Fagron Sa · EURONEXT:FAGR
Fagron Sa — H1 2016 Earnings Presentation
19 slides from Fagron Sa's earnings presentation, Aug 5, 2016
Slide 1: Fagron 2016 Semi-Annual Results
Fagron 2016 Semi-Annual Results Hans Stols, CEO Karin de Jong, CFO 5 August 2016
Slide 2: Headlines first half of 2016
Headlines first half of 2016 Turnover decreased by 3.1% (+2.2% at constant exchange rates) to € 210.2 million REBITDA decreased by 21.4% to € 45.6 million or 21.7% of turnover Successful completion of capital increase with proceeds of approximately € 219 million Net financial debt decreased to € 301
Slide 3: Financing – Long Term Waivers
Financing – Long Term Waivers Long Term Waivers received on 5 May 2016 Financial covenants were adjusted to give Fagron extra latitude which will decrease with every six-month test period In each test period after 30 June 2018, the levels of the financial covenants will return to the levels stipulat
Slide 4: Operational review first half of 2016
Operational review first half of 2016
Slide 5: Consolidated turnover
Consolidated turnover (x € 1,000) S1 2016 S1 2015 Total growth Total growth Organic Organic CER growth growth CER Fagron 205,678 211,497 -2.8% +2.6% -6.8% -1.6% HL Technology 4,559 5,500 -17.1% -14.0% -17.1% -14.0% Total 210,237 216,997 -3.1% +2.2% -7.1% -1.9% CER = constant exchange rates Positive
Slide 6: Turnover development
Turnover development Excluding HL Technology (in € 1,000) 11.501 211.497 1.378 16.868 360 205.678 9.227 11.417 Turnover S1 Europe* South America North America Rest of World Currency effect Acquisitions Turnover S1 2015 2016 * The sell off of a small compounding pharmacy in Marseille (France) had a n
Slide 7: Fagron Specialty Pharma Services
Fagron Specialty Pharma Services (x € 1,000) S1 2016 S1 2015 Evolution Turnover 74,192 65,397 13.4% REBITDA 15,752 17,960 -12.3% REBITDA-margin 21.2% 27.5% Organic turnover growth of 4.0% (+4.8% at CER) United States • Strong turnover growth in the sterile FSPS activities in the US • Turnover develo
Slide 8: Fagron Trademarks
Fagron Trademarks (x € 1,000) S1 2016 S1 2015 Evolution Turnover 25,073 25,551 -1.9% REBITDA 7,982 9,109 -12.4% REBITDA-margin 31.8% 35.6% Turnover growth at constant exchange rates of 9.7% Europe: Healthy turnover growth Brazil: Continued strong turnover growth (in local currency) United States: Ch
Slide 9: Fagron Essentials
Fagron Essentials (x € 1,000) S1 2016 S1 2015 Evolution Turnover 106,413 120,549 -11.7% REBITDA 20,972 29,791 -29.6% REBITDA-margin 19.7% 24.7% Turnover growth of -11.7% (-5.2% CER). Organic turnover growth of -14.1% (-7.7% CER) Europe: Turnover growth Brazil: Continued strong turnover growth (in lo
Slide 10: Financial review first half of 2016
Financial review first half of 2016
Slide 11: Consolidated – Gross Margin
Consolidated – Gross Margin Gross margin decreased from € 136.8 140 million to € 133.5 million (-2.4%) 138 136,8 136 Gross margin as percentage of turnover 134 133,5 increased with 50bps to 63.5% 132 130 128 126 124 122 120 S1 2015 S1 2016 10
Slide 12: Consolidated – Operating costs
Consolidated – Operating costs Operating costs increased by 11.5% to 100 € 87.9 million 90 87,9 78,9 80 Increase was primarily due to: 70 • Acquisition of AnazaoHealth (April 2015) 60 • Acquisition of ABC Chemicals (July 2015) 50 • Start-up costs related to the new facility in Wichita (US) 40 30 20
Slide 13: Consolidated – REBITDA
Consolidated – REBITDA REBITDA decreased to € 45.6 million or 70 21.7% of turnover 60 57,9 50 45,6 40 30 20 10 0 S1 2015 S1 2016 12
Slide 14: Consolidated – Depreciation & Amortization
Consolidated – Depreciation & Amortization Depreciation and amortization increased 12 from € 7.9 million to € 10.0 million 10,0 (+27.0%) 10 7,9 Accelerated depreciation at Freedom 8 Pharmaceuticals and Fagron Academy (€ 1.5 million) 6 4 2 0 S1 2015 S1 2016 13
Slide 15: Consolidated – Financial result
Consolidated – Financial result (excluding hedge result) Financial result amounted to -€ 11.7 16 million, a decrease of 21.0% 14,8 14 11,7 Financial costs increased by € 7.2 million 12 10 Financial income increased by € 10.3 8 million 6 Financial costs will be substantially lower 4 in the second hal
Slide 16: Consolidated – Net financial debt
Consolidated – Net financial debt 11.723 6.144 7.070 10.362 10.016 24.169 523.846 1.453 6.143 219.308 300.960 Net Debt decreased to € 301 million after both tranches of the capital increase Net financial debt/REBITDA-ratio amounted to 3.4 31 December Subsequent Refinancing Investments Payments Paid
Slide 17: Outlook 2016
Outlook1 2016 Turnover of at least € 415 million and REBITDA of between € 85 million and € 95 million 1 Based on estimated exchange rates (euro/US dollar 1.10 and euro/Brazilian real 3.83) 16
Slide 18: Q&A
Q&A
Slide 19: Disclaimer
Disclaimer Important information about forward-looking statements Certain statements in this presentation may be considered “forward-looking”. Such forward-looking statements are based on current expectations, and, accordingly, entail and are influenced by various risks and uncertainties. The Compan