ANNUAL REPORT 2022/23 (EARNINGS RELEASE) - Seite 2

2022/23 FULL-YEAR HIGHLIGHTS

Financial highlights
Last year’s comparative figures are presented in brackets

• Revenue for the financial year was DKK 4,775m (DKK 4,444m), representing a 7% (11%) reported growth. Organic growth was 7.6% (4%), driven by positive volume and mix effects.
• Endoscopy Solutions revenue increased organically by 15% (1%).
• Endoscopy Solutions excluding pulmonology increased by 38%, mainly driven by urology and ENT. Pulmonology posted 2% organic growth for the full year, driven by high comparables in the first half of the financial year, however, positively offset by accelerated growth in the second half of the year. The accelerated growth was due to the market normalising following Covid-19, as well as upgrades to Ambu’s pulmonology offering.
• Anaesthesia organic revenue declined by 2% (5%), and Patient Monitoring grew organically by 1% (13%). Both businesses were affected by high comparables in the 2021/22 financial year, combined with stockpiling last year.
• Revenue in North America increased organically by 12% (11%), Europe increased by 3% (1%), and Rest of World increased by 5% (-8%).
• Gross margin was 56.8% (57.5%). The positive sales mix effect, driven by higher-margin products in Endoscopy Solutions, was significantly offset by inflationary effects on Ambu’s input prices and overhead cost from scaling up the factory in Mexico.
• EBIT before special items was DKK 302m (DKK 122m), with an EBIT margin before special items of 6.3% (2.7%). The improvement was mainly driven by revenue growth and reduced operational costs in distribution and staff.
• Free cash flow before acquisitions of enterprises and technology totalled DKK 192m (DKK -458m), up DKK 650m from last year, corresponding to 4% of revenue (-10%).

Business highlights
Q4 highlights are presented in italic

• Portfolio advancements:
  • Compliance with the EU Medical Device Regulation (MDR) of Ambu’s full product portfolio
  • Endoscopy Systems: Global launch of the next-generation Ambu aView 2 Advance
  • Pulmonology: Global launch of the complete Ambu aScope 5 Broncho portfolio, re-launch of Ambu Viva-Sight 2 DLT and launch of Ambu VivaSight 2 SLT in Europe
  • Gastroenterology: Regulatory clearances of Ambu aScope Gastro Large in Europe and Ambu aScope Colon in North America
  • Urology: Regulatory clearance of Ambu aScope 5 Cysto HD in Europe
• Organisational advancements:
  • Launch of Ambu’s transformation program, focused on driving efficiencies, scalability and profitability
  • Executive Leadership Team strengthened with new Chief People & Culture Officer, Chief Operations Officer and Chief Technology Officer – and announcement of new Chief Financial Officer, Henrik Skak Bender, as of 1 January 2024.
  • Global roll-out of Ambu’s new ZOOM IN strategy and purpose, as well as launch of new Ambu values
• Sustainability advancements:
  • Launch of the world’s first endoscope made with bioplastics - Ambu aScope^TM Gastro Large
  • 2030 target set for emission reductions and submitted to the Science-Based Targets initiative (SBTi)