Covalon Technologies Ltd. · TSXV:COV
Covalon Technologies — Shareholder Meeting (June 2021)
24 slides from Covalon Technologies's shareholder meeting presentation, Jun 30, 2021
Slide 1: 2020 Annual Shareholders Meeting
2020 Annual Shareholders Meeting June 30th 2021 Brian Pedlar, CEO Danny Brannagan, CFO TSX-V: COV OTCQX: CVALF www.covalon.com | 1-877-711-6055 Millions of Covalon products are used every month by clinicians in hospitals around the world to help protect patients from infection.
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information Certain statements included in this Memorandum may be considered forward-looking statements. These forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “estimate”, “exp
Slide 3: Covalon at a Glance
Covalon at a Glance Covalon researches, develops, manufactures and markets patented infection prevention medical products and services Covalon is a proven innovator of patented technologies that drive high-margin, transformative products and medical devices that disrupt existing and under-met ma
Slide 4: Current Investment Opportunity
Current Investment Opportunity TSX-V: COV Operations OTCQX: CVALF — Covalon has overcome challenges in its Middle East business, COVID recovery is underway, and the Company is once1again positioned for growth. — Covalon has been profitable year to date and seeing signs of growth in its key United St
Slide 5: Strong Track-Record of Revenue Growth
Strong Track-Record of Revenue Growth Historical Revenue Profile (C$MM) 28% 54% $34.0 5-year CAGR1 LTM Gross Margin $27.3 $26.7 $25.8 $25.3 $9.1 $7.6 $6.7 $3.8 $4.1 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 LTM Development Phase Early Commercialization Phase Commentary • Revenue
Slide 6: Expanded Focus on the Lucrative U.S. Health Care Market
Expanded Focus on the Lucrative U.S. Health Care Market FY2018 Revenue FY2019 Revenue FY2020 Revenue 3% 3% 9% 9% 26% 49% 48% 71% 82% US Revenue Middle East Other Commentary • Covalon has achieved significant diversification away from the Middle East revenue base over the past two years • >80% of rev
Slide 7: Operating Expenses and Debt
Operating Expenses and Debt Operating Expenses (C$MM) Debt as of March 31, 2021 35.0 30.0 47% HSBC lines: Reduction 25.0 Acquisition $3.7M Operating $4.0M 20.0 15.0 Acquisition note: 10.0 Note payable $10.1M 5.0 Cash & Cash Equivalents: 0.0 F2019 F2020 LTM LTM Adjusted Cash $3.8M Commentary • Operat
Slide 8: Covalon's Platform Technologies
Covalon’s Platform Technologies Lucrative and Proven Infection Management Technology Platforms Platform Description Flagship Product Brands TAM(1) Technology Patented platform used to manufacture a family of products that treat Biological Collagen Matrix chronic and infected wounds (e.g. diabetic fo
Slide 9: Platform Product Advantages vs. Competitors
Platform Product Advantages vs. Competitors Covalon’s products have demonstrated competitive advantages through clinical studies and improved patient outcomes according to end-user customers Covalon Products Primary Competitors Competitor Products Covalon Advantage Patented manufacturing process t
Slide 10: Our Collagen Platform Products Work
Our Collagen Platform Products Work Real People, Life Changing Stories Diabetic Foot Ulcer – Scheduled for Amputation After 6 Months - Healed 10
Slide 11: Our Collagen Platform Competes With Market Leaders In the United States
Our Collagen Platform Competes With Market Leaders In the United States Clear Path for Substantial Revenue Growth Collagen Dressing Market in United States • We compete in the United States with 3M and Medline by leveraging the reach of our major distributors #1 Market Position #2 Market Position •
Slide 12: Our Collagen Platform has a Clear Path to Substantial Revenue Growth
Our Collagen Platform has a Clear Path to Substantial Revenue Growth • Expand distribution network in the U.S. Existing Products • Addition of direct sales personnel exclusively focused on Collagen to further support our Sales in the U.S. distribution partners in the U.S. • Additional clinical studi
Slide 13: The world's only dual-antimicrobial silicone IV dressing
The world’s only dual- antimicrobial silicone IV dressing 13 13 13
Slide 14: Our Patented Antimicrobial Silicone Products are Better and Safer for Patients
Our Patented Antimicrobial Silicone Products are Better and Safer for Patients Clear Path for Substantial Revenue Growth Film Dressing Market in United States • We compete in the United States with 3M and Medline by selling directly to our AquaGuard hospitals with our U.S. sales team IV Dressing Mar
Slide 15: Both Clinicians and Patients Love our Antimicrobial Silicone Products
Both Clinicians and Patients Love our Antimicrobial Silicone Products SurgiClear on Social Media – Customer Posts
Slide 16: AquaGuard Market Upside is Large
AquaGuard Market Upside is Large Clear Path for Substantial Revenue Growth • AquaGuard has maintained ~80% market Moisture Barrier Market in United States share in the United States since launch and throughout COVID-19, becoming THE category-defining Brand #1 Market Position Hospitals Penetration •
Slide 17: AquaGuard Market Upside is Large
AquaGuard Market Upside is Large 1 2 3 Penetration of the Extended Care and Massive Largely Un-penetrated Market International Distribution Home Care Markets Massive upside opportunity to basically follow the Covalon is only getting started on international < 35% Total hospital market currently pene
Slide 18: Medical Coating Platform Creates Value for Customer Medical Devices
Medical Coating Platform Creates Value for Customer Medical Devices Clear Value Propositions For Upgrading Medical Devices 1 Low Particulate Generation 6 FDA Cleared Products (e.g. SilverTouch) 2 Durable Lubricity 7 A Quicker Path to Market 3 Functionalization/API Loading 8 In-house Manufacturing Fa
Slide 19: Medical Device Coating Platform Product has Clear Revenue Growth Potential
Medical Device Coating Platform Product has Clear Revenue Growth Potential • Core capabilities and value-add recognized and paid for by end clients; mission critical capabilities sought out by world’s largest high profile medical companies • Potential for capturing an outsized market share of the A
Slide 20: Covalon's Market Leading R&D Capabilities
Covalon’s Market Leading R&D Capabilities Leading R&D and Regulatory Expertise Sought by Global Healthcare Companies Development Partnership Model Selected Partners & Distributors — Covalon works with leading medical device companies to bring new products to market, or to improve/enhance existing pr
Slide 21: Experienced Management Team
Experienced Management Team Corporate World-Wide United States Brian Pedlar Hector Padilla Chief Executive Officer Vice President, Strategic Gerry Arambula Markets President, Covalon USA B.Sc., CPA, CA B.Sc. B.A., MBA Alyssa Hrycyshyn Vice President, Marketing Europe Danny Brannagan Chief Financial
Slide 22: Board of Directors
Board of Directors Abe Schwartz Dr. Myrna Francis Amir Boloor Joseph Cordiano Ronald E. Smith Martin Goldfarb Brian Pedlar 22
Slide 23: Covalon Highlights
Covalon Highlights 1 World-class development lab with game-changing IP and products 2 Recognized by medical companies as major player in infection control 3 De-Risked revenue with increased focus into the United States 4 Massive upside with new products and expanded sales reach in United States 350
Slide 24: Thank You!
Thank You! Millions of Covalon products are used every month by clinicians in hospitals around the world to help protect patients from infection.
Covalon Technologies — Shareholder Meeting (June 2021) on 6ix