Coloplast A/s Class B · OMXCOP:COLO_B
Coloplast A/s Class B — Investor Day (September 2020)
149 slides from Coloplast A/s Class B's investor day presentation, Sep 29, 2020
Slide 1: Welcome to Coloplast's Virtual Capital Markets Day
Welcome to Coloplast’s Virtual Capital Markets Day September 29th 2020 Stina Making life easier
Slide 2: Group Strategy: Sustainable growth leadership
Group Strategy Sustainable growth leadership Stina Coloplast Capital Markets Day 2020 September 29th 2020 Kristian Villumsen, President & CEO Making life easier
Slide 3: Agenda
Coloplast Capital Markets Day 2020 Agenda Kristian Villumsen Deep Dive Calls 14:05 Sustainable growth leadership President & CEO Anders Lonning-Skovgaard October 7th: 14:40 Value creation through profitable growth EVP & CFO Chronic Care Camilla G. Møhl (China & US) 15:00 Talent, Leadership & Culture
Slide 4: What we would like to share with you today
What we would like to share with you today LEAD20 strategy successfully accelerated growth and value creation We are building the consumer healthcare company of the future Our new strategy will drive value creation through Sustainable Growth Leadership with an emphasis on innovation (Clinical Perfor
Slide 5: Our Mission
Our Mission Making life easier for people with intimate healthcare needs_ Stina
Slide 6: We are building the consumer healthcare company of the future
We are building the consumer healthcare company of the future Chronic Care Macro Trends Impact Commercial model Ageing population Superior, clinically differentiated products Healthcare consumerism Digital transformation Consumer preference Data and Clinical digital tools preference Price pressure P
Slide 7: Attractive underlying market growth of 4-5%
Attractive underlying market growth of 4-5% driven by demographics and Emerging markets Interventional Ostomy Continence Urology Wound Care Addressable market size 18-19bn 13-14bn 12-13bn 22-24bn (FY 18/19, DKK) 4-5% 5-6% 3-5% 2-4% Europe Growth in %1 Developed Emerging 4–5% value growth1 #1 #1 #4 #
Slide 8: LEAD20 strategy delivered strong revenue growth, margins and cash returns
Our LEAD20 strategy has successfully delivered strong revenue growth, margins and cash returns Revenue growth EBIT margin Cash return Reported revenue (DKKbn) Reported EBIT margin (%)* Dividends (DKKbn) Organic growth, (%) Share buy-back Pay-out ratio (%)** 33% 32% 31% 31% ~31% 88 86 84 8% 8% 77 4.1
Slide 9: With user needs at the centre we have launched innovative products
With user needs at the centre we have launched innovative products Ostomy Care Continence Care Wound & Skin Care Interventional Urology Page 9
Slide 10: Users still face challenges: Clinical Performance Program
But users still face challenges which is why we initiated our Clinical Performance Program Users are challenged by skin irritation We have made progress on key technologies and urinary tract infections and run clinical studies Intermittent 91% catheter users have of people with a stoma worry about 2
Slide 11: We have built a model that reaches users at scale
We have built a model that reaches users at scale Coloplast Care & DtC presence Direct in 5 largest markets Over 30 countries with a consumer setup ~30% MS ~10% MS ~5% MS 3 million calls with customers a year . 1.8 million consumers MO/TMall in our database ~15% MS ~70% Page 11
Slide 12: LEAD20 was backed by accelerated investments
LEAD20 was backed by accelerated investments to fuel growth & sustain long-term competitive advantage Up to 2% of sales invested annually across … … functions … geographies … and time horizons (15/16-18/19, DKKm) (15/16-18/19, DKKm) Other (IT etc.) Other (R&D and IT etc.) Europe Short term R&D Mediu
Slide 13: We have delivered on LEAD20 but there is still more to do
In summary, we have delivered on our LEAD20 strategy with significant achievements…but there is still more to do We have launched a number of successful products but we need to deliver the clinical performance program and build more options into the pipeline EU is a stronghold and we continue to see
Slide 14: We will now introduce the new Coloplast Corporate Strategy
We will now introduce the new Coloplast Corporate Strategy Flemming
Slide 15: New strategy will drive long-term value creation
Our new strategy will drive continued long-term value creation through revenue and earnings growth Chronic Care Interventional Wound & Urology Skin Care 7-9% more than30% organic growth p.a. EBIT margin1 Talent, Innovation Leadership & Culture Unparalleled Sustainability efficiency 1) Constant curre
Slide 16: To deliver on Strive25 we have set ourselves up differently
To deliver on Strive25 we have set ourselves up differently Kristian Villumsen Nicolai Buhl Andersen President & CEO EVP Innovation Anders Lonning-Skovgaard Paul Marcun EVP & CFO EVP Growth Allan Rasmussen Camilla G. Møhl EVP Global Operations SVP People & Culture Page 16
Slide 17: Innovation: enable growth and deliver superior products
Innovation: We will enable growth and deliver superior products Deliver on the Clinical Performance Program in Chronic Care Continue to deliver new products within existing technologies Build more options into the pipeline Page 17
Slide 18: All our business areas will contribute to growth
All our business areas will contribute to growth Main strategic themes • Innovation Chronic Care • China – Build on Market Leading Position • US - Challenger to Leader • Market development Wound & • 3DFit Technology Skin Care • Scale our Chinese and US businesses • Drive profitability • Innovation I
Slide 19: Supported by growth enablers
Supported by growth enablers Main strategic themes Efficiency • Global Operations Plan 5 • Business support Talent, • Growth leadership Leadership • Simplicity & Culture • Inclusion and Diversity • Products and packaging Sustainability • Reduce emissions • Responsible operations Page 19
Slide 20: Supporting sustainable development
Supporting sustainable development with a strong emphasis on improving our environmental performance Our mission Making life easier for people with intimate healthcare needs Our 2025 priority Our 2025 priority Reducing Improving emissions products and packaging 0 emissions from scope 1&2 80% packagi
Slide 21: Strive25 commits up to 2% of sales annually to initiatives
Strive25 will commit up to 2% of sales annually in incremental innovation and commercial initiatives Key strategic initiatives Geographical focus areas Innovation Chronic Care US China Interventional Urology Emerging Consumer & Digital markets Sustainability Page 21
Slide 22: We will actively pursue M&A opportunities
We will actively pursue M&A opportunities as a lever for long-term growth Opportunity based Systematic screening Channel Portfolio expansion Early stage Large plays expansion & adjacencies technologies Page 22
Slide 23: Strong growth track record and well positioned for future
In summary, Coloplast has delivered a strong growth track record and is well positioned for future value creation 14% 12% Organic revenue growth (%) 12% Reported revenue (DKKbn) 10% 10% 11% 9% 8% 8% 7% 7% 7% 7% 8% 8% 7% 7% 6% 6% 6% 18 16 16 15 14 12 12 11 10 10 8 9 8 7 6 6 6 6 4 4 99/00 00/01 01/02
Slide 24: Short term negative Covid19 impact, leveraging learnings
Short term we have been negatively impacted by Covid19 but we will leverage learnings going forward Short term implications Long term opportunities • Lower group growth due to cancellation of elective procedures 1. Clinically differentiated products • Largest uncertainty related to rebound in Interv
Slide 25: Value creation through profitable growth
Financial outlook Value creation through profitable Stina growth Coloplast Capital Markets Day 2020 September 29th 2020 Anders Lonning-Skovgaard, EVP & CFO Making life easier
Slide 26: 2019/20 impacted by COVID-19; 2020/21 back-end loaded
2019/20 impacted by COVID-19 – Momentum is improving, but growth in 2020/21 will be back-end loaded 2019/20 was impacted due to COVID-19 … with many moving parts impacting 2020/21 9% 8% • Interventional Urology positively impacted by comparison period in 2019/20 Group revenue • Uncertainty around gr
Slide 27: Strive25 outset: we continue to lead our peer group
The outset for the Strive25 strategy period is strong as we continue to lead our peer group We have maintained solid growth but significantly improved profitability Continue to be leader in value creation In percent Sales CAGR 2008-2019 EBIT Margin 2008 EBIT Margin 2019 ROIC 2010 ROIC 2019 WEGO 19.1
Slide 28: Economic profit as guiding metric for value creation
Economic profit as a guiding metric for value creation at Coloplast – revenue growth remains primary driver Coloplast value driver framework High level overview (LEAD20 period 15/16 – 19/20) Value creation Shareholder value Accumulated Economic profit DKK ~18bn created over the 5 year period (CAGR:~
Slide 29: Attractive stable underlying market drivers
Attractive stable underlying market drivers in favor of future growth and value creation Market drivers Coloplast dynamics + Demographics + Access to healthcare (Emerging markets) Market share gains + Improved compliance and retention Volume ÷ Surgical/medical trends ÷ Healthcare reforms Up to -1% p
Slide 30: Investments have fueled broad-based growth
Investments have fueled broad-based growth in the LEAD20 period which is also the ambition for the Strive25 period Growth contribution LEAD20 period Illustrative growth contribution Strive25 period Revenue growth contribution FY 15/16 to 19/20 (DKKm) Revenue growth contribution FY 20/21 to 24/25 (DK
Slide 31: Gross margin for Strive25 period to be flat
Gross margin development for Strive25 period to be flat, positively impacted by Global Operations Plans Gross margin (%) FY 19/20 to 24/25 ILLUSTRATIVE Gross profit will be positively impacted by: Gross profit will be negatively impacted by: ~68% + Leverage effect on fixed costs e.g. global ÷ Countr
Slide 32: Leverage effect within SG&A will fund commercial investments
Continued leverage effect within SG&A will fund further commercial investments Cost item Development, in % of revenue Future drivers of cost ratios + Leverage effect in distribution costs in Europe driven by growth in existing 28.1 28.1 28.7 29.0 ~29 28-30 products as well as new product launches +
Slide 33: Incremental investments of up to 2% of revenue
We will continue to support organic growth by yearly incremental investments of up to 2% of revenue Key Investment Decision Drivers Key Investment Areas ✓ We expect to invest up to 2% Economics & of revenue in incremental OPEX investments Government Innovation Market Attractiveness ✓ Chronic Care US
Slide 34: EBIT margin development
EBIT margin development continues to be a function of growth, scalability, cost discipline and investment activity EBIT margin (%) Future drivers of EBIT margin ILLUSTRATIVE EBIT will be positively impacted by: + Leverage effect on fixed costs e.g. >30% distribution, admin and R&D costs ~31% especia
Slide 35: Strong free cash flow during Strive25
Continued strong development in free cash flow during the Strive25 strategy period Taxation Net working capital CAPEX(2) Reported tax rate Net working capital in % revenue Depreciation in % of revenue CAPEX DKKm CAPEX in % of revenue ~5% 6% 4% 4% 4% 4% 3% 950 23% 23% 23% 23% ~23% 23% 23% 23% 23% 24%
Slide 36: Attractive cash returns despite large investments
We will continue to provide attractive cash returns despite large investments in commercial activities Coloplast cash distribution to investors Dividends paid out in the year (mDKK) (1) Share buy-back (DKKm) Pay-out ratio (%) (2) 100 100 88 86 84 82 77 We will continue to 80 80 return excess cash to
Slide 37: Long-term guidance for the Strive25 period
Our long-term guidance for the Strive25 strategy period is aimed at continued long-term value creation 7-9% more than30% organic growth p.a. EBIT margin1 1) Constant currencies, based on FX rate as of September 29, 2020 Page 37
Slide 38: Talent, Leadership and Culture
People & Culture Talent, Leadership and Culture Brian Coloplast Capital Markets Day 2020 September 29th 2020 Camilla G. Møhl, SVP People & Culture Making life easier
Slide 39: Global employer with a strong purpose driven culture
Coloplast is a global employer with a strong purpose driven culture Mission: to make life easier for people with intimate We have a strong outset on employee engagement healthcare needs and talent promotion that we strive to maintain ~12,500 employees 7.9 out of 10 employee engagement score* Represe
Slide 40: At the heart of Strive25 is our people and culture
At the heart of delivering on Strive25 is our people and culture People and Culture Evolving how we lead Enabling stronger strategy execution • Global leadership programs fronted by ELT and senior leadership Evolving how we lead • +1,200 leaders trained • Strong focus on leveraging culture Simplifyi
Slide 41: Inclusion and diversity
A key area where we want to continue our efforts is Inclusion and diversity Today 2025 ambition YEAR ON YEAR 24% 30% IMPROVEMENT Gender diversity Female representation Female representation at VP+ levels at VP+ levels YEAR ON YEAR 51% 75% IMPROVEMENT Team diversity A team consisting of a max. 75% of
Slide 42: Value creation through Innovation
Innovation Value creation through Innovation Coloplast Capital Markets Day 2020 September 29th 2020 Nicolai Buhl Andersen, EVP Innovation Tabitha Making life easier
Slide 43: New Innovation organisation created
To deliver on Strive25 and our value creation agenda, a new Innovation organisation has been created Our purpose The Innovation organisation Executive Vice President Innovation To define, develop and deliver Coloplast’s commercial offerings Pipeline & Payers & R&D Marketing Portfolio Evidence Define
Slide 44: What our new Innovation unit needs to deliver
This is what our new Innovation unit needs to deliver • Deliver on our new product platforms within the Clinical Performance Program and current pipeline within existing Key focus area technologies Key focus area • Define new significant innovation that can drive further growth • Elevate our clinica
Slide 45: Raising the standard of care through innovation
R&D Raising the standard of care Tabitha through innovation Coloplast Capital Markets Day 2020 September 29th 2020 Oliver Johansen, SVP Global R&D Making life easier
Slide 46: Products launched across all business areas during LEAD20
During LEAD20 we have launched products across all business areas SenSura Mio SpeediCath SenSura Mio Baby & Kids SenSura Mio Hospital Assortment SenSura Mio Navi Peristeen Cone Convex Concave 16/17 17/18 18/19 19/20 Biatain Silicone SpeediCath Sizes & Shapes Brava Flex Coudé Pro SpeediCath extension
Slide 47: Increased R&D spend and strengthened capabilities
We have increased our R&D spend and strengthened key R&D capabilities Higher absolute and relative R&D spend over the period R&D in % of revenue R&D Costs 3.9% 3.9% 3.8% 3.7% External 3.5% Pre-clinical partnerships 3.3% 3.2% 3.1% 3.1% 692 640 574 533 Medical Technology 415 affairs Scouting 390 409 3
Slide 48: Pre-clinical and clinical efforts have more than doubled
Our pre-clinical and clinical efforts have more than doubled Phase of clinical studies: Test new technologies and accelerating development Number of clinical studies pr. year 21 20 18 Pilot studies 10 10 8 8 1 Pre-clinical 2 Pilot 3 Pivotal 2014 2015 2016 2017 2018 2019 2020 Source: clinicaltrials.g
Slide 49: Raise the standard of care through clinically superior products
We want to raise the standard of care through clinically superior products and innovation Focus in this CMD meeting Innovation Deliver on the Clinical Performance Program • Execute on the clinical performance programs to strengthen Coloplast’s Continue launch cadence and build more position as leadi
Slide 50: Introducing a new digital ostomy solution
Introducing a new digital ostomy solution
Slide 51: Page 51
Page 51
Slide 52: Page 52
The digital leakage notification system presented is an investigational device currently in development. It is not available for sale and its safety and effectiveness have not been established. It is not been cleared or approved in the U.S., EU, or any other market. Features and technology of the fu
Slide 53: Intelligent solution to avoid leakage accidents
We want to provide users with an intelligent solution that helps avoid leakage accidents and gives peace of mind Giving users control and peace of mind Our digital aspiration Page 53
Slide 54: Pilot study to test digital ostomy solution end-to-end
We have conducted a pilot study to test our new digital ostomy solution end-to-end for the first time End-to-end pilot study CP308 study execution and comparative outcome plan We tested the end-to-end solution in a 9 weeks pilot study to determine technical feasibility of the entire solution 18 pati
Slide 55: Pilot study shows high accuracy in detecting leakage
Pilot study1 shows high accuracy in detecting leakage, preference and peace of mind with regards to leakage Preliminary results (n=18) 91% Accuracy 67% of patients reported high or 61% of patients would use system 83% reported high or very high (correct status detected) very high trust & reliability
Slide 56: Solution empowers users; true pilot approach with payers
Our solution empowers users to take control of their life with a stoma. Here, we are taking a true pilot approach The Solution Value Creation Model Payer Pilot Process Offers a powerful, innovative and effective way to Through our Burden of Illness studies and the The pilots will be set up according
Slide 57: Introducing our new ostomy care platform
Introducing our new ostomy care platform Stina
Slide 58: Peristomal skin complications are common and a burden
Peristomal skin complications are common and a burden for many users and costly to payers and society Peristomal skin complications are a burden for many users … … and is a real cost driver * The Ostomy Life Study: the everyday challenges faced by people living with a stoma in a snapshot. Claessens,
Slide 59: New skin protecting technology tested in international RCT
We have tested our new skin protecting technology against the standard of care in an international RCT Countries: First patient in: Feb. 2020 Evaluation of skin Evaluation of skin (steady state) (steady state) Last patient out: July 2020 Data presentation: Sept 2020 Test product Test product Randomi
Slide 60: Pivotal study results unsatisfactory, confident in technology
Pivotal study results are unsatisfactory – however we remain confident in the technology Positive pilot study results presented in 2019 ✓ Latest pivotal study shows unsatisfactory results No statistically significant Slight tendency for lower Statistically significant difference in skin condition
Slide 61: Introducing our new intermittent catheter platform
Introducing our new intermittent catheter platform Tabitha
Slide 62: New IC platform addresses key UTI risk factors
Our new IC platform addresses some of the key UTI risk factors in the recently published Risk Factor Model Intermittent catheterisation General conditions ✓ Bacteria inserted by product High Intravesical pressure ✓ Urethral and bladder trauma from product Impaired bladder compliance ✓ Post void resi
Slide 63: New IC platform addresses key UTI risk factors
The new IC platform addresses key UTI risk factors Reducing mechanical trauma, residual urine and insertion of bacteria Benefits of the new IC platform v. standard catheters Standard catheter Risk of trauma in bladder Risk of trauma IC technique needed IC technique needed Bacteria wall, i.e. eyelet
Slide 64: Live pig bladder tests show elimination of eyelet blockage
Tests in live pig bladders demonstrate elimination of blockage of catheter eyelets occurring with conventional catheters Standard catheter New IC platform with micro-eyelets Eyelets block completely Complete emptying with elimination of catheter blockage Strong and the flow stops patent protection a
Slide 65: First phase of exploratory pilot study of micro-eyelets
We have completed the first phase of the exploratory pilot study evaluating the micro-eyelets The pilot study evaluates the micro-eyelets in SpeediCath (SC) catheters Male Female Timeline: Multiple micro-eyelets ver. 1 Multiple micro-eyelets ver. 1 • First patient in: June 2020 • Final data presenta
Slide 66: Improved performance with micro-eyelet catheters in healthy volunteers
Results indicate improved performance with micro-eyelet catheters in healthy volunteers - a reduced number of catheter blockage events leading to reduced residual volume at first blockage and reduced blood in urine after catheterisation Preliminary results1 New IC platform reduces catheter blockage
Slide 67: Progress across the Clinical Performance Program
We have made significant progress across the Clinical Performance Program Progress as of today Strive25 strategy period ends in 2025 Additional pilot study to further test the Product launch Digital ostomy technology in broader setup expected in first solution Pilot studies conducted with successful
Slide 68: Our mission
Our mission Making life easier for people with intimate healthcare needs Our values Closeness... to better understand Passion... to make a difference Respect and responsibility... to guide us Our vision Setting the global standard for listening and responding Colopast Group - Ostomy Care / Continenc
Slide 69: Sustaining growth leadership
Chronic Care Sustaining growth leadership Stina Coloplast Capital Markets Day 2020 September 29th 2020 Paul Marcun, EVP Growth Making life easier
Slide 70: Strong outset from the LEAD20 period
We have a strong outset from the LEAD20 period • Broad based growth of 7-8% above the market driven by innovation & a strong commercial model • Double-digit growth in the US and notable wins in the Ostomy Care acute segment incl. a position on the Premier GPO. In Continence Care, we continue to driv
Slide 71: Chronic Care represents more than 75% of sales
Chronic Care represents more than 75% of Coloplast sales and we continue to outgrow the market Chronic Care sales, in DKK FY 18/19 >75% Chronic Care reported sales growth vs. market by BA, % FY 18/19 of Coloplast sales 8% 8% 13.6 billion of DKK annual sales 5-6% 4-5% Chronic Care #1 Ostomy Care Cont
Slide 72: Strive25 will deliver solid growth above the market
Our Strive25 strategy will enable us to deliver solid growth above the market towards 2025 Chronic Care Raising the Standard of Care • Win with superior products including SenSura Mio and SpeediCath Flex • Launch new products within existing Challenger to Leader technologies • Win share across OC pa
Slide 73: Key enablers to support the commercial model
We have built key enablers to support the commercial model Commercial model Key enablers Direct Businesses Superior, clinically differentiated products Coloplast Consumer Care Consumer Clinical preference preference Data and digital tools Direct to Consumer Data & Digital tools Payer preference Page
Slide 74: Direct business serving consumers drives improved outcomes
Direct business serving consumers drives improved outcomes and is a vital component of our growth engine Direct presence in top 5 markets and strategic rationale Coloplast Care presence 1 Control and continuity of product supply ~30% MS ~10% MS ~5% MS +30 countries 2 Target the full value pool with
Slide 75: Data & digital tools are a key enabler
Data & digital tools are a key enabler for our consumer activities Data & digital tools Digital priorities Engaging mobile offering for HCPs, consumers and Superior, clinically prescribers differentiated products On-line ordering with simple user experience across platforms Consumer Clinical prefere
Slide 76: Rebalancing go-to-market model through the pandemic
Challenges of the pandemic mean we continuously rebalance our go-to market model Field sales force Inside sales (to HCPs) Direct to consumer + Focus on training and upskilling + Digital tools to support an interactive + Greater reach into community dialogue + Strong relationships maintained + Easy t
Slide 77: Ambition to continue to outgrow the market
With our ambition is to continue to outgrow the market Chronic Care 2025 strategic themes Our ambition for Chronic Care Innovation China US Ambition Emerging markets Region Europe Continue to outgrow the market Page 77 .
Slide 78: GOP5: Making Coloplast fit for sustainable growth
Global Operations GOP5: Making Coloplast fit for sustainable growth Coloplast Capital Markets Day 2020 September 29th 2020 Allan Rasmussen, EVP Global Operations Making life easier
Slide 79: Focus of GOP5 shifts towards automation
Global Operations has exhausted the possibilities for offshoring – focus of GOP5 will shift towards automation Moving focus of GOPs from offshoring … … to Automation GOP5 GOP4 Operational Excellence 2020-2023 GOP2 and GOP3 2017 Operational Excellence Step change • New factory in Costa • Automation G
Slide 80: Outlook challenging: complexity and growth in volume
The outlook is challenging and needs to accommodate complexity and growth in volume Main challenges … … together with volume and complexity increase Volume increase 2bn No more benefits from offshoring Labour shortage and wage inflation in Hungary 0 19/20 20/21 21/22 22/23 Complexity increase Streng
Slide 81: Five themes set direction for Global Operations
Five themes will set the direction for Global Operations in the coming three years Global Operations plan 5 Growth support Cost savings Optimise the collaboration between production and markets • More efficient agile output through Rethinking manual labour by leveraging increasing focus on volume an
Slide 82: Automation, procurement and scale
Automation, procurement and scale are key to bringing Global Operations to the next level 1. Automation to mitigate growth in blue-collar FTE >1,000 DKK ~450m 9% ~800 CAPEX investment over # of FTE release ~500 through automation ~200 four years (19/20 – 22/23) Salary1 19/20 20/21 21/22 22/23 (Direc
Slide 83: Investing in automation secures neutral FTE development
Investing in automation secures a neutral FTE development by the end of the GOP5 period in 2022/23 Automation is a massive theme in GOP5 launching more than 30 programmes and involving more than 300 machines at the sites Increasing costs… … to be mitigated through simple automation processes… … to h
Slide 84: Two factories finalised in Costa Rica during GOP5
Two factories finalised in Costa Rica during GOP5 to ensure an efficient and flexible manufacturing footprint Current production volume by country1 Costa Rica highlights ▪ 2 factories in Costa Rica will support increased geographical spread of risk and a more robust set-up DENMARK (2%) FRANCE (2%) ▪
Slide 85: China Chronic Care: Building on market leading position
China Chronic Care Building on market leading position Coloplast Capital Markets Day 2020 Virtual break-out session October 7th 2020 Howard Sui, SVP China Chronic Care Making life easier
Slide 86: Solid leadership position in China Ostomy Care
We have a solid leadership position in China Ostomy Care Revenue DKK, FY 18/19 Market growth & market drivers FY 18/19 Top 3 Ageing population Growing affluent population growth contributor in Coloplast Chronic Care ~15% Coloplast growth Urbanisation Increasing prevalence Market growth of chronic de
Slide 87: We need to win in China to win globally
We need to win in China to win globally China is the largest contributor to China is the world 2nd largest and China’s online retail market is world economy growth fastest growing med-tech market large and growing fast % of total GDP growth Bn DKK CAGR 2011 - 2019 Online retail value, USD | 2017 – 2
Slide 88: Strive25 focuses on the core while building new opportunities
Strive25 focuses on the core while building new opportunities Chronic Care China Maintain momentum in core OC business • Change frequency improvement • Portfolio upgrade Ostomy Care • NPD leadership organic growth Expand and evolve consumer business • Community patients’ purchasing habits • E-commer
Slide 89: Ostomy Care remains the core of our strategy and growth
With strong coverage and a broad product offering, Ostomy Care will remain the core of our strategy and growth Coloplast is the market leader with strong coverage… ... and there are large opportunities for continued growth Strong preference in • Increase change frequency hospital setting OC competit
Slide 90: Develop the IC category in high potential cities
We will develop the IC category in a selected number of high potential cities IC is a large potential value pool but it is underdeveloped We will develop the market and drive profitable growth IC market value Reimbursed market (illustrative) Selective account coverage in high-potential cities 48 tie
Slide 91: Leverage our online position
We can leverage our online position to seize new opportunities China’s online retail market Medical consumables are also We are leaders in all major is large and growing fast moving online online platforms Online retail value, USD | 2017 – 2019 CAGR % China OC market, channel value China OC online m
Slide 92: China ambition for strong profitable growth
China has the ambition to deliver strong profitable growth China Chronic Care 2025 strategic themes Our ambition for China Chronic Care Ostomy Care organic growth Ambition Intermittent Consumer Continue to outgrow the market Catheters Market growth ~15% Page 92 .
Slide 93: US Chronic Care: Challenger to leader
US Chronic Care Challenger to leader Tatiana Coloplast Capital Markets Day 2020 Virtual break-out session October 7th 2020 Manu Varma, SVP Chronic Care North America Making life easier
Slide 94: US Chronic Care outperformed the market 2-3x
US Chronic Care has outperformed the market by a factor 2-3x and continues to take share Chronic Care revenue in the US by business area Chronic Care US organic revenue growth vs. market growth Revenue DKK, FY 18/19 FY 18/19 2x 2x New 5 year strategy in place Coloplast growth ~4% ~3% ~4% Market grow
Slide 95: Chronic Care US – Challenger to leader
Chronic Care US – Challenger to leader Chronic Care US Continue to expand product Grow our Direct business and offering and win across patient establish Comfort Medical as the pathway in Ostomy Care Ostomy Care go to dealer for US patients Continence Direct Care Business Set the clinical standard of
Slide 96: In Ostomy Care, innovation is the biggest growth driver
In Ostomy Care, innovation is the biggest growth driver and we continue to win across patient pathway We have gained significant share over the last years Innovation is a key driver, and we will continue to expand our offering of Bags & Plates acute share high-quality products SenSura® Mio portfolio
Slide 97: Success in acute channel with Premier contract
Coloplast continues to succeed in acute channel with Premier contract and large acute account wins We have had major wins in the acute and post-acute care Starting April, Coloplast was awarded access to Premier, channel… one of the largest GPOs in the US TM* TM* Acute Estimated Next award members1 A
Slide 98: Continence Care: upgrading the market through innovation
In Continence Care, we continue to upgrade the market through product innovations and expanded sales force We have gained significant share over the last years We have launched significant innovation and SpeediCath Soft is our Coloplast Rehab NPD share latest launch +6%-pts SpeediCath® Flex Coude Pr
Slide 99: Introducing SpeediCath Soft
Introducing SpeediCath® Soft – a soft hydrophilic coated catheter with insertion grip Key features… An instantly ready-to-use, soft catheter with hydrophilic coating Soft catheter to ease adoption of intermittent catherisation Hygienic and clean (no-touch insertion) Easy handling All SpeediCath feat
Slide 100: Taking Comfort Medical to the next level
We will take Comfort Medical to the next level with our Strive25 strategy We have been executing our growth plan for Comfort Medical Although still a relatively small player, our Strive 25 strategy during the past couple years and have achieved double digit aims to establish Comfort Medial as the go
Slide 101: Driving excellence in commercial execution
We are dedicated to making an impact by driving excellence in commercial execution Strong commercial execution mindset runs across all functions in Coloplast Set the clinical standard of care for Expand digital solution and Build strong organisation and culture HCPs through market development offeri
Slide 102: US strategy positions us to outpace the market
Our US strategy positions us to outpace the market for years to come Our US 2025 strategic themes Our ambition for US Chronic Care Ostomy Care Ambition Continence Direct Care Business Double digit profitable growth +10% Commercial execution Page 102 .
Slide 103: Wound & Skin Care: Drive growth with 3DFit technology
Wound & Skin Care Drive growth with 3DFit technology Flemming Coloplast Capital Markets Day 2020 Virtual break-out session October 7th 2020 Nicolai Buhl Andersen, EVP Innovation Rasmus Hannemann, SVP Wound & Skin Care P aMaking life easier g
Slide 104: Key takeaways
Key takeaways 1• Wound & Skin Care 2025 strategy is centered around focused category leadership and our ambition is to grow above market, scale the business and improve overall profitability 2• 3DFit Technology is our point of differentiation and we will maximise this opportunity through new marketi
Slide 105: Global AWC market remains large and growing
The global AWC market remains large and growing The Advanced Wound Care market remains a significant Silicone Foams and Gelling Fibers are the two biggest value pool and continues to grow across all regions categories and main growth contributors Market size in DKKbn Silicone Foams Emerging Silicone
Slide 106: Improving momentum in Wound & Skin Care until COVID-19
We saw an improving momentum in Wound & Skin Care until the COVID-19 outbreak Positive sales momentum in Wound & Skin Care Key performance drivers Global Wound & Skin Care MAT net revenue growth % Europe US Emerging Markets Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 17/18 18/19 19/20 Note: Global Wound & Skin Care
Slide 107: Negative impact from COVID-19 in China, France and US
We have seen a negative impact from COVID-19 in China, France and US but the situation is slowly improving Negative impact from COVID-19 outbreak since Q2 19/20 Biggest negative impact in China, France and US Global Wound & Skin Care MAT net revenue growth % COVID-19 • Significant decline in wound c
Slide 108: Key achievements during the LEAD20 period
Key achievements during the LEAD20 strategy period LEAD20 strategy Key achievements ✓ Strong track record across EU markets with growth above market ✓ New setup and structure in US and China ✓ Successful launch of 3DFit Technology and leadership positions gains across key markets with Biatain Silico
Slide 109: Wound & Skin Care 2025 strategic plan
The Wound & Skin Care 2025 strategic plan Scale our China business Build on positive momentum in EU by strengthening our commercial foundation in silicone and 3DFit Technology and and accelerate in silicone with 3DFit increase share of voice in selected Technology markets Scale our US business in Ac
Slide 110: 3DFit Technology is our point of differentiation
3DFit Technology is our point of differentiation 1 2 3 Consensus created on the 3DFit Technology is clinically We take need for 3DFit Technology and scientifically proven leadership positions Nr. 1 in the prescription channel in Germany in the silicone foam Ag category Leading conformability, absorp
Slide 111: Biatain Fiber with HexaLock Technology
Biatain® Fiber with the unique HexaLock® Technology Locks in exudate Minimal shrinkage Cohesive gel Page 111
Slide 112: Expanding offerings to address deep wounds
We are expanding our offerings to address deep wounds with Biatain® Fiber with HexaLock® Technology Reducing exudate pooling requires a dressing that conforms to the wound bed Wounds less than 2 cm Wounds more than 2 cm Page 112
Slide 113: Biatain Fiber launch off to a good start
Biatain Fiber launch is off to a good start - HCP feedback confirms product performance and attractive value proposition Key benefits vs. competition Positive feedback on product Performance is off to a good start performance Germany community MS% development1 Biatain Fiber Key competitor • Clinical
Slide 114: Scale Wound & Skin Care, grow above market
With Strive25 we aim to scale the Wound & Skin Care business, grow above market and improve overall profitability Wound & Skin Care 2025 strategic themes Our ambition for Wound & Skin Care Deliver growth above market Scale business in US and China Improve overall profitability Explore inorganic oppo
Slide 115: Our mission
Our mission Making life easier for people with intimate healthcare needs Our values Closeness... to better understand Passion... to make a difference Respect and responsibility... to guide us Our vision Setting the global standard for listening and responding Colopast Group - Ostomy Care / Continenc
Slide 116: Interventional Urology: On the move for patients
Interventional Urology On the move for patients Brian Coloplast Capital Markets Day 2020 Virtual break-out session October 7th 2020 Steve Blum, SVP Interventional Urology P aMaking life easier g
Slide 117: Key takeaways
Key takeaways • Interventional Urology expects to deliver organic revenue growth in the high single digits driven by continued investments in patient awareness and commercial activities • The Endourology global market share will increase with the U.S. launch of the Endourology portfolio and targeted
Slide 118: IU transforms life for patients with urological conditions
IU transforms life for patients suffering from urological conditions by advancing interventional treatment solutions Ureteral Inflatable Slings to treat stents to penile prothesis to Women suffering Mesh to treat patients permanently resolve from stress urinary treat pelvic suffering with erectile d
Slide 119: Interventional Urology consists of four business areas
Coloplast Interventional Urology consists of four business areas Bladder Health and Endourology Men’s Health Women’s Health Surgery 9% of the population 25% of men 40-70 experience 35% of women worldwide worldwide affected by moderate to severe affected by urinary kidney stone disease¹ Erectile Dysf
Slide 120: Since 2008 IU has doubled revenue
Since 2008, Interventional Urology has doubled revenue and strengthened profitability by globalising its portfolio and through commercial expansion Revenue mDKK 10%CAGR 1,910 6% CAGR 1,440 950 Acquisition & Globalised portfolio Integration of Mentor, Porges Commercial and MPathy expansion 2007/2008
Slide 121: IU revenue balanced geographically and across business areas
Today, Interventional Urology’s revenue is balanced geographically and across the four business areas Interventional Urology at a Glance ~15% market share in global market of DKK 12-13bn market FY 18/19 growing 3-5% annually 11% Coloplast position, FY 18/19 Endourology Men’s Health Women’s Health Bl
Slide 122: Strong presence but room to capture market share
We have a strong presence in our categories but there is room to capture market share Coloplast Share Competitive Share MEN’S HEALTH WOMEN’S HEALTH ENDOUROLOGY1 BLADDER HEALTH & SURGERY1 <5% 30-35% <5% 35-45% 35-45% 10-15% 15-20% Inflatable Penile Male Stress urinary Pelvic organ Prosthesis (IPP) in
Slide 123: Monthly revenue growth rate continued to improve in Q4
Monthly revenue growth rate continued to improve throughout Q4 Monthly revenue growth rate improved significantly during Growth rate expected to be flat into 2020/21 and H2 Q3 and continued to improve during Q4 will benefit from an easy comparison period 11% 8% IU has been highly impacted by Covid19
Slide 124: Upper single digit organic growth through 4 key focuses
Interventional Urology will deliver annual organic revenue growth in the upper single digits through 4 key focuses Interventional Urology Innovative solutions via new product development, Top-line growth partnerships, and acquisitions via market development and Innovative commercial execution Soluti
Slide 125: Strategy reflects market dynamics across four business areas
Our strategy reflects unique market dynamics across the four business areas Bladder Health & Endourology Men’s Health Women’s Health Surgery • Full portfolio needed for • Minimally invasive • Shift towards outpatient • Product commoditisation GPO procurement procedures on the rise procedures has adv
Slide 126: Organic pipeline delivers innovation in all IU segments
Our organic pipeline delivers innovation in all IU segments Strategy Description ENDO MH WH Enhance market Strengthen Fill gaps and ensure Cadence of stone Series of IPP leading SUI & POP procedure tools enhancements core competitiveness products Portfolio Broaden offering with new Advanced Expanded
Slide 127: Seeking opportunities in adjacent segments
We are actively seeking opportunities in adjacent segments Market size and growth for core business and adjacencies, DKKbn, Illustrative Opportunistic Adjacencies 3-5% ~10% 5-10% Target Adjacencies OAB BPH 12-13 Long-Term Growth POP SI Core Target Opportunistic Adjacencies Adjacencies Building New S
Slide 128: Grow revenue globally with region-specific approaches
We will grow our revenue globally with region- specific approaches North America Europe • MH & WH will drive growth via patient • MH growth driven by patient education education and commercial expansion • Endo will grow via portfolio expansion • Endourology portfolio launched and • Portfolio will gr
Slide 129: Endourology in the US poised to deliver
Endourology in the US is finally poised to deliver in 20/21 and beyond Portfolio in place Commercial organization aligned Innovation ambitions Laser Fibers Visualisation Ureteral Stents Staffing field sales and internal teams for accelerated growth Guidewires Retrieval Baskets Stone elimination Leve
Slide 130: Evolving our organization and enhancing operations
IU is evolving our organization and enhancing operations and processes Inclusion & Recruitment & Enhancing Process Diversity retention Operations Efficiencies Train all Elevate employee Improve Leverage the employees on on-boarding to productivity via Coloplast Business inclusion & speed productivit
Slide 131: IU to deliver high single digit organic growth
IU will deliver annual organic growth in the high single digits with potential upside from partnerships and M&A Driving Sustaining revenue high level High single digit annual of profitability organic growth and ROIC Page 131
Slide 132: Sustainability: Sustainable growth leadership
Sustainability Sustainable growth leadership Coloplast Capital Markets Day 2020 Virtual break-out session October 9th 2020 Camilla Hjort Pagh, SVP Global Quality & Regulatory Affairs Christoffer Quist Weesgaard, Senior Sustainability Manager Making life easier
Slide 133: Supporting sustainable development
Supporting sustainable development with a strong emphasis on improving our environmental performance Our mission Making life easier for people with intimate healthcare needs Our 2025 priority Our 2025 priority Reducing Improving emissions products and packaging 0 emissions from scope 1&2 80% packagi
Slide 134: Our starting point is solid with room to improve
Our starting point is solid with room to improve We have been through a rigorous process to … Supported by our materiality assessment, access our Sustainability performance ... we have based our priorities on our impacts • Bottom-up assessment based on 23 parameters Governance • Involvement of stake
Slide 135: Coloplast's position on plastic
Coloplast’s position on plastic Plastic is used every day for many things. What happens after plastic is thrown away is causing a problem for our planet. As a manufacturer of medical products made of plastic, Coloplast has a responsibility. We embrace that responsibility and have clear priorities: 1
Slide 136: Investing up to 250m DKK to support environmental development
We are investing up to 250m DKK over the next 5 years to support sustainable environmental development1 Key Sustainability Targets 2025 Scope 1+2 emissions2 Renewable energy Company cars are Reduce business travel electrical Reducing emissions 100% while being a growth company 67% 50% 7% 0% 2% -10%
Slide 137: Commitment to responsible operations
We continue our strong commitment to responsible operations Key Sustainability Targets 2025 100% 2.0 Responsible White-collars trained in operations Code of Conduct Loss-time injury rate* is our core values 30% 75% Female representation of teams (Director and above) at VP+ levels meet diverse team t
Slide 138: Strengthened governance of Sustainability
We have strengthened our governance of Sustainability Remuneration and Nomination Committee Board of Directors Consists of three members appointed among the Consists of six shareholder-elected and three employee- Board of Directors. elected members. Audit Committee Consists of four members appointed
Slide 139: ESG Appendix
ESG Appendix Coloplast A/S - Ostomy Care / Continence Care / Wound & Skin Care / Urology Care ww Coloplast
Slide 140: Integrating sustainability throughout raw material flow
Environment: Improving products and packaging Integrating sustainability throughout our raw material flow Raw materials Production Disposal Landfill, incineration or nature 2020 Total: 40,000t (25,000t plastic) • of which 25% is renewable materials* Waste recycled: 36% 75% of packaging is recyclable
Slide 141: Reducing emissions while growing 7-9% organically
Environment: Reducing emissions We are committed to reducing emissions while growing 7-9% organically 2025 target 2025 target 0 100% 6% Emissions from scope Renewable energy 7% 1 +2 2025 target 13% Our greenhouse 2025 target 5% gas emissions in 56% • Reductions dependent on how much Limit on goods 1
Slide 142: Mission strives for better outcomes and access to healthcare
Social: Responsible Operations Our mission inherently strives for better outcomes as well as better access to healthcare Raising standards of care Enabling better outcomes Our partnership programme, Access to Healthcare, seeks to improve conditions within ostomy, continence and wound care. Establish
Slide 143: Ambitious Clinical Performance Program
Social: Responsible Operations We have initiated a very ambitious Clinical Performance Program to tackle the biggest issues users face Users are challenged by skin irritation and urinary tract We have made progress on key technologies and infections run clinical trials Intermittent 91% catheter user
Slide 144: Strong outset on organisational health
Social: Responsible Operations We have a strong outset on organisational health that we strive to maintain Status Ambition Ensuring safety at work 7.9 out of 10 Continued Employee Engagement above industry employee engagement score benchmark* Reducing injuries • 33% reduction in injury rates since 1
Slide 145: Building a culture of inclusion and diversity
Social: Responsible Operations Building a culture of inclusion and diversity Today 2025 ambition YEAR ON YEAR 24% 30% IMPROVEMENT Gender diversity Female representation Female representation at VP+ levels at VP+ levels YEAR ON YEAR 51% 75% IMPROVEMENT Team diversity A team consisting of a max. 75% o
Slide 146: Business with uncompromising integrity
Social: Responsible Operations Business with uncompromising integrity is sustainable business Our way Building a culture of integrity Internal structures supporting integrity BUSINESS ETHICS TRAINING • Business Ethics Management Coloplast business is founded on of white collars: and Audit Framework
Slide 147: Executive compensation correlated with shareholder value
Governance Executive compensation is directly correlated with shareholder value creation Short-Term Incentive: Annual Incentive Program Long-Term Incentive: 3-year Rolling Plan ▪ Annual cash bonus of up to 25% of fixed pay ▪ Eligibility once a year to receive stock options with a value at the time o
Slide 148: Board of Directors
Governance Board of Directors Nationality YoB Committee* Audit BoD since Independent? Committee Rem. and Nom. Name Board competencies Other Board positions (selected) Lars Rasmussen ’59 DK No ‘18 X X Extensive executive management and board experience from international listed companies in H. Lundbe
Slide 149: Our mission
Our mission Making life easier for people with intimate healthcare needs Our values Closeness... to better understand Passion... to make a difference Respect and responsibility... to guide us Our vision Setting the global standard for listening and responding Colopast Group - Ostomy Care / Continenc