Animalcare Group Plc · LSE:ANCR
Animalcare — H1 2020 Earnings Presentation
15 slides from Animalcare's earnings presentation, Sep 29, 2020
Slide 1: Animalcare Group H1 Interims
ANIMALCARE GROUP H1 INTERIMS “We have shown exceptional resilience in the face of unprecedented conditions enabling the Group to continue to invest in growth” Jenny Winter Chief Executive Officer Chris Brewster Chief Financial Officer
Slide 2: Disclaimer
DISCLAIMER The information contained in this confidential document (“Presentation”) has been prepared by the Company. It has not been verified by the Company and is subject to material updating, revision and further amendment. This Presentation has not been approved by an authorised person in accord
Slide 3: Continued Execution of Growth Strategy
CONTINUED EXECUTION OF GROWTH STRATEGY Strong Key Growth Business Innovative finances leadership portfolio development pipeline Financial Organisation for Focused portfolio in Work with partners to Launch new products sustainability through success; leadership key therapy areas in build a pipeline o
Slide 4: Delivering on Strategic Commitments in First Half
DELIVERING ON STRATEGIC COMMITMENTS IN FIRST HALF Strategic and operational achievements STRONG FINANCES Resilient performance in H1 at higher end of Board’s range of pandemic scenario modelling BUSINESS DEVELOPMENT Agreement with Kane Biotech signed post period end: Animalcare gains access to attra
Slide 5: H1 2020 Financial Highlights
H1 2020 FINANCIAL HIGHLIGHTS
Slide 6: H1 2020: Resilience in Face of COVID-19 Disruption
H1 2020: RESILIENCE IN FACE OF COVID-19 DISRUPTION Financial performance at the higher end of pandemic scenario modelling range Revenue Underlying* EBITDA £34.5m £6.6m 2019 2019 £36.1m £6.8m ↓4.4% ↓2.4% 2020 2020 £34.5m £6.6m Underlying EBITDA margin 19.1%, up 0.4% on prior year Net debt Underlying
Slide 7: Revenue: Diversity of Portfolio Supports Resilience
REVENUE: DIVERSITY OF PORTFOLIO SUPPORTS RESILIENCE Production Animals revenues increase, Companion Animals sector disrupted by pandemic restrictions H1 2020 revenue % by country H1 2020 revenue % by segment v H1 2019 29% Spain ↑1% Equine & other Production 4% 12% UK ↓33% ↓10% ↑13.1% Animals 1% 15%
Slide 8: Net Debt and Cash Conversion Over First Six Months
NET DEBT AND CASH CONVERSION OVER FIRST SIX MONTHS Operational efficiency contributes to stable financial platform Net debt position largely maintained Cash conversion • Marginal increase in net debt, up £0.3m versus • Cash conversion rate of 56.9% reflects: 2019 year-end o Effects of COVID-19 disru
Slide 9: Evidence of Recovery but COVID-19 Continues to Disrupt
EVIDENCE OF RECOVERY BUT COVID-19 CONTINUES TO DISRUPT Confidence in future despite pandemic supports continued investment in growth Q1 Q2 Q3 Q4 Animalcare enters Marked downturn Return to more Uncertainty prevails normal customer over shape and • Economic and 2020 in strong in demand seen activity
Slide 10: Advancing Our Growth Strategy
ADVANCING OUR GROWTH STRATEGY
Slide 11: Kane Biotech Deal Supports Business Development Focus
KANE BIOTECH DEAL SUPPORTS BUSINESS DEVELOPMENT FOCUS A two-pronged business development approach to drive growth ambitions REINFORCES portfolio through licensing deal for existing oral care products DIFFERENTIATES through development of new biofilm treatments 1 REINFORCE Maintain competitiveness Al
Slide 12: Kane Biotech: Delivering on Our Growth Strategy
KANE BIOTECH: DELIVERING ON OUR GROWTH STRATEGY Access to attractive biofilm products today, influence over products of the future Share of profits Global revenues CA$3m over 4 £ Revenues from animal years to acquire health spun out one-third stake to STEM in STEM* Fee of up to CA$2m plus royalties
Slide 13: Further Growth Opportunities
FURTHER GROWTH OPPORTUNITIES Maximising value as differentiated COX 2 inhibitor project matures Differentiated pipeline Commercialisation • Long-acting selective COX 2 inhibitor (E-6087) Differentiated treatments such as E-6087 call for • First NCE for Animalcare Group filed using comprehensive appr
Slide 14: Summary
SUMMARY
Slide 15: H1 2020 Summary
H1 2020 SUMMARY Continue to deliver on growth strategy with Kane Biotech business development deal post period end Resilient performance in H1, at higher end of range of pandemic modelling Financial position remains strong supporting investment in growth and payment of interim dividend for 2020 Evid