Slide 1: Q1 interim report 2015/16
Q1 interim report 2015/16 October 1 – December 31 CEO Lars Marcher CFO Michael Højgaard Webcast: January 29 2016 1
Slide 2: Agenda
Agenda • Q1 Highlights • Status on market for single-use scopes • 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
Slide 3: Q1 highlights
Q1 highlights • Double-digit growth • Renewal of 3-year single-source contract with US GPO HealthTrust. Value approx. DKK 400m • Ambu aScope 3 approved for sale in China • Direct sales expanded to Japan and Norway • Partnership with Coloplast in urology 3
Slide 4: Strong Q1 performance
Strong Q1 performance Organic growth: 11% Revenue: DKK 462m 550 11% 462m 11% 500 9% 450 388m 9% 400 7% 350 5% 300 Q1 LY Q2 LY Q3 LY Q4 LY Q1 Q1 LY Q2 LY Q3 LY Q4 LY Q1 Gross margin: 50.6% EBIT margin: 10% 25% 51% 50.6% 50% 20% 49% 15% 10.0% 48% 46.9% 10% 47% 3.9% 5% 46% 45% 0% Q1 LY Q2 LY Q3 LY Q4 L
Slide 5: Strong global performance
Strong global performance Q1 organic growth North America • Growth of 8% 8% • Growth comes from both aScope and core business 16% • Continued improvement of market position -1% Europe Q1 revenue split • Growth of 16% • Good momentum across markets • Strong performance in both Anaesthesia and PMD 9%
Slide 6: Anaesthesia and PMD in growth
Anaesthesia and PMD in growth Anaesthesia Q1 organic growth • Growth of 13% • aScope 3 sales doubled compared to Q1 LY 13% • Core anaesthesia grows above market 8% Patient Monitoring & Diagnostics • Growth of 8% • High growth from neurophysiology products • High volume from cardiology products Growt
Slide 7: Status on market for single-use scopes
Status on market for single-use scopes 7
Slide 8: The global endoscopy market
The global endoscopy market - Single-use is expanding • Boston Scientific and Coloplast enter market for single-use urology • Good news for Ambu visualisation strategy Market sizes are for current reusable market 8 Source: Endoscopy Global Market 2014, IQ4I Research
Slide 9: Selling deep
10% of aScope accounts fully converted to single-use scopes in pulmonary endoscopy Tier A Hospitals 10 % > 85% of hospital procedures Selling deep done with aScope 3 Tier B Hospitals 10% 60 % > 20% of hospital procedures done with aScope 3 Hospitals buying aScope 3: 2,000 Tier C Hospitals 30 % < 20%
Slide 10: Continuous, strong aScope growth
Continuous, strong aScope growth aScope 3 customer base aScope 3 Tier A customers increased >25% increased >300% Monthly rebuy rate Significant revenue from continues to increase Top 50 aScope 3 customers 10
Slide 11: Faster conversion from reusable to single-use scopes
Faster conversion from reusable to single-use scopes aScope launch situation Reduction of conversion time Situation going forward Barriers to convert Hospital purchasing Reusable scopes end of life require new process investment - aScope opportunity Investment cycle Barriers to convert Time to conve
Slide 12: Financial results and outlook
Financial results and outlook 12
Slide 13: Financial results
Financial results DKKm Q1 15/16 Q1 14/15 • Strong revenue growth yields scale Revenue 462 388 • Gross Margin improved by product mix Gross profit 234 182 and more efficient manufacturing Gross Margin (%) 50.6 46.9 • Increase in capacity costs of some 7% Capacity costs -188 -167 plus 6% impact from F
Slide 14: Balance sheet
Balance sheet DKKm Q1 15/16 Q1 14/15 • Improved working capital now at Total assets 2,271 2,107 28% of revenue vs. 30% LY Equity 940 826 Working capital 550 482 • Overall collection days on Accounts Receivables improved Net interest-bearing debt 883 843 from 83 to 74 days Gearing (NIBD/EBITDA) 2.4 2
Slide 15: Outlook maintained
Outlook maintained Continued growth and increased profitability Expected 2015/16 Expected 2015/16 Targets 2016/17 in local currencies in DKK in DKK Revenue 7-9% 9-11% DKK ~2bn EBIT margin 13-14% 14-15% 17-18% Cash flows - DKK 150-175m - Gearing - ~2.0 - 15
Slide 16: In summary
In summary • Solid start to 2015/16 • Strong growth continues • Significant growth in aScope • Benefits from scale and cost-efficiency • Full-year outlook maintained 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