Leading intimate healthcare - coloplast.com Relations... · H1 2010/11 H1 2011/12 yg ... H1 2010/11 H1 2011/12 Leading intimate healthcare 26 April 2012. ... gp 2Q 3Q 4Q 1Q 2Q 3Q

Page 1

Leading intimate healthcareRoadshow presentation – Q2 2011/12p Q

Leading intimate healthcare26 April 2012

Forward-looking statementsPage 2

Forward looking statements

The forward-looking statements contained in this presentation, including g p , gforecasts 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

t ti ti t d ti d b d th i f ti il blexpectations, estimates and assumptions and based on the information available to Coloplast at this time.

Heavy fluctuations in the exchange rates of important currencies significantHeavy 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.g p y p y


Key messagesPage 3

Key messages

• 6% organic sales growth in line with guidance. Growth in DKK was 7% 5,004

5,346

Sales

+7%

• Gross margin improved from 64% to 66%

• Satisfactory EBIT margin of 27%H1 2010/11 H1 2011/12

y g

• ROIC after tax of 33% against 26% last year

• Updated strategy1,188 1,463

Operating profit

+23%

p gy

• Full year guidance for 2011/12:

• Organic growth rate around 6% (8% in

H1 2010/11 H1 2011/12

DKK)

• EBIT margin in fixed currencies adjusted to around 28% ( 29% in DKK)

24%27%

Operating margin

( )

H1 2010/11 H1 2011/12


6% organic sales growth (7% reported)Page 4

6% organic sales growth (7% reported)

534745

Group revenue H1 2011/12 by segment Group revenue H1 2011/12 by geographyH1 2011/12 sales: DKK5.3bn

956 9%

8%2,242507 -1%

6% 956

5%

9%6%

6%

3,856

1,852

9%

DKKm (organic growth)

Europe Americas RoW

DKKm (organic growth)

OC CC UC WSC


Satisfactory Ostomy Care growthPage 5

Satisfactory Ostomy Care growth

• Organic sales growth of 6% in H1. Q2 organic

614

16

% DKKm

g g ggrowth was also 6%

• Growth in Europe picked up in Q2, after a disappointing first quarter in especially France 2 7 16

5 3,47

4

3,56

9

3,62

1 3,94

9 4,26

6

6

8

10

12

14

pp g q p y

• Satisfying growth in China and Russia, however, at a lower level than in Q1

2,44

2,95

7 3,1

0

2

4

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

• Biggest growth driver was the SenSura®product line

• Ostomy Care accessories continue to perform

% DKKm

7 96

127

115 10

12

14

well

• Brava® accessories launched in April 849

911

939 955

928 1,

009 1,05

7

1,05

8

1,03

5

1,07

7

1,09 1, 1,1

0

2

4

6

8

2Q 08/09

3Q 08/09

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

-208/09 08/09 08/09 09/10 09/10 09/10 09/10 10/11 10/11 10/11 10/11 11/12 11/12

Revenues Reported growth Organic growth


Continence Care growth back on trackPage 6

• Organic growth of 9% in H1 10

12

Continence Care growth back on track% DKKm

g g %

• Sales growth driven by SpeediCath® in Europe and SelfCath® in the US

2,75

9

2,91

2 3,20

2 3,45

6

4

6

8

10

• Organic growth in Q2 was 13%

• Growth within intermittent catheters in Europe recovered after a weak Q1

0

2

4

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

• Satisfactory growth in the US continued

• Increased growth within Collecting Devices

% DKKm

3 4 0 928

924

12141618

g gfollowing reimbursement issues in Q1

685 74

6

753 78

3

751

822 84

6 883

809

884

880 9

2468

1012

Q /

02

2Q 08/09

3Q 08/09

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



Note: Mentor was acquired 3Q 05/06

Continued recovery in Urology Care growthPage 7

14

16

Continued recovery in Urology Care growth

• Organic growth of 6% and additional 1%

% DKKm

787

857

938

6

8

10

12

g g % %growth from acquired business

• Quarterly organic growth in Q2 was 8%

684

0

2

4

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

• Early indications of normalization as number of penile implant procedures increased for the second consecutive quarter.

• Restorelle® continued satisfactory growth

• Declining sales growth in women’s health, as sales of female slings continued to decline

% DKKm

265

12141618

g

• Sales of endourology products in Europe back on track after recalls in Q1 19

8 207

197

197 21

2 228

221 23

1 240

240

227 24

2 2

02468

1012

Q /

-20

2Q 08/09

3Q 08/09

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



Note: Mentor was acquired 3Q 05/06

Wound & Skin CarePage 8

Wound & Skin CareChallenges remain in the Wound Care business

• H1 sales growth was -1% both organically 0 529

12 14

16% DKKm

g % g yand in DKK. Wound Care sales growth was negative 5%

• Quarterly organic growth in Q2 was 1%, 207 1,25

8

1,45

0 1,50

0

1,5

1,51

4

6

8

10

12

Q y g g Q ,while organic growth in Wound Care was negative 4%

• Continued challenging wound care market

1,05

4 1,12

4 1,2

-2

0

2

4

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

conditions in European markets, mainly France, Spain and Greece

• Markets outside Europe, like China and

% DKKm

387

9 1

393

393

9

396

389

468

10

p ,Brazil, continue to deliver high growth rates

• Satisfactory growth within Skin Care and contract manufacturing of Compeed

3

379

372

362

38

369 37

9

368

357

-6-4-2024

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Qg p

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

-86 2Q

08/093Q

08/094Q

08/091Q

09/102Q

09/103Q

09/104Q

09/101Q

10/112Q

10/113Q

10/114Q

10/111Q

11/122Q

11/12



With our updated strategy we want to continue on the path set out in 2009….

Page 9

Aiming for continued higher total shareholder Our value creation will come from increased growth

based on a strong new product pipeline combined with g greturns through continued cost optimizations

• Stable and predictable top-line growth

O i th b k t

• Continued growth in the core developed markets in Europe

• Organic growth above market

• Increased investments in growth

• Continued high margins

• Increased growth in the developed markets outside Europe (US, Canada, Japan and Australia)Continued high margins

• Strong cash flow generation

• Increasing ROIC

• Further expansion and growth in Emerging Markets

• Stabilization of the European Wound• Stabilization of the European Wound Care business

• Globalization of Urology Care

• A strong new product pipeline

• Continued cost optimizations


Gross profit margin of 66%

Page 10

Gross profit margin of 66%• Gross profit increased by 10% to DKK 3,513m

• Gross margin of 66% compared to 64% same period last yearGross margin of 66% compared to 64% same period last year

• Improved production efficiency was the main driver

64 6 668 000

%DKKm701 900

%DKKm

4 ,844

6,56

8 61.560.8

59.960.1

61.3

64.6

60

62

64

66

5,000

6,000

7,000

8,000

581

,612

577 1,

671

1,70

8

1,73

8

1,77

5

57.7 58.0 56.5

59.0

62.7 60.5

62.8 63.4 64.0 64.3 66.4 65.5 65.9

60

65

70

1,500

1,600

1,700

1,800

1,900

3,73

1

3,78

9

4,02

2 4,83

4

4,99

8

5,10

3

5

59.157.9

52

54

56

58

1,000

2,000

3,000

4,000

1,22

3 1,30

1

1,27

9 1,35

4 1,42

5

1,48

4 1,5 1,

1,5

45

50

55

1,100

1,200

1,300

1,400

,500

50 0 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

1

40 1,000 2Q

08/093Q

08/094Q

08/091Q

09/102Q

09/103Q

09/104Q

09/101Q

10/112Q

10/113Q

10/114Q

10/111Q

11/122Q

11/12


EBIT margin of 27%Page 11

EBIT margin of 27%

• EBIT increased by 23% to DKK 1,463m

• SGA costs were 35% of revenue compared to 36% same period last year• SGA costs were 35% of revenue compared to 36% same period last year

• One-offs of DKK 65m and bad debt provisions of DKK 32m affecting H1 ratios

• Reported EBIT margin was 27% against 24% last year

28 9 28 6%DKKm

DKK C t t l ti (%)

13

5 651

742

693 77

0

17.919.8

19.921.2

22.624.1 23.3

25.1

28.926.1

28.6

20

25

30

600

700

800

900

30.5 31.429.4 29.2 29.8 28.9 30.3 29.9 30.4 29.1 28.2 29.5 28.6

25

30

35

DKKm Cost-to-sales ratios (%)

Dist.

308 34

7 406 45

4

451 52

0 570 61

57514.5

15.5

19.8

5

10

15

200

300

400

500

7.6 6.84.7 6.0 6.4 6.2 4.8 5.4 6.0 6.1 6.2 6.1 5.9

5

10

15

20 Adm.

R&D

0 0

100

2Q 08/09

3Q 08/09

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

EBIT EBIT margin

4.7 4.3 4.0 4.0 4.8 4.3 4.1 4.4 4.5 4.0 3.4 3.6 3.10 Q2

08/09Q3

08/09Q4

08/09Q1

09/10Q2

09/10Q3

09/10Q4

09/10Q1

10/11Q2

10/11Q3

10/11Q4

10/11Q1

11/12Q2

11/12


ROIC after tax was 33% - up 7% points from last yearPage 12

ROIC after tax was 33% up 7% points from last year

• The equity amounted to DKK 4,968m, corresponding to an equity ratio of 53% and return on equity of 42%q y %

• Net interest bearing debt decreased by DKK 162m to DKK 377m• Q2 ROIC after tax was 35% against 24% in Q2 last year

DKKm60%

DKKm

3,06

9

3,18

1

3,42

8

2.22.0

2.2

1 2 1.5

2.0

2.5

2,500

3,000

3,500

4,000

31% 33%36% 38% 40% 39%

44% 43%46% 47% 49% 50%

53%

28%

34% 32%35%40%

50%

60%

2,29

7

1,59

3 539

377

1.2

0.6

0.10.5

1.0

500

1,000

1,500

2,000

12% 14%18% 20% 20%

24% 26% 27%24%

28%

10%

20%

30%

0.2 0.0 0 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 H1

2011/12

NIBD (EoP) NIBD to EBITDA

0%2Q

08/093Q

08/094Q

08/091Q

09/102Q

09/103Q

09/104Q

09/101Q

10/112Q

10/113Q

10/114Q

10/111Q

11/122Q

11/12

Equity ratio ROIC after tax


Continued strong cash generationPage 13

• Cash flow from operations amounted to DKK 801m, compared to DKK 455m last year. Increased earnings lower increase in working capital compared to same period last year and decrease inearnings, lower increase in working capital compared to same period last year and decrease in income tax paid. Partly off-set by realised currency exchange losses

• CAPEX was DKK 144m, or a CAPEX-to-sales ratio of 3%

• Free cash flow was DKK 668m compared with DKK 179m same period last year

%DKK %DKK

839

754

6 6

10.4

9.0

6 58

10

12

600

700

800

900

%DKKm

,978

16.2 15.5

19.4

20

25

2,000

2,500

%DKKm

480 57

1

306

250

6.6 6.5

3.2 2.5 2.7

2

4

6

200

300

400

500

04

53

1,42

8

1,47

6

1,

668

9.0

4.7

7.7

12.5

5

10

15

500

1,000

1,500

N t E l di i iti d di t t

144

0

2

0

100

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 H1 2011/12

CAPEX Capex-to-sales60

376 6 6

0 0 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 H1

2011/12

FCF FCF-to-sales


Note: Excluding acquisitions and divestments

Strong financial performance continued in H1 2011/12

Page 14

Strong financial performance continued in H1 2011/12

H1 H1• Continuing production efficiency

• SGA to sales improved despite increased one-offs

H1 2011/12

H12010/11

Gross profit 3,513 3,189Gross margin 66% 64%

• EBIT margin up 3% points to 27%

• Working capital to sales at same level as last year

Gross margin 66% 64%

SGA-to-sales 35% 36%

EBIT margin 27% 24%year

• Capex-to-sales remains low due to continued discipline on investments

NWC-to-sales 23% 23%

CAPEX 144 135• ROIC after tax at 33%, up 7% points from

last year

• Free cash flow amounted to DKK 668m,

CAPEX-to-sales 3% 3%

Free cash flow 668 179

ROIC after tax 33% 26%compared to DKK 179m last year

ROIC after tax 33% 26%

NIBD/EBITDA 0.1 0.7


Guidance for 2011/12, EBIT margin upward adjustedPage 15

Guidance for 2011/12, EBIT margin upward adjusted

Guidance11/12

Guidance11/12 (DKK)

Long-termambition

Sales growth ~6 % (organic) ~8% Market+

Deliver margins in line with EBIT margin ~28%(fixed) ~29%

gthe best performing medical

device companies *)

CAPEX (DKKm) ~300 ~4% of salesCAPEX (DKKm) 300 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


Page 16

The capital structure changes as a consequence of ourThe capital structure changes as a consequence of our updated strategy

• The Net Debt to EBITDA range of 1.5 to 2.5 is cancelled

• New debt raised in case of a larger acquisitionDebt

• Minimum DKK 1 bn in cash and marketable securitiesCapital

• Minimum DKK 1 bn in cash and marketable securitiesreserve

• 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 500 mil per year• Potential extraordinary dividends

Dividend policy

unchanged • Potential extraordinary dividendsunchanged


Page 17

Leading intimate healthcareLeading intimate healthcareIntroduction to Coloplast


Page 18

Our mission

Making life easier for peoplewith intimate healthcare needswith intimate healthcare needs

Our values

Closeness… to better understandPassion… to make a differenceRespect and responsibility to guide usRespect and responsibility… to guide us

Our vision

Setting the global standardfor listening and responding


Coloplast is a leading medtech company specialising inPage 19

Coloplast is a leading medtech company specialising in intimate healthcare needs

C

Americas17%

Group revenue FY 2010/11 by segment Group revenue 2010/11 by geographyFull Year 2010/11 sales: DKK10.2bn

Ostomy Care42%

Continence Care34% Rest of

world10%#1 10%#1

#1

Urology Care9%

Wound & Skin Care

15%

Europe73%

15%#4

#x Global position


Page 20

Stable intimate healthcare trends

Growing elderly population increasescustomer base for Coloplast productsDemographics

Expanding healthcare coverage for populations in emerging marketsincreases addressable market

Emerging markets

Surgical and medical trends are towardsearlier detection and cure, eventually

d i dd bl k t fSurgical and

di l t d reducing addressable market for Coloplast treatment products

Economic restraints push for

medical trends

preimbursement reforms, introduction of tenders, and lower treatment cost

Healthcare reforms


Introducing Ostomy CarePage 21

• Colorectal cancer (est. 55%)• Bladder cancer (est. 10%)

Key products

Disease areas

• Inflammatory bowel disease (est. 35%)

• Nurses, mainly stoma care nurses• People with a stoma

Wh l l /di t ib ti

Customergroups

• Wholesalers/distribution• Hospital purchasers and GPOs• Surgeons

• Hospital & community nursesCall pointsAssura® 1 and 2 piece2nd generation launched 1996-2000• Hospital & community nurses

• Hospital buyers• Distributors• Dealers• Wholesalers

H i

Call points 2nd generation launched 1996 2000

• Homecare companies

Distribution ofrevenues

Urostomy

SenSura® 1 and 2 pieceLaunched in 2006-2008

Easiflex®, 2 piece flexLaunched in 2003

Ileostomy

Colostomy


The market for ostomy devicesPage 22

• Global Market size estimated at DKK 11bn with 4-5% growth

The market for ostomy devices

Estimated market value split by region

• Market share: 35-40%

• Europe 40-50%

• Americas 0-10%

RoW

Europe

• Rest of the world 35-45%

• Main competitors are ConvaTec and Hollister/Dansac Americas

Market drivers Market limiters Market trends

Marketdata does not include OC accessories

Market drivers Increasing incidence of colorectal

cancer and inflammable bowel disease, particularly in developing countries

Market limitersReimbursement system reformsUsage patterns geared towards

reuse of products outside Europe

Market trendsNational healthcare reforms

aiming to reduce price and volume Increasing influence of financial

decision makers within distribution Well developed usage patterns

with strong key opinion leaders in Europe

and hospitals Improving treatment of stoma

patients in developing economies


Introducing continence consumablesPage 23

• Spinal Cord Injured, SCI• Spina Bifida, SB• Multiple Sclerosis, MS• Benign prostatic hyperplasia &

Disease areas Key products (management products)

• Benign prostatic hyperplasia & prostatectomy patients

• Elderly and diabetics

• Continence or home care nursesCustomer

SpeediCath® CompactMale intermittent catheter

SpeediCath®intermittent catheter

• People with incontinence problems• Wholesalers/distribution• Hospital purchasers and GPOs• Surgeons

groups

• Rehabilitation centers• Urology wards• Pediatric clinics• Elderly homes

Di t ib t d l & h l l

Launched in 10 Launched in 99/00Call points

• Distributors, dealers & wholesalers

Distribution ofrevenues Intermittent catheters

Conveen® Optima external catheterLaunched in 05/06

Conveen® Security+ urine bagLaunched 10+ years ago

Urine bagsMale ext. cathetersOther incl. bowel mgt.


The market for urinary incontinence management productsPage 24

The market for urinary incontinence management products

Estimated market value split by region• Global Market size estimated at DKK 8-9bn with 4-6% growth

RoW• Market share: 35-40%

• Europe 45-55%

• Americas 30-40%Europe

Americas• Rest of the world 10-20%

• Main competitors include AstraTec and Bard

Excluding indwelling catheters (Foley) and Bowel management


Excluding indwelling catheters (Foley) and Bowel management

Market driversLarge, under-penetrated popula-

tion for intermittent catheters

Moving users away from old solutions (uncoated caths diapers)

Market limitersReimbursement system reforms

(single price reimbursement on product categories)

Commoditization and low-spec

Market trendsPurchasing decision centralizedDiagnose Related Groups and

tender business are increasingHealth economic approachsolutions (uncoated caths, diapers)

Patient associations’ influence is increasing

Commoditization and low spec competitors entering

Health economic approach enables price premiums


Introducing Urology CareTreatment (surgical) of urological disorders

Page 25

Treatment (surgical) of urological disorders

• Urinary incontinence• Pelvic organ prolapse

E til d f ti

Disease areas Key products (implants and surgical disposables)

• Erectile dysfunction• Enlarged prostate• Kidney and urinary stones

• SurgeonsCustomer• Purchasing departments and

organizations• End customers

Aris® vaginal slingLaunched in 2005Women’s health - Surgical Urology

Virtue® male slingLaunched in 2009Men’s health - Surgical Urology

groups

• Urologists• Uro-gynaecologists• Gynaecologists• Purchasing departments and

organizations

Call points

Men's health

Women's health

organizations

Titan® OTR penile implantLaunched in 2008 Men’s health - Surgical Urology

JJ stentsLaunched in 1998 Disposable Surgical Urology

Distribution ofrevenues

DSU


The market for urological disordersPage 26

The market for urological disorders

Estimated market value split by region• Global Market size estimated at DKK ~9bn with 4-6% growth

EuropeRoW• Market share: 10%

• Europe 15-25%

• Americas 0-10%

Americas

Americas 0 10%


• Main competitors include Endo, Ethicon and BSX


AmericasColoplast addressable markets only

Market driversLarge, under-penetrated

population

Lack of gold standard treatment

A i d b l ti

Market limitersCost containment Increased competition Increased scrutiny on clinical

proof

Market trendsLess invasive treatment methodsOffice-based treatmentsCost containment

I ti k fAgeing and obese population

Minimally invasive surgeries

proofCrowded IP landscape limits

opportunities

Innovation key source of competitive advantage


Introducing Wound CarePage 27

Introducing Wound Care

Chronic wounds• Leg ulcers• Diabetic foot ulcers

Disease areasKey products (Biatain® and Comfeel® range)

• Diabetic foot ulcers• Pressure ulcers

Hospitals• Wound care committees

CustomerGroups &

Biatain® Silicone• Silicone adhesive and

foam dressing• Launched in 2010

• Specialist nurses/doctors• (Purchasers)Community• Specialist nurses/doctors • General practitioners

Biatain® Ag• Antimicrobial foam dressing• Launched in 2002

call points

General practitioners• District/general nurses • Large nursing homes

Distribution ofrevenues (WSC) Biatain® range

Comfeel® rangeSkin care Other incl Compeed

Comfeel® Plus Transparent• Transparent hydrocolloid

dressing• Launched in 1994

Biatain®• High exudate mgt.

foam dressing• Launched in 1998

Other incl Compeed


The market for advanced wound care where Coloplast Page 28

The market for advanced wound care where Coloplast competes

Estimated market value split by region• Global Market size estimated at DKK 12-13bn with 2-4% growth

Americas• Market share: 5-10%

• Europe 5-15%

• Americas 0-10%

EuropeRoW

• Americas 0-10%


• Main competitors include Convatec, Mölnlycke and S&N


Excluding Negative Pressure Wound Therapy

Market driversAgeing, diabetes, and obesity

New and more expensive technologies (e.g. silver)

I t t b i d t i l

Market limitersHealthcare reforms Increased competitionDistribution taking an active role

Market trendsCommunity based treatmentsSimple product offeringsCost containment

Investments by industry in sales pressure driving conversion


Page 29

Improving financial performance driven by…

• Stable chronic care sales driven by high 25.427.4 30 3,000

%DKKm

Stable chronic care sales driven by high investments in professionalizing sales activities

•Increased focus on growing the business outside

88

00

9 94

1,39

5 1,99

5

2,58

1

1,46

3

16.3 16.013.1 12.8 11.7

15.8

20.9

10

15

20

25

1,000

1,500

2,000

2,500

Europe

• Focusing on realising additional improvements in manufacturing by leveraging on new global

98

1,00 87

9

749 9 9

1

0

5

0

500

EBIT EBIT marginin manufacturing by leveraging on new global operations footprint

• Efficiency gains throughout the organization 23%

30%33%

30%

40%

• Lower capex-to-sales from higher capacityutilization and leaner factory footprint 4%

15%9%

5% 8%

16%

16%18%

12%11%

12%10%

6%10%

15%

23%

0%

10%

20%

…..Resulting in strong free cash flow generation and high return on invested capital.....

FCF to sales ROIC


Page 30

Coloplast value proposition

Close relationships with nurses and end-Close relationships with nurses and end-users provide leading market positions within Ostomy & Continence Care

Stable long-term growthpotential

US and Emerging Markets hold highpotential as well as the Surgical Urologyand Wound Care businesses

Growth and expansionpotential

Strong customer driven i ti biliti

Focus on providing more value for money for end users and public payersinnovation capabilities for end users and public payers

Solid financial performance High return on invested capitalStrong free cash flow generation


Page 31

Appendices


The Coloplast sharePage 32

The Coloplast share

The Coloplast share has been listed on Share Capital OwnershippNASDAQ OMX Copenhagen since 1983

Market cap. DKK ~44.3bn (USD ~8.0bn) 44%

7%

8%4%

@ DKK 984 per share

Two share classes: 3 6 illi A h 10 t

44%

26%

• 3.6 million A shares carry 10 votes (family)• 41.4 million B shares carry 1 vote

(freely traded)

11%

Holders of A-shares & family Danish InstitutionalsForeign Institutionals Coloplast A/S(freely traded)

• Free float approx. 53% (B shares)

Active sell side analyst coverage by

Other shareholders Non-reg. shareholders

Active sell-side analyst coverage by 10 Nordic banks 13 international banks As per 30 September, 2011


Cash distributionPage 33

Cash distribution

• Ordinary dividend of DKK 14.00 per shareRatioDKKm Ordinary dividend of DKK 14.00 per share in 2010/11

• ~32% pay-out ratio for 2010/11

Sh b b k f DKK 1b40%

50%

1,000

1,200

• Share buy-back programme of DKK 1bn to be completed by 2012/13

• First half of the share buy-back was 30%

600

800

started in February 2012. Expected to be completed by 30 September 2012

10%

20%

200

400

0%0 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

Dividends Share buy-back Pay-out ratioy y


Debt policy and capital markets exposurePage 34

eb po cy a d cap a a e s e posu e

NIBD/EBITDA 0 1• NIBD/EBITDA was 0.1

• Committed credit facilities of almost DKK 5bn of which half is utilized

35

40 2.5

Interest cover ratio

NIBD/EBITDA ratio

• ~60% of debt at fixed interest rates

• No significant refinancing risks until 201325

30

35

1.5

2.0

10

15

20

0 5

1.0

0

5

0.0

0.5

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

NIBD/EBITDA Interest coverage


Underlying demographic development supports future growthPage 35

Underlying demographic development supports future growth


Current global reform landscape… France-Reimbursement reform for OC and CC. Expected final recommendation late 2014

Page 36

Expected final recommendation late 2014.

UK- Restructure of NHS and efficiency savings

Germany- No immediate med dev reforms foreseen, but continued savings measures. - 2010 Pharma review could have a negative spillover on MD

SpainSpain- Reimbursement process frozen but under revision (law of margins)- Price categories discussed

GreeceE i it ti till t bl ld- Economic situation still unstable could

potentially lead to further price cut - Merger of sickness funds

United States-2010-14: Healthcare reform -- 2013 -> ”Supercommittee”

China-Building new reimbursement mechanisms, improving access.

Reforms under way

Intensifying reform pressure

Stable reform environment

Russia-2010: Increasing tender business + 15% preferential discounts vs. local manufacturers.


Emerging Market exposure 8% of global salesPage 37

Global sales

04/05 05/06 06/07 07/08 08/09 09/10 10/11

BrazilGlobal sales

Russia04/05 05/06 06/07 07/08 08/09 09/10 10/11

India

ChinaEmerging Market sales

04/05 05/06 06/07 07/08 08/09 09/10 10/11

ChinaBRIC (45%)

Other countries (55%)04/05 05/06 06/07 07/08 08/09 09/10 10/11


3826 April 2012Page 38

Design principles

Global operations footprint and cost structureProduction by country*

• Consolidate on fewer sites to reduce overheads

• Leverage international platform in Global Operations

MørdrupThisted

10%5%

Hungary

ChinaOperations

• Improve efficiency in labour and material Tatabánya Nyirbátor

Sarlat

60%25% Denmark

US/ France

Minneapolis

Mankato

8%20%

COGS by cost type*

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

Innovation & Competency Centre

High Volume Production

13%

11%

20%Salary - Direct

Salary - Indirect

Materials (RM & SFG)

Zhuhai

High Volume Production

Specialised Production47%

SFG)Depreciations & amortisationsOther

*FY 2010/11 Cost of goods sold, DKK 3,604 million


Page 39

Operational Excellence focus areas

Lean in volume production1

Lean in volume production

Re-design for manufacturing2

Global sourcing and supplier relations management3

O ti lFocus on fixed costs and environment4

OperationelExcellence

Focus on fixed costs and environment

Cost effective distribution 5

Design for manufacturing & fast ramp-up 6

Existing capabilities and set-up


Introducing Skin CarePage 40

Introducing Skin Care

Moisture associated skin damage• Incontinence• Skin folds

Disease areasKey products

• Skin foldsPreventative skin care

Hospitals• Wound care committees

Customergroups &

Sween®• Skin care products of distinction• Launched in 2003-2005

• Specialist nurses/doctors• (Purchasers)Community• Specialist nurses/doctors • General practitioners

call points

General practitioners• District/general nurses • Large nursing homes

Product mix

BarriersCleansers/BathingMoisturizersTextileOther

InterDry ™ Ag• Textile with antimicrobial silver

complex• Launched in 2006

Critic-Aid® Clear / AF• Only 5 ingredients; simple

yet effective products• Launched in 2005

Other


Product market for US Skin CarePage 41

Product market for US Skin Care

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

• Market share: 5-10%

• Main competitors include

• Medline IndustriesMedline Industries

• Sage Products

• ConvaTec

Market drivers Market limiters Market trendsMarket driversAgeing and obese population

Nursing shortage

Moisture associated skin damage

Market limitersCost containment Increased competition with

private label Increased scrutiny on Health

Market trendsProduct and protocol standardizationVendor consolidationCost containment

Focus on prevention Increased scrutiny on Health

Economic outcomes


Introducing Bowel ManagementPage 42

Introducing Bowel Management

Faecal incontinence (management products only)

Disease areas Key products

Customer groups• Spinal Cord Injured, SCI• Spina Bifida, SB• Multiple Sclerosis, MS

Customergroups & call points

Peristeen® Anal Irrigation• Launched in 2003 • Updated in 2011

Call points• Rehab centers• Pediatric clinics• Urology wards

Anal plug• Launched in 1995

p

Distribution of revenuesMarket drivers• Growing awareness • Huge under-penetrated and un-

served population• New devices addressing the many

Market dynamics

Peristeen® Anal IrrigationA l l• New devices addressing the many

unmet needsMarket limiters• Still taboo area and non-focus for

professionals (doctors)

Anal plug

• Very little patient awareness• Training required (nurses, patients)• Lack of reimbursement


Executive management Page 43

Executive management

Lars Rasmussen, CEO (53)With Coloplast since 1988

Educational backgroundE*MBA, Scandinavian International Management Institute, 1995BSc (Eng), Aalborg University, 1986BSc (Eng), Aalborg University, 1986

Management assignments with other Danish companies MT Højgaard A/S (BM)TDC A/S (BM) Lars Rasmussen, CEO

Lene Skole, CFO (53)With Coloplast since 2005

Educational backgroundBCom, Copenhagen Business School, 1986The A.P. Møller Group International Shipping Education, 1980

Management assignments with other Danish companies: DFDS A/S (BM)( )Tryg (BM) Lene Skole, CFO


Page 44

Corporate responsibility – key elements

Corporate governanceGlobal Compact

Phthalate free products available

Minimal use of animal testing

Quality and safety

Responsible procurement

Helping suppliers to improve or find alternatives

testing

Code of ConductResponsible lobbying Anti-corruption Environment

CO2 reductionsWaste reduction

Injuries reduced Repetiti e ork red ced S

Alternatives to PVC

‘Access to Healthcare’ programmeRepetitive work reduced

Diverse workplaceEmployees Society programme

Community engagement


Page 45

Corporate responsibility – performance 2010/11Employees

• New Code of Conduct and strengthened compliance

setup, including guidelines and mandatory e-learning.

External reporting

setup, including guidelines and mandatory e learning.

• Reduction in workplaces with highly repetitive work from

7 2 % to 2 2 % in four years7.2 % to 2.2 % in four years.

SRI index membershipsEnvironment and safety

• 7 % absolute reduction in CO2 emission this year

• Phthalate-free alternatives to 90% of our products which

contain phthalates

• Access to Healthcare: Strategic partnerships programme


Income statementPage 46

Income statement

H1 H12011/12 2010/11

DKK million2011/12 2010/11

Net revenue 5.346 5.004

Gross profit 3.513 3.189Gross margin 65,7% 63,7%

SG&A costs -1.874 -1.793R&D costs -177 -223Other Operation Inc/exp 1 15

Separate items 0 0Operating profit (EBIT) 1.463 1.188EBIT margin 27,4% 23,7%

Net financial items -123 -103

Net profit, continuing activities 998 803


Balance sheetPage 47

Balance sheet

DKK million H1 2011/12

H1 2010/11

Balance sheet total 9.300 8.228E it 4 968 3 774Equity 4.968 3.774Equity ratio (%) 53% 46%

Net interest bearing debt 337 1.906N t d bt t it (%) 7% 51%Net debt to equity (%) 7% 51%Net debt to EBITDA 0,1 0,7

Invested capital 6.641 6.994


Cash flowPage 48

Cash flowDKK million H1

2011/12H1

2010/11

EBITDA 1,715 1,452, ,Change in working capital -207 -360Interest and tax -691 -632Other -16 -5Cash flow from operations 801 455Cash flow from operations 801 455

CAPEX (excl. M&A) -144 -135M&A 0 -160Other 11 19Other 11 19Cash flow from investments -133 -276

Free cash flow 668 179

Dividends -587 -422Trading of Coloplast shares 71 -112Other cash changes 10 24Total -506 -510

Change in net debt 162 -331


Production sitesPage 49

TCC MørdrupDK

• Adhesives • Wound care products • Continence care products• Coloplast Consumer Products• Number of employees in production: ~340

TCC Thisted • Machine development• Ostomy care products

DK• Ostomy care products• Number of employees in production: ~180

MinneapolisUS

• Urology care products• Number of employees in production: ~50

Mankato • Skin care productsMankatoUS

• Ostomy care accessories• Number of employees in production: ~55


TatabányaHU

• Ostomy care products, • Adhesives

Page 50

HU • Continence care products• Number of employees in production: ~1,100

Tata• Postponement & packaging

Cross dockingTataHU

• Cross docking• Warehousing• Distribution & shipping• Number of employees: ~165

NyírbátorHU

• Catheter care products, • Wound care products• Number of employees in production: ~730

ZhuhaiCN

• Continence care products• Ostomy care products• Machine buildingCN • Machine building• Number of employees in production: ~1,000

Sarlat Disposable s rgical rolog prod ctsSarlatFR

• Disposable surgical urology products• Number of employees in production: ~150


Contact Investor RelationsContact Investor RelationsHoltedam 1DK-3050 HumlebækDenmark

Ian S. E. ChristensenDirector of Investor RelationsTel. direct: +45 4911 1301 / office: +45 4911 1800Fax: +45 4911 1555Fax: +45 4911 1555 [email protected]

Henrik NordManager, Investor RelationsTel. direct: +45 4911 3108 / office: +45 4911 1800Fax: +45 4911 1555 [email protected]

Gunilla JensenIR Coordinator

d o@co op ast co

Tel.: direct: +45 4911 3621 / office: +45 4911 1800Fax: +45 4911 1555 [email protected]

Page 51

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