Jon Sigurdsson, President & CEO

Transcription

1 Ossur 2005 Overview Jon Sigurdsson, President & CEO

2 Forward-looking statements This presentation contains forward-looking statements as the terms is defined in the US Private Securities Litigation Act of These statements reflect the Management s current views with respect to certain future events and financial performance. Although the statements are based upon estimates Management believes to be reasonable, there is no assurance that these statements will be achieved. Statements containing the financial outlook for 2006 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 uncertainties may include unexpected developments in the international currency exchange and securities markets, 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 i of competing products within Össur s core areas, exposure to product liability and other lawsuits, changes in reimbursement rules and governmental laws.

3 Ossur Milestones 2005 Profitable year Financial goals achieved Bionic technology by Ossur deserved attention Well placed acquisitions Comperhensive product lines Broader group of customers Ossur - becoming a leader in the Orthopaedic Industry 3

4 Financial Goals Create shareholder value 1. EPS for the period by increasing earnings per share by CAGR 34% 15% each year on average 2. Expand the Company s business to USD 180 million in sales by the end of Ensure profitable operation by an EBITDA margin of 20% months period ending 30 June 2005 total t sales USD 196 million 3. Full year % % The Company s Goals for 2010 Expand the Company s business to USD 750 million in sales Long-term EBITDA 23% 4

5 Bionic Technology by Ossur Rheo Knee launched towards year-end 2004 First Bionic product - $ 3.5 million in sales Power Knee launch in 2006 Has already received awards for outstanding technology Proprio Foot launch in 2006 Further strenghtens Ossur as industry leader 5

6 Acquisition History 6

7 Integration Processes Integration planned along with the acquisition Integration projects and groups ready as of day one Branding transition and co-branding Coordination of sales forces Coordination of marketing Coordination of administration Coordination of manufacturing & operations Integration period months 7

8 Resulting in the Ossur Brand

9 Product Portfolio Prosthetics Bracing & Support Ankle/ Knees Liners Locks & Ankle/ Knee Upper Casting/ Neck/Spine Foot Adapters Foot Extremity Splints Pre-Acquisition Post-Acquisition 9

10 Product Portfolio ORTHOPEDICS PROSTHETICS BRACING & SUPPORT BIONICS Rheo Knee Power Knee Proprio Foot KNEE Rheo Knee Power Knee Total Knee Mauch FOOT & ANKLE Proprio Fool Flex Foot Foot covers & cosmesis LINERS & SOCKETS Iceross Icex LOOKS & ADAPTERS Icelock Standard Adapters PARTNERSHIP SERVICES Ossur Academy Ossur Business Solutions Empower DME PRO ANKLE & FOOT Ankle Braces Active Uploading Walkers Short leg Walkers AFO Orthoses Padding UPPER EXTREMITY Arm Slinge Elbow Supports Wrist Braces Thumb Splints CASTING & SPLINTS Tape Splints Accessoried KNEE OA Braces Ligament Braces Rehab Braces Patellofemoral Braces Pediatric Braces Sports Injury Immobilizers Sleeves & Covers NECK/SPINE Miami J Halo Cervical Collars Philly Collars BAck Supports Papoose Level 1 Trauma Pediatric 10

11 Diverse Specialists Groups Ossur Sales Force Private Label Distributors O&P Workshops Hospitals Rheumatologists Physical Therapists Podiatrists Athletic Trainers Orthopedic Surgeons The number of Ossur s potential clients in the US have increased from to

12 Ossur Today Ossur is a global Orthopaedics company specializing in products and services in the areas of prosthetics ti and braces and supports, utilizing the bionic technology Next Step: move into rehabilitation Ossur is in the business of improved mobility Offering patients a life without limitations 12

13 Locations USA, California Innovation Sports UK - IMP Holdings Sales, Distribution, Manufacturing

14 Further Oportunities Leverage on high-tech platform Manufacturing cost leadership Consolidate the Orthopedics market Move into rehabilitation 14

15 Ossur Financial Highlights 2005 Hjorleifur Palsson, CFO

16 Agenda Financial highlights: Year 2005 Q4 2005

17 Financial Highlights 2005 Net sales 161 million USD, up 29% from 2004 Organic sales growth 9% GPM 61% (excluding inventory mark up) EBITDA 20% (excluding one time expenses) Amortization pressing profit ratios 2%

18 Financial Highlights 2005 USD % Change Net sales 160, , % Gross profit 94,391 74, % Operational profit 16,525 20,374-19% Net profit 11,688 15,227-23% EBITDA 25,832 25,045 +3% EPS (US Cents) % Cash generated by operations 24,986 19, % 18

19 Financial Highlights 2005 Excluding restructuring expenses, inventory step up and one time other income USD % Change Net sales 160, , % Gross profit 97,668 74, % Operational profit 23,221 20, % Net profit 15, ,227 +2% EBITDA 32,528 25, % EPS (US Cents) % Cash generated by operations 24,986 19, % 19

20 Key Ratios 2004 / % 160, ,4 +30% USD millio ons ,8 97, ,4 +14% 23,2 15,2 +2% 15,6 25,0 +30% 32,5 0 Net sales Gross profit Op. profit Net profit EBITDA Note: Excluding restructuring expenses, inventory step up and one time other income in

21 Income Statement 2005 by Entities Excluding restructuring expenses, inventory step up and one time other income USD 000 Össur Royce IMP Total Net sales 132,934 26,700 1, ,729 Gross profit 80,524 16, ,668 Operational profit 20,512 2, , EBITDA 25,649 6, ,528 GPM % 61% 62% 49% 61% R&D % 8% 8% 4% 8% SG&A % 38% 45% 51% 39% Operational profit % 15% 10% -6% 14% EBITDA % 19% 26% 1% 20% 21

22 Net Sales and Growth % 48% % USD millio ons % 94 16% 32% 29% 30% 20% Sales grow wth 40 10% % 22

23 Sales by Business Segments Other 2% Other 1% Orthotic 24% Orthotic 35% Prosthetic 74% Prosthetic 64% 23

24 Sales by Markets USD %G Growth %G Growth USD LCY North America 93,264 63,704 46% 46% Europe 37,370 32,620 15% 14% Nordic (incl. Domestic) 17,874 17,013 5% 5% Other International markets 11,674 8,158 43% 43% Total continuing operations 160, ,495 32% 31% Discontinued operations 547 2,904 Ttl Total 160, ,399 29% 24

25 Sales by Markets Nordic 14% International 7% Nordic 11% International 7% Europe 26% North America 53% Europe 23% North America 59% 25

26 Key Ratios Excluding restructuring expenses, inventory step up and one time other income 57% 60% 61% % of sales 5% 10% 12% 20% 20% 10% Gross profit S&M R&D G&A Net profit EBITDA % -8% -10% -19% -22% -22% -16% -15% -24% 26

27 Expensed R&D Investment 14 12% % 10% USD million ns % % 73% 7.3% % 8% 6% 4% % of sales 2 2% % 27

28 Cash Flow from Operations % 15.6% % % USD millions % % % 15.0% % of sales % % % 28

29 Balance Sheet USD % Change Fixed assets 325,873 67, % Current assets 82,113 40, % Total Assets 407, , % Stockholders equity 152,829 54, % Long-term liabilities 215,361 35, % Current liabilities 39,796 18, % Total equity and liabilities 407, , % Current ratio Equity ratio 37% 50% 29

30 Top 15 Shareholders Nominal value % William Demant Invest A/S Investment Fund ,88 Eyrir Invest ehf Investment Fund ,60 Mallard Holding S.A. Founder ,59 Vik Investment Holding S.a.r.L. President & CEO ,35 Ai Arion safnreikningur i Custody Bank ,16 Lífeyrissjóður verslunarmanna Pension Fund ,46 Gildi -lífeyrissjóður Pension Fund ,64 FL Investment ehf Investment Fund ,23 Fidelity Funds-Nordic Fund Investment Fund ,02 Mycenaean Holding S.a.r.L. VP of R&D ,92 Landsbanki Íslands hf,aðalstöðv Bank ,82 Sameinaði lífeyrissjóðurinn Pension Fund ,72 Ker Holding S.a.r.L. VP of S&M ,55 Lífeyrissjóður Austurlands Pension Fund ,50 Lífeyrissjóður Vestfirðinga Pension Fund ,48 Top 15 Shareholders ,92 Others ( 3.141) ,08 Total ,00

31 Financial Highlights Q Royce included the full quarter IMP Holding included from December 1 st 2005 Total sales 49.6 million USD, up 59% from 2004 Organic sales growth 8% EBITDA 18% excl. one time expenses Amortization pressing profit ratios 5%

32 Financial Highlights Q4 USD 000 Q Q % Change Net sales 49,590 31, % Gross profit 29,223 18, % Operational profit 3,938 4,695-16% Net profit 3,088 3,426-10% EBITDA 7,931 5, % EPS Q4 (US Cents) % Cash generated by operations 8,405 5, % Note: Including one time expenses of 1 million USD in Q4 2005, 0.7 million USD net of tax. 32

33 Financial Highlights Q4 Excluding restructuring expenses and inventory step up USD 000 Q Q % Change Net sales 49,590 31, % Gross profit 29,878 18, % Operational profit 4,897 4,695 +4% Net profit 3,789 3, % EBITDA 8,890 5, % EPS Q4 (US Cents) % Cash generated by operations 8,405 5, % 33

34 Income Statement Q by Entities Excluding restructuring expenses and inventory step up USD 000 Össur Royce IMP Total Net sales 31,621 16,874 1,095 49,590 Gross profit 18,852 10, ,878 Operational profit 3,225 1, ,897 EBITDA 4,606 4, ,890 GPM % 60% 62% 49% 60% R&D % 8% 8% 4% 8% SG&A % 42% 46% 51% 42% Operational profit % 10% 10% -6% 10% EBITDA % 15% 25% 1% 18% 34

35 EBITDA Ratio 25% % of sale es 11% 17% 16% 18% 16% 14% 12% 10% 23% 22% 22% 21% 20% 20% 19% 19% 18% 18% Q Q Q Q Q Q Q % Q Q Q Q Q Q Q Q Q Note: Excluding unusual other income, restructuring expenses, inventory step up in

36 Sales by Markets Q USD 000 Q Q %G Growth %G Growth USD LCY North America 32,161 15, % 108% Europe 10,151 8,116 25% 32% Nordic (incl. Domestic) 4,460 4,713-5% 7% Other International markets 2,818 2,163 30% 30% Total continuing operations 49,590 30,461 63% 66% Discontinued operations 821 Ttl Total 49,590 31,282 59% 36

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