Sisram Medical Ltd. · HKEX:1696
Sisram Medical — H1 2018 Earnings Presentation
30 slides from Sisram Medical's earnings presentation, August 2018
Slide 1: 2018 Interim Results
Sisram Med (1696.HK) 2018 Interim Results August 2018
Slide 2: Agenda
• Business Performance Highlights • Business Environment • Sisram – a MedTech Group • 2018 Interim Results © 2018 Sisram Medical Ltd. All rights reserved 2
Slide 3: Business Performance Highlights
Business Performance Highlights © 2018 Sisram Medical Ltd. All rights reserved 3
Slide 4: Remarkable Achievements
Remarkable Achievements Revenues Revenues increased by 17.9% (YOY), amounting to US$78.2 136.9 • 110.4 118.2 million 78.2 66.3 • Worldwide sales increased between 7.8% and 40.3% per geographic segment Minimally-invasive products line sales increased by 28.3% - 2015 2016 2017 H1 2017 H1 2018 • highes
Slide 5: Business Environment
Business Environment © 2018 Sisram Medical Ltd. All rights reserved 5
Slide 6: The MedTech Industry, A Shining Star
The MedTech Industry, A shining Star • The MedTech industry demonstrates a dramatic positive incline in revenues and investments • The global MedTech industry generated US$364.4 billion in 2016 1 • Technavio’s market research predicts the global energy-based aesthetic devices market to grow steadily
Slide 7: Prominent Market Trends
3 Prominent Market Trends • The global body contouring market is expected to expand to US$8 billion by 2022, from US$5.3 Billion in 20161 • Dermatology Devices Market size was valued at US$8.4 billion in 2017 and is expected to witness over 9.5% CAGR from 2018 to 2024.…China is anticipated to witnes
Slide 8: Sisram – a MedTech Group
Sisram – a MedTech Group © 2018 Sisram Medical Ltd. All rights reserved 8
Slide 9: Sisram Medical is an Israeli company, incorporated in April 2013
Sisram Medical is an Israeli company, incorporated in April 2013, for the acquisition of Alma by Fosun Pharma, a leading health & medical industry group in the People’s Republic of China (PRC), and a subsidiary of Fosun International, an international Chinese conglomerate. 9 © 2018 Sisram Medical Lt
Slide 10: © 2018 Sisram Medical Ltd. All rights reserved
10 © 2018 Sisram Medical Ltd. All rights reserved
Slide 11: Global Competitive Landscape
Global Competitive Landscape Global Market Share by Revenue (2016) Sales by manufacturers regardless of sales channels (i.e. either directly to treatment providers or distributors) Total revenue: US$2,670m Estimated market share Ranking Company Headquarter by revenue, 2016 16.2% 1 Cynosure United St
Slide 12: PRC Competitive Landscape
PRC Competitive Landscape PRC Market Share by Revenue (2016) Sales by manufacturers regardless of sales channels (i.e. either directly to treatment providers or distributors) Total revenue: US$158.9m Estimated PRC market Ranking Company Headquarter 16.1% share by revenue, 2016 1 Sisram Israel 16.2%
Slide 13: Global Sales and Distribution Network
Global Sales and Distribution Network Positioning Location Strength Efficient mix of global sales and Worldwide sales network across Well-diversified and balanced distribution channels adapting to ~80 countries / jurisdictions geographic coverage different market dynamics EUROPE 39 Distributors Alma
Slide 14: R&D – Solid Pillar of our Success
R&D – Solid Pillar of our Success • Solid base of Research and Development • Leading the industry with the shortest time to market: 1-2 years vs. 3-4 years industry standard • Revolutionizing the industry: • 50+ different models of treatment systems • 100+ different models of applicators • 53 regist
Slide 15: R&D to Production & Commercialization
Business Model Overview R&D to Production & Commercialization Direct sales Product and Technology Concept Procurement, Treatment Generation, R&D Production and Distributors Providers and Regulatory Quality Inspection Approval Sub-distributors Specializing R&D teams per Production by forecast: Direct
Slide 16: Three Product Pillars: Surgical, Medical Aesthetics & Beauty
Three Product Pillars: Surgical, Medical Aesthetics & Beauty 16 © 2018 Sisram Medical Ltd. All rights reserved
Slide 17: Delivering Breakthrough Products, Considered the Gold Standard
Delivering Breakthrough Products, Considered the Gold Standard Around the World 17 © 2018 Sisram Medical Ltd. All rights reserved
Slide 18: Beauty: SPADEEP
Beauty: SPADEEP 18 © 2018 Sisram Medical Ltd. All rights reserved
Slide 19: Fosun Pharma's Value Chain
Fosun Pharma’s Value Chain Pharmaceutical Medical Distribution Healthcare R&D Manufacturing and Retailing Diagnosis& Devices Services Hospital Network of Fosun Pharma Suqian Zhongwu Hospital Grade A Class II General Hospital Yueyang Guangji Hospital Grade A Class II General Hospital Anhui Jimin Onco
Slide 20: The Management Team
The Management Team Liu Yi Lior Dayan Jianping Hua Chairman Chief Executive Officer Chief Financial Officer & Executive Director Ran Ezioni Avi Farbstein Chief Operating Officer Chief Strategy Officer © 2018 Sisram Medical Ltd. All rights reserved 20
Slide 21: 2018 Interim Results
2018 Interim Results © 2018 Sisram Medical Ltd. All rights reserved 21
Slide 22: Revenue Increased by 17.9% YOY, Minimally-invasive Pillar Registers the Highest Growth
Revenue Increased by 17.9% YOY, Minimally-invasive Pillar Registers the Highest Growth $110.4 $118.2 $136.9 $66.3 $78.2 Services and Others 8% 8.8 17.1 Minimally invasive 8.3 12% 7.9 9.8 14.2 7.7 10.0 7.4 Beauty 7% 6.2 9.1 4.5 7.1 5.6 101.2 4.4 84.7 88.2 Core 57.2 73% 50.2 2015 2016 2017 H1-2017 H1-
Slide 23: Revenue Increased by 17.9% YOY, Minimally-invasive Pillar Registers the Highest Growth
Revenue Increased by 17.9% YOY, Minimally-invasive Pillar Registers the Highest Growth Six months ended June 30 • Minimally invasive product line is picking-up, thanks to FemiLift WW demand and LipoLife FDA clearance • Sales of Services & Others capturing a larger portion 23 © 2018 Sisram Medical Lt
Slide 24: Geography Segmentation
Geography Segmentation Europe, North America and the PRC generated 69.3% of our revenues. This geographical span ensures we are well diverse and able to mitigate any geographical- economical risks as well as benefit from the global economic arisen. H1 2018 Breakdown YOY Growth – H1 2018 vs. H1 2017
Slide 25: APAC is Leading the Geo Segments Growth
APAC is Leading the Geo Segments Growth Six months ended June 30 • Europe, North America & the PRC generated 69% of our revenues • This geographical span ensures we are well diverse and able to mitigate any geographical-economical risks 25 © 2018 Sisram Medical Ltd. All rights reserved
Slide 26: Gross Profit Increased by 16%
Gross Profit Increased by 16% • Products sales gross margin is consistent with the corresponding reporting period • The slight decrease in gross profit margin between H1 2018 and H1 2017 is due to higher indirect costs associated with production ramp-up and additional investments aimed at facilitati
Slide 27: Expenses Breakdown
Expenses Breakdown • Selling and distribution expenses increased by 33.9%, due to growth in sales volume and boost in sales force in NA and India • Administrative expenses increased by 14% due to consulting fees facilitating future growth • Finance costs decreased from US$3.6 million in 2017 to US$0
Slide 28: Recent Launches – Body Contouring Focus
Recent Launches – Body Contouring Focus Accentuate A hands-free, stationary applicator designed for body contouring and skin tightening, incorporating AlmaWave 40.68 MHz technology. Launched on April 2018 Small Areas Treatment Kit Combined treatment using two distinct energy sources, each with its o
Slide 29: Thank You
Thank You Sisram Med (1696.HK)
Slide 30: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”) which have been prepared by Sisram Medical Ltd (the “Company”) do not constitute any offer or invitation to purchase or subscribe for any securities, and shall not form the basis for or be relied on in connection with any