Microport Scientific Corp. · HKEX:853
Microport Scientific — H1 2015 Earnings Presentation
23 slides from Microport Scientific's earnings presentation, September 2015
Slide 1: MicroPort 2015 1H Earning Release
MicroPort 2015 1H Earning Release Stock Code: 00853(HK) September 2015
Slide 2: 2015 1H Company Highlights
2015 1H Company Highlights Interventional Cardiology - 3rd generation of DES DES revenue return to growth. Firehawk obtained CE certification in Jan 2015. Bio-absorbable stent: : Performed first human use in Aug 2015. TAVI: Started First-in-Man (FIM) trial in Sep 2014. Orthopedics Global revenue tur
Slide 3: Globalization & Diversification
Globalization & Diversification Revenue by Geography (Globalization) Diversification Revenue byProfitability product (Diversification) Others Other 10% 8% US 22% Cardio 35% 100% 100% China EMEA 45% 17% Orthopedics 55% Japan 8% Greatly expanded our geographic coverage: Significantly diversified produ
Slide 4: 2015 1H Positive Financial Performance
2015 1H Positive Financial Performance Revenue Gross Profit Margin USD: million USD: million Non-Ortho Ortho 191 184 68% 67% 75 85 109 106 2014 1H 2015 1H 2014 2015 1H In constant currency, orthopedics’ revenue increased by 3%. GP margin maintain flat. Operating Expense Net loss USD: million USD: mi
Slide 5: 1H 2015 Operating Expense
1H 2015 Operating Expense Sales and Marketing Expenses Administrative Expenses Research and Develop. Expenses USD: million USD: million USD: million 34.9% 30.9% 17.5% 64.2 59.1 16.2% 12.9% 12.4% 32.1 31.0 24.7 22.8 2014 1H 2015 1H 2014 1H 2015 1H 2014 1H 2015 1H S&M % of Sales G&A % of Sales R&D % o
Slide 6: Business Update by Segment
Business Update by Segment 1 Orthopedics Business 2 Cardiovascular Business 3 Endovascular Business 4 Neurovascular Business 5 Electrophysiology and CRM Business 5
Slide 7: Orthopedics - Global Business
1 Orthopedics - Global Business Revenue Operating Expense (USD million) (USD million) 88% 78% 67% 300 267 86 88 223 75 212 2014 1H 2014 2H 2015 1H 109 Operating expenses reduced by improving operation efficiency and cost leverage. 2011 2012 2013 2014 2014 1H 2015 1H* Net Loss (USD million) 2014 1H
Slide 8: Orthopedics - Pathway Development
1 Orthopedics - Pathway Development 2016:Achieve self-funding operations 2016: Target more product licenses in Turn around Strongly Increase 2015: Achieve more efficiency by reorganization & North America China integration 2015: Revenue turn around XX % Increase Decline 2014: Complete transition and
Slide 9: Orthopedics - China Business
1 Orthopedics - China Business Revenue Product pipeline (USD million) Evolution® launch Delta Launch 5.4 CFDA Approval Q2’15 3.3 SuperPath™ Enhance 2.7 2013 1H 2014 1H 2015 1H OrthoRecon Distributor and Hospital Surgeons be trained KOL Leadership Distributor 23 178 Hospital 2000 ( Target ) 122 11 79
Slide 10: Cardiovascular Business - Overview
2 Cardiovascular Business - Overview Cardiovascular Diversify Cardiovascular Product Line (USD million) Firebird-2nd Generation DES PTCA,etc 118 120 120 7% 112 103 Firehawk-3rd Generation DES 59 DES 93% 2010 2011 2012 2013 2014 2014 1H 2015 1H* Note*: in Constant Currency FOXTROT™ PRO PTCA Ballo
Slide 11: Cardiovascular Business - Firehawk
2 Cardiovascular Business - Firehawk Firehawk Contribute to DES Revenue Firehawk China Market Coverage Current Firehawk China Business: 8% • Operate over 20 Provinces • Business over 110 hospitals 4% 2014 1H 2015 1H Coverage Firehawk Development in International Market Launched/Approved Targeted Eur
Slide 12: Endovascular Business
3 Endovascular Business TAA/AAA Market Share Products Profile Solid Growth of Endovascular in Revenue USD: million 12.8 14.1 Castor 10.9 9.4 8.6 6.5 Branched Aortic Stent-Graft and Delivery System Successful Clinical Trial closing report announced on Jan 2015 2010 2011 2012 2013 2014 2014 1H 201
Slide 13: Neurovascular Business
4 Neurovascular Business Dramatic Growth of Neurovascular in Revenue Products Already Received SFDA Approval USD: million 6.3 WILLIS - hemorrhagic The Only product in Chinese market 4.6 WILLIS has already entered 58 hospitals in China. 3.4 2.8 3.1 APOLLO - Ischemic 2.2 Vascular Reconstruction
Slide 14: Electrophysiology Business
5 Electrophysiology Business Dramatic Growth of Electrophysiology in Revenue Products with CE Certifications USD: million 4.8 FireMagic EasyFinder EasyLoop 3.0 2.2 Radiofrequency Fixed or adjustable Circumferential Ablation Catheter Curved Mapping Pulmonary Vein 1.6 Catheter Mapping Catheter 0
Slide 15: MicroPort Sorin CRM (MSC)
5 MicroPort Sorin CRM (MSC) Revenue Innovated in China, for China USD '000 507.3 IPGs Leads 12.1 Programmer 2014 2015 1H Biz Models Others Launches China's First Domestic Pacemaker Production Line in June,2015 Animal study on going Aiming to initiate human trial in 2015 Leveraging
Slide 16: Appendix I - Consolidated Income Statement
Appendix I - Consolidated Income Statement (USD '000) 2015 1H 2014 1H Revenue 191,245 183,795 Cost of sales (62,904) (55,198) Gross profit 128,341 128,597 Other revenue & net gain 1,027 6,366 Research and development costs (24,712) (22,819) Distribution costs (59,122) (64,151) Adminnistrative expens
Slide 17: Appendix II - Consolidated Balance Sheet
Appendix II - Consolidated Balance Sheet USD'000 30 June 2015 31 Dec 2014 Fixed assets 283,422 286,666 Intangible assets 62,282 60,506 Prepayments for fix assets 3,217 1,678 Goodwill 56,529 56,529 Interest in a joint venture 3,555 3,866 Deferred tax assets 2,936 4,124 Time deposits 11,450 11,440 Oth
Slide 18: Appendix III - Condensed Consolidated Cash Flow - Adjusted
Appendix III - Condensed Consolidated Cash Flow - Adjusted (USD '000) 2015 1H 2014 1H Cash generate from operations 14,476 6,252 Income tax paid (2,221) (4,313) Net cash generated from operating activities 12,255 1,939 Net cash (used in)/from investing activities* (21,485) (314,085) Net cash generat
Slide 19: Appendix IV - Orthopedics Marketing/Branding
Appendix IV -Orthopedics Marketing/Branding 45th Annual Meeting of JSRA from 7 to 8, February, 2015. 24th to 28th, March, 2015. Microport Orthopedics attends AAOS 10th to 12th , April , 2015. Microport Orthopedics attends 9th Annual Meeting of ISHKS . Marketing/ Branding 16th to 17th , May, 2015. Mi
Slide 20: Appendix V - Full Range of Orthopedics Products Pipeline
Appendix V -Full Range of Orthopedics Products Pipeline ADVANCE® EVOLUTION® ADVANCE®-延长 REPIPHYSIS® PROPHECY® SuperPath Micro-posterior Total Hip Arthroplasty Knees v PROFEMUR™ LINEAGE™ CONSERVE™ PROFEMUR™ PROCOTYL® RENAISSANCE™ Plus Hips 微型钢板系统 金属锁定板 Spine & Trauma 19
Slide 21: Appendix VI - Key R&D Pipeline
Appendix VI -Key R&D Pipeline TAVI Surgical Robot Successfully completed the first human implantation on Sep 2014. In the stage of clinical trial Set up the project on May, 2014 The core team has been set up, including 10 R&D engineers In the stage of animal experiment Bio-absorbable stent
Slide 22: 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 23: Thank You
Thank You The Patient Always Comes First 22