ÖSSUR COMPANY PROFILE. Sveinn Sölvason, CFO

Transcription

1 ÖSSUR COMPANY PROFILE Sveinn Sölvason, CFO Arion Banki 8 April 2015

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 2015 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. April

3 ÖSSUR TODAY WHO WE ARE Global leader in non-invasive orthopaedics Second largest player in bracing and supports and prosthetics worldwide Growing through innovation and strategic acquisitions Employees: ~ 2,300 Sales: ~ > $500m Market Cap. 1 : ~ $1,311m Listed on Nasdaq Copenhagen 1 As of 31 December 2014 April

4 Prosthetics Bracing & supports GLOBAL PROVIDER OF HEALTHCARE SOLUTIONS USER PROFILE IMPROVING PEOPLE S MOBILITY Injury Solutions People recovering from fractures, ligament injuries or need a post operative treatment Products stabilizing joints OA People living with osteoarthritis Non surgical treatment by unloading affected joint with braces Mechanical products Bionic products People living with lower extremity amputation Complete product offering for lower extremity prosthetics Advanced microprocessor controlled feet and knees April

5 Prosthetics Bracing & supports ÖSSUR MARKETS & TRENDS SALES 1 MARKET DYNAMICS MARKET 58% Aging population Prevalence of Osteoarthritis Demand for quality of life Reimbursement # 2 globally Market size: $ 2,700-3,000m Expected market growth: 3-4% Fragmented market Aging population # 2 globally 42% Technological developments Market size: $ 1,000-1,200m Vascular diseases & diabetes Expected market growth: 3% Reimbursement Consolidated market 1 Based on total sales split in 2014 April

6 $ million GROWTH STORY Prosthetics consolidation Prosthetics integration and restructuring B&S consolidation B&S integration and restructuring Forward integration % % 400 CAGR: 25% 30% % % % Sales EBITDA % margin April

7 GLOBAL OPERATIONS WELL DIVERSIFIED Operations in 18 countries - 2,300 employees Headquarters Reykjavik, Iceland Össur Americas California, USA Össur EMEA Eindhoven, Netherlands Össur Asia Shanghai, China April

8 $ million BRACING & SUPPORTS OVERVIEW Sales Comprehensive product offering % 15% 3% 12% 18% 0% -20% Multiple sales channels % -60% Focus on high end innovative products 50-80% Rationalization of product portfolio Sales Sales growth -100% Indication based innovation Creating value for individuals and societies Total Knee Replacement Unloader One Knee Brace $ 25,000-40,000 $ ~1,000 April

9 $ million PROSTHETICS OVERVIEW Sales High end product offering Focus on lower extremity prosthetics Key customers O&P facilities Technology trade-up Expanding in the value chain % 8% 4% 4% 6% % 0% -10% -20% -30% -40% -50% -60% Growing in selected emerging markets Sales Sales growth Providing high value services for customers Technology trade-up $ 70 $ 2,000 $ 9,000 $ 36,000 April

10 $ million OPERATIONS Manufacturing: Significant consolidation in recent years Main manufacturing locations Prosthetics Production Reykjavik, Iceland 3 main manufacturing locations Operating costs: B&S Production Tijuana, Mexico B&S Production China Cost reduction initiatives successfully executed in 2013 Stable investment in R&D and S&M efforts G&A scalable EBITDA 21% 18% 18% 17% % April

11 $ million $ million FINANCIAL HIGHLIGHTS Stable organic growth Sales Increase in EBITDA margin: FY 2014: 20% (2013:18%) Healthy balance sheet Strong cash generation Free Cash Flow Return of capital to shareholders: Annual dividend payments Share buybacks to manage capital structure April

12 Q&A April

13