Slides
Page 1
Making life easier Davis | User, Bowel Care Impact4: Setting the standard of care at scale Conference call presentation FY 2025/26
Page 2
Forward-looking statements The forward-looking statements contained in this presentation, including forecasts 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 expectations, estimates and assumptions and based on the information available to Coloplast at this time. Heavy 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. 2
Page 3
Financial ambition towards 2030: Revised financial ambition towards 2030 3 5–7% Organic growth per year Mid-20% range EBIT margin in constant currencies, before special items Around 20% ROIC in FY 2029/30 Impact4 framework: The revised ambition reflects higher investment in long-term growth opportunities and changes in our external environment 3
Page 4
Creating capacity to invest in our Impact4 priorities 4 Sustain the strength and power of Chronic Care Increase focus on US opportunity Accelerate Wound & Tissue Repair Fund growth through continuous improvement and focused capital deployment Evolve our culture and people agenda 1 2 3 4 5 4 ’Funding the Journey’ program initiated Unlocking resources Freeing up DKK 500m: • Right-sizing China organisation • Lifting Biologics profitability • Organisational simplification • Reducing indirect procurement spend Reinvesting in growth Key investments: • Chronic Care innovation • Chronic Care commercial • US Chronic Care • US Interventional Urology • Technology & AI
Page 5
Coloplast well-positioned for long-term value creation Ostomy Care: #1 Continence Care: #1 Laryngectomy: #1 Tracheostomy: #4 AWD: #4 Biologics: #4 Interventional Urology: #4 Men’s Health: #2 Stable and predictable revenue model in Chronic Care with #1 positions Category leadership in structurally attractive growth markets A purpose-driven organisation and strong innovation culture Above-market revenue growth and industry-leading profitability ~25% of revenue in the US, with significant growth opportunity >75% of sales from #1 global market share positions >25 years of stable dividend payout >25 years of consistent organic revenue growth 5
Page 6
6 6% Organic growth 4% EBIT growth in constant currencies *15% ROIC * *before special items and in constant currencies **after tax and before special items. ** FY 2025/26 financial result Julie, Continence Care user
Page 7
FY 2025/26 organic growth of 6% driven by Chronic Care and Interventional Urology 7 Continence Care Voice & Respiratory Care Wound & Tissue Repair Ostomy Care Coloplast Group Reported revenue mDKK Organic growth 28,941 FY 2025/26 revenue by business area FY 2025/26 revenue by geography Share of organic growth Business area European markets Reported revenue mDKK Organic growth 28,941 Share of organic growth Geographic area Other developed markets Emerging markets Coloplast Group Interventional Urology 10,282 9,442 2,419 5% 7% 8% 2% 7% 6% 34% 38% 11% 4% 13% 100% 5% 7% 5% 6% 51% 34% 15% 100% 16,248 7,927 4,766 2,949 3,849
Page 8
FY 2025/26 reported revenue grew 4%, with 6% organic growth and 2%-points negative impact from currencies 8 • Reported revenue increased by DKK 1,067 million, or ~4% vs. last year. • Organic growth was ~6% or DKK 1,563 million, driven by: • Broad-based growth in Ostomy Care ex. China. • Strong growth in Continence Care, driven by Luja. • Strong growth in Voice & Respiratory Care, driven by Laryngectomy. • Wound & Tissue Repair impacted by US biologics reimbursement change and China product return. • Strong growth in Interventional Urology, driven by Men’s Health in the US. • Inorganic revenue from the skin care divestment in December 2024 and the Uromedica acquisition in February 2026 had a neutral impact on the reported revenue. • Foreign exchange rates had a negative impact of ~2%-points on reported growth, mainly related to the depreciation of the USD, GBP and a basket of Emerging markets currencies against the DKK.Growth FY 2025/26 Revenue development (mDKK) FY 2025/26 highlights 1,563 Currency effect InorganicOrganic growth (constant currencies) Reported revenue FY 2024/25 Reported revenue FY 2025/26 +1.067 mDKK -24 -472 28,941 27,874 5.6% -0.1% -1.7% 3.8%
Page 9
Reported EBIT margin of 26%1 in FY 2025/26: ~100 and ~40 basis points negative impact from currencies and Kerecis respectively 9 • Gross margin of 67%, compared to 68% last year. • Negative impact from currencies (~100 basis points) and ramp-up costs in Costa Rica and Portugal. • Inflation on costs of goods sold stable most of the year, however, we started to see the impact of the Middle East conflict in Q4 on raw material and freight prices. • Operating expenses amounted to DKK 11,799 million, a 5% increase from last year. • Distribution-to-sales ratio was 33%, on par with last year. Distribution costs grew 4% vs. last year, mostly reflecting Kerecis one-off costs in Q1 and Impact4 investments. • The Admin-to-sales ratio was 4%, on par with last year. • The R&D-to-sales ratio was 4% vs. 3% last year, driven by higher activity levels in Chronic Care and Biologics. • EBIT before special items amounted to DKK 7,447 million, a 3% decrease from last year. The reported EBIT margin before special items was 26%, against 28% last year, and includes: • ~100 basis points negative impact from currencies • ~40 basis points incremental negative impact from Kerecis. FY 2025/26 EBIT margin development before special items (%) FY 2025/26 highlights 1) Before special items expense of DKK 3,195 million in FY 2025/26 and special items expense of DKK 469 million in FY 2024/25. EBIT1 margin FY 25/26 (constant currencies) Currency effect Reported EBIT1 margin FY 25/26 ∆ Other operating items ∆ R&D- to-sales ∆ Admin- to-sales ∆ Distribution- to-sales ∆ Gross margin Reported EBIT1 margin FY 24/25 -1.5% 0.0% -0.3% 0.0% 0.1% 1.0% 27.5% 25.7% 26.7% 1.0%
Page 10
FCF development1 Strong FCF-to-sales ratio at 22% in FY 2025/26 vs. 19% last year: positive working capital development and lower net financial items 10 • Adjusted FCF1 in FY 2025/26 was DKK 6,418 million, or a 23% increase, while adjusted FCF-to-sales ratio was 22%, compared to 19% last year (excluding acquisition costs this year and benefit from the divestment last year). • NWC-to-sales was 24%, compared to 26% in FY 2024/25. Favorable development driven by trade receivables and timing of trade payables. NWC-to-sales ratio is expected to stay around 24% in the Impact4 strategic period. • Positive impact from lower net financial items. • Negative impact from higher income tax paid and higher CAPEX. • CAPEX-to-sales ratio was 5%, on par with last year, and includes investments in the new manufacturing site in Portugal, which became operational in Q4 2025/26. FY 2025/26 highlights 1) FCF adjustments: FY 2025/26 adjusted for acquisition costs related to Uromedica. FY 2024/25 adjusted for the Skin Care divestment. FY 2023/24 adjusted for the extraordinary tax payment related to the transfer of Atos Medical’s Intellectual Property (net impact of DKK 2.5 billion). FY 2022/23 adjusted for acquisitions, Mesh payments, and payment related to the formal resolution of the US Veterans Affairs matter; FY 2021/22 and FY 2020/21 adjusted for acquisitions and Mesh payments 2) Cash Conversion calculated as FCF ex. Mesh payments, interest payments, tax payments, M&A and marketable securities relative to EBIT before special items. Cash Conversion is trailing twelve months 3) FY 2024/25 adjusted for divestment of DKK 192 million 4) FY 2023/24 adjusted for the extraordinary tax payment of DKK 2.5 billion 24/2523/2422/2321/2220/21 25/26 828184 77 93 1915151823 22 98 5,202 3,9303,7494,016 4,547 6,418 FCF (DKKm)1Cash Conversion2FCF-to-Sales (%)1
Page 11
2030 organic growth ambition: continued strength in Chronic Care and Interventional Urology, slower growth in Wound & Tissue Repair 11 Illustrative growth contribution until FY 2029/30 Absolute revenue growth contribution, bnDKK OC2025/26 IU 2029/30 Projected WTRCC VRC Chronic Care Acute Care FY 2029/30 ambition: 5-7% organic growth per year • Chronic Care: continued growth above the market • Wound & Tissue Repair: mid-single digit growth driven by the reimbursement change in biologics • Interventional Urology: mid- to high-single digit growth • Neutral to negative impact from pricing over the rest of the period • Based on current estimates, the impact from the Competitive Bidding Program in the US is included FY 2026/27 guidance: 5-7% organic growth • Chronic Care: continued growth above the market • Wound & Tissue Repair: reimbursement change in biologics annualized in Q2. Continued softer momentum in Advanced Wound Dressings in Europe, partly offset by easier baseline in China • Interventional Urology: mid- to high single-digit growth • Pricing pressure from healthcare reforms in France and Germany 5-7% organic revenue growth per year *expected implementation in January 2028
Page 12
2030 EBIT margin ambition: step up in investments and external headwinds, partly offset by ‘Funding the journey’ program 1212 Illustrative development in EBIT margin1 until FY 2029/30 EBIT margin contribution, % FY 2029/30 ambition: EBIT margin in the mid-20% range over the period • Step up in investments in innovation and selected commercial areas • External headwinds from pricing pressure and inflation on the rise • Funding the journey program to free up around DKK 500 million with full impact in FY 2027/28 FY 2026/27 guidance: EBIT margin of around 25% • Inflationary headwinds of 3-4% on raw materials and freight (accounting for around 55% of COGS) • Continued ramp up, primarily in Portugal • Step up in investments • ‘Funding the journey’ benefit, with around 75% of the impact already in FY 2026/27, to support step up in investments and partly offset inflationary headwinds 1. In constant currencies. Before special items. 2025/26 Gross margin Leverage effect/ scale Funding the journey Investments 2029/30 Projected EBIT margin1 In the mid-20% range over the period
Page 13
13 Continued growth above the market and industry-leading profitability in the short- and long-term Organic revenue growth Reported revenue growth in DKK EBIT margin* ROIC** Capex-to-sales ratio *before special items. **After tax, before special items Effective tax rate 7-9% Around 25% Around 16% Around 5% 5-7% Around 22% n.a. Mid-20% range Around 20% 4-5% 5-7% Around 22% FY 2026/27 2030 ambition
Page 14
Mission Making life easier for people with intimate healthcare needs Values Closeness… to better understand Passion… to make a difference Respect and responsibility… to guide us Vision Setting the global standard for listening and responding