Q1 2015 report Johannes Lind-Widestam Summary Jan Mar 2015 - - PowerPoint PPT Presentation

Q1 2015 report

Johannes Lind-Widestam

Summary Jan – Mar 2015

Positive development of operations

• Sales increased with 11,7% (excl. currency) to 105,5 MSEK (94,4)
• Sales of own products increased with 116% and represent about 12% of sales in Q1 (6,5)
• One-off items of 4,5 MSEK (0) has impacted the result
• EBITDA margin, excluding one-off items, improved to 18,8 % (15)
• EBIT excluding one-off items improve by 62% to 10,2 MSEK (6,3)
• Orders reduced by 21,6 % to 96,1 MSEK (115,4)
• Earnings per share, continued operations 0,93 SEK (0,53)

Acquisition of Onyx Medical in April

2015 04-28

Strong sales growth

One-off items of 4,5 MSEK (0)

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SEK M Jan-Mar Jan-Mar Apr-Mar Jan-Dec INCOME STATEMENT 2015 2014 2014/15 2014 Net sales 105,5 88,5 397,9 380,9 Cost of goods sold

• 74,2
• 65,5
• 281,9
• 273,2

Gross profit 31,3 23,0 116,0 107,7 Selling expenses

• 6,0
• 4,8
• 22,3
• 21,1

Administration expenses

• 17,2
• 9,9
• 51,4
• 44,1

Development expenses

• 2,8
• 2,2
• 10,5
• 9,9

Other operating income/expenses 0,4 0,2 0,7 0,5 Operating profit 5,7 6,3 32,5 33,1 Financial income 0,2 0,1 1,2 1,1 Financial expenses

• 1,2
• 1,6
• 5,3
• 5,7

Exchange-rate differences 2,9

• 0,5

6,7 3,3 Profit after net financial items 7,6 4,3 35,1 31,8 Income taxes

• 2,0
• 1,1
• 9,3
• 8,4

Net profit for the year from continuing operations 5,6 3,2 25,8 23,4

Continued good cash flow from operations

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Jan-Mar Jan-Mar Apr-Mar Jan-Dec SEK M 2015 2014 2014/15 2014 Profit after net financial items 7,6 4,3 35,1 31,8 Reversal of depreciation 9,6 8,7 35,6 34,7 Adjustment items 1,2 0,0 7,0 5,8 Income tax paid

• 4,3
• 1,7
• 13,4
• 10,8

Change in working capital

• 2,0
• 4,3
• 3,9
• 6,2

Cash flow from operations 12,1 7,0 60,4 55,3 Investments in fixed assets

• 6,0
• 4,0
• 25,9
• 23,9

Sales of fixed assets 0,1

• 0,3

0,2 Balance after investments in fixed assets 6,2 3,0 34,8 31,6 Change of bank overdraft facility 6,4 3,3

• 8,3
• 11,4

New long-term loans 2,2 11,3 11,4 20,5 Amortization of long-term loans

• 11,4
• 5,1
• 47,6
• 41,3

Realized financial exchange-rate differences

• 8,8
• 8,8

Dividends

• 12,1
• 12,1

Cash flow for the period from continuing operations 3,4 12,5

• 30,6
• 21,5

Cash flow from discontinued operations

• 10,5

130,6 120,1

A strong financial position which creates possibilities for growth

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31 Mar 31 Mar 31 Dec SEK M 2015 2014 2014 Assets Intangible fixed assets 68,0 82,2 68,5 Tangible fixed assets 249,0 211,9 230,1 Financial fixed assets 7,4 4,6 5,9 Other current assets 187,7 204,0 177,7 Cash and bank balances 130,8 28,2 125,5 Total assets 642,9 530,9 607,7 Shareholders' equity and liabilities Shareholders' equity 344,2 237,6 338,6 Long-term liabilities 170,9 171,8 162,7 Current liabilities 127,8 121,5 106,4 Total shareholders' equity and liabilities 642,9 530,9 607,7 Equity/assets ratio % 53,6 44,8 55,7 Net debt SEK M 71,5 167,6 58,0

Strong sales growth +11,7% in Q1

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40 80 120 160 200 240 280 320 360 400 440 10 20 30 40 50 60 70 80 90 100 110

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15

Sales Q (MSEK) Rolling 4 Q (MSEK)

Continued improvement of margins Positive market development

One-off items of 4,5 MSEK (0)

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Jan-Mar Jan-Mar Apr-Mar Jan-Dec 2015 2014 2014/15 2014 Order bookings, continuing operations, SEK M 96,1 115,4 398,8 418,1 Net sales, continuing operations, SEK M 105,5 88,5 397,9 380,9 Growth, %* 11,7

• 4,5

4,5 0,7 EBITDA, continuing operations, SEK M 15,3 15,0 68,1 67,8 EBITDA, % 14,5 17,0 17,1 17,8 Operating profit, continuing operations, SEK M 5,7 6,3 32,5 33,1 Operating margin, % 5,4 7,1 8,2 8,7 Operating profit excl one-off items at 10,2 MSEK, 9,7%

Development- and production partner

“Complete performance”

• Development/Design
• Production
• Clean room management
• Logistic/Distribution
• Regulatory services

Risk management/Safety standards Certified in accordance with ISO 13485, ISO 14001 in compliance with the requirements within MDD 2007/47/EC and registered by FDA (21 CFR 820)

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Market consolidation continues We are developing our market position

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Share of sales Market trend Our trend Y/Y

Dental implants 36%

+

Trauma & Spine 10%

+

Medical Devices 48%

++

Diagnostics 6%

+

Increased efforts in developing our own products

Focus in the CAD / CAM technology which is establishing to develop patient-unique solutions where dental implants and instruments are used 2-3 new introductions planned for 2015 Growth rate (rolling 12 month) 59 % in Q1 - now represents about 12% (6,5) of sales

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Improved productivity and quality

Developed procedures and processes to achieve consistent quality and improved productivity Continued focus on automation and capacity utilization The increased sales will require additional capacity

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Strong growth for Elos Medtech Microplast

We see now synergy effects from the acquisition of Microplast in 2011. Significant increase in order backlog Factory expansion planned to be finalized during 2015 Several new accounts under validation – production start in 2015

2015 04 28

Onyx Medical

Sales in 2014 of about 140 MSEK Well positioned within the Trauma and Spine segment Growth YoY exceeding 10% Former owners will remain in key positions

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Shift in marketshare after acquisition of Onyx

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Share of sales excl Onyx Share of sales incl Onyx

Dental implants 36% 27% Trauma & Spine 10% 35% Medical Devices 48% 34% Diagnostics 6% 4%

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Going forward

We are well positioned

Market consolidation We are equipped for further growth

• “World class” quality
• Strong productivity development
• Capacity for growth

Our service offering and customer base will be developed The share of own products will continue to grow

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Going forward

How we will create growth

Organic growth trough:

• Increased marketing and sales efforts
• Introduction of new own products
• New sales organisation for own products

Forecast

The conditions for stable growth in 2015 are deemed satisfactory

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Elos has approx. 1 500 shareholders

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% of share capital

Holders of A-shares Others Institutions

% of votes

Holders of A-shares Others Institutions

2015 04 28

Questions ?