Stock Exchange Release no 3-2005/06 Annual Report for 2004/05

Annual Report 2004/05 – the positive trend continues

The Board of Directors of Ambu has today approved the Annual Report 2004/05 for the financial year 1 October 2004 – 30 September 2005.

Highlights

 
In the past year, Ambu has focused on the development and marketing of new products and on increasing production efficiency. The launch of a number of new innovative products and intensified sales efforts have resulted in increasing revenue within Ambu's three most important business areas - Respiratory Care, Cardiology and Neurology.

In 2004/05 Ambu continued to transfer production to China and Malaysia, and approx. 45% of Ambu's products are now produced in Asia. Concurrently with the increase in production in Asia, FY 2004/05 saw major increases in production efficiency in Denmark. Strategy 2008 was adopted in May 2005, and the objectives set out therein continue to apply. 

• Revenue in FY 2004/05 totalled DKK 654m, corresponding to a 7.5% increase relative to the year-earlier level. Measured on the basis of unchanged exchange rates from 2003/04, revenue in 2004/05 would have totalled approx. DKK 663m. In local currencies, organic growth totalled 9.0%. Revenue is in line with the most recently announced outlook. 
• Revenue within the three most important business areas - Respiratory Care, Cardiology and Neurology - is up in all important markets. 
• EBITA amounted to DKK 68.0m against DKK 63.3m in 2003/04, representing an increase of 7.4%. If adjusted for other operating income/expenses, the increase is 15.2%. EBITA is in line with the most recently announced outlook. 
• Profit before tax totalled DKK 53.0m against the year-earlier level of DKK 45.7m, up 16.0%. Profit before tax is in line with the most recently announced outlook. 
• Cash flows from operating activities amounted to DKK 40.1m against DKK 54.8m last year. The fall is primarily attributable to the fact that the improved results were offset by an increased binding of liquidity – primarily in larger inventories and trade receivables. 
• The Board of Directors proposes that a dividend be declared of DKK 1 per share for FY 2004/05, amounting to 31% of the profit for the year. This is in accordance with the company’s dividend policy. 
• In FY 2005/06 consolidated revenue is expected to increase to about DKK 720m, corresponding to a growth rate of approx. 10%. These expectations are based on an average USD exchange rate of 600. 
• Against the backdrop of the expected growth in revenue, the product mix, continued improvements in production efficiency, but at the same time with prospects of rising sales and marketing costs, EBITA is expected to be in the range of DKK 90m in FY 2005/06. Profit before tax is forecast in the range of DKK 80m. 
• In FY 2005/06, cash flow from operating activities is expected to increase to approx. DKK 80m, while the free cash flow is expected to increase to approx. DKK 25m.
• In May 2005, Ambu presented its new strategy, Strategy 2008. The objectives set out in this document remain valid. The aim for 2008 is to generate revenue of approx. DKK 1bn, corresponding to organic growth of approx. 12% per year and an EBITA margin of approx. 16%.
  
  
  N.E. Nielsen
  Chairman of the Board
  
  K.E. Birk
  President & CEO
  
  Further information: K.E. Birk, tel. no. +45 7225 2000, e-mail keb@ambu.com
  
  

Conference call

Conference call and webcast (www.cse.dk) on this release will be held in Danish on Thursday, 1 December 2005, at 2 pm Danish time. To participate, please call tel. +45 70 26 50 40 five minutes before the start of the conference. The conference will subsequently be made available on the Ambu website.


The Annual Report 2004/05 is attached below in English and Danish. The annual report can also be downloaded from Ambu’s Investor Relations section.

The printed annual report will be sent to shareholders and others who have requested a copy in connection with the invitation to the ordinary general meeting.

Annual Report for 2004/05 (English)

Annual Report for 2004/05 (Danish)