Opsens — Investor Presentation (September 2021)
36 slides from Opsens's investor presentation, Sep 27, 2021
Slide 1: OpSens, Inc. Investor Presentation 2021
OpSens, Inc. (TSX:OPS) (OTCQX:OPSSF) Investor Presentation 2021 OPSSF
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements with respect to the Company. These forward-looking statements, by their nature, require the Company to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual re
Slide 3: OpSens Overview
OpSens Overview Cardiovascular Business Based on Proprietary Optical Technology Diagnostic and Treatment Rapidly Growing Applications Ventricular assist device ▪ Transcatheter Aortic Valve Abiomed - Impella Heart Pump BUSINESS PARTNERSHIPS AORTIC VALVE STENOSIS Replacement (TAVR) utilizing ▪ 5-year
Slide 4: OpSens - Investment Highlights
OpSens - Investment Highlights FY ends August 31st CA $ M Core Revenue Growth (excluding other revenue) • Strong Core Revenue growth (+50%) between 2016 and 2019 $35 $29.4 $29.5 $30 • Lead by continuous growth in FFR (Coronary Artery Disease) $25 $22.0 $26.4 product $20 $15 $16.4 $10 $9.2 • Potentia
Slide 5: Coronary Artery Disease
Coronary Artery Disease OpSens’ OptoWire for Physiological Measurement
Slide 6: Coronary Artery Disease: Market
Coronary Artery Disease: Market FFR/dPR Global Market (US$ Million) Coronary Artery Disease Overview Blockage or narrowing (stenosis) of the arteries The Global FFR Market is expected to $1B that supply blood to the heart muscle, often due reach US$1 billion by 2025, growing at a to a buildup of fat
Slide 7: Coronary Artery Disease: Procedure Flow
Coronary Artery Disease: Procedure Flow Diagnose Treat Confirm FFR Scale Coronary Disease + Coronary Disease + PCI Treatment >0.80 may be treated without stent Cardiologist measures Cardiologist delivers Cardiologist measures 0.80 blood pressure stent to blockage over blood pressure before/after a t
Slide 8: Coronary Artery Disease: Example of Treatment
Coronary Artery Disease: Example of Treatment Watch video 8
Slide 9: Coronary Artery Disease: OptoWire Competitive Advantages
Coronary Artery Disease: OptoWire Competitive Advantages Performance – Superior Guidability Improved Accuracy Freedom in Workflow Access complex anatomies with workhorse-like performance Repeat measurements Manipulate like your WH guidewire and with the same accuracy assess post-PCI and multi-vessel
Slide 10: Coronary Artery Disease: OptoWire Competitive Advantages
Coronary Artery Disease: OptoWire Competitive Advantages ACCURACY (DRIFT) WORKHORSE/CONNECTIVITY Drift in pressure wires Electronic wires ▪ St Jude Medical < 7 mmHg / hour ▪ PhilipsVolcano < 30 mmHg / hour New fiber optic wires ▪ OpSens < ~0 mmHg / hour “Something about technical pitfalls: The most
Slide 11: Coronary Artery Disease: OpSens' OptoWire
Coronary Artery Disease: OpSens’ OptoWire FFR/dPR OptoWire Revenue Global Market Share Breakdown (CA$ M) OptoWire 38% 5-Year CAGR* $20.0 (OpSens) $18.7 4% Others $14.2 6% $12.4 $5.2 Electrical Wires (Abbott/Phillips) 90% $0.0 2015 2016 2017 2018 2019 2020 *Compound annual growth rate FY ending Augus
Slide 12: Coronary Artery Disease: OptoWire Sales Channels
Coronary Artery Disease: OptoWire Sales Channels* Canada Japan ▪ Sales Channels: Direct ▪ Sales Channels: Distributor ▪ Market Size: US$20 M ▪ Market Size: US$90 M ▪ OptoWire Market Share: 15% ▪ OptoWire Market Share: 15% United States EMEA ▪ Sales Channels: Direct/GPO ▪ Sales Channels: Distributors
Slide 13: Manufacturing Efficiencies Driving Margin Expansion
Coronary Artery Disease: Manufacturing Efficiencies Driving Margin Expansion OptoWire COGS Improvements OptoWire COGS* 53% TTM PRODUCT MARGINS ▪ Major improvements in manufacturing efficiencies in the last three years ▪ OptoWire III driving significant additional savings ▪ Economies of scale with vo
Slide 14: Coronary Artery Disease: OpSens' Growth Drivers
Coronary Artery Disease: OpSens’ Growth Drivers OptoWire Continued Market Growth of more than 10% Annually Create GPO Relationships in the U.S. to drive adoption in 1,400 Cath Labs – already two GPO with major players – one of them, Vizient represents one third of all U.S. cathlabs (approx. 700) Opt
Slide 15: Aortic Valve Stenosis
Aortic Valve Stenosis OpSens Guidewire for TAVR Procedure
Slide 16: Aortic Valve Stenosis
Aortic Valve Stenosis OpSens is developing the industry’s first TRANSCATHETER AORTIC-VALVE REPLACEMENT GUIDEWIRE that can ▪ DELIVER THE VALVE and allow for ▪ CONTINUOUS PRESSURE MEASUREMENT, Key attributes in optimal valve positioning. 16
Slide 17: Aortic Valve Stenosis: TAVR Market
Aortic Valve Stenosis: Transcatheter Aortic Valve Replacement (TAVR) Market Aortic Valve Stenosis Market (US$ Billion)2 Disease Overview $8.2 Aortic valve stenosis occurs when the heart's The Aortic Valve Stenosis Market is aortic valve narrows. This narrowing prevents expected to reach US$8 billion
Slide 18: Key Factors in Evaluating TAVR Guidewire Options
Aortic Valve Stenosis: Key Factors in Evaluating TAVR Guidewire Options Pressure measurement guidewire in TAVR procedures will be key to confirm valve positioning Need: Optimal Valve Positioning World’s largest aortic valve manufacturer has no guidewire to deliver valve = significant opportunity OpS
Slide 19: Aortic Valve Stenosis – On the Forefront
Aortic Valve Stenosis – On the Forefront Mick Jagger - How to fix a rocker’s heart ▪ Underwent the procedure in 2020 ▪ Back on the stage a few weeks later Watch Radio Canada segment on Mick Jagger’s story – in French only https://ici.radio-canada.ca/tele/decouverte/site/segments/reportage/153144/jag
Slide 20: Aortic Valve Stenosis: Product Development Timeline
Aortic Valve Stenosis: Product Development Timeline* 2021 2022 J M M J S N J M M J S N Animal Studies Design phase First use on human 1. Canada Health Canada Filing Approval Market 2. United States FDA Filing 510K Market 3. Europe CE Filing CE Market *Civil Calendar 20
Slide 21: OpSens - Partnership
OpSens - Partnership Ventricular assistance (heart pump) and other medical applications
Slide 22: Abiomed Partnership for Impella Heart Pump
Ventricular Assist Device: Abiomed Partnership for Impella® Heart Pump Abiomed Agreement Pre-2014: Strategic Partnership ▪ OpSens and Abiomed have ongoing partnership to integrate OpSens’ sensor into Impella to provide blood pressure measurements that can be used to enhance Impella’s performance and
Slide 23: Industrial Segment
Industrial Segment Innovative fiber optic measurement solutions for industrial applications Take advantage of OpSens' proprietary technology to offer solutions for TEMPERATURE, PRESSURE, STRAIN/DEFORMATION, LINEAR DISPLACEMENT, FORCE AND LOAD for a variety of industries, including AERONAUTICS - fuel
Slide 24: Industrial Segment: Recent Highlights
Industrial Segment Recent Highlights OpSens Solution awarded a contract from RI Research Instruments GmbH for absolute and differential fiber optic pressure sensors for the International Experimental Thermonuclear Reactor (ITER). ITER: World's largest nuclear fusion and scientific experimentation pr
Slide 25: Financials
Financials
Slide 26: Key Accomplishments And 2021 Goals
Key Accomplishments And 2021 Goals Recent Accomplishments Near-Term Goals FY FDA Clearance to Market Diastolic Pressure Algorithm Growing Revenues and Financial Results 2021 ("dPR") Fall First-In-Man for Aortic Valve Stenosis (TAVR) Product 2021 Signing of Five-Year Agreement with Abiomed to Supply
Slide 27: Income Statement
Income Statement $CAD FY Ended August 31, 2020 FY Ended August 31, 2021 FY 2019 Q1 Q2 Q3 Q4 FY 2020 Q1 Q2 Q3 Revenues Sales 29 449 200 6 989 000 8 258 000 6 630 000 7 576 000 29 453 000 8 319 000 8 810 000 9 214 000 Others 3 302 400 - - - - - 17 000 19 000 19 000 Total Revenue 32 751 600 6 989 000 8
Slide 28: Balance Sheet Highlights
Balance Sheet Highlights $CAD August 31, 2018 August 31, 2019 August 31, 2020 May 31, 2021 Cash and cash equivalents 10,886,800 14,856,000 10,884,000 38,778,000 Accounts receivable, net 2,816,300 5,115,200 4,041,000 5,364,000 Inventory 5,220,000 5,133,100 6,505,000 6,163,000 Total current assets 19,
Slide 29: Appendix
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Slide 30: Core Revenue Growth – 2016 to 2019
Core Revenue Growth – 2016 to 2019 Annual FY ends August 31st $35 $30 $29.4 $29.5 $2.4 $2.4 $26.4 $25 $2.7 $22.0 $7.0 $8.4 CA $ M $20 $2.1 $6.1 $16.4 $5.7 $15 $1.5 $2.5 $10 $9.2 $20.0 $18.7 $17.6 $3.2 $14.2 $0.8 $12.4 $5 $5.2 $0 2016 2017 2018 2019 2020 YTD-2021 FFR Other medical Industrial 30
Slide 31: Gross Margins (excluding others revenue)
Gross Margins (excluding others revenue)* Annual 60% FY ends August 31st 50% 40% 30% 56.0% 53.0% 53.0% 49.0% 20% 37.0% 10% 11.0% 0% 2016 2017 2018 2019 2020 YTD-2021 Product Gross Margins *Comparative figures for 2016 to 2019 have not been adjusted to reflect the adoption of IFRS 16 - Lease agreemen
Slide 32: Adjusted EBITDAO (excluding others revenue)
Adjusted EBITDAO (excluding others revenue)* Annual FY ends August 31st $4 $2.7 $2 $0.1 $0 ($0.4) CA $ M ($2) ($2.6) ($4) ($4.7) ($6) ($8) ($7.4) 2016 2017 2018 2019 2020 YTD-2021 *Comparative figures for 2016 to 2019 have not been adjusted to reflect the adoption of IFRS 16 - Lease Agreements as se
Slide 33: Facility overview
Facility overview Quebec City, Canada 750 Boulevard du Parc-Technologique Québec, QC Canada G1P 4S3 Total employees: ~180 Total square footage: 30,000 total; 5,500 of clean room space Certifications: FDA registered, ISO 13485, MDCAF Canada Last FDA inspection date: February 6–8, 2017; no 483s 33
Slide 34: Executive Management Team
Executive Management Team President & Chief Executive Officer / Louis Laflamme Chief Financial Officer / Robin Villeneuve President, OpSens Solutions / Gaétan Duplain Louis Laflamme became President, CEO and Director of OpSens in 2013. Robin Villeneuve recently served as Chief Financial Officer for
Slide 35: Board of Directors
Board of Directors Director / Denis Harrington Denis Harrington is the owner of Denis L Harrington Consulting, LLC a management and strategy consulting firm he established in 2012 after nearly 30 years of successful leadership roles in the US Army and the Medical Device Industry. Recently, Denis ser
Slide 36: Reconciliation Of EBITDAO To Net Earnings (Loss)
Reconciliation Of EBITDAO To Net Earnings (Loss) FY ends August 31st YTD-2021 $CAD 2016* 2017* 2018* 2019* 2020* May 31 2021 Net Earnings (loss) (9,282,000) (6,537,000) (4,550,000) (1,952,000) (2,644,000) 64,000 Financial Expenses (income) 57,000 (7,000) (50,000) 157,000 684,000 980,000 Depreciation