ANNUAL REPORT 2022/23 (EARNINGS RELEASE) - Seite 3

In addition to the Annual Report, which includes Ambu’s Sustainability Report, Ambu also publishes its Remuneration Report and a Corporate Governance Report for 2022/23 today. All reports can be accessed on Ambu.com.

OUTLOOK FOR FY 2023/24
In 2022/23, Ambu took significant steps in executing on its transformation program to deliver profitable growth – the key objective of Ambu’s ZOOM IN strategy. The company focused on stabilising its financial situation, thus ending the 2022/23 financial year with delivering financial targets slightly above expectations. Similarly, Ambu’s free cash flow was significantly improved, ending the year with a positive cash flow.

Market conditions
During 2022/23, Ambu witnessed increased geopolitical uncertainty and a volatile macroenvironment, affecting the global economy and resulting in inflationary effects on raw materials, energy prices and logistics costs. This is a tendency that the company expects to continue throughout 2023/24. Despite this, Ambu expects the single-use endoscopy market to continue to grow in 2023/24, driven by hospital systems’ and clinics’ growing needs for workflow efficiencies and improved economics, as well as the increased awareness of infection control and the strong clinical performance that single-use solutions bring to healthcare professionals and patients.

Organic revenue growth
Ambu’s Endoscopy Solutions business remains the key growth engine for the company, and it makes up 56% of the company’s total revenue in 2022/23. In 2023/24, this business area is expected to grow 15% organically, with the ENT and urology segments expected to continue their double-digit organic growth trajectory. Similarly, due to Ambu’s strengthened pulmonology portfolio, as well as the company’s expanded gastroenterology (GI) portfolio, both the pulmonology and GI businesses are expected to contribute positively towards a solid organic revenue growth in 2023/24. Also, with the objective of increasing long-term profitability in the Anaesthesia & Patient Monitoring business areas, Ambu will continue to drive the strategic initiatives launched in 2022/23, related to addressing selected low-margin areas with sizable price increases and exiting 40 countries to reduce geographical complexity.