Slide 1: Interim report AddLife Q4
Interim report AddLife Q4 February 5, 2025
Slide 2: High growth, improved margins and strong cash flow
High growth, improved margins and strong cash flow • The companies performed well, driven by healthy customer demand and dedicated, long-term growth and efficiency efforts • Sales increased by 11%. Organic and currency adjusted growth 9% • Labtech: Strong instrument sales and invoicing in Eastern Eu
Slide 3: Profit & Loss Q4 – strong EBITA growth
Profit & Loss Q4 – strong EBITA growth • Sales growth, +11% • Organic growth +9% • Acquired growth +1% • Improved gross margin due to product mix and price increases • Less capitalized R&D in other income & expenses • Financial costs impacted negative by currency. Interest cost lower vs last year (S
Slide 4: Positive development of EBITA-margin
Positive development of EBITA-margin1 EBITA-margin % 12,5% 12,0% 12,3% • FY EBITA-margin 11,3% (10,5) 11,5% 11,5% • FY EBITA growth 14% 11,5% 11,4% 11,0% 11,1% 10,5% 10,4% 10,2% 10,0% 9,9% 9,8% 9,5% 9,0% 8,5% 8,0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 1) Excluding reversal of contingent consideration
Slide 5: Operating cash flow improving
Operating cash flow improving Operating cash flow per quarter Operating Cash flow and Cash conversion 666 1200 140% 700 131% 1000 118% 120% 600 500 100% 448 800 94% 89% 400 351 79% 80% 80% 72% 76% 600 70% 300 60% 400 200 40% 100 200 20% 0 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2018 2019
Slide 6: Cash flow Q4
Cash flow Q4 • Operating cash flow SEK 666m (448) • Working capital SEK 332m (264) • Strong focus on collection of account receivables • Reduction of bank debt SEK 450m
Slide 7: Change of net debt
Change of net debt • Net debt reduced by SEK 430m in Q4 2024 • Majority of loan in EUR – negative Fx impact in the quarter • Repayment of debt with SEK 450m
Slide 8: Net debt and leverage
Net debt and leverage Net debt KPI's 6 000 4,5 • Bank loan reduced by SEK 450m in 2024 4 5 500 3,5 3,7 3,9 3,9 3,5 3,8 3,6 3,6 3,5 • Net debt / EBITDA 3.2 3,2 5 000 3 • Net debt/equity ratio just below internal 4 500 2,5 guideline of <1.0 2 4 000 1,5 • Debt to be reduced via self-generated cash 1,1
Slide 9: Bank loan and covenants
Bank loan and covenants Debt structure, incl utilization of extension options 3000 • Variable interest, margin +3m Euribor 2000 1000 • Average interest rate Q4 2024 5.3% 0 Q4 Q1 - Q4 Q1 - Q4 Q1 Q2 Q3 Q4 • Interest cost expected to come down 2024 2025 2026 2027 based on recent interest rate cuts RCF
Slide 10: Labtech Q4
Labtech Q4 • Organic, currency adjusted growth +6%, Acquired growth 3% • Activity in diagnostics and pharma remains high • Instrument sales improved significantly in the fourth quarter Deliveries related to recently won tenders and the completion of previously planned projects • Strong sales in
Slide 11: Medtech Q4
Medtech Q4 • Organic, currency adjusted growth +11% • Generally strong performance driven by developing product portfolios and increasing market shares • Patient waiting lists have not decreased during the quarter. Initiatives to reduce waiting lists are expected to have a positive effect in 2025 •
Slide 12: Previously established priorities remain in 2025
Previously established priorities remain in 2025 PRIORITIES: 1. PROTECT AND IMPROVE PROFIT 2. ORGANIC GROWTH 3. 3.CASH CASHFLOW FLOW 4. ACQUISITIONS
Slide 13: Market trends and implications
Market trends and implications MARKET TRENDS: CURRENT AND EXPECTED IMPLICATIONS FOR ADDLIFE Significant patient waiting lists: Increased Elevated number of surgical procedures demand for elective surgery procedures needed for a long period Staffing shortage, healthcare capacity Increased demand f
Slide 14: AddLife is well positioned for potential global trade disruptions
AddLife is well positioned for potential global trade disruptions Majority of group supply from Europe 100% 9% 7% 100% 90% 84% 80% 70% 60% 50% 40% 30% 20% 10% 0% Europe North America Asia Total
Slide 15: Significant technological trends expected to drive growth
Significant technological trends expected to drive growth 1. Next-Generation Sequencing (NGS) – expected annual market growth ~20% Research and increasingly diagnostics linked to broad range of therapies Potential: Leverage current significant suppliers to build portfolio further, combined with
Slide 16: Summary and outlook
Summary and outlook • The companies in the group finished the year in a strong way • Profitability improvement initiatives are progressing well Resulting in margin improvements Svancare donates assistive devices to Ukraine • Cash flow improvement initiatives are yielding results Reducing debt le
Slide 17: 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