Ambu A/s Class B · OMXCOP:AMBU_B
Ambu A/s Class B — Ambu A S Ord — Q1 2022/23 Earnings Presentation
24 slides from Ambu A/s Class B's earnings presentation, Feb 7, 2023
Slide 1: Q1 2022/23 Results - Investor Presentation
Q1 2022/23 RESULTS AMBU A/S INVESTOR PRESENTATION
Slide 2: Today's Speakers
TODAY’S SPEAKERS BRITT MEELBY JENSEN THOMAS FREDERIK SCHMIDT CEO CFO
Slide 3: Our Purpose
OUR PURPOSE Together, we rethink solutions to save lives and improve patient care
Slide 4: Forward-Looking Statements, Table of Contents, Disclaimer
FORWARD-LOOKING STATEMENTS Q1 2022/23 Investor Presentation TABLE OF CONTENTS DISCLAIMER Q1 2022/23 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 5: Steady organic revenue growth of 4% influenced by high comparables
STEADY ORGANIC REVENUE GROWTH OF 4% INFLUENCED BY HIGH COMPARABLES LAST YEAR DUE TO COVID REVENUE GROWTH Q1 2022/23 HIGHLIGHTS Reported revenue (DKKm) Organic growth Reported growth • Endoscopy Solutions grew 3% 10% and continues to be driven by 4% cystoscopy and ENT and offset 1,031 1,132 by declin
Slide 6: Good momentum on roll out of ZOOM-IN strategy
GOOD MOMENTUM ON ROLL OUT OF ZOOM-IN STRATEGY, FOLLOWING MID-NOVEMBER 2022 LAUNCH • Improved system offering in Europe with • Transformation program ongoing regulatory clearance of Ambu® aView™ with initiatives to improve efficiency 2 Advance and profitability • Expanded US pulmonology offering: • C
Slide 7: Transformation program launched to increase growth and profitability
TRANSFORMATION PROGRAM LAUNCHED TO SUSTAINABLY INCREASE GROWTH AND PROFITABILITY OVER THE COMING YEARS STRONG SETUP TO ENSURE EXECUTIONAL SUCCESS FOCUS TO GENERATE MOMENTUM Q4 2022 ZOOM-IN strategy Focus our go-to market approach rolled out globally and the H1 2023 Transformation Program Scoping of
Slide 8: Strong growth for endoscopy solutions excl. pulmonology
STRONG GROWTH FOR ENDOSCOPY SOLUTIONS EXCL. PULMONOLOGY, WITH PULMONOLOGY INFLUENCED BY HIGH COVID-19 COMPARABLES REPORTED REVENUE DEVELOPMENT (DKKm) Q1 2022/23 HIGHLIGHTS Pulmonology Endoscopy solutions excluding pulmonology • Endoscopy solutions excluding -17% +47% pulmonology reached a reported Y
Slide 9: Flu season peaked during Q1 2022/23
FLU SEASON PEAKED DURING Q1 2022/23 – LIMITED REVENUE IMPACT EXPECTED ON PULMONOLOGY IN Q2 2022/23 % OF OUTPATIENT VISITS FOR INFLUENZA-LIKE ILLNESS COMMENTS U.S. Weekly national summary, 2022-2023 and selected previous seasons • Flu surveillance data indicates that 8% the U.S. flu season has peaked
Slide 10: Evidence shows cost, outcome and sustainability benefits of single-use endoscopy
RECENT EVIDENCE CONTINUES TO SHOW THE COST, OUTCOME, AND SUSTAINABILITY BENEFITS OF SINGLE-USE ENDOSCOPY SOLUTIONS COST BENEFITS FOR BENEFITS TO PATIENT ENVIRONMENTALY FRIENDLY HEALTH SYSTEMS OUTCOMES HEALTHCARE SOLUTIONS U.K. study shows cost reduction Recent retrospective study of over Study shows
Slide 11: Full commercialization of aScope Gastro and aScope 5 Broncho under way
FULL COMMERCIALIZATION OF aSCOPE™ GASTRO AND aSCOPE™ 5 BRONCHO ARE UNDER WAY ACCORDING TO PLAN aScope 5™ Broncho aScope™ Gastro aScope™ 5 Broncho expands Focus on niche high-need segments our addressable market by 2m within the 20M gastroscopy procedure procedures in a well-defined and segment attra
Slide 12: Ambu single-use endoscopy portfolio continues to evolve
Products in development ENT portfolio AMBU SINGLE-USE aScope™ 4 RhinoLaryngo ENDOSCOPY PORTFOLIO CONTINUES TO EVOLVE ENT High-Resolution WITH MAJOR UPCOMING Pulmonology portfolio LAUNCHES VivaSight™ aScope™ 4 Broncho aScope™ 5 Broncho aScope™ 5 Broncho, more sizes Video Laryngoscope 2.0 GI portfolio
Slide 13: Thomas Frederik Schmidt, CFO
THOMAS FREDERIK SCHMIDT CFO Ambuczs,
Slide 14: Reported growth of 10% driven by currency effect and organic growth
REPORTED GROWTH OF 10% DRIVEN BY CURRENCY EFFECT OF 6%-PTS AND ORGANIC GROWTH OF 4%-PTS REPORTED REVENUE DEVELOPMENT (DKKm) Q1 2022/23 HIGHLIGHTS • Reported revenue increased by DKK 101 million, or 10% compared 1,132 to Q1 2021/22 1,031 63 38 • Foreign exchange rates had a positive impact of DKK 60m
Slide 15: North America and Rest of World main contributors to growth
NORTH AMERICA AND REST OF WORLD MAIN CONTRIBUTORS TO THE GROWTH IN Q1 2022/23 REVENUE BY BUSINESS AREA REVENUE BY GEOGRAPHY Q1 2022/23 HIGHLIGHTS Q1 2022/23 reported revenue and organic growth (DKKm) Q1 2022/23 reported revenue and organic growth (DKKm) • Endoscopy Solutions excluding Organic Organi
Slide 16: EBIT margin increase to 6%
EBIT MARGIN INCREASE TO 6% DRIVEN BY OPERATIONAL EFFICIENCIES IN SALES AND DISTRIBUTION EXPENDITURES EBIT MARGIN BEFORE SPECIAL ITEMS DEVELOPMENT (%) Q1 2022/23 HIGHLIGHTS • EBIT margin increase to 6.0% (3.9%) 6.0% +0.1 is driven by revenue growth and impact from the cost reduction program initiated
Slide 17: EBIT margin improvement, continued negative cash flow
EBIT MARGIN IMPROVEMENT, HOWEVER CONTINUED NEGATIVE CASH FLOW DRIVEN BY NET WORKING CAPITAL AND NON-RECURRING ITEMS Q1 2022/23 HIGHLIGHTS EBIT margin before special items Free cash flow before acquisitions • Free cash flow totalled -174m for Q1 2022/23 and NIBD totalled 6.0% 3.9% 4.2% 3.7% DKK 1,817
Slide 18: Focused plan to improve free cash flow by DKK 350-450m
FOCUSED PLAN TO IMPROVE FREE CASH FLOW BY DKK 350-450m FOR FULL YEAR 2022/23 COMPARED TO LAST YEAR NWC, % of revenue of 12 months’ revenue 25% 25% Working capital reduction through normalization of inventory 23% 23% 23% levels and optimization of cash conversion cycle. Inventories are expected to co
Slide 19: 2022/23 financial guidance is maintained
2022/23 FINANCIAL GUIDANCE IS MAINTAINED, AS COMMUNICATED MID NOVEMBER 2022 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 ~2%-points compared to LY due high dou
Slide 20: Delivering on ZOOM-IN strategy in line with long-term financial aspirations
DELIVERING ON OUR ZOOM-IN STRATEGY AND EXECUTION EXCELLENCE WILL DRIVE STRONG PROFITABLE GROWTH, IN LINE WITH LONG-TERM FINANCIAL ASPIRATIONS Long-term sustainable Continuously double-digit upward trending revenue growth EBIT margin to industry levels Disciplined capital deployment strategy 20 20
Slide 21: Capital Markets Day 2023
CAPITAL MARKETS DAY 2023 Date: 21 March 2023 Time: 10:00 – 16:00 CET Location: Ambu A/S, Baltorpbakken 13, 2750 Ballerup, Denmark Senior executives from Ambu and external speakers will join Chief Executive Officer, Britt Meelby Jensen, in sharing insights on the company’s new ZOOM IN strategy. This
Slide 22: Thank you for your attention
THANK YOU FOR YOUR ATTENTION 2023 7 FEBRUARY: Q1 2022/23 EARNINGS 21 MARCH: CAPITAL MARKETS DAY 3 MAY: Q2 2022/23 EARNINGS 31 AUGUST: Q3 2022/23 EARNINGS 8 NOVEMBER: Q4 AND FY 2022/23 EARNINGS INVESTOR RELATIONS CONTACT NICOLAI THOMSEN DIRECTOR, INVESTOR RELATIONS & STRATEGIC FINANCE NITH@AMBU.COM |
Slide 23: P&L Details
P&L DETAILS DKKm FY 18/19 FY 19/20 FY 20/21 Q1 21/22 Q2 21/22 Q3 21/22 Q4 21/22 FY 21/22 Q1 22/23 reported figures Revenue 2,820 3,567 4,013 1,031 1,122 1,128 1,163 4,444 1,132 Gross profit 1,637 2,212 2,503 634 647 629 644 2,554 662 Gross margin 58.0% 62.0% 62.4% 61.5% 57.7% 55.8% 55.4% 57.5% 58.5%
Slide 24: Forever Forward
FOREVER FORWARD Amb