Slides
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava Andréas Elgaard, President and CEO Christofer Carlsson, CFO ARJO Q4 & YEAR-END REPORT 2025 Solid demand but challenging profitability
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava On this call President and CEO CFO Andréas Elgaard Christofer Carlsson
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava Experts in improving mobility in acute care and long-term care settings >100 Sales in more than hundred countries 1957 Founded in Eslöv by Arne Johansson ~ 7,000 Number of employees globally 11 billion Turnover 2025 (SEK) VTE prevention A system of a pump and garments for the prevention of VTE/DVT Medical beds Hospital and extended care beds, treatment couches, and functional accessories Diagnostics Patient and fetal monitors, ultrasound equipment and Doppler equipment for obstetric and cardiac diagnostics Pressure injury preventionRisk assessment, therapeutic support surfaces and mobility solutions for prevention and management Pressure injury prevention Risk assessment, therapeutic support surfaces and mobility solutions for prevention and management Disinfection Flusher-disinfectors, chemicals and sluice room equipment Patient handling Wide range of lifts, slings, lateral transfer and repositioning aids, to enable mobilisation early, often and regularly Hygiene and wellness Ergonomic, adaptable bathing and showering systems for all levels of mobility
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava We exist for the most vulnerable moments in care. Our solutions empower movement while protecting caregivers and enabling safer, more efficient care.
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava Q4/FY 2025 summary Andréas Elgaard President and CEO
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava Stable demand but weaker profitability development Net sales organic growth 3.4% Adjusted EBITDA 526 MSEK Gross margin 42.1% Cash conversion 120% Q4 2025 KEY TAKEAWAYS • 3,4% organic growth with healthy demand globally – growth trend continuing in the US and Canada as well as in many European markets, whereas market conditions in the UK remained challenging • Gross margin impacted by a number of headwinds such as currency effects, US tariffs, mix effects, DVT price pressure, and lower US rental profitability due to the delayed flu season • OPEX control efforts have only partially managed to offset headwinds • Actions to improve results to be included in strategy work
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava A year of healthy customer demand globally and successful product launches, yet challenging profitability due to external headwinds Net sales organic growth 3.4% Adjusted EBITDA 1 922 MSEK Gross margin 42.6% Cash conversion 79.3% FY 2025 HIGHLIGHTS • Organic growth within the target interval, despite decline in the UK due to challenging market conditions • Healthy growth in the US, +5% org., with positive trend in important Patient Handling category • Successful launches of new Maxi Move 5 patient floor lift, and Symbliss hygiene solution • Gross margin negatively impacted by currency effects and US tariffs, as well as unfavorable product mix with higher medical beds volumes • Improving cash flow throughout the year enabling cash conversion in line with 80% target • Proposed dividend of 0.95 SEK (0.95) for fiscal year 2025
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava Western Europe (2.2% in Q4; 1.4% FY) • Continued solid performance in several large markets incl. France and Germany • UK market conditions remain challenging Rest of the World (7.0% in Q4; 4.6% FY) • Positive contribution from several growth markets such as India, Hong Kong and Singapore Global Sales Positive trend in the US continues • Good demand within Patient handling and Service categories • Q4 impacted by delayed flu season and temporary US federal government shut- down Profitable growth journey continues in Canada • Positive sales development despite strong comparative quarter North America Q4, 2.7% FY, 5,6% Q4, 3,6% FY, 2,2%
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava Financial performance Q4/FY 2025 Christofer Carlsson CFO
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava Gross margin decline y-o-y due to external headwinds • Significant headwinds from FX and US tariffs also in Q4 • Unfavorable mix effects from product and geography with higher volumes of medical beds in RoW markets • Negative impact from DVT price pressure in the US • Lower rental profitability in the US due to delayed flu season • UK market continues to be challenging • Need to focus on margin improvement Q4 2025 GROSS PROFIT Gross profit bridge – Q4 2025 vs. Q4 2024 (MSEK) Margin (Percent)x Margin development (Percentage point) x 44.7% 42.1%-2.2 p.p.N/A -0.4 p.p. Q4 2024 Volume effect Margin effect Currency effect Q4 2025
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava Adj. EBIT bridge – Q4 2025 vs. Q4 2024 (MSEK) Margin (Percent)x 8.9%12.5% 375 Q4 2024 -49 Gross profit -23 OPEX -6 Other operating (non- currency effect) -26 Translation effect 249 Q4 2025 -22 Other operating (currency effect) Challenging profitability in Q4 • Decrease in adj. EBIT mainly due to lower gross margin • Slightly higher OPEX due to higher share of capital sales in the US • Total FX impact on adjusted EBIT of -73 MSEK in Q4 Q4 2025 ADJUSTED EBIT
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava Continued decrease in working capital days and strong operating cash flow Working capital days Operating cash flow (MSEK) 250 512 565 734 256 344 437 479 184 205 446 600 Q1.23 Q2.23 Q3.23 Q4.23 Q1.24 Q2.24 Q3.24 Q4.24 Q1.25 Q2.25 Q3.25 Q4.25 96Q1.23 95Q2.23 86Q3.23 77Q4.23 82Q1.24 79Q2.24 78Q3.24 84Q4.24 81Q1.25 83Q2.25 82Q3.25 76Q4.25
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava Continued net debt decrease and leverage flat vs. Q3 Net debt, incl. IFRS16 (BSEK) 5.2Q1.23 5.3Q2.23 4.7Q3.23 4.3Q4.23 4.4Q1.24 4.5Q2.24 4.4Q3.24 4.2Q4.24 4.3Q1.25 4.7Q2.25 4.5Q3.25 4.3Q4.25 2.8Q1.23 2.8Q2.23 2.6Q3.23 2.3Q4.23 2.3Q1.24 2.4Q2.24 2.2Q3.24 2.0Q4.24 2.1Q1.25 2.3Q2.25 2.2Q3.25 2.2Q4.25 Net debt / Adj EBITDA, multiple (R12)* Net debt Leverage
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava Looking ahead – defining our future direction Andréas Elgaard President and CEO
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava A solid foundation Favorable growth trends – an ageing population sustaining demand for our solutions Dedicated team and strong customer relations across several markets and segments …however, significant opportunities to unlock further value in our business both short term and long term
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava Realizing our full potential – strategy work ongoing and to be presented in H2 2026 • Significant potential to strengthen our market position, offering and efficiency • New strategy under development together with leaders across the organization to ensure alignment, accountability and strong execution • Organic net sales growth for 2026 expected at 3–5%, in line with the Group’s target Ambition to present the outcome, incl. new financial targets, in second half of 2026
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava Q&A
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava 19 Financial calendar Annual and Sustainability Report 2025 Week 14, 2026 Annual General Meeting 2026 April 22, 2026 Interim Report Jan-Mar 2026 April 22, 2026 Interim Report Jan-Jun 2026 July 14, 2026 Interim Report Jan-Sep 2026 October 22, 2026 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 19
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Arjo Blue White Flow Sway Wave Beam Pearl Pebble SandStone Rock Lava 20 Forward looking information 20 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.
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