Leading Intimate Healthcare · Full Year 2011/12 sales: DKK11.0bn . J.P.Morgan European Healthcare Conference 24 June 2013 Specialising in intimate healthcare needs Page 5 C re Non-C

J.P. MORGAN EUROPEAN HEALTHCARE CONFERENCE 24 june 2013

Leading Intimate Healthcare Lars Einar Hansen, Senior Vice President

Page 1

J.P.Morgan European Healthcare Conference

24 June 2013

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.

Page 2


24 June 2013

Agenda

Page 3

• Introduction to Coloplast

• Accelerating our global growth

• Margin expansion potential

• Q&A


24 June 2013

Ostomy Care 42%

Continence Care 35%

Urology Care 9%

Wound & Skin Care

14%

European markets

67%

Other developed markets

21%

Emerging markets

12%

Coloplast is a leading medtech company

Page 4

Group revenue FY 2011/12 by segment Group revenue FY 2011/12 by geography

#1

#4

#1

#x Global position

Full Year 2011/12 sales: DKK11.0bn


24 June 2013

Specialising in intimate healthcare needs

Page 5

Ch

ron

ic C

are

N

on

-Ch

ron

ic C

are

Ostomy

Care

Continence

Care

Urology

Care

Wound

Care

People who have had their intestine redirected to an opening in the abdominal wall

People in need of bladder or bowel management

People with dysfunctional urinary and reproductive systems

People with difficult-to-heal wounds

Who are our typical users How do we help them?

SenSura® Mio Ostomy bag

SpeediCath® Compact male urinary catheter

Titan® Penile implant

Biatain® Silicone Foam wound dressing


24 June 2013

Stable intimate healthcare trends

Growing elderly population increases

customer base for Coloplast products

Expanding healthcare coverage for

populations in emerging markets increases

addressable market

Surgical and medical trends are towards

earlier detection and cure, eventually

reducing addressable market

Economic restraints push for

reimbursement reforms, introduction of

tenders, and lower treatment cost

Demographics

Emerging markets

Surgical and

medical trends

Healthcare reforms

Page 6


24 June 2013

Agenda

Page 7




• Q&A


24 June 2013

Since 2008 we have had a strong focus on profitability which has driven significant value creation

Page 8

9%

5% 8%

16% 16% 18%

21%

10% 6%

10%

15%

23%

30%

38%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

FCF to sales ROIC after tax

879

749

994

1.3

95

1.9

95

2.5

81

3.2

55

8%

10% 7%

6% 7%

6% 6%

13%

9%

12%

16%

21%

25%

30%

0%

5%

10%

15%

20%

25%

30%

35%

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 E2012/13

EBIT Organic growth

EBIT Margin EBIT Margin guidance

Organic growth guidance

31-32%

6-7%


24 June 2013

In March 2012 we updated our strategy with the aim of increasing revenue growth

Page 9

• Continued growth in the core developed markets in

Europe

• Increased growth in the developed markets

outside Europe

• Further expansion and growth in Emerging Markets

• Stabilization of the European Wound Care business

• Globalization of Urology Care

• A strong new product pipeline

• Continued cost discipline and operational

excellence in manufacturing

Value creation will come from increased growth

based on a strong new product pipeline

combined with continued cost discipline and

operational excellence in manufacturing


24 June 2013

In Europe we are stepping up to the challenge and leveraging our market leader position

Page 10

Key priority Our situation

of our net revenues 67%

40-50% market share*

* Chronic Care market share

Capture

profitable growth

based on high

market share


24 June 2013

Driven by a pipeline of new products with a clear commercial focus…

Page 11


24 June 2013

…and a new sales channel that gets us even closer to our customers

Page 12

Through Coloplast Care we…

Connect to end users and form

lifetime bond

Advise with the right information

at the right time

Respond with frequent phone

calls, emotional support and

monthly newsletters

Enable our end users by

making their lives easier

Market to the

individual’s need

Information tailored

to the individual

Cu

sto

mis

ed

me

ssa

ge

an

d d

ialo

gu

e

Sp

ecific

pro

du

cts

an

d s

erv

ice

s

DtC* is direct individualized marketing…

*DtC is ”Direct to Consumer”

http://connect.coloplast.com/Groups/global-marketing/commercial-excellence/Pages/coloplast-care-1.aspx





24 June 2013

The developed markets outside Europe hold high potential for taking market shares

Page 13

Our situation




Key priority

Capture

market share

in developed

markets


24 June 2013

Through investments in identified growth opportunities

Page 14

Canada

Australia

Japan

• Accelerate growth by leveraging strong

market position

• Accelerate new patient discharge,

• improve retention and drive conversion

• Accelerate growth in intermittent catheters • Strong focus on NPD and increase

investments in the market

• Understand and explore large potential • Leverage market leader position

USA • Defend and grow through NPD capture

and new product introductions

• Breakthrough via NPE and end user

retention

Ostomy Care Continence Care


24 June 2013

“Back to Basics” - Strategic themes

Breakthrough in OC through NPD capture and end

user retention

Defend and grow CC through NPD capture and new

product introductions

Re-commit to Skin Care growth and stabilise Wound

Care

Clearly link commercial push and pull efforts

Selectively invest to grow

Page 15

Out of the four markets US holds the highest potential

US Chronic Care growth ambition

13/14 Ambition10/11 Actual

“mid-single

digit growth”

“double digit

growth”


24 June 2013

Great potential to build markets and capture market shares in Emerging Markets

Page 16

Our situation



Key priority


Educate,

create and grow

selected markets


24 June 2013

With Ostomy Care and Wound Care as the main growth drivers

Page 17

~60

~5

Emerging

markets 100

Continence

Care ~15

~20

• Assura® line is the main brand

but SenSura® is growing rapidly

• Mature products like Comfeel®

account for majority of business

while Biatain® is gaining traction

• EasiCath® and SpeediCath® are

main brands

• Primarily disposable urology

products

Emerging Markets breakdown per business area Comments

Percent of CP sales

Ostomy

Care

Wound

Care

Continence

Care

Urology

Care

Emerging

Markets


24 June 2013

Geographical expansion holds significant longer term potential

Page 18

Build on and

accelerate growth

platform e.g. in

• China

• Brazil

• Russia

• Argentina

Develop growth

platform e.g. in

• MENA

• Mexico

• India

• South Africa

• South East Asia

• Selected ROLA

markets Selected markets


24 June 2013

Agenda

Page 19




• Q&A


24 June 2013

Transfer of production to low cost countries has created a very cost efficient production

Page 20

60% 25%

10% 5%

Hungary

China

Denmark

US/ France

9%

11%

48%

10%

22% Salary - Direct

Salary - Indirect

Materials (RM & SFG)

Design principles

• Consolidate on fewer sites to reduce

overheads

• Leverage international platform in

Global Operations

• Improve efficiency in labour and

material

Innovation &

Competency Centre

High Volume Production

Specialised Production

*FY 2011/12 Cost of goods sold, DKK 3,678 million

Minneapolis

Mankato

Tatabánya

Nyirbátor Sarlat

Zhuhai

Mørdrup & Thisted


24 June 2013

But we expect to do more with our current Global Operations plan

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Lean in volume production

Re-design for manufacturing

Global sourcing and supplier relations

management

Focus on fixed costs and environment

Cost effective distribution

Design for manufacturing & fast ramp-up

Will contribute 50 –

100 bps to gross

margin annually with

the current outlook on

pricing, currencies

and raw materials


24 June 2013

Operating leverage will generate funds for investments in growth

Page 22

High value growth in Europe

Continued cost discipline

Generates funds for investments in growth

and leaves potential for improving cost

ratios

454

451

520

570

613

575

651 742

693

770 9

01

891

897

859

19,8

19,9

21,2

22,6

24,1 23,3 25,1

28,9 26,1

28,6

31,9 31,3 31,3 30,2

0

5

10

15

20

25

30

35

0

100

200

300

400

500

600

700

800

900

1.000

% DKKm

EBIT EBIT margin

29,2 29,8 28,9 30,3 29,9 30,4

29,1 28,2 29,5 28,6 27,6

29,4 28,3 28,2

6,0 6,4 6,2 4,8 5,4 6,0 6,1 6,2 6,1 5,9 5,8 4,8 4,8 4,8

4,0 4,8 4,3 4,1 4,4 4,5 4,0 3,4 3,6 3,1 2,8 3,0 3,2 3,6 0

5

10

15

20

25

30

35

DKKm Cost-to-sales ratios (%)

Dist.

Adm.

R&D


24 June 2013

We expect continued value creation driven by...

• Stable market trends in our Chronic Care

business

• Increased focus on growing the business

outside Europe

• Additional improvements in manufacturing

• European leverage will provide funds for

further investments in sales

• Strong cash flow leaves potential for

increasing cash returns

Page 23


24 June 2013

Offering a unique potential of stable

growth, further margin expansion

and increasing dividend yield

Documents

Leading Intimate Healthcare · Full Year 2011/12 sales: DKK11.0bn . J.P.Morgan European Healthcare Conference 24 June 2013 Specialising in intimate healthcare needs Page 5 C re Non-C