AddLife AB (publ)

Good morning, everyone, and a warm welcome to the AdLife first quarter presentation. As usual, we will be going through the developments in the different parts of the business, as well as the financials. And after that, open up for questions. After the Q&A session, we have prepared a video from one of our subsidiaries, this time around Bonsai Lab. So we do encourage you to stay on to listen to that very interesting video. video. So let's move on to the highlights of the quarter. So in the first quarter, we're pleased to note that this high margins continue and at the same time we are increasing the acquisition activity. the EBITDA margin remained high at 12.5, only slightly below the very high levels of Q1 in 2025. In Labtech, which had a really strong quarter, we saw an increase of one percentage point to 13.1% margin, very, very strong. On the Medtech side, we were able to retain almost 13% EBITDA margin, even though it's slightly below the record level of 13.5 in Q1 of 2025. The underlying demand in all businesses is quite solid, and if we exclude the divested endoscopy business in the UK, we saw an organic growth on a group level at 3%. It's also worth to note that we had a fantastic finish to 2025, so the start of the quarter was somewhat more cautious, but towards the end, of the quarter the demand picked up significantly. So we had a very strong month of March. We are going to talk quite a bit about advanced products in this quarter. We are seeing a fantastic development for a broad range of advanced products, both in lab tech as well as in med tech. And we are pleased to note that since we have been able to reach and exceed our ambition level when it comes to the balance sheet, we are able to pick up the pace with acquisitions. And we have done that in the past few months. So we are going to talk today about two acquisitions. One in March, Biospectrum in the UK, and one in April, CoaChrome in Austria. So with that, I'm going to hand over to Kristina, who will take us through the highlights of the financials. Welcome, Kristina.

Thank you, Fredrik. In the first quarter, our companies delivered stable underlying growth. The growth was impacted by significantly FX impact, as well as divestment from the endoscopy business in the UK in the latter part of last year. If we adjust for the divested endoscopy business, organic and acquired revenue growth was 5%, organic being 3%, and acquired growth contributing with additional 2%. Currency had a negative impact of 4% and the divested endoscopy business impacted with negative 3%. The endoscopy business had a full year revenue of 140 million Swedish crowns last year. With this being a capital intensive business, the majority of revenue was in the first quarter, it was about 40% of total year, meaning that for the coming quarters the impact will not be as big as in this quarter. The organic and acquired EBITDA growth was 1%. The organic growth of negative 2 was of course also impacted by the divested endoscopy business. Acquisitions contributed with 3% and currency was negative 4% in the quarter. So total net sales was negative 2, currency was negative 4 and the divestment was negative 3. The underlying organic growth was 3 and the acquired growth was 2. The lower volumes was somewhat mitigated by a stronger gross margin and the gross margin increased with almost 1%. This is due to higher prices in new tenders, also by diligent price management within the companies and the move towards more advanced high margin products. Also, OPEX increased in the quarters, driven by growth investments for the future. The interest cost was significantly lower compared to the comparable quarter last year, and the profit before tax increased with 7%. EBITDA margin has definitely established at a higher level. If we look at the last three years, in 2023, full year EBITDA margin was 10.5. 2025, the full year EBITDA margin was 12.1. In this quarter, the Labtech margin was a clear improvement year over year. It improved to 13.1, 1% more than last year's 12.1. The Medtech margin was also at the high level, even though it was slightly lower compared to the all-time high last year. So in this quarter, it was 12.8 compared to 13.5 last year. Improving the EBITDA margin remains our top priority. Operating cash flow in the quarter was seasonally weak. Cash conversion remained high at about 100%. This is slightly higher compared to where we should be. Looking ahead, probably the level of 95% is more reasonable. Working capital efficiency, of course, continues to be a focus area. And the cash flow was negatively impacted by working capital, negative 2 to 8 compared to approximately negative 70 last year. The main reason was that the year started a bit slow in revenue, but we had a very strong finish to the year. And that meant that the accounts receivables was much higher compared to last year. Also, inventory increased. This is more a temporary impact due to timing and when we receive deliveries, etc. And looking at inventory towards sales, last year we had 16% throughout the year. This year we increased a bit to 17% inventory towards sales and the ambition is to come down towards the 16% again during the year. Acquisitions of 84 million that relates to the acquisition of Biospectrum and also earnouts that has been paid for previous acquisitions. Net depth increased slightly with 85 million in the quarter. With majority of the loans in Euro, the main driver for the increase was FX. And net debt to EBITDA was 2.3, clearly below the ambition of being at 3 or below that we set up to ourselves back in 2023. Net debt to equity was 0.7, below the internal guidance of 1. So I think we can summarize that the balance sheet now supports both organic and acquired growth going forward. And with that, I hand over to Fredrik again.

Thank you very much, Christina, for that comprehensive review of the financials. Now we will dig into the business area update, starting with Labtech, of course. Labtech had a very strong quarter in the first quarter of 2026. The currency adjusted growth was 3%, which is great, growing in line with or above market, I would say. EBITDA margin improved one percentage points to 13.1, so very strong margin development there. We have a few important drivers of this strong performance. One is the previously won tenders that continue to support growth and margin improvements. On top of that, we can see certain areas that are developing really well. The well-established area in blood gas and the more new and fast-growing areas of immunology and Alzheimer's disease diagnostic are developing very well also. Advanced products, including genomics, which we're going to talk about in more detail soon, are supporting growth and margin development as well. And it's great to note an improvement in demand in the European research arena. We have been seeing for a long time a bit of hesitation around future funding for research. In the previous quarter, we talked about signs of improvement. And I think in this quarter, we can see that those improvements are really taking shape and happening. So positive developments in research spend across the European markets. So that's good news. Something else that's also very good news is, of course, the acquisition of CoaChrome that we were able to conclude last week. We will get into the details of that very soon as well. So moving on to advanced technologies and genomics and gene sequencing is an area that we're very excited about. And this is an important area for life science in general. It's become an indispensable tool in research, but also in diagnostics and healthcare guiding therapies. So it is not only gene sequencing. We're also talking about technologies like single cell technology and spatial processing. transcriptomics that allow for an even more accurate definition of changes and localization of the problem. So very exciting technology there. And these things are really enabling precision medicine with examples such as cancer treatment, rare disease diagnostics, infectious disease diagnostics, and prenatal diagnostics. AdLife companies are active in many markets with these technologies in Scandinavia, in Central and Eastern Europe, as well as in Southern Europe. We are representing more than 10 leading suppliers in this area. And the sales are actually around 400 million Swedish. So this is a substantial business for us in an area that's growing at least 10 to 15% per year. So all in all, a substantial business for AdLife with good margins, high growth, and significant potential. So moving into MedTech, the revenue development was a little bit more slow, but the acquired growth was 2% and organic growth 3% when adjusting for the divestment of the UK endoscopy business. In the UK, we saw a positive sales trend, capital equipment developed well, and the fact that patient waiting lists are coming down are indication that the NHS efficiency measures are indeed starting to take effect. So we are cautiously optimistic about the development in the UK. In Spain, we had a solid underlying demand, but the growth was somewhat held back by doctor strikes in February and March. All in all, in the MedTech business area, we continue to focus on the work to lift margins in selected companies and increasing the share of advanced products, driving growth and margins. So in the MedTech business area, the majority of business is indeed within advanced products, and in this case, specialist devices and equipment. And these are advanced specialist products with high revenues per procedure and proprietary consumables and a substantial service revenue, So to be able to handle these products and make them work in the hands of the hospitals, you need training and technical support resources, oftentimes clinical and patient specific support on site. This gives you the opportunity for a differentiated offering and high value proposition. So this represents around 70% of our products in the medtech business area on average. And the medical supplies, which are more volume products with slightly lower margin that are used in volume during surgical procedures, that represents around 30%. And in this area, we try to have a substantial part of that business with own products. So advanced products represent the majority of the product portfolio within the MedTech business area. But I want to dig into one example. And this is Mediplast. Mediplast is one of the biggest companies within our group. They were the foundation of the whole MedTech business area. And so they've been with us since the start of AdLife back in 2016. They have a very broad range of products. The majority of them today are in the specialist devices and equipment area. As you can see, a broad range of product groups here described in the slide. But they also have a comprehensive portfolio of the more basic medical supplies. They have a high share of own brands. Almost 40% of the product portfolio is actually own brands. And part of that is own manufacturing as well. This is way above the average of the group as a whole. The group as a whole has between 11 or 12% own products. So they are much more than that. And they are quite good at it as well. But I want to highlight the transition that Mediplast has gone through because that has been and a very important and deliberate move to improve the business. Looking at the sales back in 2016, more than half of the business was indeed in the more basic product like medical supplies, 55%. But over the years, they have developed in line with customer demand, adding more and more advanced product to the portfolio. So as you can see now, the advanced products are actually representing almost 80% of the portfolio. This has been a long and deliberate activity to move the portfolio and build the competencies and the customer relationships. It has worked very well. They have grown to become a much bigger company during this period of time. They have raised their margins from single digit into solid double digit margins today. So a great example of a long term effort to drive the change in portfolio towards more advanced products with higher margins. We're super happy to welcome Biospectrum into the AdLife family. This is a fast-growing distributor of surgical solutions in the fields of urology, gynecology and general surgery. They serve hospitals and clinics across England, Scotland, Wales, Northern Ireland through framework contracts with the NHS. The portfolio includes single-use endoscopy, which is a very exciting technology, urology, gynecology, consumables, surgical staplers, and capital equipment. They are just below 100 million in terms of sales. They are certainly contributing to our ambition to improve margins. They are well above the average of 12%, and they have been acquired at a healthy multiple in the range of seven. Moving on, we are very pleased to announce last week the acquisition of CovaChrome. This is an Austrian niche company specializing in advanced coagulation diagnostics. They develop and supply highly specialized assays and reagents for primarily hemostasis diagnostics. The company has a really strong reputation for scientific expertise, quality and service, and maintain long standing relationships with leading hospitals as well as major industrial clients. So this will become a part of the lab tech business. Here we also see a very healthy margin, significantly above the 12% average. and healthy acquisition multiple also. So we're super happy to be able to welcome both CovaChrome and Biospectrum to the AdLive family. Warm welcome to you all. And this takes us to analysis of the acquisition funnel and the acquisition activity. So over 2025 and 2026, we have acquired five companies. But as you can see, the activity has really picked up the pace. because in the past five months we have actually made four acquisitions. So this is a reflection of our increased activity and we are also optimistic about the funnel for future acquisitions, even though we are picky, we are selective, but we are finding very healthy companies of the type that you have just seen. So with that we can summarize the quarter and the outlook for the remainder of the year. We're pleased to note that the margins are continuing to stay at a high level with significant improvements in lab tech, continued high level in medtech in spite of a slightly softer demand development. The gross margin has strengthened, which is also a very good sign. The adjusted organic growth was at 3%, even though doctor strikes in Spain temporarily reduced the growth. And we see positive underlying demand trends in multiple areas. Advanced products, which we have talked about quite a bit in this presentation, are very important for us, and they are relevant in multiple areas. They drive growth and higher margins. And this together with a strong balance sheet, we can now feel very confident in our ability to improve margins, to grow organically, but also to pick up the pace further when it comes to acquisition. So with that, I want to wrap up this presentation and open up for the Q&A. All right. Well, thanks for listening. And I think we are now ready for the questions. So if we can start with Albin. Okay, can you hear me now? Yes, now we hear you.