Ergomed — H1 2022 Earnings Presentation
28 slides from Ergomed's earnings presentation, Sep 27, 2022
Slide 1: Global Reach, Global Growth: Interim Results Presentation 2022
Global Reach, Global Growth Interim Results Presentation 2022 6 months to 30th June 2022 27th September 2022
Slide 2: Disclaimer
Disclaimer The information contained in this presentation (“Presentation”) has been prepared by Ergomed plc (the “Company”) for discussion purposes only and is not intended for any other use. The Presentation is being made only to, and is only directed at, persons to whom it may lawfully be communic
Slide 3: Presentation Agenda
Presentation Agenda Introduction & Overview Dr Miroslav Reljanović, Executive Chairman Financial Review Richard Barfield, Chief Financial Officer Market Overview & Strategic Developments Keith Byrne, SVP Capital Markets & Strategy Summary & Outlook Dr Miroslav Reljanović, Executive Chairman 3 www.er
Slide 4: Introduction & Overview
Introduction & Overview Dr Miroslav Reljanović Financial Global Reach Global Growth
Slide 5: Ergomed PLC at a glance
Ergomed PLC at a glance H1 2022 Our Vision Geographic revenue split 5% Global leadership in specialised 32% pharmaceutical services addressing 63% unmet medical needs and patient safety. 1,400 employees A global platform with AIM market listed 20%+ revenue 9 acquisitions and 400 contract 25 offices
Slide 6: Specialised Pharmaceutical Services
Specialised Pharmaceutical Services World-class expertise in drug development and drug safety across two platforms Clinical Research Organisation (‘CRO’) Pharmacovigilance (‘PV’) • Leading mid-tier CRO with a platform across the US, • Leading independent PV business providing drug safety UK, Europe
Slide 7: Strong Track Record Of Growth
Strong Track Record Of Growth Driven by organic growth, supplemented by strategic acquisitions £118.6m Revenue CAGR 20%+ £21.2m 2014 2015 2016 2017 2018 2019 2020 2021 Gross Profit Margin Adjusted EBITDA 40.8% £25.4m 27.2% £2.8m 2021 2021 2014 2014 7 www.ergomedplc.com
Slide 8: Acquisition of ADAMAS
Acquisition of Acquired in February 2022 Summary Update • Complementary specialism in regulatory compliance • Acquired for £24.2m cash and quality assurance consulting services • Trading in line with expectations since acquisition • Expanded US, Europe and APAC presence to support • Operational inte
Slide 9: H1 2022 Overview Summary
H1 2022 Overview 20 21 Summary Excellent Financial Strategic Financial Our Group Performance Execution Position People Outlook Service Fee Revenue Strategic focus on Debt-free balance Strengthened our Proven robust growth: +25.6% specialist sheet with cash of leadership across the business model pha
Slide 10: Financial Review
Financial Review Richard Barfield Global Reach Global Growth
Slide 11: H1 2022 Financial Highlights
H1 2022 Financial Highlights Continued strong financial performance in H1 2022 +24.8% +25.6% 23.0% £12.0m +24.9% vs H1 2021 vs H1 2021 vs. H1 2021 Total Revenue Service Fee Adj. EBITDA Cash Contracted Revenue of Service Fee Revenue after the £24.2m cash Order Book acquisition of ADAMAS in February 2
Slide 12: Ergomed Group – H1 2022 Financial Review
Ergomed Group – H1 2022 Financial Review Service Fee Revenue (£m) Gross Profit (£m) +26% +26% H1 2021 H1 2022 Growth % £m 59.8 28.9 47.6 23.0 Total Revenue 56.0 69.9 +24.8%* Service Fee Revenue 47.6 59.8 +25.6% H1 2021 H1 2022 H1 2021 H1 2022 Gross Profit 23.0 28.9 +25.7% Gross Margin % 41.1% 41.4%
Slide 13: Ergomed CRO – H1 2022 Financial Review
Ergomed CRO – H1 2022 Financial Review of H1 2022 Service Fee Revenue (£m) Gross Profit (£m) 49% total Group revenue +29% +27% H1 2021 H1 2022 Growth % £m 24.5 10.6 19.0 8.4 Total Revenue 27.2 34.3 +26.2%* Pass-Through 8.2 9.8 +19.4% H1 2021 H1 2022 H1 2021 H1 2022 Service Fee Revenue 19.0 24.5 +29.
Slide 14: PrimeVigilance – H1 2022 Financial Review
PrimeVigilance – H1 2022 Financial Review of H1 2022 Service Fee Revenue (£m) Gross Profit (£m) 51% total Group revenue +23% +25% H1 2021 H1 2022 Growth % £m 35.3 18.3 28.7 14.7 Total Revenue 28.8 35.6 +23.4%* H1 2021 H1 2022 H1 2021 H1 2022 Service Fee Revenue 28.7 35.3 +23.2% Gross Profit 14.7 18.
Slide 15: H1 2022 Sales and Order Book
H1 2022 Sales and Order Book Excellent visibility and platform for growth Contracted Order Book Growth Further visibility from PV renewals £284.5m +19% +5% £239.7m £284.5m £227.8m 30 June 2021 31 December 2021 30 June 2022* Contracted Order book does not include contract The value of all future cont
Slide 16: Strong Operating Cash Flow Conversion
Strong Operating Cash Flow Conversion Strong cash flow £80m Debt Facility £12.0m Cash generation (increased from £30m) £ million Opening Operating Working Tax & Acquisitions Lease Capex FX Closing Cash Cashflow Capital Interest Liabilities Cash 16 www.ergomedplc.com
Slide 17: Market Overview & Strategic Developments
Market Overview & Strategic Developments Keith Byrne Global Reach Global Growth
Slide 18: Market Overview
Market Overview Strong market fundamentals with Ergomed focused on high growth sectors Through its platforms, Ergomed operates in Oncology CRO Rare disease attractive and high growth end-markets c. $15bn (non-oncology) CRO c. 10% p.a. growth c. $5bn (2020 - 2026) c. 10%+ p.a. growth Strong market fu
Slide 19: CRO Market Opportunity
CRO Market Opportunity Leading mid-tier market position in a growing market, well positioned for consolidation Large CROs Mid-Tier CROs COMPETING • $1bn+ CRO revenue • $100m+ CRO revenue • Global public companies • Global (Excluding Asia) • 10,000+ employees • 1,000+ employees • Big pharma oriented
Slide 20: Strong M&A track record
Strong M&A track record The Group has completed 9 acquisitions since IPO and 2015 has considerable capacity for further strategic and disciplined M&A, complementing the Group’s strong organic growth profile 2016 £12.0m cash £80m debt facilities 2017 Ashfield PV acquired for $10m. Immediately integra
Slide 21: CRO - Continued Strategic Execution
CRO - Continued Strategic Execution CRO – New Business Mix H1 2022 Established in 1997, celebrating a 25 year track record 6% 5% Continued strategic focus on oncology and rare diseases 19% Rare Disease Innovation Centre established 70% Continued US expansion and new entities established across vario
Slide 22: PV - Continued Strategic Momentum
PV - Continued Strategic Momentum Excellent client retention and renewal rates providing Revenues by customer cohort (£m)* increased revenue visibility Millions 60 50 35+ new clients onboarded over the last 12 months 40 Continued expansion of global reach across the US, 30 EU and Asia 20 Further dep
Slide 23: Digital and Technology Progress
Digital and Technology Progress Ergomed CRO PrimeVigilance Integration with PV systems to leverage data and drive cross-selling Accelerate business growth by leveraging digital capabilities and data Ongoing systems integration to drive optimal user experience for Increase productivity, quality and s
Slide 24: Focus on Sustainability
Focus on Sustainability Sustainability Highlights Ergomed plays a key role in improving patient health and well-being through supporting the safe development and Diverse workforce, with 78% women across 25 monitoring of medicines culturally diverse offices, and 72% of managerial roles held by women.
Slide 25: Summary
Summary Dr Miroslav Reljanović Dr Miroslav Reljanović Global Reach Global Growth
Slide 26: Summary & Investment Case
Summary & Investment Case Strong H1 Financial Performance Strong Order Book & Visibility Robust financial position to support Continued strong revenue and £284.5m of contracted future continued growth profit growth in H1 2022 revenues (+24.9% growth vs H1 2021) £80m of available debt facilities Unde
Slide 27: www.ergomedplc.com
ERGGMED 27 www.ergomedplc.com ERGGM ED
Slide 28: 25+ years of continued growth, development and strategic execution
25+ years of continued growth, development and strategic execution ADAMAS Consulting Ergomed plc IPO on PharmInvent acquired Ashfield Pharmacovigilance Group Limited Ergomed founded London Stock Exchange O+P, GASD acquired Inc. acquired acquired 1997 2014 2016 2020 2022 2022 2008 2015 2017 2020 Prim