leading intimate healthcare · 3/14/2012 · men’s health - surgical urology jj stents launched...

Leading Intimate Healthcare

Lars Einar Hansen

gLars Einar HansenSVP, Corporate Finance

LEADING INTIMATE HEALTHCARE14 March 2012

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.


Agenda

Leading in intimate healthcare

Stable intimate healthcare trends

Financial performance


Coloplast is a leading medtech company specialising inColoplast is a leading medtech company specialising in intimate healthcare needs

C

Americas17%

Group revenue FY 2010/11 by segment Group revenue 2010/11 by geographyFull Year 2010/11 sales: DKK10.2bn

Ostomy Care42%

Continence Care34% Rest of

world10%#1 10%#1

#1

Urology Care9%

Wound & Skin Care

15%

Europe73%

15%#4

#x Global position


Introducing Ostomy Care

• Colorectal cancer (est. 55%)• Bladder cancer (est. 10%)

Key products

Disease areas

• Inflammatory bowel disease (est. 35%)

• Nurses, mainly stoma care nurses• People with a stoma

Wh l l /di t ib ti

Customergroups

• Wholesalers/distribution• Hospital purchasers and GPOs• Surgeons

• Hospital & community nursesCall pointsAssura® 1 and 2 piece2nd generation launched 1996-2000• Hospital & community nurses

• Hospital buyers• Distributors• Dealers• Wholesalers

H i

Call points 2nd generation launched 1996 2000

• Homecare companies

Market data • Global Market size estimated at DKK ~11bn with 4-5% growth

• Market share: 35-40%

SenSura® 1 and 2 pieceLaunched in 2006-2008

SenSura® MioLaunched in 2011

Market share: 35 40%• Europe 50-60%• Americas 0-10%• Rest of the world 35-40%


Introducing continence consumables

• Spinal Cord Injured, SCI• Spina Bifida, SB• Multiple Sclerosis, MS• Benign prostatic hyperplasia &

Disease areas Key products (management products)

• Benign prostatic hyperplasia & prostatectomy patients

• Elderly and diabetics

• Continence or home care nursesCustomer

SpeediCath® Compactintermittent catheter

SpeediCath®intermittent catheter

• People with incontinence problems• Wholesalers/distribution• Hospital purchasers and GPOs• Surgeons

groups

• Rehabilitation centers• Urology wards• Pediatric clinics• Elderly homes

Di t ib t d l & h l l

Launched in 03/04 & 10/11

Launched in 99/00Call points

• Distributors, dealers & wholesalers

Market data • Global Market size estimated at DKK 8-9bn with 4-6% growth

• Market share: 35-40%

Conveen® Optima external catheterLaunched in 05/06

Conveen® Security+ urine bagLaunched 10+ years ago

%• Europe 45-55%• Americas 30-40%• Rest of the world 10-20%


Introducing Urology CareTreatment (surgical) of urological disordersTreatment (surgical) of urological disorders

• Urinary incontinence• Pelvic organ prolapse

E til d f ti

Disease areas Key products (implants and surgical disposables)

• Erectile dysfunction• Enlarged prostate• Kidney and urinary stones

• SurgeonsCustomer• Purchasing departments and

organizations• End customers

Aris® vaginal slingLaunched in 2005Women’s health - Surgical Urology

Virtue® male slingLaunched in 2009Men’s health - Surgical Urology

groups

• Urologists• Uro-gynaecologists• Gynaecologists• Purchasing departments and

organizations

Call points

organizations

Titan® OTR penile implantLaunched in 2008 Men’s health - Surgical Urology

JJ stentsLaunched in 1998 Disposable Surgical Urology

Market data • Global Market size estimated at DKK ~9bn with 4-6% growth

• Market share: 5-10%• Europe 15-25%• Europe 15-25%• Americas 0-10%• Rest of the world 0-10%


Introducing Wound CareIntroducing Wound Care

Chronic wounds• Leg ulcers• Diabetic foot ulcers

Disease areasKey products (Biatain® and Comfeel® range)

• Diabetic foot ulcers• Pressure ulcers

Hospitals• Wound care committees

CustomerGroups &

Biatain® Silicone• Silicone adhesive and

foam dressing• Launched in 2010

• Specialist nurses/doctors• (Purchasers)Community• Specialist nurses/doctors • General practitioners

Biatain® Ag• Antimicrobial foam dressing• Launched in 2002

call points

General practitioners• District/general nurses • Large nursing homes

Market dataGlobal Market si e estimated at DKK• Global Market size estimated at DKK ~12-13bn with 2-4% growth

• Market share: 5-10%• Europe 5-15%• Americas 0-5%

Comfeel® Plus Transparent• Transparent hydrocolloid

dressing• Launched in 1994

Biatain®• High exudate mgt.

foam dressing• Launched in 1998

• Rest of the world 5-15%



Growing elderly populationGrowing elderly population increases customer base for Coloplast products

Demographics

Healthcare reforms

Surgical and di l t dmedical trends

Emerging markets


Underlying demographic development supports future growthUnderlying demographic development supports future growth



Demographics

Economic restraints push for reimbursement reforms, introduction of tenders, and lower

Healthcare reformstreatment cost

Surgical and di l t dmedical trends

Emerging markets


Current global reform landscape… France-Reimbursement reform for OC and CC, expected final recommendation late 2015expected final recommendation late 2015

UK- Restructure of NHS and efficiency savings

Germany- No immediate med dev reforms foreseen, but continued savings measures. - 2010 Pharma review could have a negative spillover on MD

SpainSpain- Reimbursement process frozen but under revision (law of margins)- Price categories discussed

GreeceE i it ti till t bl ld- Economic situation still unstable could

potentially lead to further price cut - Merger of sickness funds

United States-2010-14: Healthcare reform -- 2013 -> ”Supercommittee”

China-Building new reimbursement mechanisms, improving access

Reforms under way

Intensifying reform pressure

Stable reform environment

Russia-2010: Increasing tender business + 15% preferential discounts vs. local manufacturers



Demographics

Healthcare reforms

Surgical and medical trends aretowards earlier detection and cure, eventually reducing

Surgical and di l t d , y g

addressable market for Coloplast treatment products

medical trends

Emerging markets



Demographics

Healthcare reforms

Surgical and di l t d

Expanding healthcare coveragefor populations in emerging

medical trends

for populations in emergingmarkets increases addressablemarket

Emerging markets


Supported by increasing Emerging Market exposure, tl 8% f l b l lcurrently 8% of global sales

Global sales

04/05 05/06 06/07 07/08 08/09 09/10 10/11

BrazilGlobal sales

Russia04/05 05/06 06/07 07/08 08/09 09/10 10/11

India

ChinaEmerging Market sales

04/05 05/06 06/07 07/08 08/09 09/10 10/11

ChinaBRIC (45%)

Other countries (55%)04/05 05/06 06/07 07/08 08/09 09/10 10/11


Improving financial performance driven by…25,4 26,1 30 3.000

%DKKm

• Stable chronic care sales driven by high investments in professionalizing sales activities further

88

00

9 94

1.39

5 1.99

5

2.58

1

16,3 16,013,1 12,8 11,7

15,8

20,9

10

15

20

25

1.000

1.500

2.000

2.500

• Focusing on realising additional improvements in manufacturing by leveraging on new global operations footprint

98

1.00 87

9

749 9 9

693

0

5

0

500

EBIT EBIT margin

• Efficiency gains throughout the organization

• Lower capex to sales from higher capacity 23%

30% 32%

30%

40%

• Lower capex-to-sales from higher capacityutilization and leaner factory footprint

4%

15%9%

5% 8%

16%

16%18%

6%11%

12%10%

6%10%

15%

23%

0%

10%

20%

…..Resulting in strong free cash flow generation and high return on invested capital..... FCF to sales ROIC


Guidance in fixed currencies unchanged, revised in DKKGuidance in fixed currencies unchanged, revised in DKK

Guidance11/12

Guidance11/12 (DKK)

Long-termambition

Sales growth ~6 % (organic) ~8% Market+

Deliver margins in line with EBIT margin ~27% ~28%

gthe best performing medical

device companies *)

CAPEX (DKKm) ~300 ~4% of salesCAPEX (DKKm) 300 4% of sales

Tax rate ~25-26% -

*) The peer group includes the following listed companies: Medtronic Inc., Baxter International Inc., Covidien PLC, Stryker Corp., St. Jude Medical Inc., Boston Scientific Corp., Sonova Holding AG, Smith & Nephew PLC, CR Bard Inc., Getinge AB, WDH A/S, Shandon Weigao Group Medical


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 payersinnovation capabilities for end users and public payers

Solid financial performance High return on invested capitalStrong free cash flow generation


?? ??

? ??? ?? ??

??

??

???

? ? ?? ? ?? ? ?LEADING INTIMATE HEALTHCARE14 March 2012

leading intimate healthcare · 3/14/2012 · men’s health - surgical urology jj stents launched...

Documents