Addlife Ab Class B · OMXSTO:ALIF_B
Addlife Ab Class B — Q3 2023 Earnings Presentation
19 slides from Addlife Ab Class B's earnings presentation, Oct 26, 2023
Slide 1: Interim report AddLife Q3
Interim report AddLife Q3 26 October 2023
Slide 2: Continued strong growth
Continued strong growth • Strong development in all parts of the business, 10% revenue growth ü Organic, currency adjusted growth 9% in Labtech (excluding COVID), 10% in Medtech • Healthy demand development in all segments ü Increased activity in elective surgery, significant backlog remains ü Marke
Slide 3: Net Sales & EBITA Q3
Net sales 3 months 2 500 Net Sales & EBITA Q3 2 400 2 300 176 2 319 2 200 194 0 2 100 2 100 Net sales 2 000 1 900 - 151 • Net Sales SEK 2,319m: +10% 1 800 1 700 • COVID-19 sales SEK 0m (151 m): -100% 1 600 1 500 2022 Q3 COVID-19 Organic Acquisitions Currency 2023 Q3 • Organic currency adjusted growt
Slide 4: Profit & Loss Q3
Profit & Loss Q3 • Strong growth, +10% • Increased gross margin thanks to product mix and price management. • Increased commercial activities and strenghthened sales organization. >50% of S&M cost increase is driven by currency • Other income and expenses include reversal of contingent consideration
Slide 5: Taxes
Taxes • Updated tax assumptions based on the rules YTD -23 Q3 limiting deduction of interest cost Profit before tax 337 61 Tax accord to P&L -104 -35 • We have adopted a cautious/realistic position Effective tax rate Jan-Sept 31% 57% and do not account for losses carry forward Correction previous ye
Slide 6: Cash flow Q3
Cash flow Q3 Cash flow Q3 2023 • Operating cash flow SEK 138m (20) and FY SEK 325m (558) • Cash flow in H1 used to finance current and future growth • Reduction in inventory and A/R, despite strong growth • Driving working capital initiatives, increased effect expected in Q4
Slide 7: Net debt and leverage
Net debt and leverage Net debt KPI's • Net debt reduced by SEK 200m in Q3 6,000 4.5 2023 3.9 3.9 4 5,500 3.5 3.7 3.5 • Net debt / EBITDA 3.9 5,000 3 2.5 • R12 EBITDA impacted by covid-sales 4,500 2 and reversal of contingent 4,000 1.5 considerations in Q3 2022 1.1 1.0 1.1 1.1 1 3,500 0.5 • Net debt/
Slide 8: Bank loan and covenants
Bank loan and covenants Debt structure 3000 • The Revolving Credit Facility (RCF), 2500 2000 SEK 1 bn, has been prolonged one 1500 1000 year, to March 2025 500 0 • Variable interest, margin + 3m Q4 Q1-Q4 Q1 Q2-Q4 Q1 - Q4 Q1-Q2 Q3 Q4 2023 2024 2025 2026 2027 Euribor / Stibor RCF ** Bankloan (2024 +1y
Slide 9: Market trends and implications
Market trends and implications MARKET TRENDS: CURRENT AND EXPECTED IMPLICATIONS FOR ADDLIFE Post pandemic environment: è Increased number of surgical Elective surgery recovering procedures Staffing shortage, healthcare capacity èIncreased demand for time/resource constraints saving products and serv
Slide 10: Labtech Q3
Labtech Q3 • Organic currency adjusted growth +9% (excluding COVID-19 sales LY SEK 151 m) • Developing the portfolio, introducing new products • High activity and stable funding in main customer groups: hospital labs, academic research, pharmaceutical companies • Delayed invoicing in Eastern Europea
Slide 11: Labtech – Organic growth, developing portfolio
Labtech – Organic growth, developing portfolio Diagnostics Biomedical and Research • Strong growth • Solid growth • Testing volumes benefit from hospital • Somewhat slower processes related to large activity capital investments, affects only a small part of the AddLife companies • Strong market posi
Slide 12: Medtech Q3
Medtech Q3 • Strong organic, currency adjusted growth: +10% • High elective surgery activity continues, significant patient waiting lists remain. Expected to continue to support growth • All Hospital companies performing strongly • Addressing problems in AddVision • Strong growth and profit improvem
Slide 13: Medtech – Increased activity in surgery
Medtech – Increased activity in surgery Hospital/Health services Homecare • Elective surgical procedures increasing across • Demand in the homecare business is supported Europe – trend expected to continue by demographic trends, shortage in healthcare • Good performance in the quarter in spite of st
Slide 14: Current priorities and actions
Current priorities and actions 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 • New suppliers in place and new products launched • Updated, strengthened and trained sales organization in largest market • Expanded manufacturing capacity in place (in October) to meet growing demand • Restructuring the organization for increased efficiency an
Slide 16: Active work to improve profitability
Active work to improve profitability • The digital development portfolio in Homecare has been reviewed and has resulted in a decision to focus the activities • Camanio Health (remote patient monitoring) will be discontinued • The customer relationships will be handed over to another company in the s
Slide 17: Latest Acquisition Emmat Medical
Latest Acquisition Emmat Medical • UK based medical device company offering surgical product sales & technical services to acute hospital sector • Cardiothoracic, general surgery, vascular, spinal & neuro market segments • Add-on acquisition to Healthcare 21 Group • SEK 28m turnover in R12 Aug 23 •
Slide 18: Summary
Summary • Strong growth in all parts of the business, companies are well positioned to benefit from market trends Ø Elective surgery growth expected to continue Ø Strong and stable demand from academic research and pharma companies Ø Macro trends supporting homecare • EBITA growing - improved profit
Slide 19: 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