leading intimate healthcare relations/presentati… · • full year guidance for 2011/12: ... •...

Leading intimate healthcareRoadshow presentation – Q3 2011/12p Q

Leading intimate healthcare15 August 2012

Forward-looking statements

Forward looking statements

The forward-looking statements contained in this presentation, including g p , gforecasts 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

t ti ti t d ti d b d th i f ti il blexpectations, estimates and assumptions and based on the information available to Coloplast at this time.

Heavy fluctuations in the exchange rates of important currencies significantHeavy 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.g p y p y


Solid performance in 9M 2011/12

Solid performance in 9M 2011/12

• 6% organic sales growth in line with guidance. Growth in DKK was 8% 7 601

8.174

Sales

+8%

• Gross margin improved from 64% to 66%

• Satisfactory EBIT margin of 29%

7.601

9M 2010/11 9M 2011/12y g

• ROIC after tax of 36% against 28% last year

1.839 2.364

Operating profit

+29%

• Full year guidance for 2011/12:

• Organic growth rate around 6% (8% in

9M 2010/11 9M 2011/12

g g % ( %DKK)

• EBIT margin in fixed currencies adjusted to around 29% ( 30% in DKK)

24% 29%

Operating margin

around 29% ( 30% in DKK)

9M 2010/11 9M 2011/12


6% organic sales growth (8% reported)

6% organic sales growth (8% reported)

8161.135

Group revenue 9M 2011/12 by segment Group revenue 9M 2011/12 by geography9M 2011/12 sales: DKK8.2bn

1 439 8%

6%3.416771 -2%

5% 1.439

5%

8%6%

5%

5.919

2.852

9%

DKKm (organic growth)

Europe Americas RoW

DKKm (organic growth)

OC CC UC WSC


Satisfactory Ostomy Care growth

Satisfactory Ostomy Care growth

• Organic sales growth of 6% in 9M. Q3 organic

614

16

% DKKm

g g ggrowth was also 6%

• Growth in Europe still driven by very satisfying sales growth in UK but also Spain 2 7 16

5 3.47

4

3.56

9

3.62

1 3.94

9 4.26

6

6

8

10

12

14

y g g pand Italy saw satisfying performance

• Satisfying growth in China whereas growth rates declined in Russia and Brazil

2.44

2.95

7 3.1

0

2

4

2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

• Biggest growth driver was the SenSura®product line

% DKKm

8 7 96

.127

115 1.17

4

10

12

14

• Ostomy Care accessories continue to perform well

911

939

955

928 1.

009 1.05

7

1.05

8

1.03

5

1.07 1.09 1 1.1

0

2

4

6

8

03Q

08/094Q

08/091Q

09/102Q

09/103Q

09/104Q

09/101Q

10/112Q

10/113Q

10/114Q

10/111Q

11/122Q

11/123Q

11/12

Revenues Reported growth Organic growth


Continence Care continues strong growth

• Organic growth of 9% in 9M and Q3 10

12

Continence Care continues strong growth% DKKm

g g % Q

• Significant positive impact from distributor consolidation in the UK

2.75

9

2.91

2 3.20

2 3.45

6

4

6

8

10

• Satisfying sales growth driven by SpeediCath® in Europe and SelfCath® in the US 0

2

4

2007/08 2008/09 2009/10 2010/11

• Good growth in sales of urisheaths and urine bags

• Continued strong performance within bowel

% DKKm

3 4 0 928

924 1.

000

12141618

g pmanagement

746

753 78

3

751

822 84

6 883

809

884

880 9

2468

1012

Q /

02

3Q 08/09

4Q 08/09

1Q 09/10

2Q 09/10

3Q 09/10

4Q 09/10

1Q 10/11

2Q 10/11

3Q 10/11

4Q 10/11

1Q 11/12

2Q 11/12

3Q 11/12



Note: Mentor was acquired 3Q 05/06

Growth in Urology Care impacted by European business

14

16

Growth in Urology Care impacted by European business

• Organic growth of 5% and additional 1%

% DKKm

787

857

938

6

8

10

12

g g % %growth from acquired business

• Organic growth in Q3 was 4%

684

0

2

4

2007/08 2008/09 2009/10 2010/11

• Performance remains strong within men’s health driven by sale of penile implants

• Continued challenging performance in g g pwomen’s health as sales of female slings continued to decline

• Restorelle® continued satisfactory growth

% DKKm

265

264

12141618

y g

• In Q3 growth declined in the European Urology business compared to previous quarter.

207

197

197 21

2 228

221 23

1 240

240

227 24

2 2 2

02468

1012

q

Q /

-20

3Q 08/09

4Q 08/09

1Q 09/10

2Q 09/10

3Q 09/10

4Q 09/10

1Q 10/11

2Q 10/11

3Q 10/11

4Q 10/11

1Q 11/12

2Q 11/12

3Q 11/12



Note: Mentor was acquired 3Q 05/06

Wound & Skin Care impacted by negative growth in contract

Wound & Skin Care impacted by negative growth in contract manufacturing in Q3

• 9M organic sales growth was negative 2% 0 529

12 14

16% DKKm

g g g %and Wound Care sales growth was negative 4%

• Q3 organic growth was negative 5% while 207 1.25

8

1.45

0 1.50

0

1.5

1.51

4

6

8

10

12

Q g g ggrowth was negative 2% in Wound Care

• Contract manufacturing of Compeed®¹ declined in Q3 as a result of timing in order

1.05

4 1.12

4 1.2

-2

0

2

4

2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11g

patterns

• Continued challenging wound care market conditions in Europe, mainly France, Spain

% DKKm

79 81

393

393

79

396

389

389

2

4

6

p , y , pand Greece

• China continued to deliver high growth rates

37

372

362

38

369 37

368

357

-8

-6

-4

-2

0

• Skin Care continued to deliver satisfying growth rates

¹Compeed® is a registered trademark of Johnson & JohnsonNote: 2007/08 impacted by inclusion of contract productionAll figures are Wound & Skin Care including contract manufacturing

3Q 08/09

4Q 08/09

1Q 09/10

2Q 09/10

3Q 09/10

4Q 09/10

1Q 10/11

2Q 10/11

3Q 10/11

4Q 10/11

1Q 11/12

2Q 11/12

3Q 11/12



Gross profit margin of 66% for 9M 2011/12

Gross profit margin of 66% for 9M 2011/12• Gross profit increased by 12% to DKK 5,433m for the first 9 months

• Gross margin of 66%, 2% points up compared with same period last yearGross margin of 66%, 2% points up compared with same period last year

• Improved production efficiency and higher absolute sales was the key drivers, while exchange rates added almost 1% point

66 5 688 000

%DKKm67 9 702 000

%DKKm

4 .844

6.56

8

.433

61,560,8

59,960,1 61,3

64,6

66,5

60

62

64

66

68

5.000

6.000

7.000

8.000

2 671

1.70

8

1.73

8

1.77

5

1.92

0

58,0 56,5

59,0

62,7 60,5

62,8 63,4 64,0 64,3 66,4 65,5 65,9

67,9

60

65

70

1.600

1.700

1.800

1.900

2.000

3.73

1

3.78

9

4.02

2 4.83

4

4.99

8

5.10

3

5 5 .59,1

57,9

52

54

56

58

60

1.000

2.000

3.000

4.000

1.30

1

1.27

9 1.35

4 1.42

5

1.48

4 1.58

1

1.61

1.57

7 1. 1

45

50

55

1.100

1.200

1.300

1.400

1.500

50 0 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 9M

2011/12

40 1.000 3Q

08/094Q

08/091Q

09/102Q

09/103Q

09/104Q

09/101Q

10/112Q

10/113Q

10/114Q

10/111Q

11/122Q

11/123Q

11/12


EBIT margin of 29% for 9M 2011/12

EBIT margin of 29% for 9M 2011/12• Reported EBIT margin of 29% and 28% in local currencies for the first 9 months

• Reported EBIT increased by 29% to DKK 2 364m against 9M last year• Reported EBIT increased by 29% to DKK 2,364m against 9M last year

• SGA costs were 34.5% of revenue compared to 35.6% for the same period last year

• R&D to sales was 3% and below same period last year due to changes in the R&D organisation completed by the end of last fiscal year

• One-offs of DKK 65m and bad debt provisions for Southern Europe of DKK 66m included in 9M 2011/12

% DKK C t t l ti (%)

42

3 770

901

19 821,2

22,624,1 23,3

25,1

28,926,1

28,631,9

25

30

35

700

800

900

1.000

%DKKm31,4

29,4 29,2 29,8 28,9 30,3 29,9 30,4 29,1 28,2 29,5 28,6 27,6

25

30

35

DKKm Cost-to-sales ratios (%)

Dist.

347 40

6 454

451 52

0 570 61

3

575 65

1 7 4

693 7

15,517,9

19,8

19,9

5

10

15

20

200

300

400

500

600

6,84,7 6,0 6,4 6,2 4,8 5,4 6,0 6,1 6,2 6,1 5,9 5,8

5

10

15

20 Adm.

R&D

0

5

0

100

3Q 08/09

4Q 08/09

1Q 09/10

2Q 09/10

3Q 09/10

4Q 09/10

1Q 10/11

2Q 10/11

3Q 10/11

4Q 10/11

1Q 11/12

2Q 11/12

3Q 11/12

EBIT EBIT margin

4,3 4,0 4,0 4,8 4,3 4,1 4,4 4,5 4,0 3,4 3,6 3,1 2,80 Q3

08/09Q4

08/09Q1

09/10Q2

09/10Q3

09/10Q4

09/10Q1

10/11Q2

10/11Q3

10/11Q4

10/11Q1

11/12Q2

11/12Q3

11/12


ROIC after tax was 36% - up 9% points from 9M 2010/11

ROIC after tax was 36% up 9% points from 9M 2010/11

• The equity amounted to DKK 5,398m, corresponding to an equity ratio of 54% and return on equity of 43%q y %

• Interest bearing assets exceed interest bearing debt by DKK 142m as of 30 June 2012• Q3 ROIC after tax was 40% against 28% in Q3 last year

DKKm60%

DKKm

3.06

9

3.18

1

3.42

8

2,22,0

2,2

1,2

0 6 1 0

1,5

2,0

2,5

2 000

2.500

3.000

3.500

4.000

33%36% 38% 40% 39%

44% 43%46% 47% 49% 50%

53% 54%

28%

34% 32%35%

40%40%

50%

60%

2.29

7

1.59

3 539

-142

0,6

0,20,0

-0,5

0,0

0,5

1,0

0

500

1.000

1.500

2.000

14%18% 20% 20%

24% 26% 27%24%

28%

10%

20%

30%

-1,0 -500 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 9M

2011/12

NIBD (EoP) NIBD to EBITDA

0%3Q

08/094Q

08/091Q

09/102Q

09/103Q

09/104Q

09/101Q

10/112Q

10/113Q

10/114Q

10/111Q

11/122Q

11/123Q

11/12

Equity ratio ROIC after tax


Free cash flow increased by 69% YTD to DKK 1.5bn

• Cash flow from operations amounted to DKK 1.684m, compared to DKK 1.203m last year Increased earnings lower increase in working capital compared to same periodyear. Increased earnings, lower increase in working capital compared to same period last year and decrease in income tax paid, were partly off-set by realised currency exchange losses

CAPEX was DKK 225m or a CAPEX to sales ratio of 3%• CAPEX was DKK 225m, or a CAPEX-to-sales ratio of 3%

• Free cash flow was up 69% to DKK 1.467m compared with the same period last year

%DKK %DKK

839

754

6 6

10,4

9,0

6 58

10

12

600

700

800

900

%DKKm

.978

16,2 15,5

19,4

17,9 20

25

2.000

2.500

%DKKm

480 57

1

306

250 25

6,6 6,5

3,2 2,5 2,8

2

4

6

200

300

400

500

04

53

1.42

8

1.47

6

1

1.46

7

9,0

4,7

7,7

5

10

15

500

1.000

1.500

N t E l di i iti d di t t

22

0

2

0

100

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 9M 2011/12

CAPEX Capex-to-sales60

376 6

0 0 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 9M

2011/12

FCF FCF-to-sales


Note: Excluding acquisitions and divestments

Strong financial performance continued in 9M 2011/12

MDKK 9M2011/12

9M2010/11

• Continuing production efficiency driving gross margin improvement of 2% points

• SGA of 34% including one-offs of DKK 65m

Gross profit 5,433 4,860

Gross margin 66% 64%

SGA-to-sales 34% 36%gand bad debt provisions of DKK 66m

• EBIT margin up 5% points to 29%

Working capital to sales of improved by 2%

EBIT 2,364 1,839

EBIT margin 29% 24%

• Working capital to sales of improved by 2% points

• CAPEX-to-sales remains low due to

NWC-to-sales 23% 25%

CAPEX 236 194

CAPEX to sales 2 9 2 6continued discipline on investments

• ROIC after tax up by 8% points to 36%

• Free cash flow up by 69% to DKK 1,467m

CAPEX-to-sales 2.9 2.6

Free cash flow 1,467 869

ROIC after tax 36% 28%p y ROIC after tax

NIBD (142) 1,510


Guidance for 2011/12, EBIT margin upward adjusted

Guidance for 2011/12, EBIT margin upward adjusted

Guidance11/12

Guidance11/12 (DKK)

Long-termambition

Sales growth ~6 % (organic) ~8% Market+

Deliver margins in line with EBIT margin ~29%(fixed) ~30%

gthe best performing medical

device companies *)

CAPEX (DKKm) ~300 ~4% of salesCAPEX (DKKm) 300 4% of sales

Tax rate ~25-26% -

*) The peer group includes the following listed companies: Medtronic Inc., Baxter International Inc., Covidien PLC, Stryker Corp., St. Jude Medical Inc., Boston Scientific Corp., Sonova Holding AG, Smith & Nephew PLC, CR Bard Inc., Getinge AB, WDH A/S, Shandon Weigao Group Medical


Leading intimate healthcareLeading intimate healthcareIntroduction to Coloplast


Our mission

Making life easier for peoplewith intimate healthcare needswith intimate healthcare needs

Our values

Closeness… to better understandPassion… to make a differenceRespect and responsibility to guide usRespect and responsibility… to guide us

Our vision

Setting the global standardfor listening and responding


Coloplast is a leading medtech company specialising in

Coloplast is a leading medtech company specialising in intimate healthcare needs

C

Americas17%

Group revenue FY 2010/11 by segment Group revenue 2010/11 by geographyFull Year 2010/11 sales: DKK10.2bn

Ostomy Care42%

Continence Care34% Rest of

world10%#1 10%#1

#1

Urology Care9%

Wound & Skin Care

15%

Europe73%

15%#4

#x Global position


Stable intimate healthcare trends

Growing elderly population increasescustomer base for Coloplast productsDemographics

Expanding healthcare coverage for populations in emerging marketsincreases addressable market

Emerging markets

Surgical and medical trends are towardsearlier detection and cure, eventually

d i dd bl k t fSurgical and

di l t d reducing addressable market for Coloplast treatment products

Economic restraints push for

medical trends

preimbursement reforms, introduction of tenders, and lower treatment cost

Healthcare reforms


Introducing Ostomy Care

• Colorectal cancer (est. 55%)• Bladder cancer (est. 10%)

Key products

Disease areas

• Inflammatory bowel disease (est. 35%)

• Nurses, mainly stoma care nurses• People with a stoma

Wh l l /di t ib ti

Customergroups

• Wholesalers/distribution• Hospital purchasers and GPOs• Surgeons

• Hospital & community nursesCall pointsAssura® 1 and 2 piece2nd generation launched 1996-2000• Hospital & community nurses

• Hospital buyers• Distributors• Dealers• Wholesalers

H i

Call points 2nd generation launched 1996 2000

• Homecare companies

Distribution ofrevenues

Urostomy

SenSura® 1 and 2 pieceLaunched in 2006-2008

Easiflex®, 2 piece flexLaunched in 2003

Ileostomy

Colostomy


The market for ostomy devices

• Global Market size estimated at DKK 11bn with 4-5% growth

The market for ostomy devices

Estimated market value split by region

• Market share: 35-40%

• Europe 40-50%

• Americas 0-10%

RoW

Europe

• Rest of the world 35-45%

• Main competitors are ConvaTec and Hollister/Dansac Americas

Market drivers Market limiters Market trends

Marketdata does not include OC accessories

Market drivers Increasing incidence of colorectal

cancer and inflammable bowel disease, particularly in developing countries

Market limitersReimbursement system reformsUsage patterns geared towards

reuse of products outside Europe

Market trendsNational healthcare reforms

aiming to reduce price and volume Increasing influence of financial

decision makers within distribution Well developed usage patterns

with strong key opinion leaders in Europe

and hospitals Improving treatment of stoma

patients in developing economies


Introducing continence consumables

• Spinal Cord Injured, SCI• Spina Bifida, SB• Multiple Sclerosis, MS• Benign prostatic hyperplasia &

Disease areas Key products (management products)

• Benign prostatic hyperplasia & prostatectomy patients

• Elderly and diabetics

• Continence or home care nursesCustomer

SpeediCath® CompactMale intermittent catheter

SpeediCath®intermittent catheter

• People with incontinence problems• Wholesalers/distribution• Hospital purchasers and GPOs• Surgeons

groups

• Rehabilitation centers• Urology wards• Pediatric clinics• Elderly homes

Di t ib t d l & h l l

Launched in 10 Launched in 99/00Call points

• Distributors, dealers & wholesalers

Distribution ofrevenues Intermittent catheters

Conveen® Optima external catheterLaunched in 05/06

Conveen® Security+ urine bagLaunched 10+ years ago

Urine bagsMale ext. cathetersOther incl. bowel mgt.


The market for urinary incontinence management products

The market for urinary incontinence management products

Estimated market value split by region• Global Market size estimated at DKK 8-9bn with 4-6% growth

RoW• Market share: 35-40%

• Europe 45-55%

• Americas 30-40%Europe

Americas• Rest of the world 10-20%

• Main competitors include AstraTec and Bard

Excluding indwelling catheters (Foley) and Bowel management


Excluding indwelling catheters (Foley) and Bowel management

Market driversLarge, under-penetrated popula-

tion for intermittent catheters

Moving users away from old solutions (uncoated caths diapers)

Market limitersReimbursement system reforms

(single price reimbursement on product categories)

Commoditization and low-spec

Market trendsPurchasing decision centralizedDiagnose Related Groups and

tender business are increasingHealth economic approachsolutions (uncoated caths, diapers)

Patient associations’ influence is increasing

Commoditization and low spec competitors entering

Health economic approach enables price premiums


Introducing Urology CareTreatment (surgical) of urological disorders

Treatment (surgical) of urological disorders

• Urinary incontinence• Pelvic organ prolapse

E til d f ti

Disease areas Key products (implants and surgical disposables)

• Erectile dysfunction• Enlarged prostate• Kidney and urinary stones

• SurgeonsCustomer• Purchasing departments and

organizations• End customers

Aris® vaginal slingLaunched in 2005Women’s health - Surgical Urology

Virtue® male slingLaunched in 2009Men’s health - Surgical Urology

groups

• Urologists• Uro-gynaecologists• Gynaecologists• Purchasing departments and

organizations

Call points

Men's health

Women's health

organizations

Titan® OTR penile implantLaunched in 2008 Men’s health - Surgical Urology

JJ stentsLaunched in 1998 Disposable Surgical Urology

Distribution ofrevenues

DSU


The market for urological disorders

The market for urological disorders

Estimated market value split by region• Global Market size estimated at DKK ~9bn with 4-6% growth

EuropeRoW• Market share: 10%

• Europe 15-25%

• Americas 0-10%

Americas

Americas 0 10%


• Main competitors include Endo, Ethicon and BSX


AmericasColoplast addressable markets only

Market driversLarge, under-penetrated

population

Lack of gold standard treatment

A i d b l ti

Market limitersCost containment Increased competition Increased scrutiny on clinical

proof

Market trendsLess invasive treatment methodsOffice-based treatmentsCost containment

I ti k fAgeing and obese population

Minimally invasive surgeries

proofCrowded IP landscape limits

opportunities

Innovation key source of competitive advantage


Introducing Wound Care

Introducing Wound Care

Chronic wounds• Leg ulcers• Diabetic foot ulcers

Disease areasKey products (Biatain® and Comfeel® range)

• Diabetic foot ulcers• Pressure ulcers

Hospitals• Wound care committees

CustomerGroups &

Biatain® Silicone• Silicone adhesive and

foam dressing• Launched in 2010

• Specialist nurses/doctors• (Purchasers)Community• Specialist nurses/doctors • General practitioners

Biatain® Ag• Antimicrobial foam dressing• Launched in 2002

call points

General practitioners• District/general nurses • Large nursing homes

Distribution ofrevenues (WSC) Biatain® range

Comfeel® rangeSkin care Other incl Compeed

Comfeel® Plus Transparent• Transparent hydrocolloid

dressing• Launched in 1994

Biatain®• High exudate mgt.

foam dressing• Launched in 1998

Other incl Compeed


The market for advanced wound care where Coloplast

The market for advanced wound care where Coloplast competes

Estimated market value split by region• Global Market size estimated at DKK 12-13bn with 2-4% growth

Americas• Market share: 5-10%

• Europe 5-15%

• Americas 0-10%

EuropeRoW

• Americas 0-10%


• Main competitors include Convatec, Mölnlycke and S&N


Excluding Negative Pressure Wound Therapy

Market driversAgeing, diabetes, and obesity

New and more expensive technologies (e.g. silver)

I t t b i d t i l

Market limitersHealthcare reforms Increased competitionDistribution taking an active role

Market trendsCommunity based treatmentsSimple product offeringsCost containment

Investments by industry in sales pressure driving conversion


Improving financial performance driven by…

• Stable chronic care sales driven by high 28,9 35 3.000 %DKKm

Stable chronic care sales driven by high investments in professionalizing sales activities

• Increased focus on growing the business

88

00

9 94

1.39

5 1.99

5

2.58

1

2.36

4

16,3 16,013,1 12,8 11,7

15,8

20,925,4

10

15

20

25

30

00

1.000

1.500

2.000

2.500

outside Europe

• Focusing on realising additional improvements in manufacturing by leveraging on new global

98

1.00 87

9

749 9 9

0

5

0

500

EBIT EBIT marginin manufacturing by leveraging on new global operations footprint

• Continuing to run an efficient business23%

30%36%

30%

40%

• Lower capex-to-sales from higher capacityutilization and leaner factory footprint 4%

15%9%

5% 8%

16%

16%18% 18%

11%

12%10%

6%10%

15%

23%

0%

10%

20%

…..Resulting in strong free cash flow generation and high return on invested capital.....

FCF to sales ROIC


Our new strategy remain ambitious

Aiming for continued higher total shareholder Our value creation will come from increased growth

based on a strong new product pipeline combined with

gy

g greturns through continued cost optimizations

• Stable and predictable top-line growth

O i th b k t

• Continued growth in the core developed markets in Europe

• Organic growth above market

• Increased investments in growth

• Continued high margins

• Increased growth in the developed markets outside Europe (US, Canada, Japan and Australia)Continued high margins

• Strong cash flow generation

• Increasing ROIC

• Further expansion and growth in Emerging Markets

• Stabilization of the European Wound• Stabilization of the European Wound Care business

• Globalization of Urology Care

• A strong new product pipeline

• Continued cost optimizations


Coloplast value proposition

Close relationships with nurses and end-Close relationships with nurses and end-users provide leading market positions within Ostomy & Continence Care

Stable long-term growthpotential

US and Emerging Markets hold highpotential as well as the Surgical Urologyand Wound Care businesses

Growth and expansionpotential

Strong customer driven i ti biliti

Focus on providing more value for money for end users and public payersinnovation capabilities for end users and public payers

Solid financial performance High return on invested capitalStrong free cash flow generation


Appendices


The Coloplast share

The Coloplast share

The Coloplast share has been listed on Share Capital OwnershippNASDAQ OMX Copenhagen since 1983

Market cap. DKK ~52bn (USD ~8.7bn) 44%

7%

8%4%

@ DKK 1,160 per share

Two share classes: 3 6 illi A h 10 t

44%

26%

• 3.6 million A shares carry 10 votes (family)• 41.4 million B shares carry 1 vote

(freely traded)

11%

Holders of A-shares & family Danish InstitutionalsForeign Institutionals Coloplast A/S(freely traded)

• Free float approx. 53% (B shares)

Active sell side analyst coverage by 24

Other shareholders Non-reg. shareholders

Active sell-side analyst coverage by 24 brokers

As per 30 September, 2011


Cash distribution

Cash distribution

• Ordinary dividend of DKK 14.00 per shareRatioDKKm Ordinary dividend of DKK 14.00 per share in 2010/11

• ~32% pay-out ratio for 2010/11

Sh b b k f DKK 1b40%

50%

1.000

1.200

• Share buy-back programme of DKK 1bn to be completed by 2012/13

• First half of the share buy-back was 30%

600

800

started in February 2012 and completed by 29 June 2012

10%

20%

200

400

0%0 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

Dividends Share buy-back Pay-out ratioy y


Our current capital structure policyp p y

• New debt raised in case of a larger acquisitionDebt

• Minimum DKK 1 bn in cash and marketable securitiesCapital

• Minimum DKK 1 bn in cash and marketable securitiesreserve

• Excess liquidity is returned to shareholders in the form of dividend and share buy-backs

• Pay-out ratio around 30%• Share buy-backs of DKK 500m per year• Potential extraordinary dividends

Dividend policy

unchanged • Potential extraordinary dividendsunchanged


Debt policy and capital markets exposure

eb po cy a d cap a a e s e posu e

I t t b i t d b k & h• Interest bearing assets and bank & cash exceeded interest bearing debt by DKK 142m

L t itt d dit f iliti f DKK35

40 2,5

Interest cover ratio

NIBD/EBITDA ratio

• Long-term committed credit facilities of DKK 1bn, fully utilized

• Short-term committed credit facilities of DKK 4bn expire in Q3 2012/13

25

30

35

1,5

2,0

DKK 4bn, expire in Q3 2012/13

10

15

20

0 5

1,0

0

5

0,0

0,5

2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

NIBD/EBITDA Interest coverage


Underlying demographic development supports future growth

Underlying demographic development supports future growth


Current global reform landscape… France- Periodic review OC and CC postponed to

2014/15

2014/15- Austerity measures announced by French

Ministry of Health. 350 million Euro over a 5 year period on medical devices.

UK- Restructure of NHS and efficiency savings

Germany- No immediate med dev reforms foreseen, but

continued savings measures.

Spain- Reimbursement process frozen but under

revision (law of margins)- Price categories discussed- Co-payment introduced for pensioners in OC

Greece- Economic situation still unstable could

potentially lead to further price cut - Merger of sickness funds

Reforms under way

Intensifying reform pressure

United States- 2010-14: Healthcare reform - 2013 -> ”Super Committee” cuts take effect

ItalyJuly 31 the senate approved an austerityIntensifying reform pressure

Stable reform environment

- July 31 the senate approved an austerity package that would cut 5 billion Euro over the next 3 years. The package still needs final approval.


Emerging Market exposure 8% of global sales

Emerging Market exposure 8% of global sales

Global sales

04/05 05/06 06/07 07/08 08/09 09/10 10/11

BrazilGlobal sales

Russia04/05 05/06 06/07 07/08 08/09 09/10 10/11

India

ChinaEmerging Market sales

04/05 05/06 06/07 07/08 08/09 09/10 10/11

ChinaBRIC (45%)

Other countries (55%)04/05 05/06 06/07 07/08 08/09 09/10 10/11


Global operations footprint and cost structure

3816 August 2012

Design principles

Global operations footprint and cost structure

Production by country*• Consolidate on fewer sites

to reduce overheads

• Leverage international platform in Global Operations

MørdrupThisted

10%5%

Hungary

ChinaOperations

• Improve efficiency in labour and material Tatabánya Nyirbátor

Sarlat

60%25% Denmark

US/ France

Minneapolis

Mankato

8%20%

COGS by cost type*

* Average usage of raw material(RM) and semi finished goods(SFG)

Innovation & Competency Centre

High Volume Production

13%

11%

20%Salary - Direct

Salary - Indirect

Materials (RM & SFG)

Zhuhai

High Volume Production

Specialised Production47%

SFG)Depreciations & amortisationsOther

*FY 2010/11 Cost of goods sold, DKK 3,604 million


Operational Excellence focus areas in our production

Operational Excellence focus areas in our production

Lean in volume production

O ti l

Re-design for manufacturing

Global sourcing and supplier relations management Operational

Excellencemanagement

Focus on fixed costs and environment

Cost effective distribution

Design for manufacturing & fast ramp-up


Introducing Skin Care

Introducing Skin Care

Moisture associated skin damage• Incontinence• Skin folds

Disease areasKey products

• Skin foldsPreventative skin care

Hospitals• Wound care committees

Customergroups &

Sween®• Skin care products of distinction• Launched in 2003-2005

• Specialist nurses/doctors• (Purchasers)Community• Specialist nurses/doctors • General practitioners

call points

General practitioners• District/general nurses • Large nursing homes

Product mix

BarriersCleansers/BathingMoisturizersTextileOther

InterDry ™ Ag• Textile with antimicrobial silver

complex• Launched in 2006

Critic-Aid® Clear / AF• Only 5 ingredients; simple

yet effective products• Launched in 2005

Other


Product market for US Skin Care

Product market for US Skin Care

• US Market size estimated at USD ~1bn with ~5% growth

• Market share: 5-10%

• Main competitors include

• Medline IndustriesMedline Industries

• Sage Products

• ConvaTec

Market drivers Market limiters Market trendsMarket driversAgeing and obese population

Nursing shortage

Moisture associated skin damage

Market limitersCost containment Increased competition with

private label Increased scrutiny on Health

Market trendsProduct and protocol standardizationVendor consolidationCost containment

Focus on prevention Increased scrutiny on Health

Economic outcomes


Introducing Bowel Management

Introducing Bowel Management

Faecal incontinence (management products only)

Disease areas Key products

Customer groups• Spinal Cord Injured, SCI• Spina Bifida, SB• Multiple Sclerosis, MS

Customergroups & call points

Peristeen® Anal Irrigation• Launched in 2003 • Updated in 2011

Call points• Rehab centers• Pediatric clinics• Urology wards

Anal plug• Launched in 1995

p

Distribution of revenuesMarket drivers• Growing awareness • Huge under-penetrated and un-

served population• New devices addressing the many

Market dynamics

Peristeen® Anal IrrigationA l l• New devices addressing the many

unmet needsMarket limiters• Still taboo area and non-focus for

professionals (doctors)

Anal plug

• Very little patient awareness• Training required (nurses, patients)• Lack of reimbursement


Executive management

Executive management

Lars Rasmussen, CEO (53)With Coloplast since 1988

Educational backgroundE*MBA, Scandinavian International Management Institute, 1995BSc (Eng), Aalborg University, 1986BSc (Eng), Aalborg University, 1986

Management assignments with other Danish companies MT Højgaard A/S (BM)TDC A/S (BM) Lars Rasmussen, CEO

Lene Skole, CFO (53)With Coloplast since 2005

Educational backgroundBCom, Copenhagen Business School, 1986The A.P. Møller Group International Shipping Education, 1980

Management assignments with other Danish companies: DFDS A/S (BM)( )Tryg (BM) Lene Skole, CFO


Corporate responsibility – key elements

Corporate governanceGlobal Compact

Phthalate free products available

Minimal use of animal testing

Quality and safety

Responsible procurement

Helping suppliers to improve or find alternatives

testing

Code of ConductResponsible lobbying Anti-corruption Environment

CO2 reductionsWaste reduction

Injuries reduced Repetiti e ork red ced S

Alternatives to PVC

‘Access to Healthcare’ programmeRepetitive work reduced

Diverse workplaceEmployees Society programme

Community engagement


Corporate responsibility – performance 2010/11Employees

• New Code of Conduct and strengthened compliance

setup, including guidelines and mandatory e-learning

External reporting

setup, including guidelines and mandatory e learning

• Reduction in workplaces with highly repetitive work from

7 2 % to 2 2 % in four years7.2 % to 2.2 % in four years

SRI index membershipsEnvironment and safety

• 7 % absolute reduction in CO2 emission this year

• Phthalate-free alternatives to 90% of our products which

contain phthalates

• Access to Healthcare: Strategic partnerships programme


Income statement – 9M 2011/12

Income statement 9M 2011/12

9M 9M2011/12 2010/11

DKK million

Net revenue 8,174 7,601

Gross profit 5,433 4,860G i 66 5% 63 9%Gross margin 66.5% 63.9%

SG&A costs -2,817 -2,708R&D costs -257 -327Other Operation Inc/exp 5 14Other Operation Inc/exp 5 14

Separate items 0 0Operating profit (EBIT) 2,364 1,839EBIT margin 28.9% 24.2%

Net financial items -227 -99

Net profit, continuing activities 1,585 1,288


Balance sheet – At 30 June 2012

Balance sheet At 30 June 2012

DKK million 9M 2011/12

9M 2010/11

Balance sheet total 9,980 8,493E it 5 398 3 987Equity 5,398 3,987Equity ratio (%) 54% 47%

Net interest bearing debt -142 1,510N t d bt t it (%) 0% 38%Net debt to equity (%) 0% 38%Net debt to EBITDA 0.0 0.5

Invested capital 6,564 6,793


Cash flow – 9M 2011/12

Cash flow 9M 2011/12

DKK million 9M 2011/12

9M 2010/11

EBITDA 2 740 2 229EBITDA 2.740 2.229Change in working capital -196 -385Interest and tax -847 -641Other -13 0Cash flow from operations 1.684 1.203

CAPEX (excl. M&A) -236 -194M&A 0 -160Oth 19 20Other 19 20Cash flow from investments -217 -334

Free cash flow 1.467 869

Dividends -587 -422Trading of Coloplast shares -206 -380Other cash changes -144 -25Total -937 -827Total -937 -827

Change in net debt 530 42


Production sites

TCC MørdrupDK

• Adhesives • Wound care products • Continence care products• Coloplast Consumer Products• Number of employees in production: ~340

TCC Thisted • Machine development• Ostomy care products

DK• Ostomy care products• Number of employees in production: ~180

MinneapolisUS

• Urology care products• Number of employees in production: ~50

Mankato • Skin care productsMankatoUS

• Ostomy care accessories• Number of employees in production: ~55


TatabányaHU

• Ostomy care products, • Adhesives

HU • Continence care products• Number of employees in production: ~1,100

Tata• Postponement & packaging

Cross dockingTataHU

• Cross docking• Warehousing• Distribution & shipping• Number of employees: ~165

NyírbátorHU

• Catheter care products, • Wound care products• Number of employees in production: ~730

ZhuhaiCN

• Continence care products• Ostomy care products• Machine buildingCN • Machine building• Number of employees in production: ~1,000

Sarlat Disposable s rgical rolog prod ctsSarlatFR

• Disposable surgical urology products• Number of employees in production: ~150


Contact Investor Relations

Contact Investor RelationsHoltedam 1DK-3050 HumlebækDenmark

Ian S. E. ChristensenVice President Investor Relations

Gunilla JensenIR CoordinatorTel : direct: +45 4911 3621 /Investor Relations

Tel. direct: +45 4911 1301 / office: +45 4911 1800Fax: +45 4911 1555 [email protected]

Tel.: direct: +45 4911 3621 / office: +45 4911 1800Fax: +45 4911 1555 [email protected]

Henrik NordManager, Investor RelationsTel. direct: +45 4911 3108 / office: +45 4911 1800office: +45 4911 1800Fax: +45 4911 1555 [email protected]

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