Ambu A/s Class B · OMXCOP:AMBU_B
Ambu A/s Class B — Ambu A S Ord — FY 2021/22 Earnings Presentation
42 slides from Ambu A/s Class B's earnings presentation, Nov 15, 2022
Slide 1: FY 2021/22 Results
FY 2021/22 RESULTS Ambu A/S INVESTOR PRESENTATION
Slide 2: Today's Speakers
TODAY’S SPEAKERS BRITT MEELBY JENSEN THOMAS FREDERIK SCHMIDT BASSEL RIFAI CEO CFO CMO
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS FY 2021/22 Investor Presentation TABLE OF CONTENTS DISCLAIMER FY 2021/22 RESULTS This presentation contains forward-looking statements, which include estimates of financial performance and targets. • Business update • Financial update and These statements are not guarantee
Slide 4: Key Events in 2021/22
KEY EVENTS IN 2021/22 HIGHLIGHTS FOR THE YEAR PERFORMANCE IMPROVEMENT Reaching 719,000 units for aScope™ 4 Management change in Q3, with new CEO and CFO Rhinolaryngo and aScope™ 4 Cysto appointed Expanding single-use portfolio launching Cost reduction program launched in Q4 to strengthen aScope™ Gas
Slide 5: Steady Organic Revenue Growth of 4% in 2021/22
STEADY ORGANIC REVENUE GROWTH OF 4% IN 2021/22 REVENUE GROWTH FY 2021/22 HIGHLIGHTS Reported revenue (DKKm) Organic growth Reported growth • FY organic revenue growth of 4% 13% 11% and reported growth of 11%, while Q4 4% 4% posts 4% organic and 13% reported , 1.026 , 1.163 , 4.013 , 4.444 • Full yea
Slide 6: Pulmonology Business Starting to Normalize
THE PULMONOLOGY BUSINESS IS STARTING TO NORMALIZE FOLLOWING MULTIPLE COVID WAVES WITH 6% ORGANIC GROWTH OVER LAST QUARTER PULMONOLOGY BUSINESS (REVENUE) 3y CAGR FY 2021/22 HIGHLIGHTS 16% • Pulmonology sales have grown Delta by 58% organically vs. pre-Covid-19 (FY 18/19), corresponding to a CAGR Omic
Slide 7: aScope 4 Rhinolaryngo and Cysto Grew Revenues +100%
aSCOPE™ 4 RHINOLARYNGO AND aSCOPE™ 4 CYSTO GREW REVENUES BY +100% COMBINED IN 2021/22 aSCOPE™ 4 CYSTO (REVENUE) FY 2021/22 HIGHLIGHTS • aScope™ 4 Rhinolaryngo sold 310,000 and aScope™ 4 Cysto Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 409,000 units, continuing their rapid 2019/20 2020/21 2021/22 adoptions since
Slide 8: aScope 5 Broncho Launch Advances Pulmonology Portfolio
aSCOPE™ 5 BRONCHO LAUNCH ADVANCES OUR PULMONOLOGY PORTFOLIO AND EXPANDS OUR MARKET BY 2M PROCEDURES Creating the single-use bronchoscopy suite market • aScope™ 5 Broncho expands our market by 2 million procedures with a price premium of 30-50% compared to aScope™ 4 Broncho • Commercial launch in Q4
Slide 9: Progress Building GI Single-Use Endoscopy Market
WE CONTINUE TO PROGRESS BUILDING THE GI SINGLE-USE ENDOSCOPY MARKET aScope™ Duodeno platform aScope™ Gastro is in commercial launch phase across key markets • Market-need remains high, Niche high-need segments identified as initial driven by workflow improvements target, based on workflow benefits a
Slide 10: Thomas Frederik Schmidt, CFO
THOMAS FREDERIK SCHMIDT CFO
Slide 11: Reported FY Growth of 11% Positively Impacted by Currency
REPORTED FY GROWTH OF 11% POSITIVELY IMPACTED BY CURRENCY REPORTED REVENUE DEVELOPMENT (DKKm) 4,444 FY 2021/22 HIGHLIGHTS 255 • Reported revenue increased by DKK 176 431 million, or 11% compared to FY 4,013 2020/21, while FY organic growth was 4%, corresponding to DKK 176m • Foreign exchange rates h
Slide 12: North America Growth of 11% Main Contributor
NORTH AMERICA GROWTH OF 11% IS THE MAIN CONTRIBUTOR TO THE FULL-YEAR 2021/22 GROWTH REVENUE BY BUSINESS AREA REVENUE BY GEOGRAPHY FY 2021/22 HIGHLIGHTS FY 2021/22 reported revenue and organic growth (DKKm) FY 2021/22 reported revenue and organic growth (DKKm) • ENT and cystoscopy grew +100% Organic
Slide 13: Decrease in EBIT Margin Driven by Inflation, Mexico Ramp-Up
DECREASE IN EBIT MARGIN DRIVEN BY INFLATIONARY EFFECTS, MEXICO RAMP-UP AND INVENTORY WRITE-DOWN EBIT MARGIN BEFORE SPECIAL ITEMS DEVELOPMENT (%) FY 2021/22 HIGHLIGHTS 8.5% • Gross margin for FY 2021/22 was 57.5% compared to 62.4% last year, corresponding to a decline of 4.9%-points -4.9 • Sales mix
Slide 14: Initiatives to Improve Cash Flow Start to Materialise
IMPACT FROM INITIATIVES TO IMPROVE CASH FLOW WILL START TO MATERIALISE DURING 2022/23 FY 2021/22 HIGHLIGHTS 14.6% EBIT margin before special items • Free cash flow totalled DKK -167m Free cash flow before acquisitions 10.0% 9.0% for Q4 2021/22. Year to date, the 3.9% 4.2% 3.7% free cash flow was DKK
Slide 15: 2022/23 Financial Guidance
2022/23 FINANCIAL GUIDANCE ASSOCIATED WITH UNCERTAINTY – A TRANSITION YEAR FOR AMBU AND HIGH EXTERNAL VOLATILITY FY 2022/23 financial guidance 5-8% 3-5% Organic revenue growth EBIT margin before special items o Growth within Endoscopy solutions will be driven by continued o Gross margin to decline ~
Slide 16: Strategy Update
STRATEGY UPDATE
Slide 17: Ambu Builds on 85 Years of Strong Heritage
AMBU BUILDS ON 85 YEARS OF STRONG HERITAGE OUR PURPOSE TOGETHER, WE RETHINK SOLUTIONS TO SAVE LIVES AND IMPROVE PATIENT CARE Holger Hesse, founder of Ambu 17 Confidential
Slide 18: Strong Progress, 85% Revenue Growth Over Past 5 Years
AMBU HAS MADE STRONG PROGRESS, DELIVERING 85% REVENUE GROWTH OVER THE PAST 5 YEARS Created mass-adoption of single-use in Bronchoscopy with aScope 4; Expanded addressable market to include the Bronchoscopy Suite with aScope 5 Expanded aScope 4 platform into Cystoscopy and Ear-Nose-Throat (ENT) with
Slide 19: Important Learnings Into the Future
DESPITE SIGNIFICANT PROGRESS IN RECENT YEARS, WE TAKE IMPORTANT LEARNINGS INTO THE FUTURE • We still expect the endoscopy market to convert towards single-use, but not as fast as previously assumed – especially in gastrointestinal • In anticipation of fast market conversion, we initiated many projec
Slide 20: The 100M Procedure Market Will Open Up for Single-Use
THE 100M PROCEDURE MARKET WILL GRADUALLY OPEN UP FOR SINGLE-USE – IMPROVED ENDOSCOPY SOLUTIONS WILL EXPAND THE ADDRESSABLE MARKET ~100 MIO ENDOSCOPY PROCEDURES IN AMBU PRIORITY MARKETS1 Illustrative Total endoscopy market (~100m1) Addressable with current portfolio and active pipeline Current single
Slide 21: Strategy Developed for High Volatility Environment
THIS STRATEGY IS DEVELOPED TO BE SUCCESSFUL IN AN ENVIRONMENT OF HIGH VOLATILITY HIGH EXTERNAL VOLATILITY MITIGATIONS INTEGRATED IN NEW STRATEGY Health systems increasingly under Be part of the solution with our flexible, economic pressure from budget constraints and staff and workflow-friendly offe
Slide 22: Launching a New Customer-Centric Transformation Strategy
LAUNCHING A NEW CUSTOMER-CENTRIC TRANSFORMATION STRATEGY STRATEGY HIGHLIGHTS CLEAR STRATEGIC ASPIRATION • Ambu confirms the path to expand our world leading position in single-use endoscopy solutions • The new strategy ratifies our presence in the four major endoscopy segments, with a more focused a
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Slide 24: Zoom In: The Most Customer-Centric in Our Field
ZOOM IN | THE MOST CUSTOMER-CENTRIC IN OUR FIELD Provide innovative solutions Excel in execution across the value chain for true customer needs • Focus our commercial organisation on highest- • Launch market-leading solutions across value customer segments and geographies Pulmonology, ENT, Urology a
Slide 25: Focused Portfolio Strategy Across Endoscopy, Anaesthesia, Monitoring
A FOCUSED PORTFOLIO STRATEGY ENABLING SUCCESSFUL RESULTS ACROSS ENDOSCOPY, ANAESTHESIA AND PATIENT MONITORING ENDOSCOPY SOLUTIONS (Previously Visualization) PULMONOLOGY ENT UROLOGY GI Drive strong growth and long-term profitability in Endoscopy Solutions through continued innovation across all four
Slide 26: Pulmonology Has Highest Single-Use Adoption
WE HAVE SUCCESSFULLY PENETRATED PULMONOLOGY TO HAVE THE HIGHEST SINGLE USE ADOPTION; ENT AND UROLOGY ARE CATCHING UP IMPORTANCE OF DRIVERS VARIES ACROSS ENDOSCOPY SEGMENTS AT VARYING ADOPTION LEVELS SEGMENTS Single-use penetration Illustrative WORKFLOW AND AVALABILITY HEALTH ECONOMIC BENEFITS PATIEN
Slide 27: Pulmonology Case Example
WE HAVE A PROVEN ABILITY TO CREATE AND EXPAND A MARKET SEGMENT THROUGH A FOCUSED APPROACH – PULMONOLOGY CASE EXAMPLE 2009 2011 2013 2017 Pioneering single- 2nd generation, Expansion into the Mass-adoption of single- use bronchoscopy aScope 2, intensive care unit use with aScope 4, with aScope in bas
Slide 28: Pulmonology: Expand Market and Extend Leadership
PULMONOLOGY: CONTINUE TO EXPAND THE MARKET AND EXTEND OUR LEADERSHIP POSITION THROUGH HIGH-PERFORMANCE SOLUTIONS PULMONOLOGY RECENT STUDY: Best-in-class performance Olympus aScope 5 - Grow and defend our position in the OR/ICU with a 190 Broncho market-leading future portfolio: aScope Broncho, VivaS
Slide 29: Urology and ENT: Highly Attractive Segments
UROLOGY AND EAR-NOSE-THROAT: HIGHLY ATTRACTIVE SEGMENTS WHERE WE WILL CONTINUE TO DRIVE RAPID ADOPTION UROLOGY ENT - Continue successful expansion into cystoscopy market, - Continue commercialisation of aScope 4 RL to further with aScope 4 Cysto and future HD scope penetrate in-patient market - Ente
Slide 30: GI: Advancing Single-Use Endoscopy in Niche Segments
GI: ADVANCING SINGLE-USE ENDOSCOPY IN GI, FOCUSED ON NICHE HIGH-NEED SEGMENTS THROUGH TARGETED INVESTMENTS FOCUS ON NICHE HIGH-NEED SEGMENTS, OUR FUTURE GI ECOSYSTEM WITH STEPWISE EXPANSION • Continue targeted launch of Gastroscope GASTRO • Focus on procedures with biggest need for aBox™ 2 better wo
Slide 31: Endoscopy Systems: Advancing the Ecosystem of the Future
ENDOSCOPY SYSTEMS: WE ARE ADVANCING THE ENDOSCOPY ECOSYSTEM OF THE FUTURE 2nd GEN: INTELLIGENT DISPLAY 1ST GEN: FUTURE: INTEGRATING FULL UNITS – IMAGE ENHANCEMENT, MONITOR ECOSYSTEM HOSPITAL CONNECTIVITY 2009 - 2020 2020 - 2022 (2022 - …) aView 2 Advance + aBox 2 • Continue to deliver the Ambu custo
Slide 32: Excel in Execution: Focus Areas
EXCEL IN EXECUTION: FOCUS AREAS TO ACCELERATE GROWTH AND IMPROVE PROFITABILITY Focus our go-to- • Focus on highest potential segments based on deep customer insights with step-wise market approach new product launches • Reduce geographical complexity • Enhance sales setup through omnichannel approac
Slide 33: Leaps Towards a Sustainable Future
AS WE GROW, WE WILL DO MORE AND TAKE LEAPS TOWARDS A SUSTAINABLE FUTURE OUR SUSTAINABILITY POSITION HAS MATURED SIGNIFICANTLY WE WILL DO MORE TO ACHIEVE A SUSTAINABLE FUTURE CIRCULAR PRODUCTS & RESPONSIBLE PACKAGING OPERATIONS Committed to Committed to approach sustainable endoscopy net zero emissio
Slide 34: Bringing People Together in One Shared Culture
BRINGING PEOPLE TOGETHER IN ONE SHARED CULTURE OUR PEOPLE AND CULTURE IS A CRITICAL STRATEGIC LEVER FOR CREATING STRONG PROFITABLE GROWTH Fostering a highly engaged, diverse and inclusive culture Building a high-performing and customer-centric organisation, set up for success Attracting and developi
Slide 35: Long-Term Financial Aspirations
CUSTOMER FOCUSED STRATEGY AND EXECUTION EXCELLENCE TO DELIVER ON LONG-TERM FINANCIAL ASPIRATIONS Long-term sustainable Continuously double-digit upward trending revenue growth EBIT margin to industry levels Disciplined capital deployment strategy 35
Slide 36: The New Strategy Is Focused and Customer-Centric
THE NEW STRATEGY IS FOCUSED AND BUILDS ON A STRONG CUSTOMER-CENTRIC EXECUTION PLAN Priorities driven by granular customer segmentation and targeting Value proposition expanded to include workflow and efficiency From 20 launches in two years to fewer, more dedicated and focused launches More focused
Slide 37: Most Customer Centric in Our Field Delivering Profitable Growth
AMBU – THE MOST CUSTOMER CENTRIC IN OUR FIELD DELIVERING STRONG AND PROFITABLE GROWTH CLEAR STRATEGIC ASPIRATION STRATEGY HIGHLIGHTS • Ambu confirms the path to expand our world-leading position in single-use endoscopy solutions • The new strategy ratifies our presence in the four major endoscopy se
Slide 38: Ambu Capital Markets Day 2023
AMBU CAPITAL MARKETS DAY 2023 21 MARCH 2023 For investors, analysts and journalists Ambu Headquarters, Copenhagen More information to come 38
Slide 39: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION 2022 15 NOVEMBER: Q4 AND FY 2021/22 EARNINGS 16 NOVEMBER: ROADSHOW IN LONDON 14 DECEMBER: ANNUAL GENERAL MEETING 2023 7 FEBRUARY: Q1 2022/23 EARNINGS 21 MARCH: CAPITAL MARKET DAY 3 MAY: Q2 2022/23 EARNINGS 31 AUGUST: Q3 2022/23 EARNINGS 8 NOVEMBER: Q4 AND FY 2022/23 EARN
Slide 40: Appendix
APPENDIX 40
Slide 41: Ambu Single-Use Endoscopy Portfolio Covers All Four Major Segments
Products in development AMBU SINGLE-USE ENT portfolio ENDOSCOPY aScope™ 4 RhinoLaryngo PORTFOLIO COVERS ENT High-Resolution ALL FOUR MAJOR Pulmonology portfolio SEGMENTS VivaSight™ aScope™ 4 Broncho aScope™ 5 Broncho aScope™ 5 Broncho, more sizes Video Laryngoscope 2.0 GI portfolio aScope™ Gastro aS
Slide 42: Ambu Forever Forward
Ambu FOREVER FORWARD