Slide 1: Final Results: Twelve months ended 31st December 2013
Title subtitle FINAL RESULTS Twelve months ended 31st December 2013 Julian Baines, Group Chief Executive Officer Paul Foulger, Finance Director 26th February 2014
Slide 2: EKF Diagnostics Holdings plc
EKF Diagnostics Holdings plc A global point-of-care, central laboratory and molecular diagnostics business. 2
Slide 3: Agenda
AGENDA • 2013 highlights • Operational overview • Point-of-care • Central laboratory • Molecular diagnostics • Kidney biomarkers • 2013 financial overview • 2014 outlook • Appendix 3
Slide 4: 2013 Highlights: Incremental organic growth
2013 HIGHLIGHTS Incremental organic growth Strong revenue growth (+22%) 2013 v 2012: • Quo-Lab and Quo-Test +75% • Hemo Control / HemoPoint +42% • Biosen C-Line and S-Line +20% • Beta-Hydroxybutyrate reagent +8% Good progress against key operational and commercial success targets: • Build of Quo-Lab
Slide 5: 2013 Highlights: Growth in revenues and AEBITDA
2013 HIGHLIGHTS Growth in revenues and AEBITDA • Group full year revenues +22% to £31.80m (2012: £26.06m) 35 Millions 2012 • Adj. EBITDA +51% to £4.82m (2012: £3.20m) 2013 30 • Cash generated from operating activities £3.17m (2012: £2.52m) • Cash £2.55m (2012: £4.33m) 25 • Deferred consideration pay
Slide 6: 2013 Highlights: Six month comparison
2013 HIGHLIGHTS Six month comparison 18 H2 2012 Millions H2 2013 H1 2013 H2 2012 16 H1 2013 Revenue £16.92m £14.89m £13.41m H2 2013 14 +14% +11% +6% 12 Adj. EBITDA £2.70m £2.12m £1.80m 10 +27% +18% +29% 8 Av. Monthly £2.82m £2.48m £2.24m 6 revenue 4 2 0 Revenue AEBITDA 6
Slide 7: Strategic Execution
STRATEGIC EXECUTION EKF Diagnostics Holdings plc • FY revenues: £21.58m • FY revenues: £9.17m • Next generation • +25% v. 2012 • +19% v. 2012 healthcare opportunity in • Rapidly growing market • Mature market Companion Diagnostics with differentiated • High margin niche • Opportunities across a prod
Slide 8: Point-of-care: Global roll-out of Quo-Lab
POINT-OF-CARE Global roll-out of Quo-Lab Quo-Lab A1c • Unit sales of analysers: 1,426 v 254 2012 • 4% penetration into NycoCard market (c.42,000*) • Completion of new production line in Barleben Q1 2014 Quo-Test A1c • Pull-through up 35% v 2012 from installed base c. 2,000 units Units sold 2013 Unit
Slide 9: Point-of-care: 2013 delivery
POINT-OF-CARE 2013 delivery Hemo Control / HemoPoint H2 • Growing presence in USA through Alere contract • Increased market share from 9% to 14% in 2013 • Incremental growth of microcuvettes: • Correlation with the increase in the base of placed analysers • Consumable sales are the key contributor t
Slide 10: Point-of-care: Significant growth from an established product
POINT-OF-CARE Significant growth from an established product Biosen C-Line and S-Line • Analysers sold +31% • Significant growth in Russia, Middle East and China • Rationalised range from six to three models • Biosen used as the gold standard for blood glucose monitor performance in China Unit sales
Slide 11: Central Laboratory: Significant growth in mature market
CENTRAL LABORATORY Significant growth in mature market Clinical chemistry and contract fermentation • Total central laboratory sales 2013 v 2012 sales +19% • Sustained 2012 performance from b-HB LiquiColor despite competitor returning to ketone testing market • 858 US hospitals using b-HB by the end
Slide 12: Molecular Diagnostics: Oncology biomarkers
MOLECULAR DIAGNOSTICS Oncology biomarkers • 360 Genomics acquired H1 2013 • Seven products launched into RUO market ahead of expectations (inc. BRAF, KRAS, EGFR, NRAS, JAK2) • Evaluated at Institute of Life Sciences, Swansea University • Initial whole blood results were positive • Further studies un
Slide 13: Kidney Biomarkers
KIDNEY BIOMARKERS sTNFR1 and 2 • Growing interest in applications of sTNFR1 & 2 • Third party studies from France and Finland accepted for publication Q1 2014 • Qualified interest from pharma businesses for use as a Companion Diagnostics tool. Testing samples from pharma companies scheduled for Q1 2
Slide 14: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT 2013 £’000 2012 £’000 +/- £’000 Revenue 31,804 26,060 5,744 Gross profit 16,345 14,313 2,032 GP % 51.4% 54.9% (3.5%) Net admin. costs (12,016) (11,653) (363) Other income 495 542 (47) AEBITDA 4,824 3,202 1,622 Share based payments (709) (537) (172) Exceptional items 1,8
Slide 15: Balance Sheet: Assets
BALANCE SHEET: ASSETS Selected items 2013 £’000 2012 £’000 +/- £’000 Non-current assets Property, plant, equipment 9,785 10,014 (229 ) Intangible assets 34,725 31,250 3,475 Investments 250 250 0 Deferred tax assets 903 973 (70) Total non-current assets 45,663 42,487 3,176 Current assets Inventories
Slide 16: Balance Sheet: Equity & Liabilities
BALANCE SHEET: EQUITY & LIABILITIES Selected items 2013 £’000 2012 £’000 +/- £’000 Equity attributable Total equity 40,992 39,427 1,565 Non-current liabilities Borrowings 2,108 2,031 77 Deferred considerations 5,471 3,114 2,357 Deferred tax liabilities 3,442 3,793 (351) Retirement benefit obligation
Slide 17: Cashflow
CASHFLOW 2013 £’000 2012 £’000 +/- £’000 From operating activities 2,007 1,599 408 From investing activities (2,216) (1,602) (614) From financing activities (1,560) (885) (675) Net decrease in cash (1,769) (888) (881) Cash at end of year 2,551 4,331 (1,780) 17
Slide 18: 2014: Outlook
2014: OUTLOOK Continued growth Point-of-care • Sales strategy focuses on developing EKF’s presence in existing markets: • Open up markets with small or no sales e.g. Biosen in Latin America, Quo-Test in Russia • Focus on volume markets which will drive production efficiencies e.g. Quo-Lab in India •
Slide 19: Other Growth Opportunities
OTHER GROWTH OPPORTUNITIES 2014 and beyond SensPoint lactate analyser targeted at applications within the obstetric market Extension of existing product portfolio through the addition of new features e.g. network connectivity on Hemo Control Augment kidney biomarker portfolio with new products. Rena
Slide 20: Thank You
SCIENCE MADE SIMPLE DIAGNOSTICS THANK YOU
Slide 21: Appendix: Product portfolio
APPENDIX Product portfolio 21 21
Slide 22: Quo-Lab
QUO-LAB Glycated haemoglobin (HbA1c) • 4 minutes to result • 4 step procedure with instructions on-screen • Boronate Affinity methodology • Less than 3% CV at 7% A1c • Measuring range: 4-15% A1c • Unaffected by Hb variants • Traceable to IFCC reference method • Dual reporting in IFCC & DCCT values •
Slide 23: Quo-Test
QUO-TEST Glycated haemoglobin (HbA1c) • 4 minutes to result • Minimal training time and no maintenance • Boronate Affinity methodology • Less than 3% CV at 7% A1c • Measuring range: 4-15% A1c • Unaffected by Hb variants • Traceable to IFCC reference method • Dual reporting in IFCC & DCCT values • St
Slide 24: Hemo Control
HEMO CONTROL Haemoglobin • Results in 25 seconds • Simple to use, CLIA waived • Backlit touch screen • 8 μl capillary or venous blood • Less than 2% CV • Calibrated to NCCLS reference • Stores up to 4,000 results • Lightweight and portable • Internal lithium battery • Connectable to hospital LIS 24
Slide 25: Biosen C-Line and S-Line
BIOSEN C-LINE and S-LINE Glucose and lactate • Rapid assay (30-40 seconds to result) • Up to 112 results per hour • 20 μl of capillary or venous blood • Less than 1.5% CV • Multi-lingual touch screen display • Stores up to 1,000 results • Connectable to hospital LIS • Connects to standard printer •
Slide 26: Lactate Scout+
LACTATE SCOUT+ • 10 seconds to result • 0.2 μl of capillary blood • < 3.4mmol/L: +/- 0.2mmol/L • Stores up to 250 results • 2 AA batteries provide 1,000 results • Pre-calibrated sensors • Operates in extreme temperatures • And up to 85% humidity • Integrated Bluetooth • Pocket-sized and just 80g 26
Slide 27: STAT-Site M
STAT-SITE M Haemoglobin • Hemoglobin analysis in seconds • Photometric, azide-methemoglobin method • User friendly features minimise training time • 1,000 tests using just 1 x 3V Li (CR 2032) type battery • Operating range: 16° - 35° C (61° - 95° F) • Humidity: 20% - 80% (non-condensing) • Automatic
Slide 28: Beta-Hydroxybutyrate
BETA-HYDROXYBUTYRATE Clinical chemistry • Beta-Hydroxybutyrate (b-HB) is an enzymatic assay used on clinical chemistry analysers • The test quantifiably detects the presence of the ketones in patients with suspected Diabetic Ketoacidosis (DKA) • b-HB is the primary ketone produced by the body during
Slide 29: Pointman BRAF, KRAS and EGFR
• Better identify patients diagnosed with metastatic melanoma Pointman BRAF who are suitable for treatment with Zelboraf • Help predict which patients diagnosed with colorectal cancer Pointman KRAS will not respond to novel therapies such as Erbitux and Vectibix Pointman • Efficiently identify which
Slide 30: The problem: the extraction step bottleneck; the solution: Xtract
The problem: The bottleneck in any DNA/RNA lab analysis is the extraction step Analysis needs a high quality sample The solution: Xtract Fewer steps than existing technology Improves the integrity of the sample Allows for automation and higher throughput Applicable to multiple market sectors inc. ph
Slide 31: Science Made Simple
SCIENCE MADE SIMPLE DIAGNOSTICS