Ypsomed Holding AG · SIX:YPSN
Ypsomed — FY2012/13 Earnings Presentation
59 slides from Ypsomed's earnings presentation, May 28, 2013
Slide 1: Presentation of Annual Results 2012/13
Ypsomed Presentation of Annual Results 2012/13 Burgdorf, May 28, 2013
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 1. Introduction 2. Finances 3. Operations 4. Outlook 5. Questions and Answers 3 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 4: Ypsomed turns the tide
Ypsomed turns the tide Sales Total Sales Sanofi 2002/03 today tomorrow 4 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 5: An eventful first decade
An eventful first decade… 10 years ago following the sale of the pump business to Roche, Ypsomed broke away from Disetronic. Ypsomed pursued a consistent vision of “Ypsomed solutions make self-care simpler and easier”. Ypsomed enjoyed strong growth, but experienced problems because of dependen
Slide 6: Overview of the 2012/13 financial year: Ypsomed Delivery Systems
Overview of the 2012/13 financial year Ypsomed Delivery Systems Won new pharmaceutical customer in India, Lupin Ltd. for reusable insulin pen ServoPen®. The YpsoPen® Twist project – a low-priced, reusable insulin pen for emerging markets – is on track. The reusable “value” pen will be developed
Slide 7: Overview of the 2012/13 financial year: mylife Diabetescare
Overview of the 2012/13 financial year mylife™ Diabetescare The increase in customer numbers for mylife™ OmniPod® exceeded expectations: Sales nearly doubled Expansion into new countries (Austria, Sweden, Norway) Successful switch to 2nd generation The new mylife™ Unio™ blood glucose measuring s
Slide 8: Overview of the overall result for the year
Overview of the overall result for the year The operating result for the 2012/13 financial year for the Ypsomed Group is in line with the stated expectations: cost savings ensured the operating profit margin of 2.0% or CHF 4.8 million, and remained at the same level as the previous year. Consoli
Slide 9: Agenda
Agenda 1. Introduction 2. Finances 3. Operations 4. Outlook 5. Questions and Answers 9 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 10: Key figures for 2012/13
Key figures for 2012/13 In million CHF 2012/13 2011/12 Delta in % Sales of goods and services 244.6 248.6 -1.6% thereof Delivery Devices 137.8 153.4 -10.2% thereof Diabetes Direct Business 91.4 78.2 16.9% thereof Other 15.3 17.0 -9.8% Gross profit 57.1 56.4 1.2% Gross profit in % 23.3% 22.7% Operati
Slide 11: Strong growth within Diabetes Direct Business – Delivery Devices at a turning point
Strong growth within Diabetes Direct Business – Delivery Devices at a turning point In million CHF 2012/13 2011/12 Δ in % Delivery Devices 137.8 153.4 -10.2% Diabetes Direct Business 91.4 78.2 16.9% Other 15.3 17.0 -9.8% Sales of goods and services 244.6 248.6 -1.6% Sales of goods and services compr
Slide 12: Operating profit margin at the previous year's level
Operating profit margin at the previous year’s level In million CHF 2012/13 in % 2011/12 in % Sales of goods and services 244.6 100.0% 248.6 100.0% Cost of goods and services sold -187.5 -76.7% -192.2 -77.3% Gross profit 57.1 23.3% 56.4 22.7% Marketing and sales expenses -41.4 -16.9% -40.6 -16.3% Ad
Slide 13: Ypsotec is feeling the impact of the economic downturn
Ypsotec is feeling the impact of the economic downturn In million CHF 2012/13 2011/12 Δ in % Delivery Devices 9.5 13.8 -31.2% Diabetes Direct Business -2.9 -9.1 68.1% Other -1.7 0.4 -525.0% Operating profit 4.8 5.1 -5.7% The “Diabetes Direct Business” segment improved by around 70%, mainly because
Slide 14: EBITDA margin slightly down on the previous year
EBITDA margin slightly down on the previous year In million CHF 2012/13 in % 2011/12 in % Δ in % Operating profit 4.8 2.0% 5.1 2.1% -5.7% Depreciation of fixed assets 19.9 8.1% 19.6 7.9% 1.8% Amortisation of intangible assets 5.7 2.3% 8.1 3.3% -30.0% EBITDA 30.5 12.5% 32.9 13.2% -7.2% During the p
Slide 15: Additional tax demands affect net profit
Additional tax demands affect net profit In million CHF 2012/13 in % 2011/12 in % Δ in % Operating profit 4.8 2.0% 5.1 2.1% -5.7% Financial income 1.5 0.6% 7.9 3.2% -81.1% Financial expenses -3.3 -1.3% -3.4 -1.4% 2.6% Profit before income taxes 3.1 1.3% 9.7 3.9% -68.4% Income taxes -1.4 -0.6% -1.2 -
Slide 16: Current assets up on the previous year
Current assets up on the previous year In million CHF 31.03.2013 in % 31.03.2012 in % Assets Cash and cash equivalents 9.6 2.8% 9.7 3.0% Trade receivables 31.2 9.1% 24.5 7.5% Other current assets 4.5 1.3% 6.1 1.9% Prepayments and accrued income 6.2 1.8% 3.7 1.1% Current income taxes 0.1 0.0% 0.1 0.0
Slide 17: Solid financing structure with an equity ratio of 63.6%
Solid financing structure with an equity ratio of 63.6% In million CHF 31.03.2013 in % 31.03.2012 in % Liabilities and equity Financial liabilities 64.5 18.9% 46.5 14.2% Current financial liabilities to major shareholder 0 0.0% 10.0 3.1% Trade payables 16.7 4.9% 13.5 4.1% Prepayments from customers
Slide 18: Ypsomed invests in production facilities in Switzerland
Ypsomed invests in production facilities in Switzerland In million CHF 2012/13 2011/12 Cashflow from operating activities 15.2 31.3 Purchases of financial assets -0.4 -1.2 Disposal of financial assets 0.0 11.5 Purchases of fixed assets -15.9 -7.5 Disposal of fixed assets 0.5 0.6 Purchases of intangi
Slide 19: Agenda
Agenda 1. Introduction 2. Finances 3. Operations 4. Outlook 5. Questions & Answers 19 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 20: Operations
Operations Update on market and products Strategic success factors The right conditions 20 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 21: Update on market and products
Update on market and products Injection systems – Ypsomed Delivery Systems Diabetes care – mylife Diabetescare 21 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 22: Injection systems
Injection systems 22 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 23: Market news – new reusable pens during 2012
Market news – new reusable pens during 2012 Total market volume of 5-6 million pens per year. Novo goes electronic with its reusable pens and launches the Novopen 5. Sanofi launches the low-cost AllStar plastic pen. Lilly launches the Humapen Savvio with its metal case. No new pens from Ow
Slide 24: Market news – new disposable pens during 2012
Market news – new disposable pens during 2012 Approx. total market volume of 700 million pens from Novo, Sanofi, and Lilly Aggressive approach from Novo with NovoFlex pens: FlexPro (for Norditropin) and the new spring-loaded FlexTouch (for Novorapid). BD is marketing own disposable pen. Hase
Slide 25: Market news – new autoinjectors in 2012
Market news – new autoinjectors in 2012 Approx. total market volume of 45 million disposable autoinjectors. SHL still dominant (approx. 65%), bringing established technologies and production capacity to the market. BD has launched new Physioject with Medac for methotrexate. A few big pharmac
Slide 26: Market news – IDF still recommending use of insulin
Market news – IDF still recommending use of insulin before new forms of oral treatment in 2012 IDF (International Diabetes Federation) treatment algorithm for patients with Type 2 diabetes; 2012 26 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 27: YpsoPen Twist – now ready for industrial production
YpsoPen® Twist – now ready for industrial production, first consignment in July, major interest from customers 27 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 28: ServoPen – with Lupin Ltd. from India, more customers
ServoPen® – with Lupin Ltd. from India, more customers on the same platform 28 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 29: Tonghua Dongbao – partnership expanded
Tonghua Dongbao – partnership expanded 29 | Ypsomed Holding AG | Präsentation Jahreszahlen 2012/13
Slide 30: Tonghua Dongbao – training for a sales force of over 500
Tonghua Dongbao – training for a sales force of over 500 in Wuhan, central China 30 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 31: UnoPen disposable pen – fourth project almost agreed
UnoPen™ disposable pen – fourth project almost agreed and work now started on setting up a production line in Solothurn 31 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 32: YpsoMate – several projects with renowned pharmaceutical companies
YpsoMate™ – several projects with renowned pharmaceutical companies 32 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 33: Outlook for 2013 – securing the future and paving the way for growth
Outlook for 2013 – securing the future and paving the way for growth CHF 24 million of development expenditure for concepts, projects and ongoing developments in 2012/13. Similar level of expenditure planned for 2013/14. Investment of CHF 16 million in plant and equipment for pen systems and n
Slide 34: Update on market and products
Update on market and products Injection systems – Ypsomed Delivery Systems Diabetes care – mylife Diabetescare 34 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 35: Diabetes care
Diabetes care 35 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 36: Pen needles – market growing in volume, pricing pressure
Pen needles – market is growing in volume, but international pricing pressure means no real growth in value 36 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 37: Pen needles – capacity bottleneck resolved
Pen needles – capacity bottleneck resolved 37 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 38: Blood glucose measurement – market growth
Blood glucose measurement – market growth (in value) 38 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 39: Blood glucose measurement – established names
Blood glucose measurement – established names putting emphasis on accuracy 39 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 40: Blood glucose measurement – mylife Pura and mylife Unio
Blood glucose measurement – mylife™ Pura® and new mylife™ Unio™ multimeter Strip sales 19% up on previous year, sales 12% up on previous year. 40 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 41: Simply ingenious
Diabetescare Simply ingenious
Slide 42: Infusion systems – mylife OmniPod only tubing-free patch pump
Infusion systems – mylife™ OmniPod® remains the only tubing-free patch pump on the market 42 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 43: Infusion systems – new mylife OmniPod rolled out
Infusion systems – the new mylife™ OmniPod® was successfully rolled out across all Ypsomed markets 34% smaller 16% thinner 25% lighter – only 25 grams! 43 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 44: Infusion systems – mylife OmniPod sales performance
1.7.10 1.8.10 1.9.10 1.10.10 1.11.10 1.12.10 1.1.11 1.2.11 1.3.11 1.4.11 1.5.11 1.6.11 1.7.11 44 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13 1.8.11 1.9.11 1.10.11 1.11.11 1.12.11 mylife™ OmniPod® 1.1.12 1.2.12 1.3.12 1.4.12 1.5.12 1.6.12 1.7.12 Effective historical growth in te
Slide 45: Infusion systems – planning for 2014 launch of mylife YpsoPump
Infusion systems – planning for the 2014 launch of mylife™ YpsoPump® in full swing 45 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 46: Operations
Operations Update on market and products Strategic success factors (SSF) The right conditions 46 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 47: SSF – improving margins thanks to ongoing cost optimization
SSF – improving margins thanks to ongoing cost optimization Introduction of global packaging for pen needles. Expansion of production of infusion sets at AdvalTech in Mexico. Transfer of production of Ypsopen Twist to AdvalTech in China. Optimization of various internal processes, including
Slide 48: SSF – reducing dependencies by focusing on own products
SSF – reducing dependencies by focusing on own products and diversification Building on our status as a driver of innovation in the area of injection systems. Further widening customer portfolio, particularly in terms of injection systems for treating diabetes. Introduction of the low-cost, se
Slide 49: DiaExpert – available through a multitude of channels
DiaExpert – available through a multitude of channels and with a fantastic structure, easily Germany’s biggest specialist dealer of diabetes-related products 49 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 50: DiaExpert – divestment of third party products business
DiaExpert – divestment of business for third party products in Germany • Focus on self-manufactured products. • Ensuring survival of DiaExpert by retaining independence. 50 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 51: Operations
3. Operations Update on market and products Strategic success factors (SSF) The right conditions 51 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 52: The right conditions – we know what we are doing
The right conditions – we know what we are doing. We know the market. We are focused: have a clear strategy, divestment of DiaExpert. We are constantly working on our processes and looking for ways to improve. We have a vision of the future and are investing heavily in this: YpsoPump® and pe
Slide 53: The right conditions – satisfied and motivated employees
The right conditions – satisfied and motivated employees 53 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 54: Agenda
Agenda 1. Introduction 2. Finances 3. Operations 4. Outlook 5. Questions and Answers 54 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 55: Outlook for the 2013/14 financial year
Outlook for the 2013/14 financial year We are looking at around 10% growth in sales for the coming financial year. In terms of EBIT, annual profit is expected to almost double compared with the previous year. The first half of 2013/14 will see sales and EBIT remain at levels similar to the previ
Slide 56: Outlook – Willy Michel remaining as CEO
Outlook – Willy Michel remaining as CEO A turning point has been reached, but all areas will be trimmed further in the name of efficiency. The boom in biosimilars is opening up new opportunities for Ypsomed. The current changes and challenges in the market will require the continued presence of
Slide 57: Important dates
Important dates Annual General Meeting June 26, 2013 Presentation of semi-annual results for 2013/14 November 5, 2013 Presentation of annual results for 2013/14 May 27, 2014 57 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 58: Agenda
Agenda 1. Introduction 2. Finances 3. Operations 4. Outlook 5. Questions and Answers 58 | Ypsomed Holding AG | Presentation of Annual Results for 2012/13
Slide 59: Questions and Answers
Questions and Answers