Slide 1: Q3 interim report 2016/17
Q3 interim report 2016/17 April 1 – June 30 2017 CEO Lars Marcher CFO Michael Højgaard Conference call: August 23 2017
Slide 2: Agenda
Agenda • Q3 highlights • US sales expansion • 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 dev
Slide 3: Q3 highlights
Q3 highlights • 16% organic growth • Videoscope sales up 62% in units • Strong Core business • EBIT margin improved by 3.4%-points • Continued strong cash flow • Full-year outlook adjusted upwards 3
Slide 4: Solid Q3 performance
Solid Q3 performance Organic growth: 16% Revenue: DKK 601m 16% 650 16% 601m 600 14% 12% 550 517m 10% 9% 500 8% 6% 450 Q3 LY Q4 LY Q1 Q2 Q3 Q3 LY Q4 LY Q1 Q2 Q3 Gross margin: 57.1% EBIT margin: 21.6% 25% 58% 57.1% 21.6% 20% 18.2% 56% 54.9% 54% 15% 52% 10% Q3 LY Q4 LY Q1 Q2 Q3 Q3 LY Q4 LY Q1 Q2 Q3 4
Slide 5: Q3 organic growth: Business areas
Q3 – organic growth Business areas Patient Monitoring & Diagnostics Anaesthesia Revenue 212m DKK Revenue 389m DKK 5% growth 23% growth • Core business – with 5% growth in PMD and 9% in Anaesthesia – is on track to reach a full-year growth of 4-5% 5
Slide 6: Q3 organic growth: Markets
Q3 – organic growth Markets North America Europe Rest of World REVENUE 279m DKK REVENUE 244m DKK REVENUE 78m DKK GROWTH 13% GROWTH 13% GROWTH 40% Key drivers Key drivers Key drivers • Strong aScope momentum • Continued strong aScope • Double-digit growth in key sales markets • Solid core growth • St
Slide 7: Expectations for volume growth for the full year about 75%
Expectations for volume growth for the full year about 75% ~350k • Expectations for unit sales in the upper range Videoscope sales in units of previous guidance • Stable ASP as the value offering is significant • No change in 249k competitive landscape 200k • New aScope 96k manufacturing site ready
Slide 8: US sales expansion
US sales expansion – we expand and specialize our US sales force 8
Slide 9: We will expand US sales force by 40% to further accelerate growth
We will expand US sales force by 40% to further accelerate growth • Ensure a clear focus on aScope penetration and on growing the Core business • Will require significant investment (USD ~5m) to take on 36 additional sales reps • Ramp up to begin in September INVEST EXPAND GROW and be effective in H
Slide 10: Specialisation of sales force to drive future revenue split
Specialisation of sales force to drive future revenue split Core Visualisation Low single-digit growth High double-digit growth • Mature product areas High growth market • • Highly GPO contract driven New product categories • • Centralised decision-making in IDN Not contract driven • • Focus on pric
Slide 11: As of next fiscal year Ambu will report on three business areas
As of next fiscal year Ambu will report on three business areas Now From 2017/18 • Anaesthesia • Visualisation • PMD • Anaesthesia (+ Visualisation and Core) • PMD 11
Slide 12: Financial results and outlook
Financial results and outlook 12
Slide 13: Strong earnings development
Strong earnings development DKKm Q3 16/17 Q3 15/16 • High organic growth Revenue 601 517 Gross margin 57.1% 54.9% • Gross margin improves 2.2%-points OPEX -213 -190 due to scale, mix and efficiency Cost percentage 35% 37% • Strong cost control EBIT 130 94 • EBIT margin up 3.4%-points EBIT margin 21.
Slide 14: High cash flow generation
High cash flow generation DKKm Q3 16/17 Q3 15/16 • Working capital reduced to Cash flow: 21% of revenue Operating activities 139 196 • Strong cash flow Investing activities -40 -24 FCF before acquisitions 99 172 • Gearing reduced to 1.5 vs. Balance sheet: 1.9 LY Total assets 2,501 2,248 • Unused cre
Slide 15: Full-year outlook upgraded
Full-year outlook upgraded Local currencies Danish Kroner 23 August 2 May 1 February 8 November 23 August 2 May 1 February 8 November 2017 2017 2017 2016 2017 2017 2017 2016 Organic ~14% 12-14% 9-11% 8-10% - - - - growth EBIT margin* - - - ~19% ~19% ~18% ~18% Free cash DKK DKK 250- ~DKK ~DKK - - - f
Slide 16: In summary
In summary • On track for full-year results • Visualisation performing strong • Core business healthy • Significant investment in sales • Outlook lifted • One quarter left of four-year strategy 16
Slide 17: Q&A
Q&A 17
Slide 18: 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 18