Slide 1: Interim report AddLife Q3
Interim report AddLife Q3 23 October 2024
Slide 2: Organic growth and stable margin with continued profitability improvement
Organic growth and stable margin with continued profitability improvement • Seasonally lower customer activity during the summer months • Sales increased by 1%. Organic and currency adjusted growth 3% Healthy growth in relation to market • Labtech: Consumable sales stable and growing, slow instrum
Slide 3: Profit & Loss Q3 – adjusted EBITA stable
Profit & Loss Q3 – adjusted EBITA stable • Sales growth, +1% • Organic growth +3% • Acquired growth +1% • Improved gross margin due to product mix and price increases • Opex +2% includes acquired opex, transaction costs and restructuring cost Camanio, total SEK 9m • Other income & expenses last year
Slide 4: Accumulated operating cash flow improving
Accumulated operating cash flow improving Operating Cash flow and Cash conversion Operating cash flow per quarter 1200 131% 140% 500 1000 118% 120% 450 100% 400 800 89% 350 79% 80% 81% 80% 72% 76% 300 600 70% 60% 250 400 200 40% 138 137 150 200 20% 100 50 0 0% 0 2016 2017 2018 2019 2020 2021 2022 20
Slide 5: Cash flow Q3
Cash flow Q3 • Operating cash flow SEK 137m (138) • Working capital SEK -73m (-47) • Increased inventory driven by sales growth, new suppliers/products and instruments for Q4 delivery • Account payable decreased • Acquisition of BonsaiLab
Slide 6: Inventory / sales and working capital / sales
Inventory / sales and working capital / sales AddLife • Working capital in the third quarter 30% normally impacted by vacation with 28% slower payments from customers but 27% 26% 26% scheduled payments to suppliers 25% 25% 24% 24% 24% 22% 23% 22% 23% • Focus on inventory reduction 20% 20% initiative
Slide 7: Change of net debt
Change of net debt • Net debt is unchanged during the quarter • Acquisition of BonsaiLab, paid purchase price and contingent consideration, total SEK 115m • Majority of loan in EUR – small positive Fx impact in Q3
Slide 8: Net debt and leverage
Net debt and leverage Net debt KPI's 6 000 4,5 • Net debt / EBITDA 3.6 3,9 3,9 4 5 500 3,5 3,7 3,5 3,8 3,6 3,6 3,5 • Net debt/equity ratio just above internal 5 000 3 guideline of <1.0 2,5 4 500 2 • Debt to be reduced via self-generated cash 4 000 1,5 flow 1,1 1,0 1,1 1,1 1,0 1,1 1,0 1,0 1 3 500 0,5
Slide 9: Bank loan and covenants
Bank loan and covenants Debt structure, incl utilization of extension options • Variable interest, margin +3m 3000 2000 Euribor, one quarter delay 1000 • Average interest rate Q3 2024 5.7% 0 • Short term loans due in Q1 2025 Q4 Q1 - Q4 Q1 - Q4 Q1 Q2 Q3 Q4 2024 2025 2026 2027 RCF Bankloan * Bankloan
Slide 10: Labtech Q3
Labtech Q3 • Organic, currency adjusted growth +3%, • Consumables sales have a high degree of stability • High margin instrument sales lower Instrument investment projects delayed, not cancelled New advanced product launches slower than expected • Adjusted1 EBITA margin at 8.9% (10.2) • Several
Slide 11: Medtech Q3
Medtech Q3 • Organic, currency adjusted growth: +3% • Number of elective surgeries low during summer months • Patient waiting lists have not decreased during the quarter • Adjusted1 EBITA increased 7%, margin strengthened to 10.7% (10.0%). Performance improvements across most companies • Profitabili
Slide 12: Priorities and actions 2024
Priorities and actions 2024 PRIORITIES: 1. PROTECT AND IMPROVE PROFIT 2. ORGANIC GROWTH 3. 3.CASH CASHFLOW FLOW 4. ACQUISITIONS
Slide 13: Active work to improve profitability
Active work to improve profitability • Closure of Camanio completed during Q3 • All users migrated to other solutions • All cost gone by Q4 • Full year cost 2023 SEK 60 m, cash flow effect SEK 90 m
Slide 14: Acquisition BonsaiLab
Acquisition BonsaiLab • AddLife acquires BonsaiLab, a leading Spanish distributor in the field of cell and molecular biology • Molecular biology, a fast-growing and profitable segment, is a prioritized growth segment for AddLife • Business developing well, favourable market conditions and good profi
Slide 15: Summary and outlook
Summary and outlook • Stable revenue growth in the third quarter Slower market growth in the quarter • Some delays in capital investments and new product launches temporarily reduced margins in Labtech Delayed projects, not lost • Medtech margins continue to strengthen Adjusted1 YTD EBITA marg
Slide 16: 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
Slide 17: 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 18: Active work to improve profitability
Active work to improve profitability • Restructuring resulting in a return to decentralized business model and significantly reduced cost (>SEK 20 m annually) Dismantled central functions and efficiency improvements in the companies • Product portfolio and sales efforts focused on profitable segme