Aap Implantate Ag · XETR:AAQ1
Aap Implantate — Non-Deal Roadshow (March 2014)
28 slides from Aap Implantate's roadshow presentation, Mar 6, 2014
Slide 1: Roadshow London 2014
Roadshow London 2014 aap Implantate AG Biense Visser, CEO Marek Hahn, CFO March 6-7, 2014
Slide 2: Safe Harbor Statement
Safe Harbor Statement Our publication may include predictions, estimates or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual
Slide 3: aap Overview
aap Overview • German based international MedTech company Sales 2013e: €40 million (+10%) • Focus on Trauma and PMMA cement business • LOQTEQ®: Sales of €5 million (+150%) in 2013 • EBITDA 2013e approx. €7.2 million (+18%) • Strategy: Profitable growth with IP-protected products under own label • Sa
Slide 4: NEWS: EMCM sold for €18 million
NEWS: EMCM sold for €18 million - Contract Manufacturing Business sold to Private Equity company - Purchase prize: €18 million in cash - Sales of EMCM in 2013: €12 million - Transaction will impact EBIT for 2013: - Balance Sheet: Goodwill and Intangible Assets will decrease by approx. €20 million, p
Slide 5: aap´s Strategy: Fit for the Future
aap´s Strategy: Fit for the Future Core goals • Value creation for shareholders • Long term financial performance • Profitable growth • Reducing risks Products Customers • Trauma • IP protected like LOQTEQ® • Hospitals • Biomaterials • Distributors • Silver-coating Technology (Pipeline) • Global Ort
Slide 6: In 2013 we delivered financially and strategically while setting stage for further profitable growth
In 2013 we delivered financially and strategically while setting stage for further profitable growth • Generated attractive revenue and EBITDA growth • Strong commercial growth of LOQTEQ® in core markets • Advanced our development pipeline for LOQTEQ®, Silver- coating and Magnesium Traumaimplants 6
Slide 7: Significant Strategic Progress in 2013
Significant Strategic Progress in 2013 • Spun off Recon activities into aap Joints GmbH, a joint venture with a Chinese partner • Announced the divestment of the contract manufacturing activities, closed in Q1/2014 • Risk profile reduced because of strong improvement of balance sheet: more cash and
Slide 8: Sales CAGR 2010 – 2013: 12%
UU a1 a2 03/04 2013 Sales CAGR 2010 — 2013: 12% Sales by quarter 2010 - 2013 a1 a2 03 a4 2012 | ai a2 03 a4 2010 ai a2 03 a4 2011
Slide 9: EBITDA CAGR 2010 – 2013: 28%
UU EBITDA CAGR 2010 — 2013: 28% EBITDA by quarter 2010 - 2013 ahah Qi 2/03 a4 Qi a2) 03 a4 a1/a2 03/04 2010 2011 2012 ai a2 a3 a4 2013
Slide 10: The Transformation Process
The Transformation Process - Strategic focussing ongoing - Focus on core business 2008 2009 2010 2011 2012 2013 2014 Dental + Analytics + Medical Aesthetics + Recon + + + + + Contract Manufacturing + + + + + + Biomaterials + + + + + + + Trauma + + + + + + + 10
Slide 11: The Transformation Process - Development of financial figures
The Transformation Process* - Development of financial figures - Profit & Loss in € million 2010 2011 2012 2013e Sales 28.4 29.2 36.4 40.0 EBITDA 3.4 4.1 6.1 7.2 Cash-EBT1 (normalized) -2.1 -1.2 2.1 3.5 R&D costs ratio 14% 12% 8% 8% Freshness-Index* 13% 13% 15% >20% • 1 Cash-EBT normalized: EBT excl
Slide 12: The Transformation Process - Value creation development
The Transformation Process - Value creation development - Shares* 28.02.2014 2012 Change Total amount of shares in millions 30.7 30.7 0% Share price (closing) (€) 2.94 1.34 119% Market Capitalisation (€ million) 90.0 41.1 119% Share price (average) (€) 2.53 1.02 148% Share price (high) 52 weeks (€)
Slide 13: Trauma Products
Trauma Products LOQTEQ® Anatomical plating system Autodynamic Plating System Cannulated Screws LOQTEQ® Small & Large fragments Plates, Screws, LOQTEQ® AcroPlate© Radius Set 2.5 Standard Osteosynthesis LOQTEQ® Humerus Sales (incl. LOQTEQ®) 2013: €10 million Forecast Sales (incl. LOQTEQ®) 2014: >€16 m
Slide 14: Locking-Compression Technology
Locking-Compression Technology • Higher Stability: Combination of two fixation principles » Tapered connection » Thread in circumferential holding structure Thread Radial fixation Cone Axial fixation 14
Slide 15: LOQTEQ® Benefits
LOQTEQ® Benefits Health benefits – Surgeon: With 1 screw in 1 hole, 1 step-locking and compression – Patient: Affordable price, no cold welding, less infection risk, only 1 operation – Hospital: Economic benefits (cost efficient) Innovation Growth – 2014: New patented technology – Shipments: Into 20
Slide 16: LOQTEQ® Value Proposition
LOQTEQ® Value Proposition - of the $6.1 billion market, growing 6% per annum - Innovative Technology Customer Benefits – LOQTEQ®-technology (1 hole, 1 – Cost advantages step-locking and compression) – Broad portfolio will cover 80% of – Based on propriety aap Trauma plating indications intellectual
Slide 17: Upper Extremities - Plates 2013
Upper Extremities - Plates 2013 2013 LOQTEQ®-portfolio will cover approx. 80% of the most common indications 17 17
Slide 18: Lower Extremities - Plates 2013
Lower Extremities - Plates 2013 2013 LOQTEQ®-portfolio will cover approx. 80% of the most common indications 18 18
Slide 19: Why we are confident in our growth outlook for LOQTEQ®
Why we are confident in our growth outlook for LOQTEQ® • After launch in Q4/2011 – Sales in more than 30 countries in 2014 • Further expansion of portfolio (anatomical regions) 2014: >90% indication coverage • Introduction into new markets as a consequence of anticipated regulatory approval like B
Slide 20: Biomaterials
Biomaterials BonOs® R BonOs® Inject VerteStable® Bone Cements, Mix- and Application systems Jason ®/ Jason® G Cerabone®/ PE- Arthosal® EASYMIX® Restriktor Sales driver PMMA-Bone Cements Sales 2013 (Products and Projects): €23.0 million; w/o EMCM: €17.5 million Forecast Sales 2014 (Products and Proje
Slide 21: Global Partnerships
Global Partnerships Global Ortho League 2004 2013 21
Slide 22: Sales Distribution 2013 vs. 2012
Sales Distribution 2013 vs. 2012 +18% +1% +11% +3% €K Total LOQTEQ® sales 2013: €5.04 million 22 Total sales 2013: €40 million
Slide 23: Outlook 2014
Outlook 2014 • Management Agenda 2014: Customer Growing Trauma sales to EUR >16 million (>60%); driven by LOQTEQ® Expanding the LOQTEQ® portfolio; striving for >90% indication coverage Appointing a distributor in the USA and further expansion of distribution network beyond BRICS- and SMIT-countries
Slide 24: Outlook 2014
Outlook 2014 • Management Agenda 2014: Financials Profitable growth: Forecast to be published by the end of March Working capital ratio to sales > 2.4 Strengthening the balance sheet by ongoing reduction of the percentage of intangible assets as of the balance sheet total DCR < 3 and ICR > 8 Organis
Slide 25: Share Development (2Y) compared to “Peers”
Share Development (2Y) compared to “Peers” Legend: aap Implantate AG / Exactech / Orthofix / Wright Medical / Tornier Source: http://finance.yahoo.com/ 25
Slide 26: Stockholder Structure
Stockholder Structure Capital Stock: 30,670,056 December 2013, new investor reached 3% threshold: Taaleritehdas ArvoRein Equity Fund, Finnland 26 * According to own calculation
Slide 27: Notes
Notes 27
Slide 28: Contact
Contact aap Implantate AG Lorenzweg 5 12099 Berlin Marc Heydrich Investor Relations Tel.: +49 30 750 19 – 134 Fax: +49 30 750 19 – 290 E-Mail: ir@aap.de Website: www.aap.de IR-app: 28