Investor presentation June 2015

Transcription

1 Investor presentation June 2015

2 Fagron at a glance Founded in 1990 by CEO Ger van Jeveren Listed on Euronext Brussels/ Amsterdam Market cap. of 1.3 billion Global market leader active in 32 countries on 6 continents, 2,200 FTE, >300 pharmacists 2014: 447 million of turnover, with REBITDA margin of 26.5% Share price increased from in 2007 to in 2015 Proven buy and build strategy, generating margin expansive growth Global market leader in pharmaceutical compounding 1

3 Global presence Anápolis Arlington Heights Aurora Barcelona Bogotá Bologna Bornem Boom Broken Arrow Cali Campinas Cape Town Capelle a/d IJssel Charleroi Copenhagen George Goes Hamburg Helmond Hoogeveen Johannesburg Jundiai Kraków Las Vegas Marseille Maryland Heights Medellin Miami Minneapolis Modlniczka Newcastle Oldenzaal Olomouc Oud Beijerland Paris Piracicaba Rotterdam Saint-Denis São Paulo Shanghai Somerset West St. Louis Sydney Tamarac Tampa Trikala Tulsa Uitgeest Waregem Wichita IJsselstein Zeist 2

4 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 3

5 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 4

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8 Business model FCS Nuclear, 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 Encapsulating the compounding market Fagron compouding advisors (EU: 300, NA: 100, SA: 100) Discuss patient case with prescribers Tailor-made medication prepared in a compounding pharmacy or by Fagron Compounding Services Formulary based on Fagron APIs and Fagron Trademarks

10 Win-win-win strategy Patient organisations Prescriber Patient Government Insurance companies Pharmacist 9

11 Our unique position in global compounding Global market leadership Optimising and innovating compounding Extensive R&D pipeline Unique business model Strong brand names Global footprint Global buy-and-build strategy 10

12 Our unique position in global compounding Group strengths In-depth compounding knowledge Use best practices Speed of execution Extensive global network Local market expertise Acquiring and integrating expertise Solid financial position 11

13 Our unique position in global compounding Operational strengths Global scale benefits Compliant with highest quality standards Product portfolio optimisation Centralised purchasing Production efficiency Consolidation of activities 12

14 Proven buy-and-build strategy, generating sustainable value Freedom Pharmaceuticals (USA) Alternate Technologies (Brazil) Gallipot (USA) DEG (Brazil) AnazaoHealth (USA) Tamda (Czech Republic) Unikem (Denmark) Pharma Nostra (Brazil) Pharma-Cosmetic (Poland) Pharma Assist (NL) JCB Laboratories (USA) Pharmacy Services (USA) Kertus (Greece) Fagron Australia Dynaceuticals and Rausa-Kem (SA) Florien (Brazil) Three compounding pharmacies (Colombia) Orbus Pharma (Colombia) Galfarm (Poland) Apodan Nordic Pharma Packaging (Denmark) B&B Pharmaceuticals (USA) 13

15 Accelerate buy-and-build strategy with focus on FCS and Trademarks In % of total turnover Q Target 2016 FCS 37% 50% Fagron Trademarks 10% 25% Fagron Compounding Essentials 53% 25% 14

16 Fagron Compounding Services

17 Business model: FCS Sterile IV-Bags, ampoules, vials Nuclear Radioactive capsules, radioactive injections, radioactive seeds Aseptic TPN, cytostatics, syringes, cassettes, easypumps Non-sterile Tablets, capsules, liquids, crèmes/ointments 16

18 Fagron Compounding Services facilities worldwide North America Wichita, Kansas (sterile and aseptic) St. Louis, Missouri (non-sterile) Arlington Heights, Illinois (non-sterile) Tamarac, Florida (non-sterile) Tampa, Florida (non-sterile) Las Vegas, Nevada (sterile and aseptic) Colombia Bogotá (non-sterile) Bogotá (non-sterile) Cali (non-sterile) Medellin (non-sterile) Netherlands Oud Beijerland (non-sterile and aseptic) Helmond (non-sterile and sterile) Hoogeveen (non-sterile and aseptic) Oldenzaal (non-sterile and aseptic) Goes (non-sterile, sterile and aseptic) Belgium Bornem (non-sterile and aseptic) Greece Trikala (non-sterile) France Paris (non-sterile) Marseille (non-sterile) South Africa Johannesburg (non-sterile) Cape Town (non-sterile and sterile) George (non-sterile and sterile) 17

19 Fagron Compounding Services Warehouse incoming goods Clean utilities Transfer into clean room Clean utilities in clean room Transfer to aseptic area Batch record administration 18

20 Fagron Compounding Services Prepare for compounding Compounding Visual analyses Packaging Microbiology analyses Complete batch record 19

21 Fagron Compounding Services Growth driven by increasing demand for sterile compounding Compliant with the highest, most stringent quality standards New antibiotic facility in NL will open in June 2015 New sterile facility in USA will open in November 2015 More hospitals are ready to outsource compounding Actively looking into potential acquisition targets Estimated market share <5% in the US and Europe 20

22 Fagron Compounding Services In 2014, Fagron prepared over 2 million prescriptions 21

23 Acquisition of AnazaoHealth Leading nuclear, pain and intrathecal compounding facility in the United States 2015E Sales of US$ 30 million with an EBITDA margin equal to Fagron Acquisition multiple 6x EBITDA Headquartered in Florida and a FDA 503B facility in Nevada 22

24 Nuclear compounding Nuclear compounding is a specialty area of pharmacy practice dedicated to radioactive materials for use in nuclear medicine procedures, which includes cancer treatments and diagnostics Radiopharmaceuticals are radioactive. Radiation protection during compounding and administration forms an integral part of the job Anazao s radiopharmaceuticals are tailor-made compounded as capsules, seeds or injections Radiopharmaceuticals administered as injections are compounded under aseptic conditions 23

25 Investment rationale Specialty pharmacy compounding presents huge growth opportunities Growth drivers for Fagron: Ongoing trend to outsource compounding Increasing demand for compounded medication Decreasing number of competitors due to new regulatory requirements Acquisition candidates in South America, North America and Europe 24

26 Fagron Trademarks

27 Fagron Trademarks Growth driven by the global launch of Fagron Advanced Derma and SyrSpend SF Global Fagron R&D network of >300 pharmacists and 45 researchers Global presence boosts cross selling and innovation Increasing interest for Fagron Trademarks by pharmaceutical industry Strong and extensive R&D pipeline R&D pipeline includes concepts on psoriasis, alopecia, transdermal pain and obesity 26

28 Prescribers worldwide: compounding prescriptions based on Fagron vehicles 27

29 Global R&D Development Launch of solution Patient, pharmacist & prescriber Realisation Total spending R&D: 8-10% of turnover 28

30 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 Psoriasis FAD phase 3 SDD Obesity 29

31 Fagron Compounding Essentials

32 Fagron Compounding Essentials Central purchasing and audit office in Shanghai, China Complete offering of 5,000 raw materials of pharmaceutical quality Full overview of supply chain resulting in 100% traceability Unique selling points are product availability and quality Potential add-on acquisitions in existing markets identified 31

33 Financial highlights

34 Financial highlights 2014 Turnover (in million) % OWC (in % of turnover) 9.1 Organic turnover growth of 11.5% Gross margin increases to 64.5% of turnover Gross margin (in million) 288 REBITDA (in million) % +49.8% Capex (in % of turnover) 2.8% Free cash flow (in million) % REBITDA growth driven by focus on FCS and Fagron Trademarks and continuous focus on OPEX Net financial debt/rebitda ratio of 3.18, compliant with covenant under the credit facility Free cash flow increases 165% due to increasing EBITDA, good working capital management and decreasing taxes paid EBIT (in million) % Dividend p/s (in ) % Outlook 2015: Turnover of at least 500 million with a REBITDA margin of 26% 33

35 Organic and total turnover growth Fagron 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%

36 Q1 2015: Turnover per segment In 1,000 % of total Q Q Total growth Total growth CER Organic growth Organic growth CER FCS 37% 42,815 19, % 101.8% 41.7% 32.1% Trademarks 10% 11,594 10, % 4.6% 8.8% 4.6% Compounding Essentials 53% 60,543 57, % -0.4% 5.3% 0.2% Total Turnover 100% 114,952 88, % 23.1% 16.8% 10.5% Excellent start of the year Total growth of 30.2% and organic growth of 16.8% Very strong growth at FCS, the segment with the highest margin Continued focus in 2015 on robust organic growth, an active buy-and-build strategy and the construction of GMP-compliant compounding facilities Outlook for 2015 reconfirmed CER = Constant exchange rates 35

37 2014: Turnover per segment In 1,000 % of total Total growth Total growth CER Organic growth Organic growth CER FCS 34% 147,780 58, % 153.2% 20.1% 19.8% Trademarks 10% 45,652 33, % 39.8% 24.6% 28.4% Compounding Essentials 56% 245, , % 3.3% 2.1% 4.7% Total Turnover 100% 438, , % 33.0% 9.7% 11.5% Without the disposal of 10.9 million of Industry Sales, organic growth of Fagron Compounding Essentials would have been 9.7% CER = Constant exchange rates 36

38 Outlook 37

39 Outlook 2015 Fagron expects to realise a turnover from continuing operations of at least 500 million 1 with a REBITDA-margin 2 from continuing operations of 26% 1 Based on constant exchange rates (euro/us dollar of and euro/brazilian real of 3.100). 2 EBITDA before non-recurrent result. 38

40 Fagron the global number 1 in pharmaceutical compounding

41 Shareholder structure Number of shares % of effective voting rights Carmignac Gestion 2,463, % TIAA-CREF Asset Management LLC 1,635, % BNP Paribas Investment Partners SA 1,609, % Fidelity Management and Research 1,573, % 40