STADA Arzneimittel — Investor Presentation (May 2016)
52 slides from STADA Arzneimittel's investor presentation, May 2016
Slide 1: Corporate Presentation
STADA Corporate Presentation Investor Relations, May 2016
Slide 2: General information
General information By making use of this document the reader acknowledges and agrees to the following: We accept no liability arising from the use of this document. STADA Arzneimittel AG, Bad Vilbel (hereinafter “STADA”), has made every effort to make sure that this document contains correct and up
Slide 3: Forward-looking statements
Forward-looking statements This STADA Arzneimittel AG presentation (hereinafter "STADA") contains certain statements regarding future events that are based on the current expectations, estimates and forecasts on the part of the company management of STADA as well as other currently available informa
Slide 4: History
History 1895 Founded in Dresden as a pharmacists' cooperative 1970 Stock corporation with restricted registered common shares for pharmacists only 1975 Market entry in the young generics market 1986 Beginning of internationalization 1998 Start of trading on the stock exchange 2001 Inclusion in MDAX
Slide 5: Strategy and Outlook
Pharmaceuticals y Strategy and Outlook
Slide 6: Strategy for continuous growth and constant value creation
Strategy for continous growth and constant value creation Consumer focus: • Aspiring higher share of branded products in adjusted operating profit of core segments (2015: 49%) based on both organic growth and expansion of branded products acquisitions Expansion of generics • Focus on markets with hi
Slide 7: Sales split 2015
Sales split 2015 Sales of core segments 41% 59% Branded Products Generics (OTC and RX Specialty Pharmaceuticals) (RX and OTC) Adjusted EBITDA margin: 25.8% Adjusted EBITDA margin: 19.1% Investor Relations Page 7 Company Presentation May 2016
Slide 8: Strategic and financial plan
Strategic and financial plan Generics Generics 33% Generics 51% 64% value creation Brands Brands 67% Brands 49% 36% value creation 2010 2015 2018 + Share of the adjusted operating earnings of the two core segments Brands with sustainable earnings contribution • Self-pay market: No government interve
Slide 9: Product pipeline branded products
Product pipeline branded products Center of OTC-Excellence for branded products • Objective: long-term pipeline and portfolio development in the areas of OTC, dermatology and bone health • Multidisciplinary team: market research, consumer marketing, OTC branding, R&D, production and business develop
Slide 10: Product pipeline biosimilars
Product pipeline biosimilars Portfolio expansion • Marketing and sales are STADA’s strengths, therefore in-licensing of • Epoetin zeta (Silapo®) – since 2008 biosimilars rather than own development (STADA/Bioceuticals) • Avoidance of high R&D costs – milestone • Filgrastim (Grastofil®) – since 2014
Slide 11: Product pipeline generics
Product pipeline generics Full pipeline • Introduction of 578 individual products worldwide in 2015 (626 in 2014) • 213 new products in 1-3/2016 (157 in 1-3/2015) • Over 1,300 ongoing approval procedures for more than 150 active ingredients in over 55 countries worldwide • Development partnerships i
Slide 12: Assumptions for market regions for 2016
Assumptions for market regions for 2016 Operational influence factors Central Europe • Sales growth, operating profitability at Group average • Positive development in the top markets of UK, Belgium, Italy and Spain with relatively high profitability • Generics with improved profitability through a
Slide 13: Outlook for the Group
Outlook for the Group 2016 • Slight growth in Group sales adjusted for currency and portfolio effects • Slight growth in adjusted EBITDA and adjusted net income • Ratio of net debt, excluding further acquisitions, to adjusted EBITDA at a level of nearly 3 Investor Relations Page 13 Company Presentat
Slide 14: Market Regions
y Market Regions
Slide 15: Sales 1-3/2016
Sales 1-3/2016 By market region Total group € 497.1 million +2% (+4%) Asia/Pacific & MENA € 36.3 million +6% (+8%) 7.3% CIS/Eastern Europe Central Europe € 75.9 million € 240.0 million -15% (+2%) 15.2% +2% (+1%) 48.3% 29.2% Germany € 145.0 million +14% (+13%) (x) = Adjusted for changes in the Group
Slide 16: Market region Central Europe
Market region Central Europe Generics sales Branded Product sales Most important countries (in € million) (in € million) (sales in € million) Total sales 1-3/2016: € 240.0 million (+2%, adjusted1) +1%) Generics 0% Branded products +7% 38.6 149.9 149.6 33.4 26.9 26.9 82.8 18.8 77.7 10.2 3.1 5.3 2.9 0
Slide 17: Market region Germany
Market region Germany Generics sales Branded Product sales Strategic initiatives (in € million) (in € million) Total sales 1-3/2016: € 145.0 million (+14%, adjusted1) +13%) +4% +30% • Transfer of the 78.6 82.0 German discount 63.0 business to ALUID 48.6 • Strengthening of the aesthetics area 1-3/201
Slide 18: Market region CIS/Eastern Europe
Market region CIS/Eastern Europe Generics sales Branded Product sales Most important countries (in € million) (in € million) (sales in € million) Total 1-3/2016: € 75.9 million (-15%, adjusted1) +2%) Generics Branded Products +3% -31% 42.1 43.4 46.7 20.2 32.1 18.0 9.0 4.3 2.6 1.5 2.2 2.8 1-3/2015 1-
Slide 19: Development in Russia
Development in Russia Generics sales Branded Product sales Measures in the currently difficult market environment (in € million) (in € million) Total 1-3/2016: € 38.3 million (-14%, adjusted1) +4%) +41% -40% • Balanced portfolio • Launch of new products as scheduled • Selective price increases 30.2
Slide 20: Market region Asia/Pacific & MENA
Market region Asia/Pacific & MENA Generics sales Branded Product sales Development Vietnam (in € million) (in € million) (in million EUR in CER2)) Total 1-3/2016: € 36.3 million (+6%, adjusted1) +8%) 5.000 5.000 +10% -2% 4.000 4.000 3.000 3.000 19.1 21.1 2.000 2.000 12.1 11.8 1.000 1.000 0 1-3/2015
Slide 21: Branded Products
y Branded Products
Slide 22: STADA branded products
STADA branded products Investor Relations Page 22 Company Presentation May 2016
Slide 23: Wide range of product categories
Wide range of product categories Cough and Cold Skin Treatments / Vitamins, Minerals & Pain Others Cosmetics Nutritional Supplements (Aqualor®) (Levomecol®) (Vitaprost®) Investor Relations Page 23 Company Presentation May 2016
Slide 24: Top 10 brands in 1-3/2016
Top 10 brands in 1-3/2016 No. Brand Growth in % Sales in € million Indication 1. Grippostad® (OTC) +24 16.4 Cough and cold 2. Ladival® (OTC) +12 14.6 Sun protection ® 3. APO-go (RX) -4 12.9 Parkinson’s 4. Hoggar® (OTC) +32 5.2 Stress relief, sleeping tablets 5. Covonia® (OTC) -18 4.7 Cough and cold
Slide 25: Branded Products 1-3/2016
Branded Products 1-3/2016 Sales Adj. EBITDA Regional sales development (in € million) (in € million) Asia/Pacific & MENA +3% € 11.8 million -2% (0%) -14% 6.2% Central Europe 185.1 189.8 CIS/Eastern Europe € 32.1 million € 82.8 million -31% (-16%) 16.9% +7% (0%) 43.7% 55.9 48.2 Germany 33.2% € 63.0 m
Slide 26: Internationalization of Branded Products
Internationalization of Branded Products Brand Expansion/number of countries Indication APO-go® 31 Parkinson’s Cetraben® 7 Skin eczema/dry skin Chondroxid® 13 Joint diseases Grippostad® 29 Cough and cold Hexicon® 14 Antiseptic Kamistad® 32 Mouth care Ladival® 24 Sun protection Levomecol® 14 Connecti
Slide 27: Strategic focus on OTC
Strategic focus on OTC 20111) 20151) OTC corporation Sales in € million OTC corporation Sales in € million 1 Bayer 1.257 1 Bayer 1.224 2 Novartis 1.125 2 Novartis 1.193 3 Sanofi 1.087 3 Sanofi 1.120 4 Johnson & Johnson 966 4 Johnson & Johnson 945 5 GlaxoSmithKline 780 5 GlaxoSmithKline 734 6 TEVA 53
Slide 28: Strong sales growth in the branded products area in 2015
Strong sales growth in the branded products area1) in 2015 Branded product sales: +7% (adj. +9%) € 212.2 million € 168.0 million € 122.6 million € 40.2 million € 30.5 million € 26.9 million € 22.7 million € 21.1 Italy million Russia UK Vietnam -12.6% Germany +30.9% USA +42.1% +25.4% -1.1% +43.0% Pol
Slide 29: Brand acquisitions
Brand acquisitions Acquisitions 2014 - 2016 • CLAIRE FISHER (cosmetics) • Aqualor® (cough and cold) • Flexitol® (dermatological hand and foot care) • Fultium® (vitamin D3 deficiency) • AndroDoz® and NeroDoz® (men's health) • Rydex® Immun-Power* (nutritional supplement) • DAOSIN® (enzymatic food into
Slide 30: Generics
y Generics
Slide 31: Leading position in key markets
STADA Leading position in key markets Agility, flexibility and long- Belgium: #1 Eurogenerics standing expertise to manage heterogenous Serbia: #1 Hemofarm markets and complex portfolios is our plus – Nizhpharm, MAKIZ supported by a competitive Russia: #21) cost basis and the highest Germany: #3 ALI
Slide 32: Generics 1-3/2016
Generics 1-3/2016 Sales Adj. EBITDA Regional Sales Development (in € million) (in € million) +2% Asia/Pacific & MENA € 21.1 million +10% (+12%) 289.8 296.1 CIS/Eastern Europe 7.1% € 43.4 million Central Europe +23% +3% (+21%) € 149.6 million 14.7% 0% (0%) 63.4 50.5% 51.6 Germany 27.7% € 82.0 million
Slide 33: Environment analysis
Environment analysis Growth markets health care & pharma Growth opportunities for generics • Global population growth • Biosimiliars with high sales potential • Ageing society in industrialized countries • Continuous patent expirations • Medical progress • Progressive generics penetration • Internat
Slide 34: Finance
y Finance
Slide 35: Growth components 1-3/2016
Growth components 1-3/2016 Group sales: € 497.1 million (+2.3%) +4.5% +1.2% -3.4% 497.1 486.2 1-3/2015 Organic1) Portfolio Currency 1-3/2016 1) Adjusted for changes in the Group portfolio and currency effects. Investor Relations Page 35 Company Presentation May 2016
Slide 36: Key earnings figures 1-3/2016
Key earnings figures 1-3/2016 EBITDA (in € million) 1-3/2016 vs. 1-3/2015 Net income (in € million) 1-3/2016 vs. 1-3/2015 reported adjusted1) reported adjusted1) -1% +7% 92.6 92.1 85.2 +6% 79.2 +40% 37.9 40.1 29.6 21.2 1-3/2015 1-3/2016 1-3/2015 1-3/2016 1-3/2015 1-3/2016 1-3/2015 1-3/2016 1) Adjust
Slide 37: Net income adjustments in 1-3/2016
Net income adjustments in 1-3/20161) in € million 0.4 0.2 40.1 5.8 29.6 4.1 Delta additional Translation Value Measurement of Reported net write-off expense of adjustments derivative Adjusted net income effects/other significant following financial income measurement currencies of impairment tests i
Slide 38: Development of sales and margins
Development of sales and margins 2011-2015 1-3/2015 vs. 1-3/2016 2.500,0 2.500 23 2.000,0 22 2.000 21.0 20.7 21 20.0 1.500,0 1.500 19.7 20 1.000 18.4 19 1.000,0 18 18.5 19.1 500 500,0 17 0 16 0,0 2011 2012 2013 2014 2015 1-3/2016 1-3/2015 Adjusted1) EBITDA margin in % Sales in € million • Improved g
Slide 39: Cost optimization is key
Cost optimization is key • STADA is one of the biggest buyers of APIs. We take advantage of our buying power and have opened offices in Mumbai and Shanghai. Sourcing / Supply chain • Substantial savings achieved in recent years through optimized sourcing and increased internal production volume • Pr
Slide 40: Tax efficiency
Tax efficiency Development of the adjusted tax rate Outlook adjusted tax rate 25.2% 23.8% ≤ 25% 1-3/2015 1-3/2016 2016e Significant reduction in the tax rate in 1-3/2016: • In 1-3/2016, the adjusted tax rate decreased to 23.8% (previous year: 25.2%), which was primarily a result of a changed profit
Slide 41: Balance sheet structure
Balance sheet structure Assets in € million March 31, 2016 Dec. 31, 2015 A. Non-current assets 2,004.8 2,032.3 B. Current assets 1,278.9 1,255.1 Total assets 3,283.7 3,287.4 Equity and liabilities in € million March 31, 2016 Dec. 31, 2015 A. Shareholders’ equity 1,014.1 1,018.5 B. Non-current liabil
Slide 42: Financing structure
Financing structure Remaining terms of financial liabilities due to banks as of March 31, 2016 in € million Corporate bond Credit Promissory note loans 122.5 350.0 300.0 295.0 188.0 54.1 44.0 21.9 20.0 2016 2017 2018 2019 > 2019 • Net debt to adjusted EBITDA ratio1): 3.32) (1-3/2015: 3.62)) • Cash a
Slide 43: Cash flow at all-time high
Cash flow at all-time high Cash flow from operating activities (in € million) 2011-2015 1-3/2016 vs. 1-3/2015 311.7 223.8 212.7 203.7 169.0 47.2 46.8 2011 2012 2013 2014 2015 1-3/2016 1-3/2015 Adjusted free cash flow1) (in € million) 2011-2015 1-3/2016 vs. 1-3/2015 212.4 123.3 149.6 133.3 157.4 20.0
Slide 44: Net working capital significantly improved
Net working capital significantly improved Net working capital in relation to sales in % Outlook 50% 38 39 40% 37 35 32 31 30% 28 20% 10% 0% 2010 2011 2012 2013 2014 2015 Medium-term • Program for the optimization of the net working capital: Medium-term target 28% • In absolute terms this represents
Slide 45: Disciplined capital allocation
Disciplined capital allocation Total expenses 2012-2015 € million 1-3/2016 vs. 1-3/2015 in € million 482.4 317.3 Company 274.0 333.3 190.0 acquisitions 55.1 229.7 56.8 Product acquisitions 77.4 147.5 32.3 42.8 41.7 13.5 12.6 21.4 Other 2.6 71.7 74.1 100.9 investments 71.4 27.6 20.3 2012 2013 2014 20
Slide 46: Dividend proposal
Dividend proposal Dividend per STADA share in € 0.66 0.70 2015: € 43.6 million Dividend payout (2014: € 40.0 million Dividend policy • Appropriate share of reported net income to shareholders 2014 2015 • Attractive dividend yield • Distribution ratio above the average of comparable Pay-out ratio com
Slide 47: Notes
Notes
Slide 48: P&L details 1-3/2016
P&L details 1-3/2016 in € million 1-3/2016 1-3/2016 1-3/2015 1-3/2015 in € in % of in € in % of million sales million sales Improved despite burdens from the Gross profit 241.5 48.6 233.4 48.0 CIS crisis; significantly improved procurement and production costs Selling expenses 117.0 23.5 110.3 22.7
Slide 49: Concentration of the production processes
Concentration of the production processes Share in production Share in production volume 2009 Own production locations volume 2015 Market region Germany 13% 34% Bad Vilbel (Germany) Pfaffenhofen (Germany) 12% Market region Central Europe Huddersfield1) (UK) Market region CIS/Eastern Europe Vrsac (Se
Slide 50: Share capital and shareholder structure
Share capital and shareholder structure March 31, 2016 STADA shares1)2) 62,342,440 Number of treasury shares 85.920 Shareholder structure as of Dec. 31, 2015 • 100% free float • Approx. 68% institutional investors • Current notices with regard to the exceeding of the legal reporting threshold of > 3
Slide 51: Responsibility and sustainability
Responsibility and sustainability Code of Conduct Market and products Society • STADA mission statement: care for people’s • Strengthening of employee well-being through fitness health and well-being. and health care • Generics contribute to efficient and affordable • High share of women in manageme
Slide 52: Your contact
Your contact STADA Arzneimittel AG Investor Relations Vice President Investor Relations 61118 Bad Vilbel, Germany Dr. Markus Metzger Telephone: +49 (0) 6101 603-113 markus.metzger@stada.de Fax: +49 (0) 6101 603-506 E-mail: ir@stada.de www.stada.com Investor Relations Page 52 Company Presentation M
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