results’ summary h1 2016 - neuca...h1 2016 ebit [pln million] • ebitda profitability exceeding...

Warsaw, 29th August 2016

Results’ summary H1 2016

Agenda

page 2 | RESULTS’ SUMMARY | H1 2016

• Summary H1 2016

• Market and financial results

• Forecast execution

• New business areas

• Challenges for further quarters 2016

Results’ summary H1 2016


Gross margin

on sales

at the level 10.5%

in Q2

PLN 56.8 mn

net profit

with 6% growth YoY

PLN 73.9 mn

EBIT

with 14%

growth YoY

Growing market of pharmaceuticals’ wholesale


6.51

5.996.24

6.47

7.12

6.38 6.44 6.57

7.49

6.77

1.7%4.4% 4.9%

9.9% 9.3% 6.9%3.5% 1.6%

5.2% 6.3%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

Pharmaceuticals’ wholesale market value by quarters

and quarterly dynamics YoY Q1 2014 – Q2 2016 (PLN billion)

• Maintaining high level of market’s value growth

• Market growth took over mainly by the chain segment

2014 2015 2016

Market growth

in H1 2016

at the level

of 5.7%

NEUCA market position


Q2 2016:

29.9%

Q2 2015:

27.0%

NEUCA Group shares

in the segment of independent pharmacies

NEUCA Group shares

in the pharmaceuticals wholesale market

Q2 2016:

27.7%

Q2 2015:

29.3%

Our mission


We provide a better future to all

the independent pharmacies in

Poland.

Clients’ satisfaction* - NEUCA a quality leader

page 7 | RESULTS’ SUMMARY | H1 2016* Data come from the Monitor Apteczny published by IMS for Q2 2016

Complaint services

Telemarketing servicesTransport services Logistics services

4,54

4,14,04

NEUCA Pelion Farmacol

4,56

4,42

4,26


4,62

4,434,46


4,49

4,36

4,29


4,27

4,14

4,09


Regular offer Promotional offer

4,26

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| RESULTS’ SUMMARY | H1 2016

Range of productsContinuity of delivery

4,35

4,22

4,15


Clients’ satisfaction* - NEUCA a quality leader

* Data come from the Monitor Apteczny published by IMS for Q2 2016

Trade conditions Sense of security

4,43

4,34,27


4,45

4,34 4,34


4,41

4,28

4,23


Growth of interest in partnership programmes


832

1200

1H 2015 1H 2016

44%

272

412

1H 2015 1H 2016

52%

3529

4895

1H 2015 1H 2016

39%

over 41%of independent

pharmacies

participating

in the NEUCA Group’s

partnership

programmes


FINANCIAL

RESULTS

H1 2016

Sales revenues [PLN million]


1 698

3 583

1 675

3 534

2Q 2015 1H 2015 2Q 2016 1H 2016

-1.4 %

-1.4 %

• A slight decrease of sales revenues is an effect of conscious resignation from the least

profitable contracts in the segment of pharmaceutical chains

Gross margin


• Growth’s increase of the private label products and new businesses in the construction of the

Group’s margin

8,9

8,6

8,9

9,2

9,7

10,1 10,1

10,3

10,5

2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016

Gross margin on sales [%]

Operating profit and EBITDA*


EBIT

[PLN million]

• EBITDA profitability exceeding the level of 2.5% in H1 2016

PLN 88.9 mn

EBITDA

in H1

* The results do not include the non-recurring items

+ 11% YoY

25.8

65.6

28.9

74.0

2Q 2015 1H 2015 2Q 2016 1H 2016

12 %

13 %

Gross and net profit*


Gross profit

[PLN million]

Net profit

[PLN million]

25.5

63.8

28.3

72.6

2Q 2015 1H 2015 2Q 2016 1H 2016

+11%

+14%

21.5

54.6

21.6

56.8

2Q 2015 1H 2015 2Q 2016 1H 2016

+1%

+5%

* The results do not include the non-recurring items

• Lack of non-recurring items in H1 2016

• High basis for the net profit in Q2 2015 an effect of a significant tax optimisation

NEUCA profits compared with other distributors


NEUCA Group result’s share in the basket of net profits of the companies: Pelion, Farmacol and

NEUCA in 2009 – Q1 2016 (% /PLN million), excluding the non-recurring items

0%

10%

20%

30%

40%

50%

60%

70%

0

50

100

150

200

250

300

350

2009 2010 2011 2012 2013 2014 2015 1Q2016

basket of net results of three stock listed distributors (PLN mn) NEUCA net profit share (%)

20.7%

/179

mn

8.1%*

/155

mn

25.1%

/189

mn

29.3%

/243

mn 27.9%

/ 289

mn

34,7%

/ 249

mn

51,2%

/ 200

mn

59,6%

/ 59

mn

* Consolidated net result NEUCA cleared form the impact of

Prosper’s negative value

Cash flow [PLN million]


• Net indebtedness/EBITDA at the level of 1.2 with net indebtedness of PLN 195 million

22,0

27,3

PLN 102.1 mn

Sales growth of private label products


Sales revenues and number of SKUs [PLN million, items]

10.0

19.4

25.6

42.7

52.9

55

162

260

428448

1H 2012 1H 2013 1H 2014 1H 2015 1H 2016

Sales revenues Number of products at the end of H1

94%

32%

67%

24%

195%

60%

65%

5%

• Sales growth in H1 despite the planned slow-down in the dynamics of new products’ launches

• Portfolio optimisation and work on the products’ rotation growth in the pharmacies

Results’ growth of private label products


Net result

[PLN million]

9.6

12.1

1H 2015 1H 2016

+26%

Over 20%

segment profit

share in

the Group’s result

FORECAST

EXECUTION


Net result forecast's execution after H1 2016

page 20 | RESULT’S SUMMARY | H1 2016

GROUP’S NET PROFIT

56.8PLN million

52%*forecast

*Net result’s execution excluding the non-recurring items

Forecast for 2016:

PLN 110 mn

NEW

BUSINESS

AREAS


1

x

3

7


Świat Zdrowia primary care outpatient clinics

6

14

11

Number of clinics in a region

6

• Growth of the patients base by 34% since the beginning of 2016, hike jump sharp increase of

number of clinics

• Planned further investments in the current year

11

21

48

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2014 2015 I-VII 2016

Liczba przychodni Baza pacjentów (w tys.)


Clinical trials

• Creation of a common brand for the SMO companies within the Group

• Introduction of uniform standards and increase of the quality of tests

• Activity on the national market evaluated at PLN 1 billion

• 1000 patients in the trials in the companies within the Group vs 29 thousand in the country


Development of the initiative start-up projects

• Subscription sale of Mediporta

software

• Selection of new projects by the

NEUkubator team

3 investments

executed

in the last

several months

• Launch of Diabdis device

(May 2016)

• Creation of the e-commerce foundation on the

basis of Ortopedio.pl


Works on the platform for pharmaceutical online ordering

• Pharmaceutical’ booking and order pick-up in a selected pharmacy

• Possibility for individual pharmacies to service clients buying pharmaceuticals on-line

• Launch of a test phase in first pharmacies in Q4 2016

Pharmacy

Platform for pharmaceutical

ordersPatient

CHALLENGES

FOR FURTHER

QUARTERS OF

2016


Challenges for further quarters of 2016


FURTHER EXPANSION

OF PRIMARYT CARE

OUTPATIENT CLINICS

CHAIN

IMPLEMENTATION

OF NEW

IT TECHNOLOGIES

KEY

CHALLENGES

WORK ON

FURTHER

IMPROVEMENT

OF CLIENTS’

SATISFACTION

EXECUTION

OF BUDGET

TARGETS

CLINICAL TRIALS

- DEVELOPMENT

OF SCALE,

TELEMEDICINE

SERVICES AND

E-COMMERCE

USE OF SYNERGIES

IN NEW BUSINESSES

FOR PATIENTS

WORKS ON PLATFORM

FOR PHARMACEUTICAL

ORDERS

PRIVATE LABEL

PRODCTS

SALES INCREASE

THANK YOU

FOR YOUR

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results’ summary h1 2016 - neuca...h1 2016 ebit [pln million] • ebitda profitability exceeding...

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