Medartis Holding Ag · SIX:MED
Medartis — H1 2023 Earnings Presentation
27 slides from Medartis's earnings presentation, Aug 15, 2023
Slide 1: 2023 | Half-year Results
2023 | Half-year Results Basel, 15 August 2023 Christoph Brönnimann CEO | Dirk Kirsten CFO
Slide 2: Disclaimer
Disclaimer This communication does not constitute an offer or invitation to subscribe for or purchase any securities of Medartis Holding AG. This publication may contain certain forward-looking statements and assessments or intentions concerning the company and its business. Such statements involve
Slide 3: Agenda
Agenda Agenda Half-year highlights Christoph Brönnimann, CEO Operational and financial review Dirk Kirsten, CFO Business update Christoph Brönnimann, CEO Outlook 2023 Christoph Brönnimann, CEO Upcoming corporate events ® Medartis All rights reserved ∣ 3
Slide 4: Half-year highlights
Half-year highlights Christoph Brönnimann, CEO
Slide 5: H1 2023 Key figures
H1 2023 │Key figures TOTAL NET SALES IN CHF REVENUE GROWTH CHF 103.3million +16.1% Internal1 − Total sales increased by 20.8% (CER) − Internal sales growth, which excl. NSI 3rd party custom − EMEA key contributor manufacturing, reached 16.1% − US fastest growing region EBITDA MARGIN IN % GUIDANCE 12
Slide 6: H1 2023 Business highlights
H1 2023 │Business highlights − We are particularly pleased with our performance in EMEA and the US − The execution of our strategic initiatives leads to market share gains in our key segments Hand & Wrist and drives growth in lower extremities and our key markets − Our partnerships with KeriMedical
Slide 7: Operational and financial review
Operational and financial review Dirk Kirsten, CFO
Slide 8: We successfully fended off IT attack at the end of May
We successfully fended off IT attack at the end of May − Following the IT attack at the end of May, we immediately took countermeasures: − IT security − Forensic − data protection authorities …and resumed operational systems in June − During the one-week production interruption, we transitioned to m
Slide 9: EMEA and US were the main growth drivers in H1
EMEA and US were the main growth drivers in H1 Net sales in million CHF and internal growth yoy (CER) +16,8% 5,6 103,3 +16,1% 1,5 97,6 3,5 0,8 7,8 88,4 -1,5 -2,8 84,1 17.7% 21.1% 5.6% 17.0% H1 2022 NSI FX H1 2022 EMEA US APAC LATAM H1 2023 NSI1 H1 2023 Internal internal 1 Sales from NSI’s third part
Slide 10: Double-digit growth in 3 out of 4 regions…
Double-digit growth in 3 out of 4 regions… H1 2023 revenue by region/territory Internal growth − US trajectory increased sequentially to 21.1% in CHF yoy @CER − Germany contributed 1/3 of the regional growth, EMEA 51.5 17.7% driven by strong demand for screw and plate products launched in recent yea
Slide 11: … and across all product categories
… and across all product categories H1 2023 revenue in CHF Internal growth − Strong sales of the ankle trauma set, expansion by product category yoy @CER in the forefoot as well as cannulated CCS screws were the main growth drivers in lower Upper extremities 66.7 13.1% extremities. − Double-digit gr
Slide 12: Gross margin impacted by mix effects, higher energy costs and inventory optimisation
Gross margin impacted by mix effects, higher energy costs and inventory optimisation in % of net sales -5.4 PP 83.7 -0.6% 83.1% -0.8% -1.1% -0.2% -0.4% -2.9% 77.7 -0.5% 77.2 Reduced Low-margin Inhouse More trading inventories, manufacturing sterile goods add. costs business packaging & variances Rep
Slide 13: Cost-control: OpEx ratio decreased by 6.9 PP
Cost-control: OpEx ratio decreased by 6.9 PP in CHF million and % of net sales -6.9 P 1,3 76,9 2,6 75,6 72,7 -1,7 5,2 -3,6 67,4 0,4 82.2% 80.2% 73.3% 74.5% OPEX H1 FX One-offs Underlying OPEX HQ US Other Underlying One-offs 1 Reported 2022 reported H1 2022 @ CER subsidiarires OPEX H1 2023 OPEX H1 20
Slide 14: EBITDA | OpEx control offset the decline in gross margin
EBITDA | OpEx control offset the decline in gross margin in % of net sales +0.1 PP 4.2 14.2 14.3 -1.7 12.6 11.2 -1.2 -5.4 5.5 Reported FX One-offs Underlying Gross margin OpEx Underlying One-offs 1 Reported EBITDA margin EBITDA margin impact improvements EBITDA H1 EBITDA margin H1 2022 H1 2022 2023
Slide 15: Net result impacted higher finance expenses and one-offs
Net result impacted higher finance expenses and one-offs in CHF million - Unrealised FX losses vs gain in PY: -2m (CHF strength) - Additional 0.4m in interest expenses (contingent liability to former NSI shareholders) 1.5 -2.5 Underlying net profit of CHF +0.9 million excl one-offs 0.0 0.1 -0.8 Net
Slide 16: Growth investments - both organic and through M&A
Growth investments - both organic and through M&A in CHF million 20.6 -2.9 − Thereof 7m PPE Investments -9.0 consistent with PY 29.7 15.0 -3.7 5.0 -19.6 − Rise in NWC of 12m − Inventory increased due to additional products from NSI and Field Orthopaedics Increase in KeriMedical to 47.0% Cash positio
Slide 17: Business update
Business update Christoph Brönnimann, CEO
Slide 18: Execution of our strategy drives robust growth
Execution of our strategy drives robust growth Short- to medium-term priorities Main activities − LapiPrep launch started end of Q1, very positive surgeon DELIVER INNOVATION feedback, first cases done with StealthFix 1 - - - Launch NSI legacy products in the US Global launches in all segments Expand
Slide 19: Current and upcoming product introductions in 2023
Current and upcoming product introductions in 2023 CalcShift™ CCS Extension & Foot Ortho (Calcaneal Metacarpal Full Launch Global Osteotomy) Full Launch Global Full Launch US H2 H2 H2 LapiPrep KeriFlex® CMX Ankle Full Launch US US launch EMEA Launch StealthFix Distal Ulna Plate CMX Orthognathic Full
Slide 20: US performance: continue to build momentum
US performance: continue to build momentum − Internal sales growth in H1 reached 21% and even 27% before the IT attack − Strong improvements in all territories with 3 out of 5 areas outperforming − On track in expanding our sales channels with focus on top 20 states – shift towards larger fully dedi
Slide 21: Made in Switzerland | One million distal radius plates sold
Made in Switzerland | One million distal radius plates sold − Since its introduction in 2005, we have sold the one millionth APTUS Distal Radius 2.5 plate in May − One plate is sold every 5 minutes worldwide − Currently all plates are manufactured in Basel, Switzerland, where also more than 7 millio
Slide 22: New IBRA training center to open at the end of the month
New IBRA training center to open at the end of the month − New international training and education center in Basel to open on 24 August in close collaboration with the IBRA institute − Centre will help surgeon and OR staff learn and improve their theoretical and practical skills − The center has a
Slide 23: Outlook 2023
medartis® PRECISION IN FIXATION Outlook 2023
Slide 24: Outlook 2023 confirmed
Outlook 2023 confirmed (barring any unforeseen circumstances) % Internal sales growth Underlying EBITDA margin 15%-18% 13%- 15% Favorable market environment; benefiting from operating focus on the high-growth leverage and cost discipline extremity segment with market growth of c4-6% ® Medartis All r
Slide 25: Q&A
medartis® Q&A
Slide 26: Upcoming corporate events
Upcoming corporate events Date Event Broker Destination 2023 15 August 2023 half-year results publication Webcast 29 August Investor meetings (virtual) Octavian US / UK 30 August Investor meetings Octavian Frankfurt 31 August Investor meetings ZKB Zurich 05 September Investor meetings Paris 19 Septe
Slide 27: “Restoring quality of life”
“Restoring quality of life” medartis