coloplast value creation through profitable growth relations... · 2014-06-27 · 15 32 10 15...
TRANSCRIPT
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Coloplast value creation through profitable growth
JP Morgan European Health Care Conference, London, 26 June 2014
Lars Rasmussen, President & CEO
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15
32
10 15 20 25 30 35 40
Dec 08 Dec 13
Coloplast Median Best 1/4
Coloplast EBIT margin versus peer group (%)
07/08 08/09 09/10 10/11 11/12 12/13
Total Shareholder Return ~35% CAGR
63
74
Ennova benchmark Coloplast
Coloplast Engagement Survey 2014
Patient View Survey 2014
• 300 patient groups from 42 countries
• Coloplast #1
In recent years we have delivered great results
Outperforming
peers
Attractive
shareholder return
Motivated
employees
#1 among
our consumers
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How we compete
8
9
Untapped potential in Europe
Increased momentum in Other Developed
Markets – incl. breakthrough in US
Expansion in Emerging Markets – incl.
leadership in select countries
Wound Care leadership in key Emerging
Markets + pockets of growth in mature markets
Global potential in Urology Care
5
6
7
Where we compete
1 Develop and market the world’s best products
4 Secure an efficient setup
2 Interact and build consumers relations
3 Invest in sales pressure
Our strategy remains centred on value creation through profitable organic growth
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We have launched significant innovative consumer oriented products in all areas...
- Continence Care - - Ostomy Care - - Wound Care - - Urology Care -
1
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OC
CC
Acces-
sories
14/15
1 2
15/16
1 2
16/17
1 2
17/18
1 2
New
Mio
...and we have the most exciting pipeline ever
13/14
1 2
UC
WSC
1
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We believe consumer relations will be key to our future success and we reach out to consumers via two programs
Coloplast® Care Direct-to-Consumer
CARE is a retention program Direct-to-Consumer is a marketing program
2
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We currently invest to grow…
Sales force 60%
Consumer programs 25%
Other 15%
Sales investments*...
Emerging Markets 60%
Other Developed Markets
20%
Europe 20%
* 12/13 to Q2 13/14. HQ investments allocated to geographies pro rata.
3
2013 2012
+10%
Rep count development 2012 to 2013
...by area:
...by type:
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...and we have great potential for further sales investments - Key areas for further investments -
Continence Care
Ostomy Care
Wound & Skin Care
Urology Care
European Markets Other Developed
Markets
Emerging Markets
Expand Wound Care
Consumer programs Capture fair share Build markets and
secure leadership
3
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Region Europe plays a pivotal role in the Coloplast portfolio
European markets
Other developed markets
Emerging markets
Region Europe is our strategic foundation... ...from which we are fuelling our global growth
Maximising commercial
potential by pursuing
pockets of growth
Organising for maximum
operational leverage
while prudently
managing cost inflation
- Revenue split of Coloplast Group -
Generate
incremental
cash flow
to fuel growth
globally
- Key means - - Key objective -
1
2
5
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Our growth is likely to increasingly come from overseas and from Wound and Urology Care
US Near to mid term growth opportunity
• Market share gains in Ostomy and Wound Care
• Upgrade/conversion of Continence Care market
Double
digit
growth
6
Emerging Markets Near and long term growth opportunity
• Markets are fundamentally attractive
• Markets must be developed further
Above
25%
growth
7
Wound Care New strategy following successful turnaround
• Leadership in key Emerging Markets
• Pockets of growth in mature markets
High
single digit
growth
8
Urology Care Globalisation strategy
• Capturing synergies
• Leveraging scale
Doubling
the
business
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We have an ambitious long term guidance
7 – 10%
Revenue growth
- annual organic -
0.5 – 1.0%
EBIT margin
- annual expansion - A B
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Mix
Price
Volume
Net effect
Market (all-else-equal)
Relatively
unchanged
~1%
price
pressure
Mid single
digit growth
4 - 5%
value growth
Coloplast efforts
Up
selling
Price
optimization
Share
gains
Volume and value
share gains
Ongoing
value
upgrade
< ~1%
price
pressure
High single
digit growth
7- 10%
value growth
Net effect on Coloplast
We accelerate volume growth and manage price pressure...
A
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...while driving economies of scale in our cost functions
Source: Coloplast annual reports
Scalability potential Investments requirements Outlook
42.1 32.3
0 08/09 12/13
High Medium
30.4 28.4
0 08/09 12/13
Medium High
7.0 4.5 0
08/09 12/13
High Low
4.4 3.2 0
08/09 12/13
Medium Medium
Development
Percentage of revenue
Outlook Cost item
As reported
COGS
Distribution
Admin
R&D
B
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In sum, Coloplast offers an attractive investment case with continued value creation through profitable growth
Stable and attractive market fundamentals
Value creation
Organic
commercial
potential
Scalable
business
model
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