Advanced Medical Solutions Group Plc · LSE:AMS
Advanced Medical Solutions — FY2023 Earnings Presentation
30 slides from Advanced Medical Solutions's earnings presentation, Mar 13, 2024
Slide 1: Advanced Medical Solutions Group plc
Advanced Medical Solutions Group plc
Slide 2: 2023 Highlights
2023 Highlights Key initiatives set to drive strong growth + Acquisition of Connexicon Ltd in February 2023 increasing our ability to develop and commercialise innovative and differentiated adhesive and sealant technologies + Successful implementation of new US LiquiBand® route to market strategy +
Slide 3: Product Progress: LiquiBand®
Product Progress: LiquiBand® New US route to market strategy * Successfully implemented enhanced route to market strategy i Ach |& + First solely AMS branded LiquiBand® products established in the US ws * Connexicon portfolio allowing product exclusivity and differentiation between partners * Connex
Slide 4: Product Progress: LiquiBandFix8®/LIQUIFIX™
Product Progress: LiquiBandFix8®/LIQUIFIX™ US launch of LIQUIFIX™ * Approval granted ahead of schedule in June 2023 + US Commercial agreement signed with TELA Bio Inc in September 2023 Micah’ THE STRENGTH YOU NEED, * Training of specialist US sales force completed AS an ina ais * Good progress made
Slide 5: Product Progress: Biosurgical
Product Progress: Biosurgical Biomaterials portfolio expected to drive strong growth for Group in 2024 and beyond Progressing approval for first US collagen 510(k) with pipeline of products to follow RESORBA® bone substitutes now launched in over 20 countries including pilot launch in US Syntacoll G
Slide 6: Product Progress: SEAL-G® and SEAL-G® MIST
Product Progress: SEAL-G® and SEAL-G® MIST Clinical study + First human clinical study completed for 160 patients + Initial results indicate significant improvement in serious clinical leakage rate (1.25%) compared with reported rates (4.2 - 4.7%) + Study underway in pancreatic surgery, an indicatio
Slide 7: SEAL-G® Evolution
SEAL-G® Evolution EXISTING FUTURE ’ + FI AQ — Saye
Slide 8: Product Progress: Woundcare
Product Progress: Woundcare * OEM Woundcare continues to face challenges * Strategy remains focused on growing own brand ActivHeal® range with expanding regulatory approvals & distribution network * Raleigh’s pipeline of specialist material achieving commercial success * Other Woundcare impacted by
Slide 9: Financial Summary
Financial Summary
Slide 10: Financial Highlights
Financial Highlights + Revenues increased by 2% to £126.2 million (2022: 124.3 million) * R&D spend increased to £12.5 million (2022: £12.3 million) reflecting ongoing investment in innovation and MDR + Adjusted pre-tax profit reduced to £25.9 million (2022: £28.5 million) as margins were impacted b
Slide 11: 2023 Results: Surgical Revenue
2023 Results: Surgical Revenue Revenue up 6%* to £79.1 million (2022: £74.9 million) Advanced Closure £M £M ixati + LiquiBand® revenue down 4%" to £34.6 million (2022: £36.0 Advanced Closure Internal Fixation and million) due to one-off £5 million de-stocking related to the 40 Sealants transition to
Slide 12: 2023 Results: Surgical Revenue
2023 Results: Surgical Revenue Revenue up 6%* to £79.1 million (2022: £74.9 million) £M Traditional Closure £M Biosurgical 20 Traditional Closure * + Suture revenue up 15%" to £18.1 million (2022: £16.0 million) 15 15 * Ongoing expansion to new territories and improved OTIF (On-Time In-Full) driving
Slide 13: 2023 Results: Woundcare Revenue
2023 Results: Woundcare Revenue Revenue down 5%* to £47.1 million —€M em (2022: £49.5 million) 50 Infection & Exudate 50 Other Wound Management ther Woundcare . 40 40 + Revenue up 2%* to £39.5 million (2022: £38.9 million) as to ongoing reimbursement challenges, pricing pressure and 30 xp increased
Slide 14: 2023 Operating Margins
2023 Operating Margins —£M 80.0 60.0 40.0 20.0 0.0 —£M 80.0 60.0 40.0 20.0 0.0 14 Surgical Business Unit 29.1% 25.3% 749 2022 mmm Sales £m Op profit £ m (adj) 2023 Woundcare Business Unit 15.4% | 3% 2022 Op profit £ m (adj) 2023 =—==0p mgn (adj) % 30.0% 20.0% 10.0% 0.0% —e=Op mgn (adi) % 20.0% 15.0%
Slide 15: 2023 Cashflow
2023 Cashflow £ million Cash flows from operating acti Profit from operations pre- exceptional Depreciation and Amortisation Working Capital movements Share based payment expense Taxation Adjusted net cashflow from operating activities Acquisitions including earn-out payments Capital Investments Fin
Slide 16: Summary and Outlook
Summary and Outlook
Slide 17: Summary and Outlook
Summary and Outlook Stronger platform established to raise growth profile from 2024 + The Board remains confident AMS can generate double-digit revenue growth in 2024, before financial impact from acquisitions announced 13 March + New US LiquiBand® route to market strategy positively impacting perfo
Slide 18: Advanced Medical Solutions plc
Advanced Medical Solutions plc Premier Park, 33 Road One, Winsford Industrial Estate, Winsford, Cheshire W7 3RT, UK Chris Meredith (Chief Executive Officer) Eddie Johnson (Chief Financial Officer) Michael King (Investor Relations) corporate@admedsol.com +44 (0)1606 863500 www.admedsol.com
Slide 19: Advanced Medical Solutions Group plc
Advanced Medical Solutions Group plc
Slide 20: Overview of Transaction: Acquisition of Peters Surgical
Overview of Transaction: Acquisition of Peters Surgical Proposed acquisition of Peters Surgical, a leading global provider of surgical devices, headquartered in France Total maximum cash consideration of €141.4 million (£121 million’), on a debt-free, cash-free basis * €132.5 million upfront payment
Slide 21: Key Criteria for AMS Acquisition Strategy
Key Criteria for AMS Acquisition Strategy /@» Cy Cy, Expand presence in Increase portfolio of operating room “own” brand products Profitable and cash Commercial and cost generative synergies
Slide 22: Expanding Presence in Operating Room
Expanding Presence in Operating Room Speciality Sutures Haemostatic clips and clamps Surgical glues & sealants +2% + Widest range of CV sutures and one of fastest growing AT’ ‘0 , European markets Revenue CAGR '19-23A * Positions AMS as most diverse speciality suture provider in the world =.) +8% +
Slide 23: 2023 pro-forma Surgical revenues £152m
• • • • • 2023 pro-forma • Surgical revenues • £152m • combined • • • • • • • • 23 *Based on AMS Profroma and Peters Surgical 2023 Sales Reports
Slide 24: Increasing Global Footprint
Increasing Global Footprint A global presence with sales in 90+ countries and 4 commercial bases Hub Europe Hub Middle East Hub Americas 54. By, 12% Ry 13% % f ») 5... 6. i& eu Hub APAC ny 21% ? uf ¢¥—@_ 1.5) 1X%) 2022A revenue'contribution by geo! nay) /% direct revenue by hub Note: (1) Strategic r
Slide 25: 2023 pro-forma Surgical revenues £152m
2023 pro-forma • Surgical revenues • • • • £152m • • • • combined • • • • • • • • • • • • • • • 25
Slide 26: Year ended 31 December (€ millions)
Year ended 31 December (€ millions) 2021 2022 2023 Revenue 64.6 75.5 84.0 Reported operational EBITDA (1) 1.9 7.1 10.6 • • • • • • • Audited financial information from 31 Dec 2021 and 2022 (shown on a pre IFRS 11 basis) and extracted from management information for the financial year to 31 Dec 2023.
Slide 27: Delivering Cost Synergies
Delivering Cost Synergies + Significant broad global base of specialist manufacturing and R&D facilities - Anticipated improvements in efficiency and profitability across the combined Group UK 0. France ( Plymouth - LiquiBand “abe + Domalain - Clips & Glues Germany Thailand Nuremberg - Biosurgical r
Slide 28: Overview of Transaction: Financials
Overview of Transaction: Financials Funding - through existing cash and new bank facilities: + £90.0 million acquisition facility from HSBC and NatWest including: + Interest on drawn funds: SONIA plus 1.75% reducing as leverage reduces Leverage ratio - initial pro forma net debt to EBITDA ratio of 1
Slide 29: Conclusion
Conclusion
Slide 30: Conclusion: Peters Surgical meets all of AMS's strategic criteria for acquisitions
Conclusion: Peters Surgical meets all of AMS's strategic criteria for acquisitions (a2.2\ fe] a —® Expand presence in operating room ¥ Peters Surgical focussed entirely on surgical space ( se > Increase portfolio of “own” brand products ¥ Peters Surgical “own" brands of sutures, clips and glues ) fe
Advanced Medical Solutions Group — FY2023 Earnings Presentation on 6ix