17 February 2011
Presentation Mediq – 30 June 2011 Agenda
• Profile and strategy Mediq
• Financials
• Management agenda and outlook
1 Profile
International provider of medical devices, pharmaceuticals and associated care
• Revenues 2010 € 2.6 billion • 8,200 employees in 15 countries • Largest player in Dutch market • Attractive international platforms • Incorporated in 1899 • Listed on Euronext Amsterdam since 1992
2 Three distribution channels
DIRECT INSTITUTIONAL PHARMACIES
Homecare deliveries of medical Marketing, sales & distribution of Pharmacies devices, biopharmaceuticals and medical devices and and wholesaling the associated care pharmaceuticals to hospitals and other care institutions
3 Transformation
In past 5 years, Mediq transformed from • Focus on pharmaceuticals to focus on medical devices • Dutch to multinational • OPG to Mediq
4 Active in 15 countries
Norway • Direct Sweden • Institutional • Institutional Finland Denmark • Institutional USA • Direct • Direct • Institutional Netherlands Estonia/Latvia/ • Pharmacies Lithuania • Direct • Institutional • Institutional Poland Belgium • Pharmacies • Institutional
France Hungary • Institutional • Direct Switzerland Germany • Institutional • Direct
5 5 Our mission
We improve patients’ health with the best and most efficient healthcare delivery We do so by providing pharmaceuticals, medical devices and the associated care
THE PATIENT IS AT THE CENTER OF EVERYTHING WE DO
6 Market trends
Volume growth with aging population Price pressure to keep healthcare affordable Patients are increasingly well informed
7 7 Strategy
Building an international company in healthcare • Growth Direct & Institutional • Strengthening leading pharmacy position (NL, P) • Efficiency improvement
8 8 Mediq Direct
Enabling patients to cope more effectively with their condition • Discrete home deliveries • Ostomy/ diabetes/ incontinence/ woundcare supplies, respiratory care, enteral nutrition, biopharmaceuticals • 24X7 dedicated customer service and nurses • Brand neutral
• 760,000 active patients
9 Mediq Direct
Why we are the provider of choice
MANUFACTURERS PATIENTS
• Compliance programs for patients • Specific centres of expertise • Market intelligence • One stop shopping • Supply chain management • Reorder reminders • Nationwide delivery • Web services • Sales and market power • Ease of reimbursement • 24/7 customer service
PRESCRIBERS PAYORS
• Access to a broad assortment • Broad assortment of products & • Brand neutrality services • Ease of web-based prescription system • Cost effectiveness • Subcontractor for home treatment • Nationwide delivery • Management information • Management information • Innovative care concepts • Innovative care concepts
10 Mediq Institutional
Partner for professionals • Marketing, sales and distribution to care institutions • Broad product range • Including training for professionals MEDICAL DEVICES PHARMACEUTICALS
• Medical disposables • Wholesale for hospitals and nursing homes • Medical technical equipment • Cooperation with hospital pharmacies and • Service contracts support of their operational business • Training programmes
11 Mediq Institutional
Customer segments
NL BE FR DK GE NO SW FI EE LT LV CH
CARE ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ INSTITUTIONS HOSPITALS ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
GPs & ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ SPECIALISTS RETAIL ✔ ✔ ✔ ✔ ✔ ✔ ✔
INDUSTRY / ✔ ✔ ✔ OTHER LABORATORY ✔ ✔ ✔ ✔ ✔
3RD PARTY ✔ ✔ LOGISTICS
12 Growth driver: Direct & Institutional
•18 acquisitions in 5 years and solid organic growth •Consolidator in growing market
€ 1,041 mn
CAGR 22%
€ 386 mn
2005 2010
13 Clear shift in profile Mediq
EBIT ordinary activities
2005 2010 •Pressure on sales and EBIT of Pharmacy business 24% •Compensated by 42% steady growth 58% D&I 76%
Direct & Institutional Pharmacies NL, Poland
14 Price fall in Dutch pharmacies
Dutch spending on pharmaceuticals is lowest in Western Europe
Average annual pharmaceutical spending per capita TEVA 15 capsules Pantoprazol € 1
Mars € 1
SFK – Jan 2011
15 Mediq Pharmacies Netherlands
Adopting to changed market circumstances • Provide innovative full-service pharmaceutical care and healthcare related products and services ◦ In close cooperation with GPs, other primary healthcare providers ◦ Tailored to patient, paid for by insurers and suppliers ◦ Supported by specialist expertise of our direct companies
• Complemented with broad range of OTC • Further centralisation and standardisation of back-office functions
16 From product margin to fee-for-service
New healthcare modules to increase compliance • Online service for chronic users (mijnmedicijnkompas) • Hayfever sms / app • Blood sugar test on diabetes • Asthma/COPD check • Proactive repeat medication • Real Time Medication Monitoring (SIMpill)
17
Agenda
• Profile and strategy Mediq
• Financials
• Management agenda and outlook
18 Strategic highlights 2010
Significant international expansion in Direct & Institutional Leading in a changing pharmacy market in the Netherlands Strengthening of Mediq brand and organisation
19 Highlights Q1 2011
• Revenues +7% driven by acquisitions Direct & Institutional
• EBITA from ordinary operations + 14%; increase at all 3 segments
• Net result -14% due to non-operational proceeds in Q1 2010
• Several significant acquisitions D&I in line with growth strategy
• Further process optimisation at Pharmacies Netherlands
• Incipient recovery wholesaling activities in Poland
20 Solid financial performance
Pressure on sales and EBIT Pharmacy business… …compensated by steady growth D&I
Sales, in € mn 2,730 EBIT, in € mn 2,477 2,603 2,634 132 2,281 783 125 593 109 469 882 1,041 61 102 97 52
1,129 1,168 1,142 1,093 68 86 1,070 75 68 72 759 869 718 663 525 32 19 19 5 4 3 5 5 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
DIRECT & INSTITUTIONAL PHARMACIES NETHERLANDS PHARMACIES POLAND** * Excluding non-operational items **known as Pharmacies International up until 2009, when Mediq still had pharmacy activities in Belgium PHARMACIES NETHERLANDS
PHARMACIES POLAND*
21 Sound cash flow and capital structure
Financial ratios well within Cash generative business covenants 12.2 11.2 11.8 10.4
9.5
INTEREST COVER MIN. 5X
DEBT COVER MAX. 3.5X
1.9 1.5 1.3 1.1 1.1
Q1 10 Q2 10 Q3 10 Q4 10 Q1 11
FREE CASH FLOW
CAPEX
CASH FLOW FROM OPERATING ACTIVITIES 35% dividend pay out
22 Agenda
• Profile and strategy Mediq
• Financials
• Management agenda and outlook
23 Outlook 2011
D&I • Revenue growth • Realisation further purchasing synergies • Operational (EBIT) margin 7% - 8% • EBITA margin 8% - 9% Pharmacies NL • Slight decline in revenues due to loss 30 Lloyds pharmacies at wholesale per June 2010 • - € 8 mn total effect of lower dispensing fee, lower claw back and preference policy; will be largely offset by cost savings and volume growth Pharmacies Poland • Revenue growth in line with market • Increase in profitability at both retail and wholesale operations
24 Management agenda 2011
Growth Direct & Institutional ◦ Organic growth ◦ International acquisitions ◦ Expand collaboration Mediq Pharmacies NL ◦ Expand combined sourcing ◦ Expansion exclusive distribution agreements Strengthening leading pharmacy formula ◦ Organic growth; increase sales from additional services and OTC ◦ Further collaboration with other healthcare providers and insurers in NL Increase efficiency ◦ Centralisation and standardisation ◦ Optimise logistics wholesale operations in Poland
25 Mediq in short
Attractive market fundamentals Leading market positions Successful execution of strategy Solid financial performance Sound cash flow and capital structure
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