Coloplast A/S Investor presentation 2 Coloplast Coloplast - - PowerPoint PPT Presentation

▶
coloplast a s
SMART_READER_LITE
LIVE PREVIEW

Coloplast A/S Investor presentation 2 Coloplast Coloplast - - PowerPoint PPT Presentation

Sep 29, 2023 378 likes •860 views

Coloplast A/S Investor presentation 2 Coloplast Coloplast products and services help patients achieve greater independence from medical challenges in 5 areas: Ostomy care, continence care, wound care, skin care and breast care. 39%* 24% 12%

slide-1
SLIDE 1

Coloplast A/S

Investor presentation

slide-2
SLIDE 2

2

Coloplast

Coloplast products and services help patients achieve greater independence from medical challenges in 5 areas: Ostomy care, continence care, wound care, skin care and breast care.

39%* 24% 12% 5% 7% *Percentage of total group sales (2003/04)

slide-3
SLIDE 3

3

1000 2000 3000 4000 5000 6000 7000

1957 1962 1967 1972 1977 1982 1987 1992 1997 2002

History of revenue growth 1957-2004

mDKK Danish production and sale through distributors Product divisions and subsidiaries Acquisitions Forward integration

slide-4
SLIDE 4

4

Sales and production world wide

Austria Belgium Germany Great Britain Italy Sweden Norway Argentina Australia Brazil Canada USA France Holland Hungary Poland Spain Japan Switzerland Israel Russia Czech Republic Slovenia Slovakia Croatia South Africa Denmark Costa Rica Portugal China

slide-5
SLIDE 5

5

Geographical distribution

Revenue 2003/04

Europe The Americas ROW

81% 6% 13%

slide-6
SLIDE 6

6

Innovation rate*

5 10 15 20 25 30 35 98/99 99/00 00/01 01/02 02/03 03/04

% of sales Group target * Share of products in sales with less than 4 years of age

slide-7
SLIDE 7

7

Macro trends

Trend Description Demographics Population aged 60 or older is growing steadily in Europe, Asia and North America… … and with higher demands for health care Changing lifestyles triggered by improved wealth Health care reforms Health care budget constraints… … lead to the need for cost containment programmes… … through co- payment and consumption capitation Power to distribution The major distributors grow their share... ...through both retail pharmacy, home care and parallel importing... ...changing them to competitors, not customers

All issues have been on the agenda for years

slide-8
SLIDE 8

8

Market conditions and response

1. Reimbursement changes

  • Monitor/influence policy
  • Product design
  • Emphasis on clinical

documentation 2. Price pressure

  • Observe market trends
  • Improve tendering capabilities

3. Harmonisation of health care systems

  • Monitor development

Market growth influenced by:

  • Earlier cancer detection
  • Improved surgical procedures
  • Increased longevity
  • New technologies and treatment

alternatives

  • Slowdown in conversion from
  • lder products
slide-9
SLIDE 9

9

Three key customers

  • The end customer
  • The user, primary concern

is quality of life

  • The health care professional
  • The advisor, primary

concerns are user quality

  • f life and handling
  • The payer
  • Concern is primarily

product pricing

slide-10
SLIDE 10

10

Competitor overview

Total corp. % of total Turnover by business area (DKKm) Ostomy care Continence care Wound care Skin care

C

  • n

v a T e c H

  • l

l i s t e r M e n t

  • r

A s t r a T e c h S & N J & J C

  • l
  • p

l a s t

4% 80% 12% 20% 67% ½% ¼%

slide-11
SLIDE 11

11

Business Structure

Group Management Wound care Breast care Skin health Ostomy care Continence care V

  • l

u m e p r

  • d

u c t i

  • n

Americas Europe, South Europe, North RoW Chronic care segment SBU segment

Corporate functions

Sales

slide-12
SLIDE 12

12

Ostomy care - for discreet protection

  • Normal function of bowel or bladder lost
  • Almost 80% related to cancer
  • Designed for security, skin-friendliness,

discretion, ease of use and comfort

  • Wide variety of bags, plugs and

accessories

slide-13
SLIDE 13

13

Ostomy care - market data

Global market value DKK 8-8½bn

Europe (>4bn)

ConvaTec Coloplast Hollister B Braun Other

28% 37% 24% 5% 6%

USA (<2bn)

55% 4% 39% 2%

Note: Only markets where Coloplast is present are included

35% 28% 27% 10%

Global (>8bn)

slide-14
SLIDE 14

14

Continence care - for independent living

  • Spinal cord injured, multiple

sclerosis, spina bifida

  • Discreet and easy-to-use

solutions

  • Catheters, urine bags,

urisheaths, bowel management, absorbent products

slide-15
SLIDE 15

15

Continence care - market data

No direct competitors

  • 1.0bn DKK

2% >60% 30% (value) 43% Coloplast market share (Europe) Main competitors Coloplast growth Market size Product area Mentor, Hollister, Rochester, Manfred Sauer 0-3% 0.5bn DKK 0-3% Bard, Hollister, Mentor, B Braun, Manfred Sauer, Unomedical 5% 1.2bn DKK 0-5% Astra Tech, Porges/Mentor, Rüsch, Rochester, B Braun 15-20% 1.5bn DKK 15%

slide-16
SLIDE 16

16

Chronic care - US market positioning and key goals

  • Strong product portfolio
  • Convex baseplate, EasiClose
  • Market access through GPO/IDN
  • Consorta
  • Large number of IDN contracts
  • Significant growth in new patient discharge
  • Sustained OC hospital growth > 30%
  • Sustained OC/CC growth > 20%
  • Reach two-digit ostomy market share within 3-5 years
  • Develop intermittent coated catheter market segment
slide-17
SLIDE 17

17

Chronic care - US market value

Ostomy market value 280mn USD Continence market value 370mn USD

Other 2% Coloplast 4% CvT 56% Holl 38% Intermittent Coated Catheters estimated value potential 60

  • mill. USD, 16% of total CC
slide-18
SLIDE 18

18

Distribution Hospital Home Health Agencies Retail DME

Chronic care - US patient path

Payer source - Medicare, Medicaid and private insurance

2-5 Days 90 Days - 20 Years 30-90 Days

Patient path Patient at home New patient Convalescent patient

(at home or in long-term care inst.)

Direct sales, wholesalers and specialised home care providers Medical product manufacturer GPO

slide-19
SLIDE 19

19

Home care value chain

Coloplast Subs.

Wholesaler Pharmacy Passive distribution Active distribution

Home care

Hospitals Value Proposition Innovation Relationship

slide-20
SLIDE 20

20

Coloplast home care activities

Leading provider in the US of ostomy, wound care, urological, and diabetic products and cost management services. Ownership since 2001. Distribution of ostomy, continence care and wound care products in the UK. Cutting service for ostomists. Internal merger of Coloplast Direct (1996) and ThackrayCare (2001). Established 2004. German market leader in active

  • distribution. Distributing 1/3 of all ostomy

bags in Germany. Ownership majority since 2001.

slide-21
SLIDE 21

21

Effects of changing market conditions in Germany

Jan 05 Oct 04 Jul 04 Apr 04 Jan 04 CC draft for new prices OC final decision CC final decision postponed OC price reduction OC draft for new prices Implementation of health care reform Introduction of patients‘ co-payment for medical devices Reimbursement on auxiliary products removed CC final decision Dec 04 Exp 2006 Oct 03 Stocking by users, additional sales Market conditions Market effects Retail anticipates lower prices, dampened sales. Comparison with Q1 03/04 De-stocking by users, dampened sales, higher

  • admin. costs

Alignment to changed market conditions

slide-22
SLIDE 22

22

German market impact on Coloplast

  • Reform impacts 1-1.2bn DKK turnover (ostomy

and continence care)

  • Coloplast is German market leader in ostomy
  • HSC is German market leader in distribution
  • distributing 1/3 of all ostomy products
  • Activities will be aligned to changed market

conditions from 2005

  • Expectations for 2004/05 affected by 1-2

percentage points on top line and profit margin

  • Objectives for 2008 are maintained
slide-23
SLIDE 23

23

Wound care - providing better outcomes

  • For difficult to heal wounds
  • leg ulcers, pressure sores,

diabetic ulcers

  • Primarily affects the elderly
  • Portfolio of advanced, active

dressings

  • Education, information

and service

slide-24
SLIDE 24

24

€ 1.0 billion € 1.0 billion

Wound care - market definition

Moist wound healing Dry wound healing Chronic Acute € 0.5 billion € 1.0 billion € 1.5 billion

Wound type

Pharma and biotech VAC € 0.1 billion € 0.4 billion Active € 0.4 billion € 0.1 billion

Product technology

€ 1.1 billion segment, growth 9-11%

Compression

slide-25
SLIDE 25

25 27% 17% 14% 11% 21% 10%

Convatec S&N Coloplast J&J Mölnlycke Others

Wound care - market shares in Europe

MWH and active products X X Mölnlycke X X X J&J X X Coloplast X X S&N X X ConvaTec Active Advanced Traditional Technology

slide-26
SLIDE 26

26

Skin health - for medical and personal use

  • To treat skin problems arising

from medical conditions or related to frequent hand washings

  • Designed for cleansing, moisturising,

protection and treatment

  • Skin health includes US wound care sales
  • 3/4 of SBU turnover generated in the US
slide-27
SLIDE 27

27

Skin health - product positioning

PATIENT INTERVENTIONS INTACT SKIN

Risk Factors

  • Dry skin
  • Immobility
  • Incontinence

ALL PATIENTS Intact Skin

Moisturising Skin breakdown Skin repair + Barriers + Wound care + Cleansing Bathing + Wound cleansing

Intact Skin CLINICIAN

Hand hygiene

slide-28
SLIDE 28

28

Long-term care

Skin health - competitors

4bn DKK US market

20 40 60 80 100 20 40 60 80 100 Sales setting (%) Acute Wound Skin Product mix (%)

slide-29
SLIDE 29

29

Breast care - for peace of mind

  • Attached, lightweight and soft

breast forms, partial breast shapers, lingerie and swimwear

  • Breast cancer affect approx.

10% of women

slide-30
SLIDE 30

30

Breast care business case

1bn DKK global market

  • 45% total market share

(breastforms, partials, textiles)

  • >50% market share for breast

forms

  • 50/50 sales value split between

US and Europe

  • Incidence of cancer

in women is increasing

  • Number of breast-saving

surgeries increasing

  • US market hit by low demand

Coloplast Anita TruLife American BC Airway Thämert Others

Partials Bras Swimwear Others Breast Forms

Segmentation by product group Coloplast sales value Competitor overview

slide-31
SLIDE 31

31

Expectations and targets

  • Sales growth of 8-9% in

local currencies

  • Profit margin 15-16%
  • Sales exceeding DKK 9 billion

through organic growth

  • Profit margin (EBIT) reaching 18%
  • ROAIC of 20%
  • Acquisitions and divestments

2004/05 2008

slide-32
SLIDE 32

32

Key figures Q3 2004/05

  • 19

Special items

  • 96

33 85 92 84 93 107

Index vs 2003/04

17% 433

  • 3
  • 226

662

  • 87

749 4,468

9 months 2003/04

15% 414

  • 1
  • 192

607

  • 73

699 4,786

9 months 2004/05

EBIT Profit margin Group profit Minority interests Tax Profit before tax Financial items Revenue

mDKK

slide-33
SLIDE 33

33

Growth Q3 2004/05

  • local currencies

2-6% 5-8% 9-11% 9-12% (3)-(1)%

  • Est. market

growth 4% 8% 18% 5% 9% 8% 6% 4% 12% (3)% 4% Growth Q1 2004/05 Growth H1 2004/05 Growth Q3 2004/05 5% 10% 23% 7% 11% 22% Europe Americas ROW 7% 8% Coloplast total 9% 9% 8% 8% 7% (1)% 5% 9% 10% 9% 9% 8% 4% 7% Ostomy Care Continence Care Chronic Care segment* Wound Care Skin Health Breast Care SBU segment

Continence Care (24%) Ostomy Care (39%) Other (13%) Wound Care (12%) Breast Care (7%) Skin Health (5%) *Includes homecare

slide-34
SLIDE 34

34

Breast Care sales rebound at 4% growth

  • Growth in both US and Europe

Wound Care sales increase of 9%

  • Growth back on track
  • Biatain Ag and Altreet Ag silver dressings introduced in France

Continence Care growth by 10%

  • SpeediCath Compact still fuelling growth
  • New reimbursement prices in Germany expected in 2006

Ostomy Care continues to outperform market growth

  • Solid US and RoW growth, restructuring in Germany
  • Corsinel well accepted, Strong Easiflex growth

Highlights markets

slide-35
SLIDE 35

35

Profit and margins - how to reach 18%…

  • Relocation
  • Hungary and China
  • Efficiency projects / abc
  • SBU margin improvement
  • Economies of scale

200 400 600 800 1000 1200 99/00 00/01 01/02 02/03 03/04 10 11 12 13 14 15 16 17 EBIT EBIT % mn %

slide-36
SLIDE 36

36

Volume production

Product life cycle stages

Introduction and development Growth Decline Maturity Time Sales

slide-37
SLIDE 37

37

Tatabanya, Hungary

  • 700 headcounts by Aug. 2005
  • Construction completed
  • DKK 1.5bn sales value in 2005/06
  • EBIT up 5% compared to

Danish manufacturing

  • Phase I - finalised: ostomy bags, urisheaths
  • Phase II - finalised: ostomy bags, dressings, catheters
  • Phase III - finalised 2005: Assura ostomy bags, baseplates, adhesives

Coloplast, Phase I-III, Tatabanya, Hungary

slide-38
SLIDE 38

38

Coloplast’s total staff requirements by geography

Total staff requirements (FTEs) by geography, 2003/04-2010/11

500 1.000 1.500 2.000 2 3 / 4 2 4 / 5 2 5 / 6 2 6 / 7 2 7 / 8 2 8 / 9 2 9 / 1 2 1 / 1 1

FTEs

DK HU CN

slide-39
SLIDE 39

39

Cash flow

  • 1500
  • 1000
  • 500

500 1000 1500

9 6 / 9 7 9 7 / 9 8 9 8 / 9 9 9 9 / / 1 1 / 2 2 / 3 3 / 4 3 Q 4 / 5

mDKK

Acquisitions Investments Cash flow Free cash flow

slide-40
SLIDE 40

40

Oil prices

  • Energy consumption
  • Fixed price contract 2006-2008
  • Cost of goods sold
  • Polymer raw material price increase
  • Transportation of goods
  • Diesel oil price increase
slide-41
SLIDE 41

41

slide-42
SLIDE 42

42

Coloplast consolidated figures

1 EBITDA defined as Profit before depreciation as stated in the Accounts 2 Net Interest Expense defined as Interest Expense less Interest Income 3 Total Debt defined as Short Term Bank Loans and Mortgages plus Long Term Bank Loans and Mortgages 4 Net Debt defined as Total Debt less Cash and cash equivalents

As per 30 September 2004 577 567 768 405 292 Coloplast’s share of profit for the year 89 21 60 31 48 Net financial expenses2 988 909 875 618 498 Operating profit 2,357 2,002 1,562 1,213 1,637 Total equity capital 1,465 1,473 1,471 1,121 334 Net debt4 2,206 2,301 1,791 1,395 509 Total debt3 1,295 1,206 1,157 878 720 EBITDA1 6,069 5,610 5,567 4,018 3,556 Net turnover 03/04 02/03 01/02 00/01 99/00 mDKK

slide-43
SLIDE 43

43

Coloplast key financial ratios

13 17 14 44 48 EBITDA/Net interest, ratio Coverage 21 21 21 22 20 EBITDA margin 10 10 10 8 4 Total debt/total capitalisation, % 113 122 127 128 46 Net debt/EBITDA, ratio Leverage 16 16 16 15 14 Operating profit margin Profitability 03/04 02/03 01/02 00/01 99/00 As per 30 September 2004

slide-44
SLIDE 44

44

Investments - tangible assets

  • 100

100 200 300 400 500 600 700 97/98 98/99 99/00 00/01 01/02 02/03 03/04 Adjustment, tangible assets under construction Plant & machinery Land & buildings mDKK

slide-45
SLIDE 45

45

5 year share price development

slide-46
SLIDE 46

46

Shareholders as per 30 September 2004

  • 2.5

592 Coloplast A/S* 14.8 24.8 5,960 Foreign instit. investors 97.5 100.0 22,200 1,800 Total

  • 1.7

405 Non-registered shareholders* 5.0 8.4 2,014 Other shareholders 10.9 18.3 4,390 Danish instit. investors 66.8 44.3 8,839 1,800 Holders of A-shares Voting rights, % Owner- ship, % B-shares 1,000 units A-shares 1,000 units

*No voting rights