Weifa ASA Second quarter and first half 2016 Third quarter 2015 - - PowerPoint PPT Presentation

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Weifa ASA Second quarter and first half 2016 Third quarter 2015 - - PowerPoint PPT Presentation

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Weifa ASA Second quarter and first half 2016 Third quarter 2015 Kathrine Gamborg Andreassen (CEO) and Simen Nyberg-Hansen (CFO) 25 August 2016 1 Presentation outline Highlights I Operational performance II Financial performance

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Weifa ASA – Second quarter and first half 2016– Third quarter 2015

Kathrine Gamborg Andreassen (CEO) and Simen Nyberg-Hansen (CFO) 25 August 2016

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Presentation outline

Highlights I Operational performance II Financial performance III Appendix V Outlook IV

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Highlights

  • Record second-quarter revenues of NOK 95.3

million (NOK 70.6 million)

  • Revenue growth of 35% - organic growth(excl. Asan)
  • f 17%
  • Strong brands secured high market share in all

categories and segments of both channels

  • Second-quarter adjusted EBITDA of NOK 18.6

million (NOK 12.7 million)

  • Adjusted EBITDA margin of 19.5% (18.0%)
  • Improved terms in new debt structure with

increased financial and strategic flexibility

  • One-time financial cost effect of MNOK 17.5 related to

the buy-back of the bond loan

  • Paid dividend of NOK 0.05 per share (NOK 1.25

per share adjusted for reversed share split)

  • Building Nordic position with agreement for pain

products in Finland

  • Entering new growth category by launch of Zonat,

an RX occasional insomnia product

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Delivering on our strategic priorities

Strengthen leadership within pain relief Be the fastest growing cough & cold player Expand geographically Enhance domestic position

Introducing pain brands in Finland 53% revenue growth for Bronkyl in Q2’16 Pharmacy market share

70% 76% 2010 2015

A unique product in a new category – launched Q3

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Four attractive key categories

Pain RX and OTC Cough & cold OTC Nutra Dermatology Number 1 in disinfection and intimate wash Number 1 and 2 in niche segments Number 1, 2 and 3 in certain segments Number 1 player

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Presentation outline

Highlights I Operational performance II Financial performance III Appendix V Outlook IV

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RX Pain

Strengthening the market position in prescription drugs

Market share development

  • RX pain – a growing segment
  • Market size NOK 305 million (LTM)
  • Growing 9.1% in the second quarter (LTM)
  • Weifa revenue from prescription drugs

rose 20% in the quarter

46% 69% 20% 46% 73% 24% Paralgin forte + Trampalgin Paracet Rx Ibux Rx 2015 2016

Market share LTM*

*) Market share by volume, 12 months rolling Source: LMI/Farmastat, Nielsen and Weifa
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OTC Pain

– A champion in the non-prescription pain category

Market share development

  • OTC Pain segment – stable market

development

  • Market size NOK 247 million (LTM)
  • Growing 1.1% in Q2 2016 (LTM)
  • Second quarter Weifa revenue for RX and

OTC pain combined increased 18%

  • Stable high market shares for both Paracet

and Ibux

87% 74% 88% 73% Paracet + Paracetduo (paracetamol) Ibux + Proxan (NSAID) 2015 2016

Market share LTM*

*) Market share by volume, 12 months rolling Source: LMI/Farmastat, Nielsen and Weifa
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SLIDE 9 9 8.9% 16.4% 8.4% 20.6% Tussin Bronkyl 2015 2016

OTC Cough & Cold

  • Bronkyl is the main growth driver in the cough segment

Market share development

  • Strong market growth in the OTC cough

segment (17%)

  • Market size for cough NOK 54 million (LTM)
  • Second quarter Weifa revenue increased

30% to NOK 4.7 million

  • Bronkyl sales up 53%
  • Positive development for Dexyl and Tussin
  • Offset by lower sales of Weifa C and Nazamér

Market share LTM*

*) Market share by volume, 12 months rolling Source: LMI/Farmastat, Nielsen and Weifa
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Nutraceuticals with mixed development

Market share multivitamin

  • The market for minerals, vitamins and

supplements (OTX) is growing

  • Market size NOK 360 million in pharmacy

channel (LTM)

  • Growing 11% in second quarter 2016 (LTM)
  • Weifa sales of nutraceuticals decreased

4.3% in the second quarter

  • Lower sales of Kalsium
  • Multivitamin position strengthened with

Complete multi as fastest-growing brand - 16% market share in second quarter (11%)

Market share LTM*

*) Amounts are based on LTM June 2016. All figures are measured in pharmacy purchasing prices. Source: LMI/Farmastat, Nielsen and Weifa *) Market share by volume, 12 months rolling. Source: Farmastat 11% 16% 2015 2016
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Dermatology – the new growth category

Market share Norway*

  • Market for shower and intimate wash

products declined by 1.9% (LTM)

  • Market size NOK 419 million (LTM)
  • Second quarter dermatology Weifa

revenue of NOK 15.7 million (2.9 million)

  • Revenues excluding Asan increased 1.9%
  • Asan not included in the year-ago numbers
20% 74% Shower Intimate care

Market share LTM*

Market share by value, 12 months rolling Source: AC Nielsen *) Category shower including intimate wash measured by value
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Presentation outline

Highlights I Operational performance II Financial performance III Appendix V Outlook IV

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Revenue development

Quarterly Annual

71 77 98 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Weifa Asan 194 220 220 239 248 282 274 292 299 310 316 333 2004 2005 2006 2007 2008 2009 2020 2011 2012 2013 2014 2015

NOK million

Note: Historical figures represent reported revenue for the consumer health business in Weifa AS.

NOK million

96 95
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Revenue EBITDA and margin

  • Q2 2016 revenue increased 35% YoY
  • Asan operations included from January 2016
  • Organic growth 17% (excluding Asan) driven

by demand for pain relief and cough & cold

  • Q2 2016 EBITDA
  • Adjusted for CMO margin effect and group

charges

  • Margin 21%

NOK million

Improving underlying margin

NOK million 71 95 Q2 2015 Q2 2016 13 20 18% 21%

0% 5% 10% 15% 20% 25% 30% 35% 0.0 5.0 10.0 15.0 20.0 25.0

Q2 2015 Q2 2016

Group charges CMO margin to Vistin Pharma
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Key financial events in the second quarter

  • Net financial cost impacted by one-time effects related to debt refinancing
  • NOK 17.5 million booked related to the buy-back and early redemption of the bond loan in the

second quarter and fees

  • The one-time cash effect about NOK 8 million as previously communicated
  • Improved terms in new debt structure with increased financial and strategic flexibility
  • New five-year NOK 350 million loan agreement with DNB at 3M NIBOR +2.5% at current leverage
  • Provides extended maturity and significant cost savings over the duration of the loan
  • Paid dividend of NOK 0.05 per share on 10 June (NOK 1.25 per share adjusted for

reversed share split)

  • Reverse share split 25:1 effectuated on 13 July in order to secure adequate pricing of the

shares and to comply with Oslo Børs’ continuing obligations

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Consolidated income statement

* Adj. for employee options of NOK 1.4 million in Q2 2016 (Q2 2015 NOK 1.7 million) ** Incl. one-off cost from the buy back of own bonds (book value vs transaction value) of NOK 17.5 million in Q2 2016

(NOK 1 000) Q2 2016 Q2 2015 6M 2016 6M 2015 2015 Total revenue and income 95 344 70 606 191 497 157 993 332 547 EBITDA 17 147 10 993 33 610 28 459 65 583 EBITDA adjusted* 18 587 12 681 40 504 31 579 72 909 Profit/(loss) from continuing operations ** (6 142) 2 476 301 8 980 10 208 Earnings per share (NOK): diluted (0.01) 0.00 0.00 0.01 0.01 Total Assets 1 495 940 1 553 170 1 495 940 1 553 170 1 544 363 Net interest-bearing debt 312 532 134 193 312 532 134 193 152 544
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Strong operational cash flow

Q2

  • Cash flow from operations reflect strong growth momentum
  • Investing activities reflect low capex
  • Net cash flow from financing reflects net effect of the refinancing as well as dividend paid

in the amount of NOK 45.6 million for the quarter

(NOK 1 000) Q2 2016 Q2 2015 6M 2016 6M 2015 2015 Cash flow from operating activities 17 690 3 502 23 873 3 863 49 472 Cash flow from investing activities 278 120 221 (120 511) 118 007 106 970 Cash flow from financing activities (112 049) (4 534) (65 945) (61 434) (98 776) Net change in cash and cash equivalents (94 081) 119 189 (162 583) 60 436 57 666 Cash and cash equivalents beginning period 133 438 85 521 201 940 144 274 144 274 Cash and cash equivalents end period 39 357 204 710 39 357 204 710 201 940
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Robust balance sheet after successful refinancing

  • Cash and cash equivalents amounted to NOK 39 million at the end of the quarter
  • Total borrowings NOK 352 million after refinancing
  • Net interest bearing debt of NOK 313 million
  • Equity ratio of 72%
(NOK 1 000) 30.06.2016 30.06.2015 31.12.2015 Intangible assets 1 260 218 1 127 114 1 150 848 Deferred tax assets 103 175 122 051 110 549 Cash and cash equivalents 39 357 204 710 201 940 Other assets 93 190 99 295 81 026 Total assets 1 495 940 1 553 170 1 544 363 Total equity 1 075 720 1 140 116 1 117 991 Interest-bearing loans 351 889 338 903 354 484 Other liabilities 68 331 74 151 71 888 Total equity and liabilities 1 495 940 1 553 170 1 544 363 Net interest bearing debt 312 532 134 193 152 544
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Presentation outline

Highlights I Operational performance II Financial performance III Appendix V Outlook IV

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Expanding geographically and entering new segments

  • Weifa expects organic revenue growth and an

improved EBITDA margin for 2016 compared with the year before

  • Five-year distribution agreement with Fysioline Group

in Finland for pain products

  • New product launches and categories drivers for

growth

  • Zonat – RX product for occasional insomnia - launched in Q3
  • Solvivo – for sore throat - launch in Q3
  • Ibux 200mg capsules – launch in Q4

Weifa - well positioned for continued growth

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Q&A

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Thank you for your attention !

Next event: 3rd Quarter Presentation 25 October 2016

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Presentation outline

Highlights I Operational performance II Financial performance III Appendix V Summary IV

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Dermatology Nutraceuticals

NOK million

Category revenue development

NOK million

Pain relief

NOK Million NOK Million

Cough and cold

66 64 77 73 60 63 82 69 71 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 3.6 6.2 7.5 7.1 3.6 7.0 8.2 6.7 4.7 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 2.4 3.2 3.0 4.6 3.1 2.7 3.2 4.8 2.9 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 3.4 2.5 1.8 1.9 2.9 2.3 1.9 2.0 2.9 12.4 12.8 0.0 5.0 10.0 15.0 20.0 Q2 14 Q3 14 Q4 15 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Wound treatment and skin care Asan
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Management Team

Kathrine Gamborg Andreassen Chief Executive Officer Ms Gamborg Andreassen joined the Weifa team in August 2012 as head of Consumer Health Business, and replaced Kjell-Erik Nordby as CEO on 1 June 2015. She is an experienced marketing professional and has held several top management positions within the FMCG, food and health
  • business. Gamborg Andreassen holds an MSc in Business
Strategy & Marketing from the University of Wisconsin. Simen Nyberg-Hansen Chief Financial Officer Mr Nyberg-Hansen joined Weifa as CFO in August 2015 from the position as a consultant and chair in Dolphitech AS. He previously served as CFO at Norman ASA and Viking Redningstjeneste International AS. Nyberg-Hansen is a state authorized public accountant (CPA) and holds a master degree in Professional Accountancy from BI Norwegian Business School. Ole Henrik Eriksen Chief Operating Officer Mr Eriksen joined Weifa in September 2014 as VP Business Development when Aqualis ASA acquired Weifa AS. He has spent 30 years in the pharma, biotech and medtech industry and has wide experience from various management and executive positions, including Nycomed Imaging (now GE Healtcare), Medinnova (now Inven2). He was the first CEO of Clavis Pharma ASA, and has worked with the company through Aqualis ASA and later Weifa AS. Eriksen holds a
  • MSc. in Organic Chemistry from the Norwegian Institute of
Technology in Trondheim. Astrid T. Bratvedt Vice President R&D Ms Bratvedt has been head of R&D in Weifa since 2009. She previously headed Weifa's Regulatory and Medical
  • Department. Bratvedt holds a Master degree in Pharmacy in
addition to post graduate studies in management and project management. Morten Hovland Sand Vice President of Sales Mr Sand joined Weifa in 2007, and has been Head of Sales since 2008.He has broad professional experience within general management, strategy, sales and brand building related to fast moving consumer goods and retail from companies such as Coca Cola, Mills and Esso. Sand holds an BBA from BI Norwegian Business School.
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Top 20 shareholders as of 24 August 2016

NAME SHAREHOLDING % SHARE WATRIUM AS 4 716 282 12.9% EUROCLEAR BANK 2 596 986 7.1% HOLTA LIFE SCIENCES 1 824 392 5.0% MP PENSJON PK 1 642 755 4.5% STOREBRAND VEKST 1 431 552 3.9% VERDIPAPIRFONDET KLP 1 233 205 3.4% SOLAN CAPITAL AS 1 060 000 2.9% STOREBRAND NORGE 926 000 2.5% ARCTIC FUNDS 882 964 2.4% HOLBERG NORGE 852 591 2.3% KLP 810 059 2.2% VERDIPAPIRFONDET ALF 612 751 1.7% VERDIPAPIRFONDET DNB 581 374 1.6% PORTIA AS 534 000 1.5% VPF NORDEA NORGE 483 721 1.3% VERDIPAPIRFONDET STO 442 000 1.2% VPF NORDEA KAPITAL 349 717 1.0% BORGEN INVESTMENT 348 647 1.0% STATOIL PENSJON 335 645 0.9% DANSKE INVEST NORGE 325 096 0.9% Total 20 largest shareholders 21 989 737 60.3% Other shareholders 14 482 332 39.7% Total number of shares 36 472 069 100.0%