Slide 1: Capital Market Day, London, 4 October 2017
Autumn / Winter 20 17 Lars Marcher, CEO Michael Hojgaard, CFO Carsten Buhl, CCO 5) Ambu Ideas that work for life Capital Market Day London, 4 October 2017
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Slide 3: 100 million patients to 300 million patients
300 million patients Positive Better impact health on more economy lives 100 million patients More New decision- application power to areas with patients single-use visualisation
Slide 4: Agenda
Agenda The Ambu Case & Big Five Financial Outlook Commercial initiatives Wrap up OOOWH Q&A Lars Marcher, CEO Michael Hojgaard, CFO Carsten Buhl, CCO Lars Marcher, CEO All
Slide 5: The Ambu Case & Big Five
@) The Ambu Case & Big Five Lars Marcher, CEO
Slide 6: This is Ambu
This is Ambu *Before special items
Slide 7: In the past strategy period we rewarded investors with more than x8 return
In the past strategy period we have rewarded our investors confidence with more than x8 return FY Market Cap 16/17 Development in our two recent strategy periods (bn DKK) 22.9 +769% FY FY 12/13 08/09 +103% 2.6 1.3 GPS Four Climbing New Heights 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 8: Since 2008 we have expanded by ~x3 and increased profitability 4 times
Since 2008 we have expanded by ~x3 and increased our profitability 4 times FY 16/17 Revenue: 2.3bn DKK Revenue bn DKK EBIT margin: 19.0% 2.0 FY 12/13 Revenue: 1.4bn DKK EBIT margin: 11.6% FY 08/09 Revenue: 0.9bn DKK 1.0 EBIT margin: 12.5% Turn around & infrastructure Invest for growth 2009 2010 2011
Slide 9: We are closing in on competition on earnings
We are closing in on competition on earnings …and with the investments made over the Ambu EBIT margin vs. Peers1 past 4 years we are now more robust than ever Coloplast 33,0% CR Bard 24,7% ICU Medical 22,6% R&D Production Sales Medtronic 20,8% Sonova 19,5% Ambu, FY16/172 19,0% Our global Following s
Slide 10: On top line growth Ambu is in a league of its own
On top line growth Ambu is in a league of its own Revenue growth % (CAGR FY 13-16) 14.6% 10-12% 5-10% 0-5%
Slide 11: Our ability to make successful transformations sets Ambu apart
Our ability to make successful transformations as a company is what sets Ambu apart
Slide 12: And we are set to transform Ambu once again
…And we are set to transform Ambu once again
Slide 13: Today the platform contributes with ~25% of revenue
Four years ago, Visualisation and Flexible scopes almost did not exist in Ambu …today the platform contributes with ~25% of revenue 2% 7% 13% 25% Q1 Q1 Q1 Q3 FY13/14 FY14/15 FY15/16 FY16/17 Flexible Scopes Core
Slide 14: Ambu is more relevant than ever!
Ambu is more relevant than ever! Disposable scopes address one …And have a strong set of additional value of the top global health concerns…. propositions that increase its relevance to hospitals Top 10 Health Technology Hazards 2017* 1. Infusion Errors Can Be Deadly If Simple Safety Steps Are Overl
Slide 15: aScope platform continues strong momentum
Ambu aScope platform continues strong momentum and we continue to expand the potential The disposable revolution continues And with aScope 4 we now cover the entire Airways market its in-roads in hospitals world wide # Procedures (m) 1,2 1,8 ~2,0 ~5,0 Act Quantity Call point OR ICU Bronch suite 300.
Slide 16: With aScope 4 we've opened the diagnostic field of endoscopy
With aScope 4 we’ve opened the diagnostic field of endo- scopy and are ready to step up our game in Visualisation Diagnostic aScope 4 marks a new era with aScope 6 significantly better image quality aScope 5 and mechanical performance aScope 4 With aScope 4 we will… Accelerate our penetration Th
Slide 17: We are going to explore new potentials
* We are going to explore new potentials * We are in uncharted territory * We need to adapt to new surroundings * Competitors are not visible * We are in search of the big potentials
Slide 18: Proven the case with aScope
Proven the case with aScope & a new platform to expand on A stronger and more robust business than eee . o Ke A more relevant offering customers and patients A lead on our competitors
Slide 19: Climbing New Heights achievements
• Global R&D doubled in size • Production capacity expanded manifold • Expanded & dedicated sales forces • Visualisation becoming the main contributor stabilizing our business • Scale in our business and added 7%-points on EBIT since start of Climbing New Heights strategy
Slide 20: Leading market positions in main product categories
• Leading market positions in our main product categories • Ambu is leading one of the biggest conversions in global healthcare to ensure contamination-free scopes • We have the evidence that our solutions are the most effective
Slide 21: aScope 4 Broncho
Diagnostic aScope 6 aScope 5 aScope 4 • 1 of 10 procedures in the OR/ICU globally Broncho being performed with a disposable scope • aScope 4 Broncho increases our direct Therapeutic aScope 3 addressable market by 50% aScope 2 aScope 1 (from ~3m to ~5m annual procedures) • The upgraded platform a
Slide 22: Dedicated sales forces in main sales territories
• Dedicated sales forces in our main sales territories now in place • Increased specialization in our Visualisation business • Global sales force increased by almost 20%, we are now approx. 400 people in Sales
Slide 23: Outgrowing most of our peers
• Outgrowing most of our peers by a factor +5 • We have scale in our production • Significant know-how buildup throughout our organization Revenue growth % (CAGR FY 13-16)
Slide 24: We are ready to go for the big potentials!
We are ready to go for the big potentials! Revenue 5.0 bnDKK 4.0 3.0 2.0 Positioned for 1.0 big potential Turnaround & infrastructure Invest for growth 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Fix cost base Lift growth to +10% level Capitalize on investments Get infrastructure in
Slide 25: Strategy pillars
stentiale in Build Business - cat on Core Boosters Visualisation Enhance organisation a
Slide 26: Go for big potentials in Visualisation
Business Enhance Boosters organisation a & . - ’ ~ - os it * aScope as standard of care in the airway applications * Address +50% endoscopy procedures Go for big potentials in Visualisation * aScope no. 1 in single-use scopes ¢ * Dedicated sales equipped with best in class health economics #
Slide 27: Ambu current focus, 2020 focus and full potential
Ambu Ambu The full current focus 2020 focus potential ~5 m procedures ~50 m procedures ~150 m procedures
Slide 28: We're going for the potential in Visualisation
We’re going for the potential in Visualisation! 5m procedures +50m procedures
Slide 29: Build on Core
Go for big potentials in Business Enhance Visualisation Boosters organisation * Increase hospital relevance around current users & settings + Expand dedicated sales to outgrow market by x2 + Protect position as premium supplier Build on Core a
Slide 30: Business Boosters
Ambu aScope 4 Broncho Go for big . potentials in Build eeoRt Now Enhance Visualisation on Core ms organisation Single-use devices for inside and hospitals AuraGain™ Disposable Laryngeal Mask Ambu by the numbers 10% 80 2400 + Acquire & partner to strengthen position Business * Digitalize Ambu Booster
Slide 31: Enhance organisation
Go for big potentials in Visualisation Build ) Business on Core Boosters * Stay grounded in the Ambu culture * Gain from shared services across global corporation - Ambu as the best place to work a
Slide 32: Patient relevance, development and commercial efficiency x3
Go for big , potentials in }} Build Visualisation, Business Enhance Boosters organisation on Core + Patient relevance x3 * Development efficiency x3 * Commercial efficiency x3 % %
Slide 33: Big Five financial targets
Big Five financial targets – our strategic direction translates into ambitious financial goals
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Slide 35: Financial Outlook
Financial Outlook Michael Hojgaard, CFO
Slide 36: Financial 2020 guidance
Financial 2020 guidance – - Based on organic growth and excluding acquisitions FY FY FY 5% growth from 16/17 19/20 16/17 19/20 16/17 19/20 and ~300m ~14% 13-15% ~19% ~24-25% 15%* 18% 50% of revenue from visualisation in FY 19/20… Free cash Growth EBIT margin Growth Growth flow DKK … and more than *
Slide 37: We have the capital structure to deliver on our 2020 ambition
We have the capital structure to deliver on our 2020 ambition Current gearing level Dividend policy Gearing end FY 16/17 Unchanged dividend ~1.4x EBITDA policy towards FY 19/20 Acquisition capacity today in range of DKK 2bn Target gearing Free Cash Flow Target gearing towards A strong free cash flow
Slide 38: Financial outlook for FY 17/18
Financial outlook for FY 17/18 – - Based on organic growth and excluding acquisitions FY FY FY 5% growth from 16/17 17/18 16/17 17/18 16/17 17/18 and ~14% ~13% ~19% ~20-21% ~300m ~275- 300m +30% share of 15%* 14%* revenue from visualisation in FY 17/18… Free cash Growth EBIT margin Growth Growth flo
Slide 39: Commercial initiatives
Commercial initiatives Carsten Buhl, CCO
Slide 40: Plenty of room to grow despite high aScope account usage
Despite high aScope account usage, we continue to see plenty of room to grow Europe & Aus United States Market Share SALES Market Share EXCELLENCE 7% 17% = SEGMENTATION & TARGETING x 3 Full conversion RESOURCE & Account Account ACTIVITY LEVEL Move from 2 penetration penetration x initial penetration
Slide 41: Largest sales territory expansion in the company's history in the US
Ambu is making the largest sales territory expansion in the company’s history in the US WHY DO WE INVEST NOW? US currently is our largest sales territory with +6,000 hospitals Today – US x Today, majority of revenue still comes from Anaestesia and PMD, but the majority of sales time is allocated tow
Slide 42: The new structure will ensure focus and increased specialization
The new structure will ensure focus & increased specialization to drive deep account penetration • • • • • • • • •
Slide 43: Wrap-up
@ Wrap-up Lars Marcher, CEO
Slide 44: The Ambu case
The Ambu case With aScope 4, We will increase our We will outgrow the We are set for another we increase our Visualisation market in Core transformation making Pulmonary market market by a factor 10 by a factor 2 Visualisation +50% of our potential business We will add We will grow organically We
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