Polypeptide Group Ag · SIX:PPGN
Polypeptide — FY2021 Earnings Presentation
33 slides from Polypeptide's earnings presentation, Mar 15, 2022
Slide 1: PolyPeptide Group AG 2021 results & business update
PolyPeptide Group AG (SIX: PPGN) 2021 results & business update 15 March 2022
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by PolyPeptide Group AG (“PolyPeptide" and together with its subsidiaries, "we", "us" or the "Group"). The information contained in the Presentation does not purport to be comprehensive. Please refer to the financial reports availab
Slide 3: Agenda
Agenda 1 Introduction Raymond De Vré, CEO 2 2021 financial results Jan Fuhr Miller, CFO 3 Strategy, priorities & outlook Raymond De Vré, CEO 4 Q&A All 3
Slide 4: Q&A
Q&A The presentation will be followed by a Q&A session. Anyone who wishes to ask a question, or make a comment can do it in the following ways: • Through the telephone by pressing * and 1 (please register on the website to receive the personal dial in details) In case of assistance please press * an
Slide 5: Summary of 2021 performance
Summary of 2021 performance Strong results reflecting well on technical capabilities, execution mindset and strong customer focus • Revenue growth of 26.5% to € 282.1 m • Driven by custom projects in phase III, including a substantial contribution from Novavax • Further expansion of project pipeline
Slide 6: Agenda
Agenda 1 Introduction Raymond De Vré, CEO 2 2021 financial results Jan Fuhr Miller, CFO 3 Strategy, priorities & outlook Raymond De Vré, CEO 4 Q&A All 6
Slide 7: Revenue and EBITDA development
Revenue and EBITDA development Strong growth momentum, while completing successful IPO and leadership transition Revenue € m Reported EBITDA € m 2021 revenue of € 282.1 m, up 26.5% 16.3% CAGR • Doubling of volumes manufactured 26.2% • Favorable impact related to projects CAGR in response to coronavi
Slide 8: Revenue by segment
Revenue by segment Growth driven by custom projects Composition of Group revenue Custom projects € m Contract manufacturing € m Generics and cosmetics € m +63.9% -10.5% +21.2% 9% 9% 150 32% 45% 100 100 100 .0 167.0 101.9 100.1 89.6 50 50 50.0 21.1 25.5 0 0.0 0 59% 2020 2021 2020 2021 2020 2021 46% •
Slide 9: Adjusted EBITDA
Adjusted EBITDA Favorable impact from gross margin enhancement €m +37.0% 2021 adjusted EBITDA of € 88.2 m, up 42.4% Adjustments already reported with HY results • Non-recurring IPO costs of € 5.7 m, of which €4.3 m bonus-related • Non-recurring income from US government loans of € 2.4 m waived in co
Slide 10: EBIT and result for the year
EBIT and result for the year Result for the year up by 50.8% with basic EPS of € 1.47 Summary P&L € m 2018 2019 2020 2021 Revenue 179.6 202.6 223.0 282.1 EBITDA 42.2 49.4 61.9 84.8 2021 Result of € 47.3 m, up 50.8% • Margin of 16.8% margin % 23.5% 24.4% 27.8% 30.1% Depreciation, amortization & -14.4
Slide 11: Cash flow and cash position
Cash flow and cash position Strong cash position following the IPO €m Free cash flow € -20.4 2021 net cash flows from operating activities (excl NWC) of € 76.8 m • Net cash flow from changes in NWC of € -19.5 m, also reflecting record sales in December 2021 • Net cash flow from investments1 of € -77
Slide 12: Capital expenditures
Capital expenditures Capacity expansion, new capabilities, modernization, digitalization 150 €m 2021 capital expenditures1 of € 76.7 m, or 27.2% of revenue, including 100 11.7% 13.0% 21.6% 27.2% • Large-scale solid phase synthesis capacity in Braine-l’Alleud (Belgium) • Large scale downstream capaci
Slide 13: Return on net operating assets
Return on net operating assets Increased capital productivity from higher asset utilization 203.0 219.8 243.3 305.8 27.8 33.5 44.4 64.2 2021 RONOA1 of 21.0% Increased asset utilization as evidenced by avg. NOA up 25.7% vs EBIT up 44.6% 21.0% 18.2% 13.7% 15.3% 2018 2019 2020 2021 Avg. NOA € m EBIT €
Slide 14: Dividend proposal
Dividend proposal Proposed cash distribution to AGM 2022 from foreign capital reserves of CHF 0.30 per share Result for the year and cash distribution CHF m Cash distribution proposal to AGM 2022 • CHF 0.30 per share • Distribution of CHF 9.91 m 48.8 • Payout ratio of 20.3% of result for the year 20
Slide 15: Agenda
Agenda 1 Introduction Raymond De Vré, CEO 2 2021 financial results Jan Fuhr Miller, CFO 3 Strategy, priorities & outlook Raymond De Vré, CEO 4 Q&A All 15
Slide 16: Integrated strategy
Integrated strategy OnePolyPeptide Innovation – Excellence – Trust Drive Customers Go for innovation first growth Responsible partnerships Sustainability Employer Business partner of choice excellence 16
Slide 17: Customers first
Customers first Aspiring to be the preferred long-term partner in the industry 150 .0 Strong customer commitment OTIF (on-time-in-full) delivery performance • Delivering high-quality products and services 100 .0 • Being flexible 92% 95% 50.0 • Helping customers secure regulatory approval and success
Slide 18: Go for growth: core peptide segment
Go for growth Core peptide segment expected to remain a growth driver Increasing use of peptides across a diverse set of indications and medical conditions • Longer and more complex peptides • Peptide market USD 44bn by • Cocktail of peptides 2025, growing at 7%; continued • Pegylation and conjugati
Slide 19: Go for growth: building new capabilities in oligonucleotides
Go for growth Building new capabilities in oligonucleotides Addressing unmet customer needs in oligonucleotide modality given increasing therapeutic relevance • R&D and GMP pilot plant facility up and running • Dedicated team • First customer project started • Building of portfolio of early-stage cu
Slide 20: Drive Innovation
Drive Innovation Multi-faceted comprehensive green chemistry program to reduce environment footprint Optimize Process Mass Intensity (PMI) by reducing the amount of chemicals used in production Reduce Example: Development of new percolation practices, reducing by up to 70% the amount of solvent used
Slide 21: OnePolyPeptide
OnePolyPeptide Improving processes, systems and platforms across the Group for sustainable growth Malmö Braine Strasbourg Torrance San Diego Ambernath Right balance between global integration of systems and local diversity Sales Development, Innovation Human Legal IR, ESG, Operations Quality Finance
Slide 22: Corporate sustainability and responsible partnerships
Corporate sustainability and responsible partnerships Material ESG topics and ESG agenda as integral part of business strategy Twelve ESG material topics Established ESG agenda 2022+ Sustainability partner • Green chemistry • Circular waste management • First focus on • Environmental protection • Gr
Slide 23: Outlook and guidance for 2022
Outlook and guidance for 2022 Mid-term aspiration 2022 guidance Expect continued favorable industry trends Continued infrastructure investments Implement strategic agenda Building on strong 2021 performance Mid-term guidance unchanged Revenue Adj. EBITDA Capex as % of growth margin Revenue Revenue g
Slide 24: Agenda
Agenda 1 Introduction Raymond De Vré, CEO 2 2021 financial results Jan Fuhr Miller, CFO 3 Strategy, priorities & outlook Raymond De Vré, CEO 4 Q&A All 24
Slide 25: Q&A
Q&A The presentation will be followed by a Q&A session. Anyone who wishes to ask a question, or make a comment can do it in the following ways: • Through the telephone by pressing * and 1 (please register on the website to receive the personal dial in details) In case of assistance please press * an
Slide 26: Appendix
APPENDIX
Slide 27: HY time series
HY time series Summary P&L € m; unaudited H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 H2 2021 Revenue 81.6 97.9 90.7 111.9 87.8 135.2 135.1 147.0 EBITDA 20.6 21.6 22.7 26.7 18.5 43.4 39.9 45.0 margin % 25.2% 22.1% 25.0% 23.8% 21.1% 32.1% 29.5% 30.6% Depreciation, amortization & -6.8 -7.7
Slide 28: Consolidated statement of income
Consolidated statement of income 1 January – 31 December 28
Slide 29: Consolidated statement of financial position
Consolidated statement of financial position As at 31 December 29
Slide 30: Consolidated statement cash flow
Consolidated statement cash flow 1 January – 31 December 30
Slide 31: Green chemistry
Green chemistry Selected recent scientific publications by PolyPeptide scientists 2022 R. Ravetti Duran, O. Ludemann-Hombourger “SPPS : Process improvements to reduce solvent consumption”, Spec. Chem. Mag., Jan-Feb 2022, 40-43 J. Pawlas, J.H. Rasmussen Environmentally Sensible Organocatalytic Fmoc/t
Slide 32: Contact and IR calendar
Contact and IR calendar Contact Selected events in 2022 Michael Stäheli 23 March 2022 | Roadshow in New York, US, with Bank of America Head of Investor Relations & Corporate Communications 25 March 2022 | Roadshow in London, UK, with Bank of America 5 April 2022 | Roadshow in Paris, FR, with Berenbe
Slide 33: Thank you
www.polypeptide.com eT ita PEPTIDE PARTNER