Arjo not extending distribution agreement for Provizio® SEM scanner - no impact to the Group's 2024 outlook Arjo has decided not to extend the distribution agreement for Bruin Biometrics' Provizio SEM scanner. The reason is that the parties are too far apart in terms of expected commercial development. Arjo's outlook of 3-5% organic net sales growth for 2024 stands firm. The exclusive distribution agreement of 4+2 years was part of a deal that Arjo and Bruin Biometrics (BBI) made in 2020. For some time, the companies have negotiated about the extension of the agreement but since the parties are too far apart in i.e. expectations on commercial development, the decision has been made to cancel the negotiations and to not extend the agreement. The distribution agreement will end no later than December 31, 2024, according to the agreement terms. Arjo has extensive experience within the area of Pressure Injury Prevention and has in recent years seen a growing interest for the Group's pressure injury solutions. However, the pressured situation within healthcare has led to significantly longer lead-times for implementing new methods and procedures than expected. Hence the sales ramp-up of the SEM scanner, which measures sub-epidermal moisture levels, has been slower than projected. The decision does not impact Arjo's outlook of 3-5% organic net sales growth for 2024 and onwards, and Arjo sees continued healthy possibilities to strengthen the Group's profitability long-term. Discussions between Arjo and BBI around how to best terminate the distribution agreement are
currently ongoing, therefore a number of related details are still under negotiation. Arjo will give an update when there is more information to share.