STADA Arzneimittel — Investor Presentation (July 2016)
36 slides from STADA Arzneimittel's investor presentation, July 2016
Slide 1: Investor Update
Investor Update Investor Relations, July 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 Statements
Forward-Looking Statements This STADA Arzneimittel AG (hereinafter "STADA") presentation 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 informa
Slide 4: Agenda
Agenda I. Moving Forward II. STADA Today III. Performance Update Appendix STADA Corporate Presentation Investor Relations · July 2016 Page 4
Slide 5: Moving Forward
Moving Forward STADA Corporate Presentation Investor Relations · July 2016 Page 5
Slide 6: Five Focus Points to Create Long-Term Value for Shareholders
Five Focus Points to Create Long-Term Value for Shareholders 1 Align Strategy with Operations 2 Optimize Operational and Reporting Structure 3 Propose Capital Allocation Strategy 4 Review Business Plan and Guidance 5 Further Improve Focus and Accountability STADA Corporate Presentation Investor Rela
Slide 7: STADA's Program to Improve Performance
STADA’s Program to Improve Performance Linked initiatives Committed Targets 2019 Overhaul Organization • Strong Gx and Branded Products Business Units Untapped • Change incentive model Growth Drive Organic Growth Sales Potential • Funds for Branded Products internationalization • Focused set-up for
Slide 8: Mid-Term Guidance 2019
Mid-Term Guidance 2019 Assumptions • Constant exchange rates • Before portfolio effects • Stable tax environment and current interest levels in STADA‘s markets • Assuming stable regulatory environment • Guidance range: +/- 5% Sales €2,600m CAGR 2015 - 2019: 5% EBITDA (adj.) €510m CAGR 2015 – 2019: 7
Slide 9: STADA Today
STADA Today STADA Corporate Presentation Investor Relations · July 2016 Page 9
Slide 10: STADA – Clear Strategy for Continuous Growth
STADA – Clear Strategy for Continuous Growth • Long-term growth • High-growth differentiated products and selected opportunities specialty areas (e.g. Apo-go, Biosimilars, Aesthetics) Growth Options • Innovative sales and marketing concepts Branded • Sales growth above • Strong platforms in UK, Russ
Slide 11: Generics is our Bread-and-Butter Business Poised for Growth
Generics is our “Bread-and-Butter“ Business Poised for Growth Expected Generics Market Growth in Selected Ageing Population Countries 2015 2030 CAGR 2015-2020 (Based on IMS Before Discounts) 65+ 65+ (8%) (12%) World 7.9% 0 to 14 0 to 14 40-64 (26%) 40-64 (24%) (27%) (28%) Germany 4.8% 15 to 39 15 to
Slide 12: Our International Generics Business is Positioned in Highly Attractive Markets
Our International Generics Business is Positioned in Highly Attractive Markets Generics Penetration Sales by Region Market Position Industry Growth3 (Based on 2015 Volumes) (Based on IMS Before Discounts) €1,218m • Leading market #3 +5% 76% positions in key Germany Western and Eastern (25%)¹ Europea
Slide 13: We Benefit from our Local Market Expertise
We Benefit from our Local Market Expertise to Compete in Heterogeneous Market Environments Type of Decision Public Health Insurer Doctor Pharmacy Patient/Out-of-Pocket Maker Key • Tender scheme with • Based on INN prescription • Patients make purchasing Description price-driven tender award • Doctor
Slide 14: We Will Excel because of our Cost Position and Efficiency Focus
We Will Excel because of our Cost Position and Efficiency Focus Geographic Footprint of Key Production Facilities Active Production Portfolio Management Germany # Facilities: 2 75% of production volume manufactured in 75% Production share: 13% low-cost countries (vs. 66% in 2009) 50% increase of in-
Slide 15: We Have Stabilized our Generics Business at a High Profitability Level
We Have Stabilized our Generics Business at a High Profitability Level Despite Headwinds Historical Sales Performance (in €m) Comments Adjusted1 CAGR: +1% • Volume development compensates Reported for price declines CAGR: +0% 1,213 1,228 1,218 1,218 • Currency effects negatively impacted growth in C
Slide 16: Branded Products Segment Delivers Profitable Growth with a Long Cash Cycle
Branded Products Segment Delivers Profitable Growth with a Long Cash Cycle Key Demand and Supply Drivers OTC Market Growth Forecasts CAGR 2015-2020 (Based on IMS) Ageing Population Urbanization World 5.2% Health Awareness Increasing Self- Russia 9.9% medication/Self-pay Regulatory Support Internet a
Slide 17: We Have Established a Strong Branded Products Platform with Leading Brands
We Have Established a Strong Branded Products Platform with Leading Brands Strong Platforms in UK, Russia and Germany Internationalization of Leading Brands FY15 Sales/ Full Local Leading Local Country Growth1 Platform Brands • €212m (+14% vs. ’14) Apo-go (Parkinson’s) Hedrin (Head Lice) Radian B
Slide 18: Our Branded Products Business is Diversified with Leadership Positions
Our Branded Products Business is Diversified with Leadership Positions in their Markets Branded Products Sales by Brand Top 30 Branded Products by Market Position Branded Products: €854m Sales in 2015 Top 30 Branded Products: €540m Sales in 20152 Apo-go (7%) Other Aqualor (5%) Position / No Market D
Slide 19: Our Strong Brands Target the Most Attractive Indications
Our Strong Brands Target the Most Attractive Indications Vitamins, Minerals & Skin Treatments/ Cough and Cold Nutritional Pain Others Cosmetics Supplements Selected Products Aqualor® Vitaprost® Levomecol® Sun Muscular & #1 Cough & Cold #1 #1 Vitamin D3 #1 #1 Parkinson’s Protection1 Joint Pain Select
Slide 20: Buy-and-Build Case Study: Acquisition of Thornton & Ross
Buy-and-Build Case Study: Acquisition of Thornton & Ross (T&R) T&R at a Glance Strong Organic Growth Transaction Details Key Highlights (in €m) Aug-13: Acqui- sition by STADA • Acquired in Aug-2013 • #5 OTC Player in UK 188 107 54 Acquired/ • Purchase price: € 226m1 • Strong OTC franchise Transferre
Slide 21: We Have Significantly Expanded our Branded Products Business
We Have Significantly Expanded our Branded Products Business over the Last Several Years Historical Sales Performance (in €m) Comments Adjusted1 CAGR: +9% • Significant sales increase driven by Reported strong organic growth of c. 9% p.a. CAGR: +13% in 2012-2015 704 801 854 596 • In addition targete
Slide 22: The Profit Contribution from our Branded Products Business Is Set to Further Increase
The Profit Contribution from our Branded Products Business Is Set to Further Increase Branded Products’ Share of Adj. Operating Earnings1 Comments Branded Products’ earnings share has increased from 36% in 2010 to 49% in 2015 driven by • Strong organic growth Generics 33% • Growth through selected b
Slide 23: Focus on Growth Options
Focus on Growth Options Future Innovative Selected Specialty Areas Concepts Product innovations in attractive niche markets Biosimilars Aesthetics Growth (Risk-averse strategy of (Expansion in aesthetic biosimilar in-licensing) dermatology) Options Value-added concepts Apo-go Daosin Socialites Innov
Slide 24: Growth Options: Product Pipeline Biosimilars
Growth Options: Product Pipeline Biosimilars Portfolio expansion • Marketing and sales are STADA’s strengths, therefore in-licensing of biosimilars rather than own • Epoetin zeta (Silapo®) – since 2008 development (STADA/Bioceuticals) • Avoidance of high R&D costs – milestone payments • Filgrastim (
Slide 25: Growth Options: Strengthening of the Aesthetics Area
Growth Options: 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, seru
Slide 26: Performance Update
Performance Update STADA Corporate Presentation Investor Relations · July 2016 Page 26
Slide 27: Group Performance – Significantly Improved Cash Flow Generation
Group Performance – Significantly Improved Cash Flow Generation Sales (in €m) Comments CAGR: +5% • Continued top-line growth with 2012-15 CAGR of 5% 1,838 2,004 2,062 2,115 • Branded Products segment as key sales growth driver 2012 2013 2014 2015 • Stable adj. EBITDA margin; reduction in 2016E 2015
Slide 28: Looking Through FX Impacts
Looking Through FX Impacts Sales Growth (Reported vs. Currency-adjusted) Comments • Continued sales growth over the last 4 years 12% • Since 2013 sales growth negatively impacted by currency effects in the amount of 3-5% per year • Negative impact of currency effects largely related to 9% CIS/Easter
Slide 29: Cost Structure Optimizations
STADA: Continuous Focus on Cost Structure to Underpin Growth • Presence in India/China established in 2013/2014 Cost Structure Optimizations Sourcing COGS • Streamlining of group-wide API sourcing • Reduced number of manufacturing locations COGS/ Operations • Optimization of production in-housing/ou
Slide 30: Appendix
Appendix STADA Corporate Presentation Investor Relations · July 2016 Page 30
Slide 31: Preliminary Agenda for the AGM on 26-Aug-2016
Preliminary Agenda for the AGM on 26-Aug-2016 1 Submission of Adopted Financial Statements and Group Financial Statements for 2015 2 Appropriation of Balance Sheet Profits 3 Approval of the Executive Board Members’ Activities for 2015 4 Approval of the Supervisory Board Members’ Activities for 2015
Slide 32: Supervisory Board Renewal
Supervisory Board Renewal Existing Supervisory Board Members Supervisory Board Candidates Dr. Martin Abend (53) Carl Ferdinand Oetker (43) Rolf Hoffmann (57) Dr. Birgit Kudlek (49) Tina Müller (47) Dr. Gunnar Riemann (58) • Member of the • Member of the • Previously • Previously COO • Chief Marketin
Slide 33: Q1-2016 Performance: Sales Increase in Generics and Branded Products
Q1-2016 Performance: Sales Increase in Generics and Branded Products Sales (in €m) Adj. EBITDA (in €m) Comments +2% Mar- 17.8% 21.4% • Both segments, Generics and Generics gin Branded Products, contributed 290 296 to Group’s y-o-y sales growth of 52 63 c. 2% in Q1-16 Q1 2015 Q1 2016 Q1 2015 Q1 2016
Slide 34: Key Historical Financials
Key Historical Financials €m 2012 2013 2014 2015 Q1-15 Q1-16 Key P&L Items Group Sales 1,838 2,004 2,062 2,115 486 497 % Growth 7.1 % 9.1 % 2.9 % 2.6 % (4.2)% 2.2 % t/o Generics 1,213 1,228 1,218 1,218 290 296 % Growth 2.1 % 1.2 % (0.8)% (0.0)% (3.2)% 2.2 % t/o Branded Products 596 704 801 854 185 1
Slide 35: We look forward to seeing you on STADA's AGM and Capital Markets Day
We look forward to seeing you on STADA‘s AGM on August 26 and the Capital Markets Day on October 5, both in Frankfurt STADA Corporate Presentation Investor Relations · July 2016 Page 35
Slide 36: 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 Fax: +49 (0) 6101 603-506 E-mail: ir@stada.de www.stada.com STADA Corporate Presentation Investor Relations · J
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