One-Stop-Shop for a Healthy Future - Fagron › sites › arseus.com › files... · Fagron...

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


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


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


Business Model


• Amino acids

• Antibiotics

• Cortico steroids

• Excipients

• Extracts

• Food additives

• Hormones

• Minerals

• Nutraceuticals

• Oils and fats

• Opiates

• Vitamins

• Alcohol and flammable products

• Herbs


Business Model


• 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


R&D


• 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




• Formulations

• Indications

• Studies

• Compounding magazines

Fagron Bookstore


Fagron Bookstore (€ 0.2 million)

• Compounding literature

• Compounding media

Fagron Academy


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


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


1

5600

Ambulant

nurses

Number 1 or 2 in each segment

52

GP’s


Tele-

monitoring


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


Elderly homes

GP’s

Creating value by data integration

53


Tele-

monitoring


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)

http://www.google.be/url?sa=i&rct=j&q=microcutter+cardica&source=images&cd=&cad=rja&docid=EumU3M_YLfBlHM&tbnid=8kRMUcgDU7okrM:&ved=0CAUQjRw&url=http://www.cardica.com/minimally-invasive-surgery.php&ei=Ikp1UbWKCIvEPZqpgagB&psig=AFQjCNF6r0th9-5PIFb0GHh_Sz_0suGoBA&ust=1366727365862705

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

[email protected]

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

mailto:[email protected]

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.

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Transcript of One-Stop-Shop for a Healthy Future - Fagron › sites › arseus.com › files... · Fagron...