Slide 1: PolyPeptide Group AG Half-year 2023 results & business update
PolyPeptide Group AG (SIX: PPGN) Half-year 2023 results & business update 15 August 2023 Baar, Switzerland GLOBAL SUPPORT FOR A QUALITY SOLUTION
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by PolyPeptide Group AG (“PolyPeptide" and together with its subsidiaries, "we", "us" or the "Group"). The information contained in the Presentation does not purport to be comprehensive. Please refer to the financial reports availab
Slide 3: Representatives
Representatives Peter Wilden Juan-José Gonzalez Lalit Ahluwalia Michael Stäheli Executive Chairman Chief Executive Officer Chief Financial Officer (Moderator) ad interim Head Investor Relations & Corporate Communications GLOBAL SUPPORT FOR A QUALITY SOLUTION 3
Slide 4: Agenda
Agenda 1 Introductory remarks 2 Performance highlights 3 Financial results 4 Conclusions & guidance GLOBAL SUPPORT FOR A QUALITY SOLUTION 4
Slide 5: Results in line with market update provided on 13 July
Results in line with market update provided on 13 July Phase out of covid offset by peptide-driven revenue growth of 29.3%1 Rapid expansion Significant capacity expansion with operational challenges with profitability decline Negative change in cost absorption and one-off inventory write-down 1 Excl
Slide 6: Peptide market to accelerate with sustained R&D efforts and expected GLP-1 launches
Peptide market to accelerate with sustained R&D efforts and expected GLP-1 launches Peptides approved as therapeutic agents1 36 22 16 14 11 6 4 1 Strong clinical results for GLP-1 based therapies Until 1950 1950-1960 1961-1970 1971-1980 1981-1990 1991-2000 2001-2010 2011-2023 in H1 2023, some of whi
Slide 7: PolyPeptide well positioned to grow with market
PolyPeptide well positioned to grow with market Active custom projects pipeline 226 181 30 31 Phase III H1 2021 H1 2023 Around half of projects in metabolic and oncology GLOBAL SUPPORT FOR A QUALITY SOLUTION 7
Slide 8: Double-digit growth in all business areas
Double-digit growth1 in all business areas Custom Projects € m Contract Manufacturing € m Generics & Cosmetics € m 100 +23.9% +37.1% 25.8 7.0 1.5 50 56.7 58.0 41.3 46.8 +23.4% 12.6 15.6 0 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 Associated with coronavirus pandemic. 1 Excluding revenue associ
Slide 9: Revenue mix shows transformational progress
Revenue mix shows transformational progress Mix by therapeutic area1 1% 25% 28% 42% 43% Metabolic Oncologic H1 2022 H1 2023 Other Covid-related 13% 34% 14% Mix by customer type1 11% 9% 41% 65% 26% Large pharma Biotech H1 2022 H1 2023 Other pharma & academia 48% 1 Approximate revenue mix as at 30 Jun
Slide 10: Upgrading our infrastructure and capabilities
Upgrading our infrastructure and capabilities CFO appointment • Capacity expansion since • Background in 2021 with EUR 179 high-growth CDMO million of Capex environment (Lonza Biologics) • Focus on operational and profitability • Deep finance and improvement initiatives operational experience • Inno
Slide 11: EBITDA impacted by several factors
EBITDA impacted by several factors €m • Change in cost absorption and one-off inventory write-down account for >50% of EBITDA decline • Higher operational & maintenance costs driven by lower manufacturing yields and higher costs ahead of growth planned for H2 2023 • Change in product mix mostly rela
Slide 12: Accelerated Capex expected in H2 2023
Accelerated Capex1 expected in H2 2023 150 €m 11.7% 13.0% 21.6% 27.2% 29.5% 100 0 0 0 • H1 2023 with capacity enhancements and 50 ongoing innovation efforts 76.7 83.0 0 • H2 2023 with accelerated Capex deployment 0 48.2 • FY 2023 Capex now expected between 21.0 26.4 19.3 EUR 55 to EUR 65 million, su
Slide 13: Continued investments to meet customer demand
Continued investments to meet customer demand €m Free cash flow • Change in net working capital driven by >50% of revenue recognized toward the end of the reporting period • In July 2023, secured EUR 40 million short-term credit-facility from main shareholder • Negotiations well underway to implemen
Slide 14: Priorities for H2 2023 and updated guidance
Priorities for H2 2023 and updated guidance Updated guidance for 2023 Clear focus for H2 2023 • Mid to high single-digit percentage revenue growth • Meet customer demand and deliver vs 2022 on planned growth in H2 2023 • At the lower end of that range, EBITDA around • Continue implementation of brea
Slide 15: Q&A
Q&A The presentation will be followed by a Q&A session. Anyone who wishes to ask a question, or make a comment can do it in the following ways: • Through the telephone by pressing * and 1 (please register on the website to receive the personal dial-in details) In case of assistance please press * an
Slide 16: Appendix
Appendix
Slide 17: Result for the period
Result for the period Summary P&L € m H1 2022 H2 2022 H1 2023 Revenue 133.7 147.3 131.8 EBITDA 26.7 12.0 -19.4 margin % 20.0% 8.1% -14.7% Depreciation, amortization & -11.2 -14.9 -15.1 impairment (if any) Operating result (EBIT) 15.5 -2.9 -34.5 margin % 11.6% -2.0% -26.1% Total financial result -2.6
Slide 18: Key figures
Key figures 1 This table and presentation include references to operational indicators and alternative financial performance measures (APM) that are not defined or specified by IFRS. These APM should be regarded as complementary information to and not as substitutes of the Group’s consolidated finan
Slide 19: HY time series
HY time series Summary P&L € m H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 Revenue 90.7 111.9 87.8 135.2 135.1 147.0 133.7 147.3 131.8 EBITDA 22.7 26.7 18.5 43.4 39.9 45.0 26.7 12.0 -19.4 margin % 25.0% 23.8% 21.1% 32.1% 29.5% 30.6% 20.0% 8.1% -14.7% Depreciation, amortiz
Slide 20: Consolidated income statement
Consolidated income statement GLOBAL SUPPORT FOR A QUALITY SOLUTION 20
Slide 21: Consolidated statement of financial position
Consolidated statement of financial position GLOBAL SUPPORT FOR A QUALITY SOLUTION 21
Slide 22: Consolidated statement cash flow
Consolidated statement cash flow GLOBAL SUPPORT FOR A QUALITY SOLUTION 22
Slide 23: Contact and IR calendar
Contact and IR calendar Contact Financial calendar 2023 Michael Stäheli 16 August 2023 | Roadshow with Baader Helvea, Zurich Head of Investor Relations & Corporate Communications 12 September 2023 | Roadshow with Berenberg, London T: +41 43 502 0580 michael.staeheli@polypeptide.com 13 September 2023
Slide 24: Thank you
Thank you