Slide 1: Covalon Technologies Ltd.
TSX-V: COV OTCQX: CVALF investors@covalon.com Covalon Technologies Ltd. September 26, 2024 Brent Ashton – Chief Executive Officer
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information Certain statements included in this presentation may be considered forward-looking statements. These forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “estimate”, “e
Slide 3: Covalon Technologies Ltd.
Covalon Technologies Ltd. We provide innovative and cost-effective healthcare solutions that help prevent infection, reduce pain, and promote healing 3
Slide 4: Investment Thesis
Covalon Investment Thesis Solving sizable customer Differentiated, protected Favorable trends and challenges products in attractive competitive environment segments Strong underlying financials Significant product and Turnaround underway by geographical growth experienced leadership potential 4
Slide 5: Highly Experienced Leadership Team
Highly Experienced Leadership Team Brent Ashton Chief Executive Officer • Canadian-born and educated Kim Crooks Dr. Val DiTizio Dr. Katherine Evely (Ivey School of Business at Western University) SVP - Operations Chief Scientific Officer Sr. Director, Clinical Affairs • 16 Years of US-based global M
Slide 6: Market Segment Focus
Covalon Market Segment Focus Market Advanced Vascular Access Peri-Operative Medical Device Segment: Wound Care Consumables Coatings Global Market Size $11 B $4 B $6 B (2023)1 Covalon Areas of Focus 6 1 Various Market Research sources including Grand View Research and Market Research Future
Slide 7: Advanced Wound Care: The Clinical Challenge
Covalon - Advanced Wound Care The Clinical Challenge Growing number of chronic wounds (affect 11 Million patients in the US with a cost to treat of $28 Billion)1 High rates of infection (~45%) stall healing and lead to complications Without proper treatment – can lead to reduced quality of life, amp
Slide 8: Advanced Wound Care: The Covalon Solution
Covalon - Advanced Wound Care The Clinical Challenge The Covalon Solution Helps to support wound healing to Growing number of chronic improve patient quality of life: wounds (affect 11 Million patients in the US with a cost Before After to treat of $28 Billion)1 High rates of infection (~45%) stall
Slide 9: Advanced Wound Care: US Market Dynamics
Covalon - Advanced Wound Care US Market Dynamics US Market US Market Covalon Size1 Growth1 2024 YTD US Growth2 $2.6 Billion 8% - 10% 63% Patented technology – Scalable in-house Covalon’s Largest Competitors: dressing composition and manufacturing manufacturing method How we win • Strong differentiat
Slide 10: Vascular Access: The Clinical Challenge
Covalon - Vascular Access The Clinical Challenge Blood Stream Infections - kill over 28,000 people in the US each year and cost over $2 Billion1 Maintaining skin health and preventing Medical Adhesive Related Skin Injuries (MARSI) Patient pain, trauma and dissatisfaction 1 Haddadin Y et al. Central
Slide 11: Vascular Access: The Covalon Solutions
Covalon - Vascular Access The Clinical Challenge The Covalon Solutions Blood Stream Infections - Only Catheter line kill over 28,000 people in guards to protect the US each year and cost against gross over $2 Billion1 contamination Dual-antimicrobial Maintaining skin health and dressings with clear
Slide 12: Vascular Access: US Market Dynamics
Covalon - Vascular Access US Market Dynamics US Market US Market Covalon Size1 Growth1 2024 YTD US Growth2 $1.6 Billion 5% - 7% 59% Differentiated, Strong support from Key patented technologies Opinion Leaders Covalon’s Largest Competitors How we win • Novel products with strong value Direct to hosp
Slide 13: Vascular Access Commercial Success: US Hospitals
Covalon Vascular Access Commercial Success: US Hospitals RETAIN GROW EXISTING ADD NEW Have retained 98% 55% YTD revenue Acquired 62 new of our Top 50 growth from our customers customers from Top 50 customers through the end of FY’23 from FY’23 Q3 Key Covalon US Hospital Vascular Access Products 13
Slide 14: Covalon's Value is Recognized by Leading Health Systems
Covalon’s Value is Recognized by Leading Health Systems Strong relationships with leading Children’s Hospitals Solid progress made with leading providers in the United States and Internationally 14
Slide 15: Key Turnaround Actions
Key Turnaround Actions Right-sized Implementing new Established strong quality Commercial team process and rigor and compliance culture Bringing new Repairing key relationships: Covalon culture to life customers, suppliers, investors Reversed 9 x consecutive quarters of losses with back-to-back quar
Slide 16: Early Financial Outcomes From Turnaround
Early Financial Outcomes From Turnaround Revenue and Growth Revenue and Growth Full Company US Product Only $30,000 60.0% $20,000 70.0% 50.0% $25,000 60.0% $20,000 40.0% 30.0% $15,000 50.0% • Strong growth – led by $15,000 20.0% 40.0% focus on US Product $10,000 10.0% 30.0% segment $10,000 0.0% -10.
Slide 17: Early Financial Outcomes From Turnaround
Early Financial Outcomes From Turnaround Net Income Adjusted EBITDA Cash Position $3,560 $4,000 $4,000 $16,000 $2,057 $2,000 $2,000 $14,000 $0 $0 $12,000 2022 2023 YTD 2024 2022 2023 YTD 2024 ($2,000) ($2,000) $10,000 ($4,000) ($4,000) ($2,682) $8,000 ($4,461) ($6,000) ($6,000) ($5,663) $6,000 ($8,0
Slide 18: Strategic Priorities
Covalon Strategic Priorities Horizon 1 Priorities Horizon 2 Priorities Horizon 3 Priorities • Driving growth with existing • Product and technology focus: • Bold new product portfolio – retain, grow existing and • Product improvement and line commercialization – new to add new extension execution Co
Slide 19: Corporate and Capital Structure
Corporate and Capital Structure Capital Structure Share Price Performance (Last 12 Months) Shares Outstanding 27,398,077 Options and Warrants Outstanding 1,587,500 DSU’s Outstanding 295,000 Share Price $3.26 Market Capitalization $89.3 million Insider Ownership of Shares 52% Total Cash $16.0 million
Slide 20: Summary
Summary • Solving significant customer challenges with robust portfolio of differentiated offerings • Solid early success from turnaround actions – building the foundation for the future • Strong opportunities for future growth 20
Slide 21: Covalon Technologies Ltd.
“7 covalon TECHNOLOGIES LTD.