Weifa Third quarter 2015

Transcription

1 Weifa Third quarter 2015 Kathrine Gamborg Andreassen (CEO) and Simen Nyberg-Hansen (CFO) 28 October

2 Presentation outline Highlights I Operational performance II Financial performance III Summary IV Appendix V 2

3 Highlights for the third quarter 2015 Stable revenue development in the third quarter Positive momentum YTD Maintained high market share in all categories and segments in both channels Cough and cold growth continues - Successful launch of Bronkyl forte 600mg Dividend of NOK 0.09 per share approved at EGM on 25 September Paid to shareholders on 6 October EGM approved 2:1 reverse split 3

4 Key financials second quarter Revenue NOK million Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Note: Historical figures represent reported revenue for the consumer health business in Weifa AS. 4

5 Presentation outline Highlights I Operational performance II Financial performance III Summary IV Appendix V 5

6 Well positioned in a growing market Norwegian OTC market* Current market size NOK million - 7% growth in the pharmacy channel - 8% growth in the mass market channel Most major OTC categories are growing in the pharmacy channel Cough, anti smoking and nasal spray main growth contributors in mass market Weifa s position* Well positioned in both the pharmacy and mass market channels - 15% market share in the pharmacy channel - 39% market share in the mass market channel Products with high brand recognition Documented record in Rx to OTC switches and brand building Size, growth and market shares for Norwegian OTC categories LTM Q3 2015* 25% 20% 15% Pain relief 245 mnok Antismoking 185 mnok Weifa presence No presence 10% Gastro 153 mnok Nasal spray 133 mnok 5% Allergy 36 mnok *) Amounts are based on LTM Q3 2015, percentages are based on LTM Q vs. LTM Q All figures are measured in pharmacy purchasing prices. Source: LMI/Farmastat, Nielsen and Weifa Cough 48 mnok 0% 0% 5% 10% 15% 20% 25% 6

7 Focus on four key categories Pain Cough & cold Nutra Wound Number 1 player Number 1, 2 and 3 in certain segments Number 1 and 2 in niche segments Number 1 in disinfection 7

8 Innovative company with an exciting product pipeline Strong track record in first to market OTC switches in Norway Paracet 500 mg Ibux 200 mg Ibux 5 % gel Ibux 400 mg Ibux OTC age limit lowered from 12 to 1 year Samin Glucosamin Bronkyl 200mg Acetylcystein Bronkyl 600mg Acetylcystein... and a driver of innovation By the end of 9M 2015, Weifa has its strongest and most exciting pipeline ever 8

9 Third quarter development mixed picture Slight decline in sales for general pain relief products in the OTC market in the quarter Increased sales from Rx market - Rx pain products performs well - New switch agreements signed for 2015 Growth accelerating for cough & cold products - Bronkyl revenues up both on existing portfolio and newly launched Bronkyl forte 600mg - Tussin sales also growing, while revenues from Dexyl and Nazamér declined - Category CAGR of 34% since 2011 Growth in Nutraceuticals segment stalled - Lower sales of Complete Cranberry - Complete Multi continues to perform well Weifa consumer health sales growth NOK million % Q Q % -17% -11% Pain relief Cough & cold Nutraceuticals Wound treatment 9M M % % % -10% 5 0 Pain relief Cough & cold Nutraceuticals Wound treatment *) Weifa net sales Q vs Q Source: Weifa 9

10 Weifa maintains leading position in key segments Maintained position as the leading OTC company in the Norwegian pharmacy channel - 15% market share - 39% market share in mass market LTM market share development* Percent 87% 88% 75% 74% Maintained leading positions in pain relief - Paracet and Paracetduo market share increased despite increased competition from generic brands 30% 29% 24% 26% - Ibux market share impacted by competing brands driving market growth Stable Rx market share for Paralgin Forte Paracet + Paracetduo (paracetamol) Ibux + Proxan (NSAID) Paralgin Forte incl. Trampalgin Tussin + Bronkyl (cough) RX market share is up for both Paracet and NSAIDs Increasing market share in OTC cough & cold segment - Weifa is no. 1 in the expectorant segment - LTM sales of Tussin and Bronkyl up 30% *) Market share by volume, 12 months rolling Source: LMI/Farmastat, Nielsen and Weifa. 10

11 Presentation outline Highlights I Operational performance II Financial performance III Summary IV Appendix V 11

12 Company performance Revenue NOK million EBITDA and margin NOK million Group charges CMO margin to Vistin Pharma 19 35% 29% 30% 15 25% 25% 20% 10 15% 5 10% 5% Q Q Q Q % Q revenue flat YoY - Growth for cough and cold, offsetting decline for pain, nutraceuticals and wound treatment categories Improvement from Q impacted by split Nine-month revenues up approximately 5% - Growth for all categories except wound treatment Q EBITDA impacted by: - Negative currency effects for COGS - Adjusted for CMO margin effect and Group charges, EBITDA was NOK 19 million and margin 25% 12

13 Dividend and reverse split The EGM of Weifa approved dividend of NOK 0.09 per share - Paid on 6 October 2015 to shareholders at 25 September 2015 Dividend policy - Future excess cash will be paid as an annual dividend to shareholders - When new acquisitions or other transactions emerge, the board will propose and ask shareholders for approval of the transaction and related financing The EGM approved 2:1 reverse split - Effective as of 15 October Intended to secure an adequate pricing process for the shares - Compliance with section 2.4 of the continuing obligations of stock exchange listed companies issued by Oslo Børs 13

14 Consolidated income statement (NOK 1 000) Q Q M M Total revenue and income EBITDA (27 635) (35 355) (30 411) EBITDA adjusted* (2 093) (9 680) Depreciation, amortisation and impairment (2 900) (2 128) (9 699) (2 128) (4 685) Net finance income/(expense) (7 304) (2 021) (16 663) 600 (7 278) Profit/(loss) before tax from continuing operations (31 784) (36 883) (42 374) Profit/(loss) from continuing operations Profit/(loss) for the period from discontinued operations** - (2 820) (4 492) (4 464) (6 702) Profit/(loss) for the period * Q EBITDA adjusted for NOK 1.8 million in calculated cost of employee options ** The B2B operations, which was sold to Vistin Pharma as of 1 June 2015, is reported as discontinued operations for both the second quarter and the first half of One-off costs related to the spin-off of the B2B business are reported as costs for the divested operations and is also included in discontinued operations. 14

15 Cash flow (NOK 1 000) Q Q M M Cash flow from operating activities (12 078) (25 706) (8 215) (28 201) (8 823) Cash flow from investing activities (9 759) ( ) ( ) ( ) Cash flow from financing activities (4 884) (66 318) Net change in cash and cash equivalents (26 721) Cash and cash equivalents beginning period Cash and cash equivalents end period Cashflow from operations affected by build-up in working capital end of September partly due to vacation-related timing effects on invoicing. These effects have been reversed in early October Net cash flow from investing activities includes a consideration of NOK 13.9 million paid for various licensing rights and NOK 3.7 million received from the sale of Weifa s holding of Navamedic ASA shares 15

16 Financial position (NOK 1 000) Total Assets Total equity Total liabilities Total Equity and Liabilities Net interest bearing debt Cash and cash equivalents amounted to NOK million at the end of the quarter - Dividend of NOK 0.09 per share paid to shareholders on 6 October 2015, totaling NOK million Total borrowings NOK million after Weifa bought back NOK 50 million of own bonds in 1Q15. Net interest bearing debt of NOK million Equity ratio of 74.0 percent 16

17 Presentation outline Highlights I Operational performance II Financial performance III Summary IV Appendix V 17

18 Summary and outlook Nine-month 2015 revenues increased by about 5% with an EBITDA margin nearing 21% Weifa expects: - Full-year revenue growth vs Improved EBITDA margin full-year vs first nine months Maintain high market share in all categories and segments in both channels Bronkyl forte 600mg launch strengthens Weifa s position in the cough segment Dividend of NOK 0.09 per share and reverse split approved and implemented Strong product pipe line: - Launch Feb 2016 for all major product segments 18

19 Q&A 19

20 Thank you for your attention! Next event: 4th quarter 2015 presentation 18 February

21 Presentation outline Highlights I Operational performance II Financial performance III Summary IV Appendix V 21

22 Management Team Kathrine Gamborg Andreassen Chief Executive Officer Ms Gamborg Andreassen joined the Weifa team in August 2012 as head of Consumer Health Business, and replaced Kjell-Erik Nordby as CEO on 1 June She is an experienced marketing professional and has held several top management positions within the FMCG, food and health business. Gamborg Andreassen holds an MSc in Business Strategy & Marketing from the University of Wisconsin. Astrid T. Bratvedt Vice President R&D Ms Bratvedt has been head of R&D in Weifa since She previously headed Weifa's Regulatory and Medical Department. Bratvedt holds a Master degree in Pharmacy in addition to post graduate studies in management and project management. Simen Nyberg-Hansen Chief Financial Officer Mr Nyberg-Hansen joined Weifa as CFO in August 2015 from the position as a consultant and chair in Dolphitech AS. He previously served as CFO at Norman ASA and Viking Redningstjeneste International AS. Nyberg-Hansen is a state authorized public accountant (CPA) and holds a master degree in Professional Accountancy from BI Norwegian Business School. Morten Hovland Sand Vice President of Sales Mr Sand joined Weifa in 2007, and has been Head of Sales since 2008.He has broad professional experience within general management, strategy, sales and brand building related to fast moving consumer goods and retail from companies such as Coca Cola, Mills and Esso. Sand holds an BBA from BI Norwegian Business School. Ole Henrik Eriksen Chief Operating Officer Mr Eriksen joined Weifa in September 2014 as VP Business Development when Aqualis ASA acquired Weifa AS. He has spent 30 years in the pharma, biotech and medtech industry and has wide experience from various management and executive positions, including Nycomed Imaging (now GE Healtcare), Medinnova (now Inven2). He was the first CEO of Clavis Pharma ASA, and has worked with the company through Aqualis ASA and later Weifa AS. Eriksen holds a MSc. in Organic Chemistry from the Norwegian Institute of Technology in Trondheim. 22

23 APPENDIX Board of Directors Glen Ole Rødland Chairman Mr Rødland is a director and co-investor of Direct Active Investments in Ferncliff TIH AS, where he has been a partner since Before joining Ferncliff he worked 15 years with portfolio management and investment banking for Vital and Swedbank First Securities (formerly Elcon Securities). Rødland has also worked as a market and investment analyst at JEBSENS, a Norwegian shipping company, as a management consultant in PWC, and as a research assistant at the Norwegian school of economics and business administration (NHH). Rødland is a member of the board of directors of several companies, including Spectrum ASA and Strata Marine & Offshore AS. Rødland has PhD studies in Finance from NHH and UCLA. Rødland is a Norwegian citizen and resides in Oslo, Norway. Yvonne Litsheim Sandvold Board member Ms Sandvold is the Chief Operating Officer of Frognerbygg AS, and has extensive experience from the Norwegian real estate industry. Sandvold currently serves on the Board of several private companies. She holds a degree in psychology from the University of Oslo. Sandvold is a Norwegian citizen and resides in Oslo, Norway. Øystein Stray Spetalen Board member Mr Stray Spetalen is Chairman and owner of investment firm Ferncliff TIH AS. He is an independent investor. He has worked in the Kistefos Group as an investment manager, as corporate advisor in different investment banks and as a portfolio manager in Gjensidige Forsikring. Spetalen is a chartered petroleum s engineer from NTNU. Spetalen is a Norwegian citizen and resides in Oslo, Norway. Synne Syrrist Board member Ms Syrrist is an independent business consultant, and has extensive experience as a non-executive director of both private and public companies. She has previously worked as a financial analyst at Elcon Securities ASA and First Securities ASA. Syrrest currently serves on the Board of several public companies, including Awilco Drilling Ltd and Eidesvik Offshore ASA. She holds an Master of Science from the Norwegian Institute of Technology. Syrrist is a Norwegian citizen and resides in Oslo, Norway. Ole Enger Board member Mr Enger has extensive industrial experience and is currently the Chairman of the Board of REC Solar ASA. Enger was previously the CEO of REC ASA, a position held from April Prior to REC ASA, he was the president & CEO of SAPA AB, and he has also held the position as president & CEO of Elkem AS and Executive Vice President of Elkem AS. In addition, he has lead Norsk Hydro s Bio-division, including the development of Omega 3 products for both pharmaceutical and food applications, and has been the Chariman of the Board of Borregaard, a producer of fine chemicals for the global pharmaceutical market. Enger holds a degree from the Norwegian University of Life Sciences and a business degree from the Norwegian School of Economics. Enger is a Norwegian citizen, and resides in Norway. 23

24 Top 20 shareholders as of 26 October 2015 NAME SHAREHOLDING % SHARE WATRIUM AS % STRATA MARINE & OFFS % QVT FUND V LP % HOLTA LIFE SCIENCES % MP PENSJON PK % STOREBRAND VEKST % ARCTIC FUNDS PLC % VERDIPAPIRFONDET KLP % STOREBRAND NORGE % HOLBERG NORDEN % SOLAN CAPITAL AS % HANDELSBANKEN NORDIC % KLP % VERDIPAPIRFONDET STO % QVT FUND IV LP % TOLUMA NORDEN AS % PORTIA AS % BORGEN INVESTMENT GR % GRANT INVEST AS % HOLBERG NORGE % Total 20 largest shareholders % Other shareholders % Total number of shares % 24