Surgical Innovations Group Plc · LSE:SUN
Surgical Innovations — Investor Presentation (April 2018)
19 slides from Surgical Innovations's investor presentation, April 2018
Slide 1: Surgical Innovations Group plc
Surgical Innovations Group plc “Inspired by surgeons, for the benefit of patients” Nigel Rogers – Executive Chairman Melanie Ross – COO & CFO April 2018
Slide 2: What we do
What we do 2 Surgical Innovations Group plc specialises in the design, manufacture and sale of innovative devices for use in minimally invasive surgery (MIS) We distribute branded products through a global network of trusted partners as well as directly in our home market (UK) through our Elemental
Slide 3: Products
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Slide 4: Products
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Slide 5: Mission Statement
Mission Statement 5 “Inspired by surgeons for the benefit of patients” • Aim to provide a broad portfolio of products • Cost effective, procedure specific instruments and devices • Developed in-house, and through partners and acquisition • Manufacture & design: innovative and user-friendly • Integri
Slide 6: Board of Directors
Board of Directors 6 • Nigel Rogers (Executive Chairman) – FCA, 20+ years as FD/CEO/NED/Chair of various AIM- listed businesses, including SDM, SIXH and TRT • Melanie Ross (COO/CFO) – member of CIMA, previously at AESSEAL plc and Eaton Cooper Lighting & Safety • Adam Power (Group Development Directo
Slide 7: Major Shareholders
Major Shareholders 7 As at 27 February 2018 % Getz Bros 13.0% Directors 12.3% Ruffer LLP 9.6% Healthinvest Partners AB 5.1% CWN John 5.1% Marlborough 4.9% Unicorn AIM VCT plc 3.4% Notes
Slide 8: Business model & segmentation
Business model & segmentation 8 • SI Branded products as core activity • Sold direct in UK home market via Elemental • Distribution in over 35 countries worldwide via third parties • UK distribution of complementary product ranges from other manufacturers via Elemental • OEM – design & manufacture o
Slide 9: Key markets
Key markets 9 Branded and distributed Sales 2017 FY proforma Fields of use • Laparoscopy UK Distribution • Obesity UK Branded • Breast & AW reconstruction RoW • Hernia repair Europe USA Notes
Slide 10: Segmental – SI Brand
Segmental – SI Brand 10 • Overview/Recap • Route to market • Port access devices • Direct Sales force (UK) • Surgical Instruments • 3rd Party Distribution (RoW) • Retraction • Resposable® concept Revenues £m 6 5 4 3 2 1 0 2015 2016 2017 Notes
Slide 11: SI Branded Products – Resposable™ Business Model
SI Branded Products – Resposable™ Business Model 11 Within the SI Branded portfolio the company has strived to offer not only cost effective solutions, but also those which offer environmental benefits Our Resposable ™ model constitutes Re-usable elements plus Disposable modular elements: • Example
Slide 12: Segmental – UK Distribution
Segmental – UK Distribution 12 • Overview/Recap • Elemental acquired August 2017 • SI Branded direct sales • Key vendors • Complementary MIS devices • Microline Inc • New/Innovative developments • Meccellis Biotech • Péters Surgical • Routes to market • Network of regional territory • Cousin Biotech
Slide 13: Segmental – OEM
Segmental – OEM 13 • Overview/Recap • Key Products • Design & Build for key partners in • Fix-8 device for hernia repair (AMS plc) both medical and industrial • Valves and Seals for a SILS device sold by applications a global medical company • R&D collaboration with Rolls Royce to develop a laser de
Slide 14: Income statement
Income statement 14 2017 2016 £m £m Revenue 8.75 6.09 Cost of sales (5.03) (4.03) Gross profit 3.72 2.06 Other operating expenses (3.16) (1.59) Other Income 0.02 - Adjusted EBITDA 2.22 1.43 Amortisation of intangible R&D costs (0.52) (0.43) Depreciation of tangible assets (0.56) (0.51) Adjusted oper
Slide 15: Income statement - detail
Income statement - detail 15 Revenue by Segment 10 8 6 4 2 0 2014 2015 2016 2017 SI Branded OEM Third Party Sales Notes
Slide 16: Net Indebtedness
Net Indebtedness 16 2014 2015 2016 2017 2 1 0 Finance leases -1 Convertible -2 Loan -3 Cash (Net of cash and -4 loans) -5 Notes
Slide 17: Balance Sheet
Balance Sheet 17 2017 2016 £m £m Tangible fixed assets 1.33 1.58 Intangibles £m 11.01 1.60 Capitalised development costs 1.27 Intangible assets Product Knowledge 0.19 Total non-current assets 12.34 3.18 Goodwill 8.59 Inventories 2.47 1.50 Supplier Agreements 0.96 Trade receivables 1.54 1.10 11.01 Ot
Slide 18: Future Plans
Future Plans 18 • Markets • Initiatives • Structural changes to dealer • Elite promotion to encourage take network up a success • Strengthened dealer position • Enhanced international sales in USA for YelloPort+ resource • Elite to drive strong European • New product lines for UK sales. • Expect upl
Slide 19: Future Plans – M&A
Future Plans – M&A 19 Criteria • Focus on building product portfolio • Prefer manufacturing/design element with IP • Early stage acceptable but not pre-revenue • Geographical expansion attractive, especially US and/or Europe Notes
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