Medistim Asa · OSL:MEDI
Medistim Asa — Q2 2020 Earnings Presentation
35 slides from Medistim Asa's earnings presentation, Aug 14, 2020
Slide 1: Welcome to Medistim ASA's second quarter and 1st half 2020 financial presentation
Welcome to Medistim ASA’s second quarter and 1st half 2020 financial presentation The webinar will begin shortly
Slide 2: Medistim ASA Second quarter and 1st half 2020
Medistim ASA Second quarter and 1st half 2020 August 14th 2020 Kari E. Krogstad Thomas Jakobsen PRESIDENT & CEO CFO
Slide 3: Webinar Technical tips
Webinar Technical tips All questions will be answered at the end of the presentation Click on on this arrow to expand or minimize your GoToMeeting panel. Click on the hand icon to indicate that you would like to ask a question in person, and you will be unmuted at the end of the presentation. Add an
Slide 4: Disclaimer
Disclaimer The information included in this Presentation contains certain forward-looking statements that address activities, events or developments that Medistim ASA (“the Company”) expects, projects, believes or anticipates will or may occur in the future. These statements are based on various ass
Slide 5: Table of Contents
Table of Contents 01 ● Highlights 02 ● Financial statements 03 ● Business segments update 04 ● Implementing the strategy 05 ● The COVID-19 pandemic
Slide 6: Highlights
MED(STIM @ 01 Highlights
Slide 7: Highlights 2nd quarter
Highlights 2nd quarter Second quarter sales ended at 82.5 MNOK Q2 2020 %QoQ • The COVID-19 pandemic led to postponement of elective surgeries, hence sales revenues were down by Revenue MNOK 82.5 (93.8) -12.1 12.1% • Currency neutral sales of own products down 20.3% EBIT MNOK 27.7 (30.9) -10.3 • U.S.
Slide 8: Highlights 1st half
Highlights 1st half First half sales ended at 185.6 MNOK H1 2020 %HoH • The COVID-19 pandemic effect in Q2 neutralizes the 16% sales growth in Q1 Revenue MNOK 185.6 (182.5) +1.7 • Currency neutral sales of own products down 4.5 % EBIT MNOK 52.5 (50.8) +3.3 • U.S. sales decreased 9.1%, RoW down 9.3 %
Slide 9: Financial Statements
MED(STIM oy 02 Financial Statements
Slide 10: Profit and loss Q2 2020
Profit and loss Q2 2020 Profit & loss Q2 2020 Q2 2019 All numbers in NOK 1000 Sales per Quarter (TNOK) 110 000 Sales 82 482 93 796 90 000 Cost of goods sold 15 892 21 145 70 000 Salary and sosial expenses 22 413 23 648 50 000 Other operating expenses 10 883 13 793 Total operating expenses 49 187 58
Slide 11: Profit and loss H1 2020
Profit and loss H1 2020 Profit & loss H1 2020 H1 2019 All numb ers in NOK 1000 Sales per Quarter (TNOK) Sales 185 588 182 533 110 000 90 000 Cost of goods sold 38 966 41 839 Salary and sosial expenses 55 703 54 676 70 000 Other operating expenses 27 347 26 429 50 000 Total operating expenses 122 016
Slide 12: Balance sheet - Assets
Balance sheet 30.06.2020 31.12.2019 Balance sheet - Assets All numb ers in NOK 1000 Assets Intangible assets 37 895 40 773 Fixed assets 66 568 66 835 Cash flow from operations was a Total intangible and fixed assets 104 463 107 608 solid MNOK 40.6 for the quarter Inventory 98 845 90 070 and the cash
Slide 13: Balance sheet – Equity and Liability
Balance sheet 30.06.2020 31.12.2019 All numb ers in NOK 1000 Share capital 4 585 4 585 Balance sheet – Equity Premium fund 44 172 44 172 and Liability Other equity 237 347 188 104 Total equity 286 104 236 861 Total long term debt 25 516 27 801 6.0 MNOK in interest-bearing Total short term debt 56 65
Slide 14: Business segments update
MED(STIM 03 Business segments update
Slide 15: Imaging probes and systems in units
Imaging systems in units 40 35 Imaging probes and 30 ROW systems in units 25 20 Europe 15 Asia 10 US 5 0 Q2 18Q3 18Q4 18Q1 19Q2 19Q3 19Q4 19Q1 20Q2 20 Due to the COVID-19 pandemic, the overall trend in all geographies was a reduced Imaging probes in units (Incl USA) number of elective surgeries 50 a
Slide 16: Flow probes and systems in units
Flow probes and Flow probes in units (excl USA) systems in units 2 500 2 000 Due to the COVID-19 pandemic, 1 500 the overall trend in all 1 000 geographies was a reduced 500 number of elective surgeries - Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 and restrictions in access to 18 18 18 19 19 19 19 20 20 hospitals f
Slide 17: Q2 and H1 2020 revenue performance by region
Q2 and H1 2020 revenue performance by region Mill NOK Q1 '20 Q1 '19 Q/Q H1 '20 H1 '19 H/H 2019 Europe 40,7 42,5 -4,4 % 81,5 80,9 0,7 % 163,9 USA 26,6 36,9 -27,8 % 65,0 71,5 -9,1 % 136,1 Asia 7,9 9,9 -20,1 % 27,1 16,9 60,4 % 41,8 ROW (MEA, CAN, SA, AUS) 7,2 4,4 62,6 % 12,0 13,2 -9,3 % 22,0 Total 82,5
Slide 18: Q2 and H1 2020 revenue performance by product
Q2 and H1 2020 revenue performance by product Mill NOK Q2 '20 Q2 '19 Q/Q H1 '20 H1 '19 H1 / H1 Procedures (USA) 22,4 27,0 -17,0 % 50,7 53,4 -5,0 % Flow probes 21,6 24,0 -9,7 % 46,4 45,9 1,1 % Flow systems (MiraQ) 9,8 9,0 9,1 % 23,9 16,2 47,6 % Imaging systems (MiraQ) 7,6 11,3 -32,8 % 25,0 23,5 6,2 %
Slide 19: Implementing the strategy
04 Implementing the strategy
Slide 20: Medistim growth strategy
Medistim growth strategy 1. Convert the routine Flow market to a Flow-and-Imaging market by establishing Surgical Guidance and Quality Assessment as Emerging the new standard of care through high-growth economies 4 → Early adopter & KOL support (e.g. BRIC) → REQUEST study → Ease conversion from flow
Slide 21: Sales expansion in the USA
MED(STIM Sales expansion in the USA
Slide 22: Performance US sales
Performance US sales Revenues in USD declined 36.2% in Q2 and 19.7% in H1 due to COVID-19 o In NOK, revenues declined 27.8% in Q2 and 9.0% for H1 due to favorable currency Total number of procedures was down 27.5% in Q2 and 15.2% for H1, reflecting the lower surgical activity level o Flow procedures
Slide 23: Building position in Vascular Surgery
Building position in Vascular Surgery
Slide 24: Target segments in vascular surgery
Target segments Applications Size of key Clinical needs in vascular markets surgey Reduce risk of death and stroke CEA surgery >200 000 Improve cost-effectiveness Global vascular market is Improve long-term graft > 600 000 procedures Peripheral bypass patency annually >200 000 surgery Improve qualit
Slide 25: Carotid endarterectomy – can ultrasound be the preferred completion control?
Carotid endarterectomy – can ultrasound take the role as preferred intraoperative completion control? Clinical Need Market opportunity • Carotid endarterectomy (CEA) is a surgical • >200 000 procedures procedure to reduce the risk of stroke from • High risk procedure, intuitive need for carotid arte
Slide 26: The CIDAC Study
The CIDAC Study Published in the EJVES 20th March 2020 Klinikum Rechts der Isar (Technical Univ of Munich)
Slide 27: CIDAC – Study design
CIDAC – Study design Klinikum Rechts der Isar (Technical Univ of Munich) Method 150 CEA patients Prospective, comparative, clinical trial Angiography Comparing Intraoperative Duplex Ultrasound angiography to intraoperative Duplex Ultrasound (IDUS) using Revision if needed Medistim VeriQC™ as complet
Slide 28: CIDAC – Study results
CIDAC – Study results Intraoperative revisions Postoperative analysis GRADE # OBSERVATIONS Patients 4 – Severe lesion 1 Revision mandatory 1 Revision rate of 9.3% of patients 3 – Major defect 21 Revision recommended 9 2 – Minor defect 54 Inter-observer reliability Consider revision 38 Kendall’s Wt 1
Slide 29: CIDAC – Study conclusions
CIDAC – Study conclusions High-frequency ultrasound (IDUS) detected significantly more of the major defects compared to angiography (22 vs 10, P = 0.04) High-frequency ultrasound (IDUS) lead to intraoperative revision more frequently than angiography (8 vs 5) Inter-observer reliability was higher wi
Slide 30: The COVID-19 pandemic
MED(STIM * 05 The COVID-19 pandemic
Slide 31: The COVID-19 pandemic
The COVID-19 pandemic Negative effects on sales revenues in Q2 No significant negative implications on Medistim’s operations o Lock-downs, travel and hospital access restrictions o Healthy employees o Hospital resources and capacity focused on, and o Intact supply chain keeping ready for, COVID-19 p
Slide 32: The COVID-19 pandemic (cont'd)
The COVID-19 pandemic (cont’d) Light at the end of the tunnel Uncertainties Measures taken o Serious medical conditions such as o For how long will the pandemic and o The situation is being continuously heart disease and risk of stroke cannot its aftermath last monitored be left untreated for too lo
Slide 33: Medistim
MED(STIM
Slide 34: Shareholders list per 13.8.2020
Shareholders list per 13.8.2020 Rank Shareholder # of shares % of total Country Type of accou 1 INTERTRADE SHIPPING AS 2 000 000 10,9 % Norway Ordinary 2 SALVESEN & THAMS INVEST AS 1 862 500 10,2 % Norway Ordinary 3 VERDIPAPIRFOND ODIN NORDEN 1 800 000 9,8 % Norway Ordinary 4 State Street Bank and T
Slide 35: Medistim
MED\STIM