INTERIM REPORT FOR Q2 2022/23 AND THE HALF-YEAR

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.”

BRITT MEELBY JENSEN
Chief Executive Officer

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%