Investor Relations

Ambu posts 4% organic revenue growth for the second quarter of 2022/23, in line with expectations. The quarter was driven by continued strong growth in urology and ENT, offset by pulmonology and Anaesthesia.

Financial guidance is maintained for the fiscal year 2022/23, with organic revenue growth at 5-8% and EBIT margin before special items at 3-5%.

“In the second quarter, Ambu delivers 4% organic revenue growth and 3.9% EBIT margin, in line with our expecta­tions. We delivered a slightly positive cash flow and strengthened our capital base through an equity raise of around 5% of the total share capital. This has enabled us to reduce leverage faster than planned, strengthening our position in an uncertain global environment, as well as allowing us to consider relevant growth opportunities. Furthermore, execution of our trans­formation pro­gram remains on track, and we have strengthened our offering in pul­monology with the approval of additional sizes of Ambu® aScope™ 5 Broncho and the re-launch of Ambu® VivaSight™ 2 DLT. With the progress this quarter, we remain well-positioned to address customer needs, for the better of health systems and patients worldwide,” says Chief Executive Officer, Britt Meelby Jensen.  

FINANCIAL HIGHLIGHTS FOR THE QUARTER
Last year’s comparative figures are presented in brackets.
 

• Revenue for Q2 increased organically by 4% (8%) to DKK 1,189m (DKK 1,122m), with reported growth of 6% (12%). Organic growth for the half-year was 4% (3%), with reported growth of 8% (7%).
• Revenue in North America increased organically by 8% (11%), while revenue growth in Europe was -1% (7%). Rest of World posted organic growth of 7% (-1%). Organic growth rates for the half-year were: North America 7% (14%), Europe -4% (-6%) and Rest of World 7% (-1%).
• Endoscopy Solutions revenue increased organically by 11% (3%) and by 7% (0%) for the half-year. In line with expectations, pulmonology posted -3% organic growth, mainly due to increased revenue from Omicron last year, however, bronchoscopy sales saw slightly positive growth, offset by lower revenue pertaining to the recall of Ambu® VivaSight™ 2 DLT. Endoscopy Solutions excluding pulmonology increased by 36%, driven by high double-digit growth in urology and ENT, combined.
• Anaesthesia sales declined by 11% (12%), due to reduction of backlog, combined with stock piling driven by geopolitical uncertainty, in Q2 last year. Contrarily, Patient Monitoring posted organic growth of 8% (14%). For the half-year, the combined organic growth of Anaesthesia and Patient Monitoring was 1% (6%).
• Gross margin for the quarter was 55.8% (57.7%), while the gross margin for the half-year was 57.1% (59.5%). The declining gross margin is driven by production costs, offset by product mix.
• EBIT before special items for the quarter was DKK 46m (DKK 47m), with an EBIT margin before special items of 3.9% (4.2%). EBIT for the half-year ended at DKK 114m (DKK 87m), with an EBIT margin of 4.9% (4.0%). The improved EBIT margin of 0.9% percentage points was driven by a reduced OPEX ratio of 3% percentage points and scale on EBIT margin from reported growth, partly offset by the gross margin decrease of 2.4% percentage points.
• Free cash flow before acquisitions totaled DKK 21m (DKK -136m) for the quarter and DKK-153m for the half-year, up DKK 145m compared to the same period last year. The improvement was driven by working capital and lower investments.
• The FY 2022/23 financial guidance stated on 15 November 2022 is maintained:
  • Organic revenue growth: 5-8%
  • EBIT margin before special items: 3-5%

PRODUCT AND PIPELINE UPDATES

• On 23 March 2023, Ambu re-launched its unique one-lung ventilation solution, the Ambu® VivaSightTM 2 DLT (double lumen tube). The solution re-enters the market with improved performance.
• On 28 March 2023, Ambu obtained European regulatory clearance (CE mark) of two new smaller-sized fifth-generation bronchoscopes. The company hereby has a complete fifth-generation bronchoscope portfolio for a wide array of patient needs in the bronchoscopy suite.

OTHER HIGHLIGHTS FROM Q2

• Ambu presented updated market potential assumptions:
  • Number of procedures Ambu covers today: ~1.7m procedures
  • Number of procedures with marketed solutions and near-term pipeline: ~23m procedures
  • Current value of the total single-use endoscopy market: DKK ~5bn
  • Expected value of the total single-use endoscopy market in five years: DKK 15-20bn
• From 23 March to 24 March 2023, Ambu strengthened its share capital base by selling 11,577,957 new B-shares and 250,000 existing treasury B-shares, corresponding to 5.3% of its B-share capital and approximately DKK 1.1bn.
• In April 2023, Ambu donated 110,000+ products (including resuscitators and face masks) to Turkey to support in the rebuilding of hospitals after the devastating earthquakes in February 2023.
• On 1 May 2023, Henrik Birk took on the role of Chief Operations Officer at Ambu. As an integral part of Ambu’s Executive Leadership Team, Henrik will drive execution and strategic direction across areas such as Manufacturing, Supply Chain, QA/RA and Procurement.

LONG-TERM FINANCIAL TARGETS

• Ambu specified its long-term financial targets at its Capital Markets Day on 21 March:
  • 5-year organic revenue CAGR (2022/23-2027/28): >10%
    • Endoscopy Solutions revenue growth: 15-20%
    • Anaesthesia and Patient Monitoring revenue growth (combined): 2-4%
  • EBIT margin before special items:
    • 2-year target: >10%
    • 5-year target: ~20% (2027/28)
  • Financial leverage: Less than 2.5x

Q2 2022/23 CONFERENCE CALL

A conference call is scheduled for 3 May 2023, at 09:00-10:00 (CEST). The conference is broadcast live via Ambu.com/webcastQ22023.

To ask questions during the Q&A session, please register prior to the call via Ambu.com//conferencecallQ22023register.

Upon registration, you will receive dedicated dial-in details via e-mail to access the call, including a passcode, a unique PIN, dial-in numbers and a calendar invitation.

The presentation can be downloaded from Ambu.com/presentations.

DOWNLOAD

You can download this company announcement (pdf).

Henrik Birk joins Ambu as new Chief Operations Officer and member of the Executive Leadership Team, bringing extensive experience from the life science industry.

Effective today, Ambu announces the appointment of Henrik Birk as Chief Operations Officer (COO). Having held various management positions in leading life science companies, such as Bavarian Nordic, Coloplast and ACD Pharmaceuti­cals, Henrik is a strong executive profile with extensive management experience.

With the appointment, Henrik will step into Ambu’s Executive Leadership Team, where he will focus on driving execution and strategic direction across areas such as manufacturing, supply chain, quality assurance, regulatory affairs and procurement.
 

“I am excited to welcome Henrik to Ambu as our new Chief Operations Officer. He is undoubtedly a strong addition to our Executive Leadership Team, and I am confident that his global leadership experience and extensive knowledge will benefit Ambu greatly as we deliver on our ZOOM IN strategy and the opportunities ahead.”

BRITT MEELBY JENSEN
Chief Executive Officer, Ambu

Strong operational leadership track-record
Throughout his career, Henrik has held a range of operational leadership roles within the healthcare industry. In particular, he brings experience from Bavarian Nordic, where he served as Chief Operating Officer as part of the executive team. Most recently, Henrik held the position as Chief Executive Officer of ACD Pharmaceuticals, a Norwegian-owned research and development company that develops pharmaceuticals and health products.

Henrik Birk takes over the position as COO at Ambu from Executive Vice President of Global Operations, Henrik Ankjær, who has decided to step down after 35 years with the company. Henrik Birk says:

“I look forward to joining Ambu and to helping shape the development and launch of new products that will make a real difference in the lives of patients and healthcare professionals alike. In addition, Ambu’s new ZOOM IN strategy presents a motivating opportunity for growth and innovation – truly an exciting time to join the company.”

HENRIK BIRK
Chief Operations Officer, Ambu

Download press release

Click here to download the press release.

Ambu A/S (“Ambu” or the “Company”) has in connection with its accelerated bookbuild offering today registered with the Danish Business Authority the capital increase of a nominal value of DKK 5,788,978.5 (11,577,957 B shares of DKK 0.50 each) (the “New B Shares”), representing 4.5% of the registered share capital prior to the capital increase.

The New B Shares are expected to be admitted to trading and official listing under the permanent ISIN code DK0060946788 on Nasdaq Copenhagen A/S on 29 March 2023.
Pursuant to section 32 of the Danish Capital Markets Act, Ambu hereby announces that after registration of the share capital increase, the share capital of Ambu amounts to nominally DKK 134,647,194.5 divided into 34,320,000 A shares and 234,974,389 B shares of DKK 0.50 each. The total number of voting rights in Ambu is 578,174,389.

Reference is made to company announcement no. 7 of 24 March 2023.

An updated version of the Articles of Association can be found at www.Ambu.com.

You can download the full company announcement here.

Ambu A/S
Baltorpbakken 13
2750 Ballerup
Denmark
Tel. +45 7225 2000
CVR no.: 63 64 49 19
www.Ambu.com

CONTACT INFORMATION

Investors
Nicolai Thomsen
Director, Investor Relations & Strategic Finance
nith@ambu.com
+45 2620 8047

Media
Tine Bjørn Schmidt
Head of Corporate Communications
tisc@ambu.com
+45 2264 0697

ABOUT AMBU

Since 1937, Ambu has been rethinking solutions, together with healthcare professionals, to save lives and improve patient care. Today, millions of patients and healthcare professionals worldwide depend on the efficiency, safety and performance of our single-use endoscopy, anaesthesia and patient monitoring solutions. Headquartered near Copenhagen in Denmark, Ambu employs around 4,500 people in Europe, North America, Latin America and Asia Pacific. For more information visit: www.Ambu.com.

DISCLAIMER

This announcement is intended for the sole purpose of providing information. Persons needing advice should consult an independent financial adviser. This announcement does not constitute an investment recommendation. The price of shares and any income expected from them may go down as well as up and investors may not get back the full amount invested upon disposal of the shares. Past performance is no guide to future performance.

This announcement has been prepared for the purposes of complying with applicable law and regulation in Denmark and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws and regulations of any jurisdiction outside Denmark.

This announcement is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia, the “United States”), Canada, Japan, South Africa, Hong Kong or Australia, except as permitted by applicable law, or any other jurisdiction in which such publication or distribution is unlawful.

This announcement does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States, Canada, Japan, South Africa, Hong Kong, Australia or any other jurisdiction in which such offers or sales are unlawful (the “Excluded Territories”). Any failure to comply with this may constitute a violation of US, Canadian, Japanese, South African, Hong Kong or Australian securities laws or the securities laws of other states as the case may be.

The securities referred to in this announcement have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or under the securities laws of any state of the United States, and may not be offered, sold, resold or delivered, directly or indirectly, in or into the United States absent registration except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act. Subject to certain limited exceptions, the securities referred to in this announcement are being offered and sold only outside the United States. The securities

offered in connection with the offering have not been and will not be registered under any applicable securities laws of any state, province, territory, county or jurisdiction of the Excluded Territories. Accordingly, such securities may not be offered, sold, resold, taken up, exercised, renounced, transferred, delivered or distributed, directly or indirectly, in or into the Excluded Territories or any other jurisdiction if to do so would constitute a violation of the relevant laws of, or require registration of such securities in, the relevant jurisdiction. There will be no public offer of securities in the United States or elsewhere.

This announcement is not a prospectus and has been prepared on the basis that any offers of securities referred to herein in any member state of the European Economic Area will be made pursuant to an exemption under Regulation (EU) 2017/1129 on prospectuses (the “Prospectus Regulation”). No prospectus will be made available in connection with the matters contained in this announcement. The information set forth in this announcement is only being distributed to, and directed at, persons in member states of the European Economic Area who are qualified investors (“Qualified Investors”) within the meaning of the Prospectus Regulation.

This announcement and any offer subsequently made is, and will be, addressed to and directed only at persons, in the United Kingdom, who are (a) both "qualified investors" within the meaning of the UK version of the EU Prospectus Regulation (2017/1129/ EU) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018 and either (i) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) who are high net worth entities falling within Article 49 of the Order; or (b) other persons to whom it may otherwise lawfully be communicated (all such persons under (a) and (b) together being referred to as "Relevant Persons"). Any investment or investment activity to which this document relates is available in the United Kingdom only to Relevant Persons.

This information must not be acted or relied on by, and any investment activity to which this information relates is not available to and may not be engaged with, persons (i) in any member state of the European Economic Area who are not Qualified Investors, and (ii) in the United Kingdom who are not Relevant Persons.

No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Ambu or by any of its affiliates or agents, or Danske Bank A/S, J.P. Morgan SE and Nordea Danmark, filial af Nordea Bank Abp, Finland, as to or in relation to, the accuracy, completeness or sufficiency of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers in connection with the company's the new shares and/or the private placement referred to herein, and any liability therefore is expressly disclaimed.

Danske Bank A/S, J.P. Morgan SE and Nordea Danmark, filial af Nordea Bank Abp, Finland are acting exclusively for Ambu and no-one else in connection with the Offering. They will not regard any other person as their respective clients in relation to the Offering and will not be responsible to anyone other than Ambu for providing the protections afforded to their respective clients, nor for providing advice in relation to the Offering, the contents of this announcement or any transaction, arrangement or other matter referred to herein.