Company Announcement no. 1-2009/10 - New strategy strengthens Ambu’s global position

Ambu today announces a new four-year strategy known as GPS Four. The implementation of the strategy will involve all parts of the organisation and aims to create a significantly stronger Ambu with significantly higher revenue and earnings. This will be achieved by strengthening of innovation and product development as well as through improvement in efficiency. Acquisitions to strengthen Ambu’s product portfolio and market share are likely important elements in Ambu’s new strategy. 
 

“In GPS Four we have an ambitious strategy and a strong tool which can ensure that we maintain our direction and focus – and that implementation is efficient. And the objectives are clear: GPS Four will further speed up our product development, strengthen sales and increase efficiency. By developing innovative and differentiated single-use products, we will contribute to ensuring that hospitals worldwide can be managed more efficiently, while at the same time improving the treatment of patients. In this way, we can grow more than the market and also increase earnings year on year. With our new strategy, we believe that we can create a significantly stronger and truly global company,” says Lars Marcher, President & CEO of Ambu A/S.
 

GPS Four sets out a number of ambitious targets for the next four years.

GPS stands for:

Global:
Ambu wants to be a truly global company. This will be realised by 2013 by Ambu having achieved considerable competitive advantages based on the company’s global sales approach, developing our production facilities in Asia and through improving efficiency.

Positioning:
Ambu will, by 2013, be a focused and leading supplier of medico-technical single-use products for hospitals and the rescue services.

Systems:
Ambu will, by 2013, have achieved significant improvements in efficiency through the implementation of global IT systems which support and strengthen sales, production, innovation and financial reporting.

The objectives are by 2013, to have achieved the following:

• Significantly higher revenue
• An increasing EBIT margin of up to 15%
• Leaner operations and thereby a reduction in net working capital
• A position as an innovative company

The objectives will be met by:

• Increasing Ambu’s ability to develop new and differentiated single-use products for the company’s core markets
• Streamlining Ambu’s production by centralising production in Asia and introducing considerable cost reductions
• Improving logistics and delivery systems
• Intensifying global sales efforts
• Investing in global IT systems
• Investing in employee development
• Making acquisitions
   

Ambu’s four focus areas
Based on profitable growth, increased innovation and improved efficiency, Ambu will, in the coming four years leading up to 2013, make the most of both existing and new market opportunities. Particular focus will be on the following four areas – the four GPS coordinates:
 

GPS1: Products
In the coming four years, Ambu will launch significantly more products. The development of new products and product updates will take place in Denmark as well as in China and Malaysia.

The aim is for 30% of revenue to be generated by new products in 2013 and for approx. 5% of revenue to be invested in innovation.

Ambu’s five business areas will be redefined and reduced to three:

GPS2: Markets
Ambu will strengthen its position in the USA, EMEA and Asia.

The sales organisations will be strengthened in general, among other things through the appointment of new and skilled salespeople and the efficient use of sales tools, including intensified marketing and more sales campaigns aimed at winning market share.

The American market, which is the largest market for health care products in the world, holds considerable growth potential, and Ambu will continue to increase its penetration of this market. Ambu will therefore be making more investments, among other things in IT, a new inventory management system, sales and marketing resources and the launch of differentiated products. At the same time, Ambu will actively look into possibilities for acquiring products and entering into partnerships.
 

In the markets in Europe, the Middle East and Africa (EMEA), Ambu will continue to increase the efficiency of sales.
 

In the coming period, collaboration with distributors in Eastern Europe and collaboration with existing distributors will be developed.

In the coming four years, Ambu will expand its own representation and enter into
partnership agreements in Asia.

GPS3: Efficiency
In all parts of the organisation, projects will be implemented which are aimed at improving business processes and increasing efficiency.
 

The implementation of new IT systems has already been initiated.

With a view to cutting costs and increasing efficiency, it has also been decided to move all production to China and Malaysia. China will thus become a new competence centre for spray moulding, while Malaysia will become a competence centre for electrodes and electronic single-use products.

GPS4: Acquisitions
The aim is still, by the end of 2013, to have made one or more major acquisitions which can increase Ambu’s market share within single-use products for hospitals, clinics and rescue services.

You can download the company announcement as a PDF document here.

Further information:
Lars Marcher, President & CEO, tel. +45 5136 2490, email: lm@ambu.com
 

Ambu develops, produces and markets diagnostic and life-supporting equipment and solutions to hospitals and rescue services. Our business areas are Airway Management, Patient Monitoring & Diagnostics and Emergency Care in which the most important products are ventilation products for artificial respiration and single-use electrodes for ECG tests and neurophysiological mappings.

Ambu’s products are sold worldwide. Exports account for 98% of sales, and sales are handled via Ambu’s foreign subsidiaries or via distributors. Ambu has approx. 1,600 employees, of whom approx. 350 work in Denmark and approx. 1,250 abroad.