Q PRESENTATION 24 FEBRUARY 2016

Transcription

1 Q PRESENTATION 24 FEBRUARY

2 HIGHLIGHTS THOMAS ELDERED, CEO 2

3 HIGHLIGHTS Q4 Net sales SEK 863 million, decrease of 1.1% EBITDA SEK 110 million, decrease of 25% EBITDA-margin 12.7%, decrease of 4.2%- points D&T strong performance (in spite of less Thyrosafe) Sterile liquids weaker than our expectations Solids and others in line with our expectations Continued strong operating cash flow Long term supply agreement with Alcon and acquisition in France Initiated acquisition of Nitin Lifesciences Ltd, India Partnerships and strategic investments Cost and efficiency program in Sweden Development and Technology 2014 (1) 15 % 59 % 26 % Sterile Liquids Development and Technology 2015 (1) 22 % 51 % 27 % Sterile Liquids Full year profit for the period SEK 215 million, increase of 34% Proposed dividend SEK 1.50 per share, increase of 20% Equity issue SEK 276 million in Q Solids & Other Solids & Other (1) January-December. 3

4 MANUFACTURING SERVICES - STERILE LIQUIDS Long-term supply agreement of ophthalmic blow-fill-seal products for Alcon Discontinued packaging only contract in France Lyophilisation capacity expansion in Wasserburg progressed according to plan Destocking with certain customers SEKm SEKm Net sales Q1 Q2 Q3 Q4 EBITDA Q1 Q2 Q3 Q

5 MANUFACTURING SERVICES - SOLIDS & OTHERS Cost and efficiency program in Swedish operations Continued effect from major product volume loss in France Continued effect from discontinued distribution SEKm SEKm Net sales Q1 Q2 Q3 Q4 EBITDA Q1 Q2 Q3 Q

6 DEVELOPMENT & TECHNOLOGY Development collaboration and investment consortium in Xspray Microparticles AB Secured long-term supply of Erdostein to Daewong Pharmaceuticals, Korea Exclusive scale-up and commercial manufacture agreement with Lidds AB, including equity investment Start-up of Israeli chemistry laboratory Low Thyrosafe sales SEKm SEKm Net sales Q1 Q2 Q3 Q4 EBITDA Q1 Q2 Q3 Q

7 GROWTH INITIATIVES ON TRACK Growth initiatives Track record 2015 YTD Growth in existing manufacturing footprint and capacity Strengthened sales organisation ~ 3% annual growth (constant FX) Flat organic growth Sequential growth in acquired businesses Capacity expansion in manufacturing Strong demand for freeze drying 100% utilization Invest EUR 32m (decided 2013) Wasserburg expansion on track SEK 198 M in capex High growth in strategic important D&T 12% share of total sales 2014 originate from D&T projects. 16% of Group sales Development of IP portfolio 92% increase vs (9% excluding acquisitions & Thyrosafe) 22% of Group sales Portfolio outsourcing with asset acquisitions +3 since : Pessac (FR) Kayserberg (Alcon, FR) Projects under review Acquisition of CDMOs +6 since : Corvette (IT) Lusomedicamenta (PT) OT Chemistry (SE) Nitin Lifesciences Ltd (IN) 2016 Projects under review 7

8 LONG-TERM OUTSOURCING CONTRACT WITH ALCON Arrangement Overview Benefits of the arrangement Agreement with Alcon, a Novartis company Long-term outsourcing of a range of ophthalmology products Concurrent acquisition of a manufacturing facility in Kaysersberg, France Approximately 260 employees continue employment with Recipharm Completed December 31, 2015 Long-term relation with important customer Alcon/Novartis Blow-fill-seal adds to sterile technology offering Potential synergies with Recipharm s other French companies Attractive financial impact, accretive to margins, growth and EPS Key Financials / Terms Expected annual sales in excess of EUR 36 million Expected EBITDA-margin well in line with FY2015 group average Consideration for manufacturing asset was SEK 139 million Sources: Company filings. 8

9 ACQUISITION OF NITIN LIFESCIENCES Nitin Lifesciences - Business Overview Rapidly growing Indian CMO specialized in injectables manufacturing Offers liquid ampoules, liquid vials, sterile dry powder (beta lactam& non beta lactam), multidose-eye/ear drops and lyophilized vials Sales predominantly in India, with growing export share to currently 11 countries Approximately 500 employees Established in 1994 Strategic Rationale of the Acquisition Significant presence in expanding Indian market and platform for further growth in emerging markets Strengthens position in Steriles with a broad small volume parenteral portfolio Acquisition of a high quality customer base in India and globally Attractive financial impact as acquisition is accretive to margins, growth and EPS Key Financials / Terms Acquisition of 74% with option for remaining 26% Purchase price: INR 6,712m (SEK 824m) Valuation: 12.2x EV/ LTM EBITDA Recipharm s Emerging Markets Footprint Recipharm Standalone Recipharm + Nitin Preliminary 2015 sales INR 2,946m (SEK 365m) Preliminary 2015 EBITDA INR 747m (SEK 93m) Preliminary EBITDA-margin 25% Completion planned to April 1, 2016 Sources: Company filings. 9

10 ACQUISITION OF MITIM SRL (ITALY) To be presented later

11 FINANCIALS BJÖRN WESTBERG, CFO (CURRENCY SEK MILLION) 11

12 P&L DEVELOPMENT Q Net Sales 862,9 872,9 EBITDA 111,1 147,3 12,9% 16,9% D&A -59,1-52,0 EBIT 52,0 95,3 Financial items -5,1-40,6 Profit before tax 46,9 54,7 Tax -17,5-5,7 Net profit 29,4 49,0 YTD Net Sales 3389,4 2569,3 EBITDA 509,8 399,3 15,0% 15,5% D&A -235,6-127,2 EBIT 274,2 272,1 Financial items 35,4-56,0 Profit before tax 309,6 216,1 Tax -94,6-55,9 Net profit 215,1 160,2 12

13 MANUFACTURING SERVICES STERILE LIQUIDS Sales Q Acquisitions +7 Others (Disc. packaging FR & destocking) Sales Full year Aquisitions +260 FX effect +17 Others (+34%) 957 EBITDA Q Acquisitions +4 Others (lower sales & product mix) EBITDA Full year Acquisitions +65 FX effect +5 Retroactive price increase Q Others EBITDA margin 23.1% (22.1) 13

14 MANUFACTURING SERVICES SOLIDS AND OTHERS Sales Q Acquisition effect (8%) +40 FX effect +6 Distribution services -4 Large product - competition in FR -10 Others (almost no Thyrosafe) Sales Full year Aquisitions +289 FX effect +31 Distribution services -19 Large product competition in FR -51 Others EBITDA Q Acquisition effect -9 Cost and efficiency program -15 Others (Lower sales & product mix) EBITDA Full year Acquisitions +27 Inventory effect Q One-off internal services Others (Lower sales, product mix) EBITDA margin 6.4 (12.6) 14

15 DEVELOPMENT & TECHNOLOGY Sales Q Acquisitions +25 Tender product -28 Royalty (reclassified) -4 Others Sales Full year Aquisitions +385 FX effect +3 Tender product -52 Royalty (reclassified) -4 Others EBITDA Q Acquisitions +6 Others EBITDA Full year Acquisitions +102 Others EBITDA margin 28.9 (25.2) 15

16 -1% CHANGE IN Q4 NET SALES % % % -0.5% -1.1% -1.5% / 2/ 3/ 1/ Currency translation effect 2/ Reclassification Royalty (Q part of Other operating revenue) 3/ Soldis and Others product facing increased competition in France 16

17 2015 PERFORMANCE KPIs Net Sales (12M) EBITDA (12M) EBITDA margin (12M %) Earnings per share (SEK) Return on equity (%) ROOC (%) Equity to assets (%) Net working capital to Sales (%) Net debt (SEKm) Equity Capital Employed Net debt to Equity Net debt to EBITDA ) Net working capital is calculated as Inventory + AR + Prepaid exp&accr Inc - AP-Accr exp&prepaid Inc 17

18 REVISED LONG TERM OBJECTIVES Annual sales should exceed SEK 8 billion by 2020 EBITDA margin should be higher than 16% Net debt to equity should be less than 0.8 Dividend pay out should be 30-50% of profit after tax (unchanged) Proposed dividend for 2015 SEK 1.50 per share (1.25), an increase of 20% 18

19 CONTACT INFORMATION Thomas Eldered CEO & Managing Director Björn Westberg CFO & EVP Finance, Control & Investor Relations , 19