Coloplast A/S Class B · OMXCOP:COLO_B
Coloplast A/S Class B — Investor Day (September 2020)
14 slides from Coloplast A/S Class B's investor day presentation, Sep 29, 2020
Slide 1: Financial outlook: Value creation through profitable growth
Financial outlook Value creation through profitable growth Stina Coloplast Capital Markets Day 2020 September 29th 2020 Anders Lonning-Skovgaard, EVP & CFO Making life easier
Slide 2: 2019/20 impacted by COVID-19 – Momentum is improving, but growth in 2020/21 will be back-end loaded
2019/20 impacted by COVID-19 – Momentum is improving, but growth in 2020/21 will be back-end loaded 2019/20 was impacted due to COVID-19 … with many moving parts impacting 2020/21 9% 8% • Interventional Urology positively impacted by comparison period in 2019/20 Group revenue • Uncertainty around gr
Slide 3: The outset for the Strive25 strategy period is strong as we continue to lead our peer group
The outset for the Strive25 strategy period is strong as we continue to lead our peer group We have maintained solid growth but significantly improved profitability Continue to be leader in value creation In percent Sales CAGR 2008-2019 EBIT Margin 2008 EBIT Margin 2019 ROIC 2010 ROIC 2019 WEGO 19.1
Slide 4: Economic profit as a guiding metric for value creation at Coloplast
Economic profit as a guiding metric for value creation at Coloplast – revenue growth remains primary driver Coloplast value driver framework High level overview (LEAD20 period 15/16 – 19/20) Value creation Shareholder value Accumulated Economic profit DKK ~18bn created over the 5 year period (CAGR:~
Slide 5: Attractive stable underlying market drivers in favor of future growth and value creation
Attractive stable underlying market drivers in favor of future growth and value creation Market drivers Coloplast dynamics + Demographics + Access to healthcare (Emerging markets) Market share gains + Improved compliance and retention Volume ÷ Surgical/medical trends ÷ Healthcare reforms Up to -1% p
Slide 6: Investments have fueled broad-based growth in the LEAD20 period which is also the ambition for Strive25
Investments have fueled broad-based growth in the LEAD20 period which is also the ambition for the Strive25 period Growth contribution LEAD20 period Illustrative growth contribution Strive25 period Revenue growth contribution FY 15/16 to 19/20 (DKKm) Revenue growth contribution FY 20/21 to 24/25 (DK
Slide 7: Gross margin development for Strive25 period to be flat, positively impacted by Global Operations Plans
Gross margin development for Strive25 period to be flat, positively impacted by Global Operations Plans Gross margin (%) FY 19/20 to 24/25 ILLUSTRATIVE Gross profit will be positively impacted by: Gross profit will be negatively impacted by: ~68% + Leverage effect on fixed costs e.g. global ÷ Countr
Slide 8: Continued leverage effect within SG&A will fund further commercial investments
Continued leverage effect within SG&A will fund further commercial investments Cost item Development, in % of revenue Future drivers of cost ratios + Leverage effect in distribution costs in Europe driven by growth in existing 28.1 28.1 28.7 29.0 ~29 28-30 products as well as new product launches +
Slide 9: We will continue to support organic growth by 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 ✓ We expect to invest up to 2% Economics & of revenue in incremental OPEX investments Government Innovation Market Attractiveness ✓ Chronic Care US
Slide 10: EBIT margin development continues to be a function of growth, scalability, cost discipline and investment activity
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. >30% distribution, admin and R&D costs ~31% especia
Slide 11: Continued strong development in free cash flow during the Strive25 strategy period
Continued strong development in free cash flow during the Strive25 strategy period Taxation Net working capital CAPEX(2) Reported tax rate Net working capital in % revenue Depreciation in % of revenue CAPEX DKKm CAPEX in % of revenue ~5% 6% 4% 4% 4% 4% 3% 950 23% 23% 23% 23% ~23% 23% 23% 23% 23% 24%
Slide 12: We will continue to provide attractive cash returns despite large investments in commercial activities
We will continue to provide attractive cash returns despite large investments in commercial activities Coloplast cash distribution to investors Dividends paid out in the year (mDKK) (1) Share buy-back (DKKm) Pay-out ratio (%) (2) 100 100 88 86 84 82 77 We will continue to 80 80 return excess cash to
Slide 13: Our long-term guidance for the Strive25 strategy period
Our long-term guidance for the Strive25 strategy period is aimed at continued long-term value creation 7-9% more than30% organic growth p.a. EBIT margin1 1) Constant currencies, based on FX rate as of September 29, 2020 Page 13
Slide 14: Our mission
Our mission Making life easier for people with intimate healthcare needs Our values Closeness... to better understand Passion... to make a difference Respect and responsibility... to quide us Our vision Setting the global standard for listening and responding Coloplast Group - Ostomy Care / Continen