Ypsomed Holding AG · SIX:YPSN
Ypsomed — FY2011/12 Earnings Presentation
63 slides from Ypsomed's earnings presentation, May 24, 2012
Slide 1: Presentation of the annual results 2011/12
Ypsomed Presentation of the annual results 2011/12 Burgdorf, May 24, 2012
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 p herei
Slide 3: Agenda
Agenda 11. Introduction 2. Finances 3. Operating activities 4. Outlook 5. Questions and answers 6 Corporate 6. C t overview i 3 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 4: The 2011/12 business year – an overview
The 2011/12 business year – an overview Change of management in August 2011: Willy Michel took over as CEO.CEO The aim is to transfer the role of CEO to his son Simon Michel in the foreseeable future. Attention was focused on costs and expenditures. The strategy is correct and will be implemen
Slide 5: The annual results – an overview
The annual results – an overview Sales of goods and services have fallen by 5.1% compared with the previous year, from CHF 261.8 million to CHF 248.6 million The main reasons for this are the impact of the exchange rate and lower income from industrialization and R&D. The strong g Swiss franc an
Slide 6: Key figures 2011/12
Key figures 2011/12 IIn million illi CHF 2011/12 2010/11 Δ in i % Sales of goods and services 248.6 261.8 -5.1 % thereof Delivery Devices 153.4 173.9 -11.8 % th thereof f Di Diabetes b t Direct Di t Business B i 78 2 78.2 72 6 72.6 77% 7.7 thereof Others 17.0 15.3 11.0 % Gross profit 56.4 61.0 -7.6
Slide 7: Foreign exchange effects impacted negatively on sales and operating profit
Foreign exchange effects impacted negatively on sales of goods and services and operating profit Sales of delivered goods would have been 22.5% 5% up on the previous year year. Sales of goods and services were reduced by CHF 10.8 million in total: in the “delivery devices” business segment, the
Slide 8: Developments in the diabetes care business segment
Developments in the diabetes care business segment Acquisition of the infusion set business from ICU Medical including all production facilities, customer bases and patents. No obligations were acquired. Growth in the number of mylife™ OmniPod® customers exceeded expectations d it registration d
Slide 9: Developments in the diabetes care business segment
Developments in the diabetes care business segment Pleasing progress was made in the product development of the company’s company s own low-cost insulin pump. Entry to the market is planned for 2014. 9 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 10: Study of insulin pump therapy for type 2 diabetics shows great potential
Study of insulin pump therapy for type 2 diabetics shows great potential Ypsomed has carried out a representative survey on insulin pump therapy for type 2 diabetics treated with insulin among 102 diabetologists in Germany and the Netherlands, who treat 40,260 diabetics in total. 79% off allll d d
Slide 11: Developments in the delivery systems business segment
Developments in the delivery systems business segment With Square Pharmaceuticals and Incepta Pharmaceuticals, Pharmaceuticals additional customers have been acquired for the ServoPen® in Asia. The market introduction with their insulin will take place before the end of the year. The Th cooperat
Slide 12: Agenda
Agenda 11. Introduction 2. Finances 3. Operating activities 4. Outlook 5. Questions and answers 6 Corporate 6. C t overview i 12 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 13: The fall in sales in delivery devices was not entirely offset by new business
The fall in sales in the “delivery devices” business segment was not entirely offset by new business IIn million illi CHF 2011/12 2010/11 Δ in i % Delivery Devices 153.4 173.9 -11.8% Diabetes Direct Business 78.2 72.6 7.7% Others 17 0 17.0 15 3 15.3 11 0% 11.0% Sales of goods and services 248.6 261.
Slide 14: Strong Swiss franc reduces consolidated sales by CHF 10.8 million
Strong Swiss franc reduces consolidated sales of goods and services by CHF 10.8 million IIn million illi CHF (i(incl.l FX effects) ff t ) 2011/12 2010/11 Δ in i % Delivery Devices 157.3 173.9 -9.5% Diabetes Direct Business 84.7 72.6 16.7% Others 17 4 17.4 15 3 15.3 13 7% 13.7% Sales of goods and ser
Slide 15: Operating profit adversely affected by extraordinary factors
Operating profit adversely affected by extraordinary factors IIn million illi CHF 2011/12 iin % 2010/11 iin % Sales of goods and services 248.6 100% 261.8 100% Cost of goods and services sold -192.2 -77.3% -200.8 -76.7% Gross profit 56 4 56.4 22 7% 22.7% 61 0 61.0 23 3% 23.3% Marketing and sales exp
Slide 16: Market development in Diabetes Direct Business impacts operating profit
Market development in “Diabetes Direct Business” impacts negatively on operating profit IIn million illi CHF 2011/12 2010/11 Δ in i % Operating profit Delivery Devices 13.8 22.2 -37.8 % Operating profit Diabetes Direct Business -9.1 -12.9 29.5 % Operating profit Others 04 0.4 -0.5 05 180 0 % 180.0 T
Slide 17: EBITDA margin slightly up on the previous year’s level
EBITDA margin slightly up on the previous year’s level IIn million illi CHF 2011/12 iin % 2010/11 iin % Δ in i % Operating profit 5.1 2.1 % 8.8 3.4 % -1.3 % Depreciation of fixed assets 19.6 7.9 % 19.6 7.5 % 0.4 % Amortization of intangible assets 81 8.1 33% 3.3 54 5.4 21% 2.1 12% 1.2 EBITDA 32.9 13
Slide 18: Profit from the sale of financial assets increases net profit
Profit from the sale of financial assets increases net profit IIn million illi CHF 2011/12 iin % 2010/11 iin % Δ in i % Operating profit 5.1 2.1 % 8.8 3.4 % -1.3 % Financial income 7.9 3.2 % 1.7 0.6 % 2.6 % Financial expenses -3.4 34 -1.4 14% -2.6 26 -1.0 10% -0.4 04% Profit before income taxes 9.7
Slide 19: Balance sheet total streamlined – goodwill set off against equity
Balance sheet total streamlined – goodwill set off against equity IIn million illi CHF 31 03 2012 31.03.2012 i % 31.03.2011 in 31 03 2011 i % in Assets Cash and cash equivalents 9.7 3.0% 5.0 1.4% Trade receivables 24 5 24.5 7 5% 7.5% 32 3 32.3 9 1% 9.1% Other current assets 6.1 1.9% 5.0 1.4% Prepaym
Slide 20: Sound financing structure with an equity ratio of 66.6%
Sound financing structure with an equity ratio of 66.6% I million In illi CHF 31 03 2012 31.03.2012 i % 31.03.2011 in 31 03 2011 i % in Liabilities and equity Financial liabilities 46.5 14.2% 40.0 11.3% Current financial liabilities to major j shareholder 10.0 3.1% 10.0 2.8% Trade payables 13.5 4.1%
Slide 21: Positive cash flow in the 2011/12 business year
Positive cash flow in the 2011/12 business year I million In illi CHF 2011/12 2010/11 Cash flow from operating activities 31.1 28.9 Purchases of financial assets -1.2 0.0 Disposals p of financial assets 11.5 0.0 Purchases of fixed assets -7.5 -14.5 Disposals of fixed assets 0.6 2.0 Purchases of inta
Slide 22: Agenda
Agenda 11. Introduction 2. Finances 3. Operating activities 4. Outlook 5. Questions and answers 6 Corporate 6. C t overview i 22 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 23: B2B umbrella brand YDS Delivery Systems brings clarity
B2B umbrella brand “YDS Delivery Systems” brings clarity to Ypsomed’s B2B image 23 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 24: More confidence. More success. With Ypsomed Delivery Systems.
More confidence. More success. With Ypsomed Delivery Systems. Custom Contract Contract Drug & device products development manufacturing assembly More information on www.ypsomed.com/yds Ypsomed AG // Brunnmattstrasse 6 // 3401 Burgdorf T +41 34 424 41 11 // F +41 34 424 41 22 // www.ypsomed.com/yds
Slide 25: Market news – new reusable pens in 2011
Market news – new reusable pens in 2011 Dongbao Gansulin pen Biocon InsuPen for the Indian produced by Ypsomed market produced by competitors Bioton GensuPen B.Braun Omnifill pen reusable spring-touch pen produced by Ypsomed proprietary technology (Copernicus) 25 | Ypsomed Holding AG | Presentation
Slide 26: Market news – new disposable pens in 2011
Market news – new disposable pens in 2011 Novo Flextouch proprietary technology Lilly disposable hGH pen proprietary technology Pfizer GoQuick produced by Ypsomed 26 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 27: Market trends – the scale of simplicity continues...
Market trends – the scale of simplicity continues... Release using push on skin vs. vs button release Needle withdrawal vs. needle protection sleeve Late release vs. early release needle protection Manual needle insertion makes the device far more straightforward 27 | Ypsomed Holding AG | Pr
Slide 28: Market trends – increasing use of pens
Market trends – increasing use of pens Reusable & disposable twist pens have established a place in the market Spring drives are used increasingly for reusable and disposable pens Pen focus: insulin, hGH/IGF-1, FSH, GLP-1, PTH, methotrexate, apomorphine ServoPen Flexpen, Solostar, Kwikpen Novo
Slide 29: Market trends – auto-injectors are on the march
Market trends – auto-injectors are on the march Syringes or syringes in auto-injectors auto injectors are needed for many of the new drugs Auto-injectors are also in the spotlight for 2nd generation biologics (MAbs) and slow-release formulations Biosimilars need copies of auto-injectors on the
Slide 30: Market trends – the patent cliff brings new market players
Market trends – the “patent cliff” is bringing several new market players onto the scene Source: IMS Health 30 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 31: Market trends – potential sales by indication
Market trends – potential sales by indication (excluding pure contract manufacturing) Significant potential for growth in the N I li Non-Insulin I li Insulin insulin environment with many new 500 customers outside the “big 3” (from 450 million CHF/yeear CHF 61.6 61 6 to 140.8 140 8 million) 400
Slide 32: Market trends – market shares of device manufacturers
Market trends – market shares of device manufacturers Today Tomorrow Various (Bespak, BD Antares) Haselmeier 8% BD 5% 4% 9% Haselmeier Ypsomed Owen 6% 35% Mumford 18% Ypsomed Owen 44% Mumford 11% SHL SHL 35% 25% Source: Ypsomed assumption 32 | Ypsomed Holding AG | Presentation of the annual results
Slide 33: ServoPen – additional customers on the same platform
ServoPen® – additional customers on the same platform 33 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 34: ServoPen – status of acquisitions and potential
ServoPen® – status of acquisitions and potential 100% 80% Probaability of being reealized 60% 40% 20% 0% yyyy 2010 yyyy 2011 yyyy 2012 yyyy 2013 yyyy 2014 yyyy 2015 Probable introduction date 34 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 35: Tonghua Dongbao – benefiting from good relationships
Tonghua Dongbao – we are also benefiting increasingly from good relationships built up over the years 35 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 36: Tonghua Dongbao – partnership expanded
Tonghua Dongbao – partnership expanded 36 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 37: YpsoPen Twist – industrialization project in China on track
YpsoPen® Twist – industrialization project in China on track; high levels of interest among customers 37 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 38: YpsoPen Twist – status of acquisitions and potential
YpsoPen® Twist – status of acquisitions and potential 100% 80% t obability of realizzation 60% 40% Pro 20% 0% yyyy 2012 yyyy 2013 yyyy 2014 yyyy 2015 Probable introduction date 38 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 39: UnoPen – status of acquisitions and potential
UnoPen® – status of acquisitions and potential 100% 80% Probbability of realizaation 60% 40% 20% 0% yyyy 2014 yyyy 2015 yyyy 2016 Probable introduction date Introduction is dependent on the registration of combination products/drugs 39 | Ypsomed Holding AG | Presentation of the annual results 2011/1
Slide 40: Non-insulin – two initial auto-injector projects secured with YpsoMate
Non-insulin – two initial auto-injector projects secured with YpsoMate™ 40 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 41: Non-insulin – status of acquisitions and potential
Non-insulin – status of acquisitions and potential of pens and auto-injectors 100% 80% Probability oof reaalization 60% 40% Pro P 20% 0% yyyy 2012 yyyy 2013 yyyy 2014 yyyy 2015 yyyy 2016 yyyy 2017 yyyy 2018 yyyy 2019 Probable introduction date Introduction is dependent on the registration of combina
Slide 42: Diabetes care
Diabetes care 42 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 43: More Freedom. More Confidence. With mylife.
More Freedom. M More C fid Confidence. With mylife™. Blood glucose Pen needles and Infusion systems Accessories and monitoring systems safety pen needles services More information is available at www.mylife-diabetescare.com Ypsomed AG // Brunnmattstrasse 6 // 3401 Burgdorf // Switzerland T +41 34 42
Slide 44: Diabetes market
Diabetes market The spread of diabetes is subject to high growth rates (according to WHOWHO, there will be approximately 440 million diabetics by 2030) – a market worth billions with substantial potential for growth. On O the th other th hhand,d hhealth lth costs t associated i t d with ith di d
Slide 45: Pen needles – planned expansion in capacity to 1 billion per year
Pen needles – planned expansion in capacity to 1 billion pen needles per year 45 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 46: Blood glucose monitoring – update on mylife Pura business
Blood glucose monitoring – update on mylife™ Pura® business Strip sales 33 33.6% 6% up on the previous year but below expectations. Complies with highest standards for monitoring accuracy thanks th k tto ththe innovative i ti high hi h definition d fi iti signal transmission (HDST). Simple, se
Slide 47: Blood glucose monitoring – new device mylife Unio
Blood glucose monitoring – new blood glucose monitoring device mylife™ Unio™ Target group are type 1 diabetics and generally people who monitor their blood glucose very frequently. Next N t generation ti off blood bl d glucose l monitoring it i systems based on customer surveys and focus groups.
Slide 48: Blood glucose monitoring – strong partnership with Bionime
Blood glucose monitoring – strong partnership with Bionime 48 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 49: Infusion systems – next generation mylife OmniPod obtained CE certification
Infusion systems – the next generation of mylife™ OmniPod® has obtained CE certification! 49 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 50: Infusion systems – new mylife OmniPod is smaller and lighter
Infusion systems – the new mylife™ OmniPod® is significantly smaller and lighter 35% smaller 16% thinner 25% lighter – only 25 grams! 50 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 51: Infusion systems – intensification of the cooperation with Insulet Corp.
Infusion systems – intensification of the cooperation with Insulet Corp. An extension to the contract to June 2016 2016, with the option of a further two year extension, was agreed prematurely with Insulet. An additional 14 markets / countries were secured for the distribution of the mylife lif
Slide 52: Infusion systems – Ypsomed is well placed in the insulin pump market
Infusion systems – Ypsomed is well placed in the market for insulin pumps ors Competito C 52 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 53: Infusion systems – Ypsomed will change the pump market with Lanzi
Infusion systems – Ypsomed will change the pump market with Lanzi High costs Low costs Low complexity High complexity 53 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 54: Infusion systems – mylife Orbit generic infusion set
Infusion systems – mylife™ Orbit® as a generic infusion set and as an infusion set for Lanzi 54 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 55: Accessories support the core portfolio and boost the mylife brand
Accessories support the core portfolio and simultaneously boost the mylife™ brand 55 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 56: New micro-syringe mylife DailyDose
New micro-syringe mylife™ DailyDose™ The self-injection self injection system in credit card format consists of three small syringes that are pre-filled with the daily insulin requirement. requirement Ypsomed will launch mylife™ DailyDose™ on the market this summer in Switzerland, Germany the Un
Slide 57: Ypsomed’s geographic expansion – increasing penetration in existing markets
Ypsomed’s geographic expansion – increasing penetration in existing markets Subsidiaries Distributors Planned distributors, 2012/2013 57 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 58: Sales Organization Diabetes Care – new leadership
Sales Organization Diabetes Care – strong organization now under the new leadership of Dr. Eberhard Bauer (from 01.07.) Thomas Jean-Francois Bram Gary Gjermund Sanjay Patrick Marianne Schiffer Flamant van Bergen Davies Hansen Rajpal Heil Wüthrich Staff headcount per country: 163 24 8 11 8 11 14 4 58
Slide 59: Agenda
Agenda 11. Introduction 2. Finances 3. Operating activities 4. Outlook 5. Questions and answers 6 Corporate 6. C t overview i 59 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 60: Outlook for the 2012/13 business year
Outlook for the 2012/13 business year Due to the discontinuation of the OptiSet® pen, pen the first half of 2012/13 will be modest in terms of both sales and earnings, while the second half of the year is expected to be much better thanks to compensation transactions. Overall, O ll the th planni
Slide 61: Key dates
Key dates General Meeting of Shareholders June 27 27, 2012 Presentation of half-year figures 2012/13 November 1, 2012 Presentation of the annual results 2012/13 May 28, 2013 61 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 62: Agenda
Agenda 11. Introduction 2. Finances 3. Operating activities 4. Outlook 5. Questions and answers 6 Corporate 6. C t overview i 62 | Ypsomed Holding AG | Presentation of the annual results 2011/12
Slide 63: Questions and answers
Questions and answers