Coloplast Capital Market Day 2009 Bjørn Christ, SVP ROW Page 1
Agenda Creating the US platform Opportunities & challenges in the US Execution is on track Page 2
The creation of today s US business platform required execution over a multi-year period on a three-step plan 1. Acquiring anchoring point -> Mentor 2. Focusing activities -> Minneapolis 3. Organizing for growth -> Organization & leadership Page 3
Step 1. Acquired US anchoring point in the form of Mentor Urology Strategic rationale for move into Urology Enlarging the scope of our continence care business into urology A solid position in the US urology and continence markets Strengthening of our European market position Targeting all key decision-makers within urology, i.e. hospitals, urology wards and primary care providers Coloplast l becomes a leading global l supplier of urology and continence care products. Stronger platform for further business development and penetration of the growing urology market. Page 4
Step 2. Relocated from 7 sites to new facilities in the Twin Cities Mankato, MN Manufacturing Product development. Minneapolis, MN Head quarter Manufacturing Product development All positions moved to Minneapolis Amoena Breast Care divested Brachytherapy divested Marietta, GA All headquarter positions moved US Distribution Center Page 5
Integration of Vadnais Heights with Mankato marks the end of restructuring Page 6
Step 3. Upgraded organization to a platform for sustained growth Positioning for the future Consolidated all US Dedicated Unify & functions into surgical Upgrade one business unit Sales Force organization Establish strategic marketing capability Page 7
Today, Coloplast US is right where it needs to be Boston Scientific/ SciMed ~2,000 empl. ev3 Techn. 420 empl. Medtronic 4,300 empl. EMPI 500 empl. Smiths MD 380 empl. Enpath Medical 380 empl. AMS 300 empl. Minntech 380 empl. Boston Scientific/ Guidant 3,000 empl. 3M Healthcare ~5,000 empl. Lifecore Biomedical 175 empl. Synovis Life Tech. 419 empl. St. Jude Medical 650 empl. Class 1/2 Devices Class 3 Devices Zimmer SpineTech ~1,000 empl. Vital Signs 1,204 empl. Source: Google Maps; Dun & Bradstreet; Minnesota LifeScience Alley data, web searches, BCG estimates. Page 8
Agenda Creating the US platform Opportunities & challenges in the US Execution is on track Page 9
Coloplast s industry segment drives down total healthcare cost US healthcare spend distribution Healthcare administration (~5%) ESTIMATE US commercial Health Maintenance Organization (HMO) Preferred Provider Organization (PPO) Insurance US government Medicaid Medicare Healthcare products (~25%) Pharmaceuticals Prescription drugs Generic OTC Healthcare devices and supplies / MedTech Hospital and professional (~6%) Medical equipment and devices Medical supplies Home and consumers Healthcare services (~70%) Hospitals (~40%) Physicians and clinics (~20%) Nursing homes (~7%) Home care (~3%) Our industry segment is a small percenta-ge of HC cost OurO segment has potential to reduce HC services cost Page 10
Coloplast s value proposition p is proven: We lead Intimate Healthcare Hospital and professional Medical equipment and devices (89) (~2%) Professional equipment and devices Laboratory diagnostics Hospital care Cardiovascular Clinical chemistry equipment Diagnostic imaging equipment Infectious diseases Hospital beds Orthopedics Immune diseases Operation room Surgical instruments, endoscopes, cautery Hematology tables and lasers Endocrine Hospital lights Wound management and closure Patient monitoring Dialysis Dental Audiology Ophthalmic Respiratory and anesthesia equipment Neurology Urology Cancer Blood processing Coagulation Drug monitoring Blood bank Drugs of abuse tests Other ESTIMATE Home & consumers Medical treatment equipment and supplies Contact lenses and care products Respiratory equipment Rehabilitation (e.g., wheel chairs) Beside monitors (e.g., holter) Patient aids and beds Ambulatory intravenous Biological test kits (e.g., pregnancy) Ostomy supplies Medical supplies Laboratory therapy/drug delivery Medical surgical and nursing supplies to supplies hospitals Delivery devices, including Catheters, tubes, urologicals implanted Kits and trays Laboratory administration Syringes and needles supplies (e.g., therapy sets) Gloves Laboratory solutions (e.g., Electrosurgical/sterilizer supplies pumps) Misc. instruments Laboratory supplies Bandages, dressings & skin care Garments and textiles Other Healthcare information and support systems Hospital systems Phycisian systems Managed care systems Page 11 Supplies to clinics, nursing homes, and physicians X-ray film and supplies Personal well-being, safety, and fitness devices Hearing instruments Illness-specific selftesting devices (for e.g., diabetes, blood pressure) Fitness and sport electronics (e.g., heart rate monitor watches) General well-being and safety monitoring devices (e.g., for children, elderly)
12 Coloplast s business areas have major US potential ESTIMATE Millions 900 800 Market Growth Market Size 2008 Coloplast share 700 High High Mid Low Mid 600 500 400 300 200 100 0 Continence Urology Skin Care Ostomy Wound Page 12
Coloplast s competitors depend on their US success (and failure) VS. Page 13
Agenda Creating the US platform Opportunities & challenges in the US Execution is on track Page 14
Current momentum suggests Coloplast US is on track 1. Fastest growing region 2. Active business areas growing double-digit 3. with more scope to optimize execution Page 15
In summary, Coloplast US is on rails Completed US platform for growth Favorable market characteristics in all BA s We have momentum Page 16
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