Galenica Ag · SIX:GALE
Galenica — FY2020 Earnings Presentation
23 slides from Galenica's earnings presentation, Mar 9, 2021
Slide 1: Annual financial statements 2020
Galenica Group Annual financial statements 2020 Felix Burkhard, CFO Media and analysts’ conference, 9 March 2021 Galenica – Health and wellbeing are at the heart of what we do.
Slide 2: Step by step upwards - 2020: Break due to COVID-19
Step by step upwards 2020: Break due to COVID-19 09.03.2021 © Galenica Group 2
Slide 3: Stable result despite COVID-19
Galenica Group Stable result despite COVID-19 Net sales (in million CHF) EBIT adjusted1) (in million CHF) +5.4% +1.0% 3’301 3’480 166.9 168.6 2019 2020 2019 2020 09.03.2021 © Galenica Group 1) Details of the adjustments of IAS19 and IFRS16 effects, in the Annual Report 2020, pages 89 and 90 3
Slide 4: Retail: Strong expansion of the pharmacy network
Retail Strong expansion of the pharmacy network Net sales (in million CHF) Expansion of the pharmacy +2.7% network 2019 2020 Pharmacies added +19 +17 1’516 1’556 Pharmacies restructured -8 -7 Net pharmacies added +11 +10 Elements of growth: 2019 2020 Expansion1) : +5.6% +3.2% Organic2) : +0.4% -0.5%
Slide 5: Retail: COVID-19 related sales losses compensated by strong online growth
Retail COVID-19 related sales losses compensated by strong online growth Pharmacies in high-frequency Strong online growth: Absence of cough & colds: locations strongly affected: − Sales of webshops tripled Sales losses of cough & cold and travel- − Average fall in sales -23% − Mediservice sales > C
Slide 6: Products & Brands: Strong sales growth due to expansion of product portfolio
Products & Brands Strong sales growth due to expansion of product portfolio Net sales (in million CHF) +9.4% 112 102 24 +22.3% 20 82 87 +6.3% Elements of growth: 2019 2020 Expansion1) : +9.2% +17.3% Organic2) : +2.1% -7.9% thereof Swiss market : -0.1% -7.2% International sales Sales in the Swiss Mar
Slide 7: Growth of OTC market driven by prevention products
Growth of OTC market driven by prevention products Consumer Healthcare Market 2020 Total cough & cold products part of OTC segment: 3.4% OTC +4.4% 13.2% Personal CHF care -3.7% million 21.1% 2’585 Patient +3.5% 62.3% care +12.3% Nutrition +4.0% Source: IQVIA Pharmatrend for pharmacies and drugstores
Slide 8: Health & Beauty Segment: Stable EBIT despite significant impact of COVID-19
Health & Beauty Segment Stable EBIT despite significant impact of COVID-19 Net sales (in million CHF) EBIT adjusted1) (in million CHF) +3.1% +0.2% 1’621 1’671 123.7 123.9 2019 2020 2019 2020 Estimated impact of COVID-19: − EBIT: negative impact of CHF -8 to -10 million 09.03.2021 © Galenica Group 1)
Slide 9: Services: Strong sales development due to market share gains
Services Strong sales development due to market share gains Net sales (in million CHF) EBIT adjusted1) (in million CHF) +7.8% +1.6% 2’441 2’632 44.7 45.4 2019 2020 2019 2020 One-time effect of adapted +2.3% Estimated impact of COVID-19: invoicing models2): − Net sales: +1.4% Growth w/o one-time effe
Slide 10: Swiss pharmaceutical market by channel 2020
Swiss pharmaceutical market by channel 2020 Value (ex-factory): CHF 6,331.7 million Volume (packs): 183.0 million CHF +176.9 million / +2.9% -3.3 million / -1.8% Hospitals Hospitals 9.1% 1’633.9 million 16.6 million 3.6% +3.1% -3.2% 25.8% Drugstores 43.3% Drugstores 67.5 million 6.6 million 22.5% +1
Slide 11: EBITDA and EBIT adjustments
Galenica Group EBITDA and EBIT adjustments1) EBITDA (in million CHF) EBIT (in million CHF) 2019 2020 in % 2019 2020 in % EBITDA adjusted 210.4 213.6 +1.5% EBIT adjusted 166.9 168.6 +1.0% Adjustment IAS 19 -0.1 43.0 Adjustment IAS 19 -0.1 43.0 Adjustment IFRS 16 50.0 52.9 Adjustment IFRS 16 2.7 1.8 E
Slide 12: Financial result and taxes
Galenica Group Financial result and taxes Financial result (in million CHF) Taxes (in million CHF) Tax rate excluding -2.4 one-time effects2) 18.2% 17.2% -3.2 -2.4 -2.9 -4.7 -29.7 -35.9 -6.1 2019 2020 -8.4 -38.1 -35.9 2019 2020 Financial result adjusted1) Taxes excluding one-time effects Effects of
Slide 13: Pleasing net profit growth
Galenica Group Pleasing net profit growth (in million CHF) 172.7 +37.8% One-time effects of deferred taxes1) 125.3 34.8 Net profit comparable, adjusted2) and excluding 134.2 138.0 +2.8% one-time effects of deferred taxes1) Effects of IAS19 and IFRS162) -8.4 -0.5 2019 2020 1) Details of one-time effe
Slide 14: Investments
Galenica Group Investments (in million CHF) 1.6% 1.6% % of net sales 57.0 53.0 20.5 Investments 18.9 in intangible assets 34.2 36.5 Investments in tangible assets 2019 2020 Ongoing investments in strategic efficiency projects : − Replacement of the ERP system in Wholesale and pre-wholesale as well a
Slide 15: Condensed Cash Flow Statement
Galenica Group Condensed Cash Flow Statement in million CHF 2019 2020 Cash flow from operating activities before working capital changes 237.4 238.8 Payment of lease liabilities -47.6 -49.1 Cash flow from operating activities before working capital changes adjusted 189.8 189.7 Working capital change
Slide 16: Solid balance sheet
Galenica Group Solid balance sheet (in million CHF) Debt coverage1) 2.1x 1.8x Debt coverage adjusted2) 1.5x 1.7x 1’000 1’053 Equity adjusted3) Effect of IFRS163) 557 572 1’110 Net debt adjusted3) 1’053 231 218 IAS19 and IFRS16 326 354 effects on equity3) -53 -57 2019 2020 1) Net debt / EBITDA, Annua
Slide 17: Dividend 2020
Dividend 2020 Proposal to the Annual General Meeting (in CHF) 2019 2020 Gross dividend per share 1.80 1.80 of which paid out from retained earnings 0.90 0.90 of which paid out from capital contribution reserves 0.90 0.90 09.03.2021 © Galenica Group 17
Slide 18: Outlook regulation: Reduction in drug prices
Outlook regulation Reduction in drug 2018 2019 2020 2021 2022 ..… prices Generics prices „Reference price Political discussion ongoing system“ Distribution margin SBR IV extended until the end of 2021, SBR IV SBR V new proposal under discussion OTC products1): Political discussion about ca
Slide 19: New Segment structure as of 1st January 2021
New Segment structure as of 1st January 2021 − No major changes within the segments − As in the past, additional details on net sales within the segments will be provided 09.03.2021 © Galenica Group 19
Slide 20: Guidance 2021
Guidance 2021 Assumptions: − Persistent negative impact of COVID-19 in the first months of 2021. − Lack of colds, absence of a seasonal flu epidemic and continued low mobility will continue to have a particularly strong impact on pharmacy sales in high- frequency locations and at Verfora. − Signific
Slide 21: Mid-term Guidance
Mid-term Guidance − Expected market growth in the next few years: +1% to +2% − Galenica plans to grow faster than the market thanks to − consistent implementation of the strategic programs, − further expansion and optimisation of the pharmacy network and the Verfora product portfolio. − Galenica exp
Slide 22: Step by step upwards
Step by step upwards Determined despite persistent COVID-19 headwinds 09.03.2021 © Galenica Group 22
Slide 23: Disclaimer
Disclaimer Disclaimer Galenica Certain statements, beliefs and opinions in this presentation are forward-looking, which reflect the Company’s or, as appropriate, the Company’s directors’ current expectations and projections about future events. By their nature, forward-looking statements involve a n