Medmix Ag · SIX:MEDX
Medmix — H1 2023 Earnings Presentation
26 slides from Medmix's earnings presentation, Jul 20, 2023
Slide 1: Half-year results 2023
Half-year results 2023 Girts Cimermans CEO, Jennifer Dean CFO July 20, 2023 Providing innovative solutions to help people live healthier and more confident lives medmix CONFIDENTIAL
Slide 2: Disclaimer and other important notes
Disclaimer and other important notes This presentation contains forward-looking statements that are based on management’s current assumptions and expectations concerning future developments, including but not limited to, projections of financial developments, market activities or future performance
Slide 3: Business Review
Business Review Girts Cimermans CEO medmix CONFIDENTIAL
Slide 4: Half-year 2023 highlights
Half-year 2023 highlights Solid recovery underway Healthcare Adjusted Revenues EBITDA Group Revenues 49.7 89.2 248.1 -11% vs. H1 2022 -17% vs. H1 2022 +10% vs. H2 2022 +10% vs. H2 2022 +1% vs. H1 2022 Industry +12% vs. H2 2022 Market Segment Business Area Consumer & Industrial Revenues New Plant Gro
Slide 5: Revenues and growth by market segment
Revenues and growth by market segment Healthcare BA Consumer & Industrial BA ("C&I") Drug Dental Surgery Industry Beauty Delivery 53.7 -24% 26.9 +18% 8.6 +28% 72.7 -8% 86.3 +30% ( +1% vs. H2 2022 ) ( +21% vs. H2 2022 ) ( +42% vs. H2 2022 ) ( +6% vs. H2 2022 ) ( +21% vs. H2 2022 ) • Tough H1 2022 com
Slide 6: Group and Business Area revenues
Group and Business Area revenues Good progress being made after H2 2022 dip 250 • Group revenues almost matching record half-year of H1 2022 200 • Double-digit group organic growth 150 vs. H2 2022: +12%. • Consumer & Industrial with record 100 half-year revenues thanks to Beauty • Healthcare tempora
Slide 7: Dental market segment revenues
Dental market segment revenues Muted order patterns expected to normalize during H2 2023 90 • Muted H2 2022 demand continuing 75 into H1 2023 after record H1 2022 • Post-covid customer concerns re 60 supply chain bottlenecks and price increases encouraged overstocking 45 • Destocking effects likely
Slide 8: Drug Delivery market segment revenues
Drug Delivery market segment revenues Strong device and project pipeline continues to deliver 30 • Record half-year revenues 25 • Double-digit organic growth: +18% year-on-year 20 +21% vs. H2 2022 15 • Strong growth to continue: several project launches over next 18 months 10 • PiccoJectTM continuin
Slide 9: Surgery market segment revenues
Surgery market segment revenues Strong growth trajectory continues 9.0 • Record half-year revenues 7.5 • Double-digit organic growth: +28% year-on-year 6.0 +42% vs. H2 2022 4.5 • Successful tissue bank conversion main growth driver along with 3.0 product launches • Strong growth expected to continue
Slide 10: Beauty market segment revenues
Beauty market segment revenues Successful execution of value-added expansion 90 • Highest half-year revenues in 5 years 75 • Innovation-led organic growth: +30% year-on-year 60 +21% vs. H2 2022 45 • Several major customer launches after lifting of Covid restrictions 30 • Incremental Micro Bristle Ap
Slide 11: Industry market segment revenues
Industry market segment revenues Revenue potential limited until H2 2023 production ramp-up 90 • Low point passed in H2 2022 75 • Revenue recovery underway -8% organic year-on-year1 60 +6% organic vs. H2 2022 45 • No significant customers lost despite closing and relocating largest factory 30 • Able
Slide 12: Industry production recovery
Industry production recovery Everything everywhere all at once Mitigating (from April 2022) Relocating (from July 2022) Customer loyalty and trust Task force meeting 3x / week Future-proofing (from now) Relocation team identifying Intensive sales planning processes, personnel, plant Showcase Industr
Slide 13: Industry production recovery
Industry production recovery Empty shell to functioning factory within six months 13 medmix CONFIDENTIAL
Slide 14: ESG at medmix in H1 2023
ESG at medmix in H1 2023 Sustainability-focused innovation | New gender equality initiative medmix Group Beauty Industry • 70% reduction vs. 2019 achieved in medmix-own1 carbon footprint • Accepted into UN Global Compact • Signatories to 7 • New sustainable shadow • Launch in June 2023 of UN Women’s
Slide 15: Financial Review
Financial Review Jennifer Dean CFO medmix CONFIDENTIAL
Slide 16: H1 2023 results – key figures
H1 2023 results – key figures Stalled growth, adverse mix and capex depress KPIs in short term H1’23 vs. H1’22 vs. H2’22 • Group revenues up on organic basis Revenue 248.1 -1.0% +9.5% • Lower volumes in Dental and Organic revenue growth – +1.3% +12.2% Industry weighing on gross profit BA gross profi
Slide 17: Healthcare BA gross profit
Healthcare BA gross profit Dental destocking effect stabilising • Dental segment (60% of revenues) 60 driving Healthcare gross profit • Lower profitability over past 12 months 45 due to Dental destocking • Gross profit recovery already visible: 30 -15% year-on-year, -200 bps +10% vs. H2 2022, +160 b
Slide 18: Consumer & Industrial BA gross profit
Consumer & Industrial BA gross profit Profit improving ahead of Spain ramp-up • Value-added Beauty innovations 60 supporting BA gross profit in H1 2023: -3% year-on-year, -350 bps 45 +11% vs. H2 2022, +20 bps • Future profit recovery coming from 30 Industry market segment, in 2 phases: H2 2023: volu
Slide 19: Adjusted Group EBITDA
Adjusted Group EBITDA Increasing sequential EBITDA with margin held steady • EBITDA down vs. H1 2022 but up vs. 60 H2 2022 with margin held steady: 26% -17% year-on-year, -400bps 45 22% +10% vs. H2 2022, ±0 bps • H1 2023 impacted by lower Dental 30 18% volumes, limited Industry capacity 15 • Improve
Slide 20: Adjusted EBITDA bridge
Adjusted EBITDA bridge Adverse mix weighing on EBITDA in short term 24.0% 6.7 60.1 (23.9) (8.4) 20.0% 17.4 0.4 49.7 (2.6) (15.4) Poland deconsolidation 2022 (2.5) Other 2022 7.5 Industry recovery 2023 2.0 Other 2023 Adjusted Volume Margin Operating OPEX (Poland Change in Other items Adjusted EBITDA
Slide 21: Adjusted EBITDA to net income
Adjusted EBITDA to net income One-time items constraining net result 20.0% 49.7 (7.5) Industry recovery (14.9) (2.0) M&A, sanctions, etc. (0.2) Restructuring (10.7) (9.7) 5.8% 14.5 (5.5) 2.9% (1.7) 7.3 Adjusted Depreciation Amortisation Non-operating EBIT Financial Income tax Net income EBITDA expen
Slide 22: Net income to free cash flow
Net income to free cash flow Planned higher inventories and one-time capex weighing on cash flow 9.0 Valencia, Atlanta 11.2 Others 10.7 (16.0) 6.2% 14.9 (1.6) 15.3 2.9% (20.2) 7.3 (2.0%) Net income Depreciation Amortisation Working Interest & Operating cash Net capital -4.9 H1 2023 capital and taxat
Slide 23: Outlook
Outlook medmix CONFIDENTIAL
Slide 24: Outlook
Outlook FY 2023 guidance Mid-term outlook1 • Organic revenue growth 5% to 7%2 • Organic revenue growth 8%2 • Adjusted EBITDA margin of around • Adjusted EBITDA margin of 30%2 22% (vs. 23% previously) Organic growth guidance range confirmed due Over longer term, medmix benefits from to expected norma
Slide 25: Q&A
Q&A Girts Cimermans CEO Jennifer Dean CFO medmix CONFIDENTIAL
Slide 26: Your Investor Relations contact
Your Investor Relations contact Sheel Gill Head of Investor Relations, medmix Phone: +41 41 723 73 57 Mobile: +41 79 346 41 72 E-mail: investorrelations@medmix.com medmix Group AG Neuhofstrasse 20 6340 Baar Switzerland medmix CONFIDENTIAL