Webcast Year end results February 19, 2014

Transcription

1 Webcast Year end results 2013 February 19,

2 Disclaimer Statements included herein that are not historical facts are forward-looking statements. Such forward-looking statements involve a number of risks and uncertainties and are subject to change at any time. In the event such risks or uncertainties materialize, Meda s results could be materially affected. The risks and uncertainties include, but are not limited to, risks associated with the inherent uncertainty of pharmaceutical research and product development, manufacturing and commercialization, the impact of competitive products, patents, legal challenges, government regulation and approval, Meda s ability to secure new products for commercialization and/or development and other risks and uncertainties detailed from time to time in Meda AB s interim or annual reports, prospectuses or press releases. 2

3 Meda attendees Maria Carell, Executive Vice President North America/Australia Dirk Groen, Executive Vice President Marketing OTC Erik Haeffler, Executive Vice President Manufacturing & Sustainability Joachim Maus, acting Executive Vice President Scientific Affairs Henrik Stenqvist, Executive Vice President CFO Hans-Jürgen Tritschler, Executive Vice President Marketing Rx Mårten Österlund, Executive Vice President Business Development 3

4 2013 overall highlights CEO Jörg-Thomas Dierks

5 2013 summary A turning point for our business: +4% organic growth Sales of SEK 13.1 billion Increase driven by Dymista, Emerging Markets and OTC Continued investments to build a stronger Meda Increased Operating expenses by ca. SEK 300 million EBITDA margin of 28.5% (30.4%) Strong free cash flow generation Free cash flow in line with last year at ca. SEK 2.7 billion A number of strategic achievements: Sharpened focus: efforts prioritized towards dermatology, respiratory / allergy and OTC Dymista launched in Europe capturing market share Two acquisitions: Acton (Aerospan) and ZpearPoint (EB24), near term commercialization 2014 and 2015 Outcome for 2013 somewhat better than guidance 5

6 Q overall highlights CEO Jörg-Thomas Dierks

7 Q summary Another quarter of improved organic sales growth, +10% Strong growth across several businesses: Western Europe +8%, USA +11%, Emerging Markets +24% Dymista a key growth driver but well complemented by other sizeable products Int l OTC can do better, Meda Russia negative growth Strong EBITDA growth, +14% Margin expansion from 28.0% in Q to 29.4% Continued good cash flow conversion Every 1 SEK of EBITDA-profit 0.72 SEK of free cash flow 7

8 Continued strong growth in all regions Organic sales growth by quarter and region in 2013 (%) Q Q Q Q % 24% 4% 13% 11% 0% 1% 8% 5% 7% USA -1% Western Europe Emerging Markets -6% 8

9 Growth in 8 out of 10 key products in Q4 Sales (SEK million) Q Index constant exchange rates Tambocor Betadine Dymista Elidel Aldara/Zyclara EpiPen Minitran Solco SB12/CB Astepro Footnote: 1. Refers to sales outside North America 9

10 Dymista: Market share progress (i) 2,0% Dymista: Market share in US (%) 1,8% 1,6% 1,4% 1,2% Q2 2013: 1.5% Q3 2013: 1.5% Q4 2013: 1.6% Today: 1.5% 1,0% 0,8% Q1 2013: 1.1% 0,6% Q4 2012: 0.7% 0,4% 0,2% 0,0% Footnote: Market shares for total market (R1A1) by volume, data as of 13 February,

11 Market share progress (ii) 2,5% Dymista: Market share in US (%) 2,0% #2 brand in around 10 months after launch 1,5% #2 1,0% 0,5% 0,0% Dymista Veramyst QNASL Zetonna Footnote: Market shares for total market (R1A1) by volume, data as of 10 January,

12 Good market position 23,2% Dymista: Market share (%) 6,4% 5,4% 4,7% 4,3% 3,9% 3,2% 3,0% 2,4% Ireland Germany Finland Austria Italy US Norway Sweden UK Weeks since launch Footnote: Market shares for total market (R1A1) by value, data as of 13 February,

13 SEK 163 million of Dymista sales in Q4 Sales by quarter (SEK million) Q Q Q Q Q actual of SEK 449 million 13

14 Emerging Markets: Continued outperformance Overall strong performance, +24% Good quarter in some key markets Turkey +27% Middle East +22% Decline in Russia Destocking by wholesalers, market slowdown Continued strong development in some newly established markets Brazil China Commentary Organic growth by quarter in 2013 (%) 25% 21% 20% 15% 10% 7% 5% 5% 24% 0% Q Q Q Q

15 OTC: Improved growth in Q4 Commentary Improved sales performance for several markets and products Organic growth by quarter in 2013 (%) 10% 9% Reduced decline in Nordics International brands not on track yet 8% 6% 7% 4% 2% 0% -2% -2% 0% Q Q Q Q

16 Guidance 2014 For 2014 we foresee continued good organic growth in line with 2013 and improved EBITDA margin 16

17 Key drivers for 2014 Dymista, increased sales in USA and Europe Emerging Markets, continued strong growth In-market sales growth for CB12 Aerospan launch in the US (Q2 2014) Elidel, further growth supported by new studies and publications Roll-out of dermatological products Zyclara and Acnatac 17

18 Financial highlights CFO Henrik Stenqvist

19 Q summary (SEK million) Q Q Net sales Growth 8% -8% Organic growth 10% 0% Gross profit Margin 60% 61% Operating expenses EBITDA Margin 29.4% 28.0% Net financial items Tax Net profit EPS (SEK) / Footnote: 1. Excluding a positive non-recurring effect of SEK 179 million in Q due to a reduction in the Swedish corporate tax rate 19

20 Organic growth of SEK 311 million in Q4 Q4 2013: Sales bridge (SEK million) Q FX impact Acquired products Discontinued products Valeant revenue Organic growth Q

21 1.4%-points EBITDA margin expansion EBITDA margin Q Q Western Europe 35.1% 36.0% USA 47.7% 44.5% Emerging Markets 20.8% 25.7% Meda group 28.0% 29.4% 21

22 Strong cash flow in Q4 SEK 730 (803) million of free cash flow Free cash flow margin of > 21% (25%) 72% (90%) of EBITDA turns into free cash flow 22

23 Strong cash flow in 2013 deleveraging to SEK 15.0 billion in net debt Despite lower EBITDA, free cash flow in line with last year stronger free cash flow conversion (SEK million) % 70% Free cash flow conversion (%) 68% 72% % % % % EBITDA Free Cash Flow 23

24 A specialty pharma company which operates on the basis of a value chain specialization with expertise in areas of therapeutic focus. Q&A