Slide 1: Q2 interim report 2018/19
Q2 interim report 2018/19 January 1 – March 31, 2019 CEO Lars Marcher CFO Michael Højgaard Conference call: May 1 2019
Slide 2: Agenda
Agenda • Q2 highlights • Business update • 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 develo
Slide 3: Key financial results in Q2 2018/19
Key financial results in Q2 2018/19 Financial results Q2 numbers and highlights Q2 Full-year guidance 2018/19 (2018/19) • 14% organic growth • EBIT margin at 24.8% Organic revenue growth 14% 15-16% • Core business up 8% EBIT margin 24.8% 22-24% • Endoscope unit sales up Financial 26% corresponding t
Slide 4: Strong historic performance
Strong historic performance Organic growth: 14% Revenue: DKK 785m 785m 800 18% 750 15% 651m 16% 14% 14% 700 14% 650 613m 600 12% 550 10% 500 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 16/17 17/18 18/19 16/17 17/18 18/19 Gross margin: 60.1% EBIT margin: 24.8% 30% 62% 60.5% 60.1% 24.8% 60%
Slide 5: Business areas
Business areas Q2 Visualization growth at 27% and Core at 8% Visualization Revenue 283m DKK PMD 27% growth Revenue 242m DKK 33% growth in H1 10% growth 6% growth in H1 Anaesthesia Revenue 260m DKK 5% growth 6% growth in H1 5 Growth is stated as organic growth
Slide 6: Markets
Markets Q2 revenue and growth across regions North America Europe Rest of world REVENUE 376m DKK REVENUE 312m DKK REVENUE 97m DKK ORGANIC GROWTH ORGANIC GROWTH ORGANIC GROWTH 16% 9% 24% Business growth Business growth Business growth • Visualization 34% • Visualization 20% • Visualization 20% • Anae
Slide 7: Business update
Business update 7
Slide 8: Launch of Ambu aFlow breathing circuits in Europe
Strengthening Core business Launch of Ambu® aFlow breathing circuits in Europe Market Value proposition Market size Combined with our existing in Europe facemasks, resuscitators and laryngeal masks, circuits DKK +700m represent an ongoing effort at Ambu to provide hospitals with a complete airway ma
Slide 9: Strong quarter with 182k endoscopes sold
Strong quarter with 182k endoscopes sold Endoscopes Endoscope units vs. last year (‘000 units) +1,000 +26% +34% 182 +750 145 560 Q2, 17/18 Q2, 18/19 364 +33% 200 331 249 96 331 40 249 14 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 H1, 17/18 H1, 18/19 With 182k endoscopes sold We do not see any p
Slide 10: Large aScope potential within OR and ICU
Large aScope potential within OR and ICU Overall 20% pulmonary market share in OR and ICU (3 million procedure market) 26% Europe 21% US ~3,500 customers use aScope and 500+ have gone single-use (>80% aScope) High Medium Low +50% ~50% ~30% ~15% We expect ~80% of the pulmonary market to be single-use
Slide 11: On track to full range of single-use flexible endoscopes
On track to full range of single-use flexible endoscopes Pulmonary endoscopy 11m ENT endoscopy aScope VivaSight Broncho aScope aScope Broncho DL & SL Sampler RL Slim RL Intervention 5m 1.9m Launched EU/AU US launch before summer 2019 7m Urological endoscopy 72m GI endoscopy Isiris aScope aScope aSco
Slide 12: We have launched both aScope 4 RhinoLaryngo Intervention and Slim
We have launched both aScope™ 4 RhinoLaryngo Intervention and Slim (US pending) Average selling price (ASP) We initially target hospitals Share of procedures per segment Slim: USD 135 Hospitals & staff Intervention: USD 250 30% 11m Clinics We have adjusted the price to fast-track penetration and pro
Slide 13: We have launched the BronchoSampler in the US, Australia, and Europe
We have launched the BronchoSampler™ in the US, Australia, and now in all markets in Europe Initial customer reactions Market (annual no. of procedures) Bronch suite ICU respondents said staff 7/10 would use it every time if available 1.9m This is an amazing grab’n’go solution We target the ICU, whe
Slide 14: Progressing with the SC210 commercialisation plan
Progressing with the SC210 commercialisation plan Market need for single- use colonoscopes (500-patient survey results) Ongoing: H2 2018/19: were not aware that Clinical US study Launch in US 3/4 the scope in their Outcome of clinical procedure was reused study is delayed due to minor technical issu
Slide 15: Full speed on the single-use duodenoscope
Full speed on the single-use duodenoscope • FDA continues to apply pressure on reusable duodenoscope providers due to continuous contamination issues • The development of Ambu’s single-use duodenoscope* for ERCP procedures is on track for a launch before 30 September 2020 • Ambu will demonstrate aSc
Slide 16: Financial results and outlook
Financial results and outlook 16
Slide 17: Growth and profits
Growth and profits Ambu P&L – Q2 2018/19 Comments DKKm Q2 2018/19 Q2 2017/18 • 14% organic growth and 21% in DKK Revenue 785 651 from appreciating USD/DKK and GPO fees Gross margin 60.1% 60.5% • Gross margin down 0.4%-points due to a.o. renewed GPO contracts OPEX -277 -238 • OPEX includes impact fro
Slide 18: Cash flow, assets and debt
Cash flow, assets and debt Ambu cash flow and balance – Q2 2018/19 Comments DKKm Q2 2018/19 Q2 2017/18 • Cash flow from operating activities at 8% (11%) Cash flow and ratios: and is impacted by higher AR balances Operating activities 63 8% 70 11% • Investments of 7% (8%) mainly R&D activities Invest
Slide 19: Summary
Summary Q2 2018/19 Highlights 14% • On track for full-year targets organic growth • Strong Q2 growth and solid earnings 24.8% • Several products launched recently and more EBIT margin are in development 182,000 • Single-use is becoming more and more recognised as a solution to the problems of endosc
Slide 20: Financial year 2018/19 guidance and 2020 strategy target
Financial year 2018/19 guidance Financial results and 2020 strategy target Financial outlook maintained Financial year Financial year Financial outlook 2018/19 2019/20 Organic growth 15-16% 18-23% EBIT margin 22-24% 26-28% Free cash flow (excluding M&A) DKK 400-475m ~ 18% of revenue Endoscopes sold
Slide 21: Q&A
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Slide 22: Financial calendar
Financial calendar 2019 Event 22 August Q3 Report 2018/19 13 November Annual Report 2018/19 17 December Annual General Meeting 2018/19 For full list of Investor Relations events, please visit: www.ambu.com/about/corporate-info/investors/calendar 22
Slide 23: Read more at www.ambu.com
Read more at www.ambu.com Contacts CEO Lars Marcher, lm@ambu.com or +45 5136 2490 CFO Michael Højgaard, miho@ambu.com or +45 4030 4349 IR Manager Nicolai Thomsen, nith@ambu.com or +45 2620 8047 23