Slide 1: Interim Report Q3 2010/11
INTERIM REPORT Q3 2010/11 BY CEO LARS MARCHER AND CFO ANDERS ARVAI 1
Slide 2: Agenda
AGENDA Developments in Q3 2010/11 Status of GPS Four Outlook 2010/11 2
Slide 3: Highlights Q3 2010/11
HIGHLIGHTS Q3 2010/11 Growth in revenue (in DKK) exceeding market growth – satisfactory growth in revenue in a number of regions in Europe and in the USA and 6% Asia growth in Gross margin up at 55.2% from 54.6% in the 4% operating profit before non-recurring same period last year growth in expe
Slide 4: Highlights Q1-Q3 2010/11
HIGHLIGHTS Q1-Q3 2010/11 Gross margin up at 55.4% from 54.1% in the same period last year Markedly improved earnings 17% Continued strong growth in revenue, including significant growth in the USA 6% growth in operating profit growth in Improved free cash flow revenue in local before special
Slide 5: Satisfactory Growth in Revenue
SATISFACTORY GROWTH IN REVENUE Development in revenue, DKKm Revenue in Q3 of DKK 241m – unchanged when measured in DKK and up 4% when measured in local currencies. Revenue YTD of DKK 729m – up 6% Growth higher than estimated market growth – Ambu wins market share Impact of changes in foreign e
Slide 6: Developments within Business Areas
DEVELOPMENTS WITHIN BUSINESS AREAS Airway Management, DKKm Growth in revenue in Q3 of 1%, and 6% when measured in local currencies Growth in revenue YTD of 6% when measured in DKK and local currencies General market growth of 0-3% Generally sound growth within laryngeal masks and aScope Pati
Slide 7: Market Situation Europe
MARKET SITUATION EUROPE The debt crisis in Greece has had a limited negative impact Budget cuts in the UK health sector have halted the growth in revenue, as customers have reduced inventories Ambu is closely monitoring events for signs of further problems in southern Europe and in other Europ
Slide 8: Market Situation USA
MARKET SITUATION USA YTD Ambu has not been materially affected by the US debt crisis Ambu is monitoring market developments closely and believes that the US health market will be negatively affected by any failure to resolve the US budgetary challenges Ambu sees the new US healthcare reform as
Slide 9: Operating Profit
OPERATING PROFIT EBIT before special items, DKKm EBIT before special items amounted to DKK 35m in Q3 against DKK 33m in Q3 2009/10, up 6% EBIT before special items amounted to DKK 101m YTD against DKK 86m last year, up 17% Special expenses: DKK 32m (patent cases) No significant impact from e
Slide 10: Cash Flow
CASH FLOW DKKm Q1-Q3 2009/10 Q1-Q3 2010/11 Cash flow from operating activities 42.5 54.3 Cash flow from investing activities (53.3) (22.0) Free cash flow (10.8) 32.3 Cash flow from financing activities 20.2 (26.4) Cash flow from operating activities improved due to less funds tied up in working ca
Slide 11: GPS Four: Status of Ambu's Business Strategy
GPS FOUR STATUS OF AMBU’S BUSINESS STRATEGY 11
Slide 12: Heading for a Stronger Ambu: Four GPS Coordinates
HEADING FOR A STRONGER AMBU FOUR GPS COORDINATES Targets 2013 GPS1 INNOVATION Global market-leader within innovative single-use products for hospitals and rescue services GPS2 MARKETS AND SALES Significantly higher revenue GPS3 EFFICIENCY Increasing EBIT margin of up to 15% Efficient operations and
Slide 13: GPS1 Innovation
GPS1 INNOVATION Global innovation organisation is in place – the effect of which will be reflected by a higher rate of development in the coming year Following the establishment of a New products: Updated version of aScope global innovation organisation, we launched in April together with new ne
Slide 14: GPS2 Markets and Sales
GPS2 MARKETS AND SALES Continued positive effect of the expansion of the sales force in the USA – improvement of direct Ambu has intensified its activities sales within a number of areas to ensure Renewal of agreement with one of the largest US continuous sales momentum. The GPOs USA and Asia ar
Slide 15: GPS3 Efficiency
GPS3 EFFICIENCY Gathering of all Danish activities in one location – in Ballerup The transfer of production will be The last phase of the transfer of production will be completed in Q4 2010/11, whereby completed in Q4 2010/11 all Ambu’s production takes place Improved management tools are impr
Slide 16: GPS4 Acquisitions
GPS4 ACQUISITIONS Primary focus on acquisitions which can strengthen the company’s position within the Growth via acquisitions is high on hospital sector Ambu’s agenda, and Ambu sees Several acquisition opportunities identified – attractive potential for acquisition both as regards product areas
Slide 17: Updated Outlook for 2010/11
UPDATED OUTLOOK FOR 2010/11 2010/11 Comments Revenue Approx. DKK 980m Elaboration of in the region of DKK 1,000m. Based on an average USD rate of 520 the remaining part of 2010/11, previously based on an average rate of 540 for FY 2010/11 EBIT margin before special items, Minimum 14% Adjusted upward
Slide 18: Questions
QUESTIONS 18
Slide 19: Read more at www.ambu.com
READ MORE AT WWW.AMBU.COM For further information, please contact: Lars Marcher, CEO, lm@ambu.com or +45 5136 2490 Anders Arvai, CFO, aa@ambu.com or +45 7225 2000 19