STADA Arzneimittel — Investor Presentation (August 2014)
44 slides from STADA Arzneimittel's investor presentation, August 2014
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 (subsequently "STADA") contains certain statements regarding future events (as understood in the U.S. Private Securities Litigation Reform Act of 1995) that express the beliefs and expectations of management. Such statements are base
Slide 4: Strategy and Outlook
y Strategy and Outlook
Slide 5: Focus on strategy
Focus on strategy • Expansion of leading brands, cementing the strong position in pharmacies Consumer focus • Limited governmental regulation allows for increased prices • Goal: 2/3 adjusted operating profit of the two core segments out of Branded Products (1-6/2014: 51%) • Focus on growth markets w
Slide 6: Sales split 2013
Sales split 2013 Sales of core segments 36% 64% Branded Products Generics (incl. Branded Generics) EBITDA margin adj.: 31.8 % EBITDA margin adj.: 17.3% 41% 59% 86% 14% RX Specialty OTC RX OTC Pharmaceuticals www.stada.com Page 6 Company presentation August 2014
Slide 7: Branded Products contribute 51% to adjusted operating profit
Branded Products contribute 51% to adjusted operating profit1) 51% 51% 46% 39% 36% 37% 36% 32% 33% 26% 27% 28% 2009 2010 2011 2012 2013 1-6/2014 Share of Branded Products in sales1) Share of Branded Products in adjusted operating profit1) 1) of the two core segments Generics and Branded Products.. w
Slide 8: Outlook for 2014
Outlook for 2014 Group: • Slight growth in sales, adjusted EBITDA and adjusted net income Segments: • Generics: slight growth in sales, adjusted EBITDA slightly above previous year • Branded Products: substantial growth in sales and adjusted EBITDA New: Adjustment for special effects in connection w
Slide 9: Market region assumptions for 2014
Market region assumptions for 2014 Operational growth drivers • Stabilization of income from Generics with slight decrease in sales Germany • Growth in highly profitable Branded Products • Less regulatory impediments than in previous year • Positive development of the top 3 markets of UK, Belgium an
Slide 10: Further assumptions
Further assumptions Non-operational growth drivers Improved • Decreased tax rate corporate structure • Favorable refinancing Cost efficiency • Individual efficiency improving projects, such as the founding of an IT Culture of continuous shared service center in Serbia for the whole Group cost optimi
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
Slide 13: Sales 1-6/2014
Sales 1-6/2014 By market region Total group € 1,002.8 million +4% (-1%) • Germany: Decrease in Generics, solid growth in Branded Products, successful start of new Asia & Pacific Germany € 42.8 million € 227.0 million STADAvita +50% (-14%) -5% (-5%) 4.3% • Central Europe shows overall positive trend
Slide 14: Market region Germany
Market region Germany Generics sales Branded product sales Optimization of the German sales activities (in € million) (in € million) Total 1-6/2014: € 227.0 million (-5%) -11% +9% 164.8 − Successful start of 147.2 STADAvita 73.4 79.8 − Footballer of the century Pelé is the new Eunova® brand ambassad
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 1-6/2014: € 467.4 million (+15%, adjusted1) +3%) Generics Branded products +4% +46% 294.8 306.1 78.4 69.3 143.3 52.5 50.6 97.8 38.0 15.4 8.3 7.6 4.3 6.8
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 1-6/2014: € 265.6 million (-9%, adjusted1) -1%) Generics Branded products -14% -5% 153.6 146.2 138.1 118.9 107.9 55.6 36.5 8.3 3.1 10.8 1.0 8.0 1-6/
Slide 17: Development of Russia
Development of Russia Generics sales Branded product sales Development of the pharmaceutical market2) (in € million) (in € million) (in bn USD in CER) Total 1-6/2014: € 163.5 million (-16%, adjusted1) -9%) 25 10.4% 12% 8.0% 8.1% -27% -8% 7.9% 10% 20 5.0% 117.5 107.9 8% 15 76.7 6% 55.6 10 4% 5 2% 0 0
Slide 18: Market region Asia & Pacific
Market region Asia & Pacific Generics sales Branded product sales Highlights (in € million) (in € million) Total 1-6/2014: € 42.8 million (+50%, adjusted1) -14%) - Control acquired over STADA Joint Venture +70% +40% Vietnam - Initial consolidation of STADA Beijing 26.6 - Still on growth path - IMS f
Slide 19: Generics
y Generics
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: #4 Laboratorio STADA Italy: #5 EuroGenerici 1) Local suppliers/producers www.stada.com Page 20 Company presentation August 2014
Slide 21: Generics
Generics Sales Adj. EBITDA Regional Development (in € million) (in € million) Asia & Pacific -2% +15% € 26.6 million +70% (-17%) 4.4% Germany 613.3 598.7 € 147.2 million -11% (-11%) CIS/Eastern Europe € 118.9 million 19.9% 24.6% -14% (-4%) 103.2 118.4 Central Europe 51.1% € 306.1 million 1-6/2013 1-
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: Still low penetration rates
Still low penetration rates Country Off-patent market Generics market in Generics penetration in million million packages packages Belgium 187 66 35% Italy 1,532 694 45% Switzerland 114 56 49% Spain 1,032 600 58% By comparison Germany 1,083 739 73% Source: STADA estimate at ex-factory prices based o
Slide 24: Growth driver patent expiry
Growth driver patent expiry New sales potential becoming available for Product launches generics competition (in € billion) • Launch of 724 individual products worldwide in 2013 (717 in 2012) Central Europe1) Small chemical entities only – • 301 new products in 1-6/2014 (343 in excluding biologics 1
Slide 25: Branded Products
y Branded Products
Slide 26: Outperforming the market
Outperforming the market STADA is the fastest growing OTC company in the top ten – T&R will further accelerate expansion OTC corporation Sales in €m Growth in % 1 NOVARTIS 1,566 6.6 2 BAYER 1,225 1.5 3 SANOFI 1,170 2.6 4 JOHNSON & JOHNSON 968 -0.3 5 TEVA 616 7.5 6 RECKITT BENCKISER 497 5.2 7 GLAXOSM
Slide 27: Branded Products
Branded Products Sales Adj. EBITDA Regional Development (in € million) (in € million) Asia & Pacific +9% € 12.2 million +14% Germany +40% (-9%) 3.2% € 79.8 million 381.6 +9% (+9%) 333.6 CIS/Eastern Europe 20.9% € 146.2 million 120.1 -5% (+2%) 38.3% 110.5 37.6% Central Europe € 143.3 million 1-6/2013
Slide 28: Strong brands in 1-6/2014
Strong brands in 1-6/2014 No. Branded Product Growth in % Sales in € million Indication 1. Ladival® (OTC) +57 24.1 Sun Protection 2. ApoGo® (RX) +15 23.6 Parkinson 3. Grippostad® (OTC) -23 14.7 Cough and cold 4. Aqualor®1) (OTC) 13.5 Rhinitis 5. Snup® (OTC) +9 13.2 Rhinitis 6. Vitaprost® (RX) +3 10.
Slide 29: Financials
y Financials
Slide 30: Development of sales 1-6/2014
Development of sales 1-6/2014 Group sales in € • Sales increase 1-6/2014 of 3.7% • Organic1) sales growth -0.7% +8.3% -3.9% 1,002.8 -0.7% • Portfolio effects: 966.8 +8.3 percentage points, among others, due to the consolidation of STADA Vietnam and STADA Beijing, Spirig HealthCare AG (wholesale busi
Slide 31: Key earnings figures 1-6/2014
Key earnings figures 1-6/2014 EBITDA (in € million) 1-6/2014 vs. 1-6/2013 Net income (in € million) 1-6/2014 vs. 1-6/2013 reported adjusted1) reported adjusted2) +5% +10% +29% 0% 208.3 90.1 189.1 192.1 183.4 70.1 66.6 66.8 1-6/2013 1-6/2014 1-6/2013 1-6/2014 1-6/2013 1-6/2014 1-6/2013 1-6/2014 1) Ad
Slide 32: Net income adjustments in 1-6/2014
Net income adjustments in 1-6/20141) in € million 1.8 1.5 90.1 10.5 5.2 66.8 7.3 Reported net Purchase Price Value Translation Extraordinary Measurement of Adjusted net income Allocation; Delta adjustments on expense of expenses derivative income with additional intangible assets significant financi
Slide 33: Development of sales and margins
Development of sales and margins 2.500 23 22 2.000 20.8 20.6 Adjusted1) EBITDA 21 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 1-6/2014 • Expansion of self-pay portfolio • Shift to high margin product/country mix • Economies of scale ef
Slide 34: Analysis of the tax rate
Analysis of the tax rate Historic development of the reported effective tax rate 67.8% 37.1% 35.8% 35.2% 28.4% 29.5% 24.0% FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Q1/2014 H1 2014 Significant reduction in the effective tax rate in the first half of 2014 as compared to the tax burdens of the past five
Slide 35: Stable balance sheet structure
Stable balance sheet structure Assets in € million June 30, 2014 Dec. 31, 2013 A. Non-current assets 2,170.4 2,060.0 B. Current assets 1,366.0 1,353.2 Total assets 3,536.4 3,413.2 Equity and liabilities in € million June 30, 2014 Dec. 31, 2013 A. Shareholders’ equity 1,031.7 1,010.1 B. Non-current l
Slide 36: Balanced and stable financing structure
Balanced and stable financing structure Remaining maturities of financial liabilities due to banks as of June 30, 2014 in € million Corporate bond Credit Promissory notes 350.0 22.6 35.6 350.0 76.8 8.3 188.0 220.0 11.0 98.0 100.0 17.3 62.1 50.5 2014 2015 2016 2017 2018 2019 > 2019 • In the first hal
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) 2009-2013 1-6/2014 vs. 1-6/2013 250.5 194.8 212.7 205.4 169.0 61.8 41.6 2009 2010 2011 2012 2013 1-6/2014 1-6/2013 Adjusted free cash flow1) (in € million) 2009-2013 1-6/2014 vs. 1-6/20
Slide 38: Expenses for capital expenditure
Expenses for capital expenditure Total expenses 2009-2013 € million 1-6/2014 vs. 1-6/2013 482.4 170.5 195.2 317.7 133.7 333.3 10.3 9.0 97.1 85.0 27.4 77.4 230.1 123.0 46.5 6.4 6.9 46.4 26.9 57.4 13.4 37.9 39.5 7.6 32.2 30.5 19.8 16.9 50.8 0.1 30.7 0.9 0.3 30.3 3.5 34.0 0.7 17.3 0.1 0.0 22.0 15.1 200
Slide 39: Concentration of the production processes
Concentration of the production processes Share of production Share of production volume 2009 Own production locations volume 2013 Market region Germany Bad Vilbel (Germany) 16% 34% Pfaffenhofen (Germany) Market region CIS/Eastern Europe Vrsac (Serbia) Sabac (Serbia) 64% Dubovac (Serbia) 56% Banja L
Slide 40: Notes
Notes
Slide 41: P&L details 1-6/2014
P&L details 1-6/2014 In € million 1-6/2014 in € million 1-6/2014 in % of 1-6/2013 in € 1-6/2013 in % of Sales million Sales Gross profit 479.9 47.9 473.6 49.0 Selling expenses 219.3 21.9 224.6 23.2 G&A expenses 85.4 8.5 83.7 8.7 R&D expenses 29.3 2.9 27.4 2.8 Financial Result -30.5 -27.4 Taxes on in
Slide 42: Dividend
Dividend Dividend per STADA common share in € +32% 0.66 2013: € 39.8 million Dividend payout (2012: € 29.6 million 0.50 Dividend policy Appropriate share of reported net income to shareholders 2012 2013 Pay-out ratio 34% 33% 2012 2013 www.stada.com Page 42 Company presentation August 2014
Slide 43: Share capital and shareholder structure
Share capital and shareholder structure June 30, 2014 STADA shares1)2) 60,465,620 Potential number of shares from warrants 2000/20153) 1,924,600 Amount of treasury shares 91,142 Current shareholder structure on Dec. 31, 2013 • 100% free float • Approx. 60% institutional investors • Current notices w
Slide 44: 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: communications@stada.de www.stada.de www.stada.com Page 44 Company pres
STADA Arzneimittel — Investor Presentation (August 2014) on 6ix