Slide 1: Bactiguard Q4 presentation
1 Bactiguard Q4 presentation February 6, 2018
Slide 2: Infections and antimicrobial resistance
2 Infections and antimicrobial resistance Media and public attention
Slide 3: Antimicrobial Resistance (AMR)
3 Antimicrobial Resistance (AMR) European and Global Challenge by 2050 AMR is a serious threat to public health: 25 000 patients die annually in the EU as a 392 result of infections 317 K caused by resistant K 4.7M bacteria Globally this could be 4.1 as high as 700 000 M 392 10 million deaths per K
Slide 4: Consumption of antibiotics in EU/EEA
4 Consumption of antibiotics in EU/EEA 2012–2016 (expressed as DDD per 1 000 inhabitants per day) Country 2012 2013 2014 2015 2016 Average Statistically annual change significant 2012-2016 trend Netherlands 11.3 10.8 10.6 10.7 10.4 -0.19 Sweden 14.1 13.00 13.00 12.3 12.0 -0.48 ↓ Germany 14.8 15.7 14
Slide 5: Four times higher antibiotic resistance in Sweden by 2050
5 Four times higher antibiotic resistance in Sweden by 2050 New report from Swedish Public Health Authority • By 2050 the number of cases is expected to be 70,000 – i.e four times higher than today • The annual additional cost of AMR adds up to approx. 400 million SEK in 2030 and over 600 million SE
Slide 6: WHO: Preventing infections saves lives in health care
6 WHO: Preventing infections saves lives in health care Source: World Health Organization; http://www.who.int/infection-prevention/en/
Slide 7: Our mission: Saving lives!
7 OUR MISSION Saving lives!
Slide 8: Key Priorities 2017
8 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 9: Highlights in Q4 2017 and full year 2017
9 Highlights in Q4 2017 and full year 2017 Nine consecutive quarters of increasing BIP sales, based on rolling twelve-month figures Revenues increased by 23% in Q4 and by 20% in 2017, in line with our financial targets BIP sales increased by 30% in Q4 and by 39% in 2017 License revenues up b
Slide 10: Market update Q4 2017
10 Market update Q4 2017 Europe • Breakthrough in Swedish tenders • Launch in Italy • Working on adding new markets MEA CHINA • Sales increased by 50 percent • Doubled sales in 2017 • Training, sales activities and • Strong development across the region evaluations ongoing at high intensity • South
Slide 11: BIP Foley catheter procured for 65% of Swedish population
11 BIP Foley catheter procured for 65% of Swedish population Stockholm region & Gotland County councils 23% without tenders 35% Kronoberg Västra Götaland 2% region Blekinge 17% Kalmar 2% 2% Värmland Skåne region Halland 3% 13% 3% Source: SCB (statistics Sweden) 2016
Slide 12: Licensing business
12 Licensing business C.R. Bard • Successful partnership since 1995 • Bactiguard coated Foley catheters for the US, Japan and UK/Ireland • Generating stable annual revenues • Acquisition by BD completed in Dec 2017
Slide 13: BD's acquisition of Bard
BD’s acquisition of Bard 13 Our journey has been focused on four strategic pillars Re-invent the medication management process across the care continuum [BAAD Further enhances the medication management continuum Prevent infections and improve safety for healthcare workers SNARE) Accelerates infectio
Slide 14: Creates the leader in solutions to address HAI's
10 14 Creates the leader in solutions to address HAI’s Most costly and : M healthcare need Se ATS Technology portfolio Surgical Site Infection (SSI) $3.3B in cost burden Central line associated i blood stream infection : (CLABSI) U.S. cost of healthcare- associated infections $1.8B in cost burden 7
Slide 15: Licensing business
15 Licensing business C.R. Bard • Successful partnership since 1995 • Bactiguard coated Foley catheters for the US, Japan and UK/Ireland • Generating stable annual revenues • Acquisition by BD completed in Dec 2017 Vigilenz Medical Devices • Bactiguard coated orthopaedic trauma implants for the ASEA
Slide 16: Development in revenues from BIP products
Development in revenues from BIP products 16 Supplied products • Nine consecutive quarters of growth, based on rolling 12 months. • 16% CAGR in this time period.
Slide 17: Delivered products
Delivered products 17 Supplied products • Revenues from BIP products of MSEK 7.4 (5.7) in Q4, related to 165,000 (134,000) units. • 2017 revenues from BIP products of MSEK 21,8 (15.8), related to sales of 502,000 (418,000) units • BIP revenue growth of 30% in Q4 and almost 40% in 2017
Slide 18: Financial highlights
Financial highlights 18 Highlights Fourth quarter (Oct-Dec 2017) • Revenues of MSEK 41.4 (33.6), increase of 23%, mainly explained by increased license revenues. • EBITDA of MSEK 8.8 (4.5), 21% (14%) EBITDA-margin Full year 2017 • Revenues of MSEK 153.6 (128.3), increase of 20% related to new licens
Slide 19: Revenue streams
19 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 20: Revenue distribution
Revenue distribution 20 Income distribution Oct-Dec Oct-Dec Full year Full year MSEK 2017 2016 2017 2016 License revenues 26,9 25,9 104,3 103,0 New license revenues 4,2 0,0 21,4 0,0 Sales of BIP products 7,4 5,7 21,8 15,8 Other revenues 2,9 2,0 6,2 9,6 Total Revenues 41,4 33,6 153,6 128,3
Slide 21: Financial flexibility and strength
Financial flexibility and strength 21 Financial position • Equity ratio of 62 % • Net debt of MSEK 152.4 • Cash position of MSEK 11.6. Overdraft facility of MSEK 30, not utilized 31 December Loans • Three-year MSEK 180 credit facility at Skandinaviska Enskilda Banken (SEB) raised in December 2017 •
Slide 22: Financial targets
22 Financial targets • Average sales growth of 20% per annum for a 5-year period, with 2015 as the base year – starting point MSEK 118.5 • EBITDA margin of at least 30% at the end of the 5-year period (by 2020) • Equity ratio of at least 30% • Over time uphold a dividend policy of 30-50% of net prof
Slide 23: Concluding remarks
23 Concluding remarks Growth in line with financial targets Nine consecutive quarters of increasing BIP sales Strong development in China and the Middle East Breakthrough in Swedish tenders, Stockholm, Skåne and VGR India positioned for growth in 2018 after slow 2017 Higher license revenues St
Slide 24: More information is available at www.bactiguard.se
24 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