Ypsomed Holding AG · SIX:YPSN
Ypsomed — FY2004/05 Earnings Presentation
48 slides from Ypsomed's earnings presentation, May 25, 2005
Slide 1: Presentation of 2004/05 Annual Results
Ypsomed Holding AG Presentation of 2004/05 Annual Results Solothurn, May 25 2005
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: Company Representatives
Company Representatives Willy Michel Chairman of the Board of Directors Matthew Robin CEO Ypsomed Niklaus Ramseier CFO Daniel Kusio Investor & Public Relations 3
Slide 4: Agenda
Agenda Presentation of the Annual Results 2004/05 Highlights 2004/05 Annual Results 2004/05 Outlook Product Innovation & Pipeline Questions and Answers Production Facilities Additional Information on company and products 4
Slide 5: Share Price (in CHF)
Highlights 2004/05 Ypsomed vs. SPI (22 September 2004 - 23 May 2005) 130 120 110 Share Price (in CHF) 100 90 80 70 60 22-Sep-04 22-Oct-04 22-Nov-04 22-Dec-04 22-Jan-05 22-Feb-05 22-Mar-05 22-Apr-05 22-May-05 Ypsomed SPI (rebased) 5
Slide 6: Highlights 2004/05
Highlights 2004/05 Sales growth of 21.7% to CHF 241.8 million Operating profit margin increased to 19.7% Profit per share of CHF 3.49 Launching of OptiClik® pen system with focus on the US insulin market 373 newly created jobs in the last 2 years, thereof 136 in the last year Full-year s
Slide 7: Agenda
Agenda Presentation of the Annual Results 2004/05 Highlights Annual Results 2004/05 Outlook Product Innovation & Pipeline Questions and Answers Production Facilities Additional Information on company and products 7
Slide 8: Strong Sales Growth in Core Business of 42.8%
Strong Sales Growth in Core Business of 42.8% CHF million 2004/05 2003/04 ǻ in % Sales of goods and services 241.8 198.7 21.7% Ypsomed own finished products 186.4 130.6 42.8% FreeStyle 20.7 46.3 -55.4% Other products 34.8 21.81) 59.2% 1) DiaExpert Germany since October 2003 part of Ypsomed 8
Slide 9: Profitability improved
Profitability improved CHF million 2004/05 2003/04 ǻ in % Sales of goods and services 241.8 198.7 21.7% Gross profit 96.9 75.9 27.7% Gross margin (%) 40.1 38.2 Operating profit (EBIT) 47.5 18.4 157.8% EBIT margin (%) 19.7 9.3 Net profit 39.2 14.0 179.1% Net profit margin (%) 16.2 7.1 1) After one-ti
Slide 10: New Jobs Created in Switzerland
New Jobs Created in Switzerland The number of employees increased from 797 to 933 within the last 12 months A total of 136 new jobs were created during the same period Sales per average fulltime equivalent CHF 286 037 933 797 116 141 560 118 817 Total Europe 656 442 Total CH 31.03.2003 31.03.2
Slide 11: Operating Profit improved to 19.7 %
Operating Profit improved to 19.7 % CHF million 2004/05 in % 2003/04 in % ǻ in % Sales of goods and services 241.8 100.0% 198.7 100.0% 21.7% Cost of goods sold -144.9 -59.9% -122.9 -61.8% 18.0% Gross profit 96.9 40.1% 75.9 38.2% 27.7% R & D reimbursed 6.0 2.5% 10.2 5.1% -41.2% R & D expenses -20.3 -
Slide 12: Impact of terminating FreeStyle
Impact of terminating FreeStyle Cost covered by Part of compensation with CHF million 2004/05 Abbott compensation impact on profit and loss Sales of goods and services 241.8 Cost of goods sold -144.9 6.7 1) Gross profit 96.9 6.7 R & D reimbursed 6.0 R & D expenses -20.3 R & D expenses net -14.3 Mark
Slide 13: EBITDA improved to 28.7%
EBITDA improved to 28.7% CHF million 2004/05 in % 2003/04 in % ǻ in % Operating profit (after goodwill amortization) 47.5 19.7% 18.4 9.3% 157.8% Amortization of goodwill 0.0 0.0% 14.7 7.4% -100.0% Amortization of intangible assets 0.8 0.3% 0.7 0.3% 13.6% Depreciation of fixed assets 21.0 8.7% 15.7 7
Slide 14: Net Profit more than doubled
Net Profit more than doubled CHF million 2004/05 in % 2003/04 in % ǻ in % Operating profit (EBIT) 47.5 19.7% 18.4 9.3% 157.8% Finance costs - net -1.9 -0.8% -1.2 -0.6% 61.5% Other income 0.0 0.0% 0.3 0.1% -87.0% Profit before taxes 45.7 18.9% 17.5 8.8% 160.5% Income tax expenses -6.5 -2.7% -3.5 -1.8
Slide 15: Healthy cash flows
Healthy cash flows CHF million Cash Flow from Operating Activities Cash Flow from Investing Activities 94.8 33.5 -39.7 -66.4 2003/04 2004/05 2003/04 2004/05 Cash Flow from Financing Activities Cash and Cash Equivalents 56.0 14.9 15.0 12.6 2003/04 2004/05 31.03.04 31.03.05 15
Slide 16: Cash Flow Statement
Cash Flow Statement CHF million 2004/05 2003/04 ǻ in % Cash flow before changes in NWC 69.2 50.2 38.0% Changes in net working capital 25.5 -16.6 Cash flow from operating activities 94.8 33.5 182.6% Cash flow from investing activities -66.4 -39.7 67.3% Changes in marketable securities -70.0 0.0 Decre
Slide 17: Advance payments of OEM Partners
Advance payments of OEM Partners thereof machinery CHF million 2004/05 of OEM partners Cash flow before changes in NWC 69.2 Changes in net working capital 25.5 27.1 Cash flow from operating activities 94.8 27.1 Purchases of fixed assets -71.5 -5.9 1) Disposals of fixed assets 6.1 5.9 1) Purchases of
Slide 18: Strong Balance Sheet due to successful IPO
Strong Balance Sheet due to successful IPO CHF million 31.03.2005 in % 31.03.2004 in % Cash and cash equivalents 56.0 8.5% 12.6 2.5% Marketable securities 69.6 10.6% 0.0 0.0% Trade receivables 39.6 6.0% 30.0 6.0% Other current assets 7.3 1.1% 13.0 2.6% Inventory 34.6 5.3% 37.7 7.5% Total current ass
Slide 19: Equity ratio of 54%
Equity ratio of 54% CHF million 31.03.2005 in % 31.03.2004 in % Trade payables 41.6 6.3% 16.8 3.4% Current income taxes payable 5.4 0.8% 3.9 0.8% Other payables and accr. expenses 18.4 2.8% 12.5 2.5% Total current liabilities 65.5 9.9% 33.3 6.6% Non-current finan. liab. to shareholder 218.1 33.1% 43
Slide 20: Agenda
Agenda Presentation of the Annual Results 2004/05 Highlights Annual Results 2004/05 Outlook Product Innovation & Pipeline Questions and Answers Production Facilities Additional Information on company and products 20
Slide 21: Ypsomed benefits from multiple growth factors
Ypsomed benefits from multiple growth factors Market & Sales Growth Motor-driven Pens Auto-Injectors Reusable Pens (Semi-) Disposable Pens Pen Needles Self-Medication Trend New Biotech Compounds Long-acting Insulin Diabetes & Insulin Emerging Countries Sedentary Lifestyle Ageing Population Drivers D
Slide 22: Benefit from growth in diabetes / insulin
Benefit from growth in diabetes / insulin Successful launch of OptiClik in the US Pen Users as a 100% percentage of insulin Very positive feedback from the market injection patients 80% Strong demand and high acceptance 60% Significant potential in the US market due to very low insulin pen-p
Slide 23: Growth Drivers for Ypsomed
Growth Drivers for Ypsomed New biotech applications are/will be injectable Pharma companies need differentiation Number of Products by Delivery Technology 15% 11% 13% 13% 12% 38% 35% 44% 58% 66% 50% 53% 42% 27% 24% Marketed Filed Phase III Phase II Phase I Injection Oral Other Source: Evaluate P
Slide 24: Focusing on core business
Focusing on core business Secure and expand no. 1 position as world leading independent partner for the pharmaceutical and biotech industry in the area of self-injection. Ypsomed can capitalise on favourable positioning with Valuable patents in core technology In-house development knowledge
Slide 25: Outlook: full-year guidance for 2005/06
Outlook: full-year guidance for 2005/06 Ypsomed is expecting strong underlying market growth. Ypsomed sales for the 2005/06 business year are expected to increase between 20% to 25%. Gross profit and operating margins are expected to improve from current levels through product mix, efficiency
Slide 26: Agenda
Agenda Presentation of the Annual Results 2004/05 Highlights Annual Results 2004/05 Outlook Product Innovation & Pipeline Questions and Answers Production Facilities Additional Information on company and products 26
Slide 27: Key Success Factor Innovation
Key Success Factor Innovation Innovation - devices must offer customers an advantage over competitors - devices must enable more drug substance to be sold - devices must cater for patient group and drug Æ ability to think beyond current technology barriers Æ competent assessment of what technologi
Slide 28: Injection pen needles
Injection pen needles Penfine® - Universal Pen Needle Fits all major brands of pens on the market Maximum handling convenience: Click- or twist-on, twist-off (Glue-free, welded construction) Largest range available: 6 mm x 31G 8 mm x 31G 10 mm x 29G 12 mm x 29G Patented click-on
Slide 29: Overview of Pharma Partnerships
Overview of Pharma Partnerships Insulin hGH interferon & EPO 29
Slide 30: Overview of Pharma Partnerships
Overview of Pharma Partnerships r-hFSH r-PTH Symlin ... and other partners 30
Slide 31: Semi-Disposable Pen
Semi-Disposable Pen OptiClik® Best of both worlds: ease of use / intuitiveness of disposable pen high-tech dosing mechanism and dose display of a reusable pen Lower up-front costs for product launch Higher drug price in disposable unit often possible Various dosing modules / generations (l
Slide 32: Auto-Injectors
Auto-Injectors Auto-Injectors Delivery from pre-filled syringes Infrequent delivery Full safety for doctors offices and home Easy to use; intuitive; "idiot proof" 32
Slide 33: Main Self-Injection Markets
Main Self-Injection Markets
Slide 34: Auto-injectors - ex. of the innovation process
Auto-injectors - ex. of the innovation process Today Requirements for Tomorrow No disposable auto-injectors for More and more liquid stable / therapeutic proteins on the market depot formulations, weekly or monthly injections Reusable devices old, cumbersome, painful and without needle safety
Slide 35: Auto-Injector Essential Requirements
Auto-Injector Essential Requirements Ypsomed's auto-injectors fulfil essential requirements Release mechanism which does not allow injection until the device is pressed against the skin Visual injection status and end-of-injection feedback Safe injection Comfortable injection Æ needle-safety
Slide 36: Auto-Injector Differentiation: Ypsomed's 2-Stage injection technology
Auto-Injector Differentiation Ypsomed's 2-Stage injection technology 25 Injection Skin penetration 20 18 15 15 14 1 Spring Force [N] Penetration force Injection force Start Start injection 10 10 8 8 7 5 0 0 5 10 15 20 25 30 35 40 45 50 Spring movement [mm] 36
Slide 37: Development History
Development History Reusable Auto- Disposable Auto-Injectors Injectors 2003: First Start 2001: First 2-stage functional models prototype 2003: First 2002-03: "push on skin" prototypes 2004: "Push on the skin" designs "Complex" Disposable 2004: 2005: "Button" design
Slide 38: Smaller is Better
Smaller is Better Reusable Auto- Disposable Auto- Injectors Injectors 21 23 171 152 30 30 171 240 23 153 32 19.5 171 125 38
Slide 39: … but not always
… but not always Disposable Auto-Injector Design The Triangle Triangular, pull-button Arthritis The Fish Oval, pull-button Arthritis, MS The Lipstick Slim, sleek General use 39
Slide 40: New Reusable Auto-injector
New Reusable Auto-injector Specifically designed for SSI's Ultra-Safe® Passive Delivery Systems Locking needle cover Î full needle safety during all stages of operation Two-stage injection process: drug deliver only starts after completion of skin penetration Interlock: firing button can onl
Slide 41: Patents
Patents Active patent application philosophy Patents held by TecPharma Licensing AG, an Ypsomed company over 150 patent families Priority Applications per Annum Granted Patents by Region 31 32 28 34 22 23 15 16 8 6 6 4 3 9 1 2 0 3 2 2 2 2 93 4 95 96 97 98 9 00 01 2 03 04 5 9 9 0 0 9 9 0 19 19
Slide 42: Important Dates
Important Dates Key reporting dates Annual shareholder meeting June 22, 2005 in Burgdorf Presentation of semi-annual results 2005/06 November 15, 2005 Selected congresses (pen & diabetes business) 05. - 08.6.2005 AAPS National Biotechnology Meeting in San Francisco 10. - 15. 9.2005 EASD in
Slide 43: Agenda
Agenda Presentation of the Annual Results 2004/05 Highlights Annual Results 2004/05 Outlook Product Innovation & Pipeline Questions and Answers Production Facilities Additional Information on company and products 43
Slide 44: YPS@MED Selfcare Solutions
LP» YPS@MED SELFCARE SOLUTIONS
Slide 45: Agenda
Agenda Presentation of the Annual Results 2004/05 Highlights Annual Results 2004/05 Outlook Product Innovation & Pipeline Questions and Answers Production Facilities Additional Information on company and products 45
Slide 46: Expansion of production capacity in Solothurn
Expansion of production capacity in Solothurn 46
Slide 47: Expansion of production capacity in Solothurn
Expansion of production capacity in Solothurn 47
Slide 48: Ypsomed Holding AG Brunnmattstrasse 6
Ypsomed Holding AG Brunnmattstrasse 6 P.O. Box CH-3401 Burgdorf / Switzerland Daniel Kusio, Head of Investor & Public Relations Barbara Mischler, Assistant Investor & Public Relations Tel +41 34 424 41 11 / Fax +41 34 424 41 55 www.ypsomed.com / [email protected]