Post on 27-Jun-2020
One-Stop-Shop
for a Healthy
Future © 2013. Arseus. All rights reserved.
© 2013. Arseus. All rights reserved.
Ger van Jeveren, CEO Arseus and Fagron
Jan Peeters, CFO Arseus and Fagron
Dirk Van Lerberghe, CEO Corilus
Jacob Jackson, CEO Freedom Pharmaceuticals
Capelle aan den IJssel, the Netherlands
25 April 2013
Capital Markets Day
2
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
3
Activities focused
on dental labs
Dominique Deschietere
Julie Owandy
René Benninger
Duo-Med
Dirk De Cuyper
Hader
René Benninger
Medical distri-bution
activities
Dental distri-bution
activities
Mario Huyghe Dirk Van Lerberghe Ger van Jeveren
Our markets
4
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
5
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
6
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
7
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
8
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
9
Buy-and-build strategy
10
• 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
11
2007
45% 55%
Distributions
Arseus brands
75%
25%
Distributions
Arseus brands
2012
Goal for 2013: 90% Arseus brands
Added value
12
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
Financial highlights
Sales
14
304
355 391
424
492
547
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012
80%
Gross Margin
15
143 166
186 202
241 272
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012
90%
47.0% 46.7% 47.5% 47.6% 49.2% 49.6%
REBITDA
16
41.4 47.6
52.7 60.4
72.9
87.4
0
10
20
30
40
50
60
70
80
90
100
110
2007 2008 2009 2010 2011 2012
111%
EBIT
17
26.4 30.0 30.5
36.0
46.3
58.1
0
10
20
30
40
50
60
70
2007 2008 2009 2010 2011 2012
120%
18
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
Net Financial Debt
19
51
104 114
166 189
233
51
98 106
152
178
223
0
50
100
150
200
250
2007 2008 2009 2010 2011 2012
Net financial debt
Adj. net financial debt
Financial Covenant
20
1.33
2.25 2.19
2.49 2.48 2.64
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2007 2008 2009 2010 2011 2012
3.25
Historical Net Debt Bridge
21
50.6
235.4
91.4
50.2
40.3 37.0
10.8 5.5 21.5
266.6
233.1
0
100
200
300
400
500
600
235.4
266.6
0
100
200
300
400
500
600
Acquisition Split - Period 2009 - 2012
22
Fagron 80%
Specialties 6%
Solutions 7%
Corilus 7%
100% = € 179.8 million
Share Price Performance since IPO on 5 October 2007
Relative performance since IPO
24
25
50
75
100
125
150
175
200
225
250
10/'07 03/'08 08/'08 01/'09 06/'09 11/'09 04/'10 09/'10 02/'11 07/'11 12/'11 05/'12 10/'12 03/'13
AEX AMX Bel 20 Bel Mid Arseus Average Indices AScX
IPO – 2013 YTD
Arseus +82.9%
BEL MID -14.6%
AMX -28.2%
AEX -36.1%
BEL 20 -40.8%
AScX -43.0%
Average indices -32.6%
Share price performance Arseus and indices
25
© 2013. Arseus. All rights reserved.
Fagron Corilus Healthcare Solutions Healthcare Specialties
Innovating and
optimising compounding
for tailor-made
pharmaceutical care
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 150
pharmacists
• Turnover of € 290 million in 2012
Ger van Jeveren
Founder & CEO
Fagron Organisation
Executive Committee
Fagron Group
René Clavaux (45) Information Management
Constantijn van Rietschoten (43) Marketing and Innovation
Michaël Hillaert (35) Area Manager GE, PL, Nordic, FR
Rafael Padilla (34) Area Manager South America
Jake Jackson* (32) President North America
Ger van Jeveren (52) Chairman
Jan Peeters (46) Finance
Frank Verbakel (52) 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
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
Optimize
and Innovate
Compounding
• We want to optimize 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
Mission
Compounding
Values
Customer is
number 1 Speed of execution Innovative
Entrepreneurial Result driven
Behave as a global
market leader
Win-Win-Win Strategy
(Hospital)
Pharmacists
Patients
Prescribers
Business Model
FCS
Concepts
Equipment & Supplies
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
Pharmaceutical Raw Materials
Business Model
Equipment & Supplies
• Ointment mills
• Printed Matters
• Packaging
• Capsule fillers
Equipment & Supplies
Business Model
Concepts
• Fagron Derma Concept
• Fagron Trademark
• Fagron PharmaWhite
• KID concept
• Semi-finished products
• Formulations for compounding
• Selective digestive decontamination
• Bio-identical hormone replacement
therapy
Concepts
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
FCS
Business Model
Fagron Academy
• Training
• Education
Geographical Split Sales
67.1% 3.9%
29.0%
Top priority for 2013 is
expanding our business in
North America and Canada!
Europe
North America
South America
Fagron
FREEDOM PHARMACEUTICALS
Freedom Pharmaceuticals: Overview
• Current Founder & CEO, Freedom Pharmaceuticals
• Effective January 1, 2014: President of Fagron
North America
• Formerly General Counsel for large independent
compounding pharmacy group
• Formerly Assistant State Attorney General
• Education: University of Missouri, Juris Doctor (Law);
University of Missouri, BS, Political Science
Jacob G. Jackson, J.D.
President & CEO
Freedom Pharmaceuticals: Mission
Freedom Pharmaceuticals specializes in the custom
wholesale distribution of premium compounding chemicals
(APIs and excipients) to independent compounding
pharmacies throughout the United States
“Empower, Execute, and Enjoy”
Sales*
3
17
25
2011 2012 2013E
* In US Dollars
The Freedom “Advantage”…
Product Assurance Screening System
Product Assurance Screening System
• FDA registered
• cGMP
• US pharmacopeia / National formulary
• SOPs
• CoA
• MSDS
Compounding Pharmacy Consulting Services, Inc. (CPCSI)
• An active network of lawyers, pharmacists and
former PBM Auditors that perform training courses,
mock on-site audits and real time practical guidance
and support, specific to compounded preparations
• Classes held every month
SOURCE: WWW.IBISWORLD.COM
Diversified Pharmaceutical Ingredients (DPI)
• Addresses the large and growing specialty
veterinary compounding market
• Robust projected growth in numbers of
cats and dogs will boost demand for
compounded products
• Growing opportunity to serve equine
industry in the U.S. – Currently 10 million
horses
• Leverages existing Freedom brand
recognition and regulatory expertise
Freedom Pharmacy Support Services (FPSS)
• Compounding support
• Formulation assistance
• Reimbursement advice
• Online resources
Freedom Chemical Supply (FCS)
• Prepackaged, high quality monographed,
USP grade material
• Customized package size options related to
specific batch requirements
• Currently 500 products; together with Fagron
more than 5,000 products
Pharmaceutical Compounding in the U.S.: unlimited future
• Total U.S. pharmacy industry over
$200Bn
• 3.6Bn prescriptions written
annually
• Compounding represents
approximately 1-3% of total
pharmacy industry:
~$4Bn U.S. pharmacy
compounding industry size
• Annual growth of ~5% through
2017
• Large, addressable industry with
multiple positive drivers of rapid
growth
35%
20%
20%
15%
10%
Products and services segmentation (2012)
Pharmaceutical
ingredient
alteration
Currently unavailable
pharmaceutical
manufacturing
Pharmaceutical
application
alteration
Pharmaceutical
dosage
alteration
Specialized
pharmaceutical
manufacturing
Pharmacy Compounding in the U.S.: External drivers
Per capita
disposable income
Number of pets
Education of doctors
Drug shortages
Number of physician
visits
Compounding
External drivers
Pharmacy Compounding in the U.S.: Specific drivers
Upper/lower
respiratory
Topical Pain
Wound care
BHRT
(Baby Boomers) Compounding
Specific drivers
Obamacare 315 m
illio
n i
nh
ab
itan
ts
Medicare
65+, retired
Medicaid
´Poor´ people
Employed people
with HC insurance
Not poor enough
Not old enough
Employers don’t provide
Obamacare
(Patient Protection and
Affordable Care Act)
30 million new people
with insurance
Number 2 in the U.S. Market
Note: Reflects relative market share of industry participants, based on Company’s estimation
Pre-transaction Post-transaction
1
2
3
4
5
1
2
3
4
Fagronisation: Proven integration processes
• Acquired and successfully integrated 14 acquisitions since 2009
• Objectives:
• Maintain business continuity throughout the integration process
• Minimise disruption to the employees
• Switch acquisitions quickly and smoothly to Fagron Corporate
standards
• Gain financial control, tight OWC management and benefit from
economies of scale
• Strict processes on Finance, IM, Marketing and Operations
Fagronising by IM
+12 months +11.5 months +11 months +10 months +3 months Closing
• Purchase
savings
• Forecasting
• Collaboration
• Video
Conferencing
• Office
productivity
• Best practices
• Standard
operating
procedures
• Controls
• ERP
• CRM
• Business
Intelligence
• Reporting
• Website
• Webshop
• Electronic
newsletter
• Management
reporting
• Consolidation
OKAPI OPS ADC Fagron
Dynamics Reporting
E-
Business
Fagronising by Operations
+11.5 months +11 months +9 months +6 months +3 months +3 months
Product portfolio
included in
Fagron product
portfolio
Establishment
position of site
within
conditioning
network
Fagron Quality
guidelines
implementation
Forecasting and
planning
(combined with
Navision
Dynamics)
Fagron product
labelling and
shipment
documentation
Purchase
savings and OPs
KPIs reporting
Fagronising by Marketing
+12 months +9 months +7 months +6 months +4 months +3 months
• Involvement in
International
projects
• Introduction of
the Fagron
Brand Manual
• Setting up all
brand carriers
based on the
Fagron brand
directives
• Implementing
all Fagron
brand carriers
• Full Fagron
branded
company
• According to
GMI-standards
• Introduction of
Co-Branding
Manual
• Implementing
on all digital
brand carriers
Mental
Identity
Verbal
Identity
Visual
Identity Activation
Imple-
mentation
Fully
Fagro-
nised
Fagronising by Finance
First (half)
year closing
After one month
and more (continued actions)
+1 month Closing Due diligence
• Execute S&P
agreement
• (Weekly) sales
• Install Okapi
• Training
• Support
• Report figures
• Adapt local
procedures
• Execute due
diligence
recommendations
• General Directives
• Assist local staff with
first official closing
• Figures
• Financial staff
internal control
• Necessary
measures after
closing
Fagron
RESULTS 2012
Sales Fagron
110
137 151
179
243
290
2007 2008 2009 2010 2011 2012
164%
Organic and total turnover growth at constant exchange rates
9.4%
5.9% 7.2% 6.5%
10.9%
24.2%
10.5%
18.3%
35.8%
21.8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2008 2009 2010 2011 2012
Organic growth Total growth
FTE Development
492 574
621
865
1,164
1,269
2007 2008 2009 2010 2011 2012
Sales per FTE Fagron
224
239 243
207 209
229
2007 2008 2009 2010 2011 2012
Gross Margin Fagron
56.4 66.7
76.4
92.0
124.8
150.6
2007 2008 2009 2010 2011 2012
51.3% 48.7%
50.7%
51.3%
51.4%
51.9%
Opex as % of Sales
-33.4%
-32.6%
-33.1%
-31.8% -31.6%
-29.8%
2007 2008 2009 2010 2011 2012
EBITDA Fagron
20.2 23.2
27.1
35.6
48.3
62.4
2007 2008 2009 2010 2011 2012
18.4% 16.9%
18.0%
19.9%
19.9%
21.5%
Fagron Innovations
Espumil®
Pentravan®
Lollibase®
Omeprazole & Syrspend® SF Alka Kit
Piramide FCS
Business Model FCS
Fagron Compounding Services – the Netherlands
Fagron Compounding Services –Belgium
Fagron Compounding Services – Colombia
Medellín
Bogotá
Cali
Fagron Academy
Fagron Academy
Fagron offers
more than 2,000
courses annually
to pharmacists
and prescribers
Fagron Foundation
Fagron Global Management Program
Fagron Global Management Program
Internal and
external
candidates
Talented
young
professionals
Leadership
potential
International
ambition
Master
(preferably in
Pharmacy)
Fagron Partner Program
Fagron Partner Program
Fagron Brazil
Fagron Germany
Fagron Iberica
Fagron the Netherlands
Building one brand for compounding
Fagron, the global number 1 in pharmaceutical compounding
Focus on total ICT-solutions for medical professionals
93
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
Corilus
Company
• CEO: Dirk Van Lerberghe
• FTE: 274 (incl. 90 software developers, excl. 20 off-shore developers)
• Own brands (as % of sales): 65%
• Seven locations in Belgium, the Netherlands and France
Products
• Total ICT-Solutions, developed in-house, for a wide range of medical and paramedical
professionals
Strategy
• Further expanding Corilus’ leading market positions through organic growth and acquisitions
• Introducing innovative ICT solutions to other European countries
94
Sales
26.7 26.2 28.8
31.1
34.3
38.0
2007 2008 2009 2010 2011 2012
42.3%
REBITDA
margin
29.6% 29.4% 29.5% 28.1% 27.5% 25.1%
95
Customer growth
96
12,000 12,000 12,000 12,000 14,000
14,900 460 420
7,582 8,723
10,117
11,503
2007 2008 2009 2010 2011 2012
International
Corilus BE
Mission
Supporting the health care community with
innovative ICT solutions that improve practice
management resulting in better healthcare and
optimized care and healing processes in a multi-
disciplinary environment.
Strategy - Customer Intimacy
• Innovative software
• Satisfied customers
• In-depth sector knowledge
• Growth and career opportunities
Healthcare landscape until the 60’s
99
Hospitals Pharmacies
GP’s
Ambulant care providers
Patients
‘60 until begin 21 century
100
GP’s
Ambulant care providers
Patients
Pharmacies
Elderly homes
Hospitals Specialists Medical devices
Organisational shift in healthcare
• Aging population
• Growing number of chronicle diseases
• Exponential growth medical solutions/possibilities
• Patient is becoming a customer, patient involvement
• Economic pressure
101
Future landscape: collaboration & sharing
102
GP’s
Care teams Family care
Tele-
monitoring
Hospitals Specialists Dentists
Ambulant care providers
GP guard
centers
Pharmacies
Patients
customers
Elderly homes
Patient Centric
Recip-e
eHealthBox
Ambulant care providers
1
5600
Ambulant
nurses
Number 1 or 2 in each segment
103
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
104
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
Healthcare Solutions
106
Company
• CEO: Mario Huyghe
• FTE: 450
• Headquartered: Waregem (Belgium), offices and depots in Belgium, the Netherlands, France and Germany
Activities focused on dental practices
• Innovative and integrated total solutions, products and services for dental practices across Europe
• Market leader in Belgium, the Netherlands, France and Northern Germany
Activities focused on medical professionals
• Innovative, integrated tailor made solutions for medical professionals in the Benelux
Sales
107
125.3 122.4 127.7
0
20
40
60
80
100
120
140
160
2010 2011 2012
1.0% 0.9% 1.8% REBITDA margin
Healthcare Solutions Mission
108
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
109
• 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
Foto’s dental
110
Schiller Fred Easy
Healthcare Solutions offers since
2012 in addition to stand-alone
devices also AED AED integrated
solutions for urgent and emergency
services
111
The Schiller Fred Easy and 'Rescue Viewer
AMMS Concept
AMMS is the integrated total solution for the optimisation of the supply and administration of medicines to the residents of nursing homes through the pharmacy
Quick wins:
• Time saving
• Enormous reduction in the number of errors in delivery, set-up and administration
112
Arseus Lab Julie-Owandy Hader Duo-Med
Healthcare Specialties
Company
• CEOs: René Benninger Hader / Julie-Owandy Dirk De Cuyper Duo-Med Dominique Deschietere Arseus Lab
• FTE: 304 FTE
Activities
Strategy
• Healthcare Specialties develops solutions that create value, reduce complexity, provide convenience and help customers to increase their professionalism and to focus on their clients
114
Sales
115
88.3 92.7 91.2
0
20
40
60
80
100
120
2010 2011 2012
15.9% 13.2% 10.3% REBITDA margin
116
Develops and provides practice management software to
dental practitioners in France (market leader)
117
Leading developer and supplier of imaging equipment for
dentists, incl. 2D and 3D units and intra-oral digital sensors
118
Develops and produces a wide variety of precision tools and
components with a focus on micro mechanics
119
Provides innovative solutions, products and services to dental
labs in Europe (market leader)
120
Supplies surgeons and hospitals in the Benelux with innovative
solutions and products (market leader)
Outlook 2013
Outlook 2013
Management expects healthy organic turnover growth
and profitability that is expected to grow faster than
turnover growth
122
Thank You