Q PRESENTATION 23 JULY 2015

Transcription

1 Q PRESENTATION 23 JULY

2 HIGHLIGHTS THOMAS ELDERED, CEO 2

3 HIGHLIGHTS Q2 Another quarter with solid progress +42% Net Sales growth (+40% LC) +58% EBITDA growth EBITDA-margin firmly established at a new level: 18% Development&Technology gaining further momentum Sterile Liquids better than plan Solids and Other with improvement potential Continued strong operating cash flow Acquisitions contribute significantly Short term integration activities completed Partnerships and strategic investments New SEK 1.5 Bn bank loan secured (July) 3

4 FINANCIAL HIGHLIGHTS Q Sales SEK 868 m +42% EBITDA SEK 156 m +58% EPS SEK % Acquisitions contributed SEK 277 m (+45%) Acquisitions contributed SEK 72 m (+72%) Organic growth 1% (fix FX & excl Thyrosafe) 4

5 NET SALES PER STRATEGIC BUSINESS SEGMENT 1000,0 800,0 D&T +90% SEK 868m SEK 611m 600,0 400,0 200,0 MS-SO +19% D&T Acq D&T MS-SO Acq MS-SO MS-SL Acq MS-SL 0,0 MS-SL +59% Q Q ,0 5

6 STRATEGIC INVESTMENTS DRIVING INCREASED IMPORTANCE OF MORE PROFITABLE SEGMENTS Sales 2014 Sales 2015 Development Technology Sterile Liquids From Q to Q Solids and Other EBITDA 2014 EBITDA 2015 Development Technology Sterile Liquids Solids and Other 6

7 GROWTH INITIATIVES ON TRACK Growth initiatives Track record 2015 H1 Growth in existing manufacturing footprint and capacity Strengthened sales organisation ~ 3% annual growth (constant FX) 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 53 M in capex (139 since start) 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 168% increase vs (9% excl acquisitions) 23% of Group sales Portfolio outsourcing with asset acquisitions +3 since : Pessac (FR) Projects under review Acquisition of CDMOs +6 since : Corvette (IT) Lusomedicament (PT) OT Chemistry completed Projects under review 7

8 TRANSFORMATIONAL ACQUISITIONS Corvette Group (IT) Lusomedicamenta (PT) Pessac (FR) OT Chemistry (SE) 265 HC 340 HC 115 HC 35 HC Steriles, incl freeze drying, API, I P Financials 2014 (PF) Liquids, Opthal mics, Effervescent products, IP Financials 2014 (PF) Development services, IP Discovery and Development services Integration of acquisitions completed in line with plan Q Sales SEK 277m EBITDA SEK 72m Sequential growth Sales +2% EBITDA +16% Sales 554 EBITDA 128 Sales 470 EBITDA 120 Q Q

9 ACQUISITION STRATEGY CLEAR PRIORITIES RELATIONSHIP Pessac TECHNOLOGY Freeze dried ampoules Injectable hormones Effervescent tablets Opthalmics Niche API s Cytotoxics Pre-filled syringes Lisbon MARKET Milan TECHNOLOGY MARKET Europe North America India RELATIONSHIP 100 new customers 9

10 FINANCIALS BJÖRN WESTBERG, CFO (CURRENCY SEK MILLION) 10

11 P&L DEVELOPMENT Q Net Sales 868,5 610,9 EBITDA 155,9 98,9 17,9% 16,2% D&A -57,9-25,2 EBIT 98,0 73,7 Financial items -5,9-0,9 Profit before tax 92,1 72,8 Tax -23,4-24,7 Net profit 68,7 48,1 H1 40% 35% 30% 25% 20% 15% 10% 5% 0% MTRL EXT HC D&A OTH in relation to sales

12 42% SALES GROWTH IN Q2 60% 50% 40% 30% 20% 10% 0% -10% -20% Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 12

13 MANUFACTURING SERVICES STERILE LIQUIDS Sales increased by 59 % in Q2 vs LY + Acquisitions generated 50% EBITDA increased by 66% in Q2 + Acquisitions generated 48% + Product and service mix Sales Q Aquisitions +80 FX effect +5 Others Sales H Aquisitions +157 FX effect +14 Others EBITDA Q Acquisitions +18 FX effect +1 Others EBITDA H Acquisitions +37 FX effect +4 Others

14 MANUFACTURING SERVICES SOLIDS AND OTHERS Sales increased by 19% in Q2 vs LY + Acquisitions added 26% - Discontinued distribution services - Competition in France of a large customer product - Less manufacturing of the large tender product (Thyrosafe) EBITDA decreased by 9% in Q2 vs LY + Acquisitions added 47% (24% EBITDA margin) - Reduced sales including Product mix effect Sales Q Acquisitions +101 FX effect +8 Distribution services -4 Others Sales H Aquisitions +173 FX effect +18 Distribution services -9 Others EBITDA Q Acquisitions +25 One-off internal services -11 Others EBITDA H Acquisitions +31 Inventory effect Q One-off internal services Others

15 DEVELOPMENT & TECHNOLOGY Sales increased by 90% in Q2 vs LY + Acquisitions added 115% - Reduced sales of tender product (Thyrosafe) + Increased sales of other products EBITDA increased by 127% in Q2 vs LY + Acquisitions added 109% + Positive product mix Sales Q Acquisitions +114 FX effect +1 Tender product -39 Others Sales H Aquisitions +242 FX effect +2 Tender product -9 Others EBITDA Q Acquisitions +28 Others EBITDA H Acquisitions +65 Others

16 42% INCREASE IN NET SALES % % 2% 1% 21% Thyrosafe 1/ FX impact Organic growth Acquisitions / Currency translation effect 16

17 55% INCREASE IN EBITDA % % "Old" business Acquisitions

18 2015 PERFORMANCE KPIs 2015-H H FY EBITDA margin (%) 17,9 16,9 15,5 Earnings per share (SEK) 4,22 3,34 Return on equity (%) 11,4 12,6 11,4 ROOC (%) 13,0 20,8 12,4 Equity to assets (%) 49,7 62,1 39,4 Net working capital to Sales (%) 1/ 23,2 21,7 27,3 Net debt (SEKm) Net debt to Equity 0,4-0,3 0,5 Net debt to EBITDA 2,0 1,2 2,9 1/ (Inventory+AR+Prepaid expenses and accrued Income-AP-Accrued expenses and prepaid income)/(12m Net sales) 18

19 CONCLUDING REMARKS THOMAS ELDERED, CEO 19

20 A LEADING EUROPEAN CDMO Sweden JORDBRO, HQ HÖGANÄS Solids (granulates & powders) KARLSKOGA Semi-solids SOLNA Development Services STOCKHOLM Solids STRÄNGNÄS Beta-lactams (solid forms and dry syrups) UPPSALA Discovery and development services UK ASHTON Solids Semi-solids Inhalors Germany WASSERBURG Freeze dried products Steriles France FONTAINE Solids MONTS Steriles PESSAC Development Services Spain PARETS Solids Semi-solids Liquids Italy LAINATE (Milan) Freeze dried sterile beta lactam antibiotics MASATE (Milan) Freeze dried products Liquid fills PADERNO DUGNANO (Milan) API development Finished dose form development and manufacturing Portugal QUELUZ (Lisbon) Solids Liquids Semi-solids ODIVELAS (Lisbon) Solids Liquids Semi-solids Steriles 20

21 ON A MISSION TO BECOME A WORLD LEADING CDMO Presence in all major European markets Global supply Broad technology base High quality, high performance manufacturing facilities Access to competitive drug delivery technologies Technology and product development partnerships or joint projects Strong IP backed business 21

22 CONCLUDING REMARKS Q2 Delivering on our strategy Overall performance well in line with plan Improvement opportunity in Solids and Other Benefitting from recent acquisitions Gearing up for further acquisitions and geographic expansion 22

23 Q&A 23

24 CONTACT INFORMATION Thomas Eldered CEO & Managing Director Björn Westberg CFO & EVP Finance, Control & Investor Relations , 24