Microport Scientific Corp. · HKEX:853
Microport Scientific — FY2015 Earnings Presentation
26 slides from Microport Scientific's earnings presentation, March 2016
Slide 1: MicroPort 2015 Earning Release
MicroPort 2015 Earning Release Stock Code: 00853(HK) March, 2016
Slide 2: 2015 2H Company Highlights
2015 2H Company Highlights Corporate MicroPort® Science and Technology Innovation Platform Won the State Science and Technology Progress Award Four Regulatory Green Channel Granted: Tubridge™ Vascular Reconstruction Device, Reewarm™ PTX, Castor, and Columbus Interventional Cardiology DES Revenue Mai
Slide 3: Contents
2015 Financial Results Contents Business Update *Appendix - Financial Statements
Slide 4: Financial Summary 2015
Financial Summary 2015 Highlights Key Financial Summary Revenue: $375.8m, ↑6% • Non-Ortho business strong performance ↑18% USD: million 2015 2014 Flux • Ortho business turn around, ↑3% in constant Revenue 375.8 355.3 6% currency, offset by 5% unfavorable FX Cost (123.3) (112.0) 10% Gross Profit 252.
Slide 5: Revenue by Segment
Revenue by Segment Key Takeaways Excl. FX impact, Group Rev Y/Y ↑10%; Double digit growth seen in the segments of Cardio, Ortho China, Endo, EP and Neuro; All segments and regions show solid growth Y/Y except Orthopedics Japan. USD million Financial Year Ended Percent Change Orthopedics, in lo
Slide 6: Consolidated Financial Performance
Consolidated Financial Performance Revenue Gross Profit Margin USD: million 376 USD: million 355 Non-Ortho ↑18% Ortho ↓2% 68% 67% 145 171 210 205 2014 2015 2014 2015 In constant currency, Group’ revenue increased by 10%. GP margin slightly decreased by 1%. Operating Expenses Net Loss USD: million US
Slide 7: Operating Expenses
Operating Expenses Sales and Marketing Expenses Administrative Expenses Research and Develop. Expenses USD: million USD: million USD: million 37.6% 34.0% 19.9% 133.6 127.7 17.3% 16.1% 15.4% 70.8 65.0 60.4 54.6 2014 2015 2014 2015 2014 2015 S&M % of Sales G&A % of Sales R&D % of Sales S&M Y/Y decre
Slide 8: Business Update by Segment
Business Update by Segment 1 Orthopedics Business 2 Vascular Business 3 Electrophysiology Business 4 MicroPort Sorin CRM (MSC) 5 Others
Slide 9: Orthopedics Business – Global Business
1 Orthopedics Business – Global Business Revenue Operating Expense (USD million) (USD million) 83% 75% 300 267 223 216 210 173 153 2011 2012 2013 2014 2015* 2014 2015 Under Wright Under Microport Net Loss Note*: in Constant Currency (USD million) 2014 2015 Revenue: Global turn around in 2015 Str
Slide 10: Orthopedics Business – Global Business
1 Orthopedics Business – Global Business 90 92 10 7 China North America China North America Strong Growth Turn around achieved – Market growth Stable Growth 37 32 63 65 Japan Decline Europe Japan Europe * 2015 Figures in constant currency. 10
Slide 11: Orthopedics Business – Global Business
1 Orthopedics Business – Global Business R&D Product Pipeline 2016-2017: Supporting Our Core Offering Product Application Date SuperPath® extension Universal Inline Broach Handle Q2 2016 to other stems Anterior Approach Instruments: Anterior Approach THA Q2 2016 Optimized Instrumentation EVO Cementl
Slide 12: Orthopedics Business – China Business
1 Orthopedics Business – China Business 2015 SuperPath Trend Evolution 246 Surgical case 119 • Hospital 114 Coverage 2014 2015 Gained CFDA Registration Certificate and came into the market on August 29, 2015. 8 Started first surgery in Sep 2015. More than 40 surgeries have been 1 2 3 4 5 6 7 8 9
Slide 13: Orthopedics Business – Medical Training & Marketing
1 Orthopedics Business – Medical Training& Marketing • From September 2 to September 5 ,MicroPort® Orthopedics attended the 16th Brazilian Hip Congress in the city of Fortaleza, Northeast Brazil. • From October 8 to October 9, the International MedEd team organized a very successful Instructional Ca
Slide 14: Vascular Business – Cardiovascular
2 Vascular Business – Cardiovascular Revenue Firehawk Fly Over the World USD: million Cardio Rev Launched/Approved Firehawk Rev 130 112 14 4 2014 2015 The World's First and Only • Lowest drug dosage Target Eluting Stent (TES) with the same efficacy First Patient Enrolled in MicroPort's European Cl
Slide 15: Vascular Business – Cardiovascular
2 Vascular Business – Cardiovascular Firesorb —Bioresorbable Rapamycin Target Eluting Coronary Stent System The first second generation bioresorbable stent used in human • Backbone PLLA • Strut thickness 100μm~125μm • Abluminal coating PDLLA + Rapamycin • Thinner strut（100~125μm） • Coating thickness
Slide 16: Vascular Business – Cardiovascular
2 Vascular Business – Cardiovascular TAVI Valve Self-expanding Nitinol Stent Bovine pericardial leaflets with anti- calcification treatment PET Skirt Milestone FIM Clinical Trials 2010 2014 2016 2017 2018 2019 Project approval CFDA Approval 16
Slide 17: Vascular Business – Endovascular Stent Graft
2 Vascular Business – Endovascular Stent Graft Revenue Highlights USD: million Reewarm™ PTX Granted Green Channel Status for 15% CFDA Approval recently in 2016 16.2 14.1 MicroPort® Endovascular (Shanghai) Co., Ltd recognized as one of Shanghai's the first group of High-tech enterprise MicroPor
Slide 18: Vascular Business – Neurovascular
2 Vascular Business – Neurovascular Dramatic Growth of Neuro in Revenue Full Neuro Product Portfolio USD: million 7.9 -Hemorrhagic -Ischemic 6.3 WILLIS Be indicated 4.6 for the treatment of 3.4 intracranial The only product in 2.8 Chinese market stenosis 2.2 Tubridge™ APOLLO 2010 2011 2012 2013
Slide 19: Electrophysiology Business
3 Electrophysiology Business Dramatic Growth of EP in Revenue Product Portfolio USD: million 5.8 EasyFinder Fixed or adjustable 4.8 Curved Mapping FireMagic Catheter • Domestic product coverage map 3.0 EasyLoop Circumferential 1.6 Pulmonary Vein Mapping 0.9 Radiofrequency 0.2 Catheter Ablation
Slide 20: MicroPort Sorin CRM (MSC)
4 MicroPort Sorin CRM (MSC) Revenue Innovated in China, for China USD: million 2.1 Launched China's First Domestic 0.01 Pacemaker Production Line in June,2015 2014 2015 Animal study on-going Leveraging MP & Sorin capabilities IPGs Leads Programmer Biz Models Others 20
Slide 21: Others
5 Others Surgical Robot Product Introduction Indication： urology, obstetrics, generalthoracic, cardiovascular surgery Core Function： Master-Slave teleoperation, 3D vision. Full dimension motion control, Force feedback. R&D Progress Developed the first generation prototype; Systematical performan
Slide 22: Appendix I - Consolidated Income Statement
Appendix I - Consolidated Income Statement (USD '000) 2015 2014 Flux % Revenue 375,844 355,284 6% Cost of sales (123,335) (111,999) 10% Gross profit 252,509 243,285 4% Other revenue & net gain 15,525 12,025 29% Research and development costs (60,354) (54,564) 11% Distribution costs (127,739) (133,62
Slide 23: Appendix II - Consolidated Balance Sheet
Appendix II - Consolidated Balance Sheet USD'000 31 Dec 2015 31 Dec 2014 Fixed assets 271,203 286,666 Intangible assets 60,217 60,506 Prepayments for fix assets 2,711 1,678 Goodwill 55,463 56,529 Interest in a joint venture 4,759 3,866 Deferred tax assets 3,711 4,124 Time deposits - 11,440 Other non
Slide 24: Appendix III - Condensed Consolidated Cash Flow Statement
Appendix III - Condensed Consolidated Cash Flow Statement - Adjusted (USD '000) 2015 2014 Cash generate from operations 36,132 26,242 Income tax paid (5,412) (8,436) Net cash generated from operating activities 30,720 17,806 Net cash (used in)/from investing activities* (47,177) (338,155) Net cash g
Slide 25: 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 26: Thank You
Thank You The Patient Always Comes First