Strong Third Quarter Results Demonstrate Continued Progress On Savaria One

Highlights – Q3 2024 compared to Q3 2023

• Revenue was $213.6M, compared to $210.1M in 2023, an increase of 1.7% mainly due to organic growth of 0.2% and a positive foreign exchange impact of 1.7%, partially offset by the divestitures of Van-Action and Freedom Motors.
  • Accessibility organic growth stood at 0.6%, including growth of 8.0% coming from North America, mostly offset by a contraction of 6.6% from Europe.
  • Patient Care organic revenue contracted by 1.1%.
• Gross profit was up $6.6M or 9.0%, representing 37.0% of revenue, an increase of 250 bps compared to 34.5% in Q3 2023.
• Operating income was up $1.4M or 6.9%, representing 10.3% of revenue compared to 9.8% in Q3 2023.
• Adjusted EBITDA* was up $7.3M or 21.0%, or $0.58 per share, up $0.05, when compared to Q3 2023.
• Adjusted EBITDA margin* stood at 19.5%, up 310 bps compared to 16.4% in Q3 2023.
  • Accessibility adjusted EBITDA margin reached 21.3%.
  • Patient Care adjusted EBITDA margin stood at 17.4%.
• Net earnings were or $0.18 per share on a diluted basis, compared to $12.1M or $0.18 per share in Q3 2023.
• The ratio of net debt to adjusted EBITDA* stood at 1.69 in comparison to 2.07 as at December 31, 2023.
• Available funds* of as of September 30, 2024, to support working capital, investments and growth opportunities.

*Non-IFRS measures are described and reconciled in sections 3, 6 and 8 of the MD&A.

Words from the Executive Chairman and from the President & CEO
“Our third quarter continued the trend of the prior quarter with our adjusted EBITDA reaching 19.5%, knocking on the door of our 2025 goal of 20%. Revenue remained stable despite persistent global economic pressures. Over the next year, we will focus on sales growth, including small tuck-in acquisitions that enhance our current organic growth strategies. We remain confident in our future with the aging population tailwinds favoring both of our key business segments of Accessibility and Patient Care,” said Marcel Bourassa, Executive Chairman.

“A key metric of our success in this quarter is that we delivered $41.7M in adjusted EBITDA, up 21% from $34.5M last year. Congratulations to our employees around the world who keep working diligently on numerous Savaria One initiatives that are driving continuous improvement and efficiencies. We have more runway with these projects as we look toward our 2025 goals,” said Sébastien Bourassa, President and Chief Executive Officer.

Third Quarter Results - Q3 2024 compared to Q3 2023

REVENUE

Revenue reached up $3.5M or 1.7%. The increase was mainly due to organic growth of 0.2% and a positive foreign exchange impact of 1.7%, partially offset by the divestitures of Van-Action, and Freedom Motors.

• Accessibility segment (79% of Q3-24 revenue): Revenue was an increase of $3.5M or 2.1%. Organic growth stood at 0.6%.
• Patient Care segment (21% of Q3-24 revenue): Revenue was stable compared to 2023. Organic revenue contracted by 1.1%.

OPERATING INCOME

Operating income was up $1.4M or 6.9%, compared to Q3 2023, representing an operating margin of 10.3% compared to 9.8% in Q3 2023. The increase was mainly attributable to additional revenue contribution and higher gross margins in both segments, while partially offset by increased strategic initiatives expenses.

ADJUSTED EBITDA

Adjusted EBITDA and adjusted EBITDA margin stood at $41.7M and 19.5%, respectively, compared to $34.5M and 16.4% for Q3 2023.

• Accessibility segment: Adjusted EBITDA and adjusted EBITDA margin stood at $36.2M and 21.3%, respectively, compared to $29.9M and 18.0% for Q3 2023.
• Patient Care segment: Adjusted EBITDA and adjusted EBITDA margin stood at $7.6M and 17.4%, respectively, compared to $6.1M and 14.0% for Q3 2023.

Nine-Month Results - YTD 2024 compared to YTD 2023

REVENUE

The Corporation generated revenue of up $24.3M or 3.9%. The increase is mainly due to organic growth of 4.6% and a positive foreign exchange impact of 1.2%. The growth was partially offset by the aforementioned divestitures as well as the divestments of the vehicle operations in Norway last year.

OPERATING INCOME

Operating income was up $10.1M or 19.2%, representing an operating margin of 9.7% compared to 8.4% in 2023.

ADJUSTED EBITDA

Adjusted EBITDA and adjusted EBITDA margin stood at $118.4M and 18.4%, respectively, compared to $95.0M and 15.3% in 2023.

LIQUIDITY AND CAPITAL RESOURCES

Savaria generated $85.9M of cash from operations which were primarily used to invest in capital projects, a business acquisition, repay debt and pay interest and dividends.

As at September 30, 2024, the Corporation had a net debt position of $259.1M and a ratio of net debt to adjusted EBITDA of 1.69 compared to 2.07 as of December 31, 2023.

Outlook

Savaria expects to deliver approximately $1.0 billion in revenue and a 20% adjusted EBITDA margin in 2025. These targets will be achieved through continued strong demand in both the Accessibility and Patient Care segments and the completion of Savaria One, the Corporation's multi-year, company-wide, sales and operations program designed to unlock the full potential of the business.

The expected benefits from Savaria One will be realized through:

• Sales initiatives focused on market share growth and pricing optimization;
• Operational and production improvements to increase capacity and throughput;
• Procurement and supply chain efficiencies and streamlining;
• Investments in research and development to enhance existing products and develop new ones.

In relation to Savaria One, the Corporation plans to record an average of $5.0 million in strategic initiative expenses per quarter through 2024 and at the beginning of 2025, and anticipates increasing financial and operational benefits to be realized on a sequential quarterly basis. Depending on the performance of Savaria One, the Corporation could record an additional $15.0 million in fees in 2025, resulting in total costs for the entire project of $40.0 to $45.0 million, as we continue toward our record revenue and adjusted EBITDA margin targets for 2025.

Savaria will also continue to evaluate potential tuck-in acquisitions to replace some or all of the lost revenue from the divestitures of Van-Action, Freedom Motors and the Norwegian vehicle adaptation business.

The above-mentioned outlook is a“forward-looking statement” within the meaning of the securities laws of Canada and subject to the Corporation's disclosure statement.

Environmental, Social and Governance (“ESG”) Values

As a global leader within the accessibility industry, Savaria is committed to minimizing its environmental footprint and upholding the highest social and governance standards. We believe that promoting environmentally and socially responsible behaviour across our organization is key to achieving sustainable growth and long-term value creation.

By delivering products and solutions that promote accessibility, health, and wellness, improving operational efficiencies and resource usage, and engaging our employees and stakeholders, we'll create a stronger, more resilient business that will continue to be an industry leader while delivering positive social change.

We recognize this work requires long-term vision, planning, and collaboration, yet also must be grounded in clear actions and an ongoing commitment to transparency.

To that end, on April 17, 2024, Savaria published its first ESG report for the fiscal year ended December 31, 2023. Through this report, Savaria discloses its strategy and initiatives on ESG matters that are important to its stakeholders, and where it sees an opportunity to have a positive and meaningful influence.

This inaugural ESG report represents an important milestone for Savaria and provides a baseline for measuring our future performance. The 2023 ESG report can be found under the investor relations section of our website at .

Savaria Corporation ) is a global leader in the accessibility industry. It provides accessibility solutions for the physically challenged to increase their comfort, their mobility and their independence. Its product line is one of the most comprehensive on the market. Savaria designs, manufactures, distributes and installs accessibility equipment, such as stairlifts for straight and curved stairs, vertical and inclined wheelchair lifts and elevators for home and commercial use. In addition, Savaria manufactures and markets a comprehensive selection of pressure management products, medical beds, as well as an extensive line of medical equipment and solutions for the safe movement of patients, such as transfer, lifting and repositioning aids. The Corporation operates a sales network of dealers worldwide and direct sales offices in North America, Europe (UK, Netherlands, Switzerland, Italy, Germany, Poland and Czech Republic), Australia and China. Savaria employs approximately 2,400 people globally and its plants are located across Canada, the United States, Mexico, Europe and China.

Compliance with International Financial Reporting Standards (“IFRS”)

The information appearing in this press release has been prepared in accordance with IFRS. However, Savaria uses EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA per share, adjusted net earnings, adjusted net earnings per share, available funds, net debt and ratio of net debt to adjusted EBITDA for analysis purposes to measure its financial performance. These measures have no standardized definitions in accordance with IFRS and are therefore regarded as non-IFRS measures. These measures may therefore not be comparable to similar measures reported by other companies. Additional details for these non-IFRS measures can be found in sections 3, 6 and 8 of Savaria's MD&A, which is posted on Savaria's website at , and filed with SEDAR+ at . Reconciliation of adjusted net earnings and adjusted EBITDA with net earnings is presented in the section below.

Forward-Looking Statements

This press release includes certain statements that are“forward-looking statements” within the meaning of the securities laws of Canada. Any statement in this press release that is not a statement of historical fact may be deemed to be a forward-looking statement. When used in this press release, the words“believe”,“could”,“should”,“intend”,“expect”,“estimate”,“assume” and other similar expressions are generally intended to identify forward-looking statements. It is important to know that the forward-looking statements in this document describe the Corporation's expectations as at the date hereof, which are not guarantees of future performance of Savaria or its industry, and involve known and unknown risks and uncertainties that may cause Savaria's or the industry's outlook, actual results or performance to be materially different from any future results or performance expressed or implied by such statements. The Corporation's actual results could be materially different from its expectations if known or unknown risks affect its business, or if its estimates or assumptions turn out to be inaccurate.

A change affecting an assumption can also have an impact on other interrelated assumptions, which could increase or diminish the effect of the change. As a result, the Corporation cannot guarantee that any forward-looking statement will materialize and, accordingly, the reader is cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements do not take into account the effect that transactions or special items announced or occurring after the statements are made may have on the Corporation's business. For example, they do not include the effect of sales of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made.

Unless otherwise required by applicable securities laws, Savaria disclaims any intention or obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing risks and uncertainties include the risks set forth under“Risks and Uncertainties” in Savaria's latest Annual MD&A as well as other risks detailed from time to time in reports filed by Savaria with securities regulators in Canada.

Results webcast and conference call on November 7, 2024, at 8:30 a.m. (EST)

Savaria will host a conference call on Thursday, November 7th at 8:30 a.m. Eastern Standard Time with financial analysts to discuss results of the period ended September 30, 2024. Investors and members of the media are invited to participate on a listen-only basis.

Conference call access:
To register:
Webcast (en):

Link to the replay of the webcast will be available on the Corporation's website at .

Reconciliation of adjusted net earnings and adjusted EBITDA with net earnings is provided below. Complete financial statements and the management's report for Q3 2024 will be available shortly on Savaria's website and on SEDAR+ .

Reconciliation of adjusted net earnings and adjusted EBITDA with net earnings

*Non-IFRS measures are described and reconciled in sections 3, 6 and 8 of the MD&A.

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