Nova Eye Medical Ltd · ASX:EYE
Nova Eye Medical — Investor Presentation (February 2017)
39 slides from Nova Eye Medical's investor presentation, Feb 27, 2017
Slide 1: ASX Release: Financial Report for Half-Year Ended 31 December 2016
ASX RELEASE Ellex Medical Lasers Limited (ASX:ELX) Adelaide, Australia Date: 27 February, 2017 Release: Immediate Topic: Financial Report for Half-Year Ended 31 December 2016 Highlights: Total sales of $34.3m up on prior comparable period on a constant currency basis Ellex iTrack business segmen
Slide 2: ASX Release continued: EBITDA and production expansion
EBITDA for the period was $3.2 million, which, adjusted for the investment made in the Ellex iTrack and 2RT for early AMD business segments was up on the $3.5 million in the prior comparable period. The planned investments in Ellex iTrack sales expansion, including the appointment of a senior sales
Slide 3: For further information on Ellex please contact
For further information on Ellex please contact: Tom Spurling, CEO Andrew Angus Ellex Medical Lasers Limited Overland Advisers 82 Gilbert Street, Adelaide, SA, 5000 M +61 402 823 757 W +61 8 8104 5293 | M +61 417 818 658 andrewangus@overlandadvisers.com.au tspurling@ellex.com Maria Maieli, CFO & Com
Slide 4: Investor Presentation for the Six Months Ended December 2016
ELLEX MEDICAL LASERS LTD (ASX:ELX) INVESTOR PRESENTATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2016 (prepared 27 February 2017)
Slide 5: Disclaimer
Disclaimer This presentation has been prepared by Ellex Medical Lasers Ltd (Ellex). While the information in this presentation has been prepared in good faith and with reasonable care, no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any state
Slide 6: Contents
Contents • Strategy Summary • 1H FY17 Financial Performance Review • Growth & Outlook • Appendix 3
Slide 7: The Ellex Strategy
The Ellex Strategy • Ellex is a participant in the global market for the supply of products that treat the 4 major causes of blindness; glaucoma, retinal disease primarily from diabetes, cataract and macular degeneration • Annual spend on pharmaceuticals and devices in this market is greater than US
Slide 8: Large market for ophthalmic treatments
Large market for ophthalmic treatments • 82m people • 107m people worldwide with worldwide with glaucoma diabetic retinal disease RETINAL GLAUCOMA DISEASE US $4.6bn US $1.9bn EARLY CATARACT AMD US $3.3bn US $5.1bn • 122m people • 25.3m cataract with early age- operations related macular performed de
Slide 9: Ellex – Three business segments, one theme
Ellex – Three business segments, one theme Revenue Current Market Current Segment 1H FY17 Business Model Size Estimated Common theme: $Am Market Growth Supporting minimally Rate invasive ophthalmic Ellex laser & 30.3 Capital equipment US$420m 4% procedures with devices ultrasound sales that provide
Slide 10: Contents
Contents • Strategy Summary • 1H FY17 Financial Performance Review • Growth & Outlook • Appendix 7
Slide 11: Key aspects of 1H FY17 Result
Key aspects of 1H FY17 Result • 1H FY17 group sales of A$34.3m which after allowing for FX impact, is a 1% increase on 1H FY16 sales limited by production bottlenecks late in the period • 1H FY17 sales of $3.6m for iTrack™ segment – up 37% on 1H FY16 in constant currenty • Adjusted* EBITDA of $3.9 m
Slide 12: Market and Financial Summary
Market and Financial Summary Summary Financials Market Summary Change (%) Shares on Issue 121m Period 1H FY16 1H FY17 FY16 to FY17 Share Price @ 23 Feb 2017 1.29 Revenue for ordinary activities ($m) 34.8 34.3 ‐1.4% Market Cap 156m EBITDA ($m) reported 3.5 3.2 ‐8.5% Amortisation and depreciation, Net
Slide 13: Total EBITDA, sales & margins trends
Millions 4 Total EBITDA, sales & margins trends 3 • CAGR of 23% achieved over the last 4 periods 2 • Long‐term trend of improved financial result moderated in H1 FY17 by investment in EBITDA sales and marketing for highly prospective iTrack™ and 2RT™ business segments 1 • Approximately $0.7m of addi
Slide 14: Profit before tax by segment
Profit before tax by segment Core Laser & Ultrasound iTrack™ 2RT for early AMD A$’000’s A$’000’s A$’000’s H1 FY16 H1 FY17 H1 FY16 H1 FY17 H1 FY16 H1 FY17 Revenue 31,494 30,386 2,746 3,637 569 236 COGS & expenses (26,910) (26,071) (2,187)(1) (3,160) (1) (823) (2)(3) (636) (2)(3) Segment PBT (loss) 4,
Slide 15: Impact on EBITDA of investments in growth segments
Impact on EBITDA of investments in growth segments 1H FY16 1H FY17 $m $m EBITDA (reported) 3.5 3.2 • Additional investment in iTrack™ sales & marketing 0.3 0.5 • Additional investment in 2RT sales & marketing ‐ 0.2 Estimated EBITDA adjusted for operating expenses for 3.8 3.9 growth segments 12
Slide 16: Balance Sheet
Balance Sheet ASSETS 31 Dec 15 30 June 16 31 Dec 16 Cash 4.2 7.3 14.2 Trade receivables 12.9 15.7 13.9 • Significant increase in inventory ‐ see separate Inventories 16.0 19.2 24.9 slide on production expansion activities Product development capitalised 11.2 11.6 12.9 • Cash increase from capital ra
Slide 17: Free Cash Flow from operations
Free Cash Flow from operations 1H FY16 1H FY17 CASH FLOWS A$m A$m • Capitalised development costs are up due to release of two new products during 1H FY17; Eyeone™ portable Operating Cash Flows 3.1 (0.4) ultrasound and TangoReflex™ ophthalmic laser Investing ‐ PP&E (0.5) (0.6) • Cap’d development co
Slide 18: Sales by category of eye disease
Sales by category of eye disease Revenue by eye disease H1FY16 vs H1FY17 (A$) adjusted 14,000,000 Core laser & ultrasound Fast‐growing Emerging 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 ‐ Diagnostic Glaucoma early Cataracts and Retina disease Glaucoma later AMD (2RT) Ultrasound (
Slide 19: Sales by region all products
Sales by region all products 1H • Production & supply chain delays resulted in sales order 1H 1H 1H FY17 backlog at 31 December 2016 in Australia Change FY15 FY16 FY17 A$m on PCP • Fall due to technical delays in new ultrasound product A$m A$m A$m (constant currency) • Good sales of new dual action
Slide 20: Sales to Asia
Sales to Asia Sales to Asia (primarily China) in A$m CAGR 12% over 4 years 4 3.5 3 2.5 2 1.5 1 0.5 0 H1FY14 H1FY15 H1FY16 H1FY17 • Rapid growth in 1HFY16 of lasers & ultrasound associated with specific new hospital build was not repeated in 1HFY17. Long term Asian outlook is very good. • Good sales
Slide 21: Ellex iTrack sales by region
Ellex iTrack sales by region $Am H1FY16 H1FY17 H1FY17 CC(3) Growth % USA 1.8 2.0 2.1 +15% (1),(2) Asia 0.1 0.5 0.5 +33%(2) Rest of World 0.8 1.1 1.1 +49% 2.7 3.6 3.7 +37% (1) Sales of iTrack™ in H2FY17 in USA expected to improve with doubling of reimbursement effective 1 January 2017 (2) Investments
Slide 22: Production capacity expansion activities 2016
Production capacity expansion activities 2016 March 2016 • Acquire building & land at Mawson Lakes, 14km north of current rented facility in the Adelaide CBD March 2016 • Timetable developed with critical path being maintenance of the flow of products to all markets having regard to the fact that re
Slide 23: Production capacity expansion activities 2017
Production capacity expansion activities 2017 January/February 2017 • Deliver against 31 December 2016 sales order backlog 17 February 2017 • Received audit certificate of approval from TGA for manufacturing from Mawson Lakes. This provides the umbrella approval under which notifications of the chan
Slide 24: Contents
Contents • Strategy Summary • 1H FY17 Financial Performance Review • Growth & Outlook • Appendix 21
Slide 25: Core laser & ultrasound segment – market position, size & competitors
Ellex ‐ Core laser & ultrasound segment – market position, size & competitors Total annual spend on Assessed device‐ Current device‐market Disease Current Ellex Devices disease treatment with market position against accessible to Ellex (1) pharma and devices competition SLT with TangoReflex™, US$50
Slide 26: iTrack MIGS device segment
iTrack™ MIGS device segment • Ellex iTrack™ is a proprietary single- use microcatheter device • Fast growing minimally invasive glaucoma surgery (“MIGS”) market • Indicated for use in glaucoma patients who are no longer responsive to SLT, and/or as an alternative to invasive glaucoma surgery. 23
Slide 27: iTrack Segment - Market position, size & competitors
iTrack™ Segment ‐ Market position, size & competitors Total annual spend on Assessed device‐ Current device‐market Disease Current Ellex Devices disease treatment with market position against accessible to Ellex (1) pharma and devices competition 1. Glaukos (GKOS:NYSE) US$177 million growing to 2. E
Slide 28: iTrack Segment – Market positioning
iTrack™ Segment – Market positioning • A unique glaucoma therapy combination: SLT™ and ABiC with iTrack™ MIGS device • Ellex is the only company in the world with both SLT and a MIGS devise in its portfolio 25
Slide 29: 2RT AMD Segment – market position, size & competitors
2RT™ AMD Segment – market position, size & competitors • AMD (“Age-Related Macular Degeneration”) is the leading cause of blindness in the developed world & affects one in seven Australians over the age of 50 (Source: Macular Disease Foundation, Access Economics). • UNMET NEED: late stage AMD is tre
Slide 30: 2RT for AMD segment – Market position, size & competitors
2RT for AMD segment – Market position, size & competitors Total annual spend on Assessed device‐ Current device‐market Disease Current Ellex Devices disease treatment with market position against accessible to Ellex (1) pharma and devices competition Early‐Stage AMD and US$5.1 billion(1) Emerging ‐
Slide 31: 2RT for AMD Segment – Method of action & clinical trial
2RT™ for AMD Segment – Method of action & clinical trial Ellex has pioneered the development of 2RT™ (Retinal 2RT™ LASER Rejuvenation Therapy) • 2RT™ applied to retina early in disease state stimulates retinal cells to rejuvenate and enables them to feed and support the macula, thereby slowing down
Slide 32: Health of retina and macula
2RT™ might defer late-stage AMD indication of retinal health failing Apply 2RT™ nanopulse (as shown in retinal photo) laser light therapy good/normal HEALTH OF RETINA 2RT™ may slow disease progression AND MACULA disease progression without 2RT™ defer day of needle requiring anti-VEGF injection into
Slide 33: Revenue outlook for FY17 by segment
Revenue outlook for FY17 by segment 1. CORE OPHTHALMIC LASER & ULTRASOUND: Revenue in the second half of FY17 is currently expected to be higher than the first half of FY17 and the second half of FY16. This would result in core Ophthalmic laser and ultrasound revenue being higher than in FY16. The c
Slide 34: Revenue outlook for FY17 by segment
Revenue outlook for FY17 by segment 2. ELLEX iTRACK™: We believe that our additional sales management, the addition of more sales representatives in the USA and the lift in reimbursement will increase sales. We therefore currently believe that in the second half there should be acceleration in the g
Slide 35: Total EBITDA outlook for FY17
Total EBITDA outlook for FY17 EBITDA in the second half of FY17 will leverage off higher sales and is therefore expected to be higher than the EBITDA in the first half of FY17. As a result, total EBITDA for FY17 is currently expected to show modest growth over the total EBITDA in FY16 (which was $7.
Slide 36: Contents
Contents • Strategy Summary • 1H FY17 Financial Performance Review • Growth & Outlook • Appendix 33
Slide 37: Reformatted P&L (from 4D)
Reformatted P&L (from 4D) $A000's Six months Six months Six months ended 31 ended 31 ended 31 Changes over PCP Dec 2014 Dec 2015 Dec 2016 Revenue related: Revenue 30691 34,809 34,259 Realised FX 521 (586) 202 Other income 32 271 679 • 4% increase in total revenue in constant 31,244 34,494 35,140 cur
Slide 38: Ellex products and their application
Ellex products and their application (E) (B) (T) (T) (T) 35
Slide 39: For further information on Ellex Medical Lasers please contact
For further information on Ellex Medical Lasers please contact: Tom Spurling Maria Maieli Andrew Angus CEO CFO & Company Secretary Investor Relations M: +61 417 818 658 W: +61 8 8104 5200 M: +61 402 823 757 E: tspurling@ellex.com E: mmaieli@ellex.com E: andrewangus@overlandadvisers.com.au
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