Coloplast A/S : Q1 2022/23 roadshow presentation

Roadshow presentation

Q1 2022/23

Making life easier

STRIVE25: SUSTAINABLE GROWTH LEADERSHIP

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.

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Solid Q1 with 7% organic growth and 29% EBIT margin1. Unchanged FY 2022/23 guidance of 7-8% organic growth and 28-30% EBIT margin1

REVENUE GROWTH

Q1 2022/23 highlights

Reported revenue (mDKK)

Organic growth

Reported growth	+18%

+7%

5,169 6,105

Q1 21/22

Q1 22/23

EBIT

EBIT (DKKm)1

Reported EBIT margin1

32

29

1,649 1,774

Q1 21/22

Q1 22/23

• Organic growth of 7% and reported growth in DKK of 18%.
• Solid start in Chronic Care with strong momentum in Ostomy Care (8% organic growth). Solid performance in Continence Care (7% organic growth), despite continued impact from backorders in Collecting Devices
• Voice & Respiratory Care delivered high single-digit organic growth and contributed 9%-points to reported growth
• Soft start in Wound Care (declined 4%), impacted by baseline, backorders mostly in Europe and COVID-19 in China
• Strong broad-based growth in Interventional Urology (11% organic growth), led by the US Men's Health business
• Coloplast is launching Luja™, the new male intermittent catheter with a unique Micro-hole Zone Technology™. Luja is expected to be launched in key markets over the next 12 months
• EBIT before special items increased by 8%, to DKK 1,774 million, corresponding to a reported EBIT margin before special items of 29%, compared to 32% last year
• ROIC after tax before special items of 20%, against 43% last year, impacted by the Atos Medical acquisition
• Diluted earnings per share (EPS) before special items decreased by 7% to DKK 5.35, due to increased financial expenses driven by non-cash effect from currencies
• FCF was DKK 212 million, a 77% decrease vs last year, impacted by a decline in cash flow from operating activities, mostly due to increased net working capital. Net working capital for FY 2022/23 is still expected around 24%.

FY 2022/23 financial guidance

• Organic revenue growth still expected at 7-8%. Reported growth in DKK expected at 9-10%, from 11-12% previously, due to unfavourable FX development on USD, expected around -1%-point. Contribution from the Atos Medical acquisition to reported growth still expected around 3%-points (4 months impact)
• Reported EBIT margin before special items1 still expected at 28-30%, due to pressure from increased input costs
• CAPEX still expected at around DKK 1.4bn. Effective tax rate still expected around 21%

1. Before special items. Special items of DKK 13 million in Q1 2022/23 related to integration costs for the Atos Medical acquisition. Special items for FY 22/23 expected to be around DKK 50
   3 million for the Atos Medical integration. Special items of DKK 34 million in Q1 2021/22 related to one-off legal and advisory fees in connection with the acquisition of Atos Medical.

Q1 2022/23 organic growth was driven by a solid start in Chronic Care with broad based growth across regions excluding China

Q1 2022/23 revenue by business area

Q1 2022/23 revenue by geography

Business area

Ostomy Care

Continence Care

Voice & Respiratory Care

Wound & Skin Care

Interventional Urology

Coloplast

Group

Reported revenue FY	Organic growth	Share of organic	Geographic
DKKm	FY	growth	area
	8%	46%
		2,274
					European
					markets
1,987	7%	34%
480	-	-	Other developed
		markets

678	1%	3%
				Emerging
				markets
686	11%	18%
	6,105	7%	100%	Coloplast
	Group

Reported revenue FY	Organic growth	Share of organic
DKKm	FY	growth

3,434

5%

42%

1,634

9%

34%

1,037	9%	24%

6,105 7% 100%

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Ostomy Care is off to a strong start with 8% growth in Q1 and solid contribution from all regions excluding China

Ostomy Care performance

	13
9		9
9	10	8

Q1 2022/23 highlights

• All regions contributed to growth ex. China
•	Solid growth contribution from Europe, driven primarily by the UK
•	Solid momentum in the US with double-digit growth and continued
	advancement of our competitive position. Recent contract wins include
	Captis, a healthcare organisation under the Vizient™ umbrella, and a

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renewal of Coloplast's group purchasing agreement with Premier Inc.

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2,098 2,109 2,160 2,253 2,274

Q1 21/22	Q2 21/22	Q3 21/22	Q4 21/22	Q1 22/23
	Revenues (DKKm)	Organic growth (%)		Reported growth (%)

for another three years starting April 1, 2023

• Emerging markets ex. China was also off to a good start, led by LATAM

• Growth in China was hampered by a continued lower level of

procedural volumes and sales in the hospital channel due to COVID-19.

Despite the national lifting of the restrictions towards the end of Q1,

hospital access remains limited, negatively impacting procedural

volumes

• From a product perspective, the SenSura® Mio portfolio, and in particular

SenSura® Mio Convex, was the main growth contributor, followed by the

Brava® range of supporting products

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