Medartis Holding Ag · SIX:MED
Medartis — FY2024 Earnings Presentation
40 slides from Medartis's earnings presentation, Mar 18, 2025
Slide 1: 2024 Full-year results
2024 | Full-year results Matthias Schupp, CEO | Dirk Kirsten, CFO Basel, 18 March 2025
Slide 2: Disclaimer
Disclaimer This communication does not constitute an offer or invitation to subscribe for or purchase any securities of Medartis Holding AG. This publication may contain certain forward-looking statements and assessments or intentions concerning the company and its business. Such statements involve
Slide 3: Agenda
Agenda 1 Opening remarks and highlights 2024 Matthias Schupp, CEO 2 Financial review Dirk Kirsten, CFO 3 Strategic direction: from head to toe Matthias Schupp, CEO 4 Outlook 2025 Matthias Schupp, CEO 5 Annual Report and upcoming corporate events 3
Slide 4: Opening remarks and highlights 2024
Opening remarks and highlightes 2024 Matthias Schupp, CEO
Slide 5: My first impression and actions
My first impression and actions During my visits since November, I have met engaged and highly motivated teams Customer and distributor meetings since November confirmed that surgeons like our product quality with opportunities to enhance customer experience New US President search started in August
Slide 6: Full-year 2024 Key figures
Full-year 2024 │Key figures Core revenue EBITDA Value market Growth story growth Margin in % segment continues + 11.7% CER 19.0% core NeoOrtho 2025 Total net sales reached CHF …we made important Acquisition of a 51% We expect acceleration in 224.8 million progress in improving controlling stake in B
Slide 7: We warmly welcome our new US President
We warmly welcome our new US President David Thoni appointed as US President and member of the EMB (effective 6 January 2025) Leading 140 employees across all functions Proven Leadership Experience incl. Chief Growth Officer at Independence Dental (13-state GPO dental network); senior roles at Clear
Slide 8: One Team
ONE TEAM CEO Matthias Schupp My executive team Assistant CEO – Board Secretary Antonietta Fasolin COO CTO CFO CHRO President US President EMEA Mario Della Casa Manuel Schaer Dirk Kirsten Inge Maes David Thoni Mareike Loch 8
Slide 9: EMEA was the key growth contributor
EMEA was the key growth contributor Net sales in million CHF and core growth yoy (CER) +8.5% CER Core +11.7% 5.3 224.8 7.0 0.4 -2.2 219.6 17.8 212.0 -10.8 -4.6 196.7 17.0% 17.3% 1.2% -10.8% Total sales NSI 3rd party FX FX-adj FY EMEA US 1 APAC LATAM FY 2024 NSI 3rd party Total sales FY 2023 2023 cor
Slide 10: Outperforming the market, but internal targets remain to be met
Outperforming the market, but internal targets remain to be met FY 2024 revenue Core growth by region in CHF yoy @CER ▪ EMEA: 17.0% sales growth with double-digit growth across all EMEA 122.8 17.0% subsidiaries and particularly strong performance in Spain, Poland and UK. US 47.1 17.3% ▪ US: Core bus
Slide 11: Financial review
Financial review Dirk Kirsten, CFO
Slide 12: Overview of the financial results
Overview of the financial results Sales growth Stable gross profit margin − Group sales increased 6.1% (in CHF) − Core gross profit margin increased 0.3PP (CER) − 2.5PP FX headwind to 82.8% − Core sales rose by 11.7% (CER) − Reported gross margin reached 79.5% incl. NSI's custom manufacturing busine
Slide 13: Gross margin: Stable margin despite higher share of distribution products
Gross margin | Stable margin despite higher share of distribution products in % of net sales 0.3 PP 0.1% -0.5% 0.7% 82.8 -3.3% 3.9% 82.5 − Negative price impact from Australia and Brazil; generally maintained high price discipline and 79.5 favorable product mix 79.0 -0.4% − Higher share of distribut
Slide 14: EBITDA margin: Strong year-on-year improvement
EBITDA margin | Strong year-on-year improvement in % of net sales 2.4 21.4 +2.7 PP − Maintained cost discipline 0.8 19.0 1.6 at headquarters while 2.7 16.3 0.3 continued investment into all growth markets 14.4 -0.8 − Improved US P&L following the initial phase of duplicated operations and start-up e
Slide 15: Accounting impacts: Core results enhancing transparency
Accounting impacts | Core results enhancing transparency and facilitating period-to-period comparison In CHF million FY 2024 Non-core items FY 2024 FY 2023 as reported, NSI M&A NSI contract IFRS effects manufacturing Other Core Core − Revaluation of NSI acquisition Net revenue 224.8 -5.2 219.6 201.2
Slide 16: Net result: Returning to decent profit
Net result | Returning to decent profit In CHF million CHF +7.2 million 0.6 -1.9 − Improved financial result 0.6 (better FX result) and tax 1.2 11.4 -7.9 result offset new interest 6.8 expenses from convertible bond launched in April 2024 − Underlying net profit margin improved year-on-year from 2.1
Slide 17: Free Cashflow: Improving sales-to-cash conversion
Free Cashflow | Improving sales-to-cash conversion in CHF million Cash balance at year-end 22.1 -10.0 − Continued investments into 138.7 8.0 20.1 Sets across all markets (CHF 13 million, both inventory and CAPEX) − Manufacturing footprint in US further expanded to allow more production for 25.2 own
Slide 18: Strategic direction: from head to toe
Strategic direction: from head to toe Matthias Schupp, CEO 18
Slide 19: Our behaviours, goals and commitment
Our behaviours, goals and commitment Agility & Entrepreneurial Decision- Mindset Making IT Innovation CUSTOMER Promote CENTRICITY Ownership Education Engagement Attitude WE I Digitalisation Psychological Passion for Safety Learning WE (representing teamwork and collaboration), I (representing indivi
Slide 20: Our focus: from head to toe
Our focus: from head to toe Our legacy Global leadership Growth accelerator opportunity 20
Slide 21: Share potential in all our segments
Share potential in all our segments Medartis core sales (breakdown in %, 2024) Our addressable market1 CMF & others 1.8 2.5 Lower Extremeties CHF 225 million CHF 8 billion CHF 250 million H&W incl. Keri Medical on a pro forma basis) Other Upper extremities 3.5 Keri Medical 21 1 Source: DRG, OrthoWor
Slide 22: CMF: refocus on our foundation
CMF | refocus on our foundation CMX case planning for lower jaw correction ▪ CMF is our legacy ▪ CMX: Trend towards more personalised patient solutions ▪ Our spearhead of the digital transformation ▪ Leverage existing internal knowledge more effectively ▪ USA market entry in preparation ▪ FDA regist
Slide 23: Hand & wrist: we have a right to win
Hand & wrist | we have a right to win in hand & wrist Digital case planning of a distal radius fracture treatment ▪ Next-generation hand system launch scheduled for EMEA in May 2025, expanding Medartis' comprehensive portfolio ▪ We have a very comprehensive portfolio for hand and wrist ▪ Digital CMX
Slide 24: Keri Medical is a pivotal growth driver in the EMEA region
Keri Medical is a pivotal growth driver in the EMEA region Share of business (SOB) in active countries, i.e. Austria, Germany & UK ▪ Sales of the TOUCH prosthesis nearly doubled (strong adoption among new surgeons and increased procedure volumes from existing users) ▪ The Keri Medical distribution b
Slide 25: Our strategic priorities
Our strategic priorities CUSTOMERS AT THE CENTRE OF WHAT WE DO Accelerate Keri Medical Value Regional Innovation & Improve US Strategy share gains Digitalisation Cashflow HIGH PERFORMANCE CULTURE with a performance team 25 25
Slide 26: Accelerate US: strategic and geographical focus
Accelerate US | strategic and geographical focus US hybrid sales force comprising 57 distribution partners − The US business will focus geographically, the upper extremities and on exclusive distribution partners − Comprehensive performance review of all 280 people distribution partnerships initiate
Slide 27: Value strategy: entry into the attractive value segment
Value strategy | addressing the entry into the attractive value segment LATAM orthopeadic market (in % of total surgical value) − Focus on markets with high value share (~75%) where premium segment is shrinking − Value segment represents strategic growth opportunity without compromising quality, esp
Slide 28: Value strategy: Our opportunity
Value strategy | Our opportunity Visualisation of new NeoOrtho facility in Curitiba, Brazil − Specialises in trauma, CMF and spine implants, with a focus on making tested surgical solutions more accessible to a broader population through competitive pricing in public hospital tenders − Dual-brand st
Slide 29: Value strategy: Expanding with the Brazilian acquisition
Value strategy | Expanding into the fast-growing value segment with the Brazilian acquisition Visualisation of new NeoOrtho facility in Curitiba, Brazil − We will acquire initial stake of 51% − The transaction will be funded primarily through existing cash reserves and bank facilities − Closing is e
Slide 30: 198 dedicated new colleagues from NeoOrtho
198 dedicated new colleagues from NeoOrtho 30
Slide 31: APAC: Back to growth in 2025
APAC | Back to growth in 2025 Reimbursement price cuts in Australia will annualise by the middle of the year Launch of Keri Medical’s Touch in Australia has exceeded expectations, with strong demand from both existing and new surgeons Amid our transition to sell directly in Japan. Kenyu Kobayashi ap
Slide 32: Outlook 2025
Outlook 2025 32
Slide 33: New product launches strengthening our core business
New product launches to strengthening our core business Avenger1 New Hand Generation Dorsal Olecranon CMX Radial head system Complete hand system Elbow fixation Digital planning and PSI for our (elbow arthoplasty) entire portfolio 33 1 Acquired from In2Bones Global, Inc., a wholly owned subsidiary o
Slide 34: Outlook 2025
Outlook 2025 (barring any unforeseen circumstances) ORGANIC1 GROWTH CORE EBITDA MARGIN (at CER) 13%-15% High teens range Core Sales Operating leverage and cost discipline 1 "Organic growth" denotes the increase in sales at constant exchange rates (CER), excluding the impact of mergers, acquisitions
Slide 35: Q&A
&A medartis 35
Slide 36: Integrated Annual Report available on our website
Integrated Annual Report available on our website 36
Slide 37: Website relaunched
medartis Website relaunched medartis #back2fun 37
Slide 38: Upcoming corporate events
Upcoming corporate events Date Event Broker Destination 2025 18 March 2024 full-year results publication Basel, HQ 19 March Investor meetings ZKB Zurich 20 March Investor meetings Stifel London 25 April Annual General Meeting 2025 Basel, HQ 19 August 2025 first-half results publication 05-07 Novembe
Slide 39: Analyst coverage
Analyst coverage: For independent research opinions Broker Analyst Email Telephone Octavian Sandra Dietschy sandra.dietschy@octavian.ch +41 44 518 08 27 Research Partners AG Alexander Burgansky alexander.burgansky@researchpartners.ch +41 44 533 40 30 Stifel Nicolaus Europe Ltd. Dylan Van Haaften dyl
Slide 40: Thank you
THANK YOU! info@medartis.com +41 61 633 37 36 Hochbergerstrasse 60E 4057 Basel/Switzerland M E D A R T I S . C O M 40