Slide 1: Interim report AddLife Q1
Interim report AddLife Q1 24 April 2024
Slide 2: Positive profitability trend
Positive profitability trend • Profitability in a positive trend in line with our priorities • Labtech revenue development was temporarily weaker after a strong Q4 2023, but the companies were able to defend margins • Medtech delivered strong growth and improved profitability1 • Profitability improv
Slide 3: Net sales & EBITA Q1
Net sales & EBITA Q1 Net sales • Net Sales SEK 2,570m: +5% • Organic currency adjusted growth: +4% EBITA • EBITA: SEK 291m -20% EBITA-margin* • EBITA margin: 11.3% (14.9). Excluding one- 12,0% offs in Q1 2024 and reversal of contingent 11,5% 11,5% 11,5% considerations in Q1 2023, 11.5% (11.5) 11,0%
Slide 4: Profit and loss Q1, +5% EBITA growth excl one-offs
Profit and loss Q1, +5% EBITA growth excl one-offs • Sales growth, +5% • Stable gross margin • Other income and expenses last year included reversal of contingent consideration and capitalization of R&D in Camanio One-offs • EBITA growth was 5% excluding reversal of contingent considerations and one
Slide 5: Operating cash flow
Operating cash flow Operating cash flow per quarter 500 450 • Q1 cash flow follows seasonal pattern 400 350 • Inventory reduction continues 300 250 • Sales growth drives Accounts Receivable 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023 2024
Slide 6: Cash flow Q1
Cash flow Q1 • Operating cash flow SEK 97m (105) • Working capital SEK -134m (-150) • Focus on inventory reduction initiatives has been successful – continued focus in 2024 • Increased A/R driven primarily by continued growth • Reduced inventory also reduces Accounts Payable
Slide 7: Change of net debt
Change of net debt • Net debt increased by SEK 245m in Q1 2024 • Majority of loan in EUR – negative Fx impact in Q1 • Increase of leasing liabilities (new and renewed lease agreements) impact Net debt
Slide 8: Net debt and leverage
Net debt and leverage Net debt KPI's • Net debt / EBITDA 3.8 6 000 4,5 4 • Net debt increased by SEK 245m in Q1 3,9 3,9 5 500 3,5 3,7 3,5 3,8 3,5 2024 due to Fx and leasing 5 000 3 2,5 • L12month EBITDA now excludes reversal of 4 500 2 contingent consideration of SEK 83m from 4 000 1,5 Q1 2023 1,1 1
Slide 9: Bank loan and covenants
Bank loan and covenants Debt structure • Variable interest, margin +3m 3 000 Euribor, one quarter delay 2 000 1 000 • Average interest rate Q1 2024 5.9% 0 Q1-Q4 Q1 Q2-Q4 Q1 - Q4 Q1-Q2 Q3 Q4 • Dialogue to be initiated regarding the 2024 2025 2026 2027 the short term loans due in Q1 2025, RCF Bankloan
Slide 10: Labtech Q1
Labtech Q1 • Organic, currency adjusted growth -5%, Weakness in month of March, likely temporary • Stable EBITA margin at 11.5% (12.7) • Maintained good cost control, defending gross margins despite decrease in volume • Delay in instrument projects, expected later in the year. • Some uncertainty r
Slide 11: Medtech Q1
Medtech Q1 • Strong organic, currency adjusted growth: +9% • Elevated elective surgery activity, expected to continue to support growth • Profit margin improvements across most Medtech companies • The actions taken to improve profitability in AddVision has yielded results • The closure of Camanio is
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 • In eye surgery, the combination of stable sales and reduced costs clearly improved profitability • The organisation has stabilised and the product portfolio has been updated and is now competitive • The companies in Poland and Switzerland are experiencing stron
Slide 14: Active work to improve profitability
Active work to improve profitability • Progressing according to plan • Trade union negotiations completed in February • Restructuring cost of 6 M SEK recognized in Q1 • All customers are in process to shift to other suppliers • Cost reductions will start in Q2 and be completed end of Q3
Slide 15: Number of elective surgery procedures growing
Number of elective surgery procedures growing Elective surgical procedures in Europe: Share of 2019 level % 110 • The number of surgical procedures performed 100 2019 is still lower than pre-pandemic levels (2019) 90 • Activity gradually increasing, activity above 2019 levels needed to reduce waitin
Slide 16: Summary and outlook
Summary and outlook • The companies in the AddLife family are performing very well • Favorable market conditions • Potecting and improving profit is the highest priority • Profitability improvement initiatives are progressing well, already resulting in tangible improvements • Cash flow efforts conti
Slide 17: Q&A Christina Rubenhag CFO
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