Microport Scientific Corp. · HKEX:853

Microport Scientific — H1 2014 Earnings Presentation

23 slides from Microport Scientific's earnings presentation, August 2014

  1. Slide 1: MicroPort 2014 1H Earning Release

    MicroPort 2014 1H Earning Release Stock Code: 00853(HK) Aug 2014

  2. Slide 2: 2014 1H Financial Results / Business Update

    2014 1H Financial Results Business Update *Appendix - Financial Statements 1

  3. Slide 3: 1H 2014 Company Highlights

    1H 2014 Company Highlights Interventional Cardiology Firehawk approved by CFDA in January Acquisition of DES assets from Cordis Firehawk China commercial launch at CIT Orthopedics Closing of the Acquisition of Wright Medical’s OrthoRecon Business MPO receives economic grant from State of Tennessee E

  4. Slide 4: Financial Summary 2014 1H

    Financial Summary 2014 1H Highlights Key Financial Summary Revenue: 183.8m, Y/Y ↑172% USD: million 2014 1H 2013 1H Flux - Non-Ortho business Y/Y ↑12% Revenue 183.8 67.7 172% - Newly acquired OrthoRecon business contribute 108.2m Cost (55.2) (12.8) 333% Gross Margin, 70% Gross Profit 128.6 54.9 134%

  5. Slide 5: Financial Performance

    Financial Performance Revenue & Gross Margin EBITDA Net Profit/(Loss) (USD million) (USD million) (USD million) 86% 87% 84% 84% 81% 81% 70% 183.8 150.4 151.7 135.7 117.6 90.6 72.7 63.9 57.2 67.7 51.8 46.5 38.8 42.1 41.4 30.1 24.0 21.7 19.2 14.8 (9.9) 2009 2010 2011 2012 2013 2013 2014 1H 1H 2009 201

  6. Slide 6: Diversification & Profitability

    Diversification & Profitability Diversification Profitability Profitability Orthopedics 1.5%  Gross Margin Others 20.2% 2013 1H 81% 68M Cardiovacular 70% 78.3% 2013 1H 2014 1H  Operating Expenses % of Revenue Cardiovascular, 31.9% 65% 2014 1H Orthopedics 184M 48% 59.4% Other 8.7% 2013 1H 2014 1H 5

  7. Slide 7: Operating Expenses

    Operating Expenses Distribution Costs Administrative Expenses Research and Development Costs (USD million) (USD million) (USD million) 34.9% 19.3% 19.9% 18.2% 16.2% 15.7% 18.6% 17.5% 15.4% 17.5% 17.7% 18.1% 16.9% 15.2% 12.4% 64.2 11.7% 11.2% 12.7% 12.3% 9.1% 9.6% 32.1 29.2 28.0 24.7 23.6 24.6 25.6 2

  8. Slide 8: Business Update by Segment

    Business Update by Segment 1 Orthopedics Business 2 Vascular Business 3 Electrophysiology Business 7

  9. Slide 9: Orthopedics Business - Company & Products

    1 Orthopedics Business - Company & Products Full Range of Products Pipeline Key Factors  OrthoRecon  Spine  Trauma MicroPort Orthopedics – the fifth largest multinational OrthoRecon business. The only company can offer a full product line covering hip and knee, spine, and trauma in China. Knees S

  10. Slide 10: Orthopedics Business - Strategy & Global Leverage

    1 Orthopedics Business - Strategy & Global Leverage Hips – Fast Recovery Knees – Patient Preference Linked R&D, Marketing, Clinical, & Regulatory Strategy North America International Japan Company Confidential 9

  11. Slide 11: Orthopedics Business - OrthoRecon Revenue

    1 Orthopedics Business - OrthoRecon Revenue OrthoRecon Revenue Trend 2014 1H OrthoRecon Revenue Mix (USD million) Other China 1.9% 2.1% Japan 19.5% 305.7 299.5 266.7 231.9 North Amercia 40.6% 117.8 108.2 EMEA 35.9% Under Wright Medical Ownership 2010 2011 2012 2013 2013 1H* 2014 1H * Jan. revenue is

  12. Slide 12: Orthopedics Business - OrthoRecon Expenses

    1 Orthopedics Business - OrthoRecon Expenses Sales and Marketing Cost Administrative Expense Research and Development Cost (USD million) (USD million) (USD million) 49% 46% 41% 41% 28% 39% 40% 22% 22% 17% 18% 7% 8% 9% 6% 6% 5% 5% 126 124 105 103 83 53 58 49 52 40 22 23 17 13 13 11 6 8 2010 2011 2012

  13. Slide 13: Orthopedics Business - Marketing

    1 Orthopedics Business - Marketing AAOS Annual Meeting in New Orleans MPO launch event in the US was at the world’s largest orthopedic conference. Highlights include an announcement of our new brand, a new booth and look, as well as an inaugural dinner event to showcase our new strategy to some of t

  14. Slide 14: Orthopedics Business – Medical Education/Training

    1 Orthopedics Business – Medical Education/Training US: State of the Art Solutions Meeting - June 26-28 in Chicago – 39 Health Care Practitioners attendees + Faculty – 310 people from 25 countries viewed the live surgery on line, resulting in 85 requests for information on SuperPATH® – 87.5% of atte

  15. Slide 15: Vascular Business - TES Firehawk Status

    2 Vascular Business - TES Firehawk Status Firebird2 Firehawk Update Assets purchase agreement on Jan 2014, acquired:  DES manufacturing related equipment and machinery;  DES-related patents & IP Commercially launched in CFDA approved in Jan, 2014 January 2009 CE submitted in Dec 2013 Constructed o

  16. Slide 16: Vascular Business - Endovascular Stent Graft

    2 Vascular Business - Endovascular Stent Graft TAA/AAA 2013 Market Share Products Profile (in terms of units implanted) Hercules T / Hercules B 30% International competitors Domestic competitors 20% 10%  Hercules Balloon Dilation Catheter received CFDA approval in 2013 0% Medtronic Metronic Cook Ot

  17. Slide 17: Vascular Business - Neurovascular

    2 Vascular Business - Neurovascular Dramatic Growth of Neurovascular in Revenue Products Already Received SFDA Approval 4.6 APOLLO - Ischemic 3.4 3.1  Vascular Reconstruction Device 2.8  Clinical Trial ongoing 2.2 1.9 1.4 2009 2010 2011 2012 2013 2013 2014 1H 1H Leading Position in Neurovascular s

  18. Slide 18: Electrophysiology Business

    3 Electrophysiology Business Dramatic Growth of Electrophysiology in Revenue Products with CE Certifications USD: million 3.0 FireMagic EasyFinder EasyLoop 2.2 1.6  Radiofrequency  Fixed or adjustable  Circumferential 1.2 Ablation Catheter Curved Mapping Pulmonary Vein 0.9 Catheter Mapping Cathet

  19. Slide 19: Appendix I - Consolidated Income Statement

    Appendix I - Consolidated Income Statement (USD '000) 2014 1H 2013 1H Revenue 183,795 67,678 Cost of sales (55,198) (12,753) Gross profit 128,597 54,925 Other revenue & net income 6,366 3,035 Research and development costs (22,819) (13,516) Distribution costs (64,151) (10,344) Adminnistrative expens

  20. Slide 20: Appendix II - Consolidated Balance Sheet

    Appendix II - Consolidated Balance Sheet USD'000 30 June 2014 31 Dec 2013 Fixed Assets & CIP & Prepay for FA 285,743 155,989 Intangible assets 60,331 34,280 Goodwill 73,531 25,577 Interest in joint venture 2,022 - Deferred tax assets 3,911 3,197 Other non-current receivables 7,352 Total non-current

  21. Slide 21: Appendix III - Condensed Consolidated Cash Flow Statement - Adjusted

    Appendix III - Condensed Consolidated Cash Flow Statement - Adjusted (USD '000) 2014 1H 2013 1H Cash generate from operations 6,252 31,830 Income tax paid (4,313) (2,950) Net cash generated from operating activities 1,939 28,880 Net cash (used in)/from investing activities* (314,085) (13,889) Net ca

  22. Slide 22: Disclaimer

    Disclaimer •This document is for information purposes only and does not constitute or form part of any offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for any securities of MicroPort Scientific Corporation, and no part of it shall form the basis of,

  23. Slide 23: Thank You

    Thank You The Patient Always Comes First

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