annual-report.ossur.comEmbla Medical 2023 Annual Report

Investor Relations Sustainability Annual Report Investor Relations home Please note that the Annual General Meeting of Össur hf. held on 13 March 2024, approved the name change of the Össur hf. parent organization to Embla Medical hf. Introduction Performance Highlights Growth’27 Strategy Outlook Download Report Introduction Letter from the CEO Patients Are The Driving Force As we reflect on the past year, we can be proud of our progress and unwavering commitment to improving people‘s mobility. Our collective efforts have seen us realize a strong financial performance underpinned by positive momentum in all regions and business segments. We held our Capital Markets Day in Copenhagen in March 2023 and proudly introduced our Growth’27 strategy and ambition of 7-10% average local currency growth over the Growth’27 period of 2023-2027. We also began reporting according to our new sales segmentation; Prosthetics, Bracing & Supports and Patient Care. Central to our Growth’27 strategy is our commitment to reach more people with our mobility solutions. We will drive accelerated organic growth by focusing on Patient Reach, Innovative Solutions and O&P Value Creation, in addition to pursuing Bracing Simplified. These pillars are further enabled by sustainability, scalability and our talented people. Our strategy to provide more patients access to high-end solutions is evident in our bionic sales in 2023 being among the highest ratios of Prosthetics sales we have ever had. The growing ratio is driven by our recently launched Power Knee™ in addition to a strong performance in other bionic products. This achievement fuels our commitment to the ongoing development of our innovative bionic solutions. During the year we launched a new Proprio Foot ® , a proven bionic ankle which is now waterproof with additional functional benefits contributing to a better quality of life for lower limb amputees. Read Letter from President & CEO Introduction 2023 in Brief Össur is a leading global provider of innovative mobility solutions with focus on improving people’s mobility through the delivery of Prosthetics, Bracing & Supports and accompanying Patient Care. Helping people live a Life Without Limitations ® is why we exist as a company. Strategic Progress We introduced our new strategy, Growth’27, in March. Our growth drivers delivered good results and we remain confident in our strategic choices. Innovative Solutions 13% organic sales growth in Prosthetics O&P Value Creation 20% increase of prosthetics sales via the Össur Portal Patient Reach 8% organic sales growth in Patient Care Bracing Simplified 3% organic sales growth in Bracing & Supports Sustainability Progress Sustainability is embedded into our strategy and throughout our organization. In 2023, we continued our ambitious climate actions and established compliance status to the upcoming EU Corporate Sustainability Reporting Directive (CSRD). Science-Based Targets Submitted emissions reduction targets to the Science Based Targets initiative for validation Towards CSRD Compliance Completed Double Materiality Assessment and Gap Analysis on CSRD compliance Suppliers Sustainability Survey Supplier Survey on Environmental Sustainability completed Responsible for Tomorrow Launched a Responsible for Tomorrow® program to strength our sustainability governance Performance Highlights Performance in 2023 USD million FY 2023 FY 2022 FY Guidance in 2024 Net sales 786 719 Sales growth, organic 9% 4% 5-8% Gross profit margin 62% 61% EBITDA 139 114 EBITDA margin 18% 16% EBITDA, before special items 139 128 EBITDA margin, before special items 18% 18% 19-20% CAPEX as % of sales 5.4% 4% 3-4% Effective tax rate 23% 23% 23-24% USD million Net sales Sales growth, organic Gross profit margin EBITDA EBITDA margin EBITDA, before special items EBITDA margin, before special items CAPEX as % of sales Effective tax rate Our Business Segments USD 786 million Sales in 2023 by Business Segment Regional Overview & Financial Highlights Americas 49% of sales USD 384 million Organic growth: 8% FTEs: ~1,500 EMEA 43% of sales USD 336 million Organic growth: 10% FTEs: ~1,600 APAC 8% of sales USD 65 million Organic growth: 10% FTEs: ~200 Organic growth 9% EBITDA margin 18% Net profit growth 36% NIBD/EBTIDA 2.8x HQ FTEs: ~700 Download the full financial statements Download PDF Sustainability Highlights 40% Female in management positions 95% Electricity from renewable sources 1.6 Incident rate per 100 FTEs Gender ratio 50% Male, 50% Female Code of conduct training 74% Science-based targets status Submitted At Össur everyone is responsible for sustainability, and we are proud to have more than 4,000 employees around the world contributing to making a positive impact. We have ambitious goals and are committed to the well-being of our planet and future generations. Margrét Lára Fridriksdóttir EVP of People, Strategy & Sustainability Growth’27 Strategy Our Strategy Growth’27 is our five-year strategy focusing on reaching more people that need mobility solutions. The strategy addresses key industry themes and supports our evolution of being an increasingly patient driven company. Our aim is to drive accelerated organic growth and continue to generate value for individuals and healthcare systems. Becoming Increasingly Patient Driven Over the years, Össur has been transitioning from becoming a product company to an increasingly patient-centric organization, primarily focusing on chronic mobility categories where individuals require lifelong solutions but also individuals who have suffered acute injuries necessitating short-term solutions. This transition offers opportunities by having direct access to patients, payers, and providers but also addresses a broader set of chronic mobility categories. Growth Drivers Patient Reach, Innovative Solutions, and O&P Value Creation are the three growth drivers that form the basis of Growth’27. They address our prioritization to become increasingly patient driven and to cater for the needs of individuals with chronic mobility challenges. In other words, they guide our strategic priorities within Prosthetics and Patient Care. We continue to drive growth in Bracing & Supports in line with our Bracing Simplified strategy, which was first implemented in 2021, by being a trusted partner for our customers through the delivery of a simplified and strong product portfolio. Patient Reach We connect directly with patients and reach out to payers and prescribers. Innovative Solutions We embrace innovation in all our actions. We provide innovative & patient-centric solutions combining product & service. O&P Value Creation We offer business solutions to our customers, including O&P clinics enabling seamless service & close partnership. Outlook Guidance for 2024 Guidance Guidance FY 2024 Actual FY 2023 Sales growth, organic 5-8% 9% EBITDA margin before special items 19-20% 18% For modeling purposes: Special items 1 0 CAPEX as % of sales 3-4% 5% Effective tax rate 23-24% 23% Guidance Sales growth, organic EBITDA margin before special items For modeling purposes: Special items CAPEX as % of sales Effective tax rate Related Content Össur opens new innovation center at the Össur Head Office in Reykjavik, Iceland Read More Össur provides training for Ukrainian medical professionals Read More Össur acquires FIOR & GENTZ, a market leader in lower limb neuro orthotic solutions Read...