Climbing New Heights 2017 – Ambu’s four-year strategy
In 2009 to 2013, we have kept a steady hand on the wheel and
have navigated by a set of precise coordinates which have led Ambu safely through a landscape marred by financial crisis and markedly changed conditions in the global healthcare industry.
Ambu is now a well-known global player in a market and an industry which are seeing rapid change. This presents both challenges and opportunities.
More health for their money
Both the industry and customers are changing their behaviour, and healthcare policies in most countries are undergoing major changes due to budgetary pressures.
A growing and ageing population creates a greater need for the treatment of lifestyle diseases, for surgery and for cosmetic treatments. Consequently, healthcare authorities are focused on getting more health for their money. Hospitals are joining forces with large purchasing organisations with a view to realising economies of scale in relation to manufacturers.
This puts pressure on manufacturers, who must be able to demonstrate that not only do their products create value for patients, they also come with clear economic benefits.
Close customer relations
With a view to accommodating developments in the industry, Ambu to an even greater extent than previously focuses on direct contact with our customers in order to provide the best possible service and support. This calls for even more focus on efficient IT systems that can be integrated with the customer’s systems. It also entails a need for more clinical studies and data to underpin the value of our product solutions for customers.
We have also decided to restructure our sales force and establish dedicated sales teams in the USA – and in several other markets – to allow the individual salespeople to focus either on the anaesthesia market or the electrode market. This increases Ambu’s customer focus even more, and means that we are able to offer even better service to our customers at hospitals and rescue services.
We believe that hospitals and purchasing organisations will demand more and more innovative solutions which at the same time provide clear economic benefits. Ambu focuses on developing and selling single-use products which both improve patient safety, for example by reducing the risk of infection, and which also improve routines for doctors, nurses and paramedics, thereby helping to cut costs. Therefore, Ambu is in a favourable position and has considerable scope for realising further growth.
From GPS to peaks
The GPS Four strategy aimed at positioning Ambu; at expanding the organisation globally, investing in business-supporting systems and – through internal development as well as acquisitions and partnerships – at creating a product portfolio which was geared for the future healthcare market.
We are now lifting our eyes from the GPS to gaze at the five peaks which constitute the five most important goals in our Climbing New Heights strategy.
The Climbing New Heights strategy is born from an ambition of being an even more dominant player in the market for single-use products for hospitals and of making the most of our strong position within Patient Monitoring by delivering the best electrodes and neurology products in the world.
With a consistently strong focus on profitable growth and free cash flows, the foundation has been laid for further acquisitions of companies and product areas. We have set ambitious financial targets for the next four years, and we aim to transform Ambu yet again and thus realise new historical revenue and earnings targets.
Financial targets for the period up until 2017
• Revenue in the region of DKK 2bn
• An EBIT margin in the region of 17-18% in 2017
• Working capital to revenue ratio of approx. 20-25%
• Strong positive cash flow
Five ambitious peaks to climb
To achieve our targets for 2017, we have chosen the following overall business goals as our focus areas:
• Anaesthesia – That’s us
• From defence to offence in PMD
• Game changers
• People, people, people
• One more mountain