Slide 1: Q2 interim report 2016/17
Q2 interim report 2016/17 January 1 – March 31 2017 CEO Lars Marcher CFO Michael Højgaard Conference call: May 2 2017
Slide 2: Agenda
Agenda • Q2 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: Q2 highlights
Q2 highlights • High growth and earnings • EBIT increased by 42% • Continued strong cash flow development • Momentum on videoscope sales continues – up approx. 100% in units. Increased FY expectations • Core business on track for H1 and full year • Gross margin up with 3.2%-points • Full-year outloo
Slide 4: Strong Q2 performance
Strong Q2 performance Organic growth: 14% Revenue: DKK 613m 14% 650 613m 15% 13% 600 11% 550 532m 8% 9% 500 7% 5% 450 Q2 LY Q3 LY Q4 LY Q1 Q2 Q2 LY Q3 LY Q4 LY Q1 Q2 Gross margin: 55.6% EBIT margin: 19.7% 25% 56% 55.6% 19.7% 20% 54% 52.4% 16.0% 15% 52% 50% 10% Q2 LY Q3 LY Q4 LY Q1 Q2 Q2 LY Q3 LY Q4
Slide 5: Business areas
Q2 – organic growth Business areas Patient Monitoring & Diagnostics Anaesthesia Revenue 217m DKK Revenue 396m DKK 4% growth 20% growth • Visualisation business surpassing projections • Core business on track for full-year 5
Slide 6: Significant potential for core growth
Significant potential for core growth Growth drivers for core business • Cross-selling and value-selling • New GPO and tender contracts • Further expansion in emerging markets Laryngeal masks Resuscitators Facemasks Breathing circuits Cardiology Neurology 20% 22% 19% 22% 33% 49% 6 Ambu market share
Slide 7: Markets
Q2 – organic growth Markets North America Europe Rest of World REVENUE 290m DKK REVENUE 256m DKK REVENUE 67m DKK GROWTH 10% GROWTH 16% GROWTH 19% Key drivers Key drivers Key drivers • Strong aScope momentum • Double-digit growth in all • Double-digit growth in key markets markets • Soft core growth
Slide 8: aScope update
aScope update – Market status and upwards adjusted view on full-year unit sales 8
Slide 9: Single-use scopes widely recognised by hospitals and doctors
Single-use scopes widely recognised by hospitals and doctors 325-350k • Continued acceptance of single-use scope Videoscope sales in units concept • Stable ASP as the value offering is significant • No change to competitive landscape 200k 150k • Expectations for unit 96k sales up ~20% for the 14k 40
Slide 10: Refinements of health economic evidence
Refinements of health economic evidence • From ‘cost of use’ to ‘cost of clinical outcome’ • Cost of use: • Capital cost + repairs + reprocessing • Cost of clinical outcome: • Cost of use + cost of cross-contamination + cost of surgical delays 10
Slide 11: First cost-effectiveness study on aScope incorporating cost of use AND cost of cross-contamination risk
First cost-effectiveness study on aScope incorporating cost of use AND cost of cross-contamination risk Overall conclusions • “Implementation of the single-use technology in the intensive care unit is cost effective in most scenarios” • Single-use flexible video bronchoscope technology is the prefer
Slide 12: aScope continues steady conversion
aScope continues steady conversion • 10% of potential procedures are performed with aScope • Conversion rates increase over time • Large hospitals now 53% of total sales* (Q1 = 45%) 10% 15% of Ambu customers are fully converted to aScope 35% of Ambu customers are ~50% converted to aScope Potential a
Slide 13: Financial results and outlook
Financial results and outlook 13
Slide 14: Profitability
Profitability DKKm Q2 16/17 Q2 15/16 • High organic growth continues Revenue 613 532 Gross margin 55.6% 52.4% • Gross margin improves 3.2%-pts. OPEX -220 -194 due to mix and efficiency Cost percentage 36% 36% • Strong cost control EBIT 121 85 • EBIT margin up 3.7%-pts EBIT margin 19.7% 16.0% Financi
Slide 15: Cash flow and balance sheet
Cash flow and balance sheet DKKm Q2 16/17 Q2 15/16 • Working capital significantly Cash flow: reduced to 23% of revenue Operating activities 90 50 • Gearing at 1.9 vs. 2.4 LY Investing activities -39 -19 FCF before acquisitions 51 31 • Commitment from bank to Balance sheet: refinance bond loan at To
Slide 16: Full-year outlook upgraded
Full-year outlook upgraded – Stronger growth, earnings and cash flow Local currencies Danish Kroner 2 May 1 February 8 November 2 May 1 February 8 November 2017 2017 2016 2017 2017 2016 Organic growth 12-14% 9-11% 8-10% - - - EBIT margin* - - - ~19% ~18% ~18% DKK ~DKK ~DKK Free cash flows* - - - 250
Slide 17: In summary
In summary • Better than expected H1 performance • Single-use visualisation widely accepted • Core business on track • Full-year outlook significantly adjusted 17
Slide 18: Q&A
Q&A 18
Slide 19: 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 19