Fagron Sa · EURONEXT:FAGR
Fagron Sa — FY2015 Earnings Presentation
18 slides from Fagron Sa's earnings presentation, Feb 5, 2016
Slide 1: Fagron 2015 Results
Fagron 2015 Results Hans Stols, CEO Jan Peeters, CFO 5 February 2016
Slide 2: Headlines 2015
Headlines 2015 Turnover increased with 5.8% to € 473.0 million, in line with revised outlook, decline of organic turnover of 1.0% REBITDA decrease of 10.0% to € 106.5 million, REBITDA margin of 22.5% Impairment of € 225.6 million related to Bellevue Pharmacy and Freedom Pharmaceuticals in the United
Slide 3: Capital increase
Capital increase Fagron announced on 31 December 2015 that it has been granted a waiver by its financiers in respect of the financial covenants on the revolving credit facility and the US private placement. This waiver is valid till the end of March 2016 Exclusive negotiations with cornerstone inves
Slide 4: Review 2015
Review 2015 Positive turnover developments in local currency in Europe, Brazil, RoW and for the sterile FSPS-activities in the United States Changes in the reimbursement system for non-sterile compounding in United States had a major impact on the non-sterile FSPS and Essentials activities in the Un
Slide 5: Operational review
Operational review
Slide 6: Consolidated turnover 2015
Consolidated turnover 2015 (x € 1,000) 2015 2014 Total growth Total growth Organic Organic CER growth growth CER Fagron 463,449 438,479 5.7% 3.9% -1.2% -2.9% HL Technology 9,547 8,577 11.3% -2.1% 11.3% -2.1% Total 472,996 447,056 5.8% 3.7% -1.0% -2.9% CER = constant exchange rates Total turnover gro
Slide 7: Turnover development in 2015
Turnover development in 2015 Excluding HL Technology (in € 1,000) 14.357 1.623 463.449 10.754 438.479 8.047 30.546 49.076 8.719 Turnover 2014 Europe South America Rest of World US - Essentials US - FSPS Currency effect Acquisitions Turnover 2015 and FSPS non- sterile sterile 6
Slide 8: Fagron Specialty Pharma Services
Fagron Specialty Pharma Services (x € 1,000) H2 2015 H2 2014 Evolution 2015 2014 Evolution Turnover 95,727 90,426 5.9% 187,894 147,780 27.1% REBITDA 15,458 27,209 -43.2% 41,110 43,343 -5.2% REBITDA-margin 16,1% 30.1% 21.9% 29.3% Turnover growth of 27.1% (organic growth of 7.0%) REBITDA-margin decrea
Slide 9: Fagron Trademarks
Fagron Trademarks (x € 1,000) H2 2015 H2 2014 Evolution 2015 2014 Evolution Turnover 24,792 22,974 7.9% 50,343 45,652 10.3% REBITDA 6,530 7,305 -10.6% 15,639 14,414 8.5% REBITDA-margin 26.3% 31.8% 31.1% 31.6% Turnover growth of 10.3% REBITDA-margin decreases to 31.1% of turnover due to weakening of
Slide 10: Fagron Essentials
Fagron Essentials (x € 1,000) H2 2015 H2 2014 Evolution 2015 2014 Evolution Turnover 104,663 120,949 -13.5% 225,212 245,047 -8.1% REBITDA 18,813 28,352 -33.6% 48,604 59,991 -19.0% REBITDA-margin 18.0% 23.4% 21.6% 24.5% Decline of turnover of 8.1% (organic decline of 9.1%) REBITDA-margin decreases to
Slide 11: Financial review
Financial review
Slide 12: Consolidated – Gross Margin
Consolidated – Gross Margin 320 Gross margin increases from € 288.2 309,5 million to € 309.5 million (+7.4%) 300 288,2 Gross margin as percentage of turnover 280 increases with 90bps to 65.4% 260 240 220 200 2014 2015 11
Slide 13: Consolidated – REBITDA
Consolidated – REBITDA 140 REBITDA decreased from € 118.5 million to € 106.5 million (-10.0%) 118,5 120 106,5 The result of a steeper increase in costs 100 than in turnover 80 Operational costs increased as a result of 60 acquisitions 40 20 0 2014 2015 12
Slide 14: Consolidated – Depreciation & Amortization
Consolidated – Depreciation & Amortization 25 Depreciation and amortization increased 23,6 from € 19.0 million to € 23.6 million (24.1%) 20 19,0 As a result of the changed reimbursement 15 for non-sterile compounding in the United States and the effect on the profitability of 10 Bellevue Pharmacy an
Slide 15: Consolidated – Net financial debt
Consolidated – Net financial debt 10.462 523.846 7.486 11.023 13 20.771 455.573 542 47.239 66.299 Net Debt increased to € 523.8 million at YE 2015 Waiver until March 2016 Exclusive negotiations for capital increase 30-6-2015 Operational Acquisitions Investments Dividend Treasury Interest FX Provisio
Slide 16: Dividend
Dividend The Board of Directors of Fagron has decided to propose to the Annual General Meeting of Shareholders not to pay out a dividend for the 2015 financial year and to focus on strengthening the balance sheet and to give priority to decreasing the debt of the company 15
Slide 17: Q&A
Q&A
Slide 18: Disclaimer
Disclaimer Important information about forward-looking statements Certain statements in this presentation may be considered “forward-looking”. Such forward-looking statements are based on current expectations, and, accordingly, entail and are influenced by various risks and uncertainties. The Compan