Oxford Nanopore Technologies Plc · LSE:ONT
Oxford Nanopore Technologies — H1 2022 Earnings Presentation
33 slides from Oxford Nanopore Technologies's earnings presentation, Sep 13, 2022
Slide 1: Our goal: to enable the analysis of anything, by anyone, anywhere
Our goal: to enable the analysis of anything, by anyone, anywhere THE MINION MK1C: PORTABLE, CONNECTED SEQUENCING + ANALYSIS + SCREEN 13 1 September 2022 | Interim Results
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Oxford Nanopore Technologies plc (“Oxford Nanopore”) for information purposes only and does not constitute an offer of, or solicitation to purchase or subscribe for, any securities in which such offer or solicitation is unlawful or to any person to w
Slide 3: Agenda
AGENDA Introduction – Gordon Sanghera, CEO HY22 Financial review – Tim Cowper, CFO HY22 Business review – Gordon Sanghera, CEO
Slide 4: Continued robust underlying growth in core LSRT business
Continued robust underlying growth in core LSRT business Revenue +34% All figures in £m LSRT revenue Core LSRT business 133.7 6.7 122.3 LSRT revenue 113.9 £70.6m (HY21: £52.6m) 51.8 48.3 COVID-19 sequencing revenue ~£15-18m (HY21: ~£6-8m) 127.0 59.0 6.4 Revenue from the EGP1 65.5 70.6 £5.8m 52.6 (HY
Slide 5: HY 2022 highlights
HY 2022 highlights GROWING, DIVERSE USER OPERATIONAL AGILE COMMUNITY GROWTH INNOVATION >7,300 active customer accounts1 Strong financial position First early access P2 solo shipments £602.6m3 cash Rapid increase in publications Further chemistry and kit upgrades Continued scale-up of manufacturing >
Slide 6: Innovation drivers of growth
Innovation drivers of growth PLATFORM UPGRADE: Q20+ PROMETHION UPGRADES P2 LAUNCH SHORT FRAGMENT MODE ANY read length: R10.4.1 pore and Kit 14: Broadening PromethION base: Hardware and compute: Generate over 100 million reads / Nanopore high outputs with raw read P2 from only $10,455: accessible to
Slide 7: HY22 Financial Review
HY22 Financial Review Tim Cowper, CFO
Slide 8: HY22 Financial highlights
HY22 Financial highlights1 ➤ Core LSRT revenue up 34% to £70.6m Total revenue £122.3m including DHSC settlement. Core revenue inline with expectations; FY22 guidance unchanged ➤ LSRT gross margin up 3.7pts to 54.8% In line with expectations driven by recycling of electrical components, improvements
Slide 9: Continued robust underlying growth in core LSRT business
Continued robust underlying growth in core LSRT business Revenue +34% All figures in £m LSRT revenue Core LSRT business 133.7 6.7 122.3 LSRT revenue 113.9 £70.6m (HY21: £52.6m) 51.8 48.3 COVID-19 sequencing revenue ~£15-18m (HY21: ~£6-8m) 127.0 59.0 6.4 Revenue from the EGP1 65.5 70.6 £5.8m 52.6 (HY
Slide 10: Core LSRT revenue growth in HY22 driven by increased utilisation
Core LSRT revenue growth in HY22 driven by increased utilisation £70.6m 5.3 +58% £52.6m 3.4 Increased utilisation reflected in strong consumables revenue 47.3 +36% growth 34.7 Starter pack revenue driven by both new customer acquisition and customer expansion 18.0 +23% 14.6 HY21 HY22 Starter Packs C
Slide 11: LSRT revenue growth underpinned by expansion and diversification of user base
LSRT revenue growth underpinned by expansion and diversification of user base S1 (<$25k) S2 ($25k-$250k) S3 (>$250k) +16% +36% +94%1 £24.4m £24.6m £19.5m £5.8m £18.0m £14.0m £9.8m £12.1m £18.8m £9.7m LSRT Revenue (excl. EGP) HY21 HY22 HY21 HY22 HY21 HY22 EGP revenue Revenue from indirect customers w
Slide 12: Revenue growth diversified by geography
Revenue growth diversified by geography LSRT revenue by geography All figures in £m 23.3 Strong growth in Americas and Europe 21.4 reflects increase in commercial 19.0 resources 16.0 14.9 RoW revenue reflects strong COVID-19 sequencing business in China HY21 11.3 HY22 10.3 UAE impacted by £4m year-o
Slide 13: Improving margins in core LSRT business
Improving margins in core LSRT business LSRT Gross profit +3.7pts 54.8% Total Gross profit (including DHSC) increased from £30.2m to £78.0m 51.1% Total Gross margin (including DHSC) increased from 51.2% to 63.7% £26.9m £38.7m HY21 HY22 13
Slide 14: Continued investment in innovation and commercial infrastructure
Continued investment in innovation and commercial infrastructure HY22 HY21 £m £m Adjusted Research and development expenses 34.6 24.2 Capitalised development expenses 9.0 4.3 Total R&D and capitalised development expenses 43.6 28.5 Employers’ social security taxes on pre-IPO share awards (9.4) 6.4 L
Slide 15: Adjusted EBITDA
Adjusted EBITDA HY22 HY21 £m £m Loss before tax (27.6) (44.4) Depreciation & Amortisation 16.1 12.0 Other (0.2) 0.4 EBITDA (11.7) (32.0) Founder LTIP 35.4 0.9 Employers Social Security on pre-IPO Share Awards (20.4) 11.3 Settlement of DHSC COVID-19 testing contract (37.9) 0.0 Other 0.0 0.5 Adjusted
Slide 16: Strong balance sheet
Strong balance sheet HY22 FY21 £m £m Non-current assets 89.0 91.3 Increase in inventory reflects higher stock levels of core components to manage global Current assets supply chain risk Inventory 73.1 63.1 Trade and other receivables 54.9 54.8 R&D tax credit recoverable 5.6 14.3 £602.6m Assets held
Slide 17: Financial guidance; reaffirming FY22 and FY23 targets
Financial guidance; reaffirming FY22 and FY23 targets FY22 revenue guidance accounts for an FY 2022 LSRT revenue: £145m to £160m expected decline in COVID-19 sequencing Guidance No change revenue in HY22 and £15-20m of revenue from the EGP, the Group’s largest customer LSRT revenue: £190m to £220m F
Slide 18: HY22 Business Review
HY22 Business Review Gordon Sanghera, CEO
Slide 19: Highly differentiated products driving increased adoption
Highly differentiated products driving increased adoption Electronic sensing platform Native DNA/RNA delivering enabling: information rich data: Accessibility: Of any read length: MinION from $1,000 From 20 bases Price per Gb from $2-3 to 4 mega bases Real-Time: with strong performance across: Rapid
Slide 20: Richness of content delivering complete genomes
Richness of content delivering complete genomes Today, traditional SBS enables: Nanopore additionally enables: Single Nucleotide Variants “We identified 2,855 Methylation dark CDS regions across 748 • e.g. fragile x syndrome protein-coding genes that were dark • DNA methylation patterns • e.g. Sickl
Slide 21: Methylation detection in cell free DNA
Methylation detection in cell free DNA A new paradigm with Remora and Short Fragment Mode INITIAL CLIVEOME DATA UNCOVERS STANFORD: SHOW SIGNIFICANT VARIANCE IN cfDNA METHYLATION NUCLEOSOME FOOTPRINT PATTERNS BETWEEN CANCER SAMPLES AND HEALTHY CONTROLS1 ‘Whilst SFM is Study shows higher variance in d
Slide 22: Rapid, distributed pathogen sequencing for public health decision making
Rapid, distributed pathogen sequencing for public health decision making …and beyond public health into potential management of infectious disease RAPID PNEUMONIA METAGENOMICS1 AMR TUBERCULOSIS OUTBREAK SURVEILLANCE Pneumonia affects 10-30% of Monkeypox – from one case in ventilated patients, drives
Slide 23: Continuing to break boundaries
Continuing to break boundaries And taking sequencing to the heart of the sample TELOMERE-TELOMERE PLANTS OCEAN X RNA IN SPACE • The ISS continues to track its surfaces • Highly contiguous assembly of maize in • Sequencing at depth takes on new as we look to broadening boundaries of collaboration bet
Slide 24: We are at the beginning of our transformational journey
We are at the beginning of our transformational journey DISCOVERY TRANSLATION TRANSLATION TRANSLATION TRANSLATION SCIENCE TO HUMANS TO PATIENTS INTO PRACTICE TO COMMUNITY Multiple P48 & P24 P48 installations Move to specialist Deploy in most hospitals Next generation of & P24 centres healthcare Enab
Slide 25: 2022 outlook
2022 outlook Commercial Innovation Operations Duplex Remora Low Noise methylation Upgrade Increasing Expand teams SFM logistics Geographically footprint Q20+ Chemistry A100 Duplex Q30 Deepen customer compute Focus on facing teams Kit 14 production (sales, TS, CS) automation P2 Continue to R10.4.1 So
Slide 26: Appendix
Appendix QO NANOPORE
Slide 27: Strong growth in active customer accounts
Strong growth in active customer accounts 30 Jun 2022 31 Dec 2021 Change S1 (<$25k) Number of active customer accounts 6,350 5,501 +15% Avg. Revenue per customer account ($000s) 5.5 5.8 (5)% S2 ($25k-$250k) >7,300 active customers2 Number of customer accounts 912 782 +17% Avg. Revenue per customer a
Slide 28: Summary income statement
Summary income statement HY22 HY21 £m £m Revenue 122.3 59.0 Cost of Sales (44.4) (28.7) Gross profit 78.0 30.2 Gross margin % 63.7% 51.2% Operating expenses Research and development expenses (25.2) (30.6) Selling, general & administrative expenses (75.7) (42.8) Loss from operations (23.0) (43.2) Oth
Slide 29: Introduction to Oxford Nanopore Technologies
Introduction to Oxford Nanopore Technologies Single molecule sensing Agile innovation 1 platform Building on DNA/RNA to enable Delivering continuous improvement and intellectual property creation 4 the multi-omics world of tomorrow Current DNA/RNA investment is poised to Sequencing market Scaled ope
Slide 30: Platform upgrade to Q20+ with Kit 14 and R10.4.1 release
Platform upgrade to Q20+ with Kit 14 and R10.4.1 release Duplex data shown to NANOPORE ACCURACY EVOLUTION IN 2022 be extremely accurate Kit 14 Duplex Q30 Kit 14 260 bps Over 99% Kit 14 400 bps Over 99% R9 chemistry Kit 14 showing high outputs in field 30
Slide 31: Technology enablers for growth
Technology enablers for growth Embedding capabilities into simple user workflows NANOPORE INFORMATION RICH DATA …SCALABLE, ACCESSIBLE AND REAL-TIME ANY Short Released in MinKNOW Fragment Fragment Software Length mode March 2022 20 base pairs to…4 Mb + “ultra-long” Full Biology Available Bioinformati
Slide 32: We are at the beginning of our transformational journey
We are at the beginning of our transformational journey DISCOVERY TRANSLATION TRANSLATION TRANSLATION TRANSLATION SCIENCE TO HUMANS TO PATIENTS INTO PRACTICE TO COMMUNITY Next generation of healthcare Cancer 2.0 Ultra-rapid WGS Liquid biopsy Intraoperative DNA Prepare the digital for MRD monitoring
Slide 33: Thank you
Thank you The content in this presentation should not be reproduced without permission of the speaker. Oxford Nanopore Technologies, the Wheel icon, EPI2ME, Flongle, GridION, Metrichor, MinION, MinKNOW, Plongle, PromethION, SmidgION, Ubik, and VolTRAX are registered trademarks of Oxford Nanopore Tec
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