Slide 1: FY 2019 Financial results
FY 2019 Financial results 6th April 2020 PATIENT WELL-BEING MEDICAL EDUCATION INNOVATION 1
Slide 2: Disclaimer
Disclaimer This press release has been prepared by Medacta Group SA ('Medacta' and together with its subsidiaries, 'we', 'us' or the 'Group'). The information contained in the press release does not purport to be comprehensive. Please refer to the Medacta 2019 Annual Report available on our website
Slide 3: Agenda
Agenda § FY 2019 Financial Performance § COVID-19 Update § Outlook 2020 § Appendix 3
Slide 4: Key Figures FY 2019
1 Key Figures FY 2019 Adjusted Gross Adjusted EBITDA Revenue (€M) profit (€M) (€M) 310.6 226.9 91.5 Adjusted Gross Profit Adjusted EBITDA Revenue growth margin margin +13.9% 73.0% 29.5% +11.3% CC 2 Notes: 1. This presentation contains certain financial measures of historical performance that are not
Slide 5: FY 2018-2019: Revenue Bridge by Product
FY 2018-2019: Revenue Bridge by Product Revenues Bridge by Product 5.2% 13.2% 147.4% 23.4% 11.3% 13.9% 11.4% 7.2 4.6 303.4 310.6 12.7 5.6 (€M) 272.6 7.9 24.3 9.4 25.3 19.7 9.7 3.8 108.7 111.7 96.1 153.0 161.0 163.9 2018 vs 2019 FY 2018 A Hip Knee Extremities 2 Spine FY 2019 A 1 FX FY 2019 A Hip Knee
Slide 6: FY 2018-2019: Revenue Bridge by Region
FY 2018-2019: Revenue Bridge by Region Revenues Bridge by Region 7.9% 13.2% 13.3% 28.1% 11.3% 13.9% 11.4% 7.2 310.6 10.5 7.8 2.6 303.4 (€M) 272.6 9.9 12.1 11.9 66.0 66.9 9.3 58.3 90.7 95.5 80.1 124.9 134.8 136.1 2019 vs 2018 FY 2018 A Europe NA APAC RoW FY 2019 A 1 FX FY 2019 A Europe NA APAC Row Co
Slide 7: 2019 Highlights
2019 Highlights Significant organic growth of 13.9%, equal to 11.3% in CC1, and revenue up to €310.6M Positive contribution from all business lines (CC1): • Good and stable growth in the core business Hip (+5.2%) and Knee (+13.2%) • Good performance in Spine business thanks to the strong acceleratio
Slide 8: Gross Profit 2019 vs 2018
1 Gross Profit 2019 vs 2018 Gross Profit bridge (€M) Commentary % of GP adjusted (for “fidelity bonus”) decreases by 1.8% as a 72.0% 73.0% 74.8% revenue percentage of revenue: 223.7 3.2 226.9 - 0.8% from negative trends in prices (F, BE, US, I) and 204.0 - 1.0% from increasing Cost of Sales (primari
Slide 9: Operating Expenses 2019 vs 2018
Operating Expenses 2019 vs 2018 Operating expenses (€M) Commentary Adjusted for abnormals (also called elsewhere non-recurring costs), OPEX increased by 2.7% as a percentage of revenue to 54.4%, from 51.7% of prior % of 65.7% Adjustments for non- 1 year, primarily due to the revenue growth in 2019 w
Slide 10: Adjusted EBITDA Margin of 29.5%
Adjusted EBITDA Margin of 29.5% 1 EBITDA bridge (€M) Commentary As a result of the operating activity and % of revenue growth slightly below expectations, revenue 32.3% adjusted EBITDA margin declined from (1.3%) (2.5%) 32.3% in 2018 to 29.5% in 2019 due to: 1.0% 29.5% • GP margin reduction: revenue
Slide 11: EBITDA - Adjustments Details
1 EBITDA - Adjustments Details EBITDA bridge (€M) Commentary Non-recurring items impacted EBITDA for a total 29.5% amount of €38.2M: (0.4) 2.8 91.5 • stamp duty costs related to the change in 14.6 ownership structure for €5.9M 15.3 • “fidelity bonus” to employees for €15.3M (in October 2019 Medacta
Slide 12: FY 2019 – Net Trade Working Capital
FY 2019 – Net Trade Working Capital Change in net trade working capital …out of which change in inventory Commentary (€M) (€M) 3.7% 5.7% Net Trade Working capital % of 4.9% 17.7 3.3% 11.7 revenue Net trade working capital increased from 13.4 9.0 €13.4M in 2018 to €17.7M (+4.3M) in 2019 mainly due to
Slide 13: FY 2019 - Capital Expenditures
FY 2019 - Capital Expenditures Investments in Tangible and Intangible Assets Commentary (€M) Capex on sales from 19.3% to 13.4% after: % of 19.3% revenue 13.4% 52.7 • Higher investments in instruments for new 2.0 41.6 customers (+ €8.8M vs 2018) to be 7.9 Intangibles 2.1 absorbed by next year’s expe
Slide 14: FY 2019 - Adjusted Cash Flow
1, 2, 3 FY 2019 - Adjusted Cash Flow Consolidated cash flow Commentary Cash flow (€M) FY 2018 A FY 2019 A § Cash flow from operating activities Cash flow from operating activities 66.4 42.6 adjusted for abnormals increased to Abnormals on CF from operating activities €70.7M in 2019 compared to €68.0
Slide 15: FY 2019 - Capital Structure
FY 2019 - Capital Structure Total Net Debt1 Development Commentary (€M) Leverage2 1.49x3 1.15x3 § Leverage down to 1.15x, from 1.49x in 130.8 105.64 2018, as a result of free cash flow generated during the year, capital 51.5 contribution from selling Shareholders and the adoption of IFRS16 (see note
Slide 16: COVID-19 Update
Adedacta International COVID-19 Update F Adedacta International [+ 16
Slide 17: COVID-19 Update – Medacta’s Priority
COVID-19 Update – Medacta’s Priority As a Medtech company Medacta can continue manufacturing. Our priorities are: § Protecting health of Employees § Minimizing impact on customers and patients and securing supply chains § Maintaining financial health and liquidity Proximity to Italy enabled to prepa
Slide 18: COVID-19 Update – HQ and Operations
COVID-19 Update – HQ and Operations § HQ general organization - Employees are working remotely since March 9th to the extent possible - Remaining Manufacturing Employees have been split in subgroups completely separate in order to mitigate any risk of cross contamination and related quarantine - Soc
Slide 19: COVID-19 Update – Revenue
COVID-19 Update – Revenue - Starting from Italy, in March we have seen a steep decline of Elective Surgeries. Switzerland, France and Australia have followed and we expect more Countries to go the same way including USA where a partial lock-down is in place already - Japan and Austria are still doin
Slide 20: COVID-19 Update – Costs
COVID-19 Update – Costs Cash flow and liquidity is a top priority. We keep the situation monitored and appropriate actions have been taken to protect cash flow - Countermeasures in place focused on adjustments of production, flexible cost base (e.g. short-time work) and further cost reduction measur
Slide 21: COVID-19 Update – 2019 Dividend
COVID-19 Update – 2019 Dividend To further protect our cash flow, the Board of Directors decided not to propose to the Annual General Meeting any distribution of dividend for the 2019 financial year. 21
Slide 22: Outlook 2020
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Slide 23: Outlook 2020
Outlook 2020 Sales for the first two months of 2020 were very strong and in line with management expectations, recording constant currency growth in the low to mid-teens range. March was heavily affected by the Covid-19 impact, reducing constant currency growth rate for Q1 to low single digit. Given
Slide 24: Thank you
Adedacta International ee Thank you Adedacta 24
Slide 25: Appendix
Adedacta International Appendix Zp Adedacta 25
Slide 26: Consolidated Financial Statements 2019
Consolidated Financial Statements 2019 Profit & loss statement (€ thousand) 31.12.2019 31.12.2018 (Thous a nd Euro) Re porte d Re porte d Re ve nue s 310'623 272'610 Cos t of S a le s (86'926) (68'630) GROS S P ROFIT 223'697 203'980 GROS S P ROFIT MARGIN 72.0% 74.8% Re s e a rc h a nd De ve lopme nt
Slide 27: Consolidated Statement Balance Sheet 2019
Consolidated Statement Balance Sheet 2019 Balance Sheet (€ thousand) AS S ETS LIABILITIES AND EQUITY (Thous a nd Euro) 31.12.2019 31.12.2018 (Thous a nd Euro) 31.12.2019 31.12.2018 P rope rty, pla nt a nd e quipme nt 135'350 132'908 S ha re c a pita l 1'775 1'775 Right- of- us e a s s e ts 22'104 Ca
Slide 28: Consolidated Statement Cash Flow 2019
Consolidated Statement Cash Flow 2019 Cash Flow (€ thousand) (Thous a nd Euro) 31.12.2019 31.12.2018 (Thous a nd Euro) 31.12.2019 31.12.2018 P ROFIT FOR THE YEAR 11'859 45'753 FREE CAS H FLOW 594 17'184 Adjus tme nts for: P roc e e ds from borrowings - 86'306 Inc ome ta x e xpe ns e s 1'773 12'287 R
Slide 29: Company Presentation
Adedacta International Company Presentation A Adedacta 29
Slide 30: Introduction
Introduction Dr. Alberto Siccardi Francesco Siccardi Corrado Farsetta Founder & President Chief Executive Officer Chief Financial Officer ● Founded Medacta in 1999 ● Joined Medacta in 2002; Member of the ● Joined Medacta in 2008 ● President of Medacta’s Board of Directors Board since 2003 ● Former C
Slide 31: An international high-growth platform with a new approach to orthopedics
An international high-growth platform with a new approach to orthopedics 1 2 3 4 5 High-growth Differentiated Dedicated Rich pipeline of Experienced and orthopedics company minimally invasive surgeon education innovation-led committed leadership with and personalized program offerings team internati
Slide 32: Proven Track Record of Growth Built on the Foundations of Long-Term Family Values
Proven Track Record of Growth Built on the Foundations of Long-Term Family Values Significantly investing in new product families leveraging the existing business “Our vision resulted from my own experience: passion, Shoulder & Sports Med innovation and medical education to create products and Conti
Slide 33: Medacta’s Extensive Product and Service Portfolio
Medacta’s Extensive Product and Service Portfolio Medacta Product Range at a Glance Hip Knee Shoulder Spine Sports Med ‘99 ‘99 ’16 ’10 ’17 2019A Sales 164 112 10 25 - (€m) Patient Matched Technology Education Program Portfolio Scope Status Established Established Established Ramp-up Limited Market R
Slide 34: Pioneer in Minimally Invasive Solutions for Hip Replacement
Pioneer in Minimally Invasive Solutions for Hip Replacement Typical Benefits for the Patient, Surgeon and Healthcare System Anterior Minimally Invasive Surgery (AMIS) for Hip Replacement SURGICAL TECHNIQUE AMIS is an evolution of the anterior approach: simpler, more reproducible and less invasive Su
Slide 35: The Medacta Approach to Knee Replacement
The Medacta Approach to Knee Replacement Medacta Ecosystem to Address Issues of Total Knee Arthroplasty INNOVATIVE IMPLANTS A MEDICAL EDUCATION E Total knee implant designed to deliver The M.O.R.E. Education Knee Program maximum functional stability supports the surgeon step-by-step in the Better re
Slide 36: MySpine MIS Midline Cortical Platform awarded Best Healthcare Navigation / Robotics Solution
MySpine MIS Midline Cortical (MC) Platform awarded Best Healthcare Navigation / Robotics Solution Next generation healthcare navigation and robotics solution § MedTech Breakthrough Awards recognize game-changing technologies throughout the medical industry § MySpine MIS1 MC is a minimally invasive,
Slide 37: Sustained growth of the shoulder business underlined by the launch of new products
Sustained growth of the shoulder business underlined by the launch of new products Medacta Shoulder System: An innovative modular shoulder replacement system § Successfully rolled out the Medacta Shoulder System in the US, Australia and Japan § Continued introduction of key technologies across globa
Slide 38: Medacta Approach to Personalized Medicine Sustained by Feedback System
Medacta Approach to Personalized Medicine Sustained by Feedback System Enabled by MySolution Platform Proprietary web-based integrated solution linking all of the actors Personalized 3D Planning Implants Selection Surgery Execution Tools Clinical Follow-Up A B C Post Market Surveillance, Clinical Im
Slide 39: Thank you
Adedacta International THANK YOU op Adedacta International [+ 39