Ypsomed Holding AG · SIX:YPSN
Ypsomed — FY2007/08 Earnings Presentation
39 slides from Ypsomed's earnings presentation, May 27, 2008
Slide 1: Presentation of Annual Results 2007/08
Presentation of Annual Results 2007/08 Solothurn, 27th May 2008
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 Annual Results 2007/08 y Highlights 2007/08 y Financials 2007/08 y Business Update and Outlook y Questions and Answers CEO Richard Fritschi 3
Slide 4: Patients - At the Core of our Business
Patients - At the Core of our Business 4
Slide 5: Ypsomed in 2007/08 – Back on the Road of Success
Ypsomed in 2007/08 – Back on the Road of Success y Net Sales increased by +3.6% to CHF 287.5 million and were diversified through the successful integration of the Florian Müller Group into the DiaExpert diabetes direct business. y Improvements of profitability at all levels: Gross profit margin inc
Slide 6: Key Financials 2007/08
Key Financials 2007/08 CHF million 2007/08 2006/07 Δ in % Sales of goods and services 287.5 277.5 3.6% Gross profit 90.2 64.2 40.4% Gross profit in % 31.4 23.2 Operating profit 31.0 2.3 1224.9% Operating profit in % 10.8 0.8 Net profit 26.6 2.7 869.5% Net profit in % 9.2 1.0 6
Slide 7: Diversified Revenue Basis with Growth Potential
Diversified Revenue Basis with Growth Potential CHF million 2007/08 2006/07 Δ in % Sales of goods and services 287.5 277.5 3.6% Segment "Delivery Devices" 228.4 242.0 -5.6% Segment "Diabetes Direct Business" (DDB) 59.0 35.4 66.8% Total sales 287.5 277.5 3.6% Segment DDB adjusted for acquisiton 40.4
Slide 8: DiaExpert – Diabetes Direct Business with New Brand
DiaExpert – Diabetes Direct Business with New Brand y Fast and successful integration of Florian Müller Group into DiaExpert operations. y DiaExpert with a unified new brand to convey our message as the leading customer focused diabetes service in Germany. Close Qualified Moving 8
Slide 9: Ypsomed’s Patents lead to Revenues & Agreements
Ypsomed’s Patents lead to Revenues & Agreements y Two non-exclusive license deals for auto-injector devices were signed with two major pharma companies, which will bring additional royalties revenues in the future. y Ypsomed mutually settled all pending disputes with Sanofi-Aventis and signed severa
Slide 10: Ypsomed’s Pipeline as of November 2007
Ypsomed’s Pipeline as of November 2007 Customer-specific developments Secured projects pre-projects with contract In close selection 10
Slide 11: Real Interest from Customers for Technology Platforms
Real Interest from Customers for Technology Platforms Project Pipeline as of May 2008: +2 more secured projects Secured projects Pre-projects with contract In close selection 11
Slide 12: Expanding the Business - Ypsomed India
Expanding the Business - Ypsomed India y India is the 4th biggest economy of the world. y According to WHO, the number of diabetics in India today is around 40.8 million. This number will double by 2025 to 75 million. y In less than 20 years there will be as many diabetics in India as the entire cur
Slide 13: Management – A Dedicated Team with Common Goals
Management – A Dedicated Team with Common Goals Verwaltungsrat CEO Recht & IP R. Fritschi B. Maurer Personal Corporate Y. Müller Development C. Rindlisbacher Finanzen & IT Marketing & QM & RA Operations CFO Sales COO N. Ramseier D. Jantos M. Mäder M. Meytre Technology M. Geist 13
Slide 14: Extended Management Team
Extended Management Team y Organizational changes include new Technology Division, Manufacturing and Logistics as well as the new “Infusion Business” Department. Board of Directors CEO Legal & IP R. Fritschi Dr. B. Maurer Human Resources Corporate Y. Müller Development C. Rindlisbacher Finance & IT
Slide 15: High Commitment and Attractive Perspectives
High Commitment and Attractive Perspectives y As of 31 March 2008 the Ypsomed Group employed a total of 1 210 employees. y Ypsomed increased its numbers of apprenticeship and offers exciting leadership, project management and technical careers. CH Outside CH 106 105 148 146 97 93 116 141 141 1150 11
Slide 16: Know-how and Dedication
Know-how and Dedication y The Know-how and dedication of our Employees are a key success for Ypsomed 16
Slide 17: Corporate Social Responsibility @ Ypsomed
Corporate Social Responsibility @ Ypsomed y Taking into account economic, ecological and social aspects as a core leadership and management concept when it comes to making business decisions. y Examples of Ypsomed’s initiatives in corporate social responsibility : y Ypsomed is supporting Dream Trust
Slide 18: Agenda
Agenda Presentation of Annual Results 2007/08 y Highlights 2007/08 y Financials 2007/08 y Business Update and Outlook y Questions and Answers CFO Niklaus Ramseier 18
Slide 19: Significant Improvement of Profitability on all Levels
Significant Improvement of Profitability on all Levels CHF million 2007/08 in % 2006/07 in % Δ in % Sales of goods and services 287.5 100.0% 277.5 100.0% 3.6% Cost of goods and services sold -197.3 -68.6% -213.2 -76.8% -7.5% Gross profit 90.2 31.4% 64.2 23.2% 40.4% Licensing revenues 2.3 0.8% 0 0.0%
Slide 20: EBITDA margin improved from 9.9% to 19.2%
EBITDA margin improved from 9.9% to 19.2% y Profitability comes from effectively managing costs at different levels: y Creation of the new Technology Division integrating R&D, Process Engineering, Industrialization and Customer Support. y Simplifying, centralizing and relocating logistics and infras
Slide 21: Strong Profit Per Share Leads to Par Value Repayment
Strong Profit Per Share Leads to Par Value Repayment y Profit Distribution of 25.4% equal to CHF 0.60 per Share as Par Value Repayment. CHF million 2007/08 in % 2006/07 in % Δ in % Operating profit 31.0 10.8% 2.3 0.8% 1224.9% Financial income 2.4 0.8% 2.7 1.0% -11.1% Financial expense -4.1 -1.4% -2.
Slide 22: Considerable Investments in R&D and Capex
Considerable Investments in R&D and Capex CHF million 31.03.2008 in % 31.03.2007 in % Assets Cash and cash equivalents 38.3 6.0% 40.7 6.5% Marketable securities 20.0 3.1% 25.5 4.1% Trade receivables 30.0 4.7% 33.8 5.4% Other current assets 11.2 1.8% 9.2 1.5% Current income tax assets 0.9 0.1% 1.3 0.
Slide 23: Equity ratio improved to 65.4% - No Bank Debts
Equity ratio improved to 65.4% - No Bank Debts CHF million 31.03.2008 in % 31.03.2007 in % Liabilities and equity Trade payables 16.9 2.7% 11.4 1.8% Prepayments from customers 6.4 1.0% 9.5 1.5% Current income taxes payable 1.9 0.3% 2.0 0.3% Other payables and accrued expenses 20.6 3.2% 16.1 2.6% Pro
Slide 24: Operating Cash flow rose by +118% to CHF 70.2 Mio.
Operating Cash flow rose by +118% to CHF 70.2 Mio. CHF million 2007/08 2006/07 Cash flow from operating activities before changes in net working capital 56.8 26.9 Changes in net working capital 13.4 5.3 Cash flow from operating activities 70.2 32.2 Purchases of fixed assets -42.7 -36.8 Purchase of i
Slide 25: Agenda
Agenda Presentation of Annual Results 2007/08 y Highlights 2007/08 y Financials 2007/08 y Business Update and Outlook y Questions and Answers CEO Richard Fritschi 25
Slide 26: 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 26
Slide 27: Ypsomed & Sanofi-Aventis Reach Important Agreements
Ypsomed & Sanofi-Aventis Reach Important Agreements y Ypsomed and Sanofi-Aventis have agreed that all pending patent disputes are mutually resolved. The companies have signed several agreements, whereby the two companies strengthen their long-lasting relationship. Sanofi-Aventis and Ypsomed have agr
Slide 28: Ypsomed to produce SoloStar pen for Sanofi-Aventis
Ypsomed to produce SoloStar® pen for Sanofi-Aventis y Ypsomed and Sanofi-Aventis have signed a new supplier and manufacturing agreement for a significant share of the supply of Sanofi-Aventis’ SoloStar® pen system. y An industrialization and build-up phase of 18 to 24 months will be required. y Ypso
Slide 29: New Pens Launched in 2007/08 Business Year
New Pens Launched in 2007/08 Business Year SymlinPen™ 60 y Ypsomed developed two systems of the Symlin disposable pen for Amylin Pharmaceuticals (USA). y Successful market launch in early 2008. SymlinPen™ 120 y Symlin™ is used along with insulin to help Type I and Type II diabetics enhance glucose c
Slide 30: Longstanding Customers and Wide Range of Products
Longstanding Customers and Wide Range of Products Insulin hGH interferon & EPO r-hFSH Preos Symlin ... and other partners 30
Slide 31: Expanded Distribution in the Pen Needle Business
Expanded Distribution in the Pen Needle Business y Pushing sales & marketing activities with focus on patented click-on mechanism. y Expanded distribution in existing and new countries, including the US, Malaysia, Singapore, Iran and Asia. y Development of a new safety pen needle for better protecti
Slide 32: Significant Expansion of Pen Needle Production
Significant Expansion of Pen Needle Production y Ypsomed is investing around CHF 35 million Capex in the expansion of the production capacity in Solothurn to strengthen the strategically important pen needle business. y Gradual start of the expanded production as from Q3/08. 32
Slide 33: Strategic Importance of the Diabetes Direct Business
Strategic Importance of the Diabetes Direct Business y Florian Müller and DiaExpert were successfully integrated and provide a perfect match in respect to products, services and geographical reach. y Nationwide coverage in diabetes direct sales and distribution in Germany. Ypsomed is the No. 1 provi
Slide 34: DiaExpert with New Brand
DiaExpert with New Brand YPS@MED SELFCARE SOLUTIONS DiaExpert Service schreibt man mit >< ch stirker. Ur Sie und thre thre kostenlose Servicenummer fur Beratung tir feeusdliches und Bestellung: 0800 3423973 www.diaexpert.de Das freundliche DiaExpert-Team Vertraute Gesichter: Viele im DiaExpert-Team
Slide 35: Ypsomed’s New Continuous Injection Device Activities
Ypsomed’s New Continuous Injection Device Activities y Ypsomed to develop new therapy concepts and devices for continuous insulin injection with a focus on certain type 2 diabetes patients. y The goal is to achieve a better metabolic control at reasonable costs. y Leading diabetologes confirm that Y
Slide 36: Ypsomed is confident about it future for good reasons
Ypsomed is confident about it future for good reasons y Worldwide innovation and technology leader with strong IP portfolio. y Many new customer projects advancing based on Ypsomed’s technology platforms. y New agreements signed with Sanofi-Aventis for own insulin pens OptiSet® and OptiClik® and in
Slide 37: Outlook for 2008/09
Outlook for 2008/09 y Expected total sales for 2008/09 at last years level. y Mid- to long-term sales potential in insulin pens, but lower volumes with OptiPen Pro, OptiSet and OptiClik during the build-up phase for the SoloStar® pen production in the next 12-24 months. y Strong organic growth expec
Slide 38: Agenda
Agenda Presentation of Annual Results 2007/08 y Highlights 2007/08 y Financials 2007/08 y Business Update and Outlook y Questions and Answers Key Dates June 25, 2008 in Grenchen Annual Shareholder Meeting November 6, 2008 in Burgdorf Presentation of Semi-Annual Results 2008/09 38
Slide 39: Questions & Answers
Questions & Answers YPSOMED SELFCARE SOLUTIONS 39