Arjo — Interim / Quarterly Report 2024

Jul 12, 2024

INTERIM REPORT JANUARY–JUNE 2024

Q2

Growth and improved profitability

"Our journey towards long-term profitability improvement continues and we deliver yet another quarter of growth and increased profitability. The positive development in rental and service continued globally and we navigate the market in a good way, despite short-term challenges. There is a major need for investments in healthcare and overall we see healthy growth opportunities moving forward."

JOACIM LINDOFF PRESIDENT & CEO

April–June 2024 in brief

• Net sales increased to SEK 2,810 M (2,686). Net sales grew organically by 3.7%.
• Adjusted EBITDA increased to SEK 496 M (471).
• Adjusted operating profit increased 10.6% to SEK 232 M (210).
• Profit after financial items increased to SEK 164 M (139).
• Earnings per share rose to SEK 0.44 (0.38).
• Cash flow from operations amounted to SEK 344 M (512), corresponding to a cash conversion of 69.7% (113.8).

Financial summary

	Quarter 2	Quarter 2	Jan–Jun	Jan–Jun	Rolling	Full-year
SEK M	2024	2023	2024	2023	12 months	2023
Net sales	2,810	2,686	5,569	5,324	11,225	10,980
Gross profit1)	1,224	1,146	2,424	2,283	4,876	4,735
Gross margin, %1)	43.6	42.7	43.5	42.9	43.4	43.1
Adjusted EBITA1, 2)	293	283	602	570	1,275	1,244
Adjusted EBITA margin, %1, 2)	10.4	10.5	10.8	10.7	11.4	11.3
Adjusted EBITDA1, 2)	496	471	999	946	2,069	2,017
Adjusted EBITDA margin, %1, 2)	17.7	17.5	17.9	17.8	18.4	18.4
Operating profit (EBIT)1)	229	189	448	390	942	884
Adjusted operating profit (EBIT)1, 2)	232	210	481	429	1,008	957
Profit after financial items1)	164	139	339	289	690	640
Net profit for the period1)	120	104	251	218	514	480
Number of shares, thousands	272,370	272,370	272,370	272,370	272,370	272,370
Earnings per share, SEK1)	0.44	0.38	0.92	0.80	1.89	1.76
Cash flow from operations1)	344	512	600	762	1,899	2,061
Cash conversion, %1)	69.7	113.8	62.1	83.9	94.8	105.9

1. Comparative figures for Quarters 1 – 3 2023 have been restated, refer to Note 11 Restatement of calculations of intra-Group gains on page 18 and Financial data per

quarter on page 17. 2. Before exceptional items. See Alternative performance measures on page 16 and Definitions on page 20.

Solid growth opportunities ahead

Demand remained healthy globally and the Group grew organically by 3.7%.

We delivered a stable quarter in North America where market conditions in the US continue to improve and we grow our business compared to last year, while the profitable growth in Canada continues.

The trend in Global Sales was overall positive, with a mixed picture in the markets. In Europe, elections in the UK and France have temporarily led to some postponements of investment decisions for capital equipment. However, there is a significant need for investments in several European markets, and Germany, for example, is undergoing an extensive healthcare reform that is expected to result in increasing business opportunities for us in the longer term. We also see increased investment capacity in several growth markets, where we in many cases are well positioned to capitalize on these prospects going forward.

Improved profitability

Our journey towards long-term profitability improvement continues. The gross margin increased according to plan during the quarter, and we improved both sequentially and compared with last year. Service and Rental, both important drivers for increased growth and profitability moving forward, continued to perform well. We can also see additional improvement potential both in terms of product mix and internal efficiency over time.

Implemented price adjustments are generating the expected effects and we have good cost control across the organization. Despite the elevated cost levels, we were able to reduce operating expenses in relation to the Group's sales, and adjusted operating profit improved by over 10% in the quarter.

Solid growth opportunities

As previously communicated, the distribution agreement for the SEM scanner will not be extended. This decision does not affect our long-term direction, and we are now fully focusing on continuing to develop our own business in pressure injury prevention, where we see healthy demand globally.

Having followed various election campaigns, we can conclude that the demographic challenge facing healthcare remains one of the biggest problems to solve for the future. Moving forward, this is expected to

drive increased investment in healthcare – and thus present further growth opportunities for us.

Long-term care continues to be a prioritized growth segment for us. Within elderly care, approximately 60–80% of residents are affected by dementia or other cognitive impairment, which places higher demands on healthcare. During the quarter, another two of our products received dementia accreditation from the international knowledge and competence center DCDS at the University of Stirling in Scotland, which proves our strong position in this area.

2024 largely follows the trends we saw last year, with positive development in Rental and Service and an increasing willingness to invest in capital equipment. With a stable first half of the year, we are now looking forward to a strong finish.

JOACIM LINDOFF PRESIDENT & CEOW

Continued growth

3.7%

organic sales growth in second quarter of 2024

Group performance

Net sales per segment

SEK M	Quarter 2 2024	Quarter 2 2023	Organic change	Jan–Jun 2024	Jan–Jun 2023	Organic change	Rolling 12 months	Full-year 2023
Global Sales	1,649	1,557	5.2%	3,197	3,059	3.8%	6,490	6,352
North America	1,070	1,030	2.6%	2,175	2,039	6.3%	4,355	4,219
Other	94	103	–10.7%	202	235	–16.1%	391	424
Eliminations	–3	–4	—	–5	–9	—	–11	–15
Total	2,810	2,686	3.7%	5,569	5,324	4.0%	11,225	10,980

Net sales and results

Second quarter of 2024

Net sales for the quarter amounted to SEK 2,810 M (2,686), corresponding to an organic increase of 3.7%.

In North America, growth increased 2.6% organically with a healthy performance in rental and service and yet another strong quarter in Canada. The US grew slightly year-on-year, but was somewhat held back by lower sales in DVT – where the market has been more challenging. In addition, market conditions are still holding back sales of oucome-based programs for patient handling and pressure injury prevention in the US.

Global Sales grew 5.2% organically with a continuing positive trend in rental and service. Western European markets such as France, Italy, Ireland and Austria made a positive contribution in the quarter. The UK fell back slightly due to uncertainty associated with the recently held election, and noted lower sales of capital goods and diagnostic solutions in the quarter. In Rest of the World, solid demand was noted in Australia, Africa, Hong Kong and Japan.

The gross margin increased to 43.6% (42.7), mainly driven by high volumes and margin improvements in patient handling and service. Implemented price adjustments and continued efficiency improvements in the operations partly offset the higher cost levels in the quarter.

Operating expenses developed according to plan and cost control throughout the value chain remained good.

Exceptional items amounted to SEK –3 M.

Adjusted EBITDA rose to SEK 496 M (471). The adjusted EBITDA margin increased to 17.7% (17.5).

Net financial items for the quarter amounted to SEK –65 M (–50). Negative currency effects in net financial items amounted to SEK –4 M (12) for the quarter.

January–June 2024

Net sales for the period increased organically by 4% to SEK 5,569 M (5,324). Sales were healthy in service and rental, and sales of capital goods also performed well in many markets.

Growth in North America increased 6.3% organically in the period, with a positive trend in both the US and Canada. Challenging market conditions in the US continued to hold back the performance of the outcome-based programs.

Global Sales grew organically by 3.8% during the period. The sales trend for the quarter was favorable in several markets in Western Europe, such as France, Italy and Ireland. Several markets in Rest of the World also performed well, with particularly healthy growth in Australia, India and Singapore.

The gross margin increased to 43.5% (42.9), mainly driven by high volumes and margin improvements in patient handling and rental. Implemented price adjustments and continued efficiency improvements in the operations partly offset inflation-related cost pressure.

Operating expenses for the period amounted to SEK 1,945 M (1,863). Adjusted EBITDA for the period increased to SEK 999 M (946). The adjusted EBITDA margin increased to 17.9% (17.8).

Net financial items amounted to SEK –109 M (–100) for the period. Positive currency effects in net financial items amounted to SEK 13 M (11) for the period.

Currency effect

Q2

SEK M	Quarter 2 2024	Jan–Jun 2024
Translation effect (vs 2023)
Sales	+26	+34
Cost of goods sold	–18	–21
Gross profit	+8	+14
Operating expenses	–9	–14
Restructuring and other operating income/expenses	–0	–0
Total translation effect, EBIT	–2	–1
Transaction effect (vs 2023)
Cost of goods sold	+1	–1
Recognized remeasurement effects
Other operating income/expenses	–5	+2

Translation effects for the quarter amounted to SEK –2 M and transaction effects to SEK +1 M. In addition, the recognized revaluation effects of operating receivables and liabilities amounted to SEK –5 M for the quarter.

Cash flow and financial position

Cash flow from operations amounted to SEK 344 M (512) for the quarter. The lower cash flow was mainly due to the effect from the change in working capital of SEK +21 M (+121) and higher taxes paid of SEK –70 M (–16). The lower effect of tied-up working capital was mainly driven by the change in inventories of SEK +5 M (+65) and current receivables SEK +39 M (+96). Due to the lower cash flow, cash conversion declined year-on-year and amounted to 69.7% (113.8) for the quarter.

Net investments for the quarter amounted to SEK 112 M (136), divided between tangible assets of SEK 36 M (66) and intangible assets of SEK 76 M (70). The investments in tangible assets include investments in the rental fleet of SEK 32 M (47).

The Group's cash and cash equivalents amounted to SEK 740 M (1,068) and interest-bearing net debt was SEK 4,547 M (5,271). Arjo has contracted unutilized credit facilities of SEK 4,827 M (3,523) available for refinancing outstanding commercial paper. The equity/assets ratio amounted to 50.0% (47.1). Net debt/adjusted EBITDA declined to 2.4% (2.8).

Research and development

Arjo's gross research and development costs for the quarter amounted to SEK 83 M (74), of which SEK 40 M (38) was charged to operating profit. The gross costs correspond to 3.0% (2.7) of consolidated net sales.

Outlook 2024

Organic sales growth for 2024 is expected to be within the Group's target interval of 3–5%.

Other events during the quarter

Arjo not extending distribution agreement for SEM scanner

As previously communicated, a decision was made during the quarter not to extend Arjo's distribution agreement for Bruin Biometrics' Provizio® SEM scanner. The reason is that the parties are too far apart in i.e. expected commercial development. The decision does not impact Arjo's outlook of 3–5% organic net sales growth for 2024 and onwards.

The distribution agreement will end no later than December 31, 2024, according to the agreement terms. Discussions on how to best terminate the distribution agreement are currently ongoing and a number of related details are still under negotiation. Arjo will give an update when there is more information to share.

Two additional Arjo products receive recognized dementia certification

During the quarter, two more of Arjo's products, the shower chair Carino and the shower trolley Carevo, have received dementia accreditation from the international knowledge and competence center DSDC (Dementia Services Development Centre) at the University of Stirling in Scotland. DSDC reviews and assesses product suitability for use in a dementiafriendly environment and Arjo currently holds a leading position in terms of the number of dementia-certified products.

It is estimated that 60–80% of residents in long-term care facilities suffer from dementia or other cognitive impairment. This places high demands on both care and care environment, and better meeting the care needs of dementia patients is high on the agenda for Arjo's development of long-term care products.

Arjo ReNu recognized at leading conference on sustainability in healthcare

During the quarter, Arjo representatives presented at the CleanMed conference in Salt Lake City, US. The healthcare sector today has a negative environmental impact through the use of disposables or consumables, Arjo gave a well-attended presentation focused on the Group's ReNu business.

Arjo ReNu enables the reuse of medical devices, mainly consumables such as DVT garments, based on an environmentally friendly water-based, high-temperature process that does not use any chemicals or carcinogens. A recent life cycle assessment of DVT garments showed a 54–64% reduction in the environmental impact using the ReNu method compared to disposables.

Changes to the Arjo Management Team

Katarzyna Bobrow, Executive Vice President Quality & Regulatory Compliance, has decided to leave her position at Arjo after 17 years with the Group, eight of which were in her current role. The recruitment process for Katarzyna's replacement is underway and a temporary internal solution is in place for a short transition period.

In addition, Jonas Cederhage, Executive Vice President, Product Development, Supply Chain & Operations, had decided to leave Arjo. Jonas will remain in his position at Arjo until the end of the year, and the process of appointing his successor has been initiated.

2024 Annual General Meeting

Arjo AB's Annual General Meeting was held on April 18 at Glasklart in Malmö, Sweden. Shareholders who did not wish to attend the AGM physically could exercise their right to vote by postal voting before the AGM in accordance with the regulations in Arjo's Articles of Association. The main resolutions of the Annual General Meeting were as follows:

• Johan Malmquist (Chairman), Carl Bennet, Eva Elmstedt, Dan Frohm, Ulf Grunander, Carola Lemne and Joacim Lindoff were re-elected as members of the Board, and Ulrika Dellby was elected a new Board member.
• Fees to the Board of Directors and auditors were resolved on in accordance with the Nomination Committee's proposals.
• Dividends were resolved on in accordance with the Board's and the CEO's proposal.
• The AGM resolved to approve the revised Guidelines for Remuneration to Senior Executives as proposed by the Board of Directors.
• The AGM resolved to approve the Board of Directors' report over remuneration in accordance with Chapter 8, Section 53 a of the Swedish Companies Act, regarding the 2023 fiscal year.

More information about the AGM and the resolutions are available on the Group's website: https://www.arjo.com/int/about-us/corporate-governance/general-meetings/annual-general-meeting-2024/

Other information

Risk management

Customers and healthcare reimbursement systems

A considerable share of Arjo's revenue is derived from sales of products to public sector entities. A political discussion taking place in certain countries concerns whether private healthcare providers should be able to offer publicly funded healthcare services. There is a risk that authorities in countries where Arjo operates will decide to limit or completely discontinue public funding of private healthcare, which could affect the establishment of new hospitals and other healthcare facilities and their purchasing of healthcare products, such as Arjo's emergency and long-term care products. Sales of the Group's products are also dependent on various reimbursement systems in each of Arjo's markets. In many of Arjo's markets (such as the US), it is often the patient's insurance company that – within the framework of the existing political reimbursement system – funds or subsidizes products for the patient's emergency or long-term care. Some of the success for sales of Arjo's products in these markets is dependent on whether Arjo's products have been approved for reimbursement under the various reimbursement systems. Since Arjo conducts operations in many different countries and markets, the above-named risks are limited for the Group as a whole. As part of Arjo's strategy, the Group is increasingly focusing on highlighting the clinical and financial benefits of the Group's products and solutions, something that further reduces the risks described above.

Research and development

Arjo's future growth is also dependent on the continued expansion of new product segments and new product types in existing product segments, which is dependent on the Group's ability to influence, predict, identify and respond to changing customer preferences and needs. Arjo invests in research and development in order to produce and launch new products, but there is no guarantee that any new products will achieve the same degree of success as in the past. Nor is there any certainty that Arjo will succeed in predicting or identifying trends in customer preferences and needs, or that Arjo will identify them earlier than its competitors. To maximize the return on research and development efforts, the Group has a highly structured selection and planning process to ensure that the Group prioritizes correctly when making decisions about potential projects. This process includes careful analyses of the market, technological progress, circularity, product life cycle, choice of production method and selection of subsuppliers. Development activities are conducted in a structured manner and the deliveries of every project undergo a number of fixed control points. Arjo is focused on products and solutions that will lead to more efficient care, in which more patients can be treated, which is expected to drive demand from end customers and therefore market growth. Product development that leads to a broader product range is a means for increasing organic growth in the market in which Arjo operates.

Product liability and damage claims

As a medical device supplier, Arjo, like other healthcare industry players, may sometimes be subject to claims related to product liability and other damage claims. Such claims could involve large financial amounts, result in significant legal expenses and negatively affect the company's reputation and customer relationships. Arjo limits the risk of product liability and other damage claims related to its products and their use through the company's extensive quality and safety activities. A comprehensive insurance program is in place to cover any liability risks (including product liability) to which the Group is exposed.

Protecting and managing the infringement of intellectual property rights

Arjo invests significant financial amounts in research and development, and is continuously developing new products and technological solutions. To secure revenue from these investments, new products and technologies must be protected from unlawful use by competitors. If possible and appropriate, Arjo protects its intellectual property rights by registering patents, design and trademarks. The Group is also dependent upon know-how and trade secrets that cannot be protected under intellectual property law.

Clear instructions are in place within the Group for how to prevent, investigate and manage potential infringements. In addition, procedures are in place to ensure efficient maintenance of the existing portfolio of rights.

Changes related to general economic and political conditions

Arjo operates in several parts of the world and, like other companies, is affected by general global economic, financial and political conditions. Demand for Arjo's medical devices and solutions is influenced by various factors, including general macroeconomic trends. Uncertainty about future economic prospects, including political concerns, could adversely affect customers' decisions to buy Arjo's products and solutions, which would adversely affect Arjo's operations, financial position and results. Furthermore, changes in the political situation in a region or country, or political decisions affecting an industry or country, could also have a material adverse impact on sales of Arjo's products. Since Arjo operates in a large number of geographical markets, this risk is limited for the Group as a whole.

Since March 2, 2022, Arjo has stopped all deliveries and production of equipment destined to Russia due to the Russian invasion of Ukraine until future notice. This is in line with the sanctions imposed on Russia by other countries. Arjo is carefully monitoring market developments given the turbulent economic situation following the start of the invasion.

The Group is also monitoring developments in the Middle East due to the violence in Israel and Gaza.

Arjo is also closely monitoring the global inflation trend.

Risks in the value chain

Unforeseen and sudden events could cause disruptions to production or the supply chain, which could result in higher costs, delivery delays and non-delivery to Arjo's customers. This in turn could have a negative impact on the Group's earnings.

Like many other companies, Arjo has been affected by lower availability of critical components, such as electronic components. A number of measures have been implemented to mitigate this risk and to ensure availability and delivery reliability to Arjo's customers, and this matter is being managed as a high priority.

Due to the escalated conflict in the Middle East, with the Strait of Hormuz having become another area of conflict, Arjo is closely monitoring developments to avoid any negative impact in its value chain.

Sustainability-related risks

Arjo works actively to monitor and continuously evaluate sustainabilityrelated risks and their impact on the Group's operations and earnings. This takes place in the form of, for example, a regular materiality analysis, monitoring targets and commitments and by auditing various units within the company, such as the security aspects of the Group's production facilities or random testing of regulatory compliance. The Group has established a governance structure that involves both the company management and the Board, and works continuously on improving the company's sustainability activities and minimizing associated risks.

Authorities and supervisory bodies

The healthcare market is highly regulated in all of the countries where Arjo operates. Arjo's product range is subject to legislation, including EU directives and implementing acts regarding medical devices, and the US Food and Drug Administration's (FDA) regulations and related quality systems requirements, which also encompass comprehensive evaluation, quality assurance and product documentation.

Arjo devotes significant efforts and resources to implementing and applying guidelines to ensure regulatory compliance. Annual audits are performed by designated accreditation bodies to ensure compliance for continued CE marking of Arjo's products and international legal requirements, including the FDA, MDSAP, EU MDR and UK MDR.

All of the Group's production facilities are also certified according to ISO 13485 (Medical devices – quality management systems) and ISO 9001 (Quality management systems) from BSI.

Financial risk management

Through its operations, Arjo is exposed to a number of financial risks. Arjo's risk management is regulated by a policy established by the Board. Ultimate responsibility for managing the Group's financial risks and developing methods and policies for mitigating these risks lies with Group management and Group Finance. The Group's financial risks comprise currency risk, interest-rate risk, credit and counterparty risk, and tax risk, of which currency is the most important risk.

Risk of cyber attacks

Arjo is dependent on IT and its surrounding infrastructure and thus is exposed to the risk of cyber attacks and other forms of intrusion and data security. A defined, governing process is in place to counteract potential risks in this area, and the company works actively on risk assessments of its IT infrastructure and sensitive data as well as testing of these areas. This includes defined mitigating processes and controls, known as IT General Control (ITGC) to protect the company. The internal control environment is evaluated every year both by the company's CISO and by the external auditors. Sensitivity analyses and penetration and restoration tests are performed regularly during the year to ensure sufficient security levels for systems, processes and data. All employees undergo training in IT security and such training is part of the onboarding process for new employees.

Transactions with related parties

Transactions between Arjo and companies in Getinge Group are specified in Note 10.

Forward-looking information

This report contains forward-looking information based on the current expectations of Arjo's Management Team. Although management considers the expectations presented by such forward-looking information to be reasonable, there is no guarantee that these expectations will prove correct. Consequently, actual outcomes may vary considerably compared with what is stated in the forward-looking information, due to such factors as changed conditions regarding the economy, market and competition, changes in legal and regulatory requirements, as well as other policy measures and fluctuations in exchange rates.

This interim report is unaudited.

Assurance

The Board of Directors and CEO assure that the interim report provides a true and fair review of the Parent Company and the Group's operations, position and earnings and describes the material risks and uncertainties faced by the Parent Company and the Group.

Malmö, July 12, 2024

Johan Malmquist Chairman of the Board

Dan Frohm Board member

Carl Bennet Vice Chairman of the Board

Ulf Grunander Board member

Sten Börjesson Board member Employee representative

Ulrika Dellby Board member

Carola Lemne Board member

Eva Elmstedt Board member

Joacim Lindoff Board member President & CEO

Kajsa Haraldsson Board member Employee representative

Consolidated financial statements

CONSOLIDATED INCOME STATEMENT

SEK M	Note	Quarter 2 2024	Quarter 2 20231)	Jan - Jun 2024	Jan - Jun 20231)	Full-year 2023
Net sales	2	2,810	2,686	5,569	5,324	10,980
Cost of goods sold1)	11	-1,586	-1,540	-3,145	-3,041	-6,244
Gross profit1)	11	1,224	1,146	2,424	2,283	4,735
Selling expenses		-562	-538	-1,117	-1,072	-2,163
Administrative expenses		-382	-375	-749	-719	-1,462
Research and development costs	4	-40	-38	-79	-71	-149
Exceptional items	5	-3	-21	-32	-40	-73
Other operating income and expenses		-4	19	8	15	7
Income from participations in associated companies		-3	-3	-6	-6	-11
Operating profit (EBIT)1)	3, 11	229	189	448	390	884
Net financial items		-65	-50	-109	-100	-243
Profit after financial items1)	11	164	139	339	289	640
Taxes1)	11	-44	-35	-88	-72	-160
Net Profit for the period1)	11	120	104	251	218	480
Attributable to:
Parent Company shareholders1)	11	120	104	251	218	480
Number of shares, thousands		272,370	272,370	272,370	272,370	272,370
Earnings per share, SEK1, 2)	11	0.44	0.38	0.92	0.80	1.76

1. Comparative figures for Quarter 1 - 2 2023 have been restated, refer to Note 11 Restatement of calculation of intra-Group gains.

2. Before and after dilution. For definition, see page 20.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SEK M	Note	Quarter 2 2024	Quarter 2 20231)	Jan - Jun 2024	Jan - Jun 20231)	Full-year 2023
Net profit for the period1)	11	120	104	251	218	480
Other comprehensive income
Items that cannot be restated in profit
Actuarial gains/losses pertaining to defined-benefit pension plans		21	-106	3	-142	-32
Tax attributable to items that cannot be restated in profit		-5	27	-1	36	-10
Items that can later be restated in profit
Translation differences1)	11	-51	497	434	532	-63
Hedges of net investments		20	-77	-53	-98	4
Tax attributable to items that can be restated in profit		-1	-23	-19	-24	2
Other comprehensive income for the period, net after tax1)	11	-17	317	364	303	-99
Total comprehensive income for the period1)	11	103	421	616	521	382
Comprehensive income attributable to:
Parent Company shareholders1)	11	103	421	616	521	382

1. Comparative figures for Quarter 1 - 2 2023 have been restated, refer to Note 11 Restatement of calculation of intra-Group gains.

CONSOLIDATED BALANCE SHEET

SEK M			Note Jun 30, 2024 Jun 30, 20231) Dec 31, 2023
Assets
Intangible assets		7,530	7,602	7,343
Tangible assets	11	1,723	1,802	1,669
Tangible lease assets		1,209	1,141	1,111
Financial assets	7, 11	828	708	763
Participations in associated companies		142	131	139
Inventories	11	1,364	1,510	1,301
Accounts receivables		1,701	1,747	1,632
Current financial receivables	7	22	22	14
Other current receivables		633	648	548
Cash and cash equivalents	7	740	1,068	923
Total assets	11	15,891	16,379	15,444
Shareholders' equity and liabilities
Shareholders' equity	11	7,952	7,721	7,582
Non-current financial liabilities	7	2,114	3,585	2,391
Non-current lease liabilities	7	865	830	796
Provisions for pensions, interest-bearing	7	33	31	31
Other provisions	11	276	265	305
Current financial liabilities	7	2,197	1,686	1,934
Current lease liabilities	7	402	369	365
Accounts payables		630	511	612
Other non-interest-bearing liabilities		1,422	1,382	1,427
Total shareholders' equity and liabilities	11	15,891	16,379	15,444

1. Comparative figures for June 30, 2023 have been restated, refer to Note 11 Restatement of calculation of intra-Group gains.

CHANGES IN SHAREHOLDERS´ EQUITY FOR THE GROUP

SEK M	Share Capital	Reserves	Retained earnings	Total share holders´ equity1)
Opening balance at January 1, 2023 (restated)2)	91	1,372	5,969	7,432
Total comprehensive income for the period	-	-57	438	382
Dividend	-	-	-232	-232
Closing balance at December 31, 2023	91	1,315	6,176	7,582
Opening balance at January 1, 2024	91	1,315	6,176	7,582
Total comprehensive income for the period	-	363	253	616
Dividend	-	-	-245	-245
Closing balance at June 30, 2024	91	1,677	6,184	7,952

1. Fully attributable to Parent Company shareholders.

2. Opening balance 2023 has been recalculated, refer to the 2023 Annual Report.

CONSOLIDATED CASH-FLOW STATEMENT

SEK M	Note	Quarter 2 2024	Quarter 2 20231)	Jan - Jun 2024	Jan - Jun 20231)	Full-year 2023
Operating activities
Operating profit (EBIT)1)	11	229	189	448	390	884
Add-back of amortization, depreciation and write down1)	3, 11	264	261	518	519	1,062
Other non-cash items1)	11	-33	7	-22	-23	-22
Expensed exceptional items2)		3	20	32	37	70
Paid exceptional items		-12	-14	-34	-32	-60
Financial items		-58	-56	-115	-111	-230
Taxes paid		-70	-16	-108	-122	-166
Cash flow before changes to working capital1)	11	323	390	719	657	1,536
Changes in working capital
Inventories1)	11	5	65	-5	71	192
Current receivables		39	96	-52	52	130
Current liabilities		-23	-40	-62	-18	203
Cash flow from operations1)	11	344	512	600	762	2,061
Investing activities Capital contributions to associated companies		-	-	-	-	-24
Acquired financial assets		-	-	-	-10	-10
Net investments1)	11	-112	-136	-254	-317	-604
Cash flow from investing activities1)	11	-112	-136	-254	-327	-637
Financing activities
Raising of loans		8,277	6,777	16,435	11,579	23,730
Repayment of financial liabilities		-8,226	-6,753	-16,546	-11,623	-24,618
Repayment of lease liabilities		-105	-101	-204	-200	-412
Change in pension assets/liabilities		-2	-3	-3	-5	-3
Change in interest-bearing receivables		3	5	3	6	22
Dividend		-245	-232	-245	-232	-232
Realized derivatives attributable to financing activities		14	87	31	138	86
Cash flow from financing activities		-283	-221	-528	-335	-1,427
Cash flow for the period		-52	155	-182	101	-4
Cash and cash equivalents at the beginning of the period		802	902	923	949	949
Translation differences		-10	10	-1	18	-22
Cash and cash equivalents at the end of the period		740	1,068	740	1,068	923

1. Comparative figures for Quarter 1 - 2 2023 have been restated, refer to Note 11 Restatement of calculation of intra-Group gains.

2. Excluding write-down of non-current assets.

1 Accounting policies

The Group´s interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the applicable rules of Swedish Annual Accounts Act. The Parent Company has prepared the interim report in accordance with the Swedish Annual Accounts Act (1995:1554) and the Swedish Financial Reporting Board´s recommendation RFR 2, Accounting for Legal Entities.

The accounting policies applied in the preparation of this interim report apply to all periods and are consistent with the accounting policies presented in the 2023 Annual Report, published on www.arjo.com.

During quarter 4 2023, intra-Group gains in inventories and tangible assets in the rental operations were restated. This restatement took place retrospectively, which means that comparative figures for quarter 1 – 3

2023 in this report have been restated. For further information, refer to Note 11 and 2023 Annual Report.

The totals in the tables and calculations do no always add up due to rounding differences. Each subtotal corresponds with its original source, which can lead to rounding differences in the totals.

New accounting standards

No new or changed accounting standards that came into effect on January 1, 2024 had a material impact on Arjo. None of the IFRS or IFRIC interpretations that have yet to come into legal effect are expected to have any significant impact on Arjo.

2 Segment reporting

SEK M	Quarter 2 2024							Quarter 2 2023
	Global sales	North America	Other	Group functions	Elimi nations	Arjo Group	Global sales	North America	Other	Group functions	Elimi nations	Arjo Group
Product sales	856	626	88	-	-2	1,568	812	628	97	-	-4	1,533
Service incl. spare parts	363	179	6	-	0	548	330	164	6	-	0	499
Rental	431	264	-	-	-	695	415	239	-	-	-	654
Total net sales	1,649	1,070	94	-	-3	2,810	1,557	1,030	103	-	-4	2,686
Operating profit/loss1)	273	242	6	-292	-	229	252	233	4	-300	-	189
Net financial items						-65						-50
Profit after financial items1)						164						139
Taxes1)						-44						-35
Net profit for the period1)						120						104

1. Comparative figures for Quarter 2 2023 have been restated, refer to Note 11 Restatement of calculation of intra-Group gains.

	Jan - Jun 2024							Jan - Jun 2023
SEK M	Global sales	North America	Other	Group functions	Elimi nations	Arjo Group	Global sales	North America	Other	Group functions	Elimi nations	Arjo Group
Product sales	1,626	1,292	190	-	-5	3,104	1,588	1,230	223	-	-9	3,031
Service incl. spare parts	715	350	11	-	0	1,076	651	321	12	-	0	984
Rental	856	533	-	-	-	1,389	820	488	-	-	-	1,308
Total net sales	3,197	2,175	202	-	-5	5,569	3,059	2,039	235	-	-9	5,324
Operating profit/loss1)	515	498	17	-582	-	448	507	434	27	-578	-	390
Net financial items						-109						-100
Profit after financial items1)						339						289
Taxes1)						-88						-72
Net profit for the period1)						251						218

1. Comparative figures for Quarter 1 - 2 2023 have been restated, refer to Note 11 Restatement of calculation of intra-Group gains.

	Full-year 2023
SEK M	Global sales	North America	Other	Group functions	Elimi nations	Arjo Group
Product sales	3,325	2,555	399	-	-15	6,264
Service incl. spare parts	1,361	663	25	-	0	2,048
Rental	1,667	1,001	-	-	-	2,668
Total net sales	6,352	4,219	424	-	-15	10,980
Operating profit/loss	1,143	896	50	-1,206	-	884
Net financial items						-243
Profit after financial items						640
Taxes						-160
Net profit for the period						480

Arjo monitors the operations following the segments Global Sales, North America and Other, which is where Arjo´s Diagnostics operations are recognized. Arjo has significant central Group functions in the areas of Supply Chain (product supply, inventories and distribution), IT, Quality, and Research and Development. Only a certain portion of Supply Chain´s expenses are allocated to each segment. The remainder of the expenses

for Group functions are recognized as Group expenses. The division of segments and the method of measuring the segments´ results is conducted in a similar way in this interim report as the 2023 Annual Report. Assets and liabilities are not divided by segment since no such amounts are regularly reported to the chief operating decision maker.

3 Depreciation/amortization and write-down

SEK M	Quarter 2 2024	Quarter 2 2023	Jan - Jun 2024	Jan - Jun 2023	Full-year 2023
Intangible assets	-61	-73	-121	-141	-287
Of which, attributable to acquisitions	-21	-22	-42	-44	-88
Tangible assets1)	-97	-93	-189	-187	-376
Tangible lease assets	-106	-94	-208	-191	-399
Total1)	-264	-261	-518	-519	-1,062
Of which, write-down	-	0	-	-2	-3

1. Comparative figures for Quarter 1 - 2 2023 have been restated, refer to Note 11 Restatement of calculation of intra-Group gains.

Depreciation/amortization and write-downs by function, SEK M	Quarter 2 2024	Quarter 2 2023	Jan - Jun 2024	Jan - Jun 2023	Full-year 2023
Cost of goods sold1)	-173	-158	-338	-316	-652
Selling expenses	-41	-44	-82	-84	-168
Administrative expenses	-48	-57	-94	-112	-229
Research and development costs	-2	-2	-4	-4	-9
Other operating expenses	-	0	-	0	-1
Exceptional items	-	0	-	-2	-2
Total1)	-264	-261	-518	-519	-1,062
Of which, write-down	-	0	-	-2	-3

1. Comparative figures for Quarter 1 - 2 2023 have been restated, refer to Note 11 Restatement of calculation of intra-Group gains.

4 Capitalized development costs

SEK M	Quarter 2 2024	Quarter 2 2023	Jan - Jun 2024	Jan - Jun 2023	Full-year 2023
Research and development costs, gross	-83	-74	-161	-141	-297
Capitalized development costs	43	35	82	70	148
Research and development costs, net	-40	-38	-79	-71	-149

5 Exceptional items

SEK M	Quarter 2 2024	Quarter 2 2023	Jan - Jun 2024	Jan - Jun 2023	Full-year 2023
Acquisition expenses	0	-1	0	-1	-2
Restructuring costs	-3	-20	-32	-39	-72
Total	-3	-21	-32	-40	-73
Exceptional items by function, SEK M	Quarter 2 2024	Quarter 2 2023	Jan - Jun 2024	Jan - Jun 2023	Full-year 2023
Cost of goods sold	-1	-3	-11	-14	-18
Selling expenses	-4	-10	-9	-16	-44
Administrative expenses	0	-7	-13	-9	-11
Other operating costs	1	-	-1	-	-
Total	-3	-21	-32	-40	-73

The table above presents the function under which the items would have been recognized if they had not been classified as exceptional items.

6 Financial assets and liabilities measured at fair value through profit or loss

SEK M		Jun 30, 2024 Jun 30, 2023 Dec 31, 2023
Other current receivables	43	59	6
Other financial assets	130	130	129
Total assets	174	190	135
Other non-interest-bearing liabilities	6	6	39
Total liabilities	6	6	39

The fair value of derivative instruments is established using valuation techniques, which includes observable market information. All derivatives are classified under level 2 of the fair value hierarchy and the Group has no derivatives that are used for hedging purposes. The Group has holdings in unlisted companies in level 3 of the fair value hierarchy. The carrying amount of the holdings is the same as the fair value.

7 Consolidated interest-bearing net debt

SEK M		Jun 30, 2024 Jun 30, 2023 Dec 31, 2023
Non-current financial liabilities	2,114	3,585	2,391
Non-current lease liabilities	865	830	796
Current financial liabilities	2,197	1,686	1,934
Current lease liabilities	402	369	365
Provisions for pensions	33	31	31
Interest-bearing liabilities	5,611	6,501	5,517
Less financial receivables	-123	-84	-91
Less pension assets	-200	-78	-183
Less cash and cash equivalents	-740	-1,068	-923
Interest-bearing net debt	4,547	5,271	4,320

8 Key figures for the Group

SEK M	Quarter 2 2024	Quarter 2 2023	Jan - Jun 2024	Jan - Jun 2023	Full-year 2023
Sales measures
Net sales	2,810	2,686	5,569	5,324	10,980
Net sales growth, %	4.6	11.7	4.6	11.5	10.0
Organic growth in sales, %	3.7	5.0	4.0	4.6	4.7
Expense measures
Selling expenses as a % of net sales	20.0	20.0	20.1	20.1	19.7
Administrative expenses as a % of net sales	13.6	14.0	13.5	13.5	13.3
Research and development costs gross as a % of net sales	3.0	2.7	2.9	2.7	2.7
Earnings measures
Operating profit (EBIT)1)	229	189	448	390	884
Adjusted operating profit (EBIT)1, 2)	232	210	481	429	957
EBITA1)	290	262	569	531	1,170
Adjusted EBITA1, 2)	293	283	602	570	1,244
EBITDA1)	493	450	966	909	1,946
EBITDA growth, %1)	9.6	13.0	6.3	6.2	15.9
Adjusted EBITDA1, 2)	496	471	999	946	2,017
Earnings per share, SEK1)	0.44	0.38	0.92	0.80	1.76
Margin measures
Gross margin, %1, 2)	43.6	42.7	43.5	42.9	43.1
Operating margin, %1)	8.2	7.1	8.0	7.3	8.0
Adjusted Operating margin, %1, 2)	8.3	7.8	8.6	8.1	8.7
EBITA margin, %1)	10.3	9.8	10.2	10.0	10.7
Adjusted EBITA margin, %1, 2)	10.4	10.5	10.8	10.7	11.3
EBITDA margin, %1)	17.6	16.8	17.4	17.1	17.7
Adjusted EBITDA margin, %1, 2)	17.7	17.5	17.9	17.8	18.4
Cash flow and return measures
Return on shareholders' equity, %1, 3)			6.6	5.5	6.4
Cash Conversion, %1)	69.7	113.8	62.1	83.9	105.9
Operating Capital1)			13,021	12,915	12,500
Return on operating capital, %1, 3)			7.7	6.2	7.7
Capital Structure
Interest-bearing net debt			4,547	5,271	4,320
Interest-coverage ratio, multiple1, 3)			3.8	4.3	3.7
Net debt/equity ratio, multiple1)			0.6	0.7	0.6
Net debt/adjusted EBITA, multiple1, 2, 3)			2.4	2.8	2.3
Equity/asset ratio, %1)			50.0	47.1	49.1
Equity per share, SEK1)			29.2	28.3	27.8
Other
Number of shares			272,369,573	272,369,573	272,369,573
Number of employees, average			6,936	6,783	6,679

1. Comparative figures for June 30, 2023 have been restated, refer to Note 11 Restatement of calculation of intra-Group gains.

2. Before exceptional items. See Alternative performance measures on page 16 and definitions on page 20.

3. Rolling 12 months.

ALTERNATIVE PERFORMANCE MEASURES

Alternative performance measures refer to financial measures used by the company´s management and investors to evaluate the Group´s earnings and financial position, and that cannot be directly read or derived from the financial statements. These financial measures are intended to facilitate analysis of the Group´s performance. The alternative performance measures should not be considered substitutes, but rather a supplement to, the financial statements prepared in

accordance with IFRS. The financial measures recognized in this report may differ from similar measures used by other companies. The alternative performance measures recognized below have not been calculated in accordance with IFRS but have been presented since Arjo believes that they are important in connection with investors´ assessments of the Company and the Company´s share.

Adjusted EBIT/EBITA/EBITDA SEK M	Quarter 2 2024	Quarter 2 2023	Jan - Jun 2024	Jan - Jun 2023	Full-year 2023
Operating profit (EBIT)1)	229	189	448	390	884
Add-back of amortization and write-down of intangible assets	61	73	121	141	287
EBITA1)	290	262	569	531	1,170
Add-back of depreciation and impairment of tangible assets1)	203	188	397	378	775
EBITDA1)	493	450	966	909	1,946
Exceptional items2)	3	21	32	40	73
Add-back of write-down of exceptional items	-	0	-	-2	-2
Adjusted operating profit (EBIT)1)	232	210	481	429	957
Adjusted EBITA1)	293	283	602	570	1,244
Adjusted EBITDA1)	496	471	999	946	2,017

Cash conversion	Quarter 2 2024	Quarter 2 2023	Jan - Jun 2024	Jan - Jun 2023	Full-year 2023
Cash flow from operations, SEK M1)	344	512	600	762	2,061
Operating profit (EBIT), SEK M1)	229	189	448	390	884
Add-back of amortization and write-down of intangible assets and tangible assets, SEK M1)	264	261	518	519	1,062
EBITDA, SEK M1)	493	450	966	909	1,946
Cash conversion, %1)	69.7	113.8	62.1	83.9	105.9

Net debt/equity ratio		Jun 30, 2024 Jun 30, 2023 Dec 31, 2023
Interest-bearing net debt, SEK M	4,547	5,271	4,320
Shareholder´s equity, SEK M1)	7,952	7,721	7,582
Net debt/equity ratio, multiple1)	0.6	0.7	0.6

Calculation of return on operating capital	Jan - Jun 2024	Jan - Jun 2023	Full-year 2023
Total assets opening balance, SEK M1)	16,379	16,282	15,966
Total assets closing balance, SEK M1)	15,891	16,379	15,444
Average total assets, SEK M1)	16,135	16,331	15,705
Average total assets, SEK M1)	16,135	16,331	15,705
Excluding average cash and cash equivalents, SEK M	-904	-1,272	-936
Excluding average and other provisions, SEK M1)	-270	-291	-312
Excluding average other non-interest-bearing liabilities, SEK M	-1,941	-1,854	-1,956
Average operating capital, SEK M1)	13,021	12,915	12,500
Operating profit (EBIT), SEK M1, 3)	942	705	884
Add-back of exceptional items, SEK M3)	66	101	73
EBIT after add-back of exceptional items, SEK M1)	1,008	806	957
Return on operation capital, %1)	7.7	6.2	7.7

1. Comparative figures for Quarter 1 - 2 2023 have been restated, refer to Note 11 Restatement of calculation of intra-Group gains.

2. Refer to Note 5 Exceptional items on page 14.

3. Rolling 12 months.

9 Financial data per quarter

SEK M	Quarter 1 2023	Quarter 2 2023	Quarter 3 2023	Quarter 4 2023	Quarter 1 2024	Quarter 2 2024
Net sales	2,638	2,686	2,777	2,879	2,759	2,810
Cost of goods sold1)	-1,501	-1,540	-1,629	-1,575	-1,560	-1,586
Gross profit1)	1,137	1,146	1,149	1,304	1,199	1,224
Operating expenses	-912	-951	-971	-940	-960	-985
Exceptional items	-19	-21	-9	-25	-29	-3
Other operating income, operating expenses and income from participations in associated companies	-6	15	8	-22	9	-7
Operating profit (EBIT)1)	200	189	177	317	219	229
Net financial items	-50	-50	-68	-74	-44	-65
Profit after financial items	150	139	109	242	175	164
Taxes1)	-37	-35	-28	-61	-44	-44
Net Profit for the period1)	113	104	81	181	132	120
EBIT after recalculation1)	200	189	177	317	219	229
EBIT before recalculation1)	176	186	199	306
Adjusted EBITDA after recalculation1, 2)	475	471	457	614	502	496
Adjusted EBITDA before recalculation1, 2)	474	490	504	630
Adjusted EBITDA margin after recalculation, %1, 2)	18.0	17.5	16.4	21.3	18.2	17.7
Adjusted EBITDA margin before recalculation, %1, 2)	18,0	18,3	18,1	21,9

1. Comparative figures for Quarter 1 - 3 2023 have been restated, refer to Note 11 Restatement of calculation of intra-Group gains.

2. EBITDA before exceptional items. Refer to Note 5 Exceptional items on page 14, Alternative performance measures on page 16 and definitions on page 20.

10 Transactions with related parties

SEK M	Quarter 2 2024	Quarter 2 2023	Jan - Jun 2024	Jan - Jun 2023	Full-year 2023
Sales	8	6	13	15	32
Purchases of goods	-2	-3	-4	-5	-14
Accounts receivable	4	-2	8	2	2
Accounts payable	0	0	1	1	1

Transactions between Arjo and companies in Getinge Group are specified in the table above. In addition to the above, there were no other material transactions with related parties. Arjo uses Getinge as a distributor in certain markets. Business terms and conditions as well as market-regulated pricing apply for delivery of products and services between the Groups.

11 Restatement of calculation of intra-Group gains

During quarter 4 2023, elimination of intra-Group gains in inventories and tangible assets in the rental operations were restated. This restatement took place retrospectively, which means that comparative figures including opening balances for 2022 and quarter 1 - 3 2023 have been

restated, refer to 2023 Annual Report. All affected items that have been restated retrospectively quarter 2 2023 are presented below. For quarter 1 and 3, refer to Note 9 Financial data per quarter.

Jun 30, 2023

		Increase/	after
Balance sheet (excerpt), SEK M	Jun 30, 2023	decrease	restatement
Tangible assets	1,890	-88	1,802
Financial assets1)	650	58	708
Inventories	1,673	-163	1,510
Total assets	16,571	-192	16,379
Shareholders' equity	7,900	-179	7,721
Other provisions1)	277	-13	265
Total Shareholders' equity and liabilities	16,571	-192	16,379
1. The restatement refers to deferred tax.	Quarter 2	Increase/	Quarter 2 2023 after
Income statement (excerpt), SEK M	2023	decrease	restatement
Cost of goods sold1)	-1,544	4	-1,540
Gross profit/loss	1,142	4	1,146
Operating profit (EBIT)	186	4	189
Profit/loss after financial items	135	4	139
Taxes	-34	-1	-35
Net profit for the period	102	3	104
1. Of which depreciation		23
Net profit for the period attributable to:
Parent Company shareholders	102	3	104
Earnings per share, SEK (before and after dilution)	0.37	0.01	0.38

Statement of comprehensive income (excerpt), SEK M	Quarter 2 2023	Increase/ decrease	Quarter 2 2023 after restatement
Net profit for the period	102	3	104
Items that can later be restated in profit
Translation differences	507	-10	497
Other comprehensive income for the period, net after tax	326	-10	317
Total comprehensive income for the period	428	-7	421
Comprehensive income attributable to:
Parent company shareholders	428	-7	421

Cash flow statement (excerpt), SEK M	Quarter 2 2023	Increase/ decrease	Quarter 2 2023 after restatement
Operating profit (EBIT)	186	4	189
Add-back of amortization, depreciation and write-down	284	-23	261
Other non-cash items	5	2	7
Cash flow before changes to working capital	408	-18	390
Inventories	63	2	65
Cash flow from operations	528	-16	512
Net investments	-152	16	-136
Cash flow from investing activities	-152	16	-136
Cash flow for the period	155	-	155

Parent Company financial statements

PARENT COMPANY INCOME STATEMENT

SEK M	Quarter 2 2024	Quarter 2 2023	Jan - Jun 2024	Jan - Jun 2023	Full-year 2023
Administrative expenses	-45	-54	-94	-106	-205
Exceptional items1)	0	-1	0	-1	-5
Other operating income and expenses	0	0	-1	0	120
Operating loss (EBIT)	-45	-55	-95	-107	-91
Income from participations in Group companies	444	11	530	155	449
Net financial items2)	-30	-20	-55	-38	-87
Profit/loss after financial items	369	-63	379	10	271
Taxes	13	16	28	28	6
Net Profit/loss for the period	382	-47	408	38	277

1. Exceptional items refers to acquisition expenses SEK 0 M (-1) of which during the quarter SEK 0 M (-1) and for the full year 2023 acquisition expenses (-1) and restructuring expenses (-4).

2. Net financial items contain interest income, interest expenses, other financial expenses and exchange-rate gains and losses attributable to the translation of financial receivables and liabilities in foreign currencies measured at the closing day rate.

PARENT COMPANY BALANCE SHEET

SEK M		Jun 30, 2024 Jun 30, 2023 Dec 31, 2023
Assets
Intangible assets	325	316	335
Tangible assets	0	1	1
Financial assets	6,077	5,931	5,911
Other current receivables, Group companies	174	88	170
Current receivables	66	17	29
Cash and cash equivalents	0	-	-
Total assets	6,643	6,353	6,446
Shareholders' equity and liabilities
Shareholders' equity	4,136	3,734	3,973
Provisions	4	2	5
Current financial liabilities	2,178	1,591	1,902
Current financial liabilities, Group companies	268	987	484
Other current liabilities, Group companies	12	9	47
Other non-interest-bearing liabilities	44	28	34
Total shareholders' equity and liabilities	6,643	6,353	6,446

At the end of the period, the carrying amount of shares and participations in subsidiaries amounted to SEK 5,940 M (5,807). The change for the year amounts to SEK 133 M and comprise shareholder contribution. The Parent Company´s commercial paper program has a framework amount of SEK 5,000 M (5,000). The total amount issued at the end of the period amounted to SEK 2,202 M (1,604). Intangible assets comprise software.

FINANCIAL TERMS

Q2

Adjusted EBIT/Operating profit

Operating profit with add-back of exceptional items.

Adjusted EBITA EBITA with add-back of exceptional items.

Adjusted EBITA margin

Adjusted EBITA in relation to net sales.

Adjusted EBITDA

EBITDA with add-back of exceptional items.

Adjusted EBITDA margin Adjusted EBITDA in relation to net sales.

Cash conversion

Cash flow from operations in relation to EBITDA.

Earnings per share

Profit for the period attributable to Parent Company shareholders in relation to average number of shares. The following data was used to calculate earnings per share:

Profit for the period attributable to Parent Company shareholders SEK 251 M Number of shares, thousands 272,370 Earnings per share SEK 0.92

EBIT

Operating profit.

EBITA

Operating profit before amortization and write-down of intangible assets.

EBITA margin

EBITA in relation to net sales.

EBITDA

Operating profit before amortization, depreciation and write-down.

EBITDA margin

EBITDA in relation to net sales.

Equity/assets ratio

Shareholders' equity in relation to total assets.

Exceptional items

Total of acquisition and restructuring costs as well as major non-recurring items.

Interest-coverage ratio

Profit after financial items plus interest expenses and add-back of exceptional items in relation to interest expenses. Calculated based on rolling twelvemonth data.

Net debt/adjusted EBITDA, multiple

Average net debt in relation to rolling 12 months' adjusted EBITDA.

Net debt/equity ratio

Interest-bearing net debt in relation to shareholders' equity.

Operating capital

Average total assets less cash and cash equivalents, other provisions, accounts payable and other non-interest-bearing liabilities.

Operating expenses

Selling expenses, administrative expenses and research and development costs.

Operating margin

Operating profit in relation to net sales.

Organic change

A financial change adjusted for currency fluctuations, acquisitions and divestments.

Return on operating capital

Rolling 12 months' operating profit with add-back of exceptional items in relation to operating capital.

Return on shareholders' equity

Rolling 12 months' profit after tax in relation to average shareholders' equity.

MEDICAL AND OTHER TERMS

Compression therapy

Treatment technique which means that one uses outer pressure with a certain frequency and for a certain period of time to treat and prevent venous leg ulcers.

DVT (deep vein thrombosis)

Formation of a blood clot in a deep leg vein.

Edema

Swelling due to accumulation of fluid in tissues.

Ergonomics

A science concerned with designing the job to fit the worker to prevent illness and accidents.

ESG

An abbreviation that stands for environmental, social and governance, which are the non-financial factors in corporate reporting.

EU Medical Device Regulation (MDR)

Regulations created by the EU to ensue better protection for the public health and patient safety by establishing modernized and more robust EU legislation. All medical device manufacturers and distributors must comply with these new regulations.

IPC (intermittent pneumatic compression)

An established method for treating venous leg ulcers, for example. Actively compressing the calf muscles, for example, imitates the pumping mechanism that normally occurs when moving, which increases blood flow to the leg.

Prevention

Preventive activity/treatment.

Pressure injuries

Sores that occur when blood flow to the skin is reduced by external pressure. Most common in patients with reduced mobility.

SEM scanner (sub-epidermal moisture)

A hand-held and wireless device that measures sub-epidermal moisture, which allows early detection of pressure injury risk.

Sequential VTE prevention

A treatment that aims to enhance the circulation of blood in the deep veins of the legs, which helps reduce deep vein thrombosis (blood clot in the deep veins of the legs).

US Food and Drug Administration (FDA)

The US authority responsible for protecting the public health by carrying out regular inspections of, among other things, medical devices.

VTE (venous thromboembolism)

The abbreviation VTE standards for venous thromboembolism – a blood clot in the veins, similar to DVT (above).

TELECONFERENCE

Fund managers, analysts and the media are invited to a teleconference on July 12 at 8:00 a.m. CEST.

A presentation will be held during the telephone conference. Watch the teleconference via the following link: https://ir.financialhearings.com/arjo-q2-report-2024

Participants who wish to ask verbal questions at the teleconference must register using the link below. Once registered, participants will receive a telephone number and ID number to use to log in to the conference. Registration link:

https://conference.financialhearings.com/teleconference/?id=50049841

Alternatively, use the following link to download the presentation: https://www.arjo.com/int/about-us/investors/reports--presentations/2024/

A recording of the teleconference will be available for three years via the following link:

https://ir.financialhearings.com/arjo-q2-report-2024

FINANCIAL INFORMATION

Updated information on, for example, the Arjo share and corporate governance is available on Arjo's website www.arjo.com. The Annual Report, year-end report and interim reports are published in Swedish and English and are available for download at www.arjo.com

The following financial statements will be published in 2024/2025:

October 17, 2024 Interim report Jan–Sep 2024 January 30, 2025 Year-end report 2024 March 2025 2024 Annual Report April 29, 2025 Interim report Jan–Mar 2025 April 29, 2025 2025 Annual General Meeting

At Arjo, we believe that empowering movement within healthcare environments is essential to quality care. Our products and solutions for patient transfers, hygiene, disinfection, diagnostics, treating leg ulcers, prevention of pressure injuries and deep vein thrombosis, and our medical beds are all designed to promote mobility, safety and dignity in all care situations. With over 6,500 people worldwide and 65 years caring for patients and healthcare professionals, we are committed to driving healthier outcomes for people facing mobility challenges.

Arjo AB · Corp. Reg. No. 559092-8064 · Hans Michelsensgatan 10 · SE-211 20 Malmö · Sweden

www.arjo.com

CONTACT

Maria Nilsson

Executive Vice President, Communication & Public Relations Tel: +46 734 244 515 maria.nilsson@arjo.com

Sara Ehinger

VP Investor Relations & Corporate Communications Tel: +46 723 597 794 sara.ehinger@arjo.com

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 July 12, 2024 at 7:00 a.m. CEST.

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