Slide 1: Bactiguard Q1 2020
Bactiguard Q1 2020 Investor presentation - May 13th 2020 Cecilia Edström, CEO Lina Arverud, acting CFO 1
Slide 2: Financial highlights
Financial highlights Strongest 1st quarter performance to date • Q1 revenues of MSEK 48.1 (33.9) – growth of 42% (36% currency adjusted) • BIP sales of MSEK 16.2 (3.1) – boost in March, driven by increased need for infection prevention • EBITDA of MSEK 14.4 (7.2) • EBITDA margin of 30% (21%) • Net p
Slide 3: Operational highlights
Operational highlights Increased need for infection prevention Significant events in the quarter • Completion of Vigilenz acquisition • Swedish launch of HYDROCYN aqua® in mid-March • Orders at a total value of SEK 20 million in first few days Significant events after the quarter • Launch of BIP Fol
Slide 4: Profitable growth
Profitable growth 60 000 100% 250 000 100% 90% 208 134 90% 50 000 48 105 193 929 80% 200 000 80% 70% 163 200 70% 40 000 32 508 33 900 60% 150 000 60% 30 000 50% 50% 40% 100 000 32% 33% 40% 30% 20 000 30% 30% 21% 20% 50 000 14% 20% 10 000 6% 10% 10% 0 0% 0 0% Q1 2018 Q1 2019 Q1 2020 2018 FY 2019 FY 2
Slide 5: Covid-19 pandemic
Covid-19 pandemic Source: https://www.scientificanimations. 5 https://commons.wikimedia.org/w/index.php?curid=86358105
Slide 6: Covid-19 impact
Covid-19 impact Differences in demand for medical devices Increased demand for: Reduced demand for: • Urgent need of protective equipment, • Elective surgery – incl. orthopaedics consumables, infection control • Expensive, non-critical tools and • Ventilators, ICU equipment equipment • Basic supplie
Slide 7: Well timed acquisition of Vigilenz
Well timed acquisition of Vigilenz • Completed the acquisition by end of February • Top-line opportunities and synergies – footprint and product portfolios • Launched HYDROCYN® aqua in Sweden mid-March • Orders of over SEK 20 million in first few days of launch • Air bridge for supplies from Malaysi
Slide 8: Bactiguard Infection Protection
Bactiguard Infection Protection Trends & development - BIP portfolio • Covid 19 – urgent need for infection prevention • Increased demand for ETTs and discinfectants • Launch of HYDROCYN aqua® and BIP Foley TempSensor • Broad portfolio for infection control and advanced wound care • More attractive
Slide 9: Licensing business
Licensing business Development and trends • Increasing interest and need for infection prevention BD (C.R. Bard) Well Lead Medical • Stable recurring revenues from Becton, Dickinson & Company (BD) • Zimmer Biomet project on plan Focus on regulatory process Zimmer Biomet Smartwise Sweden AB Miles
Slide 10: My first 100 days as CEO
My first 100 days as CEO Bactiguard enters new development phase • Covid-19 has changed the way we operate and opened new opportunities • Infection prevention – an increasingly urgent global issue and opportunity for growth • Considerable potential for new license applications and partnerships • Wel
Slide 11: Financial update
Financial update Lina Arverud, acting CFO 11
Slide 12: Our business model
Our business model Two lines of business License agreements for various Proprietary product portfolio – applications with Bactiguard sold through distributors technology 12
Slide 13: Sales growth and profitability
Sales growth and profitability RTM 2020 • Revenue Growth +28% • Stable recurring licensing revenues from BD • Growing BIP revenues • EBITDA margin 33% 13
Slide 14: Revenue development
Revenue development Supplied products MSEK Jan-Mar Jan-Mar Full year RTM 2020 2019 2019 2020 • Somewhat higher volumes from BD and License revenues 27,8 26,9 113,3 114,1 New license revenues - 1,1 31,5 30,4 a favourable dollar exchange rate Sales of BIP products 16,2 3,1 40,2 53,3 • No new license r
Slide 15: Revenue distribution
Revenue distribution Income distribution 15
Slide 16: Financial overview
Financial overview 2020 2019 Full MSEK Q1 RTM Q1 Q2 Q3 Q4 year Revenues 48,1 208,1 33,9 33,0 67,2 59,8 193,9 EBITDA 14,4 68,8 7,2 5,7 36,5 12,2 61,6 EBITDA margin % 30% 33% 21% 17% 54% 20% 32% Depreciations -10,5 -42,1 -10,6 -10,5 -10,6 -10,5 -42,1 whereof depreciation technology -6,1 -24,1 -6,0 -6,
Slide 17: Cash flow and liquidity
Cash flow and liquidity • Negative operating cash flow for Q1 of MSEK -3.5 (-6.5) • Net Cash position of MSEK 19.7 (3.6) • Liquidity MSEK 49.7 • The Vigilenz acquisition was partly financed by debt and issue of new shares • The bank facility with SEB was increased and extended until February 2023 17
Slide 18: Financial targets
Financial targets • Average sales growth of 20% per annum for a 5-year period, with 2015 as the base year – starting point MSEK 118.5 • EBITDA margin of at least 30% at the end of the 5-year period (by 2020) • Equity ratio of at least 30% • Over time uphold a dividend policy of 30-50% of net profit,
Slide 19: Clear growth strategy
Clear growth strategy We are contributing to the UN Sustainable Development Goals 2030 SAVE LIVES REDUCE CO ST S REDUCE T HE USE O F ANT IBIO T ICS VALUE Broaden portfolio • Develop new license applications Licensing • Expand BIP portfolio • 1-2 new deals per year • Selective acquisitions BIP portfo
Slide 20: Concluding remarks
Concluding remarks Bactiguard enters new development phase • Covid-19 has changed the way we operate and opened up new opportunities that will remain beyond the pandemic • Infection prevention – an increasingly urgent global issue and opportunity for growth • Considerable potential for business expa
Slide 21: Questions & Answers
Questions & Answers Cecilia Edström CEO Phone +46 8 440 58 80 cecilia.edstrom@bactiguard.se Lina Arverud Acting CFO Phone +46 8 440 58 80 lina.arverud@bactiguard.se 21
Slide 22: Upcoming financial reports
Upcoming financial reports August 13, 2020 Interim report for Q2 November 05, 2020 Interim report for Q3 22