Slide 1: Q2 interim report 2014/15
Q2 interim report 2014/15 January 1 2015 – March 31 2015 CEO Lars Marcher CFO Michael Højgaard
Slide 2: Agenda
Agenda • Q2 Highlights • Status on business • Financials and outlook Disclaimer • Q&A 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 dev
Slide 3: Q2 Highlights
Q2 Highlights Organic growth 9% • Growth of 9% in local currencies and 20% in Danish kroner. All organic Q2 Q4 Q2 13/14 13/14 14/15 • Revenue of 483m DKK • Gross margin of 47.8% (48.1%) – lower due to impact from strong US dollar, product mix and prices Gross margin • EBIT margin at 9.9% (11.7%) – i
Slide 4: Strong growth in North America
Strong growth in North America Q2 organic growth Europe • Growth of 5% 5% • Good momentum across major markets 13% • Strong sales of new and classic Ambu products 6% North America Q2 revenue split • Growth of 13% • Backlog of orders now eliminated • New GPO contracts won in Q2 8% Rest of the world 4
Slide 5: Anaesthesia dominating Q2
Anaesthesia dominating Q2 Q2 organic growth Anaesthesia • Growth of 19% 19% • Above market growth in all product categories -2% • aScope 3 sales up 32% compared to Q1 -8% Patient Monitoring & Diagnostics • Negative growth of 2% Q2 revenue split • Growth affected by periodic variations of contracts 7
Slide 6: Break-down of Anaesthesia growth
Break-down of Anaesthesia growth aScopes: 53% 5 31 Masks: 21% 17 Circuits: 17% King Vision: 5% 53 Pain pumps: 3% 21 Breathing bags and resuscitators: 1% Percentage of growth Q2 6
Slide 7: The aScope case
The aScope case Cost A total of 7 studies has compared costs. 6 of them in favour of aScope Availability aScope now available at 1,500 hospitals worldwide Cross-infection risk Increasing international concern regarding drug-resistant infections 7
Slide 8: aScope trends in direct markets
aScope trends in direct markets USA Europe1 7% 14% of hospitals of hospitals buy aScope buy aScope Australia 67% 78% 26% aScope 3 aScope 3 0 100 rebuy rate2 0 100 rebuy rate2 of hospitals buy aScope 78% aScope 3 0 100 rebuy rate2 1. Direct markets in Europe: Denmark, Sweden, Finland, UK, Germany, Fr
Slide 9: Q2: Highest aScope growth yet
Q2: Highest aScope growth yet • 32% increase in number of aScopes sold compared to Q1 • Year-to-date sales of aScope equals full-year sales last year • Q2 average rebuy rate 75% • More sales reps and focus on training • Increased production capacity in Q1 Q1 Q2 Q3 Q4 Q1 Q2 9 2013/2014 2014/2015
Slide 10: Financial results and outlook
Financial results and outlook
Slide 11: Financial results
Financial results DKKm Q2 14/15 Q2 13/14 • Organic growth of 9% and 20% in DKK Revenue 483 403 • Significant impact from appreciating Gross profit 231 194 Gross Margin (%) 47.8 48.1 USD on top-line while neutral on EBIT Capacity costs -183 -147 • Scale effect on gross margin from Fx EBIT b.s.i. 48 4
Slide 12: Currency impact in H1
Currency impact in H1 Currency impact to growth in DKK • USD is approx. 45% of revenue. In addition comes impact from less significant currencies like GBP • USD/DKK has appreciated approx. 15% versus H1 last year • Leading to a positive total Fx impact of approx. 8% Impact to EBIT and cash flow from
Slide 13: Balance sheet
Balance sheet DKKm Q2 14/15 Q2 13/14 • Additional working capital required Total assets 2,371 1,925 to support growth Equity 978 663 Working capital 556 394 • Increased investments to support R&D and factory in Malaysia Net interest-bearing debt 832 729 • Collections slightly below previous Gearing
Slide 14: Full-year 2014/15 outlook
Full-year 2014/15 outlook Outlook for Local currency Danish kroner 2014/15 6 May, 2015 2 February, 2015 6 May, 2015 2 February, 2015 Revenue 8-8.5% 7-8% ~19% ~16% EBIT-margin 12.5-13% 12.5-13% ~12.0% ~12.5% (fixed rate) (fixed rate) Free cash flows - - DKK 110-120m DKK 130-140m Gearing - - ~2.2 ~2.2
Slide 15: In summary
In summary • Strong growth case maintained • New product introductions generating strong positions • Global position continued to strengthen • US outsourcing and backorder issues resolved • Significant impact from Fx • Strong revenue growth requires higher inventories • Full-year outlook adjusted ac
Slide 16: Ideas that work for
Ideas that work for
Slide 17: Read more at www.ambu.com Contact
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 17