Slide 1: Bactiguard Q2 presentation
1 Bactiguard Q2 presentation 8 August, 2018
Slide 2: Financial highlights in Q2
2 Financial highlights in Q2 ✓ Revenues of MSEK 52.4 (36.5) - 44% higher than in Q2 2017 ✓ Net sales of MSEK 45.0 (36.5) - 23% higher than in Q2 2017 ✓ BIP sales increased by 129% to MSEK 14.9 (6.5) – 11 quarters of increasing BIP sales (rolling twelve-month figures) ✓ License revenues in line with
Slide 3: Operational highlights in Q2 and early Q3
3 Operational highlights in Q2 and early Q3 ✓ Strategic combined distribution and license agreement with Well Lead Medical for China. ✓ Smartwise enters collaboration with AstraZeneca ✓ BIP sales growth driven by China, Europe, India, and MEA ✓ New partnership with Asid Bonz for Germany ✓ New partne
Slide 4: Media and public attention
Media and public attention SCBSNEWS ss Unusual forms of 'nightmare' antibiotic- resistant bacteria detected in 27 states SHOWS VIDEO CBSN. MORE | Q. Antibiotic resistant “nightmare bacteria" a growing threat in the U.S., CDC warns Last Updated Apr 3, 2018 7:25 PM EDT In recent years, antibiotic resi
Slide 5: Licensing business
5 Licensing business BD (C.R. Bard) • Successful partnership since 1995 • Bactiguard coated Foley catheters for the US, Japan and UK/Ireland • Generating stable annual revenues Vigilenz Medical Devices • Bactiguard coated orthopaedic trauma implants for the ASEAN markets • Aiming to conclude CE proc
Slide 6: Why partner with Well Lead Medical?
6 Why partner with Well Lead Medical? • Ambition to accelerate growth in China • Regulatory developments shifting towards locally produced devices • A strategic supplier to Bactiguard • One of the world's leading manufacturers of medical devices • Largest supplier of both urinary catheters and endot
Slide 7: Market update
7 Market update Europe • Break-through CVC tender in Sweden • New partnership for Germany • Focus on adding new markets MEA CHINA • New agreement with Well Lead • Region continues to grow • First product delivery made • Egyptian registration still pending • Kick-off and training in July INDIA LATIN
Slide 8: Accelerating growth in China
Accelerating growth in China July kick-off and sales force training in Guangzhou
Slide 9: New partner for Germany
New partner for Germany ASID@BONZ seit 1811 & Bactiguard
Slide 10: BIP Foleys procured for 65% and BIP CVCs for 13% of Swedish population
10 BIP Foleys procured for 65% and BIP CVCs for 13% of Swedish population Stockholm region & Gotland County councils 23% without tenders 35% Kronoberg Västra Götaland 2% region* Blekinge 17% Kalmar 2% 2% Värmland Skåne region Halland 3% 13% 3% Source: SCB (statistics Sweden) 2016 *Tender appealed in
Slide 11: Development in revenues from BIP products
Development in revenues from BIP products 11 Supplied products • Eleven consecutive quarters of growth, based on rolling 12 months. • 19% CAGR in this time period.
Slide 12: BIP revenues
BIP revenues 12 Supplied products • Revenues from BIP-products of MSEK 14.9 (6.5) in Q2 • BIP revenue growth of 129% in Q2 • During first half year, BIP revenues amounted to MSEK 22.2 (9.3), an increase of 138% • For the full year 2017 BIP-products generated revenues of MSEK 21.8
Slide 13: Financial highlights
13 Financial highlights Second quarter (April-June 2018) Highlights • Revenues of MSEK 52.4 (36.5), an increase of 44%. Net sales of MSEK 45.0 (36.5), an increase by 23%. • Growth primarily driven by the growth in BIP- revenues, which were up 129%, to SEK 14.9 (6.5). • License revenue essentially in
Slide 14: Revenue streams
14 Revenue streams Two revenue streams in the income statement License BIP portfolio BD (sales since 1995), Vigilenz, BIP Foley BIP ETT BIP CVC Smartwise and Well Lead 1 2 License BIP revenue From a product perspective Bactiguard has two lines of business; Licenses and the BIP portfolio, acknowledge
Slide 15: Revenue distribution
15 Revenue distribution Income distribution Apr-Jun Apr-Jun Jan-Jun Jan-Jun Full year Revenue split 2018 2017 2018 2017 2017 License revenues 48% 70% 55% 68% 68% New license revenues 10% 12% 6% 17% 14% Sales of BIP products 28% 18% 26% 12% 14% Other revenues 14% 0% 13% 3% 4%
Slide 16: Cash flow
16 Cash flow Second quarter (Apr-Jun) • Positive cash flow from operating activities, MSEK 6.1 (1.3). Driven by sales growth. • Cash flow from working capital contributed MSEK 4.5 (1.8). An effect of reduced account receivables. • Low investing activities, only MSEK 0.9 (-1.3). • Operating cash flow
Slide 17: Financial targets
17 Financial targets • Average sales growth of 20% per annum for a 5-year period, with 2015 as the base year – starting point MSEK 118.5 • EBITDA margin of at least 30% at the end of the 5-year period (by 2020) • Equity ratio of at least 30% • Over time uphold a dividend policy of 30-50% of net prof
Slide 18: Concluding remarks
18 Concluding remarks ✓ Revenue growth ✓ Eleven consecutive quarters of increasing BIP sales Strong development in China, Europe, India and the Middle East Swedish sales growing and breakthrough CVC tender won ✓ License revenues at par Somewhat lower revenues from BD due to inventory adjustment Lice
Slide 19: Our vision
19 OUR VISION Eliminate healthcare associated infections to 1. save lives 2. reduce cost and 3. limit antimicrobial resistance, through preventive standards of care..
Slide 20: More information is available at www.bactiguard.se
20 More information is available at www.bactiguard.se For questions and additional information, please contact: Christian Kinch, CEO Switchboard +46 8 440 58 80 christian.kinch@bactiguard.se @ChristianKinch Cecilia Edström, CFO Cell phone +46 72-226 23 28 cecilia.edstrom@bactiguard.se @EdstromCecili