Coloplast A/S Class B · OMXCOP:COLO_B
Coloplast A/S Class B — Goldman Sachs Medtech Conference 2005
23 slides from Coloplast A/S Class B's conference presentation, Sep 7, 2005
Slide 1: Coloplast A/S
Coloplast A/S Goldman Sachs Medtech Conference London, 7-8 September 2005 Sten Scheibye, CEO
Slide 2: Coloplast
2 Coloplast Coloplast products and services help patients achieve greater independence from medical challenges in 5 areas: Ostomy care, continence care, wound care, skin care and breast care. 39%* 24% 12% 5% 7% *Percentage of total group sales (2003/04)
Slide 3: History of revenue growth 1957-2004
3 History of revenue growth 1957-2004 7000 6000 5000 Forward integration 4000 Acquisitions mDKK 3000 Product divisions and subsidiaries 2000 Danish production and sale through 1000 distributors 0 62 67 72 82 97 02 57 77 87 92 19 19 19 19 19 20 19 19 19 19
Slide 4: Sales and production world wide
4 Sales and production world wide Sweden Switzerland Canada Germany Denmark Hungary Argentina Belgium France Poland Australia Italy Norway USA China Costa Rica Austria Japan Great Britain Holland Spain Portugal Croatia Czech Republic Israel Russia Slovakia Slovenia South Africa Brazil
Slide 5: Geographical distribution
5 Geographical distribution Revenue 2003/04 13% 6% 81% Europe The Americas ROW
Slide 6: Market conditions and response
6 Market conditions and response 1. Reimbursement changes Market growth influenced by: • Monitor/influence policy • Earlier cancer detection • Product design • Improved surgical procedures • Emphasis on clinical • Increased longevity documentation • New technologies and treatment alternatives 2. Pri
Slide 7: Three key customers
7 Three key customers • The end customer • The user, primary concern is quality of life • The health care professional • The advisor, primary concerns are user quality of life and handling • The payer • Concern is primarily product pricing
Slide 8: Business Structure
8 Business Structure Group Management Corporate functions Chronic Care segment SBU segment V o Sales Ostomy Continence Wound Skin Breast l Care Care Care Health Care u m e Europe, North p r Europe, o South d u c Americas t i o RoW n
Slide 9: Ostomy Care - market data
9 Ostomy Care - market data Global market value DKK 8-8½bn Europe (>4bn) USA (<2bn) Global (>8bn) 6% 2% 10% 5% 28% 35% 27% 24% 39% 55% 37% 4% 28% ConvaTec Coloplast Hollister B Braun Other Note: Only markets where Coloplast is present are included
Slide 10: Continence Care - market data
10 Continence Care - market data Product Market size Coloplast market Coloplast Main area and growth share (Europe) growth competitors 1.5bn DKK 43% 15-20% Astra Tech, Porges/Mentor, 15% Rüsch, Rochester, B Braun 1.2bn DKK 30% (value) 5% Bard, Hollister, Mentor, B 0-5% Braun, Manfred Sauer, Unomedic
Slide 11: Chronic Care - market conditions in Germany
11 Chronic Care - market conditions in Germany CC draft for CC final Implementation of new prices decision health care reform CC final decision Market conditions Introduction of postponed patients‘ co-payment OC draft for for medical devices new prices OC final decision Reimbursement on auxiliary pr
Slide 12: Chronic Care - US market positioning and key goals
12 Chronic Care - US market positioning and key goals • Strong product portfolio • Convex baseplate, EasiClose • Market access through GPO/IDN • Consorta • Large number of IDN contracts • Significant growth in new patient discharge • Sustained OC hospital growth > 30% • Sustained OC/CC growth > 20%
Slide 13: Wound Care - market definition
13 Wound Care - market definition Wound type Acute Chronic Dry wound € 1.0 billion € 1.5 billion healing Product technology € 1.1 billion segment, growth 9-11% Moist wound € 0.5 billion € 1.0 billion healing Active Pharma and biotech € 0.1 billion € 0.4 billion VAC € 0.4 billion € 0.1 billion
Slide 14: Wound Care - market data
14 Wound Care - market data MWH and active products, Europe 21% 27% Convatec S&N Coloplast J&J Mölnlycke Others 10% 11% 17% 14% Technology Traditional Advanced Active ConvaTec X X S&N X X Coloplast X X J&J X X X Mölnlycke X X
Slide 15: Skin Health and Breast Care SBU's
15 Skin Health and Breast Care SBU’s Skin Health Breast Care • To treat skin problems arising • Attached breast forms, partial from medical conditions or breast shapers, special textiles related to frequent hand • 1bn DKK global market washings • 50/50 sales value split between • 4bn DKK US market U
Slide 16: Expectations and targets
16 Expectations and targets 2004/05 • Sales growth of 8-9% in local currencies • Profit margin 15-16% 2008 • Sales exceeding DKK 9 billion through organic growth • Profit margin (EBIT) reaching 18% • ROAIC of 20% • Acquisitions and divestments
Slide 17: Key figures Q3 2004/05
17 Key figures Q3 2004/05 9 months 9 months Index vs mDKK 2004/05 2003/04 2003/04 Revenue 4,786 4,468 107 EBIT 699 749 93 Special items -19 0 - Financial items -73 -87 84 Profit before tax 607 662 92 Tax -192 -226 85 Minority interests -1 -3 33 Group profit 414 433 96 Profit margin 15% 17% -
Slide 18: Growth Q3 2004/05
18 Growth Q3 2004/05 - local currencies Growth Growth Growth Est. market Q3 2004/05 H1 2004/05 Q1 2004/05 growth Ostomy Care 9% 9% 9% 2-6% Continence Care 10% 9% 8% 5-8% Chronic Care segment* 9% 8% 6% Wound Care 9% 8% 4% 9-11% Skin Health 8% 7% 12% 9-12% Breast Care 4% (1)% (3)% (3)-(1)% SBU segment
Slide 19: Highlights markets
19 Highlights markets Ostomy Care continues to outperform market growth - Solid US and RoW growth, restructuring in Germany - Corsinel well accepted, Strong Easiflex growth Continence Care growth by 10% - SpeediCath Compact still fuelling growth - New reimbursement prices in Germany expected in 2006
Slide 20: Tatabanya, Hungary
20 Tatabanya, Hungary • Construction completed • 700 headcounts by Aug. 2005 • DKK 1.5bn sales value in 2005/06 • EBIT up 5% compared with Danish manufacturing Coloplast, Phase I-III, Tatabanya, Hungary • Phase I - finalised: ostomy bags, urisheaths • Phase II - finalised: ostomy bags, dressings, ca
Slide 21: Staff requirements by geography
21 Staff requirements by geography Total staff requirements (FTEs) by geography, 2003/04-2010/11 2.000 1.500 DK FTEs 1.000 HU CN 500 0 4 5 6 7 8 9 0 1 /0 /0 /0 /0 /0 /0 /1 /1 03 04 05 06 07 08 09 10 20 20 20 20 20 20 20 20
Slide 22: Cash flow
22 Cash flow 1500 1000 500 Acquisitions mDKK Investments 0 Cash flow -500 Free cash flow 5 1 7 8 9 0 2 3 4 /0 /0 /9 /9 /9 /0 /0 /0 /0 04 00 96 97 98 99 01 02 03 3Q -1000 -1500
Slide 23: MMS
aT MMS | MNES ee wp Coloplast