Q1 PRESENTATION 27 APRIL 2017

Transcription

1 Q1 PRESENTATION 27 APRIL

2 RECORD SALES BUT WEAK EBITDA Net sales SEKm 1 328, up 37% EBITDA SEKm 159, up 17% EBITDA margin 12% vs 14% Profit after tax SEKm 1 (25) Operating CF SEKm -25 (-60) Net debt/equity 0.6 (0.5) NET SALES PER QUARTER (SEKM) EBITDA (SEKM), EBITDA MARGIN PER QUARTER AND LTM EBITDA MARGIN ,0% 20,0% ,0% 12,0% 8,0% 4,0% 0,0% EBITDA EBITDA % EBITDA%, R12 2

3 Q1 EBITDA MARGIN 16 % Overall objective 12 % Q Actual + Favourable sales development Erdosteine Other APIs + Good demand Sterile Liquids - Non-recurring costs Start-up costs Replacement free of charge Acquisition integration and effects - Phasing Raw material availability Inventory reduction - Weaker demand Solids&Others - Establishing US base Note. Not drawn to scale 3

4 Q1 STRONG PERFORMANCE IN D&T CONTINUED GOOD DEMAND IN STERILE LIQUIDS, SOFT IN SOLIDS & OTHERS Manufacturing Services Sterile Liquids Sales 1 Growth EBITDA 2 Margin Sek 534 m 45 % Sek 90 m 17 % Manufacturing Services Solids & Others Sales 1 Growth EBITDA 2 Margin Sek 598 m 29 % Sek 44 m 7 % Development Technology Sales 1 Growth EBITDA 2 Margin Sek 228 m 26 % Sek 43 m 19 % 1/ Segment Net Sales includes Sek 32 m of inter-group sales 2/ Segment EBITDA does not include Sek 18 m of group overhead 4

5 STERILE LIQUIDS Continued strong demand Net Sales and % of Total Lyophilisation Blow-fill-seal Expansion projects Finalising Wasserburg, DE Lyophilisation, packaging Ongoing Masate, IT Lyophilisation Ongoing Kaysersberg, FR Blow-Fill-Seal Growth 45% 534 SEKm 39% EBITDA and % of Total Organic growth 5% EBITDA Delays in supply of raw materials Inventory reduction effects Start-up costs in Germany 90 SEKm 51% 5

6 SOLIDS & OTHERS Competitive market conditions Net Sales and % of Total Discontinuation of less profitable contracts Weak demand Cost saving and efficiency program Swedish operations Customer contract renegotiations Growth 29% Organic growth negative 598 SEKm 44% EBITDA EBITDA and % of Total Inventory revaluation Weaker demand of highly profitable products Recipharm Pharmaservices Pvt Ltd (Kemwell India) Completion announced February SEKm 25% 6

7 DEVELOPMENT & TECHNOLOGY Product rights Strong demand for erdosteine and other APIs Expansion projects implemented Bioanalysis capability, SE New GMP suite for clinical materials, US Net Sales and % of Total 228 SEKm 17% Growth 26% Organic growth 15% EBITDA Favourable sales development Global development integration North America, Europe, India Increasing the service offering and enhancing the position in the value chain EBITDA and % of Total 43 SEKm 24% Recipharm Pharmaservices Pvt Ltd Minor impact 7

8 ACQUISITIONS UPDATE Net Sales and % of total Integration ongoing Mitim Srl (IT), Feb 2016 Nitin Lifesciences Ltd (IN), Apr 2016 Cirrus Pharmaceuticals (US), May 2016 Kemwell AB (SE), May 2016 Recipharm Pharmaservices Pvt Ltd (Kemwell India), Feb 2017 Performance 296 SEKm 22% Nitin pro forma Q1 growth of 35 percent in local currencies Material delays in customer provided raw materials Inventory reductions with negative impact Recipharm Pharmaservices only part of the quarter Opportunities Technology Market Relationship EBITDA and % of total 45 SEKm 28% 8

9 FINANCIALS HENRIK STENQVIST (CURRENCY SEK MILLION) 9

10 Q1 P&L DEVELOPMENT Q Q Net Sales EBITDA EBITDA margin 12.0% 14.0% D&A EBIT Financial Items Profit before Tax Tax Net Profit

11 MANUFACTURING SERVICES STERILE LIQUIDS SALES BRIDGE, JAN MAR Sales SEK million Sales, % Currency Acquisitions Organic Total Healthy growth EBITDA BRIDGE, JAN MAR EBITDA SEK million 2016 Currency Acquisitions Other Total

12 MANUFACTURING SERVICES SOLIDS & OTHERS SALES BRIDGE, JAN MAR Sales SEK million Sales, % Currency Acquisitions Organic Total EBITDA BRIDGE, JAN MAR EBITDA SEK million 2016 Currency Acquisitions Inventory revaluation Other Total

13 DEVELOPMENT & TECHNOLOGY SALES BRIDGE, JAN MAR Sales, SEK million Sales, % Currency Acquisitions Organic Total Healthy growth EBITDA BRIDGE, JAN MAR EBITDA SEK million 2016 Currency Acquisitions Other Total

14 +37% INCREASE IN Q1 NET SALES +30.4% +4.7% (MSEK) 973 (MSEK) +1.4% Q FX 1/ Acquisitions Organic Q / Currency translation effect 14

15 CONCLUDING REMARKS THOMAS ELDERED 15

16 BECOMING A GLOBAL LEADER Sek 5.0 bn 2017Q1 LTM Sales ~30% CAGR 1 since 2013 Sek 772 m 2017Q1 LTM EBITDA 2 ~38% CAGR 1 since Acquisitions 2 Asset/portfolio 1 Green-field since Products 400+ Customers 5000 Employees 20+ Locations 100+ Markets Attractive value proposition 1/ As reported 2/ EBIT + depreciations + amortizations 16

17 DRIVING ABOVE-MARKET PERFORMANCE IN 2017 Integration of completed acquisitions Benefit from commercial and cost synergies Start supply serialised products to the US Start commercial supply from expanded lyophilisation capacity in Germany Create a global comprehensive development services offering Leverage our new sales and business development organisation, in the US, Europe and India Execute on accretive acquistion opportunities 17

18 ON TRACK TO REACH OUR LONG-TERM TARGETS Financial targets Status 8,0 7,0 8.0bn At least SEK 8bn in sales by % Q1 +44% LTM 6,0 5,0 4,0 +32% +38% +44% EBITDA margin more than 16% 12% Q1 15% LTM 3,0 2,0 2.1bn +21% Net debt to equity ratio of less than end of Q1 1,0 0, Q1LTM 2020 Dividend 30-50% of net profit Board proposal 18

19 Q&A 19

20 CONTACT INFORMATION Thomas Eldered CEO & Managing Director +46 (0) Henrik Stenqvist CFO & EVP Finance, Control & Investor Relations +46 (0) , 20