Ypsomed Holding AG · SIX:YPSN
Ypsomed — IPO Roadshow (November 2004)
47 slides from Ypsomed's IPO roadshow presentation, November 2004
Slide 1: Medical Devices for Self-injection
Medical Devices for Self-injection Company Presentation –November 2004
Slide 2: Important Notice
Important Notice The information contained in this document has not been independently verified and no representation or warranty, express or implied, is made to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein.
Slide 3: Company Representatives
Company Representatives Willy Michel Chairman Ypsomed Matthew Robin CEO Ypsomed Niklaus Ramseier CFO Ypsomed Daniel Kusio Investor & Media Relations 3
Slide 4: Offering Summary
Offering Summary Company: Ypsomed Holding AG (Burgdorf, Switzerland) Listing: SWX Swiss Exchange Offering Size Up to 3,239,600 million shares (pre-greenshoe) Free Float: Approximately 25% (pre-greenshoe) Greenshoe: 250,000 shares Use of Proceeds: – Finance capital expenditures, growth and general co
Slide 5: Company Background
Company Background Injection Systems Business Infusion Systems Business Self Injection Devices Infusion Systems Pen Needles Continuous Glucose Monitoring Blood Glucose Monitoring Blood Glucose Monitoring Today, Ypsomed is the world’s leading independent manufacturer of custom made Self Injection Dev
Slide 6: Investment Highlights
Investment Highlights Management track record Largest independent Compelling history as manufacturer of division of Disetronic injection pens Technological Attractive financial excellence and profile product development expertise Strong market Close and long-lasting dynamics (diabetes, relationship
Slide 7: Overview of Products and Applications
Overview of Products and Applications Ypsomed’s activities are organised in three business sectors: Self Injection Devices Pen Needles Custom-made Self Injection Devices Pen needles that fit all major brands for pharmaceutical and biotech of Self Injection Devices on the market partners Patented cli
Slide 8: Sustainable Partnerships
Sustainable Partnerships Insulin hGH interferon & EPO r-hFSH Preos ... and other partners 8
Slide 9: Self Injection Devices - Product Overview
Self Injection Devices - Product Overview Customised injection systems for pharma and biotech partners Getting away from it all … – Cumbersome and painful injection – Dependency on specialists – Needle phobia To … – convenience – reduced pain – accuracy – social acceptance – increased compliance – s
Slide 10: Self Injection Devices - Marketed Products
Self Injection Devices - Marketed Products Reusable Pens – Electronic display / max. 2 year lifetime – Simple handling – Variable dosing – Unparalleled accuracy – Single or two-chamber cartridges Disposable Pens – Simplest handling, used for multiple injections – Device cost reimbursed in drug price
Slide 11: Important Products in Development
Important Products in Development Motor-driven Semi- Pens Needle-free disposable Pens Pens Auto-injectors Diabetes Growth disorders Autoimmune Diseases, Emergency Drugs Anemia Multiple sclerosis Migraine Viral infection Rheumatoid arthritis Allergic Reactions Infertility Psoriasis, Allergies Osteopo
Slide 12: Growth Drivers for Injection Pens (I)
Growth Drivers for Injection Pens (l) Significant advantage of injection pens over traditional injection devices Growth of diabetes market – Currently largest market for injection pens – WHO estimates over 150 million affected people worldwide, 300 million by 2014 – Diabetes increasing due to ageing
Slide 13: Growth Drivers for Injection Pens (II)
Growth Drivers for Injection Pens (ll) Increase in US pen penetration New biotech applications Injection Pen Penetration in the USA, Europe and Japan Number of Products by Delivery Technology 100% 15% 11% 13% 13% 12% 80% 35% 60% 38% 44% 58% 66% 40% 50% 53% 20% 42% 27% 24% 0% 1996 2000 2004 Marketed
Slide 14: The Leading Independent Specialist
The Leading Independent Specialist Competitors of comparable size are divisions of pharmaceutical companies manufacturing pens for their own products internally – Novo Nordisk – Lilly Various much smaller direct competitors – Not necessarily regular revenues – e.g. Owen Mumford and Haselmeier High b
Slide 15: Pen Needles - Product Overview
Pen Needles - Product Overview Penfine® - Universal Pen Needle Fits all major brands of pens on the market Patented click-on mechanism Maximum handling convenience Large range of different needle length Direct access to customers World market of over 3 billion Ypsomed is no. 3 player 15
Slide 16: Pen Needles - Growth Drivers
Pen Needles - Growth Drivers Ypsomed‘s pen-needle business grew by more than 40% in the last financial year, compared to 10% overall pen-needle market growth Increasing market for injectables and increasing pen penetration rate – High growth from the US market Attitude towards hygiene and safety inc
Slide 17: Pen Needles - Competitive Landscape
Pen Needles - Competitive Landscape The two major global players in the needles market are part of larger health care companies – Becton, Dickinson – Novo Nordisk Smaller competitors with a stronger regional presence include – B Braun Melsungen (Germany) – Artsana (Italy) 17
Slide 18: Global Product Presence
Global Product Presence Ypsomed products are sold globally through pharma partners and through Ypsomed’s distribution networks Grenchen Solothurn - Manufacturing - Manufacturing Burgdorf - Headquarters - R&D - Manufacturing Manufacturing Subsidiaries 18
Slide 19: R&D Strategy
R&D Strategy Currently 50 employees and CHF17 million spending in 2003/04, whereof CH 10 million have been paid by the pharma partners Development projects: Development of specific applications for pharma partners – 12 ongoing projects driven by customers – High probability of launching those pens /
Slide 20: Focus on Key Strengths
Focus on Key Strengths Secure and expand number 1 position as independent partner of the pharmaceutical and biotech industry in the area of self-injection Further develop needle business by bringing innovation and choice to customers Further expand partner and distribution network Capitalise on favo
Slide 21: Sales Break-Down
Sales Break-Down Sales Break-Down by Product Group Sales Break-Down by Currency (CHF in millions) (CHF in millions) 2003/2004 2002/2003 2001/2002 Sales 250.0 Ypsomed own finished Products 138.5 97.6 78.6 5.8% 200.0 % of total sales 69.7% 71.1% 78.2% FreeStyle 46.3 36.2 17.4 % of total sales 23.3% 26
Slide 22: Consolidated Income Statement
Consolidated Income Statement in CHF 1 000 March 31, 2004 Margins March 31, 2003 Margins March 31, 2002 Margins Sales of goods and services 198,734 137,187 100,613 Cost of goods and services sold (122,877) (94,917) (74,954) Gross profit 75,857 38.2% 42,270 30.8% 25,659 25.5% Research and development
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet (in CHF 1 000) Assets 31/03/04 31/03/03 31/03/02 Cash and cash equivalents 12,616 3,893 1,932 Trade receivables 29,986 19,446 16,085 Other current assets 13,008 7,004 2,048 Inventory 37,703 30,735 24,725 Total current assets 93,313 61,078 44,790 Financial assets 20 20 20 D
Slide 24: Equity / Financial Debt
Equity / Financial Debt Share Capital – Ypsomed Holding AG has raised its share capital on July 28, 2004 from CHF 250' 000 to CHF 100 million by offsetting 99.75 million of the loan provided by the shareholder Willy Michel. Loan provided by Willy Michel – Willy Michel has granted a loan to Ypsomed w
Slide 25: Consolidated Cash Flow
Consolidated Cash Flow in CHF 1 000 March 31, 2004 March 31, 2003 March 31, 2002 Net profit 14,044 12,061 5,776 Depreciation of fixed assets 15,747 12,913 11,485 Amortization of intangible assets 685 531 488 Amortization of goodwill 14,691 0 0 Change in provisions 1,500 1,782 1,412 Income tax expens
Slide 26: Injection for your portfolio
Injection for your portfolio Attractive and fast growing markets Leading market position with long-standing partnerships Strong revenue growth with potential for further margin expansion Management with proven track record 26
Slide 27: Thank you.
Thank you. Company Presentation – September 2004
Slide 28: Company Presentation – September 2004
Company Presentation – September 2004
Slide 29: Back-up Slides
Back-up Slides Company Presentation – September 2004
Slide 30: Why is Ypsomed Going Public
Why is Ypsomed Going Public IPO as a preferred option within available strategic alternatives – Funding to fuel Ypsomed’s rapid growth – Additional marketing for company and its products – Equity as management and employee incentivisation tool – Provide additional acquisition currency for potential
Slide 31: Disetronic Success Story
Disetronic Success Story Steady increase in sales and net profit Share price increase of over 26.3% p.a. over 7 years Sales and Net Profit Development since IPO (CHF in millions) 335.0 302.7 252.2 206.0 131.9 102.4 40.7 45.8 50.5 19.5 21.7 30.7 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 Sales N
Slide 32: Corporate Structure
Corporate Structure As implemented at the time of the IPO Willy Michel Ypsomed Holding AG (Burgdorf) TecPharma Ypsomed AG Ypsotec AG Licensing AG (Burgdorf) (Grenchen) (Burgdorf) Ypsomed GmbH Ypsomed BV Ypsomed AB Ypsomed SAS Ypsomed S.r.l. (Germany) (Netherlands) (Sweden) (France) (Italy) DiaExpert
Slide 33: Ypsomed Management Team
Ypsomed Management Team CEO Matthew Robin QM & RA CFO Legal HR Thomas Beuttler Niklaus Ramseier Beat Maurer Yvonne Müller Marketing & Sales Marketing & Sales Production & R&D Ypsotec AG Pharma Partner Europe Logistics Christoph Detlef Jantos Christoph Brand Jürg Clavadetscher Heinz Ackermann Rindlis
Slide 34: Positioning
Positioning High quality, innovative and reliable full service provider Innovative and patent protected products Production expertise compliant with the latest regulatory requirements – Manufacturing in FDA registered facilities and under cGMP standards – Devices approved for all leading markets inc
Slide 35: Growth Drivers
Growth Drivers Strong market growth of existing applications (e.g. diabetes) – Further growth of the diabetes market: 10 - 12% CAGR – Strong Lantus growth and penetration – Increasing pen penetration of US market New biotech applications – Majority are/will be injectable Pharma company differentiati
Slide 36: Exposure to the US Market
Exposure to the US Market US insulin pen market opening through Device Acceptance launch of Lilly pen products, the largest US insulin provider Pen Users as a 100% percentage of insulin injection patients 80% Ypsomed is offering technical support to Aventis in order to strengthen the position 60% of
Slide 37: Operational Strengths
Operational Strengths Extensive IP portfolio and comprehensive development expertise in-house Dedicated manufacturing sites in Burgdorf, Solothurn and Grenchen Management of growth: – Pens: units more than doubled of over the past 2 years – Needles: doubling of units over the past 3 years All levels
Slide 38: Production Philosophy
Production Philosophy High level of vertical integration allows for in-house back up and quick response to market needs Close interaction with in-house R&D Quality - Qualification of employees – Training – Experience and loyalty – Motivation, with a limited fluctuation rate – Retention of key employ
Slide 39: Product Pipeline
Product Pipeline 12 ongoing projects Strong product pipeline: – 1st semi-disposable pen – 1st disposable auto-injector – Novel reusable pen for new indication – Motor-driven injectors 39
Slide 40: Patents
Patents Active patent registration philosophy Patents held by TecPharma Licensing AG, an Ypsomed company Total of 146 patent families Extensive in-house experience leverages impact of IP portfolio Priority Applications per Annum Granted Patents by Region 31 32 21 22 15 15 11 13 8 6 5 4 3 3 2 2 1 1 1
Slide 41: Collaboration with Partners
Collaboration with Partners Long term collaboration Long lasting contracts Risk of in-sourcing relatively small (various risks, costs, time to market) Intellectual property – Device-related patents with Ypsomed Registration process – Approval process managed by partner – Product-specific interaction
Slide 42: Diabetes Care
Diabetes Care DiaExpert GmbH internet portal Replacement of FreeStyle to be decided Keep sales force 42
Slide 43: Future Investments
Future Investments CHF 90 Mio. to be invested in 2004/2005 Enhance capacity significantly Significant number of new machines Clean-room in Solothurn 43
Slide 44: Value Enhancement
Value Enhancement New products with higher margins Enhance cost effectiveness (logistics) Out-sourcing 44
Slide 45: BV Group loan
BV Group loan BV Holding AG has recently granted to Ypsomed a convertible loan of CHF10 million The Board of Directors of BV Holding AG has resolved to exercise the conversion rights, subject to the closing of the Offering. Pursuant to the terms of the loan, the applicable conversion price is the Of
Slide 46: Diabetes Mellitus
Diabetes Mellitus Condition where the human body does not produce, or properly use insulin to convert sugar (glucose) into energy Type I Diabetes – Complete deficiency in insulin production and secretion – Onset in young age Type II Diabetes – Relative insulin deficiency; insulin resistance/insensit
Slide 47: Company Presentation – September 2004
Company Presentation – September 2004