Skan Group Ag · SIX:SKAN
Skan — H1 2023 Earnings Presentation
20 slides from Skan's earnings presentation, Aug 22, 2023
Slide 1: Presentation of the HY 2023 Financial Results
SKAN Group AG Presentation of the HY 2023 Financial Results 22 August 2023
Slide 2: Disclaimer
SKAN Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. Th
Slide 3: Agenda
SKAN Agenda 1. Overview of HY 2023 Thomas Huber (CEO) 2. 3. 4. 22 August 2023 SKAN Group AG Presentation of the HY 2023 Financial Results 3
Slide 4: Highlights of the first half year
SKAN Highlights of the first half year Order Intake Net Sales Record high order backlog and book-to-bill ratio at 1.3 provide good in CHF million in CHF million visibility. 175.3 139.7 Order intake normalized at a continued high level in the first six -33.4%(1) +15.6%(1) months of 2023. Overall, the
Slide 5: Both segments progressing well
SKAN Both segments progressing well Equipment & Solutions The segment has driven the strategic initiatives to develop integrated process systems and increase the level of equipment standardization. For the standardization initiative, a dedicated team has been assigned. Both projects are developing a
Slide 6: New drugs increase consumption of AT-Closed Vials
New drugs increase consumption of AT-Closed Vials® SKAN Five AT filled drugs on the market: Besides the expansion of the installed equipment base, which requires maintenance, requalification and spare Customer Product area Phase parts, the volume in the Services & Consumables segment was driven by h
Slide 7: Agenda
SKAN Agenda 1. 2. Financial Results HY 2023 Burim Maraj (CFO) 3. 4. 22 August 2023 SKAN Group AG Presentation of the HY 2023 Financial Results 7
Slide 8: Order intake momentum has stabilized at a high level
SKAN Order intake momentum has stabilized at a high level Order intake Order intake by regions Comments (CHFm) (CHFm) Despite the decline, demand has 1.3x 1.5x 2.2x 1.3x stabilized at a high level and is in line with our internal forecasts and 2.7 5.7 expectations. (1.6%) (3.2%) +67.9% - 7.6 With a
Slide 9: Robust growth in net sales and record order backlog
SKAN Robust growth in net sales and record order backlog Net sales Order backlog Comments (CHFm) (CHFm) Net sales grew by +15.6% y-o-y Adjusted for constant exchange rates (CER), growth reached around 18.7%, +15.6% +6.8% positioning it at the upper end of our 139.7 384.6 guidance range. 360.1 Both s
Slide 10: Effective cost control and substantial margin expansion
SKAN Effective cost control and substantial margin expansion Expenses EBITDA Comments (CHFm) (CHFm and margin in %) EBITDA grew 74.1% to CHF 18.6m +90 +97 8.8% 13.3% in, corresponding to an EBITDA margin of 13.3%. +74.1% Following factors impacted the margin: 120.9 139.7 18.6 Better balance between
Slide 11: Segment Equipment & Solutions (E&S)
SKAN Segment Equipment & Solutions (E&S) Order intake Net sales EBITDA Comments (CHFm) (CHFm and as of % of total net sales) (CHFm and margin in %) 192.6 199.3 340.5 349.5 74.6% 73.8% 5.3% 9.2% Following a pronounced catch- up effect in the preceding year, driven by increased customer +85.9% investm
Slide 12: Segment Services & Consumables (S&C)
SKAN Segment Services & Consumables (S&C) Order intake Net sales EBITDA Comments (CHFm) (CHFm and as of % of total net sales) (CHFm and margin in %) 16.9 21.6 26.9 35.1 25.4% 26.2% 19.2% 24.7% Order intake grew +27.3% to reach CHF 47.1m in the first half of 2023. +27.3% +19.5% +53.8% 19.5% growth in
Slide 13: Negative NWC due to order intake growth over the last years
SKAN Negative NWC due to order intake growth over the last years Cash flow Net-working-capital (NWC) Comments (CHFm) (CHFm and in %) Cash flow was negative at CHF -13.1m, particularly as loans were repaid and the dividend distributed. 25.0 In addition, inventories of critical -13.1 components were h
Slide 14: Strong balance sheet & finance structure
SKAN Strong balance sheet & finance structure Balance sheet as of 30th June 2023 Comments (CHFm) SKAN Group posts a net cash position of CHF 90.6m as of 30th June 2023 and 397.2 397.2 is thus very well positioned to finance future growth. The change in non-current financial debt Other current assets
Slide 15: Agenda
SKAN Agenda 1. 2. 3. Outlook 2023 Thomas Huber (CEO) 4. 22 August 2023 SKAN Group AG Presentation of the HY 2023 Financial Results 15
Slide 16: Century of biology: Shift toward injectable biotech drugs drives need for aseptic process solutions
SKAN Century of biology: Shift toward injectable biotech drugs drives need for aseptic process solutions Top 10 medicines 2005 Top 10 medicines 2020 Eylea Humira Lipitor Zoloft Regeneron, Bayer AbbVie Pfizer Pfizer Keytruda Stelara Merck & Co. Johnson & Johnson Nexium Plavix Astra Zeneca Sanofi Revl
Slide 17: Confident market and business outlook
SKAN Confident market and business outlook Demand momentum in our market is expected to continue at a high level. Main drivers are: The underlying growth of the global (bio)pharmaceutical market; The reinforcing trend towards injectable drugs (three quarters of the drugs in development are now desig
Slide 18: Guidance
SKAN Guidance Metric 2023 Targets (1) Mid-Term Outlook Group net sales growth Mid- to upper teens Mid- to upper teens Segment net sales growth(2) E&S S&C E&S S&C Gradually increase profitability level to upper EBITDA margin 13 - 15% teens in the mid-term. Potential for further increase beyond mid-te
Slide 19: Together always one step ahead!
SKAN Together always one step ahead! 19
Slide 20: Abbreviations and Definitions
SKAN Abbreviations and Definitions Alternative Financial Performance Measures (APM) EBITDA: Operating result (EBIT) plus depreciation, amortisation. Net working capital (NWC): Total current assets (excluding cash and cash equivalents) minus trade payables, advance payments from EBITDA margin: EBITDA