Presentation on theme: "Copyright OssurGibaud Group 2006 Acquisition of the Gibaud Group Jón Sigurðsson, President & CEO."— Presentation transcript:
Copyright OssurGibaud Group 2006 Acquisition of the Gibaud Group Jón Sigurðsson, President & CEO
Copyright OssurGibaud Group 2006 Forward-looking statements This presentation contains forward-looking statements as the term is defined in the US Private Securities Litigation Act of 1995. These statements reflect the Management’s current views with respect to certain future events and financial performance. Although the statements are based upon estimates Management believes to be reasonable, there is no assurance that these statements will be achieved. Statements containing the financial outlook for 2006 and the following years naturally involve risks and uncertainties, and consequently actual results will differ, and may differ materially, from those projected or implied in the forward-looking statements. The uncertainties may include unexpected developments in the international currency exchange and securities markets, market driven price decreases for Össur’s products, delay or failure of development products, production problems and unexpected cost increases, development of new technologies by competitors, the introduction of competing products within Össur’s core areas, exposure to product liability and other lawsuits, changes in reimbursement rules and governmental laws.
Copyright OssurGibaud Group 2006 3 Who are we? Global Orthopaedic Company Growing through Innovation Transforming through acquisitions Ossur - becoming a leader in the Orthopaedic Industry
Copyright OssurGibaud Group 2006 4 Becoming a leading player in non-invasive orthopaedics with $750 million in sales and a 23% EBITDA margin Vision 2010 and strategy Strategy: ● Technical innovation leadership ● Sales and operational cost leadership ● Increase focus on emerging markets ● Consolidate through acquisitions ● Add value through partnerships...supported by a high performance culture and adequate financial resources.
Copyright OssurGibaud Group 2006 5 Acquisitions History Gibaud Group Designer & manufacturer of orthopaedic products $134 million PS
Copyright OssurGibaud Group 2006 6 The acquisition of the Gibaud Group in France Transaction summary Enterprise value€101 million Sales 2005/2006*€41 million EBITDA 2005/200621% Estimated sales 2006/2007€44 million One time restucturing cost € 5 million Inventory step-up € 2 million ●Bank of America advised on the transaction ●Kaupthing bank advised on the financing and provided bridge financing of €100 million ●An equity offering is planned for the spring of 2007 *The fiscal year of Gibaud is from July to June
Copyright OssurGibaud Group 2006 7 The acquisition of the Gibaud Group is in line with Ossur’s strategy of expanding in the European bracing & support market through strategic acquisitions Strategic rationale ●Adds meaningful scale in France, a key European market ●Possibilities to broaden and diversify the current Ossur product offering with phlebology and new Bracing & Support products ●Possibilities to broaden Gibaud’s product offering with current Ossur products ●Very well known brands ●A potential base for further European expansion, especially in Southern Europe ●Will be operated as a stand alone unit at least for 18-24 months – limited synergies
Copyright OssurGibaud Group 2006 8 06 Sales € 26m € 13m €2m Sales Contribution 65% 30% 5% Forecast Growth (2) 6% 8% 5% Description Thuasne Lohmann & Rauscher Ganzoni Innothera Scholl ` Gibaud Group Gibaud Braces & Supports Phlebology Other Cervical Collars, Lumboscral & abdominal Supports, ankle and knee guards Custom made products & podolgy products Thermoformable products Bandages & Tights Stockings Kneehights Stump socks Comfort shoes Leading manufacturer of non-operative medical devices - #2 in France (22% market share) Pharmacies are the key distribution channel 26% of production is outsourced Exports contributed sales of Eur 6 million Leading French manufacturer of phlebology productcts #3 France (10% market share) New facility in Trevoux (Lyon) was built at the end of 2005 70% of phlebology production is outsourced from France Mainly comfort shoes - #2 France for comfort shoes (15% market share) 100% of production outsourced Founded 1890 Employees 361 Locations - Saint Etienne (headquarters) - Trevoux
Copyright OssurGibaud Group 2006 9 Gibaud Group Hospitals / Clinics/ Specialists 2% of sales Dispensary Pharmacies 71% of sales Exports - 15% Other - 1% 16% of sales Strong distribution network in France 55 sales representatives / 10 specialized salesreps / sales force has increased by 33% since year-end 2004 Wholesaler 11% of sales
Copyright OssurGibaud Group 2006 10 Market overview - France COMPETITIVE POSITIONING Other 6% Cognon-Morin 8% Thuasne 11% Gibaud 13% Innothera 22% Ganzoni 40% Axmed (DJ) 7% Other 22% Coop. Pharm. 7% L&R 9% Gibaud 24% Thuasne 31% Phlebology Braces & support Market size estimated $ 130 million – growth approx. 5% Healthcare services in France are tightly regulated by the Government, social security finances 80% Increased sales to hospitals and pharmacies Aging population and related orthopaedic problems Improved marketing and clinical education Compression therapy is a preferred treatment for venous ulcers and edema and involves application of external pressure on the vascular elements to assist in pumping blood back to the heart Market size estimated at $ 130 million – growth approx. 8% Static compression therapy (phlebology) constitutes 65-70% Compression therapy is reimbursed by the Government Improved marketing and clinical education of compression products Aging population and related orthopaedic problems
Copyright OssurGibaud Group 2006 11 The European Bracing & Support market Current situation The acquisition of the Gibaud Group adds meaningful scale in the European Bracing & Support market Post acquisition
Copyright OssurGibaud Group 2006 12 Sales by markets Q3 2006Össur & Gibaud
Copyright OssurGibaud Group 2006 13 Sales by product segment Q3 2006Össur & Gibaud