Slide 1: Arjo Q3 Report 2024
ARJO Q3 REPORT 2024 October 17, 2024 Joacim Lindoff, President & CEO Niclas Sjöswärd, CFO 1
Slide 2: Agenda
Business update – Q3 2024 Financials in detail Agenda Outlook 2024 Key takeaways Q&A
Slide 3: Q3 highlights
Q3 highlights Continued growth but weaker demand in Europe Continued growth but lower than expected • Continued solid demand within Service and Rental globally Net sales Gross • Lower demand for capital equipment in Europe organic growth margin • Continued growth in US and Canada Continued gross mar
Slide 4: North America Q3 2024
North America Q3 2024 Profitable growth journey in Canada continues Q3 org. net sales • Service, Rental and Capital all perform well • Healthy mix of acute care vs. long-term care sales continues +2.4% Another quarter of growth in the US • Continued healthy development within Rental and Service, YTD
Slide 5: Global Sales Q3 2024: Western European markets
Global Sales Q3 2024 Western European markets (-0.5% in Q3) Q3 org. net sales • Weaker demand for capital equipment in Western Europe, -0.2% especially UK, France and Netherlands, during the quarter • Low visibility related to capital spend in the coming quarters • Rental and Service continues to de
Slide 6: Global Sales Q3 2024: Rest of the World markets
Global Sales Q3 2024 Rest of the World markets (+2.5% in Q3) Q3 org. net sales • Healthy demand in Australia, Africa and India -0.2% • Significantly weaker development in China in the quarter, set to continue • Japan behind plan but good momentum in new organizational setup YTD org. net sales • Low
Slide 7: Q3 gross profit: Continued margin improvement
Q3 gross profit Continued margin improvement Gross profit bridge – Q3 2024 vs. Q3 2023 (MSEK) • Another quarter with gross margin improvement y-o-y Margin development x Margin (Percent) x (Percentage point) • Margin expansion held back by lower capital equipment volumes, lower utilization in the Gro
Slide 8: Q3 adjusted EBIT: High activity level and solid cost control
Q3 adjusted EBIT High activity level and solid cost control Adj. EBIT bridge – Q3 2024 vs. Q3 2023 (MSEK) • Adj. EBIT decreasing vs. Q3 2023, in part due to x Margin (Percent) negative FX effects • Continued good cost control across the value chain 6.7% 6.0% • Negative impact from FX in other operat
Slide 9: Q3 working capital and operating cash flow
Q3 working capital and operating cash flow Positive working capital days trend continues Healthy operating cash flow Working capital days – Q1.20-Q3.24 Operating cash flow – Q1.20-Q3.24 Operating cash flow (MSEK)* Working capital days* 843 108 734 100 99 613 639 96 95 96 96 95 92 94 92 565 89 91 525
Slide 10: Q3 net debt and leverage
Q3 net debt and leverage Decreasing net debt Continued leverage improvement – all time low Net debt – Q1.20-Q3.24 Leverage – Q1.20-Q3.24 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 5.2 2.9 5.0 5.0 5.0 2.8 2.8 2.8 2.7 2.7 2.7 4.8 4.7 2.
Slide 11: Two acquisitions strengthening our positions in rental and diagnostics in Europe
Two acquisitions strengthening our positions in rental and diagnostics in Europe • Acquisition of French diagnostics distribution company Tech Med and German rental provider GerroMed • Combined purchase price of approximately 70 MSEK • Smaller positive contribution expected from 2025 onwards • Good
Slide 12: Outlook 2024
Outlook 2024 Organic net sales growth for 2024 is expected to be within the Group’s target interval of 3-5% Page 12
Slide 13: Key takeaways
Key takeaways • Continued growth and gross margin improvement • Q3 held back by weaker demand in Europe – low visibility regarding capital spend in Europe the coming quarters • Acceleration of activities to adapt cost base and secure profitability improvements both short and long term • High activit
Slide 14: Q&A
Q&A ao
Slide 15: Financial calendar and further questions
Financial calendar Year-end Report 2024 January 30, 2025 Capital Market update January 30, 2025 Annual and Sustainability Report 2024 April 2025 Interim Report Jan-Mar 2025 April 29, 2025 Annual General Meeting 2025 April 29, 2025 Further questions Maria Nilsson EVP, Communication & Public Relations
Slide 16: 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 17: Empowering Movement
aifJjJoO EMPOWERING MOVEMENT