Slides
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Interim Report Q3 2025 OCTOBER 23, 2025
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Continued improvement in margins and profit 6% ORGANIC GROWTH 2,429 NET SALES SEKm +4% 270 EBITA * SEKm +17% 11.1% EBITA MARGIN %* (9.8%) *Excluding one-off items LY • Significant EBITA margin improvement in both business areas Labtech 11.2% (8.9%) Medtech 11.6% (10.7%*) • Healthy customer demand, currency adjusted sales increased by 7%; organic growth was 6% and acquired growth was 1% Strong growth in Labtech, 9% excluding currency effects Medtech: Healthy demand, changes in product portfolio and reduced capital sales, 5% growth excluding currency effects • Profitability improvement initiatives are developing well, significant improvement potential remains • Net debt / EBITDA 2.9 - ambition of 3.0 or below remains
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Solid revenue and EBITA growth Q3 • Organic and acquired revenue growth: +7% *Excluding revaluation of contingent consideration and restructuring costs LY • Organic and acquired EBITA growth: +20% 6% 1% -3% 4% Organic growth Acquired growth Exchange rate effect Total growth 0% 1% 2% 3% 4% 5% 6% 7% Revenue growth Q3 17% 3% -3% 17% Organic growth Acquired growth Exchange rate effect Total growth 0% 5% 10% 15% 20% 25% EBITA* growth Q3
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Profit & Loss Q3 – strong profit growth • Sales growth, +4% Organic growth +6% Acquired growth +1% • Stable gross margin • Opex; strong cost control and positive impact from Camanio closure • EBITA margin 11.1% (9.8*) • Significantly lower interest costs • Profit before tax +164% 42 32 3 9 3 4 18 111 Profit Q3-24 Volume effect GM effect Opex Other inc/exp Amortizations Financial Net Profit Q3-25 20 30 40 50 60 70 80 90 100 110 120 Profit before tax Q3-25 vs Q3-24 *Excluding revaluation of contingent consideration and restructuring costs of 7 MSEK 2024
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9,9% 9,8% 11,1% 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 Q3 2023 2024 2025 EBITA margin %* Positive development of EBITA margin • EBITA growth Q3 2025 +17% • Labtech margin: 11.2% (8.9) • Medtech margin: 11.6% (10.7*) • YTD EBITA margin: 11.9% (11.0*) *Excluding one-off costs FY 10,5% FY 11,3% YTD 11,9%
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Accumulated operating cash flow improving • The third quarter is typically seasonally slow • Accumulated op. cash flow: SEK 504m (429) Adj. Cash conversion excludes one-off costs • Cash conversion remains high • Continued focus on inventory reduction and working capital efficiency 138 137 145 0 100 200 300 400 500 600 700 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 2025 Operating cash flow per quarter 70% 89% 72% 131% 118% 79% 80% 76% 94% 92% 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 Q3 • Operating cash flow SEK 145m (137) • Working capital SEK -143m (-73) • Inventory vs revenue stable. Slight increase in preparation for expected strong Q4 sales • Increased A/R due to strong end-of- quarter sales. Somewhat slow collection due to vacation period • Acquisitions relate to purchase price adjustments for Edge
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Change of net debt Net debt include: bank loan + leasing liabilities + contingent considerations + pension liabilities + provisions – cash • Majority of loan in EUR – limited Fx impact in the quarter 4 873 - 35 - 16 - 33 32 4 821 Net debt Q2-25 Fx Leasing, earn-out, etc Cash Loan Net debt Q3-25 4 600 4 650 4 700 4 750 4 800 4 850 4 900 Change net debt
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Net debt and leverage • Net debt decreased by SEK 52m in Q3 • EBITDA LTM SEK 1,644m (1,481) • Net debt / EBITDA 2.9, below ambition of <3.0 • Net debt/equity ratio 0.9, below internal guideline of <1.0 • Debt to be reduced through self- generated cash flow 3,9 3,5 3,8 3,6 3,6 3,2 2,8 3,1 2,9 1,1 1,0 1,1 1,0 1,0 0,9 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 Q3 -23 Q4 -23 Q1 -24 Q2 -24 Q3 -24 Q4 -24 Q1 -25 Q2 -25 Q3 -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 Q3 2025: 3.8% (5.7%) * 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 Q3 -25 Interest coverage ratio EBITDA / Interest net * > 4,0 7,9 Equity ratio Equity / Total assets > 25% 42% * Some adjustments (IFRS16 for example)
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Labtech Q3 2025 • Growth excluding currency effect 9% • EBITA margin improved to 11.2% (8.9) • Demand in diagnostics is stable and growing • Success with tenders: New and renewed, improved margins • Demand in pharma remains high • Hesitation still in academic research investment, signs of improvement • Good progress in gene sequencing 906 NET SALES SEKm +6% 11.2 EBITA MARGIN % (8.9%) 102 EBITA SEKm +33% 37 LEGAL ENTITIES 804 EMPLOYEES GROUP
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Medtech Q3 2025 ITALIA 1,524 NET SALES SEKm +2% 11.6 EBITA MARGIN %* (10.7%) 177 EBITA SEKm +16% 52 LEGAL ENTITIES 1,501 EMPLOYEES • Growth excluding currency effect 5% Acquired growth 1% • EBITA margin improved to 11.6% (10.7*) • Healthy demand development overall Revenues lower in UK, uncertainty about budgets, lower capital spend Revenue declined in some areas due to changes in product portfolio Continuing to move the portfolio towards higher margin products *Excluding one-off costs of SEK 7m in 2024
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AddLife has market leading European coverage • Geographical expansion ahead of industry peers: bigger accessible markets more supplier opportunities broader range of acqusistion targets more attractive multipes Note: Share of sales per region Q3 2025 YTD 39% WESTERN EUROPE 31% NORDICS 19% SOUTHERN EUROPE 8% CENTRAL & EASTERN EUROPE
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0 50 100 150 200 250 2021 LTM Aug 2025 Revenue development (incl bolt-on) +35% Platform acquisition Western Europe: HC21 UK & Ireland (2021) • Platform company in Ireland and UK; incl two bolt-on acquisitions • Continued addition of advanced products 8,0% 9,0% 10,0% 11,0% 12,0% 13,0% 14,0% 15,0% 2021 LTM 2025 EBITA margin % development (incl bolt-on) +2%-points 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% Year 1 Year 4 P/WC development (incl bolt-on) +20%- points • Continued efficiency improvements • Increased share of advanced product with significant service component • Product pruning of low margin products • Renegotiations with suppliers • Stricter inventory management (systems and processes) • Market leading collaboration with partners regarding payment processes Platform for acquistions: O’Flynn Medical, Emmat Medical, Edge Medical EUR m
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Platform acquisition Southern Europe: MBA Spain & Portugal (2022) • Strong growth driven by advanced products supported by industry leading support and service • Organized in three divisions, enabling accelerated growth • Growth in high margin, advanced products • Driving efficiency and cost control • Strong forecasting processes • Tighter inventory management • Solid payment processes 20 30 40 50 60 70 80 90 100 110 2022 LTM 2025 Revenue development +25% 10,0% 12,0% 14,0% 16,0% 18,0% 20,0% 2022 LTM 2025 EBITA margin % +3%-points 10,0% 15,0% 20,0% 25,0% 30,0% 35,0% 40,0% 45,0% Year 1 Year 3 P/WC development +10% points Platform for acquistions: Bonsai Lab EUR m
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SPECIALIST DEVICES AND EQUIPMENT MEDICAL SUPPLIES Majority of business in specialist devices and equipment Requiring advanced support and service resources, enabling high value add and margins Respiration TransfusionInfusion Electroporation (oncology)Robotic surgery systems Imaging Cervical vertebrae fixation • Advanced, specialist products, often with proprietary consumables and service revenue • Requires advanced training and technical support, often on site clinical and patient specific support • Differentiated, high value products • Volume products, lower margin, primarily used in surgical procedures • Includes infusion/transfusion sets, respiration, wound care, surgical procedure packs, etc. • For AddLife companies to a large extent own products Note: Share of Medtech products 29% MEDICAL SUPPLIES 71% SPECIALIST DEVICES & EQIP. Trocars
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Congress for Advanced Robotic Surgery, Segovia Spain Summary and outlook • Significant margin improvement • Solid organic growth • Strong profit improvement • Reached ambition to reduce Net Debt/EBITDA below 3.0 • Strengthened balance sheet enables gradually increased acqusition activity AddLife Team Day Homecare at Health & Rehab Scandinavia in Bella Center, Copenhagen
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Q&A APRIL 25, 2025 Q&A