Ambu A/s Class B · OMXCOP:AMBU_B
Ambu A/s Class B — FY2007/08 Earnings Presentation
22 slides from Ambu A/s Class B's earnings presentation, Nov 26, 2008
Slide 1: Annual Report 2007/08 presentation, 26 November 2008
Annual Report 2007/08 presentation, 26 November 2008 By Lars Marcher, CEO, and Anders Arvai, CFO
Slide 2: Agenda
Agenda Developments in 2007/08 More ambitious strategy Outlook for 2008/09 26 November 2008 2
Slide 3: Highlights
Highlights 2007/08 a satisfactory year Solid growth in revenue and operating profit Growth in revenue at a higher level Growth in virtually all markets and for the entire product programme Ambu wins market share Activities launched earlier within production, product development and sales
Slide 4: Revenue
Revenue Revenue of DKK 784m for FY 800 2007/07 – up 10% (15% when reported in local currencies) 600 USA back on track Streamlining of sales efforts 400 beginning to bear fruit Negative effect of exchange rates of approx. DKK 36m 200 0 03/ 04 04/ 05 05/ 06 06/ 07 07/ 08 26 November 2008 4
Slide 5: Revenue by business area
Revenue by business area DKKm 2006/07 2007/08 Respiratory Respiratory Care 271.2 317.1 Care Cardiology Cardiology 266.2 276.9 Neurology Neurology 69.4 79.0 CPR Training 61.3 63.6 CPR Training Immobilization 46.9 47.8 Immobilization Total 715.0 784.4 Respiratory Care Cardiology Neurology Double-dig
Slide 6: Revenue by geographical region
Revenue by geographical region DKKm 2006/07 2007/08 Europe 467.4 511.4 Europe North America 182.5 211.9 North America Rest of the Rest of the world 65.1 61.1 world Total 715.0 784.4 Europe USA Growth exceeds market growth Growth at a high level – 31% increase Solid growth in core markets, when
Slide 7: Operating profit (EBIT)
Operating profit (EBIT) EBIT of DKK 86m against DKK 69m 100 the year before 90 Improvement is primarily attributable 80 to higher revenue and higher gross 70 profit margin 60 Changes in exchange rates: negative 50 40 impact on EBIT of approx. DKK 5m 30 EBIT margin of 11.0% against 9.7% the y
Slide 8: Slightly improved cash flow
Slightly improved cash flow DKKm 2006/07 2007/08 Cash flows from operating activities 89.5 84.5 Cash flows from investing activities: (56.0) (48.9) Free cash flow 33.4 35.6 The improvement is primarily attributable to a higher operating profit and lower investments 26 November 2008 8
Slide 9: Agenda
Agenda Developments in 2007/08 More ambitious strategy Outlook for 2008/09 26 November 2008 9
Slide 10: Ambu heading for new goals
Ambu heading for new goals Activities in the next two years Product The launch of significantly more new and differentiated development products than has been the case so far Acquisitions The acquisition of new products and activities Markets and products Increased focus on growing markets and produ
Slide 11: Several new products
Several new products The ability to develop new products is Primary focus on decisive to ensuring higher growth differentiated single-use products for: Further focusing and intensification of development efforts Hospitals Focus on products developed by Ambu as Rescue services well as acquired
Slide 12: More efforts going into making acquisitions
More efforts going into making acquisitions Acquisitions to stimulate growth Business areas: Continuous scanning of the market – focus is on the acquisition of small companies and product lines as well as large companies What we are finding is that prices are moving towards more realistic leve
Slide 13: Sleep diagnostics – agreement with Sleepmate
Sleep diagnostics – agreement with Sleepmate Conclusion of conditional agreement con- Sleep diagnostics – cerning the purchase of activities from growth drivers Sleepmate Technologies Inc. in November 2008 Market growth of 15% Sensors used to examine obstructive sleep apnoea Only a small percent
Slide 14: Focus on growth markets and bigger sales force
Focus on growth markets and bigger sales force Further streamlining of the sales efforts in Europe and the USA and taking on more salespeople Increased efforts in selected markets with high growth and developed health systems China – establishment of own sales offices Selected countries in E
Slide 15: New production strategy
New production strategy Production will be based at the existing factories in Denmark, China and Malaysia in the coming four years Future production capacity expansions will be implemented in Malaysia – the factory in Malaysia will be extended by approx. 8,000 square metres Production in China
Slide 16: General streamlining of key areas
General streamlining of key areas Sales and marketing – further intensified efforts Development – including strengthening of search team Supply chain – including the establishment of strategic purchasing function, improvement of forecasting system and better inventory management Production –
Slide 17: Financial objectives
Financial objectives Growth at significantly higher level than market growth Increase in EBIT margin – no increase in 2008/09, however, due to increase in sales force Increase in cash flow – among other things via working capital optimisation 26 November 2008 17
Slide 18: Agenda
Agenda Developments in 2007/08 More ambitious strategy Outlook for 2008/09 26 November 2008 18
Slide 19: Outlook for 2008/09
Outlook for 2008/09 Growth in revenue of approx. 8%, corresponding to approx. DKK 850m (USD: 550) EBIT margin of approx 11-11.5%, corresponding to approx. DKK 97m Profit before tax of approx. 10-10.5% of revenue, corresponding to approx. DKK 87m Free cash flow of approx. DKK 50m (with invest
Slide 20: Gearing for higher profitable growth in 2008/09
Gearing for higher profitable growth in 2008/09 Launch of new products – more in the pipeline Acquisition of new products and activities – identification of opportunities Increased sales efforts in both growing markets and product areas – establishment of sales offices in China and expansion o
Slide 21: Questions
Questions
Slide 22: For further information, please visit www.ambu.com
For further information, please visit www.ambu.com For further information, please contact: Lars Marcher, CEO, lm@ambu.com or +45 5136 2490 Anders Arvai, CFO, aa@ambu.com or +45 7225 2000 26 November 2008 22