Arjo Ab Class B · OMXSTO:ARJO_B
Arjo Ab Class B — Q3 2020 Earnings Presentation
19 slides from Arjo Ab Class B's earnings presentation, Oct 28, 2020
Slide 1: Arjo Q3 2020
Arjo Q3 2020 October 28, 2020 Joacim Lindoff, President & CEO Daniel Fäldt, CFO
Slide 2: Agenda
Agenda 1. Business update 2. Financials in detail 3. Key takeaways 4. Q&A 2
Slide 3: Business Update
Business Update 3
Slide 4: Q3 2020 Highlights
Q3 2020 Highlights Net sales grew Gross margin organically by increased to Our profitable growth journey continues • Net sales grew 5.8% organically – continued high activity level 5.8% 45.4% • Strong development in Medical beds, Therapeutic mattresses and US Rental • Limited access to customer faci
Slide 5: Outlook 2020
Outlook 2020 Organic net sales growth for the fourth quarter is expected to be within the 2-4% target interval. Operating expenses are expected to continue to decline as a percentage of sales in 2020. 5
Slide 6: Acquisition of equity stake in Bruin Biometrics (BBI)
Acquisition of equity stake in Bruin Biometrics (BBI) • Exclusive distribution rights for BBI’s SEM scanner • Possible to detect pressure injuries days before visible to the human eye • Further strengthens our WoundCare offering • Positive impact on net sales and EPS beginning in 2021, and significa
Slide 7: North America Q3 2020
North America Q3 2020 Continued strong development, especially in the US Q3 org. net sales • Continued strong momentum in the US; healthy growth in Q3 • High demand for US rental, especially in beginning of the quarter +9.2% • Elective care still below normal levels - causing lower US DVT volumes •
Slide 8: Western Europe Q3 2020
Western Europe Q3 2020 Net sales grew 0.7% Q3 Org. net sales • High net sales in Medical beds • Healthy growth in France & Spain +0.7% • Exit rates for Service and Rental on last year’s levels • Lower Patient Handling and Hygiene volumes due to limited access to customer facilities Restructuring act
Slide 9: Rest of the World Q3 2020
Rest of the World Q3 2020 Q3 Org. net sales Continued solid growth • Good momentum in both distributor markets and our own infrastructure +12.1% • Generally high demand in Medical beds • Growth held back by extensive Covid-19 restrictions in several markets – India remains in severe lockdown and see
Slide 10: Financials in detail
Financials in detail 10
Slide 11: Q3 gross profit
Q3 gross profit Improved gross profit in quarter • High volumes in US rental generating Gross profit bridge – Q3 2020 vs. Q3 2019 (SEK M) operational leverage Margin development • Previous efficiency measures paying off x Margin (Percent) x (Percentage point) • Increase in high spec medical beds and
Slide 12: Q3 Adjusted EBIT
Q3 Adjusted EBIT Significant improvement of 67% vs. last year • Adjusted EBIT grew by 67.1% vs. last year to Adj. EBIT bridge – Q3 2020 vs. Q3 2019 (SEK M) 208 MSEK (125) x Margin (Percent) • Solid profitability within US rental operations, driven by Covid-19 5.8% 9.7% -22 • OPEX under good control
Slide 13: Q3 Working capital and Operating cash flow
Q3 Working capital and Operating cash flow Continued improvement in working capital Operating cash flow remains strong Working capital days – Q1.19-Q3.20 Operating cash flow – Q1.19-Q3.20 Working capital days Operating cash flow (MSEK) 613 525 112 110 110 108 438 106 379 100 96 287 255 180 Q1.19 Q2.
Slide 14: Q3 Net debt and leverage
Q3 Net debt and leverage Net debt in line with Q2’s low level Solid improvement in leverage Net debt – Q1.19-Q3.20 Leverage – Q1.19-Q3.20 Net debt, incl. IFRS16 (BSEK) Net debt / Adj EBITDA, multiple (R12) Net debt / Adj EBITDA, multiple (R12), excl. IFRS16 6.1 3.6 6.0 3.5 5.9 3.4 5.9 3.3 3.3 5.8 3.
Slide 15: Key takeaways
Key takeaways 15
Slide 16: Key takeaways
Key takeaways • Very strong Q3 – higher pace of delivery than anticipated • Continued high demand for Medical beds & Therapeutic mattresses • High volumes in US Rental, especially in beginning of quarter • Limited access to AC and LTC facilities remain • Solid financial position, with further room f
Slide 17: Q&A
Q&A 17
Slide 18: Forward looking information
Forward looking information This document contains forward-looking information based on the current expectations of Arjo’s management. Although management deems that the expectations presented by such forward-looking information are reasonable, no guarantee can be given that these expectations will
Slide 19: oifjJoO
oifjJoO with people in mind