Slide 1: Arjo Q1 Report 2024
ARJO Q1 REPORT 2024 April 18, 2024 Joacim Lindoff, President & CEO Niclas Sjöswärd, CFO 1
Slide 2: Agenda
Business update – Q1 2024 Financials in detail Agenda Outlook 2024 Key takeaways Q&A
Slide 3: Q1 highlights: A solid start to the year
Q1 highlights A solid start to the year Net sales Gross margin grew organically by amounted to Growth across most major markets • Positive capital sales development in North America and RoW • High demand for Service and Rental globally 4.3% 43.5% Continued gross margin improvement y-o-y • Higher vol
Slide 4: North America Q1 2024
North America Q1 2024 Continued positive trend in the US • Net sales grew almost 10% vs. Q1 2023 • Solid development in Patient Handling, Rental and Service • Outcome Programs still slow due to market environment – gradual improvement expected in 2024 in both Q1 org. net sales Patient Handling and P
Slide 5: Global Sales Q1 2024: Western European markets
Global Sales Q1 2024 Western European markets (-0.5% in Q1) • Capital sales on par with last year, as expected • Rental and Service continuing to perform well Q1 org. net sales • Healthy net sales development in markets like Belgium, Italy and Ireland • Positive UK performance despite market turbule
Slide 6: Global Sales Q1 2024: Rest of the World markets
Global Sales Q1 2024 Rest of the World markets (+11.4% in Q1) • Strong growth in many markets such as Australia, Singapore, New Zealand and India • Healthy demand for capital equipment, with continued step by step Q1 org. net sales improvements in product mix +2.4% • Continued improvements in servic
Slide 7: Q1 gross profit: Improvement journey continues
Q1 gross profit Improvement journey continues Gross profit bridge – Q1 2024 vs. Q1 2023 (MSEK) • Continued gross margin improvement y-o-y Margin development x Margin (Percent) x (Percentage point) • Healthy volumes in Patient Handling and Service 43.1% N/A 0.3 p.p. 0.0 p.p. 43.5% • Lower medical bed
Slide 8: Q1 adjusted EBIT: High activity level and solid cost control
Q1 adjusted EBIT High activity level and solid cost control Adj. EBIT bridge – Q1 2024 vs. Q1 2023 (MSEK) • Adj. EBIT increased by 13% vs. Q1 2023 x Margin (Percent) • OPEX development according to plan 8.3% 9.0% • Continued good cost control across the value chain • Salary increases partly impactin
Slide 9: Q1 working capital and operating cash flow
Q1 working capital and operating cash flow Slight working capital days uptick after low Q4 Operating cash flow in parity with last year Working capital days – Q1.20-Q1.24 Operating cash flow – Q1.20-Q1.24 Operating cash flow (MSEK)* Working capital days* 843 108 734 100 99 613 639 96 95 96 96 95 92
Slide 10: Q1 net debt and leverage
Q1 net debt and leverage Slight increase in Net Debt in Q1 Leverage flat since Q4 Net debt – Q1.20-Q1.24 Leverage – Q1.20-Q1.24 Net debt, incl. IFRS16 (BSEK) Net debt / Adj EBITDA, multiple (R12)* 5.8 5.6 5.6 3.3 3.2 5.3 3.1 5.1 5.1 5.1 5.0 5.2 2.9 5.0 5.0 2.8 2.8 2.8 4.8 4.7 2.7 2.7 2.7 4.6 2.6 2.6
Slide 11: Update on WoundExpress randomized controlled trial (RCT)
Update on WoundExpress randomized controlled trial (RCT) • Recruitment of patients in expanded protocol completed • Last patient last visit June/July 2024 according to plan and previous communication • Study aimed to be published mid-2025 based on timeline from 3rd party on mainly publication • Laun
Slide 12: Outlook 2024
Outlook 2024 Organic net sales growth for 2024 is expected to be within the Group’s target interval of 3-5% Page 12
Slide 13: Key takeaways
Key takeaways • Solid start to 2024 with continued good traction in most areas • Positive development of capital equipment in North America • Continued positive trend in Service and Rental globally • US trending in the right direction – step by step improvements expected to continue • Continued prof
Slide 14: Q&A
Q&A 14
Slide 15: Financial calendar and further questions
Financial calendar Annual General Meeting 2024 April 18, 2024 Interim Report Jan-Jun 2024 July 12, 2024 Interim Report Jan-Sep 2024 October 17, 2024 Further questions Maria Nilsson EVP, Communication & Public Relations +46 734 244 515 maria.nilsson@arjo.com Sara Ehinger VP, Investor Relations & Corp
Slide 16: 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 17: Empowering Movement
aifJjJoO EMPOWERING MOVEMENT