3Q17 GBT Results Presentation

Transcription

1 3Q17 GBT Results Presentation Montevideo, November 14 th 2017 B3: GBIO33

2 Highlights Profit and loss statement 3Q17 3Q16 Δ% 3Q17* Δ% 9M17 9M16 Δ% 9M17* Δ% Gross revenue % % % % Net revenue % % % % Cost of goods sold % % % % COGS (%) -49.6% -52.0% -48.6% -47.8% -53.2% -46.6% Gross profit % % % % Gross margin (%) 50.4% 48.0% 51.4% 52.2% 46.8% 53.4% Recurring operating expenses % % % % Recurring OPEX (%) -32.1% -28.3% -32.0% -33.3% -32.1% -33.8% (+) Stock grants (+) Stock options Opex including non-cash items % % % % OPEX (%) -40.1% -28.3% -39.5% -39.4% -32.1% -39.8% Operating income % % % % EBIT margin 10.3% 19.7% 11.9% 12.8% 14.6% 13.5% (+) D&A % % % % (+) Stock grants (+) One-time adjustment % % % % Adjusted EBITDA % % % % Adjusted EBITDA margin 21.0% 22.2% 21.5% 22.0% 17.8% 22.5% EBITDA % % % % Note: (*) Growth on a constant currency basis 2

3 Gross revenues Components of revenue Therapeutic area components of revenue 3Q17 vs. 3Q16 (% of gross revenue) Therapeutic area components of revenue 9M17 vs. 9M16 (% of gross revenue) Others 4% 2% 2% 6% 3% 3% Special treatments and I&I 15% 13% 13% 17% 13% 13% Orphan and rare diseases 13% 18% 17% 13% 17% 16% Infectious diseases 41% 32% 32% 38% 32% 34% Oncology and oncohematology 27% 35% 35% 27% 34% 34% 3Q16 3Q17* 3Q17 9M16 9M17* 9M17 Note: (*) Growth on a constant currency basis 3

4 Recently launched products Components of revenues GBT consolidated gross revenues Recently launched products BRL million) launch 3Q17 3Q17* 3Q Q launch 3Q17* 2Q % organic (ex FX) Q launch 3Q17* 3Q % organic (ex FX) 3Q Q16 4 launches Base portfolio 3Q17* 3Q17 9M16 9M17* 4 launches 4 launches launches 4 launches launches 4 launches launches Base portfolio 3Q17* 3Q17 Base 3Q16 portfolio Base portfolio Base portfolio Base portfolio Base portfolio Base portfolio 9M17 4 launches Base portfolio 2015 launch 3Q17* 3Q % organic (ex FX) Note: (*) Growth on a constant currency basis 4

5 Net revenues Country breakdown Net revenues by country Geography components of revenue 3Q17 (% of net revenue) -3% organic (ex FX) 8% organic (ex FX) Others Colombia Mexico Mexico City Colombia Bogotá 19% Ecuador Quito Argentina Peru Lima Bolivia La Paz Chile Santiago 29% 43% Uruguay Montevideo Brazil Sao Paulo Paraguay Asunción Brazil Argentina Buenos Aires 3Q16 3Q17* 3Q17 9M16 9M17* 9M17 3Q16 3Q17* 3Q17 9M16 9M17* 9M17 Note: (*) Growth on a constant currency basis 5

6 Opex Operating expenses Expenses 3Q17 3Q16 Δ% 3Q17* Δ% 9M17 9M16 Δ% 9M17* Δ% Selling and marketing expenses % % % % Recurring general and administrative expenses % % % % (+) Stock grants G&A expenses including non-cash items % % % % R&D, medical, regulatory and bus. dev. expenses % % % % Reorganization, integration and acquisition expenses % % % % Other operating income/(expenses) % % % % Recurring operating expenses % % % % Operating expenses incl. non-cash and one-timers % % % % Note: (*) Growth on a constant currency basis 6

7 EBITDA EBITDA and adjusted EBITDA Adjusted EBITDA calculation Adjusted EBITDA Adjusted EBITDA margin 3Q17 3Q16 3Q17* 9M17 9M16 9M17* 22% 22% 21% 18% 23% 22% Net income (loss) Financial expenses LTM adjusted EBITDA: % organic (ex FX) Income tax (+) D&A (+) Stock Grants (+) One-time adjustment Adjusted EBITDA Adjusted EBITDA margin 21.0% 22.2% 21.5% 22.0% 17.8% 22.5% EBITDA % organic (ex FX) % nominal decrease 3Q16 3Q17* 3Q % nominal growth 9M16 9M17* 9M17 Note: (*) Growth on a constant currency basis 7

8 Financial expenses Net financial expenses breakdown Interest, FX and other financial expenses 3Q17 3Q16 Δ% 9M17 9M16 Δ% Interest and other financial expenses % % Bancolombia % % PECs % % Other finance expenses, net % % FX income/expenses, net % % Net financial results % % 8

9 Taxes GBT s effective tax rate GBT s effective tax rate calculation Q17 2Q17 3Q17 9M17 Adjusted EBT (1)(2) Current income tax Cash effective tax rate % 24.1% 27.1% 14.8% 22.1% 1 Isolating interests on the non deductible due to acquisitions 2 Normalized for stock grants (one-timer, non-cash item, which has no tax impact) regarding adjusted EBT for 9M17 3 Current income tax / Adjusted EBT 9

10 Net income Net income and adjusted net income 3Q17 adjusted net income 3Q16 adjusted net income M17 adjusted net income 9M16 adjusted net income

11 Financials Net cash flow and working capital highlights Net cash flow from operating activities As % of EBITDA Cash conversion cycle (Days) 22% 47% 80% 74% 3Q16 4Q16 1Q17 2Q17 3Q17 Days sales outstanding Days inventory outstanding Days payable outstanding (142) (183) (178) (177) (191) Cash conversion cycle % (1) Working capital (% net revenue) % (1) 21% 22% 25% 27% 26% 3Q16 3Q17 9M16 9M17 3Q16 4Q16 1Q17 2Q17 3Q17 Note: ¹ As % of EBITDA Excluding stock grants 11

12 CAPEX Maintenance and intangible CAPEX CAPEX 3Q17 vs. 3Q16 CAPEX 9M17 vs. 9M16 Intangible CAPEX as % of net revenue Intangible CAPEX as % of net revenue 17% 6% 7% 3% -45% -64% Q16 3Q17 9M16 9M17 Maintenance CAPEX Intangible CAPEX Maintenance CAPEX Intangible CAPEX Maintenance CAPEX Intangible CAPEX Maintenance CAPEX Intangible CAPEX 12

13 Financials Net indebtedness Net debt / adjusted EBITDA¹ Times interest earned: adjusted EBITDA / interest expense¹ 4.1x 4.1x 2.2x 0.4x 2Q17 3Q17 2Q17 3Q17 Debt overview as of 3Q17 Debt reconciliation 180 Total debt 2Q Cash Net debt 3Q Total debt 3Q17 < 1 Year < 3 Years < 5 Years Note: ¹Adusted EBITDA LTM and net debt as of September 30,

14 3Q17 Avenues of growth Strategic agenda evolving as planned 1. Contracted pipeline 2. Geo-expansion Mexico (Top products licensed for Mexico) Agreement for 2 novel oncology molecules for all Latam, excluding Mexico Agreement for 2 novel neurology drugs for all Latam Beginning of sales in Mexico Brazil launch in October and sales initiated in November Registration approval in Argentina Estimated launch in1q18 Registration approval in Panama in 2Q17 Estimated launch in Panama in 1Q18 Sales and distribution agreement for all Latam Pre-marketing activities for 2018 BGx TEFALA launched in Argentina, which is a combination of three molecules to treat HIV BGx approvals in Colombia, Chile and Ecuador 3. Inorganic Growth GBT is constantly looking for M&A opportunities in target countries if they fit certain conditions: Have high-added value drugs on their portfolio Operate in strategic therapeutic classes Have the majority of the products under the specialty segment Have an strategic fit with GBT Target countries currently under analysis Underpenetrated market, target for consolidation Sound corporate governance, and financial discipline Wide LatAm experience increasing range of targets Successful integration of businesses and cultures 14

15 Eisai oncology franchise Strong value propositions with immediate sales in Brazil FDA/EMA approved for Advanced Renal Cell Carcinoma (arcc) and Differentiated Thyroid Cancer (DTC) Advanced Phase III stage for First Line RCC, Hepatocellular Carcinoma, and Endometrial Carcinoma Early Phase II stage for Non Small Cell Lung Cancer (NSCLC), Melanoma, Squamous Cell Carcinoma of Head & Neck, and Urothelial Carcinoma Approved in Brazil (ANVISA + CMED) and ready to be launched for DTC - arcc application undergoing Territory includes all Latin America except Mexico GBT owns the Marketing Authorization Ease to use once-daily dosing Likely to become Standard of Care for radio-iodine-refractory thyroid cancer First drug to beat Sorafenib in HCC head-to-head Phase III trial FDA/EMA approved for metastatic Breast Cancer (mbc) and Liposarcoma Advanced Phase III stage for mbc Tripe Negative Approved in Brazil for mbc and launched 2 years ago Territory includes all Latin America except Mexico GBT owns the Marketing Authorization First and only single-agent chemotherapy with a significant overall survivor (OS) benefit in pretreated MBC Convenient administration: 2 to 5 min IV injection twice every three weeks Does not require complex pre-medication Lower rates of neuropathy than existing breast cancer drugs and general lower collateral effects 15

16 Eisai central nervous system franchise New therapeutic line with important growth prospects FDA/EMA approved for the treatment and the adjunctive treatment of partial onset seizures and primary generalized tonic-clonic seizures Approved in Brazil (ANVISA + CMED) and ready to be launched Territory includes all Latin America GBT owns the Marketing Authorization Partner with strong neurology pipeline in degenerative disorders Synergies with rare diseases Recently approved in FDA for monotherapy in Partial-Onset Seizures Ease to use once-daily dosing FDA/EMA approved for the treatment and the adjunctive treatment of seizures associated with Lennox-Gastaut Syndrome (LGS) Approved in Brazil (ANVISA + CMED) and ready to be launched Territory includes all Latin America GBT owns the Marketing Authorization Partner with strong neurology pipeline in degenerative disorders Synergies with rare diseases Broad Spectrum Efficacy in total seizure reduction LGS is a high unmet medical need 16

17 Further pipeline Continuous renewal of deal flow with potential partners ensures constant access to high end assets Ovarian Cancer Acute Myeloid Leukemia Erythropoietic Protoporphyria Myelodysplastic Syndrome Acute Myeloid Leukemia Duchenne Muscular Dystrophy mbreast Cancer HER2+ Ovarian Cancer CNIV Acute Myeloid Leukemia Specialty Portfolio (South Cone ex Argentina) Deep Vein Thrombosis Mucopolysaccharidosis Epidermolysis Bullosa Ovarian Cancer (Andean Region) Melanoma (Andean Region) Chronic Refractory Gout Parkinson's Disease Pseudomembranous Colitis Ovarian Cancer Urea Disorders Parkinson's Disease MRD Gram Negative R/R Multiple Myeloma Ovarian Cancer Ulcerative Colitis Neuroblastoma CNS Portfolio CNS Portfolio End 3Q17 Invasive Candidiasis (Latam ex Brazil) Renal Cell Carcinoma CNS Portfolio 34 deals Organ Rejection +50 Molecules Anti-infectives Portfolio (Andean Region) +90% deals for Latin America +90% deals on commercial stage Anti Infectives Oncology Rare Disease I&I and Special Treatments Licensor region Source: As of 3Q All products will be sold in all Latin America, except when noted differently 17

18 Disclaimer This presentation may contain forward-looking statements. Such statements are not statements of historical facts and reflect the beliefs and expectations of the Company s management. The words anticipates, believes, estimates, expects, forecasts, plans, predicts, project, targets and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Known risks and uncertainties include but are not limited to the impact of competitive services and pricing market acceptance of services, service transactions by the Company and its competitors, regulatory approval, currency fluctuations, changes in service mix offered, and other risks described in the Company s registration statement. Forward-looking statements speak only as of the date they are made and Grupo Biotoscana does not undertake any obligation to update them in light of new information or future developments. 18

19 IR Contact Melissa Angelini