Strategy

Ambu's strategy is named GPS Four and sets out a number of ambitious targets for the years 2009-2013.

GPS stands for:

Global
Ambu wants to be a truly global company. This will be realised by 2013 by Ambu having achieved considerable competitive advantages based on the company’s global sales approach, developing our production facilities in Asia and through improving efficiency.

Positioning
Ambu will, by 2013, be a focused and leading supplier of medico-technical single-use products for hospitals and the rescue services.

Systems
Ambu will, by 2013, have achieved significant improvements in efficiency through the implementation of global IT systems which support and strengthen sales, production, innovation and financial reporting.

The objectives are by 2013, to have achieved the following:

• Significantly higher revenue
• An increasing EBIT margin of up to 15%
• Leaner operations and thereby a reduction in net working capital
• A position as an innovative company

The objectives will be met by:

• Increasing Ambu’s ability to develop new and differentiated single-use products for the company’s core markets
• Streamlining Ambu’s production by centralising production in Asia and introducing considerable cost reductions
• Improving logistics and delivery systems
• Intensifying global sales efforts
• Investing in global IT systems
• Investing in employee development
• Making acquisitions

Ambu’s four focus areas

Based on profitable growth, increased innovation and improved efficiency, Ambu will, in the years leading up to 2013, make the most of both existing and new market opportunities. Particular focus will be on the following four areas – the four GPS coordinates:

GPS1: Products
During the years leading up to 2013, Ambu will launch significantly more products. The development of new products and product updates will take place in Denmark as well as in China and Malaysia.

The aim is for 30% of revenue to be generated by new products in 2013 and for approx. 5% of revenue to be invested in innovation.

GPS2: Markets
Ambu will strengthen its position in the USA, EMEA and Asia.

The sales organisations will be strengthened in general, among other things through the appointment of new and skilled salespeople and the efficient use of sales tools, including intensified marketing and more sales campaigns aimed at winning market share.

The American market, which is the largest market for health care products in the world, holds considerable growth potential, and Ambu will continue to increase its penetration of this market. Ambu will therefore be making more investments, among other things in IT, a new inventory management system, sales and marketing resources and the launch of differentiated products. At the same time, Ambu will actively look into possibilities for acquiring products and entering into partnerships.

In the markets in Europe, the Middle East and Africa (EMEA), Ambu will continue to increase the efficiency of sales.

In the coming period, collaboration with distributors in Eastern Europe and collaboration with existing distributors will be developed.

In the years leading up to 2013, Ambu will expand its own representation and enter into
partnership agreements in Asia.

GPS3: Efficiency
In all parts of the organisation, projects will be implemented which are aimed at improving business processes and increasing efficiency.

The implementation of new IT systems has already been initiated.

With a view to cutting costs and increasing efficiency, it has also been decided to move all production to China and Malaysia. China will thus become a new competence centre for spray moulding, while Malaysia will become a competence centre for electrodes and electronic single-use products.

GPS4: Acquisitions
The aim is still, by the end of 2013, to have made one or more major acquisitions which can increase Ambu’s market share within single-use products for hospitals, clinics and rescue services.