Addlife Ab Class B · OMXSTO:ALIF_B
Addlife Ab Class B — Investor Day (2023)
103 slides from Addlife Ab Class B's investor day presentation, 2023
Slide 1: Capital Markets Day 2023
Capital Markets Day 2023
Slide 2: Welcome to AddLife's Capital Markets Day
Welcome to AddLife’s Capital Markets Day • Welcome & Agenda • Panel Discussion - AddLife as an owner • AddLife Business Model • Case Study - MBA • Financials & Performance Management • Future Strategy & Summary • Case study - Biolin Scientific • Q&A • Questions & Answers • Break Fredrik Dalborg Chri
Slide 3: AddLife Business Model
AddLife Business Model Fredrik Dalborg, CEO AddLife
Slide 4: AddLife strives to improve people's lives by being a leading provider in life science
AddLife strives to improve people’s lives by being a leading, value adding provider in life science
Slide 5: Proven decentralised business model
Proven decentralised business model Combine the small With the large company’s: company’s: Flexibility Resources Personal engagement Network Efficiency Long-term perspective
Slide 6: AddLife as an owner
AddLife as an owner AddLife Academy Support Industry knowledge Board appointments Long term investment perspective Business analysis
Slide 7: Strong culture and values
SIMPLICITY RESPONSIBILITY COMMITMENT INNOVATIVENESS Strong culture and values
Slide 8: Sustainability strategy - an integrated part of our business
Sustainability strategy - an integrated part of our business Targets defined and included in incentive plans in all companies Driver of sustainable offering Attractive employer and Responsible market participant • Sustainable solutions business partner • Reducing direct climate through all the steps
Slide 9: AddLife 2016
AddLife 2016 10000 9000 8000 7000 MEDTECH 6000 5000 4000 LABTECH 3000 2000 1500 1000 0 Revenues SEKm 2016 2019 2022
Slide 10: AddLife 2019
AddLife 2019 10000 9000 8000 7000 MEDTECH 6000 5000 4000 3500 LABTECH 3000 2000 1500 1000 0 Revenues SEKm 2016 2019 2022
Slide 11: AddLife 2022
AddLife 2022 10000 9100 9000 8000 7000 MEDTECH 6000 5000 4000 3500 LABTECH 3000 2000 1500 1000 0 Revenues SEKm 2016 2019 2022
Slide 12: AddLife Group 2023
AddLife Group 2023 29 2,300 80 COUNTRIES EMPLOYEES WAREHOUSE LOCATIONS 54,000 3,500 18M CUSTOMERS SUPPLIERS PRODUCTS (SKU)
Slide 13: AddLife has a diversified portfolio
AddLife has a diversified portfolio BIOMEDICAL & RESEARCH HOSPITAL Advanced Orthopaedic instruments General & interventional Plastic surgery consumables Hospital consumables General lab Critical care Cell biology Endoscopy Diagnostics Reagents Woundcare Healthcare IT DIAGNOST
Slide 14: Strong European footprint
Strong European footprint SALES PER COUNTRY R12 Q2 2023 Sweden 3% 12% UK 22% Ireland 11% Denmark Norway 6% 11% Spain 7% 10% Italy 9% 9% Finland Rest of Europe Rest of the world
Slide 15: Healthcare industry: non-cyclical and consistent growth in demand
Healthcare industry Non-cyclical and consistent growth in demand Healthcare spending & GDP growth AddLife revenue development 3,000,000 12% 10,000 10% 9,000 2,500,000 8% 8,000 7,000 2,000,000 6% 6,000 4% 1,500,000 5,000 2% 4,000 1,000,000 0% 3,000 -2% 2,000 500,000 -4% 1,000 0 -6% 0 2008 2009 2010 2
Slide 16: Growth and drivers in the medical technology market
Growth and drivers in the medical technology market European medical technology market (bn €) KEY MARKET DRIVERS 200 180 150 150 • Demographics - aging population In Vitro Diagnostics (IVD) market • Rising prevalence of chronic 100 diseases • Preventive and personalized Medical device market medicin
Slide 17: Advanced instruments combined with recurring consumables sales
Advanced instruments combined with recurring consumables sales ADVANCED INSTRUMENTS AST: determining effective PCR test Blood gas Gene Nanoscale surface treatments for sepsis patients (COVID etc.) analysers expression analysis DEVICES AND CONSUMABLES Aspirators Diagnostics Hip stem Knee Hip cup Troc
Slide 18: Close to the customer, portfolio adapted to evolving needs
Close to the customer, portfolio adapted to evolving needs Warehouse Marketing Product Manufacturing & & Services Customers development logistics sales AddLife Primary care Hospitals Clinical labs Elderly care Home care GROUP Pharma ITALIA Academia Product companies Food & Industry Veterinary
Slide 19: A differentiated value proposition creating strong relationships and pricing power
A differentiated value proposition creating strong relationships and pricing power Value add Box mover Commercial partner Value added services Productivity partner Products Sales Certified technical Clinical study support Administration Marketing service provider Managed services and
Slide 20: The growth plan is working
The growth plan is working Revenues and profits Acquired & organic growth Organic growth Strong acquired COVID growth growth Time
Slide 21: Current priorities and actions
Current priorities and actions PRIORITIES: 1. PROTECT AND IMPROVE PROFIT 2. ORGANIC GROWTH 3. 3.CASH CASHFLOW FLOW 4. ACQUISITIONS
Slide 22: Current priorities and actions
Current priorities and actions PRIORITIES ACTIONS 1. PROTECT AND IMPROVE PROFIT • Price management • Organic growth initiatives in high 2. ORGANIC GROWTH margin segments • Review of efficiency, organization 3. CASH FLOW structure and priorities in selected companies 4. ACQUISITIONS
Slide 23: Recent actions to improve profitability
Recent actions to improve profitability BACKGROUND ACTIONS • European distribution business in the • New suppliers in place and new products ophthalmology (eye surgery) segment launched • Strong profitability and attractive growth drivers • Updated, strengthened and trained sales organization in lar
Slide 24: Current priorities and actions
Current priorities and actions PRIORITIES ACTIONS 1. PROTECT AND IMPROVE PROFIT • Back to full scale commercial activities after pandemic 2. ORGANIC GROWTH • Supporting elective surgery demand • Multiple new supplier agreements 3. CASH FLOW 4. ACQUISITIONS
Slide 25: Elective surgery a strong growth driver as the healthcare system recovers
Elective surgery a strong growth driver as the healthcare system recovers Elective surgical procedures in Europe: Share of 2019 level % 100 2019 95 90 • The number of surgical procedures 85 performed is still lower than pre-pandemic 80 levels (2019) 75 • Activity gradually increasing, but still 70 e
Slide 26: Current priorities and actions
Current priorities and actions PRIORITIES ACTIONS 1. PROTECT AND IMPROVE PROFIT • Driving established AddLife cash flow metrics and methods 2. ORGANIC GROWTH • Quantifed inventory reduction targets in five largest companies in H2 3.CASH 3. CASHFLOW FLOW • Hands-on, detailed cash flow improvement ini
Slide 27: Cash conversion
Cash conversion +100% • Cash conversion lower than 70-80% ~80% previous levels due to accelerated growth in Medtech • Driven by new accounts ~35% receivable and new products in inventory Time Pre-COVID COVID New structure Medtech growth 2022 acceleration H1 2023
Slide 28: Current priorities and actions
Current priorities and actions PRIORITIES ACTIONS 1. PROTECT AND IMPROVE PROFIT • Thorough analysis of prioritized target segments completed 2. ORGANIC GROWTH • Reduced acqusition activity 2023 and 2024 (~25% of normalized cash flow) 3.3.CASH CASHFLOW FLOW • Focus on small to medium sized acquisitio
Slide 29: AddLife reiterates long term financial target
AddLife reiterates long term financial target Profit growth Profitability Dividend policy Profit growth (measured in Profitability will be at least 45 The target is a dividend corresponding EBITA) for the long-term will per cent, measured as the ratio to 30-50 percent of profit after tax. be 15 perc
Slide 30: Financials
Financials Christina Rubenhag, CFO AddLife
Slide 31: Strong revenue growth
Strong revenue growth 10,000 • Growth drivers going forward 9,000 CAGR 49% 8,000 • Acquisitions 7,000 6,000 • Organic 5,000 4,000 • Both Labtech and Medtech 3,000 2,000 • Elective surgery recovery 1,000 • Focus on organic growth in 2023 and 0 2017 2018 2019 2020 2021 2022 R12 2023 2024 Revenue incl.
Slide 32: Large share recurring revenue
Large share recurring revenue • Recurring products (devices and 8% consumables) represent the majority of revenue 13% • Service is a standalone revenue stream, but it also strengthens customer relationships and enable higher product margins • Instrument sales generates long term recurring product sa
Slide 33: EBITA-margin now higher than pre-COVID levels
EBITA-margin now higher than pre-COVID levels 1,400 18% • Gross margins protected through price 15.9% 16% 1,200 15.2% 14% increases 1,000 13.4% 12.5%12% 800 10.0% 9.9% 10% • Evolving the portfolio towards higher margin 9.8% 600 8.8% 8% products 6% 400 4% • Full commercial activities and strengthened
Slide 34: EBITA-margin per Business Area
EBITA-margin per Business Area Labtech EBITA-marginal % • Margins above pre-COVID levels 22% • Gradual margin improvements via new 17% products and increased efficiency 12.2% Medtech 12% • We have acquired higher margin 7% 9.7% businesses over the last few years 2% • Directed efforts to improve comp
Slide 35: Operating Cash flow
Operating Cash flow Operating Cash flow and Cash conversion 1200 131% 140% • Increased working capital in 2023 1000 118% 120% 100% • More orthopedics - consignment stock, 800 89% 72% 79% 80% 80% broad product range and fast deliveries 600 70% 56% 60% 400 40% 200 20% 0 0% 2016 2017 2018 2019 2020 202
Slide 36: Cash flow Q1 & Q2 2023
Cash flow Q1 & Q2 2023 • Working capital drivers 2023; • A/R and inventory driven by organic growth • Investment in future growth with new large WC -281 MSEK suppliers and products • Buffer inventory due to component shortages • Batch deliveries • Build-up to support customers affected by competitor
Slide 37: Account receivable increase driven by revenue growth
Account receivable increase driven by revenue growth DSO Due Account receivables 43 300 20% 45 42 19% 18% 18% 250 40 16% 200 14% 35 150 12% 30 100 10% 50 8% 25 6% 0 4% 20 -50 2212 2306 2% 2212 2306 -100 0% Labtech Medtech AddLife Due 0-45 days Due 45-90 days Due 91-365 days Provision Due of total A/
Slide 38: Inventory increase driven by growth in large companies
Inventory increase driven by growth in large companies 100% 100% • Actions to reduce inventory; • Drive established KPIs 75% 75% (P/WC) and improvement methods Other 50% companies Buffer stock • Specific targets for the 5 50% New suppliers largest companies 5 largest companies Growth • Detailed revi
Slide 39: Net debt and leverage
Net debt and leverage Net debt KPI's • Net debt/equity ratio just above 6,000 4.5 internal guideline of <1.0 4 5,000 3.9 • Net debt/EBITDA ambition 3.5 3.5 4,000 3 <3.0 over time 2.6 2.5 3,000 2.1 2 • Operational capital allocation strategy 2,000 0.7 1.1 1.1 1.5 1) Debt reduction 0.9 1 1,000 0.6 0.4
Slide 40: Majority of loan in EUR
Majority of loan in EUR • Main part of Net debt increase in Q2 2023 relate to Fx
Slide 41: Net debt structure
Net debt structure 7,000 6,000 5,000 • Loans enabled acquisitions in 2021 and 2022 4,000 3,000 • Traditional bank loans and long-term bank relations 2,000 1,000 • Debt to be reduced via self-generated cash flow 0 Dec -20 Dec -21 Dec -22 June -23 Overdraft less cash Current loan Non current loan Othe
Slide 42: Bank loan and covenants
Bank loan and covenants Debt structure 3,000 • Variable interest, margin + 3m Euribor / Stibor 2,500 2,000 • Average interest rate Q2 2023 5,2% 1,500 1,000 500 0 March Q2-Q4 Jan Q2-Q4 Q1 - Q4 Q1-Q2 Q3 Q4 2024 2025 2026 2027 RCF ** Bankloan (2024 +1y) * Bankloan (2026 +1y) * * Loan in EUR ** Multi-cu
Slide 43: Low CAPEX business
Low CAPEX business 300 4.0% • CAPEX light business 250 3.0% 2.9% 3.0% • CAPEX has increased in size due to 200 2.3% 2.4% acquisition of orthopedic focused 150 1.8% 1.8% 1.7% 2.0% companies 1.6% 100 1.0% • Placement of instrument ensures recurring 50 revenue and ties the customers to us 0 0.0% 2016 2
Slide 44: Performance matrix
Performance matrix EBITA-margin • Different focus dependent on financial 25% performance in individual companies 20% WC PEX* 15% WC & EBITA-margin PEX* & EBITA-margin 10% 5% EBITA-margin EBITA-margin 0% P/WC 0% 15% 30% 45% 60% 75% 90% >100% * PEX = Profit Expansion, i.e. EBITA growth
Slide 45: Performance matrix
Performance matrix EBITA-margin • Companies representing share of 25% revenue; 10% of Revenue 12% of Revenue • ~25% focus on EBITA-margin 20% • ~25% focus on working capital 15% • ~50% focus on profit expansion 14% of Revenue 37% of Revenue • Company specific incentives 10% connected to this 5% 26%
Slide 46: Performance Management
Performance Management Peter Simonsbacka, CCO AddLife
Slide 47: Business approach
Business approach Clear Financial Targets • Profit Growth – PEX 15% • Profitabilty – P/WC > 45% • Performance matrix
Slide 48: Business approach
SUSTAINABILITY PRODUCTS Business approach SERVICES ORGANIZATIONAL CHANGE ADDED VALUE Clear Financial Targets • Profit Growth – PEX 15% COMPETENCE INCREASE • Profitabilty – P/WC > 45% NEW MARKETS • Performance matrix Development IT-SYSTEM CORPORATE ACQUISITIONS LOGISTICS DIGITIZED TRADE
Slide 49: Business approach
Business approach AddLife Academy • Vision & Corporate Philosophy • AddLife Toolbox – Profitability and Business Analysis • Sales training • Soft selling • Leadership training
Slide 50: The art of optimising six parameters
The art of optimising six parameters Influence profit 1. Increase sales. Sell more! 2. Increase gross margin 3 P 1 Sales x 2 GM – Expenses Increase the prices and lower the purchase prices WC 4 5 6 3. Lower expenses. Be more cost efficient! Inventory + Account – Account Influence working capital Rec
Slide 51: Johansson Analysis – profitability and business analysis
Johansson Analysis – profitability and business analysis High The Johansson Analysis Johansson analysis is used for: Tail cutting (low profit business) Stars Market growth 1. Wild Cards Supplier 1 2. Capital allocation Supplier 2 3. Profit improvement Supplier 3 4. Business planning Dogs Cash cows L
Slide 52: Strong development
Strong development 481% P/WC 2022 Triolab Oy Sales and EBITA % 35,000 35.0 % 30,000 30.0 % 25,000 25.0 % 20,000 20.0 % 15,000 15.0 % 10,000 10.0 % 5,000 5.0 % 0 0.0 % Sales EBITA-%
Slide 53: Case study Biolin Scientific
Case study Biolin Scientific Karin Fischer, CEO Biolin Scientific Mattias Bengtsson, Business Unit Manager Biomedical & Research
Slide 54: Biolin Scientific
Biolin Scientific Office • Worldwide company providing state of the art application solutions for scientists and product developers in surface science • Offering: A broad portfolio of instruments and know- how. Develop and manufacture in Sweden and Finland • Market: Strong footprint in the academy a
Slide 55: World-leading Surface Science Instruments
World-leading Surface Science Instruments No. 1 No. 2 No. 1 MARKET MARKET MARKET POSITION POSITION POSITION
Slide 56: Application overview
Vein scent Application overview
Slide 57: Experience and Customers
Wovoin sensi 1) [Teal] [esl] tl] Experience and Customers eg —— OM SIEMENS Google Boston, Scientific wW v7) ROLEX SANOFI BE Microsoft ge intel C36) sansstrcunc HITACHI BONED ane 8 Bristol Myers Squibb stanford FUJIFILM (-] HARVARD
Slide 58: Biolin Scientific – part of AddLife
Biolin Scientific – part of AddLife • Assessment: • Focus on AddLife financial KPI’s • New strategy – Long term growth: • Focus on Industrial customers • Product development More user-friendly instruments / Increased level of automation • One design guideline A “design DNA” for all three product
Slide 59: Biolin Scientific – on its way…
Biolin Scientific – on its way… 160000 30% Profit improvement Innovation investment Global expansion 140000 25% 120000 20% 100000 80000 15% 60000 10% 40000 5% 20000 0 0% A2017 A2018 A2019 A2020 A2021 A2022 P2023 Revenue EBITA EBITA (%)
Slide 60: Biolin Scientific – strategic execution 2024 - 2026
Biolin Scientific – strategic execution 2024 - 2026 Overall objective – increase Biolin’s footprint in the industry segment and strategic application areas globally APAC - make relevant investments to accelerate the market penetration Key markets; China, Japan, Singapore and Taiwan Broaden the
Slide 61: Strengthen Attension market leading position
Strategic execution 2024–2026 Strengthen Attension market leading position • Leading position with 40% market share • Premium products, and we are well established in the academy- and industry segment • Aim: broaden the portfolio through organic growth and acquisitions to became a complete supplier
Slide 62: How to grow the industry segment for the QSense portfolio
Strategic execution 2024–2026 How to grow the industry segment for the QSense portfolio • The Attension business is well established in the industry business – good synergies for the QSense business • Strong track record in the academy sector and extensive network within the R&D community • Global i
Slide 63: Q&A
https://www.add.life/cmd2023 Q&A
Slide 64: Break
AddLite® ol] ess] [Ds] te] Break
Slide 65: Panel discussion - AddLife as an active owner
Panel discussion - AddLife as an active owner
Slide 66: AddLife as an owner
AddLife as an owner AddLife Academy Support Industry knowledge Board appointments Long term investment perspective Business analysis
Slide 67: Case study MBA
Case study MBA Carlos Pinto, MBA CEO
Slide 68: MBA Surgical Empowerment
MBA SURGICAL EMPOWERMENT Leading distribution company within medical and surgical technology, improving the quality of patients’ lives • Offering: Distribution of medical-surgical technology in Spain and Portugal • Market: Private and public hospitals • Unique Selling Points: Office Innovative and
Slide 69: Born in Asturias
Born in MBA SURGICAL Acquisition of MBA Italia Asturias EMPOWERMENT ARGANON MBA MBA Portugal a new Branding MEDICA Iberian company 1988 1999 2002 2017 2019 2021 2023 1989 2008 2015 2018 2020 2022 New offices Acquired by AddLife throughout N+1 (Alantra) Change of Spain acquires MBA management team an
Slide 70: 1.100 M€ Potential market
1.100 M€ Potential market 14.000 Doctors use our products 35 Years of sector 850 32.000 experience Annual surgeries 15% EBITA Hospital accounts +15% 4.000 Revenue Instrument growth sets in use 100 12 Products Product lines Kv 1 Kv 2 Kv 3 Kv 4 5 1 1
Slide 71: Solutions to different types of pathologies
Solutions to different types of pathologies • Thanks to our distribution agreements with the main brands in the sector, we have a wide range of solutions that allow us to cover the full spectrum of specific specialties and adequate our solutions and service to their needs. NEURO – SPINE PAEDIATRIC O
Slide 72: Market leader in selected segments
Market leader in selected segments COMPLEX PAEDIATRIC ANESTHESIA RECON ORTHOPAEDY
Slide 73: Establishing two new divisions
Establishing two new divisions • With Addlife, we have been able to increase our ability to onboard differentiated technology, as an important European partner and through synergies among the group. DIAGNOSTIC ONCOLOGY ENDOSCOPY, EXOSCOPY, AI MAPING, RADIOSURGERY NAVIGATION & PLANNING RADIOTHERAPY
Slide 74: Four pillars make our success
Four pillars make our success TALENT TRAINING 3. CASH FLOW CUSTOMERS SCIENTIFIC DEVELOPMENT
Slide 75: Current priorities and actions
Current priorities and actions TALENT • People, our priority. • Our experience, knowledge and attention to offer the best care. TRAINING • The best Talent committed with our core values. CUSTOMERS • The best Education program to the staff, with Addlife access to a top Learning Management System – SA
Slide 76: Current priorities and actions
Current priorities and actions TALENT • Training is a key element in achieving success. • More than 1,500 professionals TRAINING adhere each year to our courses, seminars and workshops. CUSTOMERS SCIENTIFIC DEVELOPMENT
Slide 77: Current priorities and actions
Current priorities and actions TALENT • Top level service considered by 80% of clients. • Average 95.2% of full order delivery TRAINING within 24 hours. • 75% of our clients, value our accessibility/availability as outstanding. CUSTOMERS 24h DELIVERY SCIENTIFIC DEVELOPMENT WITHIN URGENT ORDERS TOP L
Slide 78: Current priorities and actions
Current priorities and actions TALENT • MBA INSTITUTE was founded in 2010 • Long-term collaboration with TRAINING surgeons within clinical and scientific research • MBA INSTITUTE is always committed CUSTOMERS with training and development of health professionals SCIENTIFIC DEVELOPMENT
Slide 79: Scientific development
Scientific development Research Research support Popularization Others of knowledge Oral papers 63 Statistical analyses 150 MBA Institute Internally - developed newsletters 33 patent - protected Journal articles 31 Presentations 94 technologies 2 Books or chapters 5 Posters 16 Clinical translations
Slide 80: High level strategy - Value Driven
High level strategy- Value Driven To be a leader provider in the South European healthcare market Robotics Technology Robotics & Navigation 25,0M€ Radiosurgery FLASH 12,0M€ and 5,0M€ Robotics & Navigation Neuro Vascular Radiotherapy 60,0M€ 13,3M€ Innovation 10,0M€ Singel Use Diagnostic Market MIS Br
Slide 81: Elective surgery market recovery and post pandemic needs
Elective surgery market recovery and post pandemic needs • In 2023 the Elective surgery it’s recovering to • In Spain the autonomic communities have previous 2019 levels the competence in health Orthopedic is the specialty that accumulates the most patients % Patients on the surgical waiting list pe
Slide 82: THANK YOU
AddLife® THANK YOU MBA SURGICAL EMPOWERMENT Www.mba.eu
Slide 83: Future strategy
Future strategy Fredrik Dalborg, CEO AddLife
Slide 84: Starting point for the strategic direction
Starting point for the strategic direction A stronger AddLife • Broader and stronger business • Unique European coverage • Significant growth opportunities Dedicated, experienced and energetic team!
Slide 85: Market trends and implications
Market trends and implications MARKET TRENDS - CURRENT AND EXPECTED IMPLICATIONS FOR ADDLIFE Post pandemic environment Increased number of surgical Elective surgery recovering procedures Staffing shortage, healthcare capacity Increased demand for time/resource constraints saving products and serv
Slide 86: Competitive situation creates opportunities
Competitive situation creates opportunities PROFILE GLOBAL PRODUCT MULTINATIONAL SMALLER LOCAL COMPANIES DISTRIBUTORS DISTRIBUTORS • Develop & manufacture • Acquisitions part of • Large number of local products growth strategy distributors DESCRIPTION • Mixed go-to-market • None with full European •
Slide 87: Risks and mitigation
Risks and mitigation CHALLENGES/RISKS MITIGATION Losing suppliers Diversifying, strong service, contingency plans Budget constraints, reimbursement changes Value adding service, evolution of product portfolio Acquisition risk Selective acquisitions based on market knowledge, active ownership Failing
Slide 88: Vision, financial targets and strategy
VISION Improve people's lives by being a leading, value creating provider in life science FINANCIAL TARGETS PROFIT GROWTH PROFITABILITY DIVIDEND POLICY PEX P/WC STRATEGY GROW THROUGH LEAD THE MARKET BE AGILE AND MOBILE ACQUISITIONS STRATEGIC INITIATIVES EUROPEAN COVERAGE DIGITAL SOLUTIONS VALUE (PRO
Slide 89: Strategic direction
LEAD THE MARKET BE AGILE AND MOBILE GROW THROUGH ACQUISITIONS STRATEGIC DIRECTION • Create value and build positions in • Our subsidiaries should be flexible and • We continuously search for new life selected niches agile so they can seize new business science companies with leading niche • Be quali
Slide 90: Strategic initiatives
EUROPEAN COVERAGE DIGITAL SOLUTIONS VALUE SELLING (PRODUCTIVITY) STRATEGIC INITIATIVES • Leverage position as a European • Digital solutions offering • Support health providers to perform partner to suppliers and customers • Digital sales and tools for internal more and improved procedures with effi
Slide 91: European coverage creating growth opportunities
European coverage creating growth opportunities CASE STUDY • Territories: Italy, Sweden, Finland, Denmark, Norway • Business Unit: Biomedical & Research • Products: Industry leading DNA sequencing instruments, reagents and related products • Collaboration: Euroclone (Italy) signed a multi-year distr
Slide 92: European coverage creating growth opportunities
European coverage creating growth opportunities CASE STUDY • Territories: UK, Ireland, Sweden, Finland, Denmark, Norway, Benelux • Business Unit: Hospital • Products: Industry leading provider of oncology, endovascular therapy and vascular access products • Collaboration: Building on the success of
Slide 93: Prioritised growth segments in Diagnostics
Prioritised growth segments in Diagnostics Share of AddLife’s Addressable Market Prioritised sales H1 Expected Market CAGR segment 2023 margins (USDm) 2023-2028 Description & rationale Microbiology 2% >12% 55.000 300 13.6% New technologies are appearing. Molecular diagnostics New technologies are ap
Slide 94: Prioritised growth segments in Biomedical & Research
Prioritised growth segments in Biomedical & Research Share of AddLife’s Addressable Market Prioritised sales H1 Expected Market CAGR segment 2023 margins (USDm) 2023-2028 Description & rationale Molecular biology 3% >12% 23.000 22 800 8,7% New technologies are market drivers. BIOMEDICAL & RESEARCH C
Slide 95: Prioritised growth segments in Hospital
Prioritised growth segments in Hospital Share of AddLife’s Addressable Market Prioritised sales H1 Expected Market CAGR segment 2023 margins (USDm) 2023-2028 Description & rationale High demand, interesting sub-segments, e.g., Surgery 10% >10% 10.000 9 700 6.7% ENT (own products) or bariatric surger
Slide 96: Prioritised growth segments in Homecare
Prioritised growth segments in Homecare Share of AddLife’s Addressable Market Prioritised sales H1 Expected Market CAGR segment 2023 margins (USDm) 2023-2028 Description & rationale Demographic changes is a market driver for Construction 1% 6-8% 1.000 1 400 11.6% increased need for accessible bathro
Slide 97: Acquisition criteria
Acquisition criteria Company Product offering Financials Geographical footprint • Established well-managed • Focused companies • Preferred size of • European markets businesses operating in our prioritized <50 MEUR (turnover), • Ambition to strengthen • Key individuals should be segments sweet spot
Slide 98: Acquisition targets - Entrepreneurial SMEs
Acquisition targets - Entrepreneurial SMEs Benefits for both targets and investors ATTRACTIVE ACQUISITION TARGETS • Proven businesses: Profitable, fast • Ability to identify and assess through ADDLIFE HAS UNIQUE ACCESS growing and customer focused industry network, segment and geographic expertise •
Slide 99: Structured acquisition process
Structured acquisition process Strategy Identification Evaluation Transaction Integration Active ownership • Successful • Leverage company • Geographical • Fair valuation – not • A decentralised • Active and entrepreneurial network market knowledge highest bidder business approach- dedicated small a
Slide 100: Q&A
https://www.add.life/cmd2023 Q&A
Slide 101: Summary
Summary • Growth strategy is working - strong organic growth • Profit and cash flow improvement actions being implemented • Financial targets reiterated • Ambition to reach Net debt/EBITDA < 3.0 • Focused acquisition strategy
Slide 102: Forward looking information
Forward looking information This document contains forward-looking information based on the current expectations of the AddLife management. Although management deems that the expectations presented by such forward-looking information are reasonable, no guarantee can be given that these expectations
Slide 103: Thank you – now lunch!
Thank you – now lunch!