Slide 1: Boule Diagnostics Q3 2024
Boule Diagnostics Q3 2024 Torben Nielsen CEO Holger Lembrér CFO October 25 2024
Slide 2: Q3 Highlights
Q3 Highlights • Sales declined by 2% organically • Instrument and reagent sales declined • Strong growth for OEM • Significant improvement of operating profit and margin • Restructuring initiatives implemented with annual saving of SEK 16M • Lower cash flow driven by restructuring cost • Go-live of
Slide 3: One-time costs in Q3 2024
One-time costs in Q3 2024 BM900 Project In a response to the continued trend towards 5-part technology we have made the decision to narrow the scope of the BM900 platform project to not include a premium 3- part option. This decision together with the expensive project delays have adversely impacted
Slide 4: Summary Q3 2024
Summary Q3 2024 Sales SEK 130.4 M (139.6) -6.6% 18 180 Sales EBIT -2.0% organic growth -6.6% +93.7% 16 160 -4.6% currency 14 140 Adjusted gross profit SEK 61.3 M (57.8) +6.1% 12 120 Adjusted gross margin 47.0% (41.4%) 10 100 Adjusted EBIT SEK 15.3 M (7.9) +93.7% 8 80 Adjusted Operating margin 11.8%
Slide 5: Sales Growth by Quarter
Sales Growth by Quarter Quarter, SEK M 60% 600 50% 563 575 40% 550 30% 525 20% 500 10% 475 0% 450 -10% 425 -6,6% -20% 400 -30% 375 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Total growth quarter, % Sales 12-months rolling,
Slide 6: Sales Growth by region Q3 2024
Sales Growth by region Q3 2024 8 -19 12 57 39 11 Sales by product area 22 -24 12 0 Instruments; 22% 7 -50 OEM; 26% Other; 11% Consumables; 41% Share of sales % Total growth % 6 Boule Diagnostics AB
Slide 7: Hematology sales Q3 2024
Hematology sales Q3 2024 No instruments SEK M 1 400 350 • Sales declined with -17.7% • Instruments sold 716 (1010) 1 200 300 • Decline in sales for all type of instruments, partly due to high 1 000 250 comparison • India reagent sales declined because of 800 200 the switch to reagent license busines
Slide 8: OEM sales Q3 2024
OEM sales Q3 2024 SEK M SEK M 40 140 • Strong sales growth +51% +144% 35 120 • Sales funnel for new projects continue 30 to grow and mature creating significant 100 growth opportunities going forward 25 80 20 60 15 40 10 5 20 0 0 OEM sales R12 OEM sales 8 Boule Diagnostics AB
Slide 9: Financial summary
Financial summary SEK M Jul-Sep 2023 Jul-Sep 2024 Jan-Sep 2023 Jan-Sep 2024 Net sales 139.6 130.4 423.2 415.2 Organic growth,% 4.3% -2.0% 0.5% -0.1% Adjusted COGS -81.8 -69.1 -239.4 -225.8 Adjusted Gross profit 57.8 61.3 183.8 189.4 Adjusted Gross margin, % 41.4% 47.0% 43.4% 45.6% Adjusted Operating
Slide 10: Operating margin, Percentage
Operating margin*, Percentage % % 14 14 11,8 12 12 10 9,7 10 8 8 6,8 6 5,7 6 4 4 2 2 0 0 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Quarter, % Rolling 12-months, % *) Excluding items affecting comparability. 10 Boule Diagnostics AB
Slide 11: Operating profit, MSEK
Operating profit*, MSEK EBIT +41% since LY SEK M SEK M 20 60 54,8 15,3 15 45 38,8 32,7 10 30 7,9 5 15 3,6 0 0 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Quarter, MSEK Rolling 12-months, MSEK *) Excluding items affecting comparability. 11 Boule Diagnostics AB
Slide 12: Adjusted Cost breakdown as % of sales Q3 2024
Adjusted Cost* breakdown as % of sales Q3 2024 % Q3´2023 Q3´2024 Δ Cost of goods sold -58.6% -53.0% 5.6% Adjusted gross profit 41.4% 47.0% 5.6% Selling & marketing expenses -21.0% -22.4% -1.4% Administrative expenses -4.7% -5.3% -0.6% Research and development expenses -9.1% -7.2% 1.9% Other operatin
Slide 13: Cash flow from operating activities
Cash flow from operating activities SEK M SEK M Cash flow from operating activities, SEK M SEK M 50 100 40 80 30 60 20 40 10 20 0 0 -10 -20 -20 -40 Q1´22 Q2´22 Q3´22 Q4`22 Q1´23 Q2´23 Q3´23 Q4´23 Q1'24 Q2'24 Q3'24 Quarter, SEK Rolling 12-months 13 Boule Diagnostics AB
Slide 14: Liquidity & Credit
Liquidity & Credit Liquidity & Credit Facilities, SEK M 160 140 • Cash position at SEK 17 M 120 • Additional SEK 31 M in credit facilities available • Net cash / EBIT (R12), times -0.1 100 80 60 48 40 20 0 Q1´23 Q2´23 Q3´23 Q4´23 Q1'24 Q2'24 Q3'24 14 Boule Diagnostics AB
Slide 15: 2024/2025 Strategic Priorities
2024/2025 Strategic Priorities Focus on transforming Boule into a higher growth and higher margin company Expand operating margins • Reduce COGS through supply chain improvements through disciplined execution • Improve OPEX through consolidation and organizational restructure and reductions in struc
Slide 16: Expand operating margins through disciplined execution and reductions in structural cost
Expand operating margins through disciplined execution and reductions in structural cost COGS • Rigorous supplier and terms evaluation Reduction • Operational Tiger Team focusing on COGS reduction initiatives OPEX • Consolidate sites and right size organization Improvements • Simplify organizational
Slide 17: Accelerate growth through strategic organic investments
Accelerate growth through strategic organic investments Local • Proactively manage local policy changes Presence • Strengthen our commercial setup for better coverage Channel • Channel Partner evaluation program Management • Bring Veterinary portfolio to new markets Digital • Strengthen brand recogn
Slide 18: Building a better, stronger, growth-oriented portfolio
Building a better, stronger, growth-oriented portfolio • High quality, cost-effective Human Value portfolio Hematology • Differentiated Premium Human and Veterinary portfolio Adjacent • Build Adjacent Market portfolio synergistic with Hematology Markets • Invest in OEM manufacturing capacity and cap
Slide 19: Conclusions
Conclusions • Stable performance YTD • Continued improvement in profitability • Priority to complete the new 5-part instrument • Focus on executing our strategic priorities BOULE ASPIRATION FINANCIAL TARGETS • Most satisfied customers • Operating Margin >15% • Highly valued employer • Long-term sale
Slide 20: Thank you! Q&A
Thank you! Q&A