Slide 1: Q1 interim report 2016/17
Q1 interim report 2016/17 October 1 – December 31 2016 CEO Lars Marcher CFO Michael Højgaard Conference call: February 1 2017
Slide 2: Agenda
Agenda • Q1 highlights • aScope 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 developm
Slide 3: Q1 highlights
Q1 highlights • High Q1 growth continues • EBIT increased by 41% • Strong cash flow development • Above market growth in core business 4% • Continued momentum on aScope sales – up 85% in units • Full-year outlook adjusted upwards 3
Slide 4: Strong Q1 performance
Strong Q1 performance Organic growth: 11% Revenue: DKK 512m 600 11% 11% 11% 550 512m 9% 500 462m 7% 450 5% 400 Q1 LY Q2 LY Q3 LY Q4 LY Q1 Q1 LY Q2 LY Q3 LY Q4 LY Q1 Gross margin: 53.7% EBIT margin: 12.7% 25% 56% 20% 12.7% 53.7% 54% 15% 10.0% 52.6% 10% 52% 05% 50% 00% Q1 LY Q2 LY Q3 LY Q4 LY Q1 Q1 LY
Slide 5: Business areas
Q1 – organic growth Business areas Patient Monitoring & Diagnostics Anaesthesia Revenue 186m DKK Revenue 326m DKK 0% growth 19% growth 5
Slide 6: Business areas
Q1 – organic growth Business areas Patient Monitoring & Diagnostics Anaesthesia Revenue 186m DKK Revenue 326m DKK 0% growth 19% growth Cardiology Neurophysiology Resuscitators Breathing circuits Laryngeal masks 3% growth 2% growth 21% growth 10% growth 8% growth
Slide 7: Markets
Q1 – organic growth Markets North America Europe Rest of World REVENUE 234m DKK REVENUE 218m DKK REVENUE 60m DKK GROWTH 12% GROWTH 5% GROWTH 36% Key drivers Key drivers Key drivers • Strong aScope momentum • Strong aScope momentum • Asia continues strong growth • Positive development in • High growt
Slide 8: aScope update
aScope update – Market status and expected full-year sales 8
Slide 9: Ambu aScope key selling points are intact
Ambu aScope key selling points are intact • ‘Total cost per use’ gaining acceptance • ‘Cost of clinical outcome’ becoming concrete • Broader Ambu product offering • Competitive landscape is unchanged All cost is shown as average cost and based on independent studies, thus variation in outcome from i
Slide 10: aScope market status
aScope market status • Ambu aScope is gaining market share • Steady conversion from initial purchase to frequent use • Customer base is evenly spread across hospital sizes Share of Ambu aScope sales 35% 20% 20% 25% Hospital size (procedures annually) 1-99 100-199 200-399 400+ 10
Slide 11: Videoscope sales in units
Videoscope sales in units 275-300k Ambu® aScope™ 3 VivaSight™ 200k 96k 59k 40k 14k Isiris™ 2012/13 2013/14 2014/15 2015/16 2016/17 Act. Quantity Expected 11
Slide 12: Financial results and outlook
Financial results and outlook 12
Slide 13: Profitability
Profitability – Continued improvements in profit margins DKKm Q1 16/17 Q1 15/16 • Gross margin improves 1.1%-pts. Revenue 512 462 due to mix and efficiency Gross margin 53.7% 52.6% OPEX -210 -197 • Cost percentage reduced by 2%-pts. Cost percentage 41% 43% • EBIT-margin up 2.7%-pts EBIT 65 46 • Net
Slide 14: Cash flow and balance sheet
Cash flow and balance sheet – Significant reduction of working capital DKKm Q1 16/17 Q1 15/16 • Working capital significantly Cash flow: improved to 23% of revenue Operating activities 73 22 • Gearing at 2.2 vs. 2.4 LY Investing activities -30 -19 FCF before acquisitions 43 3 • Unused credit facilit
Slide 15: Full-year outlook upgraded
Full-year outlook upgraded – Higher growth, improved FC and reduced gearing expected Local currencies Danish Kroner 1 February 8 November 1 February 8 November 2017 2016 2017 2016 Organic growth 9-11% 8-10% - - EBIT margin* - - ~18% ~18% Free cash flows* ** - - ~DKK 200m ~DKK 175m Gearing - - ~1.6 ~
Slide 16: In summary
In summary • High growth and increased profitability continue • Improved EBIT margin as result of scalable business model • Continued strong cash flow development • Above market growth in core business 4% • Videoscope business continues to grow – up 85% • Full-year outlook adjusted upwards 16
Slide 17: Ambu - as that work for life
Ambuw as that work for life
Slide 18: Read more at www.ambu.com
Read more at www.ambu.com Contact CEO Lars Marcher, lm@ambu.com or +45 5136 2490 CFO Michael Højgaard, miho@ambu.com or +45 4030 4349 18