STADA Arzneimittel — FY2014 Earnings Presentation
37 slides from STADA Arzneimittel's earnings presentation, Mar 26, 2015
Slide 1: Press and Analysts' Conference March 26, 2015
Press and Analysts’ Conference March 26, 2015
Slide 2: General information
General information By making use of this document the reader acknowledges and agrees to the following: We accept no liability arising from the use of this document. STADA Arzneimittel AG, Bad Vilbel (in the following “STADA”), has made every effort to make sure that this document contains correct a
Slide 3: Forward-looking statement
Forward-looking statement This STADA Arzneimittel AG presentation (hereinafter "STADA") contains certain statements regarding future events that are based on the current expectations, estimates and forecasts on the part of the company management of STADA as well as other currently available informat
Slide 4: Overview 2014
Overview 2014 Hartmut Retzlaff
Slide 5: Target achievement 2014
Target achievement 2014 Prognosis Result Sales: Slight growth 2,062.2 € million +3% Adjusted EBITDA: Slight growth 431.9 € million +4% Adjusted net income: Slight growth 186.2 € million +16% Press and Analysts’ Conference March 26, 2015 www.stada.com Page 5
Slide 6: Operative Highlights 2014
Operative Highlights 2014 Sales (organic)1): • Group +1%: despite difficult market environment • Central Europe +3%: strong performance in the UK, Italy, Belgium and Spain • Russia -6%: cost discipline and portfolio optimization at the forefront • Branded products with strong trend (+6%) Business de
Slide 7: Sales split 2014
Sales split 2014 Sales of core segments 40% 60% Branded Products Generics (OTC and RX Specialty Pharmaceuticals) (RX and OTC) EBITDA margin adj.: 30.3% EBITDA margin adj.: 18.8% Press and Analysts’ Conference March 26, 2015 www.stada.com Page 7
Slide 8: Expansion of the Branded Products segment
Expansion of the Branded Products segment 51% 52% 46% 40% 36% 37% 36% 32% 33% 27% 28% 26% 2009 2010 2011 2012 2013 2014 Share of Branded Products in sales1) Share of Branded Products in adjusted operating profit1) 1) of the two core segments Generics and Branded Products. Press and Analysts’ Confere
Slide 9: Strong brands in 2014
Strong brands in 2014 No. Branded Product Growth in % Sales in € million Indication ® 1. ApoGo (RX) +18 51.3 Parkinson 2. Aqualor®1) (OTC) 40.3 Cough and cold 3. Grippostad® (OTC) -14 33.7 Cough and cold 4. Snup® (OTC) +34 33.0 Rhinitis 5. Ladival® (OTC) +63 26.1 Sun Protection 6. Vitaprost® (RX) -1
Slide 10: Results 2014 and Outlook 2015
Results 2014 and Outlook 2015 Helmut Kraft
Slide 11: Growth components 2014
Growth components 2014 Group sales in € +6.9% -4.6% 2,003.9 +0.6% 2,062.2 2013 Organic1) Portfolio Currency 2014 1) Adjusted for changes in the Group portfolio and currency effects. Press and Analysts’ Conference March 26, 2015 www.stada.com Page 11
Slide 12: Sales 2014
Sales 2014 By market region Total group € 2,062.2 million +3% (+1%) Asia & Pacific € 94.1 million Germany +52% (-0.4%) € 447.3 million 4.5% -2% (-2%) 21.7% CIS/Eastern Europe € 564.5 million 27.4% -10% (-1%) 46.4% Central Europe € 956.3 million +11% (+3%) (x) = Adjusted for changes in the Group port
Slide 13: Growth developments in Russia
Growth developments in Russia Development of sales 2012-2014 (sell-out) Growth components Retail-Market 2014 in RUB billion Growth Retail-Market Growth STADA STADA Sales 13% 17% 0.8% 12.0% 10% 1.5% 11% 10% 12% 7.5% 17.53 13.60 14.92 4.6% 2012 2013 2014 Price Structure Volume New Total products Growt
Slide 14: Branded Products
Branded Products Sales Adj. EBITDA Regional Sales Development (in € million) (in € million) Asia & Pacific +14% +7% € 26.9 million Germany +40.4% (+0.4%) 3.4% € 146.8 million 800.5 +19.3% (+19.3%) 704.4 18.3% CIS/Eastern Europe 225.1 240.0 € 315.5 million 39.4% -4.7% (+1.9%) Central Europe 38.9% € 3
Slide 15: Generics
Generics Sales Adj. EBITDA Regional Sales Development (in € million) (in € million) -1% +7% Asia & Pacific € 58.0 million Germany +69.6% (-2.0%) 4.7% € 300.5 million 1,227.9 1,217.7 0.0% (-0.0%) CIS/Eastern Europe € 247.9 million 20.4% 24.7% 213.4 228.7 -16.3% (-4.4%) Central Europe 50.2% € 611.3 mi
Slide 16: Key earnings figures 2014
Key earnings figures 2014 EBITDA (in € million) 2014 vs. 2013 Net income (in € million) 2014 vs. 2013 reported adjusted1) reported adjusted2) +9% +4% +16% -47% 414.3 431.9 418.8 382.6 186.2 160.6 121.4 64.6 2013 2014 2013 2014 2013 2014 2013 2014 1) Adjusted for one-time special effects. 2) Adjusted
Slide 17: Net income adjustments in 2014
Net income adjustments in 20141) in € million 7.4 3.6 186.2 20.7 101.3 64.6 10.6 Reported net Delta additional Value Translation Extraordinary Measurement of Adjusted net income depreciation/amor- adjustments expense of income and derivative income tization and other significant expenses financial m
Slide 18: P&L details 2014
P&L details 2014 in € million 2014 in € 2014 in % 2013 in € 2013 in % million of Sales million of Sales Burden from additional depreciation/amortization Gross profit 991.8 48.1 979.4 48.9 from acquisitions and the CIS crisis Selling expenses 458.4 22.2 488.2 24.4 Strict cost control Income in connec
Slide 19: Analysis of the tax rate
Analysis of the tax rate Development of the adjusted tax rate Outlook adjusted tax rate 32.7% <25% 24.2% 2013 2014 2015e Significant reduction in the tax rate in 2014: • The improvement of the tax rate primarily results from a changed profit allocation; since the end of 2013, STADA Arzneimittel AG h
Slide 20: Stable balance sheet structure
Stable balance sheet structure Assets in € million Dec. 31, 2014 Dec. 31, 2013 A. Non-current assets 2,013.8 2,060.0 B. Current assets 1,321.7 1,353.2 Total assets 3,335.5 3,413.2 Equity and liabilities in € million Dec. 31, 2014 Dec. 31, 2013 A. Shareholders’ equity 903.4 1,010.1 B. Non-current lia
Slide 21: Cash flow from operating activities and adjusted free cash flow
Cash flow from operating activities and adjusted free cash flow Cash flow from operating activities (in € million) 2010-2014 212.7 223.8 194.8 203.7 169.0 2010 2011 2012 2013 2014 Adjusted free cash flow1) (in € million) 2010-2014 135.0 149.6 157.4 123.3 133.3 2010 2011 2012 2013 2014 1) Free cash f
Slide 22: Balanced and stable financing structure
Balanced and stable financing structure Remaining maturities of financial liabilities due to banks as of December 31, 2014 in € million Corporate bond Credit Promissory notes 350.0 14.3 30.2 350.0 270.0 48.2 188.0 72.2 50.5 44.0 34.3 40.0 2015 2016 2017 2018 2019 > 2019 • In 2014, STADA was able to
Slide 23: Dividend proposal
Dividend proposal Dividend per STADA common share in € 0.66 0.66 Dividend payout 2014: € 40.0 million (2013: € 39.8 million) Dividend policy Appropriate share of reported net income to shareholders 2013 2014 Pay-out ratio 62% 33% 2013 2014 Press and Analysts’ Conference March 26, 2015 www.stada.co
Slide 24: Outlook 2015
Outlook 2015 Group: • Slight growth in sales adjusted for currency and portfolio effects • Substantial decrease in adjusted EBITDA and adjusted net income • Net debt, excluding further acquisitions, to adjusted EBITDA ratio of nearly 3 Adjustment for special effects in connection with the translatio
Slide 25: Assumptions for market regions for 2015
Assumptions for market regions for 2015 Operational influence factors • Decline in sales, operating profitability under Group average Germany • Stable sales of generics and brands in Germany, decline in export business due to reclassification • Sales growth, operating profitability at Group average
Slide 26: Influence factors Q1/2015
Influence factors Q1/2015 Exceptionally strong comparative quarter in Q1/2014: • Pull-forward effects in the German branded products area • One-time inventory effects in Ukraine Pull-forward effects in Q4/2014: • Partial inventory build-up in Russia in the context of high inflation rates and potenti
Slide 27: Strategic Initiatives
Strategic Initiatives Hartmut Retzlaff
Slide 28: Strategic initiatives 2014
Strategic initiatives 2014 STADApharm withdraws from tender business • Previously concluded contracts, some of which continue until 2017, will still be fulfilled by STADApharm • Remaining sales companies will participate in tenders for discount agreements following the objective of appropriate opera
Slide 29: Strategic initiatives 2015 – positioning for the future
Strategic initiatives 2015 – positioning for the future Organic growth has priority • Pushing of existing and acquired brands • Internationalization of leading brands Full pipeline • Generics: over 1,300 running approval procedures as of Dec. 31, 2014 • Development partnerships • Branded products: C
Slide 30: Strong sales growth in branded products area in 2014
Strong sales growth in branded products area1) in 2014 242.7 € million 124.0 € million 118.2 € million 25.2 € million 30.7 € million 24.2 € million 20.7 € million Russia Germany UK Italy -3.8% +12% +73.4% Poland +18.6% Vietnam 19.9 € million +29.8% Ukraine +45.4% -24.1% France +86.1% 18.8 € million
Slide 31: Center of OTC Excellence – Internationalization: Ladival Example
Center of OTC Excellence – Internationalization: Ladival Example Press and Analysts’ Conference March 26, 2015 www.stada.com Page 31
Slide 32: Expansion of biosimilar portfolio
Expansion of biosimilar portfolio Limited-risk licensing strategy – focus on marketing & sales • Since 2008: in-house development of Silapo® (Epoetin zeta) • Development of Rituximab in cooperation with Gedeon Richter • 2014: introduction of Grastofil® (Filgrastim) through cooperation with Apotex •
Slide 33: Successful product supplements
Successful product supplements Acquisitions in 2014 • Purchase of cosmetics line Claire Fisher • Acquisition of the Russian branded product portfolio Aqualor® • Purchase of production and distribution rights for the branded products portfolio Flexitol® for the United Kingdom and Ireland (internation
Slide 34: Active acquisition policy in 2015
Active acquisition policy in 2015 Leverage ratio of 3.1 as of Dec. 31, 2014 allows for smaller bolt-on acquisitions • Focus on branded products • Platforms in growth markets Steady flow of smaller product acquisitions, preferably in the self-pay patient segment • Products in profitable, fast-growing
Slide 35: Cooperation with Hetero Drugs Ltd., India (LOI) – significant synergies
Cooperation with Hetero Drugs Ltd., India (LOI) – significant synergies Synthetic active pharmaceutical ingredients • Obtaining low-cost active pharmaceutical ingredients in the form of finished goods for existing products and new developments Dossiers • Access to numerous dossiers for the EU and, i
Slide 36: Financial Calendar 2015
Financial Calendar 2015 05/07/2015 Publication of Q1/2015 results 06/03/2015 Annual General Meeting 08/06/2015 Publication of 2015 interim results 09/15/2015 Capital Markets Day (St. Petersburg, Russia) 11/12/2015 Publication of Q3/2015 results Press and Analysts’ Conference March 26, 2015 www.sta
Slide 37: Your Contact
Your Contact STADA Arzneimittel AG Investor Relations Vice President Investor Relations 61118 Bad Vilbel, Deutschland Dr. Markus Metzger Telefon: +49 (0) 6101 603-113 markus.metzger@stada.de Telefax: +49 (0) 6101 603-506 E-Mail: ir@stada.de www.stada.de Media Relations Director Media Relations 61118