Slide 1: Arjo Q2 Report 2024
ARJO Q2 REPORT 2024 July 12, 2024 Joacim Lindoff, President & CEO Niclas Sjöswärd, CFO 1
Slide 2: Agenda
Business update – Q2 2024 Financials in detail Agenda Outlook 2024 Key takeaways Q&A
Slide 3: Q2 highlights
Q2 highlights Continued growth and profitability improvement Healthy growth across most major markets • Demand remains high for the Group’s products and solutions Net sales Gross • Continued positive development in Service and Rental globally organic growth margin Gross margin improvement • Positive
Slide 4: North America Q2 2024
North America Q2 2024 Q2 org. net sales Continued strong development in Canada • Profitable growth journey continues +2.6% • Service, Rental and Capital all perform well • Healthy mix of acute care vs. long-term care sale US in line with strong comps in Q2 2023 YTD org. net sales • Outcome Programs
Slide 5: Global Sales Q2 2024: Western Europe
Global Sales Q2 2024 Western European markets (+4.4% in Q2) Q2 org. net sales • Rental and Service continues to perform well +5.2% • Healthy net sales development in France, Italy, Ireland and Austria • Delays in short-term investment decision making in some European markets due to elections YTD org
Slide 6: Global Sales Q2 2024: Rest of the World
Global Sales Q2 2024 Rest of the World markets (+8.1% in Q2) Q2 org. net sales • Healthy growth in many markets such as Australia, Africa and Hong Kong +5.2% • Positive development in Japan in the quarter – strong distributor network in place to further realize potential • Healthy demand for capital
Slide 7: Q2 gross profit: continued margin improvement
Q2 gross profit Continued margin improvement Gross profit bridge – Q2 2024 vs. Q2 2023 (MSEK) • Continued gross margin improvement Margin development x Margin (Percent) x (Percentage point) • Healthy volumes and margin improvement in Patient Handling and Service 42.7% N/A 1.0 p.p. -0.1 p.p. 43.6% •
Slide 8: Q2 adjusted EBIT: high activity level and solid cost control
Q2 adjusted EBIT High activity level and solid cost control Adj. EBIT bridge – Q2 2024 vs. Q2 2023 (MSEK) • Adj. EBIT increased by >10% vs. Q2 2023 x Margin (Percent) • OPEX in relation to net sales continue to decline despite higher cost levels 7.8% 8.3% • Continued good cost control across the val
Slide 9: Q2 working capital and operating cash flow
Q2 working capital and operating cash flow Working capital days back to decreasing trend Operating cash flow improving sequentially Working capital days – Q1.20-Q2.24 Operating cash flow – Q1.20-Q2.24 Operating cash flow (MSEK)* Working capital days* 843 108 734 100 99 613 639 96 95 96 96 95 92 94 9
Slide 10: Q2 net debt and leverage
Q2 net debt and leverage Net debt impacted by Q2 dividend payment Continued y-o-y improvement on leverage Net debt – Q1.20-Q2.24 Leverage – Q1.20-Q2.24 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 2.8 2.8 4.8 4.7
Slide 11: Outlook 2024
Outlook 2024 Organic net sales growth for 2024 is expected to be within the Group’s target interval of 3-5% Page 11
Slide 12: Key takeaways
Key takeaways • Another solid quarter of growth and improved profitability • Continued high demand for Service and Rental globally • Activities to improve long-term profitability continues according to plan • On track towards 3-5% organic net sales growth in 2024
Slide 13: Q&A
Q&A 13
Slide 14: Financial calendar and further questions
Financial calendar Interim Report Jan-Sep 2024 October 17, 2024 Year-end Report 2024 January 30, 2025 Annual and Sustainability Report 2024 March 2025 Interim Report Jan-Mar 2025 April 29, 2025 Annual General Meeting 2025 April 29, 2025 Further questions Maria Nilsson EVP, Communication & Public Rel
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: Empowering Movement
aifJjJoO EMPOWERING MOVEMENT