Navamedic Asa · OSL:NAVA
Navamedic Asa — Q1 2019 Earnings Presentation
33 slides from Navamedic Asa's earnings presentation, May 15, 2019
Slide 1: First quarter results 2019
Q1 2019 First quarter results 2019 Navamedic ASA Kathrine Gamborg Andreassen, CEO Toril Marie Ås, CFO
Slide 2: Navamedic – Q1 highlights
Navamedic – Q1 highlights Continued topline growth Continued growth in Medical nutrition and Obesity categories REVENUE GROSS MARGIN EBITDA New growth strategy process initiated by 45.5 MNOK 27.2% -2.0 MNOK the new Board of Directors and new CEO Up 6.6% (30.3% Q1 18) Improved from -5.0 MNOK Distribu
Slide 3: Highlights / Navamedic at a glance
Highlights Navamedic at a glance Operational update Financials Sippi® Summary and outlook 3
Slide 4: Nordic pharma and Medtech company with high growth ambitions
Navamedic at a glance Nordic pharma and Medtech company with high growth ambitions Navamedic ASA provides a state-of-the-art market access platform for delivering healthcare products to patients, hospitals and pharmacies in the Nordics Navamedic is also commercializing Sippi®, our proprietary digita
Slide 5: Building a leading Nordic pharma company
Our strategy Building a leading Nordic pharma company Strengthen the core Untapped potential within existing products, categories and territories Ongoing negotiations for attractive new distribution agreements Launch of Navamedic proprietary products, with RX to OTC switch potentials Secure and incr
Slide 6: Operational update
Highlights Navamedic at a glance Operational update Financials Sippi® Summary and outlook 6
Slide 7: The preferred partner
The preferred partner Highly scalable pharma marketing and distribution platform and competence-driven value creation across categories • Market access platform • Economies of scale • Sales excellence and regulatory expertise • Navamedic’s team is geared for partnership across different stages of pr
Slide 8: Growth in all key categories
Products Growth in all key categories % of total revenue per category Q1 2019 CARDIOLOGY 17,8 % 38,9 % 10,2 % MEDICAL 9,7 % NUTRITION 23,3 % OBESITY Cardiology UROLOGY & WOMEN’S HEALTH Medical nutrition Obesity Urology & Women's Health Other OTHER Q1 2019 8
Slide 9: Medical nutrition
Category snapshot Medical nutrition Strategic approach: Q1 2019 REVENUES • Add value through services and knowledge • Long term relationship with 10.6 IEM Products for treatment of Inborn Errors of Metabolism (IEM), a • key customers Launch of new products MNOK lifelong, genetic disorder where from
Slide 10: Obesity
Category snapshot Obesity Strategic approach: • Increase awareness - Q1 2019 REVENUE Leverage on high media interest Mysimba 4.4 A prescription alternative for treating obesity that impacts appetite and cravings centers of the brain. • Focus on reimbursement and getting Mysimba into “standard of car
Slide 11: Financials
Highlights Navamedic at a glance Operational update Financials Sippi® Summary and outlook 11
Slide 12: Financials
Financials Extracts from consolidated income • Positive Q1 revenue (in NOK million) Q1 2019 Q1 2018 2018 development, supported by Operating revenues 45.5 42.6 184.0 new products • Gross profit decreased to Gross profit 12.4 12.9 61.4 27.2% (30.3%) resulting from Gross profit % 27.2 % 30.3 % 33.4 %
Slide 13: Segments
Financials Segments Pharma incl. Navamedic ASA Medtech • Pharma segment on track focusing on (in NOK million) Q1 2019 Q1 2018 2018 Q1 2019 Q1 2018 2018 profitable products and leveraging on the Operating revenues 45.4 42.6 183.9 0.0 0.0 0.1 growth platform • Underlying positive EBITDA in Pharma Gros
Slide 14: Balance sheet – Assets
Balance sheet Assets (in NOK million) 31.03.2019 31.03.2018 31.12.2018 Intangible assets 27.7 31.5 30.1 Goodwill 89.2 76.9 79.6 • Total assets increased by Deferred tax assets 10.0 8.9 9.9 MNOK 18.5 from the end of Tangible assets 2.0 0.6 0.1 2018 mainly due to MNOK Non-current assets 128.8 118.0 11
Slide 15: Balance sheet – Equity and liabilities
Balance sheet Equity and liabilities (in NOK million) 31.03.2019 31.03.2018 31.12.2018 Equity 101.3 80.9 99.3 Contingent consideration 12.7 27.3 12.2 Long term part of license liabilities 10.1 11.8 10.2 • Equity 43.4% • Issues of new shares Loans and borrowings 1.9 0.0 0.0 increased equity by 12.5 D
Slide 16: Cash flow
Financials Cash flow • Positive cash flow from (in NOK million) Q1 2019 Q1 2018 2018 operating activities primarily affected by increase in trade payables Net cash flow from operating activities 9.2 -27.6 -36.0 in Q1 2019 Net cash flow from investing activities -0.3 -0.3 -2.2 Net cash flow from fina
Slide 17: Sippi®
Highlights Navamedic at a glance Operational update Financials Sippi® Summary and outlook 17
Slide 18: SIPPI – SImplifies Patient care – Prevents Infections
SIPPI SImplifies Patient care – Prevents Infections ® Global potential for Innovative, patented Ongoing next generation technology commercialisation digital, wireless, urine addressing with long-term measurement and a global market need revenue potential infection prevention system 18 15.05.2019
Slide 19: Addressing two major problems
Sippi® Addressing two major problems Hospital acquired infections Stressed out personnel • 2.5 million Europeans die every • Improved working year from hospital acquired conditions key to bridge infections future needs for healthcare • Treatment of infections is a personnel major burden on hospital
Slide 20: Technology
Sippi® Technology Base unit SippLink Wireless data transfer PDMS Alert for biofilm = replace bag Disposable unit Biofilm prevention Q1 2019 20
Slide 21: One concept – multiple market opportunities
Sippi® One concept – multiple market opportunities Sippi® Sippbag® • Automated urine meter for • Urine bags in hospitals, ICUs, OR*s and wards care centres and for home • Launched at use selected hospitals • Launch or license ready in 2020 • Potential: 500k base units + 20 mill disposables/year • Po
Slide 22: Addressing a global market representing 250 MNOK in annual revenue potential
Sippi® Addressing a global market representing Snapshot of Sippi® roll-out 250 MNOK in annual revenue potential • Västra Götalands-regionen: New agreement. Potental of 100 Base units • Stockholms Läns Landsting: Starting Thorax 251 IVA in Q2. Potential of 120 Base units in the 1,114m region. 137 862
Slide 23: BoD proposes a demerger for Medtech division
Sippi® BoD proposes a demerger for Medtech division • Pharma and Medtech are distinctly different businesses with limited synergies • Medtech deserves a separate platform to secure focus, resources and speed in the commercialization phase • The timing for a demerger is good with the wireless Sippi®
Slide 24: Summary and outlook
Highlights Navamedic at a glance Operational update Financials Sippi® Summary and outlook 24
Slide 25: Summary and outlook
Navamedic Q1 2019 Summary and outlook Pharma platform Medtech - Sippi® • Navamedic will exploit the existing platform to • Based on a high-retention business strengthen the core. Rising demand for model, Navamedic is approaching main products, combined with a unique and attractive markets with a uni
Slide 26: Appendices
Appendices @Navamedic
Slide 27: Condensed consolidated statement of comprehensive income
Appendix Condensed consolidated statement of comprehensive income (in NOK '1000) Q1 2019 Q1 2018 2018 Operating revenues 45 459 42 638 184 022 Cost of materials -33 073 -29 713 -122 636 Gross profit 12 386 12 925 61 385 Gross profit % 27.2 % 30.3 % 33.4 % Payroll expense -8 420 -8 123 -30 332 Other
Slide 28: Condensed consolidated financial position - Assets
Appendix Condensed consolidated financial position - Assets (in NOK '1000) 31.03.2019 31.03.2018 31.12.2018 Intangible assets 27 675 31 544 30 060 Goodwill 89 154 76 918 79 550 Deferred tax assets 9 958 8 928 9 944 Tangible assets 2 033 572 109 Non-current assets 128 819 117 963 119 664 Inventories
Slide 29: Condensed consolidated financial position – Equity and liabilities
Appendix Condensed consolidated financial position – Equity and liabilities (in NOK '1000) 31.03.2019 31.03.2018 31.12.2018 Equity 101 316 80 866 99 322 Total equity 101 316 80 866 99 322 Liaibilities Contingent consideration 12 734 27 260 12 177 Long term part of license liabilities 10 075 11 789 1
Slide 30: Condensed consolidated statement of cash flows
Appendix Condensed consolidated statement of cash flows (in NOK '1000) Q1 2019 Q1 2018 2018 Profit/loss(-) before tax -5 106 -7 627 7 011 Taxes paid -285 -3 577 -5 335 Depreciation, amortization and write off 1 921 1 598 6 212 Interest and contingent consideration without cash effect 155 820 -13 483
Slide 31: Sound foundation for growth
Financials Sound foundation for growth Revenues Gross profit (MNOK) (MNOK) 17.2 15.8 15.4 51.8 51.8 45.2 44.3 45.5 12.9 12.4 42.6 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Revenues increased by 6.6% or MNOK 2.8 Gross profit decline of 0.5 MNOK (Q1 19 vs (Q1 19 vs Q1 18) Q1 18) foll
Slide 32: Definitions of Alternative Performance Measures (APM)
Appendix Definitions of Alternative Performance Measures (APM) Navamedic’s financial information is prepared in accordance with international financial reporting standards as adopted by the EU (IFRS). In addition, the company presents alternative performance measures (APMs). The APMs are regularly r
Slide 33: Copyright and disclaimer
Appendix Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Navamedic and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any