Coloplast A/s Class B · OMXCOP:COLO_B
Coloplast A/s Class B — FY2005/06 Earnings Presentation
19 slides from Coloplast A/s Class B's earnings presentation, November 2006
Slide 1: Coloplast A/S Investor Presentation 2005/06
Coloplast A/S Investor Presentation 2005/06
Slide 2: Highlights 2005/06
2 Highlights 2005/06 • Coloplast generated revenue of DKK 7,227m in its continuing business, equal to a 15% growth measured in local currencies. • The acquisition of Mentor’s urology business was concluded in June 2006 and contributed revenue of DKK 440m in 2005/06 • Organic revenue growth was 8% me
Slide 3: Income statement 2005/06
3 Income statement 2005/06 DKKm 2005/06 2004/05 Index Net revenue 7,227 6,232 116 Gross profit 4,343 3,789 115 - Gross profit margin 60% 61% EBITDA 1,392 1,348 103 - EBITDA margin 19% 22% Net operating profit (EBIT) 955 1,000 96 - Profit margin 13% 16% Profit before tax 726 837 87 Tax -213 -272 78 D
Slide 4: Impact from acquisition of urology business
4 Impact from acquisition of urology business DKKm 2005/06 2006/07 2007/08 Integration costs 70 130 30 US relocation costs 60 30 0 Stock of finished goods 100 0 0 Depreciation of assets 50 150 150 Total impact from acquisition 280 310 180 • Synergies in 2005/06 were insignificant • In 2006/07, expec
Slide 5: Revenue development 2005/06 - business areas
5 Revenue development 2005/06 - business areas Growth Growth Revenue Market Growth in local currencies 2005/06 2004/05 2005/06 growth Ostomy Care 7% 9% 2,867 1-3% Urology & Continence Care 39% - 2,265 7% - Excl. urology business 14% 11% 1,835 - Wound & Skin Care 6% 12% 1,223 6-7% Breast Care 5% 6% 5
Slide 6: Revenue development 2005/06 - geography
6 Revenue development 2005/06 - geography Growth Organic Growth Revenue Growth in local currencies 2005/06 2005/06 2004/05 2005/06 Europe 11% 7% 7% 5,835 The Americas 50% 12% 13% 916 Rest of World 16% 12% 12% 476 Group net revenue 15% 8% 8% 7,227 • The divestment of Sterling 7% Medical Services affe
Slide 7: Exchange rate development 2001-2006
Exchange rate development 2001-2006 2001/02 2002/03 2003/04 2004/05 2005/06 115 113 111 rate of exchange average 2001/02 109 107 105 rate of exchange average 2005/06 103 101 99 rate of exchange average 2002/03 97 rate of exchange rate of exchange average 2003/04 average 2004/05 95
Slide 8: Balance sheet, cash flows and key ratios 2005/06
8 Balance sheet, cash flows and key ratios 2005/06 DKKm 2005/06 2004/05 Invested capital 7,996 5,386 Net interest bearing debt 3,069 867 Equity, ultimo 2,804 2,512 Investments in tangible assets 415 399 Free cash flow, reported -2,027 919 - Free cash flow, organic business 604 919 - Free cash flow,
Slide 9: Expectations and long-term targets
9 Expectations and long-term targets 2006/07 • Sales growth of around 22% in local currencies of which around 9%-points will be organic growth • EBITDA margin of 18-19% and profit margin (EBIT) of 12-13% • Investments in tangible assets of DKK 700m • Corporate tax rate of 30% • Net costs of integrat
Slide 10: Strategy 2012 - update
10 Strategy 2012 - update Revenue growth levers • Faster market roll-out of new products • Investing in new geographical markets • Up-scaling investments in research and development • Investing in new technology and product areas • Establishing specialised sales forces Margin expansion drivers • Glo
Slide 11: Ostomy Care
11 Ostomy Care 2005/06 2004/05 Q4 05/06 Q4 04/05 Revenue (DKKm) 2,867 2,657 754 711 Growth in local currencies 7% 9% 6% - • Revenue growth affected by situation in HSC - excluding sales from HSC, sales growth was approximately 12% • US revenue growth exceeded 20% • International launch of SenSura in
Slide 12: Urology & Continence Care
12 Urology & Continence Care 2005/06 2004/05 Q4 05/06 Q4 04/05 Revenue (DKKm) 2,265 1,615 779 434 - Organic 1,835 1,615 463 434 - Acquired 430 0 316 0 Growth in local currencies 39% 11% 75% - - Organic 14% 11% 6% - - Acquired 25% 0% 69% - • Continued high organic growth - Catheters still growing wit
Slide 13: Urology & Continence Care - integration
13 Urology & Continence Care - integration Strategic rationale reconfirmed • Enlarging the scope of our continence care business into urology • A solid position in the US urology market • Strengthening of our European market position Status on key integration activities • Establish a new headquarter
Slide 14: Wound & Skin Care
14 Wound & Skin Care 2005/06 2004/05 Q4 05/06 Q4 04/05 Revenue (DKKm) 1,223 1,137 316 308 Growth in local currencies 6% 12% 3% - • Revenue performance expected to return to double-digit growth in 2006/07 • Successful launch of Biatain - Ibu • Declining revenue performance primarily related to moist
Slide 15: Breast Care
15 Breast Care 2005/06 2004/05 Q4 05/06 Q4 04/05 Revenue (DKKm) 508 474 131 124 Growth in local currencies 5% 6% 7% - • Sales growth according to expectations, driven by new products • Growth in sales of all main product areas, i.e. breast forms, partials, and textiles • Revaluation of the DKK 1 bil
Slide 16: Global Operations
16 Global Operations • Coloplast aims at achieving world-class manufacturing within the next three years • New factories located in China and Hungary • Production facilities in Denmark will be consolidated from six to three sites Number of employees in production 2006-2012 4.000 3.500 3.000 2.500 2.
Slide 17: Summary
17 Summary • Full year 2005/06 earnings results in line with expectations • Strong underlying business performance • Revenue growth affected by situation in HSC and sale of wound care products • Earnings in 2005/06 and 2006/07 affected by acquisition of urology business and restructuring • Integrati
Slide 18: Analysts' estimates 2005/06
18 Analysts’ estimates 2005/06 Net EBITii DKKm revenue EBITi margini PBTi High 7,374 998 13.8% 764 Mean 7,282 937 12.9% 731 Low 7,232 895 12.3% 689 Coloplast actual 7,227 955 13.2% 726 Index to mean 99 102 103 99 Based on estimates collected from 11 financial analysts
Slide 19: MMS
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