Ekf Diagnostics Holdings Plc · LSE:EKF
Ekf Diagnostics — H1 2022 Earnings Presentation
27 slides from Ekf Diagnostics's earnings presentation, September 2022
Slide 1: EKF Diagnostics Holdings plc Interim Results Presentation
EKF Diagnostics Holdings plc Interim Results Presentation September 2022
Slide 2: Presenters
Presenters Mike Salter CEO • Joined EKF in October 2017. Chief Executive Officer of EKF Diagnostics since 1st October 2021 • As EKF US President Mike was responsible for overseeing the growth of EKF’s business in the Americas, and introduced the implementation of contract manufacturing COVID testing
Slide 3: Introduction & Overview
Introduction & Overview ar Diagnostics
Slide 4: The equity story – strong opportunity for shareholder returns
The equity story – strong opportunity for shareholder returns H1 financial Strong Attractive Growth performance established core market dynamics prospects • £37.5m revenues and • +11.5% in non-COVID • Established businesses in • Continued growth in Adj-EBITDA of £9.7m H1 sales global growth markets
Slide 5: Investing in growth: profitable, cash generative, global diagnostics business
Investing in growth: profitable, cash generative, global diagnostics business OUR DIVERSIFIED RANGE OF PRODUCTS AND SERVICES POINT CENTRAL LIFE SCIENCES LABORATORY CONTRACT OF CARE LABORATORY TESTING MANUFACTURING Portfolio of analysers Manufacture of clinical Specialist manufacture of enzymes and C
Slide 6: Established global platform
Established global platform • Point of Care production across US and DE (Barleben, Leipzig) • Central Lab production in US (Texas) Manufacturing sites 6 Global facilities 12 • Life Sciences facilities in Elkhart & Analysers in market c.80k South Bend (Indiana, US) Tests sold (pa) c.80m Countries sol
Slide 7: Financial Review (H1 2022)
Financial Review (H1 2022) 7 a ar Diagnostics
Slide 8: 2022 Interims – Financial Highlights
2022 Interims – Financial Highlights Revenue Revenue Gross Profit Adj. EBITDA £37.5m Growth £17.7m £9.7m (£38.6m 2021) (non-COVID) (2021: £18.5m) (2021: £12.8m) Strong growth in established core business 11.5% GM% maintained despite inflationary pressures COVID transition costs excluded PBT Net Cash
Slide 9: 2022 Interims – Business Unit Updates
2022 Interims – Business Unit Updates POINT CENTRAL LIFE SCIENCES LABORATORY CONTRACT OF CARE LABORATORY TESTING MANUFACTURING £13.8m £6.3m £2.0m £2.1m £8.6m (↑ 9.7%) (flat) (↑ 96%) (2021: nil) (↓ 51%) • Continued growth • Strong demand • Growth in large • Revenue activity • Revenue activity post-CO
Slide 10: 2022 Interims – Strong Established Core Performance
2022 Interims – Strong Established Core Performance PoC Revenue Development Central Lab Revenue Development Life Sciences Revenue Development 16 7 2.5 14 6 2.0 12 5 10 1.5 4 £'m £'m £'m 8 3 1.0 6 2 4 0.5 2 1 - - - H119 H120 H121 H122 H119 H120 H121 H122 H119 H120 H121 H122 Diabetes Hematology Other
Slide 11: 2022 Interims – Cash Flow Summary
2022 Interims – Cash Flow Summary Strong cash generation from operating activities (includes US inventory payment) £6.8m used in share buyback and external investments Focus now on investment into trading activities - no further external investments planned in 2022 Significant capex with further H2
Slide 12: Performance & Growth opportunities by Business Segment
Performance & Growth opportunities by Business Segment
Slide 13: Point-of-Care
Point-of-Care Hematology Business drivers Performance Growth prospects • Delivering rapid results at the • H1 revenues +9.7% vs 2021 • Collaborations with strategic Diabetes care point-of-care with high quality, technology partners • +3.2% vs. 2019 (pre-COVID): robust and easy to use • Expand platfo
Slide 14: Remote Testing in Peru
Remote Testing in Peru Fighting anemia in Peru and improving the lives of hundreds of thousands of women and children 13
Slide 15: Central Laboratory
Central Laboratory Business drivers Performance Growth prospects Business drivers Performance Growth prospects • Economical, quality open- • H1 revenues in-line with 2021 • Expansion of private label channel reagents that provide • Q2 supply issues resolved opportunities with channel accurate reprod
Slide 16: Life Sciences
Life Sciences Business drivers Performance Growth prospects Business drivers Performance Growth prospects • Demand for precision • H1 revenues +96% vs 2021 • Leverage existing strong OEM fermentation technology and • Growth across existing customer relationships services customer base shows demand •
Slide 17: Life Sciences Investment
Life Sciences EKF Life Sciences - South Bend, IN Investment South Bend, IN 25,000 SqFt Fermentors: • 65L • 300L • 1,500L • 3,000L • 10,000L • 14,500L Elkhart – c.20 miles Chicago – c.90 miles 16
Slide 18: Laboratory Testing
Laboratory Testing Business drivers Performance Growth prospects Business drivers Performance Growth prospects • Quick turnaround from sample • H1 revenues at £2.1m • Toxicology, Respiratory to result provides first class (2021: nil) Pathogen Panel and customer experience Cannabinoid tests now live
Slide 19: Contract Manufacturing
Contract Manufacturing Business drivers Performance Growth prospects Business drivers Performance Growth prospects • Demand for non-COVID related • H1 revenues down 51% • Build on pre-pandemic products and services vs. 2021, reflecting shift to customer base • Need for total wing-to-wing non-COVID b
Slide 20: Summary & Outlook
Summary & Outlook ar Diagnostics
Slide 21: Outlook
Outlook Revenue Investment Growth • Resilient and diversified • Life Sciences on track to grow • Organic growth from further with high-potential innovation in products and revenue streams in attractive following investment services in PoC, Central Lab high-value segments and Life Sciences leveraging
Slide 22: Appendices
Appendices ar Diagnostics
Slide 23: Summary Financials Income Statement
Summary Income Statement Financials H1 2022 £k H1 2021 £k +/- £k Point of Care (PoC) 13,756 12,534 1,222 Central Laboratory 6,295 6,325 (30) Life Sciences 2,024 1,033 991 Laboratory Testing 2,141 - 2,141 Contract Manufacturing 8,570 17,469 (8,899) Other 4,685 1,198 3,487 Revenue 37,471 38,559 (1,088
Slide 24: Summary Financials Balance Sheet
Summary Balance Sheet Financials H1 2022 £k H1 2021 £k FY 2021 £k Property, plant, equipment 18,170 12,957 15,991 Intangible assets 43,387 35,134 41,894 Investments 1,566 12,818 7,789 Inventories 12,969 9,766 13,238 Trade / other receivables 12,236 16,107 13,428 Cash and cash equivalents 19,138 20,7
Slide 25: Summary Financials Adj. EBITDA Reconciliation
Summary Adj. EBITDA Reconciliation Financials Includes £k As Reported US Payment1 Restructuring2 Revenue 37,471 3,499 - Cost of sales (19,727) (1,902) 1,499 Gross profit 17,744 1,597 1,499 Administration expenses (14,473) (1,223) 183 Other income 880 859 - Operating profit 4,151 1,233 1,682 Deprecia
Slide 26: Non-executive Directors
Non-executive Directors Christopher Mills Julian Baines MBE Non-executive Chairman Non-executive Deputy Chairman Christopher founded Harwood Capital Management in 2011, a Julian was Group CEO of BBI where he undertook a management successor to its former parent company J.O. Hambro Capital buyout in
Slide 27: Disclaimer
Disclaimer The information contained in these slides and the accompanying oral presentation (together, the “Presentation”) has been prepared by EKF Diagnostics Holdings plc (the “Company”). The Presentation is subject to updating, completion, revision and amendment without notice and as such it may
EKF Diagnostics Holdings — H1 2022 Earnings Presentation on 6ix