STADA Arzneimittel — Investor Presentation (April 2016)
49 slides from STADA Arzneimittel's investor presentation, April 2016
Slide 1: STADA Corporate Presentation
STADA Corporate Presentation Investor Relations, April 2016
Slide 2: General information
General information By making use of this document the reader acknowledges and agrees to the following: We accept no liability arising from the use of this document. STADA Arzneimittel AG, Bad Vilbel (hereinafter “STADA”), has made every effort to make sure that this document contains correct and up
Slide 3: Forward-looking statements
Forward-looking statements This STADA Arzneimittel AG presentation (hereinafter "STADA") contains certain statements regarding future events that are based on the current expectations, estimates and forecasts on the part of the company management of STADA as well as other currently available informa
Slide 4: History
History 1895 Founded in Dresden as a pharmacists' cooperative 1970 Stock corporation with restricted registered common shares for pharmacists only 1975 Market entry in the young generics market 1986 Beginning of internationalization 1998 Start of trading on the stock exchange 2001 Inclusion in MDAX
Slide 5: Strategy and Outlook
Pharmaceuticals y Strategy and Outlook
Slide 6: Strategy for continuous growth and constant value creation
Strategy for continous growth and constant value creation Consumer focus: • Aspiring higher share of branded products in adjusted operating profit of core segments (2015: 49%) based on both organic growth and expansion of branded products acquisitions Expansion of generics • Focus on markets with hi
Slide 7: Sales split 2015
Sales split 2015 Sales of core segments 41% 59% Branded Products Generics (OTC and RX Specialty Pharmaceuticals) (RX and OTC) Adjusted EBITDA margin: 25.8% Adjusted EBITDA margin: 19.1% Company Presentation April 2016 Investor Relations Page 7
Slide 8: Strategic and financial plan: Focus on brands with existing generics business
Strategic and financial plan: Focus on brands with existing generics business Generics Generics 33% Generics Shift to higher 51% value creation 64% Shift to higher value creation Brands Brands 67% Brands 49% 36% 2010 2015 2018 + Profit share1) • Shift in business portfolio mix • Brands sales growth
Slide 9: Product pipeline (branded products)
Product pipeline (branded products) Center of OTC-Excellence for branded products • Think tank for the entire STADA Group • Multidisciplinary team: market research, consumer marketing, OTC branding, R&D, production and business development • Objective: long-term pipeline and portfolio development in
Slide 10: Product pipeline (biosimilars)
Product pipeline (biosimilars) Portfolio expansion • Comprehensive experience with the approval process for EMA resulting from • Epoetin zeta (Silapo®) – since 2008 the development of Epo • Filgrastim (Grastofil®) – since 2014 • Exploiting opportunities with adequate (Apotex) consideration of risks
Slide 11: Product pipeline (traditional generics)
Product pipeline (traditional generics) Full pipeline • Introduction of 578 individual products worldwide in 2015 (626 in 2014) • Over 1,300 ongoing approval procedures for more than 150 active pharmaceutical ingredients in over 55 countries worldwide • Development partnerships increase pipeline sec
Slide 12: Assumptions for market regions for 2016
Assumptions for market regions for 2016 Operational influence factors • Sales growth, operating profitability at Group average • Positive development of the top markets of UK, Belgium, Italy and Spain Central Europe with relatively high profitability • UK: strong dynamic at Thornton & Ross and Brita
Slide 13: Outlook for the Group
Outlook for the Group 2016 • Slight growth in sales adjusted for currency and portfolio effects • Slight growth in adjusted EBITDA and adjusted net income • Ratio of net debt, excluding further acquisitions, to adjusted EBITDA at a level of nearly 3 Q1/2016 Subdued development • Strong currency weak
Slide 14: Market Regions
y Market Regions
Slide 15: Sales 2015 by market region
Sales 2015 By market region Total group € 2,115.1 million +3% (+4%) Asia/Pacific & MENA € 146.2 million +55% (+32%) 6.9% Central Europe Germany € 999.4 million € 459.6 million +5% (-3%) +3% (+3%) 21.7% 47.3% 24.1% CIS/Eastern Europe € 509.9 million -10% (+12%) (x) = Adjusted for changes in the Group
Slide 16: Market region Central Europe
Market region Central Europe Generics sales Branded product sales Most important countries (in € million) (in € million) (sales in € million) Total sales 2015: € 999.4 million (+5%, adjusted1) -3%) Generics -1.7% Branded products 611.3 600.7 +18.7% 369.5 168.0 149.0 311.3 107.0 95.0 80.2 40.2 26.9 1
Slide 17: Market region CIS/Eastern Europe
Market region CIS/Eastern Europe Generics sales Branded product sales Most important countries (in € million) (in € million) (sales in € million) Total 2015: € 509.9 million (-10%, adjusted1) +12%) Generics Branded products -14.7% -5.8% 315.5 297.2 247.9 212.2 211.5 83.6 73.6 19.9 19.6 21.1 5.8 2.7
Slide 18: Development in Russia
Development in Russia Generics sales Branded product sales Measures in the currently difficult market environment (in € million) (in € million) Total 2015: € 295.8 million (-18%, adjusted1) +8%) -29% -13% • Balanced portfolio 242.7 • No delay in the launch of new products 212.2 • Selective price inc
Slide 19: Market region Germany
Market region Germany Generics sales Branded product sales Strategic initiatives (in € million) (in € million) Total sales 2015: € 459.6 million (+3%) +8.6% -9.2% • Transfer of the 326.3 German discount 300.5 business to ALUID Pharma 146.8 133.3 • Strengthening of the aesthetics area 2014 2015 2014
Slide 20: Market region Asia/Pacific & MENA
Market region Asia/Pacific & MENA Generics sales Branded product sales Development Vietnam (in € million) (in € million) (in million EUR in CER2)) Total 2015: € 146.2 million (+55%, adjusted1) +32%) 5.000 20% +36.2% +99.1% 79.0 4.000 15% 58.0 53.6 3.000 10% 2.000 26.9 1.000 5% 0 0% 2014 2015 2014 20
Slide 21: Branded Products
y Branded Products
Slide 22: STADA branded products
STADA branded products Company Presentation April 2016 Investor Relations Page 22
Slide 23: Wide range of product categories
Wide range of product categories Cough and Cold Skin Treatments / Vitamins, Minerals & Pain Others Cosmetics Nutritional Supplements (Aqualor®) (Levomecol®) (Vitaprost®) Company Presentation April 2016 Investor Relations Page 23
Slide 24: Strategic focus on OTC
Strategic focus on OTC 20111) 20151) OTC corporation Sales in € million OTC corporation Sales in € million 1 Bayer 1,257 1 Bayer 1,224 2 Novartis 1,125 2 Novartis 1,193 3 Sanofi 1,087 3 Sanofi 1,120 4 Johnson & Johnson 966 4 Johnson & Johnson 945 5 GlaxoSmithKline 780 5 GlaxoSmithKline 734 6 TEVA 53
Slide 25: Branded Products 2015
Branded Products 2015 Sales Adj. EBITDA Regional sales development (in € million) (in € million) Asia/Pacific & MENA +7% € 53.6 million +99.1% (+71.3%) 800.5 853.6 -8% 6.3% Central Europe Germany € 133.3 million € 369.5 million -9.2% (-9.2%) +18.7% (+0.5%) 15.6% 43.3% 240.0 220.1 CIS/Eastern Europe
Slide 26: Top 10 brands in 2015
Top 10 brands in 2015 No. Branded Product Growth in % Sales in € million Indication ® 1. APO-go (RX) +23 62.9 Parkinson’s 2. Aqualor® (OTC) +6 42.9 Cough and cold 3. Grippostad® (OTC) +25 42.2 Cough and cold 4. Snup® (OTC) -9 30.0 Rhinitis 5. Vitaprost® (OTC) +5 21.7 Prostate hyperplasia 6. Fultium®
Slide 27: Strong sales growth in the branded products area in 2015
Strong sales growth in the branded products area1) in 2015 Branded product sales: +7% (adj. +9%) € 212.2 million € 168.0 million € 122.6 million € 40.2 million € 30.5 million € 26.9 million € 22.7 million € 21.1 Italy million Russia UK Vietnam -12.6% Germany +30.9% USA +42.1% +25.4% -1.1% +43.0% Pol
Slide 28: Brand acquisitions
Brand acquisitions Acquisitions 2014/2015 • Claire Fisher (Cosmetics) • Aqualor® (Cough and cold) • Flexitol® (Dermatological hand and foot care) • Fultium® (Vitamin D3 deficiency) • AndroDoz® and NeroDoz® (Men's health) • Rydex® Immun-Power* (Nutritional supplement) • DAOSIN® (Enzymatic food intole
Slide 29: Generics
y Generics
Slide 30: Leading position in key markets
STADA Leading position in key markets Agility, flexibility and long- Belgium: #1 Eurogenerics standing expertise to manage heterogenous Serbia: #1 Hemofarm markets and complex portfolios is our plus – Russia: #21) Nizhpharm, MAKIZ supported by a competitive cost basis and the highest Germany: #3 ALI
Slide 31: Generics 2015
Generics 2015 Sales Adj. EBITDA Regional Sales Development (in € million) (in € million) -0% Asia/Pacific & MENA € 79.0 million +36.2% (+14.5%) 1,217.7 1,217.5 6.5% CIS/Eastern Europe € 211.5 million Central Europe -14.7% (+1.2%) € 600.7 million +2% 17.4% -1.7% (-3.3%) 232.8 49.3% 228.7 Germany 26.8
Slide 32: Environment analysis
Environment analysis Growth markets health care & pharma Growth opportunities for generics • Global population growth • Progressive generics penetration • Ageing society in industrialized countries • Continuous patent expirations, especially in • Medical progress biologicals with high sales potentia
Slide 33: Finance
y Finance
Slide 34: Growth components 2015
Growth components 2015 Group sales: € 2,115.1 million (+2.6%) +4.0% +1.8% -3.2% 2,115.1 2,062.2 2014 Organic1) Portfolio Currency 2015 1) Adjusted for changes in the Group portfolio and currency effects. Company Presentation April 2016 Investor Relations Page 34
Slide 35: Key earnings figures 2015
Key earnings figures 2015 EBITDA (in € million) 2015 vs. 2014 Net income (in € million) 2015 vs. 2014 reported adjusted1) reported adjusted1) -10% 431.9 389.4 -10% 418.8 377.1 -11% +71% 186.2 165.8 110.4 64.6 2014 2015 2014 2015 2014 2015 2014 2015 1) Adjusted for one-time special effects. Company P
Slide 36: Net income adjustments in 2015
Net income adjustments in 20151) in € million 29.1 2.9 4.1 165.8 16.9 110.4 10.6 Reported net Delta additional Translation Value Measurement Various Adjusted net income write-off expense of adjustments of derivative extraordinary income effects/other significant following financial expenses and meas
Slide 37: Development of sales and margins
Development of sales and margins 2011-2015 2.500 23 22 2.000 20.7 21.0 21 20.0 1.500 19.7 20 1.000 18.4 19 18 500 17 0 16 2011 2012 2013 2014 2015 Adjusted1) EBITDA margin in % Sales in € million • Expansion of self-pay portfolio • 2015 burdened by CIS crisis and temporary • Shift to high margin pro
Slide 38: Tax efficiency
Tax efficiency Development of the adjusted tax rate Outlook adjusted tax rate 24.2% 22.0% ≤ 25% 2014 2015 2016e Significant reduction in the tax rate in 2015: • In 2015, the reported tax rate decreased to 22.0% (previous year: 24.2%), which was primarily a result of a changed profit allocation. Comp
Slide 39: Balance sheet structure
Balance sheet structure Assets in € million Dec. 31, 2015 Dec. 31, 2014 A. Non-current assets 2,032.3 2,013.8 B. Current assets 1,255.1 1,321.7 Total assets 3,287.4 3,335.5 Equity and liabilities in € million Dec. 31, 2015 Dec. 31, 2014 A. Shareholders’ equity 1,018.5 903.4 B. Non-current liabilitie
Slide 40: Financing structure
Financing structure Remaining maturities of financial liabilities due to banks as of December 31, 2015 in € million Corporate bond Credit Promissory notes 86.7 350.0 300.0 295.0 188.0 53.7 44.0 21.6 20.0 2016 2017 2018 2019 > 2019 • In the first quarter of 2015, STADA was able to secure a corporate
Slide 41: Cash flow from operating activities and adjusted free cash flow
Cash flow from operating activities and adjusted free cash flow Cash flow from operating activities (in € million) 2011-2015 311.7 223.8 212.7 203.7 169.0 2011 2012 2013 2014 2015 Adjusted free cash flow1) (in € million) 2011-2015 212.4 123.3 149.6 133.3 157.4 2011 2012 2013 2014 2015 1) Free cash f
Slide 42: Expenses for capital expenditure
Expenses for capital expenditure Total expenses 2012-2014 € million 482.4 317.3 Company 274.0 333.3 190.0 acquisitions 55.1 229.7 56.8 Product acquisitions 77.4 147.5 32.3 13.5 Other 71.7 100.9 investments 74.1 71.4 2012 2013 2014 2015 Share of consolidated companies and business combinations Procee
Slide 43: Notes
Notes
Slide 44: P&L details 2015
P&L details 2015 in € million 2015 in € 2015 in % 2014 in € 2014 in % million of sales million of sales Gross profit 1.013.4 47.9 991.8 48.1 Burdens through CIS crisis Investments in the British and Italian Selling expenses 482.6 22.8 458.4 22.2 markets Previous year: Income in connection General an
Slide 45: Dividend proposal
Dividend proposal Dividend per STADA common share in € 0.66 0.70 2015: € 43.6 million Dividend payout (2014: € 40.0 million Dividend policy Appropriate share of reported net income to shareholders 2014 2015 Pay-out ratio 62% 39% 2014 2015 Company Presentation April 2016 Investor Relations Page 45
Slide 46: Concentration of the production processes
Concentration of the production processes Share in production Share in production volume 2009 Own production locations volume 2015 Market region Germany 13% 34% Bad Vilbel (Germany) Pfaffenhofen (Germany) 12% Market region Central Europe Huddersfield1) (UK) Market region CIS/Eastern Europe Vrsac (Se
Slide 47: Share capital and shareholder structure
Share capital and shareholder structure December 31, 2015 STADA shares1)2) 62,342,440 Amount of treasury shares 87,259 Shareholder structure as of Dec. 31, 2015 • 100% free float • Approx. 68% institutional investors • Current notices with regard to the exceeding of the legal reporting threshold of
Slide 48: Responsibility and sustainability
Responsibility and sustainability Code of Conduct Markets and products Society • STADA mission statement: care for people’s • Strengthening of employee well-being through fitness health and well-being. and health care • Generics contribute to efficient and affordable • High share of women in managem
Slide 49: Your contact
Your contact STADA Arzneimittel AG Investor Relations Vice President Investor Relations 61118 Bad Vilbel, Germany Dr. Markus Metzger Telephone: +49 (0) 6101 603-113 markus.metzger@stada.de Fax: +49 (0) 6101 603-506 E-mail: ir@stada.de www.stada.de Company Presentation April 2016 Investor Relations
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