Ambu A/s Class B · OMXCOP:AMBU_B
Ambu A/s Class B — Q2 2019/20 Earnings Presentation
26 slides from Ambu A/s Class B's earnings presentation, May 5, 2020
Slide 1: Investor presentation Q2 2019/20 results
Investor presentation Q2 2019/20 results
Slide 2: Agenda and Disclaimer
Agenda • Business update • Financial results 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 development of
Slide 3: Key messages
Key messages 1 Strong Q2 2019/20 performance with 24% organic revenue growth Positive impact from COVID-19 contributing with 14%-pts organic revenue growth Uptake in endoscope units sold leading to double-digit Visualization growth of 69% Upgrade of full-year 2019/20 guidance to 26-30% (16-22%
Slide 4: Unique market opportunity: $2.5B+ by 2024
Unique market opportunity: $2.5B+ by 2024 One of medtech’s most exciting markets – Ambu is currently the market leader Compelling value proposition: $2.5B+ Infection control single-use market Convenience opportunity by 2024 Economics and workflow efficiency The COVID-19 pandemic further highlights t
Slide 5: The world's most innovative single-use endoscopy player
The world’s most innovative single-use endoscopy player Strategic priorities Scale innovation Focus on highest- and manufacturing potential segments engines and geographies Invest to build Grow sustainably, best-in-class for our people and organization our planet 5
Slide 6: Ambu uniquely positioned to support healthcare systems during COVID-19 pandemics
Ambu uniquely positioned to support healthcare systems during COVID-19 pandemics Our aScope™ 4 Broncho is together with the Ambu® Bag resuscitator used for treating COVID-19 patients Ambu has taken steps such as increasing its manufacturing capacity and air-freight spending to meet the global ma
Slide 7: Strong Q2 with 24% organic revenue growth
1 Strong Q2 with 24% organic revenue growth Significant increase in endoscope units sold Mixed effect for Core in Q2 Endoscope units sold (‘000) +1,000 Organic growth, % PMD (Core) Aneasthesia (Core) Total Core 618 9% 560 364 313 Q2 10% 200 8% Q2 19/20 3% 96 14 40 180 Q1 3% 12/13 13/14 14/15 15/16 1
Slide 8: Continuing strong ENT uptake in US
1 Continuing strong ENT uptake in US As we scale up commercial infrastructure, we see faster customer penetration Unit volume first 12 months, US market Accelerating pace of new US ENT customers aScope™ 4 RhinoLaryngo (ENT) vs. aScope™ 3 aScope 3 (pulmonology) 4x ▪ Continues to see ~4x faster uptake
Slide 9: Unique R&D and manufacturing capabilities
2 Unique R&D and manufacturing capabilities Allowing us to rapidly expand and commercialize our product pipeline Largest single-use R&D organization High scale, low-cost manufacturing +10 years of experience producing +200 internal and +100 external FTEs single-use endoscopes 5 R&D centers and 5 exc
Slide 10: Richest single-use pipeline to capture full market potential
2 Richest single-use pipeline to capture full market potential Product Launch aView™ 2 Advance Commercially available Monitors aBox™ console Q2, 2020/21 Launches in 2019/20 aScope™ 4 aScope BronchoSampler™ VivaSight™ Pulmonary aScope™ 5 HD Q4, 2020/21 All development aView™ 2 Advance 5 million marke
Slide 11: aView 2 Advance. New display technology platform for all endoscopes
2 aView™ 2 Advance. New display technology platform for all endoscopes Pulmonology ENT Urology Excellent image quality State of the art and forward- with full HD resolution thinking technology Enables support of HD scopes Network connectivity and dual view (LAN, WIFI, Bluetooth) Enables Narrow
Slide 12: FDA approval of aScope 4 Cysto marks our entry into Urology
2 FDA approval of aScope™ 4 Cysto marks our entry into Urology aScope™ 4 Cysto Compelling value proposition FDA approval of aScope™ 4 Cysto received Infection control Connects with our new aView™ 2 Advance monitor with superior image quality Convenience Launch of Ureteroscope in 2021/22 will f
Slide 13: aScope Duodeno submitted to FDA and on track to launch early Q4 2019/20
2 aScope™ Duodeno submitted to FDA and on track to launch early Q4 2019/20 Duodenoscopy represents one of the biggest opportunities in the single-use endoscopy market Key global KOLs have 30 US hospitals have been been consulted for the visited and +60 clinicians development of our consulted for fee
Slide 14: Accelerating our investments into GI and Urology
3 Accelerating our investments into GI and Urology GI and Urology commercial infrastructure by end of Q1 2020/21 US Outside US GI Urology GI & Urology ~170 ~35 ~115 People People People Building a dedicated Urology to be commercialized by Building a dedicated GI US GI commercial the Pulmonary/ENT sa
Slide 15: Agenda
Agenda • Business update • Financial results and outlook • Q&A 15
Slide 16: Key financial results in Q2 2019/20
Key financial results in Q2 2019/20 Q2, Full year 2019/20 guidance Organic revenue growth 24% 26-30% Financial EBIT margin 15.2% 12-14% results Before special items Endoscopes sold (‘000 units) 313 + 1,000 Impact from COVID-19 pandemic leading to changed demand patterns and product mix Highlights
Slide 17: EBIT margin guidance for the FY is resumed at 12-14%
EBIT margin guidance for the FY is resumed at 12-14% mainly due to accelerated commercial investments in GI and Urology EBIT margin guidance for the full-year 2019/20 Comments Our EBIT margin is resumed at ~ Incremental net EBIT Commercial 12-14% for the full-year 2019/20 due to higher growth Expe
Slide 18: 14%-pts additional organic growth from COVID-19
14%-pts additional organic growth from COVID-19 Effect from COVID-19 is a one-off and will be excluded from future projections Contribution to Visualization revenue Q2, 2019/20 Endoscope units sold Q2, 2019/20 Units (1,000) ~80k 313k ~20% DKK 486m ~80% ~230k Normal business COVID-19 Q2 Actual Normal
Slide 19: Organic sales growth by geography
Organic sales growth by geography Q2 2019/20 revenue and growth across regions Global North America 49% 23% 69% Visualization 43% Visualization 989m 24% Anaesthesia 449m 17% Anaesthesia organic 3% organic 7% DKK revenue growth DKK revenue growth -6% PMD -17% PMD 28% Europe Rest of world 103% Visuali
Slide 20: Growth and profits
Growth and profits Building commercial scale to handle product launches for the coming quarters Ambu P&L – Q2 2019/20 Q2 Revenue DKK 989m Q2 Q2 Change Change Organic growth of 24% with significant increased DKKm demand for Visualization products 2019/20 2018/19 value % Revenue 989 785 204 26% Produc
Slide 21: Cash flow, assets and debt
Cash flow, assets and debt Negative cash flow as expected due to strategic decisions in Q4 2018/19 Ambu cash flow and balance – H1 2019/20 H1 H1 Change in Free cash flow before acquisitions at DKKm 2019/20 2018/19 value DKK -279m Cash flow and ratios Caused by normalization of working capital follow
Slide 22: 2019/20 Guidance
2019/20 Guidance 26-30% 12-14% + 1,000,000 Organic EBIT Endoscope growth margin units sold 22
Slide 23: Uniquely positioned for value creation
Uniquely positioned for value creation Our competitive advantages Our aspiration Global leader in single-use visualization Broadest and most innovative with 10 years of experience portfolio in single-use visualization Market-leading and highly scalable innovation engine due to modular Industry leadi
Slide 24: Q&A Conference call
Q&A Conference call DK: +45 3544 5577 UK: +44 3333 000 804 PIN code: 64710333# Please limit your questions to only 3 at a time and get back into the queue if you For questions, please press 01 have additional questions 24
Slide 25: Investor contact information
Investor contact information Share Information Financial calendar Ambu A/S is listed on the stock exchange in 2020 Copenhagen under the symbol AMBU B 05 May Q2 2019/20 For further company information, please visit: 26 August Q3 2019/20 www.ambu.com 11 November Q4 2019/20 09 December Annual General M
Slide 26: Ambu – The single-use company
Ambu – The single-use company