Full year 2014 report Johannes Lind-Widestam Gran Brorsson 19 - PowerPoint PPT Presentation

Full year 2014 report Johannes Lind-Widestam Göran Brorsson 19 February 2015

Summary Jan – Dec 2014 Divestment of metrology division - strengthened financial position Positive development of operations • Orders increased by 12,9 % to 418,1 MSEK (356,5) • Sales unchanged at 380,9 MSEK (368,1) • One-off items of 3,4 MSEK has impacted the result • EBITDA margin, excluding one-off items, improved to 18,7 % (17,3) • EBIT excluding one-off items improve by 34% to 36,5 MSEK (27,2) • Earnings per share, continued operations 3:87 SEK (2:79) • Earnings per share, total 19:30 SEK (5:39) • The Board of Directors proposes a dividend of SEK 2.00 (2.00) per share and SEK 1.00 per share as a special dividend New CEO appointed, took office on Feb 1, 2015 2015 02 19

Margin improvement, a result of improved productivity One-off items of 3,4 MSEK (0) SEK M Oct-Dec Oct-Dec Jan-Dec Jan-Dec INCOME STATEMENT 2014 2013 2014 2013 Net sales 106,2 96,5 380,9 368,1 Cost of goods sold -75,8 -69,5 -273,2 -272,9 Gross profit 30,4 27,0 107,7 95,2 Selling expenses -6,1 -4,2 -21,1 -15,5 Administration expenses -12,5 -11,0 -44,1 -43,7 Development expenses -3,1 -2,9 -9,9 -9,1 Other operating income/expenses -0,1 0,5 0,5 0,3 Operating profit 8,6 9,4 33,1 27,2 Financial income 0,3 0,0 1,1 0,2 Financial expenses -1,3 -1,5 -5,7 -6,3 Exchange-rate differences 1,4 0,4 3,3 0,4 Profit after net financial items 9,0 8,3 31,8 21,5 Income taxes -4,4 -2,0 -8,4 -4,6 Net profit for the year from continuing operations 4,6 6,3 23,4 16,9 2015 02 19

Continued good cash flow Investment spend increases Oct-Dec Oct-Dec Jan-Dec Jan-Dec SEK M 2014 2013 2014 2013 Profit after net financial items 9,0 8,3 31,8 21,5 Reversal of depreciation 9,1 9,2 34,7 36,5 -0,3 5,8 Adjustment items 0,6 1,7 Income tax paid -8,3 0,8 -10,8 -1,0 Change in working capital 0,9 6,3 -6,2 12,9 Cash flow from operations 10,4 25,2 55,3 71,6 Investments in fixed assets -11,9 -4,6 -23,9 -13,1 Sales of fixed assets 0,0 -0,2 0,2 0,9 Balance after investments in fixed assets -1,5 20,4 31,6 59,4 Change of bank overdraft facility 1,1 -3,9 -11,4 11,5 New long-term loans 4,6 - 20,5 - Amortization of long-term loans -9,3 -7,5 -41,3 -41,1 Realized financial exchange-rate differences -7,5 -2,5 -8,8 -4,3 Dividends - - -12,1 -6,0 Cash flow for the period from continuing operations -12,6 6,5 -21,5 19,5 Cash flow from discontinued operations 0,5 -2,9 120,1 8,0 2015 02 19

A strong financial position which creates possibilities for growth SEK M 2014-12-31 2013-12-31 Assets Intangible fixed assets 68,5 81,0 Tangible fixed assets 230,1 218,2 Financial fixed assets 5,9 4,8 Other current assets 177,7 195,2 Cash and bank balances 125,5 31,2 Total assets 607,7 530,4 Shareholders' equity and liabilities Shareholders' equity 338,6 232,8 Long-term liabilities 162,7 167,2 Current liabilities 106,4 130,4 Total shareholders' equity and liabilities 607,7 530,4 Equity/assets ratio % 55,7 43,9 Net debt SEK M 58,0 172,6 2015 02 19

Continued growth trend orders received + 12,9% during 2014 110 440 100 400 90 360 80 320 70 280 60 240 50 200 40 160 30 120 20 80 10 40 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 Sales Q (MSEK) Rolling 4 Q (MSEK) 2015 02 19

Continued improvement of margins Positive market development Oct-Dec Jan-Dec Oct-Dec Jan-Dec 2014 2014 SEK M 2013 2013 116.7 418.1 Order bookings, SEK M 82.9 356.5 106.2 380.9 Net sales, SEK M 96.5 368.1 6.5 0.7 Growth,%* 5.4 13.9 EBITDA, SEK M 20.6 20.3 74.4 70.7 EBITDA, % 19.4 21.0 19.5 19.2 Operating profit, SEK M 12.1 11.7 41.7 36.4 Operating margin, % 11.4 12.1 11.0 9.9 2015 02 19

Development- and production partner “Complete performance” • Development/Design • Production • Clean room management • Logistic/Distribution • Regulatory services Risk management/Safety standards Certified in accordance with ISO 13485, ISO 14001 in compliance with the requirements within MDD 2007/47/EC and registered by FDA (21 CFR 820) 2015 02 19

Market consolidation continues We are developing our market position Share of Market sales trend Our trend Y/Y + 37% Dental implants ++ Trauma & Spine 12% Hearing Device & = 22% Vibration + Delivery systems 16% ++ Diagnostics 5% 2015 02 19

Challenges in the market OEMs product range is continuously increasing by new product entries – adds complexity and working capital Increasing regulatory Too much time demands creates and resources are increased work load at spend on coordinating OEM with many suppliers Time to market for new products is critical to utilise first mover advantage 2015 02 19

Elos Medtech Value Proposition Medical device OEM products competence Increased efficiency Lead time & effectiveness Customised solutions Quality Time to market 2015 02 19

Increased efforts in developing our own products Focus in the CAD / CAM technology which is establishing to develop patient-unique solutions where dental implants and instruments are used Take over of the Cresco™ system completed. The Cresco™ system is complementary to existing product range Growth rate 38 % - now represents 9% (6) of sales 2015 02 19

Improved productivity and quality Developed procedures and processes to achieve consistent quality and improved productivity During 2014 focus has been on automation Continued focus on automation and capacity utilization The increased order backlog will require additional capacity 2015 02 19

Elos Medtech Tianjin Successful efforts to create a stable quality level A base for supplies to medical technology customers now establishing themselves in China Increased capacity to meet demand from new customers 2015 02 19

Strong growth for Elos Medtech Microplast We see now synergy effects from the acquisition of Microplast in 2011. Significant increase in order backlog Decision to expand the factory with 1500 sqm in 2015 Focus on complex parts, primarily in PEEK 2015 02 19

Streamlining of group operations completed Creates the conditions for an acquisition-driven expansion in medical technology Equity reinforced by about 100 MSEK Net debt reduced significant Continued strong cash flow from operations ~ 70 MSEK / year 2015 02 19

Going forward We are well positioned Market consolidation We are equipped for further growth - “World class” quality - Strong productivity development - Capacity for growth Our service offering and customer base will be developed The share of own products will continue to grow 2015 02 19

Going forward How we will create growth Organic growth trough: • Increased marketing and sales efforts • Introduction of new own products • New sales organisation for own products Complementary acquisitions to strengthen our market position and develop the customer base 2015 02 19

Forecast The conditions for stable growth in 2015 are deemed satisfactory 2015 02 19

Elos has approx. 1 500 shareholders % of share capital % of votes Holders of A-shares Holders of A-shares Others Others Institutions Institutions 2015 02 19

Questions ? 2015 02 19