Össur - ABGSC’s DK CEO WEEK feedback

Confident in H2’20 organic growth guidance ~-4% Full M&A pipeline and emerging markets opportunities Continued solid fundamental business outlook Markets adapting better to the second lockdown wave Today we had the pleasure of having Jon Sigurdsson, CEO of Össur, present during our CEO WEEK in Copenhagen. Jon mentioned during the call that the sales recovery they have seen over the last quarters has started to contract due to a new wave of lockdown’s across the US and Europe, he however notes that the sales are less effected now than during the first lockdown period in the spring, with much fewer O&P clinic closures. He furthermore reiterate that they are seeing sales growth in markets where the pandemic is under control, namely the APAC region. Based on this he is confident that the company will reach the ~ -4% midpoint to their current H2’20 guidance of 0 to -8% (ABGSCe -4.4%).

Increased interest from acquisition targets to join Össur As the case is based around acquired growth, it is positive that Jon reconfirms that they are seeing a full M&A pipeline of potential O&P clinics and distributors and an increased interest in joining Össur. This increased interest however, is not due to distress but Jon rather believes it is due to the realization that if something as uncertain as COVID-19 were to happen again, it could be beneficial for smaller companies to be owned by Össur. He furthermore confirmed that, while their strategic objective of forward integration into emerging markets, has seen some prolonging due to COVID-1,9 that they are progressing as aggressively forward as intended, with them recently entering Mexico with Japan to follow in early 2021.

Big companies, likely to become bigger While Jon reiterate that he does not see COVID-19 having had any fundamental impact on the underlying demand for O&P products and services in the long-term, he do believes that a structural change to the O&P industry at large will follow, wit....