fy 2019 financial results preliminary unaudited top …...2018 fy a hip knee extremitiesspine 2019...
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1PATIENT WELL-BEING INNOVATIONMEDICAL EDUCATION
21st January 2020
FY 2019 Financial resultsPreliminary unaudited top-line figures
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Disclaimer
This presentation (the "Presentation") has been prepared by Medacta Group SA ("Medacta" and together with its subsidiaries, "we", "us" orthe "Group"). The information contained in the Presentation does not purport to be comprehensive. Please refer to the financial reportsavailable on our website at https://www.medacta.com/EN/investors.
Unaudited Financial Results
The financial information contained in this Presentation is unaudited.
Forward-looking information
This Presentation has been prepared by Medacta and may include forward-looking information and statements concerning the outlook forour business. These statements are based on current expectations, estimates and projections about the factors that may affect our futureperformance. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects,”“believes,” “estimates,” “targets,” “plans,” “outlook” or similar expressions.
There are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materiallyfrom the forward- looking information and statements made in this Presentation. The important factors that could cause such differencesinclude: changes in the global economic conditions and the economic conditions of the regions and markets in which the Group operates;changes in healthcare regulations (in particular with regard to medical devices); the development of our customer base; the competitiveenvironment in which the Group operates; manufacturing or logistics disruptions; the impact of fluctuations in foreign exchange rates; andsuch other factors as may be discussed from time to time. Although we believe that our expectations reflected in any such forward-lookingstatement are based upon reasonable assumptions, we can give no assurance that those expectations will be achieved.
Alternative Performance Measures
This Presentation may contain information regarding alternative performance measures. Definitions of these measures and reconciliationsbetween such measures and their IFRS counterparts if not defined in the Presentation may be found on the financial reports available onour website at https://www.medacta.com/EN/investors.
THIS PRESENTATION IS NOT AN INVITATION TO PURCHASE SECURITIES OF MEDACTA OR THE GROUP.
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Agenda
FY 2019 Unaudited Revenue
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Medacta confirms strong revenue growth, significantly above market (Unaudited figures)
Significant growth above the market
Organic growth of 14.0% and revenue up to €310.9 million, equal to +11.4% in CC1 (positive FX effect mainly from USD)
Positive contribution from all business lines:• Good and stable growth in the core business Hip and Knee• Good performance in spine business thanks to the strong acceleration in 2H • Successful strategy deployment in the shoulder business along with a fast business expansion
Balanced growth in all the markets: • Europe has grown as expected, despite high market shares and some price pressure (F, BE)• APAC delivered very well thanks to a fine tuned and very well executed marketing strategy• US delivered a good FY performance with a strong reacceleration of spine in 2H• Further expansion in other markets sustained the strong growth in RoW
M.O.R.E. congress: high conversion rate, additional sales generated mainly in 2H 2019, full year effect in 2020
Notes:1. CC: Constant Currency
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153.0 161.1 164.1
96.1 108.8 111.7
19.724.3 25.3
3.8 9.4 9.7
8.1 12.7 5.6 4.6 7.2
2018 FY A Hip Knee Extremities Spine 2019 FY U FX 2019 FY U
Notes:1. Before FX effects2. Extremities include Shoulder and Sports Med Sales
Revenue Bridge by Region
Revenue Bridge by Product
272.6303.7 310.9
(€m)
Hip Knee Spine Extremities
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147.0 156.9 153.0
82.0 98.8 96.1
14.720.1 19.7
1.0 3.9
9.9 16.8 3.0 5.4 (7.2)
2017 FY A Hip Knee Extremities Spine 2018 FY A FX
244.7279.8
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6.7% 20.5% 37.1%302.9%
Constant Currency Growth y-o-y% Reported Growth y-o-y%
14.3% 11.4%5.3% 13.3% 23.4%147.3% 11.4% 14.0%
272.6(€m)
Europe NA APAC Row
116.9 126.0 124.9
68.2 83.2 80.1
50.7 61.2 58.3 8.9
9.4
9.1 15.0 10.5 0.4 (7.2)
2017 FY A Europe NA APAC Row 2018 FY A FX
244.7279.8
7.8% 22.0% 4.7%20.7% 14.3%
124.9 134.8 136.1
80.1 90.7 95.5
58.3 66.0 66.9
9.3 12.212.3
9.9 10.5 7.8 2.9 7.2
2018 FY A Europe NA APAC Row 2019 FY U FX 2019 FY U
11.4%8.0% 13.2% 30.8%13.3% 14.0%
FY’18-19: Revenue bridge by Product and region (Unaudited)
Stable growth rate in Hip, slight reduction due to physiological fluctuations of growth rates year over year.
Knee segment, strong performance, slightly below expectations
Extremities (Shoulder) very good increase in revenue as expected.
Spine acceleration in 2H, only partially recovered the FY results
Europe in line with last year, even with price pressure in some markets (F, BE)
NA positive overall result, Spine in 1H and some delays in acquisition of new customers in 2H contributed to slightly affects the FY growth rate
APAC positive FY result, very strong 2H performance
Commentary
310.9303.7
11.4%
2019 vs 20182018 vs 2017
2019 vs 20182018 vs 2017
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FY’19: Revenue up by 14.0% to €310.9 million (+11.4% in CC) Sales growth in all business lines... (Unaudited)
Strong organic growth in all business lines above market
Steady growth in the core Hip business sustained by AMIS technique
Very good contribution from the Knee thanks to a very integrated proposal of innovative implants and personalised MIKA approach and GMK Single Use Instrumentation
Successful launch of the Shoulder sustained by a complete product portfolio, in all the key markets (FDA clearance for My Shoulder received on December ‘19)
FY Spine results below the expectation, but back on track in 2H thanks to MIS MySpine MC and the successful refocus of the structure on the MedactaapproachNotes:
1. On a constant currency basis2. Extremities include Shoulder and Sports Med sales
23.4%
147.3%
13.3%
5.3%
Spine
Extremities
Knee
Hip
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Growth by products (%)1 Commentary
11.4% 2019 FY CC Growth
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Growth rate in 2H higher than 1H
Hip business slow down in 2H due to delays in getting some anticipated new customers on board
Knee growth rate stable throughout the year
Shoulder growth very strong and in line with expectations
Spine below targets, but back on track in 2H
Commentary1H Growth by products (%)1
Notes:1. On a constant currency basis2. Extremities include Shoulder and Sports Med sales
11.1%
171.3%
13.5%
6.4%
Spine
Extremities
Knee
Hip
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2H Growth by products (%)1
35.0%
132.0%
13.0%
4.2%
Spine
Extremities
Knee
Hip
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1H – 2H - Sales Growth Comparison by products (Unaudited)
11.0% 2019 1H CC Growth 11.8% 2019 2H CC Growth
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FY’19: Revenue up by 14.0% to €310.9 million (+11.4% in CC) ...and in all regions (Unaudited)
Growth by regions (%)1
Well balanced growth in all geographies
Europe, good performance above the market despite price pressure in some countries (France and Belgium)
NA, overall good performance; delays in getting some anticipated new surgeons after the Lugano event and in starting new areas. NA remains a key focus market to sustain our future growth
APAC growth rate slightly above the expectations thanks to a refined marketing strategy in the Australian market and a good performance in Japan
Strong growth in RoW sustained by both new distributors started in new markets and expansion in markets already covered
Commentary
Notes:1. On a constant currency basis
30.8%
13.3%
13.2%
8.0%
RoW
APAC
NA
Europe
11.4% 2019 FY CC Growth
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1H – 2H - Sales Growth Comparison by geographies (Unaudited)
1H Growth by regions (%)1
Good and stable growth rate in Europe Despite price cuts in France and Belgium
NA, positive results in 2H slightly below expectations due to some delays in getting new customers started. Strong execution in 2H in the Spine business
Very strong reacceleration in APAC mainly driven by new surgeons started in 2H and a refined marketing strategy (My Practice)
RoW shows a very strong 2H thanks to new distributors and new markets entered in the last part of the year
Commentary
Notes:1. On a constant currency basis
18.2%
7.6%
17.7%
8.2%
RoW
APAC
NA
Europe
2H Growth by regions (%)1
43.0%
18.6%
9.5%
7.7%
RoW
APAC
NA
Europe
11.0% 2019 1H CC Growth 11.8% 2019 2H CC Growth
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