Medcap Ab · OMXSTO:MCAP
Medcap Ab — Q2 2020 Earnings Presentation
27 slides from Medcap Ab's earnings presentation, Aug 31, 2020
Slide 1: Company Presentation
Company Presentation August 2020
Slide 2: Vision
Vision We create value and contribute to improved life quality in Life Science 2
Slide 3: Introduction
Introduction About us Geographical split Home markets for ▪ Decentralised investment company in Life portfolio Science companies ▪ Value creation through active ownership Important export markets + Australia and the ▪ 2 business segments: MedTech and Specialty US Pharma ▪ Sales: 786 MSEK (c. 76 MEUR
Slide 4: First quarter (Q2 2020)
First quarter (Q2 2020) Financials Comments Net sales per quarter (MSEK) ▪1 Sales growth in Q2 compared to previous year driven by both segments 250 211 206 209 183 173 166 188 200 186 ▪2 Group revenue growth in Q2 of 12% and 200 160 152 EBITDA increased by 13%, excluding the 150 132 140 139 120 eff
Slide 5: R12 update (development vs last year)
R12 update (development vs last year) Financials Comments Net Sales vs. last year (MSEK) 1▪ Profit increased by 7% and sales by 6% compared to the equivalent period 739 32 15 786 800 previous year 600 2▪ Positive sales development in both MedTech and Specialty Pharma 400 3▪ R12 EBITDA increased by 5
Slide 6: Sales and EBITDA – MedCap over time
Sales and EBITDA – MedCap over time Sales, EBITDA and EBITDA margin development over time MSEK (Net sales) MSEK (EBITDA) / % 900 Sales CAGR: 14% 140 EBITDA CAGR: 28% 786 800 757 120 709 109 700 116 596 100 600 525 500 466 80 423 78 406 400 349 60 337 316 59 300 259 47 45 40 187 41 43 200 38 33 27 20
Slide 7: Sales and EBITDA – R12 per quarter
Sales and EBITDA – R12 per quarter Sales, EBITDA and EBITDA margin development Q1 15/16 – Q2 20 MSEK (Net sales) MSEK (EBITDA) / % Sales CAGR: 15% EBITDA CAGR: 38% 1 000 116 120 109 104 900 101 102 786 100 800 739 757 763 726 734 699 709 700 672 78 90 639 77 72 80 596 600 540 564 66 508 513 525 504
Slide 8: Overview of segments
Overview of segments MedTech Specialty Pharma Net Sales R12: 451 MSEK Net Sales R12: 335 MSEK EBITDA R12: 98 MSEK EBITDA R12: 27 MSEK Technical aid solutions and services for individuals with functional disabilities Specialty pharma (nische pharmaceuticals) and CDMO (contract development and product
Slide 9: Investment strategy
Investment strategy Investment strategy Small and mid-sized Private life science companies Majority Ownership Central/Northern Europe Located companies with international potential Unlimited Ownership period Relationship Based investments Targeting 5 – 10 core investments 0-500 MSEK (5-50 MEUR) In i
Slide 10: Value creation through active ownership
Value creation through active ownership MedCap’s ownership model: Combines the larger company’s strengths with the smaller company’s entrepreneurial spirit Assessment based Long-term value on transparent creation financial and operational targets Investment in development Active ownership Access to
Slide 11: Acquisitions and exits since the start
Acquisitions and exits since the start Unimedic, 1 Emfit, Add-on 1 (Abilia) Sale of product 1 Handitek, Add-on (D-droppar) (GEWA – changed 1 Miwana, Add-on 2 Scandinavian (Unimedic) 1 Somna, name to Abilia) Nutrients, 1 IM-Medico, 1 GEWA (Abilia), 2 IM-Medico, Exit Add-on (Inpac Add-on Acquisition A
Slide 12: Financial Targets
Financial Targets Focus on growth Net sales in 3-4 years Annual EBITDA growth* Net debt / EBITDA* 1,500 MSEK 15% <3x *Average over economic cycle 12
Slide 13: MedTech – Operating and financial update
MedTech – Operating and financial update Financials 2020 Q2 Comments Net Sales – Rolling 12 months ▪1 The companies included in the MedTech MSEK segment primarily sell different types of 500 431 444 451 medical equipment and products 400 410 419 424 400 364 381 296 312 336 ▪2 The segment consists of
Slide 14: Value Drivers in MedTech - Abilia
Value Drivers in MedTech - Abilia Value drivers Diagnoses, children 0-14 years (Sweden) ▪ 1 Since 2000 there has been an Children 0-14 years in Sweden 17 429 accelerating trend with an increasing 18 000 number of young people being diagnosed 15 380 with neuro phycological disabilities 16 000 ▪ Treat
Slide 15: Strong product portfolio and solid market position in MedTech
Strong product portfolio and solid market position in MedTech generate long term growth opportunities Portfolio of attractive MedTech Products Companies Company Nordics: 1 Nordics: 100 Market size Nordics: 1.2 BnSEK, Global MSEK, EU 5 BnSEK ”very large” BnSEK Low competition High competition Large n
Slide 16: Specialty Pharma – Operating and financial update
Specialty Pharma – Operating and financial update 2020 Q2 Comments Net Sales – Rolling 12 months ▪1 The companies included in the Specialty MSEK 400 Pharma segment develop and sell 321 310 327 320 335 pharmaceutical products within the regulatory 350 302 308 318 309 316 300 280 270 265 258 256 269 2
Slide 17: Value creating product development process
Value creating product development process Process Extempore Registered national MRP Pharmaceuticals 18-24 months 6-12 months • Specialty pharmaceuticals with • Increases documentation quality – • Expansion of national registration local clinical history, often based on ”medical file” dosage / admin
Slide 18: Opportunities in Specialty Pharma
Opportunities in Specialty Pharma Portfolio of attractive products Strong net sales development for newly launched products1 R12 MSEK Attractive platform of own products, 90 pipeline with new product launches, established expertise in product 80 development and experience from 70 registration proces
Slide 19: Attractive portfolio of own Specialty Pharma products
Attractive portfolio of own Specialty Pharma products Product information MAH Product Indication (Marketing Authorisation Holder) Launch Basilea Cresemba Fungal infection Spring 2017 (Unimedic exclusive in Nordics) Unimedic Fenylefrin Low blood pressure (anesthetic) Spring 2015 (Out-licence partners
Slide 20: Financial summary – Balance Sheet
Financial summary – Balance Sheet Balance sheet MSEK MedTech Specialty Pharma Other / Eliminations MedCap 198 Assets 656 238 198 * 1,093 238 656 -1 Net Working Capital -1 77 92 77 169 92 *) Includes 137 MSEK of assets recorded in accordance with IFRS16 (implemented in Q1 2019) **) Includes -32 MSEK
Slide 21: Market
Market MedTech & Specialty Pharma ▪1 MedCap’s companies in the MedTech segment primarily sell different types of medical devices and ECG-equipment. The customers are normally healthcare regions, municipalities, healthcare providers and distributors ▪2 In MedTech MedCap is active in growing niches wi
Slide 22: Management Team
Management Team Management Position Karl Tobieson Kristina Ekblad Thomas Bergh Johan Folkunger CEO CFO Investment Business Area Manager Manager MedTech MSc. Eng., b 1974 MSc. Ec., b 1974 MSc. Ec., b 1982 MSc. Ec., b 1968 Experience from corporate Experience from finance Experience from Life Backgrou
Slide 23: Board of Directors
Board of Directors Board of Directors Peter von Henrik Blomquist Anders Hansen Anders Lundmark Nina Rawal Ehrenheim Chairman of the Board. CEO Bure Equity AB. Specialist physician Board member of Founder of Emerging Board member (chairman) Board member of The (psychiatry) and MSc Bioservo Technologi
Slide 24: MedCap’s share
MedCap’s share Share price development Largest shareholders Share price (SEK) Volume (shares) Name Shares Ownership 250 1 000 000 900 000 Bengt Julander (Linc Invest AB) 2 965 946 20,05% 200 800 000 Bure Equity AB 2 956 017 19,98% 700 000 Karl Tobieson 150 600 000 555 693 3,76% (incl. related partie
Slide 25: Summary: Why invest in MedCap?
Summary: Why invest in MedCap? Summary 1 Exposure to high quality, non-cyclical assets with market-leading positions and attractive outlooks in terms of growth and profitability – Diversified revenue streams across growing verticals with a high degree of recurring revenues – Additional growth fueled
Slide 26: Financial calendar
Financial calendar Key dates ▪ Q3 2020, 30 October 2020 ▪ Q4 2020, 19 February 2021 ▪ Q1 2021, 7 May 2021 ▪ Q2 2021, 30 July 2021 26
Slide 27: Financial summary – Segments
Financial summary – Segments EBITDA & Net sales MSEK Net Sales EBITDA* Q2 2020 Q2 2019 FY 2019 Q2 2020 Q2 2019 FY 2019 apr-jun apr-jun jan-dec apr-jun apr-jun jan-dec MedTech 113,7 106,3 430,7 24,4 24,1 103,9 Specialty Pharma 95,6 80,1 326,5 14,0 9,4 27,7 MedCap group 209,3 186,4 757,2 34,4 29,9 116