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Ambu has had a good start to the year with organic growth of 14%, an almost 4 percentage point improvement in the EBIT margin to 16.5% and free cash flows of DKK 36m. Our outlook on earnings and free cash flows for the year are raised.

"We've had a good start to the year and to the first quarter of our 'Big Five 2020' strategy with 14% organic growth, which testifies to a continued strong momentum in Ambu's business. Significant economies of scale impacted our EBIT margin which increased by almost 4 percentage points and 40% improvement of our earnings compared to same period last year. With that in mind, we raise our EBIT margin and free cash flow outlook for the full financial year," says President and CEO Lars Marcher.

Highlights for Q1 2017/18

• Revenue of DKK 553m was posted, representing growth of 14% in local currencies and 8% in Danish kroner. The dif-ference in growth is due to an 8% drop in the USD/DKK exchange rate.
• When measured in local currencies, Anaesthesia contributed growth of 0%, Visualisation contributed 58%, and PMD (Patient Monitoring & Diagnostics) delivered growth of 4%. Anaesthesia received a large number of one-off orders in Q1 2016/17, which have resulted in timing differences. Adjusted for this, growth in Anaesthesia was 4%.
• When measured in local currencies, Europe contributed growth of 12%, North America 16% and the Rest of the world 11%.
• Sales of endoscopes reached 104,000 units, up 76% relative to Q1 last year. On 2 January, production of aScopes started up in our new factory in Malaysia. Our available capacity has thereby been increased to up to one million units per year.
• The gross margin was 58.0% (53.7%), equating to an improvement of 4.3 percentage points.
• Total capacity costs were DKK 230m (DKK 210m), corresponding to a 10% increase including operating expenses in Invendo Medical as well as an increase in the sales force in the USA.
• EBIT was DKK 91m (DKK 65m) with an EBIT margin of 16.5% (12.7%), corresponding to a 40% improvement.
• Net working capital relative to revenue improved and now equates to 19% (23%).
• Free cash flows before acquisitions of enterprises were DKK 36m (DKK 43m).
• The acquisition of Invendo Medical GmbH was completed on 25 October 2017, and the integration with Ambu is pro-gressing as planned. On 9 January, the first Invendo product under Ambu's ownership received FDA approval.
• In Q1, Ambu carried out a capital increase of 3% of the share capital.
• Outlook for 2017/18 is raised. Organic growth in local currencies is still expected to be approx. 13%, while our EBIT margin outlook is raised from "approx. 20%" to "the interval 20-21%", and our outlook for free cash flows is raised from "approx. DKK 275m" to "approx. DKK 300m".

A conference call is being held today, 31 January 2018, at 11.00 (CET). Please call the following number five minutes before the start of the conference: +45 3544 5580. The conference can be followed via www.ambu.com/webcastQ12018 and is held in English. The presentation can be downloaded immediately before the conference call via the same link.

Contact

Lars Marcher, President & CEO, tel. +45 5136 2490, email: lm@ambu.com

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