Coloplast A/S : H1 2020/21 roadshow presentation

Roadshow presentation

H1 2020/21

Cartago factory, Costa Rica

Making life easier

STRIVE25: SUSTAINABLE GROWTH

LEADERSHIP

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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Q2 organic growth of 2% and underlying EBIT margin of 33%1) - underlying EBIT margin guidance raised to 32-33% from 31-32%

REVENUE GROWTH

Reported revenue (mDKK)			0%
Organic growth			+4%
Reported growth	-1%
9,535	9,491
	+2%
4,823		4,753

	Q2 19/20	Q2 20/21		H1 19/20	H1 20/21
		EBIT
EBIT (DKKm)
EBIT margin,
constant currencies (%)1)	34	32	33
Reported EBIT	32	33	3,014	3,113
margin (%)1)
	1,542	1,577
	Q2 19/20	Q2 20/21		H1 19/20	H1 20/21

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

Q2 Highlights

• Organic growth of 2% and -1% reported growth in DKK
• Chronic Care growth was negatively impacted by DKK 150m stock building in comparison period and lower growth in new patients due to COVID-19 in Europe, in particular in the UK
• 3% organic growth in Interventional Urology, driven by the Men's Health portfolio in the US
• 1% organic growth in Wound & Skin Care. Wound Care in isolation grew 9%, driven by Europe and China
• EBIT margin before special items of 33% against 32% in Q2 last year reflecting lower travel and sales & marketing expenses due to COVID-19, efficiency gains and continued commercial investments
• ROIC after tax before special items of 42% impacted by Nine Continents Medical acquisition in November 2020
• Further provision of DKK 200m in Q2 related to Mesh litigation due to increased legal costs. Around 97% of known outstanding cases have been settled. The Coloplast MDL was closed in December 2020.
• Effective as of July 1, 2021, Coloplast was awarded a contract for ostomy products with Vizient, the largest Group Purchasing Organization in the US
• Half year interim dividend of DKK 5.00 per share
• 2020/21 organic growth guidance unchanged, EBIT margin guidance raised
• • Organic revenue growth of 7-8% and 4-5% reported growth in DKK
  • Reported EBIT margin before special items raised to 32-33% from 31-32% due to efficiency gains and lower costs as a result of COVID-19. Reported EBIT after special items expected to be 31-32%
  • Capex of around DKK 1.1bn and effective tax rate of around 23%

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Q2 growth driven by Ostomy Care in Emerging markets, offset by stock building in comparison period and COVID-19 impact in Europe

Q2 20/21 revenue by business area

Q2 20/21 revenue by geography

Business area

Ostomy Care

Continence Care

Interventional Urology

Wound & Skin Care

Coloplast

Group

Reported revenue Q2	Organic growth	Organic growth
DKKm	Q2	H1
	4%	5%
		1,936
1,719	0%	3%
495	3%	4%
603	1%	1%

4,753

2%

4%

Geographic area

European markets

Other developed markets

Emerging markets

Coloplast

Group

Reported revenue Q2

DKKm

2,768

1,143

842

4,753

Organic growth	Organic growth
Q2	H1

-2%0%

5%6%

14%15%

2% 4%

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Ostomy Care grew 4% in Q2 driven by Emerging markets; negative impact from stock building in Europe in Q2 last year and COVID-19

Ostomy Care performance

10

			6
	4	3		4
	2
		1	1
		0
1,920	1,870	1,841	1,932	1,936

Q2 19/20	Q3 19/20	Q4 19/20	Q1 20/21		Q2 20/21
	Reported growth (%)	Organic growth (%)		Revenues (DKKm)

Comments

Quarterly performance:

• Q2 organic growth of 4% and 1% reported growth
• Growth was driven by solid performance across Emerging markets, and negatively impacted by Europe
• • Emerging markets growth was led by China, impacted by an easier comparison period, as well as LATAM and Russia
  • Europe was impacted by stock building in Q2 last year, and lower growth in new patients due to COVID-19, particularly in the UK, as only the most acute ostomy surgeries have taken place
  • Good growth contribution from the US. Coloplast now has a position on the two largest GPOs, Vizient and Premier
• From a product perspective, growth was driven by the SenSura® Mio portfolio, and in particular SenSura® Mio Convex, as well as the Brava® range of supporting products

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