Slides
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1 Niclas Sjöswärd, Interim CEO Christofer Carlsson, Interim CFO ARJO Q1 REPORT 2025 Solid growth and demand – focus on strengthening our market positions
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Solid growth and order intake Overall healthy demand, strengthened order book • Positive development in Service and Rental • US and Canada growth engines in Q1 • Improving market conditions in some European markets Profitability improvement in focus • Improved gross margin • Profitability development held back by negative currency effects • Acceleration of cost efficiency initiatives Strengthening our market positions – launch of two new products in key categories Net sales organic growth 3.4% Adjusted EBITDA 486 MSEK Gross margin 43.7% Cash conversion 41.3%
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Western Europe, +3.9% • Healthy development in Germany, Netherlands • Continued uncertainty on healthcare budgets in France • Rental and Service continues to perform well Rest of the World, -5.7% • Challenging comps in many RoW markets 3 Global Sales Continued growth in the US • Solid demand in Rental & Service • Increasing Patient Handling sales • Lower DVT volumes Another strong quarter in Canada • Service, Rental & Capital perform well • Healthy mix of acute care vs. long-term care sales continues North America 6.3% 1.4%
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Continued gross margin expansion Page 4 • Continued gross margin improvement y-o-y • Positive mix effects from sales increase in North America • Positive contribution from price increases Gross profit bridge – Q1 2025 vs. Q1 2024 (MSEK) Margin (Percent)x Margin development (Percentage point) x 43.5% 43.7%+0.5 p.p.N/A -0.3 p.p. Q1 2024 Volume effect Margin effect Currency effect Q1 2025
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Solid underlying profitability offset by negative FX effect Page 5 • Adj. EBIT decreasing vs. Q1 2024, mainly due to FX • OPEX year over year increase – acceleration of cost efficiency measures • Adjusted for negative currency effects, adjusted EBIT grew 4 % Adj. EBIT bridge – Q1 2025 vs. Q1 2024 (MSEK) Margin (Percent)x 7.3%9.0% 248 Q1 2024 46 Gross profit -43 OPEX -41 Other operating income and expenses -1 Translation effect 208 Q1 2025
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Working capital and operating cash flow Working capital days – Q1.22-Q1.25 Working capital days* Operating cash flow – Q1.22-Q1.25 Operating cash flow (MSEK)* Decrease in working capital days Operating cash flow slightly lower than last year 13 133 255 425 250 512 565 734 256 344 437 479 184 Q1.22 Q2.22 Q3.22 Q4.22 Q1.23 Q2.23 Q3.23 Q4.23 Q1.24 Q2.24 Q3.24 Q4.24 Q1.25 91Q1.22 95Q2.22 99Q3.22 96Q4.22 96Q1.23 95Q2.23 86Q3.23 77Q4.23 82Q1.24 79Q2.24 78Q3.24 84Q4.24 Q1.25 81 Page 6
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Net debt and leverage Net debt – Q1.22-Q1.25 Leverage – Q1.22-Q1.25 Net debt, incl. IFRS16 (BSEK) Net debt slightly increased due to lower operating cash flow and higher investments Leverage slightly increased due to lower EBITDA 4.6Q1.22 5.1Q2.22 5.1Q3.22 5.0Q4.22 5.2Q1.23 5.3Q2.23 4.7Q3.23 4.3Q4.23 4.4Q1.24 4.5Q2.24 4.4Q3.24 4.2Q4.24 Q1.25 4.3 2.3Q1.22 2.6Q2.22 2.8Q3.22 2.7Q4.22 2.8Q1.23 2.8Q2.23 2.6Q3.23 2.3Q4.23 2.3Q1.24 2.4Q2.24 2.2Q3.24 2.0Q4.24 Q1.25 2.1 Net debt / Adj EBITDA, multiple (R12)* Page 7
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U 8 Actions to mitigate the impact from US tariffs • Detailed scenario planning • Price increases to compensate for higher costs • Review of short-term and long-term operational setup US* ~ 40% Canada ~ 10% UK < 5% EU ~ 20% Dominican Republic ~ 20% China < 5% Mitigating potential impact in a volatile macro environment with high level of uncertainty Origin of products and solutions sold in the US 2024 *Mainly rental and service
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9 Strengthening our market positions with the global launch of Maxi Move 5 • New generation of one of Arjo’s best-selling products, enabling safe and efficient patient transfers • Features include the new Arjo Motion Assist®; operated via touch sensors reacting to the carer’s push, pull and pivoting motions and enabling efficient, controlled and intuitive transfers, with minimal effort from the caregiver • Maxi Move 5 reduces the accumulated forces required to complete a patient transfer by up to 68%, compared with competitor devices, according to independent clinical study • Launching in approx. 40 countries in 2025
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10 Outlook 2025 Organic net sales growth for 2025 is expected to be within the Group’s target interval of 3-5%
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• Continued healthy growth, with strengthened order book and gross margin expansion • Profitability impacted by negative currency effects • Strengthened market positions with launch of new products • Monitoring the geopolitical situation closely • Organic net sales growth outlook for 2025 expected within the target interval of 3-5% Q1 key takeaways
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Q&A
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13 Financial calendar Annual General Meeting 2025 April 29, 2025 Interim Report Jan-Jun 2025 July 11, 2025 Interim Report Jan-Sep 2025 October 22, 2025 Further questions Maria Nilsson EVP, Communication & Public Relations +46 734 244 515 maria.nilsson@arjo.com Erik Roslund Investor Relations & Corporate Communications +46 768 996 303 erik.roslund@arjo.com
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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 prove correct. Accordingly, the actual future outcome could vary considerably compared with what is stated in the forward-looking information, due to such factors as changed conditions regarding business cycles, market and competition, changes in legal requirements and other political measures, and fluctuations in exchange rates. Page 14