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Össur

Össur

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Reykjavik, Iceland based Ossur is a leading innovator, developer and manufacturer of non-invasive orthopaedic products such as prosthetics and braces. Ossur’s core competency lies within working with silicones, carbon composites, textiles and mechatronics to help patients live according to its motto “Life without Limitations”. Best known for its world leading lower limb prosthetics, Ossur is at the forefront in incorporating electronics into prosthetics and thereby creating products that more naturally mimic normal gait, increasing amputees' quality of life.

Primary risks include: 1) competitive product launches, with segments operating in highly competitive industries, 2) the growth in Prosthetics is currently driven primarily by increased units prices as consumers trade up, while the volume growth is minimal. Failure by Össur to prove its products’ value to payors and patients and thereby accept higher prices for innovation leaves Össur vulnerable to growth disappointments. 3) Össur is facing a balancing act, to improve efficiencies in its operations while not disrupting its product quality, and 4) high dependency on reimbursement changes (government and insurance) can trigger reduced spending and change product choices.

Financials

USDm 2022 2023e 2024e
Sales 719 784 845
Sales growth (%) 0 8,9 7,9
EBITDA 114 143 168
EBITDA margin (%) 15,8 18,3 19,9
EBIT adj. 65 94 119
EBIT adj. margin (%) 9 12,1 14,1
Pretax profit 56 87 114
EPS 0,1 0,16 0,21
EPS growth (%) -34 55,1 31,3
EPS adj. 0,1 0,16 0,21
DPS 0 0 0
EV/EBITDA (x) 20,9 16,2 13,4
EV/EBIT adj. (x) 36,7 24,6 18,9
P/E (x) 46,4 29,9 22,8
P/E adj. (x) 46,4 29,9 22,8
EV/sales (x) 3,31 2,97 2,67
FCF yield (%) 4,3 4,3 5,5
Le. adj. FCF yld. (%) 4,3 4,3 5,5
Dividend yield (%) 0 0 0
Net IB debt/EBITDA (x) 3,3 2,3 1,6
Le. adj. ND/EBITDA (x) 2,8 1,7 1,1
USDm 2022 2023e 2024e
Sales 719 784 845
COGS -279 -298 -311
Gross profit 440 486 534
Other operating items -326 -342 -366
EBITDA 114 143 168
Depreciation and amortisation -49 -49 -49
of which leasing depreciation -20 -20 -20
EBITA 65 94 119
EO Items 0 0 0
Impairment and PPA amortisation 0 0 0
EBIT 65 94 119
Net financial items -9 -7 -5
Pretax profit 56 87 114
Tax -13 -20 -26
Net profit 43 67 88
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 43 67 88
EPS 0,1 0,16 0,21
EPS adj. 0,1 0,16 0,21
Total extraordinary items after tax 0 0 0
Leasing payments -20 -20 -20
Tax rate (%) 22,7 23 23
Gross margin (%) 61,1 62 63,2
EBITDA margin (%) 15,8 18,3 19,9
EBITA margin (%) 9 12,1 14,1
EBIT margin (%) 9 12,1 14,1
Pre-tax margin (%) 7,8 11,2 13,5
Net margin (%) 6 8,6 10,4
Sales growth (%) 0 8,9 7,9
EBITDA growth (%) -23,6 26 17,1
EBITA growth (%) -33,4 45,7 26
EBIT growth (%) -33,4 45,7 26
Net profit growth (%) -33,8 55,1 30,4
EPS growth (%) -34 55,1 31,3
Profitability N/A N/A N/A
ROE (%) 6,9 10,2 12,2
ROE adj. (%) 6,9 10,2 12,2
ROCE (%) 6 8,5 10,1
ROCE adj. (%) 6 8,5 10,1
ROIC (%) 5,1 7,2 9
ROIC adj. (%) 5,1 7,2 9
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 114 143 168
EBITDA adj. margin (%) 15,8 18,3 19,9
EBITDA lease adj. 94 123 148
EBITDA lease adj. margin (%) 13 15,8 17,5
EBITA adj. 65 94 119
EBITA adj. margin (%) 9 12,1 14,1
EBIT adj. 65 94 119
EBIT adj. margin (%) 9 12,1 14,1
Pretax profit Adj. 56 87 114
Net profit Adj. 43 67 88
Net profit to shareholders adj. 43 67 88
Net adj. margin (%) 6 8,6 10,4
USDm 2022 2023e 2024e
EBITDA 114 143 168
Goodwill 680 680 680
Net financial items -9 -7 -5
Other intangible assets 62 52 42
Paid tax -13 -20 -26
Tangible fixed assets 54 67 81
Non-cash items -27 20 26
Right-of-use asset 125 105 85
Cash flow before change in WC 65 136 163
Total other fixed assets 55 55 55
Change in working capital -5 -19 -19
Fixed assets 977 959 944
Operating cash flow 61 117 145
Inventories 132 144 155
Capex tangible fixed assets 26 -31 -34
Receivables 112 122 132
Capex intangible fixed assets 0 0 0
Other current assets 28 28 28
Acquisitions and Disposals 0 0 0
Cash and liquid assets 77 127 183
Free cash flow 87 86 111
Total assets 1325 1380 1442
Dividend paid 0 0 0
Shareholders equity 636 688 747
Share issues and buybacks -10 -15 -29
Minority 0 0 0
Leasing liability amortisation 0 0 0
Total equity 636 688 747
Other non-cash items -120 -20 -26
Long-term debt 278 278 278
Pension debt 0 0 0
Convertible debt 0 0 0
Leasing liability 116 116 116
Total other long-term liabilities 59 59 59
Short-term debt 62 62 62
Accounts payable 29 31 34
Other current liabilities 146 146 146
Total liabilities and equity 1325 1380 1442
Net IB debt 380 329 273
Net IB debt excl. pension debt 380 329 273
Net IB debt excl. leasing 263 212 157
Capital employed 1092 1144 1203
Capital invested 1015 1017 1020
Working capital 97 117 135
Market cap. diluted (m) 2015 2015 2001
Net IB debt adj. 380 329 273
Market value of minority 0 0 0
Reversal of shares and participations -17 -17 -17
Reversal of conv. debt assumed equity N/A N/A N/A
EV 2377 2326 2256
Total assets turnover (%) 55,9 57,9 59,9
Working capital/sales (%) 13,2 13,6 14,9
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) 59,7 47,8 36,6
Net debt / market cap (%) 18,8 16,3 13,7
Equity ratio (%) 47,9 49,8 51,8
Net IB debt adj. / equity (%) 59,7 47,8 36,6
Current ratio 1,47 1,76 2,06
EBITDA/net interest 13,1 20,5 33,6
Net IB debt/EBITDA (x) 3,3 2,3 1,6
Net IB debt/EBITDA lease adj. (x) 2,8 1,7 1,1
Interest coverage 7,5 13,5 23,8
USDm 2022 2023e 2024e
Shares outstanding adj. 423 423 420
Diluted shares adj. 423 423 420
EPS 0,1 0,16 0,21
Dividend per share 0 0 0
EPS adj. 0,1 0,16 0,21
BVPS 1,5 1,63 1,78
BVPS adj. -0,25 -0,11 0,06
Net IB debt/share 0,9 0,78 0,65
Share price 33,2 33,2 33,2
Market cap. (m) 2015 2015 2001
P/E (x) 46,4 29,9 22,8
EV/sales (x) 3,31 2,97 2,67
EV/EBITDA (x) 20,9 16,2 13,4
EV/EBITA (x) 36,7 24,6 18,9
EV/EBIT (x) 36,7 24,6 18,9
Dividend yield (%) 0 0 0
FCF yield (%) 4,3 4,3 5,5
Le. adj. FCF yld. (%) 4,3 4,3 5,5
P/BVPS (x) 3,17 2,93 2,68
P/BVPS adj. (x) -18,85 -45,26 82,22
P/E adj. (x) 46,4 29,9 22,8
EV/EBITDA adj. (x) 20,9 16,2 13,4
EV/EBITA adj. (x) 36,7 24,6 18,9
EV/EBIT adj. (x) 36,7 24,6 18,9
EV/CE (x) 2,2 2 1,9
Investment ratios N/A N/A N/A
Capex/sales (%) 3,6 4 4
Capex/depreciation -0,9 1,1 1,2
Capex tangibles / tangible fixed assets 47,8 47,1 41,6
Capex intangibles / definite intangibles 0 0 0
Depreciation on intang / def. intang 16 19 24
Depreciation on tangibles / tangibles 35,06 28,56 23,36

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Media

Össur - Company presentation with President & CEO Sveinn Sölvason
Össur - Company presentation with IR Director Edda Lúdvígsdóttir

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Main shareholders - Össur

Main shareholders Share capital % Voting shares % Verified
William Demant Fonden 51.8 % 51.8 % 31 Dec 2021
Interogo Holding AG 6.5 % 6.5 % 2 Feb 2023
Live Pension Fund 5.6 % 5.6 % 31 Dec 2021
Arbejdsmarkedets Tillægspension (ATP) 5.1 % 5.1 % 31 Dec 2022
LSR Pension Fund 4.6 % 4.6 % 31 Dec 2021
SEB Fonder 4.1 % 4.1 % 28 Feb 2023
Gildi Pension Fund 2.9 % 2.9 % 31 Dec 2021
Lannebo Fonder 1.6 % 1.6 % 31 Jan 2023
Invesco 1.5 % 1.5 % 31 Jan 2023
Handelsbanken Fonder 1.4 % 1.4 % 28 Feb 2023
Source: Holdings by Modular Finance AB