Convatec Group Plc · LSE:CTEC
Convatec — Q1 2017 Earnings Presentation
14 slides from Convatec's earnings presentation, May 4, 2017
Slide 1: Q1 FY 2017 Trading Update
Q1 FY 2017 Trading Update 4 May 2017 0
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) is being furnished to each recipient in connection with ConvaTec Group Plc (“ConvaTec” and, together with its subsidiaries, the “Group”) and has been prepared from publicly available information. For the purposes of this notice, “Presentation” means
Slide 3: Q1 FY 2017 highlights
Q1 FY 2017 highlights • Group revenue +1.8%1 (constant currency) +1.2%2 (organic), in line with expectations and showing continuing momentum across the Group • Advanced Wound Care revenue +4.2%2, good underlying growth impacted by changes to reimbursement rates in France and timing of orders in EMEA
Slide 4: Franchise Results Overview
Franchise Results Overview Good underlying performance across all franchises Q1’ 17 Reported revenue ($’m) Organic growth1 Advanced Wound Care 133.7 +4.2% Ostomy Care 121.8 +1.1% Continence & Critical Care 85.5 (0.1)% Infusion Devices 62.1 (3.1)% Total Revenue 403.1 1.2% 1 Organic growth presents ye
Slide 5: Advanced Wound Care
Advanced Wound Care New products provide strong growth potential Reported revenue ($m) 147.6 • +4.2%1 growth driven by foam and 142.9 137.7 silver 133.7 131.3 • Impact of reimbursement rates in France and timing of EMEA orders Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 • Avelle™ global launch and rollo
Slide 6: Ostomy Care
Ostomy Care Continued progress executing our strategy Reported revenue $’m Reported revenue ($m) • +3.3%1 reflecting continued 133.0 128.7 129.3 progress along with expected US 121.1 121.8 GPO impact (c. 1ppt) • Execution and delivery: • Acceleration of hospital wins Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16
Slide 7: Continence & Critical Care
Continence & Critical Care 180 Medical drives good underlying growth Reported revenue $’m Reported revenue ($m) 92.1 • Organic revenue broadly flat1, 91.1 86.5 86.8 85.5 c.4ppt reduction from planned product rationalisation • Good underlying growth driven by Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 1
Slide 8: Infusion Devices
Infusion Devices Underlying momentum, increasing production capabilities Reported revenue $’m Reported revenue ($m) 70.3 64.8 66.8 58.4 62.1 • Revenue decline of 3.1%1 driven by anticipated customer inventory reductions Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 • Strengthened relationship with Medtron
Slide 9: Q1 FY 2017 Summary
Q1 FY 2017 Summary • Good start to the year • In line with expectations • Continuing underlying momentum across the Group • Offset by some anticipated events • MIP activities continue on track • Guidance for 2017 re-affirmed • FY 2017 revenue growth H2 weighted, as anticipated 8
Slide 10: Appendix
Appendix 9
Slide 11: Quarterly Revenue Performance
Quarterly Revenue Performance Quarterly reported revenues by franchise Organic1 growth rate by franchise 2016 2017 2016 2017 $m Q1 Q2 Q3 Q4 Q1 % Q1 Q2 Q3 Q4 Q1 AWC 131.3 137.7 142.9 147.6 133.7 AWC 8.9 7.5 4.0 6.1 4.2 Ostomy Ostomy 121.1 128.7 129.3 133.0 121.8 2.3 1.1 2.6 1.0 1.1 Care Care C&CC 86.
Slide 12: FY 2017 Guidance – published 2 March 2017
FY 2017 Guidance – published 2 March 2017 Group constant currency organic revenue growth rate greater than 4.0% • Includes a c.-1% impact from MIP initiatives (c.$15m full year effect) • Excludes EuroTec revenue contribution (2016 revenues of €10 million) Revenue growth to be weighted towards second
Slide 13: Revenues by Geography
Revenues by Geography Q1 ‘17 – reported Reported growth Organic growth1 ($m) Americas 202.4 3.6% 2.8% EMEA 170.7 (4.1)% 0% APAC 30.0 (1.0)% (2.7)% Group 403.1 (0.1)% 1.2% 1 Organic growth presents year on year growth at constant exchange rates, excluding M&A activities 12
Slide 14: FX Rates and Sensitivities
FX Rates and Sensitivities FX Rates Q1’ 17 Average Q1’ 16 Average USD/GBP 1.24 1.43 USD/EUR 1.07 1.10 Revenue Split Q1’ 17 USD 47% EUR/DKK 26% GBP 10% Other 17% 13