Össur hf. Q Investor Presentation

Transcription

1 Össur hf. Q Investor Presentation Jon Sigurdsson, President & CEO Sveinn Solvason, CFO 25 October 2017

2 Forward looking statements This presentation contains forward-looking statements, which reflect the Management s current views with respect to certain future events and financial performance. Although the statements are based upon estimates the Management believes to be reasonable, there is no assurance that these statements will be achieved. Statements containing the financial outlook for 2017 and the following years naturally involve risks and uncertainties, and consequently actual results will differ, and may differ materially, from those projected or implied in the forward-looking statements. The risks and uncertainties may include unexpected developments in the international currency exchange and securities markets, financing, market driven price decreases for Össur s products, delay or failure of development products, production problems and unexpected cost increases, development of new technologies by competitors, the introduction of competing products within Össur s core areas, exposure to product liability and other lawsuits, changes in reimbursement rules and governmental laws. 1

3 Q3 Highlights Sales EBITDA (adjusted) Q3 Highlights USD million Q3 '16 Q3 '17 8% growth in USD 5% growth in LCY 3% organic growth (4% organic ASPD*) 4% organic growth in 9M 2017 USD million Q3 '16 Q3 '17 3% EBITDA growth in USD 4% EBITDA growth in LCY EBITDA margin 18% vs. 19% Q GPM 63% vs. 63% in Q Prosthetics growing at 5% organically, strong comparable quarter in 2016 Flat growth in B&S with negative impact from own distribution companies and slow direct sales in the US Fewer number of working days impacting sales growth Strong gross profit margin but investments in R&D and currency headwind put pressure on margins Integration going as planned with realized synergies Note: Amounts are in USD and all growth numbers refer to quarter-on-quarter growth and measured in LCY unless otherwise stated *ASPD refers to Average Sales Per Day 2

4 Q3 Sales by business segment and geography Total sales by business segment Total sales by geography APAC 9% growth 7% Americas B&S 0% growth (0% organic) 49% 139 million 51% Prosthetics 10% growth (5% organic) EMEA 10% growth 48% 139 million 45% 0% growth Note: Amounts are in USD and all growth numbers refer to quarter-on-quarter growth and measured in LCY unless otherwise stated (%) Business segment refers to % of total sales 3

5 Q3 Sales highlights by business segments Sales contribution in USD million Highlights USD 139 million in sales vs. USD 129 million in Q which corresponds to 8% growth LCY growth of 5% and 3% organic growth Growth in the quarter driven by the prosthetics segment Soft direct sales in B&S in the quarter and own distribution companies negatively impacting growth Growth contribution Organic LCY USD +3% 0% +3% +2% +5% +3% +8% Currency positively impacting sales growth in the quarter of about 250 basis points. Note: Amounts are in USD and all growth numbers refer to quarter-on-quarter growth and measured in LCY unless otherwise stated (%) Business segment refers to % of total sales 4

6 Q3 Sales highlights by geography Americas 0% growth EMEA 10% growth APAC 9% growth 7% 63 million 45% 66 million 10 million 48% -1% organic sales growth Soft quarter in Americas Strong comparable quarter in 2016 for prosthetics and own distribution companies negatively impacting growth 6% organic sales growth High-end products performing well in both business segments Growth across all major regions in prosthetics 7% organic sales growth Strong growth in high end products Excellent progress in Australia & China Note: Amounts are in USD and all growth numbers refer to quarter-on-quarter growth and measured in LCY unless otherwise stated (%) next to charts refer to % of total sales 5

7 9M 2017 summary Sales EBITDA 9M Highlights USD million M '16 9M '17 8% growth in USD 9% growth in LCY 4% organic growth USD million M '16 9M '17 0% EBITDA growth in USD 8% EBITDA growth in LCY EBITDA% (adj.) 17% vs. 19% 9M 2016 GPM 62% vs. 63% in 9M 2016 Good performance in Prosthetics for the first 9M with growth above estimated market growth Slow 9M for B&S with operational challenges in distribution companies but direct sales continue to grow Profitability negatively impacted by ~90 bps due to FX (net of hedge) Guidance for EBITDA margin revised in Q due to FX Integration of Touch and Medi going as planned Note: Amounts are in USD and all growth numbers refer to YTD-on-YTD growth and measured in LCY unless otherwise stated 6

8 Financial overview Financial results USD million 9M '17 9M '16 Q3 '17 Q3 '16 Net Sales LCY growth 9% 8% 5% 11% Organic growth 4% 4% 3% 5% Gross Profit % of sales 62% 63% 63% 63% EBITDA % of sales 16% 18% 16% 19% EBITDA (adj.) % of sales 17% 19% 18% 19% EBIT % of sales 12% 14% 12% 15% Net Profit % of sales 8% 10% 8% 10% 7

9 Q3 EBITDA bridge EBITDA margin bridge Highlights Gross profit 63% of sales compared to 63% of sales in Q Negative ~20 bps impact from currency EBITDA before special items amounted to USD 25 million vs. USD 24 million in Q OPEX growth is 10% LCY in the quarter (5% excluding special items) Increase in R&D from acquisitions and additional investments in R&D projects for high-end products OPEX synergies from acquisitions Negative ~70 bps impact from currency on EBITDA margin (net of hedge) Note: Operational expenses delta profitability impact refers to quarter-on-quarter changes and measured in LCY EBITDA was adjusted in Q for USD 3 million due to the efficiency initiatives announced on 25 September

10 Status on efficiency initiatives announced on 25 September 2017 Initiative Description Progress Estimated financial impact Manufacturing and distribution Strategic sourcing Simplify our manufacturing and distribution organization Further growth of the Mexico operation Volume concentration Best-practice evaluation Global sourcing Process improvement Vendor relationships Cost/Investments over 3 years USD ~15 million Savings per year by end of year 3 USD ~10 million USD 3 million expensed in Q as special items 9

11 Cash flow and other items Cash generated by operations USD million 21% 20% % 16% 16% Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Cash generated by operations % of sales Cash generated by operations USD 23 million or 16% of sales in Q CAPEX USD 4 million or 3% of sales in Q NIBD is USD 141 million or 1.4x LTM EBITDA (adj.) at the end of Q

12 Guidance for 2017 Actual M 2017 Guidance 2017 (current) Sales growth LCY 9% 9% 7-8% Sales growth Organic 4% 4% 4-5% EBITDA margin Before special items 19% 17% 18-19% CAPEX % of sales 5% 3% ~4% 11

13 Össur hf. Q Investor Presentation Appendix 12

14 Financial calendar and upcoming events & conferences Financial calendar Q Results 5 February Annual General Meeting 8 March 2018 Meet the management Danske Bank Copenhagen Winter Seminar 13 December 2017 SEB Nordic Seminar (DK) 9 January 2018 Carnegie Healthcare Seminar (SE) 15 March 2018 Goldman Sachs 15th Annual European Medtech and Healthcare Conference (UK) 5-6 September 2018 Further information: David Hreidarsson, Investor Relations dohreidarsson@ossur.com Tel: Össur press releases by If you wish to receive Össur press releases by please register at the web-site: 13

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