Ambu A/S (AMBU-B.CO) Earnings Call Transcript & Summary

Welcome, everyone, to the Annual General Meeting of Ambu. My name is Jorgen Jensen, and I'm the Chairman of the Board. I've been very much looking forward to our Annual General Meeting today to take stock of another year for Ambu with double-digit growth and several milestones. It's wonderful to see so many of you here at our headquarters in Ballerup. I also know that many of you are following proceedings online. And on behalf of the Board, I would like to welcome all of you. At my side, I have the CEO of Ambu, Britt Meelby Jensen; and attorney at law Niels Kornerup who has been appointed by the Board to Chair the Annual General Meeting. He will take us safely through the program today. Britt and I will share our reports on the activities of the past financial year, a year in which we completed our focused turnaround, and we started the new financial year by launching our updated strategy, ZOOM AHEAD. together with the entire Ambu team, we are both excited to execute on that strategy. And I now leave the floor to the Chairman of the meeting, Niels Kornerup.

Thank you for appointing me Chair of the Annual General Meeting of Ambu. I look forward to a good meeting with a good discussion. The meeting is held as a physical meeting with shareholders in the room, but it's also possible for shareholders to put questions and follow the proceedings electronically via the investor portal. It's not possible to put questions electronically if you follow the meeting via a webcast from the company's website because you can also follow proceedings electronically via the webcast. And that's why it's not possible to put questions that way. The transmission from the webcast will be stored, and it is therefore possible to watch it or rewatch it, the meeting that is at the company's website as soon as possible. My first job is to find out whether the meeting is legally and lawfully convened and is quorate in relation to the business on the agenda. Before the meeting, I checked the notice convening the meeting, it was sent out in due time, and it meets the legal requirements of the company's articles and Danish company law. So unless any objections from other quarters, I find that the meeting has been legally and lawfully convened and is quorate. It looks as if there are no objections, I will enter that into the minutes. I can tell you that at the access control just before the meeting started, we found that there's 121 people present in the room, out of which 50 are shareholders. There are 79% of the voting stock represented here and 56% of the share capital is represented. A number of proxies and postal votes corresponding to 15% of the represented votes have been filed. And this means that the [ shareholders ] are also represented in the room. The final numbers of all this will be reflected in the minutes. As on previous AGMs, for the sake of good order, I wish to refer you to Section 105(5) in the Danish company law concerning a full explanation of votes that take place at the meeting, which must state the full process and numbers voting for and against. This requirement can be waived, and we've done that on previous occasions. And in order to have a smooth process of today's meeting, I recommend to you that we do the same this year. Can I count on your support for this? I can. Thank you very much. And for practical reasons, I would like you, if you wish to take the floor to make yourself known to me, and you must come up here to the microphone. I will make sure that speakers also get the floor in relation to the right item on the agenda that they wish to speak about. The agenda is the same as the one issued with a convening notice. And here, we see it on the screen. First, we hear the management report, then we have annual report and annual accounts, financial statements. Then we have the remuneration report. Then we have appropriation of profit, the proposal from the Board concerning this. Then we have Item 5, which is remuneration for the Board for fiscal '25, '26. Item 6 is election of Chair of the Board; 7, Vice Chair of the Board; 8, other members of the Board. And the last item with an election is 9, which is the election or appointment of auditors. Then in Item 10, we have proposals from the Board. There is only one, and this has to do with an amendment to Article 24, which deals with the language to be used at Annual General Meetings. And then the final item on agenda 11, which has to do with granting authority to the Chair to file the protocol with the Danish company's agency. We will deal with the first 4 items in one row, so we will have the management report, verified annual report, financial statements consolidated, the remuneration report and the appropriation of profit. And first, we will hear the Chair of the Board, Jorgen Jensen, followed by CEO, Britt Jensen. First, the Chair of the Board, and he will deal with 2 items, and then we have our CEO, who will deal with the last 2 items, including an explanation of Ambu's strategy. So I'd like now to hand over to the Chair of the Board.

The financial year 2024 and '25 has been defining for Ambu. We concluded our turnaround, and we took the first steps into a new strategic era with the launch of our ZOOM AHEAD strategy. With a strengthened financial foundation and a renewed strategic course, Ambu is now well prepared to create long-term value and take the lead in the global endoscopy market. For the second year in a row, Ambu delivered double-digit growth with organic growth of 13.1%, far above the average of the med tech sector. We have shown that we can scale in a dynamic market. We ensured a solid growth of 15.4% in our Endoscopy business and an extraordinarily high growth of 9.9% in the fields of Anesthesia & Patient Monitoring. At the same time, our EBIT margin increased to 13%, a clear indicator of our ability to run a more efficient business all the while investing in future growth. Ambu is a growth company with a large potential. We provide efficient, advanced and economical solutions for a global endoscopy market characterized by an increasing number of patients and scarce resources. We are dedicated to shouldering that responsibility. As part of our focus on innovation and growth, we expanded our endoscopy portfolio last year in our 2 high-growth areas, airways and urinary tracts. In the field of airways, we launched our video laryngoscope for efficient intubation. And in the fields of urinary tract, we introduced our ureteroscope to the treatment of kidney stones. Both of these solutions strengthen Ambu's position in the endoscopy market and demonstrate our ambitions of setting the course in a market that is rapidly developing. We are satisfied with this year's results. The results have strengthened our position and our financial foundation. Today, Ambu is in a strong position with no debt and with a solid liquidity of DKK 866 million and solid current free cash flows for the year of DKK 407 million. This enables us to invest into the future and continue to create value for our customers, our patients and our shareholders. In this financial year, we also concluded our 3-year turnaround. With the ZOOM IN strategy, we have revitalized Ambu as a company with solid profitable growth and even faster than planned. ZOOM IN was launched in November 2022 and has resulted in a number of significant steps forward, that everyone in and around Ambu can be proud of. We have launched no less than 7 endoscopy solutions across our business areas. And across our endoscopy portfolio, our solutions have been used in 62% more procedures a year compared to the starting year of the strategy. Not only have we achieved double-digit growth, we've also shown that Ambu is capable of making money as we have increased our EBIT margin from 2.7% to 13%. We have reestablished our financial foundation and our operational strength. Our free cash flows have improved by more than DKK 860 million, and our absolute operating income has more than -- has been doubled by more than 5x. We have achieved a leading position within sustainability in the med tech industry. We launched a reuse program for endoscopes, our so-called Ambu Recircle Program. As the first companies in the business, we have also started to use bioplastics in our handles on our endoscopes. And thereby, we have shown that responsibility and innovation can go hand-in-hand. These initiatives strengthen our position globally and contribute to a more sustainable future. And this is all something our customers increasingly are appreciating. And in the middle of our turnaround, we have achieved to attract and retain more employees all the while strengthening our top management, which today consists of experienced profiles from the med tech industry. Only through a strong cooperation and a common focus on execution, have we been able to achieve these results. Britt and the entire Ambu team have shown impressive dedication, which has been the foundation for our successful turnaround. With a strong financial platform and renewed strategic clarity, we are well equipped to create long-term value and take a leading role in the global endoscopy market. We have now started a new strategic era with our ZOOM AHEAD strategy. This updated strategy was presented by the management on our Capital Markets Day on the 1st of October, whereas ZOOM IN was a turnaround strategy. ZOOM AHEAD is focused on accelerated growth and market leadership. The shift away from reusable endoscope and towards single-use endoscopy is accelerating. And Ambu is at the forefront as market leader, driven by strong momentum in our Endoscopy business. In a global health care sector that is under pressure, Ambu can use its trailblazing technological solutions to optimize busy workflows and ensure fast treatment of an increasing number of patients. We believe that single-use endoscopy will be the preferred approach. Our focus is simply to help hospitals and health care professionals treat more patients better and faster. And we will do that with our innovative and integrated solutions that are efficient, clinically advanced and economical. The potential is huge, and we are committed to leading that development. However, our strong strategic basis and improved operations have not been reflected by the share price. In this financial year, we have seen a decrease in the share price, and the share has been characterized by high volatility, which is also seen generally in the med tech market. But let me emphasize that the Board and management are in this together to create long-term value for our shareholders. That is the core of the ZOOM AHEAD strategy. We made it clear at our Capital Markets Day that we are fully focused on delivering on our strategy. This includes our 2030 goal of 11% to 13% organic revenue growth and an EBIT margin of more than 20%. It is still our clear position, and I'm convinced that our sharp focus will be reflected in the share price over time. The Board of Directors plays an important role in the strategic management of Ambu, not in the day-to-day operations where progress and results are driven by our management, but in ensuring that the overall course is the right one. As the Board of Directors, our primary task is to set the strategic course and to assist the management in ensuring continued success. We have a good and close cooperation, which is important to an ambitious growth agenda. We monitor the geopolitical development closely so that we are ready to adapt in order to maintain momentum and strong results. I believe that the Board has the right competencies to support management in the execution of our strategy. The group has a broad composition and contributes with valuable perspectives and discussions across experiences, a broad exposure to med tech, gender and nationality. All of the AGM elected board members are up for reelection this year. And if the proposals are adopted, the Board will continue to consist of 6 AGM-elected members and 3 employee-elected members. Ambu's employee-elected members, Gry Sahner Gundestrup, Jakob Koch and Jesper Bartroff Frederiksen were elected just 2 weeks ago. A warm congratulations to all 3 of them. In the Board, we look forward to benefiting from their experiences and dedication in a close and constructive cooperation. The drafting of the remuneration report is also an important task for the Board of Directors. This report is sent out to the shareholders along with the annual accounts and can always be found on our website. The Remuneration Committee is tasked with ensuring that the remuneration of the Board and management are in line with the goals of the business and the current remuneration policy. Furthermore, the committee works with developing a policy that can attract and retain the right competencies in the Board as well as in top management. In the remuneration report, it is mentioned that the period on which the Board of -- the top management is measured in the long-term incentive program will be expanded from 1 to 3 financial years, starting from this financial year. This expansion will strengthen the focus of the top management on long-term value creation and thus, it supports our ZOOM AHEAD strategy. We believe that the remuneration report gives clear and transparent insights into remuneration and lives up to all guidelines. We also believe that the remuneration policy is matching the market standard and is competitive. As part of the annual report, the Board proposes to pay out a dividend to our shareholders for the second year in a row. I'm glad to be able to tell you this, and that underlines our continued progress. However, I would also like to underline that any payout of dividend should, at the same time, ensure that we still have an opportunity to invest in growth. Our focus is to drive high growth and that requires a strong financial position of the annual profit of DKK 609 million. We propose a dividend of 18% of net profits. That means a payout of DKK 0.41 per share corresponding to DKK 110 million. Furthermore, after the AGM, Ambu will launch a share buyback program of DKK 150 million corresponding to 25% of profits. That means that we pay out a total of DKK 260 million, corresponding to 43% of annual profits. Thereby, we are surpassing our goal of distributing 30% of profits, and we demonstrate our focus on creating value for our shareholders. The remaining profit of DKK 349 million are transferred to the next financial year in order to underpin our continued value creation. With all of our achievements through the past 3 years and with our updated strategic course, we now have a crystal-clear focus to create high long-term growth and to fulfill Ambu's great potential in the global endoscopy market. The ZOOM AHEAD strategy sets a very clear course towards a global leading position. In front of us, we have an attractive market that is developing rapidly, and we want to be the player to lead this development towards single-use endoscopy. We have proven that we have the innovation it takes to solve the biggest challenges in our health care systems. We have a clear ambition and focus, and we're in a strong position to win market shares and deliver double-digit growth and profitability towards 2030. On behalf of the Board, I would like to finish by extending a warm thank you to all of our employees for their great efforts in the past year, a special thank you to our shareholders for their continued support and confidence in our growth journey. I will now pass the floor to Britt Meelby Jensen, Ambu's CEO, to give her report of the past year. Thank you.

Good afternoon. I've been looking forward to talking to you today about what has happened in the past year in Ambu and give you first glimpses of what is in store for us in the future. Let's summarize also what Jorgen talked about. We have delivered a total growth of just around 13%, and we focus on endoscopy. And there, we have achieved 15.4% in growth. So we still have a 13% earnings level. We have expanded the endoscopy portfolio in the past year. And on the 1st of October, we had a Capital Market Day, where we introduced a new strategy. I'll touch upon all these 4 topics in the course of my presentation. But first, let's have a look at the distribution of our turnover or revenues. Our Endoscopy business is outgrowing our Anesthesia & Patient Monitoring areas. So today, 60% of revenue comes from endoscopy and 20% from anesthesia and 20% from patient monitoring. If we look at the geographical contributions, we have 50% of revenue in the business from North America and then 40% from Europe and 10% from the rest of the world. Last year, I could also tell you about progress as reported by Jorgen a while ago. And if we look at our ZOOM IN strategy, we have now had 2 years with very high growth, double digit. You can see here 13.8% and 13.1% growth. We have also had 2 years with solid double-digit growth in the EBIT margin, respectively 12% and 13%. And that too is something that is likely to grow in future. We've also had a positive development in the free cash flow so that we are now without debt and we still generate a positive cash flow. So revenue and growth are vital for us. And that's why we are pleased to see when we compare ourselves with the benchmarks that we have a growth that is more than double what we see from other actors in the med tech global scene. Let's zoom on our markets. And before I do that, remind you on where we are actually active. We have the widest portfolio in the med tech business. So today, we cover everything from ear, nose, throat to the respiratory tract, where it all began to the gastroenterology area and then to urology. If we look at the markets and what we think about growth in the market towards 2030, there's no doubt that there will be continued growth upwards of 20% in our estimate year in, year out. And it is contributed by 2 factors. First of all, general market growth for total procedures around 5%, driven by the aging population, by more chronic diseases and also an increase in practically all countries worldwide in what we call minimal invasive procedures, which is surgery where you do not use a pervasive procedure. Growth around 15% in relation to existing new solutions that comes from doctors using aScope procedures instead, primarily solutions that we already have in the market, but also with a lot of innovative products, new solutions that we will be launching as we move forward. So on the whole, that contributes more than 20% annually. And in addition to that, we also try as Ambu to find out whether there's anything in the environment that we can also work with using our new solutions. What does that mean to the total market, this development? Well, look at this slide and look on what it says on the right-hand side. If we have a fully converted endoscopy market, it corresponds to about DKK 190 billion. Below that, you see that the market has only been penetrated to the tune of 3% to 4%. So the large majority of procedures done today involve the use of reusable aScopeprocedures or instruments. The highest penetration is in relation to the respiratory tract, and that was where we were the first movers in -- at the turn of this century and where we started using these penetration procedures. So we have driven the development in that area. And that also applies to the urology segment where we were the first to introduce an instrument that can be used in relation to bladder cancer. We were also the first to launch endoscope for the ear and throat area and by far, the largest market is in relation to gastroenterology where we changed our approach a couple of years ago. So on the whole, we see a huge potential. And to go back to our thoughts in relation to why we still believe that this penetration can -- will grow. Well, as I said, we were the first movers in relation to 3 aScope procedures, the bronchoscope in 2009, penetration now is about 25%. This is an example from the U.S., and it differs greatly from one market to the next. In relation to ear, nose, throat, we have an endoscope that was launched in 2018, penetration in the U.S. is about 5%. And in relation to urology with the cystoscope, the penetration in the U.S. is around 10%. What's interesting is that this spring, we asked both customers and other doctors in the areas how many of the procedures that would accommodate a single-use instrument and the level was 70%. So there's still a wide difference between the current use and the potential that has been identified by doctors. Single-use endoscopes is something that doctors want to use in the future. And what drives their demand for single-use instruments is -- well, there are many, but one factor is efficiency in the health care system. If they can eliminate procedures such as the cleaning of instruments and never running out of scopes because they are all sent for cleaning, then it means that they can actually treat double the number of patients because they can use single-use instruments. There are also financial benefits and then the sustainability aspect, but I'll come back to later because although it may be counterintuitive is actually more sustainable to use a single-use endoscopy also in view of the chemicals and other factors that are involved in the cleaning of the instruments. So after the progress achieved in recent years, we took a step back and thought, well, we need to change gears here and take a look at growth. And that's also why, on the 1st of October, we launched our ZOOM AHEAD strategy, which is focused on growth and deals with how we can become leaders in endoscopy in future. Our strategy has 2 focus areas: one -- oops, I don't know what happened there. I'm not done. Our strategy has 2 focuses -- what's going on, yes, the technology can be tricky. [Technical Difficulty] Well, we did it. We have 2 aspects in ZOOM AHEAD. The strategic thing in relation to where we have been. And then the themes -- the strategic themes that we wish to add in order to fulfill the strategy. Let's take a look at where we need to focus to win. The 2 areas most in focus and the biggest one in our Endoscopy business, that's respiratory and urology. We have a good business in ear, nose, throat, and we will continue there focusing. And there's no doubt that when we look at the potential in relation to gastroenterology and the tradition we have created up until now, there is a huge potential for us in Ambu, also help transform that area because the challenges are the same as we see in all the areas. We have experience. We have had a lot of learning, and that is what we can tap into in the long run. We also still focus on Anesthesia & Patient Monitoring. And when we talk aScope procedures, it's all tied together by means of EndoIntelligence which is software. Why is it so important? Well, we're the only company -- well, we have the widest portfolio. But we're also the only business with a software platform that spans or straddles the whole gamut of services that we can offer. So in future, we will focus even more on systems and software. There are 3 things that are in focus there. One has to do with how -- yes, thanks. I need some water, thank you very much. One is about what happens in relation to the monitors. And the other thing is the software where we are already leaders and where we can also integrate with hospitals, and then we have a number of projects up and running now where we use AI to give our doctors even better solutions. We will help not only prepare them better for procedures, but we will also help them perform their jobs better during the procedures, for instance, by increasing the likelihood and the ease with which they can find the polyps when they do scans for cancer and also procedures where a lots of documentations that doctors need to do in the course of an endoscopy procedures. We have launched a number of solutions in this respect. And we have new focus areas, such as urology, where we now have introduced an instrument that can remove kidney stones, and then we have a new instrument for intubation in a number of settings. It was launched early this year. And this week, we introduced a mobile laryngoscope which is mobile. So it is far more easy to carry it on board ambulances and carried around for doctors. So our business with regard to respiratory tract, we now have created a wide portfolio with products that support one another. You see here the endoscopes. We had 2 generations that fit to different needs, and they both come in different sizes for different needs. We have the video laryngoscope. We have also all the technology in relation to the monitors that we provide the market with. So we have a very wide portfolio that can help remove problems with procedures. It's a strong part of Ambu, and we will focus on becoming even better. The next generation of bronchoscopes is in the pipeline. We have intelligent patient monitoring involving AI in the pipeline, and we have a number of other solutions that will be launched eventually so that we can help doctors meet a number of different challenges. Also, I have a comment with regard to the strategic themes. We have 4 different themes in the strategy. The first is how we give service to our customers. We have a lot of focus here on making sure that they can provide effective and efficient treatment with a successful outcome for patients. for instance, how they can work in a sustainable manner. I'll come back to this. Innovation with strong -- is also an area with a strong focus. We have a lot of interesting things in the pipeline. We have attracted new competencies to our R&D department also in relation to software and AI that is becoming increasingly important. We have growing focus on partnerships in order to continue finding out what we can do ourselves and what we need partners for. And we also want to have a scalable platform, a scalable business that allows us to invest more and get more result out of our investments. And then we have a lot of focus on our employees and our culture because if we have a strong culture, then we also have pleased employees and better cooperation and hence, better results. Customers and that set up, just to repeat where we are present. More than half of our turnover or just about is in North America, but we are active in the blue areas that you see here. We have 3 major R&D centers. One is -- R&D center is in Denmark, one in Germany, one in Malaysia, and we cooperate with doctors across the globe and also innovation is in 4 different areas that I'll come back to. Innovation, well, the company was founded in 1937, and we have had a lot of focus on understanding customers in order to be able to present it with new and trailblazing innovation. We are proud this year to be able to celebrate both the 70-year anniversary for our Ambu Bag and the ventilator that was introduced in the last century is still a strong product. And when we visit hospitals, it is still referred to, as I said, the Ambu Bag. 50 years ago, we invented the BlueSensor, which is used for patient monitoring in the cardiovascular area. And in 2009, approximately 15 years ago, we were the first to launch single-use endoscope. So we have been trailblazing in a number of focus areas throughout our history. I referred briefly to production. Let us just take a glance at our manufacturing footprint, where do we have production plants. We have 4 of them all over the globe, in China, in Malaysia, in the U.S. And we opened 3 years ago, a production plant in Mexico. There's lots of free capacity there, and we can send in a more uncomplicated manner to the U.S. from there. And we also have production in the U.S. so we can service customers in the U.S., and we can be more flexible in relation to the geopolitical challenges and tariffs that are debated so hotly these days. We also have flexibility because the world has become less safe and reliable. So we need to use the production plants we have and ensure that we also have excess capacity so that we can very quickly follow developments outside. Very briefly about our sustainability, Jorgen touched upon this. We were the first business to deliver medical equipment to find out that we could use bioplastics. This has been implemented about 12 months ago in all our endoscopes. They are all of bioplastics now, and we've also rolled this out to other of our product lines. We also focus on the Recircle Program that we have invented. We have now been able to deal with some of the regulatory barriers that existed so we can now offer it both in the U.S. and U.K. and France and Germany. And next year, we will be moving into other markets. And this is something that our customers really like. And there's also a wide recognition among our users and customers, and there's a growing understanding that it's, in fact, more sustainable to use single-use equipment instead of -- well, several -- equipments that can be used on several occasions. We see that an increasing number of data that supports our optimistic view of this trend. What then does it take by ways of financial results? We have changed our guidance. We now expect over the next 5 years to see an annual growth of between 11% to 13%, primarily driven by our Endoscopy business. What does it mean? Well, we will see a gradual growth in the business accounted for by our Endoscopy business. And here, you see what we expect in EBIT margin, plus 20% in 5 years. And this year, we have a guidance saying 12% to 14%, and that includes some customs costs that occurred earlier this year and are being phased out over the year. So we are ready to deliver. We are in very attractive markets. There are not that many markets in our scene that can really deliver the same growth prospects and potential. We still invest a lot in innovation with a lot of focus on what it is we help our customers with. We also have a platform that we are trying to make more scalable and where we can make full use of our global setup. And we consider this to be the right path to growth. This cannot be done, of course, without our competent and committed employees. So I wish to explain that we have an extremely strong team of 5,000-plus employees. Here, you see my good colleagues in the management team. We have a lot of competencies and experience gleaned from all parts of our industry. And here, you see, well, pictures of all of them. Scott, as you -- who you see on the right-hand side is Head of our American business. And now over to our Chair of the meeting.

Thank you for the management report. Thank you for presenting the annual report and the remuneration report for the financial year 2024 to '25. Before opening the debate, I can inform you that the annual report has been signed by the Board and the management and that it has been audited by the company auditor with no remarks or so-called unqualified auditor's report, which can be seen on Page 190 in the annual report. And as we've just heard, the Board proposes to pay out a dividend of DKK 0.41 per share for the financial year which amounts to a total dividend of DKK 110 million. The Board proposes that the remaining parts of the annual profit is transferred to next financial year. I will now open for the debate for shareholders participating in person, but also for the shareholders who are participating online. And I have been told that 78 are participating on the webcast via the website and via the investor portal, and we will take them into consideration as well. That means that 121 participants, as I mentioned before, was a bit too much because 63 are actually here in person. And with that, I already have 2 speakers on the list and the first speaker is Claus Berner Møller from ATP. And I give Claus Berner Møller the floor. Go ahead.

Thank you for the floor. My name is Claus Berner Møller. I represent ATP, the pension fund. Thank you for the report and the review of the annual accounts. Looking back 3 years to 2021 to '22, where Ambu saw organic growth of 4% and an EBIT margin of minus 0.6% after extraordinary costs, we must say that today we are in a very different place. Ambu delivered an organic top line growth of 13% and an EBIT margin of 13% in this financial year. This was the conclusion of the 3-year strategy called ZOOM IN. This strategy period has therefore been quite successful, and the company is in a stronger position today. On the 1st of October, this year, many shareholders were invited to the Capital Markets Day at Ambu. Here, management presented the new strategy ZOOM AHEAD where the long-term goals were presented. The goals are top line growth of 11% to 13% on average until 2029 to 2030 and an EBIT margin of above 20% in 2030. It would be very impressive if you achieve these ambitious goals. The share price did increase after this successful Capital Markets Day. But with a disappointing Q4 account on the 4th of December with the guidance for next year below expectations, we saw the share price fall to where it was before the Capital Markets Day. That was a shame because you could have mitigated that effect. If you had explained ahead of the Capital Markets Day that tariffs would cause 2 percentage point on the margin in 2025 to '26. However, this does not change the fact that I believe that Ambu is in a good position with many new and interesting products in a high-growth market and with a much broader management group than what we have seen before. You have established a good foundation. On the other hand, I do have some concerns. The Chairman of the Board, Jorgen Jensen, holds 6 chairmanships of Danish boards and 2 memberships of other boards. Most of these posts are in large companies. That is quite a large portfolio of Board posts and chairmanships, in particular, hold a great burden of work. I'm sure that Jorgen would not have accepted all of these posts if he didn't believe that he could take care of them appropriately. But if several companies are thrown into crisis as we saw it under the financial crisis, for instance, then it would be difficult for him to keep down all of these jobs with 6 chairmanships. You do risk a situation where several companies need your attention at the same time in times of crisis. And here, it would be difficult for Mr. Jensen to put in the necessary amount of hours. I would therefore encourage our Chairman to cut back on the number of Board memberships and in particular, on chairmanships so that he would have more time to be there for his companies at times of crisis should they occur. ATP encourages a dialogue on this matter. Finally, I would like to wish the management and employees of Ambu the best of luck for the coming year.

Thank you to ATP and Mr. Claus Berner Møller, and I will give the floor to the Chairman of the Board.

I'm always happy when I hear praise from our large shareholders, particularly when it comes to the growth and the focus on growth we have in Ambu. We have taken Ambu through a turnaround. And for the second year in a row, we have delivered significant growth as we mentioned in our report. Therefore, I'm also happy when our investors take note of the fact that we have been significantly increasing our earnings. And I completely agree with ATP that the strategy that we have now concluded has been very successful indeed. And that we, with our new strategy, have laid down the rails for a good and strong future. We have a good point of departure to ensure continued growth in Ambu, and I look forward to working along those lines. Finally, it is true that I hold several chairmanships and posts on a number of boards. It is not unusual for experienced business people to have several posts in different companies that gives us a better insight into best practices. Ambu is the only listed company that I serve as Chairman for, and there's a big difference in the tasks resting on the Board, be it private holding companies or listed companies. I take care of all of my chairmanships with the necessary due diligence and time, and I'm completely confident that I can maintain all of them also at times of crisis. The Board and the main investors in Ambu as well as in the other companies that I'm a member of the Board in, they have shown me that confidence, too.

Thank you very much. And I encourage everyone who wants to take the floor to make themselves known. The next speaker is Anders Nørskov from the Danish Association of Shareholders.

I am Anders Nørskov, and I give this presentation as a representative of the Danish Association of Shareholders. We look after the interests in Denmark of private investors. I have 2 questions for the management. First of all, once again, I'd like to congratulate you on a fine result. I know that the share price is about 30% lower than last year. But as I did last year, I'd like to encourage management not to be controlled by the capricious thoughts of the members of the stock exchange, but do, as you always do, and be led by the strategy. When Britt Meelby was appointed CEO, she initiated the transformation of Ambu with the strategy ZOOM IN. This process has now been completed, and a new strategy, ZOOM AHEAD, has been developed. The purpose of ZOOM AHEAD is to change gears from being just a supplier of products to becoming a full-scale hospital partner in 2030. That is very ambitious. ZOOM AHEAD involves high goals with regard to growth, and it's becoming increasingly clear that the business here consists of 2 very dissimilar elements. Endoscopy with high growth and Anesthesia & Patient Monitoring with low growth, you cannot help thinking how long will they remain under the same roof. Innovation is highly visible, and Ambu has launched a number of remarkable product novelties, which bind together the different product units even better. And here, EndoIntelligence is a very important player. The same applies to the new market area, kidney stones with a market potential of DKK 15 billion. The reuse of resources is another high priority in relation to innovation. And as the first med tech business in the world, Ambu has launched a recycling program called Ambu Recircle Program where used endoscopes are collected with the possibility of reuse outside the medical sphere, that gives lower CO2 consumption and reduces waste quantities. The EBIT margin declined, but before special items, it rose 22% to DKK 784 million. Next year, you expect a negative effect because of the customs tariffs about 2% and earnings despite all this is likely or expected to grow to 16%. I would remind you, as others have said, that it was 2.7% in the first year Britt Meelby was with us, special -- EBIT before special items will increase 22% to DKK 784 million. And in Britt's first presentation of financial result, it was minus [ 7. ] And this figure has even been negatively or adversely affected by strategic investments and a headwind from the currency I wonder how high would have gone if we haven't had -- hadn't had this. So debt is negative, which means there is no debt. It grew from DKK 57 million to over DKK 300 million. Cash flow is positive with a considerable 3-digit amount in millions and earnings per share has grown by as much as 160% to DKK 2.29. PE is high, 41, but down from 149 last year. So that's fine. And dividend goes down from 43% to now 18% but will be supplemented by a share buyback. We like you a lot, Britt. You're not only a very nice person, but you also deliver good results. So the shareholders here like you, and you talked about the share buyback and then also the possibility of making acquisitions. Well, my questions. When ZOOM IN was introduced, Britt Meelby showed us slides with an estimated market of 100 million procedures per year. Today, you're talking about a potential market of 190 million procedures, almost doubling. Where does this growth come from? And a down to earth question, how about profitability? My second question. It's good to see that Ambu is an active and proactive participant in processes to reduce CO2 consumption and resource consumption, in particular, if the customers like it. Last year, I found in my presentation that the newly elected President Trump had made statements that gave cause for expectations of major changes in the U.S. relationship to its surrounding world, both when it comes to geopolitics and customs tariffs. Unfortunately, all this came true. Now it's only natural to ask how do you see the demand for Ambu's Recircle Program and its future in the U.S. market, which is Ambu's biggest market. To round off, I wish you good luck with all your new initiatives and products. And I also wish you good luck, all those of you in Ambu with a new fiscal year. And not least, good luck to you, Britt Meelby with your new position on the Board of Novo Nordisk. So lots of good wishes from my association.

Thank you very much to Anders Nørskov from the Danish Association of Private Shareholders. Britt, you have the floor for a reply.

Thank you very much, Anders, for the kind words and also for your very good comments to our consolidated accounts. I'll consolidate your 2 questions. The market size. It's a very good observation you've made to look back at the way we calculate the size of the market. To the best of our ability, we try to work with the data that we can get hold of. A couple of years ago, when we talked about the ZOOM IN strategy, we saw when looking at the world, 200 million procedures per year was what took place. And we had 100 million in our market. And now if we look at the individual segments, and each endoscope has a different value. So it may be a bit difficult about this calculation, we've tried to be very transparent. But we now have more market data at our disposal and the things are much more clearer now than they were 3 years ago. 3 years ago, we said 200 million procedures globally. We focus on the 100 of those. So we think that 150 is likely to be our focus. And now you saw the amount, DKK 190 million. But the question is where to make the money that we need for this. If we look at the total Endoscopy business, this is where the money will come from. We will not state publicly our earnings from the different segments. But growth is so important for us, and that is why we always check where to get the best models also with investments in commercial production and making sure that we have the right earnings in the individual areas. I can't really go into more detail about the money thing, but it is not only an attractive market in relation to procedures, but also earnings. The second question you asked about sustainability and the Recircle Program that we have launched. We decided to launch it in 4 countries. And from that decision was made and until all the regulatory barriers, that unfortunately still exists had been dealt with, trump had taken over. We decided to go for the U.S. launch because it's our biggest market. And we also feel responsible for contributing to the green agenda over there. But with the rollout that we have had in the U.S. specifically, we can see that customers like the concept a great deal. I go to the U.S. on a regular basis and visit customers most recently a couple of weeks ago when they actually welcome and talk a lot about sustainability efforts, not just our program, but also the initiatives that we are coming with later. And they really want to do studies also with us over there about the impact of this. So there are very different interest at play in the U.S., but we will still go ahead full speed with our Recircle Program. As long as we can make a difference for one customer globally, then it makes sense for us to go ahead with it. So we like that we saw the customers give a good reception to our program here.

Thank you to Britt Meelby Jensen. Does anyone else wish to take the floor? Yes, Mr. [ Kjeld Bøjer ].

As mentioned, my name is Kjeld Bøjer. I have a website with the same name. I would like to thank you for your very good report and for giving it in Danish because had it been in English, I wouldn't have understood a thing. I'm sure there are so many complicated words in what you do. So I hope you will continue to speak Danish, if you want to maintain your Danish shareholders. Otherwise, Ambu will fall to foreign hands, and I don't see any benefit coming from that. If I send something to a member of Parliament that I've found in English about the U.S. because the Danish press doesn't really cover America, then the media coverage is completely controlled by CNN. But if you look to other channels from the U.S., you will find out that the world is very different from what we are told here in Denmark. And once what Trump is doing will have its effects, then you will be caught off guard if you're not informed but that was just a side matter. But to me, it's very essential that you speak Danish. A few years ago, more than 50% of Danish shares were owned by Danes, and now it's less than 50%. And foreign investors don't give a damn about the Danes. So it's like the companies can't resist and not even our government is with us because the government -- our government should do like other governments and say, "You're a Danish government, you're a Danish company, you must report in Danish and you must have AGMs in Danish." But where is the government in all this? They are controlled by the World Economic Forum. They have a very different agenda. So you shouldn't be upset that the share price is a bit low because it should be -- it could be overrated and it was [ 240 ] at one point, and I think it was 20% of the book value and 20% of the book value is not a lot because you really need to make a lot of money in order to really honor that evaluation. And now the share price has reached a more realistic level, I would say. It's still a bit over the book value, but not 20% above. And that's the way it is with share prices. They can be hyped up by all sorts of different and too eager information, I might say, from certain sources, none mentioned. But as I said, I think the share price has reached a more realistic level. And I'm glad that you are not buying more treasury shares than what you are doing because that affects the share price. We saw that in Novo Nordisk, where they bought too many treasury shares so that the share capital would have been spent over a course of 10 years. And I pointed out that fact on an AGM, and they stopped buying treasury shares. And then they reached a more stable level in their share price. So it's a dangerous instrument, buying your own treasury shares. And it's okay to buy a bit of treasury shares, but be careful, you should rather pay out the money in dividends. That will be better. And sometimes, I suspect that the CEO has a good share option, and then he wants to buy his own shares because then they increase in value, but it will be to the detriment of us ordinary investors. So therefore, we do not like it. Right. I hope that you will, in future, also prepare the annual report in Danish so that we can follow what is going on. Well, there's too little light up here. I can't read my notes, but good luck with the coming year. I thought you said something about some more news, but perhaps that was not the case, but good luck in the future.

Thank you very much. And we heard a number of comments and remarks here about holding the AGM in Danish in the future or in English. And I refer to Item 11 on the agenda where we're going to -- Item 10.1 on the agenda, where we can speak more about that matter. Does anyone else wish to speak on Item 1 to 4. That does not seem to be the case, and we do not have any shareholders online who wish to take the floor. I can therefore close the debate on Item 1 to 4. I can, therefore, conclude that the AGM has taken note of the annual report, has approved the annual report and the remuneration report for '24 to '25 and approved the appropriation of profits as proposed by the Board. I will take that to the minutes and that concludes Item 1 to 4. That leads me to Item 5, which is about the remuneration for the Board for the current financial year. It is proposed that the fee remains unchanged vis-a-vis the last financial year, and it is the following: there will be a basic remuneration for Board members of DKK 400,000. The Chair of the Board receives 3x the basic remuneration, that is DKK 1.2 million. The Vice Chair receives twice the basic remuneration that is DKK 800,000 and then the individual committee seats will receive DKK 132,000 per committee seat, whereas the Chair of a Board Committee will receive a remuneration of DKK 200,000 per chairmanship. Does anyone wish to take the floor on that item? I can tell you that it requires an ordinary majority, it seems that no one wants to take the floor. So I hope I have the General Meeting support in concluding that the proposal has been adopted. Items 6 to 9 are different proposals in relation to elections. The first item is 6. Here, we have election of Chair of the Board of Directors and the Board of Directors proposes the reelection of Jorgen Jensen as Chair of the Board. I refer you to Annex 1 in the convening notice, where you can find information about the management positions held by Jorgen Jensen. Any comments on this? That doesn't seem the case. Well, if there's only one candidate according to Danish law, then the one candidate for this position has been reelected. Well, welcome and congratulations. Then we have Item 7, election of Vice Chair of the Board of Directors and the Board of Directors proposes the reelection of Shacey Petrovic as Vice Chair of the Board. Again, I would refer you to the convening notice Annex 1 where you find information about other managerial positions. Shacey Petrovic has been reelected. Congratulations. Item 8 on the agenda, election of other members of the Board of Directors. The Board of Directors proposes the reelection of the existing Board members or the other ones, Susanne Larsson, Michael Del Prado, Simon Hesse Hoffmann and David Hale. And I again, I would refer you to the other managerial positions held by these candidates and you find it at Annex 1 of the convening notice. Any other candidates or nominees? That doesn't seem to be the case. Well, this means that all the candidates have been reelected for a 1-year period. Congratulations and good luck. So the Board now consists of the following members elected by the AGM. Jorgen Jensen is the Chair, Shacey Petrovic is Vice Chair, Susanne Larsson, Michael Del Prado, Simon Hesse Hoffmann and David Hale. And I can also inform you that we have recently had employee member elections and the following employees were elected for a 4-year period, Gry Sahner Gundestrup, Jakob Koch and Jesper Bartroff Frederiksen. There are also alternates available for the 3 employee-elected members. They are Pernille Bartholdy, Jesper Domino Rask and Thomas Lykke Henriksen. Right. This brings us to Item 9 on the agenda, the election of auditor and the Board of Directors proposes the reelection of Ernst & Young Godkendt Revisionspartnerselskab as external auditor, and this applies to statutory financial reporting and assurance engagement relating to sustainability reporting. The audit committee's recommendation has -- is behind this and has not been influenced by third parties and not been subject to any agreement with a third party restricting the general meeting's election of certain auditors or audit firm. Are there any other candidates? That is not the case. Ernst & Young has been reelected. Well, the full name is Ernst & Young Godkendt Revisionspartnerselskab. Next item is a proposal from the Board of Directors. The first and only proposal has to do with holding general meetings in English. The Board of Directors proposes an amendment to Article 24 of the company's articles so that it runs as follows: the corporate language is English, company announcements and annual reports and documents prepared for internal use by the general meeting in connection with or after the general meeting shall be in English. That's the previous wording. And now a new sentence is added. The general meeting can be held in Danish or English pursuant to the Board of Directors' decision. This is an amendment that only relates to the last sentence in that piece of text because we already have met the -- what is stated in the first sentence, 2/3 of the votes cast are required in order for this to be carried. I would like to hear whether there are any requests for the floor. Kjeld Bøjer has asked for the floor. I think you touched upon it already when you took the floor a while ago. You don't have to repeat everything you said.

Well, I'm very much against this. We would miss a lot of information if it were in English, and I'm sure the foreign investors would be happy and the Danish investors would lose money on this. So I do not believe that you as a good Danish company should even think about such a thing. To make use of a right that you would then have because, of course, foreign shareholders would agree to this, but Danish shareholders would be in the minority again, so we're just overruled again and again. So don't do this, you're a Danish company, and you should continue to be a Danish company with capital D.

Thank you very much to Kjeld Bøjer. And I can inform you that this is an authorization to hold AGMs in Danish or English. So it's not a given that the AGM would be in English next year. It can be decided from year to year by the Board of Directors. Before the AGM, I could conclude what we had of proxies and personal votes. And I could see that there was an overwhelming majority voting in favor of this proposal. More than the 2/3 required of the votes cast as well as the share capital. And therefore, I can see no objections, and I can only conclude that this has been adopted, but I can see that Mr. Anders Nørskov wants to take the floor before I finish concluding.

In the Association of Danish Shareholders, we have many members who are above the age of 60. And not everyone has the linguistic competencies that it would take. And therefore, of course, we're not fighting against windmills here or already given majorities, but we just encourage you that if you should choose to hold AGMs in English, please do provide interpretation or make sure in one way or the other that Danish shareholders can also follow the proceedings.

And as I almost concluded, this proposal holds a great majority from the votes already cast, and I believe that the shareholders -- most of the shareholders in the room also support the proposal. And therefore, I can conclude that the proposal has been adopted by the necessary majority. And I can assure you that the comments and remarks that we have heard in this connection will be inserted into the minutes and will be taken into account in future. This leads me to Item 11 on the agenda, which is an authorization to the Chair of the meeting. Here, it is proposed that the Chair of the meeting, that is me with full right of substitution, be authorized to apply for the registration of the resolutions passed and to make any such amendments thereto as the Danish Business Authority may require or request as a condition for registration or approval as well as to continuously make and apply for registration of linguistic and other non-substantive adjustments to the company's Articles of Association. Does anyone wish to take the floor under this very interesting item? Mr. Kjeld Bøjer. Go ahead. Well, there are no other items on the agenda, I can tell you that. Someone does want to take the floor? No, we're not under any other business yet.

I just have one thing. I didn't take the floor earlier. But if this is to be approved by the Danish business agency, I don't really understand about the terminology here because you have used 2 different terms to designate the Chair of the meeting which was -- previously it was Chairman. And now we also want to be able to refer to women, but you have also chosen leader, the leader of the Board, you need to make up your minds.

Well, there is a legal angle to this. I just want to clarify. According to the law, it's called Chairman. And it's okay to use that denomination or that description or word. Anyone else? Kjeld Bøjer has asked for the floor.

This is not any other business. This is about the authority.

Is this about the authority?

To the Chair of the meeting. This is -- has to do with the buying of treasury shares. What authority is used?

I think we should just deal with this item first, and then we will deal with any other business after this. So now we have completed Item 11, and now it's 12, any other business. Thank you.

Buying treasury shares is interesting because here, it is possible to juggle with the business by members of Board and management. I suggest that in the 5-year review, you always indicate how much you have in your portfolio of treasury shares. How many shares have you got? And what did you pay for them? Because it depends on the book value, and it's important for the rest of us to be able to monitor what is actually going on. Buying your own shares, treasury shares. Well, it's a way of writing down the equity capital immediately with the value you have paid for what you bought of treasury shares. So DKK 100 million from -- in price for the treasury sales will mean a write down of equity of DKK 100 million. So we want to be able to see precisely what you do with the treasury shares. What will you use them for to sell them again or to write down your equity? And in accounts that have to be approved by shareholders, you also need to explain in detail what the nominal share capital that is held by shareholders is in size so that we can always check the book value by making our own calculations and get a good idea of the company. And you know the problem with the share price that it can actually be too high. And a couple of years ago, you had a high share price and there were people who bought this, and unfortunately, they lost an awful lot of money. So if shareholders get access to all this information, they can make their own calculations.

Thank you, Mr. Bøjer. Legally, if you do a purchase of treasury shares, you have to do this in accordance with a specific procedure, just for your information. Any other contributions under any other business, that is not the case. With these words, I find that we have exhausted the agenda. And this leaves me with one job, namely to say thank you for good order, and I am now finishing my job as Chairman of the Meeting, and I will hand over to the Chair of the Board.

Niels, thank you for those final remarks. And the last comment from me today should be a warm thank you, first and foremost, to the employees of Ambu. Your dedication, competence and will to lead is what makes Ambu an innovative and globally leading med tech company. Without you, no progress and no results. Of course, also, a warm thank you to Britt Meelby Jensen and the entire management team. You have successfully navigated market and turmoil and you have delivered results. Now the direction and the ambition has been set for the next phase toward accelerated profitable growth and the ambition of contributing to a more efficient health care sector. Thank you to my colleagues on the Board for the continued strong cooperation. We stand side-by-side with the management of Ambu on this ambitious growth journey. And not least, thank you to our shareholders, you who are here today and those of you following us online, your continued trust is the basis for us to invest in innovation and create long-term value. And finally, thank you to Niels Kornerup for again this year, having navigated us safely through the Annual General Meeting. We have big ambitions, and we have the strength to fulfill these ambitions. I hope to see all of you next year with even more strong results to celebrate. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]