STADA Arzneimittel — FY2017 Earnings Presentation
17 slides from STADA Arzneimittel's earnings presentation, Mar 8, 2018
Slide 1: Analyst Presentation: Q4 and Full-year 2017 Results
ANALYST PRESENTATION Q4 and Full-year 2017 Results Mark Keatley, CFO / March 8, 2018
Slide 2: Disclaimer and Notes
DISCLAIMER AND NOTES This STADA Arzneimittel AG (hereinafter "STADA") presentation is intended for information only. It is not intended as or provided in connection with an offer or solicitation for the purchase or sale of any security in any jurisdiction. STADA shall not have any liability arising
Slide 3: 2017 at a Glance
2017 AT A GLANCE Good business development; full-year 2017 targets achieved Strong growth in Group sales, driven by both segments Significant increase in adjusted EBITDA, with margin improvement 2017 – in Generics a year of transition and course setting Successful product development with a total of
Slide 4: Strong Product Pipeline: Successful Developments and Approval Competences
STRONG PRODUCT PIPELINE SUCCESSFUL DEVELOPMENTS AND APPROVAL COMPETENCES Product market launches in FY/2017 e.g.: Dutasterid (Italy, Portugal, Spain) Rosuvastatin (Nordics) Tadalafil (Belgium, Germany, France, Austria, Italy, Spain, Ireland) Tenofovir (Austria, Denmark, Germany, France) 670
Slide 5: Financial Overview
FINANCIAL OVERVIEW Group results €m Q4/20171 Q4/2016 Δ FY/20171 FY/2016 Δ Sales 615.9 597.5 +3% 2,313.9 2,139.2 +8% Sales (adj.)2 614.2 591.3 +4% 2,255.3 2,128.7 +6% EBITDA 43.5 72.4 -40% 363.8 361.5 +1% EBITDA (adj.)3 86.4 97.4 -11% 433.9 398.0 +9% Financial result -17.0 -12.8 +33% -44.5 -50.7 -12%
Slide 6: Generics - Robust Sales Growth and Dynamic Increase in Profitability
GENERICS - ROBUST SALES GROWTH AND DYNAMIC INCREASE IN PROFITABILITY Segment results €m Q4/2017 Q4/2016 Δ FY/2017 FY/2016 Δ Sales 367.4 349.0 +5% 1,361.7 1,280.7 +6% Sales (adj.)1 363.6 345.0 +5% 1,324.4 1,272.5 +4% EBITDA (adj.)2 82.8 71.3 +16% 302.8 264.9 +14% EBITDA margin (adj.)2 22.5% 20.4% +21
Slide 7: Generics
GENERICS FY/2017 segment sales by country Sales by country FY/2017 in €m Germany: sales development driven by a more selective tender approach and stronger focus on profitability Germany 324 297 Italy: very good sales development despite strong Italy +1% -3% competition due to positive volume and pr
Slide 8: Branded Products Strong Sales Growth
BRANDED PRODUCTS STRONG SALES GROWTH Segment results €m Q4/2017 Q4/2016 Δ FY/2017 FY/2016 Δ Sales 248.5 248.5 0% 952.2 858.5 +11% Sales (adj.)1 250.6 246.3 +2% 930.9 856.2 +9% EBITDA (adj.)2 16.0 39.5 -60% 207.4 200.7 +3% EBITDA margin (adj.)2 6.4% 15.9% > -100bps 21.8% 23.4% -160bps 1) Adjusted for
Slide 9: Branded Products
BRANDED PRODUCTS FY/2017 segment sales by country Sales by country FY/2017 in €m Russia: Dynamic sales increase mainly attributable to volume growth and a very positive currency effect Germany: Decrease in sales particularly attributable to 237 Russia the development of the Parkinson’s treatment APO
Slide 10: Cash Flow Development
CASH FLOW DEVELOPMENT €m1 Q4/2017 Q4/2016 Δ FY/2017 FY/2016 Δ Operating cash flow 51.5 135.5 -62% 262.9 333.5 -21% R&D/Intangibles 11.4 23.8 -52% 67.9 72.1 -6% Capex/Other 12.5 8.4 +49% 51.7 42.7 +21% Acquisitions - 20.7 > -100% 3.1 56.9 -95% Free cash flow 27.6 82.6 -67% 140.2 161.8 -13% (before di
Slide 11: Net Debt to Adjusted EBITDA Further Improved
NET DEBT TO ADJUSTED EBITDA FURTHER IMPROVED 4,0 3,5 3.2 3.1 3.1 3.1 3,0 2.8 2.4 2,5 2,0 2012 2013 2014 2015 2016 2017 Net debt improved by € 63.5m to € 1,054.7m (December 31, 2016: € 1,118.2m) STADA Analyst Presentation • March 8, 2018 Page 11
Slide 12: Dividend Proposal
DIVIDEND PROPOSAL Dividend per share in € STADA targets to accelerate growth and increase its ranking 0.72 position in the global pharma market in the coming years. The Executive Board and Supervisory Board propose to significantly increase investment in new products, technologies and markets, and t
Slide 13: Group Guidance 2018
GROUP GUIDANCE 2018 Target Sales adj.1 € 2.495bn +/- 5% EBITDA adj.2 € 480m +/- 5% High single-digit growth of sales and earnings expected Net income adj.2 € 230m +/- 5% 1) Adjusted for currency and portfolio effects. 2) Adjusted for special items. STADA Analyst Presentation • March 8, 2018 Page 13
Slide 14: Strategic Outlook 2019 Updated
STRATEGIC OUTLOOK 2019 UPDATED Previous New Sales adj.1 € 2.650 – 2.700bn € 2.575bn +/- 5% EBITDA adj.2 € 570 – 590m € 540m +/- 5% Net income adj.2 € 250 – 270m € 275m +/- 5% Portfolio effect: Deconsolidation of STADA Vietnam J.V. Co. Ltd. following the contract concluded in Q4/2017 for the sale o
Slide 15: Appendix
APPENDIX STADA Analyst Presentation • March 8, 2018 Page 15
Slide 16: Reconciliation FY/2017
RECONCILIATION FY/2017 in €m1 FY/2017 Impairments/ Effects from Consultancy Other3 FY/2017 reported write-ups on purchase price services in adjusted non-current assets allocations and connection with the product acquisitions2 takeover process EBITDA 363.8 - -4.2 45.0 29.2 433.9 Balance from deprecia
Slide 17: Financial Calendar / Contact
FINANCIAL CALENDAR / CONTACT Financial calendar 2018 May 3, 2018 Publication of the first three months of 2018 results June 6, 2018 Annual General Meeting 2018 August 9, 2018 Publication of the half-year 2018 results Please note that these dates could be subject to change. Contact Leslie Isabelle Il