Slide 1: MicroPort 2017 Annual Earnings Release
MicroPort™ 2017 Annual Earnings Release
Slide 2: 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,
Slide 3: Agenda
1 Annual Results Highlights 2 Financial Review 3 Business Review 4 Outlook 5 LIVANOVA CRM Acquisition 6 Appendix – Financial Statement
Slide 4: 2017 Result Highlights
2017 Result Highlights Financial Results(YoY % Growth) 2017 Results Highlights USD: million Revenue Net Profit attributable Revenue: $ 444.2M, 14.7% YOY↑, underpinned by robust growth of to equity shareholders key segments and core products Cardio: 21.5% YOY↑, among which Firehawk™ 61.1% YOY↑ in
Slide 5: 2017 Product and Pipeline Progress
2017 Product and Pipeline Progress •Firefighter™ PTCA Balloon Catheter • Reewarm™ Peripheral Balloon •FireMagic™ 3D Ablation Catheter • Procotyl™ Prime Acetabular Cup •PathBuilder™ Transseptal Guiding •Outstanding results of Target AC clinical Dilation Catheter System trial with 99.9% strut coverage
Slide 6: 2017 Financing and Investment
2017 Financing and Investment Strategic Development - Positioning for Long-term Success Acquired LivaNova’s CRM Business for $190 million* MicroPort EP was quoted on the NEEQ on Strengthen leadership position in cardiovascular device market in China August 15, which is expected to provide a good
Slide 7: Agenda
1 Annual Results Highlights 2 Financial Review 3 Business Review 4 Outlook 5 LIVANOVA CRM Acquisition 6 Appendix – Financial Statement
Slide 8: Consolidated Financial Performance
Consolidated Financial Performance Revenue Gross Profit Margin USD: million USD: million 444 Non-Ortho 390 +15% 2 percentage points 72% Ortho +24% 220 180 70% 210 +7% 224 2016 2017 2016 2017 Group revenue up 15% excl. FX, 14% as reported Gross Margin improved by 2 percentage points Operating Expense
Slide 9: Operating Expense
Operating Expense Sales and Marketing Expenses Administrative Expenses Research and Develop. Expenses USD: million 32.9% USD: million 16.5% USD: million 13.3% 13.1% 31.0% 15.0% 128.5 7% 137.8 4% 12% 64.2 66.8 58.2 51.9 2016 2017 2016 2017 2016 2017 S&M % of sales G&A % of sales R&D % of sales Perc
Slide 10: Cashflow Summary
Cashflow Summary Net Cashflow from Net Cashflow from Net Cashflow Operating Activities Investing Activities USD: million USD: million USD: million 14m 3m 3m 97 83 83 86 28 31 2016 2017 2016 2017 2016 2017 Net operating cash inflow Net investing cash outflow Net cash inflow increased by increas
Slide 11: Agenda
1 Annual Results Highlights 2 Financial Review 3 Business Review 4 Outlook 5 LIVANOVA CRM Acquisition 6 Appendix – Financial Statement
Slide 12: Orthopedics Business - Non China
1. Orthopedics Business - Non China Revenue Revenue by Geographic Areas USD: million USD: million 6.2% YOY Highest Revenue Growth in Decade US core ↑ 10.5% EMEA Subs Japan ↑9.3% 6.2% Latin America ↑ 6.1% 600 1.0% 15.0% 3~4 times of US France ↑11% and reversing ~5 years of -8.5% -4.1% 10.0% 5.0% Aust
Slide 13: Orthopedics Business - China
1. Orthopedics Business - China Revenue 2017 SuperPathTM and EvolutionTM USD: million 第二级 Hospital Coverage SuperPath™ Surgical Cases 225 28.3% 第三级 13.4 SuperPath 1549 China Ortho Revenue 168 1332 10.5 第四级 1.1 Evolution Spine & Trauma 1.1 OrthoRecon 第五级 99 12.3 9.4 38 12 7 20 2016 2017 2014 2015 201
Slide 14: Cardiovascular Business
2. Cardiovascular Business Revenue of Cardiovascular Business Domestic Sales Growth by Products USD: million 250 USD: million Global Revenue : 22% ↑; Domestic DES: 20% ↑; Overseas DES: 25.1% ↑ 200 166 154 150 122 136 128 111 115 110 117 110 101 105 97 41 96 26 100 12 154 3 110 117 128 50 95 100 105
Slide 15: Cardiovascular Business - International Business
2. Cardiovascular Business- international business Overseas DES Revenue Promising Results of Target AC Clinical Trial USD: million 25.1% 53.3% 2014 2015 2016 2017 2018 2019 2020-21 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1H 2H 1H 2H Q1 Q2 Q3 Q4 9.92 Design Planni
Slide 16: Endovascular Business
3. Endovascular Business Revenue Sales Growth by Products USD: million USD: million 10% 0.0 42% 31% 2% 12.7 5.0 33% 0.0 24.8 9.0 5.0 18.6 0.0 15.1 5.0 11.9 12.9 10.1 4.1 4.5 8.0 8.7 3.2 0.0 2.4 2.5 2.5 5.0 1.3 1.2 - 2010 2011 2012 2013 2014 2015 2016 2017 HT HBL HBB AB Surgical 2016 2017 Extensive P
Slide 17: Neurovascular Business
4. Neurovascular Business Revenue Sales Growth by Products USD: million USD: million Ischemic Hemorrhagic 55% 36% 13.5 52% 8.0 8.7 5.9 7.3 5.8 4.1 4.3 2.7 2.6 3.1 2.0 2010 2011 2012 2014 2014 2015 2016 2017 APOLLO™ WILLIS™ Revenue 2016 2017 Pipeline -- Full range of solutions Highlights Product Name
Slide 18: Electrophysiology Business
5. Electrophysiology Business Revenue Sales Growth by Products USD: million USD: million 44% 17% 33% 44% Total: 39% ↑; Domestic: 36% ↑; Overseas: 65% ↑ 2016 4.4 2017 1.1 3.1 3D RF 0.7 2.4 0.6 0.6 8.3 1.6 6.1 1.2 1.4 1.2 3.7 4.7 0.9 2.7 0.2 0.8 1.4 2010 2011 2012 2013 2014 2015 2016 2017 RF Diagnosti
Slide 19: Achievements Gained by MicroPort China JV
6. Achievements Gained by MicroPort China JV Serve China Rega™ Family Pacemaker • Feb. 2015, Sales & Marketing team established 1st Domestically Made PM with world class • About 3,000 pts served within 3 years quality • 120% growth on an annual basis • Actively participating academic events • Promot
Slide 20: Agenda
1 Annual Results Highlights 2 Financial Review 3 Business Review 4 Outlook 5 LIVANOVA CRM Acquisition 6 Appendix – Financial Statement
Slide 21: Outlook 2018 to 2020
Outlook 2018 to 2020 Continuous Product Pipeline Fueling Long-term Growth Domestically made knee Domestically made hip Domestically made Domestically made Orthopedics system system surgical instrument for surgical instrument for knee system hip system VitaFlow™ Firehawk™ Firefighter™ NC CE Firefight
Slide 22: Agenda
1 Annual Results Highlights 2 Financial Review 3 Business Review 4 Outlook 5 LIVANOVA CRM Acquisition 6 Appendix – Financial Statement
Slide 23: History of LivaNova CRM Business
1. History of LivaNova CRM Business ~ US$1 billion of investment and >1 million patients implanted globally over nearly 4 decades. • Sorin & Cyberonics merge to form LivaNova Launched the 1st pacing mode to • Europian and Japanese Launched 1st dual chamber pacemaker maintain 99.9% intrinsic Launched
Slide 24: Complete Product Portfolio
2. Complete Product Portfolio Low Voltage High Voltage Leads/Other Pacing Leads Products Defibrillation Leads Diseases Bradycardia Heart Failure Tachycardia LV Leads Programmer Pacing Remote Monitoring Therapy Resynchronization Arrhythmia Defibrillation Assessment • Unique size and longevity • World
Slide 25: CRM Market Overview
3. CRM Market Overview Global CRM Market China CRM Market 第三级 第二级 Pacemaker ICD CRT 第四级 300,000 1600 第三级 120,000 400 140,000 400 30% 第五级 250,000 1400 120,000 第四级 350 100,000 350 35% 200,000 1200 100,000 1000 300 80,000 第五级 250 300 250 Pacemaker 150,000 80,000 800 60,000 200 200 60,000 600 150 CRT-P
Slide 26: Agenda
1 Annual Results Highlights 2 Financial Review 3 Business Review 4 Outlook 5 LIVANOVA CRM Acquisition 6 Appendix – Financial Statement
Slide 27: Appendix I - Consolidated Income Statement
Appendix I- Consolidated Income Statement (USD '000) 2017 2016 Flux % Revenue 444,190 389,921 14.0% Cost of sales (125,793) (118,243) 6.4% Gross profit 318,397 271,678 17.2% Other revenue & net gain/(loss) (2,540) 20,677 -112.3% Research and development costs (58,150) (51,897) 12.0% Distribution cos
Slide 28: Appendix II - Consolidated Balance Sheet
Appendix II- Consolidated Balance Sheet USD'000 31 Dec 2017 31 Dec 2016 Fixed assets 304,403 270,243 Intangible assets 83,904 68,152 Prepayments for fixed assets 2,491 2,010 Goodwill 54,458 54,458 Interest in associate 13,998 11,432 Interest in joint venture 197 676 Available-for-sale financial asse
Slide 29: Appendix III - Condensed Consolidated Cash Flow Statement
Appendix III - Condensed Consolidated Cash Flow Statement (USD '000) 2017 2016 Flux % Cash generated from operations 107,437 89,875 20% Net income tax paid (10,251) (7,341) 40% Net cash from operating activities 97,186 82,534 18% Net cash from investing activities (86,170) (82,811) 4% Net cash from
Slide 30: MicroPort - The Patient Always Comes First
MicroPort™ The Patient Always Comes First