Coloplast A/s Class B · OMXCOP:COLO_B
Coloplast A/s Class B — Investor Day (2016)
12 slides from Coloplast A/s Class B's investor day presentation, 2016
Slide 1: Financial Outlook
Financial Outlook Coloplast Capital Markets Day 2016 Anders Lonning-Skovgaard, CFO
Slide 2: Our ambitious long-term guidance reflects strong organic growth and profitability expansion
Our ambitious long-term guidance reflects strong organic growth and profitability expansion Revenue growth EBIT margin annual organic annual improvement 7–9% 50–100 bps Page 2
Slide 3: Organic growth is primarily driven by market share gains and value upgrades
Organic growth is primarily driven by market share gains and value upgrades Revenue growth drivers/limiters + Market growth of 4-5% + Market share gains across all business areas and regions Revenue growth + New product launches + Price optimisation efforts annual organic + Value upgrades 7–9% ÷ Cur
Slide 4: The EBIT margin improvement is a function of scalability and continued cost discipline
The EBIT margin improvement is a function of scalability and continued cost discipline EBIT margin development For illustrative purposes only 2 3 +0.5-1.0% p.a. 1 32.6% 14/15 Gross margin Operating costs Investments Long-term Page 4
Slide 5: Gross margin uplift to be driven by scalability and efficiency improvements
1 Gross margin Gross margin uplift to be driven by scalability and efficiency improvements Gross margin development, in % of revenue Gross margin drivers/limiters + Relocation of production to Hungary including reduction +3.9 of ~300 production FTEs in Denmark + Scalability in central functions and
Slide 6: We will continue to drive unparalleled efficiency in our cost functions
2 Operating costs We will continue to drive unparalleled efficiency in our cost functions and ... Cost item Development, in % of revenue Comments -0.9 • Scale effects in logistics, sales, and marketing 29.4 28.8 28.5 28.3 28.5 28-29 reinvested in growth initiatives Distribution -1.6 5.9 • Scalable b
Slide 7: Invest up to DKK 2bn in solid investment cases to lift growth momentum
3 Investments … invest up to DKK 2bn in solid investment cases in order to lift our growth momentum Key types of investment cases Strong framework for investment A rigorous investment process in cases in place … place … Sales Force Expansion 1. Background/strategic rationale New investment framewo
Slide 8: We have provisioned DKK 4.5bn for the US Mesh litigation
We have provisioned DKK 4.5bn for the US Mesh litigation and continue to make good settlement progress P&L Balance Cash flow Assets Actual/Expected cash flow, DKKbn FY FY Restricted cash, DKKm 13/14 14/15 634 556 563 EBIT (before special items) 4,147 4,535 Special items 1,000 3,000 418 EBIT 3,147 1,
Slide 9: We will continue to deliver strong and attractive free cash flows
We will continue to deliver strong and attractive free cash flows … Taxation Net working capital CAPEX Reported tax rate Operating working capital in % revenue Depreciation in % of revenue CAPEX in % of revenue CAPEX DKKm 23.9% 24.1% ~24% 4.2% 4-5% 23.1% 3.5% 27.8%* 2.3% 2.5% 25.9% 22.2% 22.5% 583 ~
Slide 10: Attractive cash returns despite large investments in commercial and expansion activities
… and attractive cash returns despite large investments in commercial and expansion activities Coloplast cash distribution to investors Dividends (DKKm) Share buy-back (DKKm) Pay-out ratio (%)* 100 82 We will 78 77 80 continue to return 32 38 excess cash 2,605 2,820 3,035 to shareholders 1,341 1,085
Slide 11: In sum, Coloplast offers...
In sum, Coloplast offers... ...continued value creation ...stable cash returns ...attractive risk profile Page 11
Slide 12: Our mission, values and vision
Our mission Making life easier for peoplé with intimate healthcare needs Our values Closeness... to better understand. - Passion... to make a difference Respect and responsibility... to 0 guide | US: Our vision Setting the global standard for listening and responding: Coloplast A/S - Ostomy Care / C