Polynovo Limited · ASX:PNV
Polynovo — FY2021 Earnings Presentation
32 slides from Polynovo's earnings presentation, Aug 26, 2021
Slide 1: PolyNovo FY21 Results
PolyNovo FY21 Results 26 August 2021
Slide 2: PolyNovo Reaches Breakeven
PolyNovo Reaches Breakeven Despite Covid PolyNovo has achieved significant Sales growth revenue growth and achieved a small profit 49% US (excluding non-cash items). 53% EU 25% Aust • Cash increased 0.4% between 1H21 and FY21 • Continued account acquisition in all regions Syntrel Hernia devices Digi
Slide 3: Top Line Summary – FY21 Dashboard
Top Line Summary – FY21 Dashboard NovoSorb® BTM NovoSorb BTM USA Sales ($USD) Group Sales Total Group Revenue 2021: 2021: 2021: 49.0% $15.5m 2020: $10.4m 33.8% $25.5m 2020: $19.1m 32.0% $29.3m 2020: $22.2m Employee Related Expenditure BARDA Revenue Total Employees (excl. share-based payments) 2021:
Slide 4: Global Expansion
Global Expansion United States South Africa Our US business is profitable and our largest revenue Our South African distributor, Ascendis Medical, is contributor. We have continued to expand our sales and achieving reasonable sales through the public hospital marketing team. We see further investmen
Slide 5: Global Expansion
Global Expansion Middle East Asia Good potential delayed due to Covid. As vaccination Direct sales in Singapore are progressing well with eight hospitals programs allow greater access, we anticipate market purchasing NovoSorb BTM for use in a wide range of elective and entries in H2 FY22. trauma cas
Slide 6: Europe and Asia Expansion
Europe and Asia Expansion Distributors appointed in: • Finland – September’20 • Taiwan – October ‘20 • Belgium, Netherlands, Luxemburg (Benelux) – November ‘20 • Greece – November ’20 • Turkey – January ’21 • Poland – January ’21 • Italy – February ‘21 6
Slide 7: Marketing and Sales
Marketing and Sales Highlights by region
Slide 8: Highlights FY21 USA
Highlights FY21 USA • NovoSorb®BTM sales revenue grow to $USD 15.5M, • Expanded our Canadian reach with an additional large representing 49% YoY growth. center through special access/exemption scheme – • 2H21 outpaced 1H21 by 38% or $USD 2.5M. benefiting patient outcomes. • Q3 and Q4 were both recor
Slide 9: Highlights FY21 Australia/New Zealand
Highlights FY21 Australia/New Zealand • Grew NovoSorb BTM revenue in Australia by 25% and volume 35%. Volume increase reflecting penetration into smaller wounds/elective procedures. • Appointed two additional sales people enabling greater territory penetration and coverage. • New Zealand -5% growth
Slide 10: Highlights FY21 UK/Ireland
Highlights FY21 UK/Ireland • NovoSorb BTM sales in 23 NHS. • Sales predominantly in elective and trauma. FY22 will see expansion into burns with 70% of Burns Centres having purchased. • Maintained and developed staff through Covid lockdown, enabling us to build relationships with key customers to qu
Slide 11: Highlights FY21 Distributor Markets
Highlights FY21 Distributor Markets • Strong performances in Germany, Austria, Switzerland, Belgium, Netherlands, Finland, Norway and Denmark. Other regions building well. • 53% growth in distributor sales. • Strong peer to peer referrals through webinars and conference presentations. • Expanded geo
Slide 12: New Product Pipeline
New Product Pipeline Research & Development 12
Slide 13: New Product Development – update
New Product Development – update Hernia Devices • Factory complete and machinery commissioned/ validate. • Final fully commercial versions of product manufactured and large animal study commenced. • Successfully manufactured 1300+ devices in various SKU sizes for the validation processes and testing
Slide 14: New Products
New Products • Addition of smaller sizes US Alternate Care/ Community Market Plastics and Reconstructive Device for chronic wounds • Unique sizes and shapes of NovoSorb BTM • Development brought in house. o 2x2 cm for the US Alternate care $400m market • Employed dedicated marketing resource. o 5x5c
Slide 15: FY22 Strategies
FY22 Strategies • Remain agile in our response to Covid. • Aggressive revenue growth through sales team expansion, geographic expansion and targeted marketing programs. • Continue the expansion of R&D resources to concurrently develop multiple new NovoSorb devices. • Execute the Pivotal Trial (BARDA
Slide 16: COVID-19
COVID-19 Sales / Marketing Innovations
Slide 17: Covid Impacts
Covid Impacts Hospitals, globally, are still challenged by Covid and forecasting revenue is challenging despite our recent strong performance. Some increase in logistic cost and workload however maintaining supply routes, holding high inventory levels. Markets • Vaccinations do seem to be opening ho
Slide 18: Inventory Status
Inventory Status Full service 3PL warehouse facilities in: • US • New Zealand • Australia • Singapore • England • Belgium All facilities well stocked with inventory to address forward demand expectations and FY22 sales targets. We can service customers promptly in any region. 18
Slide 19: Other Matters
Other Matters - BARDA - Capital Works - New Facility - Talent - Diversity - ESG
Slide 20: BARDA Trial Program Revenue
BARDA Trial Program Revenue • Pivotal trial is open for recruitment, screening of eligible patients in progress. • 25 US sites and 5 Canadian sites being enrolled. • FY22 will see higher BARDA income commensurate with the patient recruitment activities. • BARDA committed $15m USD towards the trial.
Slide 21: Capital Works
Capital Works We completed our build and commissioning of the Unit 1 manufacturing facility providing capacity and flexibility for the future. Inside new Capabilities of facility: cleanroom facility: continuous foam • Synthesis polymers cutting machine • Extrude film, fibre and micro-spheres • Ultra
Slide 22: New Facility
New Facility Take a virtual tour of our new facility Dr Anthony Kaye COO provides an overview of the new factory facility in Unit 1. 22
Slide 23: Talent: Building for the Future
Talent: Building for the Future Total employees at 13 August 110 compared with 78 June 2020. • Expansion of sales and marketing roles will continue throughout FY22 to drive sales and market penetration. • US will remain our largest market and focus. • Will invest further in EU team for continued mar
Slide 24: Staff Diversity and plans
Staff Diversity and plans All Employees Total Staff Middle Middle by Department Staff #s Female East/African Hispanic Asian Female East/African Hispanic Asian Sales 43 15 1 1 4 35% 2% 2% 9% 40 70 Marketing 9 4 1 0 1 44% 11% 0% 11% Rest of Company 58 21 5 2 28 36% 9% 3% 48% Managers / Supervisors Tot
Slide 25: ESG Initiatives
ESG Initiatives • Continue our drive towards diversity in all our markets. • Develop a detailed and measurable carbon offset plan. • Continue to drive waste reduction and segregated recycling strategies. • Drive towards a carbon neutral position by end of FY23. • Maintain our strong corporate govern
Slide 26: FY21 Financial Results Review
FY21 Financial Results Review 26
Slide 27: FY21 Financial Results Review
FY21 Financial Results Review Total Revenue ($m) 0.2 Highlights 3.7 • Total revenue +32% 0.1 3.1 • BTM product sales +34% 1.0 • Total BTM sales $25.5m 4.0 25.5 19.1 • 2H21 BTM sales +27% on 1H21 9.3 • Record monthly BTM sales of $3.3m in June ‘21 FY19 FY20 FY21 Strong Growth in All Markets Product S
Slide 28: FY21 Financial Results Review
FY21 Financial Results Review Operating Expenses ($m) (excl. Share Based Payments & Unrealised Forex) Operating Expenses (excl. Share based payments, unrealised forex loss) 27.3 • Operating Expenses +26% 21.7 • Continued investment in growth 16.2 • Increase headcount by 36% from 78 to 106 • Entered
Slide 29: FY21 Financial Results Review
FY21 Financial Results Review Net cash outflow from operations ($m) Cash on hand ($m) 11.6 FY19 FY20 FY21 (0.4) (0.3) 7.7 7.7 30-Jun-20 31-Dec-20 30-Jun-21 (3.4) Highlights Capex ($m) • Minimal cash burn from operations of -$250k FY19 FY20 FY21 • Cash burn trend continues to improve • $7.7m cash on
Slide 30: FY21 Financial Results Review
FY21 Financial Results Review ($m) FY21 FY20 Change % P&L Highlights REVENUE Product Sales - BTM 25.5 19.1 34% BARDA 3.7 3.1 18% • Product sales +34% Other Income 0.2 0.1 151% TOTAL REVENUE 29.3 22.2 32% • Revenue (incl. BARDA) +32% Changes in inventories & WIP (1.6) (1.7) -9% • Product sales gross
Slide 31: FY21 Financial Results Review
FY21 Financial Results Review FY21 Results Summary • Strong product sales growth 34%. • Achieved break even during FY21. • Profitable result of $0.26m (excl. non-cash items). • Entered new markets successfully. • Improved gross margin on product sales +3%. • Minimal cash burn from operations -$250k.
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