Slide 1: Q2 presentation August 2023
Together, we improve animal health through science and technology for better lives Q2 presentation August 2023
Slide 2: Q2 Highlights
Q2 Highlights 21% Total revenue growth / Strong growth in resilient market / Positive momentum across segments 14% Organic revenue growth / Navigated headwinds in Diagnostics and deliver double-digit growth / Strengthened underlying cash flow 15% Adjusted EBITA growth / Positive momentum continues i
Slide 3: Continued strong organic growth of 14% in the second quarter
Continued strong organic growth of 14% in the second quarter Revenue and Adj. EBITA Adj EBITA (EURm) Revenue (EURm) x% Adj EBITA margin x% Organic growth (%) / Continued strong organic growth of 14% / Revenue contribution from acquisitions 10%, two new acquisitions closed during the quarter +26% 180
Slide 4: Strong global footprint, 45% of LTM revenue from North America
Strong global footprint, 45% of LTM revenue from North America Europe 47% 2022 North America 50% 45% 2022 43% APAC 7% 2022 8% Offices Vimian companies HQ (Stockholm, Sweden) Direct sales markets Page 4 * Revenue split based on LTM reported revenues
Slide 5: Strong track record since 2016
Strong track record since 2016 329 / Global niches with unmet medical 281 needs, untapped white space / Growth driven both by organic initiatives and continuous M&A 173 / Multiple organic growth initiatives underway and synergy potential 103 86 73 53 45 Revenue CAGR Adj. EBITA CAGR Adj. EBITA margin
Slide 6: Four attractive niches with unmet medical needs
Four attractive niches with unmet medical needs Specialty Pharma MedTech Veterinary Services Diagnostics 43% revenue* 36% revenue* 14% revenue* 7% revenue* 451 employees 247 employees 282 employees** 88 employees Allergy Diagnostics & Treatment Membership platform Veterinary orthopedic implants Live
Slide 7: Specialty Pharma
Specialty Pharma 18% Organic growth / Strong organic growth of 18%, strong delivery across therapeutic areas / Exceptional performance in US Specialised Nutrition 18% Adj. EBITA growth / Continuing to integrate acquired companies – leveraging Bova in Australia to launch allergy portfolio, preparing
Slide 8: MedTech
MedTech 8% Organic growth / Solid organic growth 8% after Q1 24% giving 1H 17% / Focus on supply chain – centralised warehouses in US and Europe 13% Adj. EBITA growth / New organisation implemented to enhance efficiency and satisfaction / High level of marketing activities, 30 on-site surgery traini
Slide 9: Veterinary Services
Veterinary Services 9% Organic growth / Solid organic growth 9% in Q2 giving 12% in 1H / Record level recruitment +796 new members reaching over 6,000, with strong development in new markets 28% Adj. EBITA growth / Closed and onboarded Vettr – initiated collaboration with Independent Vets of Austral
Slide 10: Diagnostics
Diagnostics 16% Organic growth / Strong 16% organic growth driven by strong on-the-ground execution / Positive trend across all key regions and product categories 32% Adj. EBITA growth / Delivering on cost program, transfer of production to Leipzig completed / Ovacyte innovation partnership to detec
Slide 11: Second Quarter Financials
Second Quarter Financials Page 11
Slide 12: Q2 Income Statement below EBIT
EUR m Q2 2022 April – Q2 2023 April – 1H 2022 January – 1H 2023 January - Q2 Income Statement below EBIT June June June June / Q2 EBIT increase by 28% to EUR 10.1m (7.9) with Adjusted EBITA 17.7 20.3 38.2 46.4 margin up 0.7pp to 12.5% Adjusted EBITA 26.4% 25.0% 28.3% 27.4% margin (%) / Lower amount
Slide 13: Improving cash flow from operations EUR 7.2m up from 1.1m Q123
Improving cash flow from operations EUR 7.2m up from 1.1m Q123 (Q222 -1.1m) RCF draw down to finance litigation payment, earn- Q2 cashflow bridge – excluding litigation payment positive cash flow from operations out payments and new acquisitions 10.1 8.9 (1.2) 7.2 6.0 (1.8) Primarily €36.4m Slightly
Slide 14: Net Debt and Leverage
Net Debt and Leverage Leverage Net Debt (EUR m) 360 340 341 / Net debt per 30 June 2023 EUR 296.1m 340 320 300 293 296 / Cash and cash equivalents EUR 50.8m 280 267 4.3x 4.1x 258 260 240 / Net Debt / LTM Pro-forma EBITDA 3.1x at target level 3.6x 220 200 3.0x 3.1x 3.1x 168 / Net debt not impacted by
Slide 15: Current trading
Current trading / After a very strong June, we see mid to high single digit growth in summer – positive momentum continues / Aim to deliver margin expansion in H2 / Welcomed new Board member Robert Belkic in June / Legal process ongoing to retrieve compensation under indemnification protection Page
Slide 16: Positive outcome in first Group-wide employee survey
ESG update Positive outcome in first Group-wide employee survey / High engagement, entrepreneurship and strong sense of belonging in our teams / Employee Net Promotor Score of 32 / Appointing new position as Chief of People with focus on leadership development Page 16
Slide 17: Four key areas remain in focus for the second half of 2023
Four key areas remain in focus for the second half of 2023 / Growth. • Grow Specialty Pharma via >50 product launches, roll-out of existing products and services in additional markets and channels, and addressing whitespace through education • Grow total market size in orthopedics through educations
Slide 18: Q&A
Q&A Page 18