Interim report presentation Q2 2020...INTERIM REPORT PRESENTATION Q2 2020. 0 20 40 60 80 2016 2017 20182019 2020. Profit Growth(%) R12Target 15% 2016 2017 2019 2020. Profitability

INTERIM REPORT PRESENTATION Q2 2020

Interim report presentationQ2 2020


Highlights Q2

”All time high with strong results” • Strong demand related to Covid-19• Same trend in all geographies• Diagnostics, medical supplies and protective

equipment are ”the drivers”

14.5EBITA-MARGIN %

(8.1%)

1,248NET SALES SEKm

(+48%)

181EBITA SEKm

(+167%)


• Exceptional situation with big impact on the society

• Strong demand from healthcare and diagnostic laboratories

• Challenging sourcing

• Elective surgery postponed

• Research restarted mid Q2

• Employees continues to work from home

• Expect changes in purchasing patterns and increased demand for self-sufficiency

• Increased need for a more sustainable and efficient health care

Covid-19 in Q2


Net sales Q2• Strong growth in both business

areas, totally 48%

• Organic growth 39%

• Positive impact from Covid-19

• Direct procurements of products related to Covid-19

• Product mix offset

• Short-term focus in the market due to the crisis

• Net sales growth 39% YoY, organic growth 17%

Net Sales growth, MSEK Q/Q

Net Sales growth, MSEK Y/Y


EBITA Q2• EBITA growth 167 %

• EBITA-margin 14.5 % (8.1)

• Strong organic marginimprovement

• Margin improvement due to High sales volume

Restrained costs

• EBITA growth 73 % YoY

• EBITA-margin roll 12 months11.1% (8.8)

EBITA growth, SEKm Q/Q

EBITA growth, SEKm Y/Y


Labtech Q2

GROUP

• Organic growth 37%• Big impact from Covid-19 • Diagnostics the main driver of sales and margins• Research demand picking up

15.1EBITA-margin %

(8.3%)

718Net Sales SEKm

(+55%)

109EBITA SEKm

(+180%)


Labtech

Diagnostics- Covid-19 driving sales

• High demand for diagnostics due to extensive Covid-19 testing

• Strong sales for instruments and reagents for Bloodgas analysis, used for checking lung capacity

• All markets strong sales growth

Quarter Rolling 12 months

SEKm 2006 1906 % 2006 1912

Net Sales 718 464 55% 2,342 1,981

EBITA 109 39 180% 292 202

EBITA-margin, % 15.1% 8.3% 12.5% 10.2%

Research - Demand picking up

• Several academic customers restartedafter the first half of the quarter

• Pharmaceutical industry solid growth

• Significant lower sales in mainly China and the U.S for own instruments


530NET SALES SEKm

(+40%)

Medtech Q2• Organic growth 39%• Big impact from Covid-19 • Health services the main driver of sales and margins• Homecare positive development

14.4EBITA-MARGIN %

(8.1%)

76EBITA SEKm

(+148%)


Medtech

Health services- Strong organic growth

• Product mix offset - large volumes of medical supplies and personnel protective equipment and less elective surgery

• Mediplast delivered the order of SEK 100m of protective equipment in Q2

• Quality assurance focus

Quarter Rolling 12 months

SEKm 2006 1906 % 2006 1912

Net sales 530 380 40% 1,749 1,498

EBITA 76 31 148% 176 116

EBITA-margin, % 14.4% 8.1% 10.0% 7.7%

Home care- Positive development

• Positive trend continues – increasedneed for assistive equipment

• Delays in installations in elderly homes

• New contracts for welfare technology in Norway from 62 Norwegian municipalities regarding medical dispensers


0

20

40

60

80

2016 2017 2018 2019 2020

Profit Growth (%)

R12 Target 15%

0

20

40

60

80

2016 2017 2018 2019 2020

Profitability EBITA/WC (%)

R12 Target 45%

Long term financial goals• Profit growth is due to increased volumes

and restrained costs

• Return on working capital amounted to 67%. The increase is mainly driven by the higher EBITA

Average profit growth since listing March 2016 amounts to 33%


2020 Country Date Net Sales,SEKm

No. ofemployees Business Area

EuroClone Italy January 280 58 Labtech

Acquisitions

2019

Wellspect Healthcare Sweden April 170 14 Medtech

Lab-Vent Controls Koldt & Ryø El Denmark August 52 20 Labtech

Fysionord Sweden September 6 2 Medtech

Funksjonsutstyr Norway December 50 7 Medtech


Income statementQuarter Accumulated

SEKm 30-Jun-20 30-Jun-19 % 30-Jun-20 30-Jun-19 %

Net sales 1,248 844 48% 2,301 1,689 36%

Cost of sales -836 -553 -1,520 -1,110

Gross profit 412 291 781 579

Gross-margin 33.0% 34.5% 33.9% 34.3%

Overhead expenses -261 -249 -556 -492

EBITA 181 68 167% 287 138 108%

EBITA-margin 14.5% 8.1% 12.5% 8.2%

Depreciation intangible assets -30 -26 -62 -51

EBIT 151 42 225 87

Financial income and expenses -2 -4 -7 -6

Profit after financial items 149 38 296% 218 81 169%

Tax -29 -7 -44 -15

Profit for the period 120 31 284% 174 66 162%


Balance sheetSEKm 30-Jun-20 31-Dec-19 30-Jun-19Goodwill & Intangible assets 1 807 1 761 1 636Tangible assets 394 377 388Current receivables 1 342 1 037 1 016Cash and cash equivalents 54 99 69Total Assets 3 597 3 274 3 109Total equity 1 619 1 476 1 475Pensions 80 80 77Interest-bearing liabilities 937 921 836Non-interest-bearing liabilities 961 797 721Total Equity and Liabilities 3 597 3 274 3 109Financial net liabilities 963 902 844Net debt/equity ratio, multiple 0,6 0,6 0,6Equity ratio, % 45% 45% 47%


Cash flowQuarter Accumulated

SEKm 30-Jun-20 30-Jun-19 30-Jun-20 30-Jun-19

Profit after financial items 149 38 218 81

Adjustment for items not included in cash flow 80 58 148 107

Income tax paid -12 -18 -32 -29

Change in working capital -89 -13 -126 5

Cash flow from operating activities 128 65 208 164

Net investments in non-current assets -14 -17 -35 -33

Acquisitions and disposals 0 -167 -66 -167

Cash flow from investing activities -14 -184 -101 -200

Dividend paid to shareholders 0 -62 0 -62

Other financial activities -141 186 -146 100

Cash flow from financing activities -141 124 -146 38

Cash flow from the period -27 5 -39 2


Key financial indicators

Accumulated rolling 12 monthsSEKm 30-Jun-20 31-Dec-19 30-Jun-19 31-Dec-18 31-Dec-17 31-Dec-16Net sales 4 091 3 479 2 952 2 482 2 333 1 938EBITA 454 305 262 245 234 189EBITA-margin, % 11,1% 8,8% 8,9% 9,9% 10,0% 9,7%Profit growth, EBITA % 73% 25% 8% 5% 24% 47%Return on working capital (P/WC),% 67% 51% 53% 62% 63% 62%Profit for the period 250 142 135 129 120 112

Cash-flow from operations 444 400 232 177 208 133Return on equity, % 17% 10% 12% 16% 17% 21%Financial net liabilities 963 902 844 882 588 366Financial net liabilities/EBITDA, multiple 1,6 2,1 2,9 3,3 2,3 1,8Net debt/equity ratio, multiple 0,6 0,6 0,6 0,9 0,8 0,5Equity ratio, % 45% 45% 47% 35% 40% 45%

Average numbers of employees 949 903 754 620 579 452Number of employees at end of period 985 932 908 873 592 545

Diluted EPS, SEK 2,22 1,28 1,28 1,29 1,19 1,22Average number of shares adjusted for repurchases and dilution, '000s

112 441 111 297 104 981 100 458 101 302 97 729


Q & A

Kristina Willgård, CEO+46 70 510 12 [email protected]

Martin Almgren, CFO+46 70 228 15 45 [email protected]


22%

17%

13%17%

31%

Geographic sales

Net sales per country

20182019

31%

22%18%

20%

9% Sweden

Finland

Denmark

Norway

Other

Documents

Interim report presentation Q2 2020...INTERIM REPORT PRESENTATION Q2 2020. 0 20 40 60 80 2016 2017 20182019 2020. Profit Growth(%) R12Target 15% 2016 2017 2019 2020. Profitability