Photocure ASA · OSL:PHO
Photocure ASA — Q4 2018 Earnings Presentation
22 slides from Photocure ASA's earnings presentation, Feb 27, 2019
Slide 1: Results for Fourth Quarter and Full Year 2018
PHOTOCURE ASA RESULTS FOR FOURTH QUARTER AND FULL YEAR 2018 27 February 2019 Daniel Schneider, President and CEO Erik Dahl, CFO
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 • Q4 revenue growth in US$ 76%, full year 53%, driven by in-market volume increase in Q4 of 69%, full year 45% Significant growth of Cysview® in • 51% growth YOY in installed blue light enabled cystoscopes in market to 157 by US TURBT market end of year, including 8
Slide 4: Strategic Focus on Transforming Bladder Cancer Detection and Management
STRATEGIC FOCUS ON TRANSFORMING BLADDER CANCER DETECTION AND MANAGEMENT Profitable Hexvix®/Cysview® ~$35M global in-market sales* (FY’18) commercial franchise Over 500k patients treated with Hexvix® / Cysview® worldwide Strong Unique and complex drug-device procedure competitive position Leading reg
Slide 5: Hexvix/Cysview Update
Hexvix/Cysview Update = ——
Slide 6: Non-Muscle Invasive Bladder Cancer: Common with High Recurrence and Disease Burden
NON-MUSCLE INVASIVE BLADDER CANCER IS ONE OF THE MOST COMMON CANCERS WITH SIGNIFICANT RECURRENCE RATE AND HIGH DISEASE BURDEN ~650K ~2.2M surgical procedures surveillance cystoscopies annually in USA and EU annually in USA and EU Tumor as seen through 50% 10% – 30% a cystoscope disease recurrence di
Slide 7: Expanding into Flex Is One of Our Big Next Steps
EXPANDING INTO FLEX IS ONE OF OUR BIG NEXT STEPS The flexible surveillance market is approximately 3X bigger than the rigid TURBT market ~650K TURBT surgical procedures annually in USA and EU Surgical Cystoscopy Hexvix® / Cysview® opportunity: ~2.2M Operating Room TURBT and flexible Surveillance Cys
Slide 8: Hexvix/Cysview Is a Transformative Solution for Bladder Cancer Patients
HEXVIX® / CYSVIEW® IS A TRANSFORMATIVE SOLUTION TO IMPROVE THE LIVES OF PATIENTS WITH BLADDER CANCER WLC BLC with Hexvix® / Cysview® Key benefits Key feature Improve diagnostic Better visual contrast accuracy between benign and malignant cells Achieve optimal surgical results Significant reduction o
Slide 9: 50% Increase in Customer Facing Roles in 2019
50% INCREASE IN CUSTOMER FACING ROLES IN 2019 75% MSA COVERAGE Commercial Role 2016 2017 2018 2019 Surgical Sales Executives 11 15 21 27 Corp Account Mgrs. 0 0 0 4 (LUGPA and IDHN) Total FTEs 11 15 21 31 Total Account Coverage 275 375 525 750+
Slide 10: Increasing Patient Awareness & Demand
INCREASING PATIENT AWARENESS & DEMAND NOV/DEC 2018 MEDIA PROGRAMS: HCP & PATIENT USA Today Nov 29
Slide 11: Patients Want Blue Light Cystoscopy and Cysview
PATIENTS WANT BLUE LIGHT CYSTOSCOPY AND CYSVIEW® Jan. 2016 n=222, Jan. 2017 n=568, Jan. 2018 n=550, Jan. 2019 n=600 1. Survey of self-selected patients completed through the Bladder Cancer Advocacy Network (BCAN) sponsored by Photocure. 11
Slide 12: Cysview to Become the New Standard of Care in the USA
CYSVIEW® TO BECOME THE NEW STANDARD OF CARE FOR THE DETECTION AND MANAGEMENT OF BLADDER CANCER IN THE USA Supportive Strongly recommended by national guidelines and expert panels environment New reimbursement (Jan ‘19) for Medicare patients High adoption Established in >140 key cancer hospitals and
Slide 13: Hexvix to Become the New Standard of Care in Europe
HEXVIX® TO BECOME THE NEW STANDARD OF CARE FOR THE DETECTION AND MANAGEMENT OF BLADDER CANCER IN EUROPE Supportive Strongly recommended by European and environment national guidelines as well as expert panels 25% to 70% penetration rate Continued growth 9% revenue growth during full year 2018 in the
Slide 14: Financials
Financials — ae
Slide 15: Segment Performance - Proforma Fourth Quarter 2018
SEGMENT PERFORMANCE - PROFORMA FOURTH QUARTER 2018 Prof Prof Commercial Franchise Amounts in NOK million Q4 ’18 Q4 ‘17 Change FY ‘18 FY ‘17 Change • Strong revenue growth in US, fourth Commercial Franchise quarter revenue growth in US$ 76%, full Nordic revenue 13.5 12.9 5% 47.0 43.3 9% year 53% US r
Slide 16: Consolidated Income Statement - Proforma Fourth Quarter 2018
CONSOLIDATED INCOME STATEMENT - PROFORMA FOURTH QUARTER 2018 Prof Prof • Recurring EBITDA significantly improved Amounts in NOK million Q4 ‘18 Q4 ‘17 Change FY ‘18 FY ‘17 Change from last year. Improvement is revenue Hexvix/Cysview revenue 46.3 36.3 28% 172.9 145.6 19% driven while expense growth is
Slide 17: Cash Flow Fourth Quarter 2018
CASH FLOW FOURTH QUARTER 2018 Prof Prof • Cash flow from operations fourth quarter at Amounts in NOK million Q4 ‘18 Q4 ‘17 FY ’18 FY ‘17 NOK 11.2 million, full year NOK -24.1 million Operations cash flow 11.2 7.5 -24.1 -23.6 – Working capital positive in the quarter, main EBITDA, recurring -4.1 -10.
Slide 18: Balance Sheet 31 December 2018
BALANCE SHEET 31 DECEMBER 2018 31.12 31.12. • Investments of NOK 24.6 million in tangible Amounts in NOK million 2018 2017 and intangible assets is driven by Non current assets 77.8 87.5 investments in Cysview phase 3 project Investments 24.6 34.6 Tax asset 52.4 52.9 • Deferred tax asset of NOK 52.4
Slide 19: Summary and Outlook
Summary and Outlook — ——
Slide 20: Outlook
OUTLOOK Growth drivers USA Growth drivers Europe • 50% Larger customer facing commercial team • Strongly recommended by • Target 700 largest reference center hospitals European and national and LUGPAs guidelines • BLC Recommended in AUA & NCCN bladder • Strengthened customer facing cancer treatment
Slide 21: Attachments
Attachments —_— a
Slide 22: Income Statement Fourth Quarter Reported
INCOME STATEMENT FOURTH QUARTER REPORTED Income Statement - Segment Income Statement - Consolidated MNOK Q4 '18 Q4 '17 FY '18 FY '17 MNOK Q4 '18 Q4 '17 FY '18 FY '17 Commercial Franchise Hexvix / Cysview revenues 46.3 39.4 172.9 149.0 Nordic revenues 13.5 12.9 47.0 43.3 Other revenues 3.5 0.0 8.6 1.