Selvita SA · GPW:SLV
Selvita SA — Q1 2022 Earnings Presentation
25 slides from Selvita SA's earnings presentation, May 31, 2022
Slide 1: Q1 2022 Financial Results
Q1 2022 FINANCIAL RESULTS 31 May 2022 This document is a translation of Polish original document
Slide 2: Disclaimer
Disclaimer This presentation ("Presentation") has been prepared by Selvita S.A. with its registered office in Cracow (the "Company") and is intended for informational purposes only. Its purpose is to present selected data on Selvita S.A. Group and its development prospects. The information contained
Slide 3: Selvita Group's Development in Q1 2022
Selvita Group's Development in Q1 2022 Very good financial results • Revenues: EUR 20.5m vs EUR 15.5m in Q1 2021 (+35%) • EBITDA1: EUR 6.0m (margin: 29.1%); Net result1: EUR 3.6m (margin: 17.7%) Presentation of development strategy and new goals • Following the achievement of goals of the previous s
Slide 4: Selvita Group at a glance in 2022
Selvita Group at a glance in 2022 6 locations 15 400 m² in PL, HR, UK and US research space ~750 40+ Including 7/10 largest, global customers countries biotech & pharma companies 900+ ~ 40% of scientists employees with a Ph.D title 300+ 46% MLN EUR market cap revenue CAGR in years 2014-2021 Selvita
Slide 5: Strategic goals 2022 - 2025
Strategic goals 2022 - 2025 Revenue Selvita as a leading global preclinical CRO providing services in >EUR 200m the field of drug discovery and development, accelerating access to new therapies for patients Comprehensive offer in the area of drug discovery and development 34% CAGR of revenues • Supp
Slide 6: Revenue growth strategy
Rozwój Revenue growth strategy organiczny Organic Growth • Continued dynamic organic growth, CAGR >23% • Planned increase in employment >70% • Construction of the second laboratory facility in Krakow • Expansion of the leased laboratory space in Zagreb and Poznan Acquisitions • Additional EUR 30-50m
Slide 7: Integration and preparation for further development
Integration and preparation for further development 50 years Fidelta as part of Selvita - one global brand, using the cummulative, of experience over 50 years of experience in drug discovery Common goal - to build comprehensive research capabilities bridging the gap between early drug discovery and
Slide 8: Business Development
» Selvita Business Development
Slide 9: Drug Discovery - strengthening the position on the CRO market
Drug Discovery - strengthening the position on the CRO market • Acquisition of Fidelta significantly improved Selvita's position on the CRO market o Expanding scientific competences (infectious diseases, inflammation, fibrosis) o Service chain extension (in vivo, pharmacology, translational research
Slide 10: Growth in Regulatory Studies
Growth in Regulatory Studies • The market has returned to the growths seen before the pandemic • Constantly expanded offer of services in the following areas: o Small molecule drugs - building scale by expanding cooperation with existing customers and acquiring new customers o Biologics / Biopharmac
Slide 11: Continuation of high rises in Ardigen
Continuation of high rises in Ardigen • Growing market and constantly expanding scale of Ardigen's operations help to attract new customers • Building sales team in the U.S. • Dynamic growth in the area of Digital CRO • Continuation of research and development in the field of immunology, microbiome,
Slide 12: Market perspective for Selvita Group
Market perspective for Selvita Group • Increased activity of venture capital funds, taking place of the public market (IPO) • Biotech companies have the cash resources of approximately 2-3 years • Pharmaceutical companies continue to work on new therapies in cooperation with CRO companies • U.S. com
Slide 13: Selvita development through M&A
Selvita development through M&A TARGET CRITERIA: Small and medium companies with a good track record that may Vertical Expansion require reorganization or have not built extended sales network to Combining CRO with CDMO activity. release their full potential Selvita as an end-to-end provider QUANTIT
Slide 14: Organic growth - construction of the Selvita Research Centre
Organic growth - construction of the Selvita Research Centre Q3 2021 PHASE I Groundworks Concrete structures Q4 2021 Q1 2022 PHASE II Steel structures Q2 2022 Facade and external infrastructure Ventilation and A/C installations Q3 2022 • Additional 4 000 m² of research space and over 250 new workpla
Slide 15: Financial results
» Selvita Financial results
Slide 16: Continued growth along with high margins in Q1 2022
Continued growth along with high margins in Q1 2022 EURm Revenues EBITDA1 Net result1 +35% +56% 20.5 +119% 6.0 3.6 15.5 3.9 1.7 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Profitability 25.2% 29.1% 10.9% 17.7% Dynamic organic growth, high EBITDA margin and net profit The main growth factor is th
Slide 17: Change in the allocation of the costs associated with the sales of services
Change in the allocation of the costs associated with the sales of services EBITDA margin for services executed in individual countries Backlog1 for services executed in Croatia as in May (EURm) Proportional breakdown of the sales costs Start of sales integration 30.8% 31.1% process 27.8% 28.1% 25.3
Slide 18: Services executed in Poland with a significant increase in profitability
Services executed in Poland with a significant increase in profitability Commercial Revenues1 (EURm) High increase in the revenues + 43% y/y, comparable to that observed in Q4’21 +43% • share of revenues from the USA (34%) and UK (19%) 9.8 7.0 Drug discovery services – continued dynamic development
Slide 19: Continuation of growth of the services executed in Croatia
Continuation of growth of the services executed in Croatia Commercial revenues (EURm) Further growth in revenues with a stable, high margin +22% 7.8 6.5 Maintaining margins while increasing sales costs Q1 2021 Q1 2022 One-off costs of approx. EUR 0.1m related to the launch of a new location (Hondlov
Slide 20: Further, dynamic development of Ardigen's operations
Further, dynamic development of Ardigen’s operations Commercial revenues (EURm) +60% Continued revenue growth with comparable margins 2.2 in Q1 2022 1.4 Q1 2021 Q1 2022 Further development of AI platforms - comparable costs of research and development operations EBITDA (EURm) Ardigen continues to de
Slide 21: High services backlog gives a promising outlook for 2022
High services backlog gives a promising outlook for 2022 Selvita Group backlog reported for current year, 58.7 as in May1 (EURm) 38% 1.5 6.5 43.6 6.2 1.1 111% 4.6 3.1 44.5 34.8 30% 2021 2022 Drug Discovery Regulatory Studies Ardigen Grants • Backlog for services executed in Poland: EUR 27.3m (+47% r
Slide 22: Financial situation of the Group allows for investments in further development
Financial situation of the Group allows for investments in further development Selvita Group net debt Structure of Selvita Group’s financial debt (as on 31.03.2022) (as on 31.03.2022) EURm Financial debt Cash Net debt 28.3% Selvita Group 38.3 19.6 18.7 51.0% EBITDA LTM1 20.4 20.7% Net debt/EBITDA LT
Slide 23: Summary
» Selvita Summary
Slide 24: Selvita Group on the path of dynamic growth
Selvita Group on the path of dynamic growth Very good profitability High margin for EBITDA and net profit High growth dynamics in Q1 and growing services backlog Promising outlook for 2022 New development strategy for 2022-2025 Planned three-fold increase in revenues, with a stable, high margin Stab
Slide 25: Thank you for attention!
THANK YOU FOR ATTENTION! Contact: ir@selvita.com /SelvitaGroup /company/selvita/ SelvitaKrakow