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Page 1
Value creation through profitable growthBerenberg European Conference 2014
Anders Lonning-Skovgaard, EVP & CFO
Page 2
07/08 08/09 09/10 10/11 11/12 12/13 13/14
Total Shareholder Return ~38% CAGR
63
74
Ennova benchmark Coloplast
Coloplast Engagement Survey 2014
Patient View Survey 2014
• 300 patient groups from 42 countries
• Coloplast #1
In recent years we have delivered great results
Outperforming
peers
Attractive
shareholder return
Motivated
employees
#1 among
our consumers
22
33
10152025303540
09/10 13/14
Coloplast AS
Median
Upper quartile
Coloplast EBIT margin versus peer group (%)
Page 3
How we compete Where we compete
Develop and market the world’s best products
Interact and build consumers relations
Invest in sales pressure
Secure an efficient setup
Our strategy remains centred on value creation through profitable organic growth
Untapped potential in Europe
Increased momentum in Other Developed Markets
– incl. breakthrough in US
Expansion in Emerging Markets – incl. leadership
in select countries
Wound Care leadership in key Emerging Markets +
pockets of growth in mature markets
Global potential in Urology Care
Page 4
We have launched significant innovative consumer oriented products in all areas...
- Continence Care - - Ostomy Care - - Wound Care - - Urology Care -
Page 5
We believe consumer relations will be key to our future success and we reach out to consumers via two programs
Coloplast® Care Direct-to-Consumer
CARE is a retention program Direct-to-Consumer is a marketing program
Page 6
We currently invest to grow…
Sales force60%
Consumer programs25%
Other15%
Sales investments*...
Emerging Markets60%
Other Developed Markets
20%
Europe20%
* 12/13 to Q2 13/14. HQ investments allocated to geographies pro rata.
20132012
+10%
Rep count development 2012 to 2013
...by area:
...by type:
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...and we have great potential for further sales investments- Key areas for further investments -
Continence Care
Ostomy Care
Wound & Skin Care
Urology Care
European Markets Other Developed
Markets
Emerging Markets
Expand Wound Care
Consumer programs Capture fair share Build markets and
secure leadership
Page 8
We have an ambitious long term guidance
7 – 10%
Revenue growth
- annual organic -
0.5 – 1.0%
EBIT margin
- annual expansion -A B
Page 9
Mix
Price
Volume
Net effect
Market (all-else-equal)
Relatively
unchanged
~1%
price
pressure
Mid single
digit growth
~5%
value growth
Coloplast efforts
Up
selling
Price
optimization
Share
gains
Volume and value
share gains
Ongoing
value
upgrade
< ~1%
price
pressure
High single
digit growth
7- 10%
value growth
Net effect on Coloplast
We accelerate volume growth and manage price pressure...A
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...while driving economies of scale in our cost functions
Source: Coloplast annual reports
Scalability potential Investments requirementsOutlook
38,7 31,3
009/10 13/14
High Medium
29,5 28,3
009/10 13/14
Medium High
5,8 4,00
09/10 13/14
High Low
4,3 3,10
09/10 13/14
Medium Medium
Development
Percentage of revenue
Outlook Cost item
As reported
COGS
Distribution
Admin
R&D
B
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In sum, Coloplast offers an attractive investment case with continued value creation through profitable growth
Stable and attractive market fundamentals
Value creation
Organic
commercial
potential
Scalable
business
model
Page 12
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