Slides
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0 Q1 2025 Conference Call Sveinn Sölvason, President and CEO G. Arna Sveinsdottir, CFO April 29, 2025 A leading global provider of innovative mobility solutions
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1 Key Highlights for Q1 2025 Q1 Performance Operations R&D progress ✓ André Rocha appointed as new EVP R&D at Embla Medical ✓ NAVii® and Icon® advance into full launch following encouraging user feedback Neuro Orthotics (F&G) ✓ Moving ahead according to plan following the expansion into new international markets last year Patient Care - ForMotion ▪ Conal Harte appointed EVP Patient Care at Embla Medical ▪ Norway rebranded in Q1 2025 ▪ Sweden set for Q2 2025 EBITDA margin increasing 1pp vs Q1’24 18% Guidance/SBB 2025 Guidance reiterated • 5-8% Organic sales growth • 20-21% EBITDA margin Share Buyback program • Share buybacks reinitiated early February 2025; ~300k shares bought back during first quarter Local currency growth +4% Organic sales growth +4% Impact from trade tariffs • 2025 guidance assumes some absorption from trade tariffs • Too speculative as of now to quantity the impact
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2 Strong EMEA and APAC growth in Prosthetics & Neuro Orthotics, while Americas ended down; mainly due to a decline in Patient Care APAC Americas Q1: -1% EMEA Q1: +7% APAC Q1: +13% USDm USDm USDm Note: Colors indicate where Embla Medical has direct operations, Embla Medical has sales in further countries 0% 1% 2% 7% -1% 0 50 100 150 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Sales (USD) Organic sales growth 15% 11% 13% 4% 7% 92 94 96 98 100 102 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Sales (USD) Organic sales growth 0% 9% 6% 3% 13% 13 14 15 16 17 18 19 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Sales (USD) Organic sales growth
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3 105 112 115 119 111 10% 6% 9% 12% 9% 16% 12% 15% 18% 9% Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Sales % Organic growth % LCY growth Prosthetics & Neuro Orthotics sales % of total sales in Q1 Highlights ▪ EMEA: Continued strong performance in EMEA across key markets, supported by recently launched innovation (Navii / Pro-Flex Terra) ▪ Americas: Modest performance in Americas following a strong end to 2024. Icon launch off to a good start, while Navii and US Medicare expansion are yet to contribute materially ▪ APAC: Growth was strong in Australia driven by continued improvements in reimbursement approval backlogs. Growth in the region partly offset by softer sales in other APAC markets ▪ Neuro Orthotics: Good growth following expansion into new international markets Sales USD million 51% Year-to-date sales 111 USD million 9% organic growth Year-to-date growth
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4 36 38 37 37 35 1% 2% 1% 2% 0% Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Bracing & Supports sales Highlights ▪ EMEA: Pockets of growth in key markets but offset by decline in other countries ▪ Americas: Good start to the year, somewhat offset by slower growth towards the end of the quarter ▪ APAC: APAC ended down mainly explained by a decline in China but partly offset by good performance in Australia and New Zealand ▪ Tariffs: Limited impact from tariffs in Q1 mainly due to timing Sales USD million % of total sales in Q1 17% % Organic growthSales Year-to-date sales 35 USD million 0% organic growth Year-to-date growth
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5 67 76 71 80 66 6% 9% 9% -1% 0% -5% 0% 5% 10% 15% 20% 25% 30% -1 19 39 59 79 99 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Patient Care sales Highlights ▪ EMEA: Solid growth in select markets counterbalanced by softer growth in others ▪ Americas: Sales declined across territories; mainly due to lower patient volumes than usual during the first couple of months of the year ▪ APAC: Strong growth driven by recovery of reimbursement backlog in Australia Sales USD million % of total sales in Q1 32% % Organic growthSales Year-to-date sales 66 USD million 0% organic growth Year-to-date growth
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6 33 36 17% 18% 0% 5% 10% 15% 20% 25% 0 10 20 30 40 50 60 Q1'24 Q1'25 EBITDA before special items EBITDA margin before special items EBITDA margin expanding by 1%-points to 18% vs Q1 2024. Expansion driven by higher Gross Profit margin and cost control in SG&A Gross Profit and Gross Profit margin USD million Highlights ▪ Gross Profit: Gross profit margin was 63% in Q1’25 vs. 62% (before special items) in Q1’25 2023. The increase is supported by cost reduction initiatives in manufacturing implemented in Q1 2024, positive product mix, and efficiency ▪ OPEX: OPEX amounted to USD 106m or 52% of sales in Q1 25, compared to USD 104 million excluding special items or 52% of sales in Q1’24. OPEX ratio remains stable with continued focus on cost control within SG&A ▪ EBITDA: EBITDA margin expanding to 18%; 1%-point up from Q1 2024 mainly driven by an increasing Gross Profit margin and effective cost control in SG&A. Positive 30bps impact from FX (net of hedging) ▪ Effective Tax: The Q1’25 effective tax rate was 23% (FY’24: 24%) • Net Profit: Net profit grew by 45% in Q1’25 and amounted to USD 12m or 6% of sales, compared to USD 8m or 4% of sales in Q1’24. Increase is driven by stronger operating results and absence of special items this quarter compared to Q1’24 EBITDA and EBITDA margin USD million 123 128 62% 63% 0% 10% 20% 30% 40% 50% 60% 110 115 120 125 130 Q1'24 Q1'25 GP before special items GPM before special items
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7 Q1 Cash flow and leverage Capital expenditures and % of sales USD million Free cash flow and % of sales USD million Net Interest-Bearing Debt and Leverage USD million ▪ CAPEX in Q1 is at 3.0% of sales and within the guidance range of 3-4% of sales. ▪ CAPEX over the last few quarters continues to trend downwards since facility expansion programs were concluded in 2024. ▪ Q1 seasonally lowest quarter in terms of dollar sales, impacting free cash flow. ▪ Solid free cash flow during the quarter; mainly benefitting from strong operating results and less CAPEX than in the comparable period. ▪ Inventories remain slightly elevated following the build-up of new Bionics solutions in preparation for Navii and Icon launch in Q1. ▪ Leverage was 2.5x end of Q1 2025 (1.9x excl. leases). ▪ Net increase in borrowings and lease agreements mainly due to FX effects. ▪ The leverage ratio is within the target range of 2.0- 3.0x and the share buyback program is ongoing. NIBD/EBITDA NIBD/EBITDA excl. leases 11 11 9 8 6 5.7% 5.0% 4.1% 3.6% 3.0% Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 -7 18 33 34 8 -4% 8% 15% 15% 4% Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 482 470 460 414 437 3.3x 3.1x 2.8x 2.4x 2.5x 2.9x 2.6x 2.3x 1.9x 1.9x Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25
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8 2025 Guidance Note: Impact is expected due to the US trade tariffs but significant uncertainty and frequent changes in the global tariff environment, makes it too speculative to quantify an exact impact on Embla Medical’s financial results as of today Proposed Guidance as of April 29 2025 Q1 2025 Guidance as of Feb 5 2025 Sales growth Organic 5-8% 4% 5-8% EBITDA margin Before special items 20-21% 18% 20-21% For modeling purposes: Special items In USD million None None None CAPEX % of sales 3-4% 3% 3-4% Tax Effective tax rate 23-24% 23% 23-24%
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9 Key message from Q1 2025 1. We are off to a good start to the year; driven by a strong finish to the quarter. Growth was strong in our Prosthetics & Neuro Orthotics segment supported solid growth in EMEA and APAC 2. André Rocha appointed as EVP of R&D and Conal Harte appointed EVP of Patient Care of Embla Medical 3. We are reiterating our 2025 guidance: 5-8% organic sales growth and 20-21% EBITDA margin; 2025 guidance assumes some absorption from the trade tariffs though uncertainties persist Q&A
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10 Contact our Investor Relations Financial calendar and events April 29 2025 Interim report Q1 2025 April 29 2025 Q1 2025 HCA Capital virtual presentation and Q&A April 30 2025 Q1 2025 Road Show Copenhagen (Carnegie) May 5 2025 Q1 2025 Road Show Frankfurt (Carnegie) May 6 2025 Q1 2025 Virtual Road Show US (Danske Bank) May 7 2025 Q1 2025 Virtual Road Show UK (DNB) May 8 2025 Q1 2025 Virtual Road Show Helsinki (Nordea) May 19 2025 Redeye MedTech Day, Stockholm May 28 2025 AktieInfo investor event, Copenhagen June 3 2025 Carnegie/Embla Expert Call: Navii (virtual) July 22 2025 Carnegie Healthcare Day, Paris Aug 27 2025 Interim report Q2 2025 Sept 4 2025 Økonomisk Ugebrev Life Science Conference, Copenhagen Sept 16 2025 Goldman Sachs MedTech conference, London Sept 18 2025 Pareto Securities Annual Healthcare Conference, Stockholm October 21 2025 HC Andersen Investor Seminar, Copenhagen April 29 2025 Interim report Q3 2025 Nov 26 2025 Danske Bank Winter Seminar, Copenhagen Dec 2 2025 Nordea Focus Seminar, Paris Investor Relations Klaus Sindahl Head of Investor Relations E-mail: KSindahl@emblamedical.com Tel: +45 5363 0134 Embla Medical press releases by e-mail If you wish to receive Embla Medical press releases by e -mail, please register on our website: www.emblamedical.com/investors
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