Coloplast A/S : 9M 2020/21 roadshow presentation

Roadshow presentation

9M 2020/21

Making life easier

STRIVE25: SUSTAINABLE GROWTH

LEADERSHIP

'I love taking my boat out and I do so whenever I can.

Sometimes the weather stops me. But I won't let my

condition stop me.'

Flemming

Coloplast Group - Ostomy Care / Continence Care / Wound & Skin Care / Interventional Urology

Forward-looking statements

The forward-looking statements contained in this presentation, including forecasts of sales and earnings performance, are not guarantees of future results and are subject to risks, uncertainties and assumptions that are difficult to predict. The forward-looking statements are based on Coloplast's current expectations, estimates and assumptions and based on the information available to Coloplast at this time.

Heavy fluctuations in the exchange rates of important currencies, significant changes in the healthcare sector or major changes in the world economy may impact Coloplast's possibilities of achieving the long-term objectives set as well as for fulfilling expectations and may affect the company's financial outcomes.

Coloplast Group- Ostomy Care/ Continence Care / Wound & Skin Care /Interventional Urology

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Q3 organic growth of 11% and EBIT margin of 33% - financial guidance for FY 2020/21 narrowed

REVENUE GROWTH

Reported revenue (mDKK)		+3%
Organic growth		+6%
Reported growth	+9%
14,326
	13,954
	+11%

4,419	4,835

Q3 19/20 Q3 20/21 9M 19/20 9M 20/21

EBIT

EBIT (DKKm)
EBIT margin,		31	33
constant currencies (%)	33
4,382	4,705
Reported EBIT 31
margin (%)
1,368	1,592
	Q3 19/20	Q3 20/21		9M 19/20	9M 20/21 1)

1. Before special items of DKK 200m in Q2 20/21 related to the existing lawsuits in the US alleging injury resulting from the use of transvaginal surgical mesh products

Q3 Highlights

• Organic growth of 11% and 9% reported growth in DKK
• Organic growth rates by business area: Ostomy Care 4%, Continence Care 5%, Interventional Urology 82% and Wound & Skin Care 17%
• Chronic Care was positively impacted by improving underlying growth in Europe as well as a lower baseline. Growth was partly offset by lower growth in new patients in the US due to COVID-19, in especially Continence Care, as well as distributor destocking
• Ostomy Care delivered a softer quarter in Emerging markets due to tender phasing in the Middle East and Russia. The tenders are confirmed for delivery in Q4
• Growth in new patients within Ostomy Care normalized towards pre-COVID levels during Q3. Continence Care is taking longer to normalize, but the trend during Q3 was positive
• Interventional Urology growth was driven by broad-based recovery in elective procedures, led by the Men's Health portfolio in the US and a low baseline
• Wound Care in isolation grew 20%, growth was driven by Europe and China, helped by a weaker comparison period
• Reported EBIT margin of 33% against 31% in Q3 last year, positively impacted by efficiency gains and lower level of commercial activities, partly offset by continued investments
• ROIC after tax was 42%
• 2020/21 financial guidance narrowed
• • Organic revenue growth now expected in the lower end of the 7-8% range. Reported growth in DKK is still expected to be 4-5%
  • Reported EBIT margin before special items now expected in the upper end of the 32- 33% range. After special items, the reported EBIT margin is now expected to be in the upper end of the 31-32% range
  • Unchanged capex of around DKK 1.1bn and effective tax rate of around 23%

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We have made significant progress across the Clinical Performance

Program

Status October 2020

Status June 2021	Expected launch

Digital ostomy	Pilot studies conducted with	✓
solution	successful results
	Initial pilot studies indicated	✓
New ostomy	positive outcomes
platform	Pivotal study showed non-	
	significant results

New catheter	Pilot studies conducted with	✓
platform	successful results

• CE mark has been granted
• Payer pilot studies in Germany and the UK to be initiated in Q4 2021
• Optimized product design
• New pivotal study to be initiated towards the end of 2021
• Solid progress on product design and performance
• Pivotal study design ogress

Product launch expected in first half of strategy period

Product launch

expected in

second half of

strategy period

Product launch expected in first half of strategy period

Simultaneously, continue our launch cadence into existing categories within ostomy care and continence care

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Q3 growth was driven by a recovery in Interventional Urology led by

Men's Health and improving underlying growth in Europe

Q3 20/21 revenue by business area

Q3 20/21 revenue by geography

Business area

Ostomy Care

Continence Care

Interventional Urology

Wound & Skin Care

Coloplast

Group

Reported revenue Q3	Organic growth	Share of organic
DKKm	Q3	growth
	4%	14%
		1,915
1,744	5%	16%
542	82%	52%
634	17%	19%

4,835

11%

100%

Geographic area

European markets

Other developed markets

Emerging markets

Coloplast

Group

Reported revenue Q3

DKKm

2,844

1,183

808

4,835

Organic growth	Share of
Q3	organic growth

10%51%

17%36%

8%13%

11% 100%

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