Medartis Holding AG · SIX:MED
Medartis — H1 2019 Earnings Presentation
27 slides from Medartis's earnings presentation, 2019
Slide 1: 2019 Half-Year Results
2019 | Half-Year Results Presentation for investors, analysts and the media Salome Trainee, Medartis
Slide 2: Disclaimer
Disclaimer This presentation is not an offer to sell or a solicitation of offers to purchase or subscribe for shares of Medartis Holding AG, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Thi
Slide 3: 2019 Half-Year Highlights, Business Development and Priorities, Half-Year Financials
2019 Half-Year Highlights Business Development and Priorities 2019 Half-Year Financials Willi Miesch, Chief Executive Officer Dominique Leutwyler, Chief Financial Officer
Slide 4: 2019 Half-Year Highlights
2019 | Half-Year Highlights Simon Polymechanic, Medartis
Slide 5: Key figures half-year 2019 vs half-year 2018
Key figures half-year 2019 vs half-year 2018 Sales in CHFm EBITDA in CHFm Employees 64.5 8.7 588 +6% in CHF +15% +8% in local currencies 13% EBITDA margin 78 new jobs added Half-Year Highlights Medartis 2019 Half-Year Results 5
Slide 6: 2019 Half-Year Financials
2019 | Half-Year Financials Markus Head Sales China & Japan, Medartis
Slide 7: Consolidated financial statements
Consolidated financial statements Half-Year Financials Medartis 2019 Half-Year Results 7
Slide 8: Regions half-year 2019 vs half-year 2018
Regions half-year 2019 vs half-year 2018 Sales breakdown / regions in CHFm Growth / regions H1 2019 vs H1 2018 Total 6% in CHF Total 8% in LC 64.5 61.0 7.6 LATAM 16% 21% 6.5 9.3 10.7 North America 14% 11% 11.2 11.5 APAC 3% 8% 34.0 34.7 EMEA 2% 5% H1 2018 H1 2019 Half-Year Financials Medartis 2019 Ha
Slide 9: Business segments half-year 2019 vs half-year 2018
Business segments half-year 2019 vs half-year 2018 Sales breakdown / segments in CHFm Growth / segments H1 2019 vs H1 2018 Market CAGR 2016 - 2022(1) Total 6% in CHF Total 8% in LC 64.5 61.0 43.5 45.9 Upper Extremeties 5% 8% 7% 9.0 Lower Extremeties 9% 12% 7% 8.3 9.2 9.6 CMF and Others 4% 7% 6% H1 2
Slide 10: Gross margin half-year 2019 vs half-year 2018
Gross margin half-year 2019 vs half-year 2018 Gross margin and COGS Main Drivers ▪ Pressure on prices in the market ▪ Growth in higher priced markets 50.3 54.0 Gross profit CHFm ▪ Continued higher priced product innovation 17.6% 16.2% COGS as % of sales ▪ Lean program in manufacturing 82.4% 83.8% Gr
Slide 11: Operating Expenses half-year 2019 vs half-year 2018
Operating Expenses half-year 2019 vs half-year 2018 Operating expenses in CHFm Main Drivers Research and development ▪ Reflects higher development efforts to upgrade product portfolio 74% 80% as % of sales ▪ Higher costs due to new registration requirements +14% 51.7 Research and Administration 45.2
Slide 12: Focus on OPEX alongside further business investments
Focus on OPEX alongside further business investments EBITDA, in CHFm Main drivers ▪ Overall sales below expectations ▪ Solid sales growth in subsidiaries and in Upper Extremity 15% 13% As % of sales ▪ Goals in LATAM, for certain European distributor markets and in Lower Extremities not achieved -3%
Slide 13: Business Development and Priorities
Business Development and Priorities Kylian Project Manager Process Engineering, Medartis
Slide 14: Becoming a global top player in major small bone markets
Becoming a global top 3 player in major small bone markets Expand sales and Remain the innovation In-house manufacturing Maintain and establish marketing efforts to leader for small bone of Swiss-made quality long-term relationships increase revenues solutions and new surgical products priced at app
Slide 15: Globally diversified business
Globally diversified business North America (US) Revenue share 16.5% CHF 10.7m APAC LC growth 11% Revenue share 18% CHF 11.5m LC growth 8% LATAM Revenue share 11.5% CHF 7.6m EMEA LC growth 21% Revenue share 54% CHF 34.7m LC growth 5% Headquarters 11 subsidiaries 40 countries with distribution partne
Slide 16: EMEA
EMEA 2019 half-year results ▪ CHF 34.7 million (+2% in CHF / +5% in local currencies) Highlights and observations ▪ Ongoing solid growth of subsidiaries ▪ Business investments in distributor markets below expectations due to general market uncertainty in view of the introduction of the new European
Slide 17: North America
North America 2019 half-year results ▪ CHF 10.7 million (+14% in CHF / +11% in local currency) Highlights and observations ▪ Measures to strengthen management capacities and sales structures began to take effect ▪ Strengthening collaboration with distributors ▪ Expansion of professional relationship
Slide 18: APAC
APAC 2019 half-year results ▪ CHF 11.5 million (+3% in CHF / +8% in local currencies) Highlights and observations ▪ Solid performance in Australia, but impacted by a country-wide reduction of all reimbursements in the healthcare sector by 7% ▪ In Japan distributor business in the upper extremities s
Slide 19: LATAM
LATAM 2019 half-year results ▪ CHF 7.6 million (+16% in CHF / +21% in local currencies) Highlights and observations ▪ Region with strongest growth momentum in H1 2019 ▪ Persistently challenging market environment in the first half of the year ▪ Subsidiary in Brazil showed significant growth of 45% i
Slide 20: Upper extremities
Upper extremities 2019 half-year results ▪ CHF 45.9 million (+5% in CHF / +8% in local currencies) Highlights and observations ▪ Hand and wrist continued previous growth path ▪ Shoulder system shows first positive, although still modest, growth momentum ▪ H1 2019 results impacted by restrained inves
Slide 21: Lower Extremities
Lower Extremities 2019 half-year results ▪ CHF 9.0 million (+9% in CHF / +12% in local currencies) Highlights and observations ▪ Growth below expectations, also reflecting larger initial distributor investments in H1 2018 ▪ Strong international KOL group to help build and grow the business ▪ Strengt
Slide 22: CMF and Others
CMF and Others 2019 half-year results ▪ CHF 9.6 million (+4% in CHF / +7% in local currencies) Highlights and observations ▪ Solid growth in CMF ▪ Restrained distributor investments due to planned introduction of new CMF product line in 2020 H2 2019 priorities ▪ Further develop next CMF generation,
Slide 23: Summary and outlook
Summary and outlook 2019 first half-year performance ▪ Further solid growth compared to the market in the first half of 2019, albeit lower than expected ▪ Continued investments in expanding market position and portfolio ▪ Solid profitability with EBITDA margin of 13% 2019 full-year outlook ▪ Sales g
Slide 24: Appendix
Appendix Ruth Post-Market Surveillance Manager, Medartis Markus Arigoni | Head Sales China & Japan
Slide 25: Medartis success factors
Medartis success factors Accelerating global roll-out and Disciplined capital management and Entrepreneurial management and momentum strong financial profile experienced team of employees Fully-fledged organization under one roof Intensive collaboration with key Swiss-made products at competitive me
Slide 26: Consolidated balance sheet
Consolidated balance sheet Appendix Medartis 2019 Half-Year Results 26
Slide 27: Consolidated balance sheet
Consolidated balance sheet Appendix Medartis 2019 Half-Year Results 27