2011 Preliminary Results Conference Call. 9 February, SORIN GROUP Presentation 1

Transcription

1 2011 Preliminary Results Conference Call 9 February, 2012 SORIN GROUP Presentation 1

2 DISCLAIMER This presentation contains management preliminary estimates and forward-looking statements, including information related to Sorin projected financial performance and the expected development of the med-tech industry, in particular in the cardiovascular segment. These statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, as of this date, though by their nature future estimates are uncertain and difficult to predict. Actual results or experience could differ materially from the information contained herein. This communication does not constitute an offer or solicitation for the sale, purchase or acquisition of securities of any of the companies mentioned in any jurisdiction. * * * Not yet audited data SORIN GROUP Presentation 2

3 Q RESULTS TOP-LINE PERFORMANCE: 197.9m (+0.8%)* Data in m and % Q Revenues Underlying growth* Cardiopulmonary Heart-lung machines Oxygenators Autotransfusion devices % +21.6% -6.2% +8.2% HLM: outstanding performance Oxy: Challenging q/q comparison CE mark for the Inspire TM adult model ATS: Successful launch of Xtra TM Cardiac Rhythm Management High Voltage Low Voltage % -5.5% +0.8% Global market slowdown SonR TM launch in the CRT-D segment Positive performance of pacemakers, mainly led by the Japanese market Heart Valves Mechanical Valves Tissue Valves % +1.2% +0.2% Solid performance of mechanical valves in the US and emerging markets Perceval TM and positive trend in the US offsetting weak performance in Europe * At comparable FX rates and perimeter SORIN GROUP Presentation 3

4 Q RESULTS P&L HIGHLIGHTS Data in m, unless specified Q Q Growth Revenues %* Gross Profit Gross Margin % % +4.0% EBITDA EBITDA Margin % % +1.7% EBIT EBIT Margin % % +16.5% Net Profit % % +23.8% * At comparable FX rates and perimeter SORIN GROUP Presentation 4

5 FY 2011 KEY ACHIEVEMENTS Challenging top line Financial 1.0%* increase vs 2010 Strong increase in profitability Gross Margin of 60.2% vs 58.9% in 2010 EBITDA Margin of 17.3% vs 16.1% in 2010 Net Profit up 48.5% to 58.0m R&D up to 9.4% of revenues from 9.0% in 2010 Free cash flow of 37.7 million Net Debt of million, notwithstanding unfavorable impact of special items ( 14.8m) Business Established and started implementation of longterm growth strategy Innovation 3 key products CE marked in 2011 (Perceval, SonR, Inspire) Kick-off of business development activities (MD Start, Enopace Biomedical) Geographic expansion BRIC countries growth over 40% Continued focus on operational excellence 2.5% cost reduction in 2011 Almost 15% cost reduction in the last 5 years * At comparable FX rates and perimeter Free cash flow: Net earnings + Depreciation & Amortization ± Working capital Capex. The item is net of impact from special items SORIN GROUP Presentation 5

6 FY 2011 RESULTS CARDIOPULMONARY: m (+4.2%)* Data in m and % 2011 Revenues Underlying growth* Heart-lung machines % Oxygenators % Autotransfusion devices % Heart-lung machines Record revenues for the 3 rd consecutive year Autotransfusion devices Strong performance in Europe, Japan and emerging markets Successful launch of Xtra (Europe and US) Oxygenators Solid performance in emerging markets and in the US Continuous focus on Inspire Expansion in the cannulae segment: acquisition of Estech product line and distribution agreement for Calmed product portfolio * At comparable FX rates and perimeter SORIN GROUP Presentation 6

7 FY 2011 RESULTS CARDIAC RHYTHM MANAGEMENT: m (-2.9%*) Data in m and % 2011 Revenues Underlying growth* High Voltage % Low Voltage % High Voltage Global market slowdown No contribution from new product launches in CRT in the first nine months SonR launch in fourth quarter stopped Sorin s share erosion in the CRT-D segment Low Voltage Sluggish market trend in the US and Europe, partially offset by share gains in Japan and emerging markets Innovation: SonR launch, CE mark for Paradym TM RF, Remote Monitoring clinical evaluation & pilot phase * At comparable FX rates and perimeter SORIN GROUP Presentation 7

8 FY 2011 RESULTS HEART VALVES: m (+1.5%*) Data in m and % 2011 Revenues Underlying growth* Mechanical Valves % Tissue Valves % Mechanical Valves Expected and continued shift to tissue valves Tissue Valves Growth in emerging markets and the US offsetting the slowdown in traditional tissue valves in Europe Positive contribution of Perceval Innovation Perceval CE mark for 21mm, 23mm, 25mm sizes 1,000 implants in 70 centers in over 20 countries New Mitroflow with Phospholipid Reduction Treatment TM Conditional IDE approval for Freedom Solo TM in the US * At comparable FX rates and perimeter SORIN GROUP Presentation 8

9 FY 2011 RESULTS COST CONTAINMENT & INNOVATION Gross Profit SG&A R&D Data in m Data in m Data in m % % 58.9% 60.2% 39.4% 39.0% % % 9.4% st year of Gross Margin above 60% 130bps expansion driven by manufacturing efficiencies SG&A net of hedge accounting impact equal to 38.8% (38.0% in 2010) Priority given to marketing for new product launches and to geographic expansion initiatives R&D spending SonR & Remote Monitoring Clinical trials for Perceval and Solo valves Inspire manufacturing start-up SORIN GROUP Presentation 9

10 FY 2011 RESULTS PROFITABILITY EBITDA EBIT Net profit Data in m Data in m Data in m % +7.1% % % +22.7% % % +48.5% % Continuous improvement of EBITDA margin Special items amounted to - 0.1m in 2011 and - 6.9m in 2010 EBIT before special items was 87.8m ( 78.4m in 2010) Improved operating profit Lower interest expenses Decrease of average net debt Lower spread applied to M/L term debt Tax rate at 27.5% SORIN GROUP Presentation 10

11 FY 2011 RESULTS NET DEBT Net Debt Evolution Data in m, year-end data 3.2x x x x Net Debt Net Debt/EBITDA Net debt down to 105.9m, equal 0.8x EBITDA EIB financing facility due bullet June 2014 ( 95.9m) Free cash flow of 37.7m, despite a significant deterioration in the collection cycle in Spain Negative contribution of special items for 14.8m Difference in fair value of hedging portfolio Business development activities (Estech, Enopace, MD Start, partnership for lead portfolio) SORIN GROUP Presentation 11

12 GUIDANCE FOR FY 2012 ALIGNMENT TO STRATEGIC PLAN EBITDA Margin Data in % on Revenues 10.4% 12.4% 14.4% 16.1% 17.3% > 20.0% /2015 EBITDA Margin expansion is driven by Gross Margin improvement and operating cost containment The over 20% EBITDA target will be reached as expected After a strong improvement reported in 2011, despite a challenging top line, 2012 profitability will be characterised by Gross Margin expansion Commitment to S&M and R&D Continuous manufacturing efficiencies New product launches Unfavourable geographic mix Business development initiatives Remote Monitoring & Inspire Emerging markets Stronger margin improvement expected in 2013 SORIN GROUP Presentation 12

13 GUIDANCE FOR FY Guidance Revenue growth* %* Net Profit growth % For the first quarter 2012, Sorin expects revenues to grow 1 2%* over the same period of 2011 *At comparable FX rates and perimeter SORIN GROUP Presentation 13

14 Expand in fast-growing emerging markets 2012 STRATEGIC DRIVERS CARDIOPULMONARY Reinforce presence in autotransfusion segment leveraging on the global launch of Xtra Enter attractive adjacent segments Focus on Inspire roll-out Conversion of existing customers Optimization of the manufacturing process Product Key features Opportunity Expected launch XTRA New ATS (equipment and disposable sets) Increase ATS global market share H H Inspire Improved performance Ease of use Manufacturing efficiency Conversion of existing customers Manufacturing efficiency Increase market share System sell Life Box Portable HLM for ECMO and emergency Enter adjacent market I/C H H DM S2 Data Management system (link between HLM and disposable) Efficiency gains for the clinicians H SORIN GROUP Presentation 14

15 2012 STRATEGIC DRIVERS CARDIAC RHYTHM MANAGEMENT New products launches and roll-outs execution SonR Remote Monitoring New lead portfolio Expand in fast-growing emerging markets Segment Product Opportunity Expected launch Brady REPLY REPLY 200 (Sleep Apnea) Enter China H Expand brady portfolio H Tachy PARADYM RF (Remote enabled) Growth opportunity H REMOTE MONITORING Industry standard, new business opportunity, will enable for new algorithms H1 & H Leads TILDA, VIGILA, CELERITY (comprehensive range of leads) Leverage on new lead portfolio to drive system sales growth H H SORIN GROUP Presentation 15

16 Perceval contribution to growth 7-9m sales expected in 2012 Ongoing penetration in emerging markets Sales execution in Europe and the US 2012 STRATEGIC DRIVERS HEART VALVES Product Key features Opportunity Expected approvals Perceval Extended indications (patients over 65 years) Perceval MIS introducer & accessories Perceval new accessories kit Increase accessible patient population Platform for minimally invasive surgery Ease of use H Mitroflow Proven exceptional durability and hemodynamics Access to the Japanese tissue heart valve market 2012/2013 Valsalva Conduit Ease of use design that combines the Mitroflow valve and a valsalva conduit Create a biological valve conduit niche H SORIN GROUP Presentation 16

17 2012 STRATEGIC DRIVERS ROADMAP TO SUSTAINABLE GROWTH New product launches and successful execution Additional investments in innovation Expansion in the fast-growing emerging markets Continuous focus on operational and financial discipline Innovating for improving healthcare costs management and patients outcome Sales Net profit SORIN GROUP Presentation 17