Ypsomed Holding Ag · SIX:YPSN
Ypsomed — FY2006/07 Earnings Presentation
44 slides from Ypsomed's earnings presentation, May 29, 2007
Slide 1: Presentation of 2006/07 Annual Results
Presentation of 2006/07 Annual Results Burgdorf, 29th May 2007
Slide 2: Important Notice
Important Notice The information contained in this document has not been independently verified and no representation or warranty, express or implied, is made to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein.
Slide 3: Agenda
Agenda Presentation of Annual Results 2006/07 Summary 2006/07 Financials 2006/07 Operations Strategy and Outlook Questions and Answers 3
Slide 4: Ypsomed Summary 2006/07
Ypsomed Summary 2006/07 Ypsomed achieved sales of CHF 277.5 million (-10.7% to prior year). Sales in second half year reached CHF 148.4 million, +15% over first half year. Operating profit was affected by additional costs and lead to a consolidated net income of CHF 2.3 million, as guided in N
Slide 5: Key Financials 2006/07
Key Financials 2006/07 CHF million H1 2006/07 H2 2006/07 Δ in % GJ 2006/07 GJ 2005/06 Δ in % Sales of goods and services 129.0 148.4 15.0% 277.5 310.6 -10.7% Gross profit 26.0 38.3 47.4% 64.2 119.2 -46.1% Gross profit in % 20.1 25.8 23.2 38.4 Operating profit (EBIT) -5.3 7.7 2.3 62.3 -96.2% Operatin
Slide 6: Net sales development
Net sales development CHF million 2006/07 2005/06 Δ in % Sales of goods and services 277.5 310.6 -10.7% Own finished products 234.6 269.6 -13.0% Direct trade business and other products 42.8 41.0 4.6% Production stop and reduced order volumes for OptiClik® reusable module, with lower volumes for O
Slide 7: Platform Technologies Overview
Platform Technologies Overview Customer-specific developments 7
Slide 8: Trio-Pen – world's first pen-system with only 3 components
Trio-Pen – world’s first pen-system with only 3 components Intended product use Delivery of single fixed dose from dual-chamber cartridge Function Single dose Intuitive handling for reconstitution and priming by twisting Injection button locked and hidden until primed Simple push injec
Slide 9: Continuous Injection Device for human insulin
Continuous Injection Device for human insulin 9
Slide 10: Additional jobs created in 2006/07
Additional jobs created in 2006/07 CH Europe 1211 1139 105 933 97 797 116 141 560 118 1042 1106 817 + 237 656 + 136 + 206 + 72 442 31.03.2003 31.03.2004 31.03.2005 31.03.2006 31.03.2007 10
Slide 11: Agenda
Agenda Presentation of Annual Results 2006/07 Summary 2006/07 Financials 2006/07 Operations Strategy and Outlook Questions and Answers 11
Slide 12: Additional costs impact profitability
Additional costs impact profitability CHF million 2006/07 in % 2005/06 in % Δ in % Sales of goods and services 277.5 100.0% 310.6 100.0% -10.7% Cost of goods and services sold -213.2 -76.8% -191.4 -61.6% 11.4% Gross profit 64.2 23.2% 119.2 38.4% -46.1% Research and development reimbursed 3.5 1.3% 5.
Slide 13: Comments on increased costs in 2006/07
Comments on increased costs in 2006/07 In the first half of the year, additional costs of CHF 14.2 million resulted from the halt in the OptiClik® production because of accelerated depreciation of defective goods and manual testing and reworking operations, as well as higher scrap rates when produ
Slide 14: Earnings per share of CHF 0.24
Earnings per share of CHF 0.24 CHF million 2006/07 in % 2005/06 in % Δ in % Operating profit 2.3 0.8% 62.3 20.1% -96.2% Financial income 2.7 1.0% 4.3 1.4% -36.9% Financial expense -2.0 -0.7% -2.1 -0.7% -6.1% Other non-operating income / (expense) 0.1 0.1% -0.1 0.0% Profit before income taxes 3.2 1.1
Slide 15: EBITDA margin of 9.9%
EBITDA margin of 9.9% CHF million 2006/07 in % 2005/06 in % Operating profit 2.3 0.8% 62.3 20.1% Depreciation of fixed assets 23.8 8.6% 25.7 8.3% Amortization of intangible assets 1.2 0.4% 1.0 0.3% EBITDA 27.4 9.9% 89.0 28.7% 15
Slide 16: Balance Sheet
Balance Sheet CHF million 31.03.2007 in % 31.03.2006 in % Assets Cash and cash equivalents 40.7 6.5% 65.7 9.9% Marketable securities 25.5 4.1% 41.2 6.2% Trade receivables 33.8 5.4% 45.4 6.8% Other current assets 9.2 1.5% 10.9 1.6% Current income tax assets 1.3 0.2% 0.0 0.0% Inventories 37.5 6.0% 44.
Slide 17: Equity ratio of 62.6% - Solid Financing
Equity ratio of 62.6% - Solid Financing CHF million 31.03.2007 in % 31.03.2006 in % Liabilities and equity Trade payables 11.4 1.8% 13.5 2.0% Prepayments from customers 9.5 1.5% 10.3 1.5% Current income taxes payable 2.0 0.3% 5.7 0.9% Other payables and accrued expenses 16.1 2.6% 18.4 2.8% Provision
Slide 18: Cash Flow impacted by Operations
Cash Flow impacted by Operations CHF million 2006/07 2005/06 Cash flow from operating activities before changes in net working capital 26.9 84.9 Changes in net working capital 5.3 -37.5 Cash flow from operating activities 32.2 47.4 Purchases of fixed assets -36.8 -30.8 Trade in marketable securities
Slide 19: Explanation on Restatement
Explanation on Restatement Upon request by the SWX listing authority Ypsomed has reclassified certain positions in the balance sheet and cash flow statements 2005/06 and enhanced the presentation. The restatement has no impact on the consolidated income statement and the consolidated equity 2005
Slide 20: Agenda
Agenda Presentation of Annual Results 2006/07 Summary 2006/07 Financials 2006/07 Operations Strategy and Outlook Questions and Answer 20
Slide 21: Partnership with Sanofi-Aventis
Partnership with Sanofi-Aventis Production of all pen-systems for Sanofi-Aventis are on track, including the transition of OptiSet® to new product generation. Sanofi-Aventis confirmed that Ypsomed will remain an important supplier of their insulin pen-systems. Nevertheless, Sanofi-Aventis has
Slide 22: Sanofi-Aventis Advertising in the US Market
Sanofi-Aventis Advertising in the US Market 22
Slide 23: New Generation HumatroPen3
New Generation HumatroPen3 Ypsomed introduced the new Humatro Pen3, the new generation of Humatro Pen MG for administration of human growth hormone of Eli Lilly. HumatroPen MG Cartridges with different concentrations of the drug can be administered in the same pen. Enhanced electronic module t
Slide 24: Pen Needle Business
Pen Needle Business Sales growth of Ypsomed pen needles was 22.6% and thus exceeded the overall market growth rate. Positive results in the United States, France, the Netherlands and Germany, as well as in Ypsomed’s home market, Switzerland. Ypsomed pushed marketing & sales activities in Europ
Slide 25: Pen Needle Remover launched in 2006
Pen Needle Remover launched in 2006 Development and launch of Penfine® Needle Remover. The remover is an optimal safety device used to unscrew pen needles. It reduces the risk of needle-stick injuries, providing increased safety for hospital and clinic staff due to its single-handed usability
Slide 26: Diabetes care business with solid growth
Diabetes care business with solid growth The DiaExpert – diabetes direct business was growing with 12.6%, faster than planned in business year 2006/07. Success factors of DiaExpert include the focus on insulin pump carriers and intensively treated patients, who value not only DiaExpert’s compreh
Slide 27: New Organisation Structure 2007
New Organisation Structure 2007 Ypsomed’s new organizational structure is designed to meet the following requirements in particular: Focus on Ypsomed’s strategy Improve customer orientation Establish clear competencies and responsibilities Facilitate rapid decision making Define local re
Slide 28: New Organisation Structure 2007
New Organisation Structure 2007 28
Slide 29: Management and Expert Layers
Management and Expert Layers Expert Layers Management CEO Layers Senior Vice President FS 1 Vice President FS 2 SPM, SE, ES 1 TPL u.w. Head of FS 3 SPM, SE, TPL ES 2 KAM, PM u.w. SPM, SE, TPL Teamleader FS 4 ES 3 KAM, PM u.w. (Manager) Specialist Shiftleader (Junior) Employee 29
Slide 30: Dr. rer. nat. Manfred Mäder
Dr. rer. nat. Manfred Mäder Senior Vice President Quality Management & Regulatory Affairs. At Ypsomed since January 2007. Previously quality assurance management at Sanofi-Aventis for Frankfurt Injectables (from 2005 until 2006). Before then, global responsibility in the quality and regulato
Slide 31: Agenda
Agenda Presentation of Annual Results 2006/07 Summary 2006/07 Financials 2006/07 Operations Strategy and Outlook Questions and Answers 31
Slide 32: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Drug & Device Distribution Diabetes Care Capabilities Pen Needles Innovation & Patents Technology Self-Injection Devices Competence 32
Slide 33: Strong Intellectual Property Portfolio
Strong Intellectual Property Portfolio Non-exclusive license agreement with large pharma company for auto-injector IP. Ongoing IP license negotiations with several large pharma companies. Ypsomed‘s strong IP position will create additional revenues, secure profitability and enable the extended
Slide 34: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Technology-Platforms: Drug & Device Diabetes Care Customer-specific developments Pen Needles Self-Injection Devices 34
Slide 35: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Project Pipeline: Customer-specific developments Phase 1: Customer Contact Phase 2: Customer Project 35
Slide 36: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Drug Pen Needles: & Device Patented click-on mechanism Diabetes Care Push sales & marketing activities Pen Needles Expansion of the pen needle production New clean room facility to be built in Solothurn, Self-Injection Devices with Capex of over CHF 20 mi
Slide 37: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Drug Diabetes Care: & Device Local access to customers and opinion leaders Diabetes Care in various countries Direct distribution to customers in Germany Pen Needles DiaExpert GmbH Self-Injection Devices Mail order and Online shop Progressing on potenti
Slide 38: Ypsomed's Extended Business Strategy
Ypsomed’s Extended Business Strategy Drug Drug & Device: & Device Combine Ypsomed’s technology competence Diabetes Care with distribution capabilities for insulin or other drugs (e.g. peptide hormones) to benefit from Pen Needles attractive margins within these growing market segments Self-Injecti
Slide 39: Continuous Injection Device
Continuous Injection Device Ypsomed’s continuous injection device combines the advantages of pen and pump therapies: it is cost-efficient and easy to use, and it provides people with diabetes with greater flexibility and better metabolic adjustment. 39
Slide 40: Continuous Injection Device
Continuous Injection Device Several new patents have been registered. Semi-disposable injection system for the intermittent administration of a specific amount of insulin over a longer period of time. The continuous injection device is designed as a semi-disposable device consisting of a reusa
Slide 41: Ypsomed's Extended Strategy
Ypsomed’s Extended Strategy Launching own products to grow and diversify future revenue streams and secure margins in the Drug & Device mid- to long-term Grow by acquisition and new partnerships Diabetes Care Expand own distribution and sales Invest in expansion of production Pen Needles D
Slide 42: Outlook: Guidance for 2007/08
Outlook: Guidance for 2007/08 Sales in 2007/08 will depend greatly on actual order volumes from Sanofi-Aventis, which are currently being negotiated. Pen needle and diabetes care business expected to grow organically. Potential sales upside via acquisitions in diabetes care business. Expecte
Slide 43: Important Dates
Important Dates Key reporting dates Annual Shareholder Meeting June 27, 2007 in Solothurn Half Year Report 2007/08 November 8, 2007 Presentation of Annual Results 2007/08 May 27, 2008 43
Slide 44: Agenda
Agenda Presentation of Annual Results 2006/07 Summary 2006/07 Financials 2006/07 Operations Strategy and Outlook Questions and Answers 44