leading intimate healthcare relations... · 2013. 2. 7. · leading intimate healthcare 6 november...

Leading intimate healthcare

6 November 2012

Leading intimate healthcare Roadshow presentation – FY 2011/12


6 November 2012

Forward-looking statements

The 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 current

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.


6 November 2012

Coloplast delivered on guidance with solid performance in 2011/12

10.172

11.023

FY 2010/11 FY 2011/12

Sales

25% 30%

FY 2010/11 FY 2011/12

Operating margin

2.581 3.255

FY 2010/11 FY 2011/12

Operating profit

+8%

+26%

• 6% organic sales growth (8% in DKK), in line with guidance

• Very satisfactory EBIT margin of 30% (29% fixed)

• EPS diluted increased by 21% to DKK 51.5

• ROIC after tax of 38% against 30% last year

• Proposals at annual general meeting 2012:

• Dividend of DKK 20 per share (last year: DKK 14)

• 1:5 stock split

• Full year guidance for 2012/13:

• Growth rate of 6-7% both organic and in DKK

• EBIT margin in fixed currencies and DKK of 31-32%


6 November 2012

Satisfactory Ostomy Care growth supported by growth in accessories • Organic sales growth of 6% in FY 2011/12

• Stable growth rates in the core European

markets and increased growth in the UK

• Very satisfying growth in China and Russia,

but sales growth in Emerging Markets was

overall disappointing

• Biggest growth driver was the SenSura®

product line

• Brava™ continued to contribute nicely

• Q4 organic growth was 7%

• Global market leader with a 35-40% share of a

DKK12-13bn market, growing 4-5% annually

• Market data now includes accessories

3,5

69

3.6

21

3.9

49

4.2

66

4.6

33

0

1

2

3

4

5

6

7

8

9

10

2007/08 2008/09 2009/10 2010/11 2011/12

%

% DKKm

DKKm

939

955

928

1.0

09

1.0

57

1.0

58

1.0

35

1.0

77

1.0

96

1.1

27

1.1

15

1.1

74

1.2

17

0

2

4

6

8

10

12

14

4Q 08/09

1Q 09/10

2Q 09/10

3Q 09/10

4Q 09/10

1Q 10/11

2Q 10/11

3Q 10/11

4Q 10/11

1Q 11/12

2Q 11/12

3Q 11/12

4Q 11/12

Revenues Reported growth Organic growth


6 November 2012

• Organic growth of 8% full year and 6% in Q4

• Very satisfying sales growth driven by intermittent

catheters in the UK and in the US

• Growth stemming from the SpeediCath® portfolio

of ready to use intermittent catheters, mainly the

compact versions

• Growth in sales of urisheaths and urine bags was

driven by UK and Russia

• Continued strong performance within bowel

management

• Q4 was as expected negatively impacted by the

consolidation of wholesalers in the UK in Q3

• Global market leader with a 40-45% share of a

DKK 8-9bn market, growing 4-6% annually.

2.7

59

2.9

12

3.2

02

3.4

56

3.8

31

0

2

4

6

8

10

12

2007/08 2008/09 2009/10 2010/11 2011/12

Strong growth in Continence Care driven by the SpeediCath® range of ready to use intermittent catheters

%

% DKKm

DKKm

753

783

751 8

22

846

883

809

884

880 928

924 1.0

00

979

0

2

4

6

8

10

12

14

16

18

4Q 08/09

1Q 09/10

2Q 09/10

3Q 09/10

4Q 09/10

1Q 10/11

2Q 10/11

3Q 10/11

4Q 10/11

1Q 11/12

2Q 11/12

3Q 11/12

4Q 11/12



6 November 2012

684

787

857

938 1.0

37

0

2

4

6

8

10

12

14

16

2007/08 2008/09 2009/10 2010/11 2011/12

Satisfactory performance in Urology Care following a challenging start in 2011/12

• Organic growth of 6% full year

• Q4 was 10% but against a weak Q4 last year

• Sales growth in penile implants was on a positive

trajectory throughout the year as number of

procedures returned to normal

• Continued challenging performance in women’s

health as sales of female slings continued to

decline

• Restorelle®, synthetic mesh for pelvic floor

repair, continued to deliver good growth rates in a

declining market

• European Urology business recovered following

a weak Q3 and ended the year with satisfactory

performance

• Market share of 10-15% of an DKK 8-9bn

market, growing 3-5% annually (LY 4-6%)

%

% DKKm

DKKm

Note: Mentor was acquired 3Q 05/06

197

197

212

228

221

231

240

240

227

242 265

264

266

0

2

4

6

8

10

12

14

16

18

4Q 08/09

1Q 09/10

2Q 09/10

3Q 09/10

4Q 09/10

1Q 10/11

2Q 10/11

3Q 10/11

4Q 10/11

1Q 11/12

2Q 11/12

3Q 11/12

4Q 11/12



6 November 2012

Another year with challenging conditions in our European Wound Care business

• Full year organic sales declined by 1% in

Wound & Skin Care. In Wound Care sales

declined by 3%.

• Q4 organic growth was 1% in Wound & Skin

Care, while growth was negative 2% in Wound

Care

• Continued challenging market conditions in

Europe, mainly France, Spain and Greece

• China continued to deliver high growth rates

• Skin Care continued to contribute with very

satisfactory growth

• Contract manufacturing of Compeed®¹ returned

to positive growth in Q4, but full year sales

where slightly below last year

• Market share of 5-10% of an around DKK 13bn

market, growing 2-4% annually.

¹Compeed® is a registered trademark of Johnson & Johnson

All figures are Wound & Skin Care including contract manufacturing Note: 2007/08 impacted by inclusion of contract production

1.4

50

1.5

00

1.5

29

1.5

12

1.5

22

-2

0

2

4

6

8

10

12

14

16

2007/08 2008/09 2009/10 2010/11 2011/12

%

%

DKKm

372

362

381 393

393

369 379

396

368

357

389

389

387

-8

-6

-4

-2

0

2

4

6

8

4Q 08/09

1Q 09/10

2Q 09/10

3Q 09/10

4Q 09/10

1Q 10/11

2Q 10/11

3Q 10/11

4Q 10/11

1Q 11/12

2Q 11/12

3Q 11/12

4Q 11/12


DKKm


6 November 2012

Despite less satisfying growth in Emerging Markets we delivered above market growth in 2011/12

DKKm (organic growth)

7.388

2.288

1.347

European markets

Other developed markets

Emerging markets

4%

7%

13%

DKKm (organic growth)

4.633 3.831

1.037

1.522

OC CC UC WSC

-1%

8%

6%

6%

Group revenue FY 2011/12 by segment Group revenue FY 2011/12 by geography

FY 2011/12 sales: DKK11.0bn


6 November 2012

FY 2011/12 gross margin of 67% supported by continued production efficiencies

• Gross profit increased by 12% to DKK 7,345m

• Gross margin of 67%, 2% points up compared with last year

• Improved production efficiency, higher absolute sales and tailwind from exchange rates

added evenly to the 2% point increase compared to last year

3.7

31

3.7

89

4.0

22

4.8

34

4.9

98

5.1

03

5.8

44 6

.568

7.3

45

61,5 60,8

59,9 60,1

59,1 57,9

61,3

64,6

66,7

50

52

54

56

58

60

62

64

66

68

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

% DKKm

1.3

01

1.2

79

1.3

54

1.4

25

1.4

84

1.5

81

1.6

12

1.5

77

1.6

71

1.7

08

1.7

38

1.7

75 1.9

20

1.9

12

58,0 56,5

59,0

62,7

60,5

62,8 63,4 64,0 64,3

66,4 65,5 65,9

67,9 67,1

40

45

50

55

60

65

70

1.000

1.100

1.200

1.300

1.400

1.500

1.600

1.700

1.800

1.900

2.000

% DKKm


6 November 2012

Coloplast delivered record EBIT margin of 30% in 2011/12

• EBIT increased by 26% to DKK 3,255m with an EBIT margin of 30% (LY: 25%)

• Driven by gross margin improvements, declining SGA to sales, lower spend on R&D

and favourable exchange rate impact

• Bad debt provisions for Southern Europe of DKK 67m included in FY 2011/12 (DKK

27m in 2010/11)

• In Q4 the reported EBIT margin was 31% and 30% when adjusted for DKK 30m in

connection with the settlement of a patent dispute

406

454

451 520

570

613

575 651 742

693 770

901

891

17,9

19,8

19,9

21,2

22,6 24,1 23,3

25,1

28,9

26,1

28,6

31,9 31,3

0

5

10

15

20

25

30

35

0

100

200

300

400

500

600

700

800

900

1.000

4Q 08/09

1Q 09/10

2Q 09/10

3Q 09/10

4Q 09/10

1Q 10/11

2Q 10/11

3Q 10/11

4Q 10/11

1Q 11/12

2Q 11/12

3Q 11/12

4Q 11/12

% DKKm

EBIT EBIT margin

29,4 29,2 29,8 28,9 30,3 29,9 30,4

29,1 28,2 29,5 28,6 27,6

29,4

4,7 6,0 6,4 6,2

4,8 5,4 6,0 6,1 6,2 6,1 5,9 5,8 4,8

4,0 4,0 4,8 4,3 4,1 4,4 4,5 4,0 3,4 3,6 3,1 2,8 3,0 0

5

10

15

20

25

30

35

Q4 08/09

Q1 09/10

Q2 09/10

Q3 09/10

Q4 09/10

Q1 10/11

Q2 10/11

Q3 10/11

Q4 10/11

Q1 11/12

Q2 11/12

Q3 11/12

Q4 11/12

DKKm Cost-to-sales ratios (%)

Dist.

Adm.

R&D


6 November 2012

We continue to deliver more profitability on a stable asset base bringing ROIC after tax to 38% - up 8% points

• FY 2011/12 ROIC after tax increased by 8% points to 38%, with a 26% increase in EBIT

on an unchanged level of invested capital

• ROIC after tax in Q4 was 41% against 34% last year

• The equity amounted to DKK 6,042m, corresponding to an equity ratio of 59% and

return on equity of 42%

• Interest bearing assets exceed interest bearing debt by DKK 1.042m as of 30

September 2012

3.0

69

3.1

81

3.4

28

2.2

97

1.5

93 5

39

-1.0

42

2,2 2,0

2,2

1,2

0,6

0,2

0,0

-1,0

-0,5

0,0

0,5

1,0

1,5

2,0

2,5

-1.500

-1.000

-500

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

DKKm

NIBD (EoP) NIBD to EBITDA

36% 38%

40% 39%

44% 43% 46% 47%

49% 50% 53% 54%

59%

18% 20% 20%

24% 26% 27%

24% 28%

34% 32%

35%

40% 41%

0%

10%

20%

30%

40%

50%

60%

70%

4Q 08/09

1Q 09/10

2Q 09/10

3Q 09/10

4Q 09/10

1Q 10/11

2Q 10/11

3Q 10/11

4Q 10/11

1Q 11/12

2Q 11/12

3Q 11/12

4Q 11/12

DKKm

Equity ratio ROIC after tax


6 November 2012

Free cash flow increased by 28% in 2011/12 supporting increasing cash distribution

• Cash flow from operations amounted to DKK 2,649m

• CAPEX increased DKK 88m to DKK 338m, or a CAPEX-to-sales ratio of 3%

• Free cash flow was up 28% to DKK 2.336m compared to last year

• Proposed dividend of DKK 20.00 per share (pay out ratio of 38%). Second part of share

buy-back programme of DKK 500m expected to be completed in 2012/13

Note: Excluding acquisitions and divestments

480

839

754

571

306

250

338

6,6

10,4

9,0

6,5

3,2 2,5

3,1

0

2

4

6

8

10

12

0

100

200

300

400

500

600

700

800

900

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

% DKKm

CAPEX Capex-to-sales

604

376 653

1.4

28

1.4

76 1.8

18

2.3

36

9,0

4,7

7,7

16,2 15,5

17,9

21,2

0

5

10

15

20

25

0

500

1.000

1.500

2.000

2.500

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

% DKKm

FCF FCF-to-sales


6 November 2012

Strong financial performance continued in 2011/12

• Satisfactory gross margin of 67%, up by 2%

points against last year

• SGA decreased by 1% point to 34%

• EBIT margin was 30% against 25% last year

• Working capital to sales improved by 1%

points

• CAPEX-to-sales remains low due to

continued discipline on investments

• ROIC after tax up by 8% points to 38%

• Free cash flow up by 28% to DKK 2,336m

MDKK FY

2011/12

FY

2010/11

Gross profit 7,345 6,568

Gross margin 67% 65%

SGA-to-sales 34% 35%

EBIT 3,255 2,581

EBIT margin 30% 25%

NWC-to-sales 22% 23%

CAPEX 338 250

CAPEX-to-sales 3.1 2.5

Free cash flow 2,336 1,818

ROIC after tax 38% 30%

NIBD (1,042) 539


6 November 2012

Continued performance improvement expected in the guidance for 2012/13

Guidance

12/13

Guidance

12/13 (DKK)

Long-term

ambition

Sales growth 6-7% (organic) 6-7% Market+

EBIT margin 31-32%(fixed) 31-32% Deliver margins in line with

the best performing medical

device companies *)

CAPEX (DKKm) ~400 ~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


6 November 2012

Leading intimate healthcare Introduction to Coloplast


6 November 2012

Our mission

Making life easier for people

with intimate healthcare needs

Our values

Closeness… to better understand

Passion… to make a difference

Respect and responsibility… to guide us

Our vision

Setting the global standard

for listening and responding


6 November 2012

Ostomy Care 42%

Continence Care 35%

Urology Care 9%

Wound & Skin Care

14%

European markets

67%

Other developed markets

21%

Emerging markets

12%

Coloplast is a leading medtech company specialising in intimate healthcare needs

Group revenue FY 2011/12 by segment Group revenue 2011/12 by geography

#1

#4

#1

#x Global position

Full Year 2011/12 sales: DKK11.0bn


6 November 2012

Stable intimate healthcare trends

Growing elderly population increases

customer base for Coloplast products

Expanding healthcare coverage for

populations in emerging markets

increases addressable market

Surgical and medical trends are towards

earlier detection and cure, eventually

reducing addressable market for

Coloplast treatment products

Economic restraints push for

reimbursement reforms, introduction of

tenders, and lower treatment cost

Demographics

Emerging markets

Surgical and

medical trends

Healthcare reforms


6 November 2012

• Colorectal cancer (est. 55%)

• Bladder cancer (est. 10%)

• Inflammatory bowel disease (est. 35%)

• Nurses, mainly stoma care nurses

• People with a stoma

• Wholesalers/distribution

• Hospital purchasers and GPOs

• Surgeons

• Hospital & community nurses

• Hospital buyers

• Distributors

• Dealers

• Wholesalers

• Homecare companies

Introducing Ostomy Care Key products

SenSura® 1 and 2 piece

Launched in 2006-2008

Easiflex®, 2 piece flex

Launched in 2003

Disease areas

Customer

groups

Call points

Assura® 1 and 2 piece

2nd generation launched 1996-2000

Distribution of

revenues*

Urostomy

Ileostomy

Colostomy

*Excluding baseplates and accessories


6 November 2012

Market drivers

Increasing incidence of colorectal

cancer and inflammable bowel

disease, particularly in developing

countries

Well developed usage patterns

with strong key opinion leaders in

Europe

Market limiters

Reimbursement system reforms

Usage patterns geared towards

reuse of products outside Europe

Market trends

National healthcare reforms

aiming to reduce price and volume

Increasing influence of financial

decision makers within distribution

and hospitals

Improving treatment of stoma

patients in developing economies

• Global Market size estimated at DKK 12-13bn with 4-5% growth

• Market share: 35-40%

• European markets 40-50%

• Other developed markets 10-20%

• Emerging markets 35-45%

• Main competitors are ConvaTec and Hollister/Dansac

The market for ostomy devices

Estimated market value split by region

Emerging

markets

European

markets Other

developed

markets

Marketdata now includes accessories


6 November 2012

• Spinal Cord Injured, SCI

• Spina Bifida, SB

• Multiple Sclerosis, MS

• Benign prostatic hyperplasia &

prostatectomy patients

• Elderly and diabetics

• Rehabilitation centers

• Urology wards

• Pediatric clinics

• Elderly homes

• Distributors, dealers & wholesalers

Introducing continence consumables

SpeediCath® Compact

Male intermittent catheter

Launched in January 2011

Conveen® Optima

external catheter

Launched in 05/06

Conveen® Security+ urine bag

Launched 10+ years ago

SpeediCath®

intermittent catheter

Launched in 99/00

Disease areas

Call points

Key products (management products)

Distribution of

revenues

Intermittent catheters

Urine bags

Male ext. catheters

Other incl. bowel mgt.

• Continence or home care nurses

• People with incontinence problems

• Wholesalers/distribution

• Hospital purchasers and GPOs

• Surgeons

Customer

groups


6 November 2012

The market for urinary incontinence management products

Market drivers

Large, under-penetrated popula-

tion for intermittent catheters

Moving users away from old

solutions (uncoated caths, diapers)

Increasing patient association

influence

Market limiters

Reimbursement system reforms

(single price reimbursement on

product categories)

Commoditization and low-spec

competitors entering

Market trends

Purchasing decision centralized

Increasing use of tenders

Health economic approach

enables price premiums


Emerging

markets

European

markets

Other

developed

markets






• Main competitors include AstraTec and Bard

Excluding indwelling catheters (Foley) and Bowel management


6 November 2012

Men's health

Women's health

DSU

Introducing Urology Care Treatment (surgical) of urological disorders

• Urinary incontinence

• Pelvic organ prolapse

• Erectile dysfunction

• Enlarged prostate

• Kidney and urinary stones

• Surgeons

• Purchasing departments and

organizations

• End customers

• Urologists

• Uro-gynaecologists

• Gynaecologists

• Purchasing departments and

organizations

Aris® vaginal sling

Launched in 2005

Women’s health - Surgical Urology

Titan® OTR penile implant

Launched in 2008

Men’s health - Surgical Urology

JJ stents

Launched in 1998

Disposable Surgical Urology

Virtue® male sling

Launched in 2009

Men’s health - Surgical Urology

Disease areas

Customer

groups

Call points

Key products (implants and surgical disposables)

Distribution of

revenues


6 November 2012

The market for urological disorders

Market drivers

Large, under-penetrated

population

Lack of gold standard treatment

Ageing and obese population

Minimally invasive surgeries

Market limiters

Cost containment

Increased competition

Increased scrutiny on clinical

proof

Crowded IP landscape limits

opportunities

Market trends

Less invasive treatment methods

Office-based treatments

Cost containment

Innovation key source of

competitive advantage


Other developed

markets

European

markets

Emerging

Markets





• Emerging Markets 10-20%

• Main competitors include Endo, Ethicon and BSX

Coloplast addressable markets only


6 November 2012

Introducing Wound Care

Comfeel® Plus Transparent

• Transparent hydrocolloid

dressing

• Launched in 1994

Biatain® Silicone

• Silicone adhesive and

foam dressing


Chronic wounds

• Leg ulcers

• Diabetic foot ulcers

• Pressure ulcers

Hospitals

• Wound care committees

• Specialist nurses/doctors

• (Purchasers)

Community


• General practitioners

• District/general nurses

• Large nursing homes

Biatain® Ag

• Antimicrobial foam dressing


Biatain®

• High exudate mgt.

foam dressing


Disease areas

Customer

Groups &

call points

Distribution of

revenues

(WSC)

Key products (Biatain® and Comfeel® range)

Biatain® range

Comfeel® range

Skin care

Wound Care other

Contract manufacturing


6 November 2012

The market for advanced wound care where Coloplast competes

Market drivers

Ageing, diabetes, and obesity

New and more expensive

technologies (e.g. silver)

Investments by industry in sales

pressure driving conversion

Market limiters

Healthcare reforms

Increased competition

Distribution taking an active role

Market trends

Community based treatments

Simple product offerings

Cost containment


Other

developed markets

European

markets

Emerging

markets

• Global Market size estimated at DKK 13bn with 2-4% growth





• Main competitors include Convatec, Mölnlycke and S&N

Excluding Negative Pressure Wound Therapy


6 November 2012

We expect continued value creation driven by...

• Stable market trends in our Chronic Care

business

• Increased focus on growing the business

outside Europe

• Additional improvements in manufacturing by

leveraging on global operations footprint

• European leverage will provide funds for further

investments in sales

• Low capex-to-sales ratio from high capacity

utilisation and lean factory footprint

Resulting in strong free cash flow generation

and high return on invested capital.....

4%

15%

9%

5% 8%

16%

16% 18%

21%

11%

12% 10%

6% 10%

15%

23%

30%

38%

0%

10%

20%

30%

40%

FCF to sales ROIC after tax

10% 8% 8%

10%

7% 6% 7% 6% 6%

16,3% 16,0%

13,1%

9,3% 11,7%

15,8%

20,9%

25,4%

29,5%

0%

5%

10%

15%

20%

25%

30%

Organic growth EBIT Margin


6 November 2012

Coloplast value proposition

Close relationships with nurses and end-

users provide leading market positions

within Ostomy & Continence Care

US and Emerging Markets hold high

potential as well as the Surgical Urology

and Wound Care businesses

Stable long-term growth

potential

Growth and expansion

potential

Solid financial performance High return on invested capital

Strong free cash flow generation

Strong customer driven

innovation capabilities

Focus on providing more value for money

for end users and public payers


6 November 2012

Appendices


6 November 2012

The Coloplast share (COLO’B-KO)

The Coloplast share listed on NASDAQ

OMX Copenhagen since 1983

Market cap. DKK ~57bn (USD ~10.0bn)

@ DKK 1,275 per share (incl. A shares)

Two share classes:

• 3.6 million A shares carry 10 votes

(family)

• 41.4 million B shares carry 1 vote

(freely traded)

• Free float approx. 53% (B shares)

Active sell-side analyst coverage by 25

brokers

As per 30 September, 2012

44%

8%

32%

7%

8% 1%

Share Capital Ownership

Holders of A-shares & family Danish Institutionals

Foreign Institutionals Coloplast A/S

Other shareholders Non-reg. shareholders


6 November 2012

Increasing cash distribution expected

• Proposed ordinary dividend of DKK 20.00

per share against 14.00 last year

• Total dividend of DKK 841m equal to a

pay-out ratio of 38%

• Share buy-back programme of DKK 1bn

to be completed by 2012/13

• First part completed in June 2012

• Second part of DKK 500m expected to be

executed in 2012/13

0%

10%

20%

30%

40%

50%

0

200

400

600

800

1.000

1.200

2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

Ratio DKKm

Dividends Share buy-back Pay-out ratio


6 November 2012

• New debt raised in case of a major acquisition Debt

• Minimum DKK 1 bn in cash and marketable securities Capital reserve

• Excess liquidity is returned to shareholders in the form of dividend and share buy-backs

• Pay-out ratio around 30%

• Share buy-backs of DKK 500m per year

• Potential extraordinary dividends

Dividend policy

unchanged

Our current capital structure policy


6 November 2012

Debt policy and capital markets exposure

• Interest bearing assets and bank & cash

exceeded interest bearing debt by DKK

1,042m

• All committed credit facilities expire in Q3

2012/13

• Interest bearing loans expected to be repaid

by Q3 2012/13

0

10

20

30

40

50

60

70

80

90

0,0

0,5

1,0

1,5

2,0

2,5

2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

Interest cover ratio

NIBD/EBITDA ratio

NIBD/EBITDA Interest coverage


6 November 2012

Aiming for continued higher total shareholder

returns through

Our value creation will come from increased growth

based on a strong new product pipeline combined with

continued cost discipline

Coloplast updated it’s strategy in March 2012 aiming for higher growth and returns

• Stable and predictable top-line growth

• Organic growth above market

• Increased investments in growth

• Continued high margins

• Strong cash flow generation

• Increasing ROIC

• Continued growth in the core developed

markets in Europe

• Increased growth in the developed

markets outside Europe (US, Canada,

Japan and Australia)

• Further expansion and growth in

Emerging Markets

• Stabilization of the European Wound

Care business

• Globalization of Urology Care

• A strong new product pipeline

• Continued cost discipline


6 November 2012

Our pipeline remains exciting - next OC launch planned for slot 2 2012/13 has been changed

Current projects

New projects

14/15

Slot 1 Slot 2

13/14

Slot 1 Slot 2

12/13

Slot 1 Slot 2

Ostomy Care

Continence Care

Urology Care

Wound Care

SpeediCath

Compact Set

2P + URO


6 November 2012

Underlying demographic development supports future growth


6 November 2012

Current global reform landscape

Reforms under way

Intensifying reform pressure

Stable reform environment

France

- Austerity measures (350 mill Euro over a 5

year period on medical devices) announced in

July, will impact all Chronic Care products, to

be implemented most likely spring ‘13.

- Periodic review OC and CC ongoing, but

postponed to 2014/15

UK

- Restructure of NHS and efficiency savings. The

NHS will look to make efficiency savings

through the implementation of Clinical

Commissioning Groups (CCGs). This leads to

local price pressure.

Germany

- No immediate med dev reforms foreseen, but

continued savings measures.

Spain

- Reimbursement process frozen but under

revision (law of margins)

- Price categories discussed

- Co-payment introduced for pensioners in OC

Greece

- Economic situation still unstable could

potentially lead to further price cut

- Merger of sickness funds

United States

- 2010-14: Healthcare reform

- 2013 -> ”Super Committee” cuts take effect

Italy

Austerity package (July ’12) cuts 5 bn Euro over

the next 3 yrs of overall healthcare spending.

(5% on medical devices) Impact for Coloplast is

not clear yet.


6 November 2012

Design principles

• Consolidate on fewer sites

to reduce overheads

• Leverage international

platform in Global

Operations

• Improve efficiency in labour

and material

Global operations footprint and cost structure

38 06 November 2012

Zhuhai

Minneapolis

Tatabánya Nyirbátor

Mørdrup

Thisted

Sarlat

Innovation &

Competency Centre

High Volume Production

Specialised Production

Mankato

60% 25%

10% 5%

Hungary

China

Denmark

US/ France

9%

11%

48%

10%

21% Salary - Direct

Salary - Indirect

Materials (RM & SFG)

Depreciations & amortisations

Other

Production by country*

COGS by cost type*

* Average usage of raw material(RM) and semi finished goods(SFG)

*FY 2011/12 Cost of goods sold, DKK 3,678 million


6 November 2012

Operational Excellence focus areas in our production

Operational

Excellence

Lean in volume production

Re-design for manufacturing

Global sourcing and supplier relations

management

Focus on fixed costs and environment

Cost effective distribution

Design for manufacturing & fast ramp-up


6 November 2012

Introducing Skin Care

InterDry ™ Ag

• Textile with antimicrobial silver

complex


Sween®

• Skin care products of distinction

• Launched in 2003-2005

Moisture associated skin damage

• Incontinence

• Skin folds

Preventative skin care

Hospitals

• Wound care committees


• (Purchasers)

Community


• General practitioners

• District/general nurses

• Large nursing homes

Critic-Aid® Clear / AF

• Only 5 ingredients; simple

yet effective products


Disease areas

Customer

groups &

call points

Product mix

Key products

Barriers Cleansers/Bathing Moisturizers Textile Other

http://www.us.coloplast.com/Products/skincare/Pages/Product.aspx?productid=34103(Coloplast)&categoryid=SkinProtectants(Coloplast)&commcategory=SkinProtectantsFamily(Coloplast)


6 November 2012

Product market for US Skin Care

Market drivers

Ageing and obese population

Nursing shortage

Moisture associated skin damage

Focus on prevention

Market limiters

Cost containment

Increased competition with

private label

Increased scrutiny on Health

Economic outcomes

Market trends

Product and protocol standardization

Vendor consolidation

Cost containment

• US Market size estimated at USD ~1bn with ~5% growth


• Main competitors include

• Medline Industries

• Sage Products

• ConvaTec


6 November 2012

Introducing Bowel Management

Peristeen® Anal Irrigation


• Updated in 2011

Faecal incontinence (management

products only)

Customer groups

• Spinal Cord Injured, SCI

• Spina Bifida, SB

• Multiple Sclerosis, MS

Call points

• Rehab centers

• Pediatric clinics

• Urology wards

Disease areas

Customer

groups &

call points

Distribution of revenues

Key products

Anal plug


Market drivers

• Growing awareness

• Huge under-penetrated and un-

served population

• New devices addressing the many

unmet needs

Market limiters

• Still taboo area and non-focus for

professionals (doctors)

• Very little patient awareness

• Training required (nurses, patients)

• Lack of reimbursement

Market

dynamics

Peristeen® Anal Irrigation

Anal plug


6 November 2012

Executive management

Lars Rasmussen, CEO (53)

With Coloplast since 1988

Educational background

E*MBA, Scandinavian International Management Institute, 1995

BSc (Eng), Aalborg University, 1986

Management assignments with other Danish companies

MT Højgaard A/S (BM)

TDC A/S (BM)

Lene Skole, CFO (53)

With Coloplast since 2005

Educational background

BCom, Copenhagen Business School, 1986

The A.P. Møller Group International Shipping Education, 1980

Management assignments with other Danish companies:

DFDS A/S (BM)

Tryg (BM)

Lene Skole, CFO

Lars Rasmussen, CEO


6 November 2012

Corporate responsibility – selected highlights

98% phthalates-free

alternatives to products

containing phthalates

95% of employees trained in

anti-corruption

Strengthened compliance

Lowest injury rate ever

38% female managers

Much greater data transparency

End users

Employees

Healthcare

professionals

Society

Environment

Responsible

procurement

22 suppliers significantly

improved social and

environmental standards

New 10% CO2 reduction target

Details on Life Cycle

Assessments

24% of waste recycled

DKK 13m project funds

approved for developing

countries partnership

projects

Corporate governance


6 November 2012

Corporate responsibility – external recognitions


6 November 2012

Income statement – FY 2011/12

FY FY

2011/12 2010/11

Net revenue 11,023 10,172

Gross profit 7,345 6,568

Gross margin 66.6% 64.6%

SG&A costs -3,794 -3,592

R&D costs -342 -415

Other Operation Inc/exp 46 20

Operating profit (EBIT) 3,255 2,581

EBIT margin 29.5% 25.4%

Net financial items -300 -124

Net profit, continuing activities 2,194 1,819

DKK million


6 November 2012

Balance sheet – at 30 September 2012

DKK millionFY

2011/12

FY

2010/11

Balance sheet total 10,176 9,218

Equity 6,042 4,452

Equity ratio (%) 59% 48%

Net interest bearing debt -1,042 539

Net debt to equity (%) 0% 12%

Net debt to EBITDA - 0.2

Invested capital 6,295 6,312


6 November 2012

Cash flow – FY 2011/12

DKK millionFY

2011/12

FY

2010/11

EBITDA 3,756 3,108

Change in working capital -133 -260

Net interest payments, etc. -360 -46

Paid tax and other -614 -597

Cash flow from operations 2,649 2,205

CAPEX (excl. M&A) -339 -250

M&A 0 -160

Other 26 23

Cash flow from investments -313 -387

Free cash flow 2,336 1,818

Dividends -587 -422

Trading of Coloplast shares -174 -344

Other cash changes -969 -128

Total -1,730 -894

Net cash flow for the year 606 924


6 November 2012

TCC Mørdrup

DK

• Adhesives

• Wound care products

• Continence care products

• Coloplast Consumer Products

• Number of employees in production: ~350

TCC Thisted

DK

• Machine development

• Ostomy care products


Production sites

Minneapolis

US

Mankato

US

• Skin care products

• Ostomy care accessories


• Urology care products



6 November 2012

Nyírbátor

HU

• Catheter care products,

• Wound care products


Tatabánya

HU

• Ostomy care products,

• Adhesives


• Number of employees in production: ~1,100

Zhuhai

CN


• Ostomy care products

• Machine building

• Number of employees in production: ~1,000

Tata

HU

• Postponement & packaging

• Cross docking

• Warehousing

• Distribution & shipping

• Number of employees: ~175

Sarlat

FR

• Disposable surgical urology products


Contact Investor Relations

Ian S. E. Christensen

Vice President

Investor Relations

Tel. direct: +45 4911 1301 /

office: +45 4911 1800

Fax: +45 4911 1555

[email protected]

Gunilla Jensen

IR Coordinator

Tel.: direct: +45 4911 3621 /

office: +45 4911 1800

Fax: +45 4911 1555

[email protected]

Holtedam 1

DK-3050 Humlebæk

Denmark

Henrik Nord

Senior Manager

Investor Relations

Tel. direct: +45 4911 3108 /

office: +45 4911 1800

Fax: +45 4911 1555

[email protected]

Page 51

mailto:[email protected]



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