Annual General Meeting of Shareholders May 13, 2008 1 - - PowerPoint PPT Presentation

▶
annual general meeting of shareholders
SMART_READER_LITE
LIVE PREVIEW

Annual General Meeting of Shareholders May 13, 2008 1 - - PowerPoint PPT Presentation

Jun 27, 2023 334 likes •944 views

Annual General Meeting of Shareholders May 13, 2008 1 Registration of the quorum Registration of the quorum Composition of the bureau Composition of the bureau 2 Agenda Agenda : 1. 1. Reading, deliberating and

slide-1
SLIDE 1

Annual General Meeting of

1

Shareholders

May 13, 2008

slide-2
SLIDE 2
  • Registration of the quorum

Registration of the quorum

  • Composition of the ‘bureau’

Composition of the ‘bureau’

2

slide-3
SLIDE 3

Agenda Agenda: 1. 1. Reading, deliberating and commenting of the annual report of Reading, deliberating and commenting of the annual report of the board of directors and the statutory auditor’s report on the the board of directors and the statutory auditor’s report on the annual accounts for the accounting year 2007. annual accounts for the accounting year 2007.

3

slide-4
SLIDE 4

Report of the board Report of the board

  • f directors for 2007
  • f directors for 2007

4

Ger van Jeveren Ger van Jeveren CEO CEO Jan Peeters Jan Peeters CFO CFO

slide-5
SLIDE 5
  • Turnover +

Turnover +10 10%, of which %, of which 6% organic (compared to % organic (compared to 2006 2006)

  • Net profit +

Net profit +34 34% (compared to % (compared to 2006 2006)

  • Very successful Initial Public Offering (‘IPO’) of Arseus, approx.

Very successful Initial Public Offering (‘IPO’) of Arseus, approx. 2 2

Key facts 2007 Key facts 2007

5

times oversubscribed times oversubscribed

  • Acquisition of Polichimica, an Italian company which achieved a

Acquisition of Polichimica, an Italian company which achieved a turnover of turnover of € 10 10 million in million in 2006 2006

  • All commercial and logistic services located in Belgium were

All commercial and logistic services located in Belgium were centralized in Waregem centralized in Waregem

  • Further integration of Eurotec and Besserat (both acquired in

Further integration of Eurotec and Besserat (both acquired in 2006 2006)

slide-6
SLIDE 6

35.9 13.1 13.7 11.6 12.8 10.7 11.2 12.0 11.5 7.9 6.9 6.3 5.7 6.3 6.3 6.2 6.1 6.4 90.3 82.2 68.4 61.8 74.7 67.4 80.0 71.1 65.5

60 80 100 s (€m)

Quarterly Sales Breakdown 2006 Quarterly Sales Breakdown 2006-

  • 2007

2007-2008 2008

Sales per quarter Sales per quarter 2006 2006 - 2007 2007 - 2008 2008

6

33.4 27.3 25.9 22.0 26.6 24.3 31.3 24.2 23.1 35.9 34.3 24.6 22.7 29.0 26.1 31.3 28.8 24.5 11.4 11.5

20 40 2006 2007 2008 2006 2007 2006 2007 2006 2007 Sales ( Fagron Group Dental Medical Corilus

slide-7
SLIDE 7

Arseus sales long term trend indicator Arseus sales long term trend indicator MAT Sales 2007 MAT Sales 2007

104 106 108 110 112

7

94 96 98 100 102 104

jan- 05 feb- 05 mrt- 05 apr- 05 mei- 05 jun- 05 jul- 05 aug- 05 sep- 05

  • kt-

05 nov- 05 dec- 05 jan- 06 feb- 06 mrt- 06 apr- 06 mei- 06 jun- 06 jul- 06 aug- 06 sep- 06

  • kt-

06 nov- 06 dec- 06 jan- 07 feb- 07 mrt- 07 apr- 07 mei- 07 jun- 07 jul- 07 aug- 07 sep- 07

  • kt-

07 nov- 07 dec- 07

slide-8
SLIDE 8

REBITDA REBITDA Strong performance in all divisions Strong performance in all divisions

Dental Corilus

  • Medical
  • 8

Fagron

slide-9
SLIDE 9

Compelling growth strategy Compelling growth strategy

Sustainable long Sustainable long-

  • term growth

term growth

  • !

!" "#$%! #$%! %& %&" " " "%'$ %'$ ( (" "%)*! %)*! *!+')$ *!+')$

9

  • !

!" "#$%! #$%! )$%+') )$%+') %& %&" " " "%'$ %'$ ++!,& ++!,& ( (" "%)*! %)*! *! !-! *! !-! *!+')$ *!+')$ !.-!$$!-! !.-!$$!-!

  • Concept selling

Concept selling

  • Arseus Tec

Arseus Tec

  • Compounding

Compounding services services

  • Total helpdesk

Total helpdesk services services

  • New ERP

New ERP implementations implementations

  • WMS

WMS

  • Central purchasing

Central purchasing

  • Cost control

Cost control

  • Fagron (A

Fagron (A-

  • brand)

brand)

  • Corilus

Corilus

  • Greenock

Greenock

  • Baltes

Baltes

  • Cinnaber

Cinnaber

  • CEKA / Preci

CEKA / Preci-

  • line

line

  • Texa

Texa

  • DermaVital

DermaVital

  • 2006 Acquisition

2006 Acquisition Eurotec & Eurotec & Besserat Besserat

  • 2007 Acquisition

2007 Acquisition Polìchimica Polìchimica

  • 2008 Acquisition

2008 Acquisition Julie Julie-

  • Owandy

Owandy

  • 2008 Acquisition

2008 Acquisition Tamda Tamda

  • The Netherlands

The Netherlands

  • France

France

  • Germany

Germany

  • Spain

Spain

  • Italy

Italy

  • United Kingdom

United Kingdom

  • Switzerland

Switzerland

  • Czech Republic

Czech Republic

  • Portugal

Portugal

  • Luxembourg

Luxembourg

  • Austia

Austia

slide-10
SLIDE 10

Operations Arseus in Europe Operations Arseus in Europe

In In 2007 2007 Arseus already had operations in Arseus already had operations in Belgium, The Netherlands, France, Belgium, The Netherlands, France, Germany, Spain, Italy, the United Kingdom Germany, Spain, Italy, the United Kingdom and Switzerland. It also markets its products and Switzerland. It also markets its products

10 10

and Switzerland. It also markets its products and Switzerland. It also markets its products in Austria, Luxembourg and Portugal. in Austria, Luxembourg and Portugal. Due to the acquisition in Due to the acquisition in 2008 2008 of Czech

  • f Czech

based Tamda, Arseus started operations in based Tamda, Arseus started operations in Central and Eastern Europe. Central and Eastern Europe.

slide-11
SLIDE 11

Arseus Divisions Arseus Divisions focus on adding value focus on adding value

Arseus is currently focused on four market segments… Arseus is currently focused on four market segments…

Pharmaceutical compounding Pharmaceutical compounding products and services products and services Dental products and services Dental products and services 11 11

… to to achieve operational synergies through the integration of back offices and share achieve operational synergies through the integration of back offices and share best practices, market intelligence and customer insight as key differentiator best practices, market intelligence and customer insight as key differentiator towards suppliers towards suppliers

Medical products and services Medical products and services Healthcare IT Healthcare IT solutions solutions

slide-12
SLIDE 12

One One-stop stop-shop for shop for pharmaceutical pharmaceutical

12 12

pharmaceutical pharmaceutical compounding compounding

  • FY

FY–07 Sales 07 Sales FY FY–07 EBITDA 07 EBITDA

slide-13
SLIDE 13

Fagron Fagron - leading the market and well leading the market and well positioned for growth positioned for growth

Market Position Competitive Strengths

  • Highest brand recognition

Highest brand recognition

  • Focus on total integrated

Focus on total integrated solutions solutions

!" +)*" /)* 0)

  • The only European

The only European player player

  • The only European

The only European brand brand 13 13

  • Extensive product range

Extensive product range

  • Superior quality

Superior quality

  • Centralised purchasing

Centralised purchasing

0) */1-!%+'-$

  • )1*)%',

brand brand

  • Large experienced

Large experienced sales force (160 reps) sales force (160 reps)

  • Partner of choice for

Partner of choice for pharmaceutical industry pharmaceutical industry

Fagron’s strategy is to expand its European presence, Fagron’s strategy is to expand its European presence, strengthen the Fagron brand, and continue to launch strengthen the Fagron brand, and continue to launch innovative products and services innovative products and services

slide-14
SLIDE 14

Fagron: sustainable profitability Fagron: sustainable profitability

  • Strong sales growth supported by:

Strong sales growth supported by:

  • New own product launches

New own product launches

  • Innovative concepts

Innovative concepts

  • Strong performance in Industry

Strong performance in Industry department department

Sales

(in € m) 110.0 96.7 59.1 49.2 25 50 75 100 125 +20% +20% +14% +14%

14 14

department department

S2 2006 S2 2007 FY 2006 FY 2007

REBITDA

(in € m) 20.3 17.6 11.0 9.2 5 10 15 20 25 S2 2006 S2 2007 FY 2006 FY 2007

  • Sustainable REBITDA growth

Sustainable REBITDA growth

+20% +20% +15% +15%

slide-15
SLIDE 15

One One-stop stop-shop for shop for dental professionals dental professionals

15 15

  • FY

FY–07 Sales 07 Sales FY FY–07 EBITDA 07 EBITDA

slide-16
SLIDE 16

Arseus Dental Arseus Dental - leading the market and leading the market and well positioned for growth well positioned for growth

  • Market leadership in Belgium

Market leadership in Belgium

  • Market leadership in the

Market leadership in the Netherlands Netherlands

  • Significant presence in

Significant presence in Germany Germany

  • Exclusive and long term

Exclusive and long term distribution distribution arrangements for top arrangements for top brands brands1

  • Extensive European

Extensive European

One-stop-shop

Market Position Market Position Competitive Strengths Competitive Strengths

16 16 Germany Germany

  • Market leadership in France

Market leadership in France after acquisition of after acquisition of Julie Julie-Owandy Owandy

  • Significant OEM supplier to

Significant OEM supplier to dental and orthopaedic dental and orthopaedic industries industries

  • Strong in dental attachments

Strong in dental attachments

  • Extensive European

Extensive European distribution network distribution network

  • Broad and expanding

Broad and expanding product offering product offering

  • Focus on growing

Focus on growing product segments product segments

One-stop-shop for total dental solutions

Note:1 A-dec, Soredex, Anthos, Stern-Weber, XO

The partner of choice for dental professionals with a full The partner of choice for dental professionals with a full suite of value suite of value-added solutions generating strong margins added solutions generating strong margins

slide-17
SLIDE 17

!+$2!&0)+3! !+$2!&0)+3!" ")00 )00

  • Organic sales growth of 5%

Organic sales growth of 5%

  • Shift in product mix from low margin

Shift in product mix from low margin to high end equipment/Labs to high end equipment/Labs

  • New strategic agreement with

New strategic agreement with XO XO-Care for The Netherlands, Care for The Netherlands,

Sales

(in € m) 118.3 107.6 60.5 56.9 25 50 75 100 125 +6% +6% +20% +20%

17 17

XO XO-Care for The Netherlands, Care for The Netherlands, Germany and parts of France Germany and parts of France

  • Ready for better profitability

Ready for better profitability

S2 2006 S2 2007 2006 2007

REBITDA

(in € m) 11.7 10.3 6.0 4.9 5 10 15 S2 2006 S2 2007 2006 2007 +14 14% +24% +24%

slide-18
SLIDE 18

Value Value-added solutions for a added solutions for a wide range of healthcare wide range of healthcare

18 18

  • FY

FY–07 Sales 07 Sales FY FY–07 EBITDA 07 EBITDA

wide range of healthcare wide range of healthcare professionals professionals

slide-19
SLIDE 19

Arseus Medical Arseus Medical - leading the market leading the market and well and well-positioned for growth positioned for growth

Market Position Market Position Competitive Strengths Competitive Strengths

  • Exclusive and long term

Exclusive and long term distribution distribution arrangements with arrangements with numerous leading numerous leading equipment equipment

Value-added solution

  • Belgian market leader

Belgian market leader

  • Strong position in Dutch

Strong position in Dutch hospitals hospitals

  • Market leader in specific

Market leader in specific 19 19 manufacturers manufacturers1

  • Integrated across

Integrated across numerous segments of numerous segments of the medical care sector the medical care sector

solution provider with broad segment coverage

  • Market leader in specific

Market leader in specific niches: niches:

  • wheel chairs

wheel chairs

  • colostomy

colostomy

  • phthalmology
  • phthalmology

equipment equipment

Note: 1 Hill-Rom, Blanco, Recticel, Ecolab, and Schiller

Leverage extensive customer base to remain market Leverage extensive customer base to remain market leader for top brands in target categories leader for top brands in target categories

slide-20
SLIDE 20

Medical: focus on bottom line Medical: focus on bottom line

  • S2 Sales impacted by

S2 Sales impacted by

  • Low level of equipment sales in hospitals

Low level of equipment sales in hospitals

  • Effect of change in legislation

Effect of change in legislation wheelchairs wheelchairs 2008 impact 2008 impact € 2 m 2 m

Sales

(in € m) 49.5 47.3 24.7 25.1 10 20 30 40 50 +5% +5%

  • 2%

2%

20 20

  • S2 REBITDA impacted by

S2 REBITDA impacted by

  • Lower sales

Lower sales

  • Wheelchairs

Wheelchairs

  • FY REBITDA shows first signs of successful

FY REBITDA shows first signs of successful turn turn-around around

  • Plan:

Plan:

  • High single digit Rebitda by 2010

High single digit Rebitda by 2010

  • Focus on market leadership in Benelux

Focus on market leadership in Benelux

S2 2006 S2 2007 2006 2007

REBITDA

(in € m) 2.7 1.9 1.4 2.1 1 2 3 S2 2006 S2 2007 2006 2007

  • 31%

31% +40% +40%

slide-21
SLIDE 21

Integrated IT Solutions for Integrated IT Solutions for

21 21

Integrated IT Solutions for Integrated IT Solutions for Healthcare Professionals Healthcare Professionals

  • FY

FY–07 Sales 07 Sales FY FY–07 07 EBITDA EBITDA

slide-22
SLIDE 22

Corilus Corilus - well positioned for profitable well positioned for profitable growth growth

Market Position Market Position Competitive Strengths Competitive Strengths

  • Platform based on

Platform based on core modules core modules

  • Highly skilled

Highly skilled software developers and software developers and technical support technical support

Integrated IT solutions for

  • Market leader in Belgium

Market leader in Belgium

  • approximately 12,000

approximately 12,000 customers customers

  • 22

22 technical support technical support

  • Ability to

Ability to leverage customer leverage customer relationships of other Arseus relationships of other Arseus divisions divisions

  • Strong brands supported by

Strong brands supported by strong intellectual property strong intellectual property

healthcare professionals

  • Strong position

Strong position in the Dutch in the Dutch veterinary segment veterinary segment

  • Significant presence in the

Significant presence in the French health French health centre segment centre segment

Leverage platform to provide high quality Leverage platform to provide high quality solutions to a broad range of healthcare professionals solutions to a broad range of healthcare professionals

slide-23
SLIDE 23

Corilus: sustainable cash generator Corilus: sustainable cash generator

  • New business model with

New business model with focus on brand marketing focus on brand marketing

  • Continuous launch of new

Continuous launch of new products products

Sales

(in € m) 26.7 25.3 14.3 12.6 5 10 15 20 25 30 +13% +13% +5% +5%

23 23

  • 2008: Greenock

2008: Greenock

  • Sustainable profitability

Sustainable profitability

S2 2006 S2 2007 2006 2007

REBITDA

(in € m) 6.7 6.0 3.7 3.1 2 4 6 8 S2 2006 S2 2007 2006 2007 +11 11% +18% +18%

slide-24
SLIDE 24
  • In January Corilus installed

In January Corilus installed Greenock software Greenock software in the first pharmacies. in the first pharmacies.

  • In March Arseus reached an agreement to start exclusive negotiations

In March Arseus reached an agreement to start exclusive negotiations to to acquire the French company Julie acquire the French company Julie-Owandy

  • Owandy. Julie

. Julie-Owandy provides Owandy provides total solutions to dentists via the combination of software and dental total solutions to dentists via the combination of software and dental imaging equipment and realized imaging equipment and realized turnover of approx. turnover of approx. € 20 m 20 m in 2007, in 2007, with with an an EBITDA margin of approx. 12% EBITDA margin of approx. 12%. The . The acquisition price of acquisition price of € 18.3 m 18.3 m will be paid entirely in cash and Arseus will also take over will be paid entirely in cash and Arseus will also take over € 2 2

After balance sheet date After balance sheet date

24 24

18.3 m 18.3 m will be paid entirely in cash and Arseus will also take over will be paid entirely in cash and Arseus will also take over € 2 2 million in debt. million in debt.

  • In April Arseus acquired a

In April Arseus acquired a 70% interest in TAMDA S.A. 70% interest in TAMDA S.A., the first step in , the first step in Central & Eastern Europe. TAMDA is the Central & Eastern Europe. TAMDA is the Czech market leader Czech market leader in the in the sale of pharmaceutical raw materials, creams and ointments to sale of pharmaceutical raw materials, creams and ointments to pharmacists and realized pharmacists and realized revenues of revenues of approx.

  • approx. € 6 m

6 m in 2007. The in 2007. The acquisition fits the acquisition fits the buy buy-and and-build strategy build strategy of Arseus, and

  • f Arseus, and supports

supports Fagron’s strategy Fagron’s strategy to expand its position as market leader in magistral to expand its position as market leader in magistral preparations in Europe. preparations in Europe.

slide-25
SLIDE 25

Acquisition Julie Acquisition Julie-Owandy Owandy

25 25

slide-26
SLIDE 26

Information system of a dental office Information system of a dental office Third party Third party Function Function Radiology Radiology Image Image processing processing Information management Information management Remote Remote transmission transmission & Internet & Internet Healthcare Healthcare system system

Julie Gestion Julie Pro Julie Expert

Overview of Owandy solutions Overview of Owandy solutions

26 26

Products Products Hardware offer Hardware offer Software offer Software offer

X-ray Units Panoramic Units Intra-oral sensors Panoramic sensors Endoscopic camera

Implant Implant laboratories laboratories Suppliers Suppliers Insurances, Insurances, Banks, … Banks, …

Ima

Imaging software Julie Teletrans Julie Gestion

slide-27
SLIDE 27

Transaction rationale Transaction rationale

  • Strategic fit: focus on higher margin business + growth segments

Strategic fit: focus on higher margin business + growth segments

  • Own intellectual property and R&D

Own intellectual property and R&D

  • Julie

Julie (software) (software)

  • Market leadership in France

Market leadership in France

  • Installed base: 14.000 customers => cross

Installed base: 14.000 customers => cross-selling opportunities selling opportunities

  • 27

27

  • Synergies on development

Synergies on development

  • Owandy

Owandy (imaging equipment) (imaging equipment)

  • Reinforcement of market position in France, Benelux and Germany

Reinforcement of market position in France, Benelux and Germany

  • Own private label brand

Own private label brand

  • Access to new countries: Spain and Italy => cross

Access to new countries: Spain and Italy => cross-selling opportunities selling opportunities

  • Upside potential in margin

Upside potential in margin

slide-28
SLIDE 28

Acquisition Tamda Acquisition Tamda

28 28

slide-29
SLIDE 29

Transaction rationale Transaction rationale

  • Geographical expansion of Fagron business

Geographical expansion of Fagron business

  • Access to Eastern Europe => growth markets

Access to Eastern Europe => growth markets

  • Production capacity => possible synergies (low cost)

Production capacity => possible synergies (low cost)

  • Market leader in local market

Market leader in local market

29 29

  • Cross selling possibilities

Cross selling possibilities

  • Central purchase agency

Central purchase agency

slide-30
SLIDE 30

For 2008, the management expects an For 2008, the management expects an organic growth in

  • rganic growth in

turnover turnover of approx.

  • f approx. 7% to 8%

7% to 8%. Arseus still expects . Arseus still expects to complete to complete a few acquisitions a few acquisitions during the course of the second and third during the course of the second and third quarter. quarter. Furthermore, Arseus aims to achieve Furthermore, Arseus aims to achieve turnover of turnover of € 500 million 500 million

Outlook 2008 Outlook 2008

30 30

Furthermore, Arseus aims to achieve Furthermore, Arseus aims to achieve turnover of turnover of € 500 million 500 million in 2010 in 2010 and realise this by means of a and realise this by means of a combination of organic combination of organic growth and acquisitions growth and acquisitions.

slide-31
SLIDE 31

Financial Overview Financial Overview 2007 2007

31 31

slide-32
SLIDE 32

35.9 13.1 13.7 11.6 12.8 10.7 11.2 12.0 11.5 7.9 6.9 6.3 5.7 6.3 6.3 6.2 6.1 6.4 90.3 82.2 68.4 61.8 74.7 67.4 80.0 71.1 65.5

60 80 100 s (€m)

Quarterly Sales Breakdown 2006 Quarterly Sales Breakdown 2006-

  • 2007

2007-2008 2008

Sales per quarter Sales per quarter 2006 2006 - 2007 2007 - 2008 2008

32 32

33.4 27.3 25.9 22.0 26.6 24.3 31.3 24.2 23.1 35.9 34.3 24.6 22.7 29.0 26.1 31.3 28.8 24.5 11.4 11.5

20 40 2006 2007 2008 2006 2007 2006 2007 2006 2007 Sales ( Fagron Group Dental Medical Corilus

slide-33
SLIDE 33

REBITDA REBITDA Strong performance in all divisions Strong performance in all divisions

Dental Corilus

  • Medical
  • 33

33 Fagron

slide-34
SLIDE 34

Corporate and non Corporate and non-recurring costs recurring costs

  • Corporate costs 1% of sales

Corporate costs 1% of sales

  • Some additional recruitments in

Some additional recruitments in 2008 2008

  • +15%

+15%

34 34

  • Strong decline
  • No or only minimal non-recurring

costs expected in 2008

  • 61

61%

slide-35
SLIDE 35

EBITDA*

(in € m) 35.7 26.8 25 30 35 40

Strong EBITDA growth I Strong EBITDA growth I

+33% +33% 35 35

20.0 10.9 5 10 15 20 25 S2 2006 S2 2007 FY 2006 FY 2007

*Ebitda = after corporate and non *Ebitda = after corporate and non-recurring costs recurring costs +83% +83%

slide-36
SLIDE 36

Strong EBITDA growth II Strong EBITDA growth II

EBITDA*

(in € m) 35.7 26.8 28.8 30.4 30 35 40

  • 5%

5% +33 33% 36 36 *Ebitda = after corporate and non-recurring costs

5 10 15 20 25 2004 2005 2006 2007

  • 5%

5%

  • 7%

7% +33 33%

slide-37
SLIDE 37

Depreciations and amortizations

(in € m) 9.2 6.7 6.1 6 7 8 9 10

Depreciations and amortizations Depreciations and amortizations

  • Higher Capex:

Higher Capex: € 14.0 m 14.0 m

  • Slice in of Omega Pharma assets

Slice in of Omega Pharma assets

  • IT investments

IT investments

  • Capitalization R&D

Capitalization R&D

+38% +38%

37 37

3.7 1 2 3 4 5 6 S2 2006 S2 2007 FY 2006 FY 2007

  • Write

Write-off Stock (

  • ff Stock (€ 1.7 m)

1.7 m)

  • Not sustainable

Not sustainable

  • +12% before write

+12% before write-off stock

  • ff stock

+64% +64%

slide-38
SLIDE 38

Financial result

(in € m) 7.0 5.5 3.6 4 5 6 7 8

Financial Result Financial Result

  • Higher interest rates

Higher interest rates

  • Non sustainable cost related to the LT

Non sustainable cost related to the LT credit facility credit facility

+27% +27%

38 38

3.6 2.8 1 2 3 4 S2 2006 S2 2007 FY 2006 FY 2007

credit facility credit facility

  • Higher Net Debt level due to higher

Higher Net Debt level due to higher Capex Capex

+29% +29%

slide-39
SLIDE 39

Net Profit Net Profit

  • Slightly below 2006

Slightly below 2006

  • Tax rate below 20% is sustainable

Tax rate below 20% is sustainable

Tax rate

(in %) 16.4 17.0

39 39

  • Strong growth in S2 and Full Year

Strong growth in S2 and Full Year

FY 2006 FY 2007

Net profit

(in € m) 4.7 8.6 12.1 16.3 5 10 15 20 S2 2006 S2 2007 FY 2006 FY 2007

+83% +83% + +34 34%

slide-40
SLIDE 40

Conclusion P&L Conclusion P&L

  • Strong operational performance in all divisions

Strong operational performance in all divisions

  • Corporate costs under control

Corporate costs under control

  • Low level of non

Low level of non-recurring costs recurring costs

  • Strong impact of inventory write off on DA

Strong impact of inventory write off on DA

40 40

  • Strong impact of inventory write off on DA

Strong impact of inventory write off on DA

  • Financial result impacted by one

Financial result impacted by one-offs (credit facility)

  • ffs (credit facility)
  • Sustainable tax rate < 20%

Sustainable tax rate < 20%

slide-41
SLIDE 41

Balance Sheet : Assets Balance Sheet : Assets

  • OWC Sustainable at

OWC Sustainable at 18% of net sales 18% of net sales

  • Goodwill impacted by

Goodwill impacted by acquisition of acquisition of Polichimica Polichimica

  • Deferred Tax Assets:

Deferred Tax Assets:

  • Oth. fix. ass. 0.9
  • Oth. fix. ass. 0.9

56.7 49.3 !

  • !
  • OWC
  • Oth. fixed assets

Goodwill

41 41

  • Deferred Tax Assets:

Deferred Tax Assets: impact from impact from restructurings restructurings

  • Other Intangible assets

Other Intangible assets impacted by Software impacted by Software development development

  • Tangible assets: IT +

Tangible assets: IT + slice in of Omega slice in of Omega Pharma assets Pharma assets

21.2 16.4 13.5 9.3 13.6 10.0 136.4 142.2

  • !
  • !
  • "

Goodwill

  • Def. tax assets
  • Oth. Intangibles

Tangibles

slide-42
SLIDE 42

Balance Sheet : Liabilities Balance Sheet : Liabilities

  • Sound balance sheet

Sound balance sheet

  • Gearing 2006: 102%

Gearing 2006: 102%

  • Gearing 2007: 28%

Gearing 2007: 28%

  • Net debt / ebitda 2006:

Net debt / ebitda 2006:

Provisions 3.9 Deferred tax 2.9

50.6

12.3 12.6

  • !
  • Other WC

Net debt

42 42

  • Net debt / ebitda 2006:

Net debt / ebitda 2006: 3.85 3.85

  • Net debt / ebitda 2007:

Net debt / ebitda 2007: 1.42 1.42

  • Room for acquisitions

Room for acquisitions

178,2 100.8

Provisions 3.9 Provisions 3.6 Deferred tax 2.4

103.2

  • !
  • !
  • #$%

Net debt Deferred tax Provisions Equity

slide-43
SLIDE 43

Agenda Agenda: 2. 2. Discussion and approval of the annual accounts closed on Discussion and approval of the annual accounts closed on December 31 December 31st

st 2007.

2007. Motion to vote Motion to vote:

43 43

Motion to vote Motion to vote: Approval of the annual accounts closed on December 31 Approval of the annual accounts closed on December 31st

st 2007.

2007.

slide-44
SLIDE 44

Key figures P&L Key figures P&L

In In € 1,000 000 2007 2007

Operating income Operating income 135 135 Operating expenses Operating expenses 3.908 3.908 Operating result Operating result

  • 3.773

3.773

Key figures Balance sheet Key figures Balance sheet

In In € 1,000 1,000 2007 2007

Financial assets Financial assets 316.249 316.249 Working capital Working capital 77.400 77.400 Equity Equity 323.656 323.656

Accounts Arseus NV Accounts Arseus NV

44 44

Financial result Financial result 9.490 9.490 Result from ordinary activities Result from ordinary activities 5.717 5.717 Extraordinary result Extraordinary result Profit before taxes Profit before taxes 5.717 5.717 Taxes Taxes Net profit for the period Net profit for the period 5.717 5.717 Net debt Net debt 69.993 69.993 Total equity & liabilities Total equity & liabilities 398.042 398.042

slide-45
SLIDE 45

Agenda Agenda: 3. 3. Appropriation of the result of the financial year closed on Appropriation of the result of the financial year closed on December 31 December 31st

st 2007.

2007. Motion to vote Motion to vote:

45 45

Motion to vote Motion to vote: Approval of the allocation of the result as included in the annual accounts including a gross dividend of € 0.06 per share.

slide-46
SLIDE 46

Appropriation of the result Appropriation of the result

In In € 1,000 1,000 2007 2007

Profit for the year to be appropriated Profit for the year to be appropriated 5.717 5.717 Profit carried forward from the previous period Profit carried forward from the previous period Profits to be appropriated Profits to be appropriated 5.717 5.717

Accounts Arseus NV Accounts Arseus NV

46 46

Transfer to capital and reserves Transfer to capital and reserves 286 286 To statutory reserves To statutory reserves 286 286 To other reserves To other reserves Result to be carried forward Result to be carried forward 3.560 3.560 Profit to be distributed as dividend Profit to be distributed as dividend 1.872 1.872 Number of shares Number of shares 31.195.121 31.195.121 Gross dividend per share Gross dividend per share (x € 1) 0,06 0,06

slide-47
SLIDE 47

Agenda Agenda: 4. Communication of the consolidated annual accounts and the Communication of the consolidated annual accounts and the consolidated reports. consolidated reports.

47 47

slide-48
SLIDE 48

Agenda Agenda: 5. 5. Granting discharge to the members of the board of directors Granting discharge to the members of the board of directors and the statutory auditor. and the statutory auditor. Motion to vote Motion to vote:

48 48

Motion to vote Motion to vote: By separate vote, granting full discharge to the directors and By separate vote, granting full discharge to the directors and statutory auditor who were active during the financial year 2007 statutory auditor who were active during the financial year 2007 for the tasks executed by them during the course of the financial for the tasks executed by them during the course of the financial year. year.

slide-49
SLIDE 49

Board of directors Board of directors:

  • Robert Peek

Robert Peek

  • Johannes Stols

Johannes Stols

  • Luc Vandewalle

Luc Vandewalle

  • Gerardus van Jeveren

Gerardus van Jeveren

  • Jan Peeters

Jan Peeters

49 49

  • Jan Peeters

Jan Peeters

  • Couckinvest NV (Marc Coucke)

Couckinvest NV (Marc Coucke)

  • Benoit Graulich

Benoit Graulich Statutory auditor Statutory auditor:

  • PricewaterhouseCoopers Bedrijfsrevisoren BCVBA

PricewaterhouseCoopers Bedrijfsrevisoren BCVBA

slide-50
SLIDE 50

Agenda Agenda: 6. 6. Appointment of independent director in accordance Appointment of independent director in accordance with article 524 with article 524 §4 of the Belgian Company code, 4 of the Belgian Company code, and remuneration. and remuneration.

50 50

Motion to vote Motion to vote: Appointment of Mr Rudi De Becker as independent director in Appointment of Mr Rudi De Becker as independent director in accordance with and fulfilling the criteria stipulated in article 524 accordance with and fulfilling the criteria stipulated in article 524 §4 of the Belgian Company code for a period of 2 years, up to 4 of the Belgian Company code for a period of 2 years, up to and including the annual meeting to be held in 2010. and including the annual meeting to be held in 2010. Establishment of the remuneration of Mr Rudi De Becker at Establishment of the remuneration of Mr Rudi De Becker at € 20,000 per annum. 20,000 per annum.

slide-51
SLIDE 51

Agenda Agenda: 7. 7. Acknowledgement of the remuneration of non Acknowledgement of the remuneration of non-executive executive directors. directors. The shareholders take notice of the fact that the annual The shareholders take notice of the fact that the annual remunerations for non remunerations for non-executive directors, as approved at the executive directors, as approved at the

51 51

remunerations for non remunerations for non-executive directors, as approved at the executive directors, as approved at the general shareholders’ meeting of October general shareholders’ meeting of October 4th

th 2007

2007, shall , shall remain unchanged for remain unchanged for 2008 2008.

board board

  • rem. c.
  • rem. c.
  • app. c.
  • app. c.

audit c. audit c. total total warrants warrants Robert Peek Robert Peek € 30,000 30,000 € 5,000 5,000 € € 5,000 5,000 € 40,000 40,000 20,000 20,000 Hans Stols Hans Stols € 20,000 20,000 € 5,000 5,000 € € 5,000 5,000 € 30,000 30,000 10,000 10,000 Couckinvest NV Couckinvest NV

  • 50,000

50,000 Benoit Graulich Benoit Graulich € 20,000 20,000 € € 5,000 5,000 € 25,000 25,000 10,000 10,000 Luc Vandewalle Luc Vandewalle € 20,000 20,000 € € 5,000 5,000 € 25,000 25,000 10,000 10,000 Rudi De Becker Rudi De Becker € 20,000 20,000 € 5,000 5,000 € € 5,000 5,000 € 30,000 30,000 10,000 10,000 Total Total € 110,000 110,000 € 15,000 15,000 € € 10,000 10,000 € € 15,000 15,000 € 150,000 150,000 110,000 110,000

slide-52
SLIDE 52

Agenda Agenda: 8. 8. As a consequence of the modified scope of the control, revision of As a consequence of the modified scope of the control, revision of the remuneration of the statutory auditor, PricewaterhouseCoopers the remuneration of the statutory auditor, PricewaterhouseCoopers Bedrijfsrevisoren BCVBA, appointed at the moment of the creation Bedrijfsrevisoren BCVBA, appointed at the moment of the creation

  • f the company on June 29
  • f the company on June 29th

th 2007 for a period of three years, up to

2007 for a period of three years, up to

52 52

and including the annual meeting to be held in 2010. and including the annual meeting to be held in 2010. Motion to vote Motion to vote: Revision of the remuneration of the statutory auditor, Revision of the remuneration of the statutory auditor, PricewaterhouseCoopers Bedrijfsrevisoren BCVBA, for executing his PricewaterhouseCoopers Bedrijfsrevisoren BCVBA, for executing his mandate (statutory and consolidation) from mandate (statutory and consolidation) from € 2,907 to 2,907 to € 39,268 for 39,268 for the accounting year 2007 and the accounting year 2007 and € 35,094 for each of the two 35,094 for each of the two successive accounting years. successive accounting years.

slide-53
SLIDE 53

Agenda Agenda: 9. 9. Explanation and discussion of the Corporate Governance at Explanation and discussion of the Corporate Governance at Arseus NV. Arseus NV.

  • Current composition of the board of directors

Current composition of the board of directors

53 53

  • Current composition of the board of directors

Current composition of the board of directors

  • Current composition of the executive committee

Current composition of the executive committee

  • Overview of remunerations

Overview of remunerations

  • Corporate Governance Charter

Corporate Governance Charter

slide-54
SLIDE 54

Composition of the board of directors Composition of the board of directors

54 54

  • Members or their permanent representative (from left to right): Johannes

Members or their permanent representative (from left to right): Johannes Stols, Rudi De Becker, Luc Vandewalle (sitting), Marc Coucke, Robert Stols, Rudi De Becker, Luc Vandewalle (sitting), Marc Coucke, Robert Peek, Ger van Jeveren, Benoit Graulich, Jan Peeters (sitting) Peek, Ger van Jeveren, Benoit Graulich, Jan Peeters (sitting)

  • 8 members of whom 5 independent directors

8 members of whom 5 independent directors

  • Independent Chairman (Robert Peek)

Independent Chairman (Robert Peek)

slide-55
SLIDE 55

board board

  • f directors
  • f directors

remuneration remuneration committee committee audit audit committee committee executive executive committee committee appointment appointment committee committee

Board of directors and its specialized committees Board of directors and its specialized committees

55 55

committee committee committee committee committee committee committee committee

  • Robert Peek (c)

Robert Peek (c)

  • Rudi De Becker

Rudi De Becker

  • Ger van Jeveren

Ger van Jeveren

  • Rudi De Becker (c)

Rudi De Becker (c)

  • Johannes Stols

Johannes Stols

  • Robert Peek

Robert Peek

  • Benoit Graulich (c)

Benoit Graulich (c)

  • Johannes Stols

Johannes Stols

  • Luc Vandewalle

Luc Vandewalle

  • Ger van Jeveren

Ger van Jeveren

  • Jan Peeters

Jan Peeters

  • Frank Verbakel

Frank Verbakel

The composition of the remuneration committee, appointment committee and audit The composition of the remuneration committee, appointment committee and audit committee complies with all the requirements stated in the Belgian Corporate committee complies with all the requirements stated in the Belgian Corporate Governance Code. Governance Code.

slide-56
SLIDE 56

Composition of executive committee Composition of executive committee

56 56

Members (from left to right): Members (from left to right):

  • Jan Peeters

Jan Peeters – Chief Financial Officer Chief Financial Officer

  • Frank Verbakel

Frank Verbakel – Group Financial Controller Group Financial Controller

  • Ger van Jeveren

Ger van Jeveren – Chief Executive Officer Chief Executive Officer The executive committee has 3 members, of whom 2 The executive committee has 3 members, of whom 2 board members. board members.

slide-57
SLIDE 57

Overview of remunerations Overview of remunerations

(x (x € 1,000) 1,000) Fixed Fixed remuneration remuneration component component Variable Variable remuneration remuneration component component Other Other remuneration remuneration components components Financial year 2007 Financial year 2007 Ger van Jeveren (CEO) Ger van Jeveren (CEO) 405 405 450 450 15 15

57 57

Ger van Jeveren (CEO) Ger van Jeveren (CEO) 405 405 450 450 15 15 Executive committee, incl. CEO Executive committee, incl. CEO 957 957 600 600 29 29 Non Non-executive directors* executive directors* 33 33

* Pro * Pro-rata allocation for 2007 rata allocation for 2007

slide-58
SLIDE 58

The board of directors of Arseus approved the first issue of the The board of directors of Arseus approved the first issue of the Corporate Governance Charter on 4 October 2007. An updated issue Corporate Governance Charter on 4 October 2007. An updated issue was approved on 24 April 2008. was approved on 24 April 2008. The objective of the board of directors is to comply with the principles of The objective of the board of directors is to comply with the principles of the Belgian Corporate Governance Code as closely as possible. the Belgian Corporate Governance Code as closely as possible.

Corporate Governance Charter Corporate Governance Charter

58 58

The Company holds the opinion that it complies with all principles and The Company holds the opinion that it complies with all principles and provisions of the Belgian Corporate Governance Code, with the exception provisions of the Belgian Corporate Governance Code, with the exception

  • f the possibility to allocate warrants to non
  • f the possibility to allocate warrants to non-executive directors and of the

executive directors and of the right for shareholders representing at least 20% of the capital to propose right for shareholders representing at least 20% of the capital to propose subjects for the agenda of the General Meeting of Shareholders. subjects for the agenda of the General Meeting of Shareholders. The corresponding explanations for the deviations are described in The corresponding explanations for the deviations are described in the annual report 2007 of Arseus. the annual report 2007 of Arseus.

slide-59
SLIDE 59

Agenda Agenda: 10.

  • 10. Miscellaneous

Miscellaneous

59 59

slide-60
SLIDE 60

Contact details Financial calender

Arseus Investor Relations Arseus Investor Relations Constantijn van Rietschoten Constantijn van Rietschoten +31 (0)88 33 11 211 (phone) +31 (0)88 33 11 211 (phone) +31 (0)88 33 11 201 (fax) +31 (0)88 33 11 201 (fax) 15 May ‘08 15 May ‘08 Dividend payable Dividend payable 15 July ‘08 15 July ‘08 Trading update Q2 2008 Trading update Q2 2008 26 August ‘08 26 August ‘08 S1 2008 results S1 2008 results 60 60 +31 (0)88 33 11 201 (fax) +31 (0)88 33 11 201 (fax) info@arseus.com info@arseus.com

Disclaimer

This presentation contains forward This presentation contains forward-looking information which is based on current internal estimates looking information which is based on current internal estimates and expectations as well as market expectations. Forward and expectations as well as market expectations. Forward-

  • looking statements contain inherent risks

looking statements contain inherent risks and apply exclusively on the date they are made. The actual results may differ substantially from and apply exclusively on the date they are made. The actual results may differ substantially from those included in the forward looking statement. those included in the forward looking statement. 14 October ‘08 14 October ‘08 Trading update Q3 2008 Trading update Q3 2008 13 January ‘09 13 January ‘09 Trading update Q4 & FY 2008 Trading update Q4 & FY 2008