Arjo Ab Class B · OMXSTO:ARJO_B
Arjo Ab Class B — Q2 2021 Earnings Presentation
22 slides from Arjo Ab Class B's earnings presentation, Jul 15, 2021
Slide 1: Arjo Q2 2021
Arjo Q2 2021 July 15, 2021 Joacim Lindoff, President & CEO Daniel Fäldt, CFO
Slide 2: Agenda
Agenda 1. Business update 2. Financials in detail 3. Business highlights 4. Key takeaways 5. Q&A 2
Slide 3: Business Update
Business Update 3
Slide 4: Q2 2021 highlights
Q2 2021 highlights Net sales grew Gross margin organically by increased to Another strong quarter • Solid net sales growth supported by positive order intake in 4,0% 47,0% especially Patient handling • Strong core rental development in both US and Europe • Recovery in Patient handling, Hygiene, Serv
Slide 5: North America Q2 2021
North America Q2 2021 Q2 org. net sales Solid order intake provides good momentum for rest of year • Profitable growth trajectory continues in region +1,7% • Canada delivers strong performance with double digit growth • Patient handling uptick in both US & Canada • Significantly lower critical care
Slide 6: Western Europe Q2 2021
Western Europe Q2 2021 Q2 org. net sales Strong development in Continental Europe • High volumes in capital sales and rental in Continental Europe, growing 9,4% +9,3% • Strong performance in France, Germany, Netherlands and Austria • UK strong performance versus strong comps, above 9% organic growth
Slide 7: Rest of the world Q2 2021
Rest of the world Q2 2021 Q2 org. net sales Decline vs. very strong comparative quarter • Significantly lower Medical beds volumes in region in quarter -4,8% • Back to more normal business, while Q2 2020 positively impacted by major projects • Still significant Covid effects in quarter – well manage
Slide 8: Financials in detail
Financials in detail 8
Slide 9: Q2 gross profit
Q2 gross profit Positive gross margin development continues Gross profit bridge – Q2 2021 vs. Q2 2020 (SEK M) • Favourable product mix effect from higher volumes Margin development in Patient handling and DVT x Margin (Percent) x (Percentage point) • Previous efficiency programs in US and Europe 45.
Slide 10: Q2 adjusted EBIT
Q2 adjusted EBIT Margin improvement continues Adj. EBIT bridge – Q2 2021 vs. Q2 2020 (SEK M) • OPEX decrease relative to net sales – positive trend continues x Margin (Percent) • Good cost control throughout value chain • Negative translation (-3 M) effect on adjusted EBIT 10.8% 12.5% • Minority pos
Slide 11: Q2 working capital and operating cash flow
Q2 working capital and operating cash flow Resumed WC days improvement trend Strong Operating cash flow Working capital days – Q1.18-Q2.21 Operating cash flow – Q1.18-Q2.21 Working capital days Operating cash flow (MSEK) 843 116 112 112 110 110 108 109 106 108 100 613 96 92 525 89 82 438 431 379 334
Slide 12: Q2 net debt and leverage
Q2 net debt and leverage Debt level continues to decline over time Solid improvement in leverage set to continue Net debt – Q1.18-Q2.21 Leverage – Q1.18-Q2.21 Net debt, incl. IFRS16 (BSEK) Net debt / Adj EBITDA, multiple (R12) Net debt / Adj EBITDA, multiple (R12) adjusted for IFRS16* 6.0 6.1 4.3 5.
Slide 13: Business Highlights
Business Highlights 13
Slide 14: SEM scanner generating positive response
SEM scanner generating positive response • Efficient market introduction in key markets like US and UK • Currently more than 150 evaluations planned or completed by healthcare systems across a range of clinical areas 14
Slide 15: Clear health-economic arguments for including WoundExpress in standard care in the UK
Clear health-economic arguments for including WoundExpress in standard care in the UK • Increases probability of wound healing by 58% • WoundExpress proven a cost-effective solution • Market expansion according to plan • FDA approval work ongoing • RCT finalization expected Q1 2022 – depending on Co
Slide 16: Outlook 2021
Outlook 2021 Organic net sales growth for 2021 is expected to be within the Group’s 3-5% target interval. 16
Slide 17: Key takeaways
Key takeaways 17
Slide 18: Key takeaways
Key takeaways • Strong development in Q2 with positive signals for full year • Activity level continues to increase, with clear recovery in Patient Handling, Hygiene, Service & DVT • Successful launch of SEM scanner continues • New strategy implementation according to plan - supported by inorganic a
Slide 19: Q&A
Q&A 19
Slide 20: Financial calendar / Further questions
Financial calendar Interim report, Jan-Sep 2021 October 28, 2021 Year-end report, 2021 February 3, 2022 Further questions Maria Nilsson VP Investor Relations & Corporate Communications +46 734 244 515 maria.nilsson@arjo.com 20
Slide 21: 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 22: oifjJoO
oifjJoO with people in mind