Mercator Medical Sa · GPW:MRC
Mercator Medical Sa — Investor Presentation (December 2020)
25 slides from Mercator Medical Sa's investor presentation, Dec 9, 2020
Slide 1: Company Presentation
COMPANY PRESENTATION 9.12.2020
Slide 2: Highly experienced and competent Management Board
Mercator Medical: Highly experienced and competent Management Board Dr Wiesław Żyznowski Witold Kruszewski Monika Żyznowska Dariusz Krezymon Founder & Chairman of the Board Member of the Management Board Member of the Management Board Member of the Management Board Founded Mercator Medical in As
Slide 3: European leader in the medical gloves market
Mercator Medical: European leader in the medical gloves market Mercator Medical is a leading manufacturer and distributor of high quality disposable 1 of 2 medical and protective gloves in Poland, with the status of one of the leaders on the entities in Europe and one of the few conglomerates in t
Slide 4: Presentation Plan
PRESENTATION PLAN 1. MARKET OVERVIEW 2. BUSINESS DESCRIPTION 3. FINANCIAL RESULTS 4. STRATEGY AND PERSPECTIVES 5. APPENDICES
Slide 5: Market Overview
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Slide 6: Dynamic sales growth accelerated by COVID-19
Dynamic sales growth accelerated by COVID-19 Global disposable glove sales (billion pcs) 600 514 500 447 400 360 298 300 268 H1N1 233 194 210 +20.8% 200 SARS 171 180 150 148 160 122 124 140 92 94 102 110 100 84 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20
Slide 7: Increasing role of healthcare as a driver for market growth
Increasing role of healthcare around the world as a driver for further market growth Over 2,5x forecasted market size growth until 2027* Demand for gloves per captia (pcs, 2018) vs. healthcare USDbn 18,9 expenditures per capita (USD ths, 2017) 350 CAGR Demand for gloves per capita (pcs) 300 Netherla
Slide 8: Crucial surplus of demand over supply as a factor of increasing market prices
Crucial surplus of demand over supply as a factor of increasing market prices Limited production growth as driver of increase in prices ASP* growth on the example of Sri Trang Gloves Production of the 5 largest gloves manufacturers (billion pcs) USD** per thousand gloves 36,4 82 2019 2020E 70 19,0 1
Slide 9: Further dynamic market development – the largest glove producer's forecasts
Further dynamic market development – the largest glove producer’s forecasts Currently, the time for the delivery of gloves is around 660 days, while before the pandemic this period was usually 30-40 days. It will take up to two years for potential competitors to enter the market due to supply co
Slide 10: Key concerns and mitigants related to market outlook
Key concers and mitigants related to market outlook The growing role of the healthcare sector around the world Maintaining sales volumes Potential demand from underfunded and ill-equipped health sectors in emerging countries after the pandemic (including China and India) Increased hygiene awar
Slide 11: Business Description
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Slide 12: Unique business model: Effective vertical integration
Unique business model: Effective vertical integration providing extensive market know- how Mercator Medical has been operating on the market of disposable medical and protective products for over 20 years. The Company's business model is based on 2 main operating segments: 1• Production of disposabl
Slide 13: Own production plants in Thailand ensuring flexibility
Own production plants in Thailand ensuring flexibility and providing the potential to respond to global changes in demand Factories located near a developed port infrastructure Mercator Medical has 2 production plants in Thailand (17 production lines in total), manufacturing disposable medical glo
Slide 14: Distribution activity ensuring an extensive and diversified product portfolio
Distribution activity ensuring an extensive and diversified product portfolio covering both medical and non-medical areas Mercator Medical revenues by geographical breakdown Within the distribution segment, Mercator sells ca. 3 bn 9M 2019 9M 2020 gloves annually*. Products manufactured in the Co
Slide 15: Financial Results
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Slide 16: Dynamic revenue growth in both business segments
Dynamic revenue growth in both business segments Nearly 2.5-fold increase of LTM revenues vs. FY 2019 Over 60% q/q revenue growth in Q3 2020 Total revenue in annual terms (PLN million) Decomposition of revenue in quarterly terms (PLN million) 1320 Other revenue 604 14 Diagnostic gloves (goods) 242 5
Slide 17: Increase in profitability in recent quarters
Increase in profitability in recent quarters EBITDA profitability more than 10 times higher y/y Significant increase in profitability in both segments EBITDA profitability on a quarterly basis (%) EBITDA profitability* by segments on a quarterly basis (%) 63% 65% 75% Production 61% Distribution 52%
Slide 18: Strong cash position will allow for further development and high dividends
Strong cash position will allow for further development and payment of high dividends High level of EBITDA to cash conversion (PLN million) Dynamic growth of cash resources Cash and cash equivalents in recent quarters (PLN million) EBITDA 89% 385 CFO 391 349 79% 235 185 154 35 1 9 15 15 8 Q4 '20 Q1
Slide 19: Perspectives
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Slide 20: Attractive exposure to a globally unique business model and structural growth
Mercator Medical: Attractive exposure to a globally unique business model and structural growth of the sector Market leader on the disposable gloves market in Europe and with a strong position on the global market, based 1 on a unique strategy in the branch in the field of both production and distri
Slide 21: Appendices
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Slide 22: Possible increase in costs triggered by rising nitrile latex prices
Possible increase in costs triggered by rising nitrile latex prices Comparison of operating costs (PLN million) Potential significant excess of demand over NBR supply 51 The Company's forecasts for demand and supply of NBR latex (million tons) 2 5 3 Supply NBR 10 4,2 7 5 14 Demand NBR (cons.) 4 Dema
Slide 23: Entry into MSCI Small Cap index and possible move to WIG20
Mercator Medical's entry into the international MSCI Small Cap index and the possibility to move to the WIG20 index Potential entry of the Company into the WIG20 index as part of the annual revision In June 2020, Mercator Medical entered the mWIG40 index as part of the quarterly revision of index
Slide 24: Disclaimer
Disclaimer This presentation (“Presentation”) was prepared by Mercator Medical S.A. (the “Company”) and IPOPEMA Securities S.A. (“IPOPEMA”) for information purposes only. The presentation does not constitute an offer to sell or solicitation of an offer to buy or sell any financial instrument, cannot
Slide 25: Contact for Investors
CONTACT FOR INVESTORS: Bogna Sikorska b.sikorska@pandl.pl +48 501 239 339 Adrian Boczkowski a.boczkowski@pandl.pl +48 506 324 456
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