Vistin Pharma - Third Quarter 2017

Transcription

1 Vistin Pharma - Third Quarter 2017 Kjell-Erik Nordby (CEO) and Gunnar Manum (CFO) 27 October

2 Agenda Highlights Operational review Financial review Summary & outlook Appendix 2

3 HIGHLIGHTS Third quarter 2017 Revenue growth of 22%, continued strong demand for metformin from Vistin Pharma - Revenue of NOK 46.7 million for the quarter vs. NOK 38.3 million in Q Sales volumes up 31.6% when compared to Q Production running at full capacity Capacity expansion on track - Expected to be completed by Expansion required to meet growth forecasts from existing and new customers - Detailed engineering phase completed and key components being ordered in Q4 Opioids and CMO: Successful completion of sale to TPI Enterprises Limited ( TPI ) - Preliminary purchase consideration of NOK million received (including NOK 16.0 million in escrow) - Expected net cash effect of NOK million (before transaction costs) Financials: Dividend of NOK 7 per share proposed by the Board - EGM on 2 November to approve an additional dividend of NOK 7 per share following the sale to TPI - EBITDA from continuing operations of NOK 4.3 million for Q3 - Cash balance at 30 September of NOK 33.5 million, and no interest-bearing debt - Cash balance at the date of the Q3 report was NOK million, excluding amount in escrow of NOK 16.0 million 3

4 CMO and opioids business sold Summary Revenue (pro forma*) for continuing operations Sale of CMO and opioids business completed on 2 October (NOK million) The sale has allowed Vistin Pharma to propose an extraordinary dividend of NOK 7 per share - Total distribution to shareholders post IPO totalling NOK 147 million Financial position remains strong - Moving ahead as planned with the capacity expansion project Following the sale, Vistin Pharma is a pure play metformin producer - With a strong position in the global metformin market and with significant growth ambitions M2017 *Includes the revenue for metformin as reported in Weifa AS prior to the acquisition of that business on 1 June

5 Vistin Pharma has become a pure play metformin company with a bright outlook DIABETES - ONE OF THE LARGEST HEALTH EMERGENCIES IN THE 21ST CENTURY METFORMIN - + THE GOLD STANDARD TREATMENT OF TYPE = 2 DIABETES A BRIGHT OUTLOOK FOR VISTIN PHARMA - A LEADING GLOBAL PRODUCER OF PREMIUM METFORMIN 5

6 Agenda Highlights Operational review Financial review Summary & outlook Appendix 6

7 Diabetes A global emergency Diabetes in perspective: 1 in 7 births is affected by gestational diabetes 1 in 11 adults have diabetes Every 6 seconds a person dies from diabetes Number of people living with diabetes Source International Diabetes Federation, IDF Diabetes Atlas, seventh edition, % of global health expenditure is spent on diabetes 7

8 OPERATIONAL REVIEW Running at full capacity Sales volume year-to-date metric tonnes (2 170 MT YTD 2016) Sales volume metformin (HCl & DC) Metric tonnes per quarter Ongoing efficiency programme to stretch production capacity by approx. 300MT Due to installation of new equipment in 2018 relating to the expansion project, the benefit from the stretch initiatives will not materialise before Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 8

9 OPERATIONAL REVIEW Capacity expansion on track Detailed engineering phase completed, capex estimate reconfirmed Summary Background Vistin Pharma not able to meet the current demand from existing and new customers Strong and stable underlying growth in the metformin market Strong demand for Vistin Pharma s premium products Investment decision to double the current production capacity at Vistin Pharma s plant in Kragerø made in 2016 Expected impact Production line expected to be fully operational for commercial production in 2019 Test production scheduled for H Total external capex estimated to be NOK 120 million to be spent over , financed through existing cash, cash generation and loans Current status Detailed engineering completed, estimate on capex reconfirmed Orders for key components to be placed in Q and Q Ongoing work to gain new customers for deliveries from new production line in

10 Agenda Highlights Operational review Financial review Summary & outlook Appendix 10

11 HIGHLIGHTS Key quarterly figures for Vistin Pharma (figures for continuing operations) Revenue NOK million EBITDA NOK million * 9*** Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317-2** Adjusted EBITDA One-off items *NOK 8.8 million in net effect of insurance proceeds of NOK 10.8 million ** One-off costs in connection with a reactor failure at the metformin (B2B) plant of NOK 1.7 million *** Cash settlement of NOK 11.2 million received from the sellers of Weifa AS, shown net of a NOK 2.5 million write-off of sundry assets acquired from Weifa AS 11

12 FINANCIAL REVIEW Consolidated income statement (NOK 1 000) Q Q YTD 2017 YTD2016 FY 2016 Total revenue and income EBITDA Adjustments relating to specific items: Costs relating to reactor break-down Net effect of insurance proceeds EBITDA adj Depreciation, amortisation and impairment (655) (492) (1 886) (1 438) (2 086) Net finance income/(expense) (573) (3 778) (419) (815) Profit/(loss) before tax from continuing operations Profit/(loss) from continuing operations Profit/(loss) for the period CMO and opioids business shown as discontinued operations EBITDA from continued operations was NOK 4.3 million for the second quarter Unrealised currency gain of NOK 5.3 million relating to hedging contracts for H and 2018 Net profit for the period equal to NOK 0.19 (NOK 0.25) earnings per share 12

13 FINANCIAL REVIEW Financial position (NOK 1 000) Property, plant & equipment Inventory Trade receivables Cash & cash equivalents Other Total Assets Total equity Total liabilities Total Equity and Liabilities Cash of NOK 34 million, no interest-bearing debt Expected cash effect of sale of CMO and opioids business is NOK million (before transaction costs) The Board has proposed an additional dividend of NOK 7.00 per share (NOK million) to be approved by an extraordinary general meeting to be held on 2 November

14 Agenda Highlights Operational review Financial review Summary & outlook Appendix 14

15 Summary & outlook Transforming to a pure play metformin player Metformin market expected to continue to grow - Diabetes one of the largest health emergencies in the 21 st century - Metformin expected to maintain position as the Gold Standard treatment for T2D in the foreseeable future Strong demand from a growing customer base - Currently running at full capacity, additional capacity in place in 2018 through stretch initiatives Combining competitive shareholder returns with an attractive growth story - Distributing extraordinary dividend whilst maintaining a strong financial position - Growth story to accelerate in 2019 with new production line fully operational Goal to strengthen position as a leading global player in the ever growing metformin market 15

16 Agenda Highlights Operational review Financial review Summary & outlook Appendix 16

17 Top 20 shareholders as of 19 October 2017 NAME SHAREHOLDING % SHARE STATE STREET BANK ,77 % STRATA MARINE & OFFSHORE* ,53 % STOREBRAND VEKST ,30 % MP PENSJON ,15 % SKANDINAVISKE ENSKILDA ,92 % HOLMEN SPESIALFOND ,69 % NORDEA ,52 % FERNCLIFF LISTED DAI* ,41 % TVENGE TORSTEIN INGVALD ,99 % SPETALEN ØYSTEIN STRAY* ,90 % HANDELSBANKEN ,58 % DUKAT AS ,50 % DEUTSCHE BANK ,47 % SOLAN CAPITAL AS ,32 % UCITS FUND AKTIA NORDIC MICRO CAP ,29 % NORDBY KJELL ERIK** ,17 % GRANT INVEST AS ,08 % STAAVI TOM RAGNAR PRESTEGÅRD ,91 % MALISE AS ,89 % CAMACA AS ,88 % Total 20 largest shareholders ,3% Other shareholders ,7% Total number of shares ,0% * Board members of Vistin Pharma, or companies controlled by Board members ** Executive management 17

18 Experienced management team Name Role Experience Kjell-Erik Nordby Chief Executive Officer Previous experience includes several years in top management positions at Alpharma, a leading international generic pharmaceutical company Holds a Master's degree in Pharmacy and Master's degree in Business Administration Gunnar Manum Chief Financial Officer Previously CFO at Aqualis for 7 years, and prior to that he worked 8 years as a senior advisor at Handelsbanken Corporate Finance Holds a MCom in Finance and Accounting from the University of New South Wales, Sydney Vegard Heggem VP Operations Extensive experience from different managerial positions within operations, engineering and investment projects Holds a Master s degree in Chemical Engineering from The Norwegian University of Science and Technology (NTNU) Ellen Merete Kolderup VP Q & RA Previously Director Quality QA at Vistin Pharma, and has held several positions within QC during her 12 years with Pronova BioPharma Holds a Master of Science in Analytical Chemistry from the University of Oslo Valborg Godal Vold VP Sales & Marketing Experienced executive manager within the biotechnology and pharmaceutical industry Holds a BA in Biomedical Laboratory Science and an Executive Master in Business & Administration Liesl Hellstrand VP HR & Organisation Previous experience includes 5 years at Jordan, 9 years at Hydro and 4 years at Volvo Car Corporation Holds a BSc in Human Resource Development and Labour Relations 18

19 APPENDIX Board of Directors* Ole Enger Chairman 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, Enger 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. Mimi K. Berdal Ms Berdal is an independent legal and corporate advisor, and has extensive experience as a board member of listed companies. She is currently a board member of several companies, including Norske Skog ASA, EMGS ASA, Interoil E&P ASA, EMGS ASA, Itera ASA, Gassco AS and Gjensidige Pensjon og Sparing AS, and has previously been the Chairman of Rocksource ASA and REC ASA. Ms Berdal has previously served as a legal advisor with Total Norge, and as a partner at the Arntzen de Besche law firm. She holds a Cand.jur (law) degree from the University of Oslo, and is admitted to the Bar, Norwegian Bar Association. Ingrid Elvira Leisner Ms Leisner has previously worked as Head of Portfolio Management for Electric Power in Statoil Norge AS. She also has a background as a trader of different oil and gas products in her 15 years in Statoil ASA. Ms Leisner holds a Bachelor of Business degree (Siviløkonom) with honors from the University of Texas at Austin. She has served on the board of several companies listed on the Oslo Stock Exchange. Øystein Stray Spetalen Mr 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 achartered petroleum s engineer from NTNU. *Shareholder elected 19

20 Thank you for your attention! 20