Siegfried Holding Ag · SIX:SFZN
Siegfried — H1 2015 Earnings Presentation
25 slides from Siegfried's earnings presentation, Aug 19, 2015
Slide 1: Welcome
Welcome Media / Analyst Call HY 2015 August 19, 2015 1
Slide 2: Media + Analysts Call Half Year 2015
Media + Analysts Call Half Year 2015 Zofingen, August 19, 2015
Slide 3: Important Notice
Important Notice This document is solely for use in connection with the presentation held by Siegfried Holding AG. It is furnished to you solely for your information and you may not reproduce it or redistribute to any other person. The contents of this document are to be kept strictly confidential b
Slide 4: Agenda
1. Highlights HY/2015 2. Facts & Figures 3. Status, Strategy and Outlook Media / Analyst Call HY 2015 August 19, 2015 4
Slide 5: Highlights HY/2015
Highlights HY/2015 Highest sales since over 10 years — Sales of CHF 200.7 million, 21.5% increase in Swiss francs, or 25.0% in local currencies. — Profitability stable at a high level. EBITDA of CHF 34.6 million (+ 21.8%) and an EBITDA margin of 17.2% — Net income of CHF 20.1 million (10.0% margin)
Slide 6: Agenda
1. Highlights HY/2015 2. Facts & Figures 3. Status, Strategy and Outlook Media / Analyst Call HY 2015 August 19, 2015 6
Slide 7: Net sales Drug Substances Drug Products
Net sales CHF million H1 2015 H1 2014 Change CHF (LC) Drug Substances 130.6 126.4 +3.3% Drug Products 70.1 38.7 +81.0% Total 200.7 165.1 +21.5% (+25.0%) Comments — Sales w/o acquisition effect stable despite negative FX effects — Strong growth of Exclusive Synthesis (+28%) — Strong growth of Drug Pr
Slide 8: Sales Drug Substances and Drug Products
Sales Drug Substances and Drug Products Total sales H1 2015 broken down into Drug Substances and Drug Products 65% Drug Substances 35% Drug Products Media / Analyst Call HY 2015 August 19, 2015 8
Slide 9: Increase on all profit levels
Increase on all profit levels In CHF million 50.0 42.9 43.9 40.0 34.6 30.0 28.4 20.5 20.1 16.6 18.8 20.0 10.0 0.0 Gross profit EBITDA EBIT Net profit H1 2014 H1 2015 — EBITDA + 21.8% — EBIT + 23.2% Media / Analyst Call HY 2015 August 19, 2015 9
Slide 10: Stable EBITDA-margin
Stable EBITDA-margin In % 30.0% 20.0% 17.2% 17.2% 11.4% 10.1% 10.2% 10.0% 10.0% 0.0% EBITDA margin EBIT margin Net profit margin H1 2014 H1 2015 — Operating margins (EBITDA and EBIT) stable at a high level — Decrease in net profit margin due to higher financial expenses Media / Analyst Call HY 2015
Slide 11: P&L
P&L CHF million H1 2015 H1 2014 Net sales 200 707 165 136 Cost of goods sold – 156 759 – 122 266 Gross profit 43 948 42 870 Marketing and sales costs – 5 744 – 4 625 Research and development costs – 10 834 – 11 207 Admin and general overhead costs – 9 703 – 11 627 Other operating income 2 839 1 242
Slide 12: Cashflow statement
Cashflow statement CHF million H1 2015 H1 2014 Operating CF before changes in NWC 31 677 26 868 Change in NWC – 29 065 – 15 047 Operating CF 2 612 11 821 Purchase of PPE and intangibles (net) – 53 660 – 43 014 Acquisitions 0 – 12 832 Other investing activities 5 490 290 CF for investing activities –
Slide 13: FX situation H1 2015
FX situation H1 2015 — Strong natural hedge in H1 2015 of 90% combined over EUR and USD — Currency mix H1 2015 sales and costs appr. 1/3 EUR, USD and CHF — Strong USD partially compensating weaker EUR — As a result, only marginal effect on operating results Media / Analyst Call HY 2015 August 19, 20
Slide 14: Agenda
1. Highlights HY/2015 2. Facts & Figures 3. Status, Strategy and Outlook Media / Analyst Call HY 2015 August 19, 2015 14
Slide 15: Strategy Summary
Strategy Summary — Siegfried will be the leading player in the Custom Manufacturing Market — Focus on core business and on USP: One Stop Shop for primary and secondary manufacturing — Alignment of business and asset strategy — Expanded technology base through acquisition (AMP and Hameln) and investm
Slide 16: Majority of strategic objectives has been delivered
Majority of strategic objectives has been delivered Media / Analyst Call HY 2015 August 19, 2015 16
Slide 17: Cost competitive capacity
Cost competitive capacity B2: Backward integration — Nantong provides 300 m3 cost competitive capacity in a low cost country. — It will drastically strengthen Siegfried’s overall competitiveness in the market. — All approvals and licenses received. Operations started. — Inauguration took place on Au
Slide 18: Cost competitive capacity in Nantong
Cost competitive capacity in Nantong Media / Analyst Call HY 2015 August 19, 2015 18
Slide 19: Siegfried Hameln significantly strengthens the sterile business
Siegfried Hameln significantly strengthens the sterile business of the company Strategic stream “forward integration” — 8 product lines in a state-of-the-art facility — 400 (FTEs) new members of the Siegfried family — In February 2015 warning letter lifted, license of German authorities renewed in J
Slide 20: State-of-the-art production building of Siegfried Hameln
State-of-the-art production building of Siegfried Hameln Media / Analyst Call HY 2015 August 19, 2015 20
Slide 21: Lowering factor costs in Zofingen, additional flexibility
Lowering factor costs in Zofingen, additional flexibility Strategic stream Deliver II: Lowering factor costs Zofingen — With our new API building, the factor costs in Zofingen will decrease significantly at increased standards (API standard) and flexibility — The comparable technical design with Nan
Slide 22: Zofingen Production building on track
Zofingen Production building on track — Zofingen: construction work for a new building ongoing. First commercial batches Q4 / 2015 Media / Analyst Call HY 2015 August 19, 2015 22
Slide 23: Takeover of BASFs CMO-/API-business with 3 sites on track
Takeover of BASFs CMO-/API-business with 3 sites on track Strategic stream “critical size” — Similar to Siegfried, the acquired BASF business supplies the worldwide pharmaceutical industry and produces active pharmaceutical ingredients and intermediates. This renders the acquisition a perfect fit wi
Slide 24: Outlook FY 2015
Outlook FY 2015 — The Siegfried Group expects strong growth due to the acquisitions of the BASF-business, Hameln Pharma and organic growth. — We expect an increase in dividends for 2015 Media / Analyst Call HY 2015 August 19, 2015 24
Slide 25: Thank you for your attention
Thank you for your attention Media / Analyst Call HY 2015 August 19, 2015 25 Confidential