REG - ConvaTec Group PLC - Capital Markets Event

ConvaTecAnnouncement

17/11/2022 07:00

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RNS Number : 6928G  ConvaTec Group PLC  17 November 2022

17 November 2022

Convatec Group Plc

Capital Markets Event

 

Convatec will host a Capital Markets Event this afternoon, 17 November 2022.

 

Convatec's Executive Leadership Team, including Chief Executive Officer, Karim
Bitar, and Chief Financial Officer, Jonny Mason, will present the next phase
of Convatec's FISBE strategy and the Group's future growth opportunities.

 

The team will provide insight into how the Group intends to deliver
sustainable organic revenue growth of 4-6% per annum and adjusted operating
profit margin expansion into the mid-20s over the medium-term. In delivering
these targets, the Group also expects to achieve double-digit EPS and Free
Cash Flow CAGR.

 

The presentations will provide detail into:

-      The attractive chronic care markets the Group operates in and
Convatec's leading positions across key geographies

-      The next phase of the Group's FISBE strategy and how the five
pillars will evolve to:

·    Focus on strengthening customer loyalty in key markets and categories

·    Innovate to increase vitality and velocity of trusted medical
solutions

·    Simplify to improve productivity across our organisation

·    Build and embed mission-critical capabilities and winning culture

·    Execute with excellence while integrating ESG

-      The growth strategies and opportunities for each of the Group's
categories - Advanced Wound Care, Ostomy Care, Infusion Care and Continence
Care - and how each will improve the customer experience, enhance its
portfolio and drive productivity

-      How the Group intends to improve its operating profit margin by:

·    strengthening mix across and within categories

·    driving simplification and productivity across commercial, Global
Quality & Operations and G&A

-      The attractive financial qualities of the Group, its cash
generative nature, and the Group's capital allocation framework

 

On 10 November 2022 the Group published its 10-month trading statement which
highlighted continued good momentum in the business.  The Group upgraded its
2022 full-year revenue guidance to 5.4-5.8% organic revenue growth, and
confirmed it was on track to deliver an adjusted operating profit margin in
2022 of at least 19%.

 

Consistent with the Group's medium-term targets, Convatec expects 4-6% organic
revenue growth for 2023 to be achievable and for there to be further operating
profit margin progression, assuming a modest reduction in the rate of
inflation in 2023.

 

The Group is also pleased to announce that on 15 November it refinanced its
bank facilities with $1.2 billion committed for 5 years at slightly improved
margins over base rates.  The Group's $500m 2029 senior unsecured notes
remain in place.  The Group expects Net Debt at year-end to be c.2.1x EBITDA
and adjusted finance expense to be c.$55m for 2022.  Given the increases in
the underlying market base rates, the current expectation is that all in debt
costs in 2023 will be c.150bps higher.

 

The Group will not be disclosing any new material information at today's
event.

Capital Markets Event details

The Capital Markets Event for institutional investors and sell-side analysts
will start today at 14:00. Places are limited so if you would like to attend
in-person please contact IR@Convatec.com (mailto:IR@Convatec.com)

 

There will also be a live webcast for attendees who wish to join the event
virtually, available here
(https://stream.brrmedia.co.uk/broadcast/6363a14d508aca3dd5f223e2) .

 

A copy of the presentation will be available on Convatec's website
(https://www.convatecgroup.com/investors/reports-results-and-presentations/)
after the event with the on-demand webcast available on Friday.

 

Enquiries

Analysts and Investors

Kate Postans, VP Investor Relations,
Convatec
                 +44 (0)782 644 7807

ir@convatec.com (mailto:ir@convatec.com)

 

Media

Buchanan: Charles Ryland / Chris
Lane                
                                      +44
(0)207 466 5000

 

About Convatec

 

Pioneering trusted medical solutions to improve the lives we touch: Convatec
is a FTSE 100 global medical products and technologies company, focused on
solutions for the management of chronic conditions, with leading positions in
advanced wound care, ostomy care, continence and critical care, and infusion
care. Group revenues in 2021 were over $2 billion. With around 10,000
colleagues, we provide our products and services in over 100 countries, united
by a promise to be forever caring. Our products provide a range of benefits,
from infection prevention and protection of at-risk skin, to improved patient
outcomes and reduced care costs. To learn more about Convatec, please visit
http://www.convatecgroup.com (http://www.convatecgroup.com)

 

Forward Looking Statements

This document includes certain forward-looking statements with respect to the
operations, performance and financial condition of the Group.
Forward-looking statements are generally identified by the use of terms such
as "believes", "estimates", "aims", "anticipates", "expects", "intends",
"plans", "predicts", "may", "will", "could", "targets", continues", or their
negatives or other  similar expressions. These forward-looking statements
include all matters that are not historical facts.

 

Forward-looking statements are necessarily based upon a number of estimates
and assumptions that, while considered reasonable by the Company, are
inherently subject to significant business, economic and competitive
uncertainties and contingencies that are difficult to predict and many of
which are outside the Group's control. As such, no assurance can be given that
such future results, including guidance provided by the Group, will be
achieved. Forward-looking statements are not guarantees of future performance
and such uncertainties and contingencies, including the factors set out in the
"Principal Risks" section of the Strategic Report in our Annual Report and
Accounts, could cause the actual results of operations, financial condition
and liquidity, and the development of the industry in which the Group
operates, to differ materially from the position expressed or implied in the
forward-looking statements set out in this document. Past performance of the
Group cannot be relied on as a guide to future performance.

 

Forward-looking statements are based only on knowledge and information
available to the Group at the date of preparation of this document and speak
only as at the date of this document. The Group and its directors, officers,
employees, agents, affiliates and advisers expressly disclaim any obligations
to update any forward-looking statements (except to the extent required by
applicable law or regulation).

 

 1  Bold denotes changes from FISBE 1.0

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