CONSOLIDATED RESULTS Warsaw, 18 th March 2013

Transcription

1 CONSOLIDATED RESULTS 2012 Warsaw, 18 th March 2013

2 Financial summary 2012 Significant results amelioration despite dropping market value Debt/EBITDA index value decrease 71.6 mn Net result* 51.4% Growth y/y Dynamic net profit growth Significant drop of interest debt Augmented financial prognosis execution * Excluding non-recurring items 2

3 Operational summary 2012 Completion of logistics and telemarketing restructuring processes, sales and back office reorganisation Readiness for market shares increase Key events Dynamic growth of private labels segment First launch to test sale of prescription drugs 3

4 Restructuring process summary Restructuring process completion: Reaching optimal warehousing area: 11 local warehouses and central ones Creation of optimal telemarketing structure: 10 local and 3 central call centres Creation of a central Client Service Office Reorganisation of sales structure Reorganisation completion and optimisation of back office Infonia first year of activity completed a structure managing telemarketing PROSPER acquisition First central warehouse in Katowice 2010 Holder foundation: new name, central management ACCEDIT foundation and back office consolidation 2011 Second central warehouse in Ołtarzew Call centre implementation and beginning of telemarketing consolidation processes Regional sales structures creation Third central warehouse in Gądki first full year after completion of logistics and back office areas optimisation 4

5 NEUCA market position Market New regulations implementation resulted in market break down Market drop bigger than expected at the beginning of 2012 (difference of 1.5 percentage points) Drops slowing down in October and November, return to a negative growth dynamics in December NEUCA market position Stable leader s position with 27.4% of shares in 4th quarter Focus on most profitable clients group Avoiding of price war Quarterly market value and dynamics y/y Q Q4 2012* [PLN bn] 6,31 10,3% 1,99 5,54 5,54 1,3% 1,69 0,6% 1,64 5,95 6,8% 1,81 31,5% 30,5% 30,0% 30,5% 5,42 5,37 5,30-14,1% 1,50 28,4% 1,40 1,36 5,74-3,2% -4,3% -3,5% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Revenues and NEUCA quarterly market value Q Q [PLN bn] 1,57 27,6% 27,1% 27,4% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q * IMS data, wholesale of NEUCA pharmaceuticals prior to discounts 5

6 Financial results 6

7 Revenues Sales revenues [PLN mn] Pharmaceuticals wholesale drop by 6.5% 6 388,7-11% 5 687,4 Clients structure changes: bigger concentration on independent pharmacies Gradual regaining of the market in 1 617,1-10% 1 456,0 the fourth quarter of the year IVQ IVQ

8 EBIT EBIT [PLN mn] 77,9 94,3 EBIT excluding non-recurring items [PLN mn] +21% +24% 82,0 102,0 20,6 21,9 21,5 +6% +5% 22,5 IVQ IVQ IVQ IVQ Higher operating costs resulting from the allowance for uncollectible accounts Significant fall of restructuring costs influence on Q4 results 8

9 Net profit Net profit [PLN mn] Net profit excluding non-recurring items [PLN mn] 52,8 +24% 65,4 +51% 71,6 47,3 20,5-25% 15,4 12,5 +26% 15,7 IVQ IVQ IVQ IVQ Dynamic growth of net result excluding non-recurring items Tax optimisation and high sales at the end of 2011 resulted in high base for the Q4 9

10 Consolidated results 2012 (PLN mn) change % y/y Q Q change % y/y Sales revenues % % Gross profit on sales % % EBITDA % % EBIT % % Net result % % Gross profit on sales margin % marża % 9.95% 8.54% p.p. 9.86% 9.12% p.p. EBITDA 2.07% 1.56% p.p. 1.92% 1.63% p.p. EBIT 1.66% 1.22% p.p. 1.50% 1.27% p.p. Net result 1.15% 0.83% p.p. 1.06% 1.27% p.p. Significant gross margin growth in year to year relation 10

11 Cons. results excluding non-recurring items 2012 (PLN mn) y/y change % Q corr. Q corr. y/y change % Sales revenues % % Gross profit on sales % % EBITDA % % EBIT % % Net result % % Gross profit on sales marża % marża % 9.95% 8.54% p.p. 9.86% 9.12% p.p. EBITDA 2.20% 1.62% p.p. 1.96% 1.68% p.p. EBIT 1.79% 1.29% p.p. 1.54% 1.33% p.p. Net result 1.26% 0.74% p.p. 1.08% 0.77% p.p. Non-recurring items description (PLN mn) 2012 Q Item Net result s influence Restructuring costs Negative goodwill Total

12 Prognosis execution 2012* [PLN mn] 71,6 Prognosis assumption PLN 70 mn net profit in 2012 (growth by 48% y/y) wynik kwartału narastajaco wykonanie prognozy ,8 79,7% 102,3% Predicted market drop by 5% in yearly scale 37,4 Stable growth of WIBOR 1M 21,2 53,4% 30,3% 1Q 2Q 3Q 4Q * Excluding non-recurring items Augmenting financial prognosis after three quarters from PLN 60 mn to PLN 70 mn 12

13 Results estimates vs. execution Consolidated results [PLN mn] (PLN mn) Estimates Execution Realisation % Sales revenues % EBITDA % EBIT % Net result % Consolidated results excluding non-recurring items [PLN mn] (PLN mn) Estimates Execution Realisation % Sales revenues % EBITDA % EBIT % Net result ,.0 % 13

14 Indebtedness and asset turnover Significant drop of Indebtedness/EBITDA index from 3.1 at the end of 2011 to 1.6 Financial liabilities* [tys. zł] > long-term > short-temr Lowering of interest indebtedness to the level below PLN 200 mn TOTAL, including: leasing Share in long-term 44% 37% 38% 34% Interest indebtedness/ebitda LTM Falling accounts receivable turnover cycle Tangible assets turnover [days] Inventory turnover Common work with producers on maintaining accounts payables payment turnover cycle 2. Receivables turnover Operating cycle (1.+2.) Liabilities turnover Stable level of cash conversion 5. Cash conversion cycle (3.-4.)

15 NEUCA s key development areas 15

16 Private brands: dietary supplements pharmaceuticals Key events: Break even in private brands segment 115 products in portfolio vs. 80 planned Introduction to test sales of Rx drugs under Genoptim brand Preparation for new brands implementation Launch of Synoptis Pharma activity, introduction of Nursea brand products in Synoptis portfolio Apteo brand launch, 40 products in Synoptis portfolio 16

17 Consequent road to profitability Net results from private label products [PLN mn] Crossing break even on the net level in 2012 Over PLN 5 mn net profit planned for ,7 5, ,3-10,0-11,5 Positive results of private brands segment 17

18 Profit share plan for 2012 Wartość dywidendy [tys. zł] Boards recommendation regarding dividend of PLN 3.20/share Wartość dywidendy na akcję [zł] Higher dividend growth dynamics compared to previous years , ,60 Maintaining current dividend policy in coming years , ,23 1,48 1,85 2,00 2,30 Execution of share buyback for nearly PLN 4 mn

19 Net profit prognosis 2013* Prognoza Wykonanie Prognosis for ,0 71,6 77,0 PLN 77 mn of net profit in 2013 (growth by 8% y/y) Lower wholesale margin level estimated at the level of over PLN 20 mn 44,0 47, * Excluding non-recurring items Growth dynamics of net result despite decreasing wholesale margin 19

20 Challenges for 2013 Dynamic growth of private brands, introduction of drugs to the reimbursement list Decrease of fixed wholesale margin Key events Organic growth of market shares Service quality amelioration, growth of clients satisfaction 20

21 Thank you for your attention