CONSOLIDATED RESULTS. Third Quarter 2012 Press Conference, Warsaw, 9 November, 2012

Transcription

1 CONSOLIDATED RESULTS Third Quarter 2012 Press Conference, Warsaw, 9 November, 2012

2 Financial Summary - Third Quarter 2012 A significant improvement in the results at all levels of return on sales despite the declining market value A continuing high level of gross margin A surge in net income in the third quarter and from January to September A continued improvement in the Debt/EBITDA ratio Implementation of a significant part of the financial forecast after nine months of

3 Operating Summary - Third Quarter 2012 Completion of the restructuring activities in logistics: achievement of the target warehouse structure Finalizing changes in the structure of telemarketing A high dynamics of new implementations of the Apteo commercial mark in the third quarter, finalization of work on the introduction of the first prescription drug Launch of the Central Customer Service Office for all pharmacy customers of the Group 3

4 Financial results and the market

5 NEUCA s market position The value of the market in quarters and y/y growth in quarters Q toq3 2012* [thousands of millions PLN] 6,31 10,3% 1,99 31,5% 5,54 5,54 1,3% 1,69 30,5% 0,6% 1,64 6,00 6,8% NEUCA s value of revenues and market share in quarters Q to Q [thousands of millions PLN] 1,81 30,0% 30,5% 5,42 5,37 5,30-14,1% 1,50 28,4% - 3,2% -4,3% 1Q 2Q 3Q 4Q 1Q 2Q 3Q ,40 1,36 27,6% 27,1% 1Q 2Q 3Q 4Q 1Q 2Q 3Q The continued negative market dynamics percent in Q3, cumulatively percent Maintaining a stable leadership position with more than 27 percent share despite the declining value of the market A positive tendency in the NEUCA's share in the market maintained in October Focusing on the most profitable customer structure, avoiding a "price war" * IMS data, NEUCA SA s drug wholesale before discount 5

6 Revenues Revenues from sales [thousands of millions PLN] 4 771,6-11% 4 231,5 Decrease in revenues related to the declining market value Focus on profit-earning turnover 1 482,4-8% 1 360,8 Transaction costs discipline IIIQ 2011 I-IIIQ 2011 IIIQ 2012 I-IIIQ 2012 Change in the structure of sales a higher growth dynamics in pharmacy chains share 6

7 EBIT EBIT [thousands of PLN] EBIT excluding one-off events [thousands of PLN] % % % % IIIQ 2011 I-IIIQ 2011 IIIQ 2012 I-IIIQ 2012 IIIQ 2011 I-IIIQ 2011 IIIQ 2012 I-IIIQ 2012 Continued double-digit dynamics growth in operating profit 7

8 Net profit Net profit [thousands of PLN] Net profit excluding one-off events [thousands of PLN] % % % % IIIQ 2011 I-IIIQ 2011 IIIQ 2012 I-IIIQ 2012 IIIQ 2011 I-IIIQ 2011 IIIQ 2012 I-IIIQ 2012 One-off events in Q (net): Restructuring costs: 6 mio PLN Negative goodwill: -0.2 mio PLN 8

9 Group's operations in the in the third first quarter of of 2012

10 The finalization of the restructuring process Warehouse structure Closing three local warehouses in Q3 Achievement of the target model: 11 local + 3 central warehouses Continuation of warehouse property sale Full dimension of savings expected financial results for 2013 Telemarketing Achieving the target structure: 10 local + 3 central facilities in Q4 Expected decline in employment to 610 people by the end of this year The first impact of restructuring on the financial results expected as early as Q4 Implementation of the Central Customer Service Office in Q3 Full effects of restructuring 2013 Beginning of logistics consolidation and restructuring process 2009/2010 Restructuring of Telemarketing 2011 Completion of restructuring in logistics, finalization of the process in telemarketing

11 Synoptis: a consistent path to profitability Marketing of the Nursea premium mark Debut of Apteo "economy" brand A positive net result of Synoptis Pharma, more than 90 products in the portfolio at year-end / Beginning of activity of Synoptis Pharma, responsible for managing the Group's own marks More than 7 mio revenues on sales in new products in the portfolio Synoptis Pharma at year end, 13 mio PLN revenues in 2011 Building prescription drugs portfolio, continued development of dietary supplements, introduction of OTC drugs 11

12 Synoptis: a consistent path to profitability Management of own marks 84 products in portfolio at the end of September, new Apteo products implementations in three quarters of 2012 A 50 percent increase in sales to pharmacies at the end of September 2012 (y/y) Finalisation of preparation for implementation of the first prescription drug Achievement of break-even point at the end of September 2012 More than 20 million PLN revenue and a positive result achieved in

13 Fourth quarter 2012 Completion of restructuring in telemarketing, development of Customer Service Centre Warehouse logistics costs decline, positive effects of restructuring in the financial results Introduction of Apteo "economy" brand products (more than 90 products in Synoptis s portfolio at the end of 2012), a positive segment result at the end of the year, implementation of prescription drugs by the end of Implementation of programmes to build retail margin for our customers Continuation of the share buyback programme 13

14 Net profit forecast 2012* Plan 60 million PLN net profit in 2012 (27% increase y/y) A 5 percent market decline expected y/y A stable level of WIBOR rate 1M 55,8 37,4 21,2 64% 93%? 36% 1Q 2Q 3Q 4Q 2012 wynik kwartału narastajaco wykonanie prognozy 2012 * excluding one-off events The results of Q equal 93% of the full-year forecast in

15 Net profit forecast 2012* New forecast - plan 70 million PLN net profit in 2012 (48% increase y/y) A 6 percent market decline expected in the year A stable level of WIBOR rate 1M 55,8 70,0 37,4 21,2 30% 53% 80% 1Q 2Q 3Q 4Q * excluding one-off events 2012 wynik kwartału narastajaco wykonanie prognozy 2012 The results of Q equal 80% of the full-year forecast in

16 Thank you for your attention Financial results