Coloplast A/s Class B · OMXCOP:COLO_B
Coloplast A/s Class B — H1 2020/21 Earnings Presentation
81 slides from Coloplast A/s Class B's earnings presentation, 2021
Slide 1: Roadshow presentation H1 2020/21
Roadshow presentation H1 2020/21 Cartago factory, Costa Rica Making life easier STRIVE25: SUSTAINABLE GROWTH LEADERSHIP Coloplast Group - Ostomy Care / Continence Care / Wound & Skin Care / Interventional Urology
Slide 2: Forward-looking statements
Forward-looking statements The forward-looking statements contained in this presentation, including forecasts of sales and earnings performance, are not guarantees of future results and are subject to risks, uncertainties and assumptions that are difficult to predict. The forward-looking statements
Slide 3: Q2 organic growth of 2% and underlying EBIT margin of 33%
Q2 organic growth of 2% and underlying EBIT margin of 33%1) – underlying EBIT margin guidance raised to 32-33% from 31-32% REVENUE GROWTH Q2 Highlights Reported revenue (mDKK) 0% • Organic growth of 2% and -1% reported growth in DKK Organic growth • Chronic Care growth was negatively impacted by DKK
Slide 4: Q2 growth driven by Ostomy Care in Emerging markets
Q2 growth driven by Ostomy Care in Emerging markets, offset by stock building in comparison period and COVID-19 impact in Europe Q2 20/21 revenue by business area Q2 20/21 revenue by geography Business Reported revenue Q2 Organic growth Organic growth Geographic Reported revenue Q2 Organic growth Or
Slide 5: Ostomy Care grew 4% in Q2 driven by Emerging markets
Ostomy Care grew 4% in Q2 driven by Emerging markets; negative impact from stock building in Europe in Q2 last year and COVID-19 Ostomy Care performance Comments Quarterly performance: 10 • Q2 organic growth of 4% and 1% reported growth • Growth was driven by solid performance across Emerging market
Slide 6: Continence Care was flat at 0% in Q2
Continence Care was flat at 0% in Q2, adversely impacted by stock building last year and lower growth in new patients in Europe and US Continence Care performance Comments Quarterly performance: 12 • Q2 organic growth of 0% and -3% reported growth • Growth was impacted by stock building in compariso
Slide 7: Interventional Urology grew 3% organically in Q2
Interventional Urology grew 3% organically in Q2 as elective procedures within Men’s Health in the US continue to recover Interventional Urology performance Comments Quarterly performance: • Q2 organic growth of 3% and -2% reported growth • Interventional Urology growth was driven by the US, where e
Slide 8: Wound & Skin Care grew 1% organically in Q2
Wound & Skin Care grew 1% organically in Q2, Wound Care alone grew 9% driven by Europe, China and Biatain Fiber launch Wound & Skin Care performance Comments Quarterly performance: • Q2 organic growth of 1% and -3% reported growth. Wound Care in isolation 9 grew 9% organically in Q2 driven by Europe
Slide 9: Q2 2020/21 reported revenue decreased by 1.5%
Q2 2020/21 reported revenue decreased by 1.5% due to depreciation in USD and Emerging market currencies Revenue development (DKKm) Comments • Q2 2020/21 reported revenue decreased by DKK 70m, or -1% compared to Q2 2019/20 102 4 -175 • Q2 organic growth of 2% or DKK 102m 4,823 • Main drivers of Q2 pe
Slide 10: EBIT margin of 33% in Q2
EBIT margin of 33% in Q2 driven by lower travel & marketing spend due to COVID-19 somewhat offset by commercial investments EBIT margin development (%) Comments • Q2 gross margin was 68%, on par with Q2 last year 33.6 • Positive impact from Global Operations Plan 4 and 5, offset by 0.4 0.0 0.0 33.2
Slide 11: FCF driven by solid underlying development in earnings
FCF driven by solid underlying development in earnings FCF development Comments • Free cash flow in H1 2020/21 was DKK 446m compared to DKK 1,181m in H1 2019/20 98 99 98 93 • Adjusting for acquisitions, mainly Nine Continents Medical, the free 90 90 cash flow in H1 was DKK 1,455m, up 23% vs. compari
Slide 12: Breakthrough achieved on waste recycling
Breakthrough achieved on waste recycling resulting in 58% of production waste recycled vs. 50% 2025 target Key highlights of our Sustainability strategy and performance in H1 2020/211) Improving products and packaging Reducing emissions Responsible operations Breakthrough in Hungary on Commitment to
Slide 13: Organic growth guidance unchanged, EBIT margin guidance raised
Organic growth guidance for FY 2020/21 unchanged at 7-8%, EBIT margin guidance raised to 32-33% before special items GUIDANCE 2020/21 GUIDANCE 2020/21 (DKK)* KEY ASSUMPTIONS • Double-digit growth in the second half of 2020/21 SALES 7-8% • Resumption of elective procedures and hospital activity acros
Slide 14: Introduction to Coloplast
Making it easier Stina to be yourself LEADING INTIMATE HEALTHCARE Introduction to Coloplast
Slide 15: Coloplast has four business areas with global sales presence
Coloplast has four business areas all with global sales presence Group revenue 2019/20 by segment Group revenue 2019/20 by geography 1 Continence Care European 1 37% markets 58% Ostomy Care Other developed 40% markets DKK DKK 25% 18.5bn 18.5bn 4 5 Interventional Emerging Urology Wound & Skin Care 10
Slide 16: Coloplast specializes in intimate healthcare needs
Coloplast specializes in intimate healthcare needs WHO ARE OUR TYPICAL USERS HOW DO WE HELP THEM? People who have had their intestine redirected to an SenSura® Mio Ostomy Care opening in the abdominal wall Ostomy bag People in need of bladder or bowel management SpeediCath® Continence Flexible male
Slide 17: The Chronic Care model secures a predictable revenue stream
The Chronic Care model secures a predictable revenue stream and stable revenue growth The chronic care user flow Chronic Care condition New user Installed base of users Stable flow of loyal users Solid reimbursement Coloplast group revenues Revenue (DKKbn) Organic growth (%) 10 10 9 8 8 8 8 7 7 7 7
Slide 18: Intimate healthcare is characterized by stable industry trends
Intimate healthcare is characterized by stable industry trends 01. 01. Demographics Surgical and medical trends Growing elderly population Earlier detection and cure, increases customer base for eventually reduces addressable Coloplast products market for Coloplast treatment Limiters Drivers product
Slide 19: Strong market positions in Europe and commercial potential outside
Coloplast has strong market positions in Europe and great commercial potential outside Europe Europe Developed Ostomy Continence Urology Wound Care Emerging Addressable market 18 - 19bn 14 - 15bn 11 - 12bn 22 - 24bn Size in DKK 4 - 5% 5 - 6% 3 - 5% 2 - 4% Growth in %* Coloplast 40 - 50% 45 - 55% 20
Slide 20: We are building the consumer healthcare company of the future
We are building the consumer healthcare company of the future MACRO TRENDS IMPACT COMMERCIAL MODEL Ageing population Superior, clinically differentiated products Healthcare consumerism Digital transformation Consumer preference Data and Clinical digital tools preference Price pressure Payer preferen
Slide 21: Our new strategy will drive long-term value creation
Our new strategy will drive continued long-term value creation through revenue and earnings growth Chronic Care Interventional Wound & Urology Skin Care 7-9% more than30% organic growth p.a. EBIT margin1 Talent, Innovation Leadership & Culture Unparalleled Sustainability efficiency 1) Constant curre
Slide 22: Supporting sustainable development
Supporting sustainable development with a strong emphasis on improving our environmental performance Our mission Making life easier for people with intimate healthcare needs Stina Our 2025 priority Our 2025 priority Improving Reducing products and emissions packaging 80% packaging made from renewabl
Slide 23: Yearly incremental investments of up to 2% of revenue
We will continue to support organic growth by yearly incremental investments of up to 2% of revenue Key Investment Decision Drivers Key Investment Areas Economics & We expect to invest up to 2% Innovation of revenue in incremental OPEX investments Government Market Chronic Care Attractiveness USA Le
Slide 24: We will actively pursue M&A opportunities
We will actively pursue M&A opportunities as a lever for long-term growth Opportunity Systematic screening based Portfolio Channel Early stage Large plays expansion & expansion technologies adjacencies Page 24
Slide 25: Key enablers to support the commercial model in Chronic Care
We have built key enablers to support the commercial model in our Chronic Care businesses COMMERCIAL MODEL KEY ENABLERS Direct Businesses Superior, clinically differentiated products Coloplast Consumer Care Consumer Clinical preference Data and digital tools preference Direct to Consumer Payer prefe
Slide 26: Direct business in Chronic Care drives improved outcomes
Direct business in Chronic Care serving consumers drives improved outcomes and is a vital component of our growth Direct presence in top 5 markets and strategic rationale Coloplast Care presence Control and continuity of 1 product supply ~30% MS ~15% MS ~5% MS +30 countries 2 Target the full value p
Slide 27: Clinical Performance Program to tackle the biggest user issues
We have initiated a very ambitious Clinical Performance Program to tackle the biggest issues users face WHAT REALLY MATTERS TO PEOPLE USING CATHETERS? of users describe UTIs are their 45 %* 93 % worry about leakage2 greatest challenge in life1 * People answering ‘not being able to walk: 22%’, ‘not b
Slide 28: Significant progress across the Clinical Performance Program
We have made significant progress across the Clinical Performance Program Progress as of today Strive25 strategy period ends in 2025 Additional pilot study to further test the Product launch Digital ostomy technology in broader setup expected in first solution Pilot studies conducted with successful
Slide 29: Profitability supported by scalability and efficiency gains
Profitability supported by scalability and efficiency gains enabling additional investments within distribution and R&D Gross Profit development, % Cost item Development, in % of revenue +0.6%-points 28.1 28.7 29.0 28.7 27.8 28-30 Distribution - 0.1%-points 68.1 67.3 67.7 68.0 68.0 +0.1%-points 4.0
Slide 30: Automation, procurement and scale in Global Operations
Automation, procurement and scale are key to bringing Global Operations to the next level 1. Automation to mitigate growth in blue-collar FTE 10% ~800 >1,000 DKK ~450m # of FTE release ~500 CAPEX investment over ~200 through automation four years (19/20 – 22/23) Salary1 (Direct labour) 19/20 20/21 2
Slide 31: Global Business Support and IT landscape
A global Business Support and IT landscape enables Coloplast to scale faster and more efficiently Global Business Services Global business services handle the majority of all global support % of group processes 100% ~90% 100% IT infrastructure Finance / accounting Master Data Global Business & suppo
Slide 32: EBIT margin development drivers
EBIT margin development continues to be a function of growth, scalability, cost discipline and investment activity EBIT margin (%) Future drivers of EBIT margin ILLUSTRATIVE EBIT will be positively impacted by: Leverage effect on fixed costs e.g. distribution, admin and >30% R&D costs especially dri
Slide 33: Continued strong development in free cash flow
Continued strong development in free cash flow during the Strive25 strategy period Taxation Net working capital CAPEX(2) Reported tax rate Depreciation in % of revenue CAPEX DKKm Net working capital in % revenue CAPEX in % of revenue 5% 6% 5% 4% 4% 4% 5% 4% 4% 4% 4% 25% 4% 23% 23% 23% 23% 24% ~23% 2
Slide 34: Attractive cash returns despite large investments
We will continue to provide attractive cash returns despite large investments in commercial and expansion activities Coloplast cash distribution to investors Comments Dividends paid out in the year (mDKK) (1) Share buy-back (DKKm) Pay-out ratio (%) (2) • Coloplast returns excess liquidity to shareho
Slide 35: Coloplast can continue to deliver stable shareholder returns
In sum, we believe Coloplast can continue to deliver stable shareholder returns through ... Organic growth and EBIT margin development Comments 33% • Stable market trends in our Chronic Care business 10% 4% • Strong Coloplast Care retention program 9% and innovative DtC activities 06/07 08/09 10/11
Slide 36: Appendices
Tabitha Leading intimate healthcare LEADING INTIMATE HEALTHCARE Appendices
Slide 37: The Coloplast share (COLO-B.CO)
The Coloplast share (COLO-B.CO) Coloplast share listed on Nasdaq Copenhagen since 1983 Share Capital Ownership ~204 billion DKK (~33 billion USD) market cap @ ~1,020 DKK 10% per share (incl. A shares) 6% 2% Two share classes: 45% • 18m A shares carry 10 votes (family) • 198m B shares carry 1 vote (f
Slide 38: Capital structure
Capital structure Comments Net interest bearing debt • Overall policy is that excess liquidity is 1.0x returned to shareholders through a combination of dividends and share buy- 3,450 backs 0.1x 0.1x 0.1x 0.2x • Interest bearing debt will be raised in connection with a major acquisition or other spe
Slide 39: H1 revenue by business area and geography
H1 driven by solid OC growth in Emerging markets, offset by stocking building and COVID-19 impact in Europe H1 20/21 revenue by business area H1 20/21 revenue by geography Reported revenue H1 Organic growth Organic growth Geographic Reported revenue H1 Organic growth Organic growth Business DKKm H1
Slide 40: H1 2020/21 reported revenue declined by 0.5%
H1 2020/21 reported revenue declined by 0.5%, due to depreciation in USD, GBP and Emerging market currencies H1 Revenue development (DKKm) Comments • H1 2020/21 reported revenue decreased by DKK 44m compared to H1 2019/20 342 4 -389 • H1 organic growth was 4% or DKK 342m • Main drivers of H1 perform
Slide 41: H1 reported EBIT margin of 33%
H1 reported EBIT margin of 33% driven by lower commercial spending due to COVID-19 H1 EBIT margin development (%) Comments • H1 gross margin was 68%, on par with last year 33.5 • Positive impact on the gross margin from Global Operations 1.3 0.1 Plan 4 and 5, partly offset by wage inflation and labo
Slide 42: Key Value Ratios
Key Value Ratios Profitability drivers Free Cash Flow drivers 32.7 36.3 36.2 36.9 31.9 32.3 34.7 34.6 32.0 32.0 28.7 29.0 28.1 28.7 27.8 25.2 25.4 23.4 23.6 23.4 4.0 4.0 4.2 4.1 4.4 5.0 5.4 3.8 4.1 3.5 3.7 3.9 3.9 3.8 3.8 16/17 17/18 18/19 19/20 YTD 20/21 16/17 17/18 18/19 19/20 YTD 20/21 Admin-to-S
Slide 43: Revenue development by business area
Coloplast revenue development by business area Ostomy Care Interventional Urology 7 8 6 5 13 9 5 10 10 6 7 1 6 6 10 10 7,166 7,538 6,643 4 6,291 8 9 -1 7 5 6 3,868 -7 1,641 1,740 1,970 1,835 1,031 16/17 17/18 18/19 19/20 YTD 20/21 16/17 17/18 18/19 19/20 YTD 20/21 Continence Care Wound & Skin Care 7
Slide 44: Revenue development by geography and total
Coloplast revenue development by geography and total Europe Other Developed Markets 5 6 6 2 0 2 5 6 2 15 16 -2 11 10,573 10,820 9,394 9,941 8 11 6 4 5 6 -1 5,505 3,791 4,380 4,644 3,642 2,317 16/17 17/18 18/19 19/20 YTD 20/21 16/17(1) 17/18 18/19 19/20 YTD 20/21 Emerging Markets Coloplast group 7 8
Slide 45: Segment operating profit
Segment operating profit (Excludes shared/non-allocated costs) Chronic Care Interventional Urology Wound & Skin Care Ostomy and Continence Care 59 59 57 60 60 35 25 41 46 43 41 42 42 40 40 2,168 2,193 2,200 244 2,092 2,011 214 199 248 239 252 179 230 238 79 Q2 19/20 Q3 19/20 Q4 19/20 Q1 20/21 Q2 20/
Slide 46: Exchange rate exposure and hedging policy
Exchange rate exposure FY 2020/21 and hedging policy Revenue FX exposure 2020/21(1) 12 months exposure from 10% initial exchange rate drop(1) Other 17% -410 USD -170 EUR 36% -280 CNY, JPY, AUD, BRL & ARS 13% GBP -190 HUF 0 100 14% GBP 20% Revenue (DKKm) EBIT (DKKm) USD Foreign exchange rate guidance
Slide 47: US Mesh litigation – Overview of financial impact
US Mesh litigation – Overview of financial impact P&L Balance Cash flow Assets Actual/Expected cash flow, DKKbn 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 Restricted cash, DKKbn 0.5 0.5 EBIT (before special items) 4,147 4,535 4,846 5,024 5,091 5,556 5,854 3,113 Special items -1,000 -3,000 - 750
Slide 48: Stable global health reforms environment
Stable global health reforms environment Europe Rest of World • Netherlands: Reimbursement pressure on OC and CC • U.S.: Reimbursement pressure on OC and CC (Managed Care) • France: Reimbursement pressure on WC Reimbursement pressure Page 48
Slide 49: CARE helps increase retention and product compliance
CARE helps us increase retention and improve product compliance We co-develop CARE content with CARE is a personal and “high- Global program with shared local clinicians touch” program infrastructure Advisors available on phone Clinically validated content and call protocol - ERP Website with reliab
Slide 50: DtC marketing program reaches into the community
With our DtC marketing program we reach into the community We operate in numerous channels to expose our service …and with the reach we get several benefits and product offering… Expose innovative products Ensure product accessibility Ensure successful experience Page 50
Slide 51: Generic model for distribution and reimbursement
The generic model for distribution and reimbursement of our products Prescription & Insurance Product Reimbursement price Prescription & Insurance $ Product Page 51
Slide 52: Interventional Urology's revenue is balanced
Interventional Urology’s revenue is balanced geographically and across the four business areas Interventional Urology at a Glance ~15% market share in global market of DKK 12-13bn market FY 18/19 growing 3-5% annually 11% Coloplast position, FY 18/19 Endourology Men’s Health Women’s Health Bladder H
Slide 53: Interventional Urology business areas and select products
Coloplast Interventional Urology is split into four business areas MEN’S WOMEN’S SPECIALTY ENDOUROLOGY HEALTH HEALTH INTERVENTIONS • Erectile Dysfunction • Stress Urinary Incontinence • Stone Management • Bladder Drainage • Male Incontinence (SUI) • Transurethral • Benign prostatic hyperplasia • Tes
Slide 54: Strong presence in categories, room to capture share
We have a strong presence in our categories but there is room to capture market share Coloplast Share Competitive Share Men’s Health Women’s Health Endourology1 Bladder Health & Surgery1 <5% 30-35% <5% 35-45% 35-45% 10-15% 15-20% Inflatable Penile Male Stress urinary Pelvic organ Prosthesis (IPP) in
Slide 55: Coloplast acquires Nine Continents Medical
Coloplast acquires Nine Continents Medical Inc, an early stage company in the large over-active bladder segment Over-active bladder market Company and product description • Over-active bladder (OAB) is a condition that causes a frequent and • Nine Continents Medical Inc is an early stage company pio
Slide 56: Global Advanced Wound Care market remains large and growing
The global Advanced Wound Care market remains large and growing despite a challenging 19/20 The Advanced Wound Care market remains a significant Silicone Foams and Gelling Fibers are the two biggest value pool and is expected to grow despite the pandemic categories and grow faster than the market Ma
Slide 57: The Wound & Skin Care 2025 strategic plan
The Wound & Skin Care 2025 strategic plan Scale our China business Build on positive momentum in EU by strengthening our commercial in silicone and 3DFit Technology and foundation and accelerate in silicone increase share of voice in selected with 3DFit Technology markets Scale our US business in Ac
Slide 58: In US Ostomy Care, innovation is the biggest growth driver
In US Ostomy Care, innovation is the biggest growth driver and we continue to win across patient pathway We have gained significant share over the last Innovation is a key driver, and we will continue to expand our offering years of high-quality products Bags & Plates acute share SenSura® Mio portfo
Slide 59: Awarded access to Vizient and Premier GPOs
Coloplast has been awarded access to Vizient and Premier GPOs, ensuring a level playing field in ~75% of acute accounts Coloplast has been awarded access to Vizient and Premier, the two largest GPOs in the US Acute Estimated Contract start Contract Contract members1 Acute share2 date length type 3,6
Slide 60: Sustainability - key priorities and actions
Sustainability - key priorities and actions Improving products and packaging Reducing emissions Responsible operations Why is this a key priority: Why is this a key priority: Why is this a key priority: As a manufacturer of medical products As a growing company, we are challenged Our people and cult
Slide 61: H1 2020/21 progress on key sustainability ambitions
H1 2020/21 progress on key sustainability ambitions1) Improving products and packaging Reducing emissions Responsible operations 2025 H1 FY 2025 H1 FY 2025 H1 FY Ambition 20/21 19/20 Ambition 20/21 19/20 Ambition 20/21 19/20 80% 6% 6% 100% 98% 98% Renewable 70% 70% White-collars Scope 1+2 material i
Slide 62: Our 2025 priority: Reducing emissions
Our 2025 priority: Reducing emissions We are committed to reducing emissions while being a growth company 2025 target – Scope 1+2 Other 0 Emissions from production Energy 7% 100% Renewable energy (PPAs and phase out 6% natural gas use) 13% 2025 target – Scope 3 Our Transport of goods 5% Limit on goo
Slide 63: Introducing Ostomy Care
Introducing Ostomy Care Disease areas Key products Distribution of • Colorectal cancer (est. 45%) revenues* • Bladder cancer (est. 10%) • Diverticulitis (est. 15%) Urostomy • Inflammatory bowel disease (est. 10%) Ileostomy • Other (est. 20%) Colostomy Customer groups • Nurses, mainly stoma care nurs
Slide 64: Introducing Ostomy Care Supporting Products
Introducing Ostomy Care Supporting Products Market fundamentals Key products Brava® is a range of ostomy supporting products • Market size of DKK ~3bn designed to reduce leakage or care for skin, to make • Market growth of 6-8% • Market share 35-40% Brava® Protective Seal our end-users feel secure.
Slide 65: Introducing Continence Care
Introducing Continence Care Disease areas Key products Distribution of • Spinal Cord Injured, SCI revenues • Spina Bifida, SB • Multiple Sclerosis, MS Intermittent catheters • Benign prostatic hyperplasia, BPH & prostatectomy patients Urine bags • Elderly Male ext. catheters Bowel management CC Othe
Slide 66: Introducing Bowel Management
Introducing Bowel Management Disease areas Market dynamics Faecal incontinence + Growing awareness (management products only) + Huge underpenetrated and Customer groups unserved population • Spinal Cord Injured, SCI + New devices addressing the many • Spina Bifida, SB unmet needs • Multiple Sclerosi
Slide 67: Introducing Interventional Urology
Introducing Interventional Urology Surgical treatment of urological disorders Disease areas Key products Distribution of revenues • Urinary incontinence • Pelvic organ prolapse Men’s health • Erectile dysfunction Women’s health • Enlarged prostate • Kidney and urinary stones Single use devices Custo
Slide 68: Introducing Wound Care
Introducing Wound Care Disease areas Key products Distribution of revenues Chronic wounds (WSC) • Leg ulcers Biatain® range • Diabetic foot ulcers Comfeel® range • Pressure ulcers Skin Care Wound Care other Customer groups Contract manufacturing & call points Hospitals Biatain® Silicone, incl. Sizes
Slide 69: Introducing Skin Care
Introducing Skin Care Disease areas Key products Product mix • Moisture associated skin damage Protectants & Antifungals • Incontinence Cleansing/Bathing • Skin folds & obesity Moisturizers • Prevention of skin impairments Textile SC Other Customer groups & call points Sween® EasiCleanse Bath® Hospi
Slide 70: Product market for US Skin Care
Product market for US Skin Care Market drivers/limiters US Skin Care at a glance + Aging and obese population • US market size estimated at DKK + CMS Value Based Purchasing 4-5bn with 2-4% growth + Increased focus on prevention + Increased importance of utilization • Market share: 10-15% management
Slide 71: The Coloplast organisation
The Coloplast organisation Coloplast Group Chronic Care Strategic Business Units Chronic Care Strategic Business Units Ostomy Care Continence Care Wound & Skin Care Interventional Urology R&D Marketing Sales R&D Marketing Marketing Operations Sales Regions Global Operations Global Business Support F
Slide 72: Coloplast Executive Leadership Team
Coloplast Executive Leadership Team Kristian Villumsen President, CEO • Born 1970 • With Coloplast since 2008 Nicolai Buhl Andersen Anders Lonning-Skovgaard Paul Marcun Camilla G. Møhl Allan Rasmussen EVP, Innovation EVP, CFO EVP, Growth SVP, People & Culture EVP, Operations • Born 1969 • Born 1972
Slide 73: Income statement
Income statement DKKm Q2 2019/20 Q2 2020/21 Change H1 2019/20 H1 2020/21 Change Revenue 4,823 4,753 -1% 9,535 9,491 0% Gros s profit 3,270 3,251 -1% 6,482 6,457 0% S G&A costs -1,551 -1,500 -3% -3,137 -2,995 -5% R &D costs -182 -177 -3% -351 -363 3% Other operating income/expenses 5 3 -40% 20 14 -30
Slide 74: Balance sheet
Balance sheet DKKm 31 Mar 2020 31 Mar 2021 Change Balance, total 13,528 15,249 13% As s ets Non-current as s ets 6,819 8,542 25% Current as s ets 6,709 6,707 0% of which: Inventories 1,915 2,289 20% Trade receivables 3,269 3,108 -5% Amounts held in escrow 13 - nm Marketable securities, cash, and cas
Slide 75: Cash flow
Cash flow DKKm H1 2019/20 H1 2020/21 Change EBIT 3,014 2,913 -3% Depreciation and amortisation 422 392 -7% Change in working capital -499 -465 -7% Net interest payments -128 -3 -98% Paid tax -1,100 -998 -9% Other -68 120 -276% Cash flow from operations 1,641 1,959 19% 1) Investment in intangibles -4
Slide 76: Manufacturing setup
Manufacturing setup Production by country (Volume)¹ 4% Hungary 11% 0% 2% Mørdrup Tatabánya China Minneapolis Sarlat Nyirbátor US/France Mankato Denmark Zhuhai Costa Rica Costa Rica 83% COGS by cost type² 10% 18% Salary - Direct 12% Salary - Indirect 8% Materials (RM &SFG) Innovation & Specialised Pr
Slide 77: Production sites
Production sites Hungary China Tatabánya Zhuhai • Ostomy care products • Continence care products • Adhesives • Ostomy care products • Continence care products • Machine building • Interventional Urology products • Number of employees in production: ~1,000 • Number of employees in production: ~1,850
Slide 78: Production sites
Production sites Denmark US Mørdrup Minneapolis • Pilot development work Ostomy care, • Interventional Urology products Continence care and Wound care • Number of employees in production: ~100 • Adhesives production • Number of employees in production: ~150 France Sarlat Mankato • Disposable surgica
Slide 79: Coloplast Sponsored Level 1 ADR programme
Coloplast Sponsored Level 1 ADR programme Coloplast Sponsored ADR Programme Benefits of a Coloplast ADR programme to US Investors: • Coloplast has established a sponsored ADR programme in the US, as a Symbol CLPBY service to US investors by offering an alternative way to trade Coloplast shares, whil
Slide 80: Contact Investor Relations
Contact Investor Relations Holtedam 1 DK-3050 Humlebæk Denmark Ellen Bjurgert Hannah Katrine Larsen Aleksandra Dimovska Otto Munk Madsen Vice President, Investor Relations Investor Relations Coordinator & PA Senior Manager, Investor Relations Student Assistant, Investor Relations Tel. direct: +45 49
Slide 81: Our mission, values and vision
Our mission Making life easier for peoplé with intimate healthcare needs Our values Closeness... to better understand. - Passion... to make a difference Respect and responsibility... to 0 guide | US: Our vision Setting the global standard for listening and responding: Coloplast Group - Ostomy Care /