Medacta Group Sa · SIX:MOVE
Medacta Group Sa — H1 2020 Earnings Presentation
21 slides from Medacta Group Sa's earnings presentation, Sep 7, 2020
Slide 1: Investor presentation 1H 2020 Results
Investor presentation 7 September 2020 1H 2020 Results 1
Slide 2: Disclaimer
DISCLAIMER This presentation (the "Presentation") has been prepared by Medacta Group SA ("Medacta" and together with its subsidiaries, "we", "us" or the "Group"). The information contained in the Presentation does not purport to be comprehensive. Please refer to the financial reports available on ou
Slide 3: Francesco Siccardi, Chief Executive Officer
Francesco Siccardi Chief Executive Officer 3
Slide 4: H1 2020 Key Highlights
H1 2020 Key Highlights ▪ H1 2020 revenue at €134.8 million, with a negative growth of 11.1% vs H1 2019 (-12.2% in CC1) ▪ Good backlog recovery in June, July and August with double digit growth, but we remain very cautious about the second semester given the uncertainties by the Covid-19 pandemic ▪ R
Slide 5: Redesigned Marketing and Education Offering to our Surgeons
Redesigned Marketing and Education Offering to our Surgeons Thanks to several new marketing initiatives and digital education programs we were able to keep existing surgeons fully involved and engaged new customers, leveraging national experts. #1’800+ surgeons attended our online and digital educat
Slide 6: Strong R&D focus with 25+ new Products cleared in 1H 2020
Strong R&D focus with 25+ new Products cleared in 1H 2020 #25+ new Products cleared (CE or FDA) in 1H 2020 in line with MDR/MDD switch original plan including: Hip ▪ Renewed Primary Implants offering (Quadra-P Family) ▪ Expansion of Revision Implants offering (M-Vizion Femoral Revision Range Extensi
Slide 7: Product Innovation – Medacta's NextAR Surgical Platform
Product Innovation – Medacta’s NextAR™ Surgical Platform Medacta developed the first FDA-Cleared Augmented Reality-Based Surgical Platform for Total Knee Replacement • Low upfront capital investment • Reduced cost per case vs other technologies • Advanced personalised planning tools • Unique soft ti
Slide 8: Corrado Farsetta, Chief Financial Officer
Corrado Farsetta Chief Financial Officer 8
Slide 9: 1H 2020 Results – Revenue by Region
1H 2020 Results – Revenue by Region Revenue Bridge by Region (€M) 1H 2019 Growth 8.2% 17.7% 7.6% 18.2% 11.0%1 % % 2019 ACT CC Growth y-o-y 1H 2020 Growth -17.3% -14.3% 5.8% -28.4% -12.2%1 -11.1% % 2020 ACT CC Growth y-o-y 151.6 (12.3) 2020 ACT Reported Growth y-o-y (6.4) 1.8 133.1 134.8 % (1.6) 1.7
Slide 10: 1H 2020 Results – Revenue by Product
1H 2020 Results – Revenue by Product Revenue Bridge by Product (€M) 1H 2019 Growth 2019 ACT CC Growth y-o-y 6.4% 13.5% 171.3% 11.0% 11.0%1 % 1H 2020 Growth -17.5% -13.0% 41.7% 11.9% -12.2%1 -11.1% % 2020 ACT CC Growth y-o-y 151.6 (14.6) (6.9) 1.7 % 2020 ACT Reported Growth y-o-y 10.9 1.7 1.3 133.1 1
Slide 11: 1H 2020 Results – Resilience of EBITDA
1H 2020 Results – Resilience of EBITDA Profit & Loss Statement (Million Euro) 1H 2020 1H 2019 Revenues 134.8 151.6 Cost of Sales -40.9 -40.1 COVID-19 IMPACT GROSS PROFIT 93.9 111.6 ▪ Under-utilisation of existing instruments GROSS PROFIT MARGIN 69.7% 73.6% ▪ Change in geographic mix Research and Dev
Slide 12: 1H 2020 – Investments to Prepare for Recovery
1H 2020 – Investments to Prepare for Recovery Investments in Tangible and Intangible Assets (Million Euro) 1H 2020 1H 2019 COVID-19 IMPACT CAPEX 20.4 25.8 Investments in new instruments % on revenues 15.1% 17.0% driven by new customers and recovering demand Tangible 15.7 20.4 Investing into the busi
Slide 13: 1H 2020 Results – Free Cash Flow
1H 2020 Results – Free Cash Flow Free Cash Flow (Million Euro) 1H 2020 1H 2019 PROFIT FOR THE PERIOD 9.7 11.3 PL Adjustments: Income tax expenses -0.4 2.1 Approx. €10M out of €17M for inventory increase to Depreciation and amortisation 18.8 16.2 support expected recovering demand and to avoid Other
Slide 14: 1H 2020 Results – Strong liquidity and well funded for future growth
1H 2020 Results – Strong liquidity and well funded for future growth Net Financial Debt1 Development (since end of 2019) (€m) ▪ Strong liquidity position (3.1) maintained during H1 2020 (20.4) 1.3 (115.3) (105.6) 12.5 ▪ Well funded for quick market recovery and future growth ▪ €115M net debt at 30 J
Slide 15: Francesco Siccardi, Chief Executive Officer
Francesco Siccardi Chief Executive Officer 15
Slide 16: Outlook
Outlook ▪ In June, July and August, the double digit growth of sales confirms that backlog recovery can occur quickly if the market conditions allow. ▪ While recent sales performance is encouraging, speed and impact of recovery in H2 largely depends on the evolution of the COVID-19 pandemic in our k
Slide 17: Thank You
THANK YOU 17
Slide 18: Appendix
APPENDIX 1) P&L 2) B/S 3) Cash flow 18
Slide 19: P&L
P&L Unaudited Unaudited (Thousand Euro) 30.06.2020 30.06.2019 Revenues 134'808 151638 Cost of Sales (40'862) (40'059) GROSS PROFIT 93'946 111579 Research and Development expenses (3'265) (3'502) Sales and Marketing expenses (54'404) (61'566) General and Administrative expenses (22'992) (24'009) Othe
Slide 20: Balance sheet
BIS ASSETS Unaudited Audited (Thousand Euro) 30.06.2020 31.12.2019 Property, plant and equipment 139'808 135350 Right-of-use assets 23'320 22104 Goodwill and intangible assets 47717 49584 Other non-current financial assets 504 456 Deferred tax assets 24162 21283 TOTAL NON-CURRENT ASSETS 235511 22477
Slide 21: Cash flow
Cash flow Adedacta International Unaudited Unaudited (Thousand Euro) 30.06.2020 30.06.2019 PROFIT FOR THE PERIOD 9684 11'296 Adjustments for: Income taxes (409) 2108 Dewesaten, amonisaton ‘and impairment of tangible, intangible 18756 je180 (Gain) / loss on disposal of tangible and intangible assets