Slide 1: Bactiguard Infection Protection Q3 presentation
Bactiguard Infection Protection Q3 presentation 7 November 2019
Slide 2: Financial highlights
Financial highlights Bactiguard’s strongest quarter to date • Q3 revenues of MSEK 67.0 (35.7) – all time high, increase mainly driven by new license agreement with Zimmer Biomet • BIP sales more than doubled to MSEK 8.7 (3.9) • EBITDA of MSEK 36.5 (7.9) • EBITDA margin of 54% (22%) • Net profit of M
Slide 3: License business
License business New agreement boosts revenues Q3 • License revenues of MSEK 54.4 (30.1) - 80% higher than in 2018 • BD revenues lower at MSEK 25.0 (27.0) - YTD revenues in line with 2018 • New license revenue of 29.4 MSEK (3 MUSD) from Zimmer Biomet • Zimmer Biomet deal confirms strength of Bactigu
Slide 4: BIP portfolio
BIP portfolio BIP sales more than doubled in the third quarter Q3 • BIP sales amounted to SEK 8.7 (3.9) million, an increase of 120% • YTD sales of MSEK SEK 14.9 (26.1) - not yet at the same accumulated level as last year • First Chinese order outside the initial agreement received in September - im
Slide 5: Strengthening the medical competence
Strengthening the medical competence Both in Executive Managment and on the Board MD PhD at Karolinska Dean Campus North, Institutet, Stockholm Karolinska Institutet, Stockholm Specialized in anesthesia and intensive care, Karolinska Senior Consultant Surgeon, University Hospital Karolinska Universi
Slide 6: License business
License business BD (C.R. Bard) Well Lead Medical • Foley catheters for the US, Japan and UK/Ireland • Foleys, CVCs and ETTs for China • Ambition to accelerate growth in China, while regulatory • Successful partnership since 1995 developments are shifting towards locally produced devices • Generatin
Slide 7: Benefits of a non-toxic, stable technology
Benefits of a non-toxic, stable technology Infection prevention Long-term Easier Multiple Safe and Low risk effect Biocompatible regulatory applications Effective path 7
Slide 8: Potential new applications for licensing or BIP portfolio
Potential new applications for licensing or BIP portfolio Global sales MUSD Orthopedic implants* 44 000 Trauma implants 7200 Advanced wound care 5 600 Coronary stents 5 500 Dental implants 4500 BIP portfolio Foley CVC ETT 1 800 Intermittent Urinary 1500 PIVC 1 400 Vascular Grafts 1 100 Ureteral sten
Slide 9: Challenging infections related to orthopedic implants
Challenging infections related to orthopedic implants • Infections related to orthopedic implants are complicated due to biofilm on the implant surface • Side effects and antibiotic resistance often make choice of antibiotic difficult • Many antibiotics have poor penetration of skeletal tissue which
Slide 10: Orthopedic market segments
Orthopedic market segments Total market USD 51 billion, whereof trauma USD 7 billion and above average growth Product Segment Performance: 2018 vs. 2017 ($Millions) 2018 Orthopaedic Product Sales by Market Segment Segment 2018 2017 % change Other; 10% Joint Replacement $18,919.7 $18,242.7 3,7% Spine
Slide 11: Three major players in orthopedics
Three major players in orthopedics Revenues and market shares % of Market Share 2018 DePuy Synthes; 17% Companies 2018 2017 % change DePuy Synthes $8,827.4 $8,987.9 -1,8% Zimmer Biomet $7,081.7 $6,964.4 1,7% All Others; 35% Stryker $7,029.2 $6,608.7 6,4% Smith & Nephew $3,456.6 $3,353.4 3,1% Zimmer
Slide 12: Financial review
& guard Financial review 12
Slide 13: Business model
Business model Two lines of business License agreements for various Proprietary product portfolio – sold through distributors applications with Bactiguard technology 13
Slide 14: Sales growth and profitability
Sales growth and profitability 14
Slide 15: Development in revenues from BIP products
Development in revenues from BIP products Supplied products • Revenues from BIP-products of MSEK 8.7 (3.9) in Q3 • Development in BIP sales still somewhat irregular • Not yet same volumes to China during 2019 as in 2018 15
Slide 16: Revenue distribution
Revenue distribution Income distribution 16
Slide 17: Financial overview
Financial overview 2019 2018 January- January- MSEK Q1 Q2 Q3 Q1 Q2 Q3 September September Revenues 35,1 34,1 67,0 136,2 33,0 52,4 35,7 121,0 EBITDA Margin % 20% 17% 54% 36% 6% 17% 22% 16% Adjusted EBITDA Margin % (IFRS 16) 13% 10% 51% 31% Depreciations* 10,6 10,5 10,6 31,6 8,7 8,9 8,1 25,8 whereof d
Slide 18: Cash flow and liquidity
Cash flow and liquidity Cash flow • Positive operating cash flow for Q3 of MSEK 22.0 (4.1), driven by payments from China • Net Cash position of MSEK 6.6 (8.4) • Liquidity MSEK 27.8 • Payment from Zimmer Biomet will further improve cash flow in Q4 18
Slide 19: Growth strategy
Growth strategy Value Broaden portfolio • Develop new license applications • Expand BIP portfolio Licensing • 1-2 new deals per year • CE mark for trauma implants important reference BIP portfolio • Increase in-market penetration • Strengthen clinical evidence • Add new markets in EU Time 19
Slide 20: Financial targets
Financial targets • Average sales growth of 20% per annum for a 5-year period, with 2015 as the base year – starting point MSEK 118.5 • EBITDA margin of at least 30% at the end of the 5-year period (by 2020) • Equity ratio of at least 30% • Over time uphold a dividend policy of 30-50% of net profit,
Slide 21: Concluding remarks
Concluding remarks Bactiguard’s strongest quarter to date • Zimmer Biomet deal boosts revenues • Confirms strength of Bactiguard technology in global context and new medical application for long term use • Paves the way for new applications • BIP sales more than doubled in the third quarter – not ye
Slide 22: Our Vision
Our Vision Eliminate healthcare associated infections to 1. save lives 2. reduce cost and 3. limit antimicrobial resistance, through preventive standards of care. 22
Slide 23: Bactiguard representatives
Bactiguard representatives Christian Kinch, CEO Switchboard +46 8 440 58 80 christian.kinch@bactiguard.se @ChristianKinch Cecilia Edström, CFO and deputy CEO Cell phone +46 72 226 23 28 cecilia.edstrom@bactiguard.se @EdstromCecilia 23