Slide 1: Bactiguard Q2 presentation
1 Bactiguard Q2 presentation August 10, 2017
Slide 2: Infections and antimicrobial resistance
2 Infections and antimicrobial resistance Increasing media and public attention ”Antimicrobial resistance is one of the greatest challenges of our time, as it threatens healthcare, the world economy and global development” Otto Cars, Professor in infectious disease and member of the joint UN working
Slide 3: Antimicrobial Resistance (AMR)
3 Antimicrobial Resistance (AMR) European and Global Challenge by 2050 AMR is a serious threat to public health: 25 000 patients die annually in the EU as a 392 result of infections 317 K caused by resistant K 4.7M bacteria Globally this could be 4.1 as high as 700 000 M 392 10 million deaths per K
Slide 4: Antibiotic consumption
4 Antibiotic consumption Consumption of antibiotics used for treatment of multidrug-resistant bacterial infections almost doubled in Europe between 2010-2014. While there has been a significant decrease in antibiotic consumption outside of hospitals in 6 countries (Denmark, Estonia, Finland, Luxembo
Slide 5: Antibiotic consumption: second-line antibiotics
5 Antibiotic consumption Use of second-line antibiotics an increasing concern Reference: European Commission. AMR: a major European and Global Challenge. OECD.
Slide 6: HAI and antimicrobial use in European hospitals
6 HAI and antimicrobial use in European hospitals Healthcare-associated infections (HAI) Antimicrobial use in European hospitals in European hospitals 6% of all patients get at least one HAI 33% of all patients received at least one antimicrobial agent Reference: European CDC. https://ecdc.europa.eu
Slide 7: HAIs in European hospitals
7 HAIs in European hospitals Pneumonia 26% Urinary tract 21% Surgical site 16% 6% of all patients get at least one HAI Bloodstream 11% Other 8% Systemic 7% Gastrointestinal 7% 4 Skin/soft tissue % Reference: European CDC. https://ecdc.europa.eu/sites/portal/files/media/en/healthtopics/Healthcare-ass
Slide 8: Highlights in Q2 2017
8 Highlights in Q2 2017 ✓ Seven consecutive quarters of increasing BIP sales, based on rolling twelve-month figures ✓ Higher license revenues. Continued stable revenues from Bard. USD currency hedge. ✓ Revenue growth of 8%. First half year 30%, excluding new license deal 7% Tender won for Stockholm
Slide 9: Supplied products
Financial Development value delivered BIP products overview 9 Supplied products • Development value per quarter delivered BIP products, rolling 12 months. • CAGR in this time period of 17%.
Slide 10: Supplied products
Delivered products Financial overview 10 Supplied products • Revenue from BIP products in Q2 of MSEK 6.5 (3.7) corresponding to 153,000 (110,000) units. • For the full year 2016, 418,000 BIP products were delivered generating revenue of MSEK 15.8
Slide 11: Market update Q2 2017
11 Market update Q2 2017 Focus on doubling sales value Europe • Breakthrough in Swedish tenders • Strong foothold in DACH region • Relaunch in Italy with new partner MEA CHINA • Training, sales activities and • Presence in all major markets evaluations ongoing at high intensity • Sales already in li
Slide 12: Licensing business
12 Licensing business C.R. Bard • Successful partnership since 1995 • Bactiguard coated Foley catheters for the US, Japan and UK/Ireland • Generating stable annual revenues • Part of US dollar license flow hedged since June Vigilenz Medical Devices • Bactiguard coated orthopaedic implants for the AS
Slide 13: Financial highlights
13 Financial highlights Highlights Second quarter (April-June 2017) • Revenues of MSEK 36.5 (33.8), plus 8% (higher BIP and License revenues) • EBITDA of MSEK 3.8 (2.4), 11% margin First half year (January-June 2017) • Revenues of MSEK 77.5 (59.8), plus 30%. Excluding new license agreement, increase
Slide 14: Revenue streams
14 Revenue streams Two revenue streams in the income statement License BIP portfolio C.R. Bard (sales since 1995), BIP Foley BIP ETT BIP CVC Vigilenz and Smartwise 1 2 License BIP revenue From a product perspective Bactiguard has two lines of business; Licenses and the BIP portfolio, acknowledged in
Slide 15: Income distribution
Revenue distribution Financial overview 15 Income distribution Apr-Jun Apr-Jun Jan-Jun Jan-Jun MSEK 2017 2016 2017 2016 License revenues 25,7 27,2 53,1 50,0 New license revenues 4,3 0,0 13,1 0,0 Sales of BIP products 6,5 3,7 9,3 6,6 Other revenue 0,0 2,9 2,0 3,2 Total Revenues 36,5 33,8 77,5 59,8
Slide 16: License revenues from C.R. Bard
License revenues from C.R. Bard Financial overview 16 (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 89,7 2015 26,8 25,8 52,6 56,8 15,9 125,3 2016 22,8 27,2 50,0 27,1 25,9 103,0 2017 27,4 25,7 53,1 Of which Of which currency effect, currency effect,
Slide 17: Key figures
Key figures Financial overview 17 Key figures Apr-Jun Apr-Jun Jan-Jun Jan-Jun Key figures • EBITDA (Q2) MSEK 3.8 (2.4), 2017 2016 2017 2016 11% margin Revenues, SEKm 36,5 33,8 77,5 59,8 EBITDA, SEKm 3,8 2,4 17,2 0,8 • EBITDA (First half) MSEK EBITDA margin, % 11% 7% 22% 1% 17.2 (0.8), 22% margin Ope
Slide 18: Financial flexibility and strength
Financial flexibility and strength Financial overview 18 Financial position • Equity ratio of 61 % • Net debt of MSEK 149.7 • Cash position of MSEK 14.9. Overdraft facility of MSEK 30, not utilized at 30 June. Loans • Bank loan: MSEK 100, maturing 31 Dec, 2017 • Loan major shareholders: MSEK 50, mat
Slide 19: Financial targets
19 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 MSEK 118.5 • EBITDA margin of at least 30% at the end of the 5-year period • Equity ratio of at least 30% • Over time uphol
Slide 20: Concluding remarks
20 Concluding remarks ✓ Seven consecutive quarters of increasing BIP sales Breakthrough in Swedish tenders, Stockholm and Skåne European expansion Middle East back on track Driving sales in China and India ✓ Higher license revenues Stable revenues from Bard, currency exposure partly hedged Additiona
Slide 21: More information is available at www.bactiguard.se
21 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, SVP Sales & New Business: +46 725
Slide 22: Questions
22 Bactiguard At war against hospital acquired infection Questions