STADA Arzneimittel — Investor Presentation (August 2015)
48 slides from STADA Arzneimittel's investor presentation, August 2015
Slide 1: STADA Corporate Presentation
STADA Corporate Presentation Investor Relations, August 2015
Slide 2: General information
General information By making use of this document the reader acknowledges and agrees to the following: We accept no liability arising from the use of this document. STADA Arzneimittel AG, Bad Vilbel (in the following “STADA”), has made every effort to make sure that this document contains correct a
Slide 3: Forward-looking statements
Forward-looking statements This STADA Arzneimittel AG presentation (hereinafter "STADA") contains certain statements regarding future events that are based on the current expectations, estimates and forecasts on the part of the company management of STADA as well as other currently available informa
Slide 4: History
History 1895 Founded in Dresden as a pharmacists' cooperative 1970 Stock corporation with restricted registered common shares only for pharmacists 1975 Market entry in the young generics market 1986 Beginning of internationalization 1998 Start of trading on the stock exchange 2001 Included in MDAX o
Slide 5: Strategy and Outlook
YEARS ALL THE BEST y Strategy and Outlook
Slide 6: Strategy focus
Strategy focus Consumer focus: • Pushing of existing and acquired brands expansion of branded products • Higher share of branded products in adjusted operating profit of core segments (2014: 52%) Expansion of generics • Focus on markets with high share of self-pay patients (e.g. CIS, Asia, MENA) por
Slide 7: Sales split 2014
Sales split 2014 Sales of core segments 40% 60% Branded Products Generics (OTC and RX Specialty Pharmaceuticals) (RX and OTC) EBITDA margin adj.: 30.3% EBITDA margin adj.: 18.8% Company Presentation August 2015 Investor Relations Page 7
Slide 8: Expansion of the Branded Products segment
Expansion of the Branded Products segment 51% 52% 50% 46% 40% 39% 36% 37% 36% 33% 27% 28% 2010 2011 2012 2013 2014 1-6/2015 Share of Branded Products in sales1) Share of Branded Products in adjusted operating profit1) 1) of the two core segments Generics and Branded Products.. Company Presentation A
Slide 9: Innovations: Center of Excellence
Innovations Center of Excellence for branded products • Think tank for the entire STADA Group • Multidisciplinary team: market research, marketing, R&D, production, and business development • Objective: long-term pipeline and portfolio development in the areas of OTC and dermatology • Ongoing develo
Slide 10: Innovations: biosimilar activities
Innovations Expansion of biosimilar activities • Comprehensive experience with EMA's approval processes for biosimilars resulting • Since 2008: in-house development from the successful development of Epo of Silapo® (Epoetin zeta) • Exploiting opportunities with adequate • 2014: introduction of Grast
Slide 11: Innovations: product development
Innovations Product development • Introduction of 626 individual products worldwide in 2014 (706 in 2013) • 270 new products in 1-6/2015 (301 in 1-6/2014) • Full pipeline: planning horizon beyond 2024 • Over 1,300 approval procedures for more than 150 active pharmaceutical ingredients in over 55 cou
Slide 12: Outlook for 2015
Outlook for 2015 Group: • Slight growth in sales adjusted for currency and portfolio effects • Substantial decrease in adjusted EBITDA and adjusted net income1) • Ratio of net debt, excluding further acquisitions, to adjusted EBITDA of nearly 3 Adjustment for special effects in connection with the t
Slide 13: Assumptions for market regions for 2015
Assumptions for market regions for 2015 Operational influence factors • Decline in sales, operating profitability under Group average Germany • Stable sales of generics and brands in Germany, decline in export business due to reclassification • Sales growth, operating profitability at Group average
Slide 14: Market Regions
y Market Regions YEARS
Slide 15: Sales 1-6/2015
Sales 1-6/2015 By market region Total group € 1,025.9 million Asia & Pacific +2% (+2%) € 71.7 million +67.4% (+35.2%) Germany € 227.9 million 7.0% +0.4% (+0.4%) CIS/Eastern Europe € 227.2 million -14.5% (+2.9%) 22.2% 22.1% 48.7% Central Europe € 499.1 million +6.8% (+0.2%) (x) = Adjusted for changes
Slide 16: Market region Central Europe
Market region Central Europe Generics sales Branded product sales Most important countries (in € million) (in € million) (Sales in € million) Total 1-6/2015: € 499.1 million (+6.8%, adjusted1) +0.2%) Generics +3.4% Branded products 306.1 316.4 +17.1% 79.3 74.8 65.0 167.8 54.1 143.3 35.9 17.4 12.8 5.
Slide 17: Market region Germany
Market region Germany Generics sales Branded product sales Optimization of the German sales activities (in € million) (in € million) Total 1-6/2015: € 227.9 million (+0.4%) • STADAvita +6.3% -10.5% (Preventative arm) 147.2 156.5 • STADAGmbH (Curative arm) 79.8 71.4 • Withdrawal of STADApharm from di
Slide 18: Market region CIS/Eastern Europe
Market region CIS/Eastern Europe Generics sales Branded product sales Most important countries (in € million) (in € million) (Sales in € million) Total 1-6/2015: € 227.2 million (-14.5%, adjusted1) +2.9%) Generics Branded products -11.6% -16.9% 146.2 84.3 118.9 121.6 105.1 41.3 36.9 10.0 8.2 8.8 2.9
Slide 19: Development in Russia
Development in Russia Generics sales Branded product sales Measures in the currently difficult market environment (in € million) (in € million) Total 1-6/2015: € 125.5 million (-23%, adjusted1) -1%) • Discipline with regard to functional costs -26% -22% • Portfolio management: focus on high-margin p
Slide 20: Market region Asia/Pacific & MENA
Market region Asia/Pacific & MENA Generics sales Branded product sales Development Vietnam (in € million) (in € million) (in bn USD in CER2)) Total 1-6/2015: € 71.7 million (+67%, adjusted1) +35%) 5.000 20% +40% +133% 4.000 15% 37.2 3.000 28.5 26.6 10% 2.000 12.2 5% 1.000 0 0% 1-6/2014 1-6/2015 1-6/
Slide 21: Branded Products
YEARS ALL THE BEST y Branded Products
Slide 22: STADA branded products
STADA branded products Company Presentation August 2015 Investor Relations Page 22
Slide 23: Strategic focus on OTC
Strategic focus on OTC 20101) 20141) OTC corporation Sales in €m OTC corporation Sales in €m 1 Novartis 1,364 1 Novartis 1,550 2 Bayer 1,186 2 Bayer 1,183 3 Sanofi 1,081 3 Sanofi 1,176 4 Johnson & Johnson 1,010 4 Johnson & Johnson 957 5 GlaxoSmithKline 605 5 Teva 597 6 Teva 546 6 Reckitt Benckiser 5
Slide 24: Branded Products 1-6/2015
Branded Products 1-6/2015 Sales Adj. EBITDA Regional Sales Development (in € million) (in € million) Asia & Pacific +2% € 28.5 million +133% (+90%) Germany 381.6 389.3 € 71.4 million 7.3% -10.5% (-10.5%) 18.4% -9% CIS/Eastern Europe € 121.6 million -16.9% (+2.2%) 120.1 31.2% 109.7 43.1% Central Euro
Slide 25: Strong brands in 1-6/2015
Strong brands in 1-6/2015 No. Branded Product Growth in % Sales in € million Indication ® 1. APO-go (RX) +24 29.3 Parkinson 2. Grippostad® (OTC) +16 17.1 Cough and cold 3. Ladival® (OTC) -29 17.1 Sun Protection 4. Snup® (OTC) -20 10.6 Rhinitis 5. Levomecol® (OTC) +26 9.8 Infection 6. Care®1) (OTC) +
Slide 26: Strong sales growth in the branded products area in 2014
Strong sales growth in the branded products area1) in 2014 242.7 € million 124.0 € million 118.2 € million 25.2 € million 24.2 € 30.7 € million million 20.7 € Russia million Germany UK -3.8% Italy +12% +73.4% Poland +18.6% Vietnam 19.9 € +29.8% Ukraine million +45.4% -24.1% France +86.1% 18.8 € mill
Slide 27: Successful product supplements
Successful product supplements Acquisitions 2014/2015 • Purchase of cosmetics line Claire Fisher • Acquisition of the Russian branded product portfolio Aqualor® • Purchase of production and distribution rights for the branded product portfolio Flexitol® for the United Kingdom and Ireland (internatio
Slide 28: Generics
y Generics YEARS
Slide 29: Leading position in key markets
STADA Leading position in key markets Belgium: #1 Eurogenerics Serbia: #1 Hemofarm Russia: #21) Nizhpharm, MAKIZ Germany: #3 ALIUD, STADApharm Spain: #2 Laboratorio STADA Italy: #5 EuroGenerici 1) Local suppliers/producers Company Presentation August 2015 Investor Relations Page 29
Slide 30: Generics 1-6/2015
Generics 1-6/2015 Sales Adj. EBITDA Regional Sales Development (in € million) (in € million) +3% Asia & Pacific -6% € 37.3 million +40.1% (+11.7%) Germany 598.7 615.3 € 156.5 million 6.1% +6.3% (+6.3%) CIS/Eastern Europe € 105.1 million 17.1% 25.4% -11.6% (+3.7%) 118.4 111.4 Central Europe 51.4% € 3
Slide 31: Environment analysis
Environment analysis Growth markets health care & pharma Growth opportunities for generics • Global population growth • Progressive generics penetration • Aging society in industrialized countries • Continuous patent expirations, especially in • Medical progress biologicals with high sales potential
Slide 32: Financials
y Financials YEARS
Slide 33: Growth components 1-6/2015
Growth components 1-6/2015 Group sales in € 1,002.8 +1.8% 1,025.9 +2.4% -1.9% 1-6/2014 Organic1) Portfolio Currency 1-6/2015 1) Adjusted for changes in the Group portfolio and currency effects. Company Presentation August 2015 Investor Relations Page 33
Slide 34: Key earnings figures 1-6/2015
Key earnings figures 1-6/2015 EBITDA (in € million) 1-6/2015 vs. 1-6/2014 Net income (in € million) 1-6/2015 vs. 1-6/2014 reported adjusted1) reported adjusted1) -9% -6% 208.3 -20% -6% 189.2 192.1 181.4 90.1 85.0 66.8 53.6 1-6/2014 1-6/2015 1-6/2014 1-6/2015 1-6/2014 1-6/2015 1-6/2014 1-6/2015 1) Ad
Slide 35: Net income adjustments in 1-6/2015
Net income adjustments in 1-6/20151) in € million 8.6 85.0 8.5 0.1 7.0 7.2 53.6 Reported net Delta additional Translation Write-downs Extraordinary Measurement Adjusted net income depreciation/amor expense of following expenses (e.g. of derivative income -tization and other significant impairment di
Slide 36: Development of sales and margins
Development of sales and margins 2010-2014 1-6/2015 vs. 1-6/2014 2.500 23 22 2.000 20.7 21.0 21 20.0 20.8 18.4 1.500 19.4 19.7 20 1.000 19 18 500 17 0 16 2010 2011 2012 2013 2014 1-6/2014 1-6/2015 Adjusted1) EBITDA margin in % Sales in € million • Expansion of self-pay portfolio • H1 burdened by CIS
Slide 37: Tax rate analysis
Tax rate analysis Development of the adjusted tax rate Outlook adjusted tax rate 22.5% <25% 20.3% 1-6/2014 1-6/2015 2015e Tax rate in 1-6/2015 within expectations for 2015: • The improvement of the tax rate primarily results from a changed profit allocation; since the end of 2013, STADA Arzneimittel
Slide 38: Balance sheet structure
Balance sheet structure Assets in € million June 30, 2015 Dec. 31, 2014 A. Non-current assets 2,098.3 2,013.8 B. Current assets 1,338.7 1,321.7 Total assets 3,437.0 3,335.5 Equity and liabilities in € million June 30, 2015 Dec. 31, 2014 A. Shareholders’ equity 1,046.9 903.4 B. Non-current liabilitie
Slide 39: Balanced financing structure
Balanced financing structure Remaining maturities of financial liabilities due to banks as of June 30, 2015 in € million Corporate bond Credit Promissory notes 24.5 350.0 270.0 300.0 250.5 188.0 55.6 44.0 23.0 2015 2016 2017 2018 2019 > 2019 • In the first quarter of 2015, STADA was able to secure a
Slide 40: Cash flow from operating activities and adjusted free cash flow
Cash flow from operating activities and adjusted free cash flow Cash flow from operating activities (in € million) 2010-2014 1-6/2015 vs. 1-6/2014 194.8 212.7 203.7 223.8 169.0 61.8 40.4 2010 2011 2012 2013 2014 1-6/2015 1-6/2014 Adjusted free cash flow1) (in € million) 2010-2014 1-6/2015 vs. 1-6/20
Slide 41: Expenses for capital expenditure
Expenses for capital expenditure Total expenses 2012-2014 € million 1-6/2015 vs. 1-6/2014 in € million 482.2 317.3 274.0 170.5 333.3 55.1 10.3 229.7 86.1 77.4 147.5 123.0 14.1 13.5 25.1 37.9 39.5 33.9 21.2 19.8 30.3 3.5 33.9 0.7 37.4 0.1 25.6 0.1 17.3 0.1 1-6/2015 1-6/2014 2012 2013 2014 Share of co
Slide 42: Notes
Notes YEARS
Slide 43: P&L details 1-6/2015
P&L details 1-6/2015 in € million 1-6/2015 1-6/2015 1-6/2014 1-6/2014 in € in % of in € in % of million Sales million Sales Stable gross margin despite burdens from the Gross profit 494.2 48.2 479.9 47.9 CIS crisis (increased procurement prices) Selling Higher marketing expenses 235.7 23.0 219.3 21.
Slide 44: Dividend
Dividend Dividend per STADA common share in € 0.66 0.66 2014: € 40.0 million Dividend payout (2013: € 39.8 million Dividend policy Appropriate share of reported net income to shareholders 2013 2014 Pay-out ratio 62% 33% 2013 2014 Company Presentation August 2015 Investor Relations Page 44
Slide 45: Concentration of the production processes
Concentration of the production processes Share in production Share in production volume 2009 Own production locations volume 2014 Market region Germany 14% 34% Bad Vilbel (Germany) Pfaffenhofen (Germany) 12% Market region Central Europe Huddersfield1) (UK) Market region CIS/Eastern Europe Vrsac (Se
Slide 46: Share capital and shareholder structure
Share capital and shareholder structure June 30, 2015 STADA shares1)2) 62,342,440 Amount of treasury shares 88,290 Current shareholder structure on Dec. 31, 2014 • 100% free float • Approx. 58% institutional investors • Current notices with regard to the exceeding of the legal reporting threshold of
Slide 47: Responsibility and sustainability
Responsibility and sustainability Code of Conduct Markets and products Society • STADA mission statement: care for people’s • Strengthening of employee well-being through fitness health and well-being. and health care • Generics contribute to efficient and affordable • High share of women in managem
Slide 48: Your contact
Your contact STADA Arzneimittel AG Investor Relations Vice President Investor Relations 61118 Bad Vilbel, Deutschland Dr. Markus Metzger Telefon: +49 (0) 6101 603-113 markus.metzger@stada.de Telefax: +49 (0) 6101 603-506 E-Mail: ir@stada.de www.stada.de Company Presentation August 2015 Investor Rela
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