Somnomed Limited · ASX:SOM
Somnomed — FY2021 Earnings Presentation
29 slides from Somnomed's earnings presentation, Aug 24, 2021
Slide 1: Investor Presentation: Financial Year 2021 results
For personal use only Investor Presentation Financial Year 2021 results Treatment focused. Technology driven. Financial results are unaudited
Slide 2: Disclaimer
Disclaimer 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 securities. This documen
Slide 3: FY21 Highlights
For personal use only FY21 Highlights
Slide 4: FY21 financial highlights
FY21 financial highlights For personal use only Total Revenue EBITDA1 Cash A$62.7m (+9%) PCP A$3.9m (-17%) PCP A$21.1m Europe Costs well Prudent use +20% PCP managed of funds APAC Stable product gross Bank debt +17% PCP margin fully repaid North America Future horizon Positive net operating -9% PCP
Slide 5: FY21 strategic & operational highlights
FY21 strategic & operational highlights • Patient centric strategic objective leads to long term effective solutions for OSA patients For personal use only • Strengthened sales and marketing efforts in each OSA market • Europe’s reimbursement initiatives continue within the region with the medical c
Slide 6: Market Opportunity
For personal use only Market Opportunity
Slide 7: Significant addressable markets globally
Significant addressable markets globally Obstructive sleep apnea, a growing burden on the medical system affecting a significant portion of the population For personal use only Obstructive sleep apnea (OSA) is a disorder that occurs when a person’s breathing is interrupted during sleep because the a
Slide 8: SomnoMed
For personal use only SomnoMed
Slide 9: SomnoMed's Vision/Mission
SomnoMed’s Vision/Mission For personal use only Our vision is to lead in the treatment of patients suffering from obstructive sleep apnea and relevant adjacent conditions Our mission is to advance the adoption, acceptance and treatment of oral sleep apnea therapies by medical specialists, dentists,
Slide 10: SomnoMed's credentials
SomnoMed’s credentials The leader in COAT™ products for the treatment of OSA For personal use only 17+ independent studies have demonstrated the device’s significant clinical benefits and treatment effectiveness 620,000+ patients 28 countries treated worldwide with with sales track record and SomnoD
Slide 11: The SomnoMed product difference
The SomnoMed product difference For personal use only SomnoMed delivers the highest level COAT™ comfort and quality Technologically Advanced Cost Effective Solution Materials that improve patient comfort and Lower cost to fit, maintain and retain customers product function for sleep physicians, dent
Slide 12: Improving treatment options for OSA patients
Improving treatment options for OSA patients For personal use only COAT™ provides a non-invasive alternative treatment option for those that can’t undertake surgery or find CPAP difficult to tolerate COAT™ CPAP Surgery Continuous Open Airway Continuous Positive Airway Therapy (COAT™) works by Pressu
Slide 13: Growing the sector through positioning the patient's alternative
Growing the sector through positioning the patient’s alternative For personal use only • Show Sleep Physicians how COAT™ and CPAP can be equally effective over a Effectiveness patient’s full night of sleep Equation • Focus is on superior compliance of COAT™ and patient preference for COAT™ • Fund an
Slide 14: Improving treatment effectiveness for OSA patients
Improving treatment effectiveness for OSA patients For personal use only Efficacy Many patients Clinical Insight don’t get effective The findings are sobering. Our CPAP: treatment all data suggest that despite Lower Compliance night, every night numerous changes to machine x Greater Efficacy and mas
Slide 15: FY21 Results
For personal use only FY21 Results
Slide 16: Total group revenues
Total group revenues $70m For personal use only $62.7m +9% $60m $57.3m $50m $40m $33.3m -7% $30.8m $31.9m $30m +33% $24.0m $20m $10m $0m 1H 2H FY FY20 FY21 © August 2021 SomnoMed 16
Slide 17: Total regional revenues
Total regional revenues For personal use only North America Europe APAC $25m $45m $6m $40m 5.4 38.8 $5m $20m 20.4 $35m 4.6 18.5 $30m 32.4 $4m $15m $25m $3m 12.3 -9% $20m +17% 20.3 2.7 2.7 $10m +20% 2.6 18.3 18.6 9.5 $15m $2m 9.0 8.1 14.1 1.9 -23% +1% $10m +2% $5m +44% $1m +39% +12% $5m $0m $0m $0m 1
Slide 18: Stable MAS product gross margin
100% Stable MAS* product gross margin 90% 40 For personal use only 80% 70% 70% 35 • Product level (MAS) gross margin remained 60% $33.6m stable at ~70% • Digital manufacturing process producing 50% 69% efficiencies across product range 30 $30.1m • MAS gross margin $ grew 10% to $33.6m 40% contributi
Slide 19: EBITDA
EBITDA1 For personal use only • EBITDA1 decreased 17% to $3.9m, however product gross margin (FY21: 70%) was maintained and positive impacts from recovery resulted in stronger contributions EBITDA1 (A$m) • Impacts on EBITDA1: $4.7m • Focused on retaining staff to be well-positioned, post COVID-19, t
Slide 20: Profit and loss summary
Profit and loss summary For personal use only A$m FY21 FY20 % Regional sales and marketing expenses: Revenue 62.7 57.3 +9% Travel restrictions due to Covid-19 with more Gross margin 37.7 33.1 +14% virtual sales calls than physical due to limitation on hospital and clinic access Regional sales and ma
Slide 21: Reduced liability and investing for future growth
Reduced liability and investing for future growth 35 For personal use only • Cash and cash equivalents reduced from 30 A$30.2m in FY20 to A$21.1m in FY21 30.0 1.6 1.5 reflecting: 1.0 25 • Focus on reducing liabilities through the 4.9 repayment of the $4.9m bank facility 0.6 21.1 • COVID-19 governmen
Slide 22: Innovation and future horizons
For personal use only Innovation and future horizons
Slide 23: Positioned for future growth
Positioned for future growth For personal use only Technology driven Investment in the technology pathway to unlock true COAT™ potential Best in class service and technical support Growing and extensive sales and distribution footprint in both dental and medical channels Treatment focused Design and
Slide 24: SomnoMed future horizons
SomnoMed future horizons For personal use only Building Creating Driving Investing in Awareness Advancing + Acceptance Positioning + Adoption Continued + Innovation Transformational treatment and the patient’s investment in product technology and building the core alternative development and connect
Slide 25: Technology driven
Technology driven One integrated and automated technology platform For personal use only Realtime dental clinical decision & acceptance App-Nea Portal Data Bridge between medical & Devices dental Connectivity, big data & personalised medicine Clinical evidence Analytics Screening & diagnosis Reimbur
Slide 26: Investing to achieve category leadership
Investing to achieve category leadership Financial framework for future growth and profitability For personal use only Accelerated Balanced Mature growth growth growth invest EBITDA1 Top & bottom Priority Top line Bottom line line into future horizons Annual revenue >20% 15-20% 10-15% growth to Main
Slide 27: Outlook
For personal use only Outlook
Slide 28: Outlook
Outlook For personal use only FY22 guidance Key considerations Key strategic objectives • Revenue growth of at least 15%2 • Continue to respond to Treatment focused • EBITDA1 break even as we invest for future changing market conditions • Focus on Medical Initiative in growth (expected to rebound in
Slide 29: For further information please contact
For personal use only For further information please contact: Corporate Investors Mr. Neil Verdal-Austin Mr. Craig Sainsbury CEO SomnoMed Market Eye +61 406 931 477 +61 428 550 499 Nverdal-austin@somnomed.com Craig.sainsbury@marketeye.com.au © August 2021 SomnoMed 29