Coloplast A/s Class B · OMXCOP:COLO_B
Coloplast A/s Class B — Investor Presentation (2006)
29 slides from Coloplast A/s Class B's investor presentation, 2006
Slide 1: Coloplast A/S Investor Presentation 2005/06
Coloplast A/S Investor Presentation 2005/06
Slide 2: Coloplast in brief
2 Coloplast in brief • Coloplast’s products and services help patients achieve greater independence from medical challenges in 4 areas, ostomy care, urology & continence care, wound & skin care and breast care • Target of 15% annual growth in value creation measured as economic profit • Value creati
Slide 3: History milestones
3 History milestones • 1957 Danish Coloplast A/S founded • 1978 International sales subsidiaries established • 1982 Product divisions established • 1983 IPO • 1989 Strategy - Coloplast’s role in the 1990s defined • 1994 Acquisition of Amoena Corp., US • 1995 Acquisition of Sween Corp., US • 1996 Acq
Slide 4: Revenue development 1957-2006
4 Revenue development 1957-2006 8000 7000 6000 5000 mDKK 4000 3000 2000 1000 0 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05
Slide 5: Coloplast has global presentation
5 Coloplast has global presentation M E E RD P O Argentina Denmark USA France Switzerland Germany Sweden Great Britain S RA PL V L Spain V T Holland
Slide 6: Three key customers
6 Three key customers The end customer • The user, primary concern is quality of life The health care professional • The advisor, primary concerns are user quality of life and handling The payer • Concern is primarily product pricing
Slide 7: External factors - Demand outlook
7 External factors - Demand outlook Demographics + Surgical and medical trends - /+ Reimbursement reforms - Health Care reforms Group buying and tender bid process - /+ Focus on overall treatment costs + Emerging markets + Distribution & Parallel import - The demand for products and services will co
Slide 8: Income statement 2005/06
8 Income statement 2005/06 DKKm 2005/06 2004/05 Index Net revenue 7,227 6,232 116 Gross profit 4,343 3,789 115 - Gross profit margin 60% 61% EBITDA 1,392 1,348 103 - EBITDA margin 19% 22% Net operating profit (EBIT) 955 1,000 96 - Profit margin 13% 16% Profit before tax 726 837 87 Tax -213 -272 78 D
Slide 9: Impact from acquisition of urology business
9 Impact from acquisition of urology business DKKm 2005/06 2006/07 2007/08 Integration costs 70 130 30 US relocation costs 60 30 0 Stock of finished goods 100 0 0 Depreciation of assets 50 150 150 Total impact from acquisition 280 310 180 • Synergies in 2005/06 were insignificant • In 2006/07, expec
Slide 10: Balance sheet, cash flows and key ratios 2005/06
10 Balance sheet, cash flows and key ratios 2005/06 DKKm 2005/06 2004/05 Invested capital 7,996 5,386 Net interest bearing debt 3,069 867 Equity, ultimo 2,804 2,512 Investments in tangible assets 415 399 Free cash flow, reported -2,027 919 - Free cash flow, organic business 604 919 - Free cash flow,
Slide 11: Expectations and long-term targets
11 Expectations and long-term targets 2006/07 • Sales growth of around 22% in local currencies of which around 9%-points will be organic growth • EBITDA margin of 18-19% and profit margin (EBIT) of 12-13% • Investments in tangible assets of DKK 700m • Corporate tax rate of 30% • Net costs of integra
Slide 12: Revenue development 2005/06 - business areas
12 Revenue development 2005/06 - business areas Growth Growth Revenue Market Growth in local currencies 2005/06 2004/05 2005/06 growth Ostomy Care 7% 9% 2,867 1-3% Urology & Continence Care 39% - 2,265 7% - Excl. urology business 14% 11% 1,835 - Wound & Skin Care 6% 12% 1,223 6-7% Breast Care 5% 6%
Slide 13: Revenue development 2005/06 - geography
13 Revenue development 2005/06 - geography Growth Organic Growth Revenue Growth in local currencies 2005/06 2005/06 2004/05 2005/06 Europe 11% 7% 7% 5,835 The Americas 50% 12% 13% 916 Rest of World 16% 12% 12% 476 Group net revenue 15% 8% 8% 7,227 • The divestment of Sterling 7% Medical Services aff
Slide 14: Ostomy Care
14 Ostomy Care market • For people who have lost their share (%) Europe RoW Americas normal bowel- or bladder function 100 Competitors • Almost 80% related to cancer 80 Coloplast • Main competitors are ConvaTec 60 and Hollister Inc. 40 • Ambition to become global market leader and to reach two- 28%
Slide 15: Ostomy Care
15 Ostomy Care 2005/06 2004/05 Q4 05/06 Q4 04/05 Revenue (DKKm) 2,867 2,657 754 711 Growth in local currencies 7% 9% 6% - • Revenue growth affected by situation in HSC - excluding sales from HSC, sales growth was approximately 12% • US revenue growth exceeded 20% • International launch of SenSura in
Slide 16: Urology & Continence Care - customer segmentation
16 Urology & Continence Care - customer segmentation Location OUTPATIENT CLINIC DAY SURGERY OPERATING ROOM WARD REGIONAL CENTRES Customer Nurses and Urology surgeons Urological surgeons Pre- & post-op Care Highly specialised Urologists Primarily Primarily open Nurses and urologists Endourology surge
Slide 17: Urology & Continence Care - market positioning
17 Urology & Continence Care - market positioning % of global market • Global market share in continence 15% consumables 20-25% • Global market share in urological specialties ~10% • Strong position in the US market established with the acquisition of the urology business • European market leadershi
Slide 18: Urology & Continence Care
18 Urology & Continence Care 2005/06 2004/05 Q4 05/06 Q4 04/05 Revenue (DKKm) 2,265 1,615 779 434 - Organic 1,835 1,615 463 434 - Acquired 430 0 316 0 Growth in local currencies 39% 11% 75% - - Organic 14% 11% 6% - - Acquired 25% 0% 69% - • Continued high organic growth - Catheters still growing wit
Slide 19: Urology & Continence Care - integration
19 Urology & Continence Care - integration Strategic rationale reconfirmed • Enlarging the scope of our continence care business into urology • A solid position in the US urology market • Strengthening of our European market position Status on key integration activities • Establish a new headquarter
Slide 20: Wound Care - global market
20 Wound Care - global market Wound type Acute Chronic Dry wound € 1.0 billion € 1.5 billion healing Product technology € 1.5 billion segment, growth 6-7% Moist wound healing € 1.0 billion € 1.5 billion Active Drugs and bio products € 0.2 billion € 0.5 billion VAC € 1.0 billion € 0.5 billion Compres
Slide 21: Wound & Skin Care
21 Wound & Skin Care 2005/06 2004/05 Q4 05/06 Q4 04/05 Revenue (DKKm) 1,223 1,137 316 308 Growth in local currencies 6% 12% 3% - • Successful launch of Biatain - Ibu • Revenue performance expected to return to double-digit growth in 2006/07 • Declining revenue performance primarily related to moist
Slide 22: Breast Care
22 Breast Care 2005/06 2004/05 Q4 05/06 Q4 04/05 Revenue (DKKm) 508 474 131 124 Growth in local currencies 5% 6% 7% - • For women who have had their breast removed, typically due to breast cancer • Sales growth according to expectations, driven by new products • Revaluation of the DKK 1 billion mark
Slide 23: Healthcare reforms
23 Healthcare reforms • UK Department of Health - live consultations • Proposes reduction of reimbursement prices on ostomy and incontinence appliances and changes to remuneration of services provided by appliance contractors, such as Charter Healthcare • Coloplast participates in the consultation p
Slide 24: Global Operations
24 Global Operations • Coloplast aims at achieving world-class manufacturing within the next three years • New factories located in China and Hungary • Production facilities in Denmark will be consolidated from six to three sites Number of employees in production 2006-2012 4.000 3.500 3.000 2.500 2.
Slide 25: Global Operations - Hungary and China
25 Global Operations - Hungary and China • 1,000 headcounts by November 2006 • DKK 2 billion sales value in 2006/07 • Approx. 7% EBIT improvement when relocating from Denmark • Subsidy of approx. DKK 150M granted by Hungarian authorities when establishing new factory in Eastern Hungary • 100,000 m2
Slide 26: Analysts' estimates 2005/06
26 Analysts’ estimates 2005/06 Net EBITii DKKm revenue EBITi margini PBTi High 7,374 998 13.8% 764 Mean 7,282 937 12.9% 731 Low 7,232 895 12.3% 689 Coloplast actual 7,227 955 13.2% 726 Index to mean 99 102 103 99 Based on estimates collected from 11 financial analysts
Slide 27: Forward-looking statements
27 Forward-looking statements The forward-looking statements contained in this presentation, including forecasts of sales and earnings performance, are not guarantees of future results and are subject to risks, uncertainties and assumptions that are difficult to predict. The forward-looking statemen
Slide 28: Urology & Continence Care - the product portfolio
28 Urology & Continence Care - the product portfolio consumables Continence Urology & Continence Care Continence Consumables Urological Specialties Intermittent Global market Coloplast global Global market Coloplast global Bowel Men’s Health Brachytherapy Catheters BDKK 3 market share BDKK 0,7 marke
Slide 29: MMS
aT MMS | MNES ee wp Coloplast