company presentation - el.en groupfurther improvements in laser lipolysis and cellulite treatment...
TRANSCRIPT
CompanyCompany Presentation Presentation
INTERMONTENovember 29th , 2011
Certain statements in this slide show, including those addressing the Company’s beliefs, plans, objectives, estimates or expectations of possible future results or events, are forward‐looking statements. Forward‐looking statements involve known or unknown risks, including general economic and business conditions, and conditions in the industry we operate and may be affected should our assumptions turn out to be inaccurate. Consequently, no forward‐looking statement can be guaranteed and actual future results, performance, or achievements may vary materially from those expressed or implied by such forward‐looking statements. The Company undertakes no obligation about the contents nor to update the forward‐looking statements to reflect events or circumstances that may arise after the date hereof.
DisclaimerDisclaimer
1. THE GLOBAL LASER MARKET
2. EL.EN. GROUP
3. 9 M 2011 FINANCIAL RESULTS
4. 2011 GUIDANCE
SummarySummary
The Global Laser MarketThe Global Laser Market
LASERLASERLight Amplification Stimulated by Emission of Radiation
LASER Sources
LASER Systems
(Laser beam generator)
(Manage laser beam energy to perform several applications)
Communications31%
Data storage13%
Scentific and military6%
Industrial processing35%
Instrumentation & sensor
4%
Medical and aesthetic
7%
Pumps3%
Image recording1% Entertainement and
display0%
The Laser Market The Laser Market ‐‐ Total: $6.37 BillionTotal: $6.37 Billion
LASERLASER SourcesSources
ONLYONLY
Source: Laser focus World, 2010
Industrial Processing $ 2,2 B
Medical and Aesthetic $ 0,45 B
El.En.: Trademarks and MarketsEl.En.: Trademarks and Markets
MEDICAL INDUSTRIAL
Global Market for Medical Lasers by End Use, 2008‐2014 ($ Billions)
0
1
2
3
4
2008 2009 2014
Therapeutic
Diagnostic
The MEDICAL Laser MarketThe MEDICAL Laser Market
Medical w\o diagnostic:Surgical, Aesthetic, Ophthalmic, Therapeutic, Service and Accessories
$2,3B
Medical w\o diagnostic (Therapeutic) expected to grow to $3,7B in 2014
El.En. medical revenues (FY2010) are 65% of consolidated sales
Source: BCC Research
CAGR 13,3%
$1,9B$3,6B
Source: Medical Insight Inc (*) Listed campanies
The AESTHETIC Laser MarketThe AESTHETIC Laser Market
2008 2009 2010
$ 860M $618M $683M
‐28% +10%
Lumenis (Aesth)Cynosure (CYNO)(*)Cutera (CUTR)(*)Palomar (PMTI)(*)Syneron (ELOS) (*)Solta Medical (SLTM) (*)El.En. (aesth w/o Cyno) (*)
1) Aesthetic products market (including cosmetics products) is expected to grow by 12.3% @ $6.8 B
2) The skin tightening and body shaping systems market is expected to grow at the same rate, however average product prices are much higher in this segment.
Worldwide Aesthetic Product Sales ($ billions)
3,8
6,8
2009 2014
CAGR 12,3% CAGR 12,4%
The The AESTHETIC Laser Market SharesAESTHETIC Laser Market Shares
Revenues in $ M
2008 2009 2010El.En. Aesthetic/Medical $ 97.4 $ 72.8 $ 89.9Cynosure $ 139.0 $ 72.5 $ 81.5
Peer group Total $ 860.7 $ 617.7 $ 683.7
% El.En. 11.3% 11.8% 13.1%% Cyno 16.2% 11.7% 11.9%% El.En. Group (*) 27.5% 23.5% 25.1%
(*) market share calculation is based on information showed in the previous slide
The The INDUSTRIAL Laser MarketINDUSTRIAL Laser Market
Laser Systems Manufacturers Revenues ($M)
Laser Sources MarketRevenues ($M)
2008 2009 2010
Rofin Sinar $575 $349 $423
IPG $229 $185 $299
Coherent $599 $435 $605
Prima Industrie $477 $300 $325
Trumpf AG $2.161 $1.742 $2.631
Total $4.041 $3.011 $4.283
% YoY Change ‐25,5% 42,2%
El.En. (industrial) $43 $30 $44
Source: Laser focus World
Strategic StrengthsStrategic Strengths
Multidisciplinary and multifacility R&D activity:sources, systems, applications.
Covering both Medical and Industrial laser markets
IndustrialCombine High tech laser source development with flexible production facilities in high growth areas
MedicalMaximize market penetration by multi brandapproach
Open new markets by developing new applications
Leverage worldwide distribution
El.En. GroupEl.En. Group
Develops, manufactures and distributes laser sources and
laser systems for medical and industrial applications
Know‐how based on 30 years stratification of
multidisciplinary experience
Sept. 2011: Consolidated Revenues of €147 mln, up 9%
YoY, 1.069 employees
Global positioning
Group OverviewGroup Overview
High ‐Tech Industrial Group
Consolidated RevenuesConsolidated Revenues and EBITand EBIT
(*) EBIT 2006 w/o the one time $10M change Cynosure/Palomar
0
50
100
150
200
250
2000 2001 2002 2003 2004 2005 2006(*)
2007 2008 2009 2010 0911
Sales
‐15
‐10
‐5
0
5
10
15
20
25
EBIT
Sales EBIT
R&D ActivityR&D Activity
Clinical trials and validations of new therapeutic laser treatments and research on new applications of laser‐ tissue
interaction
Laser systems for regenerative medicine
Laser and ultrasound combination systems for minimally invasive surgery
Development of new cutting edge CO2 platform
High power surgical lasers
Integrated laser systems for skin ulcers treatment
Home use systems: Unilever project
Further improvements in laser lipolysis and cellulite treatment systems
Cutting and welding applications for 5 axes laser systems
R&D expensesR&D expenses
100 Researchers
5 R&D labs:Florence, Milan, Naples, Jena, Boston
30/09/10 30/09/11 Var.%
R&D expenses 9,055 10,876 20.1%
Percentage on group revenues 7% 7%
Grants 0,902 1,008 11.8%
Medical
ENT
Gynaechology
Urology
Endovascular
Onchology
Dermatology
Psoriasis and Vitiligo
Dentistry
Therapy
Medical/Medical/AAestheticesthetic
Aesthetic
Hair Removal
Vascular Lesions
Skin Rejuvenation
Pigmented Lesions
Treatment of Cellulite
Acne
Tattoo Removal
Anti ‐ Aging
LaserBody Sculpting
Removal of Unwanted Fat
CynosureCynosure
2002 70 % Acquisition share price $3,5
2003‐2004 Turnaround
2005 Nasdaq IPO, share price $ 15holding down to 35%
2007 Stock sale, share price $ 29holding down to 23%
2011 Eleme and ConBio acquisition share price $ 11
Control and consolidation allowed by a statutory clause
Strategic cooperation
CynosureCynosure
6.00%
4,167
20102008 2009 09/11
Sales of ex Cyno El.En. group to Cynosure (Euro 000)
12,560 4,365 4,602
% on ex Cyno Aesthetic sales 16.80% 7.80% 9.70%
R&D
Distribution
Smartlipo MPX – Triplex ‐ Cellulaze
Smartlipo ‐ Fractional CO2 – Tattoo Removal
0
10
20
30
40
50
60
70
80
Revenues Gross Margin Operating Costs
Sept 30th 2010 Sept 30th 2011
+29%+29%
+27%+27%
+25%+25%
USD
CynosureCynosure
MedicalMedical Laser:Laser: BreakdownBreakdown byby AreaArea
USA
24 31 25
65
2008 2009 2010 09/11
Italy
11 13 815
2008 2009 2010 09/11
Europe
5132 37
25
2008 2009 2010 09/11
Far East
30 3041 31
2008 2009 2010 09/11
IndustrialIndustrial Laser:Laser: BreakdownBreakdown byby AreaArea
Europe9
3 5 3
2008 2009 2010 09/11Italy
8 8 611
2008 2009 2010 09/11
America
36
44
2008 2009 2010 09/11
F ar Eas t
4 5
1113
2008 2009 2010 09/11
9 M 209 M 201111 Financial ResultsFinancial Results
Consolidated Consolidated P&LP&L –– 9 M 20119 M 2011
30/09/10 30/09/11 Var.%
unaudited unauditedRevenues 134.916 100,0% 147.330 100,0% 9,2%
Gross margin 72.261 53,6% 77.202 52,4% 6,8%
EBITDA 9.260 6,9% 7.853 5,3% ‐15,2%
EBIT 2.833 2,1% (65) 0,0%
Income before taxes 1.685 1,2% (768) ‐0,5%
31/12/10 30/09/11
Net financial position 74.900 42.669
Consolidated Consolidated P&LP&L ‐‐ 9 M 20119 M 2011 (w/o Cynosure)(w/o Cynosure)
30/09/10 30/09/11 Var.%
unaudited unauditedRevenues 92.993 100,0% 97.718 100,0% 5,1%
Gross margin 47.248 50,8% 48.561 49,7% 2,8%
EBITDA 8.666 9,3% 7.599 7,8% ‐12,3%
EBIT 5.354 5,8% 3.457 3,5% ‐35,4%
Income before taxes 4.261 4,6% 2.795 2,9% ‐34,4%
31/12/10 30/09/11
Net financial position 10.042 (3.826)
56.294 53.452
15.640 18.307
21.058 25.959
September 30th2010
September 30th2011
Industrial
Service
Medical
El.En. El.En. –– Revenues breakdownRevenues breakdown by businessby business
Medical
Industrial
Cutting
Marking
Laser sources
Aesthetic
Surgical CO2
Physiotherapy
Dental
MedicalAesthetic
Service
Cynosure
El.En
+23%
‐5%
+17%
9M 2011: +5%
6.817 5.690
3.372 4.005
31.901 30.984
3.1792.484
7.8837.548
3.1442.741
September 30th 2010 September 30th 2011
Accessories
Other MedicalLasers
Dental
Aesthetic
Physiotherapy
Surgical CO2
‐4%
‐17%
+19%
El.En. El.En. –– Medical and Aesthetic SectorMedical and Aesthetic Sector
MedicalAesthetic
Service
Cynosure
El.EnIndustrial
Service
Medical
9M 2011: ‐ 5%
‐3%
‐22%
‐13%
6.090 5.882
3.398 2.901
10.02415.178
1.546
1.999
September 30th 2010 September 30th 2011
Other
China & Brazil
Europe
Italy
+29%
El.En. El.En. –– Industrial SectorIndustrial Sector
MedicalAesthetic
Service
Cynosure
El.EnIndustrial
Service
Medical
+51%
‐3%
‐15%
9M 2011: +23%
2011 Guidance2011 Guidance
2011 forecast 2011 forecast –– El.En. stand aloneEl.En. stand alone
INITIAL FORECAST:Sales + 10%
EBIT% improvement
UPDATED:H2 EBIT > H1 EBIT (€3,2 Mln )
70
80
90
100
110
120
130
140
gen 10 apr 10 lug 10 ott 10 gen 11 apr 11 lug 11 ott 11 gen 12
Cynosure Inc. (Cl A) (Rebased) NASDAQ-100 Index (Rebased)
70
80
90
100
110
120
130
gen 10 apr 10 lug 10 ott 10 gen 11 apr 11 lug 11 ott 11 gen 12
El.En S.p.A. (Rebased) Italy All Stars (Rebased)
El.En. and Cynosure stockEl.En. and Cynosure stock performanceperformance
Cynosure
El.En
El.En. SPA
Enrico ROMAGNOLI Investor Relations Managertel. +39 055‐8826807E‐mail: [email protected]
POLYTEMS HIR SRL
Bianca FERSINI MASTELLONIFinancial Communication & Press officeTel. +39 06‐6797849 / +39 06‐69923324E‐mail: [email protected]