Somnomed Limited · ASX:SOM
Somnomed — H1 FY2022 Earnings Presentation
30 slides from Somnomed's earnings presentation, February 2022
Slide 1: Investor Presentation: First Half FY2022 Results and Connected Technology Update
Investor Presentation First Half Financial Year 2022 Results and Connected Technology Update Treatment focused. Technology driven.
Slide 2: Disclaimer
Disclaimer 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 document should be read in co
Slide 3: Agenda
Agenda • First half (1H FY22) results summary • Vision and market opportunities • Financial information • Connected technology • FY22 outlook © February 2022 SomnoMed 3
Slide 4: 1H FY22 Highlights
1H FY22 Highlights
Slide 5: 1H FY22 financial highlights
1H FY22 financial highlights Total Revenue EBITDA1 Cash A$33.9m (+10%) PCP A$0.2m A$17.6m North America Stable product gross Prudent use +25% PCP margin of 69% of funds Reduction in EBITDA1 $5m available in Europe due to investment for undrawn debt +5% PCP growth facilities Investments include APAC
Slide 6: 1H FY22 strategic & operational highlights
1H FY22 strategic & operational highlights • Launch of Rest Assure®, an inbuilt technology-enabled device to address the lack of overnight monitoring in COAT™ applications • Patient centric strategic objective leads to long-term effective solutions for OSA patients • Strengthened sales and marketing
Slide 7: Vision and Market Opportunity
Vision and Market Opportunity
Slide 8: SomnoMed's Vision/Mission
SomnoMed’s Vision/Mission 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, patients and insurers
Slide 9: 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 Obstructive sleep apnea (OSA) is a disorder that occurs when a person’s breathing is interrupted during sleep because the airway becomes blocked
Slide 10: The long-term effectiveness of OAT therapy
The long-term effectiveness of OAT therapy Change in the AHI over time in the overall population and in patient sub-groups based on baseline OSA severity ~ 936 million patients have OSA and 60% have Mild OSA (AHI 5–≤15 events/h)1 Mild OSA has a natural tendency to worsen with time. Active treatment
Slide 11: 1H FY22 Results
1H FY22 Results |
Slide 12: Group total revenues by quarter
Group total revenues by quarter $40m $35m +10% $33.9m $30m $30.8m $25m $20m +7% $18.4m +14% $17.1m $15m $15.6m $13.7m $10m $5m $0m Q1 Q2 1H FY21 FY22 © February 2022 SomnoMed 12
Slide 13: Regional total revenues by quarter
Regional total revenues by quarter North America Europe APAC $14m $3m $20m $2.7m $12m $19.5m $2.6m $11.9m $18.6m $10m $15m $2m $9.5m $8m +5% $6.8m $10m $10.6m $1.5m $1.4m $6m $10.2m -5% $9.3m $1.3m +25% $1.2m $5.1m $5.0m $7.9m $1m $4m $4.5m -5% $5m +36% -3% +17% $2m +13% -8% $0m $0m $0m Q1 Q2 1H Q1
Slide 14: EBITDA and margin analysis
EBITDA1 and margin analysis Product Gross Margin 70% 69% • Gross margin grew $2.8m over the previous corresponding period, $20.9m reflecting increased revenues driven by positive effects of the medical $18.1m strategy • The MAS product gross margin of 69% for the half remained stable vs 1HFY22 despi
Slide 15: Profit and loss summary
Profit and loss summary A$m 1H22 1H21 % Revenue 33.9 30.8 +10% Regional sales and marketing expenses Gross margin 20.9 18.1 +16% including: Regional sales & marketing expenses (9.5) (7.1) +34% • A$1.5m on sales and marketing resources to drive organic growth as well as to support new Regional admini
Slide 16: Summary balance sheet and cash flow
Summary balance sheet and cash flow Statement of financial position Statement of cash flows A$m Statutory Statutory A$m Statutory Statutory 31 Dec 2021 30 Jun 2021 31 Dec 2021 30 Jun 2021 Cash and cash equivalents 17.6 21.1 EBITDA(1) 0.21 3.88 Net cash flow from operating activities: Inventories 2.6
Slide 17: SomnoMed's technology-enabled oral appliance
SomnoMed’s technology-enabled oral appliance
Slide 18: Dawn of a New Era
Dawn of a New Era © February 2022 SomnoMed 18
Slide 19: Welcome to Rest Assure
Welcome to Rest Assure® SomnoMed’s inbuilt, technology-enabled oral appliance Rest Assure® Elite and Rest • Oral appliances have lacked overnight monitoring, unlike CPAP, resulting in: Assure® Avant will be • Lower acceptance and adoption of COAT™ connected to a patient phone app as well as web-base
Slide 20: The value of Rest Assure: responses to barriers to COAT
The value of Rest Assure® SomnoMed’s inbuilt, technology-enabled oral appliance US Sleep Physician Research - Barriers to COAT™ prescription (N=242) • Addressing the lack of night time monitoring as a major Barrier ® barrier to COAT™ prescription, Rest Assure will provide 60 objective data to clinic
Slide 21: How does Rest Assure technology work?
® How does Rest Assure technology work? Smart oral appliance and cloud based infrastructure SOM algorithms determine AHI, graphs, tables… Patient app Smart oral appliance with sensors recording overnight data. Physician Portal Patient docks their device after Raw data transferred via Data transferre
Slide 22: What is measured vs. CPAP?
What is measured vs. CPAP? Multiple in-mouth sensors providing objective, personalised data Sleep Position - Treatment Respiratory Usage (adherence) Efficacy Prone / Supine Interruptions Rate CPAP Time the device is Surrogate AHI from connected to patient ventilation, validated by Not provided Mask
Slide 23: Patient study validation
Patient study validation 2 stage, best practice approach Algorithm derivation study: High correlation with NOX Algorithm validation/usability study: • 31 patients, ~400 hours of sleep AHI (efficacy): • Currently underway, conducted by • Algorithms derived by correlating Rest Rest Assure® vs NOX Prof
Slide 24: Timeline for commercial readiness
Timeline for commercial readiness Rest Assure® - overnight compliance and efficacy monitoring for COAT™ End Q3 FY22: • Finalise patent strategy • Present at World Sleep meeting (~2,000 physician attendees) • Completion of patient validation study End Q4 FY22: • Final design for docking station and s
Slide 25: Future Outlook
Future Outlook
Slide 26: Positioned for future growth
Positioned for future growth Technology driven Investment in the technology pathway to unlock true COAT™ potential Best in class service and technical support Extensive and growing sales and distribution footprint in both dental and medical channels Treatment focused Design and innovation driving pa
Slide 27: Growing the sector through positioning the patient's alternative
Growing the sector through positioning the patient’s alternative • 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 and support clinical tri
Slide 28: Investing to achieve category leadership
Investing to achieve category leadership Financial framework for future growth and profitability 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 Maintain accelerate EBITDA
Slide 29: Outlook
Outlook FY22 guidance remains1 Key considerations Key strategic objectives • Revenue growth of at least 15% • Continue to respond to changing market Treatment focused • EBITDA2 breaking even as we invest conditions • Focus on Medical Initiative in for future growth • Drive growth opportunities all t
Slide 30: For further information please contact
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 © February 2022 SomnoMed 30