phone conference semi-annual report 2008 · document are to be keppy yy y y pt strictly...
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Phone ConferenceSemi-annual Report 2008
Siegfried – when substance matters
Siegfried GroupSiegfried GroupImportant Notice
This document is solely for use in connection with the presentation held by Siegfried Holding AG. It is furnished to you solely for your information and you may not reproduce it or redistribute to any other person. The contents of this document are to be kept strictly confidential by you and may not be forwarded or disclosed to any other person.p y y y y y p
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Slide 227. August 2008Half-year report A&FC
Review of the 1st half year and market positioningReview of the 1st half-year and market positioningFigures 2008
Slide 327. August 2008Half-year report A&FC
Siegfried GroupSiegfried GroupVision
To be a world-class partner in developing and f t i d th t i h lifmanufacturing drugs that improve human life.
Slide 427. August 2008Half-year report A&FC
Siegfried GroupSiegfried GroupTwo Divisions
Actives Generics
Exclusives Multiclients Classical Generics Inhalation
Slide 527. August 2008Half-year report A&FC
Siegfried GroupSiegfried GroupOverall
• Ongoing growth, revenues CHF 159.6 mio., + 6.8% in local currencies and 1.2% in Swiss francs,despite negative currency influencep g y
• Operating profit CHF 28.5 mio., + 33.2%, incl. contribution of sale of pharmaceuticalproduction facility in Zofingen to Arena and license payment for a bio-generic project
• Net profit CHF 21.9 mio., + 19.6%
• Siegfried Actives revenues CHF 95 1 mio 4 9% in local currencies and 12 7%• Siegfried Actives revenues CHF 95.1 mio., - 4.9% in local currencies and – 12.7% in Swiss Francs
• Siegfried Generics revenues CHF 64 6 mio + 32%Siegfried Generics revenues CHF 64.6 mio., + 32%
Slide 627. August 2008Half-year report A&FC
Siegfried GroupSiegfried GroupOverall
• Good order inflow for the Siegfried Actives Division
• Rapid development of the inhalation technology
• Siegfried continues to grow
Slide 727. August 2008Half-year report A&FC
Siegfried ActivesSiegfried ActivesHighlights of Exclusive Synthesis Business
• Positive market environment
• Good order inflow
• 26 new projects in the last 18 months
• Better capacity utilization
• Two important products going into ramp up phase 4th quarter 2008• Two important products going into ramp-up phase 4th quarter 2008
Slide 827. August 2008Half-year report A&FC
Siegfried ActivesSiegfried ActivesPipeline Exclusive Synthesis
18
14
16
8
10
12
ject
s
4
6
er o
f pro
j
0
2
Product launched Phase III Phase 2 Phase I and preclinical
Num
be
Phase
Slide 927. August 2008Half-year report A&FC
Siegfried ActivesSiegfried ActivesMulti-Client Products: Standard APIs
• Expansion of product range ongoing
• In Europe, interest for opiate derivatives growing
• Sales of nicotine and methadone developing well
Slide 1027. August 2008Half-year report A&FC
Siegfried ActivesSiegfried ActivesMulti-Client Products: Standard APIs
Product RegistrationCommercial available
Buprenorphine HCl CEP / US DMF Codeine phosphate US DMFavailable
productsCodeine phosphate US DMFHydrocodone bitartrate US DMFMorphine sulfate CEP / US DMFpOxycodone HCl CEP / US DMF
Products in development
Buprenorphine baseHydromorphone HClHydromorphone HClNaloxone HClNaltrexone baseNaltrexone HClOxymorphone HCl
Slide 1127. August 2008Half-year report A&FC
Siegfried GenericsSiegfried GenericsHighlights Classical Generics
• Good 1st half 2008 result
• Result includes license fee for successfully completed bio-generics project and sale of pharmaceutical facility in Zofingen
• Build pipeline of projects with different delivery technologies. First dossierssubmitted 1H08
Slide 1227. August 2008Half-year report A&FC
Siegfried GenericsSiegfried GenericsPipeline Classical Generics
Slide 1327. August 2008Half-year report A&FC
Siegfried GenericsSiegfried GenericsInhalation
• Rapid development of device
• Munich lab expansion
• GMP facility in Höchstädt
• All costs for inhalation technology charged to the P&L
Slide 1427. August 2008Half-year report A&FC
Siegfried GenericsSiegfried GenericsTimelines Market Introduction PulmoJet USA
2008 2009 2010 2011 2012
1st clinical batch released
Results pilot pharmakinetics
Start large clinical trials
Submission
Approval and launch
Slide 1527. August 2008Half-year report A&FC
Siegfried GenericsSiegfried GenericsTimelines Market Introduction PulmoJet EU
2008 2009 2010 2011 2012
1st clinical batch released
Results pilot pharmakinetics
Start large clinical trials
Submission
Approval and launch
Slide 1627. August 2008Half-year report A&FC
Siegfried GroupSiegfried GroupGoals
• Ensure long-term profitability and growth
• Grow Siegfried Actives as key-business:- be fast, reliable and responsive- build strategic partnership with key-customers- balance business risk (pipeline build-up, multi-client-products)- further strengthen technological base (e.g. high-potency)
• Build Siegfried Generics:• Build Siegfried Generics:- further invest in technology (inhalation device)- leverage none patent-infringing Malta base
Slide 1727. August 2008Half-year report A&FC
Siegfried GroupSiegfried GroupOutlook 2008 and 2009
Siegfried Group 2008(goal)
2009(goal)(g ) (g )
Sales growth single digit single digit
EBIT (% sales) </= 10 % > 10 %
Slide 1827. August 2008Half-year report A&FC
Business Development 1st Half Year 2008Business Development 1st Half-Year 2008 Key Figures
Slide 1927. August 2008Half-year report A&FC
Business Development 1st Half Year 2008Business Development 1st Half-Year 2008 Consolidated Income Statement
Slide 2027. August 2008Half-year report A&FC
Business Development 1st Half Year 2008Business Development 1st Half-Year 2008 Cash Flow Statement
Slide 2127. August 2008Half-year report A&FC
Business Development 1st Half Year 2008Business Development 1st Half-Year 2008 Balance sheet: Assets
Slide 2227. August 2008Half-year report A&FC
Business Development 1st Half Year 2008Business Development 1st Half-Year 2008 Balance Sheet: Liabilities and Equity
Slide 2327. August 2008Half-year report A&FC
Siegfried GroupSiegfried GroupSiegfried Actives Division : Key Figures
EBITDA Developmentp
• First half 2007 positively impacted byCelgene Asset Deal
9.1
4.4 3.6
• Negative US$ impact of CHF 4.4 million
P d t d l i t d h lf 2008
27.4
17.5
• Product delays into second half 2008 with impact on EBIT
Actives 1sthalf 2007
Asset SaleCelgene
Currencyloss
BaseActives
Actives 1sthalf 2008
Slide 2427. August 2008Half-year report A&FC
Siegfried GroupSiegfried GroupSiegfried Actives Division : Lower than expected sales in 1st half 081st half 08
• Growth in Exlusive Synthesisexpected for second half 2008
107.533 108.882
*95.087 p
• Higher volumes lead toimproved margins for second
82.70387.909
83.514 EBITDAMargin
70.593
62.778
half 2008
• Good development ofmulticlient products
62.301
EBIT
9 %
Margin25 %
18%
32 309
64.297
multiclient products
1 HJ 2005
24.019
1 HJ 2006
9 %
38.289
1 HJ 2007
2%
32.309
1 HJ 2008
20.402
1 HJ 2004
23.612
Outlook 2 HJ 20081. HJ 2005 1. HJ 2006 1. HJ 2007 1. HJ 20081. HJ 2004 Outlook 2. HJ 2008
EBIT MarginEBITDA MarginSales ExclusivesSales MulticlientsSales Multiclients
Slide 2527. August 2008Half-year report A&FC
Siegfried GroupSiegfried GroupSiegfried Actives Division Outlook: Growth from newly introduced projects and opiates franchiseintroduced projects and opiates franchise
Growing sales from 4 new projects; 1 approval2nd half 2008; 3 approvals 1st half 2009 expected95.087
Slow-down of older core productscompensated by introduction of follow-upproducts in 2nd half 2008 and growth inexisting portfolio due to increased customerdemand following supply chain reorganizations
Raw material sales in first half 2008compensated by market introduction of 5 new
Outlook 2. HJ 20081. HJ 2008
• Growth in exclusive synthesis expected forsecond half 2008
C i i l h f 2009
opiate APIs. Signing of contracts expected for 2nd half 2008.
• Continuing sales growth for 2009
• Rejuvenated product portfolio for 2009
Slide 2627. August 2008Half-year report A&FC
Siegfried GroupSiegfried GroupSiegfried Generics Division
• Good sales development in firstEBITDA Development Good sales development in first half 2008
• Special income from Arena
p
13.6
and from licence fee Bio-Generics
R&D t f CHF 5 6 illi11.7
1.0
5.6
13.5
32.2
• R&D costs of CHF 5.6 millionexpensed for inhalation project(1st half 2007 CHF 0.4 million)
Generics 1sthalf 2007
Base Generics
InhalationR&D
LicenceBiogenerics
SaleArena
Generics 1sthalf 2008
Slide 2727. August 2008Half-year report A&FC
Siegfried GroupSiegfried GroupSiegfried Generics Division : Good sales in first half 2008;sharp reduction in second half 2008 expectedsharp reduction in second half 2008 expected
• Sales and margin boostbecause of licence income
Launch of Amlodipin
72 131
first half 2008
• Reduction of base business in47.33848.910
64.557
29%EBITDA Margin
72.131
second half 2008 with negativeimpact on margin
38.44926%
EBIT Margin(Base) 20%
(Base) 24%
1. HJ 2004 1. HJ 2005 1. HJ 2006 1. HJ 2007 Outlook 2. HJ 20081. HJ 2008
EBIT MarginEBITDA MarginLicence BiogenericsSales GenericsSales Generics
Slide 2827. August 2008Half-year report A&FC
Siegfried GroupSiegfried GroupSiegfried Generics Division Outlook: Substantial reduction with existing productsreduction with existing products
13.498
Market introduction 1st half 2008, only smaller product introductions until 2012Licence Biogeneric
64.557
C ti d i d
New Products
Continued pressure on prices andmargins due to changes in the Germanhealth policy. Stock piling bycustomers in the first half year foruncertainities in the German market
Base Portfolio
1 HJ 2008 Outlook 2 HJ 2008
uncertainities in the German market.
• Stock piling of key products in 1st half 2008 due to uncertainities in the Germanhealth policy
1. HJ 2008 Outlook 2. HJ 2008
• Limited product pipeline but continued investments in R&D for projects with significantmarket introductions 2012 onwards
Slide 2927. August 2008Half-year report A&FC
Siegfried GroupSiegfried GroupEBITDA Development
• Arena and licence feeBiogeneric as main positiveg pdrivers of EBITDA in 1st half 08
• Lower sales in exclusive$synthesis, US$ exchange rate
and R&D costs for inhalationtechnology with negative impact
5.61.0
*
1.040.6 9.1
4 4 3 6
13.6
13.5
5.946.3
32
27.4
11.7
4.4 3.6Actives
Generics
17.5
LicenceBiogeneric
Inhalationcosts
BaseGenerics
SaleAtlantis
Asset saleCelgene
3.4
11.7
EBITDA 1sthalf 2007
Currencyloss
BaseActives
BaseCorporate
Sale Arena
Corporate
EBITDA 1sthalf 2008
Slide 3027. August 2008Half-year report A&FC
Business Development 1st Half Year 2008Business Development 1st Half-Year 2008 Net Sales Business Operations
2008 2007 Change Change2008CHF Mio.
2007CHF Mio.
Change%
Change% in lc
Siegfried Actives 95.1 108.9 - 12.7 - 4.9
Siegfried Generics 64.5 48.9 32.0 32.6g
Siegfried Group 159.6 157.8 1.2 6.8
Slide 3127. August 2008Half-year report A&FC
Business Development 1st Half Year 2008Business Development 1st Half-Year 2008 Net Income
2008 2007 ChangeCHF Mio. CHF Mio.
g%
Net sales 159.6 157.8 1.2
EBITDAMargin
46.329.0
40.625.7
14.1
Operating income (EBIT)Margin
28.517.9
21.413.6
33.2
Net income 21.9 18.3 19.6
Slide 3227. August 2008Half-year report A&FC
Business Development 1st Half Year 2008Business Development 1st Half-Year 2008 Capital Expenditure 1st Half of 2008
15.5
11.3
2.71 3
EuropeUSA1.3 USA
Slide 3327. August 2008Half-year report A&FC
Thank you for your attention
Slide 3427. August 2008Half-year report A&FC