Somnomed Limited · ASX:SOM
Somnomed — Investor Presentation (May 2016)
17 slides from Somnomed's investor presentation, May 3, 2016
Slide 1: Investor Presentation: Sleep Centres America Inc. and Pro rata accelerated entitlement issue
For personal use only Investor Presentation Sleep Centres America Inc. and Pro rata accelerated entitlement issue Copyright ® and registered trademark notice ASX Investor Presentation | Page 0
Slide 2: Disclaimer & Regulatory Disclosure
Disclaimer & Regulatory Disclosure For personal use only This document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial position and performance, profit and losses and the rights and liabilities attaching to the Company’s
Slide 3: Transaction Summary
Transaction Summary For personal use only o SomnoMed has obtained an exclusive license with Simple Sleep Services LLC (“S3”), an established sleep centre operator, to open and operate direct to patient sleep treatment centres in the USA (excluding in the State of Texas) and globally Opportunity over
Slide 4: SomnoMed has achieved significant growth by developing dental and medical distribution channels
SomnoMed has achieved significant growth by developing dental and medical distribution channels For personal use only FULFILMENT REFERRAL REFERRALCHANNEL FULFILMENTCHANNEL CHANNEL CHANNEL oo SomnoMed oo Over Overthethepast pastfour fouryears yearsSomnoMed SomnoMedDental Dentalnetwork networknow nowi
Slide 5: Strong growth in sales volumes and revenues
Strong growth in sales volumes and revenues For personal use only Global unit sales growth Global revenues growth Units A$’000 60,000 50,000 50,000 40,000 CAGR- CAGR-Total 40,000 Global revenues 30,000 Direct +21% +29% 30,000 CAGR-US 20,000 CAGR-MAS 20,000 Licensees revenues -3% +25% 10,000 10,000 -
Slide 6: Direct To Patient opportunity for SomnoMed
Direct To Patient opportunity for SomnoMed For personal use only o Total patient pool of diagnosed patients not in treatment in the USA is approximately 10 to 15 million patients - growing at approx. 1.0-1.5 million patients p.a. (estimated to be 15-20 million patients by 2020) Large pool of o +3 mi
Slide 7: Direct To Patient opportunity for SomnoMed
Direct To Patient opportunity for SomnoMed For personal use only o A Direct To Patient OSA treatment business has been successfully developed over the last 3 years and is now one of SomnoMed’s largest customers o Simple Sleep Services LLC (“S3”), in Texas, USA operates two treatment centres - its fi
Slide 8: SomnoMed's Direct To Patient distribution business
SomnoMed’s Direct To Patient distribution business For personal use only o SomnoMed has obtained exclusive license to open and operate S3 centres in the USA (excluding in the State of Texas) and globally o New SomnoMed subsidiary - Sleep Centres America Inc. (“SCA”) is 84% owned by SomnoMed, with S3
Slide 9: SomnoMed's Direct To Patient distribution business
SomnoMed’s Direct To Patient distribution business For personal use only o SCA to potentially become a significant business for SomnoMed over the next 3-4 years o SCA expected to be earnings accretive to SomnoMed through attractive treatment centre economics Rationale o Significant additional SomnoD
Slide 10: S3 Treatment centre economics
S3 Treatment centre economics For personal use only S3 Dallas Centre—opened in mid 2013 o S3 second centre is in Fort Worth (not included in December year end 2014 2015 the numbers in the table to the left) and opened in July 2015 — showed a similar revenue ramp up profile to Dallas and broke even b
Slide 11: Expected SCA treatment centre economics
Expected SCA treatment centre economics For personal use only Year 1 Year 2 Year 3 Patients treated 450 1,250 1,650 Revenue per centre (A$m) 1.25 3.2 4.0 EBITDA per centre (A$m) - 0.8 1.2 Centre EBITDA margin N/A 25% 30% Assumes AUD:USD of 0.77 o Ramp up based on SomnoMed’s more conservative assumpt
Slide 12: FY2016 outlook
FY2016 outlook For personal use only Based on our current estimates and trends for Q4, FY2016 volume 58,000-60,000 units, down from previous guidance of 62,000 units o Direct sales 56,000-57,500 - up 22% to 24% o Licensee sales 2,000-2,500 - down 55% to 60% o Total volume growth 13%-16% o Q4 direc
Slide 13: Accelerated pro-rata entitlement issue
Accelerated pro-rata entitlement issue For personal use only o Pro-rata non-renounceable accelerated 2:25 entitlement issue at $2.50 per share to raise approximately $10.5 million o The offer price represents a discount to TERP of 10.0% and a discount to last close of 10.7% o Funds to provide workin
Slide 14: Timetable
Timetable For personal use only Procedure Step Date Procedure Step Date Trading halt 3 May 2016 Information Booklet and Entitlement and Acceptance Form sent to Retail Investors 10 May 2016 Announcement of Entitlement offer 3 May 2016 Retail Entitlement Offer Opens 10 May 2016 Ineligible Shareholder
Slide 15: Risks
Risks Growth Management and Additional Capital Requirements Changes potentially affecting prices charged The existing and future operations of SomnoMed may place a There can be no guarantee that SomnoMed’s products will continue significant strain on the Company’s managerial, operational and to be s
Slide 16: Offer restrictions
Offer restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this For personal use only document may not be distributed to any person, and the New Shares may not be offered or sold
Slide 17: Contact details
For personal use only Contact details EXECUTIVE CHAIRMAN & CEO Dr. Peter Neustadt CHIEF FINANCIAL OFFICER Mr. Neil Verdal-Austin Address Level 3, 20 Clarke Street Crows Nest NSW 2065 Australia Telephone +61 (2) 9467 0400 Website www.somnomed.com.au Investor Presentation | Slide 16