KBC Healthcare Conference Presentation - Fagroninvestors.fagron.com/sites/arseus.com/files/20142003...
Transcript of KBC Healthcare Conference Presentation - Fagroninvestors.fagron.com/sites/arseus.com/files/20142003...
KBC Healthcare
Conference
Presentation © 2013. Arseus. All rights reserved.
Ger van Jeveren, CEO Marieke Palstra, IR Brussels, 20 March 2014
© 2013. Arseus. All rights reserved.
Introduction
2
Pharmaceutical compounding 1,479 FTE € 335 million
Medical ICT solutions 331 FTE € 43 million
Developer and producer of innovative healthcare devices 83 FTE € 8 million
Our markets
3
Founded 2007
Headquarters Rotterdam (NL)
Waregem (BE)
CEO Ger van Jeveren
CFO Jan Peeters
Turnover 2013 € 386 million
Countries 30
FTE 1,986
A strong market with high growth potential
4
Arseus benefits from key market drivers …
… that provide significant potential for long term organic growth
Professional healthcare
market
Non-cyclical industry
Growing healthcare expenditure
Technological innovation
Ageing population
Focus on aesthetics
Increasing public healthcare awareness
5
Arseus House of Success
Operational Excellence
Continuous Strengthening
of Positions
Own Brands/ Innovations
Buy-and-Build Strategy
Added-Value Solutions
Buy-and-build strategy
6
• Julie/Owandy (France)
• Tamda (Czech)
• Unikem (Denmark)
2008
• Gallipot (USA) • DEG (Brazil) • Devroe Instruments
(Belgium)
2010
• Duo-Med (Belgium)
2009
• Pharma Nostra (Brazil)
• Pharma-Cosmetic (Poland)
• Pharma Assist (Netherlands)
• CMS (Belgium)
2011
• Florien (Brazil) • Four compounding pharmacies
(Colombia) • Orbus Pharma (Colombia) • Galfarm (Poland) • ApodanNordic
PharmaPackaging (Denmark) • B&B Pharmaceuticals (USA)
2012
• Freedom Pharmaceuticals (USA)
• HealthConnect (Belgium)
Alternate (Brazil)
2013
Focus on own brands and
innovations
7
2007
45% 55%
Distributions
Arseus brands
90%
10%
Distributions
Arseus brands
2013
Financial highlights 2013
Sales
9
304
355 391
424
492
547
338 386
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2012 2013
80% 14%
1) The income statement of 2012 is resetated for the application of IFRS 5 and IAS 19 Revised.
Revised 1)
Gross Margin
10
143 166
186 202
241 272
189
231
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2012 2013
90%
47.0% 46.7% 47.5% 47.6% 49.2% 49.6%
22%
2) The income statement of 2012 is resetated for the application of IFRS 5 and IAS 19 Revised.
Revised 2)
56.0% 59.7%
REBITDA
11
41,4 47,6
52,7 60,4
72,9
87,4
75,8
98,0
0
10
20
30
40
50
60
70
80
90
100
110
2007 2008 2009 2010 2011 2012 2012 2013
111% 29%
3) The income statement of 2012 is resetated for the application of IFRS 5 and IAS 19 Revised.
Revised 3)
EBIT
12
26,4 30,0 30,5
36,0
46,3
58,1 53,8
73,9
0
10
20
30
40
50
60
70
80
2007 2008 2009 2010 2011 2012 2012 2013
120% 37%
4) The income statement of 2012 is resetated for the application of IFRS 5 and IAS 19 Revised.
Revised 4)
Net Financial Debt
13
51
104 114
166 189
233
289
51
98 106
152 178
223
265
0
50
100
150
200
250
300
350
2007 2008 2009 2010 2011 2012 2013
Net financial debt
Adj. net financial debt
Financial Covenant
14
1,33
2,25 2,19
2,49 2,48 2,64 2,61
0,0
0,5
1,0
1,5
2,0
2,5
3,0
2007 2008 2009 2010 2011 2012 2013
3.25
59,3 47,5
417,9 400,6
32,3 28,3
1,9 15,8
51,3 33,0 40,3
0
100
200
300
400
500
600
Dec 2012 Dec 2013
Assets/Liabilitiesheld for sale
OWC
Other fixed assets
Deferred tax assets
Intangible assets
Tangibles
15
Balance sheet: Assets
15
5) Excluding net debt for discontinued operations.
5)
245,4
155,2
8,3
13,5
2,5
4,5
233,1
289,2
3,7 2,5
69,6 100,7
0
100
200
300
400
500
600
Dec 2012 Dec 2013
Other WC
Financial instruments
Net financial debt
Deferred tax
Provisions
Equity
16
Balance sheet: Liabilities
16
© 2013. Arseus. All rights reserved.
Fagron
FAGRON
R&D SCIENTIFIC
PHARMACEUTICAL
COMPOUNDING COMPANY
Fagron
• Founded in 1990 by Ger van Jeveren
• Started in 1 country with 1 employee and 1 product
• Currently global market leader and active in 30
countries worldwide
• 1,446 employees, including more than 160
pharmacists
• Turnover of € 335 million in 2013
Ger van Jeveren
Founder & CEO
20
Key drivers of pharmaceutical compounding
More individualised
approach
Lesser side effects
Tailor-made
Discontinued drugs
Drug shortages
High-quality and
cheaper alternative
Unique selling point of
the pharmacist
New and unavailable
therapeutic needs Internet
Pharmacist/Prescriber
21
Strategy
Optimise
and Innovate
Compounding
22
Mission
• We are a R&D Scientific Pharmaceutical
Compounding Company that wants to optimise
and innovate compounding in order to widen the
therapeutic scope of the prescriber, to enable tailor-
made pharmaceutical care
• By doing so, we are supporting the unique selling
point of the pharmacist and improve
the quality of life of the patient
Compounding
23
Result driven
Values
Customer is
number 1
Behave as a global
market leader
Speed of execution Innovative
Entrepreneurial
24
Win-Win-Win Strategy
(Hospital)
Pharmacists
Patients
Prescribers
25
Fagron Organisation
Executive Committee
Fagron Group
Constantijn van Rietschoten (43) Marketing Innovation & Global Business
Development
Michaël Hillaert (35) Area Manager Germany, Poland, Nordic, France
and Belgium
Rafael Padilla (34) Area Manager South America, Italy and Iberica
Jake Jackson (32) President North America
Ger van Jeveren (52) Chairman
Jan Peeters (46) Finance
Karin de Jong (35) Controlling
Erik Hoppenbrouwer (48) Operations
René Clavaux (45) Information Management
Fagron
Iberica
Fagron
Italy
Fagron
Czech
Republic
Fagron
Germany
Fagron
UK
Fagron
Colombia
Fagron
France
Fagron
Nordic
Fagron
Nether-
lands
Fagron
Poland
Fagron
Argentina
Fagron
USA
Fagron
Belgium
Fagron
Brazil
Fagron
China
Fagron
Australia
26
Sales Fagron
137 151
179
243
290
335
2008 2009 2010 2011 2012 2013
145%
27
Organic and total turnover growth at constant exchange rates
9,4%
5,9% 7,2% 6,5%
10,9%
13,7%
24,2%
10,5%
18,3%
35,8%
21,8% 20,3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2008 2009 2010 2011 2012 2013
Total growth
Organic growth
28
Geographical Split
72,4%
31,6%
Sales 2011
Europe Americas
60,3%
39,7%
Sales 2013
67,0%
33,0%
Sales 2012
29
REBITDA Fagron
21,0 24,4
28,1
36,0
49,5
64,4
85,0
2007 2008 2009 2010 2011 2012 2013
19.1%
18,6%
20,1%
20.4%
22,2%
25,4%
17.8%
30
Business Model
FCS
Concepts
Equipment & Supplies
Pharmaceutical Raw Materials
31
Pharmaceutical Raw Materials
Business Model
Pharmaceutical Raw Materials
• Amino acids
• Antibiotics
• Cortico steroids
• Excipients
• Extracts
• Hormones
• Nutraceuticals
• Opiates
• Vitamins
• Alcohol and flammable products
32
Equipment & Supplies
Business Model
Equipment & Supplies
• Ointment mills
• Printed Matters
• Packaging
• Capsule fillers
33
Concepts
Business Model
Concepts
• Fagron Advanced Derma
• SyrSpend® SF Superior Suspension
Technology
• Fagron CapsiCards® System
• Fagron Trademark
• Fagron PharmaWhite
• KID concept
• Semi-finished products
• Formulations for compounding
• Selective digestive decontamination
• Bio-identical hormone replacement
therapy
34
FCS
Business Model
Fagron Compounding Services
• Parenteralia
• Sterile
• Oncology
• Intravitreal injections
• CADD medication cassettes
• Orals with hazardous drugs
• Prefilled syringes
• Irrigations with medication
• Easypumps
• Methotrexate formulations
35
Fagron University
Fagron Academy
Fagron Bookstore
Fagron Compounding Articles
Pharmaceutical Compounding Science
36
Fagron Personalisation
Fagron Development
Fagron Quality & Documentation
R&D
Fagron Realisation
37
Fagron Innovations
38
Pentravan®
39
Omeprazole & Syrspend® SF Alka Kit
40
41
Fagron the global number 1 in pharmaceutical compounding
© 2013. Arseus. All rights reserved.
Corilus
Corilus
Focus on total ICT-solutions for medical professionals
44
GP’s
Care teams Family care
Tele-
monitoring
Hospitals Specialists Dentists
GP guard
centers
Pharmacies
Patients
customers
Elderly homes
GPs and pharmacies
Ambulant care providers
32,700 customers
Good interaction with medical care providers
& government
110 developers
Quick response & deployment
Sales
26,7 26,2 28,8
31,1 34,3
38,0
43,4
2007 2008 2009 2010 2011 2012 2013
45
62,5%
REBITDA
margin
29,7% 29.6% 29.4% 29.5% 28.1% 25.1% 27.5%
Geographical Split
83,5%
0,4% 11,1%
Sales 2011
BelgiumNetherlandsFrance
92,2%
5,5% 2,3%
Sales 2013
90,8%
6,8%
2,4%
Sales 2012
46
Customer growth
47
12.000 12.000 12.000 12.000 14.000 14.900
19.365
460 420
7.582 8.723
10.117 11.503
13.374
2007 2008 2009 2010 2011 2012 2013
International
Corilus BE
Business model
48
Software
Training
Premium maintenance services
Hardware & Consumables
Healthcare Consulting
Ambulant care providers
1
5600
Ambulant
nurses
Number 1 or 2 in each segment
49
GP’s
Care teams Family care
Tele-
monitoring
Hospitals Specialists Dentists
GP guard
centers
Pharmacies
Patients
customers
Elderly homes
2
2600
Physio’s
1
+ 3000
GP’s
1
+ 60
Hospitals
1
+ 500
Specialists
1
+ 2300
Pharmacies
1
16 GP
guards
1
1200
Elderly
homes
1
+ 2500
Connections with Ebox
1
+ 2000
Dentists
Ambulant care providers
Elderly homes
GP’s
Creating value by data integration
50
Care teams Family care
Tele-
monitoring
Hospitals Specialists Dentists
Patients
customers
Pharmacies
GPs and pharmacies
GP guard
centers
Outlook 2014
Outlook 2014
52
Arseus expects a turnover from continuing operations of
at least € 480 million with an REBITDA margin from
continuing operations of 26% in 2014
Thank You