Siegfried Holding Ag · SIX:SFZN
Siegfried — FY2017 Earnings Presentation
25 slides from Siegfried's earnings presentation, Mar 14, 2018
Slide 1: Welcome to the Media & Analysts' Conference
Zurich, March 14, 2018 Siegfried Welcome to the Media & Analysts’ Conference rg Higher Sales, EBITDA EBITDA margin: target range reached and Net Profit Mid-term targets confirmed
Slide 2: Important Notice
Important Notice This document is solely for use in connection with the presentation held by Siegfried Holding AG. It is furnished to you solely for your information and you may not reproduce it or redistribute to any other person. The contents of this document are to be kept strictly confidential b
Slide 3: 1. Highlights 2. Facts & Figures 3. Strategy 4. Status & Outlook
1. Highlights 2. Facts & Figures 3. Strategy 4. Status & Outlook Media + Analysts’ Conference 2018 March 14, 2018 3
Slide 4: Higher sales and a clearly higher net profit for 2017
Higher sales and a clearly higher net profit for 2017 — Net sales of 750.5 million Swiss francs (+4.6%) — EBITDA 114.0 million francs (+17.8%) — EBITDA margin 15.2% (+1.7 percentage points) — Net profit 39.7 million francs (+42.4%) despite one time tax effect — Siegfried concluded significant agreem
Slide 5: 2. Facts & Figures
1. Highlights 2. Facts & Figures 3. Strategy 4. Status & Outlook Media + Analysts’ Conference 2018 March 14, 2018 5
Slide 6: Net sales increase despite phase-out of Enoxaparine
Net sales increase despite phase-out of Enoxaparine CHF million 2017 2016 Change Drug Substances 580.7 557.9 +4.1% Drug Products 169.8 159.8 +6.3 % Total 750.5 717.7 +4.6 % Comments — Net sales grew by +4.6% to CHF 750.5m — Drug Products recorded a growth of +6.3%, Drug Substances a growth of +4.1%
Slide 7: Significant increase in operating profits
Significant increase in operating profits In Mio. CHF 140.0 138.8 120.0 114.0 109.2 96.7 100.0 80.0 64.6 60.0 46.7 39.7 40.0 27.9 20.0 0.0 Gross profit EBITDA EBIT Net profit 2016 2017 — Significant increase of profit on all levels, gross profit down to net profit — Strong increase of net profit by
Slide 8: Margin expansion at all levels
Margin expansion at all levels In % 20.0% 18.5% 15.2% 15.2% 15.0% 13.5% 10.0% 8.6% 6.5% 5.3% 5.0% 3.9% 0.0% Gross profit margin EBITDA margin EBIT margin Net profit margin 2016 2017 — Margin expansion on all levels — EBITDA margin now in the target corridor of between 15% and 20% Media + Analysts’ C
Slide 9: Strong increase of net profit by CHF 11.8m (+42.4%) despite one time tax effect
Strong increase of net profit by CHF 11.8m (+ 42.4%) despite one time tax effect CHF million 2017 2016 Net sales 750 468 717 729 Cost of goods sold – 611 658 – 608 509 Gross profit 138 810 109 220 Marketing and sales costs – 16 228 – 16 028 Research and development costs – 25 631 – 21 193 Admin and
Slide 10: Significant improvement of operating cash flow
Significant improvement of operating cash flow CHF million 2017 2016 Operating Cashflow before changes in NWC 106 355 95 907 Change in NWC –21 933 –38 794 Operating Cashflow 84 422 57 113 Purchase of PPE and intangibles (net) – 52 840 – 68 287 Other investing activities 594 2 525 Cashflow from inves
Slide 11: Pay-out – proposal to the AGM on April 20, 2018
Pay-out – proposal to the AGM on April 20, 2018 — The Board of Directors proposes a pay-out from the capital contribution reserves of CHF 2.40 per share (2017: CHF 2.00 per share) to the AGM on April 20, 2018 (in total approx. CHF 9.9 million). — The Pay-out from capital contribution reserve is tax
Slide 12: 3. Strategy
1. Highlights 2. Facts & Figures 3. Strategy 4. Status & Outlook Media + Analysts’ Conference 2018 March 14, 2018 12
Slide 13: CDMO market continues to be very attractive
CDMO market continues to be very attractive Media + Analysts’ Conference 2018 March 14, 2018 13
Slide 14: CDMO market continues to be very attractive
CDMO market continues to be very attractive Media + Analysts’ Conference 2018 March 14, 2018 14
Slide 15: Siegfried's sales potential of new projects remains at a high level
Siegfried’s sales potential of new projects remains at a high level Year Sales potential new projects* acquired 2015 FY 2016 FY 2017 FY 0 20 40 60 80 100 120 140 160 180 200 220 = after risk adjustment *For 5 years. Excludes portfolio products. 2015 total includes Hameln 2015 projects for first time
Slide 16: Sales per Product 2016
Our product portfolio remains very balanced Net sales top 10 products 2016 Top 10 products 2016 CHF ‘000.- (CHF 191’059 = 27% of total sales) 35'000 30'000 25'000 Sales per Product 20'000 15'000 10'000 5'000 0 E CH E CP O, Z M A L C R Sales 30'049 27'339 24'111 18'906 18'051 16'243 14'869 14'092 14'
Slide 17: Sales per Product 2017
Our product portfolio remains very balanced Net sales top 10 products 2017 CHF ‘000.- Top ten products 2017 (CHF 208’925 = 28% of total sales) 35'000 30'000 Sales per Product 25'000 20'000 15'000 10'000 5'000 0 CH E R CP M A V P Ai Sales 29'365 24'505 24'240 22'478 20'733 17'556 14'684 14'531 14'289
Slide 18: Sales per customer
Product portfolio top 10 customers 2017 Patent protected vs. generics CHF ‘000.- Sales top 10 customers 2017 CHF 297'111 = 40% of total sales) 60'000 50'000 Sales per customer 40'000 30'000 20'000 Generics 10'000 0 B2 M U K HP T N P MP E Sales per Customer 53'492 42'263 38'372 26'544 24'750 24'437 2
Slide 19: Sustainability can be achieved by reducing volatility
Sustainability can be achieved by reducing volatility – alignment of business and asset strategy necessary Volatility hedged by managing two rather than only one entry point to the market. Expiry of patent protection of MEs with FDA approvals for NMEs FDA approval approx. 11 years 60 50 53 45 50 45
Slide 20: Our new production network offers unique flexibility and integration
Our new production network offers an unique combination of flexibility and integration for both, patent protected products and generics Media + Analysts’ Conference 2018 March 14, 2018 20
Slide 21: Siegfried's EVOLVE strategy for 2016–2020
Siegfried’s EVOLVE strategy for 2016–2020: Siegfried will further enhance its pure-play CDMO business model Fields of action Strengthen offerings: – Expand global solida drug product footprint – Expand overall presence with own production facilities (e.g. US) – Enhance development setup Growth Grow
Slide 22: Siegfried's expansion into biologics
Siegfried's expansion into biologics — Biological filling capacity: – Low-loss filling line specifically designed for sterile biologics in Irvine in use, necessary analytical support in place – Investment in Hameln for filling line for sterile biologics ongoing – Collaboration with Symphogen A/S (fi
Slide 23: 4. Status & Outlook
1. Highlights 2. Facts & Figures 3. Strategy 4. Status & Outlook Media + Analysts’ Conference 2018 March 14, 2018 23
Slide 24: Status & Outlook
Status & Outlook Result 2016 Result 2017 Sales CHF 717.7 million, Sales CHF 750.5 million EBITDA CHF 96.7 million EBITDA CHF 114.0 million 2018, the Siegfried Group expects : − At least mid single- single-digit sales growth (at ( constant exchange rates) − Significant increase of EBITDA margin Mid-
Slide 25: Thank you for your attention
Thank you for your attention Media + Analysts’ Conference 2018 March 14, 2018 25