Slides
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Interim Report Q2 2025 JULY 15, 2025
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Continued improvement in margins and profit 3 % ORGANIC GROWTH 2,578 NET SALES SEKm +1% 307 EBITA * SEKm +5% 11.9 % EBITA MARGIN %* (11.4%) • Significant EBITA margin* improvement in both business areas Labtech 12.4% (11.6%) Medtech 12.4% (11.9%) • Healthy customer demand, currency adjusted sales increased by 5%; organic growth was 3% and acquired growth was 2% Strong growth in Labtech, 9% excluding currency effects Medtech: Healthy demand, changes in product portfolio and reduced capital sales, 4% growth excluding currency effects • Profitability improvement initiatives are developing well, significant improvement potential remains • Net debt / EBITDA 3.1, target of 3.0 remains Operating cash flow at SEK 119m (195) Dividend, Edge Medical acquisition, earn out payment, currency effects *Excluding reversal of contingent consideration
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Solid revenue and EBITA growth Q2 • Organic and acquired revenue growth: +5% *Excluding reversal of contingent consideration LY 3% 2% -4% 1% Organic growth Acquired growth Exchange rate effect Total growth 0% 1% 2% 3% 4% 5% 6% Revenue growth Q2 6% 4% -5% 5% Organic growth Acquired growth Exchange rate effect Total growth 0% 2% 4% 6% 8% 10% 12% EBITA* growth Q2 • Organic and acquired EBITA growth: +10%
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Profit & Loss Q2 – strong profit growth • Sales growth, +1% Organic growth +3% Acquired growth +2% • Gross margin improved, driven by price increases and favorable product mix • Opex include transaction cost for acquisitions and acquired companies; cost control remains strong when these are excluded • EBITA-margin 11.9% (11.4*) • Interest costs lower than last year • Profit before tax +29% 113 9 22 - 20 - 3 0 25 146 Profit Q2-24 Volume effect GM effect Opex Other inc/exp Amortizations Financial Net Profit Q2-25 60 70 80 90 100 110 120 130 140 150 160 Profit before tax Q2 -25 vs Q2 -24 *Excluding reversal of contingent consideration
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10,4% 11,4% 11,9% 9,0% 9,5% 10,0% 10,5% 11,0% 11,5% 12,0% 12,5% 13,0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2023 2024 2025 EBITA-margin %* Positive development of EBITA-margin • EBITA growth Q2 2025 +5% • EBITA-margin Labtech 12.4% (11.6) Medtech 12.4% (11.9) • EBITA-margin YTD 2025: 12.3% (11.5) * Excluding one-off costs FY 10,5% FY 11,3%
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Accumulated operating cash flow improving • Cash flow impacted by increase in account receivables and decrease in account payable. Inventory remains flat, despite revenue growth • Accumulated op. cash flow: SEK 358m (292) Adj. Cash conversion excludes one-off costs • Cash conversion stable at high level • Continued focus on inventory reduction and working capital efficiency 82 195 119 0 100 200 300 400 500 600 700 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2023 2024 2025 Operating cash flow per quarter 70% 89% 72% 131% 118% 79% 80% 76% 94% 95% 0% 20% 40% 60% 80% 100% 120% 140% 0 200 400 600 800 1000 1200 1400 2016 2017 2018 2019 2020 2021 2022 2023 2024 L12M Operating Cash flow and Cash conversion Operating cash flow Adj. Cash conversion
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Cash flow Q2 • Operating cash flow SEK 119m (195) • Working capital SEK -181m (-80) • Inventory remains flat, despite revenue growth • Increased A/R due to strong end-of- quarter sales • Edge acquisition, earn-out, as well as dividend paid during the quarter
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Change of net debt Net debt include: bank loan + leasing liabilities + contingent considerations + pension liabilities + provisions – cash • Increase in net debt due to acquisition, earn out and dividend payment (total SEK 267m), and exchange headwind • Majority of loan in EUR – negative exchange impact during the quarter 4 506 115 25 114 112 4 872 Net debt Q1-25 Fx Leasing, earn-out, … Cash Loan Net debt Q2-25 4 000 4 100 4 200 4 300 4 400 4 500 4 600 4 700 4 800 4 900 5 000 Change net debt
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Net debt and leverage • Net debt increased by SEK 366m in Q2 2025 • EBITDA LTM SEK 1,595m (1,488) • Net debt / EBITDA 3.1; ambition remains to be at or below 3.0 • Net debt/equity ratio 0.9, below internal guideline of <1.0 • Debt to be reduced through self-generated cash flow 3,7 3,9 3,9 3,5 3,8 3,6 3,6 3,2 2,8 3,1 1,0 1,1 1,1 1,0 1,1 1,0 1,0 0,9 0,9 0,9 0 0,5 1 1,5 2 2,5 3 3,5 4 4,5 3 000 3 500 4 000 4 500 5 000 5 500 6 000 Q1 -23 Q2 -23 Q3 -23 Q4 -23 Q1 -24 Q2 -24 Q3 -24 Q4 -24 Q1 -25 Q2 -25 Net debt KPI's Net debt Net debt/EBITDA Net debt/equity ratio
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Bank loan and covenants • Variable interest, margin +3m Euribor • Average interest rate Q2 2025: 4.2% • Interest cost expected to decrease further following recent interest rate cuts * Loan in EUR 0 1000 2000 3000 Q4 Q1 - Q4 Q1 - Q4 Q1 Q2 Q3 Q4 2024 2025 2026 2027 Debt structure, incl utilization of extension options RCF Bankloan * Bankloan * Covenants Calculation Limit Actual Q2 -25 Interest coverage ratio EBITDA / Interest net * > 4,0 6,8 Equity ratio Equity / Total assets > 25% 41% * Some adjustments (IFRS16 for example)
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Labtech Q2 • Growth excluding currency effect 9% Acquired growth 3% • EBITA margin improved to 12.4% (11.6) • Demand in diagnostics is stable and growing • Success with tenders: New and renewed, improved margins • Demand in pharma remains high, some hesitation still in academic research investment • Strong service and support a key differentiator, strength in advanced technologies 985 NET SALES SEKm +5% 12.4 EBITA MARGIN % (11.6%) 122 EBITA SEKm +12% 37 LEGAL ENTITIES 821 EMPLOYEES GROUP
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Medtech Q2 ITALIA 1,594 NET SALES SEKm -1% 12.4 EBITA MARGIN %* (11.9%) 198 EBITA SEKm +3% 52 LEGAL ENTITIES 1,481 EMPLOYEES • Growth excluding currency effect 4% Acquired growth 2% • EBITA margin improved to 12.4% (11.9)* • Healthy demand development overall Revenues lower in UK, uncertainty about budgets, lower capital spend Revenue declined in some areas due to efforts to focus the product portfolio on higher margin products *) Excluding reversal of contingent considerations of SEK 7m in 2024
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PROTECT AND IMPROVE PROFIT ORGANIC GROWTH CASH FLOW ACQUISITIONS Previously established priorities remain in 2025 1 2 3 4
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Acquisition of Edge Medical APRIL 1, 2025 • Leading distributor of advanced products and services in orthopedic surgery, spine and neurology in UK and Ireland • Fast growing, with sales of approximately GBP 8 million, high margins (>30% EBITDA margin) • The acquisition is in line with the AddLife strategy to grow in orthopedic surgery • Other companies in the AddLife Group will contribute with complementary products and services to further develop the market position
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AddLife is well positioned for potential global trade disruptions 84% 9% 7% 100% Europe North America Asia Total 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Majority of group supply from Europe • More than 90% of revenue in Europe • More than 80% of suppliers in Europe • Limited exposure to changes in business cycle • Decentralised model: able to quickly adapt to changes Areas of focus • Analysis of subcontractor/component exposure • Pay attention to academic research investment • Continuous evolution of supplier portfolio
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HC21 partners with PROCEPT BioRobotics Summary and outlook • Significant margin improvement • Overall healthy revenue growth • Continuous work to evolve portfolio towards more profitable products • Strengthened balance sheet enables gradually increased acqusition activity • Preparing organisation for increased organic and acquired growth • Acqusition of Edge Medical completed in April Business with great performance and potential Triolab Alzheimer conference with BioArctic and Eisai NGS meeting Labtech
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Q&A APRIL 25, 2025 Q&A