Slide 1: Q3 2022/23 Results
Q3 2022/23 RESULTS AMBU A/S INVESTOR PRESENTATION
Slide 2: Table of Contents
TABLE OF CONTENTS Investor Presentation 1 Q3 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: Key Highlights in Q3 2022/23
KEY HIGHLIGHTS IN Q3 2022/23 Revenue 8% organic growth, driven by 23% growth in Endoscopy Solutions with Pulmonology returning to positive YoY growth EBIT 7.6% EBIT margin before special items – full-year outlook increased to 5-6% (from previously 3-5%) on July 10, 2023 Cash DKK 157m in free cash fl
Slide 4: Q3 2022/23 Revenue Growth of 8% Driven by Endoscopy Solutions
Q3 2022/23 REVENUE GROWTH OF 8% DRIVEN BY ENDOSCOPY SOLUTIONS REVENUE GROWTH 6% 7% 8% 5% Reported revenue (DKKm) 8% 1.128 1.195 3.281 3.516 organic growth in Q3 Reported growth is driven by continued Organic growth good momentum in Endoscopy Solutions Q3 Q3 YTD YTD 21/22 22/23 21/22 22/23 EBIT BEFOR
Slide 5: Progress in Q3 2022/23 on Strategic Priorities in Line with Plan
PROGRESS IN Q3 2022/23 ON STRATEGIC PRIORITIES IN LINE WITH PLAN Pulmonology portfolio strengthened: Excel in execution across the value chain: • European CE mark of Ambu® VivaSight™ • Strong results in Q3 with 23% Endoscopy 2 SLT Solutions growth, and free cash flow of • FDA clearance of two smalle
Slide 6: 23% Growth in Endoscopy Solutions, Urology and ENT Driving
23% GROWTH IN ENDOSCOPY SOLUTIONS, Q3 2022/23 (12% YTD), DRIVEN BY UROLOGY AND ENT – PULMONOLOGY RETURNED TO Y-O-Y GROWTH REPORTED REVENUE (DKKm) Endoscopy Solutions +23% YoY organic growth 684 Urology & ENT maintained 663 high growth across all regions, 609 617 562 driven by an increased penetratio
Slide 7: 33% Growth in Endoscopy Solutions excl. Pulmonology
33% GROWTH IN ENDOSCOPY SOLUTIONS EXCL. PULM., Q3 2022/23 (38% YTD), DRIVEN BY CONTINUED STRONG MOMENTUM WITHIN UROLOGY AND ENT REPORTED REVENUE (DKKm) Endoscopy solutions excluding pulmonology +33% Q3 2022/23 HIGHLIGHTS YoY organic growth • Urology: High growth maintained across all 311 regions, dr
Slide 8: 16% Growth in Pulmonology, Q3 2022/23
16% GROWTH IN PULMONOLOGY, Q3 2022/23 (-3% YTD), DRIVEN BY HIGHER PROCEDURE VOLUME AND STRENGTHENED PULMONOLOGY PORTFOLIO REPORTED REVENUE (DKKm) Pulmonology +16% Q3 2022/23 HIGHLIGHTS YoY organic growth • 16% organic growth YoY, driven by increased 378 373 procedure volumes and the healthcare marke
Slide 9: 7% Decline in Anaesthesia & Patient Monitoring, Q3 2022/23
7% DECLINE IN ANAESTHESIA & PATIENT MONITORING, Q3 2022/23, (-2% YTD), MAINLY RELATED TO LAST YEAR’S HIGH COMPARABLES REPORTED REVENUE LTM (DKKm) Anaesthesia Patient Monitoring +2.3% 5-Year CAGR 5-year organic CAGR - (Organic) 3.1% showing a healthy growth 1.7% 1.097 1.093 within Anaesthesia and 1.0
Slide 10: Continued Strong Momentum on the Transformation Program
CONTINUED STRONG MOMENTUM ON THE TRANSFORMATION PROGRAM DRIVING COST EFFICIENCIES – POTENTIAL SHORT TERM REVENUE IMPACT PHASE 1 PHASE 2 PHASE 3 H1 2023 H2 2023 2024-2026 PROGRAM SCOPING EXECUTE BUILD FOUNDATION + Select priority projects QUICK WINS FOR THE FUTURE Initiatives to improve profitability
Slide 11: Most Advanced Pulmonology Portfolio Strengthened with aScope 5
MOST ADVANCED PULMONOLOGY PORTFOLIO STRENGTHENED WITH GLOBAL COMMERCIALISATION OF ASCOPE 5 AND NEXT GENERATION DISPLAY PLATFORM PULMONOLOGY The most comprehensive and technologically advanced Pulmonology product portfolio and ecosystem in single-use endoscopy build upon ~15 years of innovation exper
Slide 12: Ambu Has Significant Competitive Advantages Needed to Win
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 endoscopy segme
Slide 13: Thomas Frederik Schmidt, CFO
THOMAS FREDERIK SCHMIDT CFO 13
Slide 14: Reported Revenue Growth of 6%, Organic Growth of 8%
REPORTED REVENUE GROWTH OF 6%, DRIVEN BY ORGANIC GROWTH OF 8%-PTS, OFFSET BY CURRENCY EFFECT OF -2%-PTS REPORTED GROUP REVENUE (DKKm) +6% -23 Reported revenue increased 1,195 by DKK 67m in Q3 22/23, or 6%, compared to Q3 last year 90 Foreign exchange rates had 1,128 a negative impact of DKK -23m, or
Slide 15: Q3 Growth Driven by North America and Europe
Q3 GROWTH DRIVEN BY NORTH AMERICA AND EUROPE WITH CONTINUED GOOD MOMENTUM IN ENDOSCOPY SOLUTIONS REVENUE BY GEOGRAPHY Q3 2022/23 reported revenue (DKKm) North America Organic growth of 9%, driven by Endoscopy Solutions growing 30% Organic growth due to strong growth within Pulmonology and continued
Slide 16: Reported EBIT Margin of 7.6% in Q3
REPORTED EBIT MARGIN OF 7.6% IN Q3 DRIVEN BY OPEX IMPROVEMENTS AND INCREASED GROSS MARGIN DUE TO POSITIVE SALES MIX EBIT MARGIN BEFORE SPECIAL ITEMS (%) 7.6% Q3 2022/23 HIGHLIGHTS • Operating profit (EBIT) before special items was 3.5% DKK 91m (DKK 42m) in Q3, with an EBIT margin before special item
Slide 17: Improved OPEX Scale Due to Lower Selling Costs
IMPROVED OPEX SCALE DUE TO LOWER SELLING COSTS, IN ALIGNMENT WITH THE ZOOM IN STRATEGY’S OBJECTIVE OF MORE PROFITABLE GROWTH OPEX (DKKm & % of revenue) OPEX to revenue OPEX 55% 54% OPEX in Q3 totalled DKK 581m, representing a decrease of 1% compared to Q3 last year 52% 52% 2.432 Improved OPEX to Rev
Slide 18: Positive Cash Flow Development Has Accelerated
POSITIVE CASH FLOW DEVELOPMENT HAS ACCELERATED, DUE TO THE SUCCESSFUL IMPLEMENTATION OF FINANCIAL INITIATIVES… FREE CASH FLOW (DKKm & % of revenue) FCF to Sales Free cash flow before acquisitions 16% Free cash flow before acq. totalled DKK 157m in Q3 157 and positive DKK 4m YTD 21 -4% 2% -6% -133 -1
Slide 19: Net Working Capital Lowered to 21% of Revenue
… WITH NET WORKING CAPITAL LOWERED TO 21% OF REVENUE AND INVENTORY LEVEL BELOW DKK 1BN NWC, % of 12 months’ revenue 25% 24% 23% 23% Q3 cash flow before acq. of DKK 157m 21% was driven by lower CAPEX investments, improved EBITDA 996 1.022 1.144 1.108 987 and decreasing NWC to 21% of revenue Q3 21/22
Slide 20: FY 2022/23 Financial Guidance
FY 2022/23 FINANCIAL GUIDANCE: ORGANIC REVENUE GUIDANCE NARROWED TO 6-8% FROM PREVIOUSLY 5-8% Other assumptions Expectations Expectations 10 July 2023 Expectations Previously 31 August 2023 31 August 2023 expectations Anaesthesia & Low single- Patient Monitoring – organic ~ 0% digit growth revenue g
Slide 21: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION 31 AUGUST: Q3 2022/23 Earnings • 6 SEPTEMBER: Goldman Sachs EU Healthcare Conference • 13 SEPTEMBER: Edinburgh Roadshow • 18 SEPTEMBER: J.P. Morgan CEO Call Series • 20 SEPTEMBER: Nordea Healthcare Trip • 27 SEPTEMBER: SEB’s Autumn Seminar • 28 SEPTEMBER: Berenberg Frank
Slide 22: 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 23: 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 24: 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 Q3 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 1,195 Gross profit 1,637 2,212 2,503 634 647 629 644 2,554 662 664 672 Gross margin 58.0% 62.0% 62.
Slide 25: 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 opera
Slide 26: Confidential
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