Slide 1: Q1 presentation May 2023
Together, we improve animal health through science and technology for better lives Q1 presentation May 2023
Slide 2: Q1 Highlights
Q1 Highlights 88.1 Million revenue (EUR) / Positive start to the year – strong growth and profitability 30% Total revenue growth / Successful efforts to accelerate organic growth / Commercialised key innovation projects – new allergy test and AI enabled parasitology platform 13% Organic revenue grow
Slide 3: Strong organic growth and solid profitability
Strong organic growth and solid profitability Revenue and Adj. EBITA Adj EBITA (EURm) Revenue (EURm) x% Adj EBITA margin x% Organic growth (%) / Strong acceleration of organic growth Companion animal organic x% growth, excl. Diagnostics / Exceptional growth in MedTech supported by expanded annual or
Slide 4: Strong global footprint, 44% of LTM revenue from North America
Strong global footprint, 44% of LTM revenue from North America Europe 47% 2022 North America 50% 44% 2022 43% APAC 8% 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 321 / Niches with unmet medical needs, 281 untapped white space / Growth driven both by organic initiatives and continuous M&A 173 / Multiple organic growth initiatives underway and synergy potential 103 84 73 53 45 Revenue CAGR Adj. EBITA CAGR Adj. EBITA margin 26 23
Slide 6: Four attractive niches with unmet medical needs
Four attractive niches with unmet medical needs Specialty Pharma MedTech Veterinary Services Diagnostics 43% revenue 37% revenue 13% revenue 7% revenue 440 employees 257 employees 228 employees 98 employees Allergy Diagnostics & Treatment Membership platform Veterinary orthopedic implants Livestock
Slide 7: Specialty Pharma
Specialty Pharma 9% Organic growth / Solid organic growth led by Specialised Nutrition and Specialty Pharmaceuticals / Successful launch of next generation allergy test in Europe and US, +25 new product launches in Q1 3% Adj. EBITA growth / Established direct distribution of dermatology and specialt
Slide 8: MedTech
MedTech 24% Organic growth / Exceptional organic growth and margin driven by successful annual ordering programme (“AOP”) • Customers acquiring estimated full year demand in Q1 51% Adj. EBITA growth • Paying in monthly instalments – receivables in Q1 / US market positive trend, APAC and Europe slowe
Slide 9: Veterinary Services
Veterinary Services 16% Organic growth / Strong organic growth with double digit growth in most markets / Strong member growth +400 new members in Q1 – now 5,300 members 167% Adj. EBITA growth / High pace in membership upgrades / Welcomed Vettr to complement Australian services offering and one clin
Slide 10: Diagnostics
Diagnostics 6% Organic growth excluding Covid / 18 per cent organic decline in Q1, final quarter with significant phase-out of Covid related sales (~20% of sales in Q122) / Continued growth in core veterinary portfolio in improving market conditions -41% Adj. EBITA decline / Cost program starting to
Slide 11: First Quarter Financials
First Quarter Financials Page 11
Slide 12: Q1 Income Statement
Q1 Income Statement / Total revenue growth 30% EUR m Q1 2022 Q1 2023 January – March January – March / Gross margin strengthening 0.7pp Revenue 67.9 88.1 / Non-adjusted EBIT margin up 4.6pp to 21% Gross profit 46.4 60.9 / Lower amount of non-recurring items EUR 2.6m (4.8) Gross margin (%) 68.4% 69.1
Slide 13: Q1 Cash Flow and Financial Position
Q1 Cash Flow and Financial Position Q1 2022 Q1 2023 / Positive net cash flow of EUR 3m EUR m January - March January - March / Negative change in NWC EUR 20.2m primarily driven by Cash flow from operating activities before change in NWC 15.7 21.3 receivable in MedTech related to the annual ordering
Slide 14: Net Debt and Leverage
Net Debt and Leverage Leverage Net Debt (EUR m) 360 340 341 / Net debt per 31 March 2023 EUR 292.8m 340 320 300 293 / Cash and cash equivalents EUR 45.9m 280 267 4.3x 4.1x 258 260 240 / Net Debt / LTM Pro-forma EBITDA 3.1x at target level 3.6x 220 200 3,1 168 3.0x / Settlement US patent dispute – pa
Slide 15: Current trading
Current trading / All segments off to a good start of the year / Expanded AOP implies sales pull-forward from Q2-Q3 / Diagnostics returned to growth in April / Settlement in US patent dispute in April - process to retrieve compensation under indemnification protection ongoing / EUR 47.5m of earn-out
Slide 16: Advancing the ESG agenda
Advancing the ESG agenda / Sustainability Report released 3 May / Scope 1&2 emissions below peer average / Annual all-employee “Month of Ethics” in February / ESG criteria now integrated in commercial DD process / New Group-wide employee survey in May / 45% of leaders are women, improved diversity i
Slide 17: 2023 focus
2023 focus / Positive start for Vimian in uncertain times - closely monitor demand, cost control / Five key areas in focus: • Grow Specialty Pharma via >50 product launches, roll-out of existing products and services in additional markets and channels, and addressing whitespace through education • G
Slide 18: Q&A
Q&A Page 18