Medartis Holding Ag · SIX:MED
Medartis — H1 2024 Earnings Presentation
26 slides from Medartis's earnings presentation, Aug 20, 2024
Slide 1: 2024 | Half-year results
2024 | Half-year results Christoph Brönnimann CEO | Dirk Kirsten CFO Basel, 20 August 2024
Slide 2: Disclaimer
Disclaimer This communication does not constitute an offer or invitation to subscribe for or purchase any securities of Medartis Holding AG. This publication may contain certain forward-looking statements and assessments or intentions concerning the company and its business. Such statements involve
Slide 3: Agenda
Agenda 1 Opening remarks Christoph Brönnimann, CEO 2 Operational and financial review Dirk Kirsten, CFO 3 Business update Christoph Brönnimann, CEO 4 Outlook 2024 Christoph Brönnimann, CEO 5 Upcoming corporate events ® Medartis All rights reserved │ 3
Slide 4: Opening remarks
Opening remarks Christoph Brönnimann, CEO
Slide 5: H1 Key figures & business summary
H1│Key figures & business summary 13.1% − Underlying global growth of 13.1% with strong regional performance from US & EMEA but weaker than expected growth in Underlying global growth LATAM & APAC − Underlying EBITDA margin improved – strengthened gross margin and tight cost management 21% & 18% − S
Slide 6: Operational and financial review
Operational and financial review Dirk Kirsten, CFO
Slide 7: Summary
Summary 1 Growth 2 Gross margin 3 Cost management − Underlying net sales increased − Reported gross margin − Opex ratio of 77%, excl. one-offs 13.1% at CER, amounting to CHF improved to 80.3% – up 310 bps of 75.4% 107.6m − Improvement results from higher − Continued investments into − 3rd party busi
Slide 8: Underlying Group growth of 13.1% at CER
Underlying Group growth of 13.1% at CER − US: Up 20.6% – mainly driven by upper extremities; Underlying YoY H1 2024 revenue by underlying market growth assumption at 10-12% region/territory CER growth % CHF m − Current monthly run rate ranges from USD 4.5 to 5m, up 60% since NSI acquisition 59.5 EME
Slide 9: Diversified product portfolio with balanced segment growth
Diversified product portfolio with balanced segment growth H1 2024 revenue by product YoY CER segment excl. 3rd parties growth % − Upper extremities business grew 20% in US and 15% in EMEA; CHF m EMEA even increased its already strong market share in Hand & Wrist, boosted by KeriMedical sales 72.7 U
Slide 10: Gross margin | Returning back to normal levels after lower 2023
Gross margin | Returning back to normal levels after lower 2023 in % of net sales − In general, strong pricing discipline, but less favorable country and product mix − Higher capacity utilization, improved manufacturing efficiency and lower stake of low-margin 3rd party manufacturing business ® Meda
Slide 11: EBITDA margin | Gradual improvement and continued investment into growth
EBITDA margin | Gradual improvement and continued investment into growth CHF m 12.0% 14.6% 17.2% − US cost management starting to improve – efficiency gains after NSI integration − EMEA and APAC with good cost management; material investment into Japan to gain absolute size − HQ cost management disc
Slide 12: Accounting impacts from NSI revaluation remain cash neutral
Accounting impacts from NSI revaluation remain cash neutral • Launched products taking longer to convert as • Probability of reaching channel building is slower earnout conditions has than expected decreased due to delayed sales uptake CHF m − Revaluation of intangible assets from NSI acquisitions t
Slide 13: Net result | Returning to net profit again
Net result | Returning to net profit again CHF m • Small FX gains in the first 6 months of 2024 – before CHF strengthened in early August • Convertible interest expenses of 6.1% − Slightly positive FX result in H1 '24, but new accounting interest expenses from convertible bond − Net P&L effect of NS
Slide 14: Cash | Improving sales-to-cash conversion & successful convertible bond issue
Cash | Improving sales-to-cash conversion & successful convertible bond issue CHF m • Mid-term target of CHF 13.8m of underlying improvement YoY 5-10% − Operating CF before M&A and financing improved from CHF -11.9m to CHF 2.2m YoY; improvement results from profitability gains, better working capita
Slide 15: Business update
Business update Christoph Brönnimann, CEO
Slide 16: H1 2024 Progression of strategic must-wins
H1 2024│Progression of strategic must-wins Status Must Win Details Winning in distal radius Progressing (8.3% growth global, 18.4% in US, EMEA a remarkable 10%) Increasing share on foot and ankle Good progress– ankle up 43%, foot increased by 20% Drive KeriMedical growth Strong growth in all key mar
Slide 17: H1 2024 Innovation
H1 2024│Innovation While our comprehensive portfolio covers key Upper Extremities and Lower Extremities elective and trauma indications, we continually innovate to improve products and cover more indications and anatomies. In H1 2024 we launched the following products: Foot 2 System CCS line extensi
Slide 18: H1 2024 Products – case study LapiPrep
H1 2024│Products – case study LapiPrep LapiPrep is a superior technology driving the shift from non-guided to guided bunion surgery, leading to higher-quality and more predictable outcomes. Case details: Patient before LapiPrep surgery Patient following LapiPrep surgery − 21-year-old female − Juveni
Slide 19: H1 2024 Sharpening US commercialization
H1 2024│Sharpening US commercialization Diversified and balanced portfolio − We have shifted our investments towards accelerating share gains in Hand and Wrist through our portfolio in that segment, Hand and Wrist is our core business and KeriMedical (KeriFlex) and Field Orthopedics (Nx Nail) shows
Slide 20: Other regional priorities
Other regional priorities EMEA APAC LATAM − Accelerate sales of Keri − Continue successful business − Finalize required negotiations Medical transfer from the former with Brazilian hospitals − Increase cross-selling of distributor to Medartis in − Further prepare the launch of Keri Medical products
Slide 21: Outlook 2024
Outlook 2024 Christoph Brönnimann, CEO
Slide 22: FY 2024 Outlook
FY 2024 Outlook (barring any unforeseen circumstances) 12-15% − Based on H1 growth below expectations mainly in LATAM & APAC, Medartis reduces the top line guidance for FY 2024 CER growth − While the Group remains confident that it will outperform the underlying market, it is adjusting its outlook f
Slide 23: medartis
(J&A medartis
Slide 24: Upcoming corporate events
Upcoming corporate events Date Event Broker Destination 2024 2 September Octavian Healthcare Trip Reverse Roadshow Octavian Basel 11 September UBS Best Of Switzerland UBS Ermatingen 06-08 November Swiss Equity Conference ZKB Zurich 19-21 November Healthcare Conference Jefferies London 2025 18 March
Slide 25: Analyst coverage: For independent research opinions
Analyst coverage: For independent research opinions Broker Analyst Email Telephone Bryan Garnier & Co Maria Vara mvara@bryangarnier.com +33 785 986 503 Octavian Sandra Dietschy sandra.dietschy@octavian.ch +41 44 518 08 27 Research Partners AG Alexander Burgansky alexander.burgansky@researchpartners.
Slide 26: Restoring quality of life
“Restoring quality of life” medartis