Slide 1: At war against infections
1 At war against infections Q2 presentation August 11, 2016
Slide 2: At war against healthcare associated infections
2 At war against healthcare associated infections The Economist May 2016 • First reported U.S. case of bacterial infection resistant to last resort antibiotic • Superbugs now present on all continents
Slide 3: Highlights in Q2 2016
3 Highlights in Q2 2016 Major increase in delivered BIP products Strong license revenues from C.R. Bard Total revenues +19% compared to Q2 2015 Major deliveries to China European research grant awarded to Bactiguard New clinical study to help people with spinal cord injury New board me
Slide 4: Key Priorities 2016
4 Key Priorities 2016 Drive sales of our own product portfolio Bactiguard Infection Prevention Develop new license businesses Secure long-term refinancing
Slide 5: Supplied products
Delivered products Financial overview5 Supplied products • 110 000 BIP products delivered in Q2 2016 compared to 58 000 during Q2 2015, an increase by 90 % • For the first half year 2016, 198 000 BIP products were delivered compared to 63 000 first half year 2015, an increase by 214 % • For the full
Slide 6: Market Update
6 Market Update Focus on select markets and expanding the business Europe • Deliveries increasing • Evaluating new partnerships CHINA MEA • High level meeting • Slow quarter, pick up in early Q3 • Training of 100 product • Focus on repeat business, big tenders specialists and sales staff • Challengi
Slide 7: Sino – Swedish health cooperation
7 Sino – Swedish health cooperation ”China and Sweden should work together on the global issues that are important to all of us, like AMR”, Mdm Li Bin, Minister of Health, China ”Prevention of infections is strategic in combating antimicrobial resistance”, Gabriel Wikström, Minister of Health, Swede
Slide 8: Focus on China
8 Focus on China China • First order for 100 000 catheters in Q1 • Bulk of deliveries completed in Q2 • 100 sales reps and product specialist trained in July • Training facilitated by Bactiguard Academy • Sales force approaching hospitals
Slide 9: Focus on India
9 Focus on India India • Remaining part of initial order delivered in Q1 • Second order for 60 000 catheters in Q3 • Dealers appointed in several metropolitan areas • Several major hospitals have placed repeat orders • Clinical study well under way • Major training activities for hospital staff in Q
Slide 10: Licensing business update
10 Licensing business update C.R. Bard • Successful partnership since 1995 • More than 150 million catheters sold to date • Generating stable annual revenues Vigilenz Medical Devices Sucessful partnership • Bactiguard coated orthopaedic implants since 1995 • Covering the Asean-markets • Waiting for
Slide 11: Highlights
Financial highlights Financial overview 11 Highlights Second quarter (April-June 2016) • Revenues of MSEK 33.8 (28.5), plus 19% compared to Q2 2015 (Strong License revenues and high deliveries of BIP Products) • EBITDA of MSEK 2.4 (-8.4), 7% margin First half year (January-June 2016) • Revenues of M
Slide 12: Revenue streams
12 Revenue streams Two revenue streams in the income statement License BIP portfolio Bard (sales since 1995) and BIP Foley BIP ETT BIP CVC Vigilenz license deals 1 2 License BIP revenue From a product perspective Bactiguard has two lines of business; Licenses and the BIP portfolio, acknowledged in t
Slide 13: Income distribution
Income distribution Financial overview 13 Income distribution Apr-Jun Apr-Jun Jan-Jun MSEK 2016 2015 2016 License revenues 27,2 25,8 50,0 Sales of BIP products 3,7 2,3 6,6 Other revenue 2,9 0,4 3,2 Total Revenues 33,8 28,5 59,8
Slide 14: License revenues from C.R. Bard
License revenues from C.R. Bard Financial overview 14 License revenues (SEKm) Q1 Q2 H1 Q3 Q4 Full year 2013 21,6 19,3 40,9 21,3 20,5 82,7 2014 22,5 22,8 45,3 24,3 20,2 89,8 2015 26,8 25,8 52,6 56,8 15,9 125,3 2016 22,8 27,2 50,0 Of which Of which currency effect, currency effect, MSEK +0.5 MSEK -0.2
Slide 15: Key figures
Key figures Financial overview 15 Key figures Apr-Jun Apr-Jun Jan-Jun • EBITDA (Q2) MSEK 2.4 Key figures (-8.4), 7 % margin 2016 2015 2016 Revenues, SEKm 33,8 28,5 59,8 EBITDA, SEKm 2,4 -8,4 0,8 • EBITDA (First half) MSEK 0.8 EBITDA margin, % 7% -29% 1% (-8.2), 1% margin Operating profit, SEKm -5,9
Slide 16: Financial flexibility and strength
Financial flexibility and strength Financial overview 16 • Equity ratio of 61 % • Net debt of MSEK 118,7 • Cash position of MSEK 22 • Nominal value outstanding bond MSEK 138 • Annual interest costs on bond going forward until maturity, MSEK 15.2 • The credit facility of MSEK 130 MSEK in total (loan
Slide 17: Financial targets
17 Financial targets • Average sales growth of 20% per annum for a 5-year period, with 2015 (adjusted for the additional order from C.R. Bard) as the base year – starting point SEK 118.5 million • EBITDA margin of at least 30% at the end of the 5-year period • Equity ratio of at least 30% • Over tim
Slide 18: Concluding remarks
18 Concluding remarks • Well positioned for growth given increasing attention to antibiotic resistance and infection prevention • Major increase in sales of BIP portfolio, well under way towards at least doubling 2015 volume • Total revenues +19% • Focus on China and India to drive sales • Major del
Slide 19: More information is available at www.bactiguard.se
19 More information is available at www.bactiguard.se For questions and additional information, please contact: Christian Kinch, CEO: +46 8 440 58 80 christian.kinch@bactiguard.se Fredrik Järrsten, CFO: +46 725 500 089 fredrik.jarrsten@bactiguard.se Cecilia Edström, Vice President - Director of Sale
Slide 20: Questions
20 Bactiguard Fighting war against superbugs Questions