Vitrolife Ab · OMXSTO:VITR
Vitrolife Ab — Merger or Acquisition (July 2021)
26 slides from Vitrolife Ab's merger presentation, Jul 9, 2021
Slide 1: Vitrolife acquires Igenomix
VITROLIFE AB (PUBL) Vitrolife acquires Igenomix Creates a global leader in reproductive health July, 9 2021 1
Slide 2: Today's Presenters
TODAY’S PRESENTERS Thomas Axelsson Mikael Engblom CEO CFO 2
Slide 3: Agenda
AGENDA 1 Transaction Highlights 2 Igenomix in Perspective 3 Transaction Rationale 4 Transaction Terms and Structure 5 Q&A 3
Slide 4: A Unique Combination Across the IVF Journey
A UNIQUE COMBINATION ACROSS THE IVF JOURNEY Vitrolife’s best- in-class IVF device portfolio + Igenomix’s leadership in reproductive genetic testing services 4
Slide 5: Creates a Global Leader in Reproductive Health
CREATES A GLOBAL LEADER IN REPRODUCTIVE HEALTH Joins two of the strongest names within reproductive health into one integrated platform Creates a global leader in reproductive health technology with sales in excess of SEK 2 billion Enables Vitrolife to better serve clinics, professionals and patient
Slide 6: Agenda
AGENDA 1 Transaction Highlights 2 Igenomix in Perspective 3 Transaction Rationale 4 Transaction Terms and Structure 5 Q&A 6
Slide 7: Global Leader in Reproductive Genetic Testing Services
GLOBAL LEADER IN REPRODUCTIVE GENETIC TESTING SERVICES Leader in women’s health and reproductive genetic testing services for IVF clinics EUR122m LTM June 2021E ▪ Testing portfolio covers a wide range of Revenue genetic diagnostics in reproductive and EUR36m personalized medicine 80 LTM June Countri
Slide 8: Differentiated Testing Portfolio
DIFFERENTIATED TESTING PORTFOLIO Testing portfolio covers a wide range of genetic diagnostics in reproductive and personalized medicine Preconception Pre / Implantation Analysis Pre / Natal Rare Diseases The Right Embryo Embrace MitoScore NACE CGT exome based PGT-A PGT-M The Right Timing GPDx POC SA
Slide 9: Pre-Implantation Evaluation Tools for a Successful Treatment Outcome
PRE-IMPLANTATION EVALUATION TOOLS FOR A SUCCESSFUL TREATMENT OUTCOME Genetic Evaluation Tools PGT-A ERA ▪ Can analyze all 24 chromosome types in an embryo in order to discard ▪ Proprietary genetic test to determine whether a patient has issues Test the possibility of the presence of an abnormal numb
Slide 10: Robust and Expanding Testing Portfolio
ROBUST AND EXPANDING TESTING PORTFOLIO Portfolio of specialized diagnostic tests built on proprietary scientific know-how Value Proposition Key Competitive Advantages ▪ Determines the genetic risk of a person trying to conceive ▪ Significant economies of scale leading to cost advantages and better C
Slide 11: Focus on High Value-Add, Complex Testing
FOCUS ON HIGH VALUE-ADD, COMPLEX TESTING Focus on high clinical value and complexity drives attractive margin profile and competitive position WGS ▪ High margins Liquid Biopsy Singlegene ▪ High entry barriers Clinical PGT-M (free DNA)2 Panels CMA Oncology WES Precision NIPT CGT Clinical Value ERA PG
Slide 12: Portfolio Backed by Science
PORTFOLIO BACKED BY SCIENCE Scientific know-how, specific skill sets and data provide superior results and barriers to entry ERA Example – Success Rates (%)1 Number of Reproductive Health Publications (2020)3 Pregnancy Implantation Delivery Igenomix has published 492 publications to date, 73 71 +28.
Slide 13: Global Scale Serving 80 Markets Around the World
GLOBAL SCALE SERVING 80 MARKETS AROUND THE WORLD ▪ 80 countries ▪ 261 labs London Moscow Toronto (Canada) (UK) (Russia) ▪ 5602 employees Seoul Tokyo New York Valencia-HQ Istanbul (South Korea) Los Angeles (Japan) (USA) (Spain) Venice (Turkey) Hangzhou Revenue by Region (USA) Kuwait City (Italy) (Chi
Slide 14: Proven Track Record of Driving Attractive Growth and Profitability
PROVEN TRACK RECORD OF DRIVING ATTRACTIVE GROWTH AND PROFITABILITY 19% 25% 28% 21% 27% 1221 24 79 72 3 50 98 36 72 76 50 36 FY2017A PF FY2018A PF FY2019A PF FY2020A FY2021E Total Revenue excl. COVID-19 Testing COVID-19 Testing Adj. EBITDA Margin excl. COVID-19 Testing Note: FY = last twelve months a
Slide 15: Agenda
AGENDA 1 Transaction Highlights 2 Igenomix in Perspective 3 Transaction Rationale 4 Transaction Terms and Structure 5 Q&A 15
Slide 16: Vitrolife + Igenomix: Clear Strategic Rationale
VITROLIFE + IGENOMIX: CLEAR STRATEGIC RATIONALE ✓ Creates a global leader in reproductive health ▪ Pro forma sales in excess of SEK 2 billion, with ambition to deliver long-term profitable growth ✓ Enables Vitrolife to expand further into the high growth IVF diagnostic testing sector ▪ Leader in rep
Slide 17: The IVF-Process – Vitrolife Products
THE IVF-PROCESS – VITROLIFE PRODUCTS HORMONE TREATMENT Hormone stimulation to increase the number of retrievable eggs 17
Slide 18: Success Rates Step by Step
SUCCESS RATES “STEP BY STEP” Outcomes of ART Cycles Using Fresh Nondonor Eggs or Embryos IVF clinics way of working is essential for a 160000 successful 140000 treatment 120000 Intended retrievals Retrievals Outcomes 100000 Transfers 135542 121853 80000 107066 60000 40000 Live-birth deliveries 20000
Slide 19: Innovative Embryo Evaluation and Leading Diagnostic Tool
INNOVATIVE EMBRYO EVALUATION AND LEADING DIAGNOSTIC TOOL TO FIND WINDOW OF IMPLANTATION Two of the strongest names within reproductive health into one platform to achieve successful treatment outcomes Two methods for embryo evaluation Combination improves successful treatment outcomes Best-in-class
Slide 20: Agenda
AGENDA 1 Transaction Highlights 2 Igenomix in Perspective 3 Transaction Rationale 4 Transaction Terms and Structure 5 Q&A 20
Slide 21: Positive Financial Impact
POSITIVE FINANCIAL IMPACT ▪ Expected combined pro forma sales LTM June 2021 of SEK 2,460 million and adj. EBITDA of SEK 864 million (excl. Igenomix Covid-19 testing impact)1 ▪ Immediate top-line growth with long-term upside potential from enhanced offering ▪ Potential to realize synergies through a
Slide 22: Structure and Terms
STRUCTURE AND TERMS ▪ Acquisition of 100% of the share capital in Igenomix for a total consideration of EUR 1,250 million (SEK 12.7 billion1) on a cash and debt free basis, from EQT and other shareholders ▪ Financed through a mix of a share issue in kind directed to the sellers, a directed share iss
Slide 23: Financing and Share Issues
FINANCING AND SHARE ISSUES ▪ The transaction will be financed through a mix of a share issue in kind directed to the sellers, a directed share issue to institutional investors, current cash balance and new committed debt facilities: ‒ EUR 626 million (SEK 6.4 billion) financed through an issue in ki
Slide 24: Transaction Timetable
TRANSACTION TIMETABLE Announcement of Transaction: 8 July 2021 Guaranteed Directed Share Issue: 8 July 2021 EGM to Resolve on Consideration Share Issue: Autumn 2021 Closing of Transaction: Q4 2021 24
Slide 25: Agenda
AGENDA 1 Transaction Highlights 2 Igenomix in Perspective 3 Transaction Rationale 4 Transaction Terms and Structure 5 Q&A 25
Slide 26: Disclaimer
DISCLAIMER This presentation contains estimates and forward-looking statements, which reflect the Management’s current views with respect to the market, certain future events and financial performance. Although the statements are based upon estimates the Management believes to be reasonable, there i