weifa asa fourth quarter 2016 third quarter 2015 · pain rx and otc cough & cold otc nutra...
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1
Weifa ASA – Fourth quarter 2016– Third quarter 2015
Kathrine Gamborg Andreassen (CEO) and Simen Nyberg-Hansen (CFO)
16 February 2017
2
Presentation outline
Highlights I
Operational performance II
Financial performance III
Appendix V
Outlook IV
3
98
114
333
400
Q4 15 Q4 16 2015 2016
Highlights
Revenues Record quarterly and full-year revenues
- Asan, Pain and Cough & Cold were the main
drivers for growth
- Organic growth exceeded 5% in the fourth
quarter and for the full year
Fourth-quarter adjusted EBITDA of NOK
28.8 million (NOK 24.4 million)
- Adj. EBITDA margin of 25.2% (25.1%)
Full-year adj. EBITDA margin of 22.3%
(21.9%)
Proposed dividend of NOK 1.50 per share
New distribution and licensing pacts
strengthen platform for Nordic expansion
NOK million
+17%
Organic
growth
>5%
+20%
4
Building our Nordic growth platform
Three-year distribution agreement with
Midsona for Asan in Finland
- Launch of first product expected towards the
second half of 2017
Nordic license agreement for new unique
pain product
- Based a fixed ratio of ibuprofen and
paracetamol based on a patented solution from
AFT Pharmaceuticals in New Zealand
- To be marketed under Weifa's own brand name
with expected launch in the second half of 2017
Both agreements are in line with Weifa’s
expressed strategy of building a Nordic
platform for its strong consumer brands
Our goal:
Significant Nordic
consumer health
company
We are:
Norway’s leading
consumer health
company
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Delivering on our strategic priorities
Strengthen leadership within pain
relief
Be the fastest growing cough &
cold player
Expand geographically
Enhance domestic position
Nordic rights for new
pain product line and
Asan launch in Finland
Innovative new products
and strong existing brands
Pharmacy market share
70% 84%
2010 2016
A unique product in a new
category – launched 2016
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Four attractive key categories
Pain Rx and OTC Cough & cold OTC Nutra Dermatology
Number 1 in disinfection
and intimate wash
Number 1 and 2 in niche
segments
Number 1, 2 and 3 in
certain segmentsNumber 1 player
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Presentation outline
Highlights I
Operational performance II
Financial performance III
Appendix V
Outlook IV
8
Rx Pain
Continued growth in prescription drugs
Market share development Rx pain – a growing segment
- Market size NOK 314 million (LTM)
- Growing 7.5% in 2016
Weifa revenue from prescription drugs
rose 2.7% in the fourth quarter
46%
72%
23%
45%
75%
24%
Paralgin forte +Trampalgin
Paracet Rx Ibux Rx
2015 2016
Market share LTM*
*) Market share by volume, 12 months rolling Source: LMI/Farmastat, Nielsen and Weifa
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OTC Pain
– A champion in the non-prescription pain category
Market share development Strong development for the OTC Pain
segment
- Market size NOK 263 million** (LTM)
- Increasing 5% in 2016
Fourth-quarter Weifa revenue for Rx and
OTC pain combined increased 4.5%
- Full-year revenue growth was 4.7%
- Stable high market shares for both Paracet
and Ibux
88%
74%
89%
74%
Paracet + Paracetduo (paracetamol) Ibux + Proxan (NSAID)
2015 2016
Market share LTM*
*) Market share by volume, 12 months rolling Source: LMI/Farmastat, Nielsen and Weifa.
**) The calculation of OTC market sizes in this presentation have been adjusted and are therefore not directly comparable to the figures presented a year-ago.
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19%
14%
21%
Solvivo Bronkyl
2015 2016
OTC Cough & Cold
Product development drives category growth
Market share development OTC cough segment with continued
expansion
- Market size for cough NOK 59 million (LTM)
- Growing 19% in 2016
Fourth-quarter Weifa revenue increased
21% to NOK 10 million
- Full-year revenue growth of 12%
- Positive impact from Solvivo launched in the
third quarter
- Increased sales of Bronkyl
Market share LTM*
*) Market share by volume, 12 months rolling Source: LMI/Farmastat, Nielsen and Weifa
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Complete multi drives nutraceuticals growth
Market share multivitamin The market for minerals, vitamins and
supplements (OTX) is growing
- Market size NOK 381 million in pharmacy
channel (LTM)
- Growing 11% in 2016
Weifa sales of nutraceuticals increased
20% in the fourth quarter
- Full-year revenue growth of 9.7%
- Complete multi was the fastest-growing brand
in the multivitamin segment
- Market share increased to 20%
Market share LTM*
*) Amounts are based on LTM June 2016. All figures are measured in pharmacy purchasing prices. Source:
LMI/Farmastat, Nielsen and Weifa*) Market share by volume, 12 months rolling. Source: Farmastat
15%
20%
2015 2016
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First full year with Asan included in Weifa derma
Market share Norway* Market for shower and intimate wash
products declined by 0.9% (LTM)
- Market size NOK 419 million (LTM)
Fourth-quarter dermatology revenue of
NOK 13.5 million (2.0 million)
- Asan not included in the 2015 numbers
Full-year revenue NOK 59.8 million (9.0
million)
20%
73%
Shower Intimate care
Market share LTM*
Market share by value, 12 months rolling Source: AC Nielsen
*) Category shower including intimate wash measured by value
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Presentation outline
Highlights I
Operational performance II
Financial performance III
Appendix V
Outlook IV
14
Revenue development
Quarterly Annual
8398
Q4 15 Q1 16 Q2 16 Q3 16 Q4 16
Weifa
Asan
194
220 220239
248
282274
292299
310 316
333
400
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Weifa
Asan
NOK million
Note: Historical figures represent reported revenue for the consumer health business in Weifa AS.
NOK million
96 95
114
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Revenue EBITDA and margin
Q4 2016 revenue increased 17% YoY
- Asan operations included from January 2016
- Organic growth 5.4% (excluding Asan) driven
by rising demand for all main categories
Stable Q4 2016 EBITDA margin
Full-year 2016 EBITDA margin increased
to 22.3% (21.9%)
NOK million
Improved underlying margin
NOK million
98
114
Q4 2015 Q4 2016
24,428,8
25% 25%
0,0 %
5,0 %
10,0 %
15,0 %
20,0 %
25,0 %
30,0 %
35,0 %
0,0
5,0
10,0
15,0
20,0
25,0
Q4 2015 Q4 2016
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Consolidated income statement
* Adjusted for employee options of NOK 1.1 million in Q4 2016 (Q4 2015: NOK 1.6 million in option cost and NOK 0.8 million of
acquisition cost)
(NOK 1 000) Q4 2016 Q4 2015 2016 2015
Total revenue and income 114 475 97 568 399 738 332 547
EBITDA 27 717 22 067 80 352 65 583
EBITDA adjusted* 28 826 24 446 89 275 72 909
Depreciation, amortisation and impairment (3 187) (2 832) (12 744) (12 531)
Net finance income/(expense) (3 428) (10 446) (33 452) (27 109)
Profit/(loss) before tax from continuing operations 21 102 8 789 34 156 25 943
Profit/(loss) from continuing operations 8 158 (2 314) 17 951 10 208
Profit/(loss) for the period from discontinued operations - - - (4 492)
Profit/(loss) for the period 8 158 (2 314) 17 951 5 716
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Strong operational cash flow
4Q 2016
Cash flow from operations impacted by build-up in working capital (strong YE sales)
Investing activities reflect low capex
Net cash flow from financing reflects interest paid in the quarter
(NOK 1 000) Q4 2016 Q4 2015 2016 2015
Cash flow from operating activities 13 738 57 687 58 192 49 472
Cash flow from investing activities 124 (1 278) (120 241) 106 970
Cash flow from financing activities (3 140) (32 458) (72 182) (98 776)
Net change in cash and cash equivalents 10 722 23 951 (134 231) 57 666
Cash and cash equivalents beginning period 56 987 177 989 201 940 144 274
Cash and cash equivalents end period 67 709 201 940 67 709 201 940
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Robust balance sheet
Cash and cash equivalents amounted to NOK 67.7 million at the end of 2016
Total borrowings NOK 352 million
Net interest bearing debt of NOK 284 million
Equity ratio of 72%
Proposed dividend of NOK 1.50 per share
(NOK 1 000) 31.12.2016 31.12.2015
Intangible assets 1 253 949 1 150 848
Deferred tax assets 86 736 110 549
Cash and cash equivalents 67 709 201 940
Other assets 103 187 81 026
Total assets 1 511 581 1 544 363
Total equity 1 094 767 1 117 991
Interest-bearing loans 352 051 354 484
Other liabilities 64 763 71 888
Total equity and liabilities 1 511 581 1 544 363
Net interest bearing debt 284 342 152 544
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Presentation outline
Highlights I
Operational performance II
Financial performance III
Appendix V
Outlook IV
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Building the platform for future growth
Delivered on ambition of organic growth and improved
EBITDA margin for 2016
New products within pain and cough & cold planned for
early 2017 launch
Increased Nordic focus
- Upcoming Asan introduction in Finland
- Preparing pan-Nordic launch of unique pain product in 2017-
2018
Weifa expects organic revenue growth for 2017. The
EBITDA margin is expected to improve gradually in a
long-term perspective. Where 2017 is concerned,
Weifa expects an adjusted EBITDA margin on a par
with the 2016 level owing to geographical market
expansion
Weifa - well positioned for continued growth
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Q&A
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Thank you for your attention !
Next event:
1st Quarter Presentation
27 April 2017
23
Presentation outline
Highlights I
Operational performance II
Financial performance III
Appendix V
Outlook IV
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Dermatology Nutraceuticals
NOK million
Category revenue development
NOK million
Pain relief
NOK Million NOK Million
Cough and cold
7773
6063
82
69 7166
86
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16
7,5 7,1
3,6
7,0
8,2
6,7
4,7
7,5
10,0
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16
3,0
4,6
3,12,7
3,2
4,8
2,93,4
3,9
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16
1,8 1,9 2,9 2,3 1,9 2,0 2,9 2,5 1,9
12,412,8 13,6
11,6
Q4 15 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16
Wound treatment and skin care
Asan
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Management Team
Kathrine Gamborg Andreassen
Chief Executive Officer
Ms Gamborg Andreassen joined the Weifa team in August
2012 as head of Consumer Health Business, and replaced
Kjell-Erik Nordby as CEO on 1 June 2015. She is an
experienced marketing professional and has held several top
management positions within the FMCG, food and health
business. Gamborg Andreassen holds an MSc in Business
Strategy & Marketing from the University of Wisconsin.
Simen Nyberg-Hansen
Chief Financial Officer
Mr Nyberg-Hansen joined Weifa as CFO in August 2015 from
the position as a consultant and chair in Dolphitech AS.
Previously he served as CFO at Norman ASA and Viking
Redningstjeneste International AS and served several years
with EY. Nyberg-Hansen is a state authorized public
accountant (CPA) and holds a master degree in Professional
Accountancy from BI Norwegian Business School.
Ole Henrik Eriksen
Chief Operating Officer
Mr Eriksen joined Weifa in September 2014 as VP Business
Development when Aqualis ASA acquired Weifa AS. He has
spent 30 years in the pharma, biotech and medtech industry
and has wide experience from various management and
executive positions, including Nycomed Imaging (now GE
Healtcare), Medinnova (now Inven2). He was the first CEO of
Clavis Pharma ASA, and has worked with the company
through Aqualis ASA and later Weifa AS. Eriksen holds a
MSc. in Organic Chemistry from the Norwegian Institute of
Technology in Trondheim.
Astrid T. Bratvedt
Vice President R&D
Ms Bratvedt has been head of R&D in Weifa since 2009. She
previously headed Weifa's Regulatory and Medical
Department. Bratvedt holds a Master degree in Pharmacy in
addition to post graduate studies in management and project
management.
Morten Hovland Sand
Vice President of Sales
Mr Sand joined Weifa in 2007, and has been Head of Sales
since 2008.He has broad professional experience within
general management, strategy, sales and brand building
related to fast moving consumer goods and retail from
companies such as Coca Cola, Mills and Esso. Sand holds an
BBA from BI Norwegian Business School.
Monica Børter Bekkhus
Head of Marketing
Ms Børter Bekkhus joined Weifa from L’Oréal in 2011, where
she held a position as Marketing Manager Garnier and Franck
Provost. She has broad experience from marketing, PR and
brand building, and became Head of Marketing in October
2016. Børter Bekkhus has a Bachelor of International
Marketing from BI Norwegian Business School and a Master
of Business Administration from Birmingham Business School.
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Top 20 shareholders as of 15 February 2017
NAME SHAREHOLDING % SHARE
WATRIUM AS 4 716 282 12.9%
EUROCLEAR BANK2 596 746 7.1%
MP PENSJON PK 1 867 087 5.1%
HOLTA LIFE SCIENCES 1 824 392 5.0%
STOREBRAND VEKST 1 769 402 4.9%
KLP AKSJENORGE 1 233 205 3.4%
HOLBERG NORGE 1 100 000 3.0%
STOREBRAND NORGE 926 000 2.5%
ARCTIC FUNDS 882 964 2.4%
KLP AKSJENORGE 810 059 2.2%
SOLAN CAPITAL AS 626 650 1.7%
VERDIPAPIRFONDET ALF 612 751 1.7%
VERDIPAPIRFONDET DNB 528 730 1.4%
MUSTAD INDUSTRIER AS 500 000 1.4%
NORDEA NORGE 483 721 1.3%
NORDEA AVKASTNIN 459 924 1.3%
TIGERSTADEN AS 427 760 1.2%
BORGEN INVESTMENT 373 647 1.0%
NORDEA KAPITAL 349 717 1.0%
GOLDMAN SACHS & CO 342 021 0.9%
Total 20 largest shareholders 22 431 058 61.5%
Other shareholders 14 041 011 38.5%
Total number of shares 36 472 069 100.0%