Ypsomed Holding Ag · SIX:YPSN
Ypsomed — H1 2008/09 Earnings Presentation
46 slides from Ypsomed's earnings presentation, Nov 6, 2008
Slide 1: Presentation of Semi-Annual Results 2008/09
Presentation of Semi-Annual Results 2008/09 Burgdorf, 6th November 2008
Slide 2: Important Notice
Important Notice The information contained in this document has not been independently verified and no representation or warranty, express or implied, is made to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein.
Slide 3: Agenda
Agenda Presentation of Semi-Annual Results 2008/09 y Summary H1 2008/09 y Financials H1 2008/09 y Business Update and Outlook y Questions and Answers 3
Slide 4: Ypsomed Increased Sales and Profit in H1 2008/09
Ypsomed Increased Sales and Profit in H1 2008/09 y Ypsomed benefits from growth dynamics in drug self-administration, diabetes and insulin y Net Sales in the first half year reached CHF 138.2 million, +2.8% to prior year. y Profitability improved at all levels: - Gross profit increased to CHF 44.1 m
Slide 5: We Can! Promising Perspectives
Promising Perspectives y Ypsomed is active in fast growing markets with its injection systems, pen needles, blood glucose monitoring systems and diabetes direct business and is therefore very confident that it will be able to benefit to an above average degree from this growth in future. Ypsomed is
Slide 6: Key Financials H1 2008/09
Key Financials H1 2008/09 CHF million H1 2008/09 H1 2007/08 Δ in % Δ in % Punkte Sales of goods and services 138.2 134.5 2.8% Gross profit 44.1 39.6 11.2% Gross profit in % 31.9 29.5 8.2% 2.4% Operating profit 16.2 12.7 26.9% Operating profit in % 11.7 9.5 23.5% 2.2% Net profit 13.6 11.4 19.6% Net p
Slide 7: Sales by Business Line – Strong Diabetes Sales Growth
Sales by Business Line – Strong Diabetes Sales Growth CHF million H1 2008/09 H1 2007/08 Δ in % Segment «Delivery Devices» 105.8 110.2 -4.0% Segment «Diabetes Direct Business» (DDB) 32.4 24.3 33.6% Total Sales 138.2 134.5 2.8% y Delivery Devices comprises the product groups pen systems, pen needles,
Slide 8: Ypsomed Wins Important new Pharma Customers
Ypsomed Wins Important new Pharma Customers y Ypsomed signed several contracts with large pharma customers for new pen systems based on its own technology platforms. y The new pen systems are for drugs either already on the market or in the approval process. The production volumes will become signif
Slide 9: Ypsomed's Acquisition Strategy
Ypsomed‘s Acquisition Strategy Characteristics of attractive acquisitions targets y Strategic fit and market position: either synergistic to current Ypsomed business, or leading if new. y Products & Brands: strong differentiating features y Price position: premium level y Customer base: internationa
Slide 10: Ypsomed's Acquisition Strategy: Indications
Ypsomed‘s Acquisition Strategy y Ypsomed’s strategy is based on strong organic growth and selected, smart acquisitions: Indications Selfcare Self-Administration Self-Monitoring Self-injection and -infusion BGM Diabetes y Pens and Auto-Injectors y conventional y Pen-Needles y (continuous) y Pumps y (
Slide 11: Acquisitions Strengthen Ypsomed's Diabetes Business
Acquisitions Strengthen Ypsomed’s Diabetes Business y Ypsomed concluded a distribution agreement in Europe for blood glucose monitoring systems from Bionime starting spring 2009 and intends to acquire a 10% equity stake in Bionime Corp. from Taiwan. y In addition, Ypsomed is targeting to conclude th
Slide 12: Market Growth in Blood Glucose Monitoring Systems
Market Growth in Blood Glucose Monitoring Systems Sales worldwide in billion US$ 12 10 8 6 4 2 0 2000 2002 2004 2006 2008 E 2010 E 12
Slide 13: Distribution for Blood Glucose Monitoring Systems
Distribution for Blood Glucose Monitoring Systems y Ypsomed and Bionime of Taiwan signed an distribution agreement for blood glucose monitoring systems in Europe. y The market launch of the new blood glucose monitoring systems is planned for spring 2009. 13
Slide 14: Bionime Company Profile
Bionime Company Profile y Bionime was founded in 2002 and currently has about 360 employees. y The company is based in Taichung (Taiwan) and has offices in Berneck (Switzerland) and the USA as well as in China. y The product range of Bionime includes blood Fully automatic strip production glucose mo
Slide 15: Company Development - Milestones
Company Development - Milestones 2002 Bionime founded by Roy Huang 2003 Introduction of a complete branded product range 2004 Opening of new factory in Taichung, Taiwan Bionime is certified by ISO and CE 2005 Bionime passes FDA and China SFDA certification Bionime Europe with headquarter in Switzerl
Slide 16: Bionime with Strong Market Presence
Bionime with Strong Market Presence 16
Slide 17: Bionime and Ypsomed Team-Up
Bionime and Ypsomed Team-Up y Ypsomed intends to acquire a 10% equity stake in Bionime Corp. for a consideration of approx. CHF 6.5 million. y Ypsomed and Bionime will work together to enhance the sales & distribution of Ypsomed’s pen needles in Asia and Eastern European countries. y In the future,
Slide 18: Agenda
Agenda Presentation of Semi-Annual Results 2008/09 y Summary H1 2008/09 y Financials H1 2008/09 y Business Update and Outlook y Questions and Answers 18
Slide 19: Profitability Improved at all Levels – EBIT Margin of 11.7%
Profitability Improved at all Levels – EBIT Margin of 11.7% CHF million H1 2008/09 in % H1 2007/08 in % Δ in % Sales of goods and services 138.2 100.0% 134.5 100.0% 2.8% Cost of goods and services sold -94.2 -68.1% -94.9 -70.5% -0.7% Gross profit 44.1 31.9% 39.6 29.5% 11.2% Licensing revenues 0.1 0.
Slide 20: Net Income Increased by 19.6% to CHF 13.6 Million
Net Income Increased by 19.6% to CHF 13.6 Million CHF million H1 2008/09 in % H1 2007/08 in % Δ in % Operating profit 16.2 11.7% 12.7 9.5% 26.9% Financial income 1.0 0.7% 1.8 1.3% -42.9% Financial expense -1.8 -1.3% -0.8 -0.6% 119.0% Other non-operating income / (expense) 0.3 0.2% 0.2 0.2% 41.2% Pro
Slide 21: EBITDA of CHF 27 Million - Margin Improved to 19.5%
EBITDA of CHF 27 Million - Margin Improved to 19.5% CHF million H1 2008/09 in % H1 2007/08 in % Δ in % Operating profit 16.2 11.7% 12.7 9.5% 26.9% Depreciation of fixed assets 10.0 7.2% 10.8 8.1% -7.7% Amortization of intangible assets 0.8 0.6% 0.7 0.5% 11.2% EBITDA 27.0 19.5% 24.3 18.1% 11.0% 21
Slide 22: Strong Balance Sheet with High Investments in Capex
Strong Balance Sheet with High Investments in Capex CHF million 30.09.2008 in % 31.03.2008 in % 30.09.2007 in % Assets Cash and cash equivalents 15.0 2.4% 38.3 6.0% 21.7 3.5% Marketable securities 9.3 1.5% 20.0 3.1% 20.6 3.3% Trade receivables 28.3 4.5% 30.0 4.7% 37.4 6.0% Other current assets 11.6
Slide 23: Equity Ratio Improved Again to Solid 68.3%
Equity Ratio Improved Again to Solid 68.3% CHF million 30.09.2008 in % 31.03.2008 in % 30.09.2007 in % Liabilities and equity Trade payables 13.8 2.2% 16.9 2.6% 13.9 2.2% Prepayments from customers 5.2 0.8% 6.4 1.0% 1.3 0.2% Current income taxes payable 3.3 0.5% 1.9 0.3% 1.3 0.2% Other payables and
Slide 24: Positive Operating Cash Flow
Positive Operating Cash Flow CHF million H1 2008/09 H1 2007/08 Δ in % Cash flow from operating activities before changes in net working capital 27.5 24.8 10.8% Change in net working capital -5.6 3.3 -266.9% Cash flow from operating activities 21.9 28.2 -22.2% Purchases of fixed assets -20.4 -16.1 26
Slide 25: Agenda
Agenda Presentation of Semi-Annual Results 2008/09 y Summary H1 2008/09 y Financials H1 2008/09 y Business Update and Outlook y Questions and Answers 25
Slide 26: Ypsomed's Business Strategy Pays Off
Ypsomed’s Business Strategy Pays Off Drug & Device Distribution Capabilities Diabetes DiabetesCare Care Innovation Pen Needles & Patents Technology Self-Injection Devices Competence 26
Slide 27: Expand Leading Position in Injection-Systems
Expand Leading Position in Injection-Systems Innovative Self-Injection Devices: Drug & Device y Ypsomed’s Leading Technology Platform pays off: Diabetes Care - Several contracts signed with new large pharma customers -> launch expected in 2010 Pen Needles - 10 projects are in the evaluation phase Se
Slide 28: Strong Relationship with Sanofi-Aventis
Strong Relationship with Sanofi-Aventis y Sales volumes with Ypsomed’s pen systems for Sanofi-Aventis have decreased in first half year 2008/09, but orders for 2009 calendar year are slightly better than anticipated. y Ypsomed is working well and closely with Sanofi-Aventis at all levels. Not only i
Slide 29: Successful Launch of the Ypsopen in Germany
Successful Launch of the Ypsopen® in Germany 29
Slide 30: 250 Patent Families – New License Agreement
250 Patent Families – New License Agreement y Ypsomed has recently signed a new license agreement with a large pharma company for the non- exclusive use of Ypsomed intellectual property rights in respect to an existing injection device currently on the market. y Last year, Ypsomed has signed two non
Slide 31: Ypsomed Has Improved Efficiency and Reduced Costs
Ypsomed Has Improved Efficiency and Reduced Costs y Ypsomed has re-engineered and simplified manufacturing and logistics processes and thereby achieved better efficiency and reduced operating costs. y Example: new production and logistics center “Ypsomed Nord” - New centralized logistics hub for pen
Slide 32: Ypsomed Offers Attractive Perspectives
Ypsomed Offers Attractive Perspectives y As of 30 September 2008 the Ypsomed Group employed a total of 1’213 employees. y Ypsomed increased its number of apprenticeship from 19 to 37 within the last three years and offers exciting leadership, project management and technical careers. CH Outside CH 1
Slide 33: Ypsomed's Pen Needle Business is Expanding
Ypsomed’s Pen Needle Business is Expanding Differentiation with patented click-on Pen Needles: Drug & Device y Ypsomed won the 3rd largest US pharma chain as a Diabetes Care new distributor with 2’500 pharmacies nation-wide. y Receivables adjustment of CHF 1.3 million from European distributor. With
Slide 34: Growing Diabetes Business with DiaExpert & Bionime
Growing Diabetes Business with DiaExpert & Bionime Ypsomed – Your Diabetes Care Expert: Drug The acquisition of Florian Müller GmbH was well & Device y Diabetes Care integrated and has enhanced Ypsomed's market share in the diabetes direct business in Germany. Pen Needles y Total diabetes direct sal
Slide 35: Diabetes Direct Business
Diabetes Direct Business YPS@MED SELFCARE SOLUTIONS DiaExpert thr Diabet! Kompetenzfolder 35
Slide 36: Synergies and Advantages of Diabetes-Direct Business
Synergies and Advantages of Diabetes-Direct Business 100% Pen-Needles 75% Bloodglucose- measuring- Market sahre strips 50% ~46 % ~40 % 25% ~28 % ~8 % Market Share Total Market Market Share in Segment in Germany DiaExpert 36
Slide 37: Pushing Development of Continuous Injection Device
Pushing Development of Continuous Injection Device Drug Innovative Continuous Injection Device for Insulin: & Device y New therapy concepts and devices for continuous Diabetes Care insulin injection with the goal to achieve a better metabolic control at reasonable costs. Pen Needles y Leading diabet
Slide 38: New Management for Marketing & Sales
New Management for Marketing & Sales Board of Directors CEO Legal & IP R. Fritschi B. Maurer Human Resources Corporate Y. Müller Development C. Rindlisbacher Finance & IT QM & RA Operations Sales Marketing CFO COO N. Ramseier M. Mäder M. Meytre J. Paul S. Michel Internal Audit Technology Production
Slide 39: Trends & Highlights from EASD 2008 in Rome
Trends & Highlights from EASD 2008 in Rome 39
Slide 40: Trends & Highlights from EASD 2008 in Rome
Trends & Highlights from EASD 2008 in Rome The business focus was on: y Modern Insulin y GLP-1-Mimetica and DPP-4-Inhibitors y CGM (continuous glucose measurement) The scientific focus was mainly on: y Various new therapy concepts 40
Slide 41: Modern Insulin – Best Example: Lantus
Modern Insulin – Best Example: Lantus® 41
Slide 42: Outlook – Promising Prospects for Growth
Outlook – Promising Prospects for Growth y Ypsomed confirms the guidance for the 2008/09 business year: - Sales at previous year’s level - Slightly improved operating margin - Capex of approx. CHF 35 million y Sales growth in the 2009/10 business year is expected to be in the single digit range. y A
Slide 43: Corporate Social Responsibility @ Ypsomed
Corporate Social Responsibility @ Ypsomed y Ypsomed is taking into account economic, ecological and social aspects as a core leadership and management concept when it comes to making business decisions. y The first internal environment report has been concluded. y In August 2008 Ypsomed has founded
Slide 44: Important Dates
Important Dates Key reporting dates: Presentation of Annual Results 2008/09 May 26, 2009, in Solothurn Annual Shareholder Meeting: June 24, 2009 at BEA bern expo, in Berne 44
Slide 45: Agenda
Agenda Presentation of Semi-Annual Results 2008/09 y Summary H1 2008/09 y Financials H1 2008/09 y Business Update and Outlook y Questions and Answers 45
Slide 46: Questions & Answers
Questions & Answers YPS@MED Fi > Major shareholder Injection Systems Dr. h.c. Willy Michel Pen Nasdles Private individuals Institutional investors Suppliers Pitck ass Innovation & Tradition paces ions Quality Environment Social Responsibility Ns e Training and Education Corporate Culture / YES Manag