q2 2015 presentation 23 july 2015 - …...2015/07/23 · net debt to ebitda 2,0 1,2 2,9 19...
TRANSCRIPT
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Q2 2015 PRESENTATION23 JULY 2015
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HIGHLIGHTSTHOMAS ELDERED, CEO
HIGHLIGHTS Q2
• Another quarter with solid progress+42% Net Sales growth (+40% LC)+58% EBITDA growth
• EBITDA-margin firmly established at a new level: 18%
• Development&Technology gaining further momentum
• Sterile Liquids better than plan
• Solids and Other with improvement potential
• Continued strong operating cash flow
• Acquisitions contribute significantlyShort term integration activities completed
• Partnerships and strategic investments
• New SEK 1.5 Bn bank loan secured (July)
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FINANCIAL HIGHLIGHTS Q2 2015
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Sales SEK 868 m+42%
Acquisitions contributed SEK 277 m (+45%)
Organic growth 1% (fix FX & excl Thyrosafe)
EBITDA SEK 156 m +58%
Acquisitions contributed SEK 72 m (+72%)
EPS SEK 1.50+13%
-200,0
0,0
200,0
400,0
600,0
800,0
1000,0
Q2 2014 Q2 2015
D&T Acq
D&T
MS-SO Acq
MS-SO
MS-SL Acq
MS-SL
NET SALES PER STRATEGIC BUSINESS SEGMENT
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MS-SL +59%
MS-SO +19%
D&T +90%
SEK 611m
SEK 868m
Sales 2014
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STRATEGIC INVESTMENTS DRIVING INCREASED IMPORTANCE OF MORE PROFITABLE SEGMENTS
Sales 2015
EBITDA 2014 EBITDA 2015
From Q2 2014
to Q2 2015
Sterile Liquids
Solids and Other
DevelopmentTechnology
Sterile Liquids
Solids and Other
DevelopmentTechnology
GROWTH INITIATIVES ON TRACK
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Growth in existing manufacturing footprint and capacity
High growth instrategic importantD&T
Portfolio outsourcing with asset acquisitions
Acquisition of CDMOs
Growth initiatives Track record 2015 H1
Strengthened sales organisation
2013-14 ~ 3% annual growth (constant FX)
+6 since 20072014: Corvette (IT)
Lusomedicament (PT)
Capacity expansion in manufacturing
Strong demand for freeze drying 100% utilization
Invest EUR 32m (decided 2013)
12% share of total sales 2014 originate from D&T projects.16% of Group sales Development of IP portfolio
+3 since 2007
2014: Pessac (FR)
Organic growth
Sequential growth in acquired businesses
168% increase vs. 2014(9% excl acquisitions)
23% of Group sales
Projects under review
OT Chemistry completed
Projects under review
Wasserburg expansion on track SEK 53 M in capex (139 since start)
TRANSFORMATIONAL ACQUISITIONS
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Corvette Group (IT)
265 HC
Steriles, inclfreeze
drying, API, IP
Financials2014 (PF)
Sales 554EBITDA 128
Lusomedicamenta (PT)
340 HC
Liquids, Opthalmics,
Effervescent products, IP
Financials 2014 (PF)
Sales 470EBITDA 120
Pessac (FR)
115 HC
Developmentservices, IP
OT Chemistry (SE)
35 HC
Integration of acquisitionscompleted in line with plan
Q2 2015Sales SEK 277mEBITDA SEK 72m
Sequential growthSales +2%EBITDA +16%
Discovery and
Developmentservices
Q4 2014 Q2 2015
ACQUISITION STRATEGY – CLEAR PRIORITIES
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MARKET
RELATIONSHIP
TECHNOLOGY
Pessac
MilanLisbon
TECHNOLOGY Freeze dried ampoules Injectable hormones Effervescent tablets Opthalmics Niche API’s Cytotoxics Pre-filled syringes
MARKET Europe North America India
RELATIONSHIP∼ 100 new customers
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FINANCIALSBJÖRN WESTBERG, CFO
(CURRENCY SEK MILLION)
0%5%
10%15%20%25%30%35%40%
MTRL EXT HC D&A OTH
2015
2014
P&L DEVELOPMENT
in relation to sales
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2015 2014Net Sales 868,5 610,9
EBITDA 155,9 98,917,9% 16,2%
D&A -57,9 -25,2
EBIT 98,0 73,7
Financial items -5,9 -0,9
Profit before tax 92,1 72,8
Tax -23,4 -24,7
Net profit 68,7 48,1
Q2 H1
42% SALES GROWTH IN Q2
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-20%
-10%
0%
10%
20%
30%
40%
50%
60%
Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215
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MANUFACTURING SERVICES – STERILE LIQUIDS
Sales Q2
2014 162Aquisitions +80FX effect +5Others +112015 258
EBITDA Q22014 38Acquisitions +18FX effect +1Others +62015 63
Sales increased by 59 % in Q2 vs LY+ Acquisitions generated 50%
EBITDA increased by 66% in Q2+ Acquisitions generated 48%+ Product and service mix
Sales H1
2014 325Aquisitions +157FX effect +14Others -42015 492
EBITDA H12014 74Acquisitions +37FX effect +4Others +142015 129
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MANUFACTURING SERVICES – SOLIDS AND OTHERS
Sales Q22014 391Acquisitions +101FX effect +8Distribution services -4Others -292015 467
Sales increased by 19% in Q2 vs LY+ Acquisitions added 26%- Discontinued distribution services- Competition in France of a large customer product- Less manufacturing of the large tender product (Thyrosafe)
EBITDA decreased by 9% in Q2 vs LY+ Acquisitions added 47% (24% EBITDA margin)- Reduced sales including Product mix effect
EBITDA Q2
2014 54Acquisitions +25One-off internal services -11Others -192015 49
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Sales H12014 773Aquisitions +173FX effect +18Distribution services -9Others -262015 929
EBITDA H12014 118Acquisitions +31Inventory effect Q1 2014 -12One-off internal services 2014 -22Others -372015 78
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DEVELOPMENT & TECHNOLOGYSales increased by 90% in Q2 vs LY+ Acquisitions added 115%- Reduced sales of tender product (Thyrosafe)+ Increased sales of other products
EBITDA increased by 127% in Q2 vs LY+ Acquisitions added 109%+ Positive product mix
Sales Q22014 99Acquisitions +114FX effect +1Tender product -39Others + 142015 189
EBITDA Q2
2014 26Acquisitions +28Others +52015 59
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Sales H12014 152Aquisitions +242FX effect +2Tender product -9Others +222015 409
EBITDA H1
2014 45Acquisitions +65Others +182015 128
0
200
400
600
800
1000
2014 Thyrosafe FX impact Organic growth
Acquisitions 2015
42% INCREASE IN NET SALES
16
-6% 2%
45%
21%
1/
1/ Currency translation effect
578
868
1%611
0
50
100
150
200
2014 "Old" business Acquisitions 2015
55% INCREASE IN EBITDA
17
-15%
72%
99
156
2015 PERFORMANCE
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1/ (Inventory+AR+Prepaid expenses and accrued Income-AP-Accrued expenses and prepaid income)/(12M Net sales)
KPIs 2015-H1 2014 -H1 2014 -FY
EBITDA margin (%) 17,9 16,9 15,5
Earnings per share (SEK) 4,22 3,34
Return on equity (%) 11,4 12,6 11,4
ROOC (%) 13,0 20,8 12,4
Equity to assets (%) 49,7 62,1 39,4
Net working capital to Sales (%) 1/ 23,2 21,7 27,3
Net debt (SEKm) 1 001 -405 1 164
Net debt to Equity 0,4 -0,3 0,5
Net debt to EBITDA 2,0 1,2 2,9
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CONCLUDING REMARKSTHOMAS ELDERED, CEO
A LEADING EUROPEAN CDMO
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ItalyLAINATE (Milan)● Freeze dried sterile beta lactam
antibiotics
MASATE (Milan)● Freeze dried products● Liquid fills
PADERNO DUGNANO (Milan)● API development
● Finished dose form development and manufacturing
Portugal
QUELUZ (Lisbon)● Solids● Liquids● Semi-solids
ODIVELAS (Lisbon)● Solids● Liquids● Semi-solids● Steriles
SwedenJORDBRO, HQ
HÖGANÄS● Solids (granulates
& powders)
KARLSKOGA● Semi-solids
SOLNA● Development
Services
STOCKHOLM● Solids
STRÄNGNÄS● Beta-lactams
(solid forms and dry syrups)
UPPSALA● Discovery and
development services
UKASHTON● Solids● Semi-solids● Inhalors
GermanyWASSERBURG● Freeze dried products● Steriles
FranceFONTAINE● Solids
MONTS● Steriles
PESSAC● Development
Services
Spain
PARETS● Solids● Semi-solids● Liquids
ON A MISSION TO BECOME A WORLD LEADING CDMO
• Presence in all major European markets
• Global supply
• Broad technology base
• High quality, high performance manufacturing facilities
• Access to competitive drug delivery technologies
• Technology and product development partnerships or joint projects
• Strong IP backed business
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CONCLUDING REMARKS Q2
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• Delivering on our strategy
• Overall performance well in line with plan
• Improvement opportunity in Solids and Other
• Benefitting from recent acquisitions
• Gearing up for further acquisitions and
geographic expansion
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Q&A
CONTACT INFORMATION
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Thomas Eldered
CEO & Managing Director
08-602 52 10
Björn Westberg
CFO & EVP Finance, Control & Investor Relations
08-602 46 20, [email protected]