Slide 1: PolyPeptide Group AG Full-year 2023 results
PolyPeptide Group AG (SIX: PPGN) Full-year 2023 results 12 March 2024 Baar, Switzerland
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by PolyPeptide Group AG (“PolyPeptide" and together with its subsidiaries, "we", "us" or the "Group"). The information contained in the Presentation does not purport to be comprehensive. Please refer to the financial reports availab
Slide 3: Agenda
Agenda 1 Strategy update Juan José González, CEO 2 Financial results & guidance Marc Augustin, CFO 3 Q&A All 3
Slide 4: 2023 – Transformation underway
2023 – Transformation underway A leading position in an attractive market + PolyPeptide well positioned with multi-site manufacturing and development network and rich pipeline Operational improvements taking shape in H2 + Record revenue growth in H2 vs H1 and improved profitability and cash flow Rap
Slide 5: Peptides – One of the most attractive CDMO markets
Peptides – One of the most attractive CDMO markets Broad development pipeline1 Robust outsourcing trends Selected developments in 2023 ~1’000 peptide drug projects • Customer focus on core • 6 FDA approvals2 accross • ~800 synthetically manufactured competencies multiple therapeutical areas • ~340 i
Slide 6: PolyPeptide – Well positioned with competitive advantages
PolyPeptide – Well positioned with competitive advantages >70 years 6 GMP sites Track record with over Multi-site GMP certified 1,000 therapeutic network in Europe, peptides manufactured the US, and India Development expertise Manufacturing experience Cutting-edge process Manufacturing around one de
Slide 7: Operations – Getting ready for high-volume production
Operations – Getting 2023 operational ready for high-volume production progress Operational improvements + Focusing on meeting high customer demand efficiently • Process optimizations • Technical proficiency • Organizational changes Investment projects + Continuously expanding capacity • Several dow
Slide 8: Growth – Strong acceleration in H2 2023
Growth – Strong acceleration in H2 2023 Revenue by period (EUR m) Growth 2023 vs 2022 320.4 +14% • +18% at constant currency rates 5.8 • Covid business fully phased out 281.0 • Excluding covid Covid 50.7 • +37% total growth 184.2 +42% • Acceleration in H2 H2 129.4 130.3 +29% H1 100.8 2022 2023 8
Slide 9: Pipeline – Phase III projects advancing towards commercialization
Pipeline – Phase III projects advancing towards commercialization Projects by phase 2022 2023 Pre-clinical 72 58 Phase I 81 76 Phase II 37 41 Phase III 30 29 Total pipeline 220 204 Commercial1 60 64 • Rich and diversified pipeline • Early-stage: Limited funding climate impacting pre-clinical activit
Slide 10: Contract manufacturing – To benefit from large commercial contracts
Contract manufacturing – To benefit from large commercial contracts Revenue by business area (EUR m) • Excluding covid, Contract manufacturing 320.4 revenue accounting for 42% of revenue in 2023 (37% in 2022) 281.0 5.8 30.5 +1% • Positive customer momentum • Prepayments to secure capacity Covid 50.7
Slide 11: Portfolio – Rapidly shifting towards metabolic and large pharma
Portfolio – Rapidly shifting towards metabolic and large pharma Revenue (%) by therapeutical area1 Revenue (%) by customer type1 (EUR m) 281.0 320.4 (EUR m) 281.0 320.4 2% 2% Covid 18% Covid 18% 11% Other 12% 29% 59% 55% Biotech 28% Other 58% 39% Large pharma 42% Metabolic 27% 2022 2023 2022 2023 1
Slide 12: Innovation – Advancing peptide manufacturing technology
Innovation – Advancing peptide manufacturing technology Green chemistry1 Manufacturing • Reduce – deployment of proprietary • Proprietary technology aimed at “washing by percolation” technology, step change increase in throughput driving a 23.5% reduction of relative for SPPS infrastructure solvent
Slide 13: Agenda
Agenda 1 Strategy update Juan José González, CEO 2 Financial results & guidance Marc Augustin, CFO 3 Q&A All 13
Slide 14: Revenue growth across therapeutical areas
Revenue growth across therapeutical areas EUR m 14.0% • Growth of 18.2% at constant currency rates • Phase out of covid-related revenue more than +84.3 320.4 offset by growth across therapeutical areas Business areas (reported) Custom projects +10.3% 281.0 -44.9 Contract manufacturing +22.2% Generic
Slide 15: EBITDA bridge 2022 vs 2023
EBITDA bridge 2022 vs 2023 EBITDA by period (EUR m) EUR m 26.7 +11.7% 38.7 12.0 13.4 -19.3 -19.4 H1 H2 H1 H2 2022 2023 -18.3 -5.0 -2.1 -6.0 EBITDA Write-downs Operational Product Other EBITDA EBITDA margin of 7.1% in H2, 2022 costs mix 2023 up from -14.7% in H1 2023 15
Slide 16: Result for the period
Result for the period Summary P&L EUR m 2022 2023 Financial result Revenue 281.0 320.4 • Driven by currency losses, mainly related to an intra-Group loan with offsetting impact in Other EBITDA 38.7 -6.0 Comprehensive Income margin % 13.8 -1.9 Tax Depreciation, amortization & impairment -26.1 -30.5 •
Slide 17: 2023 cash flow
2023 cash flow Summary cash flow statement EUR m 2022 2023 Successful financing activities Operating cash flow before changes in NWC 30.2 -9.7 • Secured RCF of EUR 111m with banks Changes in NWC -24.7 46.2 • Extended credit facility of EUR 40m with main shareholder Net cash flows from operating acti
Slide 18: 2023 capex – Completion of several investments
2023 capex – Completion of several investments Capex1 as % of revenue Accelerated capital deployment • Double capex in % of revenue – avg capex 2020 29.5% to 2022 of 26.4% vs 2017 to 2019 of 12.2% 27.2% • 2023 capex focused on completion of expansion program started in 2020 21.6% • Capex deployed fr
Slide 19: Priorities for 2024 and guidance
Priorities for 2024 and guidance Guidance 2024 • Revenue growth in 2024 mid to high single-digit at constant currency rates versus 2023 • Meet increasing customer demand, continue to strengthen • Positive EBITDA, operating at a net loss operations and profitability • Capital expenditure expected bet
Slide 20: Q&A
Q&A The presentation will be followed by a Q&A session. Anyone who wishes to ask a question, or make a comment can do it in the following ways: ? • Through the telephone by pressing * and 1 (please register on the website to receive the personal dial-in details) In case of assistance please press *
Slide 21: Appendix
Appendix
Slide 22: Consolidated income statement
Consolidated income statement 1 January – 31 December 22
Slide 23: Consolidated statement of financial position
Consolidated statement of financial position As at 31 December 23
Slide 24: Consolidated statement cash flow
Consolidated statement cash flow 1 January – 31 December 24
Slide 25: Contact and calendar
Contact and calendar Contact Events 2024 Michael Stäheli 14 March 2024 Roadshow Zurich with UBS Head of Investor Relations & Corporate Communications 15 March 2024 Roadshow London with Citi T: +41 43 502 0580 | E: michael.staeheli@polypeptide.com investorrelations@polypeptide.com | mediateam@polypep
Slide 26: Thank you
Thank you