Arjo Ab Class B · OMXSTO:ARJO_B
Arjo Ab Class B — Q3 2023 Earnings Presentation
16 slides from Arjo Ab Class B's earnings presentation, Oct 19, 2023
Slide 1: Arjo Q3 Report 2023
ARJO Q3 REPORT 2023 October 19, 2023 Joacim Lindoff, President & CEO 1
Slide 2: Agenda
Business Update – Q3 2023 Financials in detail Agenda Key takeaways Q&A
Slide 3: Q3 2023 highlights
Q3 2023 highlights Net sales Gross margin grew organically by amounted to Strong core business driving growth • Healthy net sales growth in many markets • Positive capital sales development 4.6% 42.1% • High demand for Service and Rental globally Continued profitability improvement • Solid gross mar
Slide 4: North America Q3 2023
North America Q3 2023 Continued strong development in Canada • 14 consecutive quarters of solid growth Q3 org. net sales • Service, Rental and Hygiene all perform well • Continued healthy mix of acute care vs. long-term care sales +8.2% US market remains challenging – but moving in the right directi
Slide 5: Global Sales Q3 2023 – Western Europe
Global Sales Q3 2023 Western European markets (1.6% in Q3) Q3 org. net sales • Strong net sales development in markets like France, Spain, Austria +2.5% and Ireland • UK in line with last year despite turbulent market situation • Somewhat weaker quarter in Germany and Netherlands YTD org. net sales
Slide 6: Global Sales Q3 2023 – Rest of the World
Global Sales Q3 2023 Rest of the World markets (4.8% in Q3) Q3 org. net sales • Strong growth in many markets such as Singapore, Africa and +2.5% New Zealand • Generally healthy demand for capital equipment, with step by step improvements in product mix • Improvement in service and rental activities
Slide 7: Q3 gross profit: positive gross margin improvement
Q3 gross profit Positive gross margin improvement Gross profit bridge – Q3 2023 vs. Q3 2022 (MSEK) • Continued gross margin improvement y-o-y Margin development x Margin (Percent) x (Percentage point) • Contribution from price adjustments and efficiencies according to plan – strong focus to continue
Slide 8: Q3 adjusted EBIT: high activity level and solid cost control
Q3 adjusted EBIT High activity level and solid cost control Adj. EBIT bridge – Q3 2023 vs. Q3 2022 (MSEK) • Adj. EBIT increased by 41.2% vs. Q3 2022 x Margin (Percent) • OPEX development in line with expectations • Inflation on salaries clearly visible – expected to remain onwards 5.8% 7.5% • Increa
Slide 9: Q3 working capital and operating cash flow
Q3 working capital and operating cash flow Working capital days improvement Strong operating cash flow Working capital days – Q1.20-Q3.23 Operating cash flow – Q1.20-Q3.23 Working capital days Operating cash flow (MSEK) 843 108 106 100 102 102 101 101 613 639 97 598 96 92 92 94 92 525 528 89 431 452
Slide 10: Q3 net debt and leverage
Q3 net debt and leverage Net debt level decreasing in Q3 In turn improving leverage Net debt – Q1.20-Q3.23 Leverage – Q1.20-Q3.23 Net debt, incl. IFRS16 (BSEK) Net debt / Adj EBITDA, multiple (R12) 5.8 5.6 5.6 3.3 3.2 5.3 3.1 5.1 5.1 5.1 5.0 5.2 2.9 5.0 5.0 2.8 4.8 4.7 2.7 2.7 2.7 2.7 4.6 2.5 2.5 2.
Slide 11: Outlook
Outlook 2023 Organic net sales growth for 2023 is expected to be within the Group’s target interval of 3-5% Page 11
Slide 12: Key takeaways
Key takeaways • Strong core business driving growth • Continued positive global trend in Service and Rental • US market remains challenging – but moving in the right direction • Long-term profitability improvement continues – strong focus on pricing activities to continue also in 2024 • Strong opera
Slide 13: Q&A
Q&A 13
Slide 14: Financial calendar and further questions
Financial calendar Year-end Report 2023 January 30, 2024 Annual Report 2023 March 2024 Interim Report Jan-Mar 2024 April 18, 2024 Annual General Meeting 2024 April 18, 2024 Further questions Maria Nilsson EVP, Communication & Public Relations +46 734 244 515 maria.nilsson@arjo.com Sara Ehinger VP, I
Slide 15: 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 16: Arjo – Empowering Movement
aifJjJoO EMPOWERING MOVEMENT