Inspiration Healthcare Group Plc · LSE:IHC
Inspiration Healthcare — FY2022 Earnings Presentation
27 slides from Inspiration Healthcare's earnings presentation, Jan 31, 2022
Slide 1: Results Presentation Year Ended 31 January 2022
Results Presentation Year Ended 31 January 2022 Inspiration Healthcare Group plc Neil Campbell – CEO Jon Ballard – CFO www.inspirationhealthcaregroup.plc.uk
Slide 2: Disclaimer
Disclaimer While the information contained herein has been prepared by Inspiration Healthcare Group plc (“Inspiration”) in good faith, neither it nor any of its directors, officers, agents, advisers, affiliates or employees makes any representation or warranty, express or implied, nor shall any of t
Slide 3: Our Focus
Our Focus Every year, an estimated 15 million babies are born preterm1,4 and this number is rising3 Preterm birth complications are responsible for approximately 1m deaths in 2015 – the largest cause of mortality in infants under 5 (18%)3 Our neonatal intensive care portfolio is designed to support
Slide 4: Inspiration Healthcare - a global provider of medical technology
Inspiration Healthcare - a global provider of medical technology 4
Slide 5: Strategic Highlights
• Export growth and realising synergies • Successfully integrated SLE and Viomedex into the Group Strategic • Ongoing synergies throughout the enlarged Group Highlights • Investment in new manufacturing and technology centre in the UK to 31 January 2022 • China / Japan key registrations approved for
Slide 6: Operational Highlights
• Strengthened and expanded Management • Integration of new branding across the Group • Queen’s Award for Enterprise and Innovation for SLE Ltd for Oxygenie® software- based algorithm Operational • Roll-out of the Group’s ERP system into Viomedex and SLE Highlights • Introduction of new and improved
Slide 7: Financial Highlights
• Revenue: £41.1m (FY2021: £37.0m) increase of 11% • Gross Margin: 50.2% (FY2021:48.7%) • Adjusted EBITDA1: £6.4m (FY2021: £5.6m), increase of 14% Financial • Adjusted EBITDA margin 15.6% (FY2021:15.2%) Highlights • Adjusted Operating Profit: £4.3m (FY2021: £4.3m) • Underlying diluted EPS2 6.10 penc
Slide 8: Consolidated Income Statement
Consolidated Income Statement FY 2022 FY 2021 Comments £’000 £’000 Revenue 41,050 36,980 • Increased by 11%. • Improved margin primarily due to Gross Profit 20,592 18,022 increased revenue from branded Gross profit margin 50.2% 48.7% products offset in part by increases in cost of goods Admin. expen
Slide 9: Logistics not without challenges
Logistics not without challenges • Supply chains around the world damaged by Covid • Tough for foreseeable future – end 2023? Challenge Solution / Mitigation Electrical components – worldwide disruption Forward orders, Changing Components, Partnership with suppliers Silicone for mouldings Advanced o
Slide 10: Product Ownership
Revenue Breakdown Distributed TOTAL* Branded Products Technology Support Covid-19 Products Product Ownership 56% : £22.9m 33% : £13.6m 11% : £4.6m 0% : £nil 100% : £41.1m 32% : £11.8m 40% : £14.9m 8% : £3.0m 20% : £7.3m 100% : £37.0m Acute Care Service Infusion Covid-19 TOTAL* Market Sector 73% : £2
Slide 11: Revenue Breakdown – Geography
Revenue Breakdown – Geography 11
Slide 12: Consolidated Balance Sheet
Consolidated Balance Sheet FY 2022 FY 2021 Comments £’000 £’000 Intangible assets 16,782 15,206 • Increase of £1.6m due to increased spend on development costs and PPE 1,798 919 Group IT systems offset by amortisation Right of use asset 7,383 3,102 • Increase of £0.9m primarily due to Deferred tax a
Slide 13: Consolidated Cash Flow
Consolidated Cash Flow FY 2022 FY 2021 Comments £’000 £’000 Cash generated from operations 4,130 4,944 • Decrease compared to FY 2021 due to an increase in trade Taxation paid (554) (209) debtors as a result of revenue Net cash generated from operating activities 3,576 4,735 phasing offset in part b
Slide 14: Our Business Model
INSPIRATION HEALTHCARE GROUP Our Business Model
Slide 15: Our Growth Drivers
Our Growth Drivers Significant Market Growth • Neonatal World Market CAGR 6.5% Market Penetration • Optimise opportunity for all products where regulatory clearance exist (ie EU) • Leverage route to market working with distribution partners Market Development • Expanding opportunity for existing pro
Slide 16: Our Market Opportunity – Neonatal
Our Market Opportunity – Neonatal Worldwide Neonatal Intensive Care Unit ~£1500 cost per baby Industry is expected to per day in neonatal grow with a CAGR of intensive care 6.46% from 2021 to 20275 A market which Every year, an supports our growth estimated 15 million drivers babies are born preterm
Slide 17: Investment For The Future
Investment For The Future R&D • Significant investment in New Product Development • Create world leading products • Create disruptive technologies Regulatory • Invest in new electronic document management system • Invest for market access of existing products (USA, Japan, India, China etc) Market De
Slide 18: Acquisition Strategy
Acquisition Strategy Target companies • Revenue generating products • Early / Established brand Key Features • Add to product portfolio to fill gaps / extend range • Add capability to increase revenues (sales and service), reduce costs (manufacturing in house) 18
Slide 19: Project Wave – update
Project Wave – update Recruitment started in 2021 but slow Trial paused to allow scope widening from 27 weeks to 24 weeks GA Health Protection Agency approval Autumn 2021 Recruitment restarted late 2021 7 patients studied to April 2022 19
Slide 20: Manufacturing and Technology Centre
Manufacturing and Technology Centre New 4,200m2 State of the Art New Facility Investment £4.5m Design considerations: Space: • Low carbon footprint • 2,000m2 Manufacturing and Warehousing • Staff well-being • 1,100m2 Office & Education Centre • Optimising efficiency • 600m2 Research & Development Fa
Slide 21: ESG - Environmental
ESG - Environmental Running Ahead of NHS net zero requirements for suppliers New Manufacturing and Technology Centre • Using renewable energy only to obtain ‘A’ rating • Solar Thermal systems / Natural Ventilation • Internal Green Space Carbon Emissions: Scope 1 and 2 measurement in place Car Fleet:
Slide 22: ESG – Social
ESG – Social Internal • Working week – up to 40% WFH / Compressed – 4 long days • “Everymind” App – mental health support and well-being • Wellness day – shutdown day for all staff • Improved benefits across the Group: • New parent leave provisions with prematurity benefits • Salary sacrifice – pens
Slide 23: Summary and Outlook
Summary and Outlook Strong Performance • Revenue £41.1m (FY2021: £37.0m) • Adjusted Operating Profit £4.3m (FY2021: £4.3m) • Adjusted EBITDA £6.4m (FY2021: £5.6m) • Cash at hand £9.3m (FY2021: £10.7m) after significant investment made during FY2022 SLE and Viomedex integration finalised, synergies n
Slide 24: Appendix
1 | Appendix INSPIRATION HEALTHCARE GROUP
Slide 25: Ventilator Competitors
Ventilator Competitors Neonatal ventilator market share1 • Currently Inspiration Healthcare Group plc’s SLE range ventilator holds ~11% vs our 'competitors' • Growth opportunities • Increasing export opportunities • Increasing brand awareness through existing export channels Sources (1) The US Strat
Slide 26: Market Opportunity – Temperature Management
Market Opportunity – Temperature Management Patient Temperature Management Market: US$2.6bn US$4. 7bn between 2019 and 2026** Our Patient LifeStart Temperature AlphaCore5* Management Products CosyTherm2 *Neonatal & Adult Applications Accessories* **Source: Grand View Research June 2019 Unique+ CFM (
Slide 27: Market Opportunity – Neonatal Respiratory Devices
Market Opportunity – Neonatal Respiratory Devices Neonatal Intensive Care Respiratory Devices Market: US$1.4bn US$2.1bn between 2019 and 2027* Inspire rPAP Our Neonatal Accessories (patented) Respiratory Products Viomedex Inspire nCPAP Breathing Circuits FirstBreath nCPAP (3 patents granted) SLE Ven
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