Post on 25-Jun-2020
One-Stop-Shop
for a Healthy
Future © 2013. Arseus. All rights reserved.
Ger van Jeveren, CEO London, 12 September 2013
1
Pharmaceutical compounding 1,269 FTE € 290 million
Medical ICT solutions 274 FTE € 38 million
Developer of concepts for dental and medical professionals 304 FTE € 91 million
Solutions for dental and medical professionals 450 FTE € 128 million
Our markets
2
Founded 2007
Headquarters Rotterdam (NL)
Waregem (BE)
CEO Ger van Jeveren
CFO Jan Peeters
Turnover 2012 € 547 million
Countries 30
FTE 2,370
A strong market with high growth potential
3
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
Compelling growth strategy
4
Arseus House of Success
Operational Excellence
Continuous Strengthening
of Positions
Own Brands/ Innovations
Buy-and-Build Strategy
Added-Value Solutions
Operational Excellence
Focus on Excellence
• One IT system for whole Arseus
• Excellent supply chain
• Centralised robotised warehouses per division
• State-of-the-art production facilities per division
5
Operational Excellence
Focus on savings
• No head hunters
• No interims
• No consultants
• No brokers
• No advisors
• No legal cases
• Excellent training programs, dedicated employees resulting in internal recruitment and promotions
6
Continuous strengthening
of positions
• Always number 1 or 2 in selected markets or market segments
• Fagron: Global market leader in pharmaceutical compounding
• Corilus: Market leader in Belgium and leading positions in several segments in the Netherlands and France in total ICT-solutions for medical professionals
• Leading position in the segment of dental cabinets and dental labs in the Netherlands, Belgium, France and Northern Germany
• Duo-Med: Market leader in surgical segment in Belgium and the Netherlands
7
Buy-and-build strategy
8
• 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
• Freedom Pharmaceuticals (USA)
• HealthConnect (Belgium)
2013
• Florien (Brazil) • Four compounding pharmacies
(Colombia) • Orbus Pharma (Colombia) • Galfarm (Poland) • ApodanNordic
PharmaPackaging (Denmark) • B&B Pharmaceuticals (USA)
2012
Focus on own brands and
innovations
9
2007
45% 55%
Distributions
Arseus brands
75%
25%
Distributions
Arseus brands
2012
Goal for 2013: 90% Arseus brands
Added value
10
Pentravan®
• Innovative vehicle for transdermal drug delivery
• Developed and trademarked by Fagron
Greenock®
• State-of-the-art software for pharmacies
• Developed and trademarked by Corilus
Hader® Lucky
• High-precision surgical torque wrench
• Developed and trademarked by Hader
Opteo®
• Innovative intra-oral sensor
• Developed and trademarked by Owandy
Acquisition Split - Period 2009 - 2012
11
Fagron 80%
Specialties 6%
Solutions 7%
Corilus 7%
100% = € 179.8 million
Focus on own brands and
innovations
12
2007
45% 55%
Distributions
Arseus brands
75%
25%
Distributions
Arseus brands
2012
Goal for 2013: 90% Arseus brands
13
Fagron
Corilus
Healthcare Solutions
Healthcare Specialties
42%
7%
30%
21%
Turnover 2010
60% 15%
2%
23%
REBITDA 2010
45%
11%
26%
18%
FTE 2010
53%
7%
23%
17%
Turnover 2012
74%
13%
2% 11%
REBITDA 2012
55%
12%
20%
13%
FTE 2012
© 2013. Arseus. All rights reserved.
Fagron Corilus Healthcare Solutions Healthcare Specialties
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
• 1,300 employees, including more than 160
pharmacists
• Turnover of € 290 million in 2012
Ger van Jeveren
Founder & CEO
What is pharmaceutical compounding?
• Tailor-made medication
• Based on APIs that are out of patent
• Compounded in community and hospital pharmacies, based on a
pharmaceutical formulation
• Alternative dosage forms
• Alternative dosage strength
Key drivers of pharmaceutical compounding
High-quality and
cheaper alternative
Internet
Tailor-made
Discontinued drugs
Lesser side effects
Drug shortages
Unique selling point of
the pharmacist
New and unavailable
therapeutic needs
More individualized
approach
Pharmacist
Strategy
Optimise
and Innovate
Compounding
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
Result driven
Values
Customer is
number 1
Behave as a global
market leader
Speed of execution Innovative
Entrepreneurial
Win-Win-Win Strategy
(Hospital)
Pharmacists
Patients
Prescribers
Fagron Organisation
Executive Committee
Fagron Group
René Clavaux (45) Information Management
Constantijn van Rietschoten (43) Marketing Innovation & Int. Bus. Development
Michaël Hillaert (35) Area Manager GE, PL, Nordic, FR and Belgium
Rafael Padilla (34) Area Manager South America, Italy and Spain
Jake Jackson* (32) President Fagron North America
Ger van Jeveren (52) Chairman
Jan Peeters (46) Finance
Karin de Jong (34) Controlling
Erik Hoppenbrouwer (48) Operations
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
* As from 1 January 2014
Sales Fagron
51
67 73
85
109
141
158
1H 07 1H 08 1H 09 1H 10 1H 11 1H 12 1H 13
210%
Organic and total turnover growth at constant exchange rates
9.4%
5.9% 7.2% 6.5%
10.9%
13.3%
24.2%
10.5%
18.3%
35.8%
21.8%
15.3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2008 2009 2010 2011 2012 2013 June
Total growth
Organic growth
REBITDA Fagron
9.2 11.7
13.1
16.8
22.4
29.1
38.8
1H 07 1H 08 1H 09 1H 10 1H 11 1H 12 1H 13
18.1%
17.9%
19.7%
20.6%
20.6%
24.5%
17.6%
Business Model
FCS
Concepts
Equipment & Supplies
Pharmaceutical Raw Materials
Pharmaceutical Raw Materials
Business Model
Pharmaceutical Raw Materials
• Amino acids
• Antibiotics
• Cortico steroids
• Excipients
• Extracts
• Food additives
• Hormones
• Minerals
• Nutraceuticals
• Oils and fats
• Opiates
• Vitamins
• Alcohol and flammable products
• Herbs
Equipment & Supplies
Business Model
Equipment & Supplies
• Ointment mills
• Printed Matters
• Packaging
• Capsule fillers
Concepts
Business Model
Concepts
• Fagron Advanced Derma
• Fagron Trademark
• Fagron PharmaWhite
• KID concept
• Semi-finished products
• Formulations for compounding
• Selective digestive decontamination
• Bio-identical hormone replacement
therapy
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
R&D
Personalisation
Realisation
Development
Information and Documentation
Information and Documentation
R&D
Information and Documentation
• Producer qualification
• Product qualification
• Audits of producers
• CoAs
• MSDS
• DMFs
• Product database
• Patent situations
Total spending: € 7.5 million per year
Development
R&D
Development
• Shelf life
• Formulations and compounding
protocols
• Product development
• Galenic dosage forms, strength and
alterations
• Raw material alterations for use in
pharmaceutical compounding
• Professional services / compounding
helpdesk
• Fagron Advanced Derma
Total spending: € 10 million per year
Realisation
R&D
Realisation
• Studies
• Stability studies
• Penetration studies
• Evidence studies
• Trademarks
Total spending: € 7 million per year
Personalisation
R&D
Personalisation
• Registrations (€ 1.5 million)
• DNA, Nano, Bio, Gen, Radiotherapy
• Combination therapy
Total spending: € 1.5 million per year
Total spending R&D: € 26 million per year
Fagron University
Fagron Academy
Fagron Bookstore
Fagron Compounding Articles
Pharmaceutical Compounding Science
Fagron Compounding Articles
Pharmaceutical Compounding Science
Fagron Compounding Articles
• Formulations
• Indications
• Studies
• Compounding magazines
Fagron Bookstore
Pharmaceutical Compounding Science
Fagron Bookstore (€ 0.2 million)
• Compounding literature
• Compounding media
Fagron Academy
Pharmaceutical Compounding Science
Fagron Academy (€ 2.8 million)
• Practical and theoretical training
courses:
• galenic
• prescription
• marketing-entrepreneurship
• compounding safety
• regulation
• reimbursement
• Conferences
• Seminars
• Virtual learning
• Customized events
Fagron University
Pharmaceutical Compounding Science
Fagron University (€ 1 million)
• Master degree in pharmaceutical
compounding
Total spending Compounding
Science: € 4 million per year
Fagron Innovations
Espumil®
Pentravan®
Omeprazole & Syrspend® SF Alka Kit
Focus on total ICT-solutions for medical professionals
49
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
25,000 customers
Good interaction with medical care providers
& government
110 developers
Quick response & deployment
Sales
12.4 12.8 14.1 14.8
16.5 17.9
20.5
1H 07 1H 08 1H 09 1H 10 1H 11 1H 12 1H 13
65.3%
REBITDA
margin
26.2% 25.9% 25.7% 26.8% 26.4% 24.2%
50
24.7%
Customer growth
51
12,000 12,000 12,000 12,000 14,000 14,900
17,300 460 420
7,582 8,723
10,117 11,503
11,700
2007 2008 2009 2010 2011 2012 2013 June
International
Corilus BE
Ambulant care providers
1
5600
Ambulant
nurses
Number 1 or 2 in each segment
52
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
53
Care teams Family care
Tele-
monitoring
Hospitals Specialists Dentists
Patients
customers
Pharmacies
GPs and pharmacies
GP guard
centers
Distribution activities
focused on Dental and
Medical professionals
Sales
55
61.9 58.7
0
10
20
30
40
50
60
70
80
1H 12 1H 13
-0.7% 1.2% REBITDA margin
Healthcare Solutions Mission
56
Our solutions increase efficiency and quality of outcome, reduce complexity and cost for dental and medical professionals
We help our customers to increase their professionalism and enable them to focus on their patients This way, we drive superior care for our customers
Proven
Value creation
Complexity Cost
Quality Efficiency
“Driving superior care”
Healthcare Solutions strategy endorses the
mission
57
• Archimed concept for group practices • Workflow optimization
Increase efficiency
Reduce complexity
Reduce cost
Improve results
• Digital integration • Patient flow optimization
• Automation supply/e-shop • Implant planning …
• Hygiene software (traceability & management)
• Arseus Academy for permanent training
Sales
59
47.5 45.4
0
10
20
30
40
50
60
1H 12 1H 13
11.7% 12.3% REBITDA margin
60
Develops and provides practice management software to
dental practitioners in France (market leader)
61
Leading developer and supplier of imaging equipment for
dentists, incl. 2D and 3D units and intra-oral digital sensors
62
Develops and produces a wide variety of precision tools and
components with a focus on micro mechanics
63
Provides innovative solutions, products and services to dental
labs in Europe (market leader)
64
Supplies surgeons and hospitals in the Benelux with innovative
solutions and products (market leader)
Financial highlights First Semester of 2013
Sales
66
146 170
190 205
233
268 283
0
50
100
150
200
250
300
1H 2007 1H 2008 1H 2009 1H 2010 1H 2011 1H 2012 1H 2013
94%
Gross Margin
67
47.3% 46.8%
47.4% 47.8% 48.9% 49.0%
51.9%
40.0%
42.0%
44.0%
46.0%
48.0%
50.0%
52.0%
54.0%
1H 2007 1H 2008 1H 2009 1H 2010 1H 2011 1H 2012 1H 2013
REBITDA
68
19.2 22.7
25.4 28.6
32.9
38.8
50.4
0
10
20
30
40
50
60
1H 2007 1H 2008 1H 2009 1H 2010 1H 2011 1H 2012 1H 2013
163%
13.1%
14.2%
14.0% 13.4%
13.3%
17.8%
14.5%
Corporate costs
2.7 2.9 3.1 3.4
3.7
0.0
1.0
2.0
3.0
4.0
1H 09 1H 10 1H 11 1H 12 1H 13
1.8
3.4
2.3 2.5 2.5
0.0
1.0
2.0
3.0
4.0
1H 09 1H 10 1H 11 1H 12 1H 13
Non-recurring result
• Remained unchanged at 1.3% of turnover
• Remained unchanged at € 2.5 million
• Mainly acquisition, integration and reorganisation costs
69
EBITDA
21.0 22.4 27.6
32.8
44.2
0.0
10.0
20.0
30.0
40.0
50.0
1H 09 1H 10 1H 11 1H 12 1H 13
5.6 5.8
7.4 8.4 8.6
0.0
2.0
4.0
6.0
8.0
10.0
1H 09 1H 10 1H 11 1H 12 1H 13
DA
• Increased by 34.7% to € 44.2 million
• Operating margin increased to 15.6%
70
EBIT
71
12.6 15.2 15.3 16.5
20.2
24.5
35.6
0
5
10
15
20
25
30
35
40
1H 2007 1H 2008 1H 2009 1H 2010 1H 2011 1H 2012 1H 2013
183%
8.6%
8.9% 8.1% 8.1%
8.7%
9.1%
12.6%
Financial result
3.0 3.0 4.4
5.3
11.7
0.0
5.0
10.0
15.0
1H 09 1H 10 1H 11 1H 12 1H 13
1.3 1.0
-1.7
-0.8 -1.3
-2.0
-1.0
0.0
1.0
2.0
1H 09 1H 10 1H 11 1H 12 1H 13
Revaluation of financial derivatives
• Increase in net financial debt
• Higher currency exchange rate differences
• Higher interest rates due to refinancing in July 2012
• Positive revaluation in 1H 2013
• Reflects a rising trend in the interest base
• Non-cash item
72
Profit before taxes
10.9 12.6
17.5 20.0
25.1
0.0
5.0
10.0
15.0
20.0
25.0
30.0
1H 09 1H 10 1H 11 1H 12 1H 13
1.5 2.0
3.5
4.7
6.3
0.0
2.0
4.0
6.0
8.0
1H 09 1H 10 1H 11 1H 12 1H 13
Taxes
• Increased 25.9% to € 25.1 million
• Effective tax rate of 25.2% in 1H 2013
• Effective cash tax rate of 17.2% in 1H 2013
73
Net profit
74
7.7
9.9 9.4 10.6
14.0 15.3
18.8
0.0
5.0
10.0
15.0
20.0
1H 2007 1H 2008 1H 2009 1H 2010 1H 2011 1H 2012 1H 2013
144%
59.3 59.2
417.9 501.8
32.3
30.6
1.9
2.3
51.3
66.8
0
100
200
300
400
500
600
700
OWC
Other fixed assets
Deferred tax assets
Intangible assets
Tangibles
75
Balance sheet: Assets
DEC 2012 JUN 2013
75
245.4 229.3
8.3 8.4
2.5 1.7
233.1 327.2
3.7
2.5 69.6
91.6
0
100
200
300
400
500
600
700
Other WC
Financial instruments
Net financial debt
Deferred tax
Provisions
Equity
76
Balance sheet: Liabilities
DEC 2012 JUN 2013
76
Outlook 2013
Outlook 2013
Management expects healthy organic turnover growth
and profitability that is expected to grow faster than
turnover growth
78
Contacts
Constantijn van Rietschoten
Director Corporate Communications
+31 88 33 11 222
constantijn.van.rietschoten@arseus.com
Agenda
8 October 2013 Trading update third quarter of 2013
7 Februari 2014 Annual results 2013
Safe Harbor
This presentation contains forward-looking information that involves risks and uncertainties. Readers are cautioned that forward-looking statements include known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies. Arseus, nor any other person, assumes any responsibility for the accuracy of these forward-looking statements. The company untertakes no obligation to publicly update any forward-looking statements.
Contact
79
Shareholder structure Arseus
Number of shares % of voting rights
EnHold NV 8,166,908 26.04%
Alychlo NV / Coucke 3,528,080 11.25%
BNP Paribas Inv. Partners SA 1,609,182 5.13%
Arseus NV (treasury shares) 881,378 2.81%
Public 17,172,810 54.77%
Total 31,358,358 100%
80
* Situation on 11 September 2013 and based on the notifications received at that time.
Ger van Jeveren (CEO) and Jan Peeters (CFO) owned approximately 1.1 million shares on 11 September 2013, an increase of approximately 635,000 shares compared to 1 January 2013.