Arjo’s Capital Markets Day 2019
At Arjo’s Capital Markets Day today, President & CEO Joacim Lindoff, together with his colleagues from the Management Team, will provide an update on the Arjo 2020 business plan and the initiatives that will continue to drive profitable growth for the Group.
In 2018, Arjo reported that the activities initiated within the Arjo 2020 plan have generated results. In its first year as a standalone company, Arjo succeeded in reaching and surpassing its financial targets. Net sales grew organically by 3% and a notable improvement in earnings was acheived.
“We set a clear direction early on that created a positive momentum throughout the organization and generated tangible results,” says Joacim Lindoff, President & CEO of Arjo, adding that the positive performance is expected to continue in 2019, during which Arjo is committed to deliver another year of profitable growth.
Joacim Lindoff will also present an overview of trends and business opportunities, along with the continued implementation of the Arjo 2020 plan. The Group’s main priorities for 2019 are to maintain a strong commercial focus, in for example the US, which remains a key market.
Another focus area includes efficiency enhancements in Supply Chain and Purchasing to gradually improve the margin. In 2019, Arjo will also continue to implement new requirements and adapt its business to the new regulations in Europe – the EU Medical Device Regulation – that will come into effect in May 2020.
At today’s event, CFO Jonas Lindqvist will present Arjo’s financials and provide an update on the Group’s currency exposure. The ambition regarding net debt in relation to EBITDA is to attain a level of below 3.
Anne Sigouin, President North America Sales & Service, will provide insights into the US market and the turnaround that was started in the US in 2018. The US is Arjo’s single largest market and represents nearly 30% of total sales.
“Our activities in the US have gained a firm foothold and we delivered a strong 2018 with organic growth of more than 4%. We also had a good start to 2019 with a major order for medical beds and therapeutic surfaces valued at just over SEK 100 M. These products will be delivered starting the second quarter of 2019, and are the first part of this new collaboration,” says Joacim Lindoff.
Today’s guest speaker is Ludvig Mörnesten from Swedish Care International, who will speak about dementia as a growing challenge due to an ageing global population. Since there is no known cure for dementia, the focus lies in developing non-pharmaceutical alternatives. Improving dementia care is a core focus area for Arjo. By combining Arjo’s product portfolio and expertise, Arjo can contribute to person centric care, which is key for delivering good dementia care.
The previously communicated financial targets for 2018-2020 and the outlook for 2019 are unchanged:
- Average annual organic sales growth of 2-4%
- Average annual reported EBITDA growth of more than 10%
- Cash conversion exceeding 70%
Outlook for 2019:
- Organic sales growth for 2019 is expected to be in line with the 2018 level of approximately 3%.
- Operating expenses are expected to continue to decline slightly as a percentage of sales in 2019.
About Arjo’s Capital Markets Day
Date: March 12, 2019
Time The presentations will start at 11.00 a.m. and are expected to end at about 4:30 p.m. Registration will open at 10:00 a.m.
Venue address: Arjo AB, Hans Michelsensgatan 10, Malmö, Sweden
Speakers: Joacim Lindoff, President and CEO, Jonas Lindqvist, CFO, Anne Sigouin, President North America Sales & Service. Product presentations: Ulrika Olsson, Segment & Product Marketing, Kristian Waldeck, Segment & Product Marketing, Magnus Karlberg, Director Product Development and Mikael Persson, Supply Chain & Operations.
Guest speaker: Ludvig Mörnesten, Swedish Care International
Fund managers, analysts and the media are invited to follow the meeting by telephone or webcast. Please note that questions may not be asked via these channels. The presentations will begin at 11:00 a.m.
Audio webcast: To access the presentations via webcast, please use this link: https://event.on24.com/wcc/r/1958199-1/F1FFD098835932A6410191DC4D218971?partnerref=rss-events
Dial the number below to participate:
Sweden: +46 (0)8 5664 2753
UK: +44 (0)330 336 9125
USA: +1 631-913-1422
Pin code: 52792458#
The presentations will be available via the following link: https://www.arjo.com/int/about-us/investors/reports--presentations/2019/
A recording of the event available for 90 days via the following link: https://www.arjo.com/int/about-us/investors/reports--presentations/2019/
For further information, please contact:
Kornelia Rasmussen, EVP Marketing Communications & Public Relations
Tel: +46 (0)10 335 4810
Saloni Deva, Investor Relations & Corporate Communications
Tel: +46(0)10 335 4867
This information is information that Arjo AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, on March 12, 2019 at 7:40 a.m. CET.
At Arjo, we are committed to improving the everyday lives of people affected by reduced mobility and age-related health challenges. With products and solutions that ensure ergonomic patient handling, personal hygiene, disinfection, diagnostics, and the effective prevention of pressure ulcers and venous thromboembolism, we help professionals across care environments to continually raise the standard of safe and dignified care. Arjo has approximately 6,000 employees worldwide and customers in over 100 countries. In 2018, Arjo sales amounted to SEK 8.2 billion. Arjo is listed on Nasdaq Stockholm and its head office is located in Malmö, Sweden. Everything we do, we do with people in mind. www.arjo.com