Ambu A/S : Q2 presentation file

Q2 2023/24

RESULTS

Investor presentation

DISCLAIMER

This presentation contains certain forward-looking statements, including but not limited to, the statements and expectations contained in the "Financial Update" section of this presentation. Statements herein, other than statements of historical fact, regarding our future results of operations, financial condition, cashflows, business strategy, plans and future objectives are forward-looking statements. Words such as "targets", "ambition", "believe", "expect", "aim", "intend", "plan", "seek", "will", "may", "should", "anticipate", "continue", "predict" or similar expressions, as well as other statements regarding matters that are not historical facts or regarding future operating or financial performance, constitute forward-looking statements.

These forward-looking statements reflect management's current views, plans and best assumptions with respect to certain future events and potential financial performance. By their very nature, forward-looking statements involve inherent risks and uncertainties. Ambu cautions that a number of important factors, including those described in this presentation, could cause actual results to differ materially from those set out in any forward-looking statements. Although Ambu believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct.

Unless required by law, Ambu is under no duty and undertakes no obligation to update or revise any forward-looking statements after the distribution of this presentation, whether as a result of new information, future events or otherwise.

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TABLE OF CONTENTS

1. Q2 2023/24 RESULTS
2. • Business update
   • Financial update
3. Q&A SESSION

Today's speakers

BRITT MEELBY	HENRIK SKAK
JENSEN	BENDER
CEO	CFO

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Q2 2023/24 RESULTS REPRESENT A CONTINUED STRONG MOMENTUM - PROFITABLE GROWTH PICKING UP

Total organic	Endoscopy organic	EBIT margin
revenue growth	revenue growth	before special items
15.5%	22.3%	14.2%

Free cash flow

128DKKm

Q2 2022/23: 4.2%

Q2 2022/23: 10.6%

Q2 2022/23: 3.9%

Q2 2022/23: 21 DKKm

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SOLID EXECUTION OF CUSTOMER-CENTRIC STRATEGY AND TRANSFORMATION

PROVIDE INNOVATIVE SOLUTIONS FOR TRUE CUSTOMERS NEEDS

• U.S. regulatory clearance (FDA) of aScope™ Gastro Large solution. European clearance (CE mark) was obtained in September 2023, the global commercialization is ongoing
• U.S. regulatory clearance (FDA) of aScope™ Duodeno 2, developed in collaboration with healthcare professionals for ERCP procedures
• Announcing Ambu Broncho Simulator, a software-based training platform developed with Artificial Intelligence for bronchoscopy training

BRING PEOPLE TOGETHER

IN ONE SHARED CULTURE

• Strengthened organisational setup and capabilities (incl. expansion of leadership), to improve ways of working
• Progress on strengthening Ambu's global mindset and efforts, building for greater customer impact, collaboration and success

EXCEL IN EXECUTION

ACROSS THE VALUE CHAIN

• Profitable growth strengthened, with 22.3% revenue growth in Endoscopy Solutions, and 7.0% growth in A & PM
• Continued solid free cash flow of DKK 128m, attributable to strong operational performance
• Continuous focus on pricing, cost and efficiency across the business leading solid profitability and cash flow generation in H1 2023/24

TAKE LEAPS TOWARDS

A SUSTAINABLE FUTURE

• With the FDA clearance of the aScope™ Gastro Large solution, the first of Ambu's fleet of endoscopes to be manufactured with bioplastics is ready to be launched in the U.S.
• Continued progress to implement bioplastics in Ambu's full fleet of single-use endoscopes by early 2024/25

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ENDOSCOPY SOLUTIONS IS THE MAIN GROWTH CONTRIBUTOR,

WITH GROWING SHARE OF TOTAL REVENUE

Q2 2023/24 Revenue development (DKKm)

Revenue split across business areas

Organic revenue change

FX impact

	+15.5%1
			1,367
		+22.3%1
	+7.0%1
Q2	Anaesthesia &	Endoscopy	Q2
22/23	Patient Monitoring	Solutions	23/24

Anaesthesia & Patient Monitoring Endoscopy solutions

44%41%

+3%-

56% pts 59%

Q2	Q2
22/23	23/24

1) Organic revenue growth

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ANAESTHESIA & PATIENT MONITORING GREW 7.0% IN Q2 2023/24 AND 4.2% IN H1

- POSITIVELY IMPACTED BY PRICE INITIATIVES

KEY HIGHLIGHTS

• Ambu's exit from ~40 markets is completed, with

the majority of revenue relating to the Anaesthesia &

Patient Monitoring business.

• During Q1 and Q2, Ambu has introduced significant

price increases to improve profitability in selected

low-margin areas.

• In general, the price increases are being

implemented gradually, and they are based on

better-than-expected outcomes of contract

negotiations. Ambu now expects positive growth

Anaesthesia & Patient Monitoring

(Reported revenue, DKKm)

+7.0%1

526 511 536 506 560

+4.2%1

1,041 1,066

for 2023/24.

1) Organic revenue growth

Q2	Q3	Q4	Q1	Q2	H1	H1
22/23	22/23	22/23	23/24	23/24	22/23	23/24

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ENDOSCOPY SOLUTIONS GREW 22.3% IN Q2 2023/24 AND 23.6% IN H1

- DRIVEN BY GROWTH ACROSS ALL ENDOSCOPY SEGMENTS

KEY HIGHLIGHTS

• Satisfactory growth in Endoscopy Solutions was

mainly driven by Ambu's established solutions in

the growing single-use market.

• Pulmonology was positively impacted by the flu

season.

• Ear-nose-throat (ENT) and urology continued solid

double-digit organic growth trajectory.

• As a result of continued strong momentum, Ambu

now estimates Endoscopy Solutions to grow +15%

Endoscopy Solutions

(Reported revenue, DKKm)

+22.3%1

663 684 723 748 807

+23.6%1

1,555

1,280

(from previously ~15%).

1) Organic revenue growth

Q2	Q3	Q4	Q1	Q2	H1	H1
22/23	22/23	22/23	23/24	23/24	22/23	23/24

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PULMONOLOGY GREW 13.9% IN Q2 AND 15.9% IN H1

KEY HIGHLIGHTS

• Pulmonology growth in H1 was driven by the

flu season and post Covid-19 market

normalisation, combined with low

comparables.

• aScope 4 Broncho, aScope 5 Broncho and

VivaSight 2 DLT all contributed positively to

the growth in Q2

• On January 1st , 2024, Ambu was granted

transitional-pass-through (TPT) on the

aScope 5 Broncho HD by the Center for

Medicare & Medicaid Services (CMS), and

Pulmonology

(Reported revenue, DKKm)

+13.9%1

378 373 390 398 427

+15.9%1

825

724

Ambu has received positive interest

towards this opportunity

1) Organic revenue growth

Q2	Q3	Q4	Q1	Q2	H1	H1
22/23	22/23	22/23	23/24	23/24	22/23	23/24

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PULMONOLOGY WAS POSITIVELY IMPACTED BY THE FLU SEASON IN AMBU'S FISCAL Q2 2023/24

Flu season above five-year average - and higher than Q2 last year

U.S. Weekly national summary, 2023-2024 and five previous seasons

	Ambu's Q1	Q2				18/19
	8%					19/20
ILI1	7%					20/21
6%					21/22
for	5%					22/23
visitsof					23/24
3%
	4%
%	2%
	1%
	0%
	40 42 44 46 48 50 52 2 4 6 8 10 12 14 16 18 20	22	24	26	28 30 32 34 36 38

Source: CDC weekly U.S. Influenza Surveillance Report, https://www.cdc.gov/flu/weekly/index.htm, as of 22 January 2023

Comments

• Flue surveillance data indicates a more severe flu season, compared to Q2 last year, positively impacting the pulmonology growth this quarter
• The flu season this quarter overall reached a level above a five-year average
• The pattern in Europe is similar

1 ILI : Influenza-like illness

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