Addlife Ab Class B · OMXSTO:ALIF_B
Addlife Ab Class B — Investor Day (February 2019)
64 slides from Addlife Ab Class B's investor day presentation, Feb 18, 2019
Slide 1: AddLife Capital Markets Day 18 February 2019
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 AddLife Capital Markets Day 18 February 2019
Slide 2: Today's speakers
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Today´s speakers Lars-Erik Rydell Kristina Willgård Martin Almgren Peter Simonsbacka Medtech CEO CFO Labtech
Slide 3: Agenda
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Agenda • AddLife update • Financial update • Vision & Corporate Philosophy in short • Medtech • Labtech • Summary and Q&A
Slide 4: AddLife at a glance 2018
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 873 Employees 40 Subsidiaries 1 451 1 031 MSEK MSEK Labtech Medtech 2 482MSEK 2018
Slide 5: Development 2012 - 2018
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Development 2012 - 2018 3000 300 2500 250 2000 200 1500 150 1000 100 500 50 0 0 12 13 14 15 16 17 18 Net sales EBITA
Slide 6: Our Market
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Our Market Healthcare & Homecare Medtech R&D Industrial analysis Diagnostics Labtech
Slide 7: Our offering
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Our offering Products Advice Technical Training Service
Slide 8: Market Trends
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Market Trends • Population growing & aging • Diagnostics growing • Digitalization • Public procurement • Entry barriers • Fragmented market
Slide 9: Long-term healthy development
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 ”Long-term healthy Demands from our customers? development” Code of Conduct & Core values How sustainable Employees – our are our suppliers? most valuable asset! Business value
Slide 10: Financial goals
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Financial goals Profit growth Long term 15 percent yearly Profitability > 45 percent EBITA/WC Dividend 30-50 percent of profit after tax
Slide 11: Strategy
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Strategy Market leading positions 1 in niches Operating mobility in 2 smaller and agile companies Acquisitions adding growth 3 and new knowledge
Slide 12: Acquisitions
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Aquisitions • Profitable companies • New markets & segments • Trading companies • Nished own products • Strong management
Slide 13: Our Nordic home market
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 32 Population Nordics & Baltics Our Nordic home market
Slide 14: Acquisition of Biomedica
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Acquisition of Biomedica A gateway into the European market Great business-related similarities 60% Labtech and 40% Medtech HQ Vienna, Austria 13 countries - 6 countries 80% of Net sales 65 EURm 32 70 65 60 50 43 40 30 25 Net sales 2017/2018 20
Slide 15: Market expansion to Central & Eastern Europe with Biomedica
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 32 Population Nordics & Baltics 132 Population CEE Market expansion to Central- & Eastern Europe with Biomedica
Slide 16: Acquisition of business in surgery and respiration
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Acquisition of business in surgery and respiration A portfolio of market leading own niche products from Wellspect HealthCare Acquisition completed Q1 2019 Integrated into existing business Production partner, Nolato in Hungary Europe and Austra
Slide 17: A game changer!
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 3500 350 3000 300 2500 250 2000 200 1500 150 1000 100 500 50 ”A game changer!” 0 12 13 14 15 16 17 18 PF 0 Net sales EBITA
Slide 18: New share issue in February 2019
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 New share issue in February 2019 • Rights issue of 500 MSEK • Continue growth & acquisition strategy • On February 21, the results will be announced
Slide 19: Figures and facts
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 2018 Figures and facts
Slide 20: Acquisition-intensive quarter Q4
COMPANY PRESENTATION ”Acquisition-intensive quarter” Q4 Net Sales SEK 685m (668) +3%, which is acquired growth EBITA SEK 74m (79) -6%, incl. acquisition costs 6 MSEK EBITA-margin 10.8% (11.7) 2018 Net Sales SEK 2,482 (2,333) +6%, which is acquired growth EBITA SEK 245 (234) +5%, incl. acqu
Slide 21: Business Update Q4 2018
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Business Update Q4 2018
Slide 22: Business Update Q4 2018
COMPANY PRESENTATION Business Update Q4 2018 • Overall, demand is good in the majority of our market and product areas with a stable growth in the recurring part of our business. • Stable growth continued in Sweden and Norway, with a favourable market situation in both health services, diagnostics a
Slide 23: Labtech
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Labtech Net Sales Q4 EBITA Q4 YoY 0% 415 410 52 52 12,3% 12,8% Q4 2017 Q4 2018 Q4 2017 Q4 2018 Net Sales 2018 EBITA 2018 1393 1 451 165 151 10,8% 11,4% Dec 17 Dec 18 Dec 17 Dec 18
Slide 24: Medtech
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Medtech Net Sales Q4 EBITA Q4 YoY 0% 275 253 29 29 11,6% 10,5% Q4 2017 Q4 2018 Q4 2017 Q4 2018 Net Sales 2018 EBITA 2018 93 94 1031 940 9,3% 8,7% Dec 17 Dec 18 Dec 17 Dec 18
Slide 25: Profitability (P/WC)
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Profitability (P/WC) 94% 64% 62% 63% 62% 2014/15 2015/16 2016 2017 2018 P/WC Target Return on working capital (P/WC) amounted to 62% (63) P/WC has been stable around 65%
Slide 26: Balance sheet
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Balance sheet
Slide 27: Vision & Corporate Philosophy
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Vision & Corporate Philosophy
Slide 28: AddLife strives to improve people's lives
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 AddLife strives to improve people’s lives by being a leading and value adding player within Life Science
Slide 29: Our basic requirements
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Our basic requirements • Growth – 15% per year • Profitability – >45% • Development
Slide 30: Growth at AddLife = Profit growth
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Growth at AddLife = Profit growth Group goal > 15% per year Double profit in 5 years Addtech 2002-2015 + 18 % AddLife 2016-2018 + 24 %
Slide 31: Profitability: the art of optimising six parameters
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Profitability: the art of optimising six parameters 3 EBITA 1 2 WC 4 5 6 Influence profit Influence working capital 1. Increase sales 4. Increase inventory turnover – Sell more! – Reduce inventory! 2. Increase gross margin 5. Reduce credit period to custo
Slide 32: It is not the strongest that survive
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 “It is not the strongest that survive, but the ones most responsive to change. - Darwin
Slide 33: We need to think NEW to learn NEW
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 We need to think NEW to learn NEW And actually try something NEW!
Slide 34: Development within AddLife
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Development within AddLife • Focus on profitability 1 2 3 all six parameters 4 5 6 • Organic growth Increased added value Own products New suppliers • Acquisitions • Leaders & employees
Slide 35: Strong cash flow is essential for self-financed growth
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Strong cash flow is essential for self-financed growth, both organic and acqusition driven
Slide 36: Core Values
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Simplicity Responsibility Commitment Innovative Core Values
Slide 37: AddLife corporate values
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 AddLife corporate values Simplicity Responsibility Commitment Innovative • Our way of working. • Take responsibility • “Green track” • Change -> Innovative • We want to make it • Develop our company • Dedicated • Reactive ->Proactive simple for our custom
Slide 38: AddLife Academy
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 • AddLife Academy 820 AddLife Vision & Corporate Philosophy • Effective Sales, Business Acumen • Leadership Training • Marketing, Finance, Service Technichians • Supply Chain
Slide 39: Decentralized organization with entrepreneurial business acumen
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Decentralized organization with entrepreneurial business acumen Flexibility Resources Personality ”Small scale Network business – large scale wise” Effectiveness Sustainability Combine the small With the large company’s… company’s…
Slide 40: Medtech
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Medtech Net sales: 1 031 MSEK EBITA: 94 MSEK EBITA margin: 9,2 %
Slide 41: Segments Medtech
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Segments Home General Medtech Adaptations Surgery Aid Supply Thoracic & Equipment Surgery Welfare Neurosurgery Technology Home Interventional Hygiene Surgery Hospital ENT Wound Care Ear-Nose -Throat Ostomy ICU Gastrostomy
Slide 42: Medtech - Hospital
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Medtech - Hospital • Medical devices and equipment to hospitals, mainly disposables • Customers are primarily the public healthcare sector • 95% is subject to public procurement, average length of contract 2- 4 years • 20% of sales own products, i e. PVC-
Slide 43: Medtech - Specialized surgery
COMPANY PRESENTATION Medtech - Specialized surgery • Highly Specialized Hospital Care (“Högspecialiserad sjukvård”) • Neuro-, Thoracic-, Interventional- and Orthopedic Surgery • Distribution of equipment and disposables • Both new innovative suppliers and parts of international suppliers product por
Slide 44: Medtech - Home Care
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Medtech - Home Care • Vision – ”Stay at home” • Demand for a continously improving healtcare quality • Home adaptations, Welfare technology, Aid supplies & Equipment, Preventive care • 75% is subject to public procurement, average length of contract 2-4 y
Slide 45: Own proprietary products
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Own proprietary products • Geographical expansion • Complementary to distribution products • Higher gross margin • Own production and sub-contractors • 30 % of sales Own products • Wellspect products adds up to ~45 % in coming years
Slide 46: Medtech - Specialized surgery
COMPANY PRESENTATION Medtech - Specialized surgery • Highly Specialized Hospital Care (“Högspecialiserad sjukvård”) • Neuro-, Thoracic-, Interventional- and Orthopedic Surgery • Distribution of equipment and disposables • Both new innovative suppliers and parts of international suppliers product por
Slide 47: Market Update Medtech
COMPANY PRESENTATION Market Update Medtech
Slide 48: Market Update Medtech
COMPANY PRESENTATION Market Update Medtech Stable market growth in the Nordics due to tender business and increased demand of home care Sweden • Larger tenders • Stronger focus on Sustainability Denmark • New health care reform Consolidation, digitalization, reduce administration & increase efficien
Slide 49: Acquisitions
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Acquisitions
Slide 50: Acquisition Biomedica - Medtech
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Acquisition Biomedica – Medtech – 40 % In Vitro Medical Diagnostics Devices University Veterinary Life Science & Food Diagnostics Biomedica Immunoassays Clinical IT
Slide 51: Acquisition - Biomedica cross-fertilization
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Acquisition - Biomedica • Cross – fertilization Cooperation between our organizations Proprietary products – both directions More distribution products – both directions Add-on acquisitions
Slide 52: Acquisition of Wellspect's business in surgery and respiration
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Acquisition of Wellspect’s business in surgery and respiration • Own products in existing product portfolio • Integrated into existing business & sales force • Main production partner, Nolato in Hungary. • Europe and Australia 90% of Net Sales • Australia
Slide 53: Labtech
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Labtech Net sales: 1 451 MSEK EBITA: 165 MSEK EBITA %: 11,4 %
Slide 54: Segments Labtech
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Segments Labtech Hematology Pathology Immunology POC Clinical Reagents Chemistry Molecular Cell Biology R&D General Lab Microbiology Instruments Advanced Plastic Instruments Consumables
Slide 55: Labtech - Diagnostics
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Labtech – Diagnostics • Instruments and products used for IVD diagnostic tests to laboratories • Customers are primarily the public healthcare sector • 90% is subject to public procurement, average length of contract 4-6 years • Instruments 20% of sales •
Slide 56: Labtech - Biomedical & Research
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Labtech – Biomedical & Research • Instruments and reagents used for research at laboratories • Customers are primarily public and private laboratory research units, both within the healthcare, pharmaceutical and food industry • 70% is subject to public pr
Slide 57: Market Update Labtech
COMPANY PRESENTATION Market Update Labtech
Slide 58: Market Update Labtech
COMPANY PRESENTATION Market Update Labtech • Sweden • Continued investments both from healthcare and private and public research-projects. • The Swedish Life Science Office - goal to make Sweden a leader in life science. • Many new initiatives within Life Science e.g. Genomic Medicine Sweden and ant
Slide 59: Acquisition Biomedica - Labtech
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Acquisitions Biomedica – Labtech – 60 % In Vitro Medical Diagnostics Devices University Veterinary Life Science & Food Diagnostics Biomedica Immunoassays Clinical IT
Slide 60: Biomedica & AddLife: A perfect fit!
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Biomedica & AddLife A perfect fit! • Cooperation within the group • Common suppliers • Attract new suppliers • Biomedica Immunoassay
Slide 61: Market Trends
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Market Trends • Consolidation customers and suppliers • Pan-Nordic distribution - a key success factor • Higher requirements for services • Growing need for diagnostics • Rapid technology development Digitalisation / e-Health / Home Diagnostics / Prevent
Slide 62: The new AddLife
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 ”The new AddLife”
Slide 63: The Share
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 The Share
Slide 64: Q&A
ADDLIFE CAPITAL MARKETS DAY 18 FEBRUARY 2019 Q&A