Galenica Ag · SIX:GALE
Galenica — FY2023 Earnings Presentation
35 slides from Galenica's earnings presentation, Mar 12, 2024
Slide 1: Media and Analyst conference
Media and Analyst conference Zurich, 12 March 2024
Slide 2: Your speakers
Your speakers 2023: Further milestones achieved – and the journey continues! Marc Werner, CEO Annual financial statements 2023 Felix Burkhard, CFO Q&A 12 March 2024, Media and Analyst Conference 2
Slide 3: Further milestones achieved – and the journey continues!
2023 Further milestones achieved – and the journey continues! Marc Werner, CEO Galenica Group
Slide 4: The Galenica Story
The Galenica Story Vision Health and wellbeing are at the heart of what we do. They are the reason we give our best every day. We build trust We show respect Values Together, we are stronger We act as entrepreneurs We participate with passion Customer We support people at every stage of life on thei
Slide 5: Galenica – The strongest Network in the Swiss healthcare market
Galenica – The strongest Network in the Swiss healthcare market
Slide 6: Omni-Channel – for the best customer experience
Omni-Channel – for the best customer experience 12 March 2024, Media and Analyst Conference 6
Slide 7: The first pilot: simple, agile, pragmatic.
The first pilot: simple, agile, pragmatic. 7
Slide 8: And today: «Consultation Plus» in a professional setting.
And today: «Consultation Plus» in a professional setting. 8
Slide 9: The offer is just as important as the sales channel.
The offer is just as important as the sales channel.
Slide 10: Not only in the pharmacy – also at home!
Not only in the pharmacy – also at home!
Slide 11: Thanks to our solutions, professionals have more time for patients.
Thanks to our solutions, professionals have more time for patients. 12 March 2024, Media and Analyst Conference 11
Slide 12: Health Supply: More efficiency and sustainability in logistics.
Health Supply: More efficiency and sustainability in logistics.
Slide 13: Galenica – The strongest network in the Swiss healthcare market
Galenica – The strongest network in the Swiss healthcare market
Slide 14: We have to be present where our customers are
We have to be present where our customers are 12 March 2024, Media and Analyst Conference 14
Slide 15: Customer focus…
Customer focus… …and of course, always looking to future trends, innovations and opportunities to further strengthen and develop our network. 15
Slide 16: Annual financial statements 2023
Annual financial statements 2023 Felix Burkhard, CFO Galenica Group
Slide 17: Galenica Group Pleasing sales growth
Galenica Group Pleasing sales growth Net sales (in million CHF) +4.4% 3,746 3,588 +5.5% +3.3% 1,754 1,834 1,851 1,895 H1 2022 H2 2022 2022 H1 2023 H2 2023 2023 Growth without +6.5% +3.6% +5.0% COVID-19 initiatives1 1 Impact of COVID-19 initiatives includes net sales of PCR tests, Rapid Antigen tests
Slide 18: Swiss pharmaceutical market Reduced growth in H2 2023
Swiss pharmaceutical market Reduced growth in H2 2023 in million CHF 690 670 650 630 610 590 570 550 530 510 490 470 450 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez 2021 2022 2023 Source: APO/SD/DRO/SPI Index, Swissmedic A, B, C, D Medicines Swissmedic lists A, B, D, sold from suppliers and whol
Slide 19: Swiss pharmaceutical market 2023
Swiss pharmaceutical market 2023 Allocation by value (ex-factory price) Total market growth CHF 7,406.6 million (+4.9%) Hospitals 199.4 million packs (-0.2%) CHF 1,816.9 million (+3.9%) 16.0 million packs (-1.9%) 24.5% Drugstores Local Pharmacies CHF 63.0 million (-6.1%) 43.5% CHF 3,222.3 million (+
Slide 20: Swiss consumer healthcare market 2023
Swiss consumer healthcare market 2023 3.0% OTC Total market 11.8% +1.8% CHF 2,762 million +0.7% Personal care -0.8% 20.4% Patient care Non-medication -1.7% segment -1.3% 64.7% Nutrition -3.4% Source: IQVIA PharmaTrend for pharmacies and drugstores in Switzerland, streetprices © IQVIA Switzerland – C
Slide 21: Retail B2C Solid sales growth
Retail B2C Solid sales growth Net sales (in million CHF) +1.8% 1,386 Portfolio of local pharmacies 1,361 optimised in 2023: 74 79 +6.6% expansion impact of +0.2% Pharmacies at Home Local Pharmacies 1,287 1,307 +1.6% Growth without COVID-19 initiatives1 in local pharmacies: + 2.7% 2022 2023 1 Impact
Slide 22: Products & Brands Strong growth and expansion of product portfolio
Products & Brands Strong growth and expansion of product portfolio Net sales (in million CHF) +12.3% 177 158 International: 36 +33.6% 27 − Organic growth +24.5% International Swiss market Swiss market: 131 141 +8.0% − Organic growth +1.1% − Growth of market sales CH1 +2.2% − Market share of 10.3%1 2
Slide 23: Wholesale Market share gains with pharmacies
Wholesale Market share gains with pharmacies Net sales (in million CHF) +4.7% 2,953 2,820 823 +3.6% Growth without Physicians 795 COVID-19 self-tests: Pharmacies +5.3% in total wholesale Others 1,849 1,949 +5.4% +6.3% in pharmacies segment 177 180 +2.1% 2022 2023 12 March 2024, Media and Analyst Con
Slide 24: Strategic partnership with Redcare Pharmacy
Strategic partnership with Redcare Pharmacy Value gain on 8% participation Extraordinary profit from in Redcare Pharmacy: creation of Joint Venture: EUR 95.5 million2 CHF 120.4 million1 (CHF 83.0 million) (discontinued operations) + 73% 196 113 30 March 31 December 1 Including value gain on 6.1% of
Slide 25: Solid EBIT growth without one-off items
Solid EBIT growth without one-off items EBIT adjusted1 (in million CHF) ROS (in %) 201.1 +5.5% 190.6 191.3 -12.8 42.3 55.1 +11.8% 49.2 1.4% 1.7% 1.8% +3.0 Logistics & IT Products & Care 143.3 152.3 149.3 +4.2% 9.0% 9.3% 9.1% 2022 2023 one-off 2 2023 w/o items one-off 1 Excluding effects of IAS 19 an
Slide 26: Solid EBIT growth without one-off items
Solid EBIT growth without one-off items 2023 w/o in million CHF 2022 2023 one-off2 in % one-off Net sales 3’588 3’746 3’746 +4.4% Personnel costs1 -525 -556 -556 +6.0% in % of net sales 14.6% 14.9% 14.9% Other operating costs1 -231 -256 -12.8 -244 +5.4% in % of net sales 6.4% 6.8% 6.5% EBIT adjusted
Slide 27: Successful cost containment in H2 2023
Successful cost containment in H2 2023 Personnel cost1 (in million CHF) % of net sales (in %) 15.1% 14.6% 14.8% 14.5% 1 Excluding effects of IAS 19, see chapter “Alternative performance measures” of the Annual Report 2023 12 March 2024, Media and Analyst Conference 27
Slide 28: Investments in our future
Investments in our future in million CHF 78.8 70.7 32.7 Investments in 29.7 intangible assets Investments in tangible assets 41.0 46.1 2022 2023 in % of net sales 2.0% 2.1% 12 March 2024, Media and Analyst Conference 28
Slide 29: Cash Flow Statement Build-up of safety stock burdens cash flow
Cash Flow Statement Build-up of safety stock burdens cash flow in million CHF 2022 2023 Cash flow from operating activities before working 220.4 201.3 capital changes adjusted 1 Working capital changes -29.2 -28.8 Cash flow discontinued operations (operating) -6.8 0.9 Cash flow from operating activi
Slide 30: Strong balance sheet
Strong balance sheet in million CHF 1,482 1,269 Equity adjusted1 Net debt adjusted1 362 295 2022 2023 Debt coverage 1.2x 1.5x adjusted2 1 Detail of the adjustments in the Annual Report 2023, see chapter “Alternative performance measures” of the Annual Report 2023 2 Net debt adjusted / EBITDA adjuste
Slide 31: Share information Historical dividend per share and pay-out ratio
Share information Historical dividend per share and pay-out ratio1 69.9% 68.2% 66.2% 2 64.7% 59.7% 2.20 2.20 2.10 1.80 1.80 2019 2020 2021 2022 2023 Dividend per share Payout ratio1 1 Dividend per share in relation to adjusted earnings per share at reporting date 2 Pay-out ratio of 71.2% adjusted fo
Slide 32: Financial guidance 2024
Financial guidance 2024 − Galenica Group net sales +3% to +5% − EBIT adjusted1 +8% to +11% − Dividend for 2024 at least at prior-year level 1 Excluding effects of IAS 19 and IFRS 16, see chapter “Alternative performance measures” of the Annual Report 2023 12 March 2024, Media and Analyst Conference
Slide 33: Investor calendar 2024
Investor calendar 2024 12 March 2024: Annual Report 2023 10 April 2024: Annual General Meeting 23 May 2024: Sales update (Jan – Apr 2024) 6 August 2024: Half year results 2024 24 October 2024: Sales update (Q3 2024) 1 Excluding effects of IAS 19 and IFRS 16, see chapter “Alternative performance meas
Slide 34: Q&A
GGalenica Q&A
Slide 35: Disclaimer
Disclaimer Disclaimer Galenica Certain statements, beliefs and opinions in this presentation are forward-looking, which reflect the Company’s or, as appropriate, the Company’s directors’ current expectations and projections about future events. By their nature, forward-looking statements involve a n