Ambu A/s Class B · OMXCOP:AMBU_B
Ambu A/s Class B — Ambu A S Ord — Q2 2022/23 Earnings Presentation
25 slides from Ambu A/s Class B's earnings presentation, May 8, 2023
Slide 1: Q2 2022/23 Results
Q2 2022/23 RESULTS AMBU A/S INVESTOR PRESENTATION
Slide 2: Table of Contents
TABLE OF CONTENTS Investor presentation 1 Q2 2022/23 RESULTS • Business update • Financial update 2 Q&A SESSION Today’s speakers BRITT MEELBY JENSEN THOMAS FREDERIK SCHMIDT CEO CFO 2
Slide 3: Solid Q2 with 4% organic growth and EBIT margin of 3.9%
SOLID Q2 WITH 4% ORGANIC GROWTH AND EBIT MARGIN OF 3.9%, DRIVEN BY DOUBLE-DIGIT GROWTH IN ENDOSCOPY SOLUTIONS REVENUE GROWTH 6% 8% Q2 2022/23 HIGHLIGHTS 4% 4% Reported revenue (DKKm) • Organic growth of 4%, mainly driven 1.122 1.189 2.153 2.321 by Endoscopy Solutions growing Reported growth double-d
Slide 4: Q2 progress on priorities in Zoom-In strategy in line with plans
Q2 PROGRESS ON PRIORITIES IN ZOOM-IN STRATEGY IN LINE WITH PLANS Pulmonology portfolio strengthened: • Cash flow improved with positive cash flow of DKK 21m in Q2, driven • Re-launch of Ambu VivaSight 2 DLT by inventory reduction of DKK 136m • CE mark of smaller sizes of vs. FY 21/22 Ambu’s aScopeTM
Slide 5: Anaesthesia & Patient Monitoring declined 3% organically in Q2
ANAESTHESIA & PATIENT MONITORING DECLINED 3% ORGANICALLY IN Q2 (H1: 1%), DUE TO HIGH 2021/22 COMPARABLES IN ANAESTHESIA REPORTED REVENUE (DKKm) Anaesthesia Patient Monitoring Q2 2022/23 HIGHLIGHTS -11% +8% YoY organic growth • Anaesthesia and Patient Monitoring, combined, 566 showed 3% organic decli
Slide 6: Endoscopy Solutions grew 11% in Q2
ENDOSCOPY SOLUTIONS GREW 11% IN Q2 (H1: +7%), DRIVEN BY UROLOGY AND ENT, OFFSET BY DECLINE IN PULMONOLOGY REPORTED REVENUE (DKKm) Endoscopy Solutions +11% YoY organic growth 663 High growth within urology 609 617 & ENT, where especially the 588 562 US have seen a strong account generation and order
Slide 7: Pulmonology declined by 3% in Q2
PULMONOLOGY DECLINED BY 3% IN Q2 (H1: -10%), DRIVEN BY VIVASIGHT RECALL, BUT OFFSET BY BRONCHOSCOPY BUSINESS RETURNING TO GROWTH REPORTED REVENUE (DKKm) Pulmonology -3% Q2 2022/23 HIGHLIGHTS YoY organic growth • 12% organic growth QoQ, driven by higher 380 378 bronchoscopy revenue positively affecte
Slide 8: Endoscopy Solutions ex. Pulm. had strong growth of 36% in Q2
ENDOSCOPY SOLUTIONS EX. PULM. HAD A STRONG GROWTH OF 36% IN Q2 (H1: +41%) DRIVEN BY UROLOGY AND ENT, WITH GI PROGRESSING AS PLANNED REPORTED REVENUE (DKKm) Endoscopy solutions excluding pulmonology +36% Q2 2022/23 HIGHLIGHTS YoY organic growth 285 • Urology: High double-digit growth, mainly driven 2
Slide 9: Revenue growth captured in single-use endoscopy market worth 15-20bn DKK
REVENUE GROWTH WILL BE CAPTURED IN AN ATTRACTIVE SINGLE-USE ENDOSCOPY MARKET WITH A EXPECTED VALUE OF 15-20BN DKK IN 5 YEARS AMBU TARGET MARKET1 WITH MARKET POTENTIAL AT 100% PENETRATION ASSUMED 5-YEAR NEAR-TERM PIPELINE WITH NEAR-TERM PIPELINE SINGLE-USE m. procedures DKK bn using blended ASPs PENE
Slide 10: Where Ambu has significant competitive advantages needed to win
...WHERE AMBU HAS SIGNIFICANT COMPETITIVE ADVANTAGES NEEDED TO WIN AND DELIVER SUSTAINABLE PROFITABLE GROWTH Scalable business model with strong potential to drive improvements through dedicated transformation program Leading product portfolio with unique innovative solutions across all major endosc
Slide 11: Thomas Frederik Schmidt, CFO
THOMAS FREDERIK SCHMIDT CFO 11
Slide 12: Reported revenue growth of 6%
REPORTED REVENUE GROWTH OF 6%, DRIVEN BY ORGANIC GROWTH OF 4%-PTS AND A POSITIVE CURRENCY EFFECT OF ADDITIONAL 2%-PTS REPORTED GROUP REVENUE (DKKm) +6% 1,189 Reported revenue 17 increased by in Q2 22/23 by DKK 67m, or 6%, compared to Q2 last year 50 Foreign exchange rates 1,122 had a positive impact
Slide 13: Balance sheet strengthened from capital raise in Q2
BALANCE SHEET STRENGTHENED FROM CAPITAL RAISE IN Q2, ENABLING FINANCIAL & OPERATIONAL FLEXIBILITY BY REDUCING LEVERAGE Financial Leverage (NIBD/EBITDA bsi1) 4x 3,9x 3,9x 3,3x 3,5x Enabling financial and 3x operational flexibility Below (2.5x) to capture attractive growth opportunities 2x 1,6x 1x 0x
Slide 14: Q2 growth of 4% driven by North America and Rest of World
Q2 GROWTH OF 4% WAS DRIVEN BY SOLID GROWTH IN NORTH AMERICA AND REST OF WORLD WITHIN ENDOSCOPY SOLUTIONS REVENUE BY GEOGRAPHY Q2 2022/23 reported revenue (DKKm) North America Organic Organic growth of 8%, driven by Endoscopy Solutions growth growing 18% due to record demand for Urology and ENT. Nort
Slide 15: Reported EBIT margin of 3.9% in Q2
REPORTED EBIT MARGIN OF 3.9% IN Q2 IS DRIVEN BY LOWER GROSS MARGIN BUT POSITIVELY OFFSET BY OPEX RATIO IMPROVEMENTS EBIT MARGIN BEFORE SPECIAL ITEMS (%) 4,2% Q2 2022/23 HIGHLIGHTS 3.9% • Gross margin declined by 1.9%-pts to 55.8% versus Q2 LY (57.7%). This was offset by improvements in -1.9% our OPE
Slide 16: Cost reduction program will drive improved opex ratio
THE COST REDUCTION PROGRAM AND INCREASED FOCUS ON COST MANAGEMENT WILL DRIVE IMPROVED OPEX RATIO IN FULL-YEAR 2022/23 OPEX Spend (DKKm & % of revenue) OPEX ratio OPEX spend Maintained OPEX ratio 2.500 2.432 56% from cost reduction 2.163 55% in Q1 22/23 (52%) 2.000 54% 54% 1.500 Cost consciousness 52
Slide 17: Positive cash flow in Q2 driven by reduced net working capital
POSITIVE CASH FLOW IN Q2 MAINLY DRIVEN BY ONGOING EFFORTS TO REDUCE OUR NET WORKING CAPITAL FREE CASH FLOW (DKKm & % of revenue) FCF to Sales Free cash flow before acquisitions Positive free cash flow, 2% -4% totaling DKK 21m in Q2 22/23 -6% versus DKK -174m last quarter -10% -15% 21 Reduction of in
Slide 18: Achieving optimal NWC & inventory performance is a process
ACHIEVING OPTIMAL NWC & INVENTORY PERFORMANCE IS A PROCESS AND WILL TAKE TIME, HOWEVER RESULTS ARE STARTING TO SHOW Continued execution of our plan NWC, % of revenue of 12 months’ revenue to reduce and normalize our inventories, 25% 23% 23% 25% 24% which have started to materialize in Q2 22/23, with
Slide 19: FY 2022/23 financial guidance remains unchanged
FY 2022/23 FINANCIAL GUIDANCE REMAINS UNCHANGED Assumptions 5-8% o Growth within Endoscopy solutions will be driven by continued high double- digit growth in ENT & Cystoscopy and with YoY growth in pulmonology from H2 2022/23 Organic revenue o Anaesthesia & Patient Monitoring is to grow low single d
Slide 20: Thank you for your attention
THANK YOU FOR YOUR ATTENTION 2023 31 AUGUST: Q3 2022/23 EARNINGS 8 NOVEMBER: Q4 AND FY 2022/23 EARNINGS Conferences: 7 JUNE: Handelsbanken Nordic mid-small cap seminar 22 JUNE: J.P. Morgan European Healthcare Conference 6 SEPTEMBER: Goldman Sachs EU Healthcare Conference 14 NOVEMBER: Jefferies Londo
Slide 21: Ambu single-use endoscopy pipeline
AMBU SINGLE-USE ENDOSCOPY PIPELINE Ear, nose and throat (ENT) Ambu® aScopeTM 4 RhinoLaryngo ENT High Resolution Pulmonology Ambu® VivaSightTM 2 Ambu® aScopeTM 4 Broncho Ambu® aScopeTM 5 Broncho HD Ambu® aScopeTM 5 Broncho HD (smaller sizes) Video Laryngoscope 2.0 Gastroenterology (GI) Ambu® aBox 2 &
Slide 22: 5-year financial targets
5-YEAR FINANCIAL TARGETS Aiming for > 10% organic growth and ~20% EBIT margin FY 21/22 5-year actuals target1 Organic revenue Growth 4% > 10% CAGR Endoscopy Solutions 1% 15-20% CAGR Growth will mainly be driven by high growth within Endoscopy Solutions with high expected revenue contribution Anaesth
Slide 23: P&L details
P&L DETAILS DKKm FY 18/19 FY 19/20 FY 20/21 Q1 21/22 Q2 21/22 Q3 21/22 Q4 21/22 FY 21/22 Q1 22/23 Q2 22/23 reported figures Revenue 2,820 3,567 4,013 1,031 1,122 1,128 1,163 4,444 1,132 1,189 Gross profit 1,637 2,212 2,503 634 647 629 644 2,554 662 664 Gross margin 58.0% 62.0% 62.4% 61.5% 57.7% 55.8
Slide 24: Disclaimer
DISCLAIMER • This presentation contains certain forward-looking statements, including but not limited to, the statements and expectations contained in the "Financial Update" section of this presentation. Statements herein, other than statements of historical fact, regarding our future results of ope
Slide 25: Confidential
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