Mölnlycke. Investor Capital Markets Day 30 March 2017

Transcription

1 Mölnlycke 30 March 2017

2 Presenter Richard Twomey CEO CEO of Mölnlycke since 2014 Previously International Vice President of the California-based orthodontics company Align Technology 27 years of business experience, including 17 years in the healthcare industry

3 Agenda Mölnlycke who we are Industry dynamics and our position Moving forward

4 Mölnlycke who we are

5 Mölnlycke is a world-leading medical solutions company Our purpose is to advance performance in healthcare across the world, and we aspire to equip everybody in health care with solutions to achieve the best outcomes.

6 Our global footprint 550+ Direct suppliers and contract manufacturers 14,000 Containers/year 20,000 Different stock items 600,000 Deliveries to 15,000 partners worldwide 1 Global HQ and R&D in Gothenburg Sweden 15 manufacturing sites 7 Distribution Centres 35 Countries with sales office coverage 63 Countries with sales through distributors

7 Our employees Employee engagement Employee facts % 66% 28 NPS Q Sector bench mark: 8 Ref. Employee Engagement survey (98% respondents) 2016 ASIA & MEA 3561 Europe 3284 Americas 696

8 Industry dynamics and our position

9 Macro dynamic trends Globally Aging population Increase in chronic conditions (i.e. diabetes, obesity) 1 in 12 Americans will have diabetes in in 20 will develop diabetic foot ulcers 70 million surgical procedures performed every year in Europe growing 3-4% annually In developing markets Increasing income levels and health awareness Rising expectations of healthcare system 3.6% of Americans 65+ suffer from chronic leg ulcer 11 Billion $ spent treating pressure ulcers in US Chronic disease treatment = 75% of US healthcare spending

10 Implications of Macro dynamic trends: the tailwinds and headwinds for healthcare Expanding access Innovation will be rewarded Focus on prevention More people Better quality Products Business models Hospital Acquired Conditions Never events Healthcare consumption evolving Competitive shift Healthcare consumption Competitive shift evolving Economic pressures Competitive shift Increased regulatory control Increased patient decision making Value is key More M&A, Low cost models, IP protection is key Deficit of Healthcare systems Deficit of healthcare systems on Focus on outcomes Increased requirements for product approval

11 Business Overview Three commercial franchises breadth and diversity of a comprehensive product portfolio Treatment Prevention Surgical solutions Wound Care Advanced wound dressings Conventional wound dressings NPWT* Interface dressings Positioners Antiseptics Skin care Surgical gloves Drapes Gowns Mölnlycke Procedure trays MIS** Key brands Avance

12 Leading market share across segments #1 Global Advanced Wound Care (1) % 23% #1 in Europe & US Surgical Gloves #1 Total market ~ EUR 2.7 billion in Europe Custom procedure trays, Surgical drapes Staff clothing 72% market share interface dressings Note: Market share data based of internal estimates. 1. As measured by sales of dressings (excluding both biologics and negative pressure wound therapy).

13 Growth % The Prevention opportunity The Global problem Million Pressure Ulcers Customer insight Prevention Solution: Products Process Business Model The Global opportunity The Patient opportunity USD 11 billion USD billion Prevent 76% with 3.6 lower cost of treatment Healthcare Expenditure USD billion Gap: Time GDP Cost reductions Increase Efficiency Pay for outcome

14 Sundance acquisition 2016 strengthening the Prevention offer

15 Proven financial performance Proven financial performance (EUR million) Sales EBITDA (1) % US sales organic growth Geographical revenue split % 7% APAC 96% 34% 28% 24% 70% 33% 60% AMERICAS EMEA Brazil Net sales growth The Gulf region Net sales growth China Net sales growth Note: Revenue split for 2016 based on unaudited consolidated numbers. Financials for 2016 based on unaudited consolidated numbers. 1. EBITDA is before exceptional items. 2. Compound Annual Growth Rate between 2012 and 2016.

16 Outperforming our competitors Wound care Sales (MEUR) Sales growth % % % % % 5% % 0-5% Competitor 1 Comp 2 Mölnlycke Wound Comp 3 Comp 4 Comp 5 Mölnlycke Wound Comp 5 Comp 4 Comp 3 Comp 1 Comp 2 *Due to limited competitor disclosure, all numbers are based on last 12 months reported financials as of June Growth rates are shown in reported numbers, i.e. not adjusted for currency effects. Where company EBIT/EBITA has not been available, segments EBIT/EBITA has been used.

17 Outperforming our competitors Surgical Sales (MEUR) Sales growth % % % 6% % % 0 Competitor 1 Mölnlycke Competitor 2 Surgical -10% Mölnlycke Surgical Competitor 2 Competitor 1 *Due to limited competitor disclosure, all numbers are based on last 12 months reported financials as of June Growth rates are shown in reported numbers, i.e. not adjusted for currency effects. Where company EBIT/EBITA has not been available, segments EBIT/EBITA has been used.

18 Financial results of M Sales % Organic sales growth 2015/

19 Financial results of 2016 % Profit +14% year over year 30.4% 29.5% 28.1% 30.0%

20 Financial results of 2016 EBITDA/ Operating cash flow EUR 400M Cash conversion % Great performance during investment cycle

21 Financial results of Revenue CAGR: 9% Wound Care Sales EUR million EBITDA

22 Financial results of 2016 Surgical Revenue CAGR: 4% Sales EUR million EBITDA

23 Financial results of 2016 Sales Profit Wound Care & Surgical split Surgical Wound Care Surgical Wound Care

24 Moving forward

25 Four enablers for continuous growth Delivering on our product pipeline Execution in the market place Operational excellence Acquisitions SALES & MARKETING EXCELLENCE TREATMENT Data management and analytics CRM system Capabilities and training Accelerated investments to support growth and efficiencies? PREVENTION SURGICAL SOLUTIONS ADJACENCIES

26 SURGICAL SOLUTIONS PREVENTION TREATMENT Strong product pipeline PRODUCT PIPELINE Chronic wound management Acute wound management Post Op Antiseptics Skincare Turning & positioning Interface dressings Maintain our premium position Take share MIS - Laparoscopy Orthopaedics Staff protection Tray portal Indicative products and solutions over the coming period

27 New state-of-the-art factory in Czech Republic 17 May Mölnlycke s largest investment to date, EUR ~70 million, 7 th largest foreign direct investment in the country (1) Production of customised surgical procedure trays Meets the increasing demand from our customers of cost-effective and safe surgical solutions Increase efficiency by producing higher volumes Change of operating business model assembling trays at order, sterilising them in-house before shipping either directly to the customers or via distribution centres, offering increased flexibility 1. Seventh largest foreign direct investment in the Czech Republic in 2014, when the grants were signed

28 We are in a good position Long track record of strong organic growth Leading positions in core markets Strong product pipeline 4 Solid financial performance 5 Committed long-term owner

29 They are not going to rest on their laurels, they are going to get better, and they are going to prove every day that they are a better company. Surgeon, UK