THIRD QUARTER INTERIM REPORT PRESENTATION 9 NOVEMBER 2017

Transcription

1 THIRD QUARTER INTERIM REPORT PRESENTATION 9 NOVEMBER 2017

2 THOMAS ELDERED CEO

3 THIRD QUARTER 2017 Continued focused strategy implementation Sales adjusted for Fx and acquisitions -0.8% YoY 16% Sales, YoY growth Adjusted for Fx and acquisitions 16% EBITDA margin 8.6% (12.6) 6% 6% 5% Third quarter holiday and maintenance shutdowns Delays in Wasserburg, Bengaluru and the US Impact from ongoing expansion projects Swedish operations underperforming Operating cash flow at 149 MSEK Balancing capex Events after closing -3% -1% Q Q2 Q3 Q4 Q Q2 Q3 139 Operating cash flow (MSEK) Intention to end operations in Stockholm and Höganäs Q Q2 Q3 Q4 Q Q2 Q3 3

4 STRATEGY EXECUTION PROGRESS Several potential portfolio outsourcing projects agreement with Roche Increased number of development projects, building an encouraging pipeline of products new to the market. Launched Recipharm Pathway to Clinic Focused efforts in own products and technologies, support to erdosteine Implementation of contracts and new contract wins in Bengaluru Strong development in underlying manufacturing business with a large number of tech transfers ongoing, including customers for expanded capacity in Sterile Liquids segment Continued review of less profitable customer contracts Streamlining of operations and exploring opportunities with our global structure intention to end operations in Stockholm and Höganäs communicated after the period end 4

5 ONGOING SIGNIFICANT CAPEX PROJECTS UPDATE Lyophilisation and packaging capacity expansion in Wasserburg, Germany Staff training and test runs ongoing Capex will be finished in Q4-17, material start-up opex Ramp-up of commercial supply expected to begin end of Q1-18 Blow-fill-seal capacity expansion in Kaysersberg, France Test runs to start during Q4-17 Capex will finish Q1-18, revamping in Q3-17 impacting sales and profit Ramp-up of commercial supply expected during Q2-18 Lyophilisation capacity expansion in Masate, Italy Capex on-going, expected finish Q3-18 Commercial supply expected during Q4-18 Serialisation technology, globally Implementation on-going, according to plan Main impact expected from Q2-19 5

6 EVENT AFTER THE PERIOD INTENTION TO END OPERATIONS IN STOCKHOLM AND HÖGANÄS Will address underperformance in Swedish operations Current EBITDA run rate 25 SEK million p.a. Expanded network in Solids and Others offers opportunities to optimize and streamline Will affect approximately 225 employees, negotiations with unions will start today Contracts will be terminated, customers offered continued supply from other parts of Recipharm s manufacturing network Non-recurring costs expected to be charged Q4-17 Operations expected to end 2018 (Höganäs) and 2019 (Stockholm) An important step in overall streamlining operations strategy Will improve competitiveness, efficiency and improve market position 6

7 HENRIK STENQVIST CFO (currency SEK million)

8 Q3 P&L DEVELOPMENT Q Q Net Sales EBITDA EBITDA margin 8,6 12,6 D&A EBIT Financial Items Profit before Tax Tax 9-10 Net Profit

9 MANUFACTURING SERVICES STERILE LIQUIDS SALES BRIDGE, JULY SEPTEMBER Sales, MSEK Sales, % Currency Acquisitions Organic growth Total Q Currency Organic growth Q EBITDA BRIDGE, JULY SEPTEMBER SEK million EBITDA Currency -0.7 Acquisitions 0.0 Other Total Q Currency Other Q

10 MANUFACTURING SERVICES SOLIDS & OTHERS SALES BRIDGE, JULY SEPTEMBER Sales, MSEK Sales, % Currency Acquisitions Organic Total EBITDA BRIDGE, JULY SEPTEMBER SEK million EBITDA Currency -0.1 Acquisitions 2.9 Other Total Q Currency Acquisitions Organic growth Q Q Currency Acquisitions Other Q

11 DEVELOPMENT & TECHNOLOGY SALES BRIDGE, JULY SEPTEMBER Sales, MSEK Sales, % Currency Acquisitions Organic Total EBITDA BRIDGE, JULY SEPTEMBER Q Currency Acquisitions Organic growth Q SEK million EBITDA Currency 0.4 Acquisitions 1.0 Other 10.4 Total Q Currency Acquisitions Organic growth Q

12 EBITDA BRIDGE VS Q ,0 160,0 Capacity Expansion sites 140,0 120,0 Q Swedish Operations Development & Technology Other 100,0 80,0 Q ,0 40,0 20,0 0,0 12

13 CASH FLOW BY QUARTER msek Q1 Q2 Q3 YTD Operating Cash Flow Changes in Working capital Operating cash flow after w.c Maintenance capex Free cash flow Expansion capex Cash flow after investing activities

14 THOMAS ELDERED CEO

15 EXECUTING ON OUR FOCUSED STRATEGY Q3: Not where we should be, and not where we will be Contributions to growth and profitability Commercial supply from all three major expansion projects Manufacturing network optimization and streamlining Important contract wins, with Roche as the largest Gradual catch-up in Bengaluru, India Optimised development offering On track to reach our financial targets Sales target of at least SEK 8 bn by 2020 At least 16% EBITDA margin 15

16 Q&A

17 CONTACT INFORMATION Thomas Eldered CEO & Managing Director +46 (0) Henrik Stenqvist CFO & EVP +46 (0) , 17