Convatec Group Plc · LSE:CTEC
Convatec — Q1 2019 Earnings Presentation
15 slides from Convatec's earnings presentation, May 3, 2019
Slide 1: Q1 2019 Trading Update
Q1 2019 Trading Update 3 May 2019 0
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA, ITS TERRITORIES OR POSSESSIONS, OR TO ANY RESIDENT THEREOF OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION WOULD BE UNLAWFUL OR TO ANY OTHER PERSON. This pres
Slide 3: Franchise Results Overview
Franchise Results Overview Q1 2019 Organic growth1, 2 Reported revenue ($m) Organic growth1 ex. provision Advanced 129.7 (6.8)% (3.2)% Wound Care Ostomy Care 119.6 (0.8)% 0.9% Continence & 108.4 1.8% 3.1% Critical Care Infusion 72.9 (0.2)% (0.2)% Devices Total Revenue 430.6 (2.0)% (0.1)% 1 Organic g
Slide 4: Advanced Wound Care
Advanced Wound Care Performance reflects ongoing challenges Reported revenue ($m) 147.1 142.9 146.8 150.7 • Organic revenue declined 3.2%1,2 129.7 • Significant drag from skin care of c.200 bps • US underperformance; UK impacted by negative channel inventory movements • AQUACELTM Ag+ / Advantage del
Slide 5: Transformation in US AWC – better targeting and tracking
Transformation in US AWC – better targeting and tracking BEFORE TODAY • Reliance on distributor push • Demand creation: specialised sales force, focused around disease state • Basic CRM & performance tracking tools • Advanced sales tool & activity tracking • Lack of product focus • Using data and me
Slide 6: Ostomy Care
Ostomy Care Good performance in LatAm and APAC, weakness in US Reported revenue $’m Reported revenue ($m) 138.0 135.9 128.0 131.4 119.6 • Organic revenue grew 0.9%1,2 • Good performance in LatAm and APAC • Weakness in US being addressed: Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 YoY organic growth rat
Slide 7: Continence & Critical Care
Continence & Critical Care HDG continuing to grow above market Reported revenue $’m Reported revenue ($m) 111.7 115.4 108.4 107.5 108.4 • Organic revenue grew 3.1%1,2 • Continence continued to drive overall growth Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 YoY organic 5.6% 5.9% 1.4% 3.9% 1.8% growth ra
Slide 8: Infusion Devices
Infusion Devices Strong customer orders Reported revenue $’m Reported revenue ($m) 74.7 72.9 70.5 66.5 56.6 • Revenue (0.2)%1 organic • Stronger customer orders than anticipated Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 • neriaTM guard now launched in 10 markets YoY organic (3.7)% 16.3% 2.7% (24.9)% (
Slide 9: Transformation Initiative Update
Transformation Initiative Update • Momentum building • Single most important programme within ConvaTec • 75 workshops held • Almost 300 leaders trained in transformation • More detail with our interim results in August 8
Slide 10: Q1 2019 Summary and Outlook
Q1 2019 Summary and Outlook • Trading in-line with our expectations and reflects challenges outlined in February • US AWC business: building blocks in place to deliver improved revenue growth • OC: good performance in LatAm and APAC, continued weakness in the US • CCC: HDG continuing to outgrow mark
Slide 11: Q&A
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Slide 12: Appendix
Appendix
Slide 13: Quarterly Revenue Performance
Quarterly Revenue Performance Quarterly reported revenues by franchise Organic growth rate by franchise1 2018 2019 2018 2019 $m Q1 Q2 Q3 Q4 Q1 % Q1 Q2 Q3 Q4 Q1 AWC 147.1 142.9 146.8 150.7 129.7 AWC 2.2 (0.2) 0.8 (1.8) (6.8) 11.4% OC 128.0 138.0 11.9% 131.4 135.9 119.6 OC (2.5) 0.3 1.5 (1.5) (0.8) CC
Slide 14: Quarterly Revenue Performance
Quarterly Revenue Performance Quarterly reported revenues by region Organic growth rate by region1 2018 2019 2018 2019 $m Q1 Q2 Q3 Q4 Q1 % Q1 Q2 Q3 Q4 Q1 Americas 234.3 240.8 231.9 238.3 220.9 11.4% Americas 8.1 x% 4.8 (1.1) (6.0) (5.0) EMEA 192.2 186.1 184.6 184.5 176.9 EMEA (0.9) (2.1) 1.3 (3.5) (
Slide 15: FX Rates
FX Rates Q1 2019 Average Q1 2018 Average USD/GBP 1.30 1.39 USD/EUR 1.14 1.23 14