Coloplast A/s Class B · OMXCOP:COLO_B
Coloplast A/s Class B — Investor Day (September 2009)
40 slides from Coloplast A/s Class B's investor day presentation, Sep 29, 2009
Slide 1: Towards our full potential
Coloplast Capital Market Day 2009 Towards our full potential Coloplast p Capital p Market Day y 2009 President & CEO Lars Rasmussen and Executive Vice President & CFO Lene Skole 29 September 2009 Towards our full potential Page 1
Slide 2: Forward-looking statements
Coloplast Capital Market Day 2009 Forward-looking statements The forward forward-looking looking statements contained in this presentation, presentation including forecasts of sales and earnings performance, are not guarantees of future results and are subject to risks, uncertainties and assumptions
Slide 3: Agenda
Coloplast Capital Market Day 2009 Agenda • Introduction to our Journey • Actions over the past 12 months • Towards our Full Potential • Deep dive into US opportunity 29 September 2009 Towards our full potential Page 3
Slide 4: We have set out on our journey - Towards our Full Potential
Coloplast Capital Market Day 2009 We have set out on our jjourney y- Towards our Full Potential Today Building 50 years of Challenged base for innovation business Towards our Full Potential profitable and growth model growth 2008/09 2009/10 onwards 29 September 2009 Towards our full potential Page 4
Slide 5: 50 years of innovation and growth has led to attractive leadership position in intimate healthcare
Coloplast Capital Market Day 2009 50 years of innovation and growth has led to attractive leadership position in intimate healthcare 50 years of …has has led to attractive innovation and growth… leadership positions Global no. no 1 in fundamentally attractive intimate healthcare market Global no
Slide 6: Our business model has been challenged by a set of external factors
Coloplast Capital Market Day 2009 Our business model has been challenged by a set of external factors… • Healthcare reforms in main European markets • Increasing competition • Challenging German market conditions • Shift in decision power from nurse to professional buyers 29 September 2009 Towards o
Slide 7: Further challenged by weak internal focus
Coloplast Capital Market Day 2009 … further challenged by weak internal focus • Unbalanced focus on revenue growth Target • Acceptance of underperformance within select business areas and regions • Weak link between strategy and execution Direction • Limited prioritization of tasks • Lack of organiz
Slide 8: During the last year, we have focused on Building a Base for Profitable Growth
Coloplast Capital Market Day 2009 During the last year, we have focused on Building a Base for Profitable Growth • Profit as a prerequisite for growth Target • Focus on balanced, profitable growth across all business areas and regions g • New Strategy gy developed p Direction • Introduction of the ‘
Slide 9: Finally, with our new Strategy developed, we have clearly set out the direction Towards our Full Potential
Coloplast Capital Market Day 2009 Finally, with our new Strategy developed, we have clearly set out the direction Towards our Full Potential 29 September 2009 Towards our full potential Page 9
Slide 10: Agenda
Coloplast Capital Market Day 2009 Agenda • Introduction to our Journey • Actions over the past 12 months • Towards our Full Potential • Deep dive into US opportunity 29 September 2009 Towards our full potential Page 10
Slide 11: Over the past months the entire organization has been executing on the Coloplast Agenda
Coloplast Capital Market Day 2009 Over the past 12 months the entire organization has been executing on the ‘Coloplast Agenda’ ‘Coloplast p Agenda’ g • Winning in Germany Growth • Sales S l efficiency ffi i • Focus on innovation • Profitable Growth in Wound & Skin Care Profitability • Reduce manufac
Slide 12: Winning in Germany progressing as planned
Coloplast Capital Market Day 2009 Growth Winning in Germany progressing as planned – “actions have been taken and results will show” • Hostile attacks, changes in reimbursement and an unclear business model brought us to a critical situation • All sections of the company have been evaluated and both
Slide 13: Implementation of Sales Force Efficiency on target in more than 15 countries
Coloplast Capital Market Day 2009 Growth Implementation of Sales Force Efficiency on target with execution in more than 15 countries by now We have been suffering New approach has from lack of structure in been implemented the sales approach in Top markets 1. Segmentation and targeting = Thousands
Slide 14: Example: Segmentation and Targeting helps us focus on high potential customers
Coloplast Capital Market Day 2009 Growth Example: Segmentation and Targeting helps us focus on high potential customers Each sales person gets a “Total Business Potential” ranked list of all their customers Example Name: Hans Hansen Specialty: Urology Private clinic: Address : Segment: A Total Busin
Slide 15: Focus on Innovation starting to show - increasing number of product launches
Coloplast Capital Market Day 2009 Growth Focus on Innovation starting g to show – increasing g number of product launches Better solutions to our customers in 08/09 • Sensura 2-piece 2 piece product extensions • Sensura Urostomy assortment • Peristeen anal irrigation for children • SpeediCath Contro
Slide 16: Three steps to establish Profitable Growth in Wound & Skin Care
Coloplast Capital Market Day 2009 Profitability Three steps to establish Profitable Growth in Wound & Skin Care 2010/11 2009/10 Accelerate profitable 2008/09 growth Prepare for profitable growth Simplify 9 29 September 2009 Towards our full potential Page 16
Slide 17: Simplification initiatives being implemented
Coloplast Capital Market Day 2009 Profitability Simplification p initiatives being g implemented p – full impact expected in 09/10 Simplify 2009 2010 Improving production efficiency Optimize sales force structure Adjust marketing support Simplify product portfolio Optimize pipeline Exit or transfer
Slide 18: A new Global Operations plan has been developed to Reduce Manufacturing Costs
Coloplast Capital Market Day 2009 Profitability A new Global Operations plan has been developed to Reduce Manufacturing Costs Reduce complexity of product portfolio Lower COGS Objectives in Global Operations Plan Reduce CAPEX Maintain ability to support innovation 29 September 2009 Towards our full
Slide 19: COGS improvement from production transfer of volume to Hungary and China
Coloplast Capital Market Day 2009 19 Profitability COGS improvement from production transfer of volume l tto to t Hungary H and d Chi China THI 2 ESP MOR 22 KVI HUM MN MAN 2 VH TAT NYI SAR ZHU Innovation & Competency Centre High Volume Production 29 September 2009 Towards our full potential Page 19
Slide 20: A targeted set of cost efficiency initiatives have significantly reduced the cost base
Coloplast Capital Market Day 2009 Profitability A targeted g set of cost efficiency y initiatives have significantly reduced the cost base % 50 43.8 • Reduced complexity within 42.0 40.8 42.6 40.1 37.8 40 organisation i ti • Execution on staff reductions 30 • Cost reduction program with 20 11.9 12.3
Slide 21: Furthermore we start to execute on minimizing Working capital
Coloplast Capital Market Day 2009 Process Furthermore we start to execute on minimizing Working capital Working Capital / Sales • Reducing number of production % 35 sites 30.0 30 28.4 28.2 27.7 • Reducing SKU’s 24.8 26.1 25 • Streamliningg European p 20 Distribution 15 • Standardising collection pro
Slide 22: We have delivered significant Performance improvement over the past 12 months
Coloplast Capital Market Day 2009 As a result,, we have delivered significant g Performance improvement over the past 12 months Sales Sales growth 1 1 growth EBIT-margin ROIC22 FCF1 ROIC FCF1 15% 5% 14% ~750 4% 12% 10% ~650 2007/08 9M 2007/08 9M 2007/08 9M 2007/08 9M 2008/09 2008/09 2008/09 2008/09
Slide 23: Agenda
Coloplast Capital Market Day 2009 Agenda • Introduction to our Journey • The results over the past 12 months • Towards our Full Potential • Deep dive into US opportunity 29 September 2009 Towards our full potential Page 23
Slide 24: Our mission, values and vision
Coloplast Capital Market Day 2009 Our mission Making life easier for people with intimate healthcare needs Our values Closeness… to better understand Passion… to make a difference Respect and responsibility… responsibility to guide us Our vision Setting the global standard for listening and respondi
Slide 25: Our new strategy is based on deep understanding of our markets, customers and current performance
Coloplast Capital Market Day 2009 Our new strategy is based on deep understanding of our markets, customers and current performance Strategic Themes Coloplast’s current performance Deep market and customer understanding 29 September 2009 Towards our full potential Page 25
Slide 26: The overall target of the Towards our Full Potential strategy is Profitable Growth
Coloplast Capital Market Day 2009 The overall target of the Towards our Full Potential strategy is Profitable Growth Old Strategy St t T Towards d our Full F ll Potential P t ti l Profitable f Growth growth • Focus on balanced, profitable growth across all business areas and regions • Profit as a pr
Slide 27: We have identified significant upside within all business areas and regions
Coloplast Capital Market Day 2009 We have identified significant upside within all business areas and regions Ostomy O t Care Leverage current position in Core European p markets – Selectively y Continence invest in RoW Care Wound & Skin Care Forcefully improve profitability, then invest to grow Uro
Slide 28: Underlying demografic development supports future growth
Coloplast Capital Market Day 2009 Underlying demografic development supports future growth 29 September 2009 Towards our full potential Page 28
Slide 29: In Surgical Urology growth will continue to come from the US
Coloplast Capital Market Day 2009 In Surgical Urology growth will continue to come from the US Key US market • Continue positioning in US urology market • Expand market reach • Launch of a number of new products 29 September 2009 Towards our full potential Page 29
Slide 30: In Wound Care we will focus our growth initiatives in key markets
Coloplast Capital Market Day 2009 In Wound Care we will focus our growth initiatives in key markets to drive profitable growth Key y markets • Launch of a number of new products over the next 24 months • Focus sales pressure on the growing community channel 29 September 2009 Towards our full potenti
Slide 31: We have optimised our cost structure - Focus is now on regaining growth
Coloplast Capital Market Day 2009 We have optimised our cost structure during the past year - Focus is now on regaining growth 2010/11 2009/10 Accelerate profitable growth 2008/09 Prepare for growth Simplify & reduce cost base 9 29 September 2009 Towards our full potential Page 31
Slide 32: Strengthening Biatain offerings within foam and silver will drive growth
Coloplast Capital Market Day 2009 Strengthening Biatain offerings within foam and silver will drive growth the next 24 months Market value split Market growth -1% 21% +16% 26% +9% 38% 15% -6% Market +6% HCD Foam Silver Other 29 September 2009 Towards our full potential Page 32
Slide 33: In Continence Care, growth will come from Europe and the United States
Coloplast Capital Market Day 2009 In Continence Care, growth will come from Europe and the United States United States Europe • Catheter Policy Change (from 4 to • Large variations in catheter usage 200 catheters per month) • According to Key Opinion Leaders users • We have the leading US catheter i
Slide 34: We will increase the positive mix effect from intermittent catheters
Coloplast Capital Market Day 2009 We will increase the p positive mix effect from intermittent catheters and outperform market growth …if market share is maintained at minimum Value split on product segments (DKK) FY0809 Market CAGR FY08/09-12/13 To enhance our market leader position in intermittent
Slide 35: Our strong heritage in innovation enables us to accelerate and distance competition
Coloplast Capital Market Day 2009 Our strong heritage in innovation enables us to accelerate the process and distance competition SpeediCath Control for SpeediBag for women using Continue C ti di distancing t i male catheter users SpeediCath Compact competition and offer (Launched Spring ‘09) (To be
Slide 36: In Ostomy Care, Coloplast will drive growth with focus on Europe
Coloplast Capital Market Day 2009 36 In Ostomy Care, Coloplast will drive growth with focus on Europe US and Emerging Markets Europe • US is the largest ostomy market in • Clear market leader position in the world – major untapped potential Europe with significant room to grow in selected markets •
Slide 37: Potential to gain market share in selected European markets
Coloplast Capital Market Day 2009 Potential to gain market share in selected European markets with strong innovation and education-offering Strong pipeline will ensure continued growth inside and outside Europe • Launch of new SenSura Uro-range in 2008/09 • Regular launches fulfilling unmet user nee
Slide 38: Opportunity to drive standard of care outside Europe
Coloplast Capital Market Day 2009 Opportunity to drive standard of care outside Europe Usage and number of stomas per year 150 85 55 20 Western US Europe 100 Avg. # of Avg # of units / stomas units / stomas Russia, 12 month ((’000) 000) month (’000) China China, Population: Population: Brazil 300m 3
Slide 39: In summary
Coloplast Capital Market Day 2009 In summary: We have focused on building a Base for Profitable Growth We have set out on our journey - Towards our Full Potential Our new strategy reconfirms our Long-term g Financial Targets g 29 September 2009 Towards our full potential Page 39
Slide 40: Agenda
Coloplast Capital Market Day 2009 Agenda • Introduction to our Journey • The results over the past 12 months • Towards our Full Potential • Deep dive into US opportunity 29 September 2009 Towards our full potential Page 40