Slide 1: At war against infections
1 At war against infections Q3 presentation November 10, 2016
Slide 2: Key Priorities 2016
2 Key Priorities 2016 Drive sales of our own product portfolio Bactiguard Infection Prevention Develop new license businesses Secure long-term refinancing
Slide 3: Highlights in Q3 and October 2016
3 Highlights in Q3 and October 2016 Major increase in deliveries of BIP products Stable revenues from C.R. Bard, in line with Q2 Financial comparison for Q3 2016 vs Q3 2015 affected by one-off order from C.R. Bard in Q3 2015 of MSEK 28 Repeat order from China of 100,000 units Major deliver
Slide 4: Supplied products
Delivered products Financial overview4 Supplied products • 87 000 BIP products delivered in Q3 2016 compared to 15 000 during Q2 2015, an increase by 480 % • For the nine-month period 2016, 284 000 BIP products were delivered compared to 78 000 corresponding period 2015, an increase by 264 % • For t
Slide 5: Market update
5 Market update Focus on select markets and building recurring volume Europe • Expanding presence • Focus on adding new sizeable market • Strengthening the team • Success in Swedish tenders CHINA MEA • New order received • Slow sales development, due to • Sales activities and evaluations political a
Slide 6: Intensive care units (ICU) have considerably higher HAI rates compared to hospitals in general
6 Intensive care units (ICU) have considerably higher HAI rates compared to hospitals in general Sweden HAI Rates EU HAI Rates Low to mid-income HAI Rates General ICU General ICU General ICU 9% 34% 7% 30% 15% 60-90% • Top three HAIs in ICUs • VAP – Ventilator Associated Pneumonia • CAUTI – Catheter
Slide 7: Newly launched BIP ETT Evac - A dual approach to VAP prevention
7 Newly launched BIP ETT Evac - A dual approach to VAP prevention Bactiguard coating preventing Subglottic secretion infections through less drainage (SSD) microbial adhesion Reducing VAP by Reducing VAP by 50%1 67%2 1 Haas CF et al. Respir Care. 2014; Jun; 59(6):933-52 2 Tincu R et al. Poster Euroa
Slide 8: New clinical study confirms BIP Foley Catheter reduces CAUTI in ICU patients
8 New clinical study confirms BIP Foley Catheter reduces CAUTI in ICU patients Patients 60 patients in ICU Decrease in CAUTI using BIP Foley (medical and surgical critical ICU) catheters compared to standard catheters Design Randomized (30 Standard, 30 BIP Foley) 33,0% Site King Fahad Hospital, Univ
Slide 9: Why Bactiguard should be standard in every ICU
9 Why Bactiguard should be standard in every ICU Bactiguard can offer protection against the 3 most common HAIs in the ICU BIP CVC to prevent CLABSI Newly launched: BIP ETT Evac to prevent VAP BIP Foleys to Only product on market prevent CAUTI with: • Subglottic secretion drainage • Anti-infective c
Slide 10: Financial highlights
10 Financial highlights Highlights Third quarter (July-September 2016) • Revenues of MSEK 34.9 (60.4), decrease due to effects of additional order C.R. Bard in Q3 2015. • Excluding additional order from C.R Bard in Q3 2015, revenues have increased by 8% (stable license revenues and high deliveries o
Slide 11: Revenue streams
11 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 12: Income distribution
Income distribution Financial overview 12 Income distribution Jul-Sep Jul-Sep Jan-Sep MSEK 2016 2015 2016 License revenues 27,1 56,8 77,1 Sales of BIP products 3,5 1,1 10,1 Other revenue 4,3 2,5 7,6 Total Revenues 34,9 60,4 94,7
Slide 13: License revenues from C.R. Bard
License revenues from C.R. Bard Financial overview 13 License revenues (SEKm) Q1 Q2 H1 Q3 9 mths Q4 Full year 2013 21,6 19,3 40,9 21,3 62,2 20,5 82,7 2014 22,5 22,8 45,3 24,3 69,6 20,2 89,7 2015 26,8 25,8 52,6 56,8 109,4 15,9 125,3 2016 22,8 27,2 50,0 27,1 77,1 Of which currency effect, MSEK +0.5 Li
Slide 14: Key figures
Key figures Financial overview 14 Key figures Jul-Sep Jul-Sep Jan-Sep • EBITDA (Q3) MSEK 9.7 Key figures (34.5), 28 % margin 2016 2015 2016 Revenues, SEKm 34,9 60,4 94,7 EBITDA, SEKm 9,7 34,5 10,6 • EBITDA (9 mths) MSEK 10.6 EBITDA margin, % 28% 57% 11% (26.3), 11% margin Operating profit, SEKm 1,4
Slide 15: Financial flexibility and strength
Financial flexibility and strength Financial overview 15 • Equity ratio of 61 % • Net debt of MSEK 117,3 • 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 previously communicated of MSEK
Slide 16: Financial targets
16 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 17: Concluding remarks
17 Concluding remarks • Well positioned for growth given increasing attention to antibiotic resistance and infection prevention • Major increase in sales of BIP portfolio, doubling 2015 delivered volume well within reach • Focus on China and India to drive sales • Major delivery to India in Q3 • Maj
Slide 18: More information is available at www.bactiguard.se
18 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
Slide 19: Questions
19 Bactiguard Fighting war against superbugs Questions