oktober 14 2013 agenda 2012 13 in brief disclaimer
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Welcome to Ambus 2013 Investor Briefing Oktober 14 2013 Agenda 2012/13 in brief Disclaimer Forward-looking statements, especially such relating to future sales and operating profit, are subject to risks and GPS finish uncertainties.


  1. Welcome to Ambu’s 2013 Investor Briefing Oktober 14 2013

  2. Agenda • 2012/13 in brief Disclaimer Forward-looking statements, especially such relating to future sales and operating profit, are subject to risks and • GPS finish uncertainties. Various factors, many of which are outside Ambu’s control, may cause the actual development of • Climbing New Heights the company to differ materially from the expectations contained in this presentation. Factors that might affect such expectations include, among others, changes in • Look at key growth drivers healthcare, in the world economy and in exchange rates. • A US perspective • Q&A 2

  3. Q4 Highlights Revenue • Best quarter ever and a strong finish of the year DKK 401m • 42% revenue increase; 8% organic growth Q2 • Q4 Q4 Momentum regained in the US with an organic 12/13 12/13 11/12 growth rate of 9% Cost ratio (%) • Economies of scale from King Systems 33.7% acquisition starts to materialize Q2 Q4 Q4 12/13 12/13 11/12 • 31% increase of EBIT to DKK 59m before special items EBITDA b.s.i. DKK 81m • Net working capital reduced to 27% of 12 Q2 Q4 Q4 12/13 12/13 11/12 months revenue and approaching long term targets 3

  4. 2012/13 in brief • Acquisition of King Systems • US main market – revenues doubled • Strong anaesthesia product offering completed • Foundation for cross selling opportunities • Organizational efficiencies and scale effects • Launches in visualisation market • aScope 3 in Europe & US FDA clearance • King Vision single-use blade • One-stop shopping in PMD • Full electrode portfolio • Optimized production in UK 4

  5. Growth rates above market in all in all business areas Growth rates Anaesthesia • 5% organic growth 66% • Growth regained after integration 13% • Largest-ever contract with HPG 9% Patient Monitoring & Diagnostics Anaesthasia PMD Emergency Care • 6% organic growth • Effect from full electrode portfolio • Double-digit growth in Neurology FY revenue split 11% Emergency Care • 9% organic growth driven by 47% 42% neck collars and manikins Organic growth rates stated in local currency 5

  6. Strong growth in all markets Growth rates USA • 3% organic growth 69% • Integration of King Systems 13% • Dedicated sales forces 16% Europe USA Europe Rest of World • 8% organic growth • Ambu winning market shares • Challenging markets Revenue split 10% Rest of World 42% • 11% organic growth 48% • Sales efforts paying off in Asia • Foothold in South America Organic growth rates stated in local currency 6

  7. Strong focus on integration in 2013

  8. Financials and full-year outlook Strong revenue growth from acquisitions 8

  9. Financial results DKKm 2011/12 2012/13 King Systems contribution Revenue 1,045 1,383 242m (7.5 mth.) Gross profit 570 679 Gross Margin (%) 54.5 49.1 Capacity costs (416) (518) Rate of costs EBIT before special items 151 161 37.5% (vs. 40.1%) EBIT-margin before special items (%) 14.4 11.6 Special items (6) (61) Financials, net (1) (30) Dividend Net result 110 48 1.25 (31% of net result) DKKm 2011/12 2012/13 Cash flow from operations 158 122 Cash flow from investments (47) (54) Free cash flow Before special items Free cash flow before acquisition 111 68 114m Cash flow from acquisitions (31) (704) 9

  10. Strong balance sheet Working capital ratio DKKm 2011/12 2012/13 (%, 12 mth. annualised revenue) Total assets 949 1,891 40 Working capital 354 417 35 Net Interest Bearing Debt (NIBD) 57 721 30 Gearing ( NIBD/EBITDA b.s.i.) 0.3 3.1 25 Equity ratio (%) 70,1 35,3 20 08/09 09/10 10/11 11/12 12/13 • Improved working capital ratio Debt structure • Solid financing at attractive interest rates (DKKm) 7 and listing of corporate bonds before year- 71 end 697 • Sufficient un-used credit facilities to cover current plans Short-term bank debt Long-term bank debt Corporate bonds 10

  11. Full-year 2013/14 outlook Guidance Assumptions Revenue ~DKK1.6bn • Continue to gain market shares • Cross sale effecta • Cross sales King Systems-Ambu products • Launching new higher-margin products • Organic growth ~5-7% Ambu will continue to outgrow markets • ~12-14% Global efficiencies EBIT-margin • Price pressure • DKK 40m synergies from King Systems FCF before acquisitions, DKK 100-120m • Strong focus on managing working capital milestone payments etc. Gearing (NIBD/EBITDA) ~2.5 • Continued reduction of working capital and improved EBITDA 11

  12. DKK 40m of synergies will be delivered • Synergies from manufacturing • Introduction of higher margin business • Lower rate of costs due to scale effects

  13. New strategy launched 13

  14. GP GPS Fou our r Strategy rategy

  15. We come out of the GPS Four journey as a transformed & stronger company Year 4 Year 3 The Destination Year Year 2 • Acquiring King Systems 1 Focus on growth • Re-branding • cardiology Acquiring Cost optimisation Unomedical’s • Building a Getting NICE electrode business • recommendation Moving DK platform • production to Penang Establishing • Reaching share price European distribution • above 200 • Updating the Ambu Launching GPS Four centre brand • Concluding GPS • Establishing STs • Implementing HR • Four HQ in one location • Establishing global management system • Starting Five Star R&D - SuccessFactors Leadership • Expanding factory in • Movex US and EMEA • Establishing product Xiamen • Reaching 1 billion lifecycle system • Launching aScope turnover - Agile

  16. GPS Four achievements Business IT Global and Sales presence backbone world class in Australia, manu- Brazil, China, India and facturing Malaysia Growth- Global driving R&D products From analogue Strong and to digital Ended focused legal strife From small sales force with LMA cap to mid cap share

  17. GPS Global • From local to global manufacturing, R&D, IT, RA and sales

  18. GPS Positioning • From niche position to dominant player • From follower to first-mover • From internal focus to customer focus

  19. GPS Systems • From few and isolated systems to many global systems • From investments to daily use • From product sales to solution selling

  20. Ambu – a transformed company Sales in million DKK 1,383 m DKK 877m DKK 2009 2013 76m DKK 161m DKK EBIT 12.5% 11,6% (Ambu well above 16%) EBIT% 58m DKK 114m DKK Cash flow

  21. Solid shareholder creation From 112 to 255 in GPS Four

  22. Acquisitions fit and make us stronger

  23. Strong growth platforms Anaesthesia PMD Circuits Regional Anesthesia Visualisation Face & Bite Resuscitators laryngeal blocks masks

  24. GPS Four successfully completed  A truly global Global manufacturing, logistics, IT and R&D Cost ratio down from 40% to 37,5% company  Unique market Sales in EMEA, USA and Asia increased 20%,300% and 100% respectively position  Profitable DKK 1.4bn revenue 15% EBIT in “old” Ambu ahead of time growth ÷ 15% of revenue from new products Real innovation (should have been 30%)  A great place to An attractive place to work; focus on performance and fun; 1000 new colleagues work  A better home Three acquisitions in 4 years

  25. Market challenges going forward Shift to lower- priced products Increased focus Price pressure; on costs and competition in benefits mature markets Focus on Complex hospital customer standards and structure workflows

  26. Ambu needs to pay even more attention to important macro trends

  27. Shift in buying power

  28. And we are on the big players’ radar Ambu must learn to act under the rules of a big player • Shorter window of opportunity – quicker responses • Sharper communication against our value claims can be expected • More visibility – What we say and do as individuals can have major impact on Ambu

  29. That is why we must reiterate our customer approach Train ourselves to Relationship become a valuable solutions partner Present solutions with Enhanced clinical and health offering economical benefits Provide excellent Best in class service and customer service care

  30. The new strategy Our targets and how we will reach them

  31. Beyond 2 billion • Go beyond the 2 billion DKK mark • Grow EBIT to 22% and EBITDA to 28% • Double market cap to 5 billion DKK

  32. Climbing to revenues of DKK 2bn 1 Expand visualisation platform with new products 2 Optimise ‘ Ambu Classic’ offering and improve cross-selling 3 New channels & market segments 4 Drive Anaesthesia penetration with combined offering 5 Partnering to adjacent businesses

  33. Commercial innovation

  34. Improving profitabillilty Operational Innovation for Synergy effects optimisation: Pricing premium price and economies Lowest costs in optimisation products of scale industry From 11.6% to 17-18% EBIT margins within 4 years;

  35. How we will conquer the peaks Our priorities • Dominant player in anaesthesia and PMD • Fulfil economics of scale • Commercialisation of innovation and high ROI • Strong global organisation with highly motivated people

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