Somnomed Limited · ASX:SOM
Somnomed — H1 FY2021 Earnings Presentation
27 slides from Somnomed's earnings presentation, Feb 23, 2021
Slide 1: Investor Presentation Half Year FY2021
For personal use only Investor Presentation Half Year FY2021
Slide 2: Disclaimer
Disclaimer For personal use only This document has been prepared as a summary only and does not contain all information about the Company’s assets and liabilities, financial position and performance, profit and losses and the rights and liabilities attaching to the Company’s securities. This documen
Slide 3: Agenda
Agenda For personal use only First half results summary Vision and market opportunity Financial information Future horizons Second half outlook 3
Slide 4: First half results summary
For personal use only First half results summary 4
Slide 5: HY21 at a glance
HY21 at a glance For personal use only Revenue EBITDA1 Cash A$30.8m (-7% PCP) A$3.2m (+7% PCP) Net cash remains A$22.7m Europe +2% and APAC +1% PCP Costs well managed Prudent use of funds North America -23% PCP Future horizon investments begun Bank debt fully repaid Summary of the period Despite the
Slide 6: Vision and market opportunity
For personal use only Vision and market opportunity 6
Slide 7: Vision/Mission
Vision/Mission For personal use only Vision: SomnoMed will be a leader in the treatment of patients suffering from obstructive sleep apnea and relevant adjacent conditions Mission: Advancing the adoption and acceptance of the treatment therapies by medical specialists, dentists, patients and insurer
Slide 8: Obstructive sleep apnea
Obstructive sleep apnea For personal use only Obstructive sleep apnea (OSA) is a disorder that occurs when a person’s breathing is interrupted during sleep because the airway becomes blocked 8
Slide 9: OSA market - 1.36 billion patients suffer globally
OSA market - 1.36 billion patients suffer globally For personal use only Affects 9% of women and 25% of men globally Large addressable markets of mild OSA suffers (millions) 54 Moderate and severe OSA patients ~400 million 26 23 22 Mild OSA patients ~ 900 million * 3 Benjafield et.al : Estimation of
Slide 10: CPAP therapy compliance – first dilemma
CPAP therapy compliance – first dilemma For personal use only 50% of patients do not use CPAP after 6 months1 CPAP patient compliance decreases over time Clinical Insight 100% 100% “The findings are sobering. Our data suggest that 90% despite numerous changes to machine and mask 80% dynamics as well
Slide 11: CPAP therapy compliance – second dilemma
CPAP therapy compliance – second dilemma For personal use only Comparison of CPAP and COAT™ with the Effectiveness Equation Compares CPAP and COAT™ over a complete night’s sleep Interactive sales tool that allows Sleep Physicians to determine which therapy is more effective for their patient Apnea e
Slide 12: History of continued innovation centered around the patient
History of continued innovation centered around the patient For personal use only 2018 2020 Digital manufacturing New Board platform and MD 2014 2010 MASPAP study Manufacturing (Philips & ISO 13485 Cistulli) 2019 SomnoDent® 2018 2008 Avant France CE mark 2013/2014 2014 2017 reimbursement Europe Somn
Slide 13: Positioned for growth
Positioned for growth For personal use only Technology driven Investment in the technology pathway to unlock true COAT™ potential Best in class service and technical support Growing and extensive sales and distribution footprint in both dental and medical channels Treatment focused Design and innova
Slide 14: Financial information
For personal use only Financial information 14
Slide 15: Group total revenues by quarter
Group total revenues by quarter For personal use only $35.0m -7% $33.3m $30.0m $30.8m $25.0m -9% $20.0m $18.7m -6% $17.1m $15.0m $14.6m $13.7m $10.0m $5.0m $0.0m Q1 Q2 1H FY20 FY21 15
Slide 16: Regional total revenues by quarter
Regional total revenues by quarter For personal use only North America Europe APAC $14.0m $20.0m +2% $3.0m +1% -23% $18.0m $18.6m $18.3m $2.7m $2.7m $12.0m $12.3m $2.5m $16.0m $10.0m $14.0m $9.5m $2.0m $12.0m +3% $8.0m +7% -29% $10.0m $10.6m $1.5m $10.3m -4% $7.0m $1.5m 0% $6.0m $1.4m -14% $1.3m $8.
Slide 17: Margins maintained
Margins maintained For personal use only Revenue (A$m) Gross margin (A$m) $35.0 $20.0 $18.0 $0.2m $30.0 $1.6m $16.0 $5.7m $14.0 $25.0 $1.9m $12.0 $20.0 $10.0 $18.1m $8.0 $16.2m $15.0 $30.8m $6.0 $23.2m $10.0 $4.0 $2.0 $5.0 $0.0 MAS * Other Revenue Managed Care Group % Gross $0.0 Margin of 70% 88% 4%
Slide 18: EBITDA growth
EBITDA1 growth For personal use only EBITDA (A$m)1 $3.5m Maintained gross margin percentage even at lower group revenues +7% $3.2m $3.0m Cost management $3.0m • Travel restrictions due to COVID-19 • Increased virtual vs. physical meetings $2.5m • Repurposed sales and marketing expenditure • General
Slide 19: Profit and loss summary
Profit and loss summary For personal use only A$m 1H21 1H20 % Revenue 30.8 33.3 (7%) Gross margin 18.1 19.5 (7%) Regional sales & marketing expenses (7.1) (8.5) (17%) Regional administrative expenses (5.1) (5.1) 0% Regional sales and marketing expenses: Operating profit 5.9 5.9 1% Travel restriction
Slide 20: Summary balance sheet and cash flow
Summary balance sheet and cash flow For personal use only Statement of financial position Statement of cash flows A$m Statutory Statutory A$m Statutory Statutory 31 Dec 2020 30 Jun 2020 31 Dec 2020 30 Jun 2020 Cash and cash equivalents 25.1 30.2 EBITDA(1) 3.2 4.7 Inventories 2.1 2.2 Movement in work
Slide 21: Future horizons
For personal use only Future horizons 21
Slide 22: Our future horizons
Our future horizons For personal use only + + Advancing treatment and Positioning the patient’s Technology building the core alternative driven Category leadership in a multi-billion dollar opportunity 22
Slide 23: Growing the sector through positioning the patient's alternative
Growing the sector through positioning the patient’s alternative For personal use only Show Sleep Physicians how Intensified efforts to position COAT™ and CPAP can be Effectiveness COAT™ as an effective alternative equally effective over a Equation to CPAP drives increases in patient’s full night of
Slide 24: Investing to achieve category leadership
Investing to achieve category leadership Financial framework for future growth and profitability1 For personal use only Accelerated Balanced Mature growth growth growth invest EBITDA Top & Priority Top line bottom line Bottom line into future horizons Annual revenue >20% 15-20% 10-15% growth to acce
Slide 25: Second half outlook
For personal use only outlook Second half 25
Slide 26: Second half outlook
Second half outlook For personal use only FY21 guidance Key considerations Key strategic objectives No guidance is currently Stabilise and respond to Treatment focused provided for the second half changing market conditions FY21 due to the uncertainties Medical sales and marketing created by COVID-1
Slide 27: For further information please contact
For personal use only For fur ther infor mation please contact: Corporate Investors Mr. Neil Verdal-Austin Mr. Craig Sainsbury CEO SomnoMed Market Eye +61 406 931 477 +61 428 550 499 Nverdal-austin@somnomed.com Craig.sainsbury@marketeye.com.au