Tristel Plc · LSE:TSTL
Tristel — FY2022 Earnings Presentation
20 slides from Tristel's earnings presentation, Oct 25, 2022
Slide 1: Preliminary Results Investor Presentation
30 JUNE 2022 PRELIMINARY RESULTS INVESTOR PRESENTATION PAUL SWINNEY, CEO LIZ DIXON, CFO 25-26 OCTOBER 2022 1
Slide 2: The Company
THE COMPANY • Global infection prevention • Focus on the hospital • Focus on our proprietary chlorine dioxide chemistry Decontamination of medical devices: ultrasound, endoscopic & ophthalmic. Portfolio brand Tristel. Status: “Global market leader in manual high-level disinfection of medical devices
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS • Turnover steady at £31.1m (2021: £31.0m) with 3% growth in continuing products to £29.6m (2021: £28.6m) • Overseas sales continue to grow, up 2% to £20.1m (2021: £19.6m), representing 65% of total sales (2021: 63%) • Gross margin remained steady at 79% (2021: 80%) • Adjusted E
Slide 4: Operational Highlights
OPERATIONAL HIGHLIGHTS • Business focused exclusively on hospital market with discontinuation of non-core, low growth products completed during the year • De Novo FDA submission for Tristel Duo ULT progressing - additional information requested (as is commonplace) with expected timescale for decisio
Slide 5: 17 Year Growth Record
17 YEAR GROWTH RECORD £35,000,000 £30,000,000 FY20, FY21, FY22: Brexit, COVID, rationalisation £25,000,000 £20,000,000 £15,000,000 £10,000,000 £5,000,000 £- 5 55
Slide 6: FY20 to FY23: Brexit, COVID, Rationalisation
FY20 to FY23: BREXIT, COVID, RATIONALISATION • FY20 Q3 & Q4 First Wave: FY20 FY21 FY22 FY23 Hospitals build stocks of all infection prevention products and out-patient services 8,000,000 scaled back 7,000,000 • FY21 Q1 & Q2 First Recovery: Out-patient services resume and UK NHS 6,000,000 purchase £0
Slide 7: FY22 Rationalisation
FY22 RATIONALISATION • Discontinued non-chlorine dioxide, non-hospital activities in the year • 2 product ranges with no growth opportunity; lower margin; disproportionate manufacturing resource • Commenced discontinuation July 2021; substantially complete December 21 • Revenue contribution of disco
Slide 8: FY22 Underlying Trends
FY22 UNDERLYING TRENDS 35,000,000 30,000,000 • All sales (all colours on chart) = 0% growth 25,000,000 • Exclude blue (discontinued) = 3% growth continuing products • Purple only (Medical device products) = 6% growth 20,000,000 • Purple only (MD), without Brexit distortion = 14% growth despite 15,00
Slide 9: FY23 Tailwinds & Headwinds
Positive: FY23 TAILWINDS & HEADWINDS • Tristel Medical Device Decontamination: Diagnostic procedures using medical devices we target are increasing in all 14 subsidiaries & distributor markets • Cache Sporicidal Surface Disinfection: Better informed selection of highest performing disinfectants for
Slide 10: FY23 – FY25 Financial Targets
FY23 – FY25 FINANCIAL TARGETS Returning to growth • Sales growth in the range of 10% to 15% per annum as an annual average over the three years (Over 14 year period to FY19 CAGR was 17%) • EBITDA margin (excluding share-based payment charge) of at least 25% (FY19 EBITDA margin was 27%) 10
Slide 11: North America
NORTH AMERICA USA USA CANADA Duo ULT: Ultrasound Probe DUO: Ultrasound console Duo OPH: Ophthalmic Devices 11
Slide 12: ESG Highlights
ESG HIGHLIGHTS ESG actions: • Engagement of ESG specialist consultant to assist in developing an ESG strategy and external reporting • Second Carbon emission calculation which will allow Carbon Zero targets and route to success to be defined in 2022-23 • Ongoing consideration of the carbon profile o
Slide 13: Summary & Outlook
SUMMARY & OUTLOOK • Worst impacts of COVID and Brexit passed • Growth resumed • Overseas expansion continuing • Profitable, cash generative, debt free • Rationalisation complete Simple, focussed, global opportunity 13
Slide 14: Thank You
THANK YOU Tristel
Slide 15: Sales Growth by Channel
SALES GROWTH BY CHANNEL £m 2020-21 2021-22 Y-O-Y change % change Tristel Hospital Medical Device Decontamination UK direct 6.91 7.62 0.71 10% Europe direct 10.00 10.37 0.37 4% APAC direct 5.03 5.30 0.28 5% Distributors 2.09 2.13 0.04 2% 24.02 25.42 1.40 6% Cache Hospital Surface Disinfection UK dire
Slide 16: Sales Growth by Geography
SALES GROWTH BY GEOGRAPHY £m 2020-21 2021-22 Year on year change % change Australasia 3.80 3.97 0.17 5% China & Hong Kong 1.60 1.65 0.05 3% Malaysia & Singapore 0.58 0.61 0.03 5% Western Europe 4.89 4.84 -0.05 -1% Central Europe 5.38 5.43 0.05 1% Italy 0.79 1.01 0.22 28% Overseas distributors 2.60 2
Slide 17: Appendix – Income Statement
APPENDIX – INCOME STATEMENT £’000 £’000 Cost of sales (6,464) (6,255) Administrative expenses less other operating income (17,158) (16,344) Net interest (194) (194) Operating profit before amortisation & shared based payments 7,307 8,205 Amortisation & Depreciation (2,777) (2,813) Impairment of inta
Slide 18: Appendix – Balance Sheet
APPENDIX – BALANCE SHEET Non-current assets £’000 £’000 Goodwill 5,242 5,265 Intangible assets 4,138 6,704 Property, plant and equipment 8,000 8,542 Deferred tax 1,493 2,489 Current assets Inventories 4,420 4,266 Trade and other receivables 5,851 5,255 Income tax receivable 713 170 Cash and cash equ
Slide 19: Appendix – Balance Sheet …Continued
APPENDIX – BALANCE SHEET …Continued Capital and reserves £’000 £’000 Share capital 473 471 Share premium account 13,996 13,600 Merger reserve 2,205 2,205 Foreign exchange reserve (65) (203) Retained earnings 12,371 14,687 Non-controlling interests 7 7 Current liabilities Trade and other payables 3,2
Slide 20: Appendix – Cash Flow Statement
APPENDIX – CASH FLOW STATEMENT £’000 £’000 Profit before tax 1,495 3,761 Add back non-cash items 6,026 4,711 Working capital movements (1,196) 129 Interest received 1 1 Purchase of tangible fixed assets (305) (1,159) Purchase of intangible assets (898) (608) Payment of lease liabilities (IFRS16) (93