Ambu — Regulatory Filings 2017

Oct 4, 2017

Ambu
Ideas that work for life

Ambu launches ambitious strategy towards 2020

After exceeding the goals of the 2017 strategy, Ambu sets new goals and aims to double revenue in just three years. The key elements are a stable core business and disruptive single-use endoscopy technology.

In 2013, Ambu set ambitious goals. Under the heading "Climbing New Heights 2017", Ambu set out to reach a DKK 2 billion revenue, increase earnings significantly and create strong free cash flows. The topline goal was reached a year ahead of time and with the guidance for 2016/17, the completion continues to look positive. Ambu will introduce the next chapter in its business strategy at a capital market day today in London.

"We have been on a four-year journey that has transformed Ambu," says CEO Lars Marcher. "Today, 25% of our revenue come from products that we did not have before 2013. That, to me, is testament to the power of innovation. We have proven that our new solutions are relevant to hospitals around the globe. Now, we look towards 2020. It took 75 years to reach 1 billion. Four years to reach 2 billion. Now, we will try to reach 5 billion in three years. It's a stretch, but we aim for the Big Five."

Ambu's new strategy is called "Big Five 2020" and targets stable core business growing more than the underlying market and an acceleration of growth through rapid expansion in the markets for Ambu's single-use visualisation solutions and acquisitions of companies that support Ambu's strategic direction.

At the capital market day Ambu will provide a long term guidance towards 2020 as well as a short term outlook for the financial year 2017/18. In addition, Ambu repeats its guidance for 2016/17 as it was announced on August 23, 2017.

Long term guidance towards 2020

Towards 2020 Ambu plans to grow organically by 13-15% annually and expand the EBIT-margin by more than 5%-pts and thereby generate an EBIT margin in the level of 24-25% in 2020.

As for the free cash flows, Ambu expects to grow relative to revenue by accumulated 3%-pts to 18% in 2020 excluding impact from non-recurring investments in buildings.

Guidance for the financial year 2017/18 that began on October 1, 2017

For the financial year 2017/18, Ambu expects an organic growth rate in the level of 13%, an EBIT-margin in the interval 20-21% and a free cash flow generation in the interval DKK 275-300m equal to 11% of revenue. The free cash flow includes investments in buildings of DKK 75m that equals approx. 3% of revenue.

Guidance for the financial year 2016/17 that ended on September 30, 2017

The outlook for the financial year 2016/17 remains unchanged compared to the latest guidance provided on August 23, 2017. This is an organic growth of approx. 14%, an EBIT-margin of approx. 19% and free cash flows of approx. DKK 300m equal to 13% of revenue. The free cash flow includes investments in buildings of DKK 40 that equals approx. 2% of revenue.

Ambu
Company announcement no. 01 2017/18
4 October 2017

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Ambu*
Ideas that work for life

Contact and further information

Lars Marcher, President & CEO

Phone +45 5136 2490. E-mail: lm@ambu.com

About Ambu

Since 1937, breakthrough ideas have fuelled our work on bringing efficient healthcare solutions to life. This is what we create within our fields of excellence – Anaesthesia, Patient Monitoring & Diagnostics, and Emergency Care. Millions of patients and healthcare professionals worldwide depend on the functionality and performance of our products. We are dedicated to improve patient safety and determined to advance single-use devices. The manifestations of our efforts range from early inventions like the Ambu Bag™ resuscitator and the legendary BlueSensor™ electrodes to our newest landmark solutions like the aScope™ endoscope – the world's first single-use flexible video scope. Our commitment to bringing new ideas and superior service to our customers has made Ambu one of the most recognized medical companies in the world. Headquartered near Copenhagen in Denmark, Ambu employs approximately 2,500 people in Europe, North America and the Asia Pacific. For more information, please visit www.ambu.com.

Ambu

Company announcement no. 01 2017/18

4 October 2017