Ypsomed Holding AG · SIX:YPSN
Ypsomed — H1 2007/08 Earnings Presentation
42 slides from Ypsomed's earnings presentation, Nov 8, 2007
Slide 1: Presentation of Semi-Annual Results 2007/08
Presentation of Semi-Annual Results 2007/08 Burgdorf, 8th November 2007
Slide 2: Important Notice
Important Notice The information contained in this document has not been independently verified and no representation or warranty, express or implied, is made to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein.
Slide 3: Agenda
Agenda Presentation of Semi-Annual Results 2007/08 y Summary H1 2007/08 y Financials H1 2007/08 y Florian Müller Acquisition y Operations y Business Development y Strategy and Outlook y Questions and Answers 3
Slide 4: Ypsomed Summary H1 2007/08
Ypsomed Summary H1 2007/08 y Net Sales in the first half-year of CHF 134.5 million, + 4.3% to prior year. y Operating profit margin increased to CHF 12.7 million, equal to a 9.5% EBIT margin. y Ypsomed committed over CHF 40 million in Capex, especially for the extension of the pen needle production,
Slide 5: Key Financials H1 2007/08
Key Financials H1 2007/08 CHF million H1 2007/08 H1 2006/07 Δ in % Sales of goods and services 134.5 129.0 4.3% Gross profit 39.6 26.0 52.7% Gross profit in % 29.5 20.1 9.4% Operating profit 12.7 -5.3 Operating profit in % 9.5 -4.1 Net profit 11.4 -5.3 Net profit in % 8.5 -4.1 5
Slide 6: Overview by business line
Overview by business line CHF million H1 2007/08 H1 2006/07 Δ in % Segment «Delivery Devices» 110.2 112.1 -1.6% Segment «Diabetes Direct Business» (DDB) 24.3 16.9 43.3% Total sales 134.5 129.0 4.3% Segment DDB adjusted for acquisiton 19.6 16.9 15.9% Total sales adjusted for acquisition 129.9 129.0 0
Slide 7: Strong sales growth in pen needles
Strong sales growth in pen needles y Sales growth of Ypsomed pen needles in H1 2007/08 was more than 25%. Ypsomed Group - Sales pen needles 250% 203% 200% 150% 139% 99% 100% 69% 50% 41% 41% 27% 19% 18% 20% 0% H1 03/04 H1 04/05 H1 05/06 H1 06/07 H1 07/08 Growth rate prev.Year Growth rate since H1 02/
Slide 8: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Project Pipeline Customer-specific developments Secured projects pre-projects with contract In close selection 8
Slide 9: Agenda
Agenda Presentation of Semi-Annual Results 2007/08 y Summary H1 2007/08 y Financials H1 2007/08 y Florian Müller Acquisition y Operations y Business Development y Strategy and Outlook y Questions and Answers 9
Slide 10: Improved operational profitability
Improved operational profitability CHF million H1 2007/08 in % H1 2006/07 in % Δ in % Sales of goods and services 134.5 100.0% 129.0 100.0% 4.3% Cost of goods and services sold -94.9 -70.5% -103.1 -79.9% -7.9% Gross profit 39.6 29.5% 26.0 20.1% 52.7% Other income 2.3 1.7% 0.0 0.0% Research and devel
Slide 11: Earnings per share of CHF 1.01
Earnings per share of CHF 1.01 CHF million H1 2007/08 in % H1 2006/07 in % Δ in % Operating profit / (loss) 12.7 9.5% -5.3 -4.1% Financial income 1.8 1.3% 0.9 0.7% 91.2% Financial expense -0.8 -0.6% -1.3 -1.0% -36.0% Other non-operating income / (expense) 0.2 0.2% 0.0 0.0% 710.0% Profit / (loss) bef
Slide 12: EBITDA margin improved to 18.1%
EBITDA margin improved to 18.1% CHF million H1 2007/08 in % H1 2006/07 in % Operating profit / (loss) 12.7 9.5% -5.3 -4.1% Depreciation of fixed assets 10.8 8.1% 10.3 8.0% Amortization of intangible assets 0.7 0.5% 0.6 0.5% EBITDA 24.3 18.1% 5.5 4.3% 12
Slide 13: Balance Sheet
Balance Sheet CHF million 30.09.2007 in % 31.03.2007 in % 30.09.2006 in % Assets Cash and cash equivalents 21.7 3.5% 40.7 6.5% 32.3 5.2% Marketable securities 20.6 3.3% 25.5 4.1% 22.7 3.6% Trade receivables 37.4 6.0% 33.8 5.4% 39.3 6.3% Other current assets 10.8 1.7% 9.2 1.5% 9.7 1.6% Current income
Slide 14: Equity ratio of 64.7% - Solid Financing
Equity ratio of 64.7% - Solid Financing CHF million 30.09.2007 in % 31.03.2007 in % 30.09.2006 in % Liabilities and equity Trade payables 13.9 2.2% 11.4 1.8% 15.5 2.5% Prepayments from customers 1.3 0.2% 9.5 1.5% 10.9 1.7% Current income taxes payable 1.3 0.2% 2.0 0.3% 0.5 0.1% Other payables and ac
Slide 15: Cash Flow
Cash Flow CHF million H1 2007/08 H1 2006/07 Δ in % Cash flow from operating activities before changes in net work capital 24.8 5.7 335.6% Change in net working capital 3.3 0.6 Cash flow from operating activities 28.2 6.3 350.4% Investments in fixed assets -16.1 -21.2 Investments in intangible assets
Slide 16: Agenda
Agenda Presentation of Semi-Annual Results 2007/08 y Summary H1 2007/08 y Financials H1 2007/08 y Florian Müller Acquisition y Operations y Business Development y Strategy and Outlook y Questions and Answers 16
Slide 17: Strategic importance of the diabetes business
Strategic importance of the diabetes business Drug Diabetes Care: & Device y Local access to customers and opinion leaders Diabetes Care in various countries. Pen Needles y Acquisition of Florian Müller GmbH strengthens Ypsomed's diabetes direct business. Self-Injection Devices y Total diabetes dire
Slide 18: Benefits from the acquisition of Florian Müller GmbH
Benefits from the acquisition of Florian Müller GmbH y Florian Müller GmbH and DiaExpert have perfect match in respect to products, services and geographical reach in Germany. y Nationwide coverage in diabetes direct sales and distribution in Germany, with a special focus on insulin therapy and inte
Slide 19: Better sales diversification for Ypsomed
Better sales diversification for Ypsomed y The additional sales of Florian Müller GmbH will diversify Ypsomed's future sales base by around CHF 32 million per annum. y Sales contribution of Florian Müller GmbH in 2007/08 business year of estimated CHF 21.5 million. y Profitability to be improved ove
Slide 20: Agenda
Agenda Presentation of Semi-Annual Results 2007/08 y Summary H1 2007/08 y Financials H1 2007/08 y Florian Müller Acquisition y Operations y Business Development y Strategy and Outlook y Questions and Answers 20
Slide 21: Strong Growth in non-Insulin Pens
Strong Growth in non-Insulin Pens Insulin hGH interferon & EPO r-hFSH Preos Symlin ... and other partners 21
Slide 22: SymlinPen 60 & SymlinPen 120
SymlinPen™ 60 & SymlinPen™ 120 y Ypsomed developed two systems of the Symlin disposable pen for Amylin Pharmaceuticals (USA). SymlinPen™ 60 y Symlin® is used along with insulin to help Type I and Type II diabetics enhance glucose control and has the potential for weight loss. y The SymlinPen™ 60 all
Slide 23: Partnership with Sanofi-Aventis
Partnership with Sanofi-Aventis y Sanofi-Aventis has confirmed the order volumes for calendar year 2008 for the pen systems OptiSet®, OptiClick® and OptiPen® Pro. y The order volumes are lower than last year and uncertainty remains over order levels for OptiSet®, OptiClick® and OptiPen® Pro in the c
Slide 24: Strong Intellectual Property Portfolio
Strong Intellectual Property Portfolio y Two non-exclusive license deals for auto-injector devices were signed with two major pharma companies, which will bring additional royalty revenues in the future y Ypsomed‘s strong IP position will create additional revenues, secure profitability and enable t
Slide 25: Strategic co-operation with Adval Tech
Strategic co-operation with Adval Tech y Ypsomed expects this strategic cooperation to result in consistently high quality and precision of plastic components produced with the molds, reduced lead times and more extensive standardization of the molds used. y Injection molds and the associated techno
Slide 26: Corporate Structure 2007 incl. Florian Müller GmbH
Corporate Structure 2007 incl. Florian Müller GmbH Ypsomed Holding AG Burgdorf Ypsomed AG Ypsotec AG TecPharma Licensing AG Burgdorf/Solothurn Grenchen Burgdorf Ypsotec s.r.o Czech Republic Ypsomed GmbH feelfree GmbH Ypsomed BV Ypsomed AB Ypsomed SAS Germany Germany Netherlands Sweden France DiaExpe
Slide 27: Organisation 2007
Organisation 2007 VR-P V R CEO Legal + Intell. Property R. Fritschi Dr. B. Maurer Human Resources Y. Müller Corporate Development Finance /IT Marketing QM / RA Operations Dr.C. Rindlisbacher N. Ramseier & Sales D. Jantos Dr. M. Mäder M. Meytre Europe Production Solothurn J. Paul Technology H. Lehman
Slide 28: Number of Employees in CH and Europe
Number of Employees in CH and Europe y As of 30 Sept. 2007 the Ypsomed Group employed a total of 1’214 employees, including 45 from Florian Müller GmbH. CH Rest of Europe 106 105 148 97 93 116 141 141 1150 1106 1066 1042 942 817 656 728 31.03.2004 30.09.2004 31.03.2005 30.09.2005 31.03.2006 30.09.20
Slide 29: Agenda
Agenda Presentation of Semi-Annual Results 2007/08 y Summary H1 2007/08 y Financials H1 2007/08 y Florian Müller Acquisition y Operations y Business Development y Strategy and Outlook y Questions and Answers 29
Slide 30: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Drug & Device Distribution Diabetes Care Capabilities Pen Needles Innovation & Patents Technology Self-Injection Devices Competence 30
Slide 31: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Technology-Platforms Drug & Device Diabetes Care Customer-specific developments Pen Needles Self-Injection Devices 31
Slide 32: Technology Platform - Disposable Autoinjector
Technology Platform - Disposable Autoinjector y Test devices have been manufactured y Four potential customers interested y Intended product use: - For standard pre-filed syringes with staked needle y Functions: - Activation: "Push-on-skin" or "Button" - Full needle safety throughout y Features: - E
Slide 33: Technology Platform – New Reusable Insulin Pen
Technology Platform – New Reusable Insulin Pen y Test devices have been manufactured y Three potential customers interested y Intended product use: - For standard 3ml Insulin cartridges y Functions: - Reusable insulin pen - Automatic delivery, no force required y Features: - Simple cartridge exchang
Slide 34: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Drug Pen Needles: & Device y Patented click-on mechanism Diabetes Care y Push sales & marketing activities Pen Needles y Expansion of the pen needle production Self-Injection Devices y Development of a new safety pen needle for use in hospitals and clinical staff
Slide 35: Expansion of pen needle production
Expansion of pen needle production y The pen needle business is strategically important and Ypsomed aims to achieve further growth in this area. y Ypsomed is currently building a new clean room facility in Solothurn. y Total Capex of up to CHF 35 million within the next two years. y Implementation o
Slide 36: New safety pen needle by Ypsomed
New safety pen needle by Ypsomed y Product Features: - Safety: reduces the risk of accidental needle sticks - Patient anxiety: hides the needle before, during and after injection - Eliminates needle re-use y Application: - to protect healthcare professionals, patients and others against needle stick
Slide 37: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Drug Drug & Device: & Device y Combine Ypsomed’s technology competence with Diabetes Care distribution capabilities for insulin or other drugs (e.g. peptide hormones) to benefit from attractive margins Pen Needles within these growing market segments. y First exa
Slide 38: Agenda
Agenda Presentation of Semi-Annual Results 2007/08 y Summary H1 2007/08 y Financials H1 2007/08 y Florian Müller Acquisition y Operations y Business Development y Strategy and Outlook y Questions and Answers 38
Slide 39: Outlook
Outlook y Expected total sales for 2007/08 of up to CHF 280 million. y Sales of pen systems depend on further development with Sanofi-Aventis and development with SoloStar patents infringement case. y Strong organic growth expected in non insulin pen systems, pen needles and diabetes care with produ
Slide 40: Important Dates
Important Dates Key reporting dates: Presentation of Annual Results 2007/08 May 27, 2008 Annual Shareholder Meeting June 25, 2008 in Grenchen 40
Slide 41: Agenda
Agenda Presentation of Semi-Annual Results 2007/08 y Summary H1 2007/08 y Financials H1 2007/08 y Florian Müller Acquisition y Operations y Business Development y Strategy and Outlook y Questions and Answers 41
Slide 42: Questions & Answers
Questions & Answers YPSOMED SELFCARE SOLUTIONS 42