Slide 1: Microsaic Systems plc Full Year Results 2019
Microsaic Systems plc Full Year Results 2019 March 2020 Glenn Tracey: CEO Bevan Metcalf: FD ©Microsaic Systems 2020
Slide 2: Important Information
IMPORTANT INFORMATION Microsaic – Results Presentation Disclaimer – March 2020 This presentation, which has been prepared by Microsaic Systems plc ("Company"), has been prepared solely in connection with the Company’s results for the financial year ended 31 December 2019. For the purposes of this no
Slide 3: Introductions
INTRODUCTIONS GLENN TRACEY CEO 25 years’ experience in scientific instruments, including human and environmental health. Previously at global life sciences company PerkinElmer. Joined in March 2015, appointed to the Board in December 2015 BEVAN METCALF FD 35+ years’ financial management experience i
Slide 4: Snapshot Microsaic Systems
SNAPSHOT MICROSAIC SYSTEMS Compact, easy to use Mass Spectrometry detectors, enabling operators to make faster, real-time decisions, optimising overall productivity Compact Mass Spectrometry, taking analysis out of the centralised laboratory • Fast chemical and biochemical analysis in a very compact
Slide 5: 2019 Highlights
2019 HIGHLIGHTS Sales +51% Expanded channels contribute to sales growth Margin gains in H2 H2 Margins 43% from better pricing, niche markets and direct sales Business Greater flexibility and scalability Outsourced Manufacturing Growth 4 further partners At year end, the sales channel comprised of 12
Slide 6: The Technology
THE TECHNOLOGY Designed to take analysis out of the centralised laboratory • Small footprint (based on miniaturised components) • Can be used in manufacturing, remote labs, and in traditional labs • Well suited to applications needing real-time and continuous monitoring Designed for simplicity the I
Slide 7: Target Markets
TARGET MARKETS • Specific markets in “small molecule” chemical, pharmaceutical, environmental analysis • Revenue generating today, mainly through OEMs and distributors • Mature end markets, total market c $4bn1 • 7.3% CAGR projected 2019-20241 • High growth opportunities in “large molecule” biologic
Slide 8: Growth Strategies
GROWTH STRATEGIES • Small molecule • Existing and new distribution partners: many applications and geographies (see slide 10) • Additional new higher value ‘complete system’ products launching 2020, incorporating the MS (see slide 9) • New direct sales channel, started 2019 • Further small molecule
Slide 9: Product Roadmap
PRODUCT ROADMAP Available Ongoing Planned 2019 2020 2021 MID/MIDAS MID/MIDAS MID/MIDAS Nano LCMS1 Nano LCMS LCMS “Family” Traditional markets LCMS “Family” Other systems ProteinID ProteinID ProteinID ProteinID Online Bioprocessing Other systems 1 LC = Liquid Chromatography ©Microsaic Systems 2020 9
Slide 10: Channel Growth Strategy
CHANNEL GROWTH STRATEGY OEM Partner Distributor Microsaic Direct Sales 20 15 Europe Europe 10 9 9 5 5 4 5 3 0 1 2017 2018 2019 2020 YTD • North America • North America • North America • North America (+ Axcend) • Europe • Europe • Europe • Europe • China • China • China • SE Asia • SE Asia • SE Asia
Slide 11: ST Japan Exclusive Distribution Agreement
ST JAPAN EXCLUSIVE DISTRIBUTION AGREEMENT • Established 30 years • Sales $15M • 40 employees (mostly in Japan) • Expertise in reaction monitoring in Japan • Integration and distribution of Microsaic MS with ST Japan’s reaction monitoring equipment "The Microsaic 4500 MiD® is a very interesting addit
Slide 12: Axcend Integration and Joint Sales and Marketing Agreement
AXCEND INTEGRATION AND JOINT SALES AND MARKETING AGREEMENT • Axcend is based Utah, US with direct sales in the US • Offers smallest commercialised nano-LC currently available • Axcend/Microsaic LC-MS only compact, low flow combination available today • Combination can provide significant savings in
Slide 13: Financial Headlines
FINANCIAL HEADLINES • Revenues up 50.8% at £0.87 million (2018: £0.58m) • Gross margin 38.8% (2018: 41.8%); margins in H2 were 42.9% (H1: 31.9%), reflecting better pricing, better suited sales niches and margin retention on direct sales • Operating expenses of £3.39m, +2.7% YoY due to investment in
Slide 14: Outlook
OUTLOOK Year to date and ahead • Slow start given curtailment of activities, especially in Asian markets due to Covid-19; further revenue growth expected provided normal commercial activities resume quickly in affected areas once restrictions lifted • Board remains confident in longer-term prospects
Slide 15: Summary
SUMMARY • Differentiated proprietary technology: small footprint, portable and powerful detector; low cost of ownership • Expansion of OEM and distribution network gives increasing potential for growth • Gross margin strengthened by focussing on product niches and direct sales • Scalable: outsourced
Slide 16: Appendices
Microsaic Systems plc APPENDICES ©Microsaic Systems 2020
Slide 17: Non-Executive Biographies
NON-EXECUTIVE BIOGRAPHIES PETER GRANT NON-EXECUTIVE CHAIRMAN 40 years experience, half at listed company board level, covering both London main market (up to FTSE 250) and AIM, including Skyepharma PLC, WorldPay Group plc, Molins PLC and various senior positions at The General Electric Co. PLC Group
Slide 18: Financials – P&L
FINANCIALS – P&L • Revenues increased by 51% with product, consumables and service income all up on 2018. £000 2019 2018 Revenue 872 578 • GM% circa 39% marginally down on 2018. Mainly due to outsourcing but partly off set by higher pricing. Margins to Cost of sales (534) (336) improve as volumes sc
Slide 19: Financials – Cash Flow
FINANCIALS – CASH FLOW £000 2019 2018 Cash used in operations (2,842) (2,963) Corporation tax received 277 247 Net cash used in operating activities (2,565) (2,716) • Cash used in operating activities £151k (5.5%) lower than Purchases of intangible assets (42) (62) last year due to reduced working c
Slide 20: Financials – Balance Sheet
FINANCIALS – BALANCE SHEET £000 2019 2018 ASSETS Intangible assets 97 96 Property, plant and equipment 125 124 Right of use assets 158 - • IFRS 16 – Leases are now on balance sheet – Right of use Total non-current assets 380 220 asset and liability. Inventories 386 402 Trade and other receivables 44
Slide 21: Corporate
CORPORATE Share Information Share price (05.03.20) 0.8 per share Shares in circulation (05.03.20) 456.37M Executive Directors • Glenn Tracey (CEO) Market cap £3.65M PerkinElmer* • Bevan Metcalf (FD) Debt Nil ICI*, GSK*, Orion* Non-Executive Directors Significant Shareholders > 3% (31.12.19) Parkwalk
Slide 22: Microsaic Systems plc
Microsaic Systems plc Head office Microsaic Systems plc GMS House Boundary Road Woking Surrey GU21 5BX +44(0)1483 751577 info@microsaic.com ©Microsaic Systems 2020