Coloplast A/SCarnegie Nordic Healthcare Seminar

31 May - 1 June

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Coloplast

Coloplast products and services help patients achieve greater independence from medical challenges in 5 areas:

Ostomy care, continence care, wound care, skin care and breast care.

39%* 24% 12% 5% 7%

*Percentage of total group sales (2003/04)

3

0

1000

2000

3000

4000

5000

6000

7000

1957

1962

1967

1972

1977

1982

1987

1992

1997

2002

History of revenue growth 1957-2004m

DKK

Danish productionand sale through

distributors

Product divisionsand subsidiaries

Acquisitions

Forward integration

4

Sales and production world wide

Austria

BelgiumGermany

Great Britain

Italy

Sweden

Norway

Argentina

Australia

Brazil

Canada

USA

France

Holland

Hungary

Poland

Spain

Japan

Switzerland

Israel RussiaCzech Republic SloveniaSlovakiaCroatia South Africa

Denmark

Costa Rica

Portugal

China

5

Geographical distributionRevenue 2003/04

Europe The Americas ROW

81%

6%13%

6

Risk factors

1. Reimbursement policy changes2. Increased price pressure in the market from e.g.

• Consolidation of wholesalers (distribution monopolies)• Fewer and more powerful insurance companies• Increased group purchasing, tendering and managed health care

3. Harmonisation of health care systems in Europe resulting in decreasing prices in high-price countries

4. Escalation of parallel importing5. Market growth influenced by:

• Earlier cancer detection reduces need for radical surgery• Improved surgical procedures• Increased longevity• New technologies and treatment alternatives• Slowdown in conversion from older products

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…that must be addressed appropriately

1. Reimbursement• Monitor/influence policy• Product design• Emphasis on clinical

documentation

2. Price pressure• Observe market trends• Improve tendering capabilities

3. Harmonisation of health care systems• Monitor development

4. Parallel imports• Monitor importers’ activities• Price strategy coordination• Product and packaging

diversification

5. Slowdown in market growth• Focus on growth segments• Search for new technologies• Low cost production

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Three key customers

• The end customer• The user, primary concern

is quality of life• The health care professional

• The advisor, primary concerns are user qualityof life and handling

• The payer• Concern is primarily

product pricing

9

Competitor overview

Total corp.

% of total

Turn

over

by

busi

ness

are

a(D

KK

m)

Ostomy care

Continence care

Wound care

Skin care

ConvaTec

Hollister

Mentor

Astra Tec

h

S&N

J&J

Coloplast

4% 80%12%20%67% ½% ¼%

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Business StructureGroup Management

Woundcare

Breastcare

Skinhealth

Ostomycare

Continencecare

Volume

production

Americas

Europe,South

Europe,North

RoW

Chronic care segment SBU segment

Corporate functions

Sales

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Ostomy care - for discreet protection

• Normal function of bowel or bladder lost

• Almost 80% related to cancer

• Designed for security, skin-friendliness, discretion, ease of use and comfort

• Wide variety of bags, plugs and accessories

12

Ostomy care - competitorsGlobal market value DKK 8-8½bn

Europe (>4bn)

ConvaTec Coloplast Hollister B Braun Other

28%

37%

24%

5%6%

USA (<2bn)

56%

3%

39%

2%

Note: Only markets where Coloplast is present are included

35%

28%

27%

10%

Global (>8bn)

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Continence care - for independent living

• Spinal cord injured, multiple sclerosis, spina bifida

• Discreet and easy-to-use solutions

• Catheters, urine bags, urisheaths, bowel management, absorbentproducts

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Continence care - market data

No direct competitors--1.0bn DKK2%

>60%

30% (value)

43%

Coloplast marketshare (EU15)

Maincompetitors

Coloplastgrowth

Marketsize

Productarea

Mentor, Hollister, Rochester, Manfred Sauer

0-3%0.5bn DKK0-3%

Bard, Hollister, Mentor, B Braun, Manfred Sauer, Unomedical

5%1.2bn DKK0-5%

Astra Tech, Porges/Mentor,Rüsch, Rochester, B Braun

15-20%1.5bn DKK15%

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Chronic care - US market positioning and key goals

• Strong product portfolio• Convex baseplate, EasiClose

• Market access through GPO/IDN• Consorta• Large number of IDN contracts

• Significant growth in new patient discharge• Sustained OC hospital growth > 30%

• Sustained OC/CC growth > 20%• Reach two-digit ostomy market share within 3-5 years• Develop intermittent coated catheter market segment

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Coloplast home care activities

Leading provider in the US of ostomy, wound care, urological, and diabetic products and cost management services. Ownership since 2001.

Distribution of ostomy, continence care and wound care products in the UK. Cutting service for ostomists. Internal merger of Coloplast Direct (1996) and ThackrayCare(2001). Established 2004.

German market leader in active distribution. Distributing 1/3 of all ostomy bags in Germany. Ownership majority since 2001.

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Effects of changing market conditions in Germany

Jan 05

Oct 04

Jul 0

4Apr 0

4Ja

n 04

CC draft fornew prices

OC finaldecision

CC final decisionpostponed

OC pricereduction

OC draft fornew prices

Implementation ofhealth care reform

Introduction ofpatients‘ co-paymentfor medical devices

Reimbursement onauxiliary productsremoved

CC final decision

Dec 04

Exp au

tumn 2005

Oct 03

Stockingby users,additionalsales

Mar

ket c

ondi

tions

Mar

ket e

ffect

s Retail anticipateslower prices,dampenedsales.Comparison with Q1 03/04

De-stockingby users,dampenedsales, higheradmin. costs

Alignment tochanged marketconditions

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Wound care - providing better outcomes

• For difficult to heal wounds• leg ulcers, pressure sores,

diabetic ulcers• Primarily affects the elderly• Portfolio of advanced, active

dressings• Education, information

and service

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€ 1.0 billion€ 1.0 billion

Wound care - market definition

Moistwound healing

Drywound healing

ChronicAcute

€ 0.5 billion

€ 1.0 billion€ 1.5 billion

Wound type

Pharma and biotech

VAC

€ 0.1 billion

€ 0.4 billion

Active

€ 0.4 billion

€ 0.1 billion

Prod

uct t

echn

olog

y

€ 1.1 billion segment, growth 9-11%

Compression

20

27%

17%14%

11%

21%

10%

Convatec S&NColoplast J&JMölnlycke Others

Wound care - market shares in EuropeMWH and active products

XXMölnlyckeXXXJ&JXXColoplastXXS&NXXConvaTec

ActiveAdvancedTraditionalTechnology

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Growth H1 2004/05- local currencies

Continence care (24%)Ostomy care (39%)

Other (13%)

Wound care (12%)Breast care (7%)Skin health (5%)

*Includeshomecare

Est. market growth

GrowthQ1 2004/05

Growth H1 2004/05

4%8%

18%

5%10%23%

EuropeAmericasROW

5%7%Coloplast total

2-6%5-8%

9-11%9-12%

(3)-(1)%

13%8%6%4%

12%(3)%

4%

12%9%8%8%7%

(1)%5%

Ostomy careContinence careChronic care segment*Wound careSkin healthBreast careSBU segment

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Key figures H1 2004/05

-87

1007884

-108

90106

Index vs2003/04

16%275

-2-152429

0-48

4772,924

6 months2003/04

14%240

-2-119361

-17-52

4303,099

6 months2004/05

EBIT

Profit marginGroup profitMinority interestsTaxProfit before tax

Special itemsFinancial items

RevenuemDKK

23

Profit and margins - how to reach 18%…

• Relocation- Hungary and China

• Efficiency projects / abc

• SBU margin improvement

• Economies of scale0

200

400

600

800

1000

1200

99/00 00/01 01/02 02/03 03/0410

11

12

13

14

15

16

17

EBIT EBIT %

mn %

24

Tatabanya, Hungary

• 550 headcounts by Sept. 2004• Construction completed• DKK 1.5bn sales value in 2005/06• Corporate tax rate 16%• Tax investment incentive

DKK 150mn

• Phase I - finalised: ostomy bags, urisheaths• Phase II - finalised: ostomy bags, dressings, catheters• Phase III - finalised 2005: Assura ostomy bags, baseplates, adhesives

Coloplast, Phase I-III, Tatabanya, Hungary

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Expectations and targets

• Sales growth of 8-9% inlocal currencies

• Profit margin 15-16%

• Sales exceeding DKK 9 billionthrough organic growth

• Profit margin (EBIT) reaching 18%• ROAIC of 20%• Acquisitions and divestments

2004/05

2008

MAINTAINED

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