Jan Peeters, CFO Marieke Palstra, IR. Healthcare conference KBC Brussels 19 March 2015

Transcription

1 Jan Peeters, CFO Marieke Palstra, IR Healthcare conference KBC Brussels 19 March 2015

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3 Global presence 2

4 Global presence USA 7 sites GMP, FDA Europe 9 sites GMP, FDA, ISO9001 South Africa 3 sites Colombia 4 sites Brazil 4 sites GMP, FDA, ISO9001 China Purchase & quality office Fagron Group 28 sites 5,000 pharmaceutical raw materials 3

5 Fagron Global market leader in pharmaceutical compounding 2,239 employees, incl. >300 pharmacists, in 30 countries 19 compounding facilities, 6 facilities under development, 5 conditioning sites, 3 purchase and audit offices 10% of annual turnover comes from innovations that were introduced in the past two years 2014: turnover of million and REBITDA margin of 26.5% Listed on Euronext Brussels and Amsterdam since 2007 Market capitalisation of 1.1 billion 4

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8 Business model FCS Sterile, Aseptic and Non sterile compounding Fagron Trademarks Fagron Advanced Derma SyrSpend SF Fagron Aseptic Pack Fagron Compounding Essentials Raw materials Excipients Equipment Supplies 7

9 Major achievements in 2014 Organic turnover growth at constant rates of 11.5% Total turnover growth of 30.4% Disposal of 10.9 million non-strategic OTC and Industry activities Gross margin of 64.5% EBITDA-margin of 25.4%, an increase of 340bps Divestment of Arseus Dental and Arseus Medical US private placement of US$ 185 million Refinancing of 220 million syndicated loan facility Successful rebranding of Arseus into Fagron Fagron publicly listed on Euronext Amsterdam and Brussels since 1 January

10 What is pharmaceutical compounding? Formulations developed by Fagron and/or compounding pharmacists based on APIs which are out of patent Tailor-made medication Alternative dosage forms Alternative dosage strengths Combination therapy Compounded in community and hospital pharmacies or by Fagron Compounding Services, always based on a pharmaceutical formulation Patient 9

11 Key drivers of pharmaceutical compounding Unique selling points Prescriber/Pharmacist Drug shortages Discontinued drugs High-quality and cost effective alternative Yes, compounding pharmacists enhance medication compliance and save lives every single day! Less side effects More individualised approach Tailor-made Enhance patient compliance New and unavailable therapeutic needs Increased awareness through internet 10

12 Win-win-win strategy Prescriber Patient Pharmacist 11

13 Process from prescription to patient Europe REIMBURSEMENT Pharmacy Patient Prescriber Hospital pharmacy 12

14 Process from prescription to patient US NON STERILE: REIMBURSED/CASH Non-sterile FCS facility Patient Prescriber STERILE: CASH Hospital/ clinic FDA registered 503B sterile FCS facility 13

15 Process from prescription to patient Brazil 100% CASH MARKET Pharmacy Patient Prescriber 14

16 Win-win-win strategy Patient organisations Prescriber Patient Government Insurance companies Pharmacist 15

17 Fagron markets Europe 400,000 pharmacists 155,000 pharmacies 10,000 compounding pharmacies US$ 2 billion market (est.) Compounding: Not embedded Less important at University and pharmacy education Regulatory: not-standardised and not implemented Traditional Growing market Estimated market share of FCS is <5% Estimated market share of FTM and FCE is 50% 16

18 Fagron markets United States 274,000 pharmacists 67,000 pharmacies 4,500 compounding pharmacies US$ 8 billion market (est.) Compounding: Embedded in society and culture Pharmaceutical specialisation at University level Regulatory: standardised and implemented, but in transition Innovative (vehicles) Growing market Estimated market share of FCS is <5% Estimated market share of FTM and FCE is 15% 17

19 Fagron markets Brazil 120,000 pharmacists 32,000 pharmacies 7,200 compounding pharmacies US$ 4 billion market (est.) Compounding: Way of life, part of Brazilian culture Pharmaceutical specialisation at University level Regulatory: standardised and implemented Innovative (transdermal application) Growing market Fagron is not active in FCS Estimated market share of FTM and FCE is 45% 18

20 Financial highlights

21 Consolidated turnover S and FY 2014 X 1,000 euros Total growth Tot. growth CER Org. growth Org. growth CER Fagron 438, , % 33.0% 9.7% 11.5% HL Technology 8,577 7, % 9.5% 11.0% 9.5% Total 447, , % 32.5% 9.7% 11.5% X 1,000 euros S S Total growth Tot. growth constant* Org. growth Org. growth constant ** Fagron 234, , % 31.0% 10.4% 9.1% HL Technology 3,559 3, % 4.9% 7.3% 4.9% Total 237, , % 30.5% 10.4% 9.1% 2

22 Consolidated - Gross Margin % % 48.1% Increased by 770bps to 64.5% of turnover Focus on high margin products, FCS and Fagron 49.2% Continuous savings in procurement 100 Phased-out industry sales

23 Consolidated - REBITDA % 49.8% Increase of 340bps to 26.5% of turnover Continuous focus on OPEX % % Growing expenses in R&D In 2014 total amount of R&D is 30 million Fagron does not activate R&D costs 2

24 Consolidated - Depreciation & Amortisation % Increase in D&A of 10.1 million: million PPA 2.6 million PPE 2.8 million write down of % inventory and receivables (phase out of non profitable distributions and industry sales)

25 Consolidated EBIT % 49.2% Increase of 42.2% to 94.3 million (170bps to 21.1% of turnover) EBIT lift (EBIT growth/sales growth)=

26 Consolidated Taxes Increase of 19.7 million, mainly due to high corporate tax rate in the US Effective tax rate amounted to 38.2% Cash tax rate is 16.3% and below our 49.2% guidance of 20%

27 Consolidated Adjusted net profit % % Increase of 5.4% from 44.3 million to 46.7 million Negatively impacted by high tax rate Net profit corrected for paid taxes 49.2% would be 62 million (increase of 40.0%) adjusted 2

28 Net financial debt S1 and S Negatively impacted by USD conversion (effect is 22.2 million) Covenant = 3.18 compliant with maximum ratio of S1 S

29 Net debt bridge

30 Strongly improved cash flow generation In million Change Operating cash flow % - Interest % - CAPEX % Free cash flow % EBITDA % EBITDA/FCF 50% 28% +2,200bps Strongly improved cash conversion Due to increasing EBITDA, good working capital management and decreasing paid taxes = Operational excellence 29

31 Fagron FINANCIAL HIGHLIGHTS

32 Sales Fagron CAGR 20% CAGR: Compound Annual Growth Rate 31

33 Organic and total turnover growth 40% 35% Organic growth at constant rates Total growth at constant rates 35.8% 33.0% 30% 25% 24.2% 21.8% 20% 18.3% 20.3% 15% 10% 5% 9.4% 10.5% 5.9% 7.2% 6.5% 10.9% 13.7% 11.5% 0%

34 Sales per segment Fagron Compounding Services Total growth Organic growth 147,780 58, % 19.8% Fagron Trademarks 45,652 33, % 28.4% Fagron Compounding Essentials 245, , % 4.7% Total Turnover 438, , % 11.5% Without the disposal of 10.9 million of Industry Sales, organic growth of Fagron Compounding Essentials would have been 9.7% 33

35 Fagron Compounding Services

36 Business model: FCS Sterile IV-Bags, ampoules, vials Aseptic TPN, cytostatics, syringes, cassettes, easypumps Non sterile Tablets, capsules, liquids, crèmes/ointments 35

37 Fagron Compounding Services facilities worldwide Belgium Bornem (non-sterile & aseptic) Greece Trikala (non-sterile) France Paris (non-sterile) Marseille (non-sterile) South Africa Johannesburg (nonsterile) Cape Town (non-sterile and sterile) George (non-sterile and sterile) North America Wichita, Kansas (sterile & aseptic) St. Louis, Missouri (non-sterile) Arlington Heights, Illinois (non-sterile) Tamarac, Florida (non-sterile) Colombia Bogotá (non-sterile) Bogotá (non-sterile) Cali (non-sterile) Medellin (non-sterile) Netherlands Oud Beijerland (non-sterile & aseptic) Helmond (non-sterile & sterile) Hoogeveen (non-sterile & aseptic) Oldenzaal (non-sterile & aseptic) Goes (non-sterile, sterile & aseptic) 36

38 Fagron Compounding Services Warehouse incoming goods Clean utilities Transfer into clean room Clean utilities in clean room Transfer to aseptic area Batch record administration 37

39 Fagron Compounding Services Prepare for compounding Compounding Visual analyses Packaging Microbiology analyses Complete batch record 38

40 Fagron Compounding Services products Elastomeric pump Cassettes Fagron Aseptic Pack Prefilled syringes 39

41 Fagron Compounding Services products Intravitreal eye injections antibiotic prophylaxis IV bag Cytostatics 40

42 YES, WE IMPROVE THE QUALITY OF LIFE OF PATIENTS, EVERY SINGLE DAY 41

43 Global R&D pipeline 2015 Jan Feb Mar Apr May Jun Jul Aug 2016 Sep Oct Nov Dec Feb Aug Launch Global Concepts FAD phase 2 Alopecia Pain, phase 1 Global formulations App SDD Psoriasis FAD phase 3 Obese 42

44 Outlook 43

45 Outlook 2015 Fagron expects a turnover of at least 500 million with an REBITDA margin of 26% in

46 Thank you

47 Disclaimer This presentation may contain forward-looking statements with respect to Fagron s future (financial) performance and position. Such statements are based on current expectations, estimates and projections of Fagron and information currently available to the company. Fagron cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. Fagron has no obligation to update the statements contained in this presentation, unless required by law. The FY14 are not audited numbers and therefore final 2014 numbers may deviate from the numbers presented. A more comprehensive discussion of the risk factors affecting Fagron s business can be found in the company s latest Annual Report, which can be found on the company's corporate website, 46