Microport Scientific Corp. · HKEX:853
Microport Scientific — H1 2018 Earnings Presentation
29 slides from Microport Scientific's earnings presentation, 2018
Slide 1: 2018 Interim Earnings Release
OX 4 a jg SS gS ¥ , a Pa L en Ws ~ is 3 ANNIVERSARY 1998-2018 MicroPort MicroPort Scientific Corporation 2018 Interim Earnings Release
Slide 2: 20 Years in the Making
MicroPort™ MicroPort Scientific Corporation 20 Years in the Making Interim Results Highlights Financial Review Business Review Appendix — Financial Statement ate
Slide 3: Disclaimer
. . G) MicroPort™ : Disclaimer @MicroPort | < ae oe This document is for information purposes only and does not constitute or form part of any offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for any securities of MicroPort Scientific Corporation, an
Slide 4: 20 Years in the Making
@MicroPort™ | ee MicroPort Scientific Corporation ANNIVERSARY O 1 20 Years in the Making
Slide 5: Years in the Making
20 Years in the Making 1999 1998 Founded 2004 MicroPort™ MicroPort Scientific Corporation | 26 AMIVERSARY in Shanghai Catheter The First Sale -- PTCA Balloon Dilatation 8 © © 2010 First domestic DES product Firebird™ @ MicroPort Scientific Corporation "8 8 MicroPort Lifescience 2009 * Acquisition of
Slide 6: Global footprint and key facts
Chester, UK Clamart, France Amsterdam, Netherlands Saluggia, Italy Milan, Italy products offered hospitals covered o io) ro) 10) Mumbai, India Dongguan, China Jiaxing, China Suzhou, China times adwarded of tate Sci&Tech Progress Adward of China patents (applied & pending) Beijing, China @ Tokyo, Jap
Slide 7: Interim Results Highlights
@ MicroPort™ | ee MicroPort Scientific Corporation ANNIVERSARY O 2 Interim Results Highlights
Slide 8: 2018 1H Results Highlights
. . Y 2018 1H Results Highlights MicroPort | ot MicroPort Scientific Corporation ANNIVERSARY Orthopedics q Vi: p Yev Neurovascular * CRM consolidation since April 30" 2018 2018 Interim Results 8 * All growth rates and revenue amount have been adjusted to exclude foreign exchange impact
Slide 9: Revenue and profit highlights
Revenue: 309.9m, 35.3% YOY 7 (before excluding FX impact, 42.6% YON), driven by robust growth of key segments and core products: * Cardio: 21.1% YOY, domestic revenue of Firehawk™ 37.9% YOY, Firebird™ 16.3% yor? * Ortho: 8.4% YOYT, non-China Ortho 6.5% YOY, China Ortho 45.8% YOY * Endo: 51.4% YOY; N
Slide 10: Financial Review
03 Financial Review MicroPort™ MicroPort Scientific Corporation
Slide 11: Financial Review: Revenue by Segment and Region
Financial Review MicroPort | MicroPort Scientific Corporation ANNIVERSARY 2018 1H Revenue by Segment Consolidated Min Total 2018 1H Revenue by Region Revenue % in Total (USD: Million) Revenue (USD: Million) & Ortho 1221 39.4% ® China 145.4 46.9% B Cardio 106.9 34.5% @ Europe 70.7 22.8% | CRM 43.8 14
Slide 12: Revenue, Gross Profit Margin, Expenses, Net Profit
. ow apt oe MicroPort | oe MicroPort Scientific Corporation ANNIVERSARY 2018 1H Revenue 2018 1H Gross Profit Margin (USD: Million) (USD: Million} 2018 1H | 2 percentage joints 72.9% 7 2017 1H 70.8% Mnon-CRM Business m CRM Business 2017 1H 2018 1H 2018 1H Operational Expenses 2018 1H Net Profit/(Loss
Slide 13: Operating expenses breakdown
nancial Re Sales and Marketing Expenses (USD: Million) Administrative Expenses (USD: Million) MicroPort | “oe MicroPort Scientific Corporation ANNIVERSARY Research and Develop. Expense (USD: Million) 63.7 2017 1H 2018 1H @Mnon-CRM mmMCRM —*—S&M as% of sales O Sales and Marketing expenses increased b
Slide 14: Net Cashflow
. 7” ae OQMicroPort|| 26 MicroPort Scientific Corporation ANNIVERSARY Net Cashflow Net Cashflow from Operating Activity used in Investing Activities Net Cashflow. USD: Millian) (USD: Million) (USD: Million) (36) T8 214 50 (22) 330 (52) 2017 1H 2018 1H 2017 1H 2018 1H 2017 1H 2018 1H O Driven by robu
Slide 15: Business Review
O4 Business Review MicroPort™ MicroPort Scientific Corporation
Slide 16: Orthopedics Business
MicroPort’| “3¢> Orthopedics Business MicroPort Scientific Corporation ANNIVERSARY 2018 1H Revenue 2018 1H Revenue by Geographic Areas (USD: Million) (USD: Millon) 224.6 205.9 ae Aare Eg 3.4% 51.0 112.7 122.1 46.8 ie 38.0 196.9 198.8 ren : 32.4 33.0 107.2 114.1 17.4 16.6 11.4 12.8 i. Om 2015 2016 20
Slide 17: Cardiovascular Business
Cardiovascular Business MicroPort | “oe ANNIVERSARY Tye a0 MicroPort Scientific Corporation 2018 1H Revenue (USD: Million) Firehawk™ 165.6 Launch Map. 136.3 112 B2ar.1% “Gy.34 nly 2028, rrohawi™ has hoon vse n 34 122.0 al meme meee es nee 54 ES 106.8 . 88.2 52 = a5 154.4 Se > 116.6 i ‘ite 82.3 101.6
Slide 18: CRM Business
CRM Business MicroPort’| “3¢> MicroPort Scientific Corporation ANNIVERSARY 2018 1H non-China Business Revenue 2018 1H non-China Business Revenue by Region (USD: Million) (USD: Million} mmm Under LivaNova 35.8 6.0 Eo = Europe Asia Others 2015 2016 2017 2017 1H 2018 1H Non-China Business China Busines
Slide 19: Endovascular Business
Endovascular Business MicroPort™ | ae MicroPort Scientific Corporation ANNIVERSARY 2018 1H Revenue Sales Revenue by Products {USD: Million) (USD: Million) Bis1.4% mcostor'in 20181n 4 *56-8% 132.3% Bi24.0% 24.3 20181 10.8 . 151 18.6 | 19.9 6201711 14 a 6.9 13.1 438 | oa 36 ul 30 2015 2016 2017 2017 1
Slide 20: Neurovascular Business
Neurovascular Business MicroPort™ | ae MicroPort Scientific Corporation ANNIVERSARY 2018 1H Revenue Sales Revenue by Products (USD: Million) (USD: Million) Ischemic Hemorrhagic B33.6% ©2017 1H ' A 1 ' A 1 2018 1H 13.5 B30.7% Bv10.7% 8.7 8.3 4.6 73 6.2 3.6 2.2 24 Ll | — 2015 2016 2017 2017 1H 2018 1H
Slide 21: Electrophysiology Business
Electrophysiology Business @MicroPort | ee MicroPort Scientific Corporation ANNIVERSARY 2018 1H Revenue Sales by Products {USD: Million) (USD: Million) Sales Revenue International t: — Sates as ates m Domestic maa Te 34% id i 19% 0.7 0.6 0.8 8.3 a7 6.1 ae ' r ° ° 2017 1H 2018 1H 2017 1H 2018 1H mmm
Slide 22: Structural Heart Business
. . b Structural Heart Business MicroPort | ot MicroPort Scientific Corporation ANNIVERSARY TAVI 1-Year Outcome : Key Takeaways of VitaFlow™ Clinical Outcomes at 1 Year oa Lowall-cause mortality (2.7 %) H a No Major Stroke a No moderate or severe perivavular leakage a Good hemodynamic function a Sig
Slide 23: R&D Progress
R&D Progress Segment Orthopedics Cardiovascular CRM Product Domestically made knee system Domestically made hip system Firehawk™ Plus Firefighter™ NC Firesorb™ CompassAnalyzer™ PSA 1.5T & 3T MRI Compatibility Pacemaker SmartTouch™ programmer with bluetooth connectivity IS4 Leads DF4 leads (ICD and C
Slide 24: R&D Progress
R&D Progress Segment Endovascular Electrophysiology Neurovascular Structural Heart Product Minos™ Ultra Low Profile AAA Stent-Graft System Reewarm™ PTX Drug Coated Balloon Fontus ™ Branched Surgical Stent Graft System Talos™ Thoracic Stent-Graft System Steerable Introducer Circular mapping catheter
Slide 25: Appendix — Financial Statements
MicroPort™ MicroPort Scientific Corporation | 26 ANNIVERSARY O 5 Appendix — Financial Statements
Slide 26: Consolidated Income Statement
Consolidated Income Statement MicroPort | 2G MicroPort Scientific Corporation ANNIVERSARY Revenue 309,867 217,339 42.6% Cost of sales (90,438) (58,995) 53.3% Gross profit 219,429 158,344 38.6% Other revenue & net gain/(loss) 4,274 (2,522) -269.5% Research and development costs (41,791) (25,708) 62.6
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet MicroPort"| 23%) MicroPort Scientific Corporation ANNIVERSARY 31 Dec 2017 Fixed assote 357,795 304,403 Intangible assets 10.857 83,008 Prepayments for fixed assets 4,393 2401 Goodwill 190.340 54.458 Interest in associate 12747 13.908 Interest in Joint venture = 197 Other f
Slide 28: Consolidated Cash Flow Statement
MicroPort Scientific Corporation ANNIVERSARY (USD '000) 2018 1H 2017 1H Cash generated from operations 57,881 48,015 21% Net income tax paid (7,632) (6,682) 34% Net cash from operating activities 50,249 42,333 19% Net cash from investing activities (249,746) (35,764) 598% Net cash from financing act
Slide 29: MicroPort 1998-2018
() MicroPort’ 1998-2018