Slide 1: Interim report AddLife Q2
Interim report AddLife Q2 15 July 2024
Slide 2: Good growth and continued profitability improvement
Good growth and continued profitability improvement • Solid sales growth at 8%, 7% organic and currency adjusted • EBITA increased by 21% - profitability improvement initiatives are showing clear results • Both business areas performing well: Labtech showed solid growth with stable margins Medte
Slide 3: Profit and loss Q2: +21% EBITA growth
Profit and loss Q2: +21% EBITA growth • Sales growth, +8% • Stable gross margin • Opex +2%, positively impacted by cost reduction in AddVision and Camanio • EBITA growth was 21% and the margin improved to 11.7% (10.4) • Net interest 75 MSEK (72), same range as previous four quarters
Slide 4: Operating cash flow improving
Operating cash flow improving Operating cash flow per quarter Operating Cash flow and Cash conversion 500 1200 140% 131% 450 1000 118% 120% 400 350 100% 800 89% 300 79% 80% 82% 80% 72% 76% 250 600 70% 195 60% 200 400 150 40% 100 82 200 20% 50 0 0% 0 2016 2017 2018 2019 2020 2021 2022 2023 L12M Q1 Q2
Slide 5: Cash flow Q2
Cash flow Q2 • Operating cash flow SEK 195m (82) • Working capital SEK -80m (-130) • Sales growth drives working capital • Increased inventory driven by sales growth, new supplier and products and buffer stock • Other working capital includes mainly cost related to project sales and accrued expenses
Slide 6: Inventory / sales and working capital / sales
Inventory / sales and working capital / sales Working capital & inventory vs sales 28% • Inventory increased during H1 2023 26% 27% 26% due to new business and supply chain 24% 25% 24% 23% disturbances 22% 23% 22% 20% 20% 19% • Focus on inventory reduction 19% 18% 18% 17% 17% 17% initiatives impleme
Slide 7: Change of net debt
Change of net debt • Net debt decreased by SEK 120m in Q2 2024 • Majority of loan in EUR – positive Fx impact in Q2 • Payment of dividend and contingent considerations in Q2
Slide 8: Net debt and leverage
Net debt and leverage Net debt KPI's • Net debt / EBITDA reduced to 3.6 6 000 4,5 3,9 3,9 3,8 4 • Net debt decreased by SEK 120m in Q2 5 500 3,7 3,5 3,5 3,6 3,5 5 000 3 • Net debt/equity ratio just above internal 2,5 guideline of <1.0 4 500 2 • Debt to be reduced via self-generated cash 4 000 1,1 1,
Slide 9: Bank loan and covenants
Bank loan and covenants Debt structure • Variable interest, margin +3m 3 000 2 000 Euribor, one quarter delay 1 000 • Average interest rate Q2 2024 5.9% 0 • Dialogue regarding the the short Q1-Q4 Q1 Q2-Q4 Q1 - Q4 Q1-Q2 Q3 Q4 2024 2025 2026 2027 RCF Bankloan * Bankloan (2026 +1y) * term loans due in
Slide 10: Labtech Q2
Labtech Q2 • Organic, currency adjusted growth +8%, Demand recovered, as expected, after the weakness in March • Consumables strong, delay in some instrument projects - expected later in the year • Some cautiousness in academic research, but compensated by industrial research • Stable EBITA margin
Slide 11: Medtech Q2
Medtech Q2 • Organic, currency adjusted growth: +7% • Patient waiting lists remain long, elective surgery expected to continue to drive demand • EBITA increased +37%, margin strengthened to 12.3% (9.7%). Performance improvements across most Medtech companies • The actions taken to improve profitabil
Slide 12: Market trends and implications
Market trends and implications MARKET TRENDS: CURRENT AND EXPECTED IMPLICATIONS FOR ADDLIFE Significant patient waiting lists: Increased Elevated number of surgical procedures demand for elective surgery procedures needed for a long period Staffing shortage, healthcare capacity Increased demand fo
Slide 13: 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 14: Active work to improve profitability
Active work to improve profitability • Restructuring resulting in a return to decentralized business model and significantly reduced cost (>SEK 20 m annually) Dismantled central functions and efficiency improvements in the companies • Product portfolio and sales efforts focused on profitable segme
Slide 15: Active work to improve profitability
Active work to improve profitability • Progressing according to plan • Significant cost decrease in Q2 • Users in the last municipality will be migrated in Q3 • Further cost reduction and closure completed in Q3 • All cost gone by Q4 • Full year cost 2023 SEK 60 m, cash flow effect SEK 90 m
Slide 16: Acquisition BonsaiLab
Acquisition BonsaiLab • AddLife acquires BonsaiLab, a leading Spanish distributor in the field of cell and molecular biology • Molecular biology, a fast growing and profitable segment, is a prioritized growth segment for AddLife • The company, with current revenues of EUR 8 m and 13 employees, has o
Slide 17: Summary and outlook
Summary and outlook • Our companies are growing strongly with good profitability • Competitive customer offerings and well- positioned product portfolios. • Restructuring and efficiency initiatives are yielding distinct profitability improvements • Cash flow improved significantly in the quarter • C
Slide 18: Q&A
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