Vetoquinol Sa · EURONEXT:VETO
Vetoquinol Sa — FY2014 Earnings Presentation
29 slides from Vetoquinol Sa's earnings presentation, Mar 24, 2015
Slide 1: Annual results presentation, March 24, 2015
Tuesday, March 24, 2015 3: Vétoquinol
Slide 2: Disclaimer
Disclaimer This document was prepared by the Vétoquinol Group for the sole purpose of its March 24, 2015 annual results presentation. This document may not be reproduced or distributed, in whole or in part, without the prior agreement of Vétoquinol. The Vétoquinol Group shall not be held liable for
Slide 3: Sustained Growth
SUSTAINED GROWTH Reference products drive growth in 2014 Vétoquinol Group 3
Slide 4: 2014 key figures
2014 key figures €315.3m Sales 2,004 Employees in 24 countries +5.2% Growth driven by reference products +13.2% Sales of €150.7m 11.2% EBIT/Sales €49.2m EBITDA +5.5% +9.5% Vétoquinol Group 4
Slide 5: Animal health: an industry with steady growth
Animal health: an industry with steady growth • $24bn world market • Reported growth of approximately 4% in USD • Strong fundamentals →Expansion of pet and livestock markets →Growth across all territories Vétoquinol Group 5
Slide 6: Reference products
Reference products • Highly reputed leading products, used daily by vets • Products destined for worldwide use • A scale effect designed to improve the economic performance of our products Vétoquinol Group 6
Slide 7: Expansion of the reference product portfolio
Expansion of the reference product portfolio • More than 30 reference products at 2014 year-end • Targets for 2020 → Around fifty reference products → Present in 17 strategic countries Vétoquinol Group 7
Slide 8: Sustained growth of reference products
Sustained growth of reference products Reported sales of reference products (€m) 150.7 133.1 +13.2% 123.5 115.4 +9.2% +7.0% 48% Reference products share of total sales 38% 2011 2012 2013 2014 Vétoquinol Group 8
Slide 9: Reference products Vétoquinol's driving force
Reference products Vétoquinol's driving force 2014 sales outside the doughnut 2013 sales inside the doughnut Complementary Reference products products 52% 48% 44% 56% Reference products up 13.2% Vétoquinol Group 9
Slide 10: Expansion of the Vétoquinol range
Expansion of the Vétoquinol range • Enlarge the geographical spread of sales • Develop strong brands in new areas of expertise besides anti-infectives Vétoquinol Group 10
Slide 11: Growth of reference products
Growth of reference products • Targeted investments in sales and marketing • Expansion of existing products into new markets • Innovation and Life Cycle Management • External growth Vétoquinol Group 11
Slide 12: Geographical expansion
Geographical expansion Country Products (2013 – 2014) Forcyl and 5 upcoming products 5 upcoming products Tolfine and 2 upcoming products Oridermyl, Tolfedine (cpr) and 3 upcoming products Aurizon, Cimalgex, Flevox, Forcyl, Propalin, Marbocyl P, Zentonil and 1 upcoming product Ceftiocyl and 1 upcomin
Slide 13: Strategic acquisition
Strategic acquisition • New reference products – Livestock reproduction products • Expands our footprint in North America – USA and Canada • Boosts the livestock reproduction range Sales via distributors Direct sales • Australia: a new strategic country Vétoquinol Group 13
Slide 14: Successful integration of Bioniche
Successful integration of Bioniche • Sales after Bioniche acquisition: €14.6m • Integration of staff and operations • Merger of the Canada and USA entities • Divestment of a marginal production site in the USA Vétoquinol Group 14
Slide 15: Strong momentum of business drivers
Strong momentum of business drivers EBITDA (€m) Sales (€m) 55 350 49 300 45 250 45 43 40* 315 200 300 298 150 35 284 151 100 133 124 115 50 25 0 2011 2012 2013 2014 Reference products Total sales * Restated for non-recurring item Vétoquinol Group 15
Slide 16: Earnings Growth
EARNINGS GROWTH Improvement in all financial indicators Vétoquinol Group 16
Slide 17: 2014 sales: €315.3m
2014 sales: €315.3m At constant exchange rates Reported data 2014 sales: €318.5m (+6.3%) 172.5 178.1 Asia Pacific 13.7% 96.8* 87.1 13.4% Europe 56.8% 40.1 43.6* 57.5% 29.1% 2013 2014 2013 2014 2013 2014 Americas Europe Americas Asia Pacific 29.5% * Impact of Bioniche acquisition Performance of terri
Slide 18: Income statement
Income statement % of % of €m 2014 2013 sales sales Sales 315.3 299.7 +5.2% Gross margin 208.1 66.0 196.8 65.6 +5.8% External expenses (66.3) (21.0) (64.3) (21.4) +3.1% Personnel expenses (93.9) (29.8) (87.9) (29.3) +6.9% Taxes and duties (4.9) (1.6) (3.9) (1.3) +26.6% Other income and expenses 7.
Slide 19: Cash flow
Cash flow €m 2014 2013 Net income 25.8 23.6 Free cash flow before cost of net debt and tax 49.9 44.2 Cash flow from operating activities 41.3 28.1 Cash flow from investing activities (52.2) (7.7) Cash flow from financing activities 27.2 (14.0) Change in cash and cash equivalents 17.3 4.9 • Bioniche
Slide 20: Working capital
Working capital €m Dec. 31, 2014 Dec. 31, 2013 Inventories 70.8 56.4 Trade and other receivables 72.0 66.1 Trade and other payables (75.7) (65.8) Other working capital (0.8) 1.4 Working capital 66.3 58.1 In number of days (by due date) Dec. 31, 2014 Dec. 31, 2013 Working capital 73.2 66.4 • Bioniche
Slide 21: Strong balance sheet
Strong balance sheet Net cash on 13 33 hand Provisions 11 46 Working capital 66 58 268 Shareholders’ 182 equity Net fixed assets 236 143 Dec. Dec. Dec. Dec. 2014 2013 2014 2013 Vétoquinol Group 21
Slide 22: Strong fundamentals
Strong fundamentals • Strong generation of cash flow • Shareholders' equity of €268m • Large borrowing capacity for a targeted acquisition program • Cash on hand of €32.8m Vétoquinol Group 22
Slide 23: Vétoquinol, a responsible Group
Vétoquinol, a responsible Group • Ranked 1st in the Gaïa Index of companies with sales between €150m and €500m; ranked 4th in the industrial sector • Inclusion in the EnterNext PEA-PME 150 index →Index comprising 150 selected mid-cap companies →Greater visibility among investors Vétoquinol Group 23
Slide 24: Vétoquinol on the stock market
Vétoquinol on the stock market • Vétoquinol share price (index = 100) • Shareholders at 140 December 31, 2014 Treasury stock Float 0.1% 120 33.0% 100 80 Etienne Frechin Vétoquinol base 100 CAC Mid&Small base 100 family 66.9% • Dividend of €0.39 per share proposed by the Board of Directors to the May
Slide 25: An Animal Health Pure Player
AN ANIMAL HEALTH PURE PLAYER Continuation of leadership strategy in targeted markets Vétoquinol Group 25
Slide 26: Vétoquinol, the world's no. 9 animal health company
Vétoquinol, the world's no. 9 animal health company • An independent player with in-house R&D, manufacturing and marketing departments • Business balanced between pets and livestock • Focus on a range of 50 reference products • Targeted presence in 17 strategic countries • Aiming at sustainable and
Slide 27: Outlook
Outlook • Growing importance of reference products • Growth in sales and profits • Acquisition-based strategy to boost the range of reference products Vétoquinol Group 27
Slide 28: Reporting timetable
Reporting timetable • Q1 sales April 14, 2015 (after market close) • Shareholders' meeting May 20, 2015 • First half 2015 results July 30, 2015 (after market close) Vétoquinol Group 28
Slide 29: Questions and Answers
QUESTIONS AND ANSWERS Vétoquinol Group 29