Slide 1: Q4 presentation
Yimian O4 presentation March 2022
Slide 2: Today's Presenters
Today’s Presenters / Dr. Fredrik Ullman / Chief Executive Officer / Henrik Halvorsen / Chief Financial Officer Page 2
Slide 3: Fourth Quarter Results
Fourth Quarter Results Page 3
Slide 4: Q4 Key Highlights
Q4 Key Highlights 74% Revenue growth / Welcomed 9 new companies to the Group – expand geographic reach and complement product offering / Strong organic growth in MedTech and Specialty Pharma, offset by declines in Diagnostics and 9.0% Organic revenue growth Veterinary Services / Investments in futur
Slide 5: Group Financial Highlights – Revenue and Adj. EBITA
Group Financial Highlights – Revenue and Adj. EBITA Revenue and Adj. EBITA Comments Adj EBITA margin Revenue / Strong revenue growth in Q4 and 2021 / Growth driven by organic initiatives and +143.3% a high number of acquisitions 180 35 180 173.3 35 / Lower margin in Q4, see next page 160 33.9% 160 3
Slide 6: Q4 Margin Bridge
3.3% investments in business at start of 2021 1.3% consolidation of distributors Q4 Margin Bridge -9.2pp 33.9% / MedTech – seasonality, investments in -1.4% business and consolidation of -4.4% distributors -1.8% 24.7% / Veterinary Services – investment in -1.7% -0.5% 0.7% new markets and M&A capabil
Slide 7: Group Financial Highlights – organic growth
Group Financial Highlights – organic growth Q421 organic vs acquired growth FY21 organic vs acquired growth Comments Revenue (EUR m) Revenue (EUR m) / Very strong total revenue growth in +143.4% Q4 and 2021 180 180 173.3 0.7 / Q4 organic growth of 9.0%. MedTech 160 160 key driver, offset by decline
Slide 8: Pro-forma including all acquisitions – we have almost doubled the business
Pro-forma including all acquisitions – we have almost doubled the business FY21 Reported and Pro-forma revenue (LTM) FY21 Reported and Pro-forma Adj EBITDA (LTM) Includes all acquisitions closed before 31st December 2021 as if we Includes all acquisitions closed before 31st December 2021 as if had o
Slide 9: Specialty Pharma – Strong Growth and Exceptional pace of M&A
Specialty Pharma – Strong Growth and Exceptional pace of M&A Revenue and Adj. EBITA Adj EBITA margin Revenue Comments / Continued outstanding performance 70 40 70 68.4 40 / Strong pro-forma organic growth ~25% 60 60 in Q4 and ~30% 2021 50 30 50 30 32.1% 30.0% 40 28.3% 40 28.3% / Growth in all therap
Slide 10: MedTech – Very strong organic growth 25.4% in Q4
MedTech – Very strong organic growth 25.4% in Q4 Revenue and Adj. EBITA Adj EBITA margin Revenue Comments / Very strong organic growth 25.4% in Q4 and 25.6% 2021 70 40 70 40 61.9 60 37.1% 60 / Strong growth all regions and product 50 30 50 34.5% 30 32.7% areas, exceptional growth in Japan 40 40 24.6
Slide 11: Diagnostics – Core business solid, phase out of Covid sales impact organics
Diagnostics – Core business solid, phase out of Covid sales impact organics Revenue and Adj. EBITA Adj EBITA margin Revenue Comments / Solid underlying momentum in diagnostics for veterinary applications 30 40 30 40 26.2 25 25 20.7 / Q4 and spring 2022 impacted by 30 30 20 31.8% 20 31.3% phase out o
Slide 12: Veterinary Services – Challenging Q4, confident in recovery
Veterinary Services – Challenging Q4, confident in recovery Revenue and Adj. EBITA Adj EBITA margin Revenue Comments / Q4 performance not satisfactory, but 36.0% confident in recovery 20 40 20 40 16.8 14.5 / Q4 organic decline 5.3%; tough 15 34.2% 30 15 30 comps, low member recruitment and 27.9% 10
Slide 13: 17 acquisitions in 2021 with combined annual revenue of EUR 53m
17 acquisitions in 2021 with combined annual revenue of EUR 53m Acquisition Segment Geography Annual Sales Close Strategic Rationale Diagnostics Europe EUR 1.3m 31/03-21 Strengthen position in livestock diagnostics 1Q Acquisition of allergy business in Spain strengthening market position and Special
Slide 14: 2022 has started strong – Two acquisitions with combined revenue EUR 19m
2022 has started strong – Two acquisitions with combined revenue EUR 19m Acquisition Segment Geography Annual Sales Strategic Rationale Important milestone in our strategic ambition to add new therapeutic areas to Vimian’s Specialty Pharma segment. Acquisition of leading innovator in Specialty Pharm
Slide 15: This is GlobalOne Pet Products
This is GlobalOne Pet Products / Entering new very fast growing niche / Strong retailer relationships Vimian can leverage for its entire non-prescription portfolio in US and Canada / Internationalise GlobalOne portfolio through Nextmune retail and veterinary distribution network in Europe / Create n
Slide 16: This is Bova
This is / Milestone in strategic ambition to add new therapeutic areas to Specialty Pharma / Significant space for continued growth in UK – and potential to expand in Europe and US / Opportunity for Bova to leverage Nextmune’s commercial infrastructure Page 16
Slide 17: AdVetis – An M&A case study
AdVetis – An M&A case study Movora & AdVetis branded products as % of total sales in France / Distributor consolidated from 28 May 2021 / Establish direct sales in France 50% / Replace third party products with own brands / Own brands ~50% of sales vs ~30% in 2020 / Own brands ~20-35pp higher gross
Slide 18: VetFamily Strategy – New membership tiering
VetFamily Strategy – New membership tiering caters for members different ambitions and needs, enabling us to create more value for our members / With >3000 members we are expanding our member offering / A new tiered structure allows us Tier 3: to cater to our members Clinic Development Tier 2: Suppo
Slide 19: Clinic Development – Co-investment allows a deeper partnership when desired
Clinic Development – Co-investment allows a deeper partnership when desired "It has been essential that I still have co-ownership of the clinic. We can maintain the same high professional standard Strong strategic rationale and potentially lift the level even more. It is not a phase-out of my active
Slide 20: Fourth Quarter Financials
Fourth Quarter Financials Page 20
Slide 21: Income Statement
Income Statement EUR m 2021 2020 2021 2020 / Strong growth in revenue and EBITA Oct – Dec Oct – Dec Jan – Dec Jan – Dec / Operating profit increased to EUR 4.1m from EUR 3.8m Revenue 48.7 27.9 173.3 71.2 in Q4 Adjusted EBITA 12.0 9.5 53.5 23.3 / Profit measures in 2020 impacted by acquisition of Ope
Slide 22: Cash Flow and Financial Position
Percent 2021 Jan-Dec 2020 Jan-Dec Delta Cash Flow and Financial Position Cash Conversion 71% 49% +23 ppt / Cash conversion of 71% in 2021, reflecting strong cash generation in Vimian / Strong increase in cash flow from operating activities, EUR m 2021 Jan-Dec 2020 Jan-Dec Delta mainly driven by stro
Slide 23: Net Debt and Leverage
Net Debt and Leverage Leverage Net Debt (EUR m) 260 6.0 240 / Net debt at the end of the period amounted to EUR 220 5.0 168.1m 200 180 168.1 • Cash and cash equivalents EUR 55.1m 4.0x 160 / Net debt over PF LTM adj. EBITDA of 2.5x 140 120 2.5x 3.0x • Up from 1.3x in Q3, reflecting additional debt to
Slide 24: Current trading
Current trading Solid underlying growth but investments still weighing on margins / Russia and Ukraine around EUR 700k of sales in 2021. Halting shipments to Russia, around EUR 150k receivables at risk / Organic growth impacted by decline in covid related sales in Diagnostics / Investments in organi
Slide 25: 2021 Summary
2021 Summary 143% Revenue growth / Historical year for Vimian / High pace of M&A and organic growth / Margin pressure from organisational build up and investments for growth. No gross margin dilution 16.5% Organic revenue growth / Positive market outlook with significant white space / Pro-forma reve
Slide 26: Q&A
Q&A Page 26