MILAN--()--At a meeting held on September 20th, Sorin S.p.A. (MIL:SRN) Board of Directors approved unanimously the 2012-2017 Strategic Plan. Sorin Group’s Plan focuses on the implementation of the Company’s medium-long term strategy.
The revenue targets in the 2012-2017 period by business units are the following:
- Expected revenue growth for the Cardiopulmonary Business Unit of 2-4%* CAGR, also thanks to the full operational recovery of the Mirandola plant following the earthquakes;
- Expected revenue growth for the Cardiac Rhythm Management Business Unit of 2-4%* CAGR, in light of challenging market conditions;
- Expected revenue growth for the Heart Valves Business Unit of 7-9%* CAGR.
In addition to its base business, the Company has also identified the following additional growth opportunities:
- Investment into two new growth platforms addressing heart failure and mitral valve regurgitation. Potential additional revenues from these new ventures could amount to €100-150 million in 2017;
- Accelerated geographic expansion initiatives in Emerging markets and primarily in the BRIC region. Potential additional revenues from local manufacturing and R&D investments in these regions could amount to €30-40 million in 2017;
- Revenue-generating acquisitions aimed at increasing the Company's critical mass in markets in which it is already present or in adjacent business segments.
The Company will leverage on its strong balance sheet to fund these additional growth opportunities.
Including the additional growth opportunities Sorin Group expects consolidated revenues to grow 5-7%* CAGR during the 2011-2015 period, despite challenging market conditions, then accelerating to 8-10% CAGR in the 2015-2017 period. EBITDA Margin is expected to increase by an average of approximately 100 basis points per year during the period and reach 20% in 2015.
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The outline of the new Strategic Plan will be presented to the financial community during a meeting today, Monday 24 September, 2012 at 9.00 am CET at Palazzo Mezzanotte Congress Centre, Piazza Affari n. 6, Milan (audio webcast will also be available). The detailed agenda and presentation are available on Sorin Group’s website (www.sorin.com/news-events).
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This press release contains forward-looking statements. These statements are based on the Group’s current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future, and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: continued volatility and further deterioration of capital and financial markets, changes in commodity prices, changes in general economic conditions, economic growth and other changes in business conditions, changes in government regulation (both in Italy and abroad), and many other factors, most of which are outside of the Group’s control.
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About Sorin Group
Sorin Group (www.sorin.com) is a global company and a leader in the treatment of cardiovascular diseases. The company develops, manufactures and markets medical technologies and innovative therapies for cardiac surgery and for the treatment of cardiac rhythm disorders. With 3,750 employees worldwide, the Group focuses on three major therapeutic areas: cardiopulmonary bypass (extra-corporeal circulation and autotransfusion systems), cardiac rhythm management, and repair and substitution of heart valves. Each year, over one million patients are treated with the devices of Sorin Group in more than 80 countries.
* At comparable exchange rates