Slide 1: Arjo Q4 Report 2024
ARJO Q4 REPORT 2024 January 30, 2025 Niclas Sjöswärd, Interim CEO Christofer Carlsson, Interim CFO 1
Slide 2: Agenda
Business update – Q4 & FY 2024 Financials in detail Agenda Outlook 2025 Key takeaways Q&A
Slide 3: A solid finish to the year
A solid finish to the year Growth across regions • Healthy demand for Service and Rental globally Net sales Gross • Continued growth in US and Canada organic growth margin • Lower demand for capital equipment in Europe, i.e. France • UK improving with confirmed NHS budgets 3.1% 44.7% Profitability i
Slide 4: Solid performance despite somewhat unpredictable environment
Solid performance despite somewhat unpredictable environment • Strong service and rental development globally, Net sales Gross margin organic growth with further potential • Continued growth in the US and Canada, yet weaker 3.1% 43.5% demand for capital equipment in Western Europe in H2 • Improved p
Slide 5: North America
North America Continued growth in the US Q4 org. net sales • Continued healthy demand within Rental and Service • Increasing Patient Handling sales +7.8% • Lower DVT volumes as forecasted FY org. net sales Another quarter of profitable growth in Canada • Service, Rental and Capital all perform well
Slide 6: Global Sales – Western Europe
Global Sales Western European markets (+1.9% in Q4; +1.3% FY) Q4 org. net sales • Healthy demand in the UK following NHS budget confirmation, +0.3% +10% growth in Q4 • Weaker demand for capital equipment remains in some European markets, i.e. France – low visibility remains FY org. net sales • Posit
Slide 7: Global Sales – Rest of the World
Global Sales Rest of the World markets (-3.7% in Q4; +4.1% FY) Q4 org. net sales • Somewhat weaker quarter in for example China +0.3 • Healthy demand in Africa, India, Hong Kong and UAE • Investments to drive growth in Japan starting to show positive signs FY org. net sales • Signs of EU funding sta
Slide 8: Somewhat lower gross margin in Q4 but solid improvement activities in place
Somewhat lower gross margin in Q4 but solid improvement Gross profit bridge – Q4 2024 vs. Q4 2023 (MSEK) activities in place Margin development x Margin (Percent) x (Percentage point) • Q4 margin expansion held back by lower capital equipment volumes in the quarter 45.3% N/A -0.3 p.p. -0.2 p.p. 44.7
Slide 9: Solid initiatives for year over year gross margin improvement
Solid initiatives for year over year gross margin improvement
Slide 10: High activity level and solid cost control
High activity level and solid cost control Adj. EBIT bridge – Q4 2024 vs. Q4 2023 (MSEK) x Margin (Percent) • Adj. EBIT improvement vs. Q4 2023 11.9% 12.5% • Positive FX effects -34 -3 • Continued good cost control across 28 42 the value chain 342 375 Q4 2023 Gross profit OPEX Other Translation Q4 2
Slide 11: Driving value by leveraging OPEX
Driving value by leveraging OPEX
Slide 12: Q4 working capital and operating cash flow
Q4 working capital and operating cash flow Working capital days increasing slightly Operating cash flow improved sequentially during the year Working capital days – Q1.22-Q4.24 Operating cash flow – Q1.22-Q4.24 Operating cash flow (MSEK)* Working capital days* 734 565 99 95 96 96 95 512 91 479 86 42
Slide 13: Q4 net debt and leverage
Q4 net debt and leverage Net debt decreasing during Q4 Improvement in leverage Net debt – Q1.22-Q4.24 Leverage – Q1.22-Q4.24 Net debt, incl. IFRS16 (BSEK) Net debt / Adj EBITDA, multiple (R12)* 5.3 5.1 5.1 5.2 5.0 2.8 2.8 2.8 4.7 2.7 2.6 2.6 4.6 2.4 4.5 2.3 2.3 2.3 4.3 4.4 4.4 2.2 4.2 2.0 Q1.22 Q2.2
Slide 14: Global launch of Symbliss – the next-generation integrated bathing system
Global launch of Symbliss – the next-generation integrated bathing system • Enables safe and efficient hygiene routines across all mobility levels • Highest rating from the Dementia Services Development Centre (DSDC) • Strengthens Arjo’s Long-Term Care market positions • Attractive aftermarket and s
Slide 15: Outlook 2025
Outlook 2025 Organic net sales growth for 2025 is expected to be within the Group’s target interval of 3-5%
Slide 16: Key takeaways
Key takeaways • A solid finish to the year • Healthy demand for Service and Rental globally • Continued growth in US and Canada, and positive development in the UK • Improved profitability and solid initiatives to improve further moving forward • Strong financial position with further improved lever
Slide 17: Q&A
Q&A ai2°
Slide 18: Financial calendar and further questions
Financial calendar Capital Markets Update POSTPONED Annual and Sustainability Report 2024 April 2025 Interim Report Jan-Mar 2025 April 29, 2025 Annual General Meeting 2025 April 29, 2025 Interim Report Jan-Jun 2025 July 11, 2025 Interim Report Jan-Sep 2025 October 22, 2025 Further questions Maria Ni
Slide 19: 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 20: Empowering Movement
aifJjJoO EMPOWERING MOVEMENT