissions (tCO
2
e)*
98,380
104,390
-6%
Category 1 - Purchased goods and services*
67,860
73,670
-8%
–
Purchased goods*
64,200
69,980
-8%
–
Purchased services
3,660
3,690
-1%
Category 2 - Capital goods*
5,470
5,700
-4%
Category 3 - Fuel- and energy-related
activities
1,060
1,230
-14%
Category 4 - Upstream transportation and
distribution*
11,850
9,890
20%
Category 6 - Business traveling
4,210
6,100
-31%
Category 7 - Employee Commuting*
6,600
6,450
2%
Category 9 - Downstream transportation and
distribution*
1,330
1,350
-1%
*2024 year figure restated. See accounting policies for details.
FINANCIAL STATEMENTS
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§ Accounting Policies – Gross Scope 1, 2 and 3
Emissions (E1-6)
Scope 1 emissions
cover emissions from stationary combustion,
mobile combustion, and fugitive emissions.
Emissions are calculated by connecting energy consumption
data to relevant emissions factors for the calculation of tCO
2
e.
Energy consumption for Stationary and Mobile Combustion is
calculated in accordance with the accounting policies for Energy
Consumption and Mix (E1-5). The mobile combustion figures for
the previous year have been restated to account for acquired
companies not included in last year’s report.
Fugitive emissions arise from the use of refrigerants in our
cooling systems in Iceland and Eindhoven. In 2024, there were
no refrigerant refills in our systems.
Scope 2 emissions
cover emissions from purchased electricity
and district heating.
Emissions are calculated by connecting consumption data to
relevant emissions factors for the calculation of tCO
2
e.
For electricity, we report using both the location-based
method (average grid emission factors) and the market-based
method supported by Energy Attribute Certificates (EACs).
This approach ensures compliance with CSRD and ESRS
requirements for dual reporting and transparent disclosure of
renewable energy sourcing.
EACs are purchased to confirm renewable electricity claims
under the market-based approach and are obtained both
bundled with electricity from our utility provider and unbundled
through accredited traders. Certificates are retired in proportion
to consumption.
In line with GHG Protocol Scope 2 Guidance, electricity matched
with confirmed EACs is assigned an emission factor of zero.
For more information on the calculations on purchased
electricity and district heating, see the accounting policy for
Energy Consumption and Mix (E1-5).
Net revenue
in 2025 for Embla Medical is USD 929 million
(2024: USD 855 million) as shown in Net sales line in the
Consolidated Income Statement. Net revenue is used to
calculate emissions intensity of significant emissions categories.
Scope 3 emissions
Embla Medical evaluates all 15 Scope 3 categories outlined
by the Greenhouse Gas Protocol using the operational
control approach. Of these, 10 categories are relevant to our
operations and emissions calculated. Categories contributing
more than 5% of total Scope 3 emissions are classified as
significant. This results in disclosure of 5 significant categories
which are Purchased Goods and Services, Capital Goods,
Upstream Transportation and Distribution, Business Travel, and
Employee Commuting. In addition, emissions from Fuel- and
Energy-related Activities and Downstream Transportation and
Distribution are deemed significant and disclosed as they are
included in our science-based targets. The seven significant
emissions categories cover 97% of all relevant emissions
categories. Internal reassessment is conducted every third year
to evaluate whether the significance of individual categories has
changed.
For each category, emissions are calculated by connecting
category specific activity data or spend data to relevant
emissions factors for the calculation of tCO
2
e.
To enhance transparency, the tables in this chapter have been
reorganized so that all information is now presented in two
tables instead of three. As part of this change, the additional
Scope 3 categories that were previously shown separately
are now included within the Total GHG Emissions table. This
revision increases the previously reported 2024 figures. The
total location-based GHG emissions are now 25% higher, and
total market-based GHG emissions are 26% higher. The same
percentage increase also applies to the 2024 GHG Intensity Per
Net Revenue figures.
3.1
Purchased Goods and Services
Purchased goods are categorized into three groups: raw
materials, outsourced finished components, and outsourced
finished goods. Emissions from raw materials are calculated
using activity data by weight and industry-average emission
factors. For outsourced finished components and goods,
emissions are estimated using spend data combined with
country-specific emission factors. The data is calculated based
on 80% of total spend on purchased goods, with the remaining
20% extrapolated to ensure completeness. Emissions from
purchased services are calculated based on Embla Medical’s
total spend.
This reporting year, for purchased goods, we achieved improved
accuracy in our data collection process for patient care facilities.
This resulted in more accurate data for purchased goods in
patient care facilities both for the current reporting year and
prior years. We updated the figures for prior year to reflect
those data changes. For purchased goods, we have also adjusted
spend data for inflation, both for current reporting year as well
as prior years. Additionally, the figures for 2024 and the base
year have been restated to include companies acquired in the
previous reporting year. Therefore, historical figures for 2024
and the base year have been restated.
3.2
Capital Goods
Emissions from capital goods are calculated based on
Embla Medical’s spend, using country-specific emission factors.
The emissions calculations have been revised for Capital Goods
current reporting year by adjusting spend data for inflation,
where applicable. To ensure methodological consistency,
emission data for 2024 was adjusted for inflation and restated in
the report.
3.3
Fuel- and Energy-Related Activities
This category includes upstream emissions associated with
energy consumed in company operations. Calculations are
based on Scope 1 and 2 energy use and cover fuels, electricity,
and district heating. Emission factors are applied according to
energy source and consumption data.
3.4
Upstream transportation and distribution
This category includes logistics services paid for by Embla
Medical. Emissions are based on activity data, calculated using the
distance-based method on a well-to-wheel (WTW) basis. From
2025, we report on upstream and downstream transportation
as separate lines. The division is determined by calculating
proportions from financial data. For consistency, the same
methodology has been applied to 2024 figures.
3.6
Business Travel
Emissions from business travel are collected through Embla
Medical’s global travel system which monitors emissions from
air travel and trains. The data covers approximately 60% of
booked travel, with the remaining data extrapolated to ensure
completeness. Emissions are calculated on a well-to-wheel
(WTW) basis.
3.7
Employee Commuting
Emissions from employee commuting are estimated through an
annual desk study based on the number of employees across five
regions: EMEA, Iceland, North America, South America, and APAC.
The study uses region-specific assumptions and emission factors,
which are reviewed and updated regularly to reflect changes
in commuting patterns and data availability. The comparative
figure for 2024 has been updated based on new data regarding
commuting distances. Consequently, the restated number for
emissions from employee commuting in 2024 is 11% lower than
previously reported.
3.9 Downstream transportation and distribution
This category includes logistics services paid for by the
customers of Embla Medical. Emissions are based on activity
data, calculated using the distance-based method on a well-
to-wheel (WTW) basis. From 2025, we report on upstream and
downstream transportation as separate lines. The division is
determined by calculating proportions from financial data. For
consistency, the same methodology has been applied to 2024
figures.
GHG Removals and Carbon Credits
(E1-7)
As a part of our science-based targets, Embla
Medical is committed to achieving Net Zero by
2050 by reducing emissions by 90% from base
years. The remaining emissions will be neutralized
through the purchase of carbon removal credits.
Embla Medical did not purchase carbon removal
credits in 2025.
As part of our commitment to mitigation beyond
our value chain, Embla Medical partners with
SoGreen to empower girls in developing countries
through education, which contributes to climate
change mitigation. This project also supports the
UN Sustainable Development Goal 5 on Gender
Equality and fosters innovation. Embla Medical has
contracted to purchase 500 pending avoidance
credits per year for five years, totaling 2,500 credits.
This method is currently in the certification process,
and since these are not removal credits, they will not
be used to meet our Net Zero target.
FINANCIAL STATEMENTS
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Pollution (ESRS E2)
At Embla Medical, we are committed to responsible
manufacturing practices and minimizing pollution
from our operations. The materiality of ESRS E2
Pollution is primarily driven by the potential financial
impact of possible restrictions on the use of certain
chemical substances used in our operations.
Therefore, this chapter focuses mainly on our
management of the use of chemical substances.
Policies (E2-1)
At Embla Medical, we use various chemical products
in the design and manufacturing of our products.
In our Environmental Policy we aim to minimize
our negative environmental impact by preventing
and reducing pollution and the use of harmful
substances across our value chain. We apply a risk-
based approach and have a certified environmental
management system according to ISO 14001:2015
in our largest manufacturing and distribution sites,
and in some of our patient care facilities. As part of
these systems, we have processes in place to avoid
incidents and emergency situations, and if they occur,
to control and limit their impact on people and the
environment.
Actions (E2-2)
Our approach to chemical management is designed
to protect our employees through safe usage, ensure
regulatory compliance, and minimize environmental
impact through proper waste management.
As part of our Safety Management System, we have
implemented comprehensive emergency response
plans for chemical spills, leaks, and other incidents
at our largest manufacturing and distribution sites,
using a risk-based approach. These plans ensure
quick and effective action to protect both workers
and the environment. We use Safety Data Sheets
(SDS) to provide detailed information on safe use,
hazards, handling, storage, and emergency measures.
Additionally, we conduct Job Safety Analyses
(JSA) in our manufacturing processes to identify
potential hazards associated with chemical use.
We implement measures to mitigate these risks,
including engineering controls, personal protective
equipment (PPE), and safe work practices. For further
information on our actions to maintain
a safe workplace, please refer to
We take full responsibility for ensuring regulatory
compliance in the use of chemicals, recognizing that
this strengthens our business resilience against
potential restrictions on their use, distribution, and
commercialization. Staying informed about changes
to existing regulations, as well as new regulations that
may affect our operations, is a priority.
Our internal Regulatory Committee is dedicated to
monitoring developments in chemical regulations,
evaluating their relevance to our operations, and
ensuring appropriate responses. We conduct annual
compliance reviews at our largest manufacturing,
distribution and patient care facilities, and regulatory
changes identified are forwarded to the Regulatory
Committee for evaluation, as needed. Compliance
extends to our supply chain, where we maintain
strong collaboration with our trusted suppliers to
ensure adherence to chemical legislation. As part of
our manufacturing processes, we have implemented
procedures for the safe disposal of chemical waste,
including recycling and treatment processes, to
minimize environmental impact. For more details on
our waste management, please refer to
Targets (E2-3)
Embla Medical has not yet set formal targets for
managing substances of concern and substances
of very high concern. While we have built a strong
foundation for understanding ESRS E2 requirements,
ongoing regulatory uncertainty has led us to take
a cautious approach to new initiatives. We remain
committed to responsible chemical management.
Substances of Concern and
Substances of Very High Concern
(E2-5)
Embla Medical strives to replace substances of
concern with safer alternatives whenever possible.
While developing a comprehensive overview
remains important, ongoing regulatory uncertainty
makes us cautious about investing in projects that
may be subject to change. Clear definitions and
an authoritative list are still lacking, which limits
our ability to report quantities used or leaving
our facilities. Despite these challenges, we remain
committed to transparency and responsible
chemical management.
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Waste
End-of-Life
Resource Use and Circular
Economy (ESRS E5)
At Embla Medical, we are committed to optimizing our raw material yield
to minimize waste. We are actively mapping our product portfolio in
relation to emissions and market demands and taking initial steps towards
adopting circular solutions. Our existing value chain is predominantly
linear, and to successfully introduce circular solutions, we must overcome
challenges of both an economic and regulatory nature. For circular
solutions to succeed, all key stakeholders in our value chain must recognize
the value of transitioning from a linear to a circular business model.
Policies (E5-1)
In our Environmental Policy we aim to minimize our negative
environmental impact by preventing and reducing pollution, while
striving for the sustainable sourcing and reuse of raw materials.
Targets (E5-3)
Medical Devices
Össur, the largest commercial entity of Embla Medical, aims to ensure
that 95% of its sold finished products are packaged according to Össur’s
Environmental Packaging Criteria by 2030. Product packaging has a
relatively short lifetime and once it has served its purpose of protecting
the product through transport and storage, our goal is to ensure that it
can be easily recycled and disposed of with as little impact as possible.
The Össur Environmental Packaging Criteria provides guidance on
sustainable packaging design and we are implementing sustainable
packaging across different product lines in a prioritized order with
packaging volumes and impact in mind.
Regarding our product targets, Embla Medical is actively exploring
opportunities to increase material yield, reduce waste, and use raw
materials with lower emissions. These efforts are a part of our Climate
Transition Plan as detailed in
Resource Inflows and Outflows
Energy
Water
Emissions
Raw
Materials
Products
Product Loss Waste
& Waste Materials
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Resource Inflows (E5-4)
At Embla Medical, our resource inflows include a variety of essential
materials and utilities used. These include raw materials such as
plastics, silicone, composites, textiles and metals, which are integral
to our manufacturing processes. We also purchase components and
finished goods from our suppliers. Energy, in the form of electricity
and gas, powers our operations, while water is utilized across our
facilities. Additionally, equipment is employed in our manufacturing
activities. Our packaging materials primarily consist of paper,
cardboard, and plastics.
Embla Medical faces significant challenges in providing comprehensive
and reliable data on the total weight of materials and products used
in 2025, as in 2024. These challenges are mainly due to the complexity
of tracking and verifying data across our entities and global supply
chains. Additionally, ensuring the accuracy of data related to sustainably
sourced materials and the use of secondary materials requires
consistent monitoring, which has not yet been standardized across our
global operations. As a result, Embla Medical is unable to report this
information for 2025.
However, we have taken important steps towards the sustainable
sourcing of packaging materials. Within Össur’s bracing & supports
product portfolio, we have focused on FSC certified packaging materials.
In 2025, 24% of these products were sold in packaging with FSC
certification, representing 35% of total sales
§ Accounting Policies (E5-5)
Embla Medical only reports on waste generated under Resource Outflow (E5-5). We
are currently unable to report on the recyclable content rates for all products and
packaging across all entities and brands.
The waste data covers waste generated at our largest manufacturing and distribution
sites in Iceland, Mexico, Germany, the US, the UK, and the Netherlands as well as all
patient care facilities. The activity data collected represent around 98% of total Waste
disposal costs in Embla Medical. Data collected includes waste type, disposal method,
and weight. Where direct data is unavailable, waste volumes are estimated using FTE
ratios and site type to ensure completeness.
No radioactive waste is generated in Embla Medical’s operations and is therefore
excluded from the accompanying table on Waste from Operations.
within this product group.
Resource Outflows (E5-5)
At Embla Medical, our primary resource outflows include the products
and packaging we place on the market, as well as waste generated from
our manufacturing processes and product losses due to quality issues
and discontinuation. We recognize that a significant portion of the
environmental impact of products and packaging is determined during
the design phase. Durability, repairability, and recycling play crucial roles
in reducing this impact. Therefore, we emphasize eco-design and circular
solutions as essential strategies to meet our science-based targets.
For further information, see
At Embla Medical, the expected lifetime, or durability, of a product is the
period in which it is expected to be safe and effective for its intended
use. Regular safety checks, maintenance, repairs, or upgrades may be
necessary during the expected lifetime. The expected lifetime of Össur
products can be
found here
.
Embla Medical is dedicated to delivering medical products that meet
the highest standards of safety and performance. As part of this
commitment, we ensure servicing for all serviceable products to the
end of their expected life. Serviceable products include those eligible
for repairs, which currently encompass all bionic products and selected
mechanical products.
WASTE FROM OPERATIONS
2025
(METRIC TONS)
2024
(METRIC TONS)
Waste Diverted from Disposal
2,110
2,180
Hazardous Waste
80
50
Non-Hazardous Waste
2,030
2,130
– Preparation for Reuse
0
0
– Preparation for Recycling
2,010
2,110
– Preparation for Other Recovery
20
20
Waste Diverted to Disposal
1,140
1,240
Hazardous Waste
80
90
Non-Hazardous Waste
1,060
1,150
– Incineration
600
500
– Landfill
460
650
– Other Disposal Options
0
0
% of Non-Recycled Waste
35%
36%
Total Hazardous Waste
160
140
Total Waste
3,250
3,420
Embla Medical is currently unable to report on the recyclable content
rates for all products and packaging across all entities and brands.
However, progress is being made. Össur, the largest commercial entity
of Embla Medical, has defined its Environmental Packaging Criteria,
which stipulates that final product packaging must consist of 100%
recyclable boxes with clear disposal and recycling information. By the
end of 2025, 48% of final products sold under the Össur brand had
been updated to meet these criteria compared to 45% in 2024. This
represents 59% of sales.
Waste Management
Good waste management is an important part of responsible operations
where material yield is maximized to reduce pollution and disposal costs
in operations. Embla Medical has a certified environmental management
system according to ISO 14001:2015 in our largest manufacturing and
distribution sites, and in some of our patient care facilities (the ISO
certification is not covered by PwC assurance). The main waste types
reflect the raw materials used in manufacturing, e.g. metals, composites,
silicone, plastics and textiles.
In 2025, Embla Medical operations generated a total of 3,250 metric tons of
waste. Of this, 2,110 metric tons were diverted from disposal, primarily
through
recycling, resulting in a recycling rate of 65%, compared to 64% in 2024.
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EU Taxonomy Key
Performance Indicators
(KPIs)
Embla Medical is obliged to disclose information on
EU Taxonomy in accordance with Regulation (EU)
2020/852 of the European Parliament and of the
Council. This means reporting on the company’s
environmentally sustainable economic activities that
support the six objectives of the regulation, which are:
■
Climate change mitigation (CCM),
■
Climate change adaptation (CCA),
■
The sustainable use and protection of water
and marine resources (WTR),
■
The transition to circular economy (CE),
■
Pollution prevention and control (PPC) and
■
The protection and restoration of biodiversity
and ecosystems (BIO).
All reported data regarding EU Taxonomy is
provided at a consolidated level for the entire group.
In 2025, Embla Medical is reporting on the following
Taxonomy-eligible activities:
■
CE 1.2. Manufacture of electrical and electronic
equipment (manufacturing of bionics),
■
CCM 4.16. Installation and operation of electric
heat pumps,
■
CE 5.2. Sale of spare parts (sale of spare parts
of bionics),
■
CE 5.5. Product-as -a-service and other circular
use- and result-oriented service models (rental
program of products),
■
CCM 6.5. Transport by motorbikes, passenger
cars and light commercial vehicles (leasing
of passenger cars),
■
CCM 7.2. Renovation of existing buildings
(renovations and reconstruction of leased
buildings),
■
CCM 7.3. Installation, maintenance and repair
of energy efficiency equipment (installations
or repairs of air conditioning and ventilation
systems),
■
CCM 7.4. Installation, maintenance and repair of
charging stations for electric vehicles in buildings,
■
CCM 9.1. Close to market research, development
and innovation (costs of projects related to
sustainable solutions).
In 2025, the EU Taxonomy Regulation was
implemented in Iceland in its primary form under
Act No. 25/2023. The Icelandic adoption did not
incorporate the Commission Delegated Regulation of
4 July 2025, being part of the “Omnibus I package”
intended to simplify reporting requirements. As the
Icelandic legislative approach remained unchanged
at the time of publishing this Annual Report, we
have decided to report on the EU Taxonomy without
applying any simplifications outlined in Commission
Delegated Regulation of 4 July 2025.
§ Accounting Policies - Taxonomy
EU Taxonomy’s Key Performance Indicators (KPIs)
refer to
the share of turnover, operational expenditures (OpEx) and
capital expenditures (CapEx) coming from the Taxonomy-
eligible and Taxonomy-aligned activities.
Taxonomy-eligible activity
refers to economic activity
included in the Delegated Acts of the EU Taxonomy
regulation, indicating its potential to be environmentally
sustainable.
Eligibility and Alignment Assessment
The eligibility assessment involved a comprehensive review of
all activities outlined in the Delegated Acts to the Taxonomy
Regulation. After identifying the eligible activities performed,
the alignment assessment was conducted by examining the
technical screening criteria for the activities undertaken.
In 2025, the Substantial Contribution Criteria or Do No
Significant Harm requirements were not met for the selected
eligible activities, therefore they could not be considered
aligned.
Embla Medical has not implemented any CapEx plan as
understood under point 1.1.2. of Annex I to Commission
Delegated Regulation (EU) 2021/2178.
The eligible turnover
has been calculated as the proportion
of net turnover derived from sales of products and services of
Taxonomy-eligible activities (the turnover numerator) divided
by net sales disclosed in Consolidated Income Statement (the
turnover denominator).
For two of the three eligible turnover activities, CE 1.2 and
CE 5.2., two assumptions are made. First, the product
margin from Patient Care facilities is estimated. Second, it is
assumed all products in Clinics were sold.
The aligned turnover
has been calculated as the proportion
of net turnover derived from sale of products and services of
Taxonomy-aligned activities (the turnover numerator) divided
by net sales presented in Consolidated Income Statement
(the turnover denominator). In 2025, we did not recognize any
Taxonomy-aligned activities related to turnover.
The eligible OpEx
has been calculated as the numerator
divided by the denominator, where denominator covers direct
non-capitalized cost related to research and development,
building renovation, short-term lease, maintenance and
repair, and any other direct expenditures relating to the day-
to-day servicing of assets of property, plant and equipment.
The aligned OpEx
was determined by dividing the numerator,
which includes costs associated with Taxonomy-aligned
activities, by the same denominator used in the eligible OpEx
calculation. In 2025, there were no activities relating to OpEx
that were aligned with the EU Taxonomy.
The eligible CapEx
has been calculated as the numerator
divided by the denominator, where the denominator covers
additions to tangible and intangible assets during the
financial year. Additions include those coming from business
combinations and are considered before depreciation,
amortization and any re-measurements, including those
resulting from revaluations and impairments, for the relevant
financial year and excluding fair value change and goodwill.
Additions have been presented in notes 11, 12 and 14 of the
Consolidated Financial Statements. The CapEx numerator has
been determined as part of the denominator connected to
Taxonomy-eligible activities. Following a revised interpretation
of eligibility regarding the climate change adaptation
environmental objective, we have chosen not to report any
capital expenditure under activity CCA 8.2. “Computer
programming, consultancy and related activities” and to
restate the comparative period’s eligible amount to 0%.
According to Commission Delegated Regulation (EU)
2021/2178, Embla Medical is required to provide the
quantitative breakdown of amounts presented in numerator
of eligible CapEx KPI. The numerator in 2025 consists of
additions to property, plant and equipment (45%), additions
to right of use assets (39%), and business combinations
(16%). The most significant change in capital expenditures
during the reporting period was related to facility renovations
and refurbishments, which decreased from prior year.
The aligned CapEx
was calculated by dividing the numerator,
which represents capital expenditures coming from Taxonomy-
aligned activities, by the same denominator as used in the
eligible CapEx calculation. No activities have been recognized
as aligned with EU Taxonomy concerning CapEx KPI in 2025.
Double Counting
Embla Medical takes every measure to avoid double counting
in the allocation in the numerator of eligible turnover, CapEx
and OpEx KPIs. This is done by extracting the amounts from
company financial systems, choosing activities referring
to specific assets, costs and turnover and using filters to
screen out overlapping positions to ensure that they are not
duplicated in KPIs and between economic activities.
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SUSTAINABILITY STATEMENT
Our People
At Embla Medical, enhancing the social well-being of our people, including our own workforce, workers in our
value chain, and our customers, is integral to our success. By prioritizing health, safety, and overall well-being,
we foster a supportive and productive environment that drives innovation and growth. This commitment not
only strengthens relationships with stakeholders but also ensures that our operations contribute positively
to society. Investing in social well-being helps us build a resilient and sustainable business while contributing
to the UN Sustainable Development (SDGs) Goal 3 on Good Health and Well-Being, Goal 5 on Gender Equality,
and Goal 8 on Decent Work and Economic Growth. As a signatory of the United Nations Global Compact,
we actively support its social principles, promoting human rights, fair labor practices, and inclusive
workplaces across all our operations.
Own Workforce (ESRS S1)
Embla Medical and its subsidiaries operate in over 40 countries. With around 4,500 employees, our diverse
team collaborates seamlessly to improve people’s mobility. By valuing diverse perspectives, we foster
an environment where individual strengths, skills, and knowledge thrive. All manufacturing locations and
distribution centers have adopted lean manufacturing processes in addition to extensive loss prevention
initiatives focused on both personal and operational safety. Local health and safety committees lead our
efforts to ensure employee safety while adhering to local practices and policies.
Policies (S1-1)
Our main policies for managing material impacts on our own workforce include the Human Rights Policy,
Health and Safety Policy, Opportunity & Inclusion Policy and Code of Conduct. These policies are communicated
internally through training and awareness and accessible on
our website
.
In our Human Rights Policy, we pledge to operate in a manner that respects and promotes human rights,
including labor rights, across all aspects of our operations. This policy is designed to promote honest and ethical
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conduct and applies to all individuals employed by, or affiliated with, Embla Medical entities. We are committed
to eradicating all forms of discrimination, providing a safe and healthy work environment, and we do not tolerate
any form of modern slavery, including forced labor, child labor, compulsory labor, or human trafficking.
As outlined in our Health and Safety Policy, safety is our first priority and integral to everything we do.
We consistently adhere to relevant health and safety standards, and ensure employees are committed to
providing a safe and healthy work environment. Our commitment extends to continuous improvement and
proactive measures to prevent accidents and incidents, fostering a culture of safety and well-being for all.
Our Equal Opportunity Policy outlines our commitment to providing equal employment opportunities.
This commitment applies to all individuals involved in the operations of Embla Medical and prohibits
discrimination by any employee of Embla Medical.
Our Code of Conduct outlines the norms, rules, responsibilities, and proper practices at Embla Medical.
It guides employees in their day-to-day activities, ensuring compliance with all applicable laws and legislation.
Together with our values, it helps maintain and strengthen our company culture.
Engaging With Own Workforce (S1-2)
At Embla Medical, we are committed to open and continuous engagement with our workforce to address
impacts, increase job satisfaction and foster an inclusive, supportive work environment. We prioritize learning
and professional development opportunities while promoting work-life balance. Additionally, we actively work
to mitigate negative impacts such as discrimination, inequality, occupational injuries, and pressures from
external barriers like regulations and industry-specific challenges. The EVP of People, Strategy & Sustainability
is responsible for ensuring that engagement aligns with our commitments to our own workforce, and reporting
progress to the Executive Management.
We engage with our employees daily through various channels to keep them well informed. This includes sharing
news on the company intranet, global and local announcements, and regular employee meetings. Quarterly
meetings provide comprehensive updates on company developments, goals, and progress. Additionally, one-on-
one meetings between employees and managers foster open communication, deliver personalized feedback,
and support professional growth. This approach helps employees feel valued and aligned with the company’s
goals, while addressing concerns promptly and effectively.
We have a Competency Framework that defines the behaviors driving successful performance and supports our
business strategy. Our core competencies are Collaboration, Communication, Driving Results, Customer Focus,
and Change. We conduct annual performance reviews to assess the past year’s performance, as well as plan for the
year ahead. Individual development plans are created with consideration of the overall strategy and goals, providing
employees with opportunities to grow within the organization. Regular check-ins between employees and managers
are encouraged to discuss performance and competency development. These discussions are supported by Embla
Medical’s Development Guide, which outlines training and development opportunities for each competency.
In 2025, our employee survey was conducted globally on a quarterly basis. This confidential and anonymous process
allows us to capture employee feedback on a variety of topics, such as engagement and well-being. The insights
gained from these surveys help us better understand the concerns and needs of our diverse workforce, enabling
informed decision-making and addressing potential negative impacts on our employees effectively.
We also ensure that our employees have access to the People (Human Resources) function for advice, assistance,
and support. This open-door policy is a vital part of our engagement strategy, allowing employees to voice their
concerns, seek guidance and receive the support they need to address any issues they may face.
Remediating Negative Impacts To Own Workforce (S1-3)
At Embla Medical, we have implemented a comprehensive approach to prevent, identify, and mitigate negative
impacts on our workforce. We offer training in Opportunity and Inclusion to raise awareness and foster an
inclusive workplace culture. Additionally, we actively support underrepresented groups and ensure equal
opportunities for all employees. Our global Code of Conduct training helps employees uphold the highest
standards and minimize potential risks. For more details on Code of Conduct, refer to the
We recognize that despite our best efforts, safety incidents can occur. Our Safety Management System includes
robust mechanisms for reporting, investigating and remediating such incidents. Employees are encouraged
to report near misses, accidents and unsafe conditions through accessible channels. Each report initiates a
structured response process, where our response team promptly addresses the issue and implements corrective
measures to prevent recurrence. We encourage our employees to submit suggestions on how to improve safety
in their work area. In 2025, a total of 893 employee suggestions were implemented, compared to 755 in 2024.
This continuous feedback loop not only amplifies employee voices but also transforms their insights into
meaningful safety improvements across our workplaces.
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We provide multiple avenues for employees to
raise concerns. Employees can discuss and report
issues directly to managers, supervisors, the
compliance team, or the People team. We ensure
that all concerns are heard and addressed promptly
and effectively. Our employee survey serves as a
key platform for feedback and raising concerns,
featuring an anonymous solution where employees
and managers can interact on various topics without
revealing their identities.
The Embla Medical Speak-Up Line is our global
whistleblower and helpline system, available 24
hours every day of the year to anyone wishing to file
a report or raise a concern. All employees and other
stakeholders can utilize the Speak-Up Line to provide
anonymous feedback and complaints. Employees are
made aware of the Speak-Up Line through our Code
of Conduct Training. Everyone who reports an issue in
good faith is guaranteed protection from retaliation,
and all reports are treated as confidential.
Actions (S1-4)
Our commitment to our workforce is reflected in
targeted actions that address key impacts, manage
risks, and leverage opportunities, ensuring both
employee satisfaction and organizational resilience.
We place strong emphasis on fostering and
maintaining a diverse workforce, recognizing that
promoting opportunities and inclusion fuels better
decision-making and innovation.
Opportunity & Inclusion
In 2025, we provided 665 courses, books,
videos, and audiobooks for our employees in our
comprehensive Opportunity & Inclusion training
programs, to build Opportunity & Inclusion
awareness among our employees and managers.
These resources are accessible through our
eLearning platform. We have global and regional
Opportunity & Inclusion councils that set targets,
implement actions, and monitor our progress. The
global Opportunity & Inclusion council works on the
overall strategy and implementation company-wide,
deciding on initiatives such as employee survey
questions, training, system data improvement,
awareness campaigns, and more.
We continue to use our employee survey to
monitor and measure employees’ perceptions
of our Opportunity & Inclusion efforts. When
employees outside of the US were asked if they
were satisfied with Embla Medical’s efforts to
support opportunities and inclusion (for example,
in terms of gender, ethnicity, disability, and socio-
economic status), we scored 8.3 on a 10 point scale.
Managers and members of the People team prioritize
addressing any deviations promptly, ensuring a
supportive and equitable workplace for all. In 2025,
we continued conducting our employee survey on a
quarterly basis, including open comment sections, to
understand employee sentiments and priorities on
these topics.
We conduct regular salary audits to ensure equal pay
for equal work, adhering to the Equal Employment
Opportunity Commission (EEOC) standards in the
Americas, and similar principles in other regions. In
Iceland, we are Equal Pay Certified and have yearly
audits covering for e.g. review of the Equal Pay Policy,
Equality Opportunity Policy, objectives and plans.
We are committed to inclusive recruitment practices.
Our training of hiring managers includes an
introduction to inclusive language and unconscious
bias, helping to attract a diverse workforce. We have
a diversity dashboard available for leaders so they
can monitor the diversity in their teams. In 2025,
we continued bi-monthly new-hire networking
events in the Americas, which are well-attended and
appreciated for fostering inclusivity. As part of our
recruitment outreach, we have contracted with large
job recruitment-based websites.
We prioritize the well-being and work-life balance
of our employees by offering flexible work
arrangements for roles that can be performed
remotely. This flexibility allows employees to
manage their work and personal lives and is highly
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appreciated by our team members. Embla Medical’s
Give Back Program offers all employees globally one
paid volunteer day per year. On this day, our team
members dedicate their time to various causes and
charities, making a positive impact in the communities
where we live and work. We believe in the power
of giving back and encourage our employees to
participate in meaningful activities that support
local initiatives.
Talent Development
At Embla Medical, we emphasize the importance
of attracting, retaining and investing in the skills
and competencies of our workforce to ensure
long-term, sustainable success. We recognize that
continuous, intentional development is essential
to maintaining a workforce equipped to meet the
needs of a dynamic and evolving global market.
All employees have access to Talent Development
modules through our internal portal, which
includes over 23,000 eLearning courses. We also
encourage our customers to engage with some
of our internally produced eLearning modules,
as we believe that enabling our customers to
grow their skillsets alongside us is an important
aspect of our sustainable offerings. We support
professional development through a range of
learning methods, recognizing that employees
learn in diverse ways. These include formal training
programs focused on soft skills, leadership, and
functional expertise, tailored to career stages from
entry-level to senior professionals. In addition, we
offer mentoring, facilitated coaching, job shadowing,
and 360° assessments, while encouraging cross-
functional collaboration to promote learning through
experience and peer exchange. In 2025, we launched
our AI-powered ‘Career Hub’, a dynamic platform
that enables employees to explore career paths,
discover relevant learning programs, and connect
with networking opportunities across the company.
All people leaders participate in our LEAD program,
a global leadership development initiative, where
we identify the key attributes of great leadership
and how to successfully lead at Embla Medical.
Participants learn through experiences, guided
exercises, feedback, coaching, and peer learning.
We actively encourage employee-driven initiatives,
enabling individuals to propose new learning
opportunities aligned with their professional goals
and the organization’s strategic direction.
To ensure the effectiveness of our programs, we
evaluate their success through immediate feedback
surveys and targeted questions in our employee
engagement surveys. These insights are used by
our global Learning and Development team to
continuously refine and enhance our learning offerings.
Our goal is to foster an environment of continuous
improvement, where every employee has access to the
resources needed to thrive. By continuously assessing
and refining our talent development initiatives, we aim
to support our employees’ growth and maintain our
competitive edge.
Safety Management Training
Ensuring the health and safety of our workforce
is a core priority embedded in our operational
strategy. Through our Safety Management System,
we take a proactive approach through training
and awareness on identifying and mitigating risks
before they result in harm. This system enables
us to continuously monitor workplace conditions,
assess potential hazards and implement preventive
measures that support a safe and resilient working
environment. Our approach includes conducting
Job Safety Analyses to evaluate task-specific risks,
performing quarterly fire safety audits to maintain
emergency readiness and delivering targeted health
and safety training to ensure that all employees
understand and follow established procedures.
These efforts are complemented by awareness
campaigns that promote safe behaviors and reinforce
a culture of shared responsibility. We view safety
as an opportunity to empower our workforce and
actively encourage employee participation in shaping
safer workplaces through feedback, innovation and
collaboration.
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Targets (S1-5)
Embla Medical has established clear targets to enhance positive impacts and manage any material negative impacts on our own workforce. Our targets are set through
a structured process, embedding principles of gender equality, employee engagement, and workplace safety. They reflect our manufacturing context, where workplace
safety is critical, and are informed by stakeholder expectations, regulatory requirements, and internal performance benchmarks.
OUR PEOPLE
TARGET 2025
2025
2024
Employee Engagement, Retention and Attraction
Gender balance, total workforce *
50:50 (+/- 10%)
Female:Male
49:51
Female:Male
49:51
Female:Male
Gender balance, managers **
YoY improved balance
42:58
Female:Male
40:60
Female:Male
Gender balance, top management level ***
YoY improved balance
24:76
Female:Male
26:74
Female:Male
Engagement Index
>8.0
(10-point scale)
7.9
(10-point scale)
7.9
(10-point scale)
Participants in LEAD program
100%
(All new managers with
direct reports)
100%
100%
Health and Safety at Work
Implemented employee safety suggestions
n/a
893
755
Total Recordable Incident Rate (TRIR) per 100 FTEs
<1.0
0.8
0.6
TRIR per 500 FTEs
<5.0
4.0
3.0
Number of recordable incidents
n/a
20
13
*Flexibility in gender split allows for non-binary gender, recognizing that some employees may not wish to be categorized
**Includes all employees with people management role
***Includes all employees with Vice President role and higher management levels
Gender Balance
We aim to achieve an equal gender split across
our workforce, ensuring that gender balance
is actively considered in all key employment
decisions, including recruitment, promotions and
redundancies. In line with these objectives, we
remain focused on year-on-year improvement to
achieve balanced gender representation among
managers and at the top management level.
In 2025, women represented 49% of the total
workforce, 42% of managers, and 24% of top
management positions.
Employee Engagement
Our target is to maintain an engagement index
above 8 on a 10-point scale, reflecting our
commitment to fostering a highly motivated and
connected workforce. In 2025, the engagement
score reached 7.9, the same as in 2024.
Leadership Development
At Embla Medical, all new managers are expected
to complete our LEAD leadership program within
their first six months. In 2025, with a target of 100%
participation, all new leaders successfully completed
the program.
Health and Safety
We proactively strive to minimize work-related
incidents and monitor performance using the Total
Recordable Incident Rate (TRIR). TRIR is continuously
tracked globally and at individual sites to ensure
transparency and drive continuous improvement.
For 2025, the TRIR target was set at below 5.0 per
500 FTEs, and the actual TRIR was 4.0.
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Gender Identity of Employees at Period End*
2025
2024
Female
Male
Other
Total
Female
Male
Other
Total
Employees
Contract Type
Headcount
FTE
Headcount
FTE
Headcount
FTE
Headcount
FTE
Headcount
FTE
Headcount
FTE
Headcount
FTE
Headcount
FTE
Total
employees**
2,127
2,046
2,196
2,141
5
5
4,328
4,192
2,070
1,993
2,127
2,079
6
6
4,203
4,078
Permanent
employees
2,058
1,990
2,129
2,094
5
5
4,192
4,089
1,995
1,927
2,060
2,030
6
6
4,061
3,963
Temporary
employees
69
56
67
47
0
0
136
103
75
66
67
49
0
0
142
115
Non-guaranteed
hours employees
1
0.1
2
0.6
0
0
3
0.7
2
0.7
0
0
0
0
2
0.7
*Gender as specified by the employees themselves
**As defined in note 6 in the Consolidated Financial Statements
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Workers in the Value
Chain (ESRS S2)
Embla Medical partners with suppliers across our
global value chain who share our commitment to
quality, ethical standards, and sustainable practices.
Össur, our largest commercial entity, oversees most
of our outsourced manufacturing and supplier
relationships. Accordingly, the initiatives outlined
here primarily reflect Össur’s practices. We are
committed to continuously improving how we
manage and reduce negative impacts on workers
throughout our supply chain.
Policies (S2-1)
To safeguard workers in our value chain, we rely on
three core policies: the Human Rights Policy, the
Speak-Up Line Policy, and our Code of Conduct.
These documents clearly define our expectations for
ethical and sustainable behavior from all suppliers.
Processes for Engaging with Value
Chain Workers About Impacts (S2-2)
Össur has established comprehensive supplier
management systems designed to build long-
term partnerships and promote continuous
improvement. Suppliers are evaluated based on
Environmental, Social, and Governance (ESG)
criteria. Those identified as high-risk, based on
spending thresholds and Social Progress Index
ratings, undergo additional third-party social audits.
These audits follow recognized industry standards
and include confidential interviews with randomly
selected workers to assess working conditions
and legal compliance. Findings are reviewed
collaboratively with suppliers, and Össur provides
support to help them implement improvements.
Remediation of Negative Impacts
(S2-3)
When audits reveal critical issues, suppliers are
required to develop and execute a remediation
plan. Össur supports this process through targeted
training, risk and safety seminars, and awareness
initiatives. We maintain a zero-tolerance policy on
human rights violations, corruption, and bribery,
and ensure that workers are informed about
the Speak-Up Line. Suppliers who fail to meet
our standards or refuse to engage in corrective
actions may face relationship reviews and potential
disengagement.
Acting on Material Impacts on Value
Chain Workers (S2-4)
High-risk suppliers must sign the Embla Medical
Code of Conduct, which includes strict provisions
on human rights, labor rights, and the prohibition
of forced or child labor. It also sets expectations for
third-party relationships, reinforcing our alignment
with the UN Global Compact principles.
Targets on Managing Material Impacts
(S2-5)
In 2025, third-party social audits were conducted at
10 supplier sites. Each audit used a 100-point scale
to assess performance and categorize issues as
critical, major, or minor. Our goal is for all suppliers
to score at least 95%, with no critical issues.
We are pleased to report that 8 out of 10 suppliers
met this target. For the remaining two, corrective
action plans are underway to close identified gaps and
drive ongoing improvements across our value chain.
FINANCIAL STATEMENTS
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Consumers and End-Users (ESRS S4)
Embla Medical makes a positive impact on consumers and end-users through our core mission of improving
people’s mobility. We are committed to reaching individuals of all ages and activity levels with our innovative
mobility solutions and delivering safe and reliable quality products to our customers and end-users. Our product
and service offerings are commercialized under several industry-leading brand names.
Our customers are medical professionals, primarily within Orthotic & Prosthetic (O&P) Clinics, where clinicians fit
patients with the necessary products and solutions and subsequently claim reimbursement from private or public
insurance providers.
Our end-users are a diverse group of individuals, reflecting the breadth of our mobility solutions portfolio.
Policies (S4-1)
Our main policies on managing the material impacts
of our products and services on consumers and
end-users include our Quality Policy, Human Rights
Policy, Information Security Policy, Personal Data
Protection Policy, and Code of Conduct.
Embla Medical business entities follow quality
policies where the purpose is to ensure that our
products meet the highest standards of quality and
safety. We design, manufacture and sell medical
devices where quality and safety are an intrinsic part
of all processes.
The purpose of Embla Medical’s Human Rights
Policy is to ensure the company operates in a
manner that respects and promotes human rights
across all aspects of its operations. It is intended
to promote honest and ethical conduct and applies
to all people employed by or affiliated with Embla
Medical entities.
Embla Medical collects and handles personal
data to conduct business and provide services to
customers. We prioritize treating data with the
utmost respect and confidentiality. To ensure
compliance with data protection legislation, we have
implemented an Information Security Policy and a
Personal Data Protection Policy.
Our Code of Conduct serves as a guide for
employees in their day-to-day activities, ensuring
compliance with all applicable laws and regulations.
Our policies and Code of Conduct are communicated
internally through training and awareness programs
and are accessible on
our website
.
Engagement With Customers and
Patients (S4-2)
We actively engage with our customers and patients
regarding our products and services and highly
value their feedback. Customer feedback is closely
monitored by our business entities and serves as
a key input for Research & Development when
improving existing products or developing new ones.
As a part of our quality management systems,
we address feedback received from customers and
end-users. All feedback received, including positive
comments, complaints, and serious incidents, are
evaluated and analyzed on an individual basis.
The responsibility for product quality is maintained
within each brand entity.
The end-users of our products receive information
about available clinical options from their licensed
healthcare provider. Our leading product solution
brands also provide product information and
educational resources through online channels,
and products are accompanied by an IFU
(Instructions for Use) as applicable. In-person events
such as Mobility Clinics and customer training
also provide participating end-users with valuable
information about the variety of product options
available to them. We provide end-users with
evidence-based and factual information, as required
by medical device regulations.
The Embla Medical Speak-Up Line is our global
whistleblower and helpline system, available 24
hours each day of the year to anyone wishing to
file a report, ask a question, or make a complaint.
Customers and end-users can also use the Speak-
Up Line to provide feedback or report concerns.
Reports can be submitted anonymously.
FINANCIAL STATEMENTS
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Actions (S4-4)
The primary impact of Embla Medical on consumers and end-users is positive, driven by our core mission to
improve people’s mobility. While the risk of incidents exists, we mitigate it by prioritizing the safety and quality
of our products. Our robust quality management systems, compliant with international medical device standards
and regulations, continuously evolve as the standards expand and change. Embla Medical entities maintain
certified Quality Management Systems (QMS) based on ISO standards, ensuring compliance with applicable
medical device regulations in the countries where we operate.
ISO Certificates
BRAND
ISO STANDARD
Össur
ISO 13485
Fior & Gentz
ISO 13485
College Park
ISO 13485
ForMotion Clinics (some clinics have ISO 9001)
ISO 9001
For Information Security, Embla Medical uses ISO 27001:2022 as the standard framework. We have set clear
targets of maturity in all controls that are a part of the ISO 27001:2022 framework and conduct a formal internal
maturity assessment every year to actively measure our progress in implementing the controls. We train our
employees in the Code of Conduct to help them to uphold the highest ethical standards in line with our company
culture and minimize potential risks of negatively impacting our consumers and end-users.
Targets (S4-5)
At Embla Medical, we advance our positive impact on consumers and end-users by reaching more patients and
managing material risks and opportunities through extensive monitoring of our quality management systems and
the Speak-Up Line.
As a medical device manufacturer, we operate under the EU Medical Device Regulation and maintain a robust
ISO 13485-certified quality management system, which is subject to regular independent third-party audits.
This framework includes strict regulatory requirements and comprehensive monitoring metrics to ensure
product safety and compliance. These controls and performance indicators are mandated by law and externally
verified, therefore, we do not define additional CSRD-specific targets under ESRS S4, as our existing system
already meets and exceeds the necessary standards.
FINANCIAL STATEMENTS
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SUSTAINABILITY STATEMENT
Our Business
Ensuring ethical and transparent governance is vital for building trust
and credibility with our stakeholders. It allows us to demonstrate our
commitment to integrity and accountability, fostering a culture of
openness and responsibility. Transparent governance practices help
us effectively manage risks, make informed decisions, and achieve our
sustainability goals.
Ultimately, this approach strengthens our reputation and supports
long-term success, and at the same time contributes to UN Sustainable
Development Goal number 16 on Peace, Justice and Strong Institutions.
As a signatory of the United Nations Global Compact, we uphold its
governance principles by fostering transparency, accountability,
and ethical business practices across all levels of our organization.
Business Conduct (ESRS G1)
Corporate Culture (G1-1)
Communication with employees occurs daily through in-person dialog, meetings, digital channels, and more.
Our intranet provides access to policies, procedures, templates, and various other guidelines and resources.
Additionally, we use internal communication platforms to share news and updates, both regionally and globally,
fostering engagement among colleagues and teams.
Management hosts quarterly employee meetings to discuss financial results, key initiatives, and other relevant
topics, ensuring employees are well-informed. We conduct a global workplace survey quarterly to measure
engagement, supplemented by regular employee surveys. The results of these surveys are shared and discussed
with employees, and each department identifies areas for improvement based on these discussions.
Code of Conduct
At Embla Medical, we adhere to our Code of Conduct, which is grounded in our core values of Honesty,
Frugality, and Courage, deeply embedded throughout our organization. The President and CEO, along with top
management, serve as key spokespersons for our values and culture.
The Code of Conduct applies to all employees globally and is available in all main languages of Embla Medical’s
office locations and operations. All employees are required to complete regular training in the Code of Conduct,
which is also an integral part of the onboarding process for new employees.
FINANCIAL STATEMENTS
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In addition to our Code of Conduct, Embla Medical has implemented various policies that provide practical
guidance on compliance and integrity for all employees. These policies are incorporated into the Code of Conduct
training, ensuring that employees receive training and awareness on topics including, but not limited to:
Anti-Corruption and Bribery, Competition, Conflict of Interest, Fraud, Human Rights, Speak-Up Line, Interaction
with Healthcare Professionals, Third-Party Relationships and Environmental Responsibility. We recognize the
benefits of taking a holistic view of relevant risks and combining efforts across a broad range of compliance
activities. This approach is expected to have a positive, long-term impact on our business, employees,
environment, and societies worldwide.
Speak-Up Line
The Embla Medical Speak-Up Line is our global whistleblower and helpline system, hosted by an independent
external party to ensure compliance with local regulations, the General Data Protection Regulation and other
privacy regulations. All employees are informed about the Speak-Up Line through mandatory Code of Conduct
Training. The Speak-Up Line is operated and monitored by the Corporate Governance Office in accordance
with the Speak-Up Line Policy and Investigation Management Manual. Subject matter experts tasked with
investigating reported incidents receive appropriate training.
In accordance with the Speak-Up Line Policy, everyone who reports an issue in good faith is guaranteed protection
from retaliation, and all reports are treated confidentially as outlined in the investigation manual. Reports can also
be made anonymously. The Speak-Up Line is available 24 hours every day of the year, to anyone wishing to file a
report or make a complaint. The Speak-Up Line is open to employees, customers, and all third parties of Embla
Medical, and is available in all languages of the countries in which Embla Medical and its subsidiaries operate.
Embla Medical is subject to laws on Whistleblower protection, based on Directive (EU) 2019/1937.
Management of Relationships with Suppliers (G1-2)
Embla Medical is committed to responsible social and environmental development, respecting human rights, and
making a positive impact. Cooperation with suppliers is integral to achieving this. If issues arise, we engage with
our suppliers and reserve the right to disqualify any potential supplier or terminate any relationship with a current
supplier that does not meet our requirements. As a medical device manufacturer, Embla Medical has had supplier
controls in place for many years to ensure adherence to quality standards and safety for our users. We have also
collaborated with our finished goods suppliers for years on property risk assessment and human rights. For more
information on our annual compliance and social supplier audits, please refer to
supplier surveys on environmental commitments, see
Prevention and Detection of Corruption or Bribery (G1-3)
As previously described, Embla Medical operates a Speak-Up Line to detect potential incidents of corruption
and bribery. The Speak-Up Line Policy and investigation manual provides procedures around the investigation
of cases reported. If needed, the investigation will be outsourced to an external party. The Governance Office is
responsible for the investigations and can escalate matters to the Audit Committee.
As preventive measures, all Embla Medical employees receive regular awareness training through the Code of
Conduct, which is also a part of the onboarding process for new employees. Anti-Corruption and Anti-Bribery is
included in this training. Selected groups of employees who are deemed to be more exposed to corruption and
bribery risks, undergo more in-depth training.
ACTIONS AND PROGRESS
TARGET
2025
2024
Employees trained in the Code of Conduct*
>95%
93%
99%
Cases submitted to the Speak-Up Line
n/a
11
4
Harassment and discrimination
n/a
3
3
*Training of new employees /onboarding
Anti-Corruption and Anti-Bribery
Our values - Honesty, Frugality and Courage - reflect our commitment to conduct our business fairly and with
integrity, to use company assets wisely, and to speak up when confronted with unethical situations. Bribery and
corruption are strictly prohibited, and Embla Medical does not authorize nor tolerate any business practice that
violates anti-bribery and anti-corruption laws or regulations, including our Anti-Bribery and Anti-Corruption
(ABAC) Policy. All employees are informed of our ABAC Policy through the Code of Conduct training.
A process with further guidelines, including outlining actions to address breaches in anti-corruption and
anti-bribery procedures and standards will supplement the policy. Selected groups will receive more
in-depth ABAC training.
FINANCIAL STATEMENTS
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§ Accounting Policies (G1-4/G1-5/G1-6)
Incidents of Corruption or Bribery:
Embla Medical collects data about incidents of corruption or bribery from its whistleblower function, the Speak-Up Line. In addition,
the People function is required to report to the Governance Office if reports on corruption or bribery are communicated to the People
function through other means than the Speak-Up Line, such as directly to management. Any non-compliance related to bribery or
corruption is reported to the Governance Office.
Political Influence and Lobbying Activities:
Embla Medical does not contribute to political activities. Embla Medical’s policy on political involvement is to not actively engage in
political activity or publicly support, or advocate for, specific political parties in the communities or countries where we do business.
Payment Practices:
Embla Medical is in the process of implementing a net 60-day term payment policy with exceptions for direct purchases with long
invoice-to-receipt times (+30 days) which have a net 90-day term. The 60-day term is encouraged but in special circumstances, such
as critical suppliers, a net 30-day term is allowed. Critical suppliers are defined as key silicone and bionic part providers and certain
suppliers in Asia. Legal or local restrictions require careful consideration and approval. The data for the average time to pay invoices,
or to close them with credit notes, includes all entities fully incorporated into the centralized Embla Medical accounts payable process
and represent 97% of our purchases (2024: 91%).
The KPI reported under G1-6 Payment Practices does not fully align with ESRS requirements. The ESRS disclosure requires data on the
average invoice payment time. Embla Medical’s dataset also includes some invoices closed by means other than payment.
Incidents of Corruption and Bribery (G1-4)
In both 2024 and 2025, there were no convictions or fines paid for violations of anti-corruption and anti-bribery
laws. Additionally, no actions were needed to address breaches in procedures and standards related to anti-
corruption and anti-bribery.
Political Influence and Lobbying Activities (G1-5)
It is Embla Medical’s policy not to actively engage in political activity or publicly support, or advocate for, specific
political parties in the communities or countries where we operate. Likewise, Embla Medical does not make
financial contributions to political parties, including for the year 2025.
While our employees may participate as individual citizens in the political process, decisions to do so are entirely
personal and voluntary, and they are personally responsible for their views and actions. Only the Embla Medical
Executive Management team members or those selected by the CEO may publicly express the company’s views
on legislation, regulations, or government action. Other employees may communicate the company’s views only
with specific guidance from the CEO or Executive Management team members.
Public policy issues have the potential to impact Embla Medical’s business, its employees, business partners,
shareholders, and the communities in which Embla Medical operates. Embla Medical believes that in certain cases
it may be appropriate, and in the company’s best interest to contribute or pay membership fees to trade and
industry associations and coalitions. The use of any company funds for contributions to Industry Associations
must be approved by the head of the relevant business unit.
Embla Medical is not registered in the EU Transparency Registry. No member of the Embla Medical management
or Board has held a public administrative position in the 2 years before joining the company.
Payment Practices (G1-6)
Fair payment terms are crucial for fostering trust, strengthening relationships, and encouraging collaboration
between Embla Medical and its suppliers. Paying suppliers on time is crucial as timely payments ensure
sustainability and growth. We have set our payment terms in line with industry practice outlined in our Payment
Policy. In 2025, the average time it took to pay or close an invoice was 39.3 days, compared to 35.5 days in 2024.
FINANCIAL STATEMENTS
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100
SUSTAINABILITY STATEMENT
Independent Limited Assurance Report on
Selected Sustainability Data
To the Stakeholders of Embla Medical hf.
Embla Medical hf. (‘Embla Medical’ or “the Company”) engaged us to provide limited assurance on Selected
Sustainability Data included in the Sustainability Statement on pages 53-99 for the period 1 January - 31 December
2025 marked with an icon “ ” (the “Selected Sustainability Data”).
Our Conclusion
Based on the procedures we performed and the evidence we obtained, nothing came to our attention that
causes us not to believe that the Selected Sustainability Data for the period 1 January - 31 December 2025 for
Embla Medical are prepared, in all material respects, in accordance with the Sustainability Accounting Policies
developed by Embla Medical as stated on pages 53 - 101 (the “accounting policies”).
This conclusion is to be read in the context of what we state in the remainder of our report.
What We Are Assuring
The scope of our work was limited to assurance over the Selected Sustainability Data, as defined in the first
paragraph of our report, including the disclosures in subsection “EU Taxonomy” on pages 79 - 83 with Article 8 of
Regulation (EU) 2020/852 (the “Taxonomy Regulation”).
We express limited assurance in our conclusion.
Professional Standards Applied and Level of Assurance
We performed a limited assurance engagement in accordance with International Standard on Assurance
Engagements 3000 (Revised) ‘Assurance Engagements other than Audits and Reviews of Historical Financial
Information’.
A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation
to both the risk assessment procedures, including an understanding of internal control, and the procedures
performed in response to the assessed risks; consequently, the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance
engagement been performed.
Our Independence and Quality Control
We have complied with the independence requirements and other ethical requirements in the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code),
which is founded on fundamental principles of integrity, objectivity, professional competence and due care,
confidentiality and professional behavior, and ethical requirements applicable in Denmark.
Our firm applies International Standard on Quality Management 1, ISQM 1, which requires the firm to design,
implement and operate a system of quality management including policies or procedures regarding compliance
with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our work was carried out by an independent multidisciplinary team with experience in sustainability reporting
and assurance.
Understanding Reporting and Measurement Methodologies
The Sustainability Data needs to be read and understood together with the accounting policies. The accounting
policies used for the preparation of the Selected Sustainability Data are accounting policies developed by the
company, which Management is solely responsible for selecting and applying.
Work Performed
We are required to plan and perform our work in order to consider the risk of material misstatement of the
Selected Sustainability Data. In doing so and based on our professional judgement, we:
■
Evaluated the appropriateness of the accounting policies used, their consistent application and related
disclosures;
■
Made inquiries and conducted interviews with management with responsibility for management and
reporting of the Selected Sustainability Data to assess reporting and consolidation process, use of company-
wide systems and controls performed;
■
Performed limited substantive testing on a sample basis to underlying documentation and evaluated the
appropriateness of quantification methods and compliance with the accounting policies for preparing
Selected Sustainability Data at corporate head office and in relation to selected reporting sites;
■
Performed analytical review of the Selected Sustainability Data; and
■
Evaluated the evidence obtained.
FINANCIAL STATEMENTS
Embla Medical - 2025 Annual Report | 101
Management’s Responsibilities
Management is responsible for:
■
Designing, implementing and maintaining internal control over information relevant to the preparation of the
Selected Sustainability Data that is free from material misstatement, whether due to fraud or error;
■
Establishing objective accounting policies for preparing the Selected Sustainability Data;
■
Measuring and reporting the information in the Selected Sustainability Data based on the accounting
policies; and
■
The content of the Selected Sustainability Data.
Our Responsibility
We are responsible for:
■
Planning and performing the engagement to obtain limited assurance about whether the Selected
Sustainability Data for the period 1 January - 31 December 2025 are prepared, in all material respects,
in accordance with the accounting policies;
■
Forming an independent conclusion, based on the procedures performed and the evidence obtained; and
■
Reporting our conclusion to the stakeholders of the Company.
Copenhagen, 3 February 2026
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no. 3377 1231
Rasmus Friis Jørgensen Torben Jensen
State Authorized Public Accountant State Authorized Public Accountant
© Embla Medical, 2026
Embla Medical hf.
Consolidated Financial Statements
31.12.2025
Table of Contents
Statement by the Board of Directors and President and CEO
1
Independent Auditor’s Report
5
Consolidated Income Statement
10
Consolidated Statement of Comprehensive Income
11
Consolidated Balance Sheet
12
Consolidated Statement of Cash Flow
14
Consolidated Statement of Changes in Equity
15
Notes to the Consolidated Financial Statements
16
Statement by the Board of Director and President and CEO
Embla Medical hf. Consolidated Financial Statements 2025 33
Embla Medical is a global leader in non-invasive orthopedics, innovating, producing, and providing advanced technological
solutions within the prosthetics, neuro orthotics and bracing & supports market. The Company also provides patient care
through a global network of Orthotic and Prosthetic (O&P) facilities. Embla Medical’s mission is to improve the mobility of our
end-users so they can live their Life Without Limitations®. The Company is headquartered in Iceland and owns and operates
subsidiaries in multiple countries around the world. The Company sells its products worldwide, but its principal markets are
Europe and North America. The Consolidated Financial Statements of Embla Medical hf. as at and for the year ended 31
December 2025 comprise Embla Medical hf. and its subsidiaries (together referred to as "the Company" or "Embla Medical ”).
Embla Medical’s Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards
(IFRS) accounting standards as adopted by the European Union and additional requirements in the Icelandic Annual Accounts Act
no. 3/2006.
Operations in 2025
The total net sales of the Company amounted to USD 928.7 million (2024: USD 854.9 million). Organic sales increase was 6%. Net
profit amounted to USD 83.6 million (2024: USD 69.0 million). Basic and diluted earnings per share amounted to US cents 19.6
(2024: US cents 16.2). Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to USD 185.9 million
and 20% of sales (2024: USD 169.1 million, 20%).
The total assets of the Company amounted to USD 1,730.5 million at year end (2024: USD 1,539.0 million), total liabilities were
USD 834.7 million (2024: USD 758.3 million) and total equity was USD 895.8 million (2024: USD 780.7 million). The equity ratio at
year end was 52% (2024: 51%).
The Company employed an average of 4,138 employees in 2025 (2024: 4,091) and 4,192 at year end (2024: 4,078). Information
regarding salaries and salary related expenses can be found in note 6.
In 2025 Embla Medical managed to grow the business across all regions and business segments. Sales grew 6% organically and
7% including acquisitions. Growth in 2025 was driven by Prosthetics & Neuro Orthotics and Patients Care mainly with a strong
performance in EMEA and supported by recently launched innovation. Gross profit margin was 62%, compared to 63% in 2024.
The gross profit margin was positively impacted by strong sales in P&NO and efficiency gains in manufacturing but was offset by
negative impact from FX, tariffs and turnaround initiatives in Patient Care
No subsequent events occurred after the balance sheet date that would require disclosure in the Consolidated Financial
Statements.
Shareholders and share price
Embla Medical’s shares are admitted to trading on the Nasdaq Copenhagen stock exchange. The market value of the Company at
year end was USD 2,202 million (2024: USD 2,125 million). The share price in DKK amounted to 32.5 at year end (2024: 35.6) and
decreased by 8.7% during the year. At year end, registered shareholders in Embla Medical were 6,718 compared to 6,095 at the
beginning of the year. It should be noted that due to the concentration of trading in Nasdaq Copenhagen in 2017, about 1,600
shareholders that held shares listed in Iceland were consolidated into a few nominee accounts. The ten largest shareholders and
their ownership percentage (net of treasury shares) are: William Demant Invest A/S – 50.95%, Interogo Holding AG – 11.54%,
Live Pension Fund – 6.05%, Arbejdsmarkedets Tillægspension – 5.03%, SEB Investment Management – 4.05%, Gildi Pension Fund
– 3.48%, LSR Pension Fund – 2.68%, Handelsbanken Fonder – 1.49%, Birta Pension Fund – 1.19%, ODIN Fonder – 1.16% . William
Demant Invest A/S (WDI) ownership in Embla Medical exceeded 50% in January 2018. According to WDI's announcement at the
time, their intention is to hold 50-60% of Embla Medical ’s shares going forward and they have no intention of taking over Embla
Medical or delisting Embla Medical’s shares from Nasdaq Copenhagen. Furthermore, WDI has no intention of making changes to
Embla Medical’s strategy, management or operations.
Statement by the Board of Director and President and CEO
Embla Medical hf. Consolidated Financial Statements 2025 34
Embla Medical shares and share contracts
Embla Medical’s total share capital is 430.4 million shares with a nominal value ISK 1 each. In 2025 in connection with the
acquisition of Streifeneder ortho.production, new shares were issued raising the total share capital in nominal value by 0.7%,
from ISK 427.6 million to ISK 430.4 million resulting in USD 15 million increase in share capital. At year end 2025 Embla Medical
held 2.7 million treasury shares that equals to 0.6% of issued shares. The remaining treasury shares held will be used to fulfill
obligations under share option agreements that have vested or will be vesting in 2026. Share contracts are granted to
management and key leaders. In 2024 a new long term incentives program of performance share units ("PSUs") and restricted
shares units ("RSUs") was initiated in accordance with approval at the Company's Annual General Meeting for 2023. This
program replaced the previous share options plan. Total granted and unexercised share options and share units at year end 2025
were 2.4 million shares (2024: 3.9 million shares), of which 1.2 million are exercisable before year end 2026 and the remaining in
2027-2028. See further information in note 24.
Dividend proposal
In line with the Company‘s Capital Structure and Capital Allocation Policy, the Board of Directors will propose to the Annual
General Meeting in 2026 not to pay a cash dividend. With emphasis on prioritizing investments in growth opportunities, value-
adding investment opportunities and acquisitions, Embla Medical has decided to discontinue dividend payments and focus on
returning excess capital to shareholders via purchase of treasury shares in accordance with the Company’s Capital Structure and
Capital Allocation Policy.
Corporate governance and risk management
The Company follows the Danish Recommendations for Corporate Governance issued by the Danish Committee on Corporate
Governance, available at:
https://corporategovernance.dk/.
regulations, the Articles of Association of the Company and the Board of Directors' Rules of Procedure, which addresses the
Board’s role and responsibilities. The Company’s management structure consists of the Board of Directors and the Executive
Management, led by the President and CEO. The two bodies are separate, and no person serves as a member of both. The Board
of Directors is composed of six members elected by shareholders at each Annual General Meeting for a term of one year. The
Board of Directors consists of three women and three men and is in compliance with Icelandic law on gender ratio. No Embla
Medical employee sits on the Board of Directors. The President and CEO manages the Company’s daily operations.
The Board of Directors has established three committees, the Audit Committee, the Nomination Committee and the
Remuneration Committee. The Audit Committee has three members from the Board, who are appointed by the Board of
Directors for a term of one year. The Chairman of the Board and the Chairman of the Audit Committee serve on the Nomination
Committee together with the President & CEO and the Remuneration Committee. The committees comply with their respective
Terms of Reference, which address their role and responsibilities etc.
An investment in Embla Medical involves various risks as the business, financial conditions, and operational results rest upon
certain assumptions and could have negative affect the Company. Even though the long-term prospects and underlying
fundamental drivers of our markets are not expected to change, Embla Medical highlights key risks which are currently
considered the most relevant. The key risks identified are: reimbursement landscape, regulatory requirements, new
technologies, industry consolidation, forward integration and acquisitions. Further description of these risks as well as other
relevant material risks that Embla Medical faces can be found in the Risk Management chapter of the Annual Report and
Company’s website . Information about financial instruments and financial risk management can be found in note 34.
The Board of Directors has an ongoing dialogue with the President and CEO on the identification, description and handling of the
business risks to which the Company may be exposed. The Company’s control framework in relation to financial processes, is
designed to mitigate risk of material misstatements. The Company designs its processes to ensure there are no material
weaknesses with internal controls that could lead to a material misstatement in its financial reporting. The external auditor’s
role in these processes is included in the independent auditor’s report.
Statement by the Board of Director and President and CEO
Embla Medical hf. Consolidated Financial Statements 2025 35
Sustainability at Embla Medical
Sustainability is embedded into Embla Medical’s strategy and throughout its organization. The Company has a robust
sustainability agenda and captures its commitment under the theme of Responsible for Tomorrow® recognizing that the
decisions and actions taken today, will affect future generations.
The Company’s Sustainability Commitment is to provide products and services that contribute to good health, using responsible
production methods and supporting climate action, while being a sponsor for inclusivity and transparency. It is believed that
sustainable growth is the only way to build a successful and responsible business for the benefit of future generations.
Our Environment
Embla Medical takes responsibility for its environmental impact, has set science-based targets and is actively working towards
Net-zero operations by 2050. It is reducing the environmental impact in the supply chain, and of the products and services.
Our People
The Company takes responsibility for enhancing the social well-being of the people across its value chain. It develops quality
products and services that improve people’s mobility, nurtures the well-being and development of its employees within a safe
and inclusive work environment. Embla Medical partners with suppliers that are committed to quality, and ethical and
sustainable practices, and creates a lasting positive impact on the communities, helping more people to live a Life Without
Limitations®. Multiple policies have been approved and implemented to support and guide the employees and other
stakeholders. Embla Medical‘s policies are available on the Company’s website:
https://emblamedical.com/policies
.
Our Business
The Company leads its business with integrity and transparency, promoting sound governance practices in all its activities. In
accordance with its values, Embla Medical sets high ethical standards, and has a zero-tolerance policy when it comes to
corruption and bribery. The Company guides its employees through the Code of Conduct and offers platforms for them and
other stakeholders to voice any potential concerns through the Embla Medical Speak-Up line. The Board approves a Corporate
Governance report that includes all the information to be included in the statutory statement referred to in Article 66 (c) of the
Icelandic Act Annual Accounts no. 3/2006, as well as explanations, comments and information on each recommendation in the
Danish Recommendation for Corporate Governance. The report is available on the Company’s
website:
https://www.emblamedical.com/investor -relations/reports-and-presentations
.
The Icelandic Annual Accounts Act no. 3/2006 requires companies in Iceland to conclude on non-financial information in the
Annual Report. For 2025, we are disclosing the information regarding sustainability in reference to the Corporate Sustainability
Reporting Directive and European Sustainability Reporting Standards, and including reporting on sustainable finance in line with
the EU Taxonomy Regulation. Embla Medical has obtained limited assurance according to ISAE 3000 on selected sustainability
data included in the Sustainability Statement chapter
in the Annual Report. Embla Medical is required by the EU Taxonomy to
disclose its alignment and eligibility of turnover, operating expenses and capital additions with six environmental objectives
stated in the EU 2020/852 regulation. The results can be found in Sustainability statement chapter in the Annual Report.
Statement by the Board of Directors and the President and CEO
According to our best knowledge, it is our opinion that the Consolidated Financial Statements give a true and fair view of the
consolidated financial performance of the Company for the year 2025, its assets, liabilities and consolidated financial position as
at 31 December 2025 and its consolidated cash flows for the year 2025. Furthermore, it is our opinion that the financial
statements and the report of the Board of Directors and the President and CEO contain a clear overview of developments and
results in the Company's operations, its position and describe the main risk factors and uncertainties facing the Company.
In our opinion, the Sustainability Statement included in the Annual Report represents a reasonable, fair, and balanced
representation of the Company's sustainability performance and are prepared in accordance with the stated accounting
policies. Furthermore, disclosures within subsection “EU Taxonomy KPIs” in the environmental section of
the Sustainability Statement are, in all material respects, in accordance with Article 8 of EU Regulation 2020/852 (the “Taxonomy
Regulation”).
Statement by the Board of Director and President and CEO
Embla Medical hf. Consolidated Financial Statements 2025 36
In our opinion, the Consolidated Financial Statements of Embla Medical hf. for the financial year 2025 identified as
“EmblaMedical-2025-12-31.zip” are prepared in all material respects, in compliance with the ESEF Regulation.
The Board of Directors and President and CEO of Embla Medical hf. hereby confirm the Consolidated Financial Statements of
Embla Medical for the year 2025 with their signatures.
Reykjavík, 3 February 2026
Board of Directors
Niels Jacobsen
Chairman of the Board
Svafa Grönfeldt
Vice Chairman of the Board of Directors
Arne Boye Nielsen Alberto Esquenazi
Member of the Board of Directors Member of the Board of Directors
Tina Abild Olesen Caroline Vagner Rosenstand
Member of the Board of Directors Member of the Board of Directors
President and CEO
Sveinn Sölvason
Independent Auditor´s Report
Embla Medical hf. Consolidated Financial Statements 2025 37
To the Board of Directors and the Shareholders of Embla Medical hf.
Opinion
We have audited the accompanying Consolidated Financial Statements of Embla Medical hf. and its subsidiaries (the Company)
for the year 2025, excluding the Statement by the Board of Directors and President and CEO.
In our opinion, the Consolidated Financial Statements give a true and fair view of the consolidated financial position of the
Company as at December 31, 2025, and of its consolidated financial performance and its consolidated cash flows for the year
then ended in accordance with IFRS accounting standards as adopted by the European Union (EU), and applicable articles in
Icelandic law on annual accounts.
Our opinion is consistent with our additional report to the Audit Committee and Board of Directors.
The Consolidated Financial Statements
comprise
The Statement by the Board of Directors and President and CEO and note 2. Quarterly statements are excluded from the audit,
refer to section
reporting on other information
.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under those standards are
further described in the auditor’s responsibilities for the audit of the Consolidated Financial Statements section of our report.
Independence
We are independent of the Company in accordance with Icelandic laws on auditors and auditing and the code of ethics that
apply to auditors in Iceland and relate to our audit of the Company's Consolidated Financial Statements. We have fulfilled our
other ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services that we have provided to the Company are in
accordance with the applicable law and regulations in Iceland and that we have not provided non-audit services that are
prohibited under Article 5.1. of Regulation (EU) No. 537/2014.
The non-audit services that we have provided to the Company, in the period from 1 January 2025 to 31 December 2025, are
disclosed in note no. 7 to the Consolidated Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independent Auditor´s Report
Embla Medical hf. Consolidated Financial Statements 2025 38
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
Consolidated Financial Statements of the current period. These matters were addressed in the context of our audit of the
Consolidated Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Key audit matter
Impairment of goodwill
The book value of goodwill at year end 2025 amounted to
USD 836 million.
The change in goodwill consists of additions due to current
year business combinations amounting to USD 19 million
together with exchange rate profits amounting to USD 41
million.
The carrying value of goodwill and the related impairment
test relies on the discounted expected future cash flows
(value in use) which are complex to determine and require
significant estimation by management. The estimates used
by management include the determination of market and
sales potential, timing of product launches, profit margins,
discount rate assumptions and the determination of
appropriate cash generating units.
Due to the relative sensitivity of certain inputs to the
impairment testing process, and in particular the future
cash flows of the cash generating unit, the valuation of
goodwill is considered to be a key audit matter.
We refer to note no. 40 that explains the impairment and
Company’s accounting policies in further detail. We also
refer to note no. 13 on goodwill and note no. 33 relating to
the change in the Company due to the acquisition of other
companies.
Audit procedures
Our audit procedures included:
- Understanding management´s process for assessing the
goodwill for potential impairment, including discussions
with management for indications of impairment of
goodwill.
- Evaluation of the reasonability of the model used by
management to calculate the value in use of the individual
cash generation units and if it complies with the
requirements of IAS 36 Impairment of assets. This entailed
involving our internal specialists to assist with the audit
procedures carried out in relation to the impairment of
goodwill.
- Understanding and validation of assumptions used to
calculate the discount rates and value in use, including
evaluation of price and volume forecast, long-term growth
rates, and mathematical accuracy of relevant value-in-use
models prepared by management.
- Performing sensitivity analysis based on activity and our
understanding of the future prospects to identify whether
these scenarios could give rise to an impairment.
- Evaluation of the presentation and disclosure of
impairment testing, ensuring compliance with applicable
accounting standards.
Reporting on other information, including the Statement by the Board of Directors and President and CEO
The Board of Directors and President and CEO are responsible for other information. The other information comprises of the
Statement by the Board of Directors and President and CEO, note no. 2 Quarterly stateme nts and the Annual Report, which we
obtained prior to the date of this auditor’s report.
Our opinion on the Consolidated Financial Statements does not cover the other information, including the Statement by the
Board of Directors and President and CEO.
In connection with our audit of the Consolidated Financial Statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the Consolidated
Financial Statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. In addition, in
light of the knowledge and understanding of the entity and its environment obtained in the course of the audit, we are required
to report if we have identified material misstatements in other information that we obtained prior to the date of this auditor’s
report. We have nothing to report in this respect.
Independent Auditor´s Report
Embla Medical hf. Consolidated Financial Statements 2025 39
With respect to the Statement by the Board of Directors and President and CEO we have, in accordance with article 104, of the
Icelandic law on annual accounts reviewed that to the best of our knowledge, the Statement by the Board of Directors and
President and CEO accompanying the Consolidated Financial Statements includes applicable information in accordance with
Icelandic law on annual accounts if not presented elsewhere in the Consolidated Financial Statements.
Responsibilities of the Board of Directors and President and CEO
The Board of Directors and the President and CEO are responsible for the preparation and fair presentation of the Consolidated
Financial Statements in accordance with IFRS accounting standards as adopted by the EU, and applicable articles in Icelandic law
on annual accounts, and for such internal control as determined necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the Consolidated Financial Statements, management is responsible for assessing the Company's ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Company's management must provide appropriate explanations regarding its ability to continue as going concern, if
applicable, and why management applies the presumption of going concern in the preparation and presentation of the
Consolidated Financial Statements.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these Consolidated Financial Statements.
As part of an audit in accordance with International Standards on Auditing, we exercise professional judgement and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Consolidated Financial Statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the Consolidated Financial Statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Independent Auditor´s Report
Embla Medical hf. Consolidated Financial Statements 2025 40
Evaluate the overall presentation, structure and content of the Consolidated Financial Statements, including the disclosures, and
whether the Consolidated Financial Statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Company to express an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and
performance of the Company audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the Consolidated Financial Statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
Report on European single electronic format (ESEF Regulation)
As part of our audit of the Consolidated Financial Statements of Embla Medical hf. we performed procedures to be able to issue
an opinion on whether the Consolidated Financial Statements of Embla Medical hf. for the year 2025 with the file name
EmblaMedical-2025-12-31.zip is prepared, in all material respects, in accordance with law no. 20/2021 Act on securities issuer
obligations to issue information and self-report relating to requirements under the European single electronic format regulation
EU no. 2019/815, which include requirements concerning preparation of the Consolidated Financial Statements in XHTML format
and iXBRL markup.
The Board of Directors and President and CEO are responsible for preparing the Consolidated Financial Statements in accordance
with law no. 20/2021. This responsibility includes preparing the Consolidated Financial Statements in a XHTML format in
accordance to EU regulation no. 2019/815 on the European single electronic format (ESEF regulation).
Our responsibility is to obtain reasonable assurance, based on evidence that we have obtained, on whether the Consolidated
Financial Statements are prepared in all material respects, in accordance with the ESEF Regulation, and to issue a report that
includes our opinion. The nature, timing and extent of procedures selected depend on the auditor's judgement, including the
assessment of the risks of material departures from the requirements set out in the ESEF regulation, whether due to fraud or
error.
Independent Auditor´s Report
Embla Medical hf. Consolidated Financial Statements 2025 41
In our opinion, the Consolidated Financial Statements of Embla Medical hf. for the year 2025 with the file name EmblaMedical-
2025-12-31.zip is prepared, in all material respects, in accordance with the European single electronic format regulation EU no.
2019/815.
Appointment
We were first appointed as auditors at the Company's annual general meeting on 8 March 2022. Our appointment has been
renewed annually at the Company's annual general meeting representing a total period of uninterrupted engagement
appointment of four years.
Reykjavík, 3 February 2026
PricewaterhouseCoopers ehf.
Vignir Rafn Gíslason Ljósbrá Baldursdóttir
State Authorized Public Accountant State Authorized Public Accountant
Embla Medical hf. Consolidated Financial Statements 2025 42
Consolidated Income Statement
All amounts in USD '000
Notes
2025
2024
Net sales
3
Cost of goods sold
(350,134 )
(320,189 )
Gross profit
Other income / (expenses)
Sales and marketing expenses
(334,180 )
(311,151 )
Research and development expenses
(45,856 )
(40,832 )
General and administrative expenses
(73,824 )
(69,964 )
Earnings before interest and tax (EBIT)
Financial income
Financial expenses
(21,115 )
(24,746 )
Net exchange rate difference
(4,974 )
(4,435 )
Net financial expenses
8
(24,028 )
(25,930 )
Share in net profit of associates
15
Earnings before tax (EBT)
Income tax
9
(24,291 )
(21,603 )
Net profit
Attributable to:
Owners of the Company
Non-controlling interests
Net profit
Earnings per share
10
Basic earnings per share (US cent)
Diluted earnings per share (US cent)
Embla Medical hf. Consolidated Financial Statements 2025 43
Consolidated Statement of Comprehensive Income
All amounts in USD '000
Notes
2025
2024
Net profit
Items that may be reclassified subsequently to income statement:
Change in cash flow hedges
25
(1,826 )
Fair value changes of financial liabilities
Exchange differences on translating foreign operations
(11,175 )
Income tax
22
(2,073 )
Other comprehensive income, net of income tax
(11,328 )
Total comprehensive income
Attributable to:
Owners of the Company
Non-controlling interests
Total comprehensive income
Embla Medical hf. Consolidated Financial Statements 2025 44
Consolidated Balance Sheet
Assets
All amounts in USD '000
Notes
31.12.2025
31.12.2024
Property, plant and equipment
11
Right of use assets
12
Goodwill
13
Other intangible assets
14
Investment in associates
15
Other financial assets
16
Deferred tax assets
27
Non-current assets
Inventories
17
Accounts receivable
18
Other financial assets
16
Other assets
19
Cash and cash equivalents
20
Current assets
Total assets
Embla Medical hf. Consolidated Financial Statements 2025 45
Consolidated Balance Sheet
Equity and liabilities
All amounts in USD '000
Notes
31.12.2025
31.12.2024
Issued capital and share premium
21
Other reserves
22
(50,494 )
(75,390 )
Retained earnings
23
Shareholders equity
Non-controlling interest
Total equity
Borrowings
26
Lease liabilities
12
Deferred tax liabilities
27
Provisions
28
Deferred income
29
Other financial liabilities
30
Non-current liabilities
Borrowings
26
Lease liabilities
12
Accounts payable
Income tax payable
Provisions
28
Accrued salaries and related expenses
Other financial liabilities
30
Other liabilities
32
Current liabilities
Total liabilities
Total equity and liabilities
Embla Medical hf. Consolidated Financial Statements 2025 46
Consolidated Statement of Cash Flow
All amounts in USD '000
Notes
2025
2024
Earnings before interests and tax (EBIT)
Depreciation, impairment and amortization
11, 12, 14
Change in inventories
(8,594 )
(5,928 )
Change in receivables
(12,321 )
(5,524 )
Change in payables
(2,279 )
Change in provisions
Other operating activities
(2,403 )
Cash generated from operations
Interest received
Interest paid
(20,551 )
(24,082 )
Income tax paid
(26,603 )
(23,487 )
Net cash generated from operating activities
Purchase of fixed and intangible assets
11, 14
(32,332 )
(39,227 )
Acquisition of subsidiaries, net of cash in acquired entities
33
(4,087 )
(65,020 )
Payment of contingent consideration and deferred payments
(10,603 )
(5,052 )
Dividend received
15
Other investing activities
(3,186 )
Cash flows used in investing activities
(46,126 )
(104,770 )
Proceeds from long-term borrowings
26
Repayments of long-term borrowings
26
(59,011 )
Changes in revolving credit facility
26
(30,823 )
Payments of lease liabilities
12
(27,500 )
(24,379 )
Increase in subsidiaries not affecting control
23
(5,123 )
(9,648 )
Dividends from subsidiaries paid to non-controlling interests
(35 )
Purchased treasury shares
21
(9,752 )
Cash flows (used in) / generated from financing activities
(74,782 )
Net change in cash
Exchange rate effects on cash held in foreign currencies
(3,545 )
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Non-cash financing and investing activities
20
Embla Medical hf. Consolidated Financial Statements 2025 47
Consolidated Statement of Changes in Equity
Share-
Non-
Share
Share
Other
Retained
holders
controlling
Total
All amounts in USD '000
capital
premium
reserves
earnings
equity
interests
equity
Balance at 1 January 2024
(64,045 )
Net profit
Change in cash flow hedges
Fair value changes of financial liabilities
Transl. diff. of shares in subsidiaries
(12,860 )
(12,860 )
(12,860 )
Total comprehensive income
(11,328 )
Put option for minority share in
subsidiary
Share contracts charge
Share contracts vested/expired
(1,308 )
Issued new shares
Change in non-controlling interests
(10,142 )
(10,142 )
(292 )
(10,434 )
Balance at 31 December 2024
(75,390 )
Net profit
Change in cash flow hedges
(1,461 )
(1,461 )
(1,461 )
Transl. diff. of shares in subsidiaries
Total comprehensive income
Payment of dividends
(35 )
(35 )
Share contracts charge
Share contracts vested/expired
(2,967 )
(76 )
(76 )
Purchase of treasury shares
(16 )
(9,736 )
(9,752 )
(9,752 )
Issued new shares
Minority interest arising on acquisition
Change in non-controlling interests
(2,581 )
(2,581 )
(3,143 )
(5,724 )
Balance at 31 December 2025
(50,494 )
For details on other reserves refer to note 22.
In June 2016 the Icelandic Parliament passed a legal reform of the Icelandic Financial Statements Act no. 3/2006 which became
effective on January 1, 2016. It requires retained earnings to be separated into two categories: restricted and unrestricted
retained earnings. Profits, net of dividend, received from subsidiaries are classified as restricted retained earnings. The
Company could, based on its control as the parent company, decide to let its subsidiaries pay dividends that would lower the
restricted balance. As the Company has sufficient retained earnings from previous years, this legal act does not prevent the
Company from making dividend payments to its shareholders.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 48
1. General information
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 49
2. Quarterly statements
Unaudited
Full year
Q4
Q3
Q2
Q1
2025
2025
2025
2025
2025
Net sales
928,689
256,691
236,795
232,418
202,786
Cost of goods sold
(350,134)
(98,625)
(88,559)
(87,931)
(75,020)
Gross profit
578,555
158,066
148,236
144,487
127,766
Gross profit margin
62%
62%
63%
62%
63%
Other income / (expenses)
608
175
(382)
447
367
Sales and marketing expenses
(334,180)
(92,194)
(81,400)
(82,529)
(78,057)
Research and development expenses
(45,856)
(11,948)
(11,489)
(11,851)
(10,569)
General and administrative expenses
(73,824)
(21,662)
(18,065)
(16,817)
(17,280)
EBIT
125,303
32,438
36,900
33,737
22,227
Net financial expenses
(24,028)
(2,947)
(4,135)
(9,764)
(7,181)
Share in net profit of associates
6,661
1,127
1,220
3,701
613
EBT
107,936
30,618
33,984
27,674
15,659
Income tax
(24,291)
(5,896)
(8,203)
(6,561)
(3,631)
Net profit
83,645
24,722
25,782
21,113
12,027
EBITDA
185,922
47,939
52,850
48,666
36,467
EBITDA margin
20%
19%
22%
21%
18%
There were no special items in the year 2025.
3. Net sales
2025
2024
Sales by geographical segment:
EMEA
457,445
394,869
Americas
398,516
392,898
APAC
72,728
67,122
Total
928,689
854,889
Sales by business segment:
Prosthetics & Neuro Orthotics
513,408
451,306
Bracing & Supports
148,383
148,386
Internal product sales
(39,036)
(38,516)
External product sales
622,756
561,176
Patient Care
305,933
293,713
Total
928,689
854,889
Sales of additional sold warranties and service checks included in standard warranties are deferred at point of sale, then released
over the warranty period. Refer to note 40 for accounting policy on revenue recognition and warranty provisions and refer to
note 29 for breakdown of revenues recognized over time and amounts deferred and released during the year. All other revenues
are recognized at point of sale.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 50
4. Segment information
The identified operating segments comprise the three main geographical markets. These segments are EMEA (Europe Middle-
East and Africa), Americas and APAC (Asia-Pacific). The geographical segments form the basis for managerial decision making.
Information reported to the President and CEO for the purposes of resource allocation and assessment of segment performance
focuses on geographical markets.
No single customer accounted for more than 10% of the Company‘s sales in 2025 or 2024.
2025
EMEA
Americas
APAC
Eliminations
Consolidated
Sales
External sales
457,445
398,516
72,728
0
928,689
Inter-segment sales
610,991
236,570
5,329
(852,890)
0
Total sales
1,068,436
635,086
78,057
(852,890)
928,689
Results
Segment results (EBIT)
72,142
42,599
10,562
0
125,303
Net financial expenses
(24,028)
Share in net profit of associates
6,661
Earnings before tax (EBT)
107,936
Income tax
(24,291)
Net profit
83,645
Balance sheet 31.12.2025
Segment assets
875,192
789,873
65,426
0
1,730,491
Segment liabilities
654,546
159,007
21,135
0
834,688
The total amount of non-current assets other than financial instruments and deferred tax assets, broken down by the
Company´s country of domicile and other material location of the assets, is shown in the below table:
Country
2025
2024
USA
527,240
520,992
Germany
206,730
158,507
France
146,470
127,620
Iceland
114,486
104,081
Netherlands
36,724
21,934
Sweden
46,436
40,439
UK
43,968
42,619
Australia
19,244
18,742
Other
71,849
58,007
1,213,147
1,092,941
Other information
EMEA
Americas
APAC
Eliminations
Consolidated
Capital additions
20,424
10,548
1,360
0
32,332
Depreciation, impairment and amortization
42,368
14,736
3,515
0
60,619
The majority of inter-segment sale prices are determined using the Transactional Net Margin Method (TNMM).
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 51
2024
EMEA
Americas
APAC
Eliminations
Consolidated
Sales
External sales
394,869
392,898
67,122
0
854,889
Inter-segment sales
509,552
160,128
4,955
(674,635)
0
Total sales
904,421
553,026
72,077
(674,635)
854,889
Results
Segment results (EBIT)
61,253
44,033
7,866
0
113,153
Net financial income/(expenses)
(25,930)
Share in net profit of associates
3,340
Earnings before tax (EBT)
90,563
Income tax
(21,603)
Net profit
68,960
Balance sheet 31.12.2024
Segment assets
719,241
759,915
59,809
0
1,538,965
Segment liabilities
581,549
158,382
18,335
0
758,266
Other information
EMEA
Americas
APAC
Eliminations
Consolidated
Capital additions
31,791
6,620
816
0
39,227
Depreciation, impairment and amortization
37,891
15,394
2,688
0
55,973
5. Sales and expenses split by main currencies
2025
2024
LCY
USD
%
LCY
USD
%
Sales
USD
358,545
358,545
39%
350,524
350,524
41%
EUR
251,970
285,142
31%
220,419
238,475
28%
ISK
562,783
4,391
1%
508,430
3,684
0%
SEK, NOK, DKK
107,189
12%
99,604
12%
GBP, AUD, CAD & Other
173,422
19%
162,603
19%
Total
928,689
100%
854,889
100%
COGS and OPEX
USD
306,591
306,591
38%
302,848
302,848
41%
EUR
183,268
207,795
26%
164,563
178,000
24%
ISK
11,522,513
89,679
11%
11,112,364
80,541
11%
SEK, NOK, DKK
99,945
12%
91,609
12%
GBP, MXN, CAD & Other
99,376
12%
88,738
12%
Total
803,386
100%
741,736
100%
Currency split is derived by using best available information at each time.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 52
6. Salaries
2025
2024
Salaries
299,437
280,540
Salary-related expenses
70,250
63,776
369,687
344,316
Full time equivalent (FTE) on average
4,138
4,091
Full time equivalent at period end
4,192
4,078
Included in salary-related expense are pension related expenses amounting to USD 23 million (2024: USD 21.4 million).
Information on share
‑
based payments recognised in employee remuneration, are outlined in note 24 Share contracts.
Salaries and salary-related expenses, classified by functional category:
2025
2024
Cost of goods sold
101,149
87,761
Sales and marketing expenses
197,593
192,302
Research and development expenses
28,390
24,873
General and administrative expenses
42,555
39,380
369,687
344,316
Expenses related to information technology and human resource departments are allocated to the functions they support.
Management salaries and benefits
Salaries
Shares owned
(ii)
Board of Directors:
2025
2024
2025
2024
Niels Jacobsen - Chairman of the Board(i)
114
111
219,493,992
219,493,992
Svafa Grönfeldt - Vice Chairman
76
74
0
0
Alberto Esquenazi
46
44
0
0
Arne Boye Nielsen
53
52
0
0
Caroline Vagner Rosenstand
46
44
0
0
Tina Abild Olesen
38
37
0
0
(i) Shares owned by William Demant Invest A/S which is represented by Niels Jacobsen on the Board. Niels Jacobsen and financially related parties own
personally 203,330 shares (2024: 203,330 shares).
(ii) Shares owned are displayed in total number of owned shares, not rounded to the nearest thousand.
The Board of Directors did not hold any share option contracts at the end of the current period nor at the end of the
comparative period.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 53
2025
Fixed base
Cash based
Other
Share based
Total
salary
incentive
Pension
benefits
incentive
remuneration
Executive Management:
Sveinn Sölvason, President and CEO
(i)
745
223
133
24
276
1,400
Executive management (6.8 FTEs)
(ii)
2,842
780
368
85
567
4,642
3,587
1,003
500
109
843
6,043
2024
Fixed base
Cash based
Other
Share based
Total
salary
incentive
Pension
benefits
incentive
remuneration
Executive Management:
Sveinn Sölvason, President and CEO
(i)
576
225
128
25
59
1,014
Executive management (6.6 FTEs)
(ii)
2,558
814
368
41
418
4,199
3,134
1,040
496
66
477
5,213
In February 2025 Conal Harte was appointed to the position of EVP of Patient Care and in April 2025, André Rocha joined the
company as EVP of Research & Development, succeeding Hildur Einarsdóttir, who departed the company at the end of January
2025.
Executive management is the same as key management.
(i) Shares owned at year end by Sveinn Sölvason 68,342 (2024: 68,342).
(ii) Shares owned at year end by executive management 83,406 (2024: 81,991).
7. Fees to auditors
2025
2024
Audit of Financial Statements
1,681
1,664
Other services
122
90
1,803
1,754
The table shows the fees to PricewaterhouseCoopers (PwC). In 2025, fees for other services amounting to USD 17 thousand
were paid to PricewaterhouseCoopers ehf., the auditor of the Consolidated Financial Statements; no such fees were incurred in
2024.
8. Financial income / expenses
2025
2024
Interests on bank deposits
1,523
1,966
Other financial income
539
1,285
Financial income
2,061
3,251
Interests on loans
(12,263)
(17,883)
Interest on leases
(7,261)
(5,365)
Other financial expenses
(1,591)
(1,499)
Financial expenses
(21,115)
(24,746)
Net exchange rate differences
(4,974)
(4,435)
Net financial expenses
(24,028)
(25,930)
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 54
9. Income tax
2025
2024
Current tax expenses
(29,926)
(29,456)
Deferred tax expenses
5,635
7,853
(24,291)
(21,603)
2025
2024
Amount
%
Amount
%
Earnings before tax
107,936
90,563
Tax using Icelandic corporate tax rate
(21,587)
20%
(19,018)
21%
Difference between tax rates of non - Icelandic enterprises and
Icelandic corporate tax rate
(2,588)
2%
(2,905)
3%
Impact of non-deductible expenses / non-taxable income
850
1%
92
(0%)
Impact of unrecognized tax assets, net
(473)
0%
(10)
0%
Other impacts
(492)
(1%)
238
(0%)
(24,291)
23%
(21,603)
24%
Deferred tax expenses:
2025
2024
Origination and reversal of temporary differences
5,677
7,802
Effect of changes in tax rate
(42)
51
5,635
7,853
For compliance and reporting on both Country-by-Country Reporting and Pillar Two, Embla Medical is part of WDI group. Embla
Medical is not materially impacted by OECD’s/EUs Pillar Two Model Rules and local implementation thereof.
10. Earnings per share
2025
2024
Net profit
83,645
68,960
Weighted average number of ordinary shares (in '000)
426,959
426,644
Adjustments for calculation of diluted earnings per share:
Options and PSU/RSU
40
15
Weighted average number of shares including potential shares (in '000)
427,000
426,659
Basic earnings per share (US cent)
19.6
16.2
Diluted earnings per share (US cent)
19.6
16.2
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 55
11. Property, plant and equipment
Leasehold
improvements
Machinery &
equipment
Office
equipment
Computer
equipment
Total
2025
Cost
At 1 January
51,273
80,116
14,939
13,941
160,269
Additions
6,921
10,675
1,197
3,279
22,073
Business combinations
2,294
599
403
63
3,359
Eliminated on disposal
(46)
(178)
(21)
(130)
(375)
Fully depreciated assets
(94)
(522)
(189)
(2,224)
(3,029)
Exchange rate differences
2,399
1,539
1,534
833
6,304
At 31 December 2025
62,745
92,228
17,862
15,764
188,600
Depreciation
At 1 January
19,654
50,499
9,850
8,442
88,445
Charge for the period
5,897
8,128
1,684
3,658
19,367
Eliminated on disposal
(23)
(183)
(19)
(106)
(331)
Fully depreciated assets
(94)
(522)
(189)
(2,224)
(3,029)
Exchange rate differences
1,652
888
849
545
3,935
At 31 December 2025
27,086
58,810
12,175
10,315
108,385
At 31 December 2025
35,660
33,418
5,688
5,449
80,215
Depreciation classified by functional category:
2025
2024
Cost of goods sold
9,739
9,850
Sales and marketing expenses
4,532
3,922
Research and development expenses
1,303
773
General and administrative expenses
3,793
4,030
Total
19,367
18,575
Leasehold
improvements
Machinery &
equipment
Office
equipment
Computer
equipment
2024
Total
Cost
At 1 January
42,814
71,701
15,033
14,941
144,489
Additions
11,522
10,712
1,313
3,486
27,033
Business combinations
10
459
10
115
594
Eliminated on disposal
(27)
(224)
0
(180)
(431)
Fully depreciated assets
(1,086)
(1,540)
(871)
(3,867)
(7,364)
Exchange rate differences
(1,960)
(992)
(546)
(554)
(4,052)
At 31 December 2024
51,273
80,116
14,939
13,941
160,269
Depreciation
At 1 January
17,284
44,462
9,431
8,926
80,103
Charge for the period
4,684
8,338
1,661
3,892
18,575
Eliminated on disposal
(14)
(144)
0
(155)
(313)
Fully depreciated assets
(1,086)
(1,540)
(871)
(3,867)
(7,364)
Exchange rate differences
(1,214)
(617)
(371)
(354)
(2,556)
At 31 December 2024
19,654
50,499
9,850
8,442
88,445
At 31 December 2024
31,619
29,617
5,089
5,499
71,824
None of the Company's property, plant and equipment are pledged as security. Major divestments are subject to bank approval.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 56
12. Leases
Right of use assets
Buildings &
sites
Machinery &
equipment
2025
Total
At 1 January
123,789
4,012
127,802
Additions and renewals
53,766
2,817
56,583
Depreciation charge and impairment for the period
(26,573)
(2,696)
(29,269)
Eliminated on disposal and termination
(2,790)
0
(2,790)
Exchange rate differences
9,664
524
10,188
At 31 December 2025
157,857
4,658
162,514
Depreciation and impairment classified by functional category:
2025
2024
Cost of goods sold
11,731
10,093
Sales and marketing expenses
9,161
5,047
Research and development expenses
3,149
3,028
General and administrative expenses
5,227
7,065
Total
29,269
25,233
Buildings &
sites
Machinery &
equipment
2024
Total
At 1 January
118,967
2,706
121,673
Additions and renewals
35,206
3,799
39,005
Depreciation charge for the period
(22,933)
(2,300)
(25,233)
Eliminated on disposal and termination
(1,649)
0
(1,649)
Exchange rate differences
(5,801)
(191)
(5,992)
At 31 December 2024
123,789
4,012
127,802
Lease liabilities
Contractual maturities analysis as follows:
31.12.2025
31.12.2024
In 2026 / 2025
35,227
29,307
In 2027 / 2026
31,089
24,831
In 2028 / 2027
26,456
20,438
In 2029 / 2028
21,763
16,985
Later
106,631
77,069
Total
221,166
168,629
Less: Present value discount
(39,450)
(26,214)
Lease liability
181,716
142,415
Lease liabilities are presented in the Consolidated Balance Sheet as follows:
Non-Current
153,499
118,279
Current
28,218
24,136
Total
181,716
142,415
Lease related expenses recognized in the Consolidated Income Statement:
2025
2024
Depreciation expense from right of use assets
29,269
25,233
Interest expense on lease liabilities
7,261
5,365
Exchange difference on lease liabilities
1,562
2,209
Short-term and low value lease expenses not included in lease liabilities
563
677
Termination of right of use asset
112
76
Total
38,766
33,560
Total cash outflow for leases
34,761
29,743
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 57
13. Goodwill
2025
2024
At 1 January
776,306
690,855
Business combinations
18,698
104,489
Exchange rate differences
40,556
(19,038)
At 31 December
835,560
776,306
During the year, the Company determined the recoverable amount of goodwill and concluded that none of the Company's cash-
generating units have suffered an impairment loss.
The carrying amount of goodwill was allocated to the following cash-generating units:
31.12.2025
31.12.2024
Americas
453,848
451,947
EMEA
365,582
309,266
APAC
16,130
15,093
Total
835,560
776,306
The recoverable amount of the cash-generating units is determined based on a value in use calculation which require the use of
assumption. The calculation use cash flow projections based on the financial forecast for the year 2026 approved by
management and the Board of Directors.
Cash flow beyond the one-year period are extrapolated using the assumption stated below. Cash flows beyond 2030 have been
extrapolated using a steady growth rate for all cash-generating units. This growth rate does not exceed the long-term average
growth rate for the market in each segment. Management believes that any reasonable change in the key assumptions on which
the recoverable amount is based would not cause the carrying amount to exceed its recoverable amount.
2025
Americas
EMEA
APAC
Sales growth (%)
7%
7%
12%
EBITDA margin (%)
20%
26%
16%
Capex ratio
3%
3%
4%
Perpetual growth rate (%)
2.5%
2.5%
2.5%
Pre-tax discount rate (%)
10.6%
10.2%
10.6%
Post-tax discount rate (%)
10.1%
9.7%
10.1%
2024
Americas
EMEA
APAC
Sales growth (%)
8%
8%
13%
EBITDA margin (%)
21%
25%
19%
Capex ratio
4%
3%
3%
Perpetual growth rate (%)
2.5%
2.5%
2.5%
Pre-tax discount rate (%)
10.6%
10.2%
10.6%
Post-tax discount rate (%)
10.2%
9.8%
10.1%
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 58
Management has determined the values assigned to each of the above key assumptions as follows:
Sales growth
Average annual growth rate over the five-year forecast period is in line with current outlook, which is slightly reduced compared
with the Growth’27 strategy approved by the Board of Directors.
EBITDA margin
Average annual EBITDA margin over the five-year forecast period based on gradual margin improvements in line with historical
margin increases.
CAPEX ratio
Average annual amount of purchased fixed and intangible assets as ratio to sales. This is based on both historical and planned
purchases and sales.
Perpetual growth rate
Average steady growth rate used to extrapolate cash flows beyond the forecast period. This growth rate does not exceed the
long-term average growth rate for the market in each segment
Pre-tax discount rate
Reflect specific risk relating to the relevant segments and the countries in which they operate.
Post-tax discount rate (WACC)
Reflect specific risk relating to the relevant segments and the countries in which they operate, including tax effects based on
effective tax rates in each segment.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 59
14. Other intangible assets
Customer &
distribution
relationships
Patents &
development
costs
Software &
other
2025
Trademarks
Total
Cost
At 1 January
36,701
32,214
8,156
63,175
140,246
Additions
0
960
39
1,409
2,408
Additions - internally generated
0
0
0
7,852
7,852
Business combinations
7,823
478
0
79
8,380
Fully amortized assets
0
0
(279)
(3,197)
(3,476)
Exchange rate differences
3,035
511
712
131
4,389
At 31 December 2025
47,559
34,163
8,627
69,448
159,798
Amortization
At 1 January
9,393
9,789
523
23,896
43,601
Charge for the period
3,668
2,311
104
5,901
11,984
Fully amortized assets
0
0
(279)
(3,197)
(3,476)
Exchange rate differences
478
279
0
23
781
At 31 December 2025
13,540
12,379
348
26,623
52,889
At 31 December 2025
34,019
21,784
8,280
42,825
106,908
Amortization classified by functional category:
2025
2024
Cost of goods sold
883
1,577
Sales and marketing expenses
6,819
6,377
Research and development expenses
1,882
1,691
General and administrative expenses
2,400
2,520
Total
11,984
12,165
Customer &
distribution
relationships
Patents &
development
costs
Software &
other
2024
Trademarks
Total
Cost
At 1 January
34,254
28,343
2,871
54,246
119,714
Additions
55
1,716
79
1,612
3,462
Additions - internally generated
0
0
0
8,732
8,732
Business combinations
22,321
1,953
5,766
1,049
31,089
Fully amortized assets
(19,426)
(18)
(323)
(2,290)
(22,057)
Exchange rate differences
(503)
220
(237)
(174)
(694)
At 31 December 2024
36,701
32,214
8,156
63,175
140,246
Amortization
At 1 January
25,676
7,780
588
19,829
53,873
Charge for the period
3,387
1,950
252
6,576
12,165
Fully amortized assets
(19,426)
(18)
(323)
(2,290)
(22,057)
Exchange rate differences
(244)
77
6
(219)
(380)
At 31 December 2024
9,393
9,789
523
23,896
43,601
At 31 December 2024
27,308
22,425
7,633
39,279
96,645
None of the Company's intangible assets are with restricted title or pledged as security.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 60
15. Investment in associates
2025
2024
At 1 January
20,364
20,532
Additions
4,117
0
Share in net profit
6,661
3,340
Dividend received
(4,083)
(2,585)
Exchange rate differences
891
(923)
At 31 December
27,950
20,364
None of the individual associate´s financial information are material.
16. Other financial assets
31.12.2025
31.12.2024
Financial asset at amortized cost:
Unlisted securities
1,651
856
Restricted cash
609
534
Financial asset at fair value through Income Statement:
Call option for shares in associates
1,706
1,315
Hedging derivatives:
Cash flow hedge - foreign currency forwards
0
1,475
3,966
4,179
Non-Current
3,966
2,704
Current
0
1,475
3,966
4,179
Hedging derivatives are classified as other financial assets when the book value is positive and as other financial liabilities when
book value is negative.
17. Inventories
31.12.2025
31.12.2024
Raw material
52,460
44,268
Work in progress
30,618
23,167
Finished goods
82,539
75,667
165,617
143,102
Inventories of USD 12.0 million (2024: USD 11.5 million) are expected to be sold or used in production after more than twelve
months.
Inventories recognized as an expense during the period amounted to USD 286.7 million (2024: USD 260.6 million). Thereof USD
5.3 million (2024: USD 4.4 million) was recognized as an expense in respect of write-downs of inventory to net realizable value.
There was no reversal of prior year write downs in the current year. The reserve for obsolete inventories at year end amounted
to USD 6.8 million compared to USD 5.6 million in 2024.
None of the Company's inventories are pledged as security.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 61
18. Accounts receivable
31.12.2025
31.12.2024
Nominal value
149,302
125,949
Allowance for doubtful accounts
(4,521)
(4,034)
144,782
121,915
The average credit period on sale of goods are 47 days (2024: 43 days). An allowance has been made for doubtful accounts. This
allowance has been determined by management with reference to the expected credit loss (ECL). Management considers that
the carrying amount of receivables approximates their fair value.
Movement in the allowance for doubtful accounts
2025
2024
At 1 January
(4,034)
(5,076)
Impairment (losses)/gains recognized on receivables
(2,024)
372
Amounts written off as uncollectable
1,731
494
Exchange rate differences
(194)
176
At 31 December
(4,521)
(4,034)
31.12.2025
Accounts receivable
Gross
carrying
amount at
default
Expected
credit loss
rate
Collective
allowance
(lifetime ECL)
Individual
allowance
Net carrying
amount
Not past due
95,498
0.1%
69
9
95,419
Less than six months past due
43,314
2.8%
1,195
310
41,809
Six to twelve months past due
4,000
12.5%
500
17
3,483
More than twelve months past due
6,490
19.5%
1,266
1,153
4,072
149,302
3,030
1,490
144,782
31.12.2024
Accounts receivable
Gross
carrying
amount at
default
Expected
credit loss
rate
Collective
allowance
(lifetime ECL)
Individual
allowance
Net carrying
amount
Not past due
81,684
0.1%
75
15
81,594
Less than six months past due
35,949
2.0%
722
429
34,798
Six to twelve months past due
2,755
17.1%
472
267
2,016
More than twelve months past due
5,561
27.4%
1,523
531
3,507
125,949
2,792
1,242
121,915
The expected credit loss on accounts receivable is estimated using a provision matrix with reference to past default experience,
general economic conditions and an assessment of both the current as well as expected conditions, including time value of
money where appropriate. Individual allowances and adjustments to the collective bad debt provision are made based on the
individual assessment of customers' situation and probability of incoming payments. Refer to note 40 for further details related
to accounting policies.
The Company writes off accounts receivable when there is information indicating that the debtor is in severe financial difficulty
and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into
bankruptcy proceedings.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 62
19. Other assets
31.12.2025
31.12.2024
Prepaid expenses
19,275
22,630
VAT refundable
8,758
7,361
Other
17,059
14,309
45,092
44,300
The other line primarily includes accrued income, security deposits, various tax refunds and other short -term receivables.
20. Cash and cash equivalents
For the purpose of presentation in the Consolidated Statement of Cash Flow, cash and cash equivalents include bank balances,
cash on hand and cash equivalents. Bank overdrafts are shown within borrowings in current liabilities in the Consolidated
Balance Sheet.
Non-cash investing and financing activities
Non-cash investing and financing activities disclosed in other notes are:
-
Exchange rate differences on borrowings and amortization of borrowing cost – note 26. Borrowings
-
Liabilities acquired in Business Combinations – note 33. Business Combinations
-
Assets acquired in Business Combinations – note 33. Business Combinations
-
Deferred payments and contingent consideration on acquisitions – note 33. Business Combinations
-
Additions to right of use assets and lease liabilities - note 12. Leases
-
Exchange rate adjustment on lease liabilities - note 12. Leases
-
Additions to financial assets and financial liabilities – notes 16. Other financial assets and 30. Other financial liabilities
-
Fair value adjustment on financial assets and financial liabilities - notes 16. Other financial assets and 30. Other financial
liabilities
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 63
21. Issued capital and share premium
Common stock is as follows in thousands of shares in ISK:
Treasury
shares
Issued shares
Total
Balance at 1 January 2024
421,000
(701)
420,299
Issued shares
6,636
6,636
Balance at 31 December 2024
427,636
(701)
426,935
Issued shares
2,805
2,805
Sold treasury shares
15
15
Purchased treasury shares
(1,987)
(1,987)
Balance at 31 December 2025
430,441
(2,673)
427,768
Movement in issued capital is as follows in USD thousands:
Share
Share
capital
premium
Total
Balance at 1 January 2024
4,781
61,479
66,260
Issued shares
48
27,156
27,204
Balance at 31 December 2024
4,829
88,635
93,464
Issued shares
23
14,550
14,573
Sold treasury shares
0
185
185
Purchased treasury shares
(16)
(9,736)
(9,752)
Balance at 31 December 2025
4,836
93,634
98,470
In 2025 the share buyback program was reinitiated. Decisions on share buybacks are made in accordance with the Company‘s
Capital Structure and Capital Allocation Policy, within the authorizations granted by the Annual General Meeting. The share
buyback programs are managed by Nordea, which make its trading decisions independently and without influence by the
Company regarding the timing of the purchases.
exercised during the year.
In 2025 in connection with the investment in a majority shares of Streifeneder ortho.production GmbH, new shares were issued
raising the total share capital in nominal value by 0.7%, from ISK 427.6 million to ISK 430.4 million, resulting in USD 14.6 million
share capital increase. At year end 2025 Embla Medical held 2.7 million treasury shares that equals to 0.6% of issued shares.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 64
22. Other reserves
The following table shows a breakdown of the movement in other reserves in the Consolidated Statement of Changes in Equity.
Statutory
Share
Financial
Currency
reserve
contracts
Hedging
assets
Translation
Total
Balance at 1 January 2024
1,267
5,691
(258)
(755)
(69,990)
(64,045)
Change in cash flow hedges
1,832
1,832
Income tax
(366)
(366)
Fair value changes of financial liabilities
88
88
Income tax
(22)
(22)
Transl. diff. of shares in subsidiaries
(11,175)
(11,175)
Income tax
(1,685)
(1,685)
Total comprehensive income
0
0
1,466
66
(12,860)
(11,328)
Put option for minority share in subsidiary
689
689
Share contracts charge
602
602
Share contracts vested/expired
(1,308)
(1,308)
Balance at 31 December 2024
1,267
4,985
1,208
0
(82,850)
(75,390)
Change in cash flow hedges
(1,826)
(1,826)
Income tax
365
365
Transl. diff. of shares in subsidiaries
22,721
22,721
Income tax
4,632
4,632
Total comprehensive income
0
0
(1,461)
0
27,353
25,892
Share contracts charge
1,970
1,970
Share contracts vested/expired
(2,967)
(2,967)
Balance at 31 December 2025
1,267
3,989
(253)
0
(55,497)
(50,494)
Statutory reserve
The statutory reserve comprises certain portion of the share capital according to Icelandic Company Act.
Share contracts reserve
The share contracts reserve is used to recognize the fair value of options or share units issued to employees but not exercised,
see note 24 for details.
Hedging reserve
The hedging reserve includes the cash flow hedge reserve and the costs of hedging reserve, see note 25 for details. The cash flow
hedge reserve is used to recognize the effective portion of gains or losses on derivatives that are designated and qualify as cash
flow hedges.
Currency translation reserve
The currency translation reserve comprises all currency differences arising from the translation of the financial statements of
subsidiaries having different functional currencies than the Company as well as from the translation of liabilities that hedge net
investment.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 65
23. Retained earnings
Transaction with non -controlling interests
During the year the Company acquired remaining shares in one of its subsidiar y (2024 two). The effect on the equity attributable
to the owners of the Company is as follows:
2025
2024
Carrying amount of non-controlling interest acquired
3,143
292
Consideration paid to non-controlling interest
(5,123)
(9,648)
Contingent consideration
(600)
(786)
Excess of consideration paid recognized in retained earnings
(2,581)
(10,142)
24. Share contracts
In 2024 a new long term incentives program of performance share units ("PSUs") and restricted shares units ("RSUs") was
initiated in accordance with approval at the Company's Annual General Meeting for 2023. This program replaced the previous
share options plan.
Under this program management and key leaders can be rewarded for delivery of long-term strategy by granting PSUs for
President and CEO and the Executive Management or RSUs for the Executive Management direct report at VP level and key
specialists in strategic positions.
According to the program, if performance is on target, PSUs and RSUs will be granted each year based on the current Embla
Medical share price and the current annual fixed salary of the participants. The maximum PSUs granted per year is
approximately 375,000. The number of PSUs granted to the participants will follow the guidelines described in Embla Medical’s
Remuneration Policy and will be reported in Embla Medical’s Remuneration Report. A maximum of 395,000 RSUs will be granted
each year.
PSUs value at granting depends on performance and Embla’s share price. To calculate the PSUs/RSUs value at granting, the
volume-weighted average share price on Nasdaq Copenhagen the first five trading days following the date of publication of
Embla Medical’s Consolidated Financial Statements for the performance period/previous financial year is used. Performance
metrics and targets are set at the beginning of the performance period. Performance metrics shall be closely aligned with
Embla’s long-term strategy and sustainability and shall include a combination of financial, business and non-financial targets. At
granting, the PSUs value is set within a defined range of the President and CEO’s fixed annual salary for the President and CEO,
and within a separate defined range of fixed annual salary for other executives, with the specific amount determined according
to their respective roles and responsibilities. RSU value is determined as a portion of the key employee’s fixed annual salary, set
by the President and CEO based on the employee’s role and responsibilities. The potential value of the PSUs/RSUs at vesting
depends on the share price development during the vesting time. The vesting time of the PSUs/RSUs is three years from
granting. It is a vesting condition that the respective executive/key employee is employed by an Embla Medical entity at vesting,
subject to certain good leaver provisions. At vesting, the PSUs/RSUs are converted into Embla Medical shares on a 1:1 ratio. For
delivery of shares, the Board may either issue new shares (subject to the Annual General Meeting’s approval) or allow Embla
Medical to use treasury shares that have been acquired based on authorization from the Annual General Meeting.
According to prior incentive plan (share options issued before 2024) where managers were granted options to purchase ordinary
shares at an exercise price, determined by the average closing price of shares traded on the OMX Copenhagen stock exchange
over the 20 trading days prior to the issue date. The employee must remain continuously employed with the Company until the
option expiring date, either as an employee or in any other way, deemed satisfactory by the Company.
Each employee share option converts into one ordinary share on exercise. No amounts are paid or payable by the recipient to
the Company on receipt of the option. The options carry neither right to dividends nor voting rights. The Company allows net
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 66
settlement of options in which an equivalent number of shares are delivered to the employee that equals to the profit of the
exercised options. With net settlement, the Company does not deliver in full the number of shares at exercise price. The fair
value of the share options granted are valued using the Black-Scholes pricing model. Variables used in the Black-Scholes
calculation are the exercise price per share, expected life in years, estimated volatility, annual rate of quarterly dividends and
annual discount rate. Neither in 2025 nor in 2024, the expected volatility was not assumed nor the annual discount rate as new
stock options were not granted. Expected life of options are three years and the options expire one year after the vesting date. If
a share option vests during a closed period for insider trading the vesting period is automatically extended until the next open
window for insider trading.
The following share PSU / RSU and share options contracts (hereinafter referred to as: share contracts) are outstanding at
balance sheet date:
Number of
shares
Grant
Exercise
year
Exercise price
(in DKK)
Share price at
grant date (in
DKK)
Weighted
average
remaining
contr. life in
months
Issued to Executive Management:
PSU
Sveinn Sölvason President and CEO
162,764
2024-2025
2027-2028
30.7-33.3
20
Executive management (6 persons)
406,936
2024-2025
2027-2028
30.7-33.3
20
Total
569,700
Share options
Sveinn Sölvason President and CEO
140,000
2022 - 2023
2025 - 2026
29.9-34.2
29.2-34.6
1
Executive management (4 persons)
400,000
2022
2025
28.5-41.7
29.5-44.0
0
Executive management (3 persons)
180,000
2023
2026
27.9-34.2
27.5-34.6
8
Total
720,000
Issued to management team:
RSU
Managers (47 Persons)
667,334
2024-2025
2027-2028
30.7-32.2
21
Total
667,334
Share options
Managers (11 Persons)
410,000
2022
2025
28.5-41.7
29.5-44.0
0
Managers (1 person)
50,000
2023
2026
34.2
34.6
2
Total
460,000
Total issued RSU/ PSU
1,237,034
20
Total issued share options
1,180,000
1
Total
2,417,034
Total weighted average remain. contr. life in months
11
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 67
Movements in share options and RSU / PSU during the period:
2025
2024
Number of
shares
Weighted
average
exercise price
(in DKK)
Number of
shares
Weighted
average
exercise price
(in DKK)
PSU / RSU
Outstanding at 1 January
654,447
0
Granted during period
592,693
699,700
Forfeited during period
(10,106)
(45,253)
Total outstanding at 31 December
1,237,034
654,447
Share options
Outstanding at 1 January
3,294,000
40.0
4,872,800
41.3
Expired during period
(1,824,000)
44.8
(741,200)
44.7
Forfeited during period
(75,000)
33.1
(837,600)
43.3
Exercised during period
(215,000)
31.0
0
0
Total outstanding at 31 December
1,180,000
34.8
3,294,000
40.0
In current year a total number of 215,000 share options were exercised on various dates. The weighted average share price at
the dates of exercise amounted to DKK 35.2 per share.
The estimated remaining cost due to the share contracts and PSU/RSU is USD 4.5 million (2024: USD 2.5 million). An expense of
USD 2.0 million (2024: USD 0.6 million) is recognized in the Consolidated Income Statement for the period. The exercise period
of the share option contracts falls in 2026 and for RSU and PSU ranges from 2027 and 2028.
The range of the share price of exercised and expired options in the current year is DKK 28.5 to DKK 46.8 (2024: DKK 30.3 to DKK
46.3).
Embla’s Medical yearly cost related to the new long-term incentive programs is estimated to be around USD 3.2 million when
fully implemented.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 68
25. Hedging reserve
Embla Medical hedges its ISK and EUR exposure, using a twelve month, quarterly layered hedging strategy. This is done with
forward currency contracts where Embla Medical sells EUR for ISK. At each balance sheet date Embla Medical has outstanding
contracts covering approximately 50% of yearly ISK costs. Due to the layered approach, hedge ratio of closed contracts is
approximately 80% of ISK costs. Embla Medical applies hedge accounting (IFRS 9) to the extent possible.
Movements in the hedging reserve during the period:
2025
2024
At 1 January
1,208
(258)
Change in fair value of hedging instrument recognized in Other Comprehensive Income
(5,234)
308
Reclassified to Income Statement
3,408
1,524
Deferred tax
365
(366)
At 31 December
(253)
1,208
At balance sheet date ten forward contracts were open. The fair value of the contracts results in an liability of USD 0.4 million at
year end 2025 (2024: 1.5 million asset). The effects of the foreign currency-related hedging instruments on the Company’s
financial position and performance are as follows:
31.12.2025
31.12.2024
Carrying amount
352
(1,475)
Notional amount
55,136
36,545
Maturity date
Mar-Dec 26
Mar-Dec 25
Hedge ratio
1:1
1:1
Weighted average hedged rate for outstanding hedging instruments
149.2
153.8
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 69
26. Borrowings
31.12.2025
31.12.2024
Loans in USD
74,925
103,375
Loans In EUR
284,928
253,999
Total
359,853
357,374
Non-Current
292,174
328,754
Current
67,678
28,620
Total
359,853
357,374
Aggregated maturities of borrowings are as follows:
31.12.2025
31.12.2024
In 2026 / 2025
67,678
28,620
In 2027 / 2026
238,626
51,224
In 2028 / 2027
10,651
277,530
In 2029 / 2028
10,641
0
Later
32,257
0
359,853
357,374
The table below shows how cash and non-cash changes affect borrowings within the Company:
2025
2024
At 1 January
357,374
333,335
Cash flows
(32,371)
39,787
Non-cash changes:
Acquisition related
2,506
0
Exchange rate differences
31,790
(16,198)
Amortization of borrowing costs
555
450
At 31 December 2025
359,853
357,374
The weighted average interest on outstanding loans at 31.12.2025 was 2.5% (2024: 3.3%). The following table highlights key
information of the Company´s borrowings:
Lender
Type
Currency
Interest type
Outstanding
Available
Nordic Investment Bank
Term, Bullet
EUR
Fixed
59,175
0
Nordic Investment Bank
Term, Amortizing
EUR
Floating
58,433
0
Nordea, Danske Bank
Revolver
EUR
Floating
157,857
35,272
European Investment Bank
Term, Bullet
USD
Fixed
74,925
0
Danske Bank
Overdraft
Multicurrency
Floating
9,463
78,716
Total
359,853
113,988
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 70
27. Deferred tax assets / liabilities
2025
2024
At 1 January
8,887
13,111
Income tax payable for the period
29,926
29,456
Calculated tax for the period
(24,291)
(21,603)
Business combinations
(2,435)
(9,995)
Recognized in other comprehensive income
3,674
(1,697)
Exchange rate differences
(169)
(385)
At 31 December
15,592
8,887
Deferred tax in the Balance Sheet:
Deferred tax asset
55,380
46,365
Deferred tax liabilities
(39,788)
(37,478)
15,592
8,887
Movement in deferred tax balances:
Recognized
in Income
Statement
Recognized
directly in
OCI
Other
(i)
Deferred tax
assets
Deferred tax
liabilities
1/1/2025
12/31/2025
Goodwill
(18,902)
(3,423)
(8)
(22,333)
4,228
(26,561)
Intangible assets
(16,657)
401
(3,471)
(19,727)
2,964
(22,691)
Property, plant and equipment
(1,870)
(327)
214
(1,983)
2,082
(4,065)
Tax loss carry forward
1,193
143
(43)
1,293
1,293
0
Inventories
19,227
6,382
3
25,612
26,424
(812)
Provisions
4,774
545
46
5,365
5,364
1
Current liabilities
16,745
969
225
17,939
19,363
(1,424)
Receivables
1,969
214
126
2,309
2,337
(28)
Other
2,408
731
3,674
305
7,118
7,197
(79)
Total
8,887
5,635
3,674
(2,603)
15,592
71,252
(55,660)
Deferred tax assets and liabilities offsetting
(15,872)
15,872
Net deferred tax assets (liabilities)
55,380
(39,788)
Recognized
in Income
Statement
Recognized
directly in
OCI
Other
(i)
Deferred tax
assets
Deferred tax
liabilities
1/1/2024
12/31/2024
Goodwill
(15,110)
(3,747)
(45)
(18,902)
4,240
(23,142)
Intangible assets
(8,899)
1,836
(9,594)
(16,657)
2,811
(19,468)
Property, plant and equipment
(1,946)
288
(212)
(1,870)
1,976
(3,846)
Tax loss carry forward
1,265
(7)
(65)
1,193
1,193
0
Inventories
15,972
3,257
(2)
19,227
20,040
(813)
Provisions
4,654
169
(49)
4,774
4,773
1
Current liabilities
11,842
4,981
(78)
16,745
17,890
(1,145)
Receivables
1,167
798
4
1,969
1,989
(20)
Other
4,166
279
(1,697)
(340)
2,408
3,490
(1,082)
Total
13,111
7,853
(1,697)
(10,381)
8,887
58,402
(49,515)
Deferred tax assets and liabilities offsetting
(12,037)
12,037
Net deferred tax assets (liabilities)
46,365
(37,478)
(i) Effects of foreign currency exchange rate differences and acquisitions.
The Company has unused tax losses available for which no deferred tax asset is recognized. At year end 2025 these unused tax
losses amounted to USD 28.4 million (2024: USD 22.8 million). USD 12.9 million of this amount will expire in 5-10 years (2024:
USD 8.4 million). The remaining tax losses carry an indefinite term.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 71
In relation to the elimination of intercompany gain in inventories, the Company has recognized a deferred tax benefit of USD 6.2
million (2024: USD 0.9 million) in the Consolidated Income Statement.
Embla Medical, as part of WDI group for Pillar Two reporting, has applied the exception to recognize deferred tax on
OECD’s/EU’s Pillar Two Model Rules and local implementation hereof.
28. Provisions
Warranty
Restructuring
Other
2025
provisions
provisions
provisions
Total
At 1 January
12,423
962
7,166
20,551
Additional provision recognized
11,722
700
3,645
16,067
Utilization of provision
(10,787)
(224)
(1,171)
(12,182)
Exchange rate differences
225
3
374
602
At 31 December 2025
13,583
1,441
10,014
25,038
Non-current
6,737
0
1,986
8,723
Current
6,846
1,441
8,028
16,315
At 31 December 2025
13,583
1,441
10,014
25,038
Warranty
Restructuring
Other
2024
provisions
provisions
provisions
Total
At 1 January
10,789
2,777
4,422
17,988
Additional provision recognized
10,012
2,452
4,176
16,640
Utilization of provision
(8,225)
(4,267)
(1,077)
(13,569)
Exchange rate differences
(152)
0
(356)
(508)
At 31 December 2024
12,423
962
7,166
20,551
Non-current
6,290
0
1,647
7,937
Current
6,133
962
5,519
12,615
At 31 December 2024
12,423
962
7,166
20,551
Warranty provisions are expected to be utilized over the next 6 years in line with warranty terms. Restructuring provisions are
expected to be utilized within the next 12 months as projects have been initialized but not all costs have materialized. Other
provisions are related to various obligations of which USD 8.0 million are expected to be utilized within the next 12 months, the
remaining amount in other provisions relate to employee long term services.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 72
29. Deferred income
2025
2024
At 1 January
11,311
10,119
Deferred income
5,303
4,602
Released from deferred income
(3,110)
(2,962)
Exchange rate differences
851
(449)
At 31 December
14,355
11,311
Non-current
11,346
8,589
Current
3,009
2,722
At 31 December
14,355
11,311
Deferred income relates to the sale of additional warranty for prosthetic products and service checks included in standard
warranty. Income from additional warranty is deferred when sold and released on a straight line basis within the warranty
period. Income from service checks is deferred when sold and released when the service has been rendered. Additional
warranties range from 2-6 years. The current deferred income is presented as part of other liabilities in the Consolidated Balance
Sheet as indicated in note 32.
30. Other financial liabilities
31.12.2025
31.12.2024
Financial liabilities at amortized cost:
Deferred payments relating to business combinations
27,612
27,351
Other financial liabilities at amortized cost
212
381
Financial liabilities at fair value through Income Statement:
Contingent considerations relating to business combinations
25,380
29,157
Put options for shares in associates
1,706
1,315
Hedging derivatives:
Cash flow hedge - foreign currency forwards
352
0
55,261
58,204
Non-current
19,588
47,946
Current
35,673
10,258
55,261
58,204
Hedging derivatives are classified as other financial assets when the book value is positive and as other financial liabilities when
book value is negative.
Contingent consideration relating to business combination is mainly resulting from acquisition of Streifeneder and Fior & Gentz.
The contingent consideration payments for Streifeneder are dependent on savings and fair value is determined based on best
information available at the date of acquisition. The full value of the contingent consideration relating to Streifeneder acquisition
was accounted for at acquisition date and is payable in 2026. The payments related to Fior & Gentz acquisition can range up to
17 million USD based on management best estimate. The first payment was made this year. The remaining amount is payable in
the years 2026 and 2027. The estimated payments are based on forecasted sales growth within the Company’s sales channels.
The earnout related to Naked Prosthetics acquisition was fully paid this year. The amount recognized at acquisition date for
current year’s acquisition can be found in note 33. Business combinations.
Put options for purchase of remaining shares in an associates are calculated as a multiple of EBITDA of the associates in the
previous financial year in the proportion which the put option shares bear to the total shares of the entities. The option s are
exercisable in 2027 to 2033.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 73
31. Related party transactions
Balances and transactions within the Company (Embla Medical hf. and its subsidiaries) have been eliminated in consolidation
and are not disclosed in this note.
The Company engages in transactions with some of its associated companies and other related parties. The transactions consist
of sale and purchases where commercial terms and market prices apply.
Transactions and balances with related parties:
Associates
2025
2024
Sales of products
5,929
2,825
Purchases
5,313
4,695
Receivables from associates at 31 December
1,347
647
Payables to associates at 31 December
378
469
Other related parties
2025
2024
Sales of products
1,143
890
Purchases
7,135
6,850
Receivables from other related at 31 December
533
440
Payables to other related at 31 December
111
612
For disclosures relating to key management positions, refer to note 6.
32. Other liabilities
31.12.2025
31.12.2024
Accrued expenses
25,105
23,033
Sales tax and VAT
6,861
4,979
Prepayments on orders
4,575
2,194
Sales return accrual
4,208
3,930
Deferred income
3,009
2,722
Other
4,231
2,503
47,989
39,361
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 74
33. Business combinations
On 17 July 2025 Embla Medical announced the acquisition of the majority share (51% of the shares) in the privately owned
Streifeneder ortho.production GmbH (“Streifeneder ”). The investment was completed on 29 August 2025 following regulatory
approvals, hence four month s of sales is included in the Consolidated Financial Statement s for the year 2025 .
Streifeneder is an international developer and supplier of orthopaedic mobility solutions, employing around 100 people. In
addition to its offerings of prosthetic and orthotic components, Streifeneder also supplies orthopaedic materials and equipment
to the O&P industry. In 2024, Streifeneder realized sales of EUR 25 million (approximately USD 29m) with ~70% of sales related
to prosthetics and orthopaedic materials. The majority of sales are generated in Germany, while also selling into other key
European markets and distributing into the Americas and APAC regions.
As part of the consideration paid for Streifeneder, Embla Medical issued 2,805,135 new shares. The share price of each share
was DKK 33.26, and the total value of the share price capital increase is thus DKK 93 million (EUR 12.5 million / USD 14.6 million).
A few other small acquisitions were made during the year.
Current year acquisitions were made to strengthen the Company´s product and service portfolios and our patient care business
segment. The accounting for the acquisition was provisionally determined at the end of the reporting period. The goodwill is not
deductible for income tax purpose.
In the Consolidated Income Statement s for the year 2025, sales amounting to USD 11.8
million and net loss of USD 0.2 million
were related to current year acquisitions.
The current year acquisitions took place in the middle of the year. If the acquisitions had occured on 1 January 2025,
consolidated pro-forma results for the year ended 31 December 2025 would have been revenue of USD 29.4 million and net loss
of USD 1.2 million.
Assets acquired and liabilities consumed at the date of acquisition:
Total
Property, plant and equipment
3,359
Other intangible assets
8,380
Other non-current assets
71
Inventories
6,029
Accounts and other receivables
392
Bank balances and cash equivalents
144
Borrowings
(2,506)
Deferred tax liabilities
(2,435)
Other liabilities
(3,978)
Non controlling interest
(4,611)
Net identifiable assets acquired
4,847
Goodwill
18,698
Net assets acquired
23,545
Consideration:
Net assets acquired
23,545
Contingent consideration and deferred payments on current year´s acquisition
(4,740)
Issued new shares
(14,573)
Cash paid
4,232
Cash from acquired company
(144)
Consideration shown in Cash Flow
4,087
The split of property, plant and equipment and other intangible assets can be found in notes 11 and 14.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 75
34. Financial instruments
Financial assets and liabilities
The Company holds the following financial instruments:
Financial assets
Notes
31.12.2025
31.12.2024
Financial assets at amortized cost:
Accounts receivable
18
144,782
121,915
Cash and cash equivalents
20
102,507
86,163
Financial assets at amortized cost
16
2,260
1,390
Financial assets at fair value through Income Statement
16
1,706
1,315
Hedging derivatives - foreign currency forwards
16
0
1,475
Total
251,255
212,257
Financial liabilities
Notes
31.12.2025
31.12.2024
Financial liabilities at amortized cost:
Borrowings
26
359,853
357,374
Lease liabilities
12
181,716
142,415
Accounts payable
32,825
27,275
Other financial liabilities at amortized cost
30
27,824
27,732
Financial liabilities at fair value through Income Statement
30
27,086
30,472
Hedging derivatives - foreign currency forwards
30
352
0
Total
629,656
585,267
Fair value of financial instruments
In the above overview of financial instruments, financial assets and financial liabilities that are measured at fair value in the
Consolidated Financial Statement s can be identified.
Except as detailed in the following table, management considers that the carrying amount of financial assets and financial
liabilities recognized in the Consolidated Financial Statements to approximate their fair value.
31.12.2025
31.12.2024
Carrying
amount
Fair value
Carrying
amount
Fair value
Financial liabilities:
Borrowings
359,853
358,553
357,374
358,808
The difference between the fair value and the carrying amount relates to distribution of borrowing cost and the difference
between current market floating rates and the Company‘s rate on fixed rate loans. The fair value is determined as a level 3 in the
fair value hierarchy.
Fair value hierarchy
The following table explains the judgements and estimates made in determining the fair values of the financial instruments
recognized and measured at fair value in the Consolidated Financial Statements. In order to convey the reliability of the inputs
used in determining the fair value, the Company has classified its financial instruments into the three levels prescribed under
IFRS accounting standards as adopted by the European Union.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 76
Financial assets
Notes
Level 1
Level 2
Level 3
Total
Financial assets at fair value through income statement:
Call option for shares in associates
16
0
1,706
1,706
Total financial assets
0
0
1,706
1,706
Financial liabilities
Financial liabilities at fair value through income statement:
Contingent consideration related to acquisition
30
25,380
25,380
Put option for shares in associates
30
1,706
1,706
Hedging derivatives - foreign currency forwards
30
352
352
Total financial liabilities
0
352
27,086
27,437
There were no transfers between levels 1 and 2 for recurring fair value measurements during the year.
Level 1: The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the
reporting period. The quoted market price used for financial assets held by the Company is the current bid price.
Level 2: The fair value of financial instruments that are not traded in active markets is determined using valuation techniques
that maximise the use of observable market data and rely as little as possible on entity -specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
Capital risk management
The Company manages capital to ensure that the Company will be able to continue as a going concern while maximizing the
return to stakeholders through the optimization of the debt and equity balance. The Company's overall strategy remains
unchanged since 2024.
The capital structure of the Company consists of debt, which includes the borrowings disclosed in note 26, cash and cash
equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings as
disclosed in the Consolidated Statement of Changes in Equity.
Net interest bearing debt (NIBD) to EBITDA before special items ratio
The Company's management continuously reviews the capital structure. As a part of this review the management considers,
amongst other the cost of capital and net debt to EBITDA before special items.
The NIBD to EBITDA before special items at period end was as follows:
31.12.2025
31.12.2024
Net interest bearing debt
439,062
413,626
EBITDA before special items
185,922
173,264
Net interest bearing debt/EBITDA before special items
2.4
2.4
Loan covenants
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 77
Under the terms of the Company borrowings, which has a carrying amount of USD 359.9 million (2024: USD 357.4 million) the
Company is required to comply with the following financial covenants at the end of each annual and interim reporting period:
●
Net debt (including deferred payments relating to business combinations) to EBITDA before special items should be
below 4.0.
The Company is additionally required to comply with the following financial covenants at the end of each annual reporting
period:
●
The aggregate EBITDA of the Guarantors for the relevant reporting period represents not less than 50% of the
Consolidated EBITDA of the Company.
●
The aggregate gross assets of the Guarantors represents not less than 50% of the aggregate gross assets of the
Company.
The Company has complied with these covenants throughout the reporting period. There are no indications that Embla Medical
will have difficulties complying with the covenants in 2026.
Financial risk management objectives
The Company's corporate finance function provides services to the business, co-ordinates access to domestic and international
financial markets, monitors and manages the financial risks relating to the operations of the Company . This is performed through
internal risk reports which analyze exposures by degree and magnitude of risks. These risks include liquidity risk, interest rate
risk, foreign currency exchange risk and counterparty credit risk.
The general policy is to apply natural hedging to the extent possible but Embla Medical also uses active hedging of currency
exposure that is not covered by the natural hedge in sales and costs by currency. The use of financial derivatives is governed by
the Company's policies approved by the Board of Directors, which provide written principles on foreign exchange risk, interest
rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments and the investment of excess
liquidity. The Company does not enter into or trade financial instruments, including derivative financial instruments, for
speculative purposes.
Currency risk management
The Company operates in a global market, hence exposure to exchange rate fluctuations arises. Exchange rate exposures are
managed within approved policy parameters. The general policy is to apply natural exchange rate hedging to the extent possible.
Embla Medical hedges its ISK and EUR exposure, using a twelve month, quarterly layered hedging strategy. This is done with
forward currency contracts where Embla Medical sells EUR for ISK. At each balance sheet date Embla Medical has outstanding
contracts covering approximately 50% of yearly ISK costs. Due to the layered approach, hedge ratio of closed contracts is
approximately 80% of ISK costs. At balance sheet date ten forward contracts were open. The fair value of the contracts results in
a liability of USD 0.4 million at year end 2025 (2024: USD 1.5 million asset). Embla Medical applies hedge accounting (IFRS 9) to
the extent possible.
The carrying amounts of the Company's monetary assets and monetary liabilities denominated in
currencies at the reporting date are as follows:
Liabilities
Assets
31.12.2025
31.12.2024
31.12.2025
31.12.2024
EUR
374,280
308,727
72,532
41,818
USD
177,931
198,980
110,533
110,606
ISK
62,588
56,210
18,783
15,723
SEK
28,218
24,562
14,522
9,317
GBP
7,672
6,486
6,832
4,888
Other
52,567
38,478
73,145
72,730
703,255
633,444
296,346
255,082
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 78
Foreign currency sensitivity analysis
The Company is mainly exposed to the fluctuation of Icelandic krona (ISK) and Euro (EUR).
The following table details the Company's sensitivity to a 10% decrease in USD against the relevant foreign currencies with all
other variables fixed. The sensitivity analysis includes all foreign currency denominated Income Statment items and adjusts their
translation at the period end for a 10% change in foreign currency rates. The table below indicates the effect on net profit and
equity where USD weakens 10% against the relevant currency. For a 10% strengthening of USD against the relevant currency,
there would be an equal and opposite impact on the profit or loss and equity.
EUR
(i)
ISK
(ii)
2025
2024
2025
2024
Net profit / Equity
3,157
5,656
(4,780)
(5,726)
(i) 26% (2024: 24%) of the Company's COGS and OPEX is in EUR against 31% (2024: 28%) of its sales causing an increase in profit if the USD
decreases against the EUR.
(ii) 11% (2024: 11%) of the Company's COGS and OPEX is in ISK against 0.5% (2024: 0.4%) of its sales causing a decrease in profits if the USD
decreases against the ISK.
Hedge accounting is not considered in the above calculation.
Interest rate risk management
The Company is exposed to interest rate risks as funds are borrowed at floating interest rates. Interest rate risk is managed by
the Company´s treasury function and fixed rate loans or interest rate swap contracts may be used to maintain an appropriate
mix between fixed and floating rate borrowings. At the end of 2025, 63% of total borrowings were on floating interest rates.
Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite and to ensure optimal
hedging strategies are applied. The Company did not have any interest rate swap agreements outstanding at balance sheet date.
The Company's exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk
management section of this note.
Interest rate sensitivity analysis
The sensitivity analysis has been determined based on the exposure to interest rates on borrowings with floating terms. The
analyses is prepared assuming the amount of liability outstanding at the reporting date was outstanding for the whole year. If
interest rates had been 1 percent higher/lower and all other variables were held constant, the Company´s profit for the year
ended 31 December 2025 would have decreased/increased by USD 2.3 million (2024: USD 2.3 million).
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 79
Liquidity risk management
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. At period end the
Company had a total liquidity of USD 216.5 million, consisting of undrawn revolving credit facilities of USD 114.0 million (2024:
USD 49.6 million) and cash and cash equivalents of USD 102.5 million (2024: USD 86.2 million).
The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities. The tables
have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
Company can be required to pay. The table includes both interest and principal cash flows.
Weighted
average
effective
interest
Less than 1
year
1-5 years
5+ years
Total
31.12.2025
Borrowings
3.2%
79,794
296,726
11,012
387,532
Lease liabilities
4.5%
35,227
114,325
71,615
221,166
Non-interest bearing liabilities
-
175,615
17,001
0
192,616
290,636
428,051
82,627
801,314
31.12.2024
Borrowings
4.5%
45,178
356,973
0
402,151
Lease liabilities
4.0%
29,307
86,347
52,975
168,629
Non-interest bearing liabilities
-
122,887
47,972
0
170,859
197,372
491,292
52,975
741,639
Credit risk management
The Company manages the financial counterparty credit risk centrally. Primary Banks should have a long-term credit rating of at
least A-/A3 and a short-term credit rating of at least A-2/P-2. Other financial counterparties should have investment grade credit
ratings.
Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, as well as credit exposures to
customers, including outstanding receivables.
Accounts receivable consist of a large number of customers spread across geographical areas. Ongoing credit evaluation is
performed on the financial condition of accounts receivable. Refer to note 18 for assessment of expected credit loss (ECL) and
accounting policy on impairment of financial assets.
The Company is exposed to normal business risk in collecting accounts receivable. Adequate allowance is made for bad debt in
line with the Company accounting policy.
Book value of financial assets measured at amortized cost represents the maximum exposure to credit risk.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 80
35. The Consolidation
Information about the main composition of Embla Medical hf. and its subsidiaries at the end of the reporting period is as follows:
Place of registration
Name of company
and operation
Ownership %
Principal activity
Össur Americas Inc
USA
100%
Sales, R&D, distribution and manufacturer
Össur Australia PTY Ltd
Australia
100%
Sales, distribution and services
Össur Canada Inc
Canada
100%
Sales, distribution and services
Össur Deutschland GmbH
Germany
100%
Sales, distribution and services
Össur Europe BV
Netherlands
100%
Sales, distribution and services
Össur France Sarl
France
100%
Sales, distribution and services
Össur Iceland ehf
Iceland
100%
R&D and manufacturer
Össur UK Ltd
UK
100%
Sales, distribution and services
ForMotion Australia PTY Ltd
Australia
100%
Patient Care
College Park Industries, Inc
USA
100%
Sales, R&D, distribution and manufacturer
Fior & Gentz GmbH
Germany
100%
Sales, distribution and manufacturer
ForMotion Sweden AB
Sweden
100%
Patient Care
ForMotion Norway AS
Norway
100%
Patient Care
Touch Bionics Ltd
UK
100%
Manufacturer and R&D
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 81
36. Other information
The Company is required to file the primary statements of the Consolidated Financial Statements in the new European Single
Electronic Format (ESEF) and therefore those statements are prepared in the XHTML format that can be displayed in a standard
browser. The primary statements in the Consolidated Financial Statements are tagged using inline eXtensible Business Reporting
Language (iXBRL). The iXBRL tags comply with the ESEF taxonomy, which is included in the ESEF Regulation and developed based
on the IFRS taxonomy published by the IFRS Foundation. Where a primary statements line item is not defined in the ESEF
taxonomy, an extension to the taxonomy has been created. Extensions are anchored to elements in the ESEF taxonomy, except
for extensions which are subtotals. The Consolidated Financial Statements submitted to the Icelandic Financial Supervisory
Authority consists of the XHTML document together with certain technical files, all included in a file named “EmblaMedical-
2025-12-31.zip”.
37. Insurance
31.12.2025
31.12.2024
Insurance
Book
Insurance
Book
value
value
value
value
Fixed assets and inventories
261,754
252,613
239,336
220,478
The book value of fixed assets and inventories is adjusted for inventory reserve. The Company has purchased a Property Damage
& Business Interruption insurance intended to compensate for damages on owned property and temporary loss of income due
to such loss. Additionally, the Company has numerous insurances in place that are necessary to insure against the risks to its
operations, including but not limited to general and product liability, professional liability, product recall insurance, directors’
and officers’ liability and certain types of frauds towards the Company.
38. Contingent liabilities
Embla Medical has committed to a three-year program designed to deliver high-quality prosthetic care and rehabilitation to up
to 1,000 Ukrainian amputees. With a total estimated value of USD 11 million over three years, the new initiative will be co-
financed by the Government of Iceland (USD 3.9 million) and Embla Medical (USD 7.7 million). As of year-end, Embla Medical’s
remaining financial commitment totals USD 7.0 million, which will be recognized as expense in proportion to the number of
amputees served over the coming three-year period.
The Company is engaged in certain litigation proceedings and various ongoing audits and investigations. Management, on an
ongoing basis, assesses the possible financial impact of current and pending litigations. Relevant information is disclosed when
management is able to assess whether a litigation could potentially have a material financial impact on the Company. In the
opinion of management there are currently no litigations expected to have a material effect on the Company's financial position,
operating profit or cash flow.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 82
39. Adoption of new and revised standards
New and amended IFRS that are effective for the current year
The following amendment to IFRS became mandatorily effective in the current year. The application of the below amendment
has no effect on the Consolidated Financial Statements:
Amendments to IAS 21: Lack of Exchangeability.
New and revised IFRS in issue but not yet effective
At the date of authorization of these Consolidated Financial Statements, the Company has not applied new and revised IFRS that
have been issued but are not yet effective.
Management of the Company does not expect that the adoption of the standards will have a material impact on the Financial
Statements of the Company in future periods.
Management has performed an initial assessment of the impact of IFRS 18 on the Consolidated Financial Statements. Since
IFRS 18 does not change recognition or measurement requirements, but focuses on presentation and disclosure, the
implementation is not expected to have a significant impact on the Company’s overall reported financial position or
performance. Rather, the impact will primarily be related to the classification and presentation changes within the statement of
profit or loss, enhanced disaggregation in the statement of financial position and notes, as well as the introduction
of management-defined performance measures. Based on the analysis performed, the Company does not anticipate any
material adjustments to the amounts presented in the Consolidated Financial Statements that would be required by IFRS 18.
Work is ongoing to update internal reporting structures to comply with the new presentation and disclosure requirements by
the effective date. IFRS 18 becomes effective for annual reporting periods beginning on or after 1 January 2027.
Standards on sustainability, IFRS S1 and IFRS S2 are not impacting EU companies as separate legislation applies to EU companies
(ESRS). The European Sustainability Reporting Standards (ESRS) will likely become effective in 2026 for the Company depending
on when approved by Icelandic authorities.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 83
40. Summary of material accounting policies
Statement of compliance
The Consolidated Financial Statements have been prepared in accordance with IFRS accounting standards as adopted by the
European Union and additional requirements in the Icelandic Annual Accounts Act no. 3/2006.
Basis of preparation
The Consolidated Financial Statements have been prepared under the historical cost basis except for certain financial
instruments that are measured at fair values. Historical cost is generally based on the fair value of the consideration given in
exchange for assets. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company considers the
characteristics of the asset or liability as market participants would take those characteristics into account when pricing the asset
or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these Consolidated Financial
Statements is determined on such a basis, except for share-based payment transactions that are within the scope of IFRS 2 and
measurements that have some similarities to fair value but are not fair value, such as net realizable value of inventories in IAS 2
or value of assets in use in IAS 36.
Basis of consolidation
The Consolidated Financial Statements incorporate the financial statements of the Company and entities controlled by the
Company and its subsidiaries. Control is achieved when the Company:
-
has power over the investee ;
-
is exposed, or has rights, to variable returns from its involvement with the investee ; and
-
can use its power to affect its returns.
The Company reassesses whether it controls an investee if facts and circumstances indicate that there are changes to one or
more of the three elements of control listed above.
When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting
rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company
considers all relevant facts and circumstances in assessing whether the Company's voting rights in an investee are sufficient to
give it power, including:
-
the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote
holders;
-
potential voting rights held by the Company, other vote holders or other parties;
-
rights arising from other contractual arrangements; and
-
any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to
direct the relevant activities at the time that decisions need to be made, including voting patterns at previous
shareholders' meetings.
Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from
the date that control ceases. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are
included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains
control until the date when the Company ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-
controlling interests. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies in line with the Company's accounting policies. All intercompany assets and liabilities, equity, income, expenses and cash
flows relating to transactions between members of the Company are eliminated in full on consolidation.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 84
Put options over non-controlling interest are recognized as financial liabilities at the present value of the estimated exercise
price. The initial carrying amount is charged against equity attributable to owners of the parent, and subsequent remeasurement
of the liability are recognized accordingly. The Company treats transactions with non-controlling interests that do not result in a
loss of control as transactions with equity owners of the Company. A change in ownership interest results in an adjustment
between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary.
Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is
recognized directly in equity attributable to owners of the Company.
Business combinations
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business
combinations is measured at fair value, which is calculated as the sum of the acquisition -date fair values of the assets transferred
by the Company, liabilities incurred by the Company to the former owners of the acquiree and the equity interests issued by the
Company in exchange for control of the acquiree. Acquisition -related costs are recognized in profit or loss as incurred.
The acquiree's identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are
recognized at their fair value at the acquisition date, except that:
-
deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognized and
measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively;
-
liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment
arrangements of the Company entered into to replace share-based payment arrangements of the acquiree are
measured in accordance with IFRS 2 Share -based Payment at the acquisition date; and
-
assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale
and Discontinued Operations are measured in accordance with that standard.
Goodwill arising on acquisition is recognized as an asset and initially measured at cost, being the excess of the purchase price of
the business combinations over the Company's interest in the net fair value of the identifiable assets, liabilities, contingent
liabilities, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity
interest in the acquiree. If, after reassessment, the Company's interest in the net fair value of the acquiree's identifiable assets,
liabilities and contingent liabilities exceeds the cost of the business combinations, the excess is recognized immediately in profit
or loss. Non-controlling interests that present ownership interests and entitle their holders to a proportionate share of the
entity's net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests'
proportionate share of the recognized amounts of the acquiree's identifiable net assets. The choice of measurement basis is
made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when
applicable, on the basis specified in another IFRS.
When the consideration transferred by the Company in a business combinations includes assets or liabilities resulting from a
contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included
as part of the consideration transferred in a business combinations. Changes in the fair value of the contingent consideration
that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill.
Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement
period’ about facts and circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement
period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as
equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity.
Contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates in accordance
with IFRS 9 with the corresponding gain or loss being recognized in profit or loss.
If the initial accounting for a business combinations is incomplete by the end of the reporting period in which the combination
occurs, the Company reports provisional amounts for the items for which the accounting is incomplete. Those provisional
amounts are adjusted during the measurement period, or additional assets or liabilities are recognized, to reflect new
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 85
information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the
amounts recognized at that date.
When a business combinations is achieved in stages, the Company's previously held equity interest in the acquiree is
remeasured to fair value at the acquisition date (i.e., the date when the Company obtains control) and the resulting gain or loss,
if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have
previously been recognized in other comprehensive income are reclassified to profit or loss where such treatment would be
appropriate if that interest were disposed of.
The measurement period is the period from the date of acquisition to the date the Company obtains complete information
about facts and circumstances that existed as of the acquisition date and is subject to a maximum of one year.
Investments in associates
An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the
financial and operating policy decisions of the investee but is not in control or joint control over those policies.
The profit and losses, assets and liabilities of associates are incorporated in the Consolidated Financial Statements using the
equity method of accounting. Under the equity method, investments in associates are initially recognized in the balance sheet
and adjusted for post-acquisition changes in the Company's share of the net assets of the associate, less any impairment in the
value of individual investments. Dividends received or receivable from associates are recognized as a reduction in the carrying
amount of the investment. Where the Company´s share of losses in associates equals or exceeds its interest in the associate, the
Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf
of the associate.
The requirements of IAS 36 Impairment of Assets are applied to determine whether it is necessary to recognize any impairment
loss with respect to the Company's investment in an associate. When necessary, the entire carrying amount of the investment
(including goodwill) is tested for impairment in accordance with the standard as a single asset by comparing its recoverable
amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognized
forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with IAS
36 to the extent that the recoverable amount of the investment subsequently increases.
Upon loss of significant influence over the associate, the Company measures and recognizes any retained investment at its fair
value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the
retained investment and proceeds from disposal is recognized in profit or loss.
Goodwill
Goodwill is initially recognized as an asset at the excess of the purchase price of the business combinations over the Company's
interest in the net fair value of the identifiable assets, liabilities, contingent liabilities, the amount of any non-controlling
interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree.
Goodwill is not amortized but recognized at cost less accumulated impairment losses. For impairment testing, goodwill is
allocated to each of the Company's cash-generating units (CGU) expected to benefit from the synergies of the combination.
CGU’s to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication
that the unit may be impaired. When performing the impairment test, the recoverable amount of the CGU is determined. The
value in use is calculated as the present value of expected future cash flows from the CGU. If the recoverable amount of the CGU
is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to
the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
Impairment loss for goodwill is recognized directly in profit or loss in the Consolidated Income Statement. The carrying amount
of goodwill is tested for impairment together with the other non-current assets in the CGU to which goodwill is allocated to.
Impairment of goodwill is not reversed in a subsequent period.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 86
Consistent with the Company’s management and reporting structure, the lowest level of CGU’s is the individual geographical
segment, as cash inflows are generated largely independent of cash inflow in other geographical segments within the Company.
Accordingly, impairment tests are carried out per geographical segment, and goodwill and other intangibles are allocated to
these CGU’s.
On disposal of the relevant CGU, the attributable amount of goodwill is included in the determination of the profit or loss on
disposal.
The Company's policy for goodwill arising on the acquisition of an associate is described in the accounting policy for Investments
in associates above.
Revenue recognition
Revenue is measured at the transaction price of the consideration received or receivable. Revenue is reduced for estimated
customer returns, rebates and other similar allowances.
Sale of goods and services
The Company sells bracing & support products, prosthetics & neuro orthotics products, and related services both as wholesaler
and directly to customers through its own distribution channels.
Revenue for the sale of products including standard warranty is recognized when control of the goods has transferred. Control is
considered transferred when the goods have been shipped or directly delivered to retail customer. Following shipment, it is
considered that our customers have full discretion over the manner of distribution and price to sell the goods. They hold the
primary responsibility when selling the goods, and bear the risks of obsolescence and loss in relation to the goods. A receivable is
recognized by the Company when the goods are shipped to the customer as this represents the point in time at which the right
to consideration becomes unconditional, as only the passage of time is required before payment is due. General payment terms
in the Company´s main markets is 30 days.
Sales related standard warranties serve as an assurance that the products sold comply with agreed-upon specifications, those
warranties are accounted for in accordance with IAS 37 Provisions. For some prosthetics products, a service check is included in
the standard warranty and is treated as a distinct service and is accounted for as a separate performance obligation. The
customer has an option to purchase an additional warranty, which is treated as a distinct service as the Company promises to
provide the service to the customer in addition to the product and the standard warranty. That warranty is accounted for as a
separate performance obligation.
Revenues from the sale of additional warranties are deferred when sold and released on a straight-line basis within the warranty
period. Revenues from service checks included in the standard warranty are deferred when sold and released when the service
has been rendered or the service obligation has ended. Deferred revenues are shown separately within liabilities in the balance
sheet.
Under the Company’s standard contract terms, customers have a right of return within 30-90 days. At the point of sale, a refund
liability and a corresponding adjustment to revenue is recognized for those products expected to be returned. The Company
uses its accumulated historical experience to estimate the number of returns on a portfolio level using the expected value
method. It is considered highly unlikely that a significant reversal in the cumulative revenue recognized will occur given the
consistent level of returns over previous years.
Interest revenue and dividend
Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and
the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 87
through the expected life of the financial asset to that asset's net carrying amount on initial recognition. Dividend income from
investments is recognized when the shareholder's right to receive payment has been established.
Leases
The Company leases office buildings, manufacturing and warehouse facilities and vehicles. Rental contracts are typically made
for fixed periods but may have extension options, exercisable by the Company. In determining the lease term, management
considers all facts and circumstances that create an economic incentive to exercise an extension option. Extension options are
only included in the lease term if the lease is reasonably certain to be extended. Lease terms are negotiated on an individual
basis and contain a wide range of different terms and conditions.
The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognizes a right of
use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term
leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company
recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease, unless another
systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental
borrowing rate, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of
similar value to the right of use asset in a similar economic environment, with similar terms, security and conditions.
To determine the incremental borrowing rate, the Company uses a build-up approach that begins with a risk-free interest rate.
The rate is then adjusted for credit risk for leases held by the Company and further modified based on specific lease factors such
as term, country and currency.
The lease payments incorporated in the measurement of the lease liability includes fixed payments less any incentives, variable
lease payments that depend on an index or rate, expected residual guarantees , and the exercise price of purchase options if the
Company expects to exercise the option.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the
effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Company remeasures
the lease liability if the lease term has changed, when lease payments changes in an index or rate or when a lease contract is
modified, and the modification is not accounted for as a separate lease.
Right of use asset is initially measured at the amount equal to the initial measurement of lease liability. Right of use assets are
depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the
underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the
related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the
commencement date of the lease.
Variable rents that depend on usage are not included in the measurement of the lease liability and the right of use asset. The
related payments are recognized as an expense in the period in which the event or condition that triggers those payments
occurs.
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and
associated non-lease components as a single arrangement. The Company has used this practical expedient.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 88
Foreign currencies
Functional and presentation currency
Items included in the financial statements of each of the group’s entities are measured using the currency of the primary
economic environment in which the entity operates, the functional currency. The Consolidated Financial Statements are
presented in USD, which is the Company´s reporting currency and the functional currency of Embla Medical hf.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of
monetary assets and liabilities denominated in foreign currencies at 31 December 2025 exchange rates, are generally recognized
in income statement.
Foreign subsidiaries
The income statement and balance sheet of foreign subsidiaries that have a functional currency different from the Company‘s
presentation currency are translated into the presentation currency as follows:
●
assets and liabilities are translated at the closing rate at balance sheet date,
●
income and expenses for income statement and statement of comprehensive income are translated at average
exchange rates, and
●
all resulting exchange differences are recognized in other comprehensive income.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings
and other financial instruments designated as hedges of such investments, are recognized in other comprehensive income.
When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange
differences are reclassified to profit or loss, as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the
foreign operation and translated at the closing rate as per 31 December 2025.
Share capital
The share capital of Embla Medical at balance sheet date is ISK 430,441,257 nominal value, divided into the same number of
shares. There is only one class of shares, and all shares carry one vote, besides treasury shares that do not carry voting rights.
Share premium
The share premium reserve is comprised of payments
in excess of nominal value of ISK 1 per share that
shareholders have paid
for shares sold by the Company.
Share-based payments
Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the
equity instruments at the grant date. Details regarding the determination of the fair value of equity-settled share-based
transactions are set out in note 24.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over
the vesting period, based on the Company's estimate of equity instruments that will eventually vest, with a corresponding
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 89
increase in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments
expected to vest. The impact of the revision of the original estimates, if any, is recognized in profit or loss such that the
cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits
reserve.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as reported in the
Consolidated Income Statement because it excludes items of income or expense that are taxable or deductible in other periods
and it further excludes items that are never taxable or deductible. The Company's current tax is calculated using tax rates that
have been enacted or substantively enacted by the end of the reporting period.
Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Consolidated
Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are
generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible
temporary differences to the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference
arises from goodwill or from the initial recognition (other than in a business combinations) of other assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except
where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference
will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with
such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits
against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is
settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance
sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current
tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its
current tax assets and liabilities on a net basis.
In the preparation of the Consolidated Financial Statements, accumulated gains in inventories from intercompany transactions
are eliminated. This influences the income tax expenses of the consolidated companies, and an adjustment is included in the
deferred tax asset. Income tax expense is calculated in accordance with tax rates in the countries where the inventories are
purchased.
Embla Medical, as a part of William Demant Invest A/S group for Pillar Two reporting, has applied the temporary exception,
introduced in May 2023, from the accounting requirements for deferred taxes in IAS 12, so that the group neither recognizes nor
discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 90
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 91
Current and deferred tax for the year
Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in Other
Comprehensive Income or directly in equity, in which case, the current and deferred tax are also recognized in Other
Comprehensive Income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for
a business combinations, the tax effect is included in the accounting for the business combinations.
Property, plant and equipment
Property, plant and equipment are recognized as an asset when it is probable that future economic benefits associated with the
asset will flow to the Company and the cost of the asset can be measured in a reliable manner.
Property, plant and equipment which qualify for recognition as an asset are initially measured at cost. The cost of a property,
plant and equipment comprises its purchase price and any directly attributable cost of bringing the asset to working condition
for its intended use.
The depreciable amount of the asset is allocated on a straight-line basis over its useful life. The depreciation charge for each
period is recognized as an expense. The estimated useful lives, residual values and depreciation method are reviewed at each
balance sheet date, with the effect of any changes in estimate accounted for on a prospective basis.
The following useful lives are used in the calculation of depreciation:
Machinery and equipment
3-10 years
Office equipment
5-8 years
Computer equipment
2-5 years
Leasehold improvements are depreciated over the lease term.
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and
the carrying amount of the asset at the date of the sale transaction and is recognized in the Consolidated Income Statement.
Intangible assets
Intangible assets acquired separately
Intangible assets with finite useful life are reported at cost less accumulated amortization and accumulated impairment losses.
Amortization is allocated on a straight-line basis over their estimated useful lives. The estimated useful life and amortization
method are reviewed at the end of each balance sheet date, with the effect of any changes in estimate being accounted for on a
prospective basis. Intangible assets with indefinite useful lives are carried at cost less accumulated impairment losses.
The following useful lives are used in the calculation of amortization:
Customer and distribution relationships
4-10 years
Patents and development costs
5-50 years
Trademarks
3-infinitive
Software and other
2-10 years
Internally generated intangible assets
Expenditure on research activities is recognized as an expense in the period in which it is incurred.
An internally generated intangible asset arising from the Company's development is recognized only if all of the following
conditions are met: the technical feasibility of completing the intangible asset so that it will be available for use or sale; the
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 92
intention to complete the intangible asset and use or sell it; the ability to use or sell the intangible asset; the intangible asset will
generate probable future economic benefits; the availability of adequate technical, financial and other resources to complete
the development and to use or sell the intangible asset and the ability to measure reliably the expenditure attributable to the
intangible asset during its development.
The amount initially recognized for internally generated intangible assets is the sum of the expenditure incurred from the date
when the intangible asset first meets the recognition criteria listed above. Where internally generated intangible asset cannot be
recognized, development expenditure is charged to profit or loss in the period in which it is incurred. Majority of development
expenditure is expensed in the period in which it is incurred except for certain projects.
After initial recognition, internally generated intangible assets are reported at cost less accumulated amortization and
accumulated impairment losses, on the same basis as intangible assets acquired separately.
Intangible assets acquired in a business combinations
Intangible assets acquired in a business combinations are identified and recognized separately from goodwill where they satisfy
the definition of an intangible asset, and their fair values can be measured reliably. The cost of such intangible assets is their fair
value at the acquisition date.
After initial recognition, intangible assets acquired in a business combinations are reported at cost less accumulated
amortization and accumulated impairment losses, on the same basis as intangible assets acquired separately.
Derecognition of intangible assets
An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains
or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and
the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized.
Impairment of tangible and intangible assets excluding goodwill
At each balance sheet date, the Company reviews the carrying amounts of its tangible and intangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated to determine the extent of the impairment loss. Where it is not possible to estimate the
recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit (CGU) to
which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, assets are also allocated to
individual CGU, or otherwise they are allocated to the smallest group of CGU’s for which a reasonable and consistent allocation
basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually,
and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre -tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset
(CGU) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits with banks and deposits with financial institutions. Bank overdrafts
are shown within borrowings in current liabilities in the Consolidated Balance Sheet. Deposits that are subject to regulatory
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 93
restrictions and are therefore not available for general use by the Company are presented as restricted cash and disclosed in
note 16.
Inventories
Inventories are stated at the lower of cost and net realizable value. Costs, including an appropriate portion of fixed and variable
overhead expenses, are assigned to inventories held by the method most appropriate to the class of inventory, with the majority
being valued on a standard cost basis. Net realizable value represents the estimated selling price for inventories less all
estimated costs of completion and costs necessary to make the sale.
Provisions
Provisions are recognized when the Company has a present obligation as a result of a past event, it is probable that the Company
will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the
balance sheet date, considering the risks and uncertainties surrounding the obligation. Where a provision is measured using the
cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the
receivable is recognized as an asset if it is virtually certain that reimbursement will be received, and the amount of the receivable
can be measured reliably.
Warranty provisions
The Company generally offers 2-6 years warranties for its prosthetics products. Warranty provisions include expected warranty
costs for products sold with standard warranty and are recognized at the date of sale of the relevant products, at management´s
best estimate of the expenditure required to settle the Company's obligation. Management estimates the related provision for
future warranty claims based on historical warranty claim information, as well as recent information on parts and labor costs.
The assumptions made in relation to the current period are consistent with those in prior year.
Restructuring provisions
Restructuring provision is recognized when the Company has developed a detailed formal plan for the restructuring and has
started to implement it or announcing its main features to those affected by it. The measurement of a restructuring provision
includes only the direct expenditures arising from the restructuring, which are those amounts that are both necessarily entailed
by the restructuring and not associated with the ongoing activities of the entity.
Other provisions
Other provisions mainly consist of legal and employee related provisions.
Financial instruments
Financial instruments are financial assets and financial liabilities. They are recognized in the Company’s balance sheet when the
Company becomes a party to the contractual provisions of the instrument and are initially measured at fair value.
Transaction costs that are directly attributable to the acquisition or issue of financial instruments (other than financial assets and
financial liabilities at fair value through profit or loss) are instruments, as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial instruments at fair value through profit or loss are recognized immediately in
profit or loss.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 94
Effective interest method
The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest
income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts
(including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of the debt instrument or, where appropriate, a shorter period to the net
carrying amount on initial recognition.
Income is recognized on an effective interest basis for debt instruments other than those financial assets classified as at fair
value through profit or loss (FVTPL).
Financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Regular way
purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by
regulation or convention in the marketplace. All recognized financial assets are measured subsequently in their entirety at either
amortized cost or fair value, depending on the classification of the financial assets.
Classification of financial assets
Debt instruments that meet the following conditions are measured subsequently at amortized cost:
-
the financial asset is held within a business model whose objective is to hold financial assets to collect contractual cash
flows; and
-
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Financial assets that do not meet the criteria for being measured at amortized cost are measured at FVTPL. Financial assets at
FVTPL are measured at fair value at the end of each reporting period, with any fair value gains or losses recognized in profit or
loss to the extent they are not part of a designated hedging relationship. The net gain or loss recognized in profit or loss includes
any dividend or interest earned on the financial asset. Fair value is determined in the manner described in Basis of preparation
above.
Impairment of financial assets
The Company recognizes a loss allowance for expected credit losses on investments in debt instruments that are measured at
amortized cost and account receivables. The amount of expected credit loss (ECL) is updated at each reporting date to reflect
changes in credit risk from initial recognition of the respective financial instrument. The company applies the IFRS 9 simplified
approach to measuring ECL’s which uses a lifetime expected loss allowance for accounts receivables. The ECL on accounts
receivable is estimated using a provision matrix by reference to past default experience, general economic conditions and an
assessment of both the current as well as expected conditions, including time value of money where appropriate. Individual
allowance and adjustments to the collective allowance are made based on the individual assessment of customers' situation and
probability of incoming payments. As the Company´s historical credit loss experience does not show significantly different loss
patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished
between the Company´s different geographical segments.
A financial asset is credit-impaired when one or more events, that have a detrimental impact on the estimated future cash flows
of that financial asset, have occurred. Evidence that a financial asset is credit-impaired includes observable data about significant
financial difficulty of the borrower. An allowance for credit-impaired financial assets is measured on an individual basis.
The Company writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and
there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 95
proceedings. Financial assets written off may still be subject to enforcement activities under the Company’s recovery
procedures, taking into account legal advice where appropriate. Any recoveries made are recognized in profit or loss.
Derecognition of financial assets
The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.
On derecognition of a financial asset, the difference between the asset's carrying amount and the sum of the consideration
received and receivable is recognized in profit or loss.
Financial liabilities
All financial liabilities are measured subsequently at amortized cost using the effective interest method or at FVTPL.
Financial liabilities are classified as at FVTPL when the financial liability is (i) contingent consideration of an acquirer in a business
combinations, (ii) held for trading or (iii) it is designated as at FVTPL.
A financial liability is classified as held for trading if:
-
it has been acquired principally for the purpose of repurchasing it in the near term; or
-
on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and
has a recent actual pattern of short -term profit-taking; or
-
it is a derivative, except for a derivative that is a financial guarantee contract or a designated and effective hedging
instrument.
Derecognition of financial liabilities
The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or
have expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and
payable is recognized in profit or loss. When the Company exchanges with the existing lender one debt instrument into another
one with the substantially different terms, such exchange is accounted for as an extinguishment of the original financial liability
and the recognition of a new financial liability. Similarly, the Company accounts for substantial modification of terms of an
existing liability, or part of it, as an extinguishment of the original financial liability and the recognition of a new liability. It is
assumed that the terms are substantially different if the discounted present value of the cash flows under the new terms,
including any fees paid net of any fees received and discounted using the original effective rate, is at least 10 % different from
the discounted present value of the remaining cash flows of the original financial liability. If the modification is not substantial,
the difference between the carrying amount of the liability before the modification and the present value of the cash flows after
modification, should be recognized in income statement as modification gain or loss.
Employee benefits
Retirement benefit costs
Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service
entitling them to the contributions.
A liability is recognized in respect of wages and salaries, annual leave and sick leave in the period the related service is rendered
at the undiscounted amount of the benefits expected to be paid in exchange for that service.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 96
Derivative financial instruments
The Company enters into derivative financial instruments to manage its exposure to currency risk. Further details of derivative
financial instruments are disclosed in note 34.
Derivatives are initially recognized at fair value at the date a derivative contract is entered into, and are subsequently
remeasured to their fair value at each balance sheet date. The resulting gain or loss is recognized in profit or loss immediately
unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or
loss depends on the nature of the hedge relationship. The Company designates certain derivatives as either hedges of cash flow
of recognized liabilities or hedges of net investments in foreign operations.
A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the instrument is more
than 12 months and it is not expected to be realized or settled within 12 months. Other derivatives are presented as current
assets or current liabilities.
Hedge accounting
The Company designates certain hedging instruments, which include derivatives and non-derivatives in respect of foreign
currency risk, as either cash flow hedges or hedges of net investment in foreign operations.
At the inception of the hedge relationship the entity documents the relationship between the hedging instrument and hedged
item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the
inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument, that is used in a
hedging relationship , is effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedge
risk, which is when the hedging relationships meet all of the following hedge effectiveness requirements:
-
there is an economic relationship between the hedged item and the hedging instrument;
-
the effect of credit risk does not dominate the value changes that result from that economic relationship; and
-
the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the
Company actually hedges and the quantity of the hedging instrument that the Company actually uses to hedge that
quantity of hedged item.
If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio, but the risk
management objective for that designated hedging relationship remains the same, the Company adjusts the hedge ratio of the
hedging relationship (i.e., rebalances the hedge) so that it meets the qualifying criteria again.
The hedging reserve within equity represents the cumulative portion of gains and losses on hedging instruments deemed
effective in cash flow hedges. The cumulative deferred gain or loss on the hedging instrument is reclassified to profit or loss only
when the hedged transaction affects the profit or loss, or is included as a basis adjustment to the non-financial hedged item,
consistent with the relevant accounting policy.
Hedges of net investments in foreign operations
Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognized in equity in the foreign
currency translation reserve.
Gains and losses deferred in the foreign currency translation reserve are recognized in profit or loss on disposal of the foreign
operation.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 97
Cash flow hedges
The effective portion of changes in the fair value of derivatives, that are designated and qualify as cash flow hedges, is
recognized in other comprehensive income and accumulated under the heading of hedging reserve. The gain or loss relating to
the ineffective portion is recognized immediately in profit or loss.
Amounts previously recognized in Other Comprehensive Income and accumulated in equity are reclassified to profit or loss in
the periods when the hedged item is recognized in profit or loss, in the same line of the Income Statement as the recognized
hedged item. However, when the hedged forecast transaction results in the recognition of a non-financial asset or a non-
financial liability, the gains and losses, previously recognized in Other Comprehensive Income and accumulated in equity, are
transferred from equity and included in the initial measurement of the cost of the non-financial asset or non-financial liability.
Hedge accounting is discontinued when the Company revokes the hedging relationship, when the hedging instrument expires, is
sold, terminated, exercised, or when it no longer qualifies for hedge accounting. Any gain or loss, recognized in Other
Comprehensive Income and accumulated in equity at that time, remains in equity and is recognized when the forecast
transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss
accumulated in equity is recognized immediately in the Consolidated Income Statement.
Government grants
Government grants are not recognized until there is reasonable assurance that the Company will comply with the set conditions
and that the grants will be received. Government grants are recognized in profit or loss in the periods in which the Company
recognizes the related expenses for which the grants are intended to compensate.
Significant accounting judgments, estimates and assumptions
In the application of the Company's accounting policies, management is required to make judgements, estimates and
assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates
and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized
in the period in which the estimate is revised. Revision of accounting estimates can also affect future periods.
Management has made significant accounting estimates and judgements in respect of the following areas:
Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units (CGU) to which
goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise
from the CGU and a suitable discount rate in order to calculate present value. Details of impairment calculations are set out in
note 13.
Acquisitions as part of business combinations results in recognition of goodwill and various assets and liabilities. The amounts
allocated to the acquired assets and liabilities are based on assumptions and estimates about their fair values. Details of fair
value of assets and liabilities in business combinations are set out in note 33.
In determining the lease term on initial recognition of right of use assets and lease liabilities, management consider all facts and
circumstances that create an economic incentive to exercise and extension option. Extension options are only included in the
lease term if the lease is reasonably certain to be extended. The lease liability is initially measured at the present value of future
lease payments, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses
its incremental borrowing rate. To determine the incremental borrowing rate, the Company uses a build-up approach that
begins with a risk-free interest rate. The rate is then adjusted for credit risk for leases held by the Company and further modified
based on specific lease factors such as term, country and currency.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 98
Warranty provisions include expected warranty costs for products sold with standard warranty and are recognized at the date of
sale of the relevant products, at management´s best estimate of the expenditure required to settle the Company's obligation.
Management estimates the related provision for future warranty claims based on historical warranty claim information, as well
as recent information on parts and labor costs.
Some of the Company’s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair
value of assets or liabilities, the Company uses market -observable data to the extent it is available. Where such inputs are not
available, the Company uses valuation models based on observable prices where applicable else non-observable prices. Details
of fair value of financial assets and liabilities are set out in note 34.
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 99
41. Definitions of key ratios and terms
EBT
Earnings before interest
EBIT
Earnings before interest and taxes
EBITDA
Earnings before interest, taxes, depreciation and amortization. Financial items and share in net profit or loss of associated
companies are not included in the EBITDA measurement
EBITDA before special items
Management monitors the performance measure EBITDA before special items, at a consolidated level and considers the
measure relevant to an understanding of the Company's financial performance as it facilitates a better comparison of the
Consolidated Income Statement between periods. Special items comprise material amounts of a non-recurring nature, such as
costs relating to divestments, closure or restructuring, lawsuits, etc.
Aggregate EBITDA of Guarantors
Aggregate EBITDA of Guarantors is the combined EBITDA of the Company´s Guarantors as defined in loan agreements.
Aggregate gross assets of Guarantors
Aggregate gross assets of the Guarantors is the combined gross assets of the Company´s Guarantors as defined in loan
agreements
.
Gross profit margin
Gross profit as a percentage of net sales
EBITDA margin
EBITDA as a percentage of revenues
EBIT margin
EBIT as a percentage of revenues
Free cash flow
Cash generated from operati ng activities less capital expenditure
Equity ratio
Equity as a percentage of total assets
Net interest-bearing debt (NIBD) to EBITDA before special items
Aggregated interest bearing debt, consisting of borrowings and lease liabilities, less cash and cash equivalents divided by EBITDA
before special items
Return on equity
Net profit as a percentage of average equity
Capex to net sales
The amount of purchased fixed and intangible assets to net sales
Market value of equity
Notes to the Consolidated Financial Statements
Embla Medical hf. Consolidated Financial Statements 2025 100
Value of the Company's equity, measured by multiplying the current stock price by the total number of outstanding shares
Sales growth
The change in revenue compared to prior period
Basic Earnings per share
Net profit attributable to the parent Company's shareholders, divided by the parent Company’s average number of shares
outstanding for the period
Diluted Earnings per share
Net profit attributable to the parent Company's shareholders, divided by the parent Company’s average number of shares
outstanding for the period adjusted for effects of outstanding share option contracts.