Medistim ASA First Quarter Kari E. Krogstad, President and CEO Thomas Jakobsen, CFO April 26th, 2018

Transcription

1 Medistim ASA First Quarter 2018 Kari E. Krgstad, President and CEO Thmas Jakbsen, CFO April 26th, 2018

2 2 Disclaimer The infrmatin included in this Presentatin cntains certain frward-lking statements that address activities, events r develpments that Medistim ASA ( the Cmpany ) expects, prjects, believes r anticipates will r may ccur in the future. These statements are based n varius assumptins made by the Cmpany, which are beynd its cntrl and are subject t certain additinal risks and uncertainties. The Cmpany is subject t a large number f risk factrs including but nt limited t ecnmic and market cnditins in the gegraphic areas and markets where Medistim is r will be perating, IP risks, clinical develpment risks, regulatry risks, fluctuatins in currency exchange rates, and changes in gvernmental regulatins. Fr a further descriptin f ther relevant risk factrs we refer t Medistim s Annual Reprt fr As a result f these and ther risk factrs, actual events and ur actual results may differ materially frm thse indicated in r implied by such frward-lking statements. The reservatin is als made that inaccuracies r mistakes may ccur in this infrmatin given abve abut current status f the Cmpany r its business. Any reliance n the infrmatin abve is at the risk f the reader, and Medistim disclaims any an all liability in this respect.

3 3 Table f cntents 1. Highlights first quarter 2. Financial statements 3. Business segments update 4. Implementing the strategy

4 1. Highlights 1st quarter

5 5 Highlights 1st quarter 2018 Fllwing tw cnsecutive all-time high quarters, Q1 shws flat develpment in sales cmpared t last year Currency neutral ttal sales dwn 1 % Currency neutral sales f wn prducts dwn 2.7 % US sales up 1 % in USD, dwn 6.3 % in NOK Number f prcedures in the USA up 5.7 % Q Revenue MNOK 74.1 (74.4) EBIT MNOK 13.6 (16.0) Q Q -0.3% % EBIT dwn MNOK 2.4 t MNOK 13.6, a 15.3 % decrease Currency -0.4 % MiraQ received an updated recmmendatin by UK s NICE Data cllectin in the REQUEST study is cmplete and the first results will be presented at AATS n May 1st The general meeting decided a dividend f NOK 2.00 per share (NOK 1.75) N fcapital units sld: Flw systems 25 Imaging systems 14 Flw prbes Imaging prbes 10 Prcedures (USA) % 16.7 % % % 5.7 %

6 2. Financial statements

7 7 Prfit and lss Q Prfit & lss Q Q All numbers in NOK 1000 Sales Cst f gds sld Salary and ssial expenses Other perating expenses Ttal perating expenses Op. res. Befre depr. and write-ffs (EBITDA) EBITDA % 22,4 % 25,8 % Q3 14 Sales per Quarter (TNOK) Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 Q Depreciatin Operating result (EBIT) EBIT per Quarter (TNOK) EBIT % 18,3 % 21,6 % Financial incme Financial expenses Net finance (1 279) 383 Pre tax prfit Tax Result Q3 14 Q1 15 Q3 15 Q1 16 Q3 16 Q1 17 Q3 17 Q ,00% 25,00% 20,00% 15,00% 10,00% 5,00% 0,00%

8 8 Balance sheet - Assets Balance sheet All numbers in NOK 1000 Assets Intangible assets Fixed assets Ttal intangible and fixed assets Inventry Custmers receivables Other receivables Cash Ttal current assets Ttal assets Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Intangible assets Fixed assets Inventry Accunts receivable Other assets Cash Wrking capital cntinues t be high, related t: MiraQ prduct line intrductin while maintaining the VeriQ/VeriQC prducts with last-time-buy f cmpnents Securing safety level f critical cmpnents

9 9 Balance sheet - Equity and liability Balance sheet All numbers in NOK 1000 Share capital Premium fund Other equity Ttal equity Ttal lng term debt Ttal shrt term debt Ttal equity and liability Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Share capital Premium fund Other equity Lng term debt Shrt term debt 13.7 MNOK in interest bearing debt The general meeting decided a dividend f NOK 2,00 per share Ttal dividend payment will be MNOK 36.4 Dividend will be paid arund 8 th f May

10 3. Business segments update

11 11 Flw prbes and systems in units Flw prbes in units (excl USA) Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q Flw systems in units (VeriQ & MiraQ capital sales) Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Eurpe US ROW Asia 18.2% decrease in flw prbe number f units Prductin capacity issues are slved 8.7 % increase in flw system in number f units Strng quarter fr Asia; 12 systems vs 6 last year Sme build up f security stck in in sme distributr markets in Q4

12 12 Imaging prbes and systems in units Imaging prbes in units (incl USA) Imaging systems in units (VeriQC & MiraQ capital sales) Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Imaging prbes US imaging prbes Q1 16Q2 16Q3 16Q4 16Q1 17Q2 17Q3 17Q4 17Q1 18 ROW Eurpe Asia US Weak quarter after three cnsecutive strng quarters 16.7 % increase in imaging systems number f units Gd quarter with grwth in number f systems sld in all regins

13 13 Q1 revenue perfrmance by regin Mill NOK Q1 '18 Q1 '17 Q / Q 2017 Eurpe 40,2 36,2 11,1 % 150,3 USA 23,0 24,5-6,3 % 104,6 Asia & Jp 8,5 9,6-12,2 % 27,0 ROW (MEA, CAN, SA, AUS) 2,4 4,0-39,0 % 19,6 Ttal 74,1 74,4-0,3 % 301,5 In Eurpe, sales increased with 11.1 % in Q1. Own prducts increased with 17.2 % f which 7.2 % was due t favurable currency. 3. party prducts increased with 4.9 %. In the USA, sales in NOK decreased with 6.3 % but currency neutral grwth was 1.0 %. Bth Asia/Japan and ROW are s far smaller sales territries with significant quarter t quarter variatin. Negative currency effects fr 2018 vs 2017 was 0.4 MNOK. Average actual exchange rate fr USD 7.83 and EUR 9.63 versus last year USD 8.44 and EUR 8.98.

14 14 Q1 revenue perfrmance by prduct Mill NOK Q1 '18 Q1 '17 Q/Q 2017 Prcedures (USA) 19,6 21,5-8,9 % 86,0 Flw prbes 20,5 20,9-2,1 % 78,9 Flw systems (VeriQ & MiraQ) 6,7 4,7 41,5 % 23,3 Imaging systems (VeriQ C & MiraQ) 7,3 6,9 5,6 % 32,0 Imaging prbes 0,6 0,7-19,3 % 4,2 3rd party 18,7 17,9 4,9 % 71,7 Other 0,8 1,7-55,4 % 5,4 Ttal revenues 74,1 74,4-0,3 % 301,5 Prcedure sale in the USA: The ttal number f prcedures increased with 5.7 % in Q1. Decline in NOK is due t currency and lwer revenue per prcedure due t prduct mix. Flw prbes: 18.2 % decrease in units. Decrease in NOK is nly 2.1 % due t higher level f direct sales and currency. Flw systems: 8.7 % increase in units, the strng 41% grwth in NOK is driven by higher level f direct sales and currency. Imaging systems and prbes: Same sales level as last year. 3 rd party prducts: Gd quarter with a 4.9 % increase.

15 4. Implementing the strategy

16 16 Grwth pprtunities in develping Medistim markets Emerging, high-grwth ecnmies (e.g. bric) 4 1. Cnvert the rutine Flw market t a Flw-and- Imaging market by establishing Surgical Guidance and Quality Assessment as the new standard f care thrugh Early adpter & KOL supprt REQUEST study Ease cnversin frm flw t imaging with MiraQ Develping Medistim markets (e.g. USA, UK, Fra) Strng Medistim markets (e.g. Jp, Nrdic, Germany) >50% CABG share Achieve rutine use f bth Flw and Imaging by fighting ignrance, indifference and ease-f-use bjectins thrugh Clinical marketing, Guidelines and Educatinal prgrams Prduct innvatin fr ease f use Increased sales frce capacaity 3. Build and strengthen psitin in vascular surgery GEOGRAPHIES APPLICATION AREAS CABG surgery (2 BNOK) Vascular surgery (>1 BNOK) Other pen heart surgery (1 BNOK) Dedicated system (MiraQ Vascular) & prbes Build psitin with scieties and KOLs 4. Offer an entry-level slutin t reach emerging, pricesensitive, high-grwth markets

17 17 Perfrmance US sales rganizatin RESULTS Q1 Revenues up 1 % in USD Revenues dwn 6.3 % in NOK Currency has a negative 7.2 % impact Number f prcedures up by 5.7 % 4.5 % grwth in flw prcedures 14.0 % grwth in imaging prcedures Revenue per prcedure dwn abut 7 % frm LY due t prduct mix Number f prcedures per year # f Prcedures per Cnsecutive Quarter Capital revenues were MNOK 3.4 vs. MNOK 3 last year, a 12 % increase Cntinued grwth in new custmers 7 cmpletely new accunts Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q

18 18 Renewed recmmendatin frm NICE The Natinal Institute fr Health and Care Excellence (NICE) have issued a renewed Medical Technlgies Guidance recmmending the rutine use f Medistim s flwmeter system fr CABG surgery within the UK s Natinal Health Service Bth the clinical and ecnmical benefits f MiraQ utilizatin were recgnized: [ ] intraperative TTFM is effective in detecting imperfectins that may be crrected [ ]. This may reduce the incidence f graft cclusins and [ ] periperative mrbidity and mrtality. The MiraQ system is assciated with an estimated cst saving f 141 per patient (up frm previus guideline f 115) cmpared with clinical assessment alne NICE is higly respected and their recmmendatins have impact als utside the UK

19 19 Grwth pprtunities in develped Medistim markets Emerging, high-grwth ecnmies (e.g. bric) 4 1. Cnvert the rutine Flw market t a Flw-and- Imaging market by establishing Surgical Guidance and Quality Assessment as the new standard f care thrugh Early adpter & KOL supprt REQUEST study Ease cnversin frm flw t imaging with MiraQ Develping Medistim markets (e.g. USA, UK, Fra) Strng Medistim markets (e.g. Jp, Nrdic, Germany) >50% CABG share Achieve rutine use f bth Flw and Imaging by fighting ignrance, indifference and ease-f-use bjectins thrugh Clinical marketing, Guidelines & Educatinal prgrams Prduct innvatin fr ease f use Increased sales frce capacaity 3. Build and strengthen psitin in vascular surgery GEOGRAPHIES APPLICATION AREAS CABG surgery (2 BNOK) Vascular surgery (>1 BNOK) Other pen heart surgery (1 BNOK) Dedicated system (MiraQ Vascular) & prbes Build psitin with scieties and KOLs 4. Offer an entry-level slutin t reach emerging, pricesensitive, high-grwth markets

20 20 What is the study prtcl? Perfrm ultrasund imaging f the arta, cnduit arteries in situ, cmprmised crnary arteries and cmpleted grafts (anastmsis) Perfrm TTFM n cmpleted grafts The prcedures will be dne with Medistim s devices (VeriQ C and MiraQ ) Why are these data interesting t the surgical cmmunity? The hypthesis mtivating the REQUEST registry study is that emplying a new and unique cmbinatin f functinal flw measurement and mrphlgical ultrasund imaging data may enable surgens t make better infrmed decisins during crnary surgery imprve surgical quality and utcmes cntribute t imprved healthcare efficiency frm this surgical prcedure Recrd all changes t the surgical prcedure and the number f revisins dne t the grafts based n the flw and imaging data The study is the first f its kind t investigate the value f implementing bth TTFM and intraperative ultrasund imaging as a cncerted effrt t prvide surgical guidance and graft quality assessment Capture majr adverse cardiac and cerebrvascular events (MACCE)

21 34 Study bjective Objective: Prspective study f the number and type f CABG surgical prcedure changes (t artic manipulatin and crnary grafting) based n artic and crnary ultrasund intraperative images and transit time flw measurements (TTFM) with the Medistim device Prtcl: Ethical Apprval published in ClinicalTrials.gv in Feb 2015 Design: Prspective study f 1000 patients (multicenter registry in 7 sites) Patient ppulatin: Islated CABG patients with at least 2 vessel disease Target perid: Feb 2015 Dec 2017

22 36 Surgical prtcl 1) Ultrasund assessment f arta prir t manipulatin Sft plaque in arta LAD with stensis 2) Ultrasund assessment f cnduit arteries in situ and 3) diseased crnaries 4) TTFM graft assessment (Flw, PI, DF, BF) 5) Ultrasund assessment f anastmsis Restricted anastmsis

23 37 Preliminary findings presented at ICC, New Yrk, August 19th changes in the surgical prcedure in 203 f 776 patients 26% f patients had at least 1 surgical change ICC = Internatinal Crnary Cnference

24 24 Presentatin f the first findings frm the REQUEST register study All patients are nw included in the study The first findings frm the study will be presented at American Assciatin fr Thracic Surgery (AATS) cnference taking place in San Dieg n May 1 st The REQUEST data will be cntinued t be analysed, presented and published The findings frm REQUEST may becme a significant cntributr t changing clinical practice within CABG surgery

25 25 20 largest sharehlders (per April 20th 2018) Name Number f shares Shares in % Natinality INTERTRADE SHIPPING ,83 NOR SALVESEN & THAMS INV ,16 NOR JPMrgan Chase Bank, NORDEA TREATY ACCOUN ,50 GBR FOLLUM CAPITAL AS ,45 NOR Skandinaviska Enskil A/C CLIENTS ACCOUNT ,36 DNK PROTECTOR FORSIKRING Aksjer ,28 NOR Citibank Eurpe plc S/A SEB SA UCITS ,85 LUX BUANES ASBJØRN JOHN ,70 NOR GRANDEUR PEAK INTERN BROWN BROTHERS HARRI ,29 USA HOLBERG NORGE VERDIPAPIRFONDET V/HOLBERG FONDSFORVA ,17 NOR DYVI INVEST AS ,89 NOR RBC Investr service S/A LUX SCV-EXEMPT-U ,80 LUX Danske Bank A/S 3993 NORDIC SETTLEME ,55 DNK State Street Bank an SSB LUX OBO ITS CLIE ,44 USA Danske Invest Nrge ,36 NOR BNP Paribas Securiti BPSS MLN/PENSION FUN ,27 ITA REGENTS OF THE UNIVE The Bank f New Yrk ,25 USA Skandinaviska Enskil SEB AB, UCITS V - Sw ,19 SWE NN PARAPLUFONDS 1 N. BNY MELLON SA/NV ,12 NLD Bank Julius Bär & C ,09 CHE Ttal Largest sharehlders Ttal number f shares utstanding largest sharehlders in % f ttal number f shares 79,57 %

26 26 Seeing is believing