2016 Results Summary. Warsaw, 16 th March 2017

Transcription

1 2016 Results Summary Warsaw, 16 th March 2017

2 AGENDA 2016 Summary Market Environment and Financial Results Forecast Performance and Profit Share Pro-patients Businesses Perspectives for 2017

3 2016 Summary Clients Satisfaction evaluation* Employee Involvement Net Result** Pelion NEUCA 4.10 vs in % 2016 PLN million pp YOY 9% YOY Farmacol 3.87 vs in 2015 vs in % 2015 PLN million *average results of a General Clients Satisfaction in 2016 in the Client s Satisfaction Barometer survey, compared with 2015 **The results exclude the non-recurring items

4 2016 Results Summary Net Profit PLN million 9% Gross Margin On Sales in 2016 at the level of 10.1% 0.3 pp Growth by 9% YOY vs. 9.8% in 2015 EBITDA PLN million Growth by 14% YOY 14% Net Indebtedness PLN 90.5 million Reduction by 23% YOY -23% *The results exclude the non-recurring items

5 Market Environment

6 Pharmaceuticals wholesale market Pharmaceuticals wholesale market value by quarters and dynamics YOY Q Q (PLN billion, %)* Market growth in 2016 at the level of 5,4% Number of pharmacies growth to nearly 15 thousand (+ 209 pharmacies) Significant growth in the OTC pharmaceuticals segment (9.8% YOY) Launch of a governmental programme of free pharmaceuticals for senior citizens in Q Above-average growth of flulike infection in Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q *data by IMS Health

7 NEUCA market position Quarterly NEUCA Group shares by market segments Q Q (%) Shares in December 2016 at the level of 29.8% Co-operation with over 12.4 thousand pharmacies in Poland (80% of all the operating pharmacies) Systematic improvement of the market position on the independent pharmacies market Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Market Shares - combined Market Shares - pharmacy chains Market Shares - independent pharmacies Growing popularity of the NEUCA programmes for pharmacies: 5051 unique pharmacies in 2016 vs in 2015

8 Clients satisfaction - NEUCA a quality leader* Transport service Continuity of supplies Trade conditions Logistics service Complaint services NEUCA a market leader with regards to the clients satisfaction among the stock listed distributors Valuation in all the categories above the national average and above the comparative companies The biggest advantages in transport and complaint services and in trade conditions. Regular offer attractiveness Assortment width NEUCA Pelion Farmacol Average *data IMS Health, Monitor Apteczny Q4 2016

9 Clients satisfaction Key areas* OFFER SUPPORT SERVICE *data Client s Satisfaction Barometer December 2016 a leader among the big competitors a leader among all the competitors NEUCA

10 Employee Involvement* TALKS Reliable employer brand Engaging leader ENGAGING WORK ENVIRONMENT Culture of high results REMAINS 29% 41% 48% Practice and policy Work and conditions ACTS + 19 pp from pp from 2015 Basic aspects *data from the survey by AON Hewitt

11 Financial Results

12 Sales revenues (PLN billion) % 7.08 Sales dynamics in Q4 supported by the growth of shares in the independent pharmacies area Stable Group s position regarding the market shares % 1.85 Q Q1-Q Q Q1-Q4 2016

13 Operating profit and EBITDA Operating profit (PLN million)* % EBITDA (PLN million)* % % % 38.4 Maintaining the cost effectiveness of the basic activity/core activity Q Q1-Q Q Q1-Q Q Q1-Q Q Q1-Q EBITDA margin at the level of 2.4% growth by 0.26 pp *The results exclude the non-recurring items

14 Gross and net profit Gross profit (PLN million)* Net profit (PLN million)* % % % % 26.9 Q Q1-Q Q Q1-Q Q Q1-Q Q Q1-Q Higher effective tax rate than in 2015 Net gross margin growth by 0.1 pp up to 1.57% in 2016 *The results exclude the non-recurring items

15 Cash flows (PLN million) -42,0-22,0 Cash, 1st January 2016 Operating activity Tax Investing activity Buy-back and dividend Others Balance and loans change Cash, 31st December 2016 Loss of net indebtedness to the level of PLN 88.4 million, net debt/ebitda at the level of 0.5

16 Private label product segment results (PLN milion) Sales to pharmacies value (PLN million) and dynamics YOY Net profit (PLN million) and dynamics YOY % % 17.8 Q1-Q Q1-Q Q1-Q Q1-Q Private label products add up to 16% of the Group s net result Product portfolio optimisation: 449 products at the end of 2016 vs 455 at the end of 2015 Focus on the products rotation growth in the pharmacies

17 Forecast Performance and Profit Share for 2016

18 Net profit vs. forecast 2016 NET PROFIT MILLION TARGET 110 MILLION 101% FORECAST

19 Profit share Dividend value (PLN million) buy-back (PLN million) Dividend value per share (PLN) 26.8* 11, ,6 14, , , ,33 22, * *the Board s recommendation Joint CAGR of dividend and shares buyback programme in years at the level of 34%

20 Pro-patient Businesses

21 Świat Zdrowia Outpatient Clinics II.2017 Number of clinics Patients database (thousand) x Number of clinics in a given region * Status at the end of February 2017

22 Clinical trials Creation of a mutual brand for the SMO companies operating in the Group Introduction of the uniform standards and increase of the trials quality 120 trials in phases 1-4 executed in clinical trials centres Execution of the first contract in oncology that encompasses 30% of the entire clinical trials market

23 Telemedicine 1.5 thousand patients in Diabdis, programme for the diabetics Contract with Johnson & Johnson for the integration of the glucometer with Diabdis device Nearly 28 thousand collected measurements from the diabetics Investment in 24% of Telemedycyna Polska shares, with a possibility to increase to 51% by 2019 Telemedycyna Polska a pioneer of the telemedicine market in Poland, yearly consults of 50 thousand patients

24 E-commerce Booking of pharmaceuticals and pick-up in a residential unit click & collect model On-line consults with pharmacists Completed tests in Wielkopolska, plans to add further 250 pharmacies in the biggest cities in the country 70 thousand users regularly visiting the Ortopedio.pl site Possibility to conduct consults with physiotherapists 420 pharmacies co-operating with Ortopedio.pl

25 Perspectives for 2017

26 Forecast NET PROFIT Growth by 3.5% 2017 NET PROFIT 115 MILLION MILLION

27 Thank you