Microport Scientific Corp. · HKEX:853
Microport Scientific — FY2014 Earnings Presentation
29 slides from Microport Scientific's earnings presentation, April 2015
Slide 1: MicroPort 2015 Earning Release
MicroPort 2015 Earning Release Stock Code: 00853(HK) April 2015
Slide 2: 2014 Business Highlights
2014 Business Highlights Orthopedics Closing of the Acquisition of Wright Medical’s OrthoRecon Business. 100 Day Plan Executed without significant issues. China OrthoRecon business outperformed. Interventional Cardiology Firehawk approved by CFDA in China and commercially launched in April 2014. Fir
Slide 3: Broaden Product Offering - Diversification
Broaden Product Offering - Diversification Diversification 2013 Profitability 2014 Orthopedics Cardiovascular Others 151.7M 355.3M Others Orthopedics Cardiovascular Significantly diversified our current product offering and revenue sources with the result of revenue dramatically increased by 134% in
Slide 4: Expand Geographical Coverage - Globalization
Expand Geographical Coverage - Globalization US$ million 64 145 143 - Canada Europe U.K. 90 Netherlands - The P.R.C. Belgium Germany US France North America Italy Japan China 46 Costa Rica 4 2 Brazil - Asia Others 10 2 South America Total Revenue 2013 152m 2014 355m Greatly expanded our geographic c
Slide 5: Financial Summary 2014
Financial Summary 2014 Highlights Key Financial Summary Revenue: 355.3m, Y/Y ↑134% • Non-Ortho business flat USD: million 2014 2013 Flux Revenue 355.3 151.7 134% • Newly acquired OrthoRecon business contribute 209m Cost (112.0) (28.8) 289% (closing date of Jan 10, 2014) Gross Profit 243.3 122.9 98%
Slide 6: Business Update by Segment
Business Update by Segment 1 Orthopedics Business 2 Vascular Business 3 Electrophysiology and CRM Business 4 Surgical Devices 5
Slide 7: Orthopedics Business
1 Orthopedics Business Stabilizing the MPO Business in 2014 Overview (USD million) The Business owns the brands PATH®, SUPERPATH™, PROFEMUR®, ADVANCE®, EVOLUTION®, etc. US sales: sales force of ~ 150 people 306 300 International sales: combination of ~ 100 direct sales force and distributors i
Slide 8: 3 Year Strategic Objectives
3 Year Strategic Objectives 2016: Achieve self-funding operations Return to profitability, drive cash-flow to fund capital Organic needs Business Performance Targeted M&A: Orthopedic Goals adjacencies 2015: US Return to Growth, China & Latin America cont. Complete transition and infrastructure inves
Slide 9: 2014 Global Orthopedics Strategic Objectives by Region
2014 Global Orthopedics Strategic Objectives by Region 2014 = Global Revenue Drivers: 40% 30% Sales 20% Stabilized Stabilized North America Japan Europe Global Infrastructure Investments: China Latin America 8
Slide 10: Orthopedic Business - China Market Coverage
Orthopedic Business - China Market Coverage Hei Long-jiang Xin Ji Jiang Lin Gan Su Inner Liao Ning Beijing Mongolia Tian Current MPO China Business: Ning He BeiJing Qing Shan Xi • 26 cities, regions, and Xia Hai Shan Dong provinces tenders Xi Zang Shang xi He Nan Jiang • Operate in 16 Provinces Su •
Slide 11: Orthopedics Business - Strategy & Global Leverage
1 Orthopedics Business - Strategy & Global Leverage Strategic Foundation FAST RECOVERY HIP PATIENT PREFERRED KNEE SOLUTIONS SOLUTIONS “Out Patient THR” “Stability in Motion” 10
Slide 12: Global Leverages
Global Leverages Leveraging our clinical history and proprietary technology. The SuperPath® hip technique is a tissue-sparing approach where no muscles or tendons are cut. The SuperPath ® approach requires none of the typical postoperative hip restrictions. Leveraging China Facility to establish
Slide 13: Orthopedics Business – Marketing/Branding
Orthopedics Business – Marketing/Branding AAOS Annual Meeting - New Orleans The 15th Annual Meeting of Asia-Pacific Arthroplasty Society - Chengdu Current Concepts in Joint Replacement 2014 Spring Course – Las Vegas Annual Meeting of Japanese Orthopedic Association - Japan EFORT Congress - UK Americ
Slide 14: “Integrity In Motion” Educational Program
“Integrity In Motion” Educational Program Surgery Observation Centers Joint Replacement Master Classes Hands-on Wet Labs International Fellowships 13
Slide 15: Vascular Business - Cardiovascular Stent Graft
2 Vascular Business - Cardiovascular Stent Graft China DES Market Share 2014 Firehawk Update • Leading Position in China DES Market CFDA approved in Jan, 2014 CE Mark obtained in Jan, 2015 Premium MNC Price Achieved Third generation DES The World's First and Only target-eluting stent The large
Slide 16: Cardio Vascular Business - Firehawk
Cardio Vascular Business - Firehawk The World's First and Only Target Eluting Stent (TES) With the lowest drug dosage Targeted unidirectional eluting technology with fully biodegradable polymers Unique position identification/ recognition & state-of-the art 3D printing technologies The large
Slide 17: Interventional Cardiology Product Pipeline
Interventional Cardiology Product Pipeline Ryfle TM PTCA Balloon Catheter CE Foxtrot TM Pro CE Foxtrot TM Firehawk TM NC (Extreme CFDA sizes) CFDA Firehawk TM Ryfle TM TAVR Firefalcon TM PTCA Balloon Bioresorbabl CE Catheter CFDA/CE e CFDA/CE CFDA 2015 2016 2017 2018 2019 16
Slide 18: Vascular Business - Endovascular Stent Graft
2 Vascular Business - Endovascular Stent Graft TAA/AAA 2014 Market Share Products Profile Hercules T Hercules B *Source from GBI Research’s Proprietary Database (Accessed July 12,2012) Castor Solid Growth of Endovascular in Revenue USD: million Branched Aortic Stent-Graft and Delivery System 14.1
Slide 19: Vascular Business - Neurovascular
2 Vascular Business - Neurovascular Dramatic Growth of Neurovascular in Revenue Products Already Received SFDA Approval USD: million WILLIS - hemorrhagic 6.3 Intracranial Stent Graft System 4.6 Received CFDA approval in 2013 3.4 Lunched the business in 2.8 2014 2.2 The Only product in 1.4 Ch
Slide 20: Electrophysiology Business
3 Electrophysiology Business Dramatic Growth of Electrophysiology in Revenue Products with CE Certifications USD: million FireMagic EasyFinder EasyLoop 4.8 3.0 Radiofrequency Fixed or adjustable Circumferential Ablation Catheter Curved Mapping Pulmonary Vein 1.6 Catheter Mapping Catheter 0.9 F
Slide 21: MicroPort Sorin CRM (MSC)
3 MicroPort Sorin CRM (MSC) Imported Sorin Products on the China Market Smallest Physiologic Dual Sensor Made 1st sell in Sep, 2014 Our Vision Innovated in China, for China Helping patients live better and longer through our quality pacing products and IPGs services innovated and made in
Slide 22: Surgical Device Business
4 Surgical Device Business Key Factors Products in Pipeline • Artificial Blood Vessel • Products launched in China and overseas market • 43 patents in China • Products currently used in more than 180 hospitals • Hernia Patch Products Launched • Oxygenator • Blood Storage Filter • Disposable Cardioto
Slide 23: Key R&D Pipeline
Key R&D Pipeline Cardiac Intervention Surgical Robert Successfully completed the first human implantation on Sep 2014. In the stage of clinical Set up the project on May, 2014 The core team has been set up, including 10 R&D engineers Advantages In the stage of animal experiment - Be impl
Slide 24: Social Responsibility
Social Responsibility Education to Advance Expertise and Care MP Foundation in University of Shanghai for Science and Technology Medical Device Library and Information Center in USST Care Goes Beyond the Office Shangdong MP Hope Primary School MicroPort Hope Primary School Zunyi MP Hope Primary Scho
Slide 25: Appendix I - Consolidated Income Statement
Appendix I - Consolidated Income Statement (USD '000) 2014 2013 Revenue 355,284 151,655 Cost of sales (111,999) (28,777) Gross profit 243,285 122,878 Other revenue & net income 12,025 7,320 Research and development costs (54,564) (29,195) Distribution costs (133,629) (25,630) Adminnistrative expense
Slide 26: Appendix II - Consolidated Balance Sheet
Appendix II - Consolidated Balance Sheet USD'000 31 Dec 2014 31 Dec 2013 Fixed assets 286,666 154,897 Intangible assets 60,506 34,280 Prepayments for fix assets 1,678 1,092 Goodwill 56,529 25,577 Deferred tax assets 4,124 3,197 Interest in a joint venture 3,866 - Deposits with banks 11,440 - Other n
Slide 27: Appendix III - Condensed Consolidated Cash Flow Statement - Adjusted
Appendix III - Condensed Consolidated Cash Flow Statement - Adjusted (USD '000) 2014 2013 Cash generate from operations 26,242 66,487 Income tax paid (8,436) (8,734) Net cash generated from operating activities 17,806 57,753 Net cash (used in)/from investing activities* (338,155) (43,575) Net cash g
Slide 28: Disclaimer
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 the basis of,
Slide 29: Thank You
Thank You The Patient Always Comes First