Ypsomed Holding Ag · SIX:YPSN
Ypsomed — H1 2004/05 Earnings Presentation
55 slides from Ypsomed's earnings presentation, Nov 11, 2004
Slide 1: Presentation of 2004/05 Semi-annual Results
Ypsomed Holding AG Presentation of 2004/05 Semi-annual Results Solothurn, 11. + 12. November 2004
Slide 2: Important Notice
Important Notice The information contained in this document has not been independently verified and no representation or warranty, express or implied, is made to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein.
Slide 3: Company Representatives
Company Representatives Matthew Robin CEO Ypsomed Niklaus Ramseier CFO Ypsomed Daniel Kusio Investor & Public Relations 3
Slide 4: Agenda
Agenda New Production Site in Solothurn Presentation of the Semi-annual Results 2004/05 Highlights Semi-annual Results 2004/05 Outlook Questions and Answers Additional Information on company and products 4
Slide 5: Overview of Production Site in Solothurn
Overview of Production Site in Solothurn Building 10: Total of 4‘000 m2 Buildings 4/24/25: Expansion in 2004/05 Total of 27‘000 m2 5
Slide 6: New Production Site in Solothurn
New Production Site in Solothurn Building 10: Production running since end of year 2003 Buildings 4/24/25: purchased in April 2004. Construction work necessary to fit Ypsomed‘s needs and standards. Full scale production to start end of 2004. First batches already running. 6
Slide 7: Today: Products Manufactured in Solothurn
Today: Products Manufactured in Solothurn Disposable module 3URWHFWLYH FDS DQG LQMHFWLRQSHQQHHGOH 'LDOLQJ XQLW 7
Slide 8: Future: Products Manufactured in Solothurn
Future: Products Manufactured in Solothurn OptiClik (Reusable module currently manufactured in Burgdorf) OptiSet (2nd production site) Injection pen needles (2nd production site) 8
Slide 9: Agenda
Agenda New Production Site in Solothurn Presentation of the Semi-annual Results 2004/05 Highlights Semi-annual Results 2004/05 Outlook Questions and Answers Additional Information on company and products 10
Slide 10: Highlights: Strong Performance since IPO
Highlights: Strong Performance since IPO 11
Slide 11: Highlights Semi-annual Results 2004/05
Highlights Semi-annual Results 2004/05 Strong net sales growth of 33.7% of the Ypsomed Group Gross profit margin improved from 37.3% to 39.3%, resulting in a gross profit of CHF 45.6 million EBIT margin (before goodwill amortization) improvement to 18.9% (up 2.1 base points) Earnings per share grew
Slide 12: Strong Sales Growth in Pen-Systems
Strong Sales Growth in Pen-Systems CHF million H1 2004/05 H1 2003/04 in % Sales of goods and services 116.0 86.8 33.7% Ypsomed finished products 79.5 62.5 27.1% FreeStyle (2004/05 figure only 4 months sales). 18.8 22.6 -16.6% Other products 17.7 1.7 970.7% 120 Other products 100 FreeStyle 80 Own fin
Slide 13: Strong Growth in Net Sales and Profitability
Strong Growth in Net Sales and Profitability CHF million H1 2004/05 H1 2003/04 in % Sales of goods and services 116.0 86.8 33.7% Gross profit 45.6 32.4 41.0% Gross margin (%) 39.3 37.3 Operating profit (EBIT) 22.0 7.9 1) 177.6% EBIT margin (%) 18.9 9.1 Net profit 18.0 5.4 1) 230.1% Net profit margin
Slide 14: New Jobs Created in Switzerland & Europe
New Jobs Created in Switzerland & Europe The number of employees increased from 641 to 833 within the last 12 months A total of 192 new jobs were created during the same period, 142 thereof in Switzerland Sales per employee over the last 12 months was on average CHF 305‘000.- 833 764 641 132 127 82
Slide 15: Agenda
Agenda New Production Site in Solothurn Presentation of the Semi-annual Results 2004/05 Highlights Semi-annual Results 2004/05 Outlook Questions and Answers Additional Information on company and products 16
Slide 16: Efficiency Gains drive Operating Profit up
Efficiency Gains drive Operating Profit up CHF million H1 2004/05 in % H1 2003/04 in % in % Sales of goods and services 116.0 100.0% 86.8 100.0% 33.7% Cost of goods sold 70.4 60.7% 54.4 62.7% 29.4% Gross profit 45.6 39.3% 32.4 37.3% 41.0% R & D Reimbursed 5.4 4.7% 5.6 6.5% -3.6% R & D Expenses -9.0
Slide 17: EBITDA up by 52% on previous year
EBITDA up by 52% on previous year CHF million H1 2004/05 in % H1 2003/04 in % in % Operating profit (after goodwill amortization) 22.0 18.9% 7.9 9.1% 177.6% Amortization of goodwill 0.0 0.0% 6.7 7.7% -100.0% Amortization of intangible assets 0.3 0.3% 0.4 0.4% -10.3% Depreciation of fixed assets 10.5
Slide 18: Net Profit Growth in line with Expectations
Net Profit Growth in line with Expectations CHF million H1 2004/05 in % H1 2003/04 in % in % Operating profit (EBIT) 22.0 18.9% 7.9 9.1% 177.6% Finance costs - net -1.5 -1.3% -0.7 -0.8% 131.2% Other income 0.2 0.1% 0.1 0.1% 88.2% Profit before taxes 20.6 17.7% 7.3 8.5% 180.7% Income tax expenses -2.
Slide 19: Significant Investments in Capacity Expansion
Significant Investments in Capacity Expansion CHF million Cash Flow from Operating Activities Cash Flow from Investing Activities 43.8 17.5 -18.3 -36.0 H1 2003/04 H1 2004/05 H1 2003/04 H1 2004/05 Cash Flow from Financing Activities Cash and Cash Equivalents 84.7 105.1 12.6 2.9 H1 2003/04 H1 2004/05
Slide 20: Details on Cash Flow Statement
Details on Cash Flow Statement CHF million H1 2004/05 H1 2003/04 in % Cash flow before changes in NWC 30.5 22.9 33.2% Changes in net working capital 13.4 -5.4 Cash flow from operating activities 43.8 17.5 151.1% Cash flow from investing activities -36.0 -18.3 96.2% Decrease in current borrowings 0.0
Slide 21: Strong Balance Sheet due to successful IPO
Strong Balance Sheet due to successful IPO CHF million 30.09.2004 in % 31.03.2004 in % Cash and cash equivalents 105.1 16.8% 12.6 2.5% Trade receivables 37.5 6.0% 30.0 6.0% Other current assets 11.8 1.9% 13.0 2.6% Inventory 40.4 6.4% 37.7 7.5% Total current assets 194.8 31.0% 93.3 18.6% Financial As
Slide 22: Equity ratio up to 53.5%
Equity ratio up to 53.5% CHF million 30.09.2004 in % 31.03.2004 in % Trade payables 16.8 2.7% 16.8 3.4% Current income taxes payable 6.1 1.0% 3.9 0.8% Other payables and accr. expenses 35.8 5.7% 12.5 2.5% Total current liabilities 58.7 9.4% 33.3 6.6% Non-current finan. liab. to shareholder 218.1 34.
Slide 23: Good Progress on Strategic Initiatives
Good Progress on Strategic Initiatives Expansion of Manufacturing Capacity Construction work in Solothurn on track New machines and tools arriving on time Ongoing ramp-up of production after careful testing and quality control Management team complete Continued hiring of production staff N
Slide 24: Agenda
Agenda New Production Site in Solothurn Presentation of the Semi-annual Results 2004/05 Highlights Semi-annual Results 2004/05 Outlook Questions and Answers Additional Information on company and products 25
Slide 25: Outlook: full-year Guidance for 2004/05
Outlook: full-year Guidance for 2004/05 Insulin market growing at over 10%, but Lantus growth at about 100% in the current year. Ypsomed net sales for the 2004/05 business year expected to increase between 15% to 25%. Gross profit and operating margins expected to improve from current levels through
Slide 26: Ypsomed benefits from multiple growth factors
Ypsomed benefits from multiple growth factors Market & Sales Growth Motor-driven Pens Auto-Injectors Reusable Pens (Semi-) Disposable Pens Pen Needles Self-Medication Trend New Biotech Compounds Long-acting Insulin Diabetes & Insulin Emerging Countries Sedentary Lifestyle Ageing Population Drivers D
Slide 27: Growth Drivers for Ypsomed
Growth Drivers for Ypsomed Demographic trends fuel underlying growth Insulin Pen Penetration in the USA, Europe and Japan Diabetes increasing due to ageing of population, unhealthy diets, sedentary lifestyle Pen Users as a Emerging countries bring additional growth percentage of insulin 100% inj
Slide 28: Growth Drivers for Ypsomed
Growth Drivers for Ypsomed New biotech applications are/will be injectable Pharma companies need differentiation Number of Products by Delivery Technology 15% 11% 13% 13% 12% 38% 35% 44% 58% 66% 50% 53% 42% 27% 24% Marketed Filed Phase III Phase II Phase I Injection Oral Other Source: Evaluate Pharm
Slide 29: Important Products in Development
Important Products in Development Motor-driven Semi- Pens Needle-free disposable Pens Pens Auto-injectors Diabetes Growth disorders Autoimmune Diseases, Emergency Drugs Anemia Multiple sclerosis Migraine Viral infection Rheumatoid arthritis Allergic Reactions Infertility Psoriasis, Allergies Osteopo
Slide 30: Important Dates
Important Dates Key reporting dates Presentation of full-year results 2004/05 May 27, 2005 Annual shareholder meeting June 22, 2005 in Burgdorf Selected congresses (pen & diabetes business) Q4 2004 AAPS National Biotechnology Meeting in Washington 24. - 26.1.2005 Drug Delivery Partnerships C
Slide 31: Injection for your Portfolio
Injection for your Portfolio Attractive and fast growing markets Leading market position with long-standing partnerships Strong revenue growth with potential for further margin expansion Technology-leader to deliver real costumer benefits Focused strategy Business operating in a low-risk segment of
Slide 32: Agenda
Agenda New Production Site in Solothurn Presentation of the Semi-annual Results 2004/05 Highlights Semi-annual Results 2004/05 Outlook Questions and Answers Additional Information on company and products 33
Slide 33: Ypsomed Selfcare Solutions
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Slide 35: Additional information on the company and its products
Ypsomed Holding AG Additional information on the company and its products Company Presentation – 11. + 12. November 2004
Slide 36: Content Additional Information
Content Additional Information Additional Information Corporate structure Products and partnerships Strategy and positioning R&D and patents Investments highlights 2
Slide 37: Company Background
Company Background Injection Systems Business Infusion Systems Business Self Injection Devices Infusion Systems Pen Needles Continuous Glucose Monitoring Blood Glucose Monitoring Blood Glucose Monitoring Today, Ypsomed is the world’s leading independent manufacturer of custom made Self Injection Dev
Slide 38: Corporate Structure
Corporate Structure Board of Directors Ypsomed Holding AG (Burgdorf) TecPharma Ypsomed AG Ypsotec AG Licensing AG (Burgdorf) (Grenchen) (Burgdorf) Ypsomed GmbH Ypsomed BV Ypsomed AB Ypsomed SAS (Germany) (Netherlands) (Sweden) (France) DiaExpert GmbH Ypsomed Finland Ypsomed Norway Ypsomed Denmark (G
Slide 39: Management Team
Management Team CEO Matthew Robin QM & RA CFO Legal HR Investor Relations Thomas Beuttler Niklaus Ramseier Beat Maurer Yvonne Müller Daniel Kusio Marketing & Sales Marketing & Sales Production & R&D Ypsotec AG Pharmapartner Europa Logistics Christoph Detlef Jantos Christoph Brand Jürg Clavadetscher
Slide 40: Overview of Products and Applications
Overview of Products and Applications Ypsomed’s activities are organised in three business sectors: Self Injection Devices Pen Needles Custom-made Self Injection Devices Pen needles that fit all major brands for pharmaceutical and biotech of Self Injection Devices on the market partners Patented cli
Slide 41: Self Injection Devices - Product Overview
Self Injection Devices - Product Overview Customised injection systems for pharma and biotech partners Getting away from it all … – Cumbersome and painful injection – Dependency on specialists – Needle phobia To … – convenience – reduced pain – accuracy – social acceptance – increased compliance – s
Slide 42: Self Injection Devices - Marketed Products
Self Injection Devices - Marketed Products Reusable Pens – Electronic display / max. 2 year lifetime – Simple handling – Variable dosing – Unparalleled accuracy – Single or two-chamber cartridges Disposable Pens – Simplest handling, used for multiple injections – Device cost reimbursed in drug price
Slide 43: Sustainable Partnerships
Sustainable Partnerships Insulin hGH interferon & EPO r-hFSH Preos ... and other partners 9
Slide 44: Pen Needles - Product Overview
Pen Needles - Product Overview Penfine® - Universal Pen Needle Fits all major brands of pens on the market Patented click-on mechanism Maximum handling convenience Large range of different needle length Direct access to customers World market of over 3 billion Ypsomed is no. 3 player 10
Slide 45: Pen Needles - Growth Drivers
Pen Needles - Growth Drivers Ypsomed‘s pen-needle business grew by more than 40% in the last financial year, compared to 10% overall pen-needle market growth Increasing market for injectables and increasing pen penetration rate – High growth from the US market Attitude towards hygiene and safety inc
Slide 46: Global Product Presence
Global Product Presence Ypsomed products are sold globally through pharma partners and through Ypsomed’s distribution networks Grenchen Solothurn - Manufacturing - Manufacturing Burgdorf - Headquarters - R&D - Manufacturing Manufacturing Subsidiaries 12
Slide 47: Diabetes Mellitus
Diabetes Mellitus Condition where the human body does not produce, or properly use insulin to convert sugar (glucose) into energy Type I Diabetes – Complete deficiency in insulin production and secretion – Onset in young age Type II Diabetes – Relative insulin deficiency; insulin resistance/insensit
Slide 48: Our Strategy: Focus on Key Strengths
Our Strategy: Focus on Key Strengths Secure and expand number 1 position as independent partner of the pharmaceutical and biotech industry in the area of self-injection Further develop needle business by bringing innovation and choice to customers Further expand partner and distribution network Capi
Slide 49: Positioning of Ypsomed as Independent Leader
Positioning of Ypsomed as Independent Leader High quality, innovative and reliable full service provider Innovative and patent protected products Production expertise compliant with the latest regulatory requirements – Manufacturing in FDA registered facilities and under cGMP standards – Devices app
Slide 50: Collaboration with Partners
Collaboration with Partners Long term collaboration Long lasting contracts Risk of in-sourcing relatively small (various risks, costs, time to market) Intellectual property – Device-related patents with Ypsomed Registration process – Approval process managed by partner – Product-specific interaction
Slide 51: Production Philosophy
Production Philosophy High level of vertical integration allows for in-house back up and quick response to market needs Close interaction with in-house R&D Quality - Qualification of employees – Training – Experience and loyalty – Motivation, with a limited fluctuation rate – Retention of key employ
Slide 52: R&D Strategy
R&D Strategy Currently 50 employees and CHF17 million spending in 2003/04, whereof CH 10 million have been paid by the pharma partners Development projects: Development of specific applications for pharma partners – 12 ongoing projects driven by customers – High probability of launching those pens /
Slide 53: Patents
Patents Active patent registration philosophy Patents held by TecPharma Licensing AG, an Ypsomed company Total of 146 patent families Extensive in-house experience leverages impact of IP portfolio Priority Applications per Annum Granted Patents by Region 31 32 21 22 15 15 11 13 8 6 5 4 3 3 2 2 1 1 1
Slide 54: Investment Highlights
Investment Highlights Management track record Largest independent Compelling history as manufacturer of division of Disetronic injection pens Technological Attractive financial excellence and profile product development expertise Strong market Close and long-lasting dynamics (diabetes, relationship
Slide 55: Company Presentation – 11. + 12. November 2004
Company Presentation – 11. + 12. November 2004