Leading intimate healthcare - coloplast.com · Leading intimate healthcare 29 April 2010 OC. UCC...
Transcript of Leading intimate healthcare - coloplast.com · Leading intimate healthcare 29 April 2010 OC. UCC...
Leading intimate healthcare29 April 2010
Leading intimate healthcareRoadshow presentation – 1H 2009/10
Leading intimate healthcare29 April 2010
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.
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Leading intimate healthcare29 April 2010
Key messages
• Satisfactory 7% organic sales growth in line with guidance
• Solid gross margin improvement from 58% to 61% from higher efficiency in production
• Very satisfactory EBIT margin of 20%
• Continued strong free cash flow from increased earnings and lower capex
• Share buy-back of DKK 179m in Q2
• Full year guidance upgrade for 2009/10:
• Organic growth rate of 6-7% unchanged. Growth in DKK now 6-7% from previously 5-6%
• EBIT margin in fixed currencies and DKK of 19-20% -previously around 19% in fixed currencies and DKK
• Capex of around DKK 350m - previously around DKK 500m
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4,315 4,568
H1 2008/09 H1 2009/10
Sales
15% 20%
H1 2008/09 H1 2009/10
Operating margin
642 905
H1 2008/09 H1 2009/10
Operating profit
+6%
+41%
Leading intimate healthcare29 April 2010
OC UCC WSC
Europe Americas RoW
Sales overview
• In DKK, revenues were up by 6% to DKK 4.6bn, and the organic growth was 7% in line with guidance
• Ostomy Care organic growth was 7% driven by SenSura® sales, the US, and emerging markets. European growth remains stable
• Urology and Continence Care organic growth was 10% with continued strong performance in both Europe and North America
• Wound and Skin Care sales were flat with continued price competition in main European markets. Restructurings impacting sales negatively
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Sales by business area
Sales by region
7430%
1,94210%
1,8837%
71914%
3686%
3,4816%
DKKm (organic growth)
DKKm (organic growth)
Leading intimate healthcare29 April 2010
SenSura® continues to drive Ostomy Care growth• Organic sales growth of 7%. Reported
growth was 6%
• Biggest growth driver continues to be the SenSura® product line
• Above market growth in US and emerging markets
• Coloplast holds a market leader position with 35-40% global market share
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2,44
2
2,95
7 3,16
5
3,47
4
3,56
9
3,62
1
0
2
4
6
8
10
12
14
16
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
%
% DKKm
DKKm
908
860
897 90
4 922
849
911
939 95
5
928
-2
0
2
4
6
8
10
12
14
1Q 07/08
2Q 07/08
3Q 07/08
4Q 07/08
1Q 08/09
2Q 08/09
3Q 08/09
4Q 08/09
1Q 09/10
2Q 09/10
Revenues Reported growth Organic growth
Leading intimate healthcare29 April 2010
1,46
7
1,70
1
2,33
7
3,31
0
3,44
4 3,69
9
0
5
10
15
20
25
30
35
40
45
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
Very satisfactory Urology and Continence Care growth
• Organic sales growth of 10% and reported growth of 8%
• High growth in sale of intermittent catheters, especially SpeediCath® and SelfCath®
• High growth rates in sales of Peristeen®driven by UK and launch in France
• Continued satisfying sales in our US and European urology business
• Coloplast holds a leading position with a global market share of 30-35% in Continence Care and 5-10% in Urology
%
% DKKm
DKKm
Note: Mentor was acquired 3Q 05/06
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858
825
880
881
912
883
953
951
979
963
0
2
4
6
8
10
12
1Q 07/08
2Q 07/08
3Q 07/08
4Q 07/08
1Q 08/09
2Q 08/09
3Q 08/09
4Q 08/09
1Q 09/10
2Q 09/10
Revenues Reported growth Organic growth
Leading intimate healthcare29 April 2010
Challenging Wound and Skin Care market developments
• Organic revenue flat and reported revenue (1%)
• Continued price pressure in main European markets
• Restructuring programme continues according to plan and impacts growth negatively
• Global market share estimate remains at 5-10%
Note: 2007/08 impacted by inclusion of contract production
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1,05
4 1,12
4 1,20
7 1,25
8
1,45
0 1,50
0
0
2
4
6
8
10
12
14
16
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
%
% DKKm
DKKm
347 35
5
377
371
362
387
379
372
362
381
-4-202468
1012141618
1Q 07/08
2Q 07/08
3Q 07/08
4Q 07/08
1Q 08/09
2Q 08/09
3Q 08/09
4Q 08/09
1Q 09/10
2Q 09/10
Revenues Reported growth Organic growth
Leading intimate healthcare29 April 2010
Very satisfactory gross profit margin development
• Gross profit increased by 10% to DKK 2,779m
• Improved production efficiency and lower salary cost from transfer of production to Hungary and China
• Higher capacity utilization impacts Q2 positively
• Gross margin of 61% compared to 58% same period last year
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3,73
1
3,78
9
4,02
2 4,83
4
4,99
8
5,10
3
61.560.8
59.960.1
59.157.9
50
52
54
56
58
60
62
64
0
1,000
2,000
3,000
4,000
5,000
6,000
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
%DKKm
1,28
4
1,16
9
1,26
2
1,28
3
1,30
0
1,22
3
1,30
1
1,27
9
1,35
4
1,42
5 60.8
57.3 58.6 59.5 59.2
57.7 58.0 56.5
59.0 62.7
40
45
50
55
60
65
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1Q 07/08
2Q 07/08
3Q 07/08
4Q 07/08
1Q 08/09
2Q 08/09
3Q 08/09
4Q 08/09
1Q 09/10
2Q 09/10
%DKKm
Leading intimate healthcare29 April 2010
Reported EBIT margin of 20%
• EBIT increased 41% to DKK 905m
• SGA decreased to 36% of revenue from 39% last year
• Special items of DKK 51m from redundancy payments to workers in Denmark and USA
• Reported EBIT margin was 20% against 15% last year
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988
1,00
0
879
749
994
1,39
5 16.3 16.0
13.1 12.811.7
15.8
0
2
4
6
8
10
12
14
16
18
0
200
400
600
800
1,000
1,200
1,400
1,600
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
%DKKm
EBIT EBIT-margin
340
212
341
101
334
308 34
7
406 45
4
451
16.1
10.4
15.8
4.7
15.2 14.515.5
18.019.8 19.9
0
2
4
6
8
10
12
14
16
18
20
0
50
100
150
200
250
300
350
400
450
500
1Q 07/08
2Q 07/08
3Q 07/08
4Q 07/08
1Q 08/09
2Q 08/09
3Q 08/09
4Q 08/09
1Q 09/10
2Q 09/10
%DKKm
EBIT EBIT-margin
31.2 31.928.8
30.5 30.2 30.5 31.429.4 29.2 29.8
11.1 11.39.4 9.9 8.8 8.2 6.8
4.7 6.0 6.4
3.7 4.4 4.66.8
4.7 4.7 4.3 4.0 4.0 4.80
5
10
15
20
25
30
35
1Q 07/08
2Q 07/08
3Q 07/08
Q4 07/08
Q1 08/09
Q2 08/09
Q3 08/09
Q4 08/09
Q1 09/10
Q2 09/10
DKKm Cost-to-sales ratios (%)
Dist.
Adm.
R&D
Leading intimate healthcare29 April 2010
ROIC after tax was 20% - up 7% points from last year
• The equity amounted to DKK 3,080m, corresponding to an equity ratio of 40% (last year 31%). Return on equity was 36% (last year 32%)
• Net interest bearing debt was DKK 2,307m, down by 32% compared with last year, impacted by purchase of own shares, dividend payment, and positive impact from free cash flow. Net interest bearing debt to EBITDA was 1.0 (last year 1.9)
• NIBD to EBITDA target under review• ROIC after tax amounted to 20%, up 7%-points compared with same period last year
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867
3,06
9
3,18
1
3,42
8
2,29
7
2,30
7
0.6
2.22.0
2.2
1.2
1.0
0.0
0.5
1.0
1.5
2.0
2.5
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
04/05 05/06 06/07 07/08 08/09 Q2 09/10
DKKm
NIBD (EoP)
29% 29% 29% 29% 28%31% 33%
36% 38% 40%
14%9%
14%
4%
13% 12% 14%18% 20% 20%
0%
10%
20%
30%
40%
50%
1Q 07/08
2Q 07/08
3Q 07/08
4Q 07/08
1Q 08/09
2Q 08/09
3Q 08/09
4Q 08/09
1Q 09/10
2Q 09/10
DKKm
Equity ratio ROIC
Leading intimate healthcare29 April 2010
Continued strong cash flow
• Cash flow from operations amounted to DKK 597m impacted by higher earnings and changes in working capital
• CAPEX was DKK 132m, corresponding to a CAPEX-to-sales ratio of 3%.
• Free cash flow was DKK 469m compared with DKK 286m last year
Note: Excluding acquisitions and divestments
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399
415
745
754
571
132
6.4 6.2
9.3 9.0
6.5
2.9
0
1
2
3
4
5
6
7
8
9
10
0
100
200
300
400
500
600
700
800
2004/05 2005/06 2006/07 2007/08 2008/09 H1 09/10
%DKKm
CAPEX Capex-to-sales
919
604
376
653
1,42
8
469
14.7
9.0
4.7
7.7
16.2
10.3
0
2
4
6
8
10
12
14
16
18
0
200
400
600
800
1,000
1,200
1,400
1,600
2004/05 2005/06 2006/07 2007/08 2008/09 H1 09/10
%DKKm
FCF FCF-to-sales
Leading intimate healthcare29 April 2010
Very satisfactory profitability and cash generation
• Gross margin of 61% impacted by better production economy
• Decrease in SGA-to-sales ratio driven by lower admin and distribution costs
• EBIT margin up 5% points to 20%
• NIBD to EBITDA target is under review
• Working capital-to-sales ratio improved by 5% points
• CAPEX-to-sales was 3% impacted by postponements of investments
• ROIC after tax at 20%, up 7% points from last year
H1 09/10 H1 08/09
Gross profit 2,779 2,523Gross margin 61% 58%
SGA to sales 36% 39%
EBIT-margin 20% 15%EBIT adj. 21% 16%
NIBD/EBITDA 1.0 1.9
NWC-to-sales 24% 29%
CAPEX 132 330CAPEX-to-sales 3% 8%
ROIC after tax 20% 13%Free cash flow 469 286
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Leading intimate healthcare29 April 2010
Revised guidance for 2009/10
Guidance09/10
Guidance09/10 (DKK)
Long-termguidance
Sales growth 6-7 % (organic)(unchanged)
6-7%(previously 5-6%) Market +
EBIT margin 19-20%(fixed)(previously ~19%)
19-20%(previously ~19%) >20%
CAPEX (DKKm) around 350(previously ~500) ~6% of sales
Tax rate ~27%(unchanged)
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Leading intimate healthcare29 April 2010
Leading intimate healthcareIntroduction to Coloplast
Leading intimate healthcare29 April 2010
Our mission
Making life easier for peoplewith intimate healthcare needs
Our values
Closeness… to better understandPassion… to make a differenceRespect and responsibility… to guide us
Our vision
Setting the global standardfor listening and responding
Leading intimate healthcare29 April 2010
Coloplast is a leading medtech company specialising in intimate healthcare needs...
50 years of innovation and growth:
Global no. 1 in Ostomy Care
Global no. 1 in Urology & Continence Care
Global no. 4 in Advanced Wound & Skin Care
Headquartered in Denmark
Production in Denmark, Hungary, China, US and France
~7,000 employees globally
1957 1990
3,600
1970
8,820
2009
CAGR+23%
1980
Sales (DKK mill)
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Leading intimate healthcare29 April 2010
...with DKK 8.8bn in annual sales...
Full year sales 2008/09
6.7
1.4
0.7
3.6
3.7
1.5
EuropeThe Americas
RoW
Ostomy Care
Urology & Continence Care
Wound & Skin Care
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Leading intimate healthcare29 April 2010
Stable intimate health care trends
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Growing elderly population increasescustomer base for Coloplast products
Expanding health care coverage for populations in emerging marketsincreases addressable market
Surgical and medical trends are towardsearlier detection and cure, eventuallyreducing 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
Health care reforms
Leading intimate healthcare29 April 2010
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• Colorectal cancer (est. 55%)• Bladder cancer (est. 10%)• Inflammatory bowel disease (est. 35%)
• Nurses, mainly stoma care nurses• People with a stoma• Wholesalers/distribution• Hospital purchasers and GPOs• Surgeons
• Hospital & Community nurses• Hospital buyers• Distributors• Dealers• Wholesalers• Homecare companies
Introducing Ostomy CareKey products
SenSura® 1 and 2 pieceLaunched in 2006-2008
Easiflex®, 2 piece flexLaunched in 2003
Disease areas
Customergroups
Call pointsAssura® 1 and 2 piece2nd generation launched 1996-2000
Distribution ofrevenues
Urostomy
Ileostomy
Colostomy
Leading intimate healthcare29 April 2010
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Market drivers Increasing incidence of colorectal
cancer and inflammable bowel disease, particularly in developing countries
Well developed usage patterns with strong key opinion leaders in Europe
Market limitersReimbursement system reformsUsage patterns geared towards
reuse of products outside Europe
Market trendsNational healthcare reforms
aiming to reduce price and volume Increasing influence of financial
decision makers within distribution and hospitals
Improving treatment of stoma patients in developing economies
• Global Market size estimated at DKK ~10bn with ~4% growth
• Market share: 35-40%
• Europe 50-60%
• Americas 0-10%
• Rest of the world 10-20%
• Main competitors are ConvaTec and Hollister/Dansac
The worldwide market for ostomy devices
Estimated market value split by region
RoW
Europe
North America
Leading intimate healthcare29 April 2010
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• Spinal Cord Injured, SCI• Spina Bifida, SB• Multiple Sclerosis, MS• Benign prostatic hyperplasia &
Prostatectomy patients• Elderly and Diabetics
• Rehabilitation centers• Urology wards• Pediatric clinics• Elderly homes• Distributors, Dealers & Wholesalers
Introducing continence consumables
SpeediCath® Compactintermittent catheterLaunched in 03/04
Conveen® Optima external catheterLaunched in 05/06
Conveen® Security+ urine bagLaunched 10+ years ago
SpeediCath®intermittent catheterLaunched in 99/00
Disease areas
Call points
Key products (management products)
Distribution ofrevenues Intermittent catheters
Urine bagsMale ext. cathetersOther incl. bowel mgt.
• Continence or home care nurses• People with incontinence problems• Wholesalers/distribution• Hospital purchasers and GPOs• Surgeons
Customergroups
Leading intimate healthcare29 April 2010
The market for urinary incontinence management products
Market driversLarge, under-penetrated popula-
tion for intermittent catheters
Moving users away from old solutions (uncoated caths, diapers)
Patient associations’ influence is increasing
Market limitersReimbursement system reforms
(single price reimbursement on product categories)
Commoditization and low-spec competitors entering
Market trendsPurchasing decision centralizedDiagnose Related Groups and
tender business are increasingHealth economic approach
enables price premiums
Estimated market value split by region
RoW
Europe
Americas
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• Global Market size estimated at DKK ~10bn with 5-7% growth
• Market share: 30-35%
• Europe 40-50%
• Americas 15-25%
• Rest of the world 10-20%
• Main competitors AstraTec and Bard
Leading intimate healthcare29 April 2010
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Introducing Urology CareTreatment (surgical) of urological disorders
• Urinary incontinence• Pelvic organ prolapse• Erectile dysfunction• Enlarged prostate• Kidney and urinary stones
• Surgeons• Purchasing departments and
organizations• End customers
• Urologists• Uro-gynaecologists• Gynaecologists• Purchasing departments and
organizations
Aris® vaginal slingLaunched in 2005Women’s health - Surgical Urology
Titan® OTR penile implantLaunched in 2008 Men’s health - Surgical Urology
JJ stentsLaunched in 1998 Disposable Surgical Urology
Virtue® Male slingLaunched in 2009Men’s health - Surgical Urology
Disease areas
Customergroups
Call points
Key products (implants and surgical disposables)
Distribution ofrevenues Men's health
Women's health
DSU
Leading intimate healthcare29 April 2010
Product market for urological disorders
Market driversLarge, under-penetrated
population
Lack of gold standard treatment
Ageing and obese population
Minimally invasive surgeries
Market limitersCost containment Increased competition Increased scrutiny on clinical
proofCrowded IP landscape limits
opportunities
Market trendsLess invasive treatment methodsOffice-based treatmentsCost containment Innovation key source of
competitive advantage
Estimated market value split by region
Americas
EuropeRoW
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• Global Market size estimated at DKK ~10bn with 7-9% growth
• Market share: 5-10%
• Europe 15-25%
• Americas 0-10%
• Rest of the world 0-10%
• Main competitors include American Medical Systems and BSX
Leading intimate healthcare29 April 2010
Introducing Wound CarePage 25
Comfeel® Plus Transparent• Transparent hydrocolloid
dressing• Launched in 1994
Biatain® Silicone• Silicone adhesive and
foam dressing• Launched in 2010
Chronic wounds• Leg ulcers• Diabetic foot ulcers• Pressure ulcers
Hospitals• Wound care committees• Specialist nurses/doctors• (Purchasers)Community• Specialist nurses/doctors • General practitioners• District/general nurses • Large nursing homes
Biatain® Ag• Antimicrobial foam dressing• Launched in 2002
Biatain®• High exudate mgt.
foam dressing• Launched in 1998
Disease areas
CustomerGroups & call points
Distribution ofrevenues (WSC)
Key products (Biatain® and Comfeel® range)
Biatain® rangeComfeel® rangeSkin care Other incl Compeed
Leading intimate healthcare29 April 2010
Product market for advanced wound care
Market driversAgeing, diabetes, and obesity
New and more expensive technologies (e.g. silver)
Investments by industry in sales pressure driving conversion
Market limitersHealthcare reforms Increased competitionDistribution taking an active role
Market trendsCommunity based treatmentsSimple product offeringsCost containment
Estimated market value split by region
Americas
Europe
RoW
Page 26
• Global Market size estimated at DKK ~14bn with 5-7% growth
• Market share: 5-10%
• Europe 10-15%
• Americas 0-5%
• Rest of the world 5-10%
• Main competitors include Convatec, Mölnlycke and S&N
Leading intimate healthcare29 April 2010
Improving financial performance driven by…
Page 27
• Transfer of production to low cost countries
• Efficiency gains throughout the organisation
• Lower capex-to-sales from improving capacityutilization and leaner factory footprint
• Lower Net Working Capital-to-sales from tighter inventory, increased focus onreceivables and payables
…..Resulting in strong free cash flow generation and return on invested capital of 20%......
29% 29% 29% 29% 28% 31% 33% 36% 38% 40%
14%9%
14%
4%
13% 12% 14%18% 20% 20%
0%
10%
20%
30%
40%
50%
1Q 07/08
2Q 07/08
3Q 07/08
4Q 07/08
1Q 08/09
2Q 08/09
3Q 08/09
4Q 08/09
1Q 09/10
2Q 09/10
DKKm
Equity ratio ROIC
988
1,00
0
879
749
994
1,39
5
16.3 16.0
13.1 12.811.7
15.8
0
5
10
15
20
0
200
400
600
800
1,000
1,200
1,400
1,600
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
%DKKm
EBIT EBIT-margin
Leading intimate healthcare29 April 2010
Coloplast value proposition
Page 28
Close relationships with nurses and end-users provide leading market positions within Ostomy & Continence Care
US and Emerging markets hold highpotential as well as the Surgical Urologyand Wound Care businesses
Stable long-term growthpotential
Growth and expansionpotential
Improving financialperformance
Transfer of production to low costcountries improves production efficiencies& leaner administration
Strong customer driven innovation capabilities
Focus on providing more value for moneyfor end users and public payers
Leading intimate healthcare29 April 2010
Appendices
Leading intimate healthcare29 April 2010
The Coloplast share
The Coloplast share has been listed on NASDAQ OMX Copenhagen since 1983
Market cap. DKK ~25bn (USD ~5bn) @ DKK 607 per share
Two share classes: • 3.6 million A shares carry 10 votes (family)• 41.4 million B shares carry 1 vote
(freely traded)• Free float approx. 52% (B shares)
Active sell-side analyst coverage by 9 Nordic banks 8 international banks
As per 15 February, 2010
44%
17%
16%
5%
10%
8%
Ownership structure
Holders of A-shares & family Danish InstitutionalsForeign Institutionals Coloplast A/SOther shareholders (retail) Non-reg. shareholders
Page 30
Leading intimate healthcare29 April 2010
Cash distribution
• Ordinary dividend per share of DKK 7 in 2008/09
• ~34% pay-out ratio (30-35% policy)
• Share buy-back programme of up to DKK 1bn for 2009/10-2010/11
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0%
10%
20%
30%
40%
50%
0
200
400
600
800
1,000
1,200
2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
RatioDKKm
Dividends Share buy-back Pay-out ratio
Leading intimate healthcare29 April 2010
Debt policy and capital markets exposure
• NIBD/EBITDA target of staying between 1.5-2.5 (under review)
• NIBD/EBITDA Q2 2009/10: 1.0
• ~50% unused committed credit facilities (DKK ~2.5bn)
• ~87% of debt at fixed interest rates
• No significant refinancing risks until 2013
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0
2
4
6
8
10
12
14
16
18
0.0
0.5
1.0
1.5
2.0
2.5
2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
Interest cover ratio
NIBD/EBITDA ratio
NIBD/EBITDA Interest coverage
Leading intimate healthcare29 April 2010
Underlying demographic development supports future growthPage 33
Leading intimate healthcare29 April 2010
Introducing Bowel ManagementManagement of faecal incontinence
Disease areas• Faecal incontinence (management
products only)
Customer groups• Spinal Cord Injured, SCI• Spina Bifida, SB• Multiple Sclerosis, MS
Call points• Rehab centers• Pediatric clinics• Urology wards
Key products (management products)
Anal plugLaunched 10+ years ago
Peristeen anal irrigation Launched in 02/03
Distribution of revenues
Anal irrigationAnal plug
Market driversGrowing awareness
Huge under-penetrated and un-served population
New devices addressing the many unmet needs
Market limitersStill taboo area and non-focus for
professionals (doctors)Very little patient awarenessTraining required (nurses, patients)Lack of reimbursement
Market trendsHealth economic approach
enables reimbursementPurchasing decision centralized
Page 34
Leading intimate healthcare29 April 2010
400
2,4002,2002,000
200
1,8001,6001,4001,2001,000
0
Urinary Incontinence
Pelvic Floor Repair
Erectile DysfunctionStone Management
Prostate CancerEndoscopesBPH DevicesUreteral AccessNephrostomy
US Urological Device Market
$Millions
800600
(8-10% CAGR)
1,1001,000
1000
11%
UI - Slings
UI - Bulking
Pelvic Floor Repair
Erectile Dysfunction
2013
2006
2005
2012
2011
2010
2009
2008
2007
$Millions
900800700600500400300200
1,3001,200
Segments Coloplast
competes in
Competition
Source: Coloplast
Urology device market presents large opportunity in the US
Page 35
Estimated market growth
Leading intimate healthcare29 April 2010
Urology market players
Coloplast AMS BSX Cook
Bard Gynecare Medtronic Other
US and EU competitor landscape excl. diagnostics, cap. equipment, and management products, Coloplast segments only.
100
Male incontinence
Enlarged prostate
Female incontinence
Pelvic prolapse
Erectile dysfunction
Stones
Market share, (%)
0Market
size
DKK ~5bn
Page 36
Leading intimate healthcare29 April 2010
Executive management
Lars Rasmussen, CEO (51)With Coloplast since 1988
Educational backgroundE*MBA, Scandinavian International Management Institute, 1995BSc (Eng), Aalborg University, 1986
Management assignments with other Danish companies include: MT Højgaard A/S (BM)TDC A/S (BM)
Lene Skole, CFO (51)With Coloplast since 2005
Educational backgroundBCom, Copenhagen Business School, 1986The A.P. Møller Group International Shipping Education, 1980
Management assignments with other Danish companies include: DFDS A/S (BM)Tryg (BM) Lene Skole, CFO
Lars Rasmussen, CEO
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Leading intimate healthcare29 April 2010
Corporate responsibility – key elements
38
PhthalatesAnimal testing
Code of ConductResponsible lobbying
InjuriesRepetitive work
Employee satisfaction
Quality and safety
Employees
Anti-corruption
Society
Environment
Responsible procurement
Helping suppliers to improve or find others that will
CO2 reductionsWaste reductionAlternatives to PVC
‘Access to Healthcare’ donation programme
Corporate governanceGlobal Compact
Leading intimate healthcare29 April 2010
Corporate responsibility – results over the last three years
• 40% drop in injury rate
• 50% fewer workplaces with high repetitive work
• Phthalates-free alternatives for 60% of products
• 21% less CO2 per produced unit
• 29% less waste per produced unit
• 50 M DKK donation programme launched
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SRI index memberships
External reportingEmployees
Environment and safety
Society
Leading intimate healthcare29 April 2010
Income statement
1H 1H2009/10 2008/09
Net revenue 4,568 4,315
Gross profit 2,779 2,523Gross margin 60.8% 58.5%
SG&A costs -1,631 -1,670R&D costs -200 -202Operating profit (EBIT) before separate items 956 702EBIT margin before separate items 20.9% 16.3%
Separate items -51 -60Operating profit (EBIT) 905 642EBIT margin 19.8% 14.9%
Net financial items -168 -100
Net profit, continuing activities 538 390
DKK million
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Leading intimate healthcare29 April 2010
Balance sheet
DKK million 1H2009/10
1H2008/09
Balance sheet total 7,620 8,087Equity 3,080 2,519Equity ratio (%) 40% 31%
Net interest bearing debt 2,307 3,405Net debt to equity (%) 75% 135%Net debt to EBITDA 1.0 1.9
Invested capital 6,683 7,221
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Leading intimate healthcare29 April 2010
Cash flow
DKK million 1H2009/10
1H2008/09
EBITDA 1,182 915Change in working capital -237 -130Interest and tax -348 -248Other 0 -38Cash flow from operations 597 499
CAPEX (excl. M&A) -132 -330M&A -3 0Other 7 117Cash flow from investments -128 -213
Free cash flow 469 286
Dividends -300 -257Trading of Coloplast shares -152 24Other cash changes -10 -30Total -462 -263
Change in net debt -7 -23
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Leading intimate healthcare29 April 2010
43
MN MAN
VHTAT NYI
ZHU
MOR KVITHI ESP HUM
Innovation & Competence Centre
High Volume Production
Transfer of volume production to Hungary and China
SAR
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Leading intimate healthcare29 April 2010
Transfer of production
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44%30%
15%
35%50%
60%
1%10% 20%
20%10% 5%
2006/07 2008/09 2010/11 est.
USA/FranceChinaHungaryDenmark
Leading intimate healthcare29 April 2010
HumlebækDK
• Pilot Center• Wound care products (foam)• Number of employees in production: ~110
• To be closed 2010
MørdrupDK
• Injection moulded parts and coatedcatheters (SpeediCath)
• Number of employees in production: ~200
EspergærdeDK
• Adhesives and Swiss roll elements• Number of employees in production: ~130
ThistedDK
• Machine development• Ostomy care products• Number of employees in production: ~230
• Site to be closed early 2011 and CCP will move to Mørdrup
KvistgårdDK
• Coloplast Consumer Products (CCP)• Compeed and BandAid• Number of employees in division: ~100
• To be closed before end of 2011
Production sitesPage 45
• To become TechnicalCompetence Center
• To become TechnicalCompetence Center
Leading intimate healthcare29 April 2010
NyirbatorHU
• Catheter products, urisheaths Conveen® Optima, wound care products
• Number of employees in production: ~500
MinneapolisUS
MankatoUS
• Skin care products• Wound care products• Number of employees in production: ~50
TatabanyaHU
• Ostomy care products, adhesive• Continence care products, urine bags• Postponement centre• Number of employees in production: ~1,000
SarlatFR
• Disposable surgical urology products• Number of employees in production: ~150
ZhuhaiCN
• Latex urisheaths, urine bags, local products• Machine building• Number of employees in production: ~600
• Latex products• Men’s and women’s health urology
products and implants• Number of employees in production: ~50
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Contact Investor Relations
Ian S. E. ChristensenDirector of Investor RelationsTel. direct: +45 4911 1301 / office: +45 4911 1800Fax: +45 4911 1555 [email protected]
Gunilla JensenIR CoordinatorTel.: direct: +45 4911 3621 / office: +45 4911 1800Fax: +45 4911 1555 [email protected]
Holtedam 1DK-3050 HumlebækDenmark
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