STADA Arzneimittel — Investor Presentation (March 2015)
46 slides from STADA Arzneimittel's investor presentation, March 2015
Slide 1: STADA
STADA
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 (in the following “STADA”), has made every effort to make sure that this document contains correct a
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: Strategy and Outlook
YEARS ALL THE BEST y Strategy and Outlook
Slide 5: Strategy focus
Strategy focus Consumer focus: • Pushing of existing and acquired brands expansion of branded products • Higher share of branded products in adjusted operating profit of core segments (2014: 52%) Expansion of generics • Focus on markets with high share of self-pay patients (e.g. CIS, Asia, MENA) por
Slide 6: Sales split 2014
Sales split 2014 Sales of core segments 40% 60% Branded Products Generics (OTC and RX Specialty Pharmaceuticals) (RX and OTC) EBITDA margin adj.: 30.3% EBITDA margin adj.: 18.8% Company Presentation March 2015 www.stada.com Page 6
Slide 7: Expansion of the Branded Products segment
Expansion of the Branded Products segment 51% 52% 46% 40% 36% 37% 36% 32% 33% 27% 28% 26% 2009 2010 2011 2012 2013 2014 Share of Branded Products in sales1) Share of Branded Products in adjusted operating profit1) 1) of the two core segments Generics and Branded Products.. Company Presentation Mar
Slide 8: Innovations
Innovations Center of Excellence for branded products Expansion of biosimilar activities • Interdisciplinary team: market research, • Since 2008: own development Silapo® (epoetin zeta) marketing, R&D, production and corporate • 2014: introduction Grastofil® (Filgrastim) through development cooperati
Slide 9: Outlook for 2015
Outlook for 2015 Group: • Slight growth in sales adjusted for currency and portfolio effects • Substantial decrease in adjusted EBITDA and adjusted net income • Ratio of net debt, excluding further acquisitions, to adjusted EBITDA of nearly 3 Adjusted for special effects in connection with the trans
Slide 10: Assumptions for market regions for 2015
Assumptions for market regions for 2015 Operational influence factors • Decline in sales, operating profitability under Group average Germany • Stable sales of generics and brands in Germany, decline in export business due to reclassification • Sales growth, operating profitability at Group average
Slide 11: 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 12: Market Regions
y Market Regions YEARS
Slide 13: Sales 2014
Sales 2014 By market region Total group € 2,062.2 million Asia & Pacific +3% (+1%) € 94.1 million +52% (-0.4%) Germany € 447.3 million 4.5% -2% (-2%) 21.7% 27.4% CIS/Eastern Europe € 564.5 million -10% (-1%) 46.4 % Central Europe € 956.3 million +11% (+3%) (x) = Adjusted for changes in the Group por
Slide 14: Market region Germany
Market region Germany Generics sales Branded product sales Optimization of the German sales activities (in € million) (in € million) Total 2014: € 447.3 million (-2%) • STADAvita 0% +19% (Preventative arm) 300.5 300.5 • STADAGmbH 146.8 (Curative arm) 123.0 • Withdrawal of STADApharm from discount ag
Slide 15: Market region Central Europe
Market region Central Europe Generics sales Branded product sales Most important countries (in € million) (in € million) (Sales in € million) Total 2014: € 956.3 million (+11%, adjusted1) +3%) Generics +2% +35% Branded products 596.8 611.3 150.5 141.6 311.3 118.2 101.0 231.1 75.5 30.7 17.0 8.6 12.0
Slide 16: 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 2014: € 564.5 million (-10%, adjusted1) -1%) Generics Branded products -16% -5% 331.1 315.5 296.3 247.9 242.7 118.0 76.8 16.6 20.7 6.4 13.7 1.6 2013
Slide 17: Development of Russia
Development of Russia Generics sales Branded product sales Development of sales 2012-2014 (sell-out)2) (in € million) (in € million) (in billion ruble) Total 2014: € 360.7 million (-14%, adjusted1) -6%) STADA 17% Sales -29% -4% 13% 10% Growth 11% 10% 12% Retail-Market 252.3 242.7 Growth 166.5 17.53
Slide 18: Market region Asia & Pacific
Market region Asia & Pacific Generics sales Branded product sales Development Vietnam (in € million) (in € million) (in bn USD in CER2)) Total 2014: € 94.1 million (+52%, adjusted1) -0.4%) 5.000 20% +70% +40% 4.000 15% 3.000 58.0 10% 34.2 2.000 26.9 19.2 5% 1.000 0 0% 2013 2014 2013 2014 2014 2015e
Slide 19: Generics
y Generics YEARS
Slide 20: Leading position in key markets
STADA Leading position in key markets Belgium: #1 Eurogenerics Serbia: #1 Hemofarm Russia: #21) Nizhpharm, MAKIZ Germany: #3 ALIUD, STADApharm Spain: #2 Laboratorio STADA Italy: #5 EuroGenerici 1) Local suppliers/producers Company Presentation March 2015 www.stada.com Page 20
Slide 21: Generics
Generics Sales Adj. EBITDA Regional Sales Development (in € million) (in € million) -1% Asia & Pacific +7% € 58.0 million +69.6% (-2.0%) 4.7% Germany 1,227.9 1,217.7 € 300.5 million 0.0% (0.0%) CIS/Eastern Europe € 247.9 million 20.4% 24.7% 213.4 228.7 -16.3% (-4.4%) Central Europe 50.2% € 611.3 mil
Slide 22: Environment analysis
Environment analysis Growth markets health care & pharma Growth opportunities for generics • Global population growth • Progressive generics penetration • Aging society in industrialized countries • Continuous patent expirations, especially in • Medical progress biologicals with high sales potential
Slide 23: Patent expiration
Patent expiration New sales potential becoming available for generics competition (in € billion) Central Europe1) Small chemical entities only – excluding biologics 3.6 1.8 1.9 1.7 1.4 2015 2016 2017 2018 2019 Small chemical entities only – Germany2) excluding biologics 0.8 0.9 0.7 0.6 0.6 2015 2016
Slide 24: Still low penetration rates
Still low penetration rates Country Generics penetration (sales) Belgium 36% Italy 46% Switzerland 50% Spain 60% By comparison Germany 74% Source: STADA estimate at ex-factory prices based on market data provided by various international market research institutes for 2014 Company Presentation Mar
Slide 25: Branded Products
YEARS ALL THE BEST y Branded Products
Slide 26: Strategic focus on OTC
Strategic focus on OTC 20101) 20141) OTC corporation Sales in €m OTC corporation Sales in €m 1 Novartis 1,364 1 Novartis 1,550 2 Bayer 1,186 2 Bayer 1,183 3 Sanofi 1,081 3 Sanofi 1,176 4 Johnson & Johnson 1,010 4 Johnson & Johnson 957 5 GlaxoSmithKline 605 5 Teva 597 6 Teva 546 6 Reckitt Benckiser 5
Slide 27: Branded Products
Branded Products Sales Adj. EBITDA Regional Sales Development (in € million) (in € million) Asia & Pacific +7% € 26.9 million +14% Germany +40.4% (-0.4%) 3.4% € 146.8 million 800.5 +19.3% (+19.3%) 704.4 CIS/Eastern Europe 18.3% € 315.5 million -4.7% (+1.9%) 225.1 240.0 39.4% 38.9% Central Europe € 3
Slide 28: Strong brands in 2014
Strong brands in 2014 No. Branded Product Growth in % Sales in € million Indication 1. ApoGo® (RX) +18 51.3 Parkinson 2. Aqualor®1) (OTC) 40.3 Cough and cold 3. Grippostad® (OTC) -14 33.7 Cough and cold 4. Snup® (OTC) +34 33.0 Rhinitis 5. Ladival® (OTC) +63 26.1 Sun Protection 6. Vitaprost® (RX) -10
Slide 29: STADA branded products
STADA branded products Company Presentation March 2015 www.stada.com Page 29
Slide 30: Financials
y Financials YEARS
Slide 31: Growth components 2014
Growth components 2014 Group sales in € +6.9% -4.6% 2,003.9 +0.6% 2,062.2 2013 Organic1) Portfolio Currency 2014 1) Adjusted for changes in the Group portfolio and currency effects. Company Presentation March 2015 www.stada.com Page 31
Slide 32: Key earnings figures 2014
Key earnings figures 2014 EBITDA (in € million) 2014 vs. 2013 Net income (in € million) 2014 vs. 2013 reported adjusted1) reported adjusted2) +9% +4% +16% -47% 431.9 414.3 418.8 382.6 186.2 160.6 121.4 64.6 2013 2014 2013 2014 2013 2014 2013 2014 1) Adjusted for one-time special effects. 2) Adjusted
Slide 33: Net income adjustments in 2014
Net income adjustments in 20141) in € million 7.4 3.6 186.2 20.7 101.3 64.6 10.6 Reported net Delta additional Value Translation Extraordinary Measurement of Adjusted net income depreciation/amor- adjustments expense of income and derivative income tization and other significant expenses financial m
Slide 34: Development of sales and margins
Development of sales and margins 2.500 23 22 2.000 20.7 21.0 21 Adjusted1) EBITDA 20.0 margin in % 1.500 19.4 19.7 20 Sales in € million 1.000 18.3 19 18 500 17 0 16 2009 2010 2011 2012 2013 2014 • Expansion of self-pay portfolio • Shift to high margin product/country mix • Economies of scale effect
Slide 35: Analysis of the tax rate
Analysis of the tax rate Development of the adjusted tax rate Outlook adjusted tax rate 32.7% 24.2% <25% 2013 2014 2015e Significant reduction in the tax rate in 2014: • The improvement of the tax rate primarily results from a changed profit allocation; since the end of 2013, STADA Arzneimittel AG h
Slide 36: Stable balance sheet structure
Stable balance sheet structure Assets in € million Dec. 31, 2014 Dec. 31, 2013 A. Non-current assets 2,013.8 2,060.0 B. Current assets 1,321.7 1,353.2 Total assets 3,335.5 3,413.2 Equity and liabilities in € million Dec. 31, 2014 Dec. 31, 2013 A. Shareholders’ equity 903.4 1,010.1 B. Non-current lia
Slide 37: 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) 2010-2014 194.8 212.7 203.7 223.8 169.0 2010 2011 2012 2013 2014 Adjusted free cash flow1) (in € million) 2010-2014 149.6 157.4 135.0 123.3 133.3 2010 2011 2012 2013 2014 1) Free cash f
Slide 38: Balanced and stable financing structure
Balanced and stable financing structure Remaining maturities of financial liabilities due to banks as of December 31, 2014 in € million Corporate bond Credit Promissory notes 350.0 14.3 30.2 350.0 270.0 48.2 188.0 72.2 50.5 44.0 34.3 40.0 2015 2016 2017 2018 2019 > 2019 • In 2014, STADA was able to
Slide 39: Notes
Notes YEARS
Slide 40: Cooperation with Hetero Drugs Ltd., India (LOI) – significant synergies
Cooperation with Hetero Drugs Ltd., India (LOI) – significant synergies Synthetic active pharmaceutical ingredients • Obtaining low-cost active pharmaceutical ingredients or/and finished goods for existing products and new developments Dossiers • Access to numerous dossiers for the EU and, in sub-li
Slide 41: P&L details 2014
P&L details 2014 in € million 2014 in € 2014 in % 2013 in € 2013 in % million of Sales million of Sales Burden from additional depreciation/amortization Gross profit 991.8 48.1 979.4 48.9 from acquisitions and the CIS crisis Selling Strict cost control 458.4 22.2 488.2 24.4 expenses Income in connec
Slide 42: Expenses for capital expenditure
Expenses for capital expenditure Total expenses 2010-2013 € million 482.2 317.3 274.0 195.2 333.3 55.1 97.1 85.0 229.7 6.4 77.4 147.5 26.9 57.4 13.5 32.2 37.9 39.5 33.9 30.5 30.7 0.9 22.0 0.3 30.3 3.5 33.9 0.7 37.4 0.1 2010 2011 2012 2013 2014 Proceeds Purchase of consolidated companies and business
Slide 43: Dividend proposal
Dividend proposal Dividend per STADA common share in € 0.66 0.66 2014: € 40.0 million Dividend payout (2013: € 39.8 million Dividend policy Appropriate share of reported net income to shareholders 2013 2014 Pay-out ratio 62% 33% 2013 2014 Company Presentation March 2015 www.stada.com Page 43
Slide 44: Concentration of the production processes
Concentration of the production processes Share of production Share of production volume 2009 Own production locations volume 2014 Market region Germany 14% 34% Bad Vilbel (Germany) Pfaffenhofen (Germany) 12% Market region Central Europe Huddersfield1) (UK) Market region CIS/Eastern Europe Vrsac (Se
Slide 45: Share capital and shareholder structure
Share capital and shareholder structure December 31, 2014 STADA shares1)2) 60,626,700 Potential number of shares from warrants 2000/20153) 1,763,520 Amount of treasury shares 89,835 Current shareholder structure on Dec. 31, 2014 • 100% free float • Approx. 58% institutional investors • Current notic
Slide 46: Your contact
Your contact STADA Arzneimittel AG Investor Relations Vice President Investor Relations 61118 Bad Vilbel, Deutschland Dr. Markus Metzger Telefon: +49 (0) 6101 603-113 markus.metzger@stada.de Telefax: +49 (0) 6101 603-506 E-Mail: ir@stada.de www.stada.de Company Presentation March 2015 www.stada.co
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