Ossur - Q4&FY Results 2014

Highlights Full Year 2014

• Net profit increased by 45% and amounted to USD 59 million or 12% of sales, compared to USD 41 million or 9% of sales in 2013.
• Sales amounted to USD 509 million compared to USD 436 million in 2013, corresponding to 18% growth and 5% organic growth, both measured in local currency.
• Bracing and supports sales growth in 2014 was 18% and 1% organic, both measured in local currency.
• Prosthetics sales growth in 2014 was 17% and 11% organic, both measured in local currency.
• Gross profit amounted to USD 323 million and 63% of sales, compared to USD 270 million and 62% of sales in 2013.
• EBITDA increased by 38% and amounted to USD 104 million or 20% of sales, compared to USD 75 million or 17% of sales in 2013. EBITDA margin adjusted for one-time expenses was 18% of sales in 2013.
• Cash generated by operations amounted to USD 98 million or 19% of sales, compared to USD 73 million or 17% of sales in 2013.
• Two small acquisitions were completed in the Asia-Pacific segment, APAC (previously referred to as Asia segment) during the year, which further strengthened the sales platform.
• The Board of Directors will propose to the Annual General Meeting in 2015 that the Company pays a cash dividend of DKK 0.12 per share for 2014, an increase of 20% from 2013 and equivalent to 14% of net earnings in 2014.
• The Board of Directors will also propose to the Annual General Meeting to reduce the share capital by cancelling 7,456,755 of the Company's own shares.

Highlights Q4 2014

• Net profit increased by 5% and amounted to USD 15 million or 12% of sales, compared to USD 14 million or 11% of sales in Q4 2013.
• Sales amounted to USD 129 million compared to USD 128 million in Q4 2013, corresponding to 6% growth and 5% organic growth, both measured in local currency.
• EBITDA increased by 7% and amounted to USD 26 million or 20% of sales, compared to USD 24 million or 19% of sales in Q4 2013. EBITDA growth amounted to 14% in local currency in the quarter.
• Cash generated by operations amounted to USD 29 million or 23% of sales, compared to USD 29 million or 22% of sales in Q4 2013.
• In November 2014, Össur purchased 9,863,578 of its own shares (2.2% of the Company's share capital) for USD 29 million.

Financial Guidance for 2015

The financial guidance for the full year of 2015 is as follows:

• Total sales growth LCY in the range of 4-6%
• Organic sales growth LCY in the range of 3-5%
• EBITDA margin in the range of 20-21% of sales
• Capital expenditures in the range of 2.5-3.5% of sales
• Effective tax rate around 26%

Jón Sigurðsson, President & CEO, comments:

"We closed the year with yet another strong quarter despite adverse currency fluctuations which negatively impacted our operating results. This year has been excellent operationally with strong profitability and cash flow. We have successfully been harvesting from our efficiency improvement projects. Prosthetics sales growth was excellent across all our major markets and product lines with good contribution from the latest bionic product, RHEO KNEE^®3. Sales growth in bracing and supports was in line with expectations. Our continued emphasis on increased profitability from product rationalization efforts and focus on selling high end innovative products is yielding promising results."

Conference Call

Össur will host a conference call on Friday 6^th February 2015 at 10:00 CET/ 9:00 GMT/ 4:00 EDT. To participate in the call please dial:

Europe: + 45 3544 5580, +44 (0) 203 364 5374 or +46 (0) 8 505 564 74,

The United States: + 1 855 753 2230,

Iceland: +354 800 7416