Results summary Q3 2015 Patient’s strategy principles...2015/12/11 · Results summary Q3 2015 105% net result growth in Q3 2015 (YoY) PLN 79.2 million net result excluding non-recurring

Warsaw, 12th November 2015

Results summary Q3 2015

Patient’s strategy principles

Agenda

page 2 | RESULTS SUMMARY| Q3 2015

• Summary Q3 2015

• Market and financial results

• Financial target execution for 2015

• Patient strategy principles

Results summary Q3 2015

105%

net result growth

in Q3 2015 (YoY)

PLN 79.2 million

net result excluding

non-recurring items

after three quarters

of 2015

Page 3 | RESULTS SUMMARY| Q3 2015

Growing pharmaceuticals wholesale market

5.95 5.89

6.51

5.996.24

6.47

7.12

6.40 6.44

12.4%2.6% 1.7% 4.4% 4.9%

9.9% 9,.% 6.9% 3.3%

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Pharmaceuticals wholesale market in quarters and YoY dynamics

Q3 2013 – Q3 2015 (PLN billion)

Market growth

in Q1-Q3 2015

at the level of 6.5%

• Expected market dynamics slow-down in Q3

• Estimated further drop of market dynamics to the level of 2-3% in Q4

2013 2014 2015


NEUCA market position

Q1-Q3 2015:

28.9%

Q1-Q3 2014:

27.7%

1/3

of pharmacies in Poland

participate

in NEUCA Group’s

pharmaceutical

programmes

87%

of pharmacies in Poland

co-operate

with NEUCA Group


Our mission

We provide a better future to all

the independent

Pharmacies in Poland.


Client’s satisfaction* - NEUCA a quality leader

* Data from the Pharmaceutical Monitor published by IMS for Q3 2015 ccc

Complaint services

Telemarketing servicesTransport services Logistics services

4,52

4,244,2

NEUCA Pelion Farmacol

4,50

4,32

4,26


4,624,54

4,38


4,47

4,42

4,29


4,18

4,07 4,07


Regular offer Promotional offer

4,25

4,09 4,08



Assortment widthSupply continuity

4,19 4,2

4,08


4,314,28

4,19


Clients satisfaction* - NEUCA a quality leader

Trade conditions Sense of security

4,41

4,35

4,29


4,4

4,34

4,32


* Data from the Pharmaceutical Monitor published by IMS for Q3 2015 page 8 | RESULTS SUMMARY| Q3 2015

FINANCIAL

RESULTS

Q3 2015


Revenues

1 737

4 789

1 648

5 231

3Q 2014 1-3Q 2014 3Q 2015 1-3Q 2015

+9%

• Market dynamics slow-down in Q3

• UOKiK decision execution effect considering ACP Bydgoszcz wholesaler sale

-5%

Sales revenues

[PLN million]


Gross margin

• Positive, seasonal impact of sales structure changes

• Effectiveness of creating margin through relations with producers

• Growing share of private label products sale

8.59

8.939.18

9.71

10.11

3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015

+1.52

p.p.

Gross margin on sales [%]


Operating profit

15.3

57.2

30.1

94.7

3Q 2014 1-3Q 2014 3Q 2015 1-3Q 2015

EBIT

[PLN million]

EBIT excluding non-recurring items

[PLN million]

+97%

+66%

17.8

62.2

30.1

95.7

3Q 2014 1-3Q 2014 3Q 2015 1-3Q 2015

+54%

+69%

• Maintaining sales and management costs at the level of Q3 2014


Net profit

• Neutral impact on the financial activity result

12.1

59.2

24.8

78.4

3Q 2014 1-3Q 2014 3Q 2015 1-3Q 2015

Net profit

[PLN million]Net profit excluding non-recurring items

[PLN million]

+105%

+32%

14.1

50.2

24.8

79.2

3Q 2014 1-3Q 2014 3Q 2015 1-3Q 2015

+75%

+58%

• Lack of non-recurring items in Q3


Net indebtedness

2.51

1.75

1.341.41

1.31

30.09.2014 31.12.2014 31.03.2015 30.06.2015 30.09.2015

Dług netto/EBITDA

PLN 191 million

net indebtedness

at the end

of Q3 2015

• Significant lowering of net indebtedness/EBITDA ratio compared with previous year


Sales and gross margin growth of private label products

Gross margin in private label products and number

if items

[PLN million, items]

6.9

13.7

18.9

8.2

12.4

204

325

436

2013 2014 2015

wynik brutto 1-3QRoczny wynik bruttoLiczba produktów na koniec 3Q

• Sales at the level of PLN 63.4 in Q1-Q3 2015 (growth by 54% YoY)


FINANCIAL TARGET

REALISATION

FOR 2015


Net result forecast excluding non-recurring items for 2015

79.2%

forecast

realisation

after Q1-Q3 2015

PLN 100 million

net profit

in 2015


PATIENT’S

STRATEGY

PRINCIPLES


Main market trends and mission

1. Increasing society welfare(income factor)

2. Ageing society(demografic factor)

3. Technology and medical knowledge development

(technologic factor)

Three factors stimulating growth of demand for

services on the healthcare and health protection

market

NEUCA Group’s mission in the

patient area

We facilitate access

to healthcare to

improve patients’

quality of life and

sense of security


Map of synergies

Pharmacy

Marketing

Advertising services

IT Services

Centre for Common Services

Logistics services

Packaging line

Private label

products

Pacjent

Telemarketing

Outpatient clinics

Telemedicine

Clinical trials

Patient


Values for patients and synergies

Creating a value for a patient through a number of synergies

we strengthen relation with our strategic client

– independent pharmacy.

1. We offer patients access

to high quality information

and knowledge(care in outpatient clinics)

2. We ensure access to

products and medical

services (private label products and clinical

trials)

3. We improve quality of life

and solve patients’ health

problems (telemedical

solutions)

1. Patients reactions

creation – improvement of

competitiveness and

profitability of pharmacies

2. Private labels products

and services portfolio

based on the knowledge of

patients

3. Promotion and sales

between the channels,

products and services

4. Co-operation with

producers


PHARMACY

Patient dedicated segments – outpatient clinics

Primary health care outpatient clinics in the Group

• 14 clinics in 6 regions

• Coverage: 50 thousand patients with focus on primary healthcare

• Target investment budget PLN 30 million

• Mediporta – Electronic Medical Documentation for clinics

Market environment

• PLN 7.7 billion – estimated market value of primary healthcare

• Dispersed market – ca. 4% private care controlled by biggest players

• Over 52% of all medical advises administered by primary healthcare outpatient clinics

PLN 39 bn*National market

of private healthcare

PMR Estimates: 2015.

OUTPATIENTCLINICS


Patient dedicated segments – clinical trials

Clinical trials in the Group

• 3 complimentary companies: Clinport, Medica Pro Familia,

BioScience

• Focus on most profitable SMO model

• 7 centres in the country

• 120 ongoing clinical trials

Market environment

• 3 - 4 % average national growth of clinical trials

• 500 trials yearly commissioned by 50 entities

• 70% trials executed by foreign companies

PLN 1 billion*National market

of clinical trials

CLINICAL TRIALS

PMR Estimates: 2015. page 23 | RESULTS SUMMARY| Q3 2015

Patient dedicated segments – telemedicine

Telemedicine in Group

• Work on device to monitor diabetes - Diabdis

• Planned commercialisation of the device in 2016

• Co-operation with producers

Market environment

• 5 segments: telecare, telediagnostics, teleconsults, teleteaching, teletreatment

• Telecare and telediagnostics correspond to 60% of the market

• Lack of market regulations in Poland; development of telemedicine - one of the

strategy elements of Ministry of Health

PLN 27.9

billion* value of

telemedical

services

market

in Europe

Forecast for 2017, source KIGMED

TELEMEDICINE


Summary

Where we are Where we head to

• We develop a coherent

strategy around the access

to knowledge, to products

and services for patients

• Synergies allow to develop a

sum of profits offered to

independent pharmacies to

increase their

competitiveness

• The takeover allows to reach

positive financial effects in

the margin level

• We reach significant financial

effect as a contribution to net

profit visible in the three

year’s perspective

PharmacyPatient

Outpatient clinics

PLN 9.5 million*

revenues

14 premises,

50 thousand

patients

Telemedicine

Diabdis

– telemonitoring

for patients with

diabetes

Clinical trials

PLN 2.5 million*

revenues

7 premises,

120 trials

* Revenues for Q1- Q3 2015, since the take-over moment page 25 | RESULTS SUMMARY| Q3 2015

THANK YOU

FOR YOUR

ATTENTION!

Documents

Results summary Q3 2015 Patient’s strategy principles...2015/12/11 · Results summary Q3 2015 105% net result growth in Q3 2015 (YoY) PLN 79.2 million net result excluding non-recurring