2019 in brief


As a global market leader in non-invasive orthopaedics, Össur maintained its market position as the second largest player in both prosthetics and bracing & supports in the year 2019.

Financial highlights

Organic Growth

Organic growth

5%

ebida margin

EBITDA margin

22%

Net Profit Growth

Net profit margin

10%

nibd

NIBD/EBITDA

2.0x

Sustainability and CSR highlights

Female_leader

Recycled
waste

63%

Female_leader

Energy consumed from renewable sources

50%

Female_leader

Gender ratio

51% male
49% female

Female_leader

Management

38%

Female in management positions

Incident_rate

Incident Rate

0.6

Incident rate per 100 FTEs

employee_satisfaction

Global Employee
Satisfaction

4.5 of 5

Americas
48%

as % of sales

USD 328 million

Organic growth: 3%

FTEs: ~1,300

EMEA
44%

as % of sales

USD 304 million

Organic growth: 5%

FTEs: ~1,500

APAC
8%

as % of sales

USD 55 million

Organic growth: 19%

FTEs: ~200

HQ FTEs: ~500

Sales by segments

Revenue split by Segments

Prosthetics

Sales amounted to USD 378 million and grew by 7% organic.

We continued to see good performance in prosthetics with growth above estimated market growth. High-end products such as our carbon-fiber mechanical feet products and bionics continued to deliver strong growth in the segment globally. Growth in other product categories was also good during the year. Growth in EMEA was strong across the main markets. In the Americas, growth was good even though sales in the United States were impacted by lower than expected sales to a certain customer in the fourth quarter of the year. The impact is largely considered to be of a temporary nature. Growth in APAC was excellent with strong growth across the emerging markets.

Sales of bionic products amounted to 23% of prosthetics component sales, compared to 22% in 2018. The increase between years is attributed to strong performance of bionic products.

New prosthetic products introduced to the market during the year include, among others, the new PROPRIO FOOT. The product is the latest generation of the world’s first bionic ankle that offers enhanced features designed to reduce the risk of stumble and falls, and automatically detects the terrain, adjusting the ankle position in real-time. Other products launched during the year were additions to the portfolio upper-limb prosthetics and lower-limb carbon fiber feet.

Bracing and supports

Sales amounted to USD 308 million and grew by 3% organic.

High-end products such as the Rebound and Unloader product lines were the main growth drivers in the segment globally. Growth in EMEA and Americas was good, however sales were impacted by a competitive market environment in France and the United States. Growth in APAC continues to be strong.

New bracing & supports products introduced to the market during the year include, among others, the new Unloader One X. The product is the latest in Össur’s range of clinically proven OA knee braces that is designed to be effortless to wear and easy to use. Other products launched during the year include additions to our portfolio of collars and knee bracing.

Year in review

As pioneers of advanced technology, we believe in “Life Without Limitations“ and 2019 was once again a year filled with exciting milestones and achievements.

January

Team Össur member Markus Rehm nominated for Laureus World Sportsperson of the Year Award

RHEO KNEE XC wins the 2019 iF Design Award in the Medicine / Health category

New PROPRIO FOOT fully launched

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New PROPRIO FOOT fully launched

February

Team Össur Sarah Reinertsen featured in Nike’s ‘Dream Crazier’ Ad

Össur Formfit featured in Business Trends Magazine

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Team Össur Bebe Vio featured on the cover of WIRED Magazine in Italy

March

New Miami J Select fully launched

RHEO KNEE XC wins the Red Dot Design Award in the Product Design category

Össur Ambassador Jami Goldman Marseilles appears on The Doctors

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RHEO KNEE XC wins the Red Dot Design Award

April

Össur and the Danish National Olympic & Paralympic Committee announce partnership agreement

Team Össur Bebe Vio featured on the cover of WIRED Magazine in Italy

Össur Ambassador Dani Molina featured in Men’s Health magazine

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Team Össur Bebe Vio featured on the cover of WIRED Magazine in Italy

May

New Team Össur members featured in Japan Times

Life Without Limitations – new Össur global brand campaign launched

Össur featured in Outlook Magazine

Dr. Liam Fox, Secretary of State for International Trade in UK and the DIT Trade Commissioner Andrew Michel visit Össur Head Office

Össur Ambassador Lauren Wasser featured on the TODAY Show

Next

June

i-Limb featured on BBC news

First Ladies of Germany and Iceland visit Össur Head Office

Össur Ambassador Marko Cheseto featured in Runner‘s World article

Össur featured in THE TIMES feature on prosthetics and rehabilitation

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New Team Össur members featured in Japan Times

July

Össur Formfit Pro Knee Quest and Össur Formfit Pro Knee Flite introduced

Össur Ambassador Lauren Wasser featured in Women‘s Health Magazine

Team Össur Bebe Vio featured in global Nike Women campaign

Össur signs an agreement to acquire College Park Industries

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Össur Formfit Pro Knee Quest and Össur Formfit Pro Knee Flite introduced

August

Össur featured in Börsen article

Össur Ambassador Giusy Versace from Italy walked the red carpet at the Venice Film Festival

Team Össur Fleur Jong sets a new world record and PB: 100m in 13.16

FORBES article on Nike’s Para-Sport mannequins using Össur products

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Össur Formfit Pro Knee Quest and Össur Formfit Pro Knee Flite introduced

September

Study featuring Össur prosthetics published in Nature Medicine and other scientific journals

Successful Capital Markets Day held in Copenhagen and feature article in Börsen

Team Össur members visit Iceland

Unloader One X introduced

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Team Össur members visit Iceland

October

Össur participates in ISPO World Congress in Kobe, Japan

Össur featured in TIME Magazine

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Össur featured in TIME Magazine

November

Össur and Alfred Mann Foundation sign new agreement

Team Össur members excel at 2019 World Para Athletics Championships in Dubai

Össur Ambassador and double below-knee amputee Andrea Lanfri, climbed Putha Hhiumchuli in Nepal (7000m!)

Team Össur member Bebe Vio‘s Barbie unveiled

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Össur upper and lower limb prosthetics featured in an article in The Gardian

December

BBC program CLICK airs segment on Össur sports technology

Össur celebrates 20 years as a publicly traded company - Nasdaq closing bell ceremony in New York City’s Times Square

Digital Trends – live interview with Jon Sigurdsson, Össur‘s CEO

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20 years as a publicly traded company - Nasdaq closing bell ceremony in New York City’s Times Square

Letter from the CEO


As we look back on another successful year our customers and end-users continue to be top of mind. While the business continues to expand, we remain steadfast in our commitment to innovation and bringing new products and services to the market. In 2019 we launched more than 25 products and several incremental updates within both the prosthetic and bracing & supports segments. Our Bionic product portfolio benefited from the introduction of the new bionic ankle PROPRIO FOOT as well as the i-Limb Wrist, the first-ever wrist rotator of its kind. It’s very rewarding to see how well the new PROPRIO FOOT has been received in the market. Our team of dedicated engineers and scientists, partnerships with academic and clinical institutions, and an overarching desire to constantly improve and further develop our product portfolio has meant that we are able to successfully maintain our position as an innovation leader in our industry.

Another highlight of the year from a product perspective was the launch of the highly anticipated Unloader One X knee brace. Osteoarthritis (OA) is a growing epidemic and effective treatment can often be challenging as it is a long-term, incurable condition. The Unloader One X is the latest in Össur’s range of flagship OA braces and is based on biomechanical principles that have been tried and tested over twenty years. We will continue to build awareness for the clinical efficacy and cost effectiveness of knee bracing as a treatment option for OA patient, as we strongly believe not only in the product but also in the overall health economics that bracing has to offer.

It was equally exciting to see our products, end-users and employees receive global recognition in prestigious media outlets such as BBC, Forbes, TIME Magazine, Nature Medicine and more. At the heart of it all is a simple yet powerful message; Life Without Limitations.

Össur celebrated many milestones and achievements in 2019, one of them being our 20-year anniversary as a publicly listed company. To say the Company has evolved since its original listing in Iceland in 1999 would be an understatement. Utilizing the drive and determination that comes from our entrepreneurial roots we have delivered a 20% compounded annual growth rate (CAGR) the last twenty years. Through a healthy combination of organic growth and acquisitions, Össur has gone from being a niche player in the prosthetics industry to a global leader in non-invasive orthopedics. From 120 employees in 1999 to about 3,500 in 26 countries around the world at year-end 2019. A sought-after employer, business and clinical partner with continued growth on the horizon.

The 2019 financials were strong with organic sales growth of 5% and our EBITDA margin before special items amounted to 22%. Strong sales growth was primarily driven by excellent performance in the prosthetics segment and high-end solutions in both business segments. Favorable changes in the product mix and savings from ongoing efficiency initiatives continue to have a positive impact on profitability.

I am extremely proud to have led the Company during this transformational time. Former US President John Quincy Adams once said, “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” I, however, have no doubt that the end-users of our products are what drives all of us at Össur to dream more, learn more and do more every single day.

My sincere thanks to our employees, customers, end-users, and shareholders for making 2019 a great year for Össur. Our shared passion for improving people’s mobility will ensure continued success as we embark on a new decade.

Jon Sigurdsson

President and CEO

User Stories

Bertolt Meyer

The Musician and the Professor: Passion and Profession. These are just two of the many sides of Prof. Dr. Bertolt Meyer. He lives in Leipzig and seamlessly navigates between the factual world of the university on the one hand and the artistic world on the other. Confident and out of the box, Bertolt Meyer is a performer who loves and lives diversity - whether behind the turntable or the podium.

Recently, Meyer and a colleague published a study which shows how new bionic technology can change the stereotypes towards the disabled. “We can see that people wearing a bionic prosthetic are perceived completely different. Almost exactly like able bodied people. Bionic technology therefore offers a high value both functionally and psychologically.”

Prof. Dr. Bertolt Meyer was born without his left forearm due to a rare condition called Dysmelia. He uses a bionic hand prosthesis to compensate. His i-Limb Quantum is a multi-articulating prosthesis, which means that it offers five individually powered digits. Electrodes on his forearm register the muscle signals from the muscle he would usually use to bend his wrist and feed them to the prosthesis.

The prosthesis facilitates Bertolt’s life, especially the little, everyday things like tying shoelaces, cooking, typing, riding his bicycle and driving his car. However, the psychological benefit is also enormous. “The standard model you receive via the insurance system has a flesh colored plastic glove. You feel ashamed and people react with pity – a stereotype. Ever since I’ve worn the bionic hand, people show positive interest. This has influenced my own attitude towards my disability in a positive manner.”

Life Without Limitations means I can do exactly what I want to do.

Össur at a glance


We improve people’s mobility

Össur is a global leader in non-invasive orthopaedics; innovating, producing, and providing advanced technological solutions within the prosthetics and bracing & supports market. Our mission is to improve the mobility of our users, so they can live their Life Without Limitations.

Össur was founded in 1971 and has since grown through a healthy combination of organic development and acquisitions in both prosthetics and bracing & supports. Today, Össur has a strong global position in the industry and key markets, being the second largest player worldwide in both segments and in a good position to leverage future growth opportunities. Össur has been listed since 1999, has operations in over 26 countries and about 3,500 FTEs.

Our users are at the core of everything we do

Individuals can be living with limb loss or limb difference for a variety of reasons. Vascular disease, diabetes, trauma and congenital defects are some of the more common reasons. There are also individuals who develop knee pain, are diagnosed with osteoarthritis in their joints, incur fractures to their ligaments or injure themselves resulting in movement impairment. For years Össur has helped these individuals focus on new goals rather than limitations by offering comprehensive solutions that are designed with the needs of the user top of mind.

World class innovation capabilities

Össur is a pioneer of advanced technology where our brand recognition is based on innovative and scientifically proven solutions that deliver effective clinical outcomes. By listening and understanding people’s needs and pushing the boundaries of technology, we continue to create some of the best products and services available in the fields of prosthetics and bracing & supports. Every year Össur invests the equivalent of 5% of sales in R&D efforts to work on new innovative products for the benefit of our users. In 2019 we introduced more than 25 new products to the market.

Our segments

Össur operates within two market segments of the orthopaedic market: bracing & supports and prosthetics. Prosthetic products include artificial limbs and related products for amputees. Bracing & supports products are primarily used to support joints and other body parts, both for preventive and therapeutic purposes.

Our Segments

Prosthetics

55%

of total sales


Sub-segment User Profile Improving Mobility
Mechanical Products People living with lower extremity amputation Broad product offering for lower extremity prosthesis
Bionic Products People living with lower and upper extremity amputation Advanced microprocessor controlled feet, knees, hands and fingers

Bracing & Supports

45%

of total sales


Sub-segment User Profile Improving Mobility
Injury Solutions People recovering from fractures, ligament injuries or need a post operative treatment Products stabilizing joints and improving healing
OA Solutions People living with Osteoarthritis (OA) Non surgical treatment by unloading affected joint with braces

Our Segments

Prosthetics

52%

of total sales


Mechanical Products

User Profile

People living with lower extremity amputation

Improving Mobility

Broad product offering for lower extremity prosthesis

Bionic Products

User Profile

People living with lower and upper extremity amputation

Improving Mobility

Advanced microprocessor controlled feet, knees, hands and fingers

Bracing & Supports

48%

of total sales


Injury Solutions

User Profile

People recovering from fractures, ligament injuries or need a post operative treatment

Improving Mobility

Products stabilizing joints and improving healing

OA Solutionss

User Profile

People living with Osteoarthritis (OA)

Improving Mobility

Non surgical treatment by unloading affected joint with braces

Our products

Prosthetic solutions

Össur’s prosthetics portfolio includes a full spectrum of premium lower and upper limb prosthetic components. The portfolio ranges from solutions to support low active individuals who may struggle to maintain the ideal balance of safety, comfort, and mobility all the way to solutions designed to enable especially active people to engage in high-impact endeavors.

Bracing & supports

OA solutions

Össur’s osteoarthritis (OA) solutions are designed to enhance quality of life, reduce pain, and improve mobility for people living with osteoarthritis. Össur offers the Unloader One range of knee braces that relieve pain from knee osteoarthritis, as well as the Unloader Hip which is designed to reduce pain by optimizing load dispersion for patients suffering from mild and moderate osteoarthritis of the hip.

Injury Solutions

Össur’s injury solutions are designed for people recovering from fractures, ligament injuries or for those in need of post-operative treatment solutions. These solutions are designed to support the healing process of bone and soft tissue injuries. Several of these products come with the Functional Healing seal that signifies a clinically validated healing solution that helps enhance the body’s natural healing process while maximizing mobility.

Who are the users that benefit from our solutions?

Prosthetic Solutions

  • High and low active lower-limb amputees
  • Upper-limb amputees
  • Children living with limb loss
  • Athletes living with limb loss

Bracing & Supports

  • People that require post-operative treatment
  • People in rehabilitation for PCL ruptures
  • People requiring protection and joint stabilization
  • People with foot and ankle injuries that require immobilization
  • People with mild to severe osteoarthritis
  • People seeking treatment for venous ulcers and swelling

Össur 2019 Annual Report