Slide 1: Bactiguard Q3 presentation
1 Bactiguard Q3 presentation November 9, 2017
Slide 2: WHO: The world is running out of antibiotics
2 WHO: The world is running out of antibiotics… Source: www.who.int/mediacentre/news/releases/2017/running-out-antibiotics/en/
Slide 3: Infections and antimicrobial resistance (AMR)
3 Infections and antimicrobial resistance (AMR) A major European and Global challenge World Health Organization: There is a worldwide consensus that urgent action is needed to prevent and control the spread of antibiotic- resistant organisms and, in health care, effective prevention and control (IPC
Slide 4: The role of infection prevention and control
THE ROLE OF INFECTION PREVENTION AND CONTROL IN PREVENTING ANTIBIOTIC RESISTANCE IN HEALTH CARE cm l IPC and WASH in health care * On average, 1 in every 10 etme ate Patients is affected by health Effective infection prevention and control (IPC) and water, The building blocks of IPC and WASH in heal
Slide 5: Key Priorities 2017
5 Key Priorities 2017 Double sales of our own product portfolio Develop new license businesses Cost control Long-term financing solution Close in on our long-term financial targets of 20% growth and 30% EBITDA margin
Slide 6: Highlights in Q3 and early Q4 2017
6 Highlights in Q3 and early Q4 2017 Eight consecutive quarters of increasing BIP sales, based on rolling twelve-month figures Flat revenues in Q3. BIP sales increased by 48% and license revenues by 4%. Bard revenues weaker in the quarter, but stable over the nine-month period. EBITDA margin o
Slide 7: Market update Q3 2017
7 Market update Q3 2017 Europe • Breakthrough in Swedish tenders • Launch in Italy • Working on adding new markets MEA CHINA • New major delivery • Region back on track • Training, sales activities and • New orders from South Africa and evaluations ongoing at high intensity Egypt • CVC approved in H
Slide 8: BIP Foley catheter procured for 65% of Swedish population
8 BIP Foley catheter procured for 65% of Swedish population Stockholm region & Gotland County councils 23% without tenders 35% Kronoberg Västra Götaland region 2% 17% Blekinge 2% Kalmar 2% Värmland Skåne region 3% Halland 3% 13% Source: SCB (statistics Sweden) 2016
Slide 9: Increasing usage through sales activities and training
9 Increasing usage through sales activities and training Focus on Stockholm region, as tender went live on November 6, 2017 One additional sales rep allocated to Stockholm Bactiguard Infection Protection Clinical Implementation Program (BIP CIP): Several seminars for heatlhcare professionals organiz
Slide 10: Licensing business
10 Licensing business C.R. Bard • Successful partnership since 1995 • Bactiguard coated Foley catheters for the US, Japan and UK/Ireland • Generating stable annual revenues • BD acquisition expected to complete in Q4, 2017 Vigilenz Medical Devices • Bactiguard coated orthopaedic implants for the ASE
Slide 11: Supplied products
Financial Development in revenues from BIP product overview 11 Supplied products • Development in revenues per quarter from BIP products, rolling 12 months. • Eight consecutive quarters of growth • 18% CAGR in this time period.
Slide 12: Supplied products
Delivered products Financial overview 12 Supplied products • Revenues from BIP products in Q3 of MSEK 5.2 (3.5), corresponding to 137,000 (87,000) units. • For the full year 2016, 418,000 BIP products were delivered, generating revenues of MSEK 15.8
Slide 13: Financial highlights
13 Financial highlights Highlights Third quarter (July-September 2017) • Revenues of MSEK 34.8 (34.9), minus 0.4% (explained by decrease in other revenues, including exchange rate differences). • EBITDA of MSEK 8.4 (9.7), 24% EBITDA-margin Nine-month period (January-September 2017) • Revenues of MSE
Slide 14: Revenue streams
14 Revenue streams Two revenue streams in the income statement License BIP portfolio C.R. Bard (sales since 1995), BIP Foley BIP ETT BIP CVC Vigilenz and Smartwise 1 2 License BIP revenue From a product perspective Bactiguard has two lines of business; Licenses and the BIP portfolio, acknowledged in
Slide 15: Income distribution
Revenue distribution Financial overview 15 Income distribution Jul-Sep Jul-Sep Jan-Sep Jan-Sep MSEK 2017 2016 2017 2016 License revenues 24,3 27,1 77,3 77,1 New license revenues 4,0 0,0 17,1 0,0 Sales of BIP products 5,2 3,5 14,5 10,1 Other revenues 1,4 4,3 3,3 7,6 Total Revenues 34,8 34,9 112,3 94,
Slide 16: License revenues from C.R. Bard
License revenues from C.R. Bard Financial overview 16 (SEKm) Q1 Q2 Q3 9 mths Q4 Full year 2013 21,6 19,3 21,3 62,2 20,5 82,7 2014 22,5 22,8 24,3 69,6 20,2 89,7 2015 26,8 25,8 56,8 109,4 15,9 125,3 2016 22,8 27,2 27,1 77,1 25,9 103,0 2017 27,4 25,7 24,3 77,3 Of which Of which currency effect currency
Slide 17: Key figures
Key figures Financial overview 17 Key figures Jul-Sep Jul-Sep Jan-Sep Jan-Sep Key figures • EBITDA (Q3) MSEK 8.4 (9.7), 2017 2016 2017 2016 24% margin Revenues, SEKm 34,8 34,9 112,3 94,7 EBITDA, SEKm 8,4 9,7 25,6 10,6 • EBITDA (Nine-month) MSEK EBITDA margin, % 24% 28% 23% 11% 25.6 (10.6), 23% margi
Slide 18: Financial flexibility and strength
Financial overview 18 Financial flexibility and strength Financial position • Equity ratio of 61 % • Net debt of MSEK 144.8 • Cash position of MSEK 19.5. Overdraft facility of MSEK 30, not utilized at 30 September. Loans • Bank loan: MSEK 100, maturing 31 December 2017 • Loan major shareholders: MSE
Slide 19: Three-year financing secured
19 Three-year financing secured • Three-year MSEK 180 credit facility at Skandinaviska Enskilda Banken (SEB) - Revolving credit/overdraft facility of MSEK 30 - Term loan of MSEK 150, amortized by SEK 35 million until maturity • Replaces current bank financing of MSEK 130 and MSEK 50 loan from the co
Slide 20: Financial targets
20 Financial targets • Average sales growth of 20% per annum for a 5-year period, with 2015 (adjusted for the additional order from C.R. Bard) as the base year – starting point MSEK 118.5 • EBITDA margin of at least 30% at the end of the 5-year period • Equity ratio of at least 30% • Over time uphol
Slide 21: Concluding remarks
21 Concluding remarks Eight consecutive quarters of increasing BIP sales Breakthrough in Swedish tenders, Stockholm, Skåne and VGR Middle East back on track Driving sales in China and India Higher license revenues Stable revenues from Bard Additional revenues from Smartwise Potential for more in
Slide 22: More information is available at www.bactiguard.se
22 More information is available at www.bactiguard.se For questions and additional information, please contact: Christian Kinch, CEO: +46 8 440 58 80 christian.kinch@bactiguard.se Cecilia Edström, CFO: +46 72 226 23 28 cecilia.edstrom@bactiguard.se