Vetoquinol Sa · EURONEXT:VETO
Vetoquinol Sa — FY2018 Earnings Presentation
32 slides from Vetoquinol Sa's earnings presentation, Mar 21, 2019
Slide 1: 2018 Results
PARTENAIRE DE LA SANTÉ ANIMALE DEPUIS 1933 2018 RESULTS Investors and Analysts March 21, 2019 www.vetoquinol.com
Slide 2: Disclaimer
2 2018 results Disclaimer This document was prepared by the Vetoquinol Group for the sole purpose of presenting the 2018 annual results on March 21, 2019. This document may not be reproduced or distributed, in whole or in part, without the prior agreement of Vétoquinol. The Vetoquinol Group shall no
Slide 3: Contents
3 2018 results CONTENTS 1. 2018 highlights 2. 2018 consolidated financial statements 3. Strategy and outlook
Slide 4: Improvement in all indicators in 2018
4 2018 results Improvement in all indicators in 2018 Essentials Group sales* products* €367.9m up 5.8% (LFL) €179.4m up 3.2% (reported) up 9.1% (LFL) up 7.3% (reported) Net income EBIT Net cash Group share €48.4m €36.3m up €111m 13.2% of sales up 4.0% * The increase in sales takes into account the i
Slide 5: 2018 highlights
5 2018 results 1. 2018 highlights
Slide 6: 2018 sales show growth across all territories
6 2018 results 2018 sales show growth across all territories +2.9% Sales (€m) At constant exchange 179.9 175.2 rates +8.7% 126.2 122.0 +8.6% 59.4 61.8 2017* 2018 2017* 2018 2017* 2018 Europe Americas Asia Pacific * sales adjusted for the impact of the application of IFRS 15
Slide 7: Strong development of Essentials products
7 2018 results Strong development of Essentials products › Essentials products record 9.1% organic growth in a developing global market** +5.6 Sales (€m) +15.2 -9.5 367.9 356.6* 2017 Currency Essentials Complementary 2018 sales impact products products sales * sales adjusted for the impact of the ap
Slide 8: Continuing momentum for Essentials products
8 2018 results Essentials Continuing momentum for Essentials products products Sales (€m) › Essentials products even more buoyant and profitable 400 Sales (€m) 350 300 250 Complementary products 200 150 Essentials 100 49% products 50 36% 2012 2013 2014 2015 2016 2017 2018
Slide 9: New companion animal products: Sonotix, Zylkene Chews
9 2018 results 2 new companion animal products › Sonotix • Ear cleaner for dogs with an original formula › Zylkene Chews • Lifecycle management of this pet behavior market leader
Slide 10: Scientific support highly valued by veterinary customers
10 2018 results Scientific support highly valued by veterinary customers UpLife, an ambitious cardiology training program
Slide 11: Acquisition of digital start-up in Northern Ireland
11 2018 results Acquisition of › Start-up based in Northern Ireland › Digital solutions for vets › Enhancing veterinarian advisory services for cattle farmers › Bringing new solutions to herd management
Slide 12: A wide variety of information sources in cattle farms
12 Résultats 2018 A wide variety of information sources in cattle farms Syndromic Births & Deaths Movements Surveillance & Surveillance Eradication State Labs Research & Genetics Environmental Data Disease Testing Government Records Industry Schemes and Measures Animal Records Milking Cow Management
Slide 13: Strengthening the vet's role on the farm
13 2018 results Strengthening the vet’s role on the farm › BEFORE › AFTER
Slide 14: Enhancing R&D capacity
14 2018 results Enhancing R&D capacity Asset purchase closed on September 1, 2018 › Faster appraisal of research projects › Faster time-to-market for new products › More test projects launched
Slide 15: End of industrial transfer in Canada
15 2018 results End of industrial transfer in Canada › Completion of a 4-year industrial transfer › Closure of the Belleville site (Ontario) › Consolidation of FDA approved Princeville (Quebec) site Belleville
Slide 16: Aucapi: continuous industrial improvement
16 2018 results Aucapi: continuous industrial improvement › Long-term industrial plan • €20m investment over 4 years › Lure site specialization • Sterile injectable forms • Capacity increase
Slide 17: 2018 consolidated figures
17 2018 results 2. 2018 consolidated figures
Slide 18: Improvement in EBIT margin
18 2018 results Improvement in EBIT margin €m 2018 % of sales 2017* % of sales Change Sales 367.9 356.6 +3.2% Gross margin on purchases 255.1 69.3 245.0 68.7 External expenses (78.7) (21.4) (76.4) (21.4) Personnel expenses (115.3) (31.3) (111.0) (31.1) Taxes and duties (5.0) (1.3) (4.6) (1.3) Other
Slide 19: EBITDA, ongoing value creation
19 2018 results EBITDA, ongoing value creation €m 2018 2017 Net income before equity method 36.4 35.0 Income tax expense 12.2 8.4 Net financial items (0.4) 2.3 Provisions recorded under non-recurring operating income and expenses (0.8) (0.4) Provisions and write-backs 0.1 (0.1) Depreciation and amor
Slide 20: Cash flow
20 2018 results Cash flow €m 2018 2017 Consolidated net income 36.2 34.8 Free cash flow before net cost of debt and tax 61.5 55.3 Cash flow from operating activities 37.9 41.2 Cash flow used by investing activities (17.8) (15.7) Cash flow used by financing activities (15.2) (14.6) Change in cash and
Slide 21: Working capital
21 2018 results Working capital €m 12/31/2018 12/31/2017 Inventories 77.2 69.4 Trade and other receivables 73.8 68.3 Trade and other payables (74.5) (72.0) Other net working capital 0.7 4.9 Working capital 77.2 70.6 12/31/2018 12/31/2017 In number of days 72.1 73.7 (by due date)
Slide 22: Sound financial structure
22 2018 results Sound financial structure €m Provisions and 16.6 deferred tax liabilities 17.2 111.0 Net cash 97.5 Working capital 77.2 70.6 363.1 Shareholders’ equity 335.7 Net fixed assets 191.5 184.8 Dec. Dec. Dec. Dec. 2017 2018 2017 2018
Slide 23: Vetoquinol, an independent family-owned group
23 2018 results Vetoquinol, an independent family-owned group › Share price › Shareholders at December 31, 2018 Treasury stock 0.4% Float 32.7% Etienne Frechin family 66.9% › Draft resolution at the General Meeting scheduled for May 21, 2019 • Dividend of €0.48 per share (up 4.3%), i.e. a payout rat
Slide 24: Strengthening Vetoquinol's fundamentals
24 2018 results Strengthening Vetoquinol's fundamentals › Essentials product growth outperforms the market › Strong cash generation › Sound financial structure • Shareholders’ equity of €361.1m • Net cash of €111m • Large borrowing capacity
Slide 25: Strategy and outlook
25 2018 results 03 Strategy and outlook
Slide 26: Vetoquinol: an animal health pure player
26 Résultats 2018 Vetoquinol : an animal health pure player › Sustainability and independance of Vetoquinol › Balance between food producing animals and companion animals › International sales split more aligned with the potentials of the markets › Hybrid growth goals › High governance and ethical s
Slide 27: Roll-out of the In Motion strategic plan
27 2018 results Roll-out of the In Motion strategic plan Development of strategic therapeutic domains › Strengthening reproduction range • Two new product launches › Development of osteoarthritis • 2 major life cycles › Global › USA › Territory expansion
Slide 28: Innovation – at the heart of the strategy
28 2018 results Innovation – at the heart of the strategy R&D: future value creation CAPITALIZE ON STRONG POTENTIAL › 2018 R&D expenditure: €26.4m (7.2% of sales) OF OUR TEAMS › Acquisitions and/or project co-financing budget STRENGTHEN › Seeking biotechnology partnerships OUR INNOVATE MULTI-SPECIAL
Slide 29: Group outlook
29 2018 results Group outlook › Strengthen the R&D pipeline with innovative projects, including the first fruits of our biotechnology initiatives › Successfully complete the roll-out of FarmVet Systems digital solutions › Accelerate Vetoquinol’s transformation in order to better serve our customers
Slide 30: Upcoming financial releases
30 2018 results Upcoming financial releases › April 17, 2019 Q1 2019 sales (after market close) › May 21, 2019 Shareholders’ general meeting › July 25, 2019 H1 2019 sales and results (after market close) › October 16, 2019 Q3 2019 sales (after market close)
Slide 31: Vetoquinol enriches the lives of people through dedication to animal health and welfare
31 2018 results Vetoquinol enriches the lives of people through dedication to animal health and welfare CAPITALIZE ON STRONG POTENTIAL OF OUR TEAMS INNOVATE STRENGTHEN VIA BIO- OUR TECHNOLOGIES MULTI-SPECIALIST AND STRATEGY CUSTOMER SOLUTIONS
Slide 32: www.vetoquinol.com
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