KBC London Roadshow
2024
London - 28 May 2024
Karin de Jong
CFO
Disclaimer
The contents of this document, including all statements made therein, are based on estimates, assumptions and other information currently available to the management of Fagron.
Certain statements in this presentation may be deemed to be forward-looking. Such forward-looking statements are based on current expectations and are influenced by various risks and uncertainties. Consequently, Fagron cannot provide any guarantee that such forward-looking statements will, in fact, materialize and cannot accept any obligation to update or revise any forward-looking statement as a result of new information, future events or for any other reason.
This document, including all information contained therein, is not intended as, and may not be construed as, an offer or solicitation by Fagron for the purchase or disposal of, trading or any transaction in any Fagron securities. Investors must not rely on this information for investment decisions and are solely responsible for forming their own investment decisions. The information provided in this document is intended for information purposes only and do not constitute a prospectus or any other type of offering document pursuant to any applicable legislation.
2
Agenda
Introduction to | Q1 2024 results |
Fagron |
4 13
3
Shaping the future of personalised medicine
Active in 35+ countries
3,500+ people globally
80+ facilities
3 Segments | 3 Regions |
37,4% | 40,5% | |
43,0% FY 2023 41,0% | FY 2023 | |
16,0% | 22,2% | |
MSCI ESG Rating
AAA
Essentials | Brands | Compounding Services | EMEA | LatAm | NA | |||||||
FY 2023: €763m | Revenue | FY 2023: 19.5% | REBITDA | FY 2023: 1.4x | Net Debt |
Margin | ratio | ||||
4
Uniquely integrated across entire compounding value chain
Patient journey | Customer journey |
Drivers | |
Convenience | |
Administration form | |
Dosage strengths | |
Pharmacogenomics | Personalizing |
Combination | medicine |
therapy Innovation | Brands & |
therapy | |
Essentials |
Industry
Pharmacy
1 2 3 4
Patient | Prescriber | Personalizing | Pharmacist | Wholesaler | Patient |
medicine |
c. 1 - 1.5% | (Sterile) | |
of the global pharma industry | Compounding | |
Services | Personalizing | |
medicine | ||
Hospital & Clinic |
5
Robust top-line growth and profitability with high cash conversion
Organic Revenue Growth (at CER)
REBITDA and REBITDA Margin
25,0%
30%
20%
10%
10,5%
190,00 | |||
170,00 | 21,9% | 22,3% | |
150,00 | 20,6% | ||
130,00 | 19,1% | 19,5% | |
24,0%
23,0%
22,0%
21,0%
20,0%
7,4%
0%
-10%
2019 | 2020 | 2021 | 2022 | 2023 | ||||
EMEA | LatAm | North America | Group | |||||
Revenue diversification
120,0% | 534.7 | 556 | 573.8 | 683.9 | 763 | |||
100,0% | ||||||||
80,0% | 27,6% | 28,7% | 31,0% | 35,8% | 40,5% | |||
60,0% | 23,8% | 23,2% | 24,6% | |||||
23,7% | 22,2% | |||||||
40,0% | ||||||||
20,0% | 48,6% | 48,1% | 44,5% | 40,4% | 37,3% | |||
0,0% | ||||||||
2019 | 2020 | 2021 | 2022 | 2023 | ||||
EMEA | LatAm | North America | ||||||
110,00 | ||||||||
123,9 | 130,7 | 149,0 | ||||||
90,00 | 117,0 | 118,3 | ||||||
70,00 | ||||||||
50,00 | ||||||||
2019 | 2020 | 2021 | 2022 | 2023 | ||||
REBITDA | Margin | |||||||
Net Debt / REBITDA & Cash conversion
2,5 | 66,0% | 75,0% | 66,3% | 69,6% | 68,1% | ||
2 | |||||||
1,5 | 2,33x | ||||||
2,06x | 2,11x | ||||||
1,90x | |||||||
1,40x | |||||||
1 | |||||||
0,5 | |||||||
2019 | 2020 | 2021 | 2022 | 2023 | |||
Net Debt/REBITDA | Cash Conversion | ||||||
19,0%
18,0%
17,0%
16,0%
15,0%
90,0%
70,0%
50,0%
30,0%
10,0%
-10,0%
-30,0%
-50,0%
-70,0%
CER: Constant Exchange Rate
6
Unrivalled global presence with increasing diversification
EMEA - FY 2023
21.5%
REBITDA margin
+2.2%
Organic revenue growth at CER
31.2%
3744.35%
52.2% 16.7%
- Market leader in mature home markets
- Strong challenger positions in most other markets
Latin America - FY 2023
16.5%
REBITDA margin
+2.3%
Organic revenue growth at CER
2.1%
31.2%
22.2%
66.6%
- Market leader in B&E
- Active in Colombia in Compounding Services
North America - FY 2023
19.4%
REBITDA margin
+25.5%
Organic revenue growth at CER
21.4%
40.5%
7.0%
71.6%
- #2 in Compounding Services
- #3 in B&E
CER: Constant Exchange Rate | Compounding services | Brands | Essentials | 7 |
Key strategic priorities to drive sustainable growth
Global leadership in | Become leading, global, | ||
1 Brands & Essentials | platform for Sterile | 2 | |
across our markets | Outsourcing Services | ||
Enablers |
3 Optimize non-sterile compounding &
registration business
Quality focus
Global Operational
Excellence
Fagron Academy
Disciplined M&A
Build the organization 4 of the future with a
clear sustainable focus
8
Revenue growth to benefit from LFL in high-single digits
EMEA
- Market share optimization initiatives in mature home markets
- Continued growth in other countries (CS and B&E)
Low-single digits
Latin America
Primarily driven by B&E
High-single digits
North America
Stronger overall positioning in B&E and CS
Mid-teens
+8%
organic revenue
CAGR
CAGR at CER (2022 - 2026)
Compounding Services to grow faster than B&E
Targeting higher growth in Brands than in Essentials
CER: Constant Exchange Rate | 9 |
Cash generation & earnings conversion to remain sustainably high
REBITDA margin
Consistent
Average REBITDA margin 2022-2026
Continued benefits from | CAPEX to remain |
asset light model | well under control |
10 - 11% | 3% - 3.5% | |
Operating Working Capital | CAPEX | |
as % of revenue | as % of revenue | |
≥ 70% | ||
+ CAPEX disposal optionality | ||
Operating cash conversion | ||
(% of REBITDA - 2022-2026) | ||
≥ 50% | ||
FCF conversion | ||
(% of REBITDA - 2022-2026) |
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Fagron NV published this content on 28 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 May 2024 09:22:08 UTC.