Skan Group Ag · SIX:SKAN
Skan — FY2023 Earnings Presentation
27 slides from Skan's earnings presentation, Mar 26, 2024
Slide 1: Presentation of the 2023 Financial Results
SKAN Group AG Presentation of the 2023 Financial Results 26 March 2024
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. 26 March 2024 SKAN Group AG Presentation of the 2023 Financial Results 3
Slide 4: Highlights of the financial year 2023
SKAN Highlights of the financial year 2023 Order Intake Net Sales Stabilisation of order intake at a healthy level after an exceptionally in CHF million in CHF million strong previous year. 295.1 320.0 Order backlog and book-to-bill ratio at 0.9 offer planning security for -28.3%(1) +15.5%(1) more t
Slide 5: Both segments progressing well
SKAN Both segments progressing well Equipment & Solutions Incoming orders were evenly split between isolators for high-speed applications and systems for smaller production volumes inlcuding quality control applications. The segment made progress as planned with the strategic initiatives in the area
Slide 6: Agenda
SKAN Agenda 1. 2. Strategy execution Thomas Huber (CEO) 3. 4. 5. 26 March 2024 SKAN Group AG Presentation of the 2023 Financial Results 6
Slide 7: 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 8: Strategy execution in 2023
SKAN Strategy execution in 2023 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 9: Customer proximity strengthened through accelerated decentralisation
SKAN Customer proximity strengthened through accelerated decentralisation 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. 3,59
Slide 10: New drugs increase consumption of AT-Closed Vial
New drugs increase consumption of AT-Closed Vial® SKAN Seven AT filled drugs on the market: Customer Product area Phase Besides the expansion of the installed equipment base, which requires maintenance, requalification and spare DELYTACT®: Oncolytic virotherapy for brain parts, the volume in the Ser
Slide 11: Agenda
SKAN Agenda 1. 2. 3. Financial Results 2023 Burim Maraj (CFO) 4. 5. 26 March 2024 SKAN Group AG Presentation of the 2023 Financial Results 11
Slide 12: Order intake momentum has stabilised at a healthy level
SKAN Order intake momentum has stabilised at a healthy level Order intake Order intake by regions Comments (CHFm and ∆ in %) (CHFm and ∆ in %) 1.0x 1.2x 1.5x 0.9x Stabilisation of order intake at a healthy level after an exceptionally strong CAGR -12.4% previous year, in line with our +13.6% expecta
Slide 13: Robust growth in net sales and comfortable order backlog
SKAN Robust growth in net sales and comfortable order backlog Net sales Order backlog Comments (CHFm and ∆ in %) (CHFm and ∆ in %) Net sales grew by +15.5% y-o-y +15.5% -13.3% ~30% stronger net sales 360.1 At constant exchange rates (CER), in 2nd half of the year 320.0 growth reached around 19.2%, p
Slide 14: Strong margin improvement through product mix and higher in-house production
SKAN Strong margin improvement through product mix and higher degree of in-house production Expenses EBITDA Comments (CHFm) (CHFm and margin in %) EBITDA increased by 24.9% to CHF 50.1m, resulting in an EBITDA margin of 15.7%, +165 +216 14.5% 15.7% ~70% stronger EBITDA surpassing the projected targe
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 Group net sales) (CHFm and margin in %) 332.7 289.9 75.0% 74.1% 11.1% 11.3% Stabilised order intake and a reduced backlog post a record year positively impact -36.6% +14.2% +16.7% delivery tim
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 Group net sales) (CHFm and margin in %) 27.3 22.3 25.0% 25.9% 24.8% 28.1% Order intake grew +9.0% to reach CHF 81.8m in the reporting year. +9.0% +19.6% +35.8% At constant exchange rates 81.8
Slide 17: Cash flow driven by stabilised order intake & growth investments, but ROCE improved
SKAN Cash flow driven by stabilised order intake & significant growth investments, but ROCE improved by increased EBIT Cash flow Return on capital employed (1) Comments (CHFm) (CHFm and in %) Operating CF of CHF 8.7m was 19.7% significantly lower compared to the 15.8% previous year, which is primari
Slide 18: Strong balance sheet & finance structure
SKAN Strong balance sheet & finance structure Balance sheet as of 31 Dec. Comments (CHFm) -3.8% -3.8% SKAN Group posts a net cash position 388.4 388.4 of CHF 78.6m as of 31st December 2023 373.4 373.4 and is thus very well positioned to finance future growth. The change in non-current financial debt
Slide 19: 40% higher dividend proposal vs. previous year
SKAN 40% higher dividend proposal vs. previous year Profit for the period and cash distribution Comments (CHFm) Proposed dividend of CHF 0.35/share (2022: 0.25/share) 27.9 50% from capital contribution 26.3 reserves ("KER") 1.6 50% from retained earnings Distribution of CHF 7.9m (PY: CHF 5.6m) Payou
Slide 20: 2023 — At a glance
2023 — At a glance SKAN CHF 320.0m +19.2% 1 Consistent above-market growth net sales growth y-o-y net sales at constant exchange rates (CER) 0.9x CHF 312.1m 2 Top-line visibility supported by high order intake and order backlog book-to-bill ratio order backlog (based on order intake 2023) as of 31 D
Slide 21: Agenda
SKAN Agenda 1. 2. 3. 4. Outlook Thomas Huber (CEO) 5. 26 March 2024 SKAN Group AG Presentation of the 2023 Financial Results 21
Slide 22: 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 0% of top 10 drugs 50% of top 10 drugs 70% of top 10 drugs 2005 injectable dosage form 2020 injectable dosage form 2023 injectable dosage form Eylea Comirnaty Lipitor Zoloft Humira Humira Regener
Slide 23: Market and business outlook
SKAN Market and business outlook General market development Demand momentum in our market is expected to continue at a high level. Main drivers are: The underlying growth of the global (bio)pharmaceutical market; The reinforcing trend towards injectable drugs (three quarters of the drugs in developm
Slide 24: Guidance unchanged
SKAN Guidance unchanged Metric 2024 Targets (1) Mid-Term Outlook Group net sales growth Mid- to upper teens Mid- to upper teens (2) Segment net sales growth 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 be
Slide 25: Questions and discussions
SKAN Agenda 1. 2. 3. 4. 5. Questions and discussions 26 March 2024 SKAN Group AG Presentation of the 2023 Financial Results 26
Slide 26: Together always one step ahead!
Together always one step ahead!
Slide 27: 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