Bank of America Merrill Lynch Global Healthcare Conference ... Relations... · Bank of America...

Bank of America Merrill Lynch Global Healthcare Conference 2012

12 September 2012

Bank of America Merrill Lynch Global Healthcare Conference 2012 Lars Rasmussen, CEO


12 September 2012

Forward-looking statements

The forward-looking statements contained in this presentation, including

forecasts of sales and earnings performance, are not guarantees of future results

and are subject to risks, uncertainties and assumptions that are difficult to

predict. The forward-looking statements are based on Coloplast’s current

expectations, estimates and assumptions and based on the information available

to Coloplast at this time.

Heavy fluctuations in the exchange rates of important currencies, significant

changes in the healthcare sector or major changes in the world economy may

impact Coloplast's possibilities of achieving the long-term objectives set as well

as for fulfilling expectations and may affect the company’s financial outcomes.


12 September 2012

Agenda

• Introduction to Coloplast

• Accelerating our global growth

• Margin expansion potential

• Q&A


12 September 2012

Ostomy Care 42%

Continence Care 34%

Urology Care 9%

Wound & Skin Care

15%

Europe 73%

Americas 17%

Rest of world 10%

Coloplast is a leading medtech company

Group revenue FY 2010/11 by segment Group revenue 2010/11 by geography

#1

#4

#1

#x Global position

Full Year 2010/11 sales: DKK10.2bn


12 September 2012

Specialising in intimate healthcare needs

Ch

ron

ic C

are

N

on

-Ch

ron

ic C

are

Ostomy

Care

Continence

Care

Urology

Care

Wound

Care

People who have had their intestine redirected to an opening in the abdominal wall

People in need of bladder or bowel management

People with dysfunctional urinary and reproductive systems

People with difficult-to-heal wounds

Who are our typical users How do we help them?

SenSura® Ostomy bag

SpeediCath® Compact male urinary catheter

Titan® Penile implant

Biatain® Foam wound dressing


12 September 2012

Stable intimate healthcare trends

Growing elderly population increases

customer base for Coloplast products

Expanding healthcare coverage for

populations in emerging markets

increases addressable market

Surgical and medical trends are towards

earlier detection and cure, eventually

reducing addressable market for

Coloplast treatment products

Economic restraints push for

reimbursement reforms, introduction of

tenders, and lower treatment cost

Demographics

Emerging markets

Surgical and

medical trends

Healthcare reforms


12 September 2012

Agenda




• Q&A


12 September 2012

We are stepping up to the challenge and leveraging our market leader position

Key priority Our situation

of our net revenues 67%

40-50% market share*

* Chronic Care market share

Capture

profitable

growth based

on high

market share

Core developed markets in Europe


12 September 2012

With a clear commercial focus on innovation

Products launched

Future launches

13/14

Slot 1 Slot 2

12/13

Slot 1 Slot 2

11/12

Slot 1 Slot 2

10/11

Slot 1 Slot 2

14/15

Slot 1 Slot 2

Brava™

Ostomy

Care

SenSura®

Mio

Wound

Care

Biatain®

Silicone

Ag

Continence

Care

Speedi-

Cath®

Compact

Male

Speedi-

Cath®

Compact

Set


12 September 2012

High potential for taking larger market shares

Our situation




Key priority

Capture

market share

in developed

markets

Developed markets outside Europe


12 September 2012

Growth opportunities in developed markets outside Europe

Canada

Australia

Japan

• Accelerate growth by leveraging

strong market position

•

• Accelerate new patient discharge,

• improve retention and drive

conversion

• Accelerate growth in intermittent

catheters

• Strong focus on NPD and increase

investments in the market

• Understand and explore large

potential

• Leverage market leader position

USA

• Defend and grow through NPD

capture and new product

introductions

• Breakthrough through NPE and end

user retention

Ostomy Care Continence Care


12 September 2012

Great potential to build markets and capture market shares

Our situation



Key priority


Educate,

create and

grow selected

markets

Emerging Markets


12 September 2012

Geographical expansion also holds significant longer term potential for us

Build on and

accelerate growth

platform e.g. in

• China

• Brazil

• Russia

• Argentina

Develop growth

platform e.g. in

• MENA

• Mexico

• India

• South Africa

• South East Asia

• Selected ROLA

markets

Selected markets


12 September 2012

Agenda




• Q&A


12 September 2012

Operating leverage will generate funds for investments in growth

Generates funds

for investments

in growth and

leaves potential

for improving

cost ratios

High value growth in Europe

Continued cost discipline


12 September 2012

We are on track with our Global Operations plan

Lean in volume production

Re-design for manufacturing

Global sourcing and supplier relations

management

Focus on fixed costs and environment

Cost effective distribution

Design for manufacturing & fast ramp-up

Will contribute 50 –

100 bps to gross

margin annually with

the current outlook on

pricing, currencies

and raw materials


12 September 2012

We are able to invest significantly in sales initiatives and have potential for margin expansion

Changes in

geographical footprint

Negative impact on Group EBIT margin

absorbed through continued high value

growth in Europe and scale outside Europe

Operating leverage

Generates funds for sales investments and

holds potential for improving cost ratios

Global operations

Expected to contribute 50-100 bps annually

Price pressure

Price decline of 1% annually


12 September 2012

We expect continued strong financial performance driven by...

•Stable market trends in our Chronic Care

business

• Increased focus on growing the business

outside Europe

•Additional improvements in manufacturing by

leveraging on new global operations footprint

• European leverage will provide funds for further

investments in sales

• Low capex-to-sales ratio from high capacity

utilisation and lean factory footprint

Resulting in strong free cash flow generation

and high return on invested capital.....

4%

15%

9%

5% 8%

16%

16% 18% 18%

11%

12% 10%

6% 10%

15%

23%

30%

36%

0%

10%

20%

30%

40%

FCF to sales ROIC after tax

10% 8% 8%

10%

7% 6% 7% 6% 6%

16,3% 16,0%

13,1%

9,3% 11,7%

15,8%

20,9%

25,4%

28,9%

0%

5%

10%

15%

20%

25%

30%

Organic growth EBIT Margin


12 September 2012

Offering a unique potential of stable

growth, further margin expansion

and increasing dividend yield

Bank of America Merrill Lynch Global Healthcare Conference ... Relations... · Bank of America...

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