1. No category

Trading update first quarter of 2015
Ger van Jeveren, CEO
Jan Peeters, CFO
9 April 2015
Fagron Group
x 1,000 euros
Fagron
HL Technology
Total
Q1 2015
114,952
2,848
117,800
Q1 2014
88,274
2,494
90,768
Total
growth
30.2%
14.2%
29.8%
Total
Organic
Organic
growth
growth
growth
CER
CER
23.1%
16.8%
10.5%
0.1%
14.2%
0.1%
22.5%
16.8%
10.2%
CER = constant exchange rates
Excellent start of the year
Total growth of 29.8% and organic growth of 16.8%!
Very strong growth at FCS, the segment with the highest margin
Continued focus in 2015 on robust organic growth, an active buy-and-build
strategy and the construction of GMP-compliant compounding facilities
Outlook for 2015 reconfirmed
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Our unique position in global
compounding
Global market leadership
• Optimising and innovating
compounding
• Extensive R&D pipeline
• Unique business model
• Strong brand names
• Global footprint
• Global buy-and-build strategy
Group strengths
• In-depth compounding knowledge
• Use best practices
• Speed of execution
• Extensive global network
• Local market expertise
• Acquiring and integrating expertise
• Solid financial position
Operational performance
• Global scale benefits
• Compliant to highest quality
standards
• Product portfolio optimisation
• Centralised purchasing
• Production efficiency
• Consolidation of activities
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Fagron business model
In % of total
turnover
Q1 2015
Q1 2014
37.2%
22.4%
10.1%
12.1%
52.7%
65.5%
Sterile and aseptic
compounding
FCS
Fagron Advanced Derma
SyrSpend® SF
Fagron Aseptic Pack
Raw materials
Excipients
Equipment
Supplies
Fagron Trademarks
Fagron Compounding Essentials
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Fagron Compounding Services
x 1,000 euros
Fagron Compounding
Services
Q1 2015
42,815
Q1 2014
19,778
Total
growth
Tot.
growth
at CER
116.5%
Org.
growth
101.8%
41.7%
Org.
growth at
CER
32.1%
Strong turnover growth of 116.5% (organic growth of 41.7%)
Driven by increasing demand for sterile compounding
Compliant with the highest, most stringent quality standards
Highest margin segment
New antibiotic facility in NL will open in June 2015
New sterile facility in US will open in January 2016
More hospitals ready to outsource compounding
Actively looking into potential acquisition targets
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Fagron Trademarks
x 1,000 euros
Fagron Trademarks
Q1 2015
11,594
Q1 2014
10,658
Total
growth
8.8%
Tot.
growth
at CER
4.6%
Org.
growth at
CER
8.8%
4.6%
Org.
growth
Turnover growth of 8.8%
Driven by the global launch of Fagron Advanced Derma and SyrSpend® SF
Global Fagron R&D network of 300 pharmacists and 45 researchers
Global presence boosts cross selling and innovation
Strong and extensive R&D pipeline
R&D pipeline includes concepts on psoriasis, alopecia, pain and obesity
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Fagron Compounding Essentials
x 1,000 euros
Q1 2015
Fagron Essentials
Q1 2014
60,543
57,838
Total
growth
4.7%
Tot.
growth
at CER
-0.4%
Org.
growth at
CER
5.3%
0.2%
Org.
growth
Turnover growth of 4.7% (organic growth of 5.3%)
Improvement of margins due to:
• Product portfolio optimisation
• Centralised purchasing
• Production efficiency
• Focus on innovations
Potential add-on acquisitions in existing markets identified
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War chest for acquisitions 2015:
100 million euros
Assumptions:
Current outlook of 500 million euros of Sales with REBITDA-margin of 26%
EBITDA / free cash flow conversion of 50%
Average acquisition multiple of 5.5x EBITDA
Including Corilus proceeds (realised in March 2015)
After payment of dividend of 1.00 euro per share
Earn-out payments of past acquisitions of max. 45 million euros in 2015
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Outlook 2015
Fagron expects to realise a turnover from
continuing operations of at least € 500 million1
with a REBITDA-margin2 from continuing
operations of 26%
1
2
Based on constant exchange rates (euro/US dollar of 1.250 and euro/Brazilian real of 3.100).
EBITDA before non-recurrent result.
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Q&A
Disclaimer
This presentation may contain forward-looking statements with respect to Fagron’s
future (financial) performance and position. Such statements are based on current
expectations, estimates and projections of Fagron and information currently available to
the company. Fagron cautions readers that such statements involve certain risks and
uncertainties that are difficult to predict and therefore it should be understood that many
factors can cause actual performance and position to differ materially from these
statements. Fagron has no obligation to update the statements contained in this
presentation, unless required by law. The numbers presented are not audited numbers.
A more comprehensive discussion of the risk factors affecting Fagron business can be
found in the company’s latest Annual Report, which can be found on the company's
corporate website, www.fagron.com.
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