Slide 1: Q3 presentation November 2023
Together, we improve animal health through science and technology for better lives Q3 presentation November 2023
Slide 2: Q3 highlights
Q3 highlights 13% Total revenue growth / Strong organic growth ahead of the industry / Improved cash flow from operating activities 12% Organic revenue growth / Significantly higher net profit / Adjusted EBITA margin primarily reflects sales pattern in MedTech and mix effect from strong 6% Adjusted
Slide 3: Continued strong organic growth of 12% in the third quarter
Continued strong organic growth of 12% in the third quarter Revenue and Adj. EBITA Adj EBITA (EURm) Revenue (EURm) x% Adj EBITA margin x% Organic growth (%) Revenue development / Q3 strong organic growth of 12% +21% / Specialty Pharma 18%, Veterinary Services 14% 249.3 250 70 +13% 205.9 64.7 60 / YT
Slide 4: Margin reflects sales pattern in MedTech, mix and investments in Specialty Pharma
Margin reflects sales pattern in MedTech, mix and investments in Specialty Pharma Year over year development of adjusted EBITA margin 24.3% 0.6% (0.4%) 0.8% (1.0%) / Gross margin 67.5% (68.7%) (1.4%) 22.9% / Excluding mix impact from GlobalOne, gross margin is stable at ~72% Lower margin reflects Mi
Slide 5: Strong global footprint, 43% of LTM revenue from North America
Strong global footprint, 43% of LTM revenue from North America Europe 47% 2022 North America 50% 43% 2022 43% APAC 10% 2022 8% Offices Vimian companies HQ (Stockholm, Sweden) Direct sales markets Page 5 * Revenue split based on LTM reported revenues
Slide 6: Strong track record since 2016
Strong track record since 2016 333 / Global niches with unmet medical needs, untapped white space 281 / Growth driven both by organic initiatives and continuous M&A 173 / Multiple organic growth initiatives underway and synergy potential 103 86 73 53 45 Revenue CAGR Adj. EBITA CAGR Adj. EBITA margin
Slide 7: Specialty Pharma 18%
Specialty Pharma 18% Organic growth / Strong organic growth 18%, double-digit growth in Specialty Pharmaceuticals, Specialised Nutrition and Dermatology / Double-digit growth in Allergy Test & Treatments in Europe 12% Adj. EBITA growth / High commercial activity with 15 congresses of which two as ma
Slide 8: MedTech
MedTech 4% Organic growth / Slow growth reflects sales pattern in the US with extended AOP and small buildup of backorders / High single-digit growth in Europe and APAC -18% Adj. EBITA decline / 13% organic growth YTD reflects positive underlying momentum / Continued efforts to optimise supply chain
Slide 9: Veterinary Services 14%
Veterinary Services 14% Organic growth / Strong organic growth with positive momentum in key geographies / High recruitment pace with 620 new members and good conversion to 60% higher membership tiers Adj. EBITA growth / Digital expertise leveraged across the Group for shared CRM and data warehouse
Slide 10: Diagnostics
Diagnostics 9% Organic growth / Solid organic growth of 9%, well ahead of the livestock market / Cost program finalised. Robust margin compared to livestock peers 85% Adj. EBITA growth / Progressing innovations targeting companion animal diagnostics, ramping up investments over the next year +8.5pp
Slide 11: Quarterly ESG highlights
Quarterly ESG highlights / Established carbon reduction plan for Scope 1&2 - in line with Science Based Targets and Paris Agreement / Process ongoing to uncover Scope 3 emissions / New Chief of People onboard per 1st November – focus on leadership and overall employee experience Page 11
Slide 12: Third Quarter Financials
Third Quarter Financials Page 12
Slide 13: Q3 Income Statement below EBIT
EUR m Q3 2022 July – Q3 2023 July – YTD 2022 January – YTD 2023 January – Q3 Income Statement below EBIT September September September September / Q3 EBIT +12% to EUR 9.9m (8.8), margin 12.4% Adjusted EBITA 17.2 18.3 55.4 64.7 Adjusted EBITA / Lower amount of non-recurring items EUR -2.6m (-3.6) 24.
Slide 14: Net Debt and Leverage
Net Debt and Leverage Leverage Net Debt (EUR m) / Net debt per 30 September 2023 EUR 287.9m 350 340 341 325 293 296 / Cash and cash equivalents EUR 49.3m 300 288 275 267 4.3x 258 250 4.1x / Net Debt / LTM Pro-forma EBITDA 3.0x at target level 225 3.6x 200 3.1x 3.1x 3.0x / Net debt not impacted by se
Slide 15: Current trading and update
Current trading and update / High single digit growth in October – acceleration of sales in MedTech as pull-forward effect abates / Continued efforts to deliver margin expansion / Mix effect from strong growth in US Specialised Nutrition and effect of investments prevail for the remainder of 2023 /
Slide 16: Eye on patient, mind on innovation: Nextmune deep-dive
Eye on patient, mind on innovation Nextmune deep-dive NOVEMBER 8, 2023
Slide 17: Transformation since IPO
Transformation since IPO >2x Nextmune at IPO Nextmune today total revenue growth since IPO Commentary EUR 56 mm in L12M reported EUR 143 mm in L12M reported • Accelerated organic growth sales sales • Used M&A selectively to reach objectives • Strengthened Specialized Nutrition 3 therapeutic areas 4
Slide 18: Our business in a nutshell (1 / 2)
Our business in a nutshell (1 / 2) 18% 38% 4 12 areas of niche countries with 20% therapeutic leadership own sales forces 24% 7 >75 Allergy core brands covering Dermatology countries with presence c. 1000 key SKUs Specialized Nutrition Specialty Pharmaceuticals 8% >45 8 2% in-house patents covering
Slide 19: Our business in a nutshell (2 / 2)
Our business in a nutshell (2 / 2) Specialized Allergy Specialty Pharmaceuticals Dermatology Nutrition Tailored name-patient pharmaceuticals and Pharmaceuticals and OTC for veterinary, Characteristics diagnostics for veterinary channel pet specialty retail, retail and online Description Diagnostics
Slide 20: Four-pronged growth strategy
Four-pronged growth strategy Ensure full product Drive innovation Capture significant availability in Unlock best practices and product white space all geographies and and efficiencies development channels 20
Slide 21: What is our potential?
What is our potential? ‘White space’, product innovation and geographic expansion Allergy Specialty Pharmaceuticals Dermatology Specialized Nutrition 1-in-6 10% 1-in-5 EUR 2 bn dogs suffers from allergy, the of all US scripts are for specialty clinic visits related to addressable market in North mos
Slide 22: A strong platform for profitable, cash-generative growth
A strong platform for profitable, cash-generative growth Doubled in size since IPO, healthy momentum >2x total revenue growth since IPO Attractive industry with structural growth >6% CAGR 2005-2020 in the US Multi-pronged growth strategy >15% organic growth YTD Operational leverage from robust infra
Slide 23: January-September highlights
January-September highlights 21% Total revenue growth / Strong organic growth ahead of the industry / Net profit up 18% vs previous year 13% Organic revenue growth / Adj EBITA margin less impacted by sales pattern in MedTech / Cash flow from operating activities EUR 19.9m*. Positive net cash flow EU
Slide 24: Q&A
Q&A Page 24