Medartis Holding AG · SIX:MED
Medartis — FY2018 Earnings Presentation
28 slides from Medartis's earnings presentation, 2019
Slide 1: 2018 Full-Year Results
2018 | Full-Year Results Presentation for investors, analysts and the media Salome Trainee, Medartis
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: 2018 Full-Year Highlights, Business Development and Priorities, Financials
2018 Full-Year Highlights Business Development and Priorities 2018 Full-Year Financials Willi Miesch, Chief Executive Officer Dominique Leutwyler, Chief Financial Officer
Slide 4: 2018 Full-Year Highlights
2018 | Full-Year Highlights Simon Polymechanic, Medartis
Slide 5: Medartis remains fully on track – further growth and business expansion in 2018
Medartis remains fully on track – further growth and business expansion in 2018 Sales (1) Employees (1) EBITDA margin +16% 561 15% excl. IPO costs (2) +16% in local currencies +18% 12% (reported) (1) 2018 vs 2017 (2) Excl. capital market-related costs (IPO) of CHF 3.2 million in 2018 Full-Year Highl
Slide 6: 2018 Full-Year Financials
2018 | Full-Year Financials Markus Head Sales China & Japan, Medartis
Slide 7: Consolidated financial statements
Consolidated financial statements Full-Year Financials Medartis 2018 Full-Year Results 7
Slide 8: 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 9: Double-digit growth in all regions
Double-digit growth in all regions Sales breakdown / regions in CHFm Growth / regions 2018 vs 2017 Total 16% in CHF Total 16% in LC 121.3 12.9 LATAM 41% 53% 105.0 9.2 19.3 North America 11% 12% 17.4 22.8 APAC 10% 15% 20.7 66.4 EMEA 15% 12% 57.8 2017 2018 Full-Year Financials Medartis 2018 Full-Year
Slide 10: Business segments with growth significantly above average market rate
Business segments with growth significantly above average market rate Sales breakdown / segments in CHFm Growth / segments 2018 vs 2017 Market CAGR 2016 - 2022(1) Total 16% in CHF Total 16% in LC 121.3 105.0 87.2 Upper Extremeties 13% 14% 7% 76.8 16.4 Lower Extremeties 28% 29% 7% 12.8 15.4 17.8 16%
Slide 11: Stable gross margin
Stable gross margin Gross margin and COGS(1) Main Drivers ▪ Pressure on prices in the market ▪ Growth in higher priced markets 87.6 101.2 Gross profit CHFm ▪ Continued higher priced product innovation 16.6% 16.6% ▪ Lean program in manufacturing COGS as % of sales 83.4% 83.4% ▪ Higher purchasing volu
Slide 12: Significant investments to support growth
Significant investments to support growth Adjusted operating expenses in CHFm(1) Main Drivers Research and development ▪ Reflects higher development efforts to 72% 76% as % of sales upgrade product portfolio +21% ▪ Higher costs due to new registration 91.9 requirements Research and 75.8 13.0 develop
Slide 13: Focus on OPEX alongside further business investments
Focus on OPEX alongside further business investments Adjusted EBITDA, in CHFm (1) Main drivers ▪ Double-digit sales growth across regions and business segments 18% 15% As % of sales ▪ OPEX reflects growth strategy -7% 19.0 17.6 2017 2018 (1) Excl. capital market-related costs (IPO) of CHF 3.2 millio
Slide 14: Business Development and Priorities
Business Development and Priorities Kylian Project Manager Process Engineering, Medartis
Slide 15: Becoming a global top player in major small bone markets
Becoming a global top 3 player in major small bone markets Expand sales and Remain the innovation In-house manufacturing Maintain and establish marketing efforts to leader for small bone of Swiss-made quality long-term relationships increase revenues solutions and new surgical products priced at app
Slide 16: Globally diversified business
Globally diversified business North America (US) Revenue share 16% CHF 19.3m APAC LC growth 12% Revenue share 19% CHF 22.8m LC growth 15% LATAM Revenue share 10.5% CHF 12.9m EMEA LC growth 53% Revenue share 54.5% CHF 66.4m LC growth 12% Headquarters 11 subsidiaries 40 countries with distribution par
Slide 17: EMEA: continued high-level growth
EMEA: continued high-level growth 2018 full-year results ▪ CHF 66.36 million (+15% in CHF / +12% in local currencies) Highlights and observations ▪ Strong growth of subsidiaries ▪ Distributor markets in line with expectations ▪ Lower growth in H2 vs H1 2018 reflects distributor purchases in the firs
Slide 18: North America: investments beginning to pay off
North America: investments beginning to pay off 2018 full-year results ▪ CHF 19.30 million (+11% in CHF / +12% in local currency) Highlights and observations ▪ Measures to strengthen management capacities and sales structures began to take effect ▪ Expansion of professional relationships with leadin
Slide 19: APAC: strong performance in established markets
APAC: strong performance in established markets 2018 full-year results ▪ CHF 22.78 million (+10% in CHF / +15% in local currencies) Highlights and observations ▪ Strong performance in Australia and Japan ▪ First lower extremity business activities at new subsidiary Japan in Q4 2018 H1 2019 prioritie
Slide 20: LATAM: challenging market environment in second half of year
LATAM: challenging market environment in second half of year 2018 full-year results ▪ CHF 12.89 million (+41% in CHF / +53% in local currencies / +10% excl. acquisition effect) Highlights and observations ▪ Region with the strongest growth momentum in 2018 ▪ Challenging market environment in the sec
Slide 21: Upper extremities: strong results in hand, wrist and elbow
Upper extremities: strong results in hand, wrist and elbow 2018 full-year results ▪ CHF 87.16 million (+13% in CHF / +14% in local currencies) Highlights and observations ▪ Hand, wrist and elbow implants all contributed to the strong result ▪ Launch of shoulder system in Q4 2018 ▪ H2 2018 results re
Slide 22: Lower Extremities: dynamic growth
Lower Extremities: dynamic growth 2018 full-year results ▪ CHF 16.35 million (+28% in CHF / +29% in local currencies) Highlights and observations ▪ Over 100 courses conducted for users ▪ Strong international KOL group to help build and grow the business ▪ Strengthening of sales forces in countries w
Slide 23: CMF and Others: strong growth
CMF and Others: strong growth 2018 full-year results ▪ CHF 17.81 million (+16% in CHF / +16% in local currencies) Highlights and observations ▪ Year-on-year growth in CMF in line with the market ▪ Solid revenue base from instruments and containers, reflecting overall business growth ▪ H2 2018 result
Slide 24: Summary and outlook
Summary and outlook 2018 performance ▪ Double-digit sales growth across regions and business segments ▪ Increased strategic flexibility and market profile through IPO in March 2018 ▪ Continued investments in market presence and business in key countries ▪ Solid profitability with adjusted EBITDA mar
Slide 25: Appendix
Appendix Ruth Post-Market Surveillance Manager, Medartis Markus Arigoni | Head Sales China & Japan
Slide 26: Medartis success factors
Medartis success factors Accelerating global roll-out and Disciplined capital management and Entrepreneurial and experienced momentum strong financial profile management team Fully-fledged organization under one roof Intensive collaboration with key Swiss-made products at competitive medical profess
Slide 27: Consolidated balance sheet
Consolidated balance sheet Appendix Medartis 2018 Full-Year Results 27
Slide 28: Consolidated balance sheet
Consolidated balance sheet Appendix Medartis 2018 Full-Year Results 28