Össur Kauphallardagar Arion banka. Sveinn Sölvason June 2017

Transcription

1 Össur Kauphallardagar Arion banka Sveinn Sölvason June 2017

2 Forward looking statements This presentation contains forward-looking statements, which reflect the Management s current views with respect to certain future events and financial performance. Although the statements are based upon estimates the Management believes to be reasonable, there is no assurance that these statements will be achieved. Statements containing the financial outlook for 2017 and the following years naturally involve risks and uncertainties, and consequently actual results will differ, and may differ materially, from those projected or implied in the forward-looking statements. The risks and uncertainties may include unexpected developments in the international currency exchange and securities markets, financing, market driven price decreases for Össur s products, delay or failure of development products, production problems and unexpected cost increases, development of new technologies by competitors, the introduction of competing products within Össur s core areas, exposure to product liability and other lawsuits, changes in reimbursement rules and governmental laws. 1

3 USD million Össur - a global leader in non-invasive orthopaedics Global medical device company More than USD 500 million in sales Over 2,800 employees across the globe CEO is Jon Sigurdsson since 1996 Sales % 300 Innovation driven ~4-5% of sales invested in R&D Over 1,200 patents Open innovation culture Profitable growth Organic and acquisitive sales growth ~4% average historical 5Y organic growth 19% EBITDA (adj.) margin in 2016 EBITDA (adj.) % Shareholders Listed on Nasdaq in Copenhagen in 2009 Market capitalization of ~2 billion USD Majority owner William Demant Invest A/S

4 The path to value creation lies in our business model Overview Segments Products Markets Strategic priorities Growth Innovation Efficiency Value creation Growth Profitability Cash flow 3

5 Our mission is to improve people s mobility Bracing & supports Average LCY growth 8% Prosthetics Average LCY growth 10% 18% 17% 19% 54% ~USD 280m 3% 12% 5% 2% 46% ~USD 240m 4% 6% 6% Sub-segment User profile Improving mobility Sub-segment User profile Improving mobility Injury solutions People recovering from fractures, ligament injuries or need a post operative treatment Products stabilizing joints Mechanical products People living with lower extremity amputation Complete product offering for lower extremity prosthetics OA People living with osteoarthritis Non surgical treatment by unloading affected joint with braces Bionic products People living with lower and upper extremity amputation Advanced microprocessor controlled feet, knees, hands and fingers 4

6 Össur is the second largest player in both markets Bracing & supports Prosthetics Market size USD billion USD billion Market share Market growth Primary sales channels 6-8% #2 3-5% Hospitals O&P* Surgery centers 20-21% #2 3-5% O&P* * Orthotic & Prosthetic clinics 5

7 With our well diversified global operations we are able to serve our customers locally 48% Americas California USA 5Y avg organic growth: +1% HQ Reykjavik Iceland EMEA Eindhoven Netherlands 45% APAC Shanghai China 5Y avg organic growth: +10% 7% 5Y avg organic growth: +6% % Sales split between markets 6

8 We create value for individuals and healthcare systems by providing innovative medical products and services High-end innovative products Indication based innovation Technology trade-up Geograpic expansion Growth Acquisitions Expanding in the value chain High value services 7

9 We focus on innovation through technology upgrades so we can improve people s mobility Prosthetics MIND-CONTROLLED BIONIC PROSTHETICS $70 2,000 9,000 36,000 Bracing & supports $ ,500 Manufacturer sales price indicators in USD 8

10 We continuously seek out ways to optimize our operations with the objective to increase efficiency in our global service offering Global production footprint consolidated into three major sites Gross profit Prosthetics Product mix improvements Consolidated scalable platform Growing Mexico platform Manufacturing efficiency and continuous improvement culture Operating expenses B&S premium B&S value (outsourced) Economies of scale Shared service center in Poland Global process optimizations Efficient and effective post-merger integrations 9

11 USD million 5Y average historical organic sales growth of 4% Sales and organic sales growth 7%* Guidance for % 2% 5% 5% 4% 7-8% LCY growth 4-5% organic growth Technology trade-up Product offering Geography Acquisitions FX * Compound annual growth rate from 2012 to 2016 in USD terms 10

12 USD million Margin improvements through efficiency but with temporary pressure from acquisitions and FX Adjusted EBITDA and EBITDA margin 9%* 20% 20% 19% Guidance for % EBITDA margin (adj.) 18% 18% Efficiency programs Scalability Acquisitions FX * Compound annual growth rate from 2012 to 2016 in USD terms 11

13 USD million USD million Össur has a history of strong cash flow generation FCF and as % of EBIT (adj.) % 75% % 68 53% 55% CAPEX ~4% Strong cash generation Net interest-bearing debt (NIBD) and NIBD to EBITDA x 1.2x 1.3x 0.9x x x 1.5x 1.0x 0.5x 0.0x TARGET 1-2x NIBD to EBITDA 12

14 USD million Dividend per share in DKK Össur initiated a share buy-back program in 2013 and is currently paying out moderate dividends of 0.12 DKK per share Dividends and buybacks Shareholder distribution as of end U.K., 5% Others, 5% Iceland, 35% Denmark, 55% Dividends Buybacks Dividend per share in DKK Total payouts amount to ~USD 100 million since 2013, which was the first dividend year William Demant Invest A/S was a major shareholder with a holding of 42.1% 13

15 Our value creation GROWTH We create value for individuals and healthcare systems by providing innovative medical products and services INNOVATION We focus on innovation through technology upgrades so we can improve people s mobility EFFICIENCY We continuously seek out ways to optimize our operations to increase efficiency 14

16 Further information Please visit our website: Or contact Össur s Investor Relations David Hreidarsson dohreidarsson@ossur.com General inquires IR@ossur.com

17