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.

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

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

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.

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

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