Medartis Holding AG · SIX:MED
Medartis — H1 2020 Earnings Presentation
28 slides from Medartis's earnings presentation, 2020
Slide 1: 2020 Half-Year Results
2020 | Half-Year Results Presentation for investors, analysts and the media Salome Lang | Basel athlete of the year 2017 and Medartis Trainee
Slide 2: Disclaimer
Disclaimer This presentation is not an offer to sell or a solicitation of offers to purchase or subscribe for shares of Medartis Holding AG, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Thi
Slide 3: Agenda
2020 Half-Year Key Developments Christoph Brönnimann, Chief Executive Officer 2020 Half-Year Financial Review Dominique Leutwyler, Chief Financial Officer Focus & Priorities Christoph Brönnimann Summary & Outlook Christoph Brönnimann Q&A
Slide 4: 2020 half-year at a glance
2020 half-year at a glance Sales EBITDA Employees CHFm 57.0 CHFm 5.2 621 -12% in CHF 9% EBITDA margin in CHF +33 vs 30 June 2019 -7% in local currencies 12% EBITDA margin FX-adjusted +12 vs 31 December 2019 Medartis 2020 Half-Year Results 4
Slide 5: 2020 half-year key developments
2020 half-year key developments ▪ Performance during Covid-19 crisis with sales down 7% in local currencies compared to H1 2019 − After strong start to the year, overall sales heavily impacted by pandemic in April and May in particular − Monthly sales back to growth since June ▪ FX-adjusted EBITDA m
Slide 6: Covid-19 impacts
Covid-19 impacts Hospitals Industry Medartis ▪ Capacity alignment focusing on ▪ Strong restrictions during ▪ Focus on health protection, including Covid-19 pandemic lockdowns across regions work-from-home arrangements − No or limited access to hospitals ▪ Partial tightening of regulations ▪ Massive
Slide 7: Covid-19 strategy
Covid-19 strategy ▪ Early establishment of Covid-19 task force ensuring health-protection and business continuity, while preparing return to post-lockdown environment ▪ Implementation of revised business scenario to address expected significant temporary sales drop during lockdowns: − Cost cutting a
Slide 8: 2020 Half-Year Financial Review
2020 | Half-Year Financial Review
Slide 9: 2020 half-year key financial results
2020 half-year key financial results CHFm H1 2019 H1 2020 Change Net sales 64.5 57.0 -12% Net sales FX adjusted* 60.0 -7% Gross profit 54.0 46.7 -13% Opex (including depreciation and amortization) 51.7 48.4 -6% Operating profit (EBIT) 2.4 -1.7 -170% EBITDA 8.7 5.2 -40% EBITDA FX adjusted* 6.9 -21% E
Slide 10: Medartis revenue flows – based on refill of consignment sets
Medartis revenue flows – based on refill of consignment sets Description • Client acquisition & education • Consignment sets represent a major Customer Sets • Reprocessable consignment sets investment and are provided by Medartis Investment provided to hospital • They consist of a tray filled with i
Slide 11: Regional review: Robust sales in EMEA and APAC amid pandemic
Regional review: Robust sales in EMEA and APAC amid challenging conditions marked by pandemic Sales in CHFm H1 2019 H1 2020 % in LC Key Points EMEA • Strong Covid-19 impact in April and Mai with high single-digit recovery in June 34.7 31.9 -4% • All subsidiaries on budget in July except UK • Distrib
Slide 12: Business segment review: Robust sales in Extremities
Business segment review: Robust sales in Extremities despite pandemic-related postponement of elective cases Sales in CHFm H1 2019 H1 2020 % in LC Key Points Upper Extremities • Relatively small decline due to high trauma rate 45.9 41.4 -6% • Fast recovery of sales in established hand and wrist segm
Slide 13: Gross margin development
Gross margin development: Reflects temporary decline in production capacity utilization due to Covid-19 Gross profit margin and COGS Main drivers ▪ FX adjusted gross profit margin at 82.9% 54.0 46.7 Gross profit in CHFm ▪ Corona-related decline in demand and introduction of short-time work led to 16
Slide 14: Cost development: Lower OPEX reflect disciplined cost management
Cost development: Lower OPEX reflect disciplined cost management Main drivers Operating expenses in CHFm Overall OPEX ▪ Down 6% in CHF and 3% FX adjusted 80% 85% As % of sales Research and development -6% 51.7 ▪ Ongoing investments in innovation and MDR readiness 48.4 7.5 ▪ Cost savings through redu
Slide 15: Profitability development
Profitability development: Heavily impacted by Covid-19 and FX developments EBITDA in CHFm Main drivers 13% 9% As % of sales EBITDA ▪ Revenue loss of CHF 7.5m vs H1 2019 partially -40% compensated by OPEX reduction of CHF 3.5m ▪ FX adjusted EBITDA margin largely stable at 12% vs 13% in H1 2019 Net p
Slide 16: Focus & Priorities
medartis® PRECISION IN FIXATION Focus & Priorities
Slide 17: We keep executing our strategy despite the Covid-19 impact
We keep executing our strategy despite the Covid-19 impact Attractive market Clear priorities Ambitious goals Growing market with new Enhance sales focus Top priority to build-up Accelerate clinical needs requiring addressing regional needs US business sales and margin growth innovation Well positio
Slide 18: Progress on strategic initiatives in the first-half 2020
Progress on strategic initiatives in the first-half 2020 Enhance sales focus addressing regional needs ▪ Regional sales focus at Executive Management Board level strengthened with appointment of Lisa Thompson (North America) as of April and Mareike Loch (EMEA) as of August ▪ Reinforced sales executi
Slide 19: Establish Medartis as a global extremities company
Establish Medartis as a global extremities company leading in technology and innovation Key launches 2020 Full launch Limited release Forearm fracture system June ☑ Clavicula system Q3 2020 June ☑ CCS compression screw extension June ☑ - Mid-hindfoot correction system* Q1 2021 Ongoing Distal ankle f
Slide 20: Priorities for second-half 2020
Priorities for second-half 2020 ▪ Ongoing management of Covid-19 situation, taking into account specific regional developments − Continued focus on health protection and business continuity − Continued cost discipline while driving sales execution to capture market opportunities ▪ Continued focus on
Slide 21: Summary & Outlook
medartis® PRECISION IN FIXATION Summary & Outlook
Slide 22: Summary & Outlook
Summary & Outlook ▪ Stringent management of Covid-19 pandemic while continuing to focus on growth initiatives resulted in largely stable FX-adjusted EBITDA margin in first-half 2020 ▪ Monthly sales back to growth since June; new product launches, strengthening of Executive Management Board and organ
Slide 23: Q&A
PRECISION IN FIXATION Q&A
Slide 24: Appendix
medartis® Appendix
Slide 25: Precision in Fixation
Precision in Fixation Medartis: Specializes in technical high-precision implant systems for surgical fixation of bone fractures and osteotomies Founded: 1997 MODUS® Headquarters: Basel, Switzerland APTUS® Shoulder Subsidiaries: Germany, Austria, APTUS® France, UK, Poland, USA, APTUS® Elbow Mexico, B
Slide 26: Medartis value chain
Medartis value chain Product development Customer acquisition Patient journey Revenue generation ▪ Medartis strives to advance existing Involves multiple channels: ▪ Starts with an accident or bone ▪ Reprocessable surgical possibilities and find new clinical ▪ Sales representative’s direct malformat
Slide 27: Consolidated financial statement
Consolidated financial statement H1 2020 H1 2019 Consolidated Consolidated CHF CHF Net Sales 56’993’999 64’478’879 Costs of goods sold -10’272’285 -10’444’987 Gross profit 46’721’714 54’033’892 Gross Profit Margin 82.0% 83.8% Selling and Distribution -29’628’788 -33’698’806 Administration -10’971’98
Slide 28: Consolidated balance sheet
Consolidated balance sheet (CHF) 30 June 2020 31 December 2019 (CHF) 30 June 2020 31 December 2019 Assets Liabilities and equity Current assets: Current liabilities: Cash & Cash equivalents 88’093’188 99’571’993 Accounts payable trade 8’582’050 10’735’393 Accounts receivable trade 21’286’679 26’385’