Fagron. Constantijn van Rietschoten Chief Communications Officer

Transcription

1 Fagron Constantijn van Rietschoten Chief Communications Officer Berenberg Discovery Conference US New York, 26 October 2017

2 Fagron at a glance FArmaceutische GRONdstoffen was founded in Rotterdam in 1990 Leading pharmaceutical compounding company, bringing personalized pharmaceutical care to hospitals, pharmacies, clinics and patients Active in 34 countries on 5 continents 1,924 FTE, incl. >200 pharmacists 2016 H Turnover 421.8m 221.7m REBITDA 90.6m 48.1m Listed on Euronext Brussels and Amsterdam since 5 October 2007

3 Fagron global presence FCS Essentials & Brands Office or repacking only facility Combination FCS / Essentials & Brands

4 Strategy

5 Our business - segments Fagron Essentials Compounding Services Brands Pharmaceutical raw materials, excipients, and equipment & supplies used in compounding Personalized ready-to-use medication that is prepared in compounding facilities Innovative products and concepts for specific segments of the healthcare market 4

6 FCS facility in Wichita (US) Operational since March 2017 State-of-the-art FDA 503B outsourcing facility supplying medication to hospitals and ASCs 12,000 sf of clean rooms, 11 isolated clean rooms, automated filling equipment, chemistry and microbiological testing laboratory and the ability to produce high and medium risk medication Facility will play a role in the ongoing process of hospitals outsourcing their sterile compounding due to increased efficiency, higher quality and less waste 5

7 FCS facility in Hoogeveen (NL) Operational since July 2017 Specializes in the production of prefilled glass syringes with a long shelf life for the hospital market Syringes have unique features incl. colour coding, Tall Man lettering and 2D coding for dispensing registration Facility contributes to optimal medication safety 6

8 Fagron Brands Innovative concepts, delivery vehicles and formulations for pharmaceutical compounding Developed by Fagron, in close collaboration with prescribers, pharmacists and universities Brands are produced in GMP compliant facilities to ensure the highest quality Increasing interest for Fagron Brands by pharmaceutical industry 7

9 Fagron Essentials 2,500 pharmaceutical raw materials, such as amino acids, antibiotics, corticosteroids, hormones, opiates, vitamins, alcohol and excipients Fagron has sourcing and audit offices in Minneapolis, Rotterdam, São Paulo and Shanghai All raw materials must pass an acceptance and quality check according to the most recent pharmacopeia Repacking in GMP-compliant clean rooms and distribution of pharmaceutical raw materials, supplies and equipment for compounding Global reach helps to efficiently audit, qualify and source raw materials. This results in full traceability and a high quality standard Repacking of raw materials in a clean room of Fagron Europe 8

10 Our business - geographical Fagron Europe South America North America Essentials FCS - sterile FCS - non-sterile Brands Essentials FCS - non-sterile (FACO) Brands Essentials FCS - sterile FCS - non-sterile Brands 57% of sales 25% of sales 18% of sales 9

11 Results H LETS GEL KIT is a topical anaesthesia convenience pack used for the prevention of pain when suturing. The kit includes SuturaGel, pre-weighed active ingredients and topical syringes.

12 Headlines H TURNOVER GROWTH 5.5% 221.7m organic: 6.0% REBITDA GROWTH 5.6% 48.1m 21.7% of turnover EBIT GROWTH 13.5% 38.4m 17.3% of turnover NET PROFIT GROWTH 27.0% 21.1m NET DEBT/ REBITDA RATIO 2.66 STRONG OPERATIONAL CASH FLOW 49.5m

13 Consolidated turnover (x 1,000) H H Total growth Total growth CER Organic growth Organic growth CER Fagron 218, , % +1.3% +6.6% +1.8% HL Technology 3,461 4, % -25.4% -24.1% -25.4% Total 221, , % +0.7% +6.0% +1.2% CER = constant exchange rates Positive turnover developments in core activities in Europe, North America and South America 12

14 Turnover development Excluding HL Technology (in 1,000) Turnover H Europe* South America North America Currency effect Turnover H * The Europe segment consists of the operations of Fagron in Europe, South Africa and Australia. The increase for Europe includes the negative effect of 1m due to the sale of a small compounding facility in Marseille (France) in

15 Fagron Europe (x 1,000) H H Change Turnover 128, , % REBITDA 32,724 30, % REBITDA margin 25.4% 24.7% Organic turnover growth of 3.7% (+3.3% CER) REBITDA increases 5.8%; margin increases 70bps to 25.4% Opening of sterile facility in the Netherlands, specializing in prefilled glass syringes Sale of a compounding facility in France with limited profitability/growth potential Acquisition of Kemig, a leading supplier of raw materials in Croatia and Bosnia and Herzegovina 14

16 Fagron South America (x 1,000) H H Change Turnover 49,498 42, % REBITDA 10,054 8, % REBITDA margin 20.3% 20.7% Organic turnover growth of 17.2% (-2.2% CER) REBITDA increases 15.0%; margin decreases 40bps to 20.3% Significant volume growth in H1 2017, but Majority of Fagron Brazil s purchases are in US dollars Lower purchase prices, due to substantial strengthening of BRL/USD, fully passed on to customers Decrease of prices in BRL had a negative impact on turnover growth at CER 15

17 Fagron North America (x 1,000) H H Change Turnover 39,880 38, % REBITDA 5,452 5, % REBITDA margin 13.7% 13.2% Turnover growth of 4.7% (+1.6% CER) REBITDA increases 8.1%; margin increases 50bps to 13.7% Sterile activities Turnover growth of 22.7% (+19.1% CER) Wichita facility obtained 46 licenses and is performing in line with expectations Raw materials and compounding concepts activities Turnover decline of 26.7% (-28.8% CER) Second consecutive quarter of improvement Introduction of new innovations like Lets Gel Kit 16

18 Financial review H Pigmerise MD is a medical devise class 1 indicated as coadjuvant of the skin dyschromia treatment, especially in cases such as hyperpigmentation caused by vitiligo.

19 Financial review Turnover (in million) % Turnover increase of 5.5% or 0.7% at CER Organic increase of 6.0% or 1.2% at CER Gross margin (in million) % Gross margin as percentage of turnover decreases by 100bps to 62.5% compared to H Gross margin increases 30bps compared to H Operating costs (in million) % Operating costs as percentage of turnover decrease by 100bps to 40.8% compared to H Operating costs decrease by 20bps compared to H

20 Financial review REBITDA* (in million) % REBITDA increases 5.6% to 48.1m or 21.7% of turnover REBITDA growth driven by core activities in Europe, North and South America Non-recurring (in million) % Non-recurring result decreases by 44.6% compared to - 1.7m in H EBITDA (in million) % EBITDA increases 7.5% to 47.2m or 21.3% of turnover * REBITDA is EBITDA before non-recurring result. 19

21 Financial review DA (in million) % D&A decreases 12.8% to 8.7m The decline was mainly due to the accelerated depreciation of assets in 2016 (in US and Switzerland) EBIT (in million) % EBIT increases 13.5% to 38.4m EBIT as percentage of turnover increases 120bps to 17.3% Fin. result* (in million) % * Financial result excl. revaluation financial derivatives. Financial result amounts to m, a decrease of 13.9% Financial costs decrease 7.6m due to lower interest expenses and non-recurring costs related to refinancing Financial income decreases by 9.2m. The decrease was due to the non-recurring recognition of an income item in H as a result of the received waivers 20

22 Financial review Taxes (in million) % Effective tax rate is 18.6% (29.4% in 1H 2016) Net profit (in million) % Net profit increases 27.0% to 21.1m Net profit per share decreases 34.1% to

23 Consolidated Net financial debt Net debt decreases 40.2m to 245.2m Net debt/rebitda-ratio of 2.66, significantly below the level of 3.25 as agreed in the RCF and Note Purchase agreement 31 December 2016 Net interest paid Investment activities Exchange rate differences Operating cash fllow 30 June

24 Summary H Solid results with positive turnover developments in core activities Operating costs well under control Profitability increasing faster than turnover Financial position significantly strengthened Portfolio: Facility in Wichita licensed in 46 states Opening of a sterile facility in NL Acquisition of Kemig (Croatia) Sale of non-sterile facility in France FagronLab LF-800UV - Laminar flow cabinet, designed for compounding pharmacies. 23

25 Results Q

26 Headlines Q Financial highlights Turnover increases to million Organic turnover growth at CER of 2.4% Organic growth in all key regions Strategic highlights Acquisition of Croatian Kemig in August Acquisition of Brazilian All Chemistry in October 25

27 Turnover development in Q Excluding HL Technology (in 1,000) , , , ,783 Turnover Q Europe South America North America Currency effect Disposals (Europe) Acquisitions (Europe) Turnover Q

28 Fagron Europe 1 (x million) Q Q Total growth Total growth CER Org. growth Org. growth CER Turnover % -1.2% +1.2% +0.8% Organic turnover growth 1.2% (+0.8% at CER) Growth curbed by backlog at external laboratories resulting in limited product availability and delivery delays Acquisition of Kemig, a leading supplier of raw materials in Croatia and Bosnia and Herzegovina 1 The segment Europe comprises the Fagron activities in Europe, South Africa and Australia. 27

29 Fagron South America (x million) Q Q Total growth Total growth CER Org. growth Org. growth CER Turnover % +3.4% +2.7% +3.4% Organic turnover growth 2.7% (+3.4% at CER) Significant volume growth in Q Majority of raw material purchases are in US dollar Lower purchase prices, due to strengthening of BRL/USD, fully passed on to customers Decrease of prices in BRL had a negative impact on turnover growth at CER Acquisition of All Chemistry, well-known and respected supplier of pharmaceutical raw materials to compounding pharmacies in Brazil 28

30 Fagron North America (x million) Q Q Total growth Total growth CER Org. growth Org. growth CER Turnover % +4.1% -1.4% +4.1% Organic turnover decline of 1.4% (+4.1% at CER) Double-digit growth in sterile activities Sale of raw materials and compounding concepts stabilise, but decrease compared to Q

31 Summary Q Solid performance, driven by organic growth in all key regions Backlog at external laboratories in Europe will largely be solved in Q Buy and build strategy continued and emphasized Going forward positive about growth opportunities in various markets Fagron is active in FagronLab - capsule filling machine 30

32 Q&A

33 What is compounding? The designing, developing, producing and marketing of personalized pharmaceutical products Personalized medication Alternative dosage forms Alternative dosage strengths Combination therapy Produced in pharmacies or by GMP outsourcing facilities based on scientific pharmaceutical knowledge Patient 32

34 Benefits of compounding Less side effects More individualized approach Customized medication Enhance patient compliance Drug shortages Discontinued drugs High-quality and cost effective alternative New and unavailable therapeutic needs Full pharmaceutical service Patient 33

35 Disclaimer Important information about forward-looking statements Certain statements in this presentation may be considered forward-looking. Such forward-looking statements are based on current expectations, and, accordingly, entail and are influenced by various risks and uncertainties. The Company therefore cannot provide any assurance that such forward-looking statements will materialize and does not assume an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. 34