Microport Scientific Corp. · HKEX:853
Microport Scientific — FY2018 Earnings Presentation
25 slides from Microport Scientific's earnings presentation, Mar 27, 2019
Slide 1: MicroPort Scientific Corporation
() MicroPort MicroPort Scientific Corporation
Slide 2: Disclaimer
G@) MicroPort’ Disclaimer This document is for information purposes only and does not constitute or form part of any offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for any securities of MicroPort Scientific Corporation, and no part of it shall form
Slide 3: Contents
(@) MicroPort S CONTENTS ANNUAL RESULT HIGHLIGHTS FINANICAL REVIEW BUSINESS REVIEW OUTLOOK APPENDIX — FINANCIAL STATEMENTS
Slide 4: Annual Result Highlights
_ ANNUAL RESULT HIGHLIGHTS REVENUE Orthopedics Cardiovascular CRM $236.3M $202.8M ) sissam (EX NET PROFIT attributable to equity shareholders eS, —— | cS, Endovascular Neurovascular Electrophysiology <) $35.0M © $18.4M S $12.7M MicroPort Scientific Corporation 2018 Earnings Release 27 March 2019
Slide 5: Annual Result Highlights (cont'd)
ANN RESULT HIGHLIGHTS (cont’d) O 10 products obtained NMPA approval, including Tubridge® FINANCIAL HIGHLIGHTS O Revenue: $669.5m, 48.6% YOY, mainly attributable to a significant growth from key segments and core products Cardio: 22% YOY7*, among which Firehawk™ 49% YOY in China market Vascular Recon
Slide 6: Annual Result Highlights — Product and Pipeline Progress
ANNUAL RESULT HIGHLIGHTS — Product and Pipeline Progress Domestic made femoral stem Domestically made Aspiration Medial Stability Total Knee Replacement System — PS Type Implant Trailwalker” Intramedullary nail ARBORES’ Percutaneous vertebroplasty Domestic made Instrument kit for ADVANCE’ Medial-Piv
Slide 7: Contents
(@) MicroPort S CONTENTS ANNUAL RESULT HIGHLIGHTS FINANICAL REVIEW BUSINESS REVIEW OUTLOOK APPENDIX — FINANCIAL STATEMENTS
Slide 8: Financial Review — Consolidated Financial Performance
FINANC REVIEW — Conso Revenue (USD: Million) ated Financial Performance 2018 [su1) Piss.) 669.5 444.2 Mnon-CRM Business l™ CRM Business Operational Expenses (USD: Million} Gross Profit Margin — 2017 2018 Net Profit/(Loss) (USD: Million} 418.3 2018 307.0) Mnon-CRM Business ml CRM Business *CRM consol
Slide 9: Financial Review — Operating Expenses
INANCIAL REVIEW — Operating Expenses Sales and Marketing Expenses (USD: Million) : Administrative Expenses (USD: Million) Research and Develop. Expense (USD: Million) & oh a 2017 2018 2017 2018 MmMnon-CRM mMMICRM —&~% of sales 2017 2018 Minon-CRM MEICRM —=i~% of sales @minon-CRM mamCRM % of sales og
Slide 10: Contents
(@) MicroPort S CONTENTS ANNUAL RESULT HIGHLIGHTS FINANICAL REVIEW BUSINESS REVIEW OUTLOOK APPENDIX — FINANCIAL STATEMENTS
Slide 11: Business Review — Orthopedics Non-China
BUSINESS REVIEW — Orthopedics Non-China 2018 Revenue Net Loss Operating Profit (USD: Million} (USD: Million) (USD: Million} 2017 2018 3.7 1.0% 6.2% 2.0% -8.5% “4.6% = \ | | 1 (2.4) | ry 209.3 199.8 201.7 214.2 218.5 (8.7) 2017 2018 Revenue: $218.5m, 2.0% YOY ‘, in line with the average Orthope: : :
Slide 12: Business Review — Orthopedics China
BUSINESS REVIEW — Orthopedics China Revenue and Growth ( USD: Million) China Business Highlights USD: million +32.8% 17.8 13.4 China Ortho m2017 Progress in China 2018 +31.6% 16.3 Joints 102 8s l Hospital Penetration 136 +16% Surgical Cases +82% +26% SuperPath™ Hip Products Knee Products 2017 2018 “
Slide 13: Business Review — Cardiovascular
BUSINESS REVIW — Cardiovascular 2018 Revenue (USD: Million) Percentage of Firehawk™ in DES Sales 203 Global: 22.0% 4; Domestic: 23.4% 4; Overseas: 2.6% 4 166 37 | 97 1a 125 10 ag oH 2 8 a 6 i 37% ee 99 105 105 96 | 2010 2011 2012 #«492013 2014 #«4+2015 2016 +2017 2018 revenue % of FH in FB2+FH sales
Slide 14: Business Review — CRM
BUSINESS REVIEW — CRM New Products Launch 2018 China Business Revenue (USD: Million) PLATINIUM™ 4LV xFine™ SonR CRT-D Eno™,Teo™ and Oto™ = SmartTouch™ March 2018 June 2018 January 2019 January 2019 a ee | | Non-China Business Highlights oO Revenue: $152.7m since consolidation, decreased mainly due t
Slide 15: Business Review — Endovascular
BUSINESS REVIEW — Endovascular 2018 Revenue Sales Growth by Products (USD: Million) (USD: Million) 39.6% YOY Highest Revenue Growth in Castor™ +44.1% Decade 19.3 2018 . 35.0 13.4 25.4 2017 . +28.9% 18.8 0 = 9.4 426.9% 15.2 " 7.0 31 88102120 13-4 o ag 38 2010 2011 2012 «2013: «2014 «2015. 2016 «= 201
Slide 16: Business Review — Neurovascular
BUSINESS REVIEW — Neurovascular 2018 Revenue Sales Growth by Products (USD: Million) {USD: Million) | +36.5% Ischemic Hemorrhagic | 18.4 +5.2% f A 1 | a3s 3.2 86 | 2017 3a 8.5% 1“ 5.7 5 | m2018 4 37 3.6 = 7 Z | | 7 L L 2010 2011 2012 2014 2014 2015 2016 2017 2018 . APOLLO™ ‘WILLIS™ Tubridge™ Extensi
Slide 17: Business Review — Electrophysiology
BUSINESS REVIEW — Electrophysiology 2018 Revenue Sales Growth by Products (USD: Million) {USD: Million) Sales Volume Sales Revenue Total: 34.5% 4; Domestic: 31.6% 4; Overseas: 55.9% 4 10% 30% -_ 24% mg Domestic 14 @ International 0.7 7 a | | 0.6 8.3 61 4a7 2.6 oH | 2017 2018 2017 2018 me 0.8 | EI i
Slide 18: Business Review — Structural Heart
BUSINESS REVIEW — Structural Heart Highlights on Products VitaFlow® composition VitaFlow® VitaFlow?® is consisted of the following: O VitaFlow® is designed to provided solution for aortic valve ‘Transcatheter aortic valve stenosis and has demonstrated safety and effectiveness in B Deleerspscem 5 ag.
Slide 19: Contents
(@) MicroPort S CONTENTS ANNUAL RESULT HIGHLIGHTS FINANICAL REVIEW BUSINESS REVIEW OUTLOOK APPENDIX — FINANCIAL STATEMENTS
Slide 20: Outlook — Continuous Product Pipeline Fueling Long-term Growth
OUTLOOK Continuous Product Pipeline Fueling Long-term Growth Domestically made knee Domestically made hip Domestically made spine Domestically made surgical system NMPA system NMPA system NMPA instrument for hip system NMPA ' ' + + VitaFlow™ Firehawk™ Nova Firefighter™ NC Firebird2™ Nova VitaFlow"Il
Slide 21: Contents
(@) MicroPort S CONTENTS ANNUAL RESULT HIGHLIGHTS FINANICAL REVIEW BUSINESS REVIEW OUTLOOK APPENDIX — FINANCIAL STATEMENTS
Slide 22: Appendix I — Consolidated Income Statement
PPENDIX | — Consolidated Income Statemen Revenue 669,490 444,190 51% Cost of sales (199,474) (125,793) 59% Gross profit 470,016 318,397 48% Other net income/(loss) 13,796 (2,540) -643% Research and development costs (104,814) (58,150) 80% Distribution cost (217,792) (137,766) 58% Administrative expe
Slide 23: Appendix II — Consolidated Balance Sheet (1)
APPENDIX II — Consolidated Balance Sheet (1) Non-current assets Investment properties 5,451 5,899 8% Other property, plant and equipment 336,263 282,280 19% Land use right 15,087 16,224 7% Intangible assets 117,489 83,904 40% Prepayments for non-current assets 6,222 2,491 150% Goodwill 162,673 54,45
Slide 24: Appendix II — Consolidated Balance Sheet (2)
APPENDIX II - Consolidated Balance Sheet ( Non-current liabilities Interest-bearing borrowings 137,829 28,235 388% Deferred income 23,905 24,291 -2% Contract liabilities 27,766 - na. Convertible bonds 3,571 154,421 -98% Other payables 93,625 54,796 71% Derivative financial liabilities 10,640 - na. D
Slide 25: The Patient Always Comes First
MicroPort’ The Patient Always Comes First