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Goldman Sachs 8th Annual European Medtech and Healthcare Services ConferenceLars RasmussenPresident & CEO
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Forward-looking statements
The forward-looking statements contained in this presentation includingThe 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 p g pcurrent 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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Agenda
Leading in intimate healthcare
Stable intimate healthcare trends
Our ambition
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Coloplast is a leading medtech company specialising inColoplast is a leading medtech company specialising in intimate healthcare needs...
50 years of innovation and growth: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 , g y, ,and France
~7,000 employees globally Sales (DKK mill)
3,600
9,537
CAGR+23%
1957 19901970 20101980
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...with DKK 9.5bn in annual sales......with DKK 9.5bn in annual sales...
0.8 1.5The Americas
RoWWound & Skin Care
1.63.9
Ostomy Care
7.1 4.1
EuropeUrology & Continence Care
Full year sales 2009/10
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Key messages for 3 quarters (1 October 2010 – 30 June 2011)Key messages for 3 quarters (1 October 2010 30 June 2011)
• 6% organic sales growth in line with guidance. 7 020
7,601
Sales
+8%
Reported growth was 8%
• Continued gross margin improvement from 61% to 64% from higher efficiency in production
7,020
9M 2009/10 9M 2010/11
to 64% from higher efficiency in production
• Very satisfactory EBIT margin of 24%
• Full year guidance for 2010/11:1,425 1,839
Operating profit
+29%
• Full year guidance for 2010/11:
• Organic growth rate around 6% (~7% in DKK)
9M 2009/10 9M 2010/11
• EBIT margin in fixed currencies and DKK of 24% - 25% 20% 24%
Operating margin
9M 2009/10 9M 2010/11
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Stable intimate healthcare trends
Growing elderly population increasescustomer base for Coloplast productsDemographics
Expanding healthcare coverage for populations in emerging marketsincreases addressable market
Emerging markets
Surgical and medical trends are towardsearlier detection and cure, eventually
d i dd bl k t fSurgical and
di l t d reducing addressable market for Coloplast treatment products
Economic restraints push for
medical trends
preimbursement reforms, introduction of tenders, and lower treatment cost
Healthcare reforms
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Three main organic levers will enable us to deliver onThree main organic levers will enable us to deliver on our ambition
We want to...
Organic growth
...and this is our ambition
...serve our customers better than anyone else
provide end user products and services better than
1
2
• Outgrow the market
• Deliver margins in …provide end-user products and services better than anyone else
run our business better than anyone else
2
3
gline with the best performing medical device …run our business better than anyone elsecompanies
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1We continue to investWe continue to investin professionalizing our sales force
The local launch execution initiative focuses on the full launch phase in a local setting
The sales leadership initiative focuses on strengthening the skills of our 1st line sales
managers
S d di d hPre-launch
• Standardized approach to launch in the local markets
• Comprehensive approach to map the key market
Training
Launch
p ydynamics pre-launch
• Maximum focus in local organization during launch
Recruiting KPIsSales rep.
Post-launch
• KPIs and follow-up post-launch
• Clear responsibilities and il t th h t
Incentive schemes
milestones throughout
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Market driven product innovation2
Launched Jan 2011
Market driven product innovation…SCCM is exceeding our expectations
QuantityLaunched Jan 2011
Launched Feb 2011
Launched Apr 2011
Q yIndexed
173
100100
Actual(June 2011)
Forecast
Canada ready to launch as first non-European country
( )
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Market driven product innovation2
Launched Mar 2011
Market driven product innovation…SenSura® Mio
QuantityLaunched Mar 2011
Launched Apr 2011
Q yIndexed
161
100100
Actual(June 2011)
Forecast( )
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We continue to build relationships2We continue to build relationships with our end-users, customers and KOL’s
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We continue the journey3We continue the journeyby creating a more simple and efficient organisation
Lean & agile
Chronic Care Country Model
Lean & agile HQ
Optimizing HQ functions
Country Model
Transforming Global
functions
Global Operations
2008 2009 2010 2011
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Our initiative to3Our initiative toreduce manufacturing costs is running as planned
Operational
Keeping
pexcellence
Lean in volume production
Turn around
Keeping momentum
1
Re-design for manufacturing
Global sourcingTurn around
1
11111
Focus on fixed costs
Cost effective distribution Design for manufacturing & fast ramp-up
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Coloplast value proposition
Close relationships with nurses and end-Close relationships with nurses and end-users provide leading market positions within Ostomy & Continence Care
Stable long-term growthpotential
US and Emerging Markets hold highpotential as well as the Surgical Urologyand Wound Care businesses
Growth and expansionpotential
Strong customer driven i ti biliti
Focus on providing more value for moneyfor end users and public payers
Improving financial Transfer of production to low cost
innovation capabilities for end users and public payers
Improving financialperformance
pcountries improves production efficiencies. Lean administration
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