Coloplast Earnings Conference Call FY 2013/14

Transcription

1 Coloplast Earnings Conference Call FY 2013/14 30 October 2014 Page 1

2 Forward-looking statements The forward-looking statements contained in this presentation, including forecasts of sales and earnings performance, are not guarantees of future results and are subject to risks, uncertainties and assumptions that are difficult to predict. The forward-looking statements are based on Coloplast s current expectations, estimates and assumptions and based on the information available to Coloplast at this time. Heavy fluctuations in the exchange rates of important currencies, significant changes in the healthcare sector or major changes in the world economy may impact Coloplast's possibilities of achieving the long-term objectives set as well as for fulfilling expectations and may affect the company s financial outcomes. Page 2

3 Solid performance continued in 2013/14 in line with guidance to the market Highlights Satisfactory organic revenue growth of 9% (7% in DKK), in line with guidance EBIT margin before special items 33% - up 1% compared to FY 12/13 EPS before special items increased 17% Additional dividend of DKK 7.50 per share brings total to DKK for 2013/14 Guidance for 2014/15 build on solid current trends: Organic revenue growth of ~9% (~11% in DKK) EBIT margin of ~34% (~34% in DKK) Performance 10,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000 21,000 22,000 23,000 24,000 25,000 11,000 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 0 Revenue (mdkk) Organic growth (%) ,635 12, / /14 Adj. EBIT (mdkk) 9,000 8,000 Adj. EBIT margin (%) 7, ,000 5,000 3,672 4,147 4,000 3,000 2,000 1, / / Page 3

4 Coloplast delivered strong revenue growth in all business lines and geographies in FY 2013/14 FY 13/14 revenue by geography Geographic area Reported revenue mdkk Organic growth In percent FY 13/14 revenue by business area Business area Reported revenue mdkk Organic growth In percent European markets 8,221 6% Ostomy Care 5,091 8% Other developed markets Emerging markets 2,479 1,728 10% 24% Continence Care Urology Care Wound & Skin Care 4,438 1,199 1,700 10% 9% 10% Coloplast Group 12,428 9% Coloplast Group 12,428 9% Page 4

5 Continued scale and operational leverage support strong margins and cash flow (1/2) Highlights FY 2013/14 Performance drivers FY 2013/14 Gross margin up 1% point to 69% Distribution-to-sales roughly unchanged at 28% Admin-to-sales improved 1% R&D-to-sales 3% unchanged from last year EBIT margin before special items up 1%- point to 33% (25% after special items) Free Cash Flow DKK 2,372m down from DKK 2,977m last year EBIT margin FY 12/13 Gross profit margin Distribution-to-sales Admin-to-sales R&D-to-sales 31.6% Cash returned to shareholders FY13/14 DKK 2,820m Second half of buyback program to commence in 2015 Other operating items EBIT Margin FY 2013/14 (Before special items) 33.4% Page 5

6 US Mesh litigation overview TBD Summary Coloplast estimate a total of around 7,000 claims against the company. A total DKK 1.5bn has been provisioned and this is currently considered sufficient P&L DKK 1bn in special items, net effect of a DKK 1.5bn provision and DKK 500m in insurance coverage. This reduces EBIT by DKK 1bn, reported tax by DKK 224m and net earnings by DKK 776m Balance sheet - Deferred tax asset reclassification with impact on tax and provision for deferred tax liabilities. Restricted cash is DKK 418m related to escrow payment Cash flow - impacted by large non-cash adjustments and the net effect related to the difference between the received insurance sum, legal fees paid and the escrow related to the settlement of an unspecified number of claims. Financial Impact EBIT 3,147 EBIT before special items 4,147 EBIT % 25 EBIT %, before special items 33 ROIC after tax 38 ROIC after tax (excl. Mesh) 49 Pay-out ratio, % 101 Pay-out ratio, % (excl. Mesh) 77 Earnings per share (EPS), diluted 11 Earnings per share (EPS), diluted (excl. Mesh) 15 Since 2011, Coloplast has been named as a defendant in individual lawsuits in various federal and state courts around the United States, alleging injury resulting from use of transvaginal surgical mesh products designed to treat pelvic organ prolapse and stress urinary incontinence. A multidistrict litigation (MDL) was formed in August 2012 to consolidate federal court cases in which Coloplast is the first named defendant in the Southern District of West Virginia as part of MDL No Page 6

7 Continued scale and operational leverage support strong margins and cash flow (2/2) Highlights FY 2013/14 Performance drivers FY 2013/14 Gross margin up 1% point to 69% Distribution-to-sales roughly unchanged at 28% Admin-to-sales improved 1% R&D-to-sales 3% unchanged from last year EBIT margin before special items up 1%- point to 33% Free Cash Flow DKK 2,372m down from DKK 2,977m last year EBIT margin FY 12/13 Gross profit margin Distribution-to-sales Admin-to-sales R&D-to-sales 31.6% Cash returned to shareholders FY13/14 DKK 2,820m Second half of buyback program to commence in 2015 Other operating items EBIT Margin FY 2013/14 (Before special items) 33.4% Page 7

8 Guidance for 2014/15 is set for continued growth and further margin expansion Guidance 14/15 Guidance 14/15 (DKK) Long term ambition Sales growth ~9% (organic) ~11% 7-10% p.a. EBIT margin ~34% (fixed) ~34% bps p.a. CAPEX (DKKm) ~650 ~4-5% of sales ( LY ~4% of sales) Tax rate ~24% - Page 8

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