Medmix AG · SIX:MEDX
Medmix — Investor Presentation (November 2021)
32 slides from Medmix's investor presentation, November 2021
Slide 1: Investor Presentation
§ medmix Investor Presentation
Slide 2: Disclaimer
Disclaimer IMPORTANT The presentation has been prepared by medmix AG (“medmix”), the spun-off Applicator System (“APS”) division of the Sulzer Group for information and background purposes only. This document is not, and should not be construed as, a prospectus or offering document, and has not been
Slide 3: medmix overview
medmix overview Global footprint 13 ~1,900 employees Production, logistics and distribution sites CHF ~450m ~25% revenue (expected 2021) adj. EBITDA margin (expected 2021) >2.5bn Products per year ~900 active patents 3
Slide 4: Our aspiration and mission
Our aspiration and mission ASPIRATION Be the global leader in high precision delivery devices for the healthcare, consumer and industrial end-markets MISSION Providing innovative solutions to help millions of people live a healthier and more confident life 4
Slide 5: Our business
Our business Healthcare Consumer and Industrial Drug Dental Surgery Industry Beauty Delivery H1 2021 revenue 27% 9% 3% 34% 27% split Gold standard in dental Award winning, Pioneer in bone cement Leader in industrial Leading Microbrush mixing device systems proprietary injection mixing devices mixing
Slide 6: Our strategy and business model
Our strategy and business model Innovative, high-precision delivery devices in attractive Healthcare, Consumer and Industrial end-markets ▪ Attractive and resilient B2B niche markets Niche ▪ Exciting underlying macro growth trends leader ▪ Leverage trends across segments early ▪ Fragmented competiti
Slide 7: Our ESG commitment
Our ESG commitment Leveraging success in early adopter Beauty throughout all segments Successes in Beauty leading the way for other segments… …and driving our future commitments until 2025 ✓ Leading make-up supplier in CSR ranking of largest customer • Reduce CO2 footprint by 30% ✓ PCR and biobased
Slide 8: Key investment highlights
Key investment highlights 1 A global market leader in high-precision delivery devices in attractive niches 2 Attractive macro trends expected to drive strong growth across segments 3 A technology and innovation leader with strong IP, resulting in high entry barriers 4 Broad post COVID-19 end-market
Slide 9: A global market leader in attractive niches
1 A global market leader in attractive niches High-precision delivery devices to B2B customers Business area Addressed medmix market Addressable Revenue gross profit market5 share in market split margin 2020 addressed 2020 H1 2021 H1 20211 (CHFm) market 2020 (CHFm) medmix market position Dental 27%
Slide 10: Attractive fundamental macro trends
2 Attractive fundamental macro trends Expected to drive strong growth across segments Market growth forecast post Macro trends recovery to 2025E (CAGR)1,2 Main segment trends • Emerging markets shift away from hand- to device-mixing Growing Dental middle-class market 4% • Trend to unit-dose to avoid
Slide 11: Technology leadership
3 Technology leadership Backed by strong IP and innovation pipeline Industry leading innovations based on Strong legacy of setting industry standards end-customer understanding through continuous innovation • Inventor of dental mixing devices Selected independent innovation Co-development • Market s
Slide 12: Drug Delivery – Outlook 2025
3 Drug Delivery – Outlook 2025 Expected Drug Delivery revenue development Secured new products by API clinical stage CHF 100m Phase 1 Stage 2 Stage 3 Market Authorization Expected 2025 revenue split by indication Growth disorder and related Fertility Osteoporosis Others (eg pain, endocrinology) Diab
Slide 13: Broad post COVID-19 end-market recovery
4 Broad post COVID-19 end-market recovery… Market1 Market growth1 growth forecast 2019-2020 2020-2021E Key considerations • Temporary decline in dental market due to closure of dental practices Dental (~14%) ~14% • Recovery to 2019 levels expected by end of 2021 given strong recovery in core regions
Slide 14: Profitable growth track record with high, resilient margins
5 Profitable growth track record with high, resilient margins… Revenue and margin evolution (CHFm) Highlights FY19: CHF421m FY20: CHF351m H1-21: CHF228m 113 116 105 102 ▪ Track record of 25%+ adj. EBITDA margin 98 84 H1-21: ▪ Business area gross profit margin1 stable FY19: FY20: 68 49% throughout 20
Slide 15: …and further organic growth opportunities
5 …and further organic growth opportunities… Organic growth rates – 2016-2019 range Organic growth rates – mid-term ambition ▪ Drug Delivery ambition to reach CHF100m revenue within 5 years CAGR Approaching ▪ Beauty recovery under way CAGR 10% with Bechhofen site already 8% capturing new customers C
Slide 16: …supported by a strong balance sheet
5 …supported by a strong balance sheet Leverage ratio1 of ~1x for medmix post Transaction Net debt2 (CHFm) and leverage ratio (~1x) at split Considerations ▪ Capital increase targeting approximately CHF300m gross 399 proceeds concurrent with split (together "Transaction") to provide a sustainable ca
Slide 17: H1 2021 highlights
5 H1 2021 highlights Strong recovery in Dental and Industry, Beauty recovery slower Volumes up strongly, especially in Dental & Industry, due to underlying market growth in addition to customer restocking, pent up demand and market share gains Beauty recovery slower … strong project pipeline Drug De
Slide 18: H1 2021 results
5 H1 2021 results Profitability nearing pre-pandemic levels Key figures Order intake by segment Surgery Drug Delivery 3% 10% In CHF millions H1 21 H1 203 YOY adj.1 org.2 Order intake 269 160 67.9% 69.4% 53.3% Industry 36% Sales 228 166 37.5% 38.4% 25.8% adj. EBITDA 58 31 93.1% Dental H1 2021 margin
Slide 19: Motivated and experienced leadership team
6 Motivated and experienced leadership team Executive management 25 26 23 Girts Cimermans Jennifer Dean Friedrich von Gadow CEO CFO Head of HR Previously at: Previously at: Previously at: 27 20 16 21 29 32 18 26 Holger Arens Marco Linari Dominik Vonier Roman Thoenig Florent Lafond Paul Jutzi Levi Qu
Slide 20: Disciplined M&A with clear focus and active pipeline
Disciplined M&A with clear focus and active pipeline M&A focus – Healthcare M&A focus – China Niche ▪ Small to mid-sized companies in adjacencies leader ▪ Shanghai production facility focusing on export and international OEMs distributing in China − Strong own IP ▪ Need to be present in country with
Slide 21: Financial outlook
Financial outlook 2021E 2022E Mid-term ambition Revenue ~CHF450m High-single digit growth 8% CAGR organic (growth) adj. EBITDA ~25% >26% ~30% margin Similar level as FY21 in Capex1 ~9% of revenue ~7-8% of revenue % of revenue Tax rate 12-15% Mid-teens Dividend Dividend targeted not lower than CHF0.5
Slide 22: Wrap-up: Why invest?
Wrap-up: Why invest? ✓ High growth ✓ High margins ✓ Powered by technology 22
Slide 23: Appendix
4 medmix Appendix
Slide 24: Change ongoing – Delivering first results
Change ongoing – Delivering first results Lean, innovative and customer centric Lay the foundations ...with strong results Strengthen Healthcare segment Acquisition of Haselmeier ✓ Transform Beauty segment Expansion of Bechhofen facility and closure of Bamberg facility, adding full-service capabilit
Slide 25: Targets 2025 – Continuing in full swing
Targets 2025 – Continuing in full swing Lean, innovative and customer centric Ready for growth ...with specific initiatives and targets Further grow in Healthcare 20+ organic initiatives and active M&A pipeline Become a local player in China Acquisition opportunities identified for Beauty and Indust
Slide 26: Financial highlights
Financial highlights Attractive financial profile with substantial revenue growth and highly resilient margins 2021E revenue CHF450m ~25% adj. EBITDA margin Revenue growth Mid-term Healthcare share in revenue Adj. EBITDA margin target targets ~8% CAGR organic >50% ~30% Expected leverage post capital
Slide 27: Revenue by business area
Revenue by business area Growing across businesses Revenue by business area (CHFm) Highlights Adj. EBITDA 2019 25% 26% 19% ~25% >26% margin ▪ Consumer and Industrial revenue drop due to Beauty (halt in Quarterly development PMI1 product, influencers capturing growth from cosmetics 98 102 113 116 inc
Slide 28: Gross profit by business area
Gross profit by business area Resilient business area gross profit margin1 of ~45% Gross profit by business area (CHFm)1 Highlights Business area gross profit margin1 2019 medmix 44% 46% 46% ▪ Increase in business area gross profit margin1 due to Healthcare 65% 68% 64% Healthcare growth and operatio
Slide 29: Adjusted EBITDA
Adjusted EBITDA Growth in Healthcare drives adj. EBITDA margin increase Adj. EBITDA (CHFm) Highlights Adj. EBITDA 2019 25% 26% 19% ~25% >26% margin ▪ Growth in Healthcare and operational improvement led to increased adj. EBITDA margin 2020 ▪ Q2-20 collapse in demand amid closure of beauty retailers
Slide 30: Capex
Capex Capex (CHFm) Highlights Capex 2019-2020 7% 9% 12% ~9% 7-8% as % of revenue Depreciation ▪ Exceptional spend for Beauty transformation in Germany 4% 5% 7% as % of revenue ▪ Excluding exceptional spend, average capex as % of revenue of ~6% 43 2021E 36 ▪ Higher spend due to postponements during C
Slide 31: EBITDA adjustments
EBITDA adjustments CHFm 2018A 2019A 2020A Highlights Reported EBITDA 106 81 61 ▪ Closing of Bamberg facility and extension of Beauty transformation 3 22 2 Bechhofen facility One-off restructuring 0 3 2 ▪ Acquisition and integration one-offs Other non operational adjustments 5 3 0 ▪ Product line and
Slide 32: Historical financials summary
Historical financials summary CHFm 2018A 2019A 2020A Revenue 454 421 351 % growth - (7%) (16%) Business area gross profit1 201 195 162 % margin1 44% 46% 46% Gross profit 173 162 121 % margin 38% 39% 34% Adjusted EBITDA 114 109 66 % margin 25% 26% 19% Capex2 (30) (36) (43) % revenue 7% 9% 12% Notes: