STADA Arzneimittel — FY2015 Earnings Presentation
30 slides from STADA Arzneimittel's earnings presentation, Mar 23, 2016
Slide 1: Press and Analysts' Conference March 23, 2016
Press and Analysts’ Conference March 23, 2016
Slide 2: General information
General information By making use of this document the reader acknowledges and agrees to the following: We accept no liability arising from the use of this document. STADA Arzneimittel AG, Bad Vilbel (hereinafter“STADA”), has made every effort to make sure that this document contains correct and up-
Slide 3: Forward-looking statement
Forward-looking statement This STADA Arzneimittel AG presentation (hereinafter "STADA") contains certain statements regarding future events that are based on the current expectations, estimates and forecasts on the part of the company management of STADA as well as other currently available informat
Slide 4: Overview 2015
Overview 2015 Hartmut Retzlaff
Slide 5: Highlights 2015
Highlights 2015 Sales (organic)1): • Group +4%: despite difficult market environment • Central Europe -3%: temporary reluctance on the part of the wholesalers in Belgium, strong performance in UK and Spain • Russia +8%: portfolio optimization at the forefront, sell-out continuously growing in the do
Slide 6: Sales split 2015
Sales split 2015 Sales of core segments 41% 59% Branded Products Generics (OTC and RX Specialty Pharmaceuticals) (RX and OTC) Adjusted EBITDA margin: 25.8% Adjusted EBITDA margin: 19.1% Press and Analysts’ Conference March 23, 2016 www.stada.com Page 6
Slide 7: Strategic and financial plan: Focus on brands with existing generics business
Strategic and financial plan: Focus on brands with existing generics business Generics Generics Generics 33% Shift to higher 64% 51% value creation Shift to higher value creation Brands Brands 67% Brands 36% 49% 2010 2015 2018 + Profit share1) • Shift in business portfolio mix • Brands sales growth
Slide 8: Top 10 brands in 2015
Top 10 brands in 2015 No. Branded Product Growth in % Sales in € million Indication ® 1. APO-go (RX) +23 62.9 Parkinson’s 2. Aqualor® (OTC) +6 42.9 Cough and cold 3. Grippostad® (OTC) +25 42.2 Cough and cold 4. Snup® (OTC) -9 30.0 Rhinitis 5. Vitaprost® (OTC) +5 21.7 Prostate hyperplasia 6. Fultium®
Slide 9: Results 2015 and Outlook 2016
Results 2015 and Outlook 2016 Helmut Kraft
Slide 10: Growth components 2015
Growth components 2015 Group sales: € 2,115.1 million (+2.6%) +4.0% +1.8% -3.2% 2,115.1 2,062.2 2014 Organic1) Portfolio Currency 2015 1) Adjusted for changes in the Group portfolio and currency effects. Press and Analysts’ Conference March 23, 2016 www.stada.com Page 10
Slide 11: Sales 2015 by market region
Sales 2015 By market region Total group € 2,115.1 million +3% (+4%) Asia/Pacific & MENA € 146.2 million +55% (+32%) Central Europe € 999.4 million 6.9% +5% (-3%) Germany € 459.6 million +3% (+3%) 21.7% 47.3% CIS/Eastern Europe 24.1% € 509.9 million -10% (+12%) (x) = Adjusted for changes in the Group
Slide 12: Growth developments in Russia (sell-out)
Growth developments in Russia (sell-out) Development of sales 2013-2015 Growth components retail market 2015 in RUB billion In RUB Growth Retail-Markt Growth STADA STADA Sales 23% 15% 16% 16.8% -2.0% 10% 12% 8% -7.2% 18.3 8.4% 15.8 0.7% 12.8 2013 2014 2015 Price Structure Volume New Total products G
Slide 13: Branded Products
Branded Products Sales Adj. EBITDA Regional sales development (in € million) (in € million) Asia/Pacific & MENA +7% € 53.6 million 800.5 853.6 +99.1% (+71.3%) -8% 6.3% Central Europe Germany € 369.5 million € 133.3 million +18.7% (+0.5%) -9.2% (-9.2%) 15.6% 240.0 220.1 43.3% CIS/Eastern Europe € 297
Slide 14: Generics
Generics Sales Adj. EBITDA Regional sales development (in € million) (in € million) Asia/Pacific & MENA -0% +2% € 79.0 million +36.2% (+14.5%) 1,217.7 1,217.5 CIS/Eastern Europe 6.5% € 211.5 million Central Europe -14.7% (+1.2%) 17.4% € 600.7 million 228.7 232.8 49.3% -1.7% (-3.3%) Germany 26.8% € 3
Slide 15: Key earnings figures 2015
Key earnings figures 2015 EBITDA (in € million) 2015 vs. 2014 Net income (in € million) 2015 vs. 2014 reported adjusted1) reported adjusted1) -10% -10% 431.9 389.4 -11% 418.8 377.1 186.2 165.8 +71% 110.4 64.6 2014 2015 2014 2015 2014 2015 2014 2015 1) Adjusted for one-time special effects. Press and
Slide 16: Net income adjustments in 2015
Net income adjustments in 20151) in € million 29.1 2.9 4.1 165.8 16.9 110.4 10.6 Reported net Delta additional Currency Value Measurement Various Adjusted net income write-off translation adjustments of derivative extraordinary income effects/other expenses of following financial expenses and measur
Slide 17: P&L details 2015
P&L details 2015 in € million 2015 in € 2015 in % 2014 in € 2014 in % million of sales million of sales Gross profit 1.013.4 47.9 991.8 48.1 Burdened by CIS crisis Selling expenses 482.6 22.8 458.4 22.2 Investments in the British and Italian market General and Previous year: Income in connection wit
Slide 18: Tax efficiency
Tax efficiency Development of the adjusted tax rate Outlook adjusted tax rate 24.2% 22.0% ≤ 25% 2014 2015 2016e Significant reduction in the tax rate in 2015: • In 2015, the reported tax rate decreased to 22.0% (previous year: 24.2%), primarily due to a changed profit allocation. Press and Analysts’
Slide 19: Balance sheet structure
Balance sheet structure Assets in € million Dec. 31, 2015 Dec. 31, 2014 A. Non-current assets 2,032.3 2,013.8 B. Current assets 1,255.1 1,321.7 Total assets 3,287.4 3,335.5 Equity and liabilities in € million Dec. 31, 2015 Dec. 31, 2014 A. Shareholders’ equity 1,018.5 903.4 B. Non-current liabilitie
Slide 20: Cash flow from operating activities and adjusted free cash flow
Cash flow from operating activities and adjusted free cash flow Cash flow from operating activities (in € million) 2011-2015 311.7 212.7 203.7 223.8 169.0 2011 2012 2013 2014 2015 Adjusted free cash flow1) (in € million) 2011-2015 212.4 149.6 157.4 123.3 133.3 2011 2012 2013 2014 2015 1) Free cash f
Slide 21: Financing structure
Financing structure Remaining maturities of financial liabilities due to banks as of December 31, 2015 in € million Corporate bond Credit Promissory notes 86.7 350.0 300.0 295.0 188.0 53.7 44.0 21.6 20.0 2016 2017 2018 2019 > 2019 • In the first quarter of 2015, STADA was able to successfully issue
Slide 22: Dividend proposal
Dividend proposal Dividend per STADA common share in € 2015: € 43.6 million 0.66 0.70 Dividend payout (2014: € 40.0 million) Appropriate share of reported net Dividend policy income to shareholders 2014 2015 Pay-out ratio 62% 39% 2014 2015 Press and Analysts’ Conference March 23, 2016 www.stada.co
Slide 23: Assumptions for market regions for 2016
Assumptions for market regions for 2016 Operational influence factors • Sales growth, operating profitability at Group average • Positive development of the top markets of UK, Belgium, Italy and Spain with Central Europe relatively high profitability • UK: strong dynamic at Thornton & Ross and Brita
Slide 24: Group outlook
Group outlook 2016 • Slight growth in sales adjusted for currency and portfolio effects • Slight growth in adjusted EBITDA and adjusted net income • Ratio of net debt, excluding further acquisitions, to adjusted EBITDA at a level of nearly 3 Q1/2016 Subdued development • Significant currency weaknes
Slide 25: Strategic Initiatives
Strategic Initiatives Hartmut Retzlaff
Slide 26: Strategic initiatives
Strategic initiatives Withdrawal of STADApharm from the tender business • Previously concluded contracts, some of which continue until 2017, will still be fulfilled by STADApharm • Remaining sales companies will participate in tenders for discount agreements with the aim of appropriate operating pro
Slide 27: Strengthening of the aesthetics area
Strengthening of the aesthetics area Cooperation with CROMA-PHARMA • Expansion of the business activities in the area of aesthetic dermatology with above-average growth potential • Broad product range under the premium brand Princess: hyloronic acid-based fillers, facial masks, serums and lifiting t
Slide 28: Expansion of the biosimilar portfolio
Expansion of the biosimilar portfolio Risk-limited licensing strategy – focus on marketing & sales • Since 2008: In-house development of Silapo® (Epoetin zeta) • Since 2014: Marketing of Grastofil® (Filgrastim) in cooperation with Apotex • In the EMA approval process: Reriparatid with Richter-Helm •
Slide 29: Financial Calendar 2016
Financial Calendar 2016 May 12, 2016 Publication of Q1/2016 results June 9, 2016 Annual General Meeting August 4, 2016 Publication of 2016 interim results October 2016 Capital Markets Day November 10, 2016 Publication of Q3/2016 results Press and Analysts’ Conference March 23, 2016 www.stada.com P
Slide 30: Your Contact
Your Contact STADA Arzneimittel AG Investor Relations Vice President Investor Relations 61118 Bad Vilbel, Germany Dr. Markus Metzger Telephone: +49 (0) 6101 603-113 markus.metzger@stada.de Telefax: +49 (0) 6101 603-506 E-mail: ir@stada.de www.stada.com Media Relations Director Media Relations 61118