Ypsomed Holding Ag · SIX:YPSN
Ypsomed — H1 2006/07 Earnings Presentation
38 slides from Ypsomed's earnings presentation, Nov 9, 2006
Slide 1: Presentation of 2006/07 Semi-Annual Results
Presentation of 2006/07 Semi-Annual Results Burgdorf, 9th November 2006
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: Agenda
Agenda Presentation of the Semi-Annual Results 2006/07 Summary Financials Operations Strategy and Outlook Questions and Answers 3
Slide 4: Summary First Half Year 2006/07
Summary First Half Year 2006/07 Net Sales in the first half-year of CHF 129.0 million is 8.8% lower compared to previous semester, mainly due to production stop with OptiClik®. Sales growth in diabetes direct business of 9.1% is well above market average. Decline in gross margin and operating profit
Slide 5: Key Financials
Key Financials CHF million H1 2006/07 H1 2005/06 in % Sales of goods and services 129.0 141.5 -8.8% Gross profit 26.0 53.6 -51.5% Gross profit in % 20.1 37.8 Operating profit / (loss) -5.3 28.9 -118.4% Operating profit / (loss) in % -4.1 20.5 Net profit / (loss) -5.3 26.4 -119.9% Net profit / (loss)
Slide 6: Lower net sales due to OptiClik production stop
Lower net sales due to OptiClik production stop CHF million H1 2006/07 H1 2005/06 in % Sales of goods and services 129.0 141.5 -8.8% Own finished products 107.3 120.8 -11.2% Other products 21.8 20.7 4.9% Sales of own finished products was 11.2% lower mainly due to the OptiClik® production stop of 8
Slide 7: Lower Gross Profit due to Extra Costs
Lower Gross Profit due to Extra Costs The gross profit decreased from CHF 53.6 million to CHF 26.0 million. The extra costs related to the production stop of the OptiClik® pen totaled CHF 14.2 million. The extra costs consist of idle production time, considerable manual testing and rework activities
Slide 8: Investing in R&D and New Products
Investing in R&D and New Products In the first half year 2006/07 Ypsomed invested a total of CHF 11.9 million in research & development Ypsomed focused on the developments of own technology platforms and less on customer financed developments, resulting in a decline of CHF 4.0 million in research &
Slide 9: Strong Position in Intellectual Property
Strong Position in Intellectual Property Additional patent lawyer hired to strengthen IP protection and research License deal for pen system IP under negotiation with large pharma company Ypsomed ‘s strong IP position will enable the extended business strategy Priority Applications per Annum Granted
Slide 10: Agenda
Agenda Presentation of the Semi-Annual Results 2006/07 Summary Financials Operations Strategy and Outlook Questions and Answers 10
Slide 11: Profitability impacted by production problems
Profitability impacted by production problems CHF million H1 2006/07 in % H1 2005/06 in % in % Sales of goods and services 129.0 100.0% 141.5 100.0% -8.8% Cost of goods and services sold -103.1 -79.9% -88.0 -62.2% 17.2% Gross profit 26.0 20.1% 53.6 37.8% -51.5% Research and development reimbursed 0.
Slide 12: Net loss per share of CHF 0.47
Net loss per share of CHF 0.47 CHF million H1 2006/07 in % H1 2005/06 in % Operating profit / (loss) -5.3 -4.1% 28.9 20.5% Financial income 0.9 0.7% 2.7 1.9% Financial expense -1.3 -1.0% -1.2 -0.8% Other income / (expense) 0.0 0.0% 0.0 0.0% Profit / (loss) before income taxes -5.6 -4.4% 30.4 21.5% I
Slide 13: Cash Flow Statement
Cash Flow Statement CHF million H1 2006/07 H1 2005/06 Cash flow from operating activities before changes in net work capital 5.7 40.9 Change in net working capital 3.0 -4.7 Cash flow from operating activities 8.7 36.3 Purchases of fixed assets -23.7 -24.0 Trade in marketable securities 18.3 24.8 Oth
Slide 14: Balance Sheet
Balance Sheet CHF million 30.09.2006 in % 31.03.2006 in % Assets Cash and cash equivalents 32.3 5.2% 65.7 9.9% Marketable securities 22.7 3.6% 41.2 6.2% Trade receivables 39.3 6.3% 45.4 6.8% Other current assets 9.7 1.6% 10.9 1.6% Inventories 46.4 7.4% 44.1 6.6% Total current assets 150.5 24.1% 207.
Slide 15: Equity Ratio of 61.4%
Equity Ratio of 61.4% CHF million 30.09.2006 in % 31.03.2006 in % Liabilities and equity Trade payables 26.4 4.2% 23.7 3.6% Current income taxes payable 0.5 0.1% 5.7 0.9% Other payables and accrued expenses 18.8 3.0% 18.4 2.8% Total current liabilities 45.8 7.3% 47.8 7.2% Non-current financial liabi
Slide 16: Agenda
Agenda Presentation of the Semi-Annual Results 2006/07 Summary Financials Operations Strategy and Outlook Questions and Answers 16
Slide 17: Ypsomed's Partnership with Sanofi-Aventis
Ypsomed‘s Partnership with Sanofi-Aventis Continued partnership between Ypsomed and Sanofi-Aventis. Ypsomed will remain a strategic supplier to Sanofi-Aventis and continue to manufacture the existing pen systems OptiClik®, OptiSet® and OptiPen® Pro. The new disposable pen of Sanofi-Aventis will be a
Slide 18: Adapting Production & Logistics
Adapting Production & Logistics The production problems with the OptiClik® reusable modul were solved. Reliable production of OptiClik® pens is ensured. However, production and logistics must be adapted by reducing temporary staff in line with the new order outlook from Sanofi-Aventis. Lower deliver
Slide 19: Reduced Temporary Staff
Reduced Temporary Staff To adapt to the new order volumes, Ypsomed reduced the temporary staff from over 200 to 40 in October 2006. Mainly affected by the reduction were the OptiClik® temporary production staff in Solothurn. Temporäre Festangestellte 31.12.04 31.03.05 30.06.05 30.09.05 31.12.05 31.0
Slide 20: Number of Employees in CH and Europe
Number of Employees in CH and Europe The number of employees increased from 1' 035 to 1' 256 within the last 12 months. Over 221 new jobs were created during the last 12 months. 1'256 CH Rest of Europe 1'139 1'035 106 933 97 869 93 797 116 141 141 + 72 + 64 + 102 + 104 + 117 1042 1150 942 728 817 65
Slide 21: Maurice Meytre appointed as new COO
Maurice Meytre appointed as new COO An engineer by formation, Maurice Maytre brings 17 years of executive management experience in the medtec industry. Thereof, 9 years in a CEO position in France with an excellent track record in leading a fully integrated company with product development and produ
Slide 22: Richard Fritschi appointed as new CEO
Richard Fritschi appointed as new CEO 15 years of professional experience in medtech (Zimmer, Centerpulse and SulzerMedica) Proven international leadership and M&A track record, i.e. Zimmer take-over of Centerpulse, several large acquisitions and turnaround situation with Sulzer Medica International
Slide 23: Agenda
Agenda Presentation of the Semi-Annual Results 2006/07 Summary Financials Operations Strategy and Outlook Questions and Answers 23
Slide 24: Ypsomed's Business Strategy
Ypsomed’s Business Strategy Diabetes Care Distribution Capabilities Pen Needles Technology Competence Self-Injection Devices 24
Slide 25: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Drug & Device Distribution Diabetes Care Capabilities Pen Needles Technology Self-Injection Devices Competence 25
Slide 26: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Self-Injection Devices: Drug & Device Ypsomed is the technology leader and number Diabetes Care one independent manufacturer of self-injection systems worldwide. Pen Needles Custom-made devices for a wide range of pharma and biotech partners. Marketed Self-Inject
Slide 27: Overview of Pharma Partnerships
Overview of Pharma Partnerships Insulin hGH interferon & EPO 27
Slide 28: Overview of Pharma Partnerships
Overview of Pharma Partnerships r-hFSH r-PTH ... and other partners 28
Slide 29: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Pen Needles: Drug & Device Development and manufacturing of pen Diabetes Care needles that fit all major brands of Self Injection Devices on the market (compatible Pen Needles with competitor pens) Patented click-on mechanism Self-Injection Devices Needles allow
Slide 30: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Diabetes Care: Drug & Device Local access to customers and opinion leaders Diabetes Care in various countries Direct distribution to customers in Germany Pen Needles DiaExpert GmbH Mail order and Online shop Self-Injection Devices Exploring acquisitions and new d
Slide 31: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Drug & Device: Drug & Device Combine Ypsomed’s technology competence Diabetes Care with distribution capabilities for peptide hormones as generic drugs to benefit from Pen Needles attractive margins within this growing market segments, e.g. human insulin. Self-In
Slide 32: Ypsomed's Growth Strategy
Ypsomed’s Growth Strategy Growth Drivers for Ypsomed: Drug & Device Diabetes market growing at more than 3% worldwide Diabetes Care Insulin market growing at more than 10% Strong growth in Lantus and Apidra Pen Needles Attractive biotech pipeline Generic drugs in new devices Self-Injection Devices T
Slide 33: Share Price Development
Share Price Development Share Price Development (22 September 2004 - 08 November 2006) 220 200 180 160 CHF 140 120 100 80 60 Sep 04 Dez 04 Mrz 05 Jun 05 Aug 05 Nov 05 Feb 06 Mai 06 Aug 06 Okt 06 Ypsomed SPI Index 22.9.04 (IPO), CHF 68.-- / 08.11.06, CHF 96.-- 33
Slide 34: Number of shareholders and Share Price
Number of shareholders and Share Price shareholders CHF 9000 250 Anzahl Aktionäre Aktienkurs 8000 217.00 7' 686 218.00 7' 280 200 7000 6' 465 6000 5' 759 5' 507 5' 622 5' 347 150 4' 947 145.00 5000 146.00 147.50 145.00 4' 404 123.10 4000 100 99.00 96.00 3000 74.40 1' 886 2000 50 1000 0 0 30.09.2004
Slide 35: Outlook
Outlook Ypsomed expects sales in 2006/07 to be lower than in the previous year. Based on today' s information we expect Ypsomed to grow thereafter within the market range. From 2009 on, sales should grow stronger than the market due to the introduction of new products within the frame of the extende
Slide 36: Agenda
Agenda Presentation of the Semi-Annual Results 2006/07 Summary Financials Operations Strategy and Outlook Questions and Answers 36
Slide 37: Questions & Answers
Questions & Answers YPS©MED SELFCARE SOLUTIONS aby 37
Slide 38: Reporting Dates
Reporting Dates Key reporting dates Presentation of Annual Results 2006/07 May 29, 2007 Annual Shareholder Meeting June 27, 2007 in Solothurn Presentation of Semi-Annual Results 2007/08 November 8, 2007 38