Skan Group Ag · SIX:SKAN
Skan — FY2022 Earnings Presentation
29 slides from Skan's earnings presentation, Mar 28, 2023
Slide 1: SKAN Group AG Presentation of the 2022 Financial Results
SKAN Group AG Presentation of the 2022 Financial Results 28 March 2023
Slide 2: Disclaimer
SKAN Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. Th
Slide 3: Agenda
SKAN Agenda 1. Overview of Business Year Thomas Huber (CEO) 2. 3. 4. 5. 6. 28 March 2023 SKAN Group AG Presentation of the 2022 Financial Results 3
Slide 4: Successful first business year as listed company – financial targets well achieved
Successful first business year as listed company – financial SKAN targets well achieved Order intake, net sales and EBITDA reach new record levels; net sales growth Order Intake Net Sales in CHF million in CHF million and EBITDA well reached the communicated financial targets This was achieved despi
Slide 5: Good operational progress and further investments in capacity expansion
SKAN Good operational progress and further investments in capacity expansion Organization was able to manage again a double-digit organic growth. Delays in supply chain countered by reorganizing production processes, building up inventories and ordering key components earlier. Due to price inflation
Slide 6: Strong and growing global footprint
SKAN Strong and growing global footprint Allschwil CH Gembloux BE Headquarters / production sites Production site / AT • Engineering, sales, • Aseptic Filling service, assembly, equipment (Closed R&D, laboratories Vial® Technology) • Approx. 26,682 m 2 • Approx. 3,590 m 2 • 658 employees • 38 employ
Slide 7: New members of the Executive Management team
SKAN New members of the Executive Management team Maria Cuevas Otero (1976, Spanish) Marina Häni (1992, Swiss) Ralf Krämer (1966, German) Group Chief Service Officer since 1 February 2023 Group Chief People and Culture Officer since 1 August 2022 Group Chief Technology Officer since 1 April 2022 Edu
Slide 8: Agenda
SKAN Agenda 1. 2. Strategy execution Thomas Huber (CEO) 3. 4. 5. 6. 28 March 2023 SKAN Group AG Presentation of the 2022 Financial Results 8
Slide 9: Group's growth strategy
SKAN Group’s growth strategy SKAN Objectives: Continue growth track-record Increase recurring revenue base Expand profitability 1 2 Expand addressable market 3 Increase exposure to after- 4 Accelerate digital Fortify market leadership towards integrated process market services & transformation syste
Slide 10: Strategy execution in 2022
SKAN Strategy execution in 2022 Objectives: Continue growth track-record Increase recurring revenue base Expand profitability 1 2 Expand addressable market 3 Increase exposure to after- 4 Accelerate digital Fortify market leadership towards integrated process market services & transformation systems
Slide 11: Agenda
SKAN Agenda 1. 2. 3. Financial Results 2022 Burim Maraj (CFO) 4. 5. 6. 28 March 2023 SKAN Group AG Presentation of the 2022 Financial Results 11
Slide 12: Sustained order intake momentum
SKAN Sustained order intake momentum Order intake Order intake by regions Comments (CHFm) (CHFm and as of % of total order intake) Order intake grew by +46.9% y-o-y to a 1.2x 1.5x new record Sustained order intake momentum with (0.1%) 0.3 24.8 (6.0%) Y-o-Y solid book-to-bill ratio, reflecting strong
Slide 13: Above market growth and high top-line visibility
SKAN Above market growth and high top-line visibility Net sales Order backlog Comments (CHFm) (CHFm) Net sales grew by +18.2% y-o-y on the ~1.3x higher net sales in upper end of our guidance Y-o-Y 2nd half of the year +18.2% Adjusted at constant exchange rate (CER), growth amounted to around 19% 360
Slide 14: Outstanding performance and profitability in 2nd HY
Outstanding performance and profitability in 2nd HY SKAN Expenses EBITDA Comments (CHFm and in % of net sales) (CHFm and margin in %) EBITDA margin of 14.5% at the upper +132 +165 13.1% 14.5% 8.8% 18.9% end of guidance In addition, we invested around 7% in Y-o-Y development and expensed directly 234
Slide 15: Segment Equipment & Solutions (E&S)
SKAN Segment Equipment & Solutions (E&S) Order intake Net sales EBITDA Comments (CHFm) (CHFm and as of % of total net sales) (CHFm and margin in %) Order intake growth in E&S 332.7 11.1% primarily driven by both, high- 204.5 73.4% 75.0% 9.4% speed and small volume systems (each +57.6% y-o-y) Y-o-Y Y
Slide 16: Segment Services & Consumables (S&C)
SKAN Segment Services & Consumables (S&C) Order intake Net sales EBITDA Comments (CHFm) (CHFm and as of % of total net sales) (CHFm and margin in %) Order intake grew at a slightly 27.3 24.8% slower rate, partly due to 21.6 24.8% 25.0% 23.5% delayed commissioning of the systems at customers. Y-o-Y Y
Slide 17: Strong operating cash generation and attractive ROCE despite significant growth capex
SKAN Strong operating cash generation and attractive ROCE despite significant growth capex Cash flow and conversion rate (1) Return on capital employed (2) Comments (CHFm and cash conversion in %) (CHFm and in %) High operating cash flow compared to 2021 mainly impacted by the significant increase i
Slide 18: Continued strong balance sheet & finance structure
SKAN Continued strong balance sheet & finance structure Balance sheet as of 31 Dec 2022 Comments (CHFm) High liquidity and only limited financial debt lead to a net cash position of CHF 94.1 as of 31. Dec 2022. Cash 388.4 388.4 position is needed to finance our strategic investments and keep the fle
Slide 19: Dividend proposal for the AGM 2023
SKAN Dividend proposal for the AGM 2023 Profit for the period and cash distribution Comments (CHFm) Proposed dividend of CHF 0.25/share (2021: 0.24/share) 50% from capital contribution reserves ("KER") 50% from retained earnings Distribution of CHF 5.6m Payout ratio of 30% of 2022 profit attributabl
Slide 20: 2022 — At a glance
2022 — At a glance SKAN +46.9% >4.0x 1 Consistent above-market growth SKAN order intake (1) higher than the global isolator market Growth (y-o-y) (based on y-o-y order intake growth) Top-line visibility supported by record order intake and order 1.5x CHF 360.1m 2 backlog book-to-bill ratio order bac
Slide 21: Agenda
SKAN Agenda 1. 2. 3. 4. Sustainability Thomas Huber (CEO) 5. 6. 28 March 2023 SKAN Group AG Presentation of the 2022 Financial Results 21
Slide 22: Commitment to Sustainability according to our credo
SKAN Commitment to Sustainability according to our credo “prevention rather than compensation” Environmental Social SKAN Sustainability Report 2022 UN SDG(2) GRI indicators (3) SKAN Technology: SKAN Technology: R&D spend Isolators use 10-20x less energy Isolators safely facilitate the Customer healt
Slide 23: Agenda
SKAN Agenda 1. 2. 3. 4. 5. Outlook Thomas Huber (CEO) 6. 28 March 2023 SKAN Group AG Presentation of the 2022 Financial Results 23
Slide 24: Century of biology: Shift toward injectable biotech drugs drives need for aseptic process solutions
SKAN Century of biology: Shift toward injectable biotech drugs drives need for aseptic process solutions Top 10 medicines 2005 Top 10 medicines 2020 Eylea Humira Lipitor Zoloft Regeneron, Bayer AbbVie Pfizer Pfizer Keytruda Stelara Merck & Co. Johnson & Johnson Nexium Plavix Astra Zeneca Sanofi Revl
Slide 25: Market and business outlook
SKAN Market and business outlook General market development Market growth expected to remain high in the coming years. Fundamental growth of the (bio)pharmaceutical industry, trend towards injectable drugs, reshoring and shift to superior isolator technology as main drivers. Demand for equipment, se
Slide 26: Guidance
SKAN Guidance Metric 2023 Targets (1) Mid-Term Outlook Group net sales growth Mid- to upper teens Mid- to upper teens Segment net sales growth(2) E&S S&C E&S S&C Gradually increase profitability level to upper EBITDA margin 13 - 15% teens in the mid-term. Potential for further increase beyond mid-te
Slide 27: Questions and discussions
SKAN Agenda 1. 2. 3. 4. 5. 6. Questions and discussions 28 March 2023 SKAN Group AG Presentation of the 2022 Financial Results 27
Slide 28: Together always one step ahead!
SKAN Together always one step ahead! 28
Slide 29: Abbreviations and Definitions
SKAN Abbreviations and Definitions Alternative Financial Performance Measures (APM) EBITDA: Operating result (EBIT) plus depreciation, amortisation. Net working capital (NWC): Total current assets (excluding cash and cash equivalents) minus trade payables, advance payments from EBITDA margin: EBITDA