Coloplast A/s Class B · OMXCOP:COLO_B
Coloplast A/s Class B — H1 2005/06 Earnings Presentation
18 slides from Coloplast A/s Class B's earnings presentation, May 2006
Slide 1: Coloplast A/S Investor presentation 1H 2005/06
Coloplast A/S Investor presentation 1H 2005/06
Slide 2: Forward-looking statements
2 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 statement
Slide 3: Income statement 1H 2005/06
3 Income statement 1H 2005/06 1H 1H mDKK 2005/06 2004/05 Index Net revenue 3,447 3,099 111 Net operating profit (EBIT) 568 409 139 Profit margin (EBIT %) 16% 13% Profit before tax 433 355 122 Tax payment -128 -117 109 Tax rate 30% 33% Group profit 305 236 129
Slide 4: Balance sheet and key ratios 1H 2005/06
4 Balance sheet and key ratios 1H 2005/06 1H 1H FY mDKK 2005/06 2004/05 2004/05 Equity 2,549 2,377 2,512 Invested capital 5,634 5,647 5,385 ROAIC, % 21 14 18 Return on equity, % 24 20 23 Equity interest, % 44 42 42 Free cash flow 54 366 919 Investments in tangible assets 185 216 399
Slide 5: Economic profit 1H 2005/06
5 Economic profit 1H 2005/06 • From this statement Coloplast reports economic profit on a quarterly basis • The improved EP is mainly due to higher earnings, but lower WACC and average NOA also had a positive impact. 300 285 21 21 EP ROAIC 1H 1H 250 228 213 221 215 20 mDKK 2005/06 2004/05 200 19 18
Slide 6: Exchange rate development 2001-2006
6 Exchange rate development 2001-2006 2001/02 2002/03 2003/04 2004/05 2005/06 115 113 rate of exchange average 2001/02 111 109 107 rate of exchange 105 average 1H 2005/06 rate of exchange 103 average 1H 2004/05 101 99 rate of exchange average 2002/03 97 rate of exchange rate of exchange average 2003
Slide 7: Growth rates 1H 2005/06 in local currencies
7 Growth rates 1H 2005/06 in local currencies Estimated Growth Growth ¤ Revenue market 1H 2005/06 1H 2004/05 1H 2005/06 growth Ostomy care 9% 9% 1,391 1-3% Continence care 16% 9% 901 4-6% Wound & Skin care 7% *8% 592 #8-9% Breast care 8% (1)% 235 (3)-(1)% Coloplast total 9% 7% 3,447 5-7% Europe 8% 5
Slide 8: European market growth - moist wound healing
8 European market growth - moist wound healing • European market growth for Market growth by segments, moist wound healing moist wound healing 70% technologies is declining, including in Germany and 60% UK 50% • Market for dressings with 40% silver is declining rapidly 30% • Data includes Q1 2005/06
Slide 9: Biatain - Ibu
9 Biatain - Ibu • Biatain - Ibu is the first wound dressing, which may reduce pain caused by tissue damage • The dressing has in-built ibuprofen that is released as the wound weeps • Potential global market of more than DKK 1 billion • Combines the Biatain foam dressing with Ibuprofen • Launched in
Slide 10: Reimbursement changes
10 Reimbursement changes • UK Department of Health Consultation • Suggest changes to existing system for reimbursement and remuneration • Proposed reduction of reimbursement prices • Ostomy care and continence care products -15% • Wound dressings -5% • Formal consultation process ended 23 January 20
Slide 11: Global Operations - Hungary
11 Global Operations - Hungary • 800 headcounts by April 2006 • DKK 2 billion sales value in 2006/07 • Utilisation is currently 80% • Estimated additional operating profit of DKK 150M compared to Danish manufacturing • Subsidy of approx. DKK 150M granted by Hungarian authorities Coloplast, Tatabanya
Slide 12: Global Operations - China
12 Global Operations - China • Currently 80 employees in operations, Zhuhai • 100,000 m2 site leased in Zhuhai for 50 years • Projected new facility of more than 50,000 m2 in three phases • First phase completed in June 2007 • 20,000 m2, incl. administration • DKK 80M, excl. machines • Activities wi
Slide 13: Acquisition of Mentor's urology business
13 Acquisition of Mentors urology business • Coloplast has signed an offer to acquire Mentor’s urology business for the amount of DKK 2,888M (USD 463M) • Mentor has received the positive opinion of the French works council after completed consultation. • Closing thus subject only to customary condit
Slide 14: Urology - strategic rationale
14 Urology - strategic rationale • An important move within the 2012 strategy Ö Enlarging the scope of our continence care business into urology Ö A solid position in the US urology market Ö Strengthening our European market position • Coloplast becomes a leading global supplier of a broad range of
Slide 15: Transaction summary
15 Transaction summary Acquisition price DKK 2,888M (USD 463M) Mentor urology business financials Sales (2006E) DKK 1,459M (USD 234M) EBITDA (2006E) DKK 262M (USD 42M) Multiples (based on 2006E) 2xsales/11xEBITDA Synergies DKK 50-75M One-time costs (18 months) DKK60-120M EP impact EP positive after
Slide 16: Expectations and long-term targets
16 Expectations and long-term targets 2005/06 Main one-off effects from: • Organic sales growth of around • Non-organic sales growth 10% in local currencies • Lower earnings on acquired • Profit margin of 12-13% finished goods • Investments in tangible assets of • Restructuring costs DKK 5-600M • De
Slide 17: Analysts' estimates 1H 2005/06
17 Analysts’ estimates 1H 2005/06 Net Operating Profit PBT mDKK sales profit margin High 3,446 557 16.3% 495 Mean 3,421 548 16.0% 474 Low 3,402 530 15.5% 451 Coloplast actual 3,447 568 16.4% 433 Index to mean 101% 104% 103% 91%
Slide 18: Coloplast
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