Slide 1: Q4 presentation
Q4 presentation 8 March 2023
Slide 2: Four attractive niches with unmet medical needs
Four attractive niches with unmet medical needs Specialty Pharma MedTech Veterinary Services Diagnostics 43% revenue 37% revenue 13% revenue 8% revenue 323 employees 238 employees 232 employees 99 employees Allergy Diagnostics & Treatment Membership platform Veterinary orthopedic implants Livestock
Slide 3: A global footprint and network of KOLs
A global footprint and network of KOLs 4Q 22 Europe 47% 2021 4Q 22 USA 58% 44% 2021 35% 4Q 22 APAC 9% 2021 7% Offices Vimian companies HQ (Stockholm, Sweden) Direct sales markets Page 3 * Revenue split based on 4Q 2022 reported revenue
Slide 4: Fourth Quarter 2022
Fourth Quarter 2022 Page 4
Slide 5: Q4 highlights
Q4 highlights / Stable quarter – strong organic growth in US, southern Europe slower / Strong total sales and EBITA growth / Focus on integrating acquired companies and accelerate organic growth – staying cautious on cost / High level of market activity, educations and trade shows / Colleen Flesher
Slide 6: Fourth quarter delivers strong 50% growth in adjusted EBITA
Fourth quarter delivers strong 50% growth in adjusted EBITA Revenue and Adj. EBITA / Solid 6.7% Q4 organic growth in companion Adj EBITA (EURm) Revenue (EURm) x% Adj EBITA margin x% Organic growth (%) animal business (8.7% FY) +62% 80 / Full-year pro-forma organic growth in 281.3 companion +11.5% 73
Slide 7: Strong track record since 2016
Strong track record since 2016 48x 297 / Niches with unmet medical needs, untapped white space 215 / Growth driven both by organic initiatives and continuous M&A / Multiple organic growth initiatives underway and synergy potential 103 86 67 45 37 Revenue CAGR Adj. EBITDA CAGR Adj. EBITDA margin 26 1
Slide 8: Specialty Pharma 7%
Specialty Pharma 7% PF organic growth Q4 / Solid 7% pro-forma organic growth giving full year 15% ✓ >25% growth in Specialty Pharmaceuticals, ~30% of Q4 sales from new products ✓ >35% growth in US Specialized Nutrition, ~20% of Q4 sales from new products 49% / Softer market in Southern Europe in Q4
Slide 9: Bova Australia – building a global leader in Specialty Pharmaceuticals
Bova AUS Bova Australia – building a global leader in Specialty Pharmaceuticals Portfolio expansion / Second key milestone in strategy to build a global position in fast-growing niche of companion animal health Geographic / Market leader in Australia, founded in 2008 by Nick Bova – offers a wide ran
Slide 10: MedTech 10%
MedTech 10% Organic growth Q4 / Solid 10% organic growth giving full year 10% / Strong momentum in US, successful participation in veterinary surgery congress ACVS in October 75% Adj. EBITA / Good growth in acquired distributors confirming strategic importance of direct growth Q4 presence in key geo
Slide 11: Veterinary Services 10%
Veterinary Services 10% Organic growth Q4 / Solid 9.9% organic growth giving full year organic growth 9.6% / Continued focus on new tiered member model, re-negotiation of strategic partner agreements 136% Adj. EBITA growth Q4 / Strong member growth with more than 300 new members in Q4. New market Br
Slide 12: Diagnostics
Diagnostics 3% Organic growth excluding Covid in Q4 / 17.7% organic decline in Q4 giving full year -25%, reflecting Covid phase- out (EUR 1.5m in Q4 2021) / Excluding Covid impact organic growth around 3% in Q4 -53% Adj. EBITA decline Q4 / Underlying livestock market conditions improving / Focus on
Slide 13: Thirteen acquisitions signed 2022 with combined revenue EUR 64m
Thirteen acquisitions signed 2022 with combined revenue EUR 64m Revenue Closing Portfolio Geographic Channels / New capabilities Segment Company Geography Integration status EURm month expansion expansion Customers / Technology Foundation for geographic expansion, EUR 10m UK February accelerated pro
Slide 14: Fourth Quarter Financials
Fourth Quarter Financials Page 14
Slide 15: Q4 Income Statement
Q4 Income Statement / Strong growth in revenue and operating profit EUR m 2022 2021 2022 2021 Oct – Dec Oct – Dec Jan – Dec Jan – Dec / Operating profit margin improve from 8.3% to 15.2% Revenue 75.5 48.7 281.3 173.4 / Lower non-recurring items reflects reversal of legal costs Adjusted EBITA 18.0 12
Slide 16: Fourth quarter margin development primarily a mix effect
Fourth quarter margin development primarily a mix effect Year over year development of adjusted EBITA margin / Gross margin +1.3pp pre-consolidation 28 of GlobalOne, including -1.8pp 0.2% 0.2% 27 0.3% 0.8% 0.9% 26 / Year over year margin improvement in 1.5% 25 24.7% 2.4% MedTech and Veterinary Servi
Slide 17: Q4 Cash Flow and Financial Position
Percent 2022 2021 2022 2021 Q4 Cash Flow and Financial Position Oct-Dec Oct-Dec Jan-Dec Jan-Dec / 110% cash conversion in Q4, 57% 2022 Cash Conversion 110% 82% 57% 71% / Operating cash flow 4Q EUR 22.8m (2022 46.7m) 2022 2021 2022 2021 EUR m Oct-Dec Oct-Dec Jan-Dec Jan-Dec Cash flow from operating /
Slide 18: Net Debt and Leverage
Net Debt and Leverage Leverage Net Debt (EUR m) 360 340 341 / Net debt per 31 December 2022 EUR 258m 340 320 300 / Cash and cash equivalents EUR 42.2m 280 267 4.3x 4.1x 258 260 240 3.6x / Net Debt / LTM Pro-forma EBITDA 3.0x 220 200 3.0x 168 / Share issue of SEK 1.5bn completed 3 October, proceeds 1
Slide 19: US patent dispute
US patent dispute / In January, a jury found wilful infringement of VOI and Fidelio, Synthes awarded 59.5 MUSD in damages / Per 31st Dec 2022, Vimian has booked a claim on the VOI sellers for the fine, and a liability toward the plaintiffs for the judgment – no net debt impact / VOI strongly disagre
Slide 20: 2022 market update – growth normalising post-pandemic peak
2022 market update – growth normalising post-pandemic peak Animal Health industry revenue growth² (%) Growth normalising after post-pandemic peak 15% / Normalisation of demand post pandemic peak Approximately / N America solid growth primarily price and mix €56bn Addressable market 10% / Europe soft
Slide 21: Current trading Jan - Feb
Current trading Jan - Feb / Positive start to 2023 – high single digit growth / Implementing price increases in most segments / Negative impact from phase out of Covid sales • 1Q22; 20% of sales in Diagnostics, 2Q22; 5% of sales in Diagnostics / Strong performance in AOP programme in Movora • Sales
Slide 22: 2022 – solid year in challenging macroeconomy
2022 – solid year in challenging macroeconomy / Resilient sector, more normalised demand / Strong total sales and EBITA growth / Solid pro-forma organic growth in companion animal business / Consolidation of acquired companies and investments for growth impacted margin / Milestones achieved across s
Slide 23: 2023 focus
2023 focus / Positive start for Vimian, but uncertain times - closely monitor demand, cost control / Clear ambition to re-accelerate organic growth / Five key areas in focus: • Grow Specialty Pharma via >50 product launches, roll-out of existing products and services in additional markets and channe
Slide 24: Q&A
Q&A Page 24