STADA Arzneimittel — H1 2016 Earnings Presentation
25 slides from STADA Arzneimittel's earnings presentation, Aug 4, 2016
Slide 1: H1 2016 Results
H1 2016 Results Press and Analysts’ Conference ǀ August 4, 2016
Slide 2: Agenda
Agenda I. Overview Dr. Matthias Wiedenfels, CEO II. Financial results and Outlook Helmut Kraft, CFO III. Strategy Dr. Matthias Wiedenfels, CEO IV. Q&A Executive Board Press and Analysts’ Conference · August 4, 2016 Page 2
Slide 3: Overview
Overview Dr. Matthias Wiedenfels Press and Analysts’ Conference · August 4, 2016 Page 3
Slide 4: Highlights: STADA is Well on Track
Highlights: STADA is Well on Track Business momentum used: Strong result in challenging environment. Efficiency potential systematically addressed: Lower costs, further improvement of working capital. Corporate structure optimized: New internal governance for more effective management. Clear targets
Slide 5: Outstanding Performance 6M 2016
Outstanding Performance 6M 2016 Group sales Operating cash flow • € 1,035 million (+1%, adjusted1 +4%) • € 113.0 million (+180%) Adjusted2 EBITDA Reported net income Net debt • € 202 million (+7%) up 53% • € 1,211 million Adjusted2 net income Net debt to adjusted1 EBITDA ratio • € 96 million (+13%)
Slide 6: Financial results and Outlook
Financial results and Outlook Helmut Kraft Press and Analysts’ Conference · August 4, 2016 Page 6
Slide 7: Generics: Good Margin development
Generics: Good Margin development Sales (in € million) Adj.1 EBITDA (in € million) Regional Sales Development Margin Asia/Pacific & MENA -2% 18% 21% € 41.4 million 615.3 +11% (+15%) 603.8 Central Europe CIS/Eastern Europe 6.8% € 296.3 million +16% € 112.6 million -6% (-6%) 129.2 +7% (+23%) 111.4 18.
Slide 8: Branded Products: Sound Momentum
Branded Products: Sound Momentum Sales (in € million) Adj.1 EBITDA (in € million) Regional Sales Development Margin Asia/Pacific & MENA +5% € 28.0 million 28% 27% -2% (+1%) CIS/Eastern Europe 6.9% Central Europe 407.3 -1% € 95.7 million € 182.5 million 389.3 109.7 +9% (+6%) 108.6 -21% (-5%) 23.5% 44
Slide 9: Improved Margins in 1-6/2016 Despite Negative Currency Effects
Improved Margins in 1-6/2016 Despite Negative Currency Effects 2011-2015 1-6/2015 vs. 1-6/2016 2.500 23 2.500,0 22 2.000 21.0 2.000,0 20.7 21 20.0 19.7 1.500 20 1.500,0 19 1.000,0 19.6 18.4 1.000 18.4 18 500 500,0 17 0 16 0,0 2011 2012 2013 2014 2015 1-6/2016 1-6/2015 1 Adjusted EBITDA margin in % S
Slide 10: Only Minor Adjustments
Only Minor Adjustments1 In € million 5.4 0.5 3.7 96.1 8.1 3.8 82.0 Reported net Delta additional Translation Value Measurement Various Adjusted net income write-off expense of adjustments of derivative extraordinary income effects/other significant following financial income measurement currencies o
Slide 11: Cash Flow at All-Time High
Cash Flow at All-Time High Cash Flow from Operating Activities (in € million) 1-6/2016 vs. 1-6/2015 311.7 212.7 223.8 113.0 169.0 203.7 40.4 2011 2012 2013 2014 2015 1-6/2016 1-6/2015 • Strong operating profit in 1-6/2016 • Reduced interest costs • Substantially improved tax rate • Optimized net wor
Slide 12: Financing Structure
Financing Structure Remaining terms of financial liabilities due to banks as of June 30, 2016 in € million Corporate bond Credit Promissory note loans 350.0 300.0 37.6 295.0 288.5 121.5 57.3 44.0 21.5 20.0 61.5 2016 2017 2018 2019 2020 2021 > 2021 • Net debt to adjusted1 EBITDA ratio: 3.02 (1-6/2015
Slide 13: Dividend Increase of 6%
Dividend Increase of 6% Dividend Proposal per STADA Share in € 0.66 0.70 Dividend Payout 2015: € 43.6 million (2014: € 40.0 million Dividend Policy • Appropriate share of reported net income to shareholders • Attractive dividend yield 2014 2015 • Distribution ratio above the average of comparable co
Slide 14: Ambitious Mid-Term Guidance 2019
Ambitious Mid-Term Guidance 2019 Sales (adjusted)1 €2,600m CAGR 2015 - 2019: 5% EBITDA (adjusted) 2 €510m CAGR 2015 – 2019: 7% Net Income (adjusted) 2 €250m CAGR 2015 - 2019: 11% Assumptions Driving factors • Constant exchange rates • Untapped growth potential • Organic • Reporting lines along segme
Slide 15: Strategy
Strategy Dr. Matthias Wiedenfels Press and Analysts’ Conference · August 4, 2016 Page 15
Slide 16: STADA – Clear Strategy for Continuous Growth
STADA – Clear Strategy for Continuous Growth • Long-term growth Growth opportunities Options • Sales growth above market Branded average Products (2015 Adj. • Adj. EBITDA margin FY15: 25.8% EBITDA: €220m) Generics • Low single-digit growth (2015 Adj. • Adj. EBITDA margin FY15: 19.1% EBITDA: €233m) P
Slide 17: Generics is our Bread-and-Butter Business Poised for Growth
Generics is our “Bread-and-Butter“ Business Poised for Growth Demographic Progressive generics Patent expirations Growth change penetration Press and Analysts’ Conference · August 4, 2016 Page 17
Slide 18: STADA with Excellent Cost Basis
STADA with Excellent Cost Basis Geographic Footprint of Key Production Facilities Active Production Portfolio Management Germany 75% of production volume manufactured in low-cost 75% # Facilities: 2 countries (vs. 66% in 2009) Production share: 13% 50% increase in in-house production volumes since 5
Slide 19: Strong Branded Products Platform as the Basis for Accelerated Internationalization
Strong Branded Products Platform as the Basis for Accelerated Internationalization Strong Platforms in the UK, Russia and Germany Internationalization of Leading Brands FY15 Sales/ Full Local Country Leading Local Brands Growth1 Platform • €212m (+14% vs. 2014) Apo-go (Parkinson’s) Hedrin (Head Li
Slide 20: Our Leading Brands Target the Most Attractive Indications
Our Leading Brands Target the Most Attractive Indications Skin Treatments/ Vitamins, Minerals & Cough and Cold Pain Others Cosmetics Nutritional Supplements Selected Products Aqualor® Vitaprost® Levomecol® Muscular & Joint #1 Cough & Cold #1 Sun Protection1 #1 Vitamin D3 #1 #1 Parkinson’s Pain Selec
Slide 21: Focus on Growth Options
Focus on Growth Options Selected Specialty Areas Future Innovative Concepts Product innovations in attractive niche markets Biosimilars Aesthetics Growth (Risk-averse strategy of (Expansion in aesthetic biosimilar in-licensing) dermatology) Options Value-added concepts Apo-go Daosin Socialites Innov
Slide 22: Buy-and-Build Case Study: Acquisition of Thornton & Ross (T&R)
Buy-and-Build Case Study: Acquisition of Thornton & Ross (T&R) T&R at a Glance Strong Organic Growth Transaction Details Key Highlights (in €m) Acquisition by STADA • Acquired in Aug-2013 • #5 OTC Player in UK 188 107 54 Acquired/ • Purchase price: € 226m1 • Strong OTC franchise 54 Transferred 132 S
Slide 23: Conclusion: STADA is Well-Equipped for the Future
Conclusion: STADA is Well-Equipped for the Future STADA continues positive business development with new dynamics, confirms performance target. Highly motivated management team realigns STADA, systematically addresses potential. Growth program for improving profitability picks up speed. STADA wants
Slide 24: We look forward to seeing you on STADA's AGM and the Capital Markets Day
We look forward to seeing you on STADA‘s AGM on August 26 and the Capital Markets Day on October 5, both in Frankfurt am Main. Press and Analysts’ Conference · August 4, 2016 Page 24
Slide 25: 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 Media Relations Director Media Relations 61118 Bad