Skan Group Ag · SIX:SKAN
Skan — H1 2024 Earnings Presentation
22 slides from Skan's earnings presentation, Aug 20, 2024
Slide 1: Presentation of the HY 2024 Financial Results
SKAN Group AG Presentation of the HY 2024 Financial Results 20 August 2024
Slide 2: Disclaimer
SKAN Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. Th
Slide 3: Agenda
SKAN Agenda 1. Overview of HY 2024 Thomas Huber (CEO) 2. 3. 4. 20 August 2024 SKAN Group AG Presentation of the HY 2024 Financial Results 3
Slide 4: Highlights of the first half year
SKAN Highlights of the first half year Order Intake Net Sales High order backlog and book-to-bill ratio at 1.1 provide good in CHF million in CHF million visibility. 177.2 163.7 Solid order intake, slightly more than previous year but well above +1.1%(1) +17.2%(1) second half of 2023. Order pipeline
Slide 5: Both segments progressing well
SKAN Both segments progressing well Equipment & Solutions Strategic initiatives driven forward to develop integrated process systems and to increase the level of equipment standardization. SKAN spent once again around 8 percent of sales on these initiatives as well as on general R&D. Both projects a
Slide 6: New drugs increase consumption of AT-Closed Vial
New drugs increase consumption of AT-Closed Vial® SKAN Seven AT filled drugs on the market: Customer Product area Phase Besides the expansion of the installed base of SKAN equipment, which requires maintenance, requalification and DELYTACT®: Oncolytic virotherapy for brain spare parts, the volume in
Slide 7: Pre-Approved Services well on track
SKAN Pre-Approved Services well on track With its Pre-Approved Services, SKAN will offer customers the Key data possibility to carry out their stability tests on our systems. Equipment: This will allow our customers to shorten the time-to-market for a At start: filling equipment with potential to ex
Slide 8: Agenda
SKAN Agenda 1. 2. Financial Results HY 2024 Burim Maraj (CFO) 3. 4. 20 August 2024 SKAN Group AG Presentation of the HY 2024 Financial Results 8
Slide 9: Order intake momentum has normalized at a good level
SKAN Order intake momentum has normalized at a good level Order intake Order intake by regions Comments (CHFm and ∆ in%) (CHFm and ∆ in%) 2.2x 1.0x 1.3x 0.7x 1.1x Order intake is in line with our expectations. +1.0% With a book-to-bill ratio of 1.1x, 263.3 88.1 89.0 visibility for net sales developm
Slide 10: Robust growth in net sales and solid order backlog
SKAN Robust growth in net sales and solid order backlog Net sales Order backlog Comments (CHFm and ∆ in%) (CHFm and ∆ in%) Net sales grew by +17.2% y-o-y. At constant exchange rates (CER), growth exceeds guidance with 20.7%. +17.2% +5.1% 163.7 328.0 Both segments contributed to growth, 312.1 with S&
Slide 11: SKAN's project business characterized by non-linearity of value creation and cash-in
SKAN’s project business characterized by non-linearity of SKAN value creation and cash-in General value creation structure Cash-in through advance payments from (in % per project milestone) customers at the beginning of a project and at EBIT realisation Value creation Cash-In milestones (start of ma
Slide 12: Margin within the target corridor of the guidance
SKAN Margin within the target corridor of the guidance Expenses EBITDA Comments (CHFm) (CHFm and margin in %) EBITDA grew 15.7% to CHF 21.5m, +97 +31 13.3% 13.1% corresponding to an EBITDA margin of 13.1%. +15.7% Following factors impacted the margin: 21.5 Many projects were in the early design 22.1
Slide 13: Segment Equipment & Solutions (E&S)
SKAN Segment Equipment & Solutions (E&S) Order intake Net sales EBITDA Comments (CHFm) (CHFm and as of % of Group net sales) (CHFm and margin in %) 340.5 332.7 349.5 289.9 294.2 73.8% 73.4% 9.2% 7.4% Order intake with a moderate decline year-on-year, which is attributable to customers’ initial +16.6
Slide 14: Segment Services & Consumables (S&C)
SKAN Segment Services & Consumables (S&C) Order intake Net sales EBITDA Comments (CHFm) (CHFm and as of % of Group net sales) (CHFm and margin in %) 35.1 33.8 26.2% 26.6% 24.7% 28.9% Order intake grew +11.1% to CHF 52.3m in HY 2024. Net sales grew 18.9% to CHF +11.1% +18.9% +39.1% 43.6m. Growth driv
Slide 15: Cash flow driven by non-linearity of projects & investments in future growth
SKAN Cash flow driven by non-linearity of projects & investments in future growth Cash flow Comments (CHFm) Main investments in HY 2024: investments primarily allocated to -37.1 the strategic initiative (-43.5%) "Pre-Approved-Services”. 21.3 -20.6 further purchase of 5% AT shares 85.1 to a total of
Slide 16: Strong balance sheet & finance structure
SKAN Strong balance sheet & finance structure Balance sheet as of 30th June 2024 Comments (CHFm) SKAN Group posts a net cash position -5.6% -5.6% of CHF 41.8 million as of 30th June 373.4 373.4 2024. 352.4 352.4 The decrease in cash and cash equivalents during the reporting period is Other current a
Slide 17: Agenda
SKAN Agenda 1. 2. 3. Outlook 2024 Thomas Huber (CEO) 4. 20 August 2024 SKAN Group AG Presentation of the HY 2024 Financial Results 17
Slide 18: Century of biology: Shift toward injectable biotech drugs drives need for aseptic process solutions
SKAN Century of biology: Shift toward injectable biotech drugs drives need for aseptic process solutions 0% of top 10 drugs 50% of top 10 drugs 70% of top 10 drugs 2005 injectable dosage form 2020 injectable dosage form 2023 injectable dosage form Eylea Comirnaty Lipitor Zoloft Humira Humira Regener
Slide 19: Confident market and business outlook
SKAN Confident market and business outlook Demand momentum in our market is expected to continue at a high level. Main drivers are: The underlying growth of the global (bio-) pharmaceutical market; The reinforcing trend towards injectable drugs (three quarters of the drugs in development are now des
Slide 20: Guidance confirmed
SKAN Guidance confirmed Metric 2024 Targets (1) Mid-Term Outlook Group net sales growth Mid- to upper teens Mid- to upper teens (2) Segment net sales growth E&S S&C E&S S&C Gradually increase profitability level to upper EBITDA margin 13 - 15% teens in the mid-term. Potential for further increase be
Slide 21: Together always one step ahead!
SKAN Together always one step ahead! 21
Slide 22: Abbreviations and Definitions
SKAN Abbreviations and Definitions Alternative Financial Performance Measures (APM) EBITDA: Operating result (EBIT) plus depreciation, amortisation. Net working capital (NWC): Total current assets (excluding cash and cash equivalents) minus trade payables, advance payments from EBITDA margin: EBITDA