Weifa Second quarter and first half 2015

Transcription

1 Weifa Second quarter and first half 2015 Kathrine Gamborg Andreassen (CEO) and Simen Nyberg-Hansen (CFO) 25 August

2 A pure consumer health company Weifa has become a pure consumer health focused company Well positioned in the Norwegian consumer health market - Top brands like Paracet, Ibux and Paralgin forte - Strong presence in the pharmacy and mass market channels Efficient structure with key competences in-house, and manufacturing outsourced to leading contract manufacturers, including Vistin Pharma Leverage on our position to grow business in existing and new categories, as well as in territories outside Norway Maintain steady revenue growth and target mid-twenties EBITDA margin through focus on operational efficiency and new product innovations 2

3 Presentation outline Highlights I Operational performance II Financial performance III Summary IV Appendix V 3

4 Highlights for the second quarter 2015 Positive momentum YTD Q2 mixed picture due to late Easter and Vistin split Spin-off of B2B operations and tablet manufacturing to Vistin Pharma successfully completed Maintained high market share in all categories and segments in both channels Proposed dividend of NOK 0.09 per share to be paid out in Q

5 Key financials second quarter Revenue NOK million Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Note: Historical figures represent reported revenue for the consumer health business in Weifa AS. 5

6 Presentation outline Highlights I Operational performance II Financial performance III Summary IV Appendix V 6

7 Focus on four key categories Pain Cough & cold Nutra Wound Number 1 player Number 1, 2 and 3 in certain segments Number 1 and 2 in niche segments Number 1 in disinfection 7

8 Innovative company with an exciting product pipeline Strong track record in first to market OTC switches in Norway and a driver of innovation Paracet 500 mg Ibux 200 mg Ibux 400 mg Samin Glucosamin Bronkyl 200mg Acetylcystein Bronkyl 600mg Acetylcystein (Sep 2015) Ibux 5 % gel (first topical NSAID on the market) Ibux OTC age limit lowered from 12 to 1 year By the end of 1H 2015, Weifa has its strongest and most exciting pipeline ever 8

9 Well positioned in a growing market Norwegian OTC market* Current market size NOK million - 6% growth in the pharmacy channel - 8% growth in the mass market channel Most major OTC categories are growing in the pharmacy channel Anti smoking and nasal spray main growth contributors in mass market Weifa s position* Well positioned in both the pharmacy and mass market channels - 15% market share in the pharmacy channel - 40% market share in the mass market channel Products with high brand recognition Documented record in Rx to OTC switches and brand building Size, growth and market shares for Norwegian OTC categories LTM Q2 2015* 30% 25% 20% Antismoking 181 mnok Pain relief 245 mnok Weifa presence No presence 15% 10% 5% Gastro 151 mnok Allergy 36 mnok Nasal spray 132 mnok Cough 46 mnok 0% 0% 5% 10% 15% 20% 25% *) Amounts are based on LTM Q2 2015, percentages are based on LTM Q vs. LTM Q All figures are measured in pharmacy purchasing prices. Source: LMI/Farmastat, Nielsen and Weifa 9

10 Second quarter development mixed picture Weaker sales for general pain relief products in the OTC market - Ibux gel menthol contributed to 20% growth in the NSAID gel category (part of pain relief)* Weifa consumer health sales growth NOK million Q Q % Increased sales from Rx market - Rx pain products performs well - New switch agreements signed for 2015 Stable development for cough & cold products - Seasonal decline in sales of Bronkyl offset by growth in revenues from Dexyl and Nazamér - CAGR of 34% since 2011 Strong growth in Nutraceuticals segment - Launch of Complete Multi in Q1 - Strong sales of Complete Cranberry % +28% -16% Pain relief Cough & cold Nutraceuticals Wound treatment +5% +8% +44% +5% Others H H % +3% 0 Pain relief Cough & cold Nutraceuticals Wound treatment Others *) Weifa net sales Q vs Q Source: Weifa 10

11 Weifa maintains leading position in key segments Maintained position as the leading OTC company in the Norwegian pharmacy channel LTM market share development* Percent 15% market share 40% market share in mass market 87% 87% 75% 74% Maintained leading positions in pain relief Stable Rx market share for Paralgin Forte 30% 29% 23% 25% Increasing market share in OTC cough & cold segment LTM sales of Tussin and Bronkyl up 30% Paracet + Paracetduo (paracetamol) Ibux + Proxan (NSAID) Paralgin Forte Tussin + Bronkyl incl. Trampalgin (cough) *) Market share by volume, 12 months rolling Source: LMI/Farmastat, Nielsen and Weifa. 11

12 Contract manufacturer agreement with Vistin Pharma Exclusive contract manufacturer agreement (CMO) with Vistin Pharma AS - All tablets historically produced internally by Weifa for the sale through its consumer health segment (i.e. Paracet, Ibux and Paralgin Forte) - Certain products to third parties where Weifa has exclusive right to sell within certain geographical areas (i.e. metformin, strong pain killers) Term duration of five years, with option of twoyear extension Negotiated on arms-length terms 12

13 Presentation outline Highlights I Operational performance II Financial performance III Summary IV Appendix V 13

14 Company performance Revenue NOK million EBITDA and margin NOK million Group charges CMO margin to Vistin Pharma 35% 20 30% 15 26% 14 25% 10 20% 20% 5 15% 0 10% Q Q Q Q Q revenue decreased due to: - One-week warehouse closure while executing split between Weifa ASA and Vistin Pharma AS - Impact of late Easter Q EBITDA impacted by: - Revenue drop YoY - Inventory adjustment related to split - Negative currency for COGS - Adjusted for CMO margin effect and Group charges, EBITDA was NOK 14 million and margin 20% 14

15 Dividend proposal from the board The board of Weifa propose dividend of NOK 0.09 per share - Cash and cash equivalents of NOK million after sale of B2B operations to Vistin Pharma ASA - To be paid out in Q pending approval by extraordinary general meeting Dividend policy - Future excess cash will be paid as an annual dividend to shareholders - When new acquisitions or other transactions emerge, the board will propose and ask shareholders for approval of the transaction and related financing 15

16 Consolidated income statement (NOK 1 000) Q Q M M Total revenue and income (463) (444) EBITDA (5 124) (7 720) (30 411) EBITDA adjusted* (4 991) (7 587) Depreciation, amortisation and impairment (3 767) - (6 799) - (4 685) Net finance income/(expense) (3 836) (9 359) (7 278) Profit/(loss) before tax from continuing operations (2 561) (5 099) (42 374) Profit/(loss) from continuing operations (2 561) (5 099) Profit/(loss) for the period from discontinued operations ** (8 435) (4 492) (1 644) (6 702) Profit/(loss) for the period (5 959) (1 310) (6 743) * EBITDA adjusted for NOK 1.7 million in calculated cost of employee options ** The B2B operations, which was sold to Vistin Pharma as of 1 June 2015, is reported as discontinued operations for both the second quarter and the first half of One-off costs related to the spin-off of the B2B business are reported as costs for the divested operations and is also included in discontinued operations. 16

17 Cash flow (NOK 1 000) Q Q M M Cash flow from operating activities (15 685) (25 560) (8 823) Cash flow from investing activities ( ) ( ) ( ) Cash flow from financing activities (4 534) (61 434) Net change in cash and cash equivalents (58 891) (18 456) Cash and cash equivalents end period Cash and cash equivalents end period Net cash flow from investing activities includes a consideration of NOK 120 million from the spin-off and sale of the B2B business to Vistin Pharma in second quarter

18 Financial position (NOK 1 000) Total Assets Total equity Total liabilities Total Equity and Liabilities Net interest bearing debt Cash and cash equivalents amounted to NOK million at the end of the quarter Total borrowings NOK million after Weifa bought back NOK 50 million of own bonds in 1Q15. Net interest bearing debt of NOK million Equity ratio of 73.4 percent 18

19 Presentation outline Highlights I Operational performance II Financial performance III Summary IV Appendix V 19

20 Summary and outlook First half 2015 revenues increased by 7.4% with an EBITDA margin of 20% - expect revenues for full year in line with first half, maintaining EBITDA margin New dividend policy and proposal of dividend NOK 0.09 per share to be paid out in Q Maintained high market share in all categories and segments in both channels Pure consumer health company positioned to pursue an ambitious growth strategy Launch of Bronkyl 600mg in September 2015 will strengthen Weifa s position in the cough segment 20

21 Q&A 21

22 Thank you for your attention! Next event: 3rd quarter 2015 presentation 28th October

23 Presentation outline Highlights I Operational performance II Financial performance III Summary IV Appendix V 23

24 Management Team Kathrine Gamborg Andreassen Chief Executive Officer Ms Gamborg Andreassen joined the Weifa team in August 2012 as head of Consumer Health Business, and replaced Kjell-Erik Nordby as CEO on 1 June She is an experienced marketing professional and has held several top management positions within the FMCG, food and health business. Gamborg Andreassen holds an MSc in Business Strategy & Marketing from the University of Wisconsin. Astrid T. Bratvedt Vice President R&D Ms Bratvedt has been head of R&D in Weifa since She previously headed Weifa's Regulatory and Medical Department. Bratvedt holds a Master degree in Pharmacy in addition to post graduate studies in management and project management. Simen Nyberg-Hansen Chief Financial Officer Mr Nyberg-Hansen joined Weifa as CFO in August 2015 from the position as a consultant and chair in Dolphitech AS. He previously served as CFO at Norman ASA and Viking Redningstjeneste International AS. Nyberg-Hansen is a state authorized public accountant (CPA) and holds a master degree in Professional Accountancy from BI Norwegian Business School. Morten Hovland Sand Vice President of Sales Mr Sand joined Weifa in 2007, and has been Head of Sales since 2008.He has broad professional experience within general management, strategy, sales and brand building related to fast moving consumer goods and retail from companies such as Coca Cola, Mills and Esso. Sand holds an BBA from BI Norwegian Business School. Ole Henrik Eriksen Chief Operating Officer Mr Eriksen joined Weifa in September 2014 as VP Business Development when Aqualis ASA acquired Weifa AS. He has spent 30 years in the pharma, biotech and medtech industry and has wide experience from various management and executive positions, including Nycomed Imaging (now GE Healtcare), Medinnova (now Inven2). He was the first CEO of Clavis Pharma ASA, and has worked with the company through Aqualis ASA and later Weifa AS. Eriksen holds a MSc. in Organic Chemistry from the Norwegian Institute of Technology in Trondheim. 24

25 APPENDIX Board of Directors Glen Ole Rødland Chairman Mr Rødland is a director and co-investor of Direct Active Investments in Ferncliff TIH AS, where he has been a partner since Before joining Ferncliff he worked 15 years with portfolio management and investment banking for Vital and Swedbank First Securities (formerly Elcon Securities). Rødland has also worked as a market and investment analyst at JEBSENS, a Norwegian shipping company, as a management consultant in PWC, and as a research assistant at the Norwegian school of economics and business administration (NHH). Rødland is a member of the board of directors of several companies, including Spectrum ASA and Strata Marine & Offshore AS. Rødland has PhD studies in Finance from NHH and UCLA. Rødland is a Norwegian citizen and resides in Oslo, Norway. Yvonne Litsheim Sandvold Board member Ms Sandvold is the Chief Operating Officer of Frognerbygg AS, and has extensive experience from the Norwegian real estate industry. Sandvold currently serves on the Board of several private companies. She holds a degree in psychology from the University of Oslo. Sandvold is a Norwegian citizen and resides in Oslo, Norway. Øystein Stray Spetalen Board member Mr Stray Spetalen is Chairman and owner of investment firm Ferncliff TIH AS. He is an independent investor. He has worked in the Kistefos Group as an investment manager, as corporate advisor in different investment banks and as a portfolio manager in Gjensidige Forsikring. Spetalen is a chartered petroleum s engineer from NTNU. Spetalen is a Norwegian citizen and resides in Oslo, Norway. Synne Syrrist Board member Ms Syrrist is an independent business consultant, and has extensive experience as a non-executive director of both private and public companies. She has previously worked as a financial analyst at Elcon Securities ASA and First Securities ASA. Syrrest currently serves on the Board of several public companies, including Awilco Drilling Ltd and Eidesvik Offshore ASA. She holds an Master of Science from the Norwegian Institute of Technology. Syrrist is a Norwegian citizen and resides in Oslo, Norway. Ole Enger Board member Mr Enger has extensive industrial experience and is currently the Chairman of the Board of REC Solar ASA. Enger was previously the CEO of REC ASA, a position held from April Prior to REC ASA, he was the president & CEO of SAPA AB, and he has also held the position as president & CEO of Elkem AS and Executive Vice President of Elkem AS. In addition, he has lead Norsk Hydro s Bio-division, including the development of Omega 3 products for both pharmaceutical and food applications, and has been the Chariman of the Board of Borregaard, a producer of fine chemicals for the global pharmaceutical market. Enger holds a degree from the Norwegian University of Life Sciences and a business degree from the Norwegian School of Economics. Enger is a Norwegian citizen, and resides in Norway. 25

26 Top 20 shareholders as of 17 August 2015 NAME SHAREHOLDING % share STRATA MARINE & OFFS % HOLTA LIFE SCIENCES % MP PENSJON PK % GEVERAN TRADING CO L % DEUTSCHE BANK AG PRIME BROKERAGE FULL % FERNCLIFF LISTED DAI % ARCTIC FUNDS PLC BNY MELLON SA/NV % STOREBRAND VEKST JPMORGAN EUROPE LTD, % STOREBRAND NORGE I JPMORGAN EUROPE LTD, % HOLBERG NORDEN VERDIPAPIRFONDET V/HOLBERG FONDSFORVA % SOLAN CAPITAL AS % KLP AKSJE NORGE VPF % JP Morgan Chase Bank HANDELSBANKEN NORDIC % VERDIPAPIRFONDET STO JPMORGAN EUROPE LTD, % PORTIA AS % TOLUMA NORDEN AS C/O SEB LONDON % BORGEN INVESTMENT GR % KOMMUNAL LANDSPENSJO % GRANT INVEST AS % HOLBERG NORGE VERDIPAPIRFONDET V/HOLBERG FONDSFORVA % Total 20 largest shareholders % Other shareholders % Total number of shares % 26