Embla Medical Hf · OMXCOP:EMBLA
Embla Medical Hf — Q3 2024 Earnings Presentation
14 slides from Embla Medical Hf's earnings presentation, Oct 22, 2024
Slide 1: Q3 2024 Conference Call
A leading global provider of innovative mobility solutions Q3 2024 Conference Call Sveinn Sölvason, President and CEO G. Arna Sveinsdottir, CFO October 22, 2024 0
Slide 2: Key highlights for the third quarter 2024
Key highlights for the third quarter 2024 Strong momentum continues; Full year guidance remains unchanged Q3 Performance Operations External Organic sales R&D progress in Q3 US Medicare Expands Access to Bionics growth ✓ NAVii® and Icon® in limited launch • As of September 1st 2024 less-mobile K2 pa
Slide 3: US Medicare Expands Access to Advanced Bionics for K2 patients as of September 1, 2024
US Medicare Expands Access to Advanced Bionics for K2 patients as of September 1, 2024 Coverage Expansion Key Facts ▪ The Big Takeaway: Less-mobile patients get access to microprocessor-controlled knees (MPKs) ▪ Why? Clinical research shows MPKs provide significant benefits to less-mobile amputees ▪
Slide 4: Expanding US Medicare coverage to K2 patients represents a Mid-to-Long-Term Growth Opportunity
Expanding US Medicare coverage to K2 patients represents a Mid-to-Long-Term Growth Opportunity for Embla Medical Classification of functional levels for prosthetic users Not in scope for extended In scope for extended K3/K4 lower extremity amputees under existing Medicare coverage coverage coverage
Slide 5: Continued strong momentum in EMEA; Sales in Americas remained soft
Continued strong momentum in EMEA driven by Prosthetics & Neuro Orthotics and Patient Care; Sales in Americas remained soft APAC APAC Q3: +6% Americas Q3: +2% 20 15% 9% 110 10% 18 10% 6% 10% 16 5% USDm 100 6% 5% 14 0% USDm 5% 0% 90 -3% 1% 2% 12 -5% Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 80 0% 0% Sales (USD)
Slide 6: Prosthetics & Neuro Orthotics sales grew +9% organic in Q3
Prosthetics & Neuro Orthotics sales grew +9% organic in Q3 driven by strong volume growth and increased fitting of high-end solutions % of total sales Q3 Year-to-date sales Year-to-date growth Q3 Highlights ▪ EMEA: Continued strong momentum in EMEA driven by volume growth across most 50% 214M 332 8%
Slide 7: Bracing & Supports grew moderately for the quarter
Bracing & Supports grew moderately for the quarter; strong performance in APAC but softer in other markets % of total sales Q3 Year-to-date sales Year-to-date growth Q3 Highlights ▪ EMEA/Americas: Soft performance in both EMEA and Americas due to challenging market 214M 112 1% dynamics in selected p
Slide 8: Patient Care business delivered +9% organically in Q3
Patient Care business delivered +9% organically in Q3 driven by strong volume growth and positive mix effect, especially in EMEA and Australia % of total sales Q3 Year-to-date sales Year-to-date growth Q3 Highlights ▪ EMEA: Strong performance in EMEA driven by 33% strong contribution across key mark
Slide 9: EBITDA margin expanding by 3%-points to 22% for the quarter
EBITDA margin expanding by 3%-points to 22% for the quarter vs. Q3’23; Expansion driven by higher Gross Profit margin and modest OPEX growth Gross Profit and Gross Profit margin Highlights USD million 63% 63% ▪ Gross Profit: Gross profit margin was 63% in the quarter compared to 62% 62% 62% 500 65%
Slide 10: Strong free cash flow during the quarter
Strong free cash flow during the quarter; Mainly benefitting from increased cash from operations Capital expenditures and % of sales Free cash flow and % of sales Net Interest-Bearing Debt and Leverage USD million on actual rate USD million on actual rate USD million on actual rate 482 470 460 11 33
Slide 11: Outlook for 2024 unchanged
Outlook for 2024 unchanged Guidance as of Guidance as of 9M 2024 Sept 2024 July 2024 Sales growth 6-8% +7% 6-8% Organic EBITDA margin Before special ~20% 20.1% ~20% items For modeling purposes: Special items 4 4 4 In USD million CAPEX 4-5% 5% ~4% % of sales Tax ~24% 23% ~24% Effective tax rate 10
Slide 12: Q&A: Key message from Q3 2024
Q&A Key message from Q3 2024 1. Our Growth ‘27 strategy is well on track with strong financial performance. Our FY 2024 Guidance remains unchanged 2. Continued good progress on our strategic initiatives with our Neuro Orthotics business (F&G) tracking according to plan and ForMotion brand being roll
Slide 13: Contact our Investor Relations
Contact our Investor Relations Financial calendar and events October 22 2024 Interim report Q3 2024 October 23 2024 Q3 Road Show Copenhagen (Nordea) October 23 2024 Q3 presentation and Q&A virtual (HCA Capital) October 24 2024 Q3 Road Show Paris (SEB) October 25 2024 Q3 Road Show Frankfurt (SEB) Oct
Slide 14: Forward-looking statement
Forward-looking statement This presentation contains forward-looking statements, which reflect the Management’s current views with respect to certain future events and financial performance. Although the statements are based upon estimates the Management believes to be reasonable, there is no assura