Skan Group Ag · SIX:SKAN
Skan — FY2021 Earnings Presentation
28 slides from Skan's earnings presentation, Apr 5, 2022
Slide 1: SKAN Group AG Presentation of the 2021 Financial Results
SKAN Group AG Presentation of the 2021 Financial Results 5 April 2022
Slide 2: Disclaimer
Disclaimer SKAN 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
Agenda SKAN 1. Overview of Business Year Thomas Huber (CEO) 2. 3. 4. 5. 5 April 2022 SKAN Group AG Presentation of the 2021 Financial Results 3
Slide 4: Highlights of an outstanding and successful year
Highlights of an outstanding and successful year SKAN Order intake, net sales and EBITDA reach new record levels; EBITDA margin Order Intake Net Sales in CHF million in CHF million meets target range. 280.3 234.3 Continued high investments in strategy implementation and expansion of production capac
Slide 5: Both business segments performed well
Both business segments performed well SKAN in CHF m 2021 2020 ∆ in % Equipment & Solutions Equipment & Solutions Business driven by strong demand from customers for aseptic production capacities. Order intake 212.3 159.5 33% Net sales 172.0 144.4 19% COVID crisis further increased order intake for h
Slide 6: Good operational progress
Good operational progress SKAN Organization was able to manage a double-digit organic growth. Delays in supply chain solved by changes in the manufacturing process. Critical components were ordered earlier to secure their availability. Product milestones in 2021: Launch of innovative Cellana isolato
Slide 7: Strong and growing global footprint
Strong and growing global footprint SKAN Allschwil CH Gembloux BE Headquarters / production sites Production site / AT • Engineering, sales, • Aseptic Filling service, assembly, equipment (Closed R&D, laboratories Vial® Technology) • Approx. 26,682 m2 • Approx. 3,590 m2 • 575 employees • 35 employee
Slide 8: Agenda
Agenda SKAN 1. 2. Aseptic Technologies Thomas Huber (CEO) 3. 4. 5. 5 April 2022 SKAN Group AG Presentation of the 2021 Financial Results 8
Slide 9: Aseptic Technologies of strategic importance for SKAN
Aseptic Technologies of strategic importance for SKAN SKAN Aseptic Technologies (AT) is a subsidiary of SKAN located in Gembloux, Belgium. AT provides automated, robot-assisted process solutions for closed vials (Crystal Closed Vial Technology) for applications in cell and gene therapy. AT made good
Slide 10: SKAN increases stake in Aseptic Technologies to 90%
SKAN increases stake in Aseptic Technologies to 90% SKAN On April 4th, 2022, SKAN signed a share purchase agreement with S.R.I.W. Société Régionale d'Investissement de Wallonie to acquire SRIW another 30% of the shares to finally own 90% of AT shares. 10% 2024 90% The deal is split in 3 tranches (20
Slide 11: Agenda
Agenda SKAN 1. 2. 3. Financial Results 2021 Burim Maraj (CFO) 4. 5. 5 April 2022 SKAN Group AG Presentation of the 2021 Financial Results 11
Slide 12: Sustained order intake momentum
Sustained order intake momentum SKAN Order intake Order intake by regions Comments (CHFm) (CHFm) Order intake grew by +39.4% y-o-y 1.2x 1.0x 1.2x Sustained order intake momentum with solid book-to-bill ratio, reflecting strong Y-o-Y +39.4% market momentum On top of the generally strong demand for st
Slide 13: Above market growth and high top-line visibility
Above market growth and high top-line visibility SKAN Net sales Order backlog Comments (CHFm) (CHFm) Y-o-Y Net sales grew by +22.2% y-o-y adj. +13.5% Net sales 2021 include the extraordinary Y-o-Y penalty payment of CHF 1.1m with +22.2% regards to the sale of Pharma Integration (2) All business unit
Slide 14: Cost management and margin development
Cost management and margin development SKAN Expenses EBITDA Comments (CHFm) (CHFm and margin in %) +129 +132 EBITDA margin reported with 13.1% and adjusted 13.5%, both within the Y-o-Y guidance (1) (2) 207.3 235.3 adj. Y-o-Y Ramp-up of personnel impacted +86.1% -5.1% profitability in 2021 to support
Slide 15: Segment Equipment & Solutions (E&S)
Segment Equipment & Solutions (E&S) SKAN Order intake Net sales EBITDA Comments (2)(3) (2)(3) (CHFm) (CHFm and as of % of total net sales) (CHFm and margin in %) Order intake growth in E&S 170.8 165.0 204.5 9.4% primarily driven by customized 75.3% 73.4% 4.5% projects (+57.3% y-o-y) Strong growth al
Slide 16: Segment Services & Consumables (S&C)
Segment Services & Consumables (S&C) SKAN Order intake Net sales EBITDA Comments (CHFm) (CHFm and as of % of total net sales) (CHFm and margin in %) Increased installed base 11.5 11.7 23.5% triggered (re-)qualification 21.6 24.7% 24.8% 23.2% services and parts business Major “Retrofit” orders Y-o-Y
Slide 17: Strong ROCE despite significant growth capex
Strong ROCE despite significant growth capex SKAN Cash flow and conversion rate (1) Return on capital employed (2) Comments (CHFm and cash conversion in %) (CHFm and in %) Operating cash flow impacted by reversal of provisions/inventory etc. of c. CHF 15m for projects in relation to the discontinued
Slide 18: Strong balance sheet & finance structure
Strong balance sheet & finance structure SKAN Balance sheet as of 31 Dec 2021 Comments (CHFm) High liquidity and only limited financial 331.9 331.9 debt lead to a net cash position of CHF 116.2m as of 31. Dec 2021 Primary proceed from IPO of c. CHF 90m Other current assets(1) Non-current financial d
Slide 19: Dividend proposal
Dividend proposal SKAN Calculation of the basis for dividend proposal Comments (CHFm) Profit calculated as if the former SKAN Holding AG shareholders have been shareholders of SKAN Group AG since the beginning of 2021 Deduction of minorities in Aseptic Technologies and SKAN JP of total CHF -3.1m Pro
Slide 20: 2021 — At a glance
2021 — At a glance SKAN +39.4% >3.5x 1 Consistent above-market growth SKAN order intake (1) higher than the global isolator market Growth (y-o-y) (based on y-o-y order intake growth) Top-line visibility supported by record order intake and order 1.2x CHF 226.1m 2 backlog book-to-bill ratio order bac
Slide 21: Agenda
Agenda SKAN 1. 2. 3. 4. Outlook 2022 Thomas Huber (CEO) 5. 5 April 2022 SKAN Group AG Presentation of the 2021 Financial Results 21
Slide 22: Market and business outlook
Market and business outlook SKAN General development of market trends: Market growth expected to remain high in the coming years. Development of the (bio)pharmaceutical industry and shift towards the superior isolator technology as main drivers. SKAN continues to increase market share versus competi
Slide 23: SKAN resilient to current crisis
SKAN resilient to current crisis SKAN No major impact by current “international crisis” on SKAN: Ukraine SKAN has no direct material exposure to Ukraine, Russia or Belarus, and is not impacted by sanctions or potential loss of markets. Although the global impact on energy cost will impact the price
Slide 24: SKAN Group's growth strategy
SKAN Group’s growth strategy SKAN Objectives: Continue growth track-record Increase recurring revenue base Expand profitability 1 2 Expand addressable market 3 Increase exposure to after- 4 Accelerate digital Fortify market leadership towards integrated process market services & transformation syste
Slide 25: Priorities in 2022
Priorities in 2022 SKAN Objectives: Continue growth track-record Increase recurring revenue base Expand profitability 1 2 Expand addressable market 3 Increase exposure to after- 4 Accelerate digital Fortify market leadership towards integrated process market services & transformation systems consuma
Slide 26: Guidance
Guidance SKAN Metric 2022 Targets (1) Mid-Term Outlook Group net revenue growth Mid- to upper teens Mid- to upper teens Segment net revenue growth(2) 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 beyond mi
Slide 27: Agenda
Agenda SKAN 1. 2. 3. 4. 5. Questions and discussions 5 April 2022 SKAN Group AG Presentation of the 2021 Financial Results 27
Slide 28: Together always one step ahead!
Together always SKAN one step ahead! 28