Weifa ASA Fourth quarter 2016 Third quarter 2015

Transcription

1 Weifa ASA Fourth quarter 2016 Third quarter 2015 Kathrine Gamborg Andreassen (CEO) and Simen Nyberg-Hansen (CFO) 16 February

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

3 Highlights Record quarterly and full-year revenues Revenues - Asan, Pain and Cough & Cold were the main drivers for growth - Organic growth exceeded 5% in the fourth quarter and for the full year NOK million +17% % 400 Fourth-quarter adjusted EBITDA of NOK 28.8 million (NOK 24.4 million) - Adj. EBITDA margin of 25.2% (25.1%) Organic growth >5% Full-year adj. EBITDA margin of 22.3% (21.9%) Q4 15 Q Proposed dividend of NOK 1.50 per share New distribution and licensing pacts strengthen platform for Nordic expansion 3

4 Building our Nordic growth platform Three-year distribution agreement with Midsona for Asan in Finland - Launch of first product expected towards the second half of 2017 Nordic license agreement for new unique pain product - Based a fixed ratio of ibuprofen and paracetamol based on a patented solution from AFT Pharmaceuticals in New Zealand - To be marketed under Weifa's own brand name with expected launch in the second half of 2017 We are: Norway s leading consumer health company Our goal: Significant Nordic consumer health company Both agreements are in line with Weifa s expressed strategy of building a Nordic platform for its strong consumer brands 4

5 Delivering on our strategic priorities Strengthen leadership within pain relief Pharmacy market share 70% 84% Be the fastest growing cough & cold player Innovative new products and strong existing brands Enhance domestic position A unique product in a new category launched 2016 Expand geographically Nordic rights for new pain product line and Asan launch in Finland 5

6 Four attractive key categories Pain Rx and OTC Cough & cold OTC Nutra Dermatology Number 1 player Number 1, 2 and 3 in certain segments Number 1 and 2 in niche segments Number 1 in disinfection and intimate wash 6

7 Presentation outline Highlights I Operational performance II Financial performance III Outlook IV Appendix V 7

8 Rx Pain Continued growth in prescription drugs Rx pain a growing segment - Market size NOK 314 million (LTM) - Growing 7.5% in 2016 Market share development Market share LTM* 75% 72% Weifa revenue from prescription drugs rose 2.7% in the fourth quarter 46% 45% 23% 24% Paralgin forte + Trampalgin Paracet Rx Ibux Rx *) Market share by volume, 12 months rolling Source: LMI/Farmastat, Nielsen and Weifa 8

9 OTC Pain A champion in the non-prescription pain category Strong development for the OTC Pain segment - Market size NOK 263 million** (LTM) - Increasing 5% in 2016 Fourth-quarter Weifa revenue for Rx and OTC pain combined increased 4.5% - Full-year revenue growth was 4.7% - Stable high market shares for both Paracet and Ibux Market share development Market share LTM* 88% 89% 74% % Paracet + Paracetduo (paracetamol) Ibux + Proxan (NSAID) *) Market share by volume, 12 months rolling Source: LMI/Farmastat, Nielsen and Weifa. **) The calculation of OTC market sizes in this presentation have been adjusted and are therefore not directly comparable to the figures presented a year-ago. 9

10 OTC Cough & Cold Product development drives category growth OTC cough segment with continued expansion - Market size for cough NOK 59 million (LTM) - Growing 19% in 2016 Fourth-quarter Weifa revenue increased 21% to NOK 10 million - Full-year revenue growth of 12% - Positive impact from Solvivo launched in the third quarter - Increased sales of Bronkyl Market share development Market share LTM* 19% 14% % Solvivo Bronkyl *) Market share by volume, 12 months rolling Source: LMI/Farmastat, Nielsen and Weifa 10

11 Complete multi drives nutraceuticals growth The market for minerals, vitamins and supplements (OTX) is growing - Market size NOK 381 million in pharmacy channel (LTM) - Growing 11% in 2016 Weifa sales of nutraceuticals increased 20% in the fourth quarter - Full-year revenue growth of 9.7% - Complete multi was the fastest-growing brand in the multivitamin segment - Market share increased to 20% Market share multivitamin Market share LTM* 15% 20% *) Amounts are based on LTM June All figures are measured in pharmacy purchasing prices. Source: LMI/Farmastat, Nielsen and Weifa *) Market share by volume, 12 months rolling. Source: Farmastat 11

12 First full year with Asan included in Weifa derma Market for shower and intimate wash products declined by 0.9% (LTM) - Market size NOK 419 million (LTM) Market share Norway* Market share LTM* Fourth-quarter dermatology revenue of NOK 13.5 million (2.0 million) - Asan not included in the 2015 numbers 73% Full-year revenue NOK 59.8 million (9.0 million) 20% Shower Intimate care Market share by value, 12 months rolling Source: AC Nielsen *) Category shower including intimate wash measured by value 12

13 Presentation outline Highlights I Operational performance II Financial performance III Outlook IV Appendix V 13

14 Revenue development Quarterly Annual NOK million Weifa Asan NOK million Weifa Asan Q4 15 Q1 16 Q2 16 Q3 16 Q Note: Historical figures represent reported revenue for the consumer health business in Weifa AS. 14

15 Improved underlying margin Revenue NOK million EBITDA and margin NOK million ,0 24,4 28,8 35,0 % 98 20,0 25% 25% 30,0 % 25,0 % 15,0 20,0 % 10,0 15,0 % 10,0 % 5,0 5,0 % Q Q ,0 Q Q ,0 % Q revenue increased 17% YoY - Asan operations included from January Organic growth 5.4% (excluding Asan) driven by rising demand for all main categories Stable Q EBITDA margin Full-year 2016 EBITDA margin increased to 22.3% (21.9%) 15

16 Consolidated income statement (NOK 1 000) Q Q Total revenue and income EBITDA EBITDA adjusted* Depreciation, amortisation and impairment (3 187) (2 832) (12 744) (12 531) Net finance income/(expense) (3 428) (10 446) (33 452) (27 109) Profit/(loss) before tax from continuing operations Profit/(loss) from continuing operations (2 314) Profit/(loss) for the period from discontinued operations (4 492) Profit/(loss) for the period (2 314) * Adjusted for employee options of NOK 1.1 million in Q (Q4 2015: NOK 1.6 million in option cost and NOK 0.8 million of acquisition cost) 16

17 Strong operational cash flow (NOK 1 000) Q Q Cash flow from operating activities Cash flow from investing activities 124 (1 278) ( ) Cash flow from financing activities (3 140) (32 458) (72 182) (98 776) Net change in cash and cash equivalents ( ) Cash and cash equivalents beginning period Cash and cash equivalents end period Q 2016 Cash flow from operations impacted by build-up in working capital (strong YE sales) Investing activities reflect low capex Net cash flow from financing reflects interest paid in the quarter 17

18 Robust balance sheet (NOK 1 000) Intangible assets Deferred tax assets Cash and cash equivalents Other assets Total assets Total equity Interest-bearing loans Other liabilities Total equity and liabilities Net interest bearing debt Cash and cash equivalents amounted to NOK 67.7 million at the end of 2016 Total borrowings NOK 352 million Net interest bearing debt of NOK 284 million Equity ratio of 72% Proposed dividend of NOK 1.50 per share 18

19 Presentation outline Highlights I Operational performance II Financial performance III Outlook IV Appendix V 19

20 Building the platform for future growth Delivered on ambition of organic growth and improved EBITDA margin for 2016 New products within pain and cough & cold planned for early 2017 launch Increased Nordic focus - Upcoming Asan introduction in Finland - Preparing pan-nordic launch of unique pain product in Weifa expects organic revenue growth for The EBITDA margin is expected to improve gradually in a long-term perspective. Where 2017 is concerned, Weifa expects an adjusted EBITDA margin on a par with the 2016 level owing to geographical market expansion Weifa - well positioned for continued growth 20

21 Q&A 21

22 Thank you for your attention! Next event: 1st Quarter Presentation 27 April

23 Presentation outline Highlights I Operational performance II Financial performance III Outlook IV Appendix V 23

24 Category revenue development Pain relief NOK Million Cough and cold NOK Million ,5 7,1 7,0 8,2 6,7 7,5 10,0 3,6 4,7 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Dermatology NOK million Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Nutraceuticals NOK million Wound treatment and skin care Asan 12,4 12,8 13,6 11,6 3,0 4,6 3,1 2,7 3,2 4,8 2,9 3,4 3,9 1,8 1,9 2,9 2,3 1,9 2,0 2,9 2,5 1,9 Q4 15 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q

25 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. Previously he served as CFO at Norman ASA and Viking Redningstjeneste International AS and served several years with EY. 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. Monica Børter Bekkhus Head of Marketing Ms Børter Bekkhus joined Weifa from L Oréal in 2011, where she held a position as Marketing Manager Garnier and Franck Provost. She has broad experience from marketing, PR and brand building, and became Head of Marketing in October Børter Bekkhus has a Bachelor of International Marketing from BI Norwegian Business School and a Master of Business Administration from Birmingham Business School. 25

26 Top 20 shareholders as of 15 February 2017 NAME SHAREHOLDING % SHARE WATRIUM AS % EUROCLEAR BANK % MP PENSJON PK % HOLTA LIFE SCIENCES % STOREBRAND VEKST % KLP AKSJENORGE % HOLBERG NORGE % STOREBRAND NORGE % ARCTIC FUNDS % KLP AKSJENORGE % SOLAN CAPITAL AS % VERDIPAPIRFONDET ALF % VERDIPAPIRFONDET DNB % MUSTAD INDUSTRIER AS % NORDEA NORGE % NORDEA AVKASTNIN % TIGERSTADEN AS % BORGEN INVESTMENT % NORDEA KAPITAL % GOLDMAN SACHS & CO % Total 20 largest shareholders % Other shareholders % Total number of shares % 26