Slide 1: Third quarter results 2019
Q3 2019 Third quarter results 2019 Navamedic ASA Kathrine Gamborg Andreassen, CEO Toril Marie Ås, CFO
Slide 2: Navamedic – Q3 highlights
Navamedic – Q3 highlights Medical nutrition and Obesity categories Double digit topline growth driving growth Separate listing of Medtech division – Observe Medical prospect launched today REVENUE GROSS MARGIN EBITDA Launch of Alflorex® 48.8 MNOK 30.6% 0.2 MNOK for IBS in Denmark in Q4 2019 Up 10.2%
Slide 3: Navamedic at a glance
Highlights Navamedic at a glance Operational update Observe Medical Financials Summary and outlook Q3 2019 3
Slide 4: Nordic pharma company with high growth ambitions
Navamedic at a glance Nordic pharma company with high growth ambitions Navamedic operations Navamedic - a supplier of high-quality products, delivered to hospitals and through pharmacies, meeting the specific medical needs for patients and consumers Presence in all Nordic countries, the Baltics and
Slide 5: Our strategy: building a leading Nordic pharma company
Our strategy Building a leading Nordic pharma company with a North European footprint Strengthen the core Untapped potential within existing products, categories and territories Ongoing negotiations for attractive new distribution agreements Secure and increase the value through ownership to product
Slide 6: The preferred partner
The preferred partner Highly scalable pharma marketing and distribution platform and competence-driven value creation across categories State-of-the-art market access platform Maximising product potential throughout the value chain, based on economies of scale, sales excellence and regulatory expert
Slide 7: Medical nutrition and Obesity still driving the growth
Products Medical nutrition and Obesity still driving the growth Q3 2019 YoY Operational highlights per category rev. growth • Nitrolingual contributing to Cardiology CARDIOLOGY 5% growth in Q3 • Strong performance of newly MEDICAL 18% launched products and continued NUTRITION growth of main products
Slide 8: Observe Medical
Highlights Navamedic at a glance Operational update Observe Medical Financials Summary and outlook Q3 2019 9
Slide 9: Observe Medical listing on 4 November 2019
Observe Medical ASA Listing on Monday 4 November 2019 Separate listing on Oslo Axess, 4 November Prospectus and Investor Presentation available at www.observemedical.com Navamedic ASA a major shareholder New CEO onboard Q3 2019 10
Slide 10: Observe Medical ASA at a glance
Observe Medical ASA at a glance Simplifies patient care – prevents infections Observe Medical develops innovative medical technology products that benefit patients and healthcare professionals Global potential for the company’s main product Sippi®, an automatic and digital urine meter approved for s
Slide 11: Several tier 1 clients secured, with large pipeline of target customers
Several tier 1 clients secured, with large pipeline of identified target customers Existing customers Potential customers currently in sales funnel Customer 1 Customer 7 • Standard Sippi® • Start at Thoracic ICU, tests ongoing • Customer since 2014 • 100+ ICU beds • 14 base units, 100% installation
Slide 12: Market potential for Sippi and SippBag
Large, global market potential for Sippi® and SippBag™ - launch in Autumn 2019 Sippi® market scope SippBag™ market scope • Automated urine meter • Urine bags for hospitals, for ICUs1), ORs2) and care centres and home Market potential Market potential wards care • Potential: 0.5m base • Potential: 50
Slide 13: Sippi – Simplifies Patient care – Prevents Infections
Sippi® – Simplifies Patient care – Prevents Infections www.observemedical.com 14
Slide 14: Financials
Highlights Navamedic at a glance Operational update Observe Medical Financials Summary and outlook Q3 2019 15
Slide 15: Pharma and Healthcare segment
Financials • P&H segment on track focusing on profitable Pharma and Healthcare segment1 products and leveraging on the growth platform • Positive Q3 revenue development, driven by strong performance in Obesity and Medical (in NOK million) Q3 2019 Q3 2018 YTD 2019 YTD 2018 Year 2018 Nutrition Operati
Slide 16: Key consolidated profit and loss figures
Financials • P&L figures re-presented for Key consolidated profit and loss figures1 discontinued operations (in NOK million) Q3 2019 Q3 2018 YTD 2019 YTD 2018 Year 2018 Operating revenues 48.8 44.3 141.5 132.1 183.9 • Lower EBITDA in Q3 mainly due Gross profit 14.9 15.5 43.6 44.2 60.8 to increased s
Slide 17: Assets
Financial position Assets1 (in NOK million) 30.09.2019 31.12.2018 • Main changes in intangible assets, Intangible assets 7.3 30.1 goodwill and total current assets due Goodwill 59.1 79.6 to reclassification to assets held for Deferred tax assets 9.3 9.9 distribution Tangible assets 1.9 0.1 Non-curre
Slide 18: Equity and liabilities
Financial position Equity and liabilities (in NOK million) 30.09.2019 31.12.2018 Equity 91.7 99.3 • Equity ratio of 40.2% Contingent consideration 0.0 12.2 Long term part of license liabilities 8.5 10.2 • Contingent consideration reclassified Loans and borrowings incl. Lease liabilities 0.8 0.0 to c
Slide 19: Cash flow Group – total operations
Financials Cash flow Group – total operations1 (in NOK million) Q3 2019 Q3 2018 YTD 2019 YTD 2018 Year 2018 • Positive cash flow from operating Net cash flow from operating activities 4.8 8.4 11.2 -28.6 -36.0 activities in Q3, mainly due to reduced Net cash flow from investing activities -0.9 -0.2 -
Slide 20: Summary and outlook
Highlights Navamedic at a glance Operational update Observe medical Financials Summary and outlook Q3 2019 21
Slide 21: Ambition
Navamedic Q3 2019 Ambition Building a leading Nordic pharma company with a North European footprint • Navamedic is leveraging its strong position, expertise and highly scalable market access platform to accelerate growth through: • Untapping the potential within existing products, categories and ter
Slide 22: Q&A
Q&A Q3 2019 23 @Navamedic
Slide 23: Appendices
Appendices Q3 2019 24 @Navamedic
Slide 24: Condensed consolidated statement of comprehensive income
Appendix Condensed consolidated statement of comprehensive income (in NOK '1000) Q3 2019 Q3 2018 YTD 2019 YTD 2018 Year 2018 Operating revenues 48 841 44 309 141 494 132 121 183 916 Cost of materials -33 898 -28 840 -97 905 -87 951 -123 111 Gross profit 14 943 15 468 43 589 44 170 60 804 Gross profi
Slide 25: Condensed consolidated statement of cash flows
Appendix Condensed consolidated statement of cash flows (In NOK '000) Q3 2019 Q3 2018 YTD 2019 YTD 2018 2018 Profit/loss(-) before tax -4 614 -975 -13 703 -8 216 7 011 • Reduced amortizations Taxes paid -794 -904 -1 751 -5 570 -5 335 in Q3 2019 is due to Depreciation, amortization and write off 937
Slide 26: Basis for preparation and Definitions of APMs
Appendix Basis for preparation This presentation provides financial highlights for the quarter for Navamedic Group. The financial information is not reported according to the requirements in IAS 34 (Interim Financial Reporting) and the figures are not audited. The same measurement principles as pres
Slide 27: Copyright and disclaimer
Appendix Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Navamedic and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any