Fagron 2016 Results. Hans Stols, CEO Karin de Jong, CFO

Transcription

1 Fagron 2016 Results Hans Stols, CEO Karin de Jong, CFO 7 February 2017

2 Headlines 2016 Financial highlights Turnover decreases 1.3% (0.0% at constant exchange rates) to million REBITDA of 90.6 million or 21.5% of turnover Turnover and REBITDA in-line with guidance Net financial debt/rebitda-ratio of 3.18 thanks to strong operational cash flow Impairment charge of 48.4 million on Freedom Pharmaceuticals in the US Board of Directors will propose not to distribute dividend over 2016 Strategic and operational highlights Developments FDA 503b facility in Wichita on schedule Results strategic analysis HL Technology expected in the first half of

3 2016 operational review

4 Consolidated turnover (x 1,000) Total growth Total growth CER Organic growth Organic growth CER Fagron 414, , % +0.4% -3.1% -1.8% HL Technology 7,659 9, % -18.1% -19.8% -18.1% Total 421, , % 0.0% -3.4% -2.2% CER = constant exchange rates Positive turnover developments in Europe, Brazil, RoW and for the sterile FSPSactivities in the United States The changes in the reimbursement system for non-sterile compounding in the United States continue to have a negative impact on turnover and profitability of Fagron Essentials and Fagron Trademarks 3

5 Turnover development Excluding HL Technology (in 1,000) Turnover 2015 Europe* South America North America Rest of World Currency effect Acquisitions Turnover 2016 * The divestment of a small compounding pharmacy in Marseille (France) had a negative impact of 3 million on turnover of the Fagron activities in Europe in

6 Fagron Specialty Pharma Services (x 1,000) H H Δ Δ Turnover 76,366 77, % 150, , % REBITDA 16,038 15, % 31,790 33, % REBITDA margin 21.0% 19.9% 21.1% 23.4% Organic turnover growth 1.5% (+1.8% at CER) REBITDA margin down 230bps to 21.1% of turnover United States Strong turnover growth in the sterile FSPS activities New FDA 503b facility fully operational in March 2017 Licensed in 41 states Validation of products nearly completed Europe Divestment of small compounding facility in Marseille, France 5

7 Fagron Trademarks (x 1,000) H H Δ Δ Turnover 28,688 24, % 53,761 50, % REBITDA 9,320 6, % 17,302 15, % REBITDA margin 32.5% 26.3% 32.2% 31.1% Organic turnover growth of 6.8% (+9.2% at CER) REBITDA margin increases by 110bps to 32.2% of turnover Europe: Healthy turnover growth Brazil: Continued strong turnover growth Turnover decline in the United States due to: Structural decrease of total market size due to changed reimbursement system Increased competition amongst the various suppliers Integration and centralization of the activities of Freedom Pharmaceuticals and Fagron in Minneapolis (completed in the fourth quarter of 2016) 6

8 Fagron Essentials (x 1,000) H H Δ Δ Turnover 103, , % 209, , % REBITDA 20,058 18, % 41,030 48, % REBITDA margin 19.4% 18.0% 19.6% 21.6% Organic turnover decline of 8.2% (-6.5% at CER) REBITDA margin decreases by 200bps to 19.6% of turnover Europe: Modest turnover growth Brazil: Continued strong turnover growth Turnover decline in the United States due to: Structural decrease of total market size due to changed reimbursement system Increased competition amongst the various suppliers Integration and centralization of the activities of Freedom Pharmaceuticals and Fagron in Minneapolis (completed in the fourth quarter of 2016) 7

9 2016 financial review

10 Consolidated Gross Margin Gross margin down 1.8% to million ,9 265,2 Gross margin as percentage of turnover 260 down 20bps to 62.9%

11 Consolidated Operating costs Operating costs up 2.0% to million ,2 174,6 In H operating costs decrease by 6.1% to 86.7 million. This decrease was caused by: The integration of Freedom Pharmaceuticals 160 and Fagron in the US 150 The cost savings programme implemented in The launch of the new facility in Wichita results 110 in an increase in operating costs

12 Consolidated REBITDA REBITDA decreases by 8.2% to million or 21.5% of turnover ,7 90,6 In H REBITDA increases by 10.4% 80 to 45.0 million, partly caused by the cost reduction

13 Consolidated Depreciation and Amortization 25 Depreciation and amortization increases from 16.1 million to 21.1 million (+31.1%) 21, ,1 As a result of the changed reimbursement system for non-sterile compounding and the effect on the turnover and profitability of Freedom Pharmaceuticals, Fagron took an impairment charge of 48.4 million

14 Consolidated Financial result (excluding hedge result) 50 45,8 Financial result amounts to million, a decrease of 44.3% compared to million in ,5 This improvement is mainly the result of the Long Term Waivers received on 5 May These waivers have resulted in a change in the expected cash flows in which the additional costs of 10.0 million charged to 2015, resulted in a benefit in

15 Consolidated Net financial debt Net debt decreases by million to million Net financial debt/rebitda-ratio amounts to 3.18 Significantly below the level of 5.02 as agreed in the Long Term Waivers Below the level of 3.25 as established in the RCF and Note Purchase Agreement Interest margins on the loans will be significantly lower in December 2015 Subsequent payments acquisitions Refinancing costs Investments Payments related to Bellevue Net interest paid FX Release of refinancing provision Operating cash flow Capital increase 31 December

16 Q&A

17 Disclaimer Important information about forward-looking statements Certain statements in this presentation may be considered forward-looking. Such forward-looking statements are based on current expectations, and, accordingly, entail and are influenced by various risks and uncertainties. The Company therefore cannot provide any assurance that such forward-looking statements will materialize and does not assume an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. 16