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Safe Sa — Safe Orthopaedics — Investor Presentation (March 2016)
29 slides from Safe Sa's investor presentation, March 2016
Slide 1: Investor Presentation
Investor Presentation March 2016 www.SafeOrtho.com │ Strictly Confidential │
Slide 2: Disclaimer
Disclaimer The statements made in this presentation may include forward-looking statements regarding the future operations of SAFE ORTHOPAEDICS, including estimates of target market opportunity, timing of planned clinical trials and results from those trials, regulatory strategy and timing of planne
Slide 3: A highly experienced and complementary team
A highly experienced and complementary team Pierre Dumouchel – Interim CEO and co-founder Strong international development experience ► 10 years within the Spine instruments/implants industry ► Experienced at managing industrial processes and managing sub-contractors developed within the automobile
Slide 4: Safe Orthopaedics: How?
Safe Orthopaedics “ Increasing the efficiency and security of spine surgeries How? Create a range of sterile implants associated to their single-use instruments! Investor Presentation – Strictly Confidential 4
Slide 5: Costs of performing surgeries using reusable instruments
Costs of performing surgeries using reusable instruments + Implants Costs supported by the hospital + Sterilization process + Associated staff A costly and + Reusable instruments inefficient Costs supported + Logistics staff by the implants’ process manufacturer + Technical support + Sales staff A b
Slide 6: Costs of performing surgeries using single-use instruments
Costs of performing surgeries using single-use instruments + Implants Costs supported by the hospital ‒ / ‒ / A model with ‒ / low resources Costs supported ‒ / by the implants’ consumption manufacturer + Technical support + Sales staff The single-use: a more efficient model, both for users and manu
Slide 7: Single-use: Evident benefits for all stakeholders
Single-use: Evident benefits for all stakeholders Patient Surgeon ► Streamlined surgical gesture ► No risk of infection nor contamination tied to the reuse of ► Instruments in perfect condition instruments ► Reducing the number of cancelled or suspended surgeries Medical Team Hospital ► Simplified o
Slide 8: Single-use: A fundamental trend
Single-use: A fundamental trend Adoption of the single-use in surgery1 Neurology Odontology Ophtalmology Cardiology An inevitable movement, hampered only by technical constraints 1 Source: Safe Orthopaedics Investor Presentation – Strictly Confidential 8
Slide 9: Single-use for back surgery: a technical challenge
Single-use for back surgery: a technical challenge Complexity / Number of instruments Difficult development of a single-use kit Cardiology Spine 100% Neurosurgery 0-2 %1 Ophtalmology 40 % 80 % Easy development of a single-use kit x% Share of the market Physical force to apply through the represented
Slide 10: An original and innovative solution, protected by 17 patents
Safe Orthopaedics: An original and innovative solution, protected by 17 patents Re-usable instrumentation 46 instruments 24 instruments + Complete redesign of instruments Rationalized yet + unchanged surgical procedure 31 functions 43 functions + Specific benefit linked to new materials Source : Saf
Slide 11: Different and evolving market dynamics
Different and evolving market dynamics Needs that are met and unmet by traditional instrumentation solutions Immediate attractiveness Instruments’ Reducing time Maximizing for Safe Safety availability spent in the OR savings Orthopaedics Europe Emerging countries USA1 Legend: Met need Unmet need A f
Slide 12: 2015, strong progression of our market penetration in Europe
Section 1 2015, strong progression of our market penetration in Europe
Slide 13: 2015: An action plan at a sustained pace
2015: An action plan at a sustained pace 2,310 surgeries performed in 2015 (x2.2) ► Fenestrated screws for patients suffering from osteoporosis Product ► Trauma screws for vertebral fractures innovation ► Cervical range on track Commercial ► Business settlements in 4 new countries development ► Clin
Slide 14: A growing recognition from the hospital world
A growing recognition from the hospital world Quarterly cumulative surgeries [VALEUR] 1 691 1 143 1 050 551 610 424 354 297 170 190 83 Q1 Q2 Q3 Q4 2013 2014 2015 A doubling of the number of surgeries performed 2 years in a row … achieved despite limited commercial means Présentation Investisseurs –
Slide 15: Sales up 25%, with contrasting performances for each zone
Sales up 25%, with contrasting performances for each zone Sales (in k€) 2 525 1 935 2 053 1 307 1 419 1 007 703 452 Q1 Q2 Q3 Q4 2014 2015 ► France sales are growing strongly (+65%... despite limited commercial means) ► Stables export sales (+1%) due to the impact of opening distributor accounts in 2
Slide 16: A new product: The auto-adjust trauma screw
A new product: The auto-adjust trauma screw An innovation without any equivalent to treat vertebral fractures ► Patented implant which enables to reduce progressively and automatically in a single step the fracture with a surgical motion identical to that performed in a traditional surgery ► Optimal
Slide 17: Strategic development strategy
Section 2 Strategic development strategy
Slide 18: A distribution model both efficient and flexible
A distribution model both efficient and flexible ► Europe – Direct sales force in France ! Good conversion rate ! Excellent loyalty rate ! Average usage rate progressing strongly ! One additional salesperson from mid-2016 – Distributors ! Strong growth in some countries ! A new International Sales V
Slide 19: France – A strong direct sales force model
France – A strong direct sales force model… ► > 2,000 surgeries performed since launch Loyalty of regular Average usage by Conversation rate users regular users 33% 100% x2 in Measures surgeon loyalty: 12 months • A surgeon joins the regular user population only after he/ she has used the product 5
Slide 20: Constrained by limited commercial means
… constrained by limited commercial means ► The average use per surgeon has doubled… ► … but the number of new surgeons is stagnating Nombre Average mensuel moyen monthly de chirurgies number of surgeries réalisées NewNouveaux surgeons chirurgiens acquisition par la population performed d'utilisateu
Slide 21: European distributors: Some great successes to replicate
European distributors: Some great successes to replicate Several European successes: Spain, Netherlands, to replicate in other countries ► Strong growth in number of cumulative surgeries quarter after quarter A pragmatic execution strategy ► Referencing and KOLs: to gain visibility with surgeons who
Slide 22: Developing emerging countries
Developing emerging countries Some early successes ► Promising starts in some markets, most notably Saudi Arabia ► High potential Russian distributor currently in registration phase Excellent market fundamentals ► Our products are particularly well-suited for emerging countries: ► The availability o
Slide 23: Newsflow 2016-2017
Newsflow 2016-2017 Technical and clinical advances ► Cervical range: CE mark and first surgeries ► Launch of medico-economic studies International expansion ► Opening in new countries: Poland, Scandinavia, Canada, Australia, etc. ► Deploying the single use model to emerging countries: Mexico, Russia
Slide 24: Financing situation
Section 3 Financing situation
Slide 25: Funding situation
Funding situation Cash position and consumption ► Treasury position of €5,9M as of December 31, 2015 ► Average monthly cash burn of €550k ► Cash consumption is under control. The halting of US commercial operations will further reduce cash burn Fundraising performed since the IPO ► €3,2M (including
Slide 26: Appendices
S a Appendices SafeOrthopaedics Spine Specialist
Slide 27: Income statement
Income statement 30/06/2014 30/06/2015 Thousands of Euros 31/12/2013 31/12/2014 6 months 6 months Revenues 967 2,053 1,007 1,307 Purchases net of stock variations (953) (1,640) (635) (894) External expenses (826) (2,221) (1,085) (1,141) Staff expenses (1,865) (3,048) (1,324) (1,983) Others (116) (71
Slide 28: Balance sheet
Balance sheet Thousands of Euros 30/06/2015 31/12/2014 Thousands of Euros 30/06/2015 31/12/2014 NON-CURRENT ASSETS Shareholders’ equity Capital 1,342 919 Intangible assets 583 563 Share premium 21,894 13,798 Property, Plant and Equipment 793 725 Conversion reserves (506) (242) Other financial assets
Slide 29: Board of directors
Board of directors Gérard Gérard Vaillant is a career veteran of Johnson & Johnson. His positions with J&J include managing director, Ortho Clinical Diagnostics France (1981 - Vaillant 1987); VP J&J International (1987 - 1992); worldwide president, LifeScan, a J&J company (1992 - 1995); and company
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