Coloplast A/s Class B · OMXCOP:COLO_B
Coloplast A/s Class B — H1 2008/09 Earnings Presentation
15 slides from Coloplast A/s Class B's earnings presentation, May 5, 2009
Slide 1: Leading Intimate Healthcare – Conference call presentation 1H 2008/09
1 Leading Intimate Healthcare Conference call presentation 1H 2008/09
Slide 2: Forward looking statements
2 Forward-looking Forward looking statements The forward-looking g statements contained in this p presentation,, including g forecasts of sales and earnings performance, are not guarantees of future results and are subject to risks, uncertainties and assumptions that are difficult to predict. The fo
Slide 3: Key messages
3 Key messages • Profitability improving towards target of 20+% with Sales underlying y g EBIT marging at 17% +4% 4,153 4,315 • 6% organic sales growth in line with market growth • Against expectations Germany continues to challenge 2007/08 2008/09 2008/09 growth Operating profit • Revised full year
Slide 4: Sales in line with market growth
4 Sales in line with market growth Sales by business area DKKm (organic growth) • In DKK, revenues were up by 4% to DKK 4.3bn 749 (7%) and the organic g g growth was 6% in line with the current market growth. Excluding Germany 1.771 organic growth was well above market at 9% (3%) • Ostomy Care growt
Slide 5: Profitability and cash generation continue to improve
5 Profitability and cash generation continue to improve • Gross margin of 58% down 1% due to 1H 07/08 1H 08/09 weaker currencies. Improvements in Gross profit 2.453 2.523 production costs offset by price and product mix changes Gross margin 59% 58% • Significant decrease of SGA to sales ratio SGA-to
Slide 6: Guidance for 2008/09 adjusted to reflect higher profitability and continued uncertainty in Germany
6 Guidance for 2008/09 adjusted to reflect higher profitability and continued uncertainty in Germany Guidance Guidance Long-term 08/09 08/09 (DKK) guidance Sales growth ~6% (organic) ~6% Market + EBIT margin ~16% (Fixed) ~15% >20% CAPEX (DKKm) ~700 6-7% 6 7% of sales Tax rate ~28% DKK GBP USD HUF EU
Slide 7: Appendices
Appendices Ostomy Care Urology & Continence Care Wound & Skin Care wp Coloplast
Slide 8: Germany impacts on Ostomy Care growth
8 Germany impacts on Ostomy Care growth % DKKm 16 3,569 • Organic sales growth of 3% impacted by 14 3,,474 lower than expected sales primarily in 12 German SIEWA. Excluding the German 3,165 10 market organic growth was 8%. Reported 2,957 8 growth was flat 6 31 • Biggest growth driver continues to be
Slide 9: Satisfactory Urology and Continence Care growth
9 Satisfactory Urology and Continence Care growth DKKm % • Organic sales growth of 8% and reported 50 growth of 7% 3.310 0 40 • High growth in sale of intermittent catheters 30 3.444 especially SpeediCath and SelfCath 2.337 20 • Satisfactory sales in our US and European 1.326 6 2 10 1.701 1.467 urol
Slide 10: Action taken within Wound and Skin Care
10 Action taken within Wound and Skin Care % 16 DKKm • Organic sales growth of 7% and reported 14 1.450 growth of 7%. 1 12 • Strong growth in consumer products 10 1.258 1.207 8 • Continued price pressure in the main European 1.124 6 markets 1 4 1.054 4 975 • Growth is driven by Biatain foam bandages
Slide 11: Currencies reduced gross profit margin
11 Currencies reduced g gross p profit margin g • Gross profit increased by 3% to DKK 2,523m. Adjusted for currencies the growth was 4% • Production costs increased by 5% mainly due to lower production volumes than last year • Gross margin of 58% down 1% due to weaker currencies. Improvements in pro
Slide 12: Underlying EBIT margin increasing
12 Underlying EBIT margin increasing (%) Cost to sales ratios R&D Dist. Adm. • EBIT before special items was DKK 702m up 27% 40 33.7 31.6 31.2 31.9 30.3 30.6 30.5 30.2 30.5 p • Distribution and R&D costs increased as expected from 30 28.8 higher activity, whereas admin costs decreased from continued
Slide 13: Balance sheet remains strong
13 Balance sheet remains strong g • The equity amounted to DKK 2,519m, corresponding to an equity ratio of 31%. Return on equity was 32% • Net interest bearing debt was as DKK 3,405m, 3 405m down do n by b 2% compared with ith last year ear impacted by b purchase of own shares, dividend payment and
Slide 14: Strong cash flow performance
14 Strong cash flow performance • Cash flow from operations amounted to DKK 499m, impacted by positive contribution from operations partly offset by on account payment of taxes of DKK 165m • CAPEX was DKK 289m ,corresponding to a capex to sales ratio of 8% related to investments in production equipm
Slide 15: Coloplast
= Coloplast