Slide 1: Q2 interim report 2017/18
Q2 interim report 2017/18 January 1 – March 31, 2018 CEO Lars Marcher CFO Michael Højgaard Conference call: May 7 2018
Slide 2: Agenda
Agenda • Q2 highlights • Visualisation by 2020 • Financials and outlook • Q&A Disclaimer Forward-looking statements, especially such relating to future sales and operating profit, are subject to risks and uncertainties. Various factors, many of which are outside Ambu’s control, may cause the actual
Slide 3: Q2 highlights
Q2 highlights • 15% organic growth • Endoscope unit sales up 53% • EBIT margin improved by 4.3%-points • GI projects on schedule • Full-year outlook adjusted upwards 3
Slide 4: Q2 shows scale in business
Q2 shows scale in business Organic growth: 15% Revenue: DKK 651m 700 15% 651m 16% 14% 650 613m 14% 600 12% 10% 550 8% 500 Q2 LY Q3 LY Q4 LY Q1 Q2 Q2 LY Q3 LY Q4 LY Q1 Q2 Gross margin: 60.5% EBIT margin: 24.0% 25% 24.0% 62% 60.5% 23% 60% 19.7% 21% 58% 19% 55.6% 56% 17% 54% 15% Q2 LY Q3 LY Q4 LY Q1 Q2
Slide 5: Business areas
Q2 – organic growth Business areas Visualisation Patient Monitoring & Revenue 211m DKK Diagnostics 43% growth Revenue 212m DKK 3% growth Anaesthesia Revenue 228m DKK 8% growth 5
Slide 6: Markets
Q2 – organic growth Markets North America Europe Rest of World REVENUE 291m DKK REVENUE 290m DKK REVENUE 70m DKK GROWTH 16% GROWTH 14% GROWTH 16% Business growth Business growth Business growth • Visualisation 42% • Visualisation 47% • Visualisation 31% • Anaesthesia 6% • Anaesthesia 8% • Anaesthesi
Slide 7: 53% volume growth in Q2
Q2 – endoscope volume sales 53% volume growth in Q2 +500k • 145,000 endoscope Endoscope sales in units units sold in Q2 • Full-year sales expected to surpass 500,000 units • No change in competitive landscape 364k • Market clearances as 249k expected during Q2: 200k • Colonoscope (US & EU) 96k 40k •
Slide 8: Visualisation by 2020
Visualisation by 2020 Single-use expansion 8 8
Slide 9: The endoscopy market is changing rapidly – and several parameters are in favor of single-use
The endoscopy market is changing rapidly – and several parameters are in favor of single-use 9
Slide 10: Increase in medical device reports of contaminated scopes
Increase in medical device reports of contaminated scopes Bacterial contamination of device Bacterial contamination of device (bronchoscope) (duodenoscope) 250 250 200 200 Number of reports Number of reports 150 150 100 100 50 50 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2
Slide 11: The benefits of going single-use on endoscopy are significant
The benefits of going single-use on endoscopy are significant – and the experts within the field are on board “I believe disposable endoscopy will play a very important role in gastro-enterology. Patients are understandably concerned about recent reports of infection transmission. We need to explore
Slide 12: Three growth drivers will boost our Visualisation business
Three growth drivers will boost our Visualisation business this fiscal year and towards 2020 1 2 3 aScope BAL will fuel penetration of Product offering will cover Ambu sales coverage ICU and Bronch Suite all flexible endoscopy areas Full market potential ~5m procedures Offering a new way for hospita
Slide 13: By 2020, our ambition is to offer a full range of single-use endoscopes
By 2020, it is our ambition to be the first to offer a full range of single-use endoscopes Our visualisation offering will address all major flexible endoscopy procedures Pulmonary Endoscopy ENT Endoscopy aScope VivaSight aScope aScope aScope Broncho DL & SL BAL RL Slim RL Intervention Urological En
Slide 14: The Big Five endoscopy projects on track
The Big Five endoscopy projects on track Big Five 2020 endoscopy projects Pre-launch January 2018 activities FDA clearance on colonoscope Scalable production Scalable production setup in Malaysia Development activities Launch Colonoscope Launch BAL scope Launch ENT scopes Launch Duodenoscope Launch
Slide 15: Financial results and outlook
Financial results and outlook 15
Slide 16: Growth and profits
Growth and profits – Expansion of EBIT and gross margins continues DKKm Q2 17/18 Q2 16/17 • 15% organic growth and 6% in DKK Revenue 651 613 from depreciating USD/DKK Gross margin 60.5% 55.6% OPEX -238 -220 • Gross margin up 4.9%-points due to Cost percentage 37% 36% scale, mix and efficiency EBIT 1
Slide 17: Cash flow and debt
Cash flow and debt – Net working capital at 22% DKKm Q2 17/18 Q2 16/17 • Operating cash flow at 11% Cash flow and ratios: • Investments of 8% (6%) Operating activities 70 11% 90 14% including buildings by 2% (1%) Investing activities -48 -8% -39 -6% FCF before acquisitions 22 3% 51 8% • Working capi
Slide 18: Purchase Price Allocation of Invendo
Purchase Price Allocation of Invendo - Minor changes since Q1 and expected to be final by end of Q4 • The fair value is measured at DKK 1,415m (EUR 190m) • Over the coming 4-5 years, we expect to pay out all contingent payments and expense EUR 35m through financial items • Technologies are valued at
Slide 19: Full-year outlook raised
Full-year outlook raised Local currencies Danish Kroner 7 May 31 January 9 November 7 May 31 January 9 November 2018 2018 2017 2018 2018 2017 Organic growth 14-15% ~13% ~13% - - - EBIT margin - - - 20-21% 20-21% ~20% Free cash ~DKK ~DKK ~DKK - - - flows* 300m 300m 275m * Before acquisitions 19
Slide 20: In summary
In summary • Big Five 2020 strategy on plan • Core business on track for FY 4-5% growth • Visualisation continues high growth • Strong profitable growth • Ambu on path to full range in single-use endoscopy before 2020 • Outlook on organic growth lifted 20
Slide 21: Ambu – Ideas that work for life
~ Ambu* Ideas that work for life
Slide 22: Read more at www.ambu.com
Read more at www.ambu.com Contact CEO Lars Marcher, lm@ambu.com or +45 5136 2490 CFO Michael Højgaard, miho@ambu.com or +45 4030 4349 22