Medmix Ag · SIX:MEDX
Medmix — FY2023 Earnings Presentation
32 slides from Medmix's earnings presentation, Feb 22, 2024
Slide 1: Full-year results 2023
Full-year results 2023 Girts Cimermans, CEO Jennifer Dean, CFO February 22, 2024 Providing innovative solutions to help people live healthier and more confident lives
Slide 2: Disclaimer and important notes / Safe harbor statement
Disclaimer and important notes / Safe harbor statement under the US private securities litigation reform act 1995 This presentation contains forward-looking statements that are based on management’s current assumptions and expectations concerning future developments, including but not limited to, pr
Slide 3: Business Review
Business Review Girts Cimermans, CEO
Slide 4: Key figures 2023
Key figures 2023 Record Group revenues Healthcare Adjusted revenues EBITDA Group revenues1 177.0 93.1 486.6 +2% reported2 -4% reported -2% organic -12% year-on-year 19.1% margin Adj. operating +1% organic3 net cash flow Business Area Consumer & Industrial revenues gross profit 40.8 309.6 216.4 -1% y
Slide 5: Highlights 2023
Highlights 2023 Solid underlying business momentum restrained by transitory factors • Drug Delivery, Surgery and Beauty with strong double-digit organic growth • Dental customer destocking after post-covid recovery, ongoing through 2023 as customers optimized supply chains, taking inventories to bel
Slide 6: Group and Business Area revenues
Group and Business Area revenues Record revenues in 2023, driven by Consumer & Industrial 500 • Group revenues reached new record • Positive organic growth (+1%) 375 • Consumer & Industrial with 5-year high revenues driven by Beauty 250 • Healthcare temporarily limited by ongoing Dental customer des
Slide 7: Market segment revenues and organic growth
Market segment revenues and organic growth Healthcare Business Area (BA) Consumer & Industrial (C&I) BA Drug Dental Surgery Industry Beauty Delivery 106.2 -13% 53.6 +19% 17.2 +34% 130.9 -10% 178.6 +17% 60% of BA, 22% of Group 30% of BA, 11% of Group 10% of BA, 4% of Group 42% of BA, 27% of Group 58%
Slide 8: Dental market segment revenues
Dental market segment revenues Lower volumes continued into H2 2023 150 • Lower volumes continued, delivering -13% organic growth • Destocking now more than correction 100 of post-Covid overstocking • New capital allocation focus throughout value chain taking 50 customer inventories to new lows • Un
Slide 9: Drug Delivery market segment revenues
Drug Delivery market segment revenues Robust device revenue, D-Flex commercial launch 60 • Strong organic growth of +19% • Commercial launch of D-FlexTM injector pen, first shipments to EU 40 • PiccoJectTM with outstanding results from human factor studies • New SicuroJectTM disposable passive 20 ne
Slide 10: Surgery market segment revenues
Surgery market segment revenues Acceleration of growth trajectory 18.0 • All-time high revenues • Strong and accelerating double-digit year-on-year organic growth: 12.0 +34% FY 2023 vs. FY 2022 +42% H2 2023 vs. H2 2022 • Robust underlying market growth 6.0 • Ongoing conversion of tissue banks drivin
Slide 11: Beauty market segment revenues
Beauty market segment revenues Successful execution of value-added expansion 180 • Highest revenues in over 5 years • Innovation-led organic growth of +17% year-on-year 120 • Several major customer launches after Covid restrictions • Micro Bristle Applicator (MBA) 60 generating incremental revenues
Slide 12: Industry market segment revenues
Industry market segment revenues Revenue potential limited ahead of production ramp-up 180 • Revenues limited by production capacity and product availability, and by softening of demand towards 120 year end • All significant customers retained, and new customers gained 60 • Valencia plant inaugurate
Slide 13: Grand opening of 14,500m2 Industry plant in Valencia
Grand opening1 of 14,500m2 Industry plant in Valencia From empty shell to functioning factory in six months 1 (Grand opening ceremony with key customers and local dignitaries on November 23, 2023) 13
Slide 14: New Valencia plant now fully operational
New Valencia plant now fully operational Full product availability after just 12 months 14
Slide 15: Innovation in Healthcare
Innovation in Healthcare Focus on end users and patients Dental – ZerofloXTM Drug Delivery – SicuroJectTM • Flock-free dental adhesive micro- • Passive needle safety device for patients applicator leveraging MBA technology and healthcare professionals • Zero transfer of fibers, limiting cross- • Pre
Slide 16: Innovation in Consumer & Industrial
Innovation in Consumer & Industrial Focus on sustainability Beauty – 5 sustainable packaging Industry – 15 greenLineTM products * ** • New sustainable shadow printing process • *2024 BIG Innovation Award for 400ml 1:1 without additional foil or ink cartridge system with ~100% PCR plastic • First foo
Slide 17: Sustainability performance in 2023
Sustainability performance in 2023 Significant improvements on all three levels PLANET • 69% reduction in emissions1 vs. 2019 baseline • 10% YoY energy efficiency improvement2 PROFIT • 20 sustainable3 products launched vs. 5 LY PEOPLE • Zero cases child or forced labor identified in medmix or medmix
Slide 18: Sustainability recognition and targets in 2023
Sustainability recognition and targets in 2023 Excellent achievements, on track and ahead of schedule • 7 medmix plants received EcoVadis sustainability awards ◉ Platinum Bechhofen ◉ Gold Dnešice, Elgin & Haag ◉ Silver Hungerford & Kiel ◉ Bronze Sao Paulo • medmix accepted into UN Global Compact Com
Slide 19: Financial Review
Financial Review Jennifer Dean, CFO
Slide 20: Key performance indicators
Key performance indicators Growth in revenues and solid underlying cash generation CHF million FY 2023 FY 2022 change • Positive organic Group revenues Revenue 486.6 477.1 2.0% • Lower volumes in Dental and Industry Organic revenue growth – – 1.1% BA gross profit 216.4 218.0 -0.8% restraining BA gro
Slide 21: Healthcare BA gross profit
Healthcare BA gross profit Margin stable despite ongoing Dental destocking 120 70% • Strong double-digit growth in Drug Delivery and Surgery segments • Mix impact from lower Dental 80 65% segment revenues • Margins steady at 61% since 2021 indicating volume challenge only 40 60% • 2024 characterized
Slide 22: Consumer & Industrial BA gross profit
Consumer & Industrial BA gross profit Profitability limited ahead of Industry ramp-up 120 45% • BA gross profit increased in 2023 Gross profit +3.6% YoY Gross margin 35%, -80 bps YoY 80 40% • Impact of lower volumes, high-cost manual assembly in Industry 40 35% • Progressive efficiency improvements
Slide 23: Adjusted Group EBITDA
Adjusted Group EBITDA Margin depressed by transitory effects, partial recovery expected 2024 120 30% • Adj. EBITDA CHF 93.1m, down -12% YoY due to lower volumes and temporarily higher production costs 80 20% • Adj. EBITDA margin -300 bps due to adverse product mix 40 10% • Improvements in 2024 skewe
Slide 24: Adjusted EBITDA bridge
Adjusted EBITDA bridge Margin impacted by product mix 22.1% 19.7 (22.1) 19.1% (9.9) (9.8) 3.2 6.5 105.4 93.1 Adjusted Volume Pricing Margin Operating Acquisition Other items Adjusted EBITDA and mix expenses impact EBITDA 2022 2023 Non-operating items relating to margin/mix and operating expenses CHF
Slide 25: Adjusted EBITDA to net income
Adjusted EBITDA to net income One-time items constraining EBIT and net result 93.1 (32.4) (15.9) Industry recovery 2023 (2.1) M&A, legal (0.8) Restructuring (26.0) (18.8) 16.0 (13.0) 0.7 (2.2) Adjusted Depreciation Amortization Non-operating EBIT Financial Income tax Net income EBITDA expenses and 2
Slide 26: Net income to free cash flow
Net income to free cash flow Higher capex consuming operating cash flow (33.0) Valencia, Atlanta (19.7) Others (1.0) (2.0) 56.1 26.0 +18% (52.7) 32.4 3.4 0.7 Net income Depreciation Amortization Working cap. Interest & Operating Net capital Free cash 2023 & other net taxation cash flow expenditure f
Slide 27: Free cash flow to adjusted operating net cash flow
Free cash flow to adjusted operating net cash flow 40.8 22.9 (2.7) 7.9 17.9 4.4 3.4 5.0 Free cash Interest Other Income Other items Operating Other non- Adjusted flow 2023 paid, net financial tax, paid net cash operating op. net cash items, net flow 2023 items flow 2023 Chart figures in CHF millions
Slide 28: Adjusted operating net cash flow bridge YoY
Adjusted operating net cash flow bridge YoY Solid 9% increase in adjusted ONCF 8.5 (15.4) 40.8 37.3 11.2 (0.9) 2.7 (2.6) 29.5 Adjusted Operating Property, plant Interest Other Income Other non- Adjusted op. net cash cash flow equipment & paid, net financial tax, paid operating op. net cash flow 2022
Slide 29: Outlook
Outlook
Slide 30: Outlook
Outlook FY 2024 guidance • Organic revenue growth 4% to 6% • Adjusted EBITDA margin at least 20% Dental and Industry volumes to recover, skewed towards second half. Group adjusted EBITDA margin to benefit from improved product mix and efficiency gains. Early recovery of volumes, especially Dental, w
Slide 31: Q&A
Q&A Girts Cimermans CEO Jennifer Dean CFO
Slide 32: Your Investor Relations contact
Your Investor Relations contact James Amoroso Investor Relations, medmix Phone: +41 41 723 73 57 E-mail: investorrelations@medmix.com medmix Group AG Neuhofstrasse 20 6340 Baar Switzerland 32