Arjo Ab Class B · OMXSTO:ARJO_B
Arjo Ab Class B — Q2 2023 Earnings Presentation
19 slides from Arjo Ab Class B's earnings presentation, Jul 14, 2023
Slide 1: Arjo Q2 Report 2023
ARJO Q2 REPORT 2023 July 14, 2023 Joacim Lindoff, President & CEO 1
Slide 2: Agenda
Business Update – Q2 2023 Financials in detail Agenda Key takeaways Q&A
Slide 3: Business Update
Business Update 3
Slide 4: Q2 2023 highlights
Q2 2023 highlights Continued recovery Net sales Gross margin Healthy growth across most main markets grew organically by amounted to 5.0% 42.5% • Capital sales development continues according to plan – however continued lower Patient Handling volumes in the US • High demand for Service and Rental •
Slide 5: North America Q2 2023
North America Q2 2023 Continued strong development in Canada • 13 consecutive quarters of solid growth Q2 org. net sales • Continued healthy mix of acute care vs. long-term care sales • Service and Rental continues to perform well +3.5% US market remains challenging – recovery expected in H2 • Conti
Slide 6: Global Sales Q2 2023: Western Europe
Global Sales Q2 2023 Western European markets (+4.2% in Q2) Q2 org. net sales • Strong net sales development in larger markets like UK, +5.3% Belgium and France • Capital sales well aligned with forecast • Continued strong demand within Rental and Service YTD org. net sales • First Pressure Injury P
Slide 7: Global Sales Q2 2023: Rest of the World
Global Sales Q2 2023 Rest of the World markets (+8.0% in Q2) Q2 org. net sales • Solid growth across many markets such as Australia, Africa, India and Singapore +5.3% • Generally healthy demand for capital equipment, with step by step improvements in product mix • Improvement in service and rental a
Slide 8: Financials in detail
Financials in detail 8
Slide 9: Q2 gross profit
Q2 gross profit Stable development but impact from mix effects and higher material costs Gross profit bridge – Q2 2023 vs. Q2 2022 (MSEK) • Slight improvement vs. Q2 2022 and Q1 2023 x Margin (Percent) x Margin development (Percentage point) • Unfavorable product and geography mix with low 42.2% N/A
Slide 10: Q2 adjusted EBIT
Q2 adjusted EBIT High activity level and solid cost control Adj. EBIT bridge – Q2 2023 vs. Q2 2022 (MSEK) • OPEX development in line with expectations x Margin (Percent) • Inflation on salary now clearly visible – expected to remain in H2 6.9% 7.7% • OPEX as percentage to net sales in line with Q2 2
Slide 11: Q2 working capital and operating cash flow
Q2 working capital and operating cash flow Working capital days stable and improving In turn resulting in strong operating cash flow Working capital days – Q1.20-Q2.23 Operating cash flow – Q1.20-Q2.23 Working capital days Operating cash flow (MSEK) 843 108 106 100 102 102 101 101 613 639 96 97 94 9
Slide 12: Q2 net debt and leverage
Q2 net debt and leverage Slight increase in net debt level In turn bringing leverage up Net debt – Q1.20-Q2.23 Leverage – Q1.20-Q2.23 Net debt, incl. IFRS16 (BSEK) Net debt / Adj EBITDA, multiple (R12) 5.8 5.6 5.6 3.3 3.2 5.3 3.1 5.1 5.1 5.1 5.2 5.0 5.0 2.9 5.0 2.8 4.8 2.7 2.7 2.7 2.7 4.6 2.5 2.5 2.
Slide 13: Outlook
Outlook 2023 Organic net sales growth for 2023 is expected to be within the Group’s target interval of 3-5% Page 13
Slide 14: Key takeaways
Key takeaways 14
Slide 15: Key takeaways
Key takeaways • Healthy growth across most main markets • Continued positive trend in Service and Rental • US returns to growth but market conditions remain challenging – step by step recovery still expected in H2 • Long-term profitability improvement activities generating results • On track towards
Slide 16: Q&A
Q&A 16
Slide 17: Financial calendar and further questions
Financial calendar Interim Report Jan-Sep 2023 October 19, 2023 Year-end Report 2023 January 30, 2024 Annual Report 2023 March 2024 Interim Report Jan-Mar 2024 April 18, 2024 Annual General Meeting 2024 April 18, 2024 Further questions Maria Nilsson EVP, Communication & Public Relations +46 734 244
Slide 18: Forward looking information
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
Slide 19: Arjo - Empowering Movement
aifJjJoO EMPOWERING MOVEMENT