Coloplast A/s Class B · OMXCOP:COLO_B
Coloplast A/s Class B — Merger or Acquisition (March 2006)
20 slides from Coloplast A/s Class B's merger presentation, March 2006
Slide 1: Coloplast signs offer to acquire Mentor Corporation's urology business
Coloplast signs offer to acquire Mentor Corporation’s urology business Investor presentation March 2006
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: Overview
3 Overview • Coloplast has signed an offer to acquire Mentor’s urology business for the amount of DKK 2,888M (USD 463M) • Mutual signing of final agreement and closing is subject to customary conditions and in this period Mentor has granted Coloplast exclusivity • According to French law, a consulta
Slide 4: Coloplast's strategic framework towards 2012
4 Coloplast’s strategic framework towards 2012 Mission Values Corporate Objectives Customers Employees Society Shareholders Corporate Strategy Global Market Innovation Double-digit Value Creation Leadership Leadership Organic Growth Above Peers Business Areas Wound & Skin Ostomy Care Continence Care
Slide 5: Strategic rationale
5 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 urology and
Slide 6: Transaction summary
6 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 (USD 8-12M ) One-time costs (18 months) DKK60-120M (USD 10-20M) EP
Slide 7: Overview of Mentor's urology business
7 Overview of Mentor’s urology business - Actual figures, 1 April 2004 - 31 March 2005 Urology Business Sales: DKK 1,444M (USD 232M) Clinical and Urology Consumer Health Specialities Catheters Disposable Urology Women’s Health Men’s Health Brachytherapy 25% of total sales 45% of total sales 10% of t
Slide 8: Mentor's urology business - Facts
8 Lancing, UK Mentor’s urology business - Facts • Approximately 1,000 full time employees, including a sales force of more than 200 and more than 600 in operations • Sales and marketing organisation in 9 countries in Europe (ES, PT, FR, IT, DE, UK, BE, NL, LX), US, Sarlat, France CA, JP and AUS, wit
Slide 9: Continence Care Division establishes in urology
9 Continence Care Division establishes in urology Enlarging the scope of the current continence care business into urology by: • Strengthening the relationship with key decision-makers within urology • Leveraging the combined sales force with broader product and service offerings • Accessing related
Slide 10: Post-transaction competitive landscape
10 Post-transaction competitive landscape • Main urology device providers (US and Europe): European continence care • Coloplast, C. R. Bard (pre-transaction) 25% • AMS, Boston Scientific, Ethicon, AstraTech, Rüsch, B Braun, Hollister, Tyco 35% • Coloplast’s position • A leading global supplier of ur
Slide 11: A more balanced product portfolio…
11 A more balanced product portfolio… Annualised revenue by business area Annualised revenue by business area Current business areas Including Mentor’s urology business Other Other Breast care 5% 12% Ostomy care 6% Ostomy care Breast care 40% 35% 7% Wound & skin care Wound & 15% skin care 17% Urolog
Slide 12: … and a significantly enhanced geographical presence
12 … and a significantly enhanced geographical presence Revenue by geographical area, Coloplast Revenue by geographical area, Coloplast Sterling Medical Services excluded Mentor’s urology business included RoW RoW 7% 6% Americas Europe Americas Europe 9% 84% 16% 78% • Total sales in the Americas wou
Slide 13: Expectations and long-term targets to be adjusted
13 Expectations and long-term targets to be adjusted • Organic sales growth of around 10% in local currencies, 2005/06 excluding approximately DKK 450M (USD 72M) sales from the acquired activities • Operating profit margin (EBIT) of 12-13% • At least a doubling of economic profit (EP) every five 201
Slide 14: Post-merger corporate structure unchanged
14 Post-merger corporate structure unchanged Group Management Corporate Functions Matrix Ostomy Urology & Wound & Global Breast care Continence care Skin care Operations care Northern Europe Central Europe Southern Europe Americas Asia Pacific
Slide 15: Coloplast
Coloplast
Slide 16: Clinical and Consumer Healthcare - Catheters
16 Clinical and Consumer Healthcare - Catheters • Intermittent and indwelling bladder catheters, urisheaths and urine bags for the treatment of incontinence and retention • Similar to existing portfolio of Coloplast • Indications include spinal cord injured, multiple sclerosis, spina bifida, benign
Slide 17: Clinical and Consumer Healthcare - Disposable urology products
17 Clinical and Consumer Healthcare - Disposable urology products • Stents and catheters for kidney drainage and endo-surgical tools for removal of stones, prostate stents and catheters • 500 product families within upper and lower urology • Indications include kidney stones, benign prostate hyperpl
Slide 18: Urology Specialities - Women's health
18 Urology Specialities (Surgical Urology Business) - Women’s health • Vaginal slings for restoration of continence, and meshes for repair of pelvic floor weaknesses • Indication is primarily stress urinary incontinence (SUI) • Key call points are urologists and uro- gynaecologists • Mentor has the
Slide 19: Urology Specialities - Men's health
19 Urology Specialities (Surgical Urology Business) - Men’s health • Penile implants for erective dysfunction (ED) and testicular implants for cosmetic replacement after ablation • Penile implants are used when all other technologies are ineffective (pharmaceuticals, pump, injections) • 16,000 opera
Slide 20: Urology Specialities - Brachytherapy
20 Urology Specialities (Surgical Urology Business) - Brachytherapy • Radioactive seeds and needles for local minimal invasive radiation therapy of prostate cancer • Key products are radioactive isotopes, encapsulated in titanium containers and Isoloader workstations • Highly specialised sales force