Ergomed — FY2022 Earnings Presentation
28 slides from Ergomed's earnings presentation, Mar 21, 2023
Slide 1: Global Reach, Global Growth: Preliminary Results Presentation 2022
Global Reach, Global Growth Preliminary Results Presentation 2022 12 months to 31st December 2022 21st March 2023
Slide 2: Disclaimer
Disclaimer The information contained in this presentation (“Presentation”) has been prepared by Ergomed plc (the These forward-looking statements speak only as of the date of this Presentation and the Company does “Company”) for discussion purposes only and is not intended for any other use. The Pre
Slide 3: Presentation Agenda
Presentation Agenda Introduction & Overview Dr Miroslav Reljanović, Executive Chairman Financial Review Jonathan Curtain, Chief Financial Officer Strategic Developments Keith Byrne, SVP Capital Markets & Strategy Summary & Outlook Dr Miroslav Reljanović, Executive Chairman 3 | www.ergomedplc.com
Slide 4: Introduction & Overview
Introduction & Overview Dr Miroslav Reljanović Financial Global Reach Global Growth
Slide 5: Ergomed PLC at a glance
Ergomed PLC at a glance 2022 Geographic revenue split* Our Vision 4% Global leadership in specialised pharmaceutical 34% 62% services addressing unmet medical needs and patient safety. 1,400+ employees A global platform with AIMmarket AIM market listed listed 20%+revenue 20%+ revenue CAGR 1,400+ emp
Slide 6: Specialised Pharmaceutical Services
Specialised Pharmaceutical Services World-class expertise in drug development and drug safety across two platforms Clinical Research Organisation (‘CRO’) Pharmacovigilance (‘PV’) • Leading mid-tier CRO with a platform across • Leading independent PV business providing drug the US, UK, Europe and Asi
Slide 7: Strong Track Record Of Growth
Strong Track Record Of Growth Organic growth, supplemented by strategic acquisitions £145.3m Revenue CAGR 20%+ £21.2m 2014 2015 2016 2017 2018 2019 2020 2021 2022 Gross Profit Margin Adjusted EBITDA 40.7% £28.4m 27.2% £2.8m 2022 2022 2014 2014 7 | www.ergomedplc.com
Slide 8: Market Overview
Market Overview Oncology & Rare Strong market fundamentals with Ergomed Global CRO Market Disease CRO Market focused on high growth sectors c. $40-50bn c. $20bn Through its platforms, Ergomed c. 5-7% p.a. c. 10%+ p.a. operates in attractive and high medium term growth medium term growth growth end-m
Slide 9: CRO Market Opportunity
CRO Market Opportunity Leading mid-tier market position with clearly defined strengths and capabilities Large CROs Mid-Tier CROs COMPETING • $1bn+ CRO revenue • $100m+ CRO revenue • Global public companies • Global (Excluding Asia) • 10,000+ employees • 1,000+ employees • Big pharma oriented • Biote
Slide 10: 2022 Overview Summary
2022 Overview 20 21 Summary Excellent Financial Strategic Execution Financial Position Our People Group Outlook Performance Service Fee Revenue Strategic focus on specialist Debt-free balance sheet Continued strengthening of Proven robust business growth: +24.0% pharmaceutical services with cash of
Slide 11: Financial Review
Financial Review Jonathan Curtain Global Reach Global Growth
Slide 12: 2022 Financial Highlights
2022 Financial Highlights Strong financial performance in 2022 +22.5% +24.0% 22.9% £19.1m vs 2021 vs 2021 +23.1% Total Revenue Service Fee Adj. EBITDA Cash Order Book Revenue of Service-Fee Revenue after the £24.2m cash Growth vs acquisition of ADAMAS in 31st December 2021 February 2022 12 | www.erg
Slide 13: Ergomed Group – 2022 Financial Review
Ergomed Group – 2022 Financial Review Service Fee Revenue (£m) Gross Profit (£m) +24% +22% £m 2021 2022 Growth % 124.0 59.1 Total Revenue 118.6 145.3 +22.5%* 100.0 48.4 Service Fee Revenue 100.0 124.0 +24.0% Gross Profit 48.4 59.1 +22.3% 2021 2022 2021 2022 Gross Margin % 40.8% 40.7% (0.1 ppts) Serv
Slide 14: Ergomed CRO – 2022 Financial Review
Ergomed CRO – 2022 Financial Review of 2022 Service Fee Revenue (£m) Gross Profit (£m) 49% total Group revenue +27% +26% £m 2021 2022 Growth % 50.8 22.1 Total Revenue 58.1 71.4 +22.9%* 39.9 17.6 Pass-Through 18.1 20.6 +13.4% Service Fee Revenue 39.9 50.8 +27.3% 2021 2022 2021 2022 Gross Profit 17.6
Slide 15: PrimeVigilance – 2022 Financial Review
PrimeVigilance – 2022 Financial Review of 2022 Service Fee Revenue (£m) Gross Profit (£m) 51% total Group revenue +20% +22% £m 2021 2022 Growth % 73.2 37.1 30.8 Total Revenue 60.5 73.9 +22.1%* 60.1 Service Fee Revenue 60.1 73.2 +21.7% Gross Profit 30.8 37.1 +20.3% 2021 2022 2021 2022 Gross Margin %
Slide 16: Order Book Growth
Order Book Growth Excellent visibility and platform for growth Order Book Growth Further visibility from +23% £295.0m PV renewals +24% £239.7m £295.0m £193.0m 31 December 2020 31 December 2021 31 December 2022* The order book value of future revenue streams from Order book does not include contract
Slide 17: Strong Cash Flow Conversion
Strong Cash Flow Conversion £19.1m Cash £80m Debt Facilities (increased from £30m) £ million Opening Operating Working Tax & Acquisition of Lease Capex FX & Other Closing Cash Cashflow Capital Interest ADAMAS Liabilities Cash 17 | www.ergomedplc.com
Slide 18: Strategic Developments
Strategic Developments Keith Byrne Global Reach Global Growth
Slide 19: CRO Market Landscape – Our differentiation
CRO CRO Market Landscape – Our differentiation Our CRO Site Support Model that puts patients and sites at the centre Specialist focus on oncology & rare diseases Site Management Project Manager & Team Study Monitors Innovative deployment of Innovative deployment of Efficient management our site mana
Slide 20: CRO Market Landscape – Decentralised Clinical Trial Strategy
CRO CRO Market Landscape – Decentralised Clinical Our Decentralised / Virtual Trial Solutions Trial Strategy Telehealth and mHealth applications Fast growing site networks with capacity to recruit patients outside of hospitals Research nurses managing trials at patient Use of Applications for homes
Slide 21: PV – Strategic Overview
PV – Strategic Overview Revenues by customer cohort (£m) Market growth underpinned by a greater 80 regulatory focus on drug safety, increased 70 drug complexity and a strong outsourcing trend 60 Excellent client retention and renewal rates 50 providing increased revenue visibility 40 Ongoing investm
Slide 22: PV – Market Landscape
CRO PV – Market Landscape Transformation of the PrimeVigilance lifecycle Proprietary innovation (ASaPPV) Data Intake Safety Data Data combined with best in class industry Processing Reporting Data Analysis solutions delivering significant benefits: Medical Partner & Regulatory Signal Analysis Inform
Slide 23: Strong M&A track record
Strong M&A track record £19.1m Cash The Group has completed 9 acquisitions since IPO and has considerable capacity for further strategic and disciplined M&A, complementing the Group’s strong organic growth profile £80m debt facilities 2015 2016 2017 2020 2020 2022 Ashfield PV acquired for $10m. MedS
Slide 24: Focus on Sustainability
Focus on Sustainability Sustainability Highlights Ergomed plays a key role in improving patient health and well-being through supporting the safe development and monitoring of medicines Diverse workforce, with 78% women across 24 culturally diverse offices, and 72% of managerial roles Ergomed has pl
Slide 25: Summary
Summary Dr Miroslav Reljanović Dr Miroslav Reljanović Global Reach Global Growth
Slide 26: Summary & Investment Case
Summary & Investment Case 20 21 Summary Strong Financial Strong Order Book & Robust financial position to Performance Visibility support continued growth Continued strong revenue and £295.0m of future revenues £80m of unutilised debt profit growth in 2022 (+23% growth vs 2021) facilities Underpinned
Slide 27: Ergomed
ERGGMED
Slide 28: 25+ years of continued growth, development and strategic execution
25+ years of continued growth, development and strategic execution ADAMAS Consulting Ergomed plc IPO on PharmInvent, O+P, Ashfield Pharmacovigilance Group Limited Ergomed founded London Stock Exchange GASD acquired Inc. acquired acquired 1997 2014 2016 2020 2022 2022 2008 2015 2017 2020 PrimeVigilan