Advanced Medical Solutions Group Plc · LSE:AMS
Advanced Medical Solutions — H1 2024 Earnings Presentation
20 slides from Advanced Medical Solutions's earnings presentation, September 2024
Slide 1: Advanced Medical Solutions Group plc
Advanced Medical Solutions Group plc
Slide 2: Highlights
Highlights Strategic initiatives transforming AMS * 10% Group revenue growth with double digit growth from all key Surgical product lines * Transformative acquisition of Peters Surgical in July 2024, integration progressing well * Acquisition of Syntacoll in March 2024 significantly enhances Biosurg
Slide 3: Product Progress: LiquiBand
Product Progress: LiquiBand® * Implementation of enhanced US route to market strategy driving growth lof * Recovering well from 2023 disruption } Va * Increased commitment from marketing partners established ¢ Full availability of LiquiBand® XL well received * H1 benefiting from some partner restock
Slide 4: Product Progress: Internal Fixation and Sealants
Product Progress: Internal Fixation and Sealants Hernia mesh fixation (branded LIQUIFIX™ in US and LiquiBand Fix8® ex US): + Successful US launch of LIQUIFIX™ in Q1 through partner Tela BIO Inc a ene. soe ——S * Positive feedback from partner, surgeons and Key Opinion Leaders SS * Significant initial
Slide 5: Product Progress: Traditional Closure
Product Progress: Traditional Closure * Higher levels of growth achieved with AMS portfolio of Resorba — branded sutures y = * Significantly increased customer appetite for expediting Vi ; \ suture conversions benefiting both AMS and Peters Surgical a Th y AN, + Increased inventory levels have enabl
Slide 6: Product Progress: Biosurgical
Product Progress: Biosurgical * Strong customer demand for collagen products continues * Technical and capacity issues at Nuremberg facility restricted ability to meet underlying demand in H1 2024 * Syntacoll acquisition completed in March 2024 significantly strengthening AMS's existing collagen bus
Slide 7: Peters Surgical
Peters Surgical + Acquisition closed on 1 July 2024 * Business performing well; revenues increased by 6% to €85.2 million in the last 12 months * Initial progress confirms excellent cultural and strategic fit between two businesses * A dedicated integration team has been established to maximise syne
Slide 8: Product Progress: Woundcare
Product Progress: Woundcare * Challenging market conditions and lower Organogenesis royalties continue to impact Woundcare performance, as previously reported * Exited some lower margin business + Adverse phasing of orders also impacting revenue in H1 2024 - stronger H2 expected * Strategic review o
Slide 9: Financial Summary
Financial Summary
Slide 10: Financial Highlights
Financial Highlights + Revenue increased by 10% at constant currency to £68.0 million and by 8% at reported currency * As MDR investment nears completion, the regulatory element of R&D reduced, resulting in the overall R&D spend decreasing to £5.6 million * Adjusted pre-tax profit increased 8% to £1
Slide 11: H1 2024 Revenue
H1 2024 Revenue Growth ar * Group revenue up by 10%* to £68.0 million H12023-H12024 constant (2023 H1: £63.1 million) currency * Surgical revenue up 27%’ to £48.4 million (H1 2023: £39.4 million) * Double-digit growth in all product Surgical 39.4 48.4 +27% categories Woundcare 23.7 19.5 -17% * Wound
Slide 12: H1 2024: LiquiBand and Fix8/LIQUIFIX Revenue
H1 2024: LiquiBand and Fix8/LIQUIFIX Revenue Advanced Closure . . ‘ a Ad d Ch Internal Fixation and + LiquiBand® revenue up 30%" to £21.8 million em wanewesoeure eM Sealants + New US route to market strategy, product exclusivity and greater partner commitment drove 54%* growth 20 ° in the US 4 * Rev
Slide 13: H1 2024: Sutures, Biosurgical and Other Revenue
H1 2024: Sutures, Biosurgical and Other Revenue Traditional Closure * Revenue up 17%" to £10.4 million * Growth reflects meeting increased customer demand, supported by higher inventory levels * Revenue up 18%” to £9.5 million * Nuremberg technical and capacity issues prevented customer demand from
Slide 14: H1 2024: Woundcare Revenue
H1 2024: Woundcare Revenue 25 Infection & Exudate 25 Other Woundcare £M Management £M * Revenue down 16%* to £17.2 million due to exiting some low margin business, ongoing ay ay reimbursement challenges, pricing pressure and increased competition 15 15 * Phasing of orders expected to drive stronger
Slide 15: H1 2024 Operating Margins
H1 2024 Operating Margins —£M Surgical Business Unit Surgical 400 os 6% 27.6% 30.0% + Adjusted operating margin increased by 200bps 20.0% + US LiquiBand® growth and US launch of LIQUIFIX™ 200 were margin accretive 10.0% : . . sae * Surgical margin restricted by Syntacoll, initially low °° Ht 2023 it
Slide 16: H1 2024 Cashflow
H1 2024 Cashflow H1 2023 H1 2024 . . £m (£m) (£m) Working capital . setae + Inventory increased £2.5 million to support Suture and Cash flows from operating activities: Biosurgical revenue growth and new US LB marketing Profit from operations 10.4 3.9 Depreciation and Amortisation 5.2 5.7 strategy W
Slide 17: Net cash at the period end £55.6 million
Net cash at the period end £55.6 million * Cash £134.9 million (2023 H1: £69.1 million) and * Debt £79.3 million (2023 H1: Enil) * Post-Period end - 1 July initial cash payment of €132.5 million to acquire Peters Surgical on a normalised cash free, debt free basis + Net debt position at 1 July £56.2
Slide 18: Summary and Outlook
Summary and Outlook
Slide 19: Summary and Outlook
Summary and Outlook Execution of key initiatives driving growth + The Group generated a strong financial performance in H1 2024 + Peters Surgical performing in line with expectations with integration progressing well + New US LiquiBand® route to market strategy performing well and driving growth + L
Slide 20: corporate@admedsol.com www.admedsol.com
corporate@admedsol.com +44 (0)1606 863500 www.admedsol.com 20 INTERNAL
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