Slide 1: Bactiguard Infection Protection Full year presentation
Bactiguard Infection Protection Full year presentation 7 February, 2019 1
Slide 2: Financial highlights Q4
Financial highlights Q4 • Q4 revenues of MSEK 42.1 (41.4) - 2% higher than in 2017 • BIP sales increased by 96% and amounted to MSEK 14.4 (7.4), driven by major order from China and European growth • License revenues were lower at MSEK 27.3 (31.1) - BD revenues were higher, while new revenues were l
Slide 3: Financial highlights full year 2018
Financial highlights full year 2018 Eventful year with strong growth in the BIP portfolio • Revenues of MSEK 163.2 (153.6) - 6% higher than in 2017 • BIP sales increased by 86% to MSEK 40.6 (21.8) – China accounts for large part of the growth, but other regions and improved product mix also contribu
Slide 4: Operational highlights
Operational highlights • CE-mark for orthopaedic trauma implants • Partnership with Well Lead moving ahead at high pace, new order delivered in Q4 • BIP sales almost doubled • New distribution partnership with Mediplast for the Nordic and Benelux countries • Product approval for Egypt finally in pla
Slide 5: Orthopaedic trauma implants, OrthoSyn Class IIb
Orthopaedic trauma implants, OrthoSyn Class IIb • OrthoSyn are femoral and tibial trauma implants, intended for the internal fixation of fractures and reconstruction of bones in a portfolio of over 2 000 articles, which fall under one of these four categories: Femoral blade • Femoral/tibial nails •
Slide 6: Potential new applications for licensing or BIP portfolio
Potential new applications for licensing or BIP portfolio Global markets MUSD Orthopedic implants 22 700 Trauma implants 5 600 Coronary stents 5 370 Dental implants 4 500 BIP portfolio Foleys CVCs ETTs 1 800 Intermittent Urinary 1 500 PIVC 1 440 Vascular Grafts 1 100 Ureteral stents 335 Hemodialysis
Slide 7: Market update
Market update Europe • Major Swedish Foley and CVC tenders won in 2018 • New partnership for Nordic and Benelux countries • Upscaling activities in Germany MEA China • Partnership with Well Lead moving ahead at • Egyptian registration in place high pace • Somewhat subdued development • Second produc
Slide 8: Swedish presence
Swedish presence BIP Foleys procured for 70% and BIP CVCs for 13% of total population Stockholm region & County councils Gotland without tenders 23% 30% Blekinge 2% Kronoberg 2% Kalmar 2% Västra Götaland Värmland region 3% Halland 17% 3% Skåne region Source: SCB (statistics Sweden) 2016 Östergötland
Slide 9: Licensing business
Licensing business BD (C.R. Bard) • Successful partnership since 1995 • Bactiguard coated Foley catheters for the US, Japan and UK/Ireland • Generating stable annual revenues Vigilenz Medical Devices • Bactiguard coated orthopaedic trauma implants for the ASEAN markets • CE mark awarded in December
Slide 10: Business model
Business model Two lines of business License BIP Portfolio 1 2 3 4 BD, Vigilenz, Smartwise BIP Foley BIP ETT BIP CVC and Well Lead License BIP revenue License agreements for Direct sales of own product portfolio various applications through longstanding partnerships 10
Slide 11: Financial highlights
Financial highlights Fourth quarter (October-December 2018) Highlights • Revenues of MSEK 42.1 (41.4), an increase of 2% • BIP sales of MSEK 14.4 (7.4), 96% higher than last year, mainly driven by major order from China and growth in Europe • No new license revenues in Q4 2018, last year included 4.
Slide 12: BIP revenues
BIP revenues Supplied products • Revenues from BIP-products of MSEK 14.4 (7.4) in Q4 • Full year revenues amounted to MSEK 40.6 (21.8), an increase of 86% • New distribution agreement for China has fuelled growth, other regions and an improved product mix also contributed
Slide 13: Development in revenues from BIP products
Development in revenues from BIP products Supplied products • Strong Q2 and Q4 in 2018 • Lower activity in Q3 • 86% increase FY 2018 vs 2017 • 17% CAGR over this time period
Slide 14: Revenue distribution
Revenue distribution Income distribution
Slide 15: Cash flow and liquidity
Cash flow and liquidity Cash flow fourth quarter (October - December) • Operating cash flow of MSEK -5.0 (-5.8) • Net Cash position of MSEK 1.9 (11.6) • Liquidity of approximately MSEK 28 • Proceeds from disposal of receivables of MSEK 12.8 in Q1 2019 15
Slide 16: Financial targets
Financial targets • Average sales growth of 20% per annum for a 5-year period, with 2015 as the base year – starting point MSEK 118.5 • EBITDA margin of at least 30% at the end of the 5-year period (by 2020) • Equity ratio of at least 30% • Over time uphold a dividend policy of 30-50% of net profit,
Slide 17: Concluding remarks
Concluding remarks • Revenues growing, fueled by BIP sales • BIP sales increased by 86% in 2018 o Strong growth in China, supported by Europe and India o Improved product mix • License revenues lower than in 2017 o BD revenues at par with 2017 – stable underlying business o New license revenues lowe
Slide 18: Our vision
OUR VISION Eliminate healthcare associated infections to 1. save lives 2. reduce cost and 3. limit antimicrobial resistance, through preventive standards of care. 18
Slide 19: Bactiguard representatives
Bactiguard representatives Christian Kinch, CEO Switchboard +46 8 440 58 80 christian.kinch@bactiguard.se @ChristianKinch Cecilia Edström, CFO Cell phone +46 72 226 23 28 cecilia.edstrom@bactiguard.se @EdstromCecilia 19