Medartis Holding Ag · SIX:MED
Medartis — FY2022 Earnings Presentation
31 slides from Medartis's earnings presentation, Mar 14, 2023
Slide 1: 2022 Full-year Results
2022 | Full-year Results Basel, 14 March 2023 Christoph Brönnimann CEO | Dirk Kirsten CFO
Slide 2: Disclaimer
Disclaimer This communication does not constitute an offer or invitation to subscribe for or purchase any securities of Medartis Holding AG. This publication may contain certain forward-looking statements and assessments or intentions concerning the company and its business. Such statements involve
Slide 3: Agenda
Agenda Agenda Highlights of the year 2022 Christoph Brönnimann, CEO Operational and financial review Dirk Kirsten, CFO Strategy and business update Christoph Brönnimann, CEO Outlook 2023 Christoph Brönnimann, CEO Q&A ® Medartis All rights reserved ∣ 3
Slide 4: Highlights of the year 2022
Highlights of the year 2022 Christoph Brönnimann, CEO
Slide 5: 2022 Key figures
2022 │Key figures NET SALES REVENUE GROWTH CHF 182.8 million +17.8% CER1 vs. PY − Strengthening our competitive position in most − Growth in line with mid-year guidance markets despite volatile business environment − Organic growth2: +14.6% excl. custom manufacturing business − Double-digit growth i
Slide 6: 2022 Business highlights
2022 │Business highlights − Market share gains across all product categories with low double-digit increases − We are particularly pleased with our performance in EMEA and LATAM − APAC still struggled with low activity levels in elective procedures for most of the year − Despite double-digit organic
Slide 7: 2022 Innovation highlights
2022 │ Innovation highlights Launch of the 3.5 straight plating sytem complementing our ankle trauma portfolio First clinical cases and market acceptance phase for LapiPrep concluded. Bunion correction system that can be used with Medartis plates indicated for TMT fusion Full US launch in March 2023
Slide 8: 2022 Promising partnership
2022 │Promising partnership − We have signed an exclusive global distribution agreement with the Australian based Field Orthopedics − The NX Nail system addresses the growing need of surgeons for an efficient, less invasive treatment that enables rapid recovery of patients after finger fractures − N
Slide 9: Investments and M&A have increased Medartis' team to 866 people
Investments and M&A have increased Medartis' team to 866 people Headcount development year-on-year (organic1) 13% 18% 2022: 866 2021: 684 Total: +27% +182 people Organic: +14% 5% 20% 8% HQ EMEA APAC LATAM USA 1 97 employees joined Medartis through the NSI acquisition in May and 7 positions were affe
Slide 10: Mario Della Casa joins EMB as Chief Operating Officer (COO)
Mario Della Casa joins EMB as Chief Operating Officer (COO) − New senior leadership position of Chief Operating Officer (COO) created − Mario Della Casa filled the position. He brings a wealth of industry experience expertise in the medical device and automotive industries to the company, making him
Slide 11: Operational and financial review
Operational and financial review Dirk Kirsten, CFO
Slide 12: Double-digit organic growth outside APAC
Double-digit organic growth outside APAC Net sales in million CHF, organic growth yoy Organic +14,6% CER +17.8% 5,1 182,8 4,0 177,7 4,0 1,1 13,5 159,9 -4,7 155,1 17.3% 12.8% 3.5% 27.7% FY 2021 FX FY 2021 EMEA US APAC LATAM FY 2022 NSI1 FY 2022 @ CER underlying 1 Sales from NSI’s third party custom m
Slide 13: All segments grew in double digits
All segments grew in double digits Organic Organic FY 2022 revenue by product category growth yoy @CER FY 2022 revenue by geography growth yoy @CER Upper extremities 123.8 14.0% US 41.0 12.8%1 Lower extremities 28.2 19.3% EMEA 91.4 17.3% CMF & other 25.7 13.0% APAC 32.1 3.5% products1 NSI 3rd party
Slide 14: Gross margin adversely affected by NSI acquisition
Gross margin adversely affected by NSI acquisition in % of net sales 83.9% -0.5% (1.6PP) 83.4% -0.1% -0.1% -0.3% -1.2% Moderate Higher sales High production 81.8% growth in from 3rd efficiency Australia and party maintained the US products 3rd party custom manufacturing products Reported Gross FX Gr
Slide 15: Increased customer activities and investments in the subsidiaries
Increased customer activities and investments in the subsidiaries in CHF million and % of net sales +19% +0.5 PP 7,2 151,4 21,0 144,3 123,1 -1,5 1,6 NSI 121,6 Ca. additional 100 people hired in sales subsidiaries (excl. US manufacturing); Increased sales and T&E activities 77.0% 78.4% 78.9% 82.8% OP
Slide 16: EBITDA margin affected by acquisition
EBITDA margin affected by acquisition in % of net sales 17.2% (2.7 PP) -1.7% 15.5% -0.7% -2.1% 12.8% -3.9% 8.9% EBITDA margin FX EBITDA margin Change in Change in Underyling EBITDA impact one-offs EBITDA 2021 reported 2021 @CER underlying underlying margin 2022 margin 2022 margin - OPEX margin - COG
Slide 17: Net margin impacted by one-offs
Net margin impacted by one-offs in CHF million M&A costs (NSI) and China 6.8 -13.0 closure; US reorganisation 4.3% 7.2 1.5 Weaker EURO and Further tax USD; acquisition optimisation costs1 (3.2%) 0.8% -2.5 2.8 -5.8 2 Net profit Operating result Financial result Tax Reported net profit One-offs Net pr
Slide 18: Cash holdings mainly reduced due to M&A payments
Cash holdings mainly reduced due to M&A payments in CHF million Repayment of 82.6 -3.9 lease liability -13.1 -3.9 61.7 -39.8 ▪ NSI purchase price ▪ Lower operation ▪ Increased stake in result Higher KeriMedical ▪ Increased NWC CAPEX (Inventory, sets & receivables) -1.3 20.6 Cash position Operating I
Slide 19: Strategy and business update
Strategy and business update Christoph Brönnimann, CEO
Slide 20: Our strategy and priorities
Our strategy and priorities Strategy Short- to medium-term priorities Favorable demographics DELIVER INNOVATION 1 - - Launch NSI legacy products in the US Global launches in all segments Enhance sales Become innovation - Expand digital offering focus leader in key indications PROFITABLE GROWTH STRAT
Slide 21: Current and upcoming product introductions in 2023
Current and upcoming product introductions in 2023 CalcShift™ CCS Extension & Foot Ortho (Calcaneal Metacarpal Full Launch Global Osteotomy) Full Launch Global Full Launch US LapiPrep KeriFlex® CMX Ankle Full Launch US US launch EMEA Launch StealthFix Distal Ulna Plate CMX Orthognathic Full Launch U
Slide 22: Intensified cooperation with KeriMedical
Intensified cooperation with KeriMedical − We increased our stake in KeriMedical from 25% originally to just under 30% in 2022 − In March we signed an agreement to purchase an additional stake of 18%, bringing our total holding to 47% − Follows Medartis’ strategy to become a one- stop shop for hand
Slide 23: Exploiting growth potential in our main segments
Exploiting growth potential in our main segments − All markets: our key priority is to continue to gain share in distal radius and hand. We have the most comrehensive ALL MARKETS portfolio, clinical data and a well-trained sales force − All markets: The F&A Ortho system complements the F&A Trauma sy
Slide 24: Expansion of US sales channel underway
Expansion of US sales channel underway − Further expanding and strengthening the US distribution channel with the aim of increasing exclusivity, Medartis' share- of-voice and surgeon conversion − Hiring more agents with a focus on extremities to cover more indications in Top20 territories − Growing
Slide 25: Operations in the USA simplified after the merger
Operations in the USA simplified after the merger − Setup streamlined in March 2023 (operations moved into single location) − Organisational structure simplified and cost-efficiency improved − Commercial capabilities strengthened − Project launched to produce semi-finished Medartis plates and screws
Slide 26: Outlook 2023
medartis® PRECISION IN FIXATION Outlook 2023
Slide 27: Outlook 2023
Outlook 2023 (barring any unforeseen circumstances) % Organic sales growth Underlying EBITDA margin 15%-18% 13%- 15% continued recovery in benefiting from its elective procedures and operating leverage hospital capacities ® Medartis All rights reserved │ 27
Slide 28: Q&A
medartis® Q&A
Slide 29: Annual Report 2022 now available for download
Annual Report 2022 incl. sustainability and remuneration section now available for download Download here ® Medartis All rights reserved │ 29
Slide 30: Upcoming corporate events
Upcoming corporate events 2023 Event Broker Destination 14 March 2022 Full-year results publication Video webcast 15 March Roadshow ZKB Zurich 21 March Investor meetings (online) Octavian Continental Europe 22 March Investor meetings (online) Credit Suisse US 30 March Roadshow ZKB London 03 April Ro
Slide 31: Restoring quality of life
“Restoring quality of life” medartis