Advanced Medical Solutions Group Plc · LSE:AMS
Advanced Medical Solutions — H1 2023 Earnings Presentation
23 slides from Advanced Medical Solutions's earnings presentation, Sep 19, 2023
Slide 1: Advanced Medical Solutions Group plc
Advanced Medical Solutions Group plc
Slide 2: Financial Highlights
Financial Highlights Growth driven by strong performance in non-US markets + Revenue increased to £63.1 million (H1 2022: £58.3 million) * Adjusted profit before tax up to £13.8 million (H1 2022: £13.6 million) + Net cash decreased to £69.1 million (FY 2022: £82.3 million) following the acquisition
Slide 3: Operational Highlights (Including Post Period End)
Operational Highlights (Including Post Period End) Significant progress made in a number of key projects + Very good progress with enhanced US LiquiBand® route to market strategy + Acquisition of Connexicon increasing our ability to develop and commercialise innovative and differentiated adhesive an
Slide 4: Product Progress: LiquiBand®
Product Progress: LiquiBand® Europe and ROW * Strong ongoing LiquiBand® growth in UK, Germany and ROW * Connexicon revenues contributing to ex-US growth USA oan DLQUBWND ‘0 LaUBAND ous * Very good progress made towards establishing new partner agreements as part of enhanced route to market strategy
Slide 5: Product Progress: LiquiBand® XL
Product Progress: LiquiBand® XL LiquiBand® XL L + Evaluations and conversions for LiquiBand® XL continue to grow strongly if < . Significant, fast-growing $70 million market opportunity “~ New pack sizes and approvals expands application to 60cm wounds New US route to market strategy unlocks acceler
Slide 6: Product Progress: LiquiBandFix8®/LIQUIFIX™
Product Progress: LiquiBandFix8®/LIQUIFIX™ LiquiBandFix8®/LIQUIFIX™ approved in US and launching 21 September at American Hernia Society meeting * PMA approved by FDA ahead of schedule and seven months after submission + Agreement signed with TELA Bio Inc to commercialise the device in the US under
Slide 7: TBD 1 thread
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ < 10 sec ✓ 40+ 25/12 30/15 30/15 30/10+ 30/15 1 thread TBD $520/350 $480/350 $340 $580/490 7
Slide 8: Product Progress: SEAL-G® and SEAL-G® MIST
Product Progress: SEAL-G® and SEAL-G® MIST Clinical study + First human clinical study completed for 160 patients + Data being collected and to be used in marketing + Initial results indicate significant improvement in serious clinical leakage rate (1.25%) compared with reported rates (4.2 - 4.7%) +
Slide 9: SEAL-G® - Clinical Trial Conclusions
SEAL-G® - Clinical Trial Conclusions + Primary endpoint - the true proportion of subjects with a full sealant coverage * Successful application - 88.8% - 97.0% (95% confidence interval) * Significant & promising outcomes from the study, compared with large EU studies: * Reduction in Overall Leak Rat
Slide 10: Product Progress: Woundcare
Product Progress: Woundcare + Woundcare Business Unit growth was driven by: + Expanding distribution network for AMS’ own ActivHeal® range * Commercial success with Raleigh's pipeline of new products and special medical materials * These two initiatives have significant future potential and are expe
Slide 11: Acquisition Strategy
Acquisition Strategy Maintaining focus on delivering growth through further synergistic acquisitions Successfully integrated five innovative businesses over five years + Sealantis - Israeli sealant technology platform (2019) * Biomatlante - French surgical biomaterial technologies (2019) * Raleigh -
Slide 12: Financial Summary
Financial Summary
Slide 13: Financial Highlights
Financial Highlights Strong 20% growth from non-US markets * Revenues increased by 8% despite short-term disruption to LiquiBand® * R&D spend increased to £6.0 million (H1 2022: £5.4 million) reflecting ongoing investment in innovation and MDR + Adjusted pre-tax profit increased to £13.8 million (H1
Slide 14: Group Revenue Summary
Group Revenue Summary Increasingly diversified portfolio reducing reliance on specific markets H1 2023 Growth (constant fx) ° LiquiBand® US revenues 60.0 (itgutitard -28% -18% -8% 2% 12% 22% 32% disrupted by de-stocking us : : Cans associated with new partner — strategy but expected to bounce 00 ROW
Slide 15: H1 2023 Results: Surgical Revenue
H1 2023 Results: Surgical Revenue Revenue up 5%" to £39.4 million (H1 2022: £35.9 million) Advanced Closure Internal Fixation and Sealants Advanced Closure 15 + LiquiBand® revenue down 8%" to £17.0 million (H1 2022: £17.9 million) 2 + Strong performance in UK/Germany and ROW, offset by the impact 10
Slide 16: H1 2023 Results: Woundcare Revenue
H1 2023 Results: Woundcare Revenue Infection Management 14 Exudate Management 8 12 Revenue up 4%* to £23.7 million o (H1 2022: £22.4 million) ‘6 8 Infection Management 4 6 + Revenue up 5%* to £7.7 million (H1 2022: £7.2million) > 4 * Growth driven by more consistent orders for silver alginates 2 Exu
Slide 17: Operating Margins
Operating Margins + US LiquiBand® disruption (2023 only) and Organogenesis (2023-2026) has impacted expectations for Group operating margins * Surgical Business Unit - margins expected to recover strongly in 2024 through: * Strong US LiquiBand® growth * US Launch of LIQUIFIX™ + Ongoing long-term tre
Slide 18: H1 2023 Operating Margins
H1 2023 Operating Margins —£M Surgical Business Unit 40.0 29.8% 30.0% 30.0 25.6% 20.0 20.0% Surgical 10.0 10.0% + Adjusted operating margin decreased by 420bps 0.0 0.0% + Adverse mix effect from temporarily deflated sales H12022 12023 . of LiquiBand® to US partners mmm Sales £m Op profit £m (adj) Op
Slide 19: H1 2023 Cashflow
H1 2023 Cashflow ion Cash flows from operating activities: Profit from operations before exceptional items Depreciation and Amortisation Working Capital movements Share based payment expense Taxation Adjusted net cashflow from operating activities Acquisitions including earn-out payments Capital Inv
Slide 20: Balance Sheet to June 2023
Balance Sheet to June 2023 £ ion Property, Plant and Equipment and other Fixed Assets Goodwill and Acquired Intangibles Fixed Assets Inventory Receivables Cash Current Assets Creditors Lease liabilities Tax Liabilities Net Assets June 2022 27.9 116.0 143.9 22.7 22.2 75.3 120.2 (24.1) (9.4) (10.0) (4
Slide 21: Summary and Outlook
Summary and Outlook
Slide 22: Summary and Outlook
Summary and Outlook A number of key initiatives now in place to drive strong growth from 2024 + AMS continued to generate revenue and profit growth in H1 despite short-term US LiquiBand® disruption . Significant clinical and regulatory progress to enable the LIQUIFIX™ US launch and Seal-G® EU soft l
Slide 23: Advanced Medical Solutions plc
Advanced Medical Solutions plc Premier Park, 33 Road One, Winsford Industrial Estate, Winsford, Cheshire W7 3RT, UK Chris Meredith (Chief Executive Officer) Eddie Johnson (Chief Financial Officer) Michael King (Investor Relations) corporate@admedsol.com +44 (0)1606 863500 www.admedsol.com
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