Medartis Holding AG · SIX:MED
Medartis — ZKB and Jefferies conference (November 2024)
24 slides from Medartis's conference presentation, Nov 20, 2024
Slide 1: Accelerating profitable growth.
Accelerating profitable growth. Dr. Dirk Kirsten CFO & Member of Executive Management Board
Slide 2: Agenda
The market Medartis today Agenda Transformation towards higher growth Summary and key takeaways Investor Presentation | November 2024 2
Slide 3: Extremities – an attractive niche with above average growth
Extremities – an attractive niche with above average growth Total ortho market (‘23) Addressable market by segment (‘24E) Addressable market by region (‘24E) Spine Sports Medicine Foot & ankle EMEA 19% 12% 43% 24% Trauma 14% ~USD ~USD ~USD Elbow & 60bn Orthobiologics shoulder* 8.5bn* 8.5bn* APAC 9%
Slide 4: Positioning of Medartis within competitive landscape
Positioning of Medartis within competitive landscape Distribution power Innovation & focus • E.g. Zimmer Biomet, Synthes/J&J, • E.g. Paragon 28, Treace Medical, Field Smith & Nephew, Stryker, Acumed, Ortho, Newclip, Keri Medical, Skeletal Arthrex Dynamics • >USD 500m sales; single digit average annu
Slide 5: Key market trends
Key market trends Request for Services Shift to Pricing more patient- US Further market beyond the outpatient pressure from specific protectionism consolidation product centers payers solutions • Increase in • Trump • Recent 9 • The megacap get • Patient-specific • Increasing trend solutions / patie
Slide 6: Agenda
The market Medartis today Agenda Transformation towards higher growth Summary and key takeaways Investor Presentation | November 2024 6
Slide 7: H1 performance at a glance
H1 performance at a glance 13.1% 17.8% 20.6% 3.1% / -9.5% Group growth (core)* EMEA growth APAC / Latam growth US growth CHF 111.5m net sales vs 5-6% market growth defending or increasing market vs 11-12% market growth share despite external challenges 83.3% 17.8% CHF 2.2m 8.5% core gross margin* co
Slide 8: Sales per segment and region
Sales per segment and region Medartis sales by segment (H1 ‘24) Medartis sales by region (H1 ‘24) Elbow & EMEA shoulder Lower 53% 8% extremities 18% CHF 111.5m CHF 111.5m APAC 14% Hand & CMF & wrist other Latam 57% 17% US 9% 24% • Complete portfolio for upper extremities as well as covering 60% of l
Slide 9: 15-20% organic growth annually since Covid
15-20% organic growth annually since Covid* EMEA USA 106.5 41.1 Total Group 88.6 34.1 76.3 30.3 63.2 63.0 22.5 23.5 212.1 19% 21% 176.0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 150.1 119.6 120.3 APAC LATAM 19% 31.5 22.2 28.8 29.9 18.7 23.7 21.3 14.6 12.4 10.0 10’% 31% 2019 2020 2021 2022 20
Slide 10: Agenda
The market Medartis today Agenda Transformation towards higher growth Summary and key takeaways Investor Presentation | November 2024 10
Slide 11: Channel building in the US
Channel building in the US • Key learning from NSI acquisition is that channel building remains priority #1 for US growth execution • Since 2024 ongoing review of distributor portfolio – replace non-performing distributors and target high growth with all new distributors • This process takes time an
Slide 12: Ongoing innovation as growth driver
Ongoing innovation as growth driver Foot 2 System Dorsal Olecranon System 2.8 • Hallux and Midfoot System 2.8 – • Delivery of entire system (same tool basis, same enhanced flexibility, precision and screws, based on one single and consistent treatment adaptability, more options for concept) correcti
Slide 13: Digitalization as an enabler for further growth
Digitalization as an enabler for further growth • New digital technologies and patient-specific CMX Portal 3D Viewer CMX Portal Action solutions support for the Enables the surgeon to Indicator analyse their 3D planning Clear visual indication treatment of various data in a sophisticated way. if an
Slide 14: Preparing to launch KeriTouch in the US
Preparing to launch KeriTouch in the US • Successful partnership with Keri Medical over the last 3 years – generating high growth in selected markets (Germany, Austria & UK) • Since H2 2024 KeriTouch has been also launched in Australia – expected growth driver for 2025 and beyond • KeriTouch is a un
Slide 15: Redefining the addressable market
Redefining the addressable market • Medartis has developed best-in-class products and sells them successfully in all geographic regions at premium pricing • However, in some markets significant market potential remains unaddressed so far • Recent insurance changes in Brazil have demonstrated how imp
Slide 16: Financing strategy to support strong growth
Financing strategy to support strong growth • Stable shareholder basis with Founder Thomas Straumann still holding ~45% of shares – remains committed • Market challenge: current free float is too small – liquidity is dry • Over the last 2 years, we have used smaller “events” to execute rights issues
Slide 17: Agenda
The market Medartis today Agenda Transformation towards higher growth Summary and key takeaways Investor Presentation | November 2024 17
Slide 18: Summary and key takeaways
Summary and key takeaways 1 2 3 4 5 Extremities Medartis has Improved H1 ‘24 showed 2025 Priority remains systematically profitability and above-average remains US attractive niche outgrown the intrinsic cash growth in both commercial with above market and won flow generation EMEA and the channel av
Slide 19: Thank you
Thank you
Slide 20: Successful market entry in Spain since 2021
Successful market entry in Spain since 2021 • Spanish team started in 2021 from scratch – in the middle of Covid. Before that, Medartis had a small business with local distributor • Team has systematically built market presence • Spanish addressable market size: ~EUR 50m, attractive high-price segme
Slide 21: Current market challenges in Australia and Brazil
Current market challenges in Australia and Brazil • Australia has faced reimbursement price cuts in 3 • Brazil grew about 20-25% annually post Covid, reflecting tranches since 2022, directly following Covid and very strong management and winning culture after taking over strict quarantine restrictio
Slide 22: Going direct in Japan – a high conviction market
Going direct in Japan – a high conviction market • The Spanish success story shows that we can capture much value out of existing markets with a successful going direct • In 2023 Medartis Board of Directors decided to go fully direct in Japan • In summer 2024 the transfer from Medartis’ former Upper
Slide 23: Organizational progress: Operations and processes
Organizational progress: Operations and processes • After opening of high-capacity clean room several efficiency projects were launched to further improve core gross margin (currently >81%). Recent achievements: internalisation of sterile (and non-sterile) packaging – significant cost reduction pote
Slide 24: H1 results: Core business with attractive margins
Appendix H1 results: Core business with attractive margins In CHFm As reported NSI 3rd party business (2) Other Core revaluation (1) non-core (3) Net Sales 111.5 (3.9) 107.6 Costs of goods sold (22.0) 4.0 (17.9) Gross profit 89.6 0.1 89.7 Opex (93.1) 10.1 0.1 2.4 80.5 Other income 7.0 (7.0) 0 Operat
Medartis — ZKB and Jefferies conference (November 2024) on 6ix