Covalon Technologies Ltd. · TSXV:COV
Covalon Technologies — Shareholder Meeting (March 2022)
29 slides from Covalon Technologies's shareholder meeting presentation, Mar 9, 2022
Slide 1: 2021 Annual Shareholders Meeting
2021 Annual Shareholders Meeting March 9th 2022 Brian Pedlar, CEO TSX-V: COV OTCQX: CVALF www.covalon.com | 1-877-711-6055 Millions of Covalon products are used every year by clinicians in hospitals around the world to help protect patients from infection.
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information Certain statements included in this Memorandum may be considered forward-looking statements. These forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “estimate”, “exp
Slide 3: Covalon's Infection Prevention Technologies Save Lives
Covalon’s Infection Prevention Technologies Save Lives Covalon is an innovation-driven medical device company, with a strong portfolio of patented dressings and technology that make it easier for health care providers to protect patients from infection and help patients heal. Whether suffering from
Slide 4: 2021 Financial Highlights
2021 Financial Highlights TSX-V: COV OTCQX: CVALF
Slide 5: Fiscal 2021 Financial Results – Key Highlights
Fiscal 2021 Financial Results – Key Highlights ▪ Year-end net profit of $23.5 million or $0.91 per share which Revenues includes net income from the sale of the AquaGuard operations $19.6M +45% ▪ Revenue from continuing operations increased 45% to $19.6 million for the year, compared to $13.5 millio
Slide 6: Fiscal 2021 Income Statement Highlights
Fiscal 2021 Income Statement Highlights Revenues Gross Profit Adjusted Gross Margin(1) $19.6M +45% $9.7M +109% $10.3M +48% 50% +16 ppts 53% +1 ppts Primarily driven by an increase Primarily driven by inventory Primarily due to impact of in Collagen and IV Clear product adjustments and re-work costs
Slide 7: Strong Track-Record of Revenue Growth from Continuing Operations
Strong Track-Record of Revenue Growth from Continuing Operations Historical Revenue Profile – Continuing Operations (C$MM) $21.8 $20.6 $19.6 45% Revenue Growth FY2021 $13.5 FY2019 FY2020 FY2021 LTM Pre – COVID 19 Recovery and Growth Commentary • Revenue is presented for continuing operations and exc
Slide 8: Revenue Profile by Geography – Continuing Operations
Revenue Profile by Geography – Continuing Operations Historical Revenue Profile – Continuing Operations (C$MM) $21.8 $20.6 $19.6 44% $1.2 $2.4 $2.3 US Revenue Growth $4.5 FY2021 $13.5 $8.8 $4.5 ROW $2.3 Middle East $2.3 $15.2 USA $12.7 $10.7 $8.9 FY2019 FY2020 FY2021 LTM Pre – COVID 19 Recovery and
Slide 9: Gross Margins – Continuing Operations Are Improving
Gross Margins – Continuing Operations Are Improving Historical Gross Margin Profile – Continuing Operations (C$MM) 55% LTM Adjusted Gross Margin1 Commentary $20.0 60% • Gross margins have fluctuated due to inventory provisions and product re-work 55% costs. $18.0 52% 53% 50% • Product re-work costs
Slide 10: Operating Expenses
Operating Expenses Historical Operating Costs Profile – Continuing Operations (C$MM) Commentary • Operating costs associated with continuing operations declined in FY2021 due to: $12.0 $11.7 • Decrease in personnel cost $10.5 $9.7 $10.0 • Reduction of agency fees $8.9 • Government subsidies • Reduct
Slide 11: Balance Sheet
Balance Sheet Selected Balance Sheet Items – Continuing Operations (C$MM) Sept. 30, 2020 Sept. 30, 2021 Dec. 31, 2021 Cash $3.5 $25.5 $25.0 Current Assets $14.8 $37.4 $34.6 Total Assets $34.7 $40.6 $37.6 Debt ($17.7) $----- $---- Current Liabilities ($22.6) ($5.0) ($4.1) Total Liabilities ($25.6) ($
Slide 12: Helping Healthcare Providers Improve Patient Outcomes
Helping Healthcare Providers Improve Patient Outcomes The top priority of every healthcare worker is to provide the safest and best possible patient experience. Covalon’s priority is to help healthcare workers do that. Healthcare workers are stretched thin, but it doesn’t mean that care should be co
Slide 13: Advanced Wound Care Collagen Portfolio
Advanced Wound Care Collagen Portfolio Growth Drivers in 2022+ Someone You Know May Have a Non-Healing Wound ▪ Continued growth of collagen in United States ▪ Launched Collagen Powder in 2021 – anticipating contribution to revenue in 2022 ▪ Middle East collagen contracts returning to pre-COVID-19 le
Slide 14: Our Collagen Works
Our Collagen Works Real People, Life Changing Stories After 5 Weeks - Healed Diabetic Foot Ulcer Diabetic Foot Ulcer – Scheduled for Amputation After 6 Months - Healed
Slide 15: We Can Accomplish Much in 30 Days
We Can Accomplish Much in 30 Days 2019-12-01 2020-01-08 ColActive Plus Ag helps save limbs ▪ In 30 days, our dressings were able to help heal this patient’s infected foot wounds ▪ Thousands of patients are treated every year with Covalon’s advance wound care dressings ▪ There are millions more patie
Slide 16: Vascular Access and Surgical Infection Prevention Portfolio
Vascular Access and Surgical Infection Prevention Portfolio Growth Drivers in 2022+ ▪ Growth in IV Clear and VALGuard customer base in United States with cross selling opportunities ▪ Launch SurgiClear in 2022 to US hospitals based on strong clinical evidence and key reference accounts ▪ Additional
Slide 17: The world's only dual-antimicrobial silicone IV dressing
The world’s only dual-antimicrobial silicone IV dressing
Slide 18: The world's only dual-antimicrobial surgical site dressing
The world’s only dual-antimicrobial surgical site dressing
Slide 19: The world's only vascular access line-to-line connection barrier
The world’s only vascular access line-to- line connection barrier
Slide 20: Covalon's Products are Better for Patients
Covalon’s Products are Better for Patients Real People, Life Changing Stories Our Products Make a Difference To These Patients Covalon’s Silicone Adhesive 3M’s Adhesive
Slide 21: Patients and Their Families Love Covalon's Products
Patients and Their Families Love Covalon’s Products Real People, Life Changing Stories
Slide 22: Covalon Listens
Covalon Listens Innovation at Covalon doesn’t start behind the lab bench, it begins at the bedside. We listen to healthcare workers on the front lines and are a true partner in developing solutions that meet the needs of their patients and their care protocols.
Slide 23: Customer Profile – Texas Children's Hospital
Customer Profile – Texas Children’s Hospital Texas Children’s Hospital has been using our products as part of their Infection Prevention Protocols since 2018 • One of our first SurgiClear reference customers • Covalon team developed strong reputation with surgeons, OR director and Cardiac ICU RNs •
Slide 24: Protecting patients from the inside out.
Protecting patients from the inside out. We work with some of the largest Medical Device Organizations to incorporate our infection prevention technologies into their well-known devises, helping clinicians to better protect patients from the inside out. Our Medical Coatings Save Lives
Slide 25: Medical Device Coating Platform Growth Drivers in 2022+
Growth Drivers in 2022+ ▪ Large Medical Coating license agreement Medical Device announced in 2018 approximate 24 months from beginning of royalties Coating Platform ▪ Growing development pipeline of customer projects with opportunity for further license arrangements ▪ Growth of manufacturing coatin
Slide 26: Industry Leading Expertise and Experienced Leadership
Industry Leading Expertise and Experienced Leadership Kim Crooks Dr. Val DiTizio Jason Gorel Ron Hebert Alyssa Hryschysn Vice President, Chief Scientific Chief Financial SVP, VP Marketing Operations Officer Officer Marketing Greg Leszczynski Hector Padilla Brian Pedlar David Scherma Elaine Zhang Vic
Slide 27: Board of Directors
Board of Directors Abe Schwartz Amir Boloor Samantha Nutt Joseph Cordiano Ronald E. Smith Brian Pedlar
Slide 28: Questions?
Covalon Highlights World-class development lab with game- 1 changing IP and products Recognized by key hospitals, medical 2 companies as major player in infection control Questions? 3 Solid balance sheet with significant cash reserves and growing revenue 4 Massive upside with new products and expand
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