Medical Developments International Limited · ASX:MVP
Medical Developments International — Investor Presentation (August 2022)
43 slides from Medical Developments International's investor presentation, Aug 4, 2022
Slide 1: FY22 Financial Guidance and $30M Capital Raising
FY22 FINANCIAL GUIDANCE AND $30M CAPITAL RAISING ASX:MVP - August 2022
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER The following notice and disclaimer applies to this investor presentation (Presentation or document) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information contained in this Presentation. By
Slide 3: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER financial information” under ASIC Regulatory Guide 230 Disclosing non-IFRS financial information published by ASIC and also “non-GAAP financial measures” within the meaning of Regulation G under the U.S. Securities Exchange Act of 1934. Non-IFRS/non-GAAP measures in t
Slide 4: Contents
Contents • Investment and FY22 result highlights • Strategy execution • FY22 financials • Capital raising overview and timetable • Appendix • Key risks • Underwriting agreement summary • International selling restrictions 4
Slide 5: Investment Highlights
Investment Highlights • Successful pivot to direct sales in France highlights potential Overview in large European markets Medical Developments International Limited (ASX:MVP) is an Australia based medical • Investment in capability to drive sustainable global growth device company • Substantial opp
Slide 6: FY22 Result Highlights
FY22 result highlights 1 Revenue2 Penthrox revenue Respiratory revenue $22.4m $13.7m $8.2m +37% +29% +53% (underlying) Underlying EBIT3 EBIT Cash at bank $(14.7)m $(15.9)m $20.4m MVP will release its audited FY22 financial results on 26 August 2022 6 1. FY22 financials are preliminary and unaudited
Slide 7: Penthrox: Over 8 Million Uses Worldwide
Penthrox over 8 million uses worldwide The superior efficacy, safety and administration benefits of Penthrox deliver improved patient The iconic Green Whistle outcomes and lower overall costs • Inhaled needle-free analgesic1 • Non-opioid1 • Portable, self administered device1 • Effective pain relief
Slide 8: FY22 Building Our Platform for Global Growth
FY22 building our platform for global growth • European regional team established - infrastructure to support growth • France sales team deployed – momentum in the French market supports direct sales strategy • Brand and marketing - global initiatives to reposition Penthrox in core segments commence
Slide 9: FY23 Strong Revenue Growth Expected
FY23 strong revenue growth expected Driving the trajectory: • Significant growth in France • Penetration in Australian hospital emergency departments • Continued growth in Australian ambulance market • Volume growth in distributor markets driven by enhanced distributor engagement • Higher average se
Slide 10: Building the European Platform
Building the European platform Strong progress in France • European regional team established - capability across medical, regulatory and operations Growth of 35% in FY22, more • France sales investment - 9 key account managers fully than doubling in FY23 ~110 deployed • >300 purchasing customers –
Slide 11: Europe Growing Through Direct Sales
Europe growing through direct sales in key markets A direct sales approach in key markets Current penetration in France Australia is accelerating the commercialisation of highlights significant market 11,577 Penthrox, growing volumes and expanding potential relative to global benchmarks margins Irel
Slide 12: Australia Growth Opportunities in Low-Risk Home Market
Australia growth opportunities in low-risk home market Investment in direct sales capability to realise Australian market potential Attractive market opportunity 1 Procedural • Opportunity to broaden market penetration 17% • ~75% of Penthrox volumes currently from Ambulance segment Ambulance 31% • s
Slide 13: US Update
US update Unconditional go ahead for Penthrox US trial received from FDA FDA Feedback on • Trial planning is advancing 1 March 2022 ST • Current management priority is further commercialisation success of Penthrox in Europe and “We have completed Australia and revenue growth the review of your • Fir
Slide 14: Investment to Drive Sustainable Growth
Investment to drive sustainable growth Australian business expansion – increased in-market resources expected to drive penetration into the large hospital emergency department market Capital raising European growth strategy – European regional team will support direct sales expansion in France, Germ
Slide 15: Financials and Proposed Use of Funds
FINANCIALS AND PROPOSED USE OF FUNDS
Slide 16: FY22 Unaudited Results
FY22 unaudited results Commentary $m 2022 2021 Change ($m) (unaudited) • Positive increase in underlying Statutory results revenue +37% to $22.4m Revenue 22.4 25.3 (2.9) • Penthrox revenue +29% to EBITDA (13.2) (11.2) (2.0) $13.7m EBIT (15.9) (14.9) (1.0) • Respiratory revenue +53% to NPAT (13.2) (1
Slide 17: FY22 Unaudited Cash Flows
FY22 unaudited cash flows FY22 $m FY21 Change ($m) (unaudited) Net cash flows (used) by operating activities (10.2) (8.9) (1.3) Net cash flows (used) by investing activities (5.8) (6.5) 0.7 Net cash flows generated by financing activities 0.2 36.1 (35.9) Net increase / (decrease) in cash and cash eq
Slide 18: Summary Pro-forma Balance Sheet
Summary pro-forma balance sheet Pro forma cash balance of $49 million provides funding to continue execution of our growth strategy 30 June 2022 Impact of equity $m Proforma (unaudited) raise1 Cash and cash equivalents 20.4 28.5 48.9 Other current assets 17.7 - 17.7 Total current assets 38.1 28.5 66
Slide 19: Proposed Use of Funds
Proposed use of funds $30m capital raising will be used to drive our Australian business expansion, European growth strategy and invest in capability to continue delivery of the Company’s growth strategy. The exercise of September 2024 options will provide up to $17m of further funding. Purpose $m O
Slide 20: Capital Raising Overview and Timetable
CAPITAL RAISING OVERVIEW AND TIMETABLE
Slide 21: Capital Raising Overview
Capital raising overview • A fully underwritten capital raising of approximately $30 million comprising: • An institutional placement of New Shares to eligible investors to raise approximately $15.0 million • A 1 for 9.5 pro-rata accelerated non-renounceable entitlement offer of approximately $15.0
Slide 22: Indicative Timetable
Indicative timetable * Event Date / Time Trading halt Thursday, 4 August 2022 Announcement of completion of Placement and Institutional Entitlement Offer and recommencement Before market of trading Monday, 8 August 2022 Record date for Entitlement Offer 7:00pm, Monday, 8 August 2022 Retail Entitleme
Slide 23: Appendix
Medical Developments International
Slide 24: Respiratory: Our Leading Brands
Respiratory our leading brands Providing pharmacies, medical clinics and hospitals with a range of respiratory devices which are designed to assist patients with At home On the go managing their asthma and COPD • Space chambers • Peak flow meters • Portable nebulisers • Silicon Face Masks 24
Slide 25: Respiratory: Leveraging Our Leading Suite of Products
Respiratory leveraging our leading suite of products We are focused on continued market share growth, particularly in the high value US spacer market • Increase US in-market resources to drive sales penetration and market share growth • Scale up demand generation initiatives, including targeted mark
Slide 26: Strong Monthly Growth Trend in Europe Post Covid
Strong monthly growth trend in Europe post Covid Europe in-market Penthrox unit sales (000s) (3-month moving average) 25 COVID Impacted 20 15 10 5 0 Jan ‘17 Jan ‘18 Jan ‘19 Jan ‘20 Jan ‘21 Jan ‘22 26
Slide 27: Key Risks
Key Risks
Slide 28: Key Risks
Key risks This section includes details of the key risks attaching to an investment in shares in MVP. These risks may affect the future operating and financial performance of MVP and the value of MVP shares. Before deciding whether to invest in MVP shares, you should consider whether such an investm
Slide 29: Key Risks (cont.)
Key risks (cont.) SPECIFIC RISKS OF AN INVESTMENT IN MVP (cont.) Business Strategy Execution MVP’s success will depend on its ability to successfully execute its business strategy. MVP’s future growth, profitability and cash flows depend on the ability of MVP’s management to successfully execute its
Slide 30: Key Risks (cont.)
Key risks (cont.) SPECIFIC RISKS OF AN INVESTMENT IN MVP (cont.) Product Safety and Liability Product safety or quality failures, actual or perceived, or allegations of product contamination, even when false or unfounded, could tarnish the image of MVP’s brands and could cause consumers to choose ot
Slide 31: Key Risks (cont.)
Key risks (cont.) SPECIFIC RISKS OF AN INVESTMENT IN MVP (cont.) Reputational Risk MVP’s failure to protect its reputation, or the failure of the Company’s partners to protect their reputations, could have a material adverse effect on the image of MVP’s brands. MVP’s ability to maintain its reputati
Slide 32: Key Risks (cont.)
Key risks (cont.) SPECIFIC RISKS OF AN INVESTMENT IN MVP (cont.) Reliance on Key Management MVP, and each of its businesses, depend substantially on its key management, the loss of whose services might significantly delay or prevent the achievement of its business strategy. The ability of MVP to ret
Slide 33: Key Risks (cont.)
Key risks (cont.) SPECIFIC RISKS OF AN INVESTMENT IN MVP (cont.) Intellectual Property Infringement MVP’s commercial success depends at least in part on its ability to operate without infringing, misappropriating or otherwise violating the trade marks, patents, copyrights and other proprietary right
Slide 34: Key Risks (cont.)
Key risks (cont.) SPECIFIC RISKS OF AN INVESTMENT IN MVP (cont.) Climate Change There has been an increased frequency of natural disasters globally in recent years and it is expected that this trend will continue in the medium to long term. MVP is exposed to a number of potential climate change rela
Slide 35: Key Risks (cont.)
Key risks (cont.) GENERAL RISKS AND OFFER RISKS Market and an investment in Shares The market price of MVP’s shares will fluctuate due to various factors, many of which are non-specific to MVP, including the number of potential buyers or sellers of MVP shares on the ASX at any given time, recommenda
Slide 36: Underwriting Agreement Summary
Underwriting Agreement Summary MVP has entered into an underwriting agreement with Bell Potter Securities Limited ACN 006 390 772 (Underwriter) under which the Underwriter has agreed to fully underwrite the Capital Raising, subject to the terms and conditions of the underwriting agreement (Underwrit
Slide 37: Underwriting Agreement Summary (cont.)
Underwriting Agreement Summary (cont.) Termination events there is any change to the Board or KMP of the Company, or a prospective change is announced with regards to the Board or KMP (without the Board or KMP changes prior written consent of the Underwriter). (i) the Company ceases to be admitted t
Slide 38: Underwriting Agreement Summary (cont.)
Underwriting Agreement Summary (cont.) Termination events any of the documents required to be provided under the Due Diligence Planning Memorandum having been withdrawn, or varied without Due Diligence* the prior written consent of the Underwriter, or any such documents being false, misleading or de
Slide 39: Underwriting Agreement Summary (cont.)
Underwriting Agreement Summary (cont.) Termination events either: (i) a general moratorium on commercial banking activities in Australia, the United States of America, Canada, the United Kingdom, Hong Kong, Disruption in financial Singapore or the People’s Republic of China is declared by the releva
Slide 40: Underwriting Agreement Summary (cont.)
Underwriting Agreement Summary (cont.) No event listed with an (*) in the summary above entitles the Underwriter to exercise its termination right unless the Underwriter has grounds to believe (acting reasonably) or reasonably believes that: (i) the event has, or is likely to have, a material advers
Slide 41: International Selling Restrictions
International selling restrictions This document does not constitute an offer of New Shares and Options (which includes the underlying ordinary shares) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Sha
Slide 42: International Selling Restrictions (cont.)
International selling restrictions (cont.) Singapore This document and any other materials relating to the New Shares and the Options have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other d
Slide 43: FY22 Financial Guidance and $30M Capital Raising
FY22 FINANCIAL GUIDANCE AND $30M CAPITAL RAISING ASX:MVP - August 2022
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