Photocure ASA · OSL:PHO
Photocure ASA — Q2 2018 Earnings Presentation
23 slides from Photocure ASA's earnings presentation, Aug 8, 2018
Slide 1: Photocure ASA Results for Second Quarter and First Half Year 2018
PHOTOCURE ASA RESULTS FOR SECOND QUARTER AND FIRST HALF YEAR 2018 8 August 2018 Erik Dahl, CFO and Interim CEO Ambaw Bellete, President, Photocure Inc. and Head, US Cancer Commercial Operations
Slide 2: Disclaimer
DISCLAIMER By reading this company presentation (the “Presentation”), or attending any meeting or oral presentation held in relation thereto, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been produced by Photocure (the “Company”) fo
Slide 3: Delivering on Key 2018 Objectives
DELIVERING ON KEY 2018 OBJECTIVES • Q2 US sales revenue up 56% in local currency YOY, driven by in-market volume increase in Q2 of 49%. YTD revenue growth in local currency 47% Significant growth of Cysview® in • 37% growth YOY in installed blue light enabled cystoscopes for rigid use in US TURBT ma
Slide 4: Strategic Focus on Transforming Bladder Cancer Management
STRATEGIC FOCUS ON TRANSFORMING BLADDER CANCER MANAGEMENT CORE PRODUCT ON MARKET: EVALUATE NEW CORE PRODUCTS: Complementary, NON-CORE PIPELINE PRODUCTS: within bladder cancer Visonac® (Acne treatment) Strategic focus on bladder cancer detection & management core Cevira® (Cervical disease treatment)
Slide 5: Hexvix/Cysview Update
Hexvix/Cysview Update = ——
Slide 6: Cysview Continued Strong Momentum in US
CYSVIEW CONTINUED STRONG MOMENTUM IN US • Strong U.S. Cysview sales revenue growth in 2Q up 56% driven by in-market volume growth • Year to date U.S. revenues increased 47% and unit growth of 39% year to date • 37% YoY increase Permanent Blue Light Cystoscope placements finishing with 130 installed
Slide 7: US Launch of Cysview in Surveillance Presents a Large Market Opportunity
US LAUNCH OF CYSVIEW IN SURVEILLANCE OF BLADDER CANCER PATIENTS PRESENTS A LARGE MARKET OPPORTUNITY • BLC with Cysview launch strategy is focused on the accounts that participated in the BL Flex trial, current existing BL enabled accounts and the top large Urology groups in the US in the top MSA’s •
Slide 8: Bladder Cancer Market for BLC with Cysview
BLADDER CANCER MARKET FOR BLC™ WITH CYSVIEW Bladder cancer management algorithm initial Surveillance & TURBT & follow-up Boxes with BLUE outline Symptoms Current setting utilizes • Hematuria (blood in urine) • Urinary frequency or urgency Suspicion for Recurrence BLC with Cysview • Dysuria (pain, di
Slide 9: Blue Light Cystoscopy with Cysview: New Standard of Care for Bladder Cancer
BLUE LIGHT CYSTOSCOPY WITH CYSVIEW New Standard of Care for Bladder Cancer Over 100 hospitals and institutions and counting! BLC with Cysview – A New Standard of Care in 62% of NCCN Designated Cancer Centers BLC with Cysview is in 36 of the NCI Designated Cancer Centers BLCC- A New Standard of Care
Slide 10: Bladder Cancer Patient Survey Shows Sustained Patient Demand
BLADDER CANCER PATIENT SURVEY SHOWS SUSTAINED PATIENT DEMAND FOR BLC WITH CYSVIEW* January 2018 January 2017 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage of patients received BLC with Cysview +8pp Percentage of patients where BLC with Cysview helped in managing their cancer +7pp Percentage
Slide 11: Cysview Significant Growth Opportunity with New US Label
CYSVIEW SIGNIFICANT GROWTH OPPORTUNITY WITH NEW US LABEL • Significant market penetration of BLC with Cysview BLC with Total Number Number of Market in the TURBT market has been achieved in In the Cysview of Cystoscopy Procedures potential in top 10 MSA’s: New York , Los Angeles, Chicago and Market
Slide 12: Cysview Push & Pull Strategies
CYSVIEW PUSH & PULL STRATEGIES Approval and Launch in surveillance market Received reimbursement code in US Increase US market penetration Increase investment in US M&S Drive continued growth in the US in both the TURBT and successfully launch in the surveillance market 12
Slide 13: Hexvix Nordic Update
HEXVIX NORDIC UPDATE • Photocure own sales revenue in the Nordics increased YTD 7% to NOK 22.9 million (NOK 21.4 million). In constant currencies, the increase was 5% • Second quarter revenue declined 8% YOY driven by inventory reductions at distributors following the inventory increase in the first
Slide 14: Hexvix/Cysview Partner Update
HEXVIX/CYSVIEW PARTNER UPDATE • Partner revenue declined 3% YTD (proforma In-market unit sales (by Q) 2017). Second quarter decline of 1% (proforma 2017) 12 000 – Due to implementation of IFRS 15 impact from 10 000 inventory increase/reduction at partner is eliminated 8 000 • In-market unit sales de
Slide 15: Financials
Financials — ae
Slide 16: Segment Performance - Proforma Second Quarter 2018
SEGMENT PERFORMANCE - PROFORMA SECOND QUARTER 2018 PF PF Commercial Franchise MNOK Q2 '18 Q2 '17 YTD '18 YTD '17 • Strong revenue growth in US, second quarter growth in constant currency 56%, YTD 47% Commercial Franchise Nordic revenues 10.8 11.7 22.9 21.4 • Steady progress in Nordic, YTD revenue gr
Slide 17: Consolidated Income Statement - Proforma Second Quarter 2018
CONSOLIDATED INCOME STATEMENT - PROFORMA SECOND QUARTER 2018 PF PF • Recurring EBITDA improved from last year MNOK Q2 '18 Q2 '17 YTD '18 YTD '17 second quarter and YTD – Increased revenue driven by US Hexvix / Cysview revenues 42.4 38.4 83.1 74.8 Other revenues 3.2 2.6 4.1 3.4 – Increased sales & ma
Slide 18: Cash Flow Second Quarter 2018
CASH FLOW SECOND QUARTER 2018 • Cash flow from operations second quarter MNOK Q2 '18 Q2 '17 YTD '18 YTD '17 FY '17 at NOK -11.5 million, an improvement from Cash flow from: second quarter 2017 and first quarter 2018 - Operations -11.5 -16.9 -30.0 -27.7 -23.6 • Cash flow from investments YTD NOK -0.9
Slide 19: Balance Sheet 30 June 2018
BALANCE SHEET 30 JUNE 2018 MNOK 30.06 31.12 30.06 • Non current assets include NOK 30.2 million in 2018 2017 2017 investments in tangible and intangible assets and Non-current assets 87.5 87.5 78.3 deferred tax asset of NOK 56.0 million Inventory & receivables 54.0 46.2 54.0 Cash & equivalents 97.9
Slide 20: Summary and Outlook
Summary and Outlook — ——
Slide 21: Delivering on Key 2018 Objectives
DELIVERING ON KEY 2018 OBJECTIVES • Q2 US sales revenue up 56% in local currency YOY, driven by in-market volume increase in Q2 of 49%. YTD revenue growth in local currency 47% Significant growth of Cysview® in • 37% growth YOY in installed blue light enabled cystoscopes for rigid use in US TURBT ma
Slide 22: Attachments
Attachments —_— a
Slide 23: Income Statement Second Quarter Reported
INCOME STATEMENT SECOND QUARTER REPORTED Income Statement - Segment Income Statement - Consolidated MNOK Q2 '18 Q2 '17 YTD '18 YTD '17 MNOK Q2 '18 Q2 '17 YTD '18 YTD '17 Commercial Franchise Hexvix / Cysview revenues 42.4 37.6 83.1 74.1 Nordic revenues 10.8 11.7 22.9 21.4 Other revenues 3.2 1.7 4.1