Aap Implantate Ag · XETR:AAQ1
Aap Implantate — JP Morgan Healthcare Conference 2014
24 slides from Aap Implantate's conference presentation, Jan 10, 2014
Slide 1: JP Morgan Healthcare Conference 2014
JP Morgan Healthcare Conference 2014 aap Implantate AG Biense Visser, CEO Marek Hahn, CFO January 13-16, 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 Biomaterials • LOQTEQ®: Sales of €5 million (+150%) in 2013 • Strategy: Profitable growth with IP- protected products under own label • Sales: Focus on markets in Europe, U.S., BRICS and SM
Slide 4: aap´s Strategy
aap´s Strategy Core goals • Value creation for shareholders • Long term financial performance • Profitable growth • Reducing risks Products Customers • Trauma • Hospitals • IP protected like LOQTEQ® • Distributors • Biomaterials • Gels, Liquids and Bone Materials • Global Orthopaedic companies Strat
Slide 5: The Transformation Process
The Transformation Process - Strategic focus and efficiency development - Focus on 2 core businesses 2010 2011 2012 2013 Recon + + + Contract Manufacturing + + + (+) Biomaterials + + + + Trauma + + + + aap Joints GmbH (33% Joint Venture for Recon business) - Sales for first half year according to pl
Slide 6: Sales CAGR 2010 – 2013: 12%
Sales CAGR 2010 — 2013: 12% UU Sales by quarter 2010 - 2013 AO aa a2/a3 a4 a1 a2 03 a4 ai a2 a3 a4 2010 2011 2012 a1 a2 03/04 2013
Slide 7: EBITDA CAGR 2010 – 2013: 27%
UU EBITDA CAGR 2010 — 2013: 27% EBITDA by quarter 2010 - 2013 a1 02/03 a4 2012 a1) a2 a3 a4 2013 500 HH aa a2) a3 a4 a a2 a3 a4 2010 2011
Slide 8: 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 7.0 Cash-EBT1 -2.1 -1.2 2.1 3.2 R&D costs ratio 14% 12% 8% 8% Freshness-Index* 13% 13% 15% >20% • 1 Cash-EBT: EBT excluding capitalized develop
Slide 9: The Transformation Process - Value creation development
The Transformation Process - Value creation development - Shares* 2013 2012 Change Total amount of shares in millions 30.7 30.7 0% Share price (closing) (€) 2.15 1.34 60% Market Capitalisation (€ million) 65.9 41.1 60% Share price (average) (€) 1.45 1.02 43% Share price (high) 52 weeks (€) 2.22 1.45
Slide 10: 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: >€15 m
Slide 11: 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 11
Slide 12: 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 13: 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 14: Upper Extremities - Plates 2013
Upper Extremities - Plates 2013 2013 LOQTEQ®-portfolio will cover approx. 80% of the most common indications 14 14
Slide 15: Lower Extremities - Plates 2013
Lower Extremities - Plates 2013 2013 LOQTEQ®-portfolio will cover approx. 80% of the most common indications 15 15
Slide 16: 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): €22.0 million Forecast Sales 2014 (Products and Projects): >€22.5 million 16
Slide 17: Global Partnerships
Global Partnerships Global Ortho League 2004 2013 17
Slide 18: Contract Manufacturing
Contract Manufacturing Osnatal® Gels, Liquids and Bone Material C-Plug® C~ment® Artosal® Sales driver Supercritical carbon dioxide technology Sales 2013: €7 million Forecast Sales 2014: €7 million 18
Slide 19: Sales Distribution 2013 vs. 2012
Sales Distribution 2013 vs. 2012 +18% +1% +3% +11% €K Share in total sales Total sales 2012: €36.4 million 19 Total sales 2013: €40 million
Slide 20: Outlook 2014
Outlook 2014 • Management Agenda 2014: Customer Growing Trauma sales to EUR >15 million (>50%); 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 21: Outlook 2014
Outlook 2014 • Management Agenda 2014: Financials Profitable growth: sales of EUR 44 million (+10%) and EBITDA between EUR 6 million and EUR 8 million Working capital ratio to sales > 2.4 Strengthening the balance sheet by ongoing reduction of the percentage of intangible assets as of the balance sh
Slide 22: 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/ 22
Slide 23: Stockholder Structure
Stockholder Structure Capital Stock: 30,670,056 December 2013, new investor reached 3% threshold: Taaleritehdas ArvoRein Equity Fund, Finnland 23 * According to own calculation
Slide 24: 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: 24
aap Implantate — JP Morgan Healthcare Conference 2014 on 6ix