Sivantos Investor Presentation

Transcription

1 Sivantos Investor Presentation Dr. Roger Radke, CEO Jens Due Olsen, CFO 6 June 2016 Sivantos 2015 All rights reserved/restricted.

2 Disclaimer This document contains statements related to our future business and financial performance and future events or developments involving Sivantos that may constitute forward-looking statements. These statements may be identified by words such as expect, look forward to, anticipate intend, plan, believe, seek, estimate, will, project or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Sivantos management, of which many are beyond Sivantos control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the chapter Risks in the Annual Report. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Sivantos may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Sivantos neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. This document includes in IFRS not clearly defined supplemental financial measures that are or may be non-gaap financial measures. These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Sivantos net assets and financial positions or results of operations as presented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe similarly titled financial measures may calculate them differently. All underlying margins are calculated by adjusting margins for the effects reported for the respective businesses in the relevant period. These effects are provided to assist in the analysis of the businesses results year-over-year and may vary from period to period. Underlying margins are not necessarily indicative of future performance. Other companies may calculate similar measures differently. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 2

3 Agenda 1 Commercial highlights 2 Financial highlights 3 Q&A

4 Signia Inventing the future of better hearing FORWARD THINKING CUSTOMER CENTERED QUALITY DRIVEN 4

5 Redefining the ease of listening Signia GmbH 2016/RESTRICTED USE Signia GmbH is a trademark licensee of Siemens AG 5 5

6 Redefining the ease of listening SpeechMaster HD music EchoShield Further features Fully automatic in all speech situations Special listening demand Special listening demand Special listening demand Reduced listening effort Reduced listening effort Better hearing than normal 6

7 Commercial highlights 2015 & 2016 Improved time-to-market launch process in binax & primax launch Key achievements Continued increase of market share in all key markets Further optimization of the manufacturing footprint audibene continuing to expand globally Organisational change with sound mix of external & internal competencies Transition from Siemens to Signia brand in most markets with success 7

8 Market size 1 ( B) Market expected to grow at 4-5% to ~ 3.5B in value over next 5 years Strong market growth decoupled from GDP 5 Global GDP growth Hearing aid market value YoY GDP growth (%) 1 (2) A 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016E 2017E 2018E 2019E (4) 1. Market defined as wholesale revenue Source: World Bank; Leading industry reports, May

9 Sivantos commands a strong multi-brand family positioned to maximize market impact Our product brands Private Label Strategic premium brands with global presence & recognition Other brands with strong regional / channel-specific relevance Opportunistic brands to address special customer needs Our retail brands Our online brands ~200 retail locations in U.S. & network of ~2,000 independent audiologists ~41 retail locations in India ~40 retail locations in Japan Largest online platform for hearing aids; core focus on first-time buyers & younger consumers 9

10 Smart expansion of retail footprint in all regions Sivantos has significant retail point of sale presence in key markets 5% Germany Audibene Audiology Network ~650 2% Japan 5% U.S ~ >10% India >10% China China Network of Audiologists ~2,000 ~41 Partner Retail Network ~1,000 Market Growth # of Retail Outlets 10

11 Sales ( m) Sales ( m) Sales ( m) Significant sales growth across all regions Sivantos achieving 8% organic 3 growth across all regions worldwide 39% of sales EMEA +10% % A 2015A (Pf) (Pf) A 1 21% of sales APAC 40% of sales Americas +11% % % 3 +8% A 2015A 2015 (Pf) 2 (Pf) A A 2015A (Pf) (Pf) A 1 1. Unaudited key figures of Auris Luxembourg II S.A as at Mar Pro-forma (Pf.) unaudited key figures of Auris Luxembourg II S.A. as if Sivantos Group and its consolidated subsidiaries formerly Siemens Audiology Solutions" were included for the full fiscal year of 2015 and YTD Mar Excluding FX and revenue of acquisitions < 12 months. From 2015, baseline revenue for acquisitions is computed as average revenue of last twelve months prior to acquisition. 11

12 Operating results 2014A/2015A 1,2 /2016A 2016A (YTD Q2) (Pf) (YTD Q2) A (Pf) 2,3 2014A Revenue Organic growth 5 7.6% 9.6% 10.5% 6.6% Adj. EBITDA Adj. EBITDA margin 22.9% 27.4% 24.7% 22.7% Adj. EBITA Adj. EBITA margin 21.1% 25.5% 22.7% 20.9% 1. Unaudited key figures of Auris Luxembourg II S.A as at Mar Pro-forma (Pf.) unaudited key figures of Auris Luxembourg II S.A. as if Sivantos Group and its consolidated subsidiaries, formerly Siemens Audiology Solutions, were included for the full fiscal year 2015 and YTD Mar From April 2015 onwards all figures include audibene 4. Adjusted for normalization items and PPA 5. Excluding FX and revenue of acquisitions < 12 months. From 2015 baseline revenue for acquisitions is computed as average revenue of last twelve months prior to acquisition. 12

13 Agenda 1 Commercial highlights 2 Financial highlights 3 Q&A

14 Reported financials since 2012 Key financial highlights ( m) Full Year Partial Year YTD Mar 2012A 2013A 2014A 2015A 2,3 2016A 1 Revenue % nominal growth 16.7% 2.8% 3.2% n.a. 13.0% % organic growth 5 3.6% 5.2% 6.6% n.a. 7.6% Gross profit Gross margin 56.0% 55.5% 57.9% 55.9% 56.3% OPEX OPEX % 43% 40% 40% 51% 49% EBITDA EBITDA margin 16.9% 18.9% 21.8% 18.0% 19.9% EBITA EBITA margin 15.7% 16.9% 19.9% 14.9% 17.4% Comments Structural changes in 2015 Acquisition of Sivantos by Auris Holding was completed January 15, Therefore, reported figures contain Auris Luxembourg II S.A. from January 1, 2015 to September 30, 2015 and Sivantos from January 15, 2015 to September 30, 2015 only. Furthermore, audibene was acquired in March 2015 and included in the reported numbers subsequent to this. To judge business performance, three adjustments are made 2015 reported numbers are annualized (proforma adjustment), except for audibene From 2015, certain cost items have been reclassified with no impact on EBITDA Acquisition related costs and other costs of a one-off nature are eliminated (normalization) Unaudited, normalized pro-forma 2015 EBITDA comprise audited numbers from 15 January 2015 to 30 September 2015 and specific agreed upon procedures with respect to normalization items and the pro-forma of fiscal Unaudited key figures of Auris Luxembourg II S.A as at Mar Auris Luxembourg II S.A. from January 1, 2015 to September 30,2015 and Sivantos from January 15, 2015 to September 30, 2015 only. 3. From April 2015 onwards all figures include audibene 4. EBITDA derived from EBIT plus Depreciation and Amortization 5. Excluding FX and revenue of acquisitions < 12 months. From 2015 baseline revenue for acquisitions is computed as average revenue of last twelve months prior to acquisition. 14

15 Strong financial performance since 2012 Accelerating growth and margin expansion on a normalized basis Key financial highlights 1 ( m) Full Year 2012A 2013A 2014A 2015A (Pf) 3,8 2015A (Pf) 3 YTD Mar 2015 (Pf) 3,9 2016A 2 Revenue % nominal growth 16.7% 2.8% 3.2% 21.0% 21.0% 18.4% 13.0% % organic growth 7 3.6% 5.2% 6.6% 10.5% 10.5% 9.6% 7.6% Gross profit Gross margin 56.3% 55.6% 58.4% 59.6% 63.5% 65.0% 62.7% OPEX OPEX % 42% 39% 40% 39% 43% 41% 43% Adj. EBITDA Adj. EBITDA margin 18.3% 20.1% 22.7% 24.7% 24.7% 27.4% 22.9% Adj. EBITA Adj. EBITA margin 17.0% 18.1% 20.9% 22.7% 22.7% 25.5% 21.1% Total Leverage 4 n.a n.a n.a 5.3x 5.3x 5.4x 6.1x Priority Leverage 5 n.a n.a n.a 4.0x 4.0x 4.0x 4.7x Cash & Cash Equivalents vs 2015 Innovation drives top-line performance Sivantos continued to perform across all three regions. Growth temporarily slowing down to +7.6% as late life cycle of binax will now be replaced with primax Margin development in line with product life cycle Gross-profit margins were lower from life cycle ASP impact and inventory revaluation Continued focus on R&D to invest into future technologies, platforms and business models in order to further strengthen the competitive advantage currently experienced with binax and primax Total SG&A has increased primarily from additional front end investments driving future revenue growth including the accelerated roll out of audibene, Sivantos global online marketing platform, and tools to increase sales force effectiveness Adjusted EBITDA margin decrease from lower gross margins Unutilized RCF Available Liquidity Adjusted for normalization items and PPA 2. Unaudited key figures of Auris Luxembourg II S.A as at Mar Pro-forma (Pf.) unaudited key figures of Auris Luxembourg II S.A. as if Sivantos Group and its consolidated subsidiaries, formerly Siemens Audiology Solutions, were included for the full fiscal year 2015 and YTD Mar Total Net Debt / LTM Adj. EBITDA 5. Priority Net Debt / LTM Adj.EBITDA 6. Adj. EBITDA derived from EBIT plus Depreciation, Amortization and Normalization 7. Excluding FX and revenue of acquisitions < 12 months. From 2015 baseline revenue for acquisitions is computed as average revenue of last twelve months prior to acquisition. 8. Adjusted for reclassifications 9. As-if reclassified 15

16 Attractive cash conversion impacted by one-offs FCF ( m) & cash conversion rate Comments Cash conversion demonstrates attractive industry model Cash conversion historically 80-90% Change in trade working capital can be attributed to seasonality, ramp up activities for primax, change of payment terms with key suppliers and the cash impact of last year s restructuring charges Capex slightly above historical run-rate mainly driven by product road map Increase financial arrangements with customers 2012A A A A 3,4,6 2016A 1,5 % of revenue 15.3% 15.3% 20.3% 14.6% 10.0% Cash conversion 2 EBITDA Reported Net CAPEX Change in working capital 1. FCF = EBITDA +/- Change in trade working capital +/- Change in current Assets & current Liabilities (excluding taxes & hedging instruments) less Net Capex 2. Cash Conversion Rate : FCF / EBITDA 3. Pro-forma (Pf.) unaudited key figures of Auris Luxembourg II S.A. as if Sivantos Group and its consolidated subsidiaries, formerly Siemens Audiology Solutions" were included for the full fiscal year From April 2015 onwards all figures include audibene 5. Unaudited key figures of Auris Luxembourg II S.A as at Mar FCF = EBITDA + Change in working capital + Net Capex 16

17 Breakdown of YTD Mar 2016 normalizations Normalizations by category m YTD Mar 2016 EBITDA Personnel restructuring costs Legal and Consultancy costs Batam site closure IT carve out and ERP replacement audibene new company set-up costs Others 3.8 Total Normalizations 13.6 Adj. EBITDA Comments 1. Personnel and other restructuring costs Employee severance payments and restructuring costs due to changes in organization and closure of manufacturing sites in smaller locations 2. Legal and Consulting Consulting costs for the Full Potential Plan (FPP) project and EDC Project 3. Indonesia site closure costs Costs related to exit from the manufacturing site in Indonesia and includes scrapping and rework of material 4. IT carve out and ERP implementation IT carve out and ERP implementation cost incurred due to change of control 5. audibene new company set-up costs Set-up costs for the new companies including consultancy 6. Others Costs related to launch of new brand Signia and other one-time costs 1. Unaudited key figures of Auris Luxembourg II S.A. as at Mar

18 Agenda 1 Commercial highlights 2 Financial highlights 3 Q&A