Download Årsrapport 2007/08 præsentation, 26. november 2008 Ved

Q3 2008/09 presentation, 27 August 2009
By CEO Lars Marcher and CFO Anders Arvai
Agenda

Developments in Q3 2008/09

Strategic focus areas

Outlook for 2008/09
2
Highlights





Overall growth satisfactory in Q3 08/09 –
Ambu continues to win market share
Strong growth in the USA despite economic
downturn
Strategic initiatives within product
development, sales and streamlining taking
effect
Single-use videoscope Ambu aScope
presented at congress in Milan in June 2009
Ambu’s new strategy plan is being prepared
and will be published later this year
3
Revenue




Revenue of DKK 216m in Q3
2008/09, up 10% (6% when
reported in local currencies)
Revenue year to date of DKK
647m, up 11%
Intensified sales efforts bearing
fruit
Positive effect of exchange rates
of approx. DKK 15m year to date
4
Revenue by business area
Q3
2007/08
Q3
2008/09
Growth in local
currencies,
Q3
Growth in local
currencies,
YTD
Share of
revenue,
YTD
Respiratory Care
81.1
84.9
0%
5%
40%
Cardiology
72.5
75.2
3%
8%
34%
Neurology
21.0
28.0
27%
30%
12%
Training
13.7
13.3
(4%)
(2%)
8%
8.6
14.5
59%
16%
6%
196.9
215.9
6%
10%
100%
DKKm
Immobilization
Total
Respiratory Care

Growth of 5% year to date

Lower sales of ventilation
products in Spain, France and


Growth of 3% in Q3 and 8%
Neurology

year to date

Growth generated by a broad
Strong growth of 27% in Q3
and 30% year to date

Adjusted for revenue from
Danish Sales
range of products within the
the acquisition of Sleepmate,
Other growth rates exceed
most important product groups
revenue grew 15% year to
Year-to-date growth in Danish
date
market growth

Cardiology

Still two-digit growth rates
Sales, Germany, Italy and the
within laryngeal masks
USA has been higher than

Successful introduction of
new needles
market growth
5
Revenue by geographical region
DKKm
Q3
2007/08
Q3
2008/09
Growth in
local
currencies,
Q3
Growth in
local
currencies,
YTD
Share of
revenue,
YTD
Europe
133.0
133.9
2%
6%
62%
USA
50.0
66.9
17%
12%
31%
Rest of the world
13.9
15.1
8%
18%
7%
169.9
215.9
6%
9%
100%
Total
Europe




Growth higher than market growth year
to date
Ambu maintaining its position with growth
of 2% in DKK and 6% in local currencies
Slight fall in revenue in Danish Sales,
Spain and Benelux
Development attributable to major oneoff orders in Q3 2007/08 and to multipleuse products being used for longer
USA




Ambu continues to win market share with
growth in revenue of 17%
Cardiology – increased sales to rescue
services and diagnostic procedures
Acquisition of Sleepmate having a positive
impact on growth
Growth within all areas
6
Operating profit (EBIT)



Healthy earnings of DKK 22m –
however affected by higher special
items and increased selling costs
Effect of exchange rates, EBIT:
approx. DKK -6m year to date
EBIT margin of 9.6% year to date
against 11.9% last year
7
Positive development in cash flow from operating
activities
June
2007/08
June
2008/09
66.0
69.7
Investments
(28.9)
(41.6)
Acquisitions
-
(41.1)
37.1
(13)
DKKm
Cash flows from operating activities
Free cash flow



Cash flows from operating activities improved in Q3 to DKK 35m against DKK
24m last year
Cash flow year to date affected by the acquisition of Sleepmate Inc. and
higher investments
Expectations of free cash flow for 2008/09 before acquisitions continue to be
approx. DKK 50m
8
Agenda

Developments in Q3 2008/09

Strategic focus areas

Outlook for 2008/09
9
Ambu has four focus areas
Product
development
Launch of significantly more new
and differentiated products than
has been the case so far
Markets and sales
Increased focus on growing
markets and product areas and
expanding the sales force
Streamlining
Streamlining of important areas
within the company
Acquisitions
Acquisition of new
products and activities
10
Status on strategic initiatives (1)
Product development and new products



Launch of single-use videoscope Ambu aScope at the ESA
congress in June 2009
aScope being matured for production, and sales expected
to commence in Q1 2009/10
Development function in China is working on new versions
of existing products for launch later in 2008/09
Markets and sales



Expansion of the sales force in the USA and the UK is
producing the expected results
Implementation of several organisational changes – larger
and more efficient sales organisations
New sales office to be established in Australia on 1
October 2009
11
Ambu aScope
New innovative single-use videoscope



Combines traditional single-use technology with
advanced new single-use electronics
Launched at Euroanaesthesia 2009 in June 2009
For use by anaesthetists to visualise the airways of
patients being anaesthetised

Alternative to multiple-use fibre-optic scope

Improves patient treatment and efficiency at hospitals

Expected to be ready for marketing in Q1 2009/10

Estimated market size of approx. DKK 1bn
12
Status on strategic initiatives (1)
Product development and new products



Launch of single-use videoscope Ambu aScope at the ESA
congress in June 2009
aScope being matured for production, and sales expected
to commence in Q1 2009/10
Development function in China is working on new versions
of existing products for launch later in 2008/09
Markets and sales



Expansion of the sales force in the USA and the UK is
producing the expected results
Implementation of several organisational changes – larger
and more efficient sales organisations
New sales office to be established in Australia on 1
October 2009
13
Status on strategic initiatives (2)
Streamlining




New logistics planning system
Roll-out of ERP system in the USA
progressing according to plan and expected
to be completed at the beginning of 2010
Ongoing efficiency-enhancing projects in
the production units in Denmark and Asia
Continued transfer of production
Acquisitions

Ongoing dialogue with potential candidates
14
Agenda

Developments in Q3 2008/09

Strategic focus areas

Outlook for 2008/09
15
Outlook for 2008/09 unchanged




High level of activity and investments in the
future
Growth in revenue of approx. 8%,
corresponding to approx. DKK 850m (USD:
550)
EBIT of approx. DKK 100m before special
items relating to the conduct of the pending
patent cases
A free cash flow in the region of DKK 50m
(before acquisitions)
16
Status on patent infringement cases
Patent case in the USA



Case brought by LMA in October 2007
According to decision announced by US court in June 2009 Ambu is not
violating LMA’s patent with three product families
The case is expected to be concluded around the new year 2009/10
Patent cases in Europe



Decision by EPO in February 2008 concerning the invalidation of LMA’s
European patent appealed by LMA
Appeal expected to be decided at the beginning of 2010
LMA’s utility model patent has been upheld in Germany, but it has been
specified how the panel of judges interprets the patent
17
Questions
For further information, please visit www.ambu.com
For further information, please contact:
Lars Marcher, CEO, [email protected] or +45 5136 2490
Anders Arvai, CFO, [email protected] or +45 7225 2000