STADA Arzneimittel — Q3 2017 Earnings Presentation
18 slides from STADA Arzneimittel's earnings presentation, Nov 9, 2017
Slide 1: Analyst Presentation Q3/9M 2017
ANALYST PRESENTATION Q3/9M 2017 November 9, 2017
Slide 2: 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
Slide 3: Q3/2017: Good Operating Performance
Q3/2017: GOOD OPERATING PERFORMANCE Group Sales & Earnings Generics High single-digit sales and double-digit Single-digit sales growth EBITDA growth (both reported and adjusted) Particularly good sales growth in Belgium, Serbia and Italy Cash Flow Strong EBITDA growth and further margin Po
Slide 4: Generics Key Highlights
GENERICS KEY HIGHLIGHTS Dynamic growth in Belgium mainly attributable to positive volume effects as a result of the independent execution of sales activities since January 2017 as well as a reduced discount rate Generics business continues to be our Significant sales increase in Serbia due to consol
Slide 5: Branded Products Key Highlights
BRANDED PRODUCTS KEY HIGHLIGHTS Dynamic sales development mainly attributable to strong volume growth in Russia, particularly for some of STADAs key brands and increased sales contribution from the Serbian subgroup Strong sales development in Germany due to the early delivery of Branded Products wit
Slide 6: Financial Overview
FINANCIAL OVERVIEW Group results €m Q3/20171 Q3/2016 Δ 9M/20171 9M/2016 Δ Sales 554.8 507.0 +9% 1,698.0 1,541.7 +10% Sales (adj.)2 544.7 505.1 +8% 1,641.1 1,537.4 +7% EBITDA 99.4 88.4 +12% 320.3 289.1 +11% EBITDA (adj.)3 109.8 98.3 +12% 347.5 300.6 +16% Financial result -8.3 -12.9 -36% -27.6 -37.9 -
Slide 7: Generics: Strong Increase in Earnings and Margins
GENERICS STRONG INCREASE IN EARNINGS AND MARGINS Segment results €m Q3/2017 Q3/2016 Δ 9M/2017 9M/2016 Δ Sales 319.8 304.6 +5% 994.2 931.8 +7% Sales (adj.)1 312.5 302.6 +3% 960.8 927.5 +4% EBITDA (adj.)2 69.4 64.0 +8% 220.1 193.6 +14% EBITDA margin (adj.)2 21.7% 21.0% +70bps 22.1% 20.8% +130bps 1) Ad
Slide 8: Generics: Q3 Segment Sales by Country
GENERICS Q3 segment sales by country Sales by country Q3/2017 in €m Germany: stable sales development despite a more selective tender approach and stronger focus on profitability Germany Italy: strong growth due to positive volume growth and price 72 73 Italy effects, new product launches and decrea
Slide 9: Branded Products: Good Growth in Sales and Earnings
BRANDED PRODUCTS GOOD GROWTH IN SALES AND EARNINGS Segment results €m Q3/2017 Q3/2016 Δ 9M/2017 9M/2016 Δ Sales 235.0 202.6 +16% 703.8 609.9 +15% Sales (adj.)1 232.2 202.6 +15% 680.3 609.9 +12% EBITDA (adj.)2 70.1 52.5 +33% 191.5 161.1 +19% EBITDA margin (adj.)2 29.8% 25.9% +390bps 27.2% 26.4% +80bp
Slide 10: Branded Products: Q3 Segment Sales by Country
BRANDED PRODUCTS Q3 segment sales by country Sales by country Q3/2017 in €m Russia: Dynamic sales increase mainly attributable to volume growth, particularly for some of the key brands Russia 70 60 Germany: Strong sales growth due to the early delivery +6% +45% Germany of cough & cold products and n
Slide 11: Positive Cash Flow Development
POSITIVE CASH FLOW DEVELOPMENT €m Q3/2017 Q3/2016 Δ 9M/2017 9M/2016 Δ Operating cash flow 121.9 85.0 +43 211.4 198.0 +7 Capex (maintenance and other minor -20.0 +5.4 >-100 -66.7 -65.2 +2 investments net of disposals) Free cash flow (adj.)1 101.9 90.3 +13 144.7 132.8 +9 (before dividends) Acquisition
Slide 12: Net Debt to Adjusted EBITDA Further Improved
NET DEBT TO ADJUSTED EBITDA FURTHER IMPROVED 4,0 3,5 3.2 3.1 3.1 3.1 3,0 2.8 2.5 2,5 2.3 2,3 2,0 2012 2013 2014 2015 2016 Q1 2017 H1 2017 9M 2017 Net debt improved by 51.9 €m to 1,066.3 €m (December 31, 2016: 1,118.2 €m) STADA Corporate Presentation • November 9, 2017 Page 12
Slide 13: Group Guidance 2017 Confirmed
GROUP GUIDANCE 2017 CONFIRMED Target Sales adj.1 € 2,280 – 2,350m EBITDA adj.2 € 430 – 450m STADA well on track to meet full-year guidance Net income adj.2 € 195 – 205m 1) Adjusted for currency and portfolio effects. 2) Adjusted for special items. STADA Corporate Presentation • November 9, 201
Slide 14: Appendix
APPENDIX STADA Corporate Presentation • November 9, 2017 Page 14
Slide 15: Financing Structure
FINANCING STRUCTURE Net debt: 1,006.3 €m (December 31, 2016: 1,118.2 €m) Net debt to adjusted1 EBITDA: 2.3 (December 31, 2016: 3.0)2 Cash and cash equivalents: 368.8 €m (December 31, 2016: 352.6 €m) As a result of STADA’s financing contracts, the Company anticipates that a repayment could ta
Slide 16: Reconciliation Q3/2017
RECONCILIATION Q3/2017 in €m1 Q3/2017 Write-downs/ Effects from Consultancy Reversal of Q3/2017 reported write-ups on purchase price services in tax provisions adjusted fixed assets allocations and connection with the product acquisitions2 takeover process EBITDA 99.4 - -0.3 10.7 - 109.8 Balance fro
Slide 17: Reconciliation 9M/2017
RECONCILIATION 9M/2017 in €m1 9M/2017 Write-downs/ Effects from Consultancy Reversal of 9M/2017 reported write-ups on purchase price services in tax provisions adjusted fixed assets allocations and connection with the product acquisitions2 takeover process EBITDA 320.3 - -0.6 27.8 - 347.5 Balance fr
Slide 18: Financial Calendar / Contact
FINANCIAL CALENDAR / CONTACT Financial calendar 2018 March 8, 2018 Publication of the full-year 2017 results May 3, 2018 Publication of the first three months of 2018 results June 6, 2018 Annual General Meeting 2018 Please note that these dates could be subject to change. Contact Leslie Isabelle Ilt