Addlife Ab Class B · OMXSTO:ALIF_B
Addlife Ab Class B — Q4 2023 Earnings Presentation
18 slides from Addlife Ab Class B's earnings presentation, Feb 2, 2024
Slide 1: Interim report AddLife Q4
Interim report AddLife Q4 2 February 2024
Slide 2: Strong growth and improved cash flow
Strong growth and improved cash flow • Customer demand is healthy in all parts of the business, 9% revenue growth in the quarter Organic, currency adjusted growth 13% in Labtech (excluding COVID), 6% in Medtech • EBITA grew by 7%, excluding non-recurring items1 Strong margin in Labtech at 14.5%
Slide 3: Net sales & EBITA Q4
Net sales & EBITA Q4 Net sales • Net Sales SEK 2,544m: +9% • COVID-19 sales SEK 0m (64 m): -100% • Organic currency adjusted growth excl. COVID-19: +9% EBITA • EBITA: SEK 278m +8% • EBITA margin: 10.9% (11.1). Excluding contingent considerations and one-off costs 10.2% (10.4)
Slide 4: Q4 impacted by write downs and one-off costs
Q4 impacted by write downs and one-off costs • Write downs and one-off costs related to AddVision and Camanio of total SEK - 134m in Q4 • Annual savings total SEK 80m • AddVision SEK 20m, starting from January • Camanio Health SEK 10m, starting from January • Camanio Care SEK 50m, gradually realized
Slide 5: Profit and loss Q4
Profit and loss Q4 • Strong sales growth, +9% • Slightly lower gross margin due to high instrument sales • Increased commercial activities and strenghthened sales organization. >30% of opex increase is driven by currency • Other income and expenses include reversal of contingent consideration • EBIT
Slide 6: Operating cash flow
Operating cash flow Operating cash flow per quarter Operating Cash flow and Cash conversion 500 1200 140% 131% 450 1000 118% 120% 400 350 100% 800 89% 300 72% 79% 80% 76% 80% 250 600 70% 60% 200 400 150 40% 100 200 20% 50 0 0% 0 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 7: Cash flow Q4
Cash flow Q4 • Operating cash flow SEK 448m (351) • Focus on working capital initiatives has been successful – continued focus in 2024 • Working capital release of SEK 264m (190) • Reduction of inventory and increased A/P • Increased A/R driven by continued strong growth
Slide 8: Net debt and leverage
Net debt and leverage Net debt KPI's • Net debt reduced by SEK 408m in Q4 2023 6 000 4,5 5 500 3,9 3,9 4 • Net debt / EBITDA 3.5 3,7 3,5 3,5 3,5 5 000 3 • Net debt/equity ratio in line with internal 2,5 guideline of <1.0 4 500 2 4 000 1,5 • Debt to be reduced via self-generated cash 1,1 1,0 1,1 1,1
Slide 9: Reduction of net debt
Reduction of net debt • Net debt reduced by SEK 408m in Q4 2023 • Majority of loan in EUR – positive Fx impact in Q4 • Repayment of SEK 276m
Slide 10: Bank loan and covenants
Bank loan and covenants Debt structure • Variable interest, margin +3m 3000 2500 Euribor, one quarter delay 2000 1500 1000 • Average interest rate Q4 2023 5.9% 500 0 Q4 Q1-Q4 Q1 Q2-Q4 Q1 - Q4 Q1-Q2 Q3 Q4 2023 2024 2025 2026 2027 RCF Bankloan (Jan 2025) * Bankloan (2026 +1y) * * Loan in EUR Covenants
Slide 11: Market trends and implications
Market trends and implications MARKET TRENDS: CURRENT AND EXPECTED IMPLICATIONS FOR ADDLIFE Post pandemic environment: Elevated number of surgical Elective surgery recovering procedures continues Staffing shortage, healthcare capacity Increased demand for time/resource constraints saving products
Slide 12: Labtech Q4
Labtech Q4 • Organic currency adjusted growth +13% (excluding COVID- 19 sales LY SEK 64m) • Strong EBITA margin at 14.5% (14.5) • Diagnostics business stable, good margins • Biomedical & Research strong growth and margins • High customer activity, in particular in Pharma industry • Strong invoicing
Slide 13: Medtech Q4
Medtech Q4 • Organic, currency adjusted growth: +6% • Elevated elective surgery activity, expected to continue to support growth • Hospital companies performing strongly in general, AddVision and Homecare reduce overall EBITA margin • Significant actions taken to improve profitability in AddVision a
Slide 14: Priorities and actions 2024
Priorities and actions 2024 PRIORITIES: 1. PROTECT AND IMPROVE PROFIT 2. ORGANIC GROWTH 3. 3.CASH CASHFLOW FLOW 4. ACQUISITIONS
Slide 15: Active work to improve profitability
Active work to improve profitability GOAL: Position AddVision for success in a market undergoing changes in reimbursement, competitive landscape & customer structure Improvements required in the following areas: 3. IMPROVED 2. MORE AGILE & COMMERCIAL 1. COST EFFICIENT OFFERING & REDUCTION ORGANISATI
Slide 16: Active work to improve profitability
Active work to improve profitability • The digital development projects in Homecare has been reviewed during 2023: Camanio Health (remote patient monitoring) discontinued in Q4 Camanio Care (safety alarms): Initiated trade union negotiations regarding a planned closure of development project and
Slide 17: Summary and outlook
Summary and outlook • Customer demand is solid, companies well positioned • Companies are doing a fantastic job developing product and service portfolio • Significant actions taken that will improve profitability • Strong cash flow generation Confidence in our ambition to reduce debt through own g
Slide 18: Q&A
Christina Rubenhag Fredrik Dalborg Q&A CFO +46 705 46 72 22 CEO +46 705 16 09 01 christina.rubenhag@add.life fredrik.dalborg@add.life