AddLife May 2019 Kristina Willgård, CEO...Biomedica engages in operations in 13 countries in Europe, where the six biggest ones account for more than 80 percent 對of the company’s
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ADDLIFE AB OPERATIONS INVESTORS AddLife May 2019 Kristina Willgård, CEO
AddLife in brief A leading independent player in the Life
Science market in the Nordics & Europe
Spin off from Addtech March 2016
Provide equipment, consumables and related services mainly to the healthcare sector
40 subsidiaries & 900 employees
Net sales R12M Q1 2019
2,730MSEK32
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Presentatör
Presentationsanteckningar
I just want to start this meeting with a short update on AddLife in brief We are today a leading independent player in the LS market in the Nordics. Our primary business is to distribute leading suppliers in the Nordic market within different nish segments. We have over the last years increased the portion of own products, mainly within our Medtech business in the nish of Homecare. Today more than 20% of the total sales are own branded products. Through recent acquisitions we have increased no of operating subsidiaries to approx 40 and close to 900 employees In Q4, we built the foundation for the next step for AddLife through our acquisition of Biomedica in Austria, adding annual sales of approx. 635 MSEK, and the agreement we signed with Wellspect Healthcare, adding another annual sales with own products of approx. 170 MSEK during Q1 2019. We have taken the step out of the Nordic region, added interesting new markets and expanded the share of own products in Medtech. We have an ongoing preferential right issue to a maximum of 500 MSEK. The issue is aimed at raising capital to enable us to continue our growth strategy and to do more strategic acquisitions. For 2018 we report a net sales of 2 482 MSEK, an increase of 6 percent compared to 2017.
ADDLIFE AB OPERATIONS INVESTORS
Our Market
Labtech
Medtech
Healthcare & Home care
R&D
Diagnostics
Industrialanalysis
ADDLIFE AB OPERATIONS INVESTORS
Our Nordic home market…
32
Population Nordics & Baltics
Presentatör
Presentationsanteckningar
The nordics is our home market – an interesting market with high spend on healthcare and research and technically advanced. The demographic trend with a growing and aging population suffering from chronic diseases that require lengthy treatment is clear throughout the Nordic region. We reach a population in the Nordics and the Baltics of 32 million people. Today we also have subsidiaries in the Benelux, UK, Italy and China.
ADDLIFE AB OPERATIONS INVESTORS
Market expansion to Central-and Eastern Europe withBiomedica acquisition in December 2018
132
Population CEE
32
Population Nordics
Presentatör
Presentationsanteckningar
Through the acquisition of Biomedica, AddLife’s market has expanded from the Nordic region to also include Central and Eastern Europe. Biomedica engages in operations in 13 countries in Europe, where the six biggest ones account for more than 80 percent of the company’s sales. Just like AddLife, Biomedica supplies products and services in the fields of laboratory technology and medical technology primarily to publicly funded healthcare. AddLife will expand its geographic market from covering about 32 million to about 164 million people. The acquisition of Biomedica thereby sets the stage for long-term profitable organic and acquisition-driven growth in new markets. This is “A Game changer” for us!
Continued population growth, living longer the proportion of older people will increase. Nordics population growth 15 percent by 2040. People > 65 is increasing. In FI ex 50% of adults will in 2030 be > 65 Healthy longer, but the proportion of multi- and chronically ill patients is increasing. On a total – the need for health care and elderly care will increase. Growing application areas for diagnostics due to technical innovations: Personalised treatments – genetic diagnostic tests - today used in cancer treatments Widespread bacterial resistance and the risk with hospital infections. Advanced DNA analysis, “NGS”, becomes routine procedures Change in the market: Consolidation of laboratories – decentralisation to point of care and immediate answers Clear digitalisation trend with for example connected laboratory instruments and web-based analysis services. Digitalization also provides opportunities to communicate with patients and also affects procedures for purchasing and implementing services etc. Public procurements: Consolidation initiatives in all Nordic countries. Procurements are both larger in scope and contract times longer. This could be a threat for smaller players , but at the same time, new opportunities are emerging in which large suppliers collaborate with subcontractors to ensure that all customer needs are covered. Trend in procurement - quality of service, support & sustainability becoming more important. Lock-in effect in the public market, where existing supplier wins the procurement also for the following contract period, due to the complexity of changing suppliers for advanced products and services. Entry barriers in the Nordics due to geography, local adaptations in doing procurements, smaller markets, different languages, local roots & understanding of different needs in smaller markets. High product security is fundamental for the LS market. New EU regulations will be difficult/ expensive for small operators and benefits for established participants of adequate size. The European LS market is fragmented and consists of several large international players, as well as smaller companies. 27 000 medtech companies, 95% are SMEs, majority with < 50 employees. Besides the large international producers with global sales offices, there are smaller companies, often niched also with own sales. In addition there are independent distributors like us. As a result of the rapid tech development in LS, new specialised players often appear without own local presence in EU, especially in the Nordics and Central- Eastern Europe. They have interesting product portfolios that we as a distributor can sell in our market.
• 95% is subject to public procurement, average length of contract 2- 4 years
• 20% of sales Own products, i e. PVC-free products
ADDLIFE AB OPERATIONS INVESTORS
Medtech- Specialized surgery • Highly Specialized Hospital Care
(“Högspecialiserad sjukvård”)
• Neuro-, Thoracic-, Interventional-and Orthopedic Surgery
• Distribution of equipment and disposables
• 90% is subject to public procurement, average length of contract 2- 4 years
ADDLIFE AB OPERATIONS INVESTORS
Medtech- Home Care• Home adaptations, Welfare
technology, Aid supplies & Equipment, Preventive care
• 75% is subject to public procurement, average length of contract 2-4 years
• 75% of sales own products
• 1/3 cost compared to institutional care
ADDLIFE AB OPERATIONS INVESTORS
Combine the small company’s…
With the large company’s…
Flexibility
Personality
Effectiveness
Resources
Network
Sustainability
”Small scale business – large
scale wise”
Decentralized organization with entrepreneurial business acumen
ADDLIFE AB OPERATIONS INVESTORS
AddLife Academy• AddLife Vision & Corporate Philosophy• Effective Sales, Business Acumen• Leadership Training• Marketing, Finance, Service Technichians• Supply Chain
1140
ADDLIFE AB OPERATIONS INVESTORS
”Long-term healthydevelopment”
Business value
Employees – ourmost valuable asset!
Code of Conduct& Core values
How sustainableare our suppliers?
Demands from our customers?
Presentatör
Presentationsanteckningar
For us growth, profitability and sustainable development are all interdependent. We have to be profitable and grow to be able to act sustainable. If you do not act sustainable your growth will not last for long. Sustainability is a natural component of business value and is becoming more and more important due to customer demands. For us sustainability is a lot about our employees. Code of conduct and core values. We all have to act professionally, honestly and ethically. Our employees are our most valuable asset – and we have to act as a good employer, that comes without saying! Every year we do an employee survey, which we follow up and always try to be better. Our business is based on long-term relationships with customers, suppliers and other business partners. We do supplier evaluations and customer surveys in our subsidiaries. Very often sustainability = environmental. Our impact as such on environmental is limited. As a distributor we of course have to make sure that the chain from transports to disposal of the products is good.
ADDLIFE AB OPERATIONS INVESTORS
Financial goals
Profit growthLong term 15 percent yearly
Profitability> 45 percent EBITA/WC
Dividend30-50 percent of profit after tax
24 %
58 %
>40 %
ADDLIFE AB OPERATIONS INVESTORS
Strategy
1Market leading positionsin niches
2Operating mobility insmaller and agile companies
3Acquisitions adding growthand new knowledge
ADDLIFE AB OPERATIONS INVESTORS
Acquisitions• Profitable companies• New markets & segments
• Trading companies• Nished own products• Strong management
ADDLIFE AB OPERATIONS INVESTORS
A portfolio of market leading own nicheproducts from Wellspect HealthCare
Integrated into existing Medtech-business
Production partner, Nolato in Hungary
Europe and Australia 90% Net Sales
Acquisition completed May 1, 2019
Acquisition of business in surgery and respiration
