Fresenius Se & Co. Kgaa · XETR:FRE
Fresenius Se & Co. Kgaa — Merger or Acquisition (July 2008)
19 slides from Fresenius Se & Co. Kgaa's merger presentation, Jul 7, 2008
Slide 1: Fresenius Kabi – Creating a Global Leader in I.V. Generic Drugs
Fresenius Kabi – Creating a Global Leader in I.V. Generic Drugs Conference Call, July 7, 2008
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND MAY NOT BE FURTHER DISTRIBUTED OR PASSED ON TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. This presentation does not constitute or form part of, and should not be construed as, any offer or invitation to subs
Slide 3: Acquisition Highlights
Acquisition Highlights - APP Pharmaceuticals – a leading U.S. I.V. generic drugs company - Dedicated to the highest quality and medical excellence - Successful, well-established company enhancing Fresenius Kabi‘s profitability - Platform for further growth in the U.S. for Fresenius Kabi‘s existing p
Slide 4: APP Pharmaceuticals at a Glance
APP Pharmaceuticals at a Glance Business Overview Strong Growth Potential US$ m - Excellent market reputation with 750 well-recognized I.V. generic drugs Sales guidance 2008: 647 730–750 US$ m - Production plants in the U.S. and Puerto Rico - Headquartered in Schaumburg / Illinois - Key financials 2
Slide 5: Compelling Strategic Rationale
Compelling Strategic Rationale Prime asset with - No. 2 in the U.S.* a leading market position - Superior sales and margin profile - Market entry into the U.S. with critical scale and strong management team - Combination of Fresenius Kabi and APP creates a global leader in I.V. generic drugs Perfect
Slide 6: Fresenius Kabi's Product Segments – Growth Through Revenue Synergies
Fresenius Kabi‘s Product Segments – Growth Through Revenue Synergies Pharmaceutical products and corresponding medical devices Infusion Therapy Clinical Nutrition Infusion Solutions / I.V. Generics Parenteral / Enteral Nutrition Colloids Parenteral Crystalloids Enteral Electrolytes & Others I.V. Gen
Slide 7: APP Provides an Excellent Strategic Fit to Fresenius Kabi's I.V. Drug Business
APP Provides an Excellent Strategic Fit to Fresenius Kabi‘s I.V. Drug Business APIs Finished Com- Adminis- Raw Products pounding* tration Materials Dabur** Oncology APP Medical Dabur** 17 Com- Devices, Fresenius pounding Filaxis Dis- Kabi centers posables world- wide Labesfal Other I.V. Ribbon Drugs
Slide 8: APP – Comprehensive Product Portfolio With Leading Positions
APP – Comprehensive Product Portfolio With Leading Positions Marketed Products: > 100 Dosage Forms: > 400 Research & Development: 67 products in various stages of development, of which 25 are pending approval by the FDA Anti-Infective Anesthetics/ Intensive Care Oncology Agents Analgesics Sa
Slide 9: Attractive Potential of the I.V. Generics Market in the U.S.
Attractive Potential of the I.V. Generics Market in the U.S. Sales - Pharmaceuticals Market 2007: Sales - I.V. Drugs 2007: 261 US$ bn 61 US$ bn Intravenously administered Generic drugs drugs 23 % 6% Orally administered drugs Patented drugs 77 % 94 % The U.S. I.V. generics market has an estimated vol
Slide 10: I.V. Generics Market in the U.S.: Competitive Structure
I.V. Generics Market in the U.S.: Competitive Structure Market Volume: 3.6 US$ bn Others (98 firms) APP 25 % 17 % Sandoz Hospira/Mayne 3% 23 % Teva/Sicor 6% Bedford Baxter 11 % 15 % APP No. 2 manufacturer in the U.S. I.V. generics market Source: IMS, internal research Conference Call – Acquisition o
Slide 11: Growth in New Product Development: Expected Patent Expirations 2008 - 2015
Growth in New Product Development: Expected Patent Expirations 2008 - 2015 US$ bn for branded products 18.0 An Expanding Market (cumulative) Fully Adressable 14.3 by APP / Fresenius Kabi 12.6 8.8 5.6 3.8 3.0 1.6 2008e 2009e 2010e 2011e 2012e 2013e 2014e 2015e # of Products 12 26 38 47 55 67 79 99 It
Slide 12: Growth in New Product Development: ANDAs of APP Pending at FDA
Growth in New Product Development: ANDAs of APP Pending at FDA End of the Year 31 Approval Success Rate: 30 92 % since 1998 95 % since 2005 23 20 14 14 10 3 2000 2001 2002 2003 2004 2005 2006 2007 # of ANDA Submissions 10 10 10 13 14 11 13 # of ANDA Approvals 9 13 4 13 6 10 11 Conference Call – Acqu
Slide 13: APP: Strong Sales and Earnings Contribution
APP: Strong Sales and Earnings Contribution €m + 20 % sales 3.000 2.500 + 72 % EBITDA 2,447 2,030 + 300 bps operating margin 2.000 improvement 1.500 1.000 565 500 408 0 Fresenius Kabi 2007 Fresenius Kabi & APP combined 2007* * Adjusted EBITDA reported by APP US$ 253 m, less US$ 9.1 m stock compensat
Slide 14: Key Transaction Terms
Key Transaction Terms Cash Purchase - US$ 23.00 per share in cash Price - Equity valued at 3.7 US$ bn - Up to US$ 6.00 per share in cash Contingent - Payable in 2011 subject to APP exceeding a cumulative Valuation Right financial EBITDA target for calendar years 2008, 2009 and (CVR) 2010 - Signed vo
Slide 15: Financial Impact
Financial Impact - Fully committed by leading banks - Mix of debt and equity instruments – major part Financing will be debt financed - Financing details will be published in the coming weeks - Debt/equity financing mix targeted to minimize the impact on Fresenius SE’s credit ratings Leverage - Net
Slide 16: Acquisition of APP – Driving Future Growth
Acquisition of APP – Driving Future Growth Key strategic opportunity Entry in the U.S. I.V. generics market Experienced and successful management team Growth opportunities for Fresenius Kabi‘s product portfolio Conference Call – Acquisition of APP Pharmaceuticals - Fresenius SE, Investor Relations ©
Slide 17: Attachments
Attachments Untertitel der Kapiteltrennseite Maximal zweizeilig, 18 pt Conference Call – Acquisition of APP Pharmaceuticals - Fresenius SE, Investor Relations © Copyright, July 7, 2008 Page 17
Slide 18: APP – Overview of Key Products
APP – Overview of Key Products Anti-Infective Agents Intensive Care Oncology - Ampicillin - Calcium Gluconate - Carboplatin - Fluorouracil - Ampicillin / Sulbactam - Choriogonadotropin - Mesna - Azithromycin - Dexamethason - Mitoxantron - Bacitracin - Heparin - Pamidronate - Cefoxitin - Hydralazin -
Slide 19: Financial Calendar
Financial Calendar 30.7.2008 Report on 1st half 2008 4.11.2008 Report on 1st-3rd quarters 2008 Contact Birgit Grund SVP Investor Relations Fresenius SE Telephone: +49 6172 608-2485 e-mail: Birgit.Grund@fresenius.com For further information and current news: http://www.fresenius.com Conference Call –
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