Slide 1: Q3 presentation October 2024
Together, we improve animal health through science and technology for better lives Q3 presentation October 2024
Slide 2: Q3 Highlights
Q3 Highlights / Continued double-digit organic growth and margin expansion / Strong adjusted EBITA growth / Improved cash flow from operations / Entered new fast-growing MedTech niche Page 2
Slide 3: Double-digit organic growth and margin expansion
Double-digit organic growth and margin expansion Revenue and Adj. EBITA Adj EBITA (EURm) Revenue (EURm) x% Adj EBITA margin x% Organic growth (%) Q3 development Net revenue +10% 100 35 91.3 91.0 / 10% revenue growth to EUR 87.6m 90 88.1 87.6 81.3 82.5 30 79.9 80 24.7 / 10% organic growth with strong
Slide 4: Specialty Pharma
Specialty Pharma 13% Organic growth / Strong organic growth 13% with good growth across all therapeutic areas / YTD one third of organic growth generated from cross-selling and 24% Adj. EBITA growth internationalisation efforts / Positive margin development driven by continued focus on integration a
Slide 5: MedTech
MedTech 4% Organic growth / Organic growth of 4% in a slower US surgery market 19% / Continued high-single digit growth in Europe and APAC Adj. EBITA growth / Margin improved as AOP sales is spread more evenly over the year / Completed 37 trainings with 482 participants in the quarter Revenue and Ad
Slide 6: Veterinary Services
Veterinary Services 17% Organic growth / Strong 17% organic growth with positive momentum across key geographies 34% Adj. EBITA growth / 250 new members reaching 8,200 members by end of Q3 / Improved profitability supported by higher penetration of services in member clinics and benefits of scale Re
Slide 7: Diagnostics
Diagnostics -5% Organic decline / Organic decline 5% in unchanged market conditions -64% / Low profitability reflects investments in the roll-out of new Adj. EBITA decline parasitology test, diversifying the business into companion animal market Revenue and Adj. EBITA 6 5.3 5 5.3 5.2 4.9 5.0 5 4 4 3
Slide 8: iM3 – acquiring a global leader in veterinary dentistry
iM3 – acquiring a global leader in veterinary dentistry Global leader in / Entering a new fast-growing MedTech niche veterinary MedTech / A milestone in our journey to create a global leader in veterinary MedTech / iM3 is the only global veterinary specialist in dental – platform for growth / Strong
Slide 9: iM3 - company overview
iM3 - company overview Sales split by product category1 32% recurring revenue2 % of sales Dental units Instruments / hand pieces Small equipment / Family-owned business established in Australia 30 years ago 22% 9% 7% / Sales in over 40 countries, direct to veterinary clinics and via distributors X-r
Slide 10: Third Quarter Financials
Third Quarter Financials Page 10
Slide 11: Q3 Income Statement
EURm Q3 2024 Q3 2023 Q3 Income Statement July – September July – September Adjusted EBITA 21.9 18.3 / Operating profit (EBIT) EUR 10.1m (9.9) Adjusted EBITA margin (%) 25.0% 22.9% / Items affecting comparability EUR -6.5m (-2.6) Items affecting comparability -6.5 -2.6 • Litigation related costs in M
Slide 12: Q3 Cash Flow
EURm Q3 2024 July – Q3 2023 July – Q3 Cash Flow September September EBIT 10.1 9.9 / NWC EUR 80.8m at 23% of revenue (EUR 82.0m end of June) Cash flow from operating activities / Inventory declined by EUR 1.1m led by MedTech 18.3 11.7 before change in NWC / Account receivables declined by EUR 1.7m as
Slide 13: Net Debt and Leverage
Net Debt and Leverage Leverage Net Debt (EUR m) 340 341 / Net debt per 30 September 2024 EUR 140.3m 293 296 288 285 287 / Cash and cash equivalents EUR 39.2m 267 4.3x 258 4.1x / Net Debt / LTM Pro-forma EBITDA 1.3x 3.6x 3.1x 3.1x 3.0x 3.0x 2.9x 3.0x 144 140 1.3x 1.4x 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q
Slide 14: Concluding remarks
Concluding remarks / Continued double-digit growth, margin expansion and improved cash flow in the third quarter / Near-term priorities / Uphold strong organic growth / Operational improvements / Create the best place to work / Onboard iM3 – continue to advance M&A pipeline Page 14
Slide 15: Q&A
Q&A Page 15