Careium (CARE) ABGSC Investor Days summary

Market trends and demographic shifts

• Europe faces an irreversible demographic shift, with one-third of its population projected to be over 65 by 2060, driving demand for technology-enabled care solutions.

• Rising care costs and changing tax bases are pushing governments and markets to adopt innovative, technology-driven care models.

• Penetration rates for care technology vary widely across Europe, with the UK leading at 15-16% and Germany and France lagging at around 5%.

• The sector is expected to grow at a 7-8% CAGR in the coming years, fueled by digital infrastructure upgrades and aging populations.

• Gradual demographic changes are creating a slow but inevitable inflection point for investment in care technology.

Business model and operations

• Focuses on technology-enabled care for individuals at home, offering hardware, software, and direct services, with a strong emphasis on recurring revenue.

• Currently serves 515,000 people across Europe, with 340,000 receiving direct services.

• Revenue is 70% recurring, mainly from long-term contracts with municipalities, insurance companies, and B2B/B2C channels.

• No immediate plans for broad geographic expansion, except for increased commercial activity in Spain.

• The company was spun out of Doro in 2021 and has stabilized after initial integration and performance challenges.

Strategic priorities and growth plans

• Prioritizing organic growth in large European markets like France, Spain, and Germany, with strong recent performance in these regions.

• Investing in product innovation, such as the i-Care Center alarm platform, tailored for the senior care sector.

• Exploring entry into the assisted living segment and expanding B2C offerings for higher margins.

• Actively seeking acquisition opportunities, focusing on integration and cost synergies, with a cautious but increasingly aggressive approach.

• Spain is a key target market, with a tender-centric approach and expectations for revenue generation in 2025.