Medartis Holding Ag · SIX:MED
Medartis — FY2020 Earnings Presentation
32 slides from Medartis's earnings presentation, 2021
Slide 1: 2020 Full-Year Results
2020 | Full-Year Results Presentation for investors, analysts and the media Salome Lang | Basel athlete of the year 2017 and Medartis Trainee
Slide 2: Disclaimer
Disclaimer This presentation is not an offer to sell or a solicitation of offers to purchase or subscribe for shares of Medartis Holding AG, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Thi
Slide 3: Agenda
2020 Full-Year Key Developments Christoph Brönnimann, Chief Executive Officer 2020 Full-Year Financial Review Dominique Leutwyler, Chief Financial Officer Focus & Priorities Christoph Brönnimann Summary & Outlook Christoph Brönnimann Q&A
Slide 4: 2020 full-year at a glance
2020 full-year at a glance Sales EBITDA Employees CHFm 124.7 CHFm 19.7 636 -4% in CHF 16% EBITDA margin reported +27 vs 31 December 2019 +1% in local currencies (131.2 CHFm1) 16% EBITDA margin adjusted2 +15 vs 30 June 2020 (1) Fx adjusted. (2) Adjusted – extraordinary impairment on intangible assets
Slide 5: Solid 2020 growth of 1% in local currencies, outperforming the market
Solid 2020 growth of 1% in local currencies, outperforming the market ▪ Full-year Sales of CHFm 124.7, reflecting solid yoy growth of 1% in local currencies − 13% sales growth in direct markets drove sales growth of 9% in local currencies in the second half − Strong growth in second half: DACH yoy +
Slide 6: Increase of adjusted EBITDA margin with continued investments in future growth
Increase of adjusted EBITDA margin with continued investments in future growth ▪ Selective cost savings successfully led to a slight increase of adjusted 16% EBITDA margin, while strategic investments, financed also by reallocation of funds, to accelerate future growth were maintained − Market launc
Slide 7: 2020 Full-Year Financial Review
2020 | Full-Year Financial Review
Slide 8: 2020 full-year key financial results
2020 full-year key financial results 2019 2020 Change CHFm 2019 2020 adjusted(1) adjusted(2) adjusted Sales 130.1 130.1 124.7 124.7 -4% Sales at constant currencies 131.2 131.2 +1% Gross profit 111.3 110.6 103.5 103.5 -6% Opex (including depreciation and amortization) 103.9 103.6 99.7 97.5 -6% Opera
Slide 9: Regional review: Strong sales in H2 in USA, APAC and DACH region
Regional review: Strong sales in H2 in USA, APAC and DACH region Sales in CHFm 2019 2020 % in LC Key Points EMEA • Strong 12% growth in H2 DACH (Switzerland, Germany and Austria) 70.3 68.2 0% • In UK no recovery yet in the second half of the year due to Covid-19 • Good performance in markets as Neth
Slide 10: Business segment review: Strong momentum in H2 despite pandemic-related restrictions
Business segment review: Strong momentum in H2 despite pandemic-related restrictions Sales in CHFm 2019 2020 % in LC Key Points Upper Extremities • Solid growth in wrist, the largest line 92.6 89.2 +1% • Strong full-year elbow growth despite Covid-19 thanks to a training and sales offensive • Succes
Slide 11: Gross margin development: Future improvement of gross profit margin expected
Gross margin development: Future improvement of gross profit margin expected Gross profit margin and COGS Development of gross profit margin 110.6 103.5 Gross profit in CHFm 85.0% 83.4% 83.4% 83.0% 15.0% 17.0% COGS as % of sales 2017 2018 2019 2020 Main drivers ▪ Improvement of gross profit margin e
Slide 12: Cost development: Cost savings HQ reallocated into market growth
Cost development: Cost savings HQ reallocated into market growth Main drivers Operating expenses in CHFm Overall OPEX ▪ Down 6% in CHF 80% 78% As % of sales Research and development -6% 103.6 ▪ Ongoing investments in innovation 97.5 15.4 ▪ MDR readiness affects cost base 0% 15.5 Research and develop
Slide 13: Profitability development: Increased adj. EBITDA 2020 despite Covid-19
Profitability development: Increased adj. EBITDA 2020 despite Covid-19 EBITDA in CHFm Main drivers 15% 16% As % of sales EBITDA ▪ Solid sales in second half year and disciplined +1% cost management lead to slightly improved adjusted EBITDA margin of 16% vs 15% in 2019 ▪ Reallocation of HQ savings to
Slide 14: Focus & Priorities
medartis® PRECISION IN FIXATION Focus & Priorities
Slide 15: We keep executing our strategy
We keep executing our strategy Attractive market Clear priorities Ambitious goals Growing market with new Enhance sales focus Top priority to build-up Accelerate clinical needs requiring addressing regional needs US business sales and margin growth innovation Well positioned to fill Accelerate innov
Slide 16: Substantial progress made in growth initiatives
Substantial progress made in growth initiatives Enhance sales focus addressing regional needs ▪ Regional sales focus at EMB level strengthened with Lisa Thompson (North America), Mareike Loch (EMEA) and local management teams ▪ Sales execution through customer conversion, new product launches and in
Slide 17: Substantial progress made in growth initiatives
Substantial progress made in growth initiatives Execution of our strategy to become very local in the US market ▪ New experienced & US leadership team established and expanded from 4 to 5 sales areas ▪ Territory alignment and distributor and sales force adaptions as a result territory analysis and h
Slide 18: On-time product launches despite challenging Covid-19 environment
On-time product launches despite challenging Covid-19 environment Key launches 2020 Full launch Limited release Forearm fracture system June ☑ Clavicula system Sept ☑ CCS compression screw extension June ☑ Mid-hindfoot correction system* H1 2021 Ongoing Distal ankle fracture system* H1 2021 Ongoing
Slide 19: Refined strategic framework to further accelerate growth in extremities and head
Refined strategic framework to further accelerate growth in extremities and head An innovative portfolio setting new standards of care 1 • Completion of the plate & screw portfolio and launch of new innovative products to the market • More than the current business, Medartis wants to enter in new te
Slide 20: The investment in KeriMedical is based on distinct levers of value generation
1 The investment in KeriMedical is based on 3 distinct levers of value generation Distribution agreement for KeriMedical products • MED to become the exclusive distributor of KeriMedical’s products in selected KeriMedical – a quick markets (excl. FR, BE) overview • Build up distribution in EMEA (Ger
Slide 21: KeriMedical is a growing company offering innovative solutions for hand & wrist
1 KeriMedical is a growing company offering innovative solutions for hand & wrist Product Description Advantage Touch Dual mobility trapeziometacarpal Fast recovery time compared to KeriMedical aims to prosthesis used to treat osteoarthritis the gold standard (trapez- develop and promote a of the th
Slide 22: High growth potential in underserved osteoarthritis market
1 High growth potential in underserved osteoarthritis market Prevalence of Osteoarthritis by Joint Potential revenues per year in the U.S based on market penetration % of population suffering from arthritis in the 55-74 (%) of thumb prostheses – TAM $300M in the US years old age group USDm 70% 5% 15
Slide 23: CMX (Creating More Experience) is an innovative service for patient centered solutions
2 CMX (Creating More Experience) is an innovative service for patient centered solutions Product Description Advantage CMX Planning The CMX-Portal supports the treatment Web-based platform for The CMX services for Service of even very complex cases from exchanging medical information patient specifi
Slide 24: Summary & Outlook
medartis® PRECISION IN FIXATION Summary & Outlook
Slide 25: Summary for 2021
Summery for 2021 ▪ Continued management of Covid-19 situation, taking into account specific regional developments − Focus on health protection and business continuity − Maintain cost discipline while driving sales execution to capture market opportunities ▪ Continued focus on execution of regional i
Slide 26: Outlook
Outlook ▪ Stringent management of Covid-19 pandemic while continuing to focus on growth initiatives resulted in 16% EBITDA margin in 2020 ▪ Solid yoy growth of 1% in local currencies reflecting continued market outperformance ▪ Positive sales momentum in first two months of 2021 in line with expecta
Slide 27: medartis
medartis® < B oS
Slide 28: Appendix
medartis® Appendix
Slide 29: Precision in Fixation
Precision in Fixation Medartis: Specializes in technical high-precision implant systems for surgical fixation of bone fractures and osteotomies Founded: 1997 MODUS® Headquarters: Basel, Switzerland APTUS® Shoulder Subsidiaries: Germany, Austria, France, APTUS® UK, Poland, USA, Mexico, APTUS® Elbow B
Slide 30: Medartis value chain
Medartis value chain Product development Customer acquisition Patient journey Revenue generation ▪ Medartis strives to advance existing Involves multiple channels: ▪ Starts with an accident or bone ▪ Reprocessable surgical possibilities and find new clinical ▪ Sales representative’s direct malformat
Slide 31: Consolidated financial statement
Consolidated financial statement 2020 2019 Consolidated Consolidated CHF CHF Net Sales 124’657’066 130’143’937 Costs of goods sold -21’150’775 -18’877’007 Gross profit 103’506’291 111’266’930 Gross Profit Margin 83.0% 85.5% Selling and Distribution -61’848’224 -65’906’239 Administration -21’752’825
Slide 32: Consolidated balance sheet
Consolidated balance sheet (CHF) 31 December 2020 31 December 2019 (CHF) 31 December 2020 31 December 2019 Assets Liabilities and equity Current assets: Current liabilities: Cash & Cash equivalents 82’734’816 99’571’993 Accounts payable trade 5’732’466 10’735’393 Accounts receivable trade 24’189’296