Slide 1: Preliminary Results Investor Presentation
30 JUNE 2021 PRELIMINARY RESULTS INVESTOR PRESENTATION PAUL SWINNEY, CEO LIZ DIXON, CFO 18-19 OCTOBER 2021 1
Slide 2: Financial Highlights
FINANCIAL HIGHLIGHTS • Turnover down 2% to £31m (2020: £31.7m) • Overseas sales up 3% to £19.6m (2020: £19m), representing 63% of total sales (2020: 60%) • Gross margin remained steady at 80% (2020: 80%) • Pre-tax profit before share-based payments (£0.8m) and adjustment in fair value of investment
Slide 3: Sales History Since IPO
SALES HISTORY SINCE IPO 2020-21 in summary £35,000,000 • 2% y-o-y sales decline due to COVID-19 impact on hospital service levels £30,000,000 £25,000,000 £20,000,000 £15,000,000 £10,000,000 £5,000,000 £- 3 33
Slide 4: Sales History by Geography
SALES HISTORY BY GEOGRAPHY 2020-21 in summary £35,000,000 • International sales growth 3% £30,000,000 • UK sales decline 10% £25,000,000 • Overall sales decline 2% • Historic drag on sales growth from declining £20,000,000 products now eliminated £15,000,000 £10,000,000 £5,000,000 £- 2015-16 2016-17
Slide 5: Sales Growth by Geography
SALES GROWTH BY GEOGRAPHY Year on year £m 2019-20 2020-21 % change change Australasia 3.53 3.80 0.27 8% China & Hong Kong 1.62 1.60 (0.02) (1%) Malaysia * - 0.58 0.58 - Western Europe 4.60 4.89 0.29 6% Central Europe 5.25 5.38 0.13 2% Italy 0.67 0.79 0.12 18% Overseas distributors* 3.34 2.60 (0.74)
Slide 6: Sales History – By Product
SALES HISTORY – BY PRODUCT 2020-21 in summary: £35,000,000 • Y-O-Y £0.5m or 2% growth in Tristel medical device sales. £30,000,000 • Impact of COVID-19: loss of £2m of £25,000,000 anticipated medical device sales growth. • Y-O-Y £0.9m or 18% reduction in Cache £20,000,000 surface sales £15,000,000 £
Slide 7: Sales Growth by Channel
SALES GROWTH BY CHANNEL Year on year £m 2019-20 2020-21 % change change Tristel Hospital Medical Device Decontamination UK direct 7.85 6.91 (0.91) (11%) Europe direct 8.96 9.99 1.03 12% APAC direct 4.61 5.02 0.41 9% Distributors 2.12 2.09 (0.04) (2%) 23.50 24.00 0.50 2% Cache Hospital Surface Disinf
Slide 8: Pandemic Impact
PANDEMIC IMPACT Sales impact of COVID-19: • Jan–June 2020 First Wave: Hospitals build stocks of all infection £8,000,000 prevention products; non-critical care services scaled back £7,000,000 £6,000,000 • Jul-Dec 2020 First Recovery: Out-patient services resume & NHS purchase £5,000,000 product in p
Slide 9: Financial Targets
FINANCIAL TARGETS FY 2020-2022 • Sales growth in the range of 10% to 15% per annum as an annual average over the three years; • EBITDA margin (excluding share-based payment charge) of at least 25%, and • To increase profit before tax (excluding share-based payments) year-on-year, independently of th
Slide 10: Operational Highlights
OPERATIONAL HIGHLIGHTS • New regulatory approvals for medical device disinfectants gained during the year in India, South Korea, Canada and for our surface disinfectant from the United States EPA • Further investment in people and systems to ensure the Company can meet the ever-more stringent requir
Slide 11: North America
NORTH AMERICA USA USA CANADA Duo ULT: Ultrasound Probe JET: Hospital Surfaces Disinfection Duo OPH: Ophthalmic Devices FDA Approval in Progress EPA Approved Canada Approved 11
Slide 12: North America FY 2021 to FY 2026
NORTH AMERICA FY 2021 to FY 2026 Building a global business FY21 FY22 FY23 FY24 FY25 FY26 Medical Device Decontamination Canada Duo OPH Canada Duo ULT Canada Duo ORL USA Duo ULT USA Duo OPH USA Duo ORL Hospital Surface Disinfection Canada Cache USA Jet EPA No 2 State by state USA Cache Key Submissio
Slide 13: ESG Highlights
ESG HIGHLIGHTS Leadership roles (ex-BOD) Salary range by gender Board gender split Independent NEDs 200,000-250,000 150,000-200,000 Male 100,000-125,000 Female Salary Range 75,000-100,000 Male Female Independent Male Female 50,000-75,000 non-independent 25,000-50,000 0-25,000 ESG actions: • First ca
Slide 14: Summary
SUMMARY • Overseas expansion continues despite COVID-19 • Profitable, cash generative, debt-free • Dividend pay-out maintained despite lower profits • Workforce in good shape • Growth resuming post pandemic 14
Slide 15: Thank You
THANK YOU Tristel
Slide 16: Appendix – Income Statement
APPENDIX – INCOME STATEMENT Year ended Year ended 30.06.21 30.06.20 £’000 £’000 Turnover 30,998 31,678 Cost of sales (6,255) (6,431) Gross profit 24,743 25,247 Gross margin % 80% 80% Administrative expenses (16,344) (15,449) Net interest (194) (166) Operating profit before amortisation & shared base
Slide 17: Appendix – Balance Sheet
APPENDIX – BALANCE SHEET 30.06.21 30.06.20 Non-current assets £’000 £’000 Goodwill 5,265 5,626 Investments - 807 Intangible assets 6,704 7,624 Property, plant and equipment 8,542 8,080 Deferred tax 1,805 1,544 22,316 23,681 Current assets Inventories 4,266 4,619 Trade and other receivables 5,255 6,4
Slide 18: Appendix – Balance Sheet …Continued
APPENDIX – BALANCE SHEET …Continued 30.06.21 30.06.20 Capital and reserves £’000 £’000 Share capital 471 453 Share premium account 13,600 12,634 Merger reserve 2,205 2,205 Foreign exchange reserve (203) 397 Retained earnings 14,003 12,767 Non-controlling interests 7 7 Total equity 30,083 28,463 Curr
Slide 19: Appendix – Cash Flow Reconciliation
APPENDIX – CASH FLOW RECONCILIATION Year ended Year ended 30.06.21 30.06.20 £’000 £’000 Profit before tax 3,761 6,639 Add back non-cash items 4,512 3,108 Working capital movements 131 (1,617) Purchase of tangible fixed assets (1,159) (1,770) Purchase of intangible assets (608) (610) Purchase of inve