Slide 1: 3Q presentation
3Q presentation November 2021
Slide 2: Today’s Presenters
Today’s Presenters / Dr. Fredrik Ullman / Chief Executive Officer / Henrik Halvorsen / Chief Financial Officer Page 2
Slide 3: Third Quarter Results
Third Quarter Results Page 3
Slide 4: Business highlights in 3Q
Business highlights in 3Q 99% Revenue growth / 3Q total revenue growth 99% / Activity accelerated towards end of 3Q after low season summer months / 3Q organic growth 5.5% giving YTD 21.7% 5.5% Organic revenue growth / Excluding Diagnostics organic revenue growth in 3Q was 13.8% / Lower adjusted EBI
Slide 5: Group Financial Highlights – Revenue and Adj. EBITA
Group Financial Highlights – Revenue and Adj. EBITA Revenue and Adj. EBITA Comments Adj. EBITA margin Revenue (EUR m) / 3Q revenue EUR 41.5m (20.8) giving 9M EUR 124.6m (43.3) / 3Q Adj. EBITA EUR 11.6m (7.7), with 152.6 Adj. EBITA margin 27.9% (37.1%) +188% / 9M Adj. EBITA EUR 41.4m (13.8), 124.6 wi
Slide 6: Group Financial Highlights – Organic Growth
Group Financial Highlights – Organic Growth 3Q21 organic vs acquired growth Comments / 3Q21 total revenue up 99% vs 3Q20 Revenue (EUR m) / Organic growth of 5.5%, mainly driven by MedTech, lowered by diagnostics 99% 41.5 / Acquired growth of 96.3%, mainly 0.5 Nextmune (Specialty Pharma) 20.0 / FX ne
Slide 7: Quarterly and LTM revenue and adjusted EBITA
Quarterly and LTM revenue Quarterly and LTM adjusted EBITA • 3Q21 revenue EUR 41.5m after 2Q21 EUR 39m • 3Q21 adj. EBITA in-line with 2Q21 • LTM revenue EUR 152.6m, up from EUR 131.9m in Q2 • A number of non-recurring impacts hitting profitability in MedTech • VOI fully consolidated from Q3, Nextmun
Slide 8: Specialty Pharma – Solid growth and strong margin
Specialty Pharma – Solid growth and strong margin Revenue and Adj. EBITA Comments Adj. EBITA margin Revenue (EUR m) 53.4 48.4 / Continued solid underlying organic growth of above 10% in 3Q 17.0 33.0% 32.5% / Strong Adj. EBITA margin 33.9% 33.9% 4.9 28.3% / Acquisition of Laboratoire de 3Q20 3Q21 9M2
Slide 9: MedTech – Continued strong organic growth
MedTech – Continued strong organic growth Revenue and Adj. EBITA Comments Adj. EBITA margin Revenue (EUR m) / Organic revenue growth 15.9% in 3Q 60 60 60 57.1 44.6 giving 9M 25.8% 40 40 40 31.2 / Lower sales activities in July and 36.2% 18.7 35.9% August, picked up in September 20 11.5 14.6 20 20 34
Slide 10: Diagnostics – Normalising post-COVID environment
Diagnostics – Normalising post-COVID environment Revenue and Adj. EBITA Comments Adj. EBITA margin Revenue (EUR m) / 3Q organic decline -17.9% giving 9M 30 30 30 26.0 25.8% after 2Q 8% and 1Q 102% 19.5 20.7 20 20 20 / Solid growth in core business PCR 14.2 32.3% and ELISA tests 10 5.5 5.2 10 32.5% 1
Slide 11: Veterinary Services – Enter expansion phase
Veterinary Services – Enter expansion phase Revenue and Adj. EBITA Comments Adj. EBITA margin Revenue 37.8% / 3Q organic growth 7.6% giving 9M 20 20 36.7% 20 36.0% 16.1 9.6% after 2Q 14% and 1Q 8% 15 15 12.1 15 14.5 35.0% 33.1% 32.7% / Member growth accelerating in 10.4 10 10 10 September after slow
Slide 12: Thirteen acquisitions YTD with combined annual revenue of EUR 30m
Thirteen acquisitions YTD with combined annual revenue of EUR 30m Acquisition Segment Geography Annual Sales Strategic Rationale Diagnostics Europe EUR 1.3m Strengthen position in livestock diagnostics 1Q Acquisition of allergy business in Spain strengthening Specialty Pharma Europe EUR 0.5m market
Slide 13: This is LDCA
This is / French pet dermatology specialist founded 2003 / Proprietary product formulas developed by a team of veterinary dermatologists and pharmaceutical specialists / Products distributed in 45 countries, revenue ~EUR 5m / Bolsters offering of dermatology products and complements our expanding no
Slide 14: This is Freelance Surgical
This is / Leading provider of veterinary surgical products in UK / 17 employees and revenues ~GBP 6m annually / Family owned business founded in 1987, based in Bristol / Distributes and markets high-quality surgical products / Serves 1,500 veterinary clinics in UK / Newly built training facility in
Slide 15: Partnership with Angany to develop novel vaccines for companion animals
Partnership with Angany to develop novel vaccines for allergy and atopic dermatitis in companion animals / Angany is a late pre-clinical stage biotech company dedicated to allergy treatments and immunotherapy / Partnership to develop faster acting and more effective vaccines for the long-term preven
Slide 16: Co-ownership program veterinary clinics
Co-ownership program veterinary clinics Strong strategic rationale / Additional service offered to clinic members / Significant revenue potential in existing business / Drive in-clinic growth and profitability through existing VetFamily services / Facilitating faster innovation across Vimian / High
Slide 17: Third Quarter Financials
Third Quarter Financials Page 17
Slide 18: Income Statement
Income Statement EUR k 2021 2020 2021 2020 2020 July – July – Jan- Jan - Jan-Dec Sept Sept Sept Sept / Revenue increased to EUR 41.5m in 3Q, up from EUR Revenue 41,486 20,799 124,649 43,299 71,228 20.8m last year Adjusted EBITA 11,564 7,724 41,440 13,823 23,285 / Adj. EBITA increased to EUR 11.6m in
Slide 19: Cash Flow and Financial Position
Percent 2021 Jan-Sep 2020 Jan-Sep Delta Cash Flow and Financial Position Cash Conversion 68% 44% +24 ppt / Cash conversion of 68% in 9M 2021, 44% in 9M 2020 / Strong increase in cash flow from operating activities, mainly driven by strong growth EUR k 2021 Jan-Sep 2020 Jan-Sep Delta / Cash flow from
Slide 20: Net Working Capital
Net Working Capital Net Working Capital (EUR m) / Slight increase in NWC in 3Q 34,2 32,9 32,8 / Inventory up slightly, mainly reflecting continued inventory build-up in new markets for MedTech 27,7 / Accrued expenses for IPO costs largely paid during 3Q, with negative impact on NWC / Tax liability i
Slide 21: Net Debt and Leverage
Net Debt and Leverage Leverage Net Debt (EUR m) 100 4.0x / Net debt at the end of the period amounted to EUR 76.2m • Cash on hand utilized to finance 3Q acquisitions 80 76.2 / Net debt over PF LTM adj. EBITDA of 1.3x 3.0x 58.6 • Up from 1.0x at end of 2Q, reflecting use of internal cash 60 to fund a
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Slide 23: Q&A
- vimian” Q&A Page 23