Aap Implantate Ag · XETR:AAQ1
Aap Implantate — Non-Deal Roadshow (August 2014)
24 slides from Aap Implantate's roadshow presentation, Aug 21, 2014
Slide 1: Roadshow London 2014
Roadshow London 2014 London, August 21 aap Implantate AG Bruke Seyoum Alemu, CEO Marek Hahn, CFO
Slide 2: Safe Harbor Statement
Safe Harbor Statement Our publication may include predictions, estimates or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual
Slide 3: aap Overview
aap Overview • German based international MedTech Sales 2013: €40 million (+10%) company • Focus on Trauma and PMMA cement business • LOQTEQ®: Sales of €5 million (+150%) in 2013 • Strategy: Profitable growth with IP-protected products under own label • Sales: Focus on markets in Europe, U.S., BRICS
Slide 4: aap's Centers of Excellence
aap‘s Centers of Excellence Innovations in Trauma and Biomaterials Center of Excellence in Trauma, Berlin Center of Excellence in Biomaterials, Dieburg • Products and Services • Products and Services: – Locking-compression system LOQTEQ®, Standard – Comprehensive Portfolio of bone cements and Trauma
Slide 5: Highlights H1/2014 – Sales performance
Highlights H1/2014 – Sales performance Sales in € million Q2/2014 Q2/2013 Change Trauma 3.0 2.8 7% - thereof LOQTEQ® 1.9 1.6 19% Biomaterials 4.9 3.2 50% Projects 0.1 0.1 0% Other 0.1 0.5 n.A. Sales from continued operations 8.1 6.6 23% Sales in € million H1/2014 H1/2013 Change Trauma 5.2 4.2 21% -
Slide 6: Highlights H1/2014 – Further achievements
Highlights H1/2014 – Further achievements • Appointment of new CEO – Bruke Seyoum Alemu; Biense Visser new Chairman of Supervisory Board • Financial Performance – Financial targets achieved: Second quarter 2014 sales at €8.1 million and second quarter 2014 EBITDA at €1.5 million both at the upper en
Slide 7: 2013 – Continued profitable growth
2013 – Continued profitable growth Sales CAGR 2010 – 2013: 12% EBITDA CAGR 2010 – 2013: 29% • Full year projection more reliable • Quarter sales volatile due to: – Short life cycle of LOQTEQ® and the ordering behavior of customers and distributors – Less predictability of revenues from projects 7
Slide 8: 2013 Sales Distribution
2013 Sales Distribution • Sales driver LOQTEQ®; Growth in emerging markets • Sales growth Europe through increased business with existing customers • Project business impact on North America, Europe and Asia 8
Slide 9: 2013 Development of Financial Figures
2013 Development of Financial Figures Profit & Loss in € million 2010 2011 2012 2013 H1/2014 Sales 28.4 29.2 36.4 40.0 15.2 EBITDA1 (normalized) 3.4 4.1 6.1 7.0 0.8 Cash-EBT2 (normalized) -2.1 -1.2 2.1 3.5 0.3 R&D costs ratio 14% 12% 8% 8% 8% Freshness-Index* 13% 13% 15% 22% >20% • 1 EBITDA: EBITDA
Slide 10: Strategic Progress and Value Creation
Strategic Progress and Value Creation Shareholder point of view* 2013 2012 Change 20/8/2014 Change Share price (closing) (€) 2.15 1.34 60% 2.8 30% Total amount of shares in millions 30.7 30.7 0% 30.7 0% Market Capitalization (€ million) 65.9 41.1 60% 86 30% Share price (average) (€) 1.45 1.02 43% 2.
Slide 11: Global Trauma Market
Global Trauma Market Key dynamics, trends and valuation • Development Global Market EV/ Date Buyer Target firm Transaction – Trauma is fastest growing segment in Sales Orthopedics 2014 Wright Medical OrthoPro 5.50 M&A – Orthopedics: total: $6 billion revenue, 3% growth 2014 Wright Medical Solana Sur
Slide 12: aap's Aspiration and Imperatives
aap’s Aspiration and Imperatives MISSION Making Trauma treatment better and cost-effective VISION Become a leading European Trauma company STRATEGIC IMPERATIVES Products Customers Distribution Services Accelerating value-based Enhancing market access innovation Getting focused on pure Trauma Geograp
Slide 13: Transformation to a pure Trauma company
Implementation of Strategic Imperatives Transformation to a pure Trauma company Focus on core business 2008 2009 2010 2011 2012 2013 2014 Dental + Analytics + Medical Aesthetics + Recon + + + + + Contract Manufacturing + + + + + + Biomaterials + + + + + + (+) Trauma + + + + + + + • Spun off Recon ac
Slide 14: Accelerating value-based innovation – LOQTEQ
Implementation of Strategic Imperatives Accelerating value-based innovation – LOQTEQ® The Concept The Applications The Value • New locking compression technology Products Customers • Patents issued and pending Distribution Accelerating Services Enhancing market value-based • Genuine alternative to t
Slide 15: Accelerating value-based innovation – Portfolio extension
Implementation of Strategic Imperatives Accelerating value-based innovation – Portfolio extension Phase Value added 2012 2013 2014 2015 2016 Proximal Humerus Distal Femur One Step, One Hole, One Screw I Proximal Tibia Flexible compression ✓ Distal Tibia Clavicle Osteotomy One Step, One Hole, One Scr
Slide 16: Enhancing market access
Implementation of Strategic Imperatives Enhancing market access • Achievements • Continued strong commercial growth of LOQTEQ® in core markets in 2014 • Substantial extension of Key Opinion Leaders (KOL) and Key Users • Successful international distributors meetings, training and education • Continu
Slide 17: Optimizing operational efficiency
Implementation of Strategic Imperatives Optimizing operational efficiency • Supply chain improvement initiative with external professional support – Faster product delivery and better inventory management • Product development and regulatory path improvement initiatives – Shorter time-to-market and
Slide 18: Supplementing organic growth with acquisition
Implementation of Strategic Imperatives Supplementing organic growth with acquisition • Core acquisition rationales – Extension of distribution channels and geographical coverage – Operational synergies – Portfolio extension • Preferred targets – Small companies with lower multiples – Proven busines
Slide 19: The LOQTEQ Value Capture Concept
Implementation of Strategic Imperatives The LOQTEQ® Value Capture Concept Different than others Better than others Positioning Innovation & Customer Value The masstige concept: Premium Complete as well as indication- trauma products for mass market based solution portfolio Pursuit of different
Slide 20: Management Agenda 2014
Management Agenda 2014 Customers Innovation • Growing Trauma sales to €>15 million • Sustain Freshness index of at >20% (>50%); driven by LOQTEQ® • Accelerate development of silver-coated • Expanding LOQTEQ® portfolio; striving for Trauma products; market introduction in >90% indication coverage 201
Slide 21: Financial Outlook 2014
Financial Outlook 2014 • Outlook Q3/2014: • Sales of €7.0 million to €8.0 million (Q3/2013 continued operations: €6.3 million) • EBITDA between €0 million to €0.4 million • FY 2014: Management Board reconfirms communicated guideline • Strong sales growth with focus on Trauma business • Sales revenue
Slide 22: Outlook 2014 and beyond
Outlook 2014 and beyond • Expected growth in 2015 and beyond: 20% 22
Slide 23: Stockholder Structure
Stockholder Structure • Growing interest in aap´s value driving strategy is also reflected in new shareholders: – December 2013: Taaleritehdas ArvoRein Equity Fund, Finland – March 2014: Ennismore Fund Management Limited, UK – April 2014: Fidelty Funds SICAV, Luxembourg • Market Cap increased to alm
Slide 24: Contact
Contact aap Implantate AG Lorenzweg 5 12099 Berlin Marc Heydrich Investor Relations Tel.: +49 30 750 19 – 134 Fax: +49 30 750 19 – 290 E-Mail: ir@aap.de Website: www.aap.de IR-app: 24