Mölnlycke · 2019. 6. 27. · Leading market share across segments Global –Advanced Wound Care(1) Total market ~ EUR 2.7 billion 2008 2016 #1 72% market share interface dressings

Investor Capital Markets Day

30 March 2017

Mölnlycke


Presenter

Richard

TwomeyCEO

• CEO of Mölnlycke since 2014

• Previously International Vice President of the

California-based orthodontics company Align

Technology

• 27 years of business experience, including 17

years in the healthcare industry


Agenda

• Mölnlycke – who we are

• Industry dynamics and our position

• Moving forward

Mölnlycke – who we are


Mölnlycke is a world-leading medical solutions company

Our purpose is to advance performance in healthcare across the world, and we aspire

to equip everybody in health care with solutions to achieve the best outcomes.


1Global HQ and R&D

in Gothenburg Sweden

15 manufacturing

sites

35Countries with sales

office coverage

63Countries with

sales through distributors

550+Direct suppliers and

contract manufacturers

14,000Containers/year

20,000Different stock items

600,000Deliveries to

15,000 partners worldwide

Our global footprint

Distribution Centres

7


Europe 3284

ASIA & MEA 3561

Americas 696

Employee facts

Ref. Employee Engagement survey (98% respondents) 2016

Our employees

28NPS Q4 2016

Sector bench mark: 8

Employee engagement

7 541 34%

66%

Industry dynamics and our position


Globally

• Aging population

• Increase in chronic

conditions (i.e. diabetes,

obesity)

In developing markets

• Increasing income levels and

health awareness

• Rising expectations of healthcare

system

1 in 12 Americans will have

diabetes in 2020

3.6% of Americans 65+

suffer from

chronic leg ulcer

1 in 20 will develop

diabetic

foot ulcers

70 millionsurgical procedures

performed every year

in Europe growing

3-4% annually

11 Billion $ spent treating

pressure ulcers in US

Chronic disease treatment

=

75% of US healthcare spending

Macro dynamic trends


Implications of Macro dynamic trends:the tailwinds and headwinds for healthcare

More people – Better quality

Healthcare consumption evolving

Deficit of Healthcare systems

Focus on outcomes

Competitive shift

Expanding access

Products – Business models

Innovation will be rewarded

Hospital Acquired Conditions Never events

Focus on prevention

Competitive shift

Increased patient decision making – Value is key

Healthcare consumption evolving

More M&A, Low cost models, IP protection is key

Competitive shift

Deficit of healthcare systems Focus on outcomes

Economic pressures

Increased requirements for product approval

Increased regulatory control


Avance®

Business OverviewThree commercial franchises – breadth and diversity of a comprehensive product portfolio

Treatment Prevention Surgical solutions

Advanced

wound dressings

Conventional

wound dressingsNPWT* Interface

dressingsPositioners Skin careAntiseptics Surgical

gloves

Drapes Mölnlycke

Procedure

trays

Gowns MIS**

Key brands

Wound Care


Leading market share across segments

Global – Advanced Wound Care(1)

Total market ~ EUR 2.7 billion

2008 2016

#1

72% market share

interface

dressings

in Europe –• Custom procedure trays,

• Surgical drapes

• Staff clothing

in Europe & US

– Surgical Gloves

#1

#1

Note: Market share data based of internal estimates.

1. As measured by sales of dressings (excluding both biologics and negative pressure wound therapy).

.

13% 23%


The Prevention opportunity

The Global

problem

7.5 – 8.5 Million

Pressure Ulcers

The Global

opportunity

The Patient

opportunity

Prevent 76%

with 3.6 × lower

cost of treatment

USD

11 billion

USD

1-2.3 billion

USD

1.4-2 billion Gap:

• Cost reductions

• Increase Efficiency

• Pay for outcome

Healthcare

Expenditure

Time

Gro

wth

%

GDP

Customer insight Prevention

Solution:

Products

Process

Business Model


Sundance acquisition 2016 – strengthening the Prevention offer

Financials for 2016 based on unaudited consolidated numbers.

1. EBITDA is before exceptional items.2. Compound Annual Growth Rate between 2012 and 2016.

Proven financial performance

Proven financial performance (EUR million)

€0

€500

€1 000

€1 500

2012 2013 2014 2015 2016€0

€150

€300

€450

2012 2013 2014 2015 2016

Sales EBITDA(1)

Geographical revenue split

11%US sales

organic growth 2016

APAC

EMEA

AMERICAS

2012 2016

24%

6%

70%

7%

33% 60%

ChinaThe Gulf regionBrazilNet sales growthNet sales growthNet sales growth

96% 34% 28%

Note: Revenue split for 2016 based on unaudited consolidated numbers.


Outperforming our competitors – Wound care

13%

Mölnlycke

Wound

Comp 4

15%

5%

10%

0%

-5%

20%

Comp 5 Comp 3 Comp 1 Comp 2

Sales growth %

735

1 200

1 000

800

600

400

200

0

Competitor 1 Comp 2 Mölnlycke

Wound

Comp 3 Comp 4 Comp 5

Sales (MEUR)

*Due to limited competitor disclosure, all numbers are based on last 12 months reported financials as of June 2016. Growth rates are shown in reported numbers, i.e. not adjusted for currency effects. Where company EBIT/EBITA has not been available, segments EBIT/EBITA has been used.


Outperforming our competitors – Surgical

1 200

1 000

800

600

400

200

0

Sales (MEUR)

Competitor 1 Competitor 2Mölnlycke

Surgical

6%5%

10%

0%

-10%

Sales growth %

-5%

Mölnlycke

SurgicalCompetitor 2 Competitor 1

668

*Due to limited competitor disclosure, all numbers are based on last 12 months reported financials as of June 2016. Growth rates are shown in reported numbers, i.e. not adjusted for currency effects. Where company EBIT/EBITA has not been available, segments EBIT/EBITA has been used.


2013 2014 20151.0

11531213

1353

2016

1429

Sales

€1.5M

Financialresultsof 2016

6% Organic sales growth

2015/16


2013 2014 2015 2016

Profit

%

+14% year over year

30.4% 29.5% 28.1%30.0%



75%Great

performance during

investment

cycle

288 287300

EUR

400M

321


Cashconversion

2013 2014 2015 2016

EBITDA/

Operating

cash flow


2012 2013 2014 2015

Wound Care

€800


2016

539568

610

696

756

Revenue

CAGR: 9%

Sales EUR million EBITDA


Surgical


2012 2013 2014 2015

€800

2016

580 584604

657673

Revenue

CAGR: 4%

Sales EUR million EBITDA


Wound Care & Surgical split

Financial results of 2016

Surgical

Wound Care

Sales Profit

Surgical

Wound Care

Moving forward


1

Delivering on

our product pipelineExecution in the

market place

Operational

excellence

Acquisitions

2 3 4

SALES & MARKETING

EXCELLENCE

Data management and analytics

CRM system

Capabilities and training

SURGICAL SOLUTIONS

PREVENTION

TREATMENT

ADJACENCIES

?Accelerated investments

to support growth and

efficiencies

Four enablers for continuous growth


Strong product pipelinePRODUCT PIPELINE 2017-2019

TR

EA

TM

EN

TP

RE

VE

NT

ION

SU

RG

ICA

L S

OL

UT

ION

S

Chronic wound management Acute wound management

Antiseptics Skincare Turning & positioning Interface dressings

MIS - Laparoscopy Orthopaedics Staff protection

Post Op

Indicative products and solutions over the coming period

Tray portal

Maintain our premium position

Take share


New state-of-the-art factory in Czech Republic – 17 May 2017

1. Seventh largest foreign direct investment in the Czech Republic in 2014, when the grants were signed

Mölnlycke’s largest investment to date, EUR ~70 million,

7th largest foreign direct investment in the country(1)

Production of customised surgical procedure trays

Meets the increasing demand from our customers of

cost-effective and safe surgical solutions

Increase efficiency by producing higher volumes

Change of operating business model – assembling trays

at order, sterilising them in-house before shipping either

directly to the customers or via distribution centres,

offering increased flexibility

1

2

3

4

5


1

Long track record

of strong

organic growth

Leading positions in

core markets

2

Strong product

pipeline

3

Solid financial

performance

4

Committed

long-term owner

5

We are in a good position

They are not going to rest on their laurels,

they are going to get better,

and they are going to prove every day

that they are a better company.

Surgeon, UK

Documents

Mölnlycke · 2019. 6. 27. · Leading market share across segments Global –Advanced Wound Care(1) Total market ~ EUR 2.7 billion 2008 2016 #1 72% market share interface dressings