STADA Arzneimittel — Q1 2017 Earnings Presentation
20 slides from STADA Arzneimittel's earnings presentation, May 11, 2017
Slide 1: Corporate Presentation: Analyst Call Q1/2017
CORPORATE PRESENTATION Analyst Call Q1/2017 May 11, 2017
Slide 2: Reasoned Joint Statement: STADA Recommends Acceptance of Takeover Offer (1/2)
REASONED JOINT STATEMENT: STADA RECOMMENDS THE ACCEPTANCE OF THE TAKEOVER OFFER SUBMITTED BY BAIN CAPITAL / CINVEN (1/2) The Executive Board and Supervisory Board have carefully reviewed the takeover offer submitted by Bain Capital / Cinven and published their Reasoned Joint Statement on May 11, 201
Slide 3: Reasoned Joint Statement: STADA Recommends Acceptance of Takeover Offer (2/2)
REASONED JOINT STATEMENT: STADA RECOMMENDS THE ACCEPTANCE OF THE TAKEOVER OFFER SUBMITTED BY BAIN CAPITAL / CINVEN (2/2) The Executive Board and Supervisory Board support the intentions of the bidder expressed in the offer document Measures and targets correspond to the commitments agreed in the I
Slide 4: Current Shareholder Structure
CURRENT SHAREHOLDER STRUCTURE Institutional Investors thereof ~ 12% Index Investors ~73% ~27% Retail Investors Source: Orient Capital. Shareholder analysis based on share register as of May 10, 2017. STADA Corporate Presentation • May 11, 2017 Page 4
Slide 5: Q1/2017: Strong Start into the Year
Q1/2017: STRONG START INTO THE YEAR Group sales & earnings Cash flow o Increase in all key earnings figures – o Operating cash flow, free cash flow and free reported and adjusted cash flow adjusted significantly improved Generics Leverage o Continued growth in sales and earnings o Net debt further r
Slide 6: Generics Key Highlights
GENERICS KEY HIGHLIGHTS Strong growth in Serbia based on first-time consolidation effect of a wholesaler and change in distribution model (direct sales) Reorganization of STADApharm and cell pharm in Germany Generics business expected to be completed in July remains attractive core business Key prod
Slide 7: Branded Products Key Highlights
BRANDED PRODUCTS KEY HIGHLIGHTS Strong sales in Russia due to positive price and volume effects Good growth of established brands and numerous launches (internationalization of brands) incl. Fultium in Belgium and Internationalization of Portugal, Ombe drink (Lactoflora) in Austria, Flexitol in Fran
Slide 8: Financial Overview
FINANCIAL OVERVIEW Group results €m Q1/2017 Q1/2016 Δ Sales 566.3 497.1 +14% Sales (adj.)1 538.4 496.7 +8% EBITDA 108.6 85.2 +27% EBITDA (adj.)2 108.5 92.1 +18% Financial result -9.6 -12.6 +23% Income taxes 15.2 11.8 +28% Net Income 49.2 29.6 +66% Net Income (adj.)2 53.3 40.1 +33% 1) Adjusted for cu
Slide 9: Generics Segment Results
GENERICS Segment results €m Q1/2017 Q1/2016 Δ Sales 325.9 307.2 +6% Sales (adj.)1 311.6 306.8 +2% EBITDA (adj.)2 69.4 63.6 +9% Margin (adj.)2 21.3 20.7 +60bps 1) Adjusted for currency and portfolio effects. 2) Adjusted for special items. STADA Corporate Presentation • May 11, 2017 Page 9
Slide 10: Generics: Q1 Segment Sales by Country
GENERICS Q1 segment sales Sales by country Q1/2017 in €m Germany: lower sales reflect selected tender approach and stronger focus on profitability Germany 81 71 Italy Russia: decrease in adjusted numbers due to termination -7% +8% of contract manufacturing of one product Spain Belgium Serbia: strong
Slide 11: Branded Products Segment Results
BRANDED PRODUCTS Segment results €m Q1/2017 Q1/2016 Δ Sales 240.4 189.8 +27% Sales (adj.)1 226.8 189.8 +19% EBITDA (adj.)2 57.0 48.2 +18% Margin (adj.)2 23.7 25.4 -140bps 1) Adjusted for currency and portfolio effects. 2) Adjusted for special items. STADA Corporate Presentation • May 11, 2017 Page 1
Slide 12: Branded Products: Q1 Segment Sales by Country
BRANDED PRODUCTS Q1 segment sales Sales by country Q1/2017 in €m Germany: growth mainly due to new product launches and price increases for major products 63 Germany Russia: strong growth due to increased volume 70 +22% +2% Russia effects Branded UK UK: good flu season and nice growth of established
Slide 13: Cash Flow Development
CASH FLOW DEVELOPMENT €m Q1/2017 Q1/2016 Δ Operating cash flow 59.5 47.2 +26% Capex (maintenance and other minor -20.1 -27.2 investments net of disposals) Free cash flow (adj.)1 39.4 20.0 +96% (before dividends) Acquisitions net of disposals -13.9 -14.1 Free cash flow 25.5 5.9 +328% (before dividend
Slide 14: Net Debt/EBITDA (adj.)
NET DEBT/EBITDA (ADJ.) 4,0 2017 TARGET Below 3* 3,5 3.2 3.2 3.1 3.1 3.1 3,0 2.8 2.7 2.7 2.5 2,5 2,0 2009 2010 2011 2012 2013 2014 2015 2016 Q1 2017 Net debt improved by 23.4 €m to 1,094.8 €m (December 31, 2016: 1,118.2 €m) * Before acquisitions and potential takeover. STADA Corporate Presentation •
Slide 15: Group Guidance 2017 Confirmed
GROUP GUIDANCE 2017 CONFIRMED Target Sales adj.1 € 2,280 - 2,350m Well on track to meet EBITDA adj.2 € 430 - 450m Full-Year Guidance Net income adj.2 € 195 - 205m 1) Adjusted for currency and portfolio effects. 2) Adjusted for special items. STADA Corporate Presentation • May 11, 2017 Page 15
Slide 16: Appendix
APPENDIX STADA Corporate Presentation • May 11, 2017 Page 16
Slide 17: Financing Structure
FINANCING STRUCTURE Remaining terms of financial liabilities as of March 31, 2017 in €m CORPORATE BOND PROMISSORY NOTE LOANS 350.0 CREDIT 300.0 295.0 288.5 77.6 20.0 39.9 61.5 2017 2018 2019 2020 2021 > 2021 * Nominal values • Net debt/adj.1 EBITDA: 2.5 (1-3/2016: 3.3)2) • Cash and cash equivalents:
Slide 18: Reconciliation Q1/2017
RECONCILIATION Q1/2017 Impairments Effects from purchase Q1/2017 / write-ups Q1/2017 in € million1 price allocations and reported on fixed adjusted product acquisitions2 assets EBITDA 108.6 - -0.1 108.5 Balance from depreciation/amortization and impairments/write-ups on intangible assets (including
Slide 19: Financial Calendar / Contact
FINANCIAL CALENDAR / CONTACT Financial Calender 2017 August 3, 2017 Publication of the first six months of 2017 results August 30, 2017 Annual General Meeting 2017 November 9, 2017 Publication of the first nine months of 2017 results Please note that these dates could be subject to change. Contact V
Slide 20: Disclaimer and Notes
DISCLAIMER AND NOTES This STADA Arzneimittel AG (hereinafter "STADA") presentation is intended for information only. It is not intended as or provided in connection with an offer or solicitation for the purchase or sale of any security in any jurisdiction. STADA shall not have any liability arising