Medartis Holding Ag · SIX:MED

Medartis — FY2021 Earnings Presentation

38 slides from Medartis's earnings presentation, Mar 7, 2022

Slide 1: 2021 Full-year Results
2021 | Full-year Results Presentation for journalists, analysts and investors Basel, 7 March 2022
Slide 2: Disclaimer
Disclaimer This presentation is not an offer to sell or a solicitation of offers to purchase or subscribe for shares of Medartis Holding AG, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Thi
Slide 3: Agenda
Agenda Agenda Full-year highlights Christoph Brönnimann, CEO Financial & business review Dirk Kirsten, CFO Strategic Update & key priorities 2022 Christoph Brönnimann, CEO Transaction details Dirk Kirsten, CFO Outlook 2022 Christoph Brönnimann, CEO Q&A ® Medartis All rights reserved ∣ 3
Slide 4: Full-year highlights
Full-year highlights Christoph Brönnimann, CEO
Slide 5: Full-year highlights
Full-year highlights TOTAL SALES REVENUE GROWTH CHF 159.9 million 1 +24.8% CER2 vs. PY • H1 growth momentum was maintained • >20% growth in all regions • Hospital surgical capacity at ~90%-level • EMEA contributes almost half of the total growth; LATAM fastest growing territory (+47% vs. PY) EBITDA
Slide 6: Growth momentum maintained in H2 despite 15% higher comparison base
Growth momentum maintained in H2 despite 15% higher comparison base Net sales in CHF million Year-on-year growth at CER 2019 and 2020 restated 159.9 132.8 29,6% 127.6 84.4 H2 67.0 20,8% 69.2 +15,0% 8,6% H1 75.5 65.8 58.4 Covid-19 2019 2020 2021 -6,4% 2020 H1 2020 H2 2021 H1 2021 H2 ® Medartis All ri
Slide 7: Full-year performance driven by a strong all-round performance
Full-year performance driven by a strong all-round performance • Strong operational results across all regions and business segments • In the US we strengthened our sales force and invested into T&E • KeriMedical portfolio bolstered our important hand & wrist business in Europe • We have also starte
Slide 8: Nextremity acquisition is a catalyst for our US business
Nextremity acquisition is a catalyst for our US business It provides access to … • a highly dedicated and experienced R&D team • strong relationships to US design surgeons and industry thought leaders • a complementary product pipeline • IP portfolio (proven track record with over 120 patents) • pro
Slide 9: Expansion of the global Medartis team
Expansion of the global Medartis team Global Medartis workforce at year-end With the acquisition of Nextremity Solutions, Headcount in Switzerland 284 87 additional employees will join the Medartis team 684 636 609 561 475 2017 2018 2019 2020 2021 ® Medartis All rights reserved ∣ 9
Slide 10: Financial & Business Review
Financial & Business Review Dirk Kirsten, CFO
Slide 11: All regions grew >20%
All regions grew >20% Net sales in million CHF +25.3% +24.8% 4.4 159.9 5.7 6.9 14.8 127.6 0.5 128.1 22% 29% 22% 47% CER growth vs. PY FY 2020 as FX FY 2020 EMEA U.S. APAC LATAM FY 2021 as reported @ CER reported ® Medartis All rights reserved ∣ 11
Slide 12: Regional performance: EMEA & US
Regional performance: EMEA & US CHF million CER growth Highlights 52% • Strong performance from Germany & Austria additionally driven by KeriMedical rollout 83.4m • France & UK: strong growth after the summer when the pandemic eased again • Successful launch of newly founded Spanish subsidiary 21.5%
Slide 13: Regional performance: APAC & LATAM
Regional performance: APAC & LATAM CHF million CER growth Highlights 20% • Australia/NZ: Despite strong impact from pandemic in H2, business reached full-year targets thanks to strong H1 performance 32.0m • Japan: combined growth of direct and indirect business of >35%. Successful implementation of
Slide 14: Strong segment growth reflects portfolio strategy focus
Strong segment growth reflects portfolio strategy focus CHF million CER growth Highlights 70% 112.0m • Strong growth from elbow & shoulders implants, followed by hand & wrist implants • Successful launch of KeriMedical 22.0% • Strong growth from cannulated compression screws (CCS) Upper Extremities
Slide 15: Gross profit margin increased by 0.4%-points
Gross profit margin increased by 0.4%-points in % of net sales +0,4 PP 0,1 83,9 0,8 83,8 0,1 0,6 83,4 Positive country mix More products with (strong growth from lower product Better capacity countries with higher margins (e.g. lower utilization and ASPs (e.g. US, Australia) extremities and 3rd cost
Slide 16: Operational improvements and cost discipline on OPEX level
Operational improvements and cost discipline on OPEX level in absolute CHF and % of sales 77.0% 80.7% 81.0% 16.2% 25.9  Improved “OPEX-to sales” ratio due 17.7% 23.5 21.8 to higher top line and efficient cost 17.0% 12.5% 20.0 management 11.0% 14.5 12.7% 16.2  Increasing customer activity level Inc
Slide 17: EBITDA margin improved to 17.2% (+2.3PP)
EBITDA margin improved to 17.2% (+2.3PP) in % of net sales +2.3 PP +1.7 PP 3.5 -2.2 0.6 17.2 15.8 -0.9 0.4 14.9 • Continued investments into sets & instruments • Step-up in R&D Volume leverage investments combined with cost discipline Reported EBITDA IFRS restatement Restated EBITDA Gross margin OPE
Slide 18: Net margin rose to 7 million CHF (basic EPS 0.58)
Net margin rose to 7 million CHF (basic EPS 0.58) in CHF million 3.6 -3.7 8.4 -0.5 6.9 • Higher taxable income Launch of FX de-risking • European hub program implementation (0.7%) 4.3% -0.9 Net profit FY 2020 EBITDA Increase in D&A Improved Higher tax income Net profit FY 2021 improvement financial
Slide 19: Solid cash position (28% of balance sheet total)
Solid cash position (28% of balance sheet total) in CHF million 21.0 -15.9 -4.8 82.7 -0.4 82.6 • Higher sales • Set investments IFRS 16 repayment • Improved profitability • R&D lease liabilities and net working capitalization capital Cash position Operating Cashflow Investing activities Financing ac
Slide 20: Strategic Update & key priorities 2022
Strategic Update & key priorities 2022 Christoph Brönnimann, CEO
Slide 21: Our strategy remains unchanged – Key priorities 2022
Our strategy remains unchanged – Key priorities 2022 Favorable demographics Take US business Enhance sales focus Become innovation leader in 1 to the next level key indications Accelerate and broaden STRATEGY 2 innovation Addressing Targeted regional market investments in key growth Evolving the 3 n
Slide 22: Strengthening of commercial organization with own sales force and distributors
Strengthening of commercial organization with own sales force and independent distributors Sales network • H2: initiated significant sales force expansion • Support strong growth momentum & launch of combined product Direct and indirect sales representatives pipeline with the acquisition of NSI Trai
Slide 23: NSI: Further acceleration of US growth
NSI: Further acceleration of US growth Strengthens our US business Experienced team with strong relationships to US KOL’s & design surgeons; strong culture fit Complimentary key technologies Existing product pipeline is highly complementary to Medartis portfolio and includes key technologies to expa
Slide 24: Two complementary businesses
Two complementary businesses Scope & Reach Global presence in more than 50 countries Dedicated development and commercialization with direct presence in 14 countries organization with a focus on the extremity musculoskeletal space; no direct distribution DNA • Swiss manufacturing reputation for • Pr
Slide 25: Accelerate and broaden innovation pipeline
Accelerate and broaden innovation pipeline Together with NSI, we are aiming for a leading 2021 position in the most important extremity indications 5 major launches in 2021, increased Orthognathics incl. CMX Elbow incl. arthoplasty market share with new products Kicked off 9 new product Hand develop
Slide 26: NSI perfectly complements Medartis pipeline
NSI perfectly complements Medartis pipeline 2022 2023 2024 Fill minor portfolio gaps and continuously Hand & improve & refresh current products. Hand & Wrist Differentiated solutions to expand Wrist indications to osteoarthritis & deformities Elbow/ Fill some gaps and extend the depth of Hand & Wris
Slide 27: The US market opportunity
The US market opportunity Worldwide market segment worth USD 11 bn USD1 Breakdown of the USD 2 billion US foot and ankle market2 Ankle osteoarthritis Flat foot or PCFD Hammertoe 50-60% Others in the US 6.2 3.7 Hallux valgus / Bunions 1.5 Fracture fixation Upper extremities Lower extremities Cranio-M
Slide 29: Transaction structuring and financing
Transaction structuring and financing • Total purchase price consideration of up to USD 70 million • Thereof an up-front payment of USD 40 million and earn-out payments of up to USD 30m in Purchase tranches until 2025 consideration • Earn-out payments are dependent on the fulfilment of certain perfo
Slide 31: Full-year guidance 2022
Full-year guidance 2022 (barring any unforeseen circumstances) • Although the timing of a full recovery from the pandemic is still uncertain in some geographies, Medartis expects the business environment to continue to improve and most economies to return to more normal business conditions in the co
Slide 32: medartis® Precision in Fixation
medartis® PRECISION IN FIXATION
Slide 34: Upcoming investor events
Upcoming investor events Date Event Broker Destination 07 March 2021 full-year results publication 08 March Roadshow Credit-Suisse Zurich 09 March Virtual roadshow Credit-Suisse US 09 March Virtual roadshow Bryan Garnier UK, France, Germany 20 May Reverse roadshow Mirabaud Basel 15 March AGM invitat
Slide 35: Key financials FY 2019 – FY 2021
Key financials FY 2019 – FY 2021 Restated figures in CHF million 1 Free Cash flow = Operating Cashflow – Cashflow from investing activities ® Medartis All rights reserved │ 35
Slide 36: The combined Nextremity team and Medtech experience
The combined Nextremity team combines over 3 centuries of Medtech experience and will now partner with us in growing our US business • Fully aligned corporate values • Both companies are: − innovation- and precision-focused − work intensively with design surgeons − focused on surgical solutions for
Slide 37: Current Medartis portfolio for lower extremities
Current Medartis portfolio for lower extremities Hallux Valgus/ 1 Charcot Foot 2 Fracture Fixation 3 Flatfoot 4 Toe 5 Rigidus deformities Hallux Valgus Ankle Fracture • CCS/headed CCS 2.2/3.0 • 3.5 Medial column • 2.8/3.5 Distal Tibia plates, Medial & • 3.5 Calcaneus Step plates • 2.0 SpeedTip C • 2
Slide 38: Medartis 25 Years

Medartis Holding — FY2021 Earnings Presentation on 6ix

Medartis — FY2021 Earnings Presentation

Slide 1: 2021 Full-year Results

Slide 2: Disclaimer

Slide 3: Agenda

Slide 4: Full-year highlights

Slide 5: Full-year highlights

Slide 6: Growth momentum maintained in H2 despite 15% higher comparison base

Slide 7: Full-year performance driven by a strong all-round performance

Slide 8: Nextremity acquisition is a catalyst for our US business

Slide 9: Expansion of the global Medartis team

Slide 10: Financial & Business Review

Slide 11: All regions grew >20%

Slide 12: Regional performance: EMEA & US

Slide 13: Regional performance: APAC & LATAM

Slide 14: Strong segment growth reflects portfolio strategy focus

Slide 15: Gross profit margin increased by 0.4%-points

Slide 16: Operational improvements and cost discipline on OPEX level

Slide 17: EBITDA margin improved to 17.2% (+2.3PP)

Slide 18: Net margin rose to 7 million CHF (basic EPS 0.58)

Slide 19: Solid cash position (28% of balance sheet total)

Slide 20: Strategic Update & key priorities 2022

Slide 21: Our strategy remains unchanged – Key priorities 2022

Slide 22: Strengthening of commercial organization with own sales force and distributors

Slide 23: NSI: Further acceleration of US growth

Slide 24: Two complementary businesses

Slide 25: Accelerate and broaden innovation pipeline

Slide 26: NSI perfectly complements Medartis pipeline

Slide 27: The US market opportunity

Slide 28: Transaction details

Slide 29: Transaction structuring and financing

Slide 30: Outlook 2022

Slide 31: Full-year guidance 2022

Slide 32: medartis® Precision in Fixation

Slide 33: Annual Report 2021 now available for download

Slide 34: Upcoming investor events

Slide 35: Key financials FY 2019 – FY 2021

Slide 36: The combined Nextremity team and Medtech experience

Slide 37: Current Medartis portfolio for lower extremities

Slide 38: Medartis 25 Years