STADA Arzneimittel — H1 2017 Earnings Presentation
21 slides from STADA Arzneimittel's earnings presentation, Aug 3, 2017
Slide 1: Corporate Presentation Analyst Call Q2/H1 2017
CORPORATE PRESENTATION Analyst Call Q2/H1 2017 August 3, 2017
Slide 2: Update on Renewed Takeover Offer
UPDATE ON RENEWED TAKEOVER OFFER STADA’s Executive and Supervisory Board recommend acceptance of the renewed takeover offer by Bain Capital and Cinven Financially attractive offer – Financial consideration of Euro 66.25 per share – consisting of Euro 65.53 offer price plus a dividend of Euro 0.72;
Slide 3: Current Shareholder Structure
CURRENT SHAREHOLDER STRUCTURE ~24% Tender process currently underway and supported by ~76% Numerous PR activities/mailings Two experienced proxy solicitors ~13% Index and quantitative investors Institutional investors thereof ~ 13% index and quantitative investors Retail investors Source: Orient
Slide 4: Efficiency Gains Already Becoming Visible
EFFICIENCY GAINS ALREADY BECOMING VISIBLE o Portfolio optimization: • ~ 1,000 SKU’s identified in the first project • further pruning candidates to be observed o Internationalization • 7 products launched in H1 • further launches planned in the next quarters (e.g. Hedrin, Probiotics, Fultium-D3) • a
Slide 5: Q2/2017: Good Operating Performance
Q2/2017: GOOD OPERATING PERFORMANCE Group Sales & Earnings Cash flow o Increase in all adjusted sales and o Growth of gross cash flow earnings figures o Decrease in cash flow due to higher increase in inventories Generics Leverage o Double-digit earnings growth and significant o Net debt slightly de
Slide 6: Generics Key Highlights
GENERICS KEY HIGHLIGHTS Dynamic sales development in Belgium resulting from volume effects due to the early termination of the sales contract with Omega Generics business Reorganization of STADApharm and cell pharm in Germany completed end of June strong and healthy! Key product launches in Q2/2017:
Slide 7: Branded Products Key Highlights
BRANDED PRODUCTS KEY HIGHLIGHTS Strong sales in Russia mainly due to volume effects Ongoing internationalization of brands incl. Histasolv (Poland), MobiflexCaD3 (Belgium) and GlucoCare (Poland) Internationalization of branded products well on track! Reorganization of STADA GmbH and STADAvita in Ger
Slide 8: Financial Overview
FINANCIAL OVERVIEW Group results €m Q2/2017 Q2/2016 Δ H1/2017 H1/2016 Δ Sales 576.9 537.5 +7% 1,143.2 1,034.7 +10% Sales (adj.)1 557.9 535.7 +4% 1,096.4 1,032.4 +6% EBITDA 112.4 115.5 -3% 220.9 200.7 +10% EBITDA (adj.)2 129.2 110.2 +17% 237.7 202.3 +18% Financial result -9.6 -12.4 -23% -19.2 -25.0 -
Slide 9: Generics Strong Increase in Earnings and Margins
GENERICS STRONG INCREASE IN EARNINGS AND MARGINS Segment results €m Q2/2017 Q2/2016 Δ H1/2017 H1/201 Δ 6 Sales 348.5 319.9 +9% 674.4 627.2 +8% Sales (adj.)1 336.6 318.1 +6% 648.3 624.9 +4% EBITDA (adj.)2 81.3 66.0 +23% 150.7 129.6 +16% EBITDA margin (adj.)2 23.3% 20.6% +270bps 22.3% 20.7% +160bps 1)
Slide 10: Generics: Q2 Segment Sales by Country
GENERICS Q2 segment sales Sales by country Q2/2017 in €m Germany: sales stable despite a more selective tender approach and stronger focus on profitability Germany 84 75 Italy: strong growth due to positive volume and price effects, Italy +4% +1% product launches and decreasing sales discount Spain
Slide 11: Branded Products Good Growth in Sales and Earnings
BRANDED PRODUCTS GOOD GROWTH IN SALES AND EARNINGS Segment results €m Q2/2017 Q2/2016 Δ H1/2017 H1/2016 Δ Sales 228.4 217.5 +5% 468.8 407.3 +15% Sales (adj.)1 221.3 217.5 +2% 448.1 407.3 +10% EBITDA (adj.)2 64.4 60.4 +7% 121.4 108.6 +12% EBITDA margin (adj.)2 28.2% 27.8% +40bps 25.9% 26.7% -80bps 1)
Slide 12: Branded Products: Q2 Segment Sales by Country
BRANDED PRODUCTS Q2 segment sales Sales by country Q2/2017 in €m Russia: Increase due to positive volume and translation effects 29 -26% Germany UK: Decrease mainly due to negative currency 76 Russia effects +14% Branded UK Germany: decrease mainly due to high comps 56 and reduction of seasonal annu
Slide 13: Cash Flow Development
CASH FLOW DEVELOPMENT €m Q2/2017 Q2/2016 Δ H1/2017 H1/2016 Δ Operating cash flow 29.2 65.9 -56% 89.5 113.0 -21% Capex (maintenance and other minor -26.5 -43.5 -39% -46.7 -70.5 -34% investments net of disposals) Free cash flow (adj.)1 2.7 22.4 -88% 42.8 42.5 +1% (before dividends) Acquisitions net of
Slide 14: Net Debt to Adjusted EBITDA Further Improved
NET DEBT TO ADJUSTED EBITDA FURTHER IMPROVED 4,0 3,5 3.2 3.2 3.1 3.1 3,0 2.8 2017 TARGET Below 3* 2.5 2,5 2.3 2,0 2012 2013 2014 2015 2016 Q1 2017 H1 2017 Net debt improved by 7.3 €m to 1,110.9 €m (December 31, 2016: 1,118.2 €m) 1) Before acquisitions and possible takeover. STADA Corporate Presentat
Slide 15: Group Guidance 2017 Confirmed
GROUP GUIDANCE 2017 CONFIRMED Target Sales adj.1 € 2,280 – 2,350m EBITDA adj.2 € 430 – 450m STADA well on track to meet full-year guidance! Net income adj.2 € 195 – 205m 1) Adjusted for currency and portfolio effects. 2) Adjusted for special items. STADA Corporate Presentation • August 3, 2017
Slide 16: Appendix
APPENDIX STADA Corporate Presentation • August 3, 2017 Page 16
Slide 17: Financing Structure
FINANCING STRUCTURE Remaining terms of financial liabilities as of June 30, 2017 Figures given in €m; nominal values 350.0 300.0 295.0 288.5 Corporate Bond 20.0 Promissory note loans 48.0 71.2 61.5 Credit 2017 2018 2019 2020 2021 > 2021 Net debt to adjusted1 EBITDA: 2.3 (1-6/2016: 3.0)2) Cash an
Slide 18: Reconciliation Q2/2017
RECONCILIATION Q2/2017 Consultancy Effects from services in Impairments / purchase price Reversal of connection in € million1 Q2/2017 reported write-ups on fixed allocations and tax Q2/2017 adjusted with the assets product provisions takeover acquisitions2 process EBITDA 112.4 - -0.2 17.1 - 129.2 Ba
Slide 19: Reconciliation H1/2017
RECONCILIATION H1/2017 Consultancy Effects from services in Impairments / purchase price Reversal of connection in € million1 H1/2017 reported write-ups on fixed allocations and tax H1/2017 adjusted with the assets product provisions takeover acquisitions2 process EBITDA 220.9 - -0.3 17.1 - 237.7 Ba
Slide 20: Financial Calendar / Contact
FINANCIAL CALENDAR / CONTACT Financial Calender 2017 August 30, 2017 Annual General Meeting 2017 November 9, 2017 Publication of the first nine months of 2017 results Please note that these dates could be subject to change. Contact Leslie Isabelle Iltgen Vice President Investor Relations | Corporate
Slide 21: Disclaimer and Notes
DISCLAIMER AND NOTES This STADA Arzneimittel AG (hereinafter "STADA") presentation is intended for information only. It is not intended as or provided in connection with an offer or solicitation for the purchase or sale of any security in any jurisdiction. STADA shall not have any liability arising