Addlife Ab Class B · OMXSTO:ALIF_B
Addlife Ab Class B — Q1 2023 Earnings Presentation
23 slides from Addlife Ab Class B's earnings presentation, Apr 26, 2023
Slide 1: Interim report AddLife
INTERIM REPORT Q1 2023 Interim report AddLife April 26, 2023
Slide 2: Starting the year with strong organic growth in both Business Areas
INTERIM REPORT Q1 2023 Starting the year with strong organic growth in both Business Areas • AddLife has been positioned for recovery in the healthcare system by growing in multiple surgery segments • During the first quarter demand is growing significantly, driven by a clear increase in surgical pr
Slide 3: COVID-19
INTERIM REPORT Q1 2023 COVID-19 • COVID-19 testing now part of broader respiratory test panel, and therefor not meaningful to report separately going forward • No reported COVID-19 related sales in Q1 2023 compared to SEK 510 m in Q1 2022 • Market normalized, elective surgery growing again, customer
Slide 4: Net Sales & EBITA Q1
INTERIM REPORT Q1 2023 Net Sales & EBITA Q1 Net sales • Net Sales SEK 2,457m, -5% • COVID-19 sales SEK 0m, -100% • Organic growth non-COVID-19 SEK 241m, +12% • Acquired growth SEK 46m, +2% EBITA • EBITA SEK 366m, -16% • EBITA margin 14.9% (16.9) • Affected by the reversal of contingent consideration
Slide 5: EBITA-margin in a positive trend
INTERIM REPORT Q1 2023 EBITA-margin in a positive trend EBITA-margin % • In Labtech COVID-19 sales that contributed to margin 12.0% 11.5% have ceased, partially countered by strong organic 11.5% 11.1% growth 11.0% 10.5% • Strong revenue development in Medtech, beneficial 10.0% 9.7% product mix 9.5%
Slide 6: Labtech Q1
INTERIM REPORT Q1 2023 Labtech Q1 • COVID-19 related sales now behind us (LY SEK 510m) • Organic growth +10% • Successfully defending EBITA-margin • Developing the portfolio, introducing new products 905 115 12.7 40 799 Net Sales SEKm EBITA SEKm EBITA margin % No of No of (-29%) (-61%) (23.2%) Legal
Slide 7: Labtech – Organic growth, developing portfolio
INTERIM REPORT Q1 2023 Labtech – Organic growth, developing portfolio Diagnostics Biomedical and Research • Testing volumes stabilizing after the • Some concerns regarding new project pandemic initiation in tax funded research • Continued strong activity in drug discovery • Healthy underlying organi
Slide 8: Medtech Q1
INTERIM REPORT Q1 2023 Medtech Q1 • Health care markets recovering, significant increase in elective surgery • Strong organic growth +13% • Positive margin trend based on volume, product mix and pricing • Increased market activities adding new products 1,554 256 16.5 52 1,460 NET SALES SEKm EBITA SE
Slide 9: Medtech – Increased activity in surgery
INTERIM REPORT Q1 2023 Medtech – Increased activity in surgery Hospital/Health services Homecare • Clear trend: Elective surgical procedures • Healthy revenue development in home care products increasing across Europe continues • Increased demand in product areas such as • Homecare portfolio address
Slide 10: Market trends and implications
INTERIM REPORT Q1 2023 Market trends and implications Market trends: current and expected Post pandemic environment: Staffing shortage, hospital Outcome Healthcare & efficiency budgets may come Elective surgery recovering capacity constraints focused healthcare under spending pressure Suppliers rest
Slide 11: A diversified portfolio with strong European footprint
INTERIM REPORT Q1 2023 A diversified portfolio with strong European footprint DIAGNOSTICS Norway Sweden Finland LABTECH 8% 12% 5% 37% BIOMEDICAL & RESEARCH Denmark Rest of World 2% BUSINESS AREAS 7% UK Other Europe 12% 12% Germany Ireland 5% 13% Austria 3% Switzerland MEDTECH HOMECARE 5% 63% HOSPITA
Slide 12: Stability in demand: strong position in multiple segments
INTERIM REPORT Q1 2023 Stability in demand: strong position in multiple segments HOME CYTOLOGY OPHTHALMOLOGY HEMATOLOGY & ADAPTATION PATHOLOGY AID SUPPLY HEALTHCARE & EQUIPMENT IT IMMUNOLOGY POC WELFARE ORTHOPEADIC CLINICAL TECHNOLOGY SURGERY REAGENTS CHEMISTRY GENERAL & CONSTRUCTION INTERVENTIONAL
Slide 13: The healthcare industry is non-cyclical and stable during financial slow-down
INTERIM REPORT Q1 2023 The healthcare industry is non-cyclical and stable during financial slow-down Healthcare spending vs GDP growth AddLife performance 2,500,000 12% 10,000 18% 10% 9,000 16% 2,000,000 8,000 14% 8% 7,000 12% 6% 1,500,000 6,000 10% 4% 5,000 8% 1,000,000 4,000 2% 6% 3,000 0% 500,000
Slide 14: Long term financial goals
INTERIM REPORT Q1 2023 Profit growth, EBITA (%) 250 Long term financial goals 200 150 • EBITA declined -17 % 100 50 • Average profit growth 35%* 0 • Profitability, P/WC 55 % 2018 2019 2020 2021 2022 2023 Rolling 12 months Target 15% Profitability, P/WC (%) 120 90 60 30 0 2018 2019 2020 2021 2022 202
Slide 15: Organic growth, excluding Covid-19 related revenue
INTERIM REPORT Q1 2023 Organic growth, excluding Covid-19 related revenue Development Organic growth • Labtech growth stable over the years 16% 14% • Within diagnostics, operations have 13% 12% normalized, and sample volumes are 10% 8% 10% stable 6% 4% 2% • Within Medtech we have seen a clear 0% -2%
Slide 16: Financial KPI's
INTERIM REPORT Q1 2023 Financial KPI’s Revenue & EBITA, KSEK 3000 000 500 000 • Stable revenue growth in a non-cyclical 2500 000 400 000 market 2000 000 300 000 1500 000 • High share of recurring revenue 1000 000 200 000 100 000 • Focus on organic growth 2023 500 000 0 0 2018 2019 2020 2021 2022 202
Slide 17: Focus on cash flow
INTERIM REPORT Q1 2023 Focus on cash flow • Stable operating cash flow Operating cash flow • WC increase due to inventory build up; 700 000 600 000 • Mitigate supply chain disturbances. 500 000 Should gradually improve going forward 400 000 300 000 • Introduction of new supplies and 200 000 products
Slide 18: Strengthening the Balance sheet
INTERIM REPORT Q1 2023 Strengthening the Balance sheet Net debt / EBITDA & Net debt / Equity 4.0 3.7 1.4 • Higher debt level correlate with 3.5 3.0 1.2 1.0 1.0 major acquisitions 2021/2022 2.5 0.8 2.0 0.6 • Debt to be reduced via self- 1.5 1.0 0.4 generated cash flow 0.5 0.2 0.0 0.0 2020 2021 2022 2
Slide 19: AddLife commercial organisation 2023
INTERIM REPORT Q1 2023 AddLife commercial organisation 2023 AddLife companies since 2007 Peter • Business Area manager Simonsbacka Labtech Business Unit Manager Addtech, CEO BergmanLabora, Sales Business Area Labtech Manager Mettler-Toledo Nordic Business Area Medtech BM&R Diagnostics Home Care Hosp
Slide 20: Summary
INTERIM REPORT Q1 2023 Summary • During the pandemic AddLife has been positioned for the post pandemic market by growing significantly in mutiple surgery related segments • In Q1 2023 we have seen a signficant increase in elective surgery across Europe • Significant growth in orthopedic surgery, ane
Slide 21: Q&A
INTERIM REPORT Q1 2023 Q&A Fredrik Dalborg CEO +46 705 16 09 01 fredrik.dalborg@add.life Christina Rubenhag CFO +46 705 46 72 22 christina.rubenhag@add.life
Slide 22: Income statement
INTERIM REPORT Q1 2023 Income statement Quarter Rolling 12 months SEKm Q1 -23 Q1 -22 % 2023 2022 % Net sales 2,457 2,579 -5% 8,962 9,084 -1% • Organic growth excluding Gross margin 37.7% 38.8% 37.4% 37.7% Covid-19 related sales 12% Overhead expenses -560 -566 -1% -2,200 -2,206 0% • Gross margin stab
Slide 23: Cash flow
INTERIM REPORT Q1 2023 Cash flow Quarter Rolling 12 months SEKm Q1-23 Q1-22 2023 2022 Profit after financial items 206 289 519 602 • WC increase due to Adjustment for items not included in cash flow 102 215 571 684 Income tax paid -52 -71 -237 -256 inventory build up; Change in working capital -151