Aap Implantate Ag · XETR:AAQ1
Aap Implantate — 5. Small Cap Forum/Frühjahrskonferenz 2014
24 slides from Aap Implantate's conference presentation, May 7, 2014
Slide 1: 5. Small Cap Forum/Frühjahrskonferenz
5. Small Cap Forum/Frühjahrskonferenz Frankfurt/Main, May 7, 2014 aap Implantate AG Bruke Seyoum Alemu, designated CEO Marek Hahn, CFO
Slide 2: Safe Harbor Statement
Safe Harbor Statement Our publication may include predictions, estimates or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual
Slide 3: aap Overview
aap Overview • German based international MedTech Sales 2013: €40 million (+10%) company • Focus on Trauma and PMMA cement business • LOQTEQ®: Sales of €5 million (+150%) in 2013 • Strategy: Profitable growth with IP-protected products under own label • Sales: Focus on markets in Europe, U.S., BRICS
Slide 4: aap's Centers of Excellence
aap‘s Centers of Excellence Innovations in Trauma and Biomaterials Center of Excellence in Trauma, Berlin Center of Excellence in Biomaterials, Dieburg • Products and Services • Products and Services: – Locking-compression system LOQTEQ®, Standard – Comprehensive Portfolio of bone cements and Trauma
Slide 5: 2013 – Continued profitable growth
2013 – Continued profitable growth Sales CAGR 2010 – 2013: 12% EBITDA CAGR 2010 – 2013: 29% • Full year projection more reliable • Quarter sales volatile due to: – Short life cycle of LOQTEQ® and the ordering behavior of customers and distributors – Less predictability of revenues from projects 5
Slide 6: 2013 Sales Distribution
2013 Sales Distribution • Sales driver LOQTEQ®; Growth in emerging markets • Sales growth Europe through increased business with existing customers • Project business impact on North America, Europe and Asia 6
Slide 7: 2013 Development of Financial Figures
2013 Development of Financial Figures Profit & Loss in € million 2010 2011 2012 2013 Sales 28.4 29.2 36.4 40.0 EBITDA1 (normalized) 3.4 4.1 6.1 7.0 Cash-EBT2 (normalized) -2.1 -1.2 2.1 3.5 R&D costs ratio 14% 12% 8% 8% Freshness-Index* 13% 13% 15% 22% • 1 EBITDA: EBITDA without one-time effects from
Slide 8: Strategic Progress and Value Creation
Strategic Progress and Value Creation Shareholder point of view* 2013 2012 Change 5/5/2014 Change Share price (closing) (€) 2.15 1.34 60% 3.12 45% Total amount of shares in millions 30.7 30.7 0% 30.7 0% Market Capitalization (€ million) 65.9 41.1 60% 95.8 45% Share price (average) (€) 1.45 1.02 43%
Slide 9: Global Trauma Market
Global Trauma Market Key dynamics, trends and valuation • Development Global Market EV/ Date Buyer Target firm Transaction – Trauma is fastest growing segment in Sales Orthopedics 2014 Wright Medical OrthoPro 5.50 M&A – Orthopedics: total: $6 billion revenue, 3% growth 2014 Wright Medical Solana Sur
Slide 10: aap's Aspiration and Imperatives
aap’s Aspiration and Imperatives MISSION Making Trauma treatment better and cost-effective VISION Become a leading European Trauma company STRATEGIC IMPERATIVES Products Customers Distribution Services Accelerating value-based Enhancing market access innovation Getting focused on pure Trauma Geograp
Slide 11: Transformation to a pure Trauma company
Implementation of Strategic Imperatives Transformation to a pure Trauma company Focus on core business 2008 2009 2010 2011 2012 2013 2014 Dental + Analytics + Medical Aesthetics + Recon + + + + + Contract Manufacturing + + + + + + Biomaterials + + + + + + (+) Trauma + + + + + + + • Spun off Recon ac
Slide 12: Accelerating value-based innovation – LOQTEQ
Implementation of Strategic Imperatives Accelerating value-based innovation – LOQTEQ® The Concept The Applications The Value • New locking compression technology Products Customers • Patents issued and pending Distribution Accelerating Services Enhancing market value-based • Genuine alternative to t
Slide 13: Accelerating value-based innovation – Portfolio extension
Implementation of Strategic Imperatives Accelerating value-based innovation – Portfolio extension Phase Value added 2012 2013 2014 2015 2016 Proximal Humerus Distal Femur One Step, One Hole, One Screw I Proximal Tibia Flexible compression ✓ Distal Tibia Clavicle Osteotomy One Step, One Hole, One Scr
Slide 14: Enhancing market access
Implementation of Strategic Imperatives Enhancing market access • Achievements in 2013 • Strong commercial growth of LOQTEQ® in core markets • Substantial extension of Key Opinion Leaders (KOL) and Key Users • Successful international distributors meetings, training and education • Continued focus o
Slide 15: Optimizing operational efficiency
Implementation of Strategic Imperatives Optimizing operational efficiency • Supply chain improvement initiative with external professional support – Faster product delivery and better inventory management • Product development and regulatory path improvement initiatives – Shorter time-to-market and
Slide 16: Supplementing organic growth with acquisition
Implementation of Strategic Imperatives Supplementing organic growth with acquisition • Core acquisition rationales – Extension of distribution channels and geographical coverage – Operational synergies – Portfolio extension • Preferred targets – Small companies with lower multiples – Proven busines
Slide 17: The LOQTEQ Value Capture Concept
Implementation of Strategic Imperatives The LOQTEQ® Value Capture Concept Different than others Better than others Positioning Innovation & Customer Value The masstige concept: Premium Complete as well as indication- trauma products for mass market based solution portfolio Pursuit of different
Slide 18: Management Agenda 2014
Management Agenda 2014 Customer Growing Trauma sales to EUR >15 million (>50%); driven by LOQTEQ® Expanding the LOQTEQ® portfolio; striving for >90% indication coverage Appointing a distributor in the USA and further expansion of distribution network beyond BRICS- and SMIT-countries Appointing a new
Slide 19: Management Agenda 2014 – Financials
Management Agenda 2014 Financials Profitable growth: sales of € 35 million (+22%) and EBITDA between € 5 million and € 6 million Working capital ratio > 2.4 (in relation to sales) Strengthening the balance sheet by ongoing reduction of the percentage of intangible assets as of the balance sheet tota
Slide 20: Financial Outlook 2014
Financial Outlook 2014 • Q1 2014 (latest estimates): Financials within guideline – Sales: €7.1 million – EBITDA: €0.1 million • FY 2014: Management Board reconfirms communicated guideline • Strong sales growth with focus on Trauma business • Sales revenue +22% to €35 million (PY: €28.6 million) for
Slide 21: Outlook 2014 and beyond
Outlook 2014 and beyond • Expected growth in 2015 and beyond: 20% 21
Slide 22: Stockholder Structure
Stockholder Structure • Growing interest in aap´s value driving strategy is also reflected in new shareholders: – December 2013: Taaleritehdas ArvoRein Equity Fund, Finland – March 2014: Ennismore Fund Management Limited, UK – April 2014: Fidelty Funds SICAV, Luxembourg • Market Cap increased to alm
Slide 23: Notes
Notes 23
Slide 24: Contact
Contact aap Implantate AG Lorenzweg 5 12099 Berlin Marc Heydrich Investor Relations Tel.: +49 30 750 19 – 134 Fax: +49 30 750 19 – 290 E-Mail: ir@aap.de Website: www.aap.de IR-app: 24
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