Slides
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Welcome and introductions Maria Nilsson New strategy focusing on our strengths while building a platform for the future Andréas Elgaard A closer look at US and Canada; market, position and path forward Jessica Shatzer and Jim Findlater A firm EBIT improvement commitment Andréas Elgaard Q&A Closing Agenda
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Unlocking the potential of being Arjo – a plan we know we can deliver A strategy focusing on our strengths while building a platform for the future Establish a customer-centric operating model with empowered regions – better leveraging group diversity and scale A firm commitment: Profitability improvement of ~350 MSEK vs. 2025 delivered by mid 2029 350 MSEK profit improvement
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Experts in improving mobility in care settings OUR STARTING POINT Healthcare systems are under growing pressure to do more with less – Arjo helps improve patient outcomes, caregiver safety and operational efficiency through solutions that enhance mobility across the care journey. >100 Sales in more than hundred countries 1957 Founded in Eslöv by Arne Johansson ~ 7,000 Number of employees globally 11 billion Turnover 2025 (SEK) 5 Production facilities across three continents
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A diversified revenue base across categories and geographies SALES BY CUSTOMER CATEGORY Acute Care, 63% Long-Term Care, 31% Home care, 4% Other, 2% SALES BY SEGMENT Global Sales, 57% North America, 39% Other, 4% SALES BY SERVICE TYPE Capital goods, 39% Rental, 25% Service, 20% Disposables, 16% 27% Patient handling 7% Hygiene 3% Disinfection 16% Pressure injury prevention 16% Medical beds 7% VTE prevention 3% Diagnostics 20% Service PERCENTAGE OF TOTAL ARJO SALES IN 2025 OUR STARTING POINT
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Strong market presence with large diversified customer base Dedicated team and strong customer relations across several markets and segments Stable, recurring revenue ~60% of sales coming from rental, service and disposables Circularity built into the offering ~45% of Arjo's business has circular qualities A solid foundation to build our future growth OUR STARTING POINT
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We exist for the most vulnerable moments in care. Our solutions empower movement while protecting caregivers and enabling safer, more efficient care. GUIDED BY A STRONG PURPOSE
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We’re great! ...but not good enough
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A resilient core business – but recent years’ performance has not met expectations OUR CURRENT POSITION 2018 –2020 Positive momentum as an independent company • Steady organic growth across core markets • Building a stronger rental and service business • Improved profitability and solid cash generation 2021 –2025 Outcome strategy, pandemic, inflation and geopolitical disruption • Rolled out new strategy, with increased focus on outcome-based solutions. By 2022, it was clear that the strategy was not delivering expected impact • Post-Covid disruption, cost inflation, tariffs and geopolitical uncertainty added pressure • Sales continued to grow, but profitability weakened as volumes remained largely flat +5%Net sales CAGR Adj. EBITDA +5.1 p.p. +4% -3.6 p.p. 10% 20% 30% 2018 2019 2020 2021 2022 2023 2024 2025 8.2 9.0 9.1 9.1 10.0 11.0 11.3 11.0 FINANCIAL PERFORMANCE Net sales (bn SEK) Adj. EBITDA Adj. EBITDA (%)
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We have not fully delivered on our previous financial targets – new targets will be communicated in Q1 2027 OUR CURRENT POSITION Organic sales growth 2023-2025 3-5% annually Adj. EBITDA margin ~23% from full year 2025 Annual cash conversion >80% Dividend Policy The aim is for the dividend to correspond to 30-60% of net income after tax
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The reality for healthcare is evolving
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MEGATRENDS IMPLICATIONS FOR ARJOIMPLICATIONS FOR HEALTHCARE INDUSTRY Ongoing megatrends present clear opportunities for Arjo Low impact ○ ◔ ◑ ◕ ● High impactSource: Industry reports, Arjo Corporate Development Ageing population Increasing chronic conditions and length of care episodes pressuring capacity, costs, and quality Strong demand for mobility-related solutions optimizing caregiver workflows Workforce shortages Staff shortage driving higher costs, strained capacity and financial challenges Rising willingness to invest in labor-saving and injury-preventing solutions Increasing global welfare Growing need for healthcare infrastructure, and increasing expectations on quality, safety, and ageing-at-home Demand for scalable, robust, cost-effective solutions in AC, LTC as well as e.g. ambulatory and home care Digitalization & AI Improving efficiency while enabling more personalized, transparent, and real-time care Increasing demand for clinical insights, improved utilization and prevention Democratization of information Digital-native generations expect instant access and transparency – reshaping healthcare engagement Rising expectations to leverage data and channels to drive end-user preference and experience-led care MARKET CHARACTERISTICS
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MARKET DYNAMICS Structural healthcare demand supports resilient growth across care settings MARKET CHARACTERISTICS Source: Industry reports, OECD Health Statistics, World Health Organization, Arjo Corporate Development ACUTE CARE Patient volume Growth outlook Arjo strategic fit LONG -TERM CARE HOME CARE 2-4% 4-6% 7-8% Good strategic fit with core capabilities Good strategic fit with core capabilities Limited strategic fit with existing capabilities – requires new capabilities 3x expected number of people over age of 80 between 2020-2050 +3.3 p.p. increase in public health spending as % of GDP by 2050 66 to 70% Long-Term Care recipients cared for at home
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MARKET SIZE, GROWTH & ARJO POSITION BY CATEGORYADDRESSABLE MARKET SIZE (bn SEK) Operating in attractive, growing categories with strong market positions MARKET CHARACTERISTICS Medical beds ~85 ~80 ~45 ~30 ~10 Pressure injury prevention Patient handling VTE prevention Hygiene Top 3 position1 5-year CAGR Top 10 Top 3 Top 3 Top 3 5-7% 3-5% 1-3% ~140 ~250 ~40 ~70 Acute Care Long-Term Care Adjacent Care Total Source: Industry reports, Arjo Corporate Development Note: 1) Not accounting for players operating beyond Acute and Long-Term Care Segments Excluding: Diagnostics and Disinfection
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Now is the time to focus on our strengths and build a platform for the future
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Make the Move. Together.
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Our wished position How we want to be perceived by our customers The partner healthcare providers look to when shaping better care – trusted for understanding their needs, being easy to work with, and delivering value through purposeful solutions
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A plan to put Arjo back on track • Build a stronger, more focused portfolio and accelerate speed-to-market • Commercial excellence to accelerate value generation • Become a digital and AI-enabled care partner • Own and expand leadership in Long-Term Care • Strengthen and scale in Acute Care • Expand selectively into new care settings • Establish a fit-for-growth operating model • Build a purpose-driven performance culture • Contribute to better and more sustainable healthcare Win where we have the right to play Simplify to amplify Working better, together MAKE THE MOVE. TOGETHER.
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Own and expand leadership in Long-Term Care Convert scale, customer relationships and integrated propositions into a leading position in Long-Term Care – our most profitable growth opportunity, with significant headroom in underpenetrated markets Strengthen and scale in Acute Care A disciplined, returns-focused presence: competing where our solutions are valued and competitive, rather than pursuing volume across the full segment Expand selectively into new care settings Selective expansion into care settings beyond current footprint, prioritized by market attractiveness and fit with our capabilities STRATEGIC PRIORITIES Win where we have the right to play
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• Proven leadership – market-leading positions across several markets • Significant whitespace – penetration varies widely across regions, reflecting historical Arjo focus • A clear path to capture it – replicate proven capabilities to deepen penetration market by market Own and expand leadership in Long-Term Care Australia Canada USA Great Britain 27% 73% 65% 35% 10% 90% 23% 77% Arjo penetration today Other segments Market example of strong LTC exposure EXAMPLE OF CURRENT LONG- TERM CARE SALES VS. TOTAL SALES
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40% 60% 85% 15% 21% 79% 27% 73% Strengthen and scale in Acute Care Switzerland USA Netherlands Canada EXAMPLE OF CURRENT ACUTE CARE SALES VS. TOTAL SALES • Strong positions – 85% Acute Care exposure in the US shows our offering competes and wins • Substantial room to scale – increase Acute Care exposure in underpenetrated markets • Deepen role in Acute Care ecosystem – through stronger solutions, partnerships and market-specific capabilities Arjo penetration today Other segments Market example of strong AC exposure
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6% 94% 12% 88% 9% 91% 8% 92% Expand selectively into new care settings Canada Great Britain New Zealand Australia EXAMPLE OF CURRENT HOME CARE SALES VS. TOTAL SALES • Established foothold – Home Care already represents ~4% of Arjo sales in selected markets • Growing adjacency – the shift toward care outside hospitals creates opportunities close to Arjo’s core • A disciplined path to expand – pursue selectively where need, strategic fit and profitable economics align Arjo penetration today Other segments
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Build a stronger, more focused portfolio and accelerate speed-to-market Clear customer-value driven portfolio choices and stronger end-to-end product category leadership to improve time-to-market and strengthen commercial relevance Shift to solution led engagement anchored in our products – starting from customer needs and proving the value we create across the care journey Commercial excellence to accelerate value generation Become a digital and AI-enabled care partner Utilize digital, data and pragmatic AI capabilities across products and operations to deliver measurable outcomes for customers and drive efficiency STRATEGIC PRIORITIES Simplify to amplify
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PRODUCT PORTFOLIO OPTIMIZATION Long tail of low-grossing products / SKUs Sharper portfolio choices and stronger commercial excellence to accelerate profitable growth Products • Sharpen portfolio choices – invest, simplify, partner or exit • Reduce long-tail complexity – rationalize low-value products & SKUs • Focus R&D and resources – strengthen lifecycle governance and speed-to-market COMMERCIAL EXCELLENCE Average selling price Contract variance Margin variance • Strengthen pricing discipline – clearer guardrails & value-based pricing • Leverage best practice to address contract and transaction variance • Improve value capture – stronger transparency and commercial focus Products 0% 20% 40% 60% 80% 100% Accumulated net sales
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Establish a fit-for-growth operating model Systematically scale best practice — combining the benefits of scale with local market responsiveness and commercial agility Build a purpose-driven performance culture Leadership capabilities, clear accountability and a performance culture that lets us execute at speed Contribute to better and more sustainable healthcare A customer and regulatory requirement turned into competitive advantage STRATEGIC PRIORITIES Working better, together
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US CANADA SOUTH & WEST EUROPE NORTH & CENTRAL EUROPE INTERNATIONAL & DISTRIBUTOR- LED MARKETS A fit-for-growth operating model – designed to simplify Arjo and strengthen commerciality • Five empowered, customer-facing regions with clear P&L accountability • New Group Sales function to facilitate commercial excellence across the regions • Strengthened offer creation and R&D through new Group Portfolio function • A more focused Group Operations • Lean support functions providing direction, expertise and common frameworks CUSTOMER GROUP SALES GROUP PORTFOLIO GROUP OPERATIONS FINANCE • TRANSFORMATION • QUALITY • HR • LEGAL • COMMUNICATION
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Arjo US – market, position and path forward JESSICA SHATZER
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• Hospital operators’ margins are improving, but remain fragile • Increased healthcare construction and capital investments occurring • Increasing focus on preventable events Financial and operational Customer dynamics • Healthcare M&A is accelerating • Patient volumes increasingly directed towards the ASC 1 setting • Sustainability initiatives continue to grow in importance US market characteristics Market trends • Ageing population that desires to ‘age in place’ • Acuity levels in facilities are rising as more care is delivered in communities • Bariatric needs continue to rise, despite growing prevalence of GLP-1s Note: 1) Ambulatory Surgery Centre
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Arjo US in brief SALES BY PRODUCT CATEGORY Patient handling & hygiene, 49% Rental, 28% Service, 11% VTE prevention, 9% Medical beds and surfaces, 4% SALES BY SEGMENT Acute Care & gov, 85% Long-Term Care, 10% Home Care, 3% Other, 2% CURRENT FOOTPRINT • 850 US employees • 63 service centers • Direct sales, service, and clinical approach • ReNu reprocessing facility
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A strong US position – built on Acute Care leadership 7 quarters of profitable growth >7% CAGR since 2022 across capital categories ~7% CAGR since 2022 in core rental KEY DRIVERS • Customers re-opt for Arjo when equipment replacements are due • Strong traction in project sales for new or refurbished facilities • Expanding partnerships with key hospital networks to encompass the full breadth of Arjo solutions
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Two strategic focus areas shaping Arjo's next phase of US growth LONG -TERM CARE AND REPROCESSING
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Ageing demographics and rising acuity drive market growth • Fragmented competitive landscape creates opportunity for share gains • Our solutions improve resident outcomes, caregiver safety, and operational efficiency • Sharper commercial focus and wider reach accelerate growth Commercial strategy • Cross-sell the portfolio • Sharpen value proposition • Expand direct and distributor reach Increasing penetration in Long-Term Care – a scalable growth strategy
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Safe reprocessing of single use medical devices • US healthcare providers face rising pressure on sustainability and circularity • Arjo ReNu reprocesses single-use devices with hot water alone — no chemicals • Helps hit sustainability targets while cutting costs, safely Commercial strategy • Expand reach • Deploy new business models • Broaden capabilities Advancing sustainability while strengthening financial performance Reprocessing reduces the environmental impact from healthcare. Through Arjo's reprocessing program: Product lifetimes can be extended up to Compared with single-use alternatives, climate impact can be reduced by up to products were reprocessed in 2025
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An attractive market with significant potential ahead Strong core business in Acute Care & Government Affairs providing solid platform for growth Scalable opportunities in Long-Term Care and reprocessing Continued focus on execution of our growth agenda will lead to market penetration and gain share IN SUMMARY
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Arjo Canada – market, position and path forward JIM FINDLATER
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The problems to solve Individuals are entering institutional care with higher acuity and less mobility Canadian healthcare institutions are still experiencing a shortage of resources CANADA MARKET CHARACTERISTICS The average age of the resident is increasing annually
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Canadian healthcare system What we spend 12.7% of total GDP Approximately 71% is publicly funded Who pays Provinces & territories generate 80% of the spend Provinces differ significantly in execution Shared priorities Expanding access to primary care Supporting health workers and reducing backlog Supporting access to home care and safe LTC CANADA MARKET CHARACTERISTICS in 2025 $399 Billion $9,626 / Sources: CIHI, National Health Expenditure Trends, 2025 (released Nov. 27, 2025) — total spend, per-capita, % of GDP, public share. Canadian Medical Association, “How is health care funded in Canada?” — provincial/territorial share of public health spending.
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Arjo Canada in brief CURRENT FOOTPRINT 240 employees Direct sales, service, and clinical approach 11 service centers Production facility in Magog, QC SALES BY PRODUCT CATEGORY SALES BY SEGMENT Acute care, 27% Long-term care, 65% Home care, 6% Other, 2% Patient handling & hygiene, 57% Service, 21% Rental, 14% Medical beds & surfaces, 4% Disinfection, 3% VTE prevention, 1%
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5+ years of consistent, profitable growth 9% Revenue CAGR from 2021 through 2025 22 consecutive quarters of growth from Q4 2020 Consistent year-over-year profit improvement KEY DRIVERS • Disciplined sales management process and commercial excellence execution • Enhanced corporate partnerships and conversions • Profitable rental contribution and turnaround • Direct manufacturing, made in Canada
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Deeper in Long-Term Care, stronger in Acute Care, explore Home Care OUR NEXT 3 -5 YEARS APPROACH
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Opportunity to leverage our footprint beyond rental • Approximately 94,000+ beds • Opportunity to expand full Arjo presence Commercial strategy • Dedicated Acute Care team and strategy • Defend and expand rental solutions • Grow via stronger partnerships in wellness and patient handling Strengthen and scale in Acute Care Source: CIHI, Hospital Beds, 2024–2025 data tables and Number of Acute Care Beds indicator (beds staffed and in operation).
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Long-Term Care remains attractive for expansion • Approximately 200,000+ beds • New funded beds in the sector • Under-penetrated with Therapeutic Surfaces and Medical Beds Commercial strategy • Utilize Acute Care reputation to further grow LTC position • Establish partnerships with homes on PIP programs • Pursue new build project wins Further expand leadership position in Long-Term Care Source: CIHI, Profile of Residents in Residential and Hospital-Based Continuing Care, 2024–2025 data tables; CIHI long-term care reporting.
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Government increasingly funding home care • Provincial Governments actively investing in keeping people at home • Not enough institutional beds to accommodate ageing population Commercial strategy • Invest in a more dedicated structure and commercial execution • Utilize Therapeutic Surfaces to promote prevention via OT/PT stakeholders in the community • Introduce flexible models to deliver effective solutions Selectively explore enhanced presence in Home Care
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An attractive market for continued success IN SUMMARY Build on commercial momentum Pursue targeted opportunities across sectors Positioned to deliver consistent, sustainable results
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Arjo 2026-2029 WHAT TO EXPECT
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~350 MSEK EBIT improvement vs. 2025 by mid 2029, with clear line-of-sight of initiatives to deliver Operating model & re-engineered cost structure • Simpler & clearer accountabilities • Harmonized ways-of- working • Empowered regions & lean Group functions Procurement spend reduction • Supplier & spend consolidation • Sourcing & specification optimization • Capability improvements to sustain Commercial excellence & growth • Under-penetrated segment growth • Pricing & value capture • Differentiated GTM / distributor models Product portfolio optimization • Sharper portfolio choices • SKU rationalization • Focused R&D investment & governance Supply chain optimization • Manufacturing network & productivity • Inventory & planning • Logistics & distribution Capital efficiency • Working capital discipline • Rental fleet productivity • Optimized CAPEX allocation Growth & capability- enhancing M&A • Strengthen core product leadership • Selective adjacent, segment & geographic expansion ~350 MSEK EBIT improvement vs. 2025 delivered by mid 2029 OUR PROFITABILITY TARGET BY MID 2029 Further value creation potential…
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Majority of EBIT impact by 2028, enabled by ~370 MSEK restructuring largely incurred by 2027 EBIT IMPROVEMENT FROM STRATEGIC INITIATIVES 2025 2026 2027 2028 2029 ~1.5x ~350 MSEK • EBIT improvement ramps progressively from 2027 • Majority of targeted impact realized by 2028 – full impact expected by mid 2029 • Restructuring costs of ~370 MSEK to enable EBIT improvement PHASING OF EBIT IMPROVEMENT AND RESTRUCTURING EBIT baseline in 2025 (MSEK) Yearly EBIT improvement from initiatives Accumulated EBIT improvement from initiatives ~370 MSEK in restructuring
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A stronger core to create a platform for expansion from 2029 PHASES IN ARJO STRATEGIC JOURNEY – MAKE THE MOVE. TOGETHER. 2026-2029 2029- Unlock the potential of Arjo Re-connect to core strengths and establish a fit-for-growth platform Expand from a stronger core Scale from a core platform, and expand into selected geo markets, segments, product categories Allowing us to… M&A in core and adjacent markets We will selectively act on strategic targets as they become actionable
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Regular updates on progress Interim report, January – September October 22, 2026 Year-end report 2026 January 28, 2027 Present new financial targets Q1 2027 We will provide regular updates on progress, starting with these milestones: WHAT TO EXPECT
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Unlocking the potential of being Arjo – a plan we know we can deliver A strategy focusing on our strengths while building a platform for the future Establish a customer-centric operating model with empowered regions – better leveraging group diversity and scale A firm commitment: Profitability improvement of ~350 MSEK vs. 2025 delivered by mid 2029 350 MSEK profit improvement
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Q&A
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Thank you for today!