Report on operations for the first half year 2009

Transcription

1 Report on operations for the first half year 2009 Fertility Transplantation Stemcells cultivation Strong growth in sales and profits together with increased investments in R&D and markets July 15, 2009 Magnus Nilsson, CEO Eva Nilsagård, CFO

2 Agenda Company background/history Summary of first half year 2009 Markets Product /therapy areas Key Figures Outlook

3 Vitrolife a global life science company A global life science company (Bio- Med Tech). Developing, manufacturing and selling nutrient solutions (media) and instruments for fertility treatments and lung transplantations. Growing and profitable business founded in Approx 160 employees. Main sites in Gothenburg and Denver and sales offices in Beijing, Tokyo, Milan, Melbourne and Bayonne. Sales in more than 85 countries. Listed on the OMX Nordic Exchange s Nordic Small Cap list since

4 Our Vision Vitrolife strives to be the leading supplier of media and other advanced disposables, used by hospitals and laboratories performing fertility treatment and other therapies where cells or tissues are used or are a part of the therapy. 4

5 History of Innovations New technique - follicle aspiration needle with ultrasound probe ICSI Medium Pharmaceutical -grade media IVF -50 First sequential media G1 / G2 v. 2 Beyond HSA Recombinant media r-s1 / r-s2 Closer to Nature GIII Series v High performance Easy-to-use New G5 Series - Culture embryos in a more protective environment EmbryoGlue Implantation promoting medium GIII Series CE marked New ICSI solution with recombinant human albumin Acquisition of SWEMED lab Ultrarapid vitrification Unique aspiration needle SWEMED Sense

6 Agenda Company background/history Summary of first half year 2009 Markets Product /therapy areas Key Figures Outlook

7 Highlights of Q Sales Q2 +24%, H1 +23% Increased investment in R&D and marketing Fertility: Strong development in Asia, Europe and Middle East Transplantation: Positive progress for the clinical study in Canada for STEEN Solution Successfull start up of the new offices in Asia Dividend 0.40 SEK/share paid out 24 quarters of continuous operating profits 26 quarters in a row with better sales than previous year 7

8 Key Financials Q2 & H1: Investing in growth Sales growth Q2: +24% to 70.2 SEKm Currency-adjusted sales growth +6% Sales growth H1: +23% to SEKm Currency-adjusted sales growth +5% SEKm OMM Gross margin Q2: 71% (70) Gross Result 50.0 MSEK, +27% Gross margin H1: 69% (69) Gross Result 99.2 MSEK, +25% Operating result Q2: 7.8 SEKm, +30% Operating result H1*) : 20.5 SEKm, +24% Operating result bef R&D Q2: 7.8 SEKm, +38% Operating result bef R&D H1*): 39.9 SEKm, +25% *) Adjusted for extra ordinary items such as costs for the MediCult a/s offer and costs related to move during 2008 NUM NSM NQM NOM NMM UM SM QM OM M OMMR=nN OMMR=nO Investing in growth OMMR=nP OMMR=nQ OMMS=nN OMMS=nO OMMS=nP OMMS=nQ OMMT=nN OMMT=nO OMMT=nP OMMT=nQ OMMU=nN OMMU=nO OMMU=nP OMMU=nQ OMMV=nN OMMV=nO dêçëë=fååçãé lééê~íáåö=fååçãé=äéñçêé=oca b_fqa^ lééê~íáåö=fååçãé fååçãé=~ñíéê=ñáå~ååá~ä=áíéãë 8

9 Key financials Q2 & H1: Sustainable profit & Cash flow Net income Q2: 7.4 SEKm, +22% Net income H1*): 19.9 SEKm, +38% Minority interest is for ATS in Italy is included with -0,2 SEKm (-0,3) SEK thousands Cash flow from the operating activities for Q2: 12.2 SEKm (14.6) Cash flow from the operating activities for H1: 9.0 SEKm (21.3) Investment activities H1 : 0 A further 10% of ATS acquired with amounting 1 SEKm Investment in new production facility Dividend paid in Q2: 7.8 SEKm Amortization of loans in Q2: 2.1 SEKm Acc cash flow from operating activities Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q

10 Agenda Company background/history Summary of first half year 2009 Markets Product /therapy areas Key Figures Outlook

11 Vitrolife Reaching the global market New offices in China and Japan 11

12 Sales by region rolling 12 months 12

13 Sales and growth rate by region 1.1 million cycles performed world wide per year 13

14 Agenda Company background/history Summary of first half year 2009 Markets Product /therapy areas Key Figures Outlook

15 Fertility H1 & Q FERTILITY Sales Q2: 60.9 SEKm, +24%. Currency-adjusted sales growth +7%. Sales H1: SEKm, +21%. Currency-adjusted sales growth +4%. Europe/Middle East H1:+20%. Strong second quarter for UK, Italy, France and Denmark SEKm 220 RoW H1: +16% China +24% Japan +26% Americas H1: +32% (USD +2%) Q2: +41% (USD +6%)

16 Product portfolio development FERTILITY Strategy: Portfolio expansionthrough R&D and acquisitions to optimize market synergies: New generation culture medium Cryopreservation New generation Instruments Target: Increase product offering value per cycle with 50% 16

17 Fertility 2009 Focus Areas FERTILITY Continued strong focus on main strategy Market Synergies Establish direct sales in more markets Exploit market synergies of broad product portfolio Increased marketing and customer support efforts in rapidly growing Asian markets. Infrastructural synergies Increase gross margin through a more efficient production and logistics 17

18 Transplantation Q2 & H TRANSPLANTATION Sales Q2: 9.0 SEKm, +27%. Currency-adjusted sales growth +1%. Sales H1: 18.8 SEKm, +43%. Currency-adjusted sales growth +14% 25 successful lung transplantations performed globally SEKm 40 USDm Total Transplantation 500 Approx 60% of the sales is in the US Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 18

19 Vitrolife STEEN Solution TM TRANSPLANTATION Problem STEEN Solution Advantage >70% of donated organs are not used Functional testing More organs can be used Too few organs to transplant Short of time, a maximum of 8-12 hours outside the body Large number of potential donors (including donation after cardiac death) Maximum time >24 hours outside the body More organs available for transplantation More organs can be used in time (lower cost) Patients die while waiting for organs More patients can be provided with new lungs Fewer deaths caused by lack of organs 19

20 Vitrolife STEEN Solution TM TRANSPLANTATION Before STEEN Sol. Costs for products per transplantation (SEK) ca > Potential number of transplantations ca > Market potential*, lungs only (SEK million) ca 35 > 600 * Including research market Approved in Europe 2006, and in Australia The method is also being developed for other organs, e.g. liver. 20

21 STEEN Solution focus TRANSPLANTATION Finish clinical studies in North America and apply for marketing authorization for Steen Solution in the U.S. Clinical results so far very promising. 25 lungtransplantations performed in clinic so far Continue launch of STEEN Solution in Europe by training and education in the STEEN Solution method to get market acceptance Developing of and clinical trials with additional products needed for a lungassessment with Steen Solution. 21

22 Stem Cell Cultivation STEM CELL CULTIVATION Sales amounted to 0.9 MSEK (0.9) Increase focus on development of new clinical grade stem cell media together with our partners. Develop and increase the number of collaborations in product development and marketing. Observe and comply with the technical and market developments. In VitroHES researchers can successfully grow human stem cells and maintain pluri potency 22

23 Agenda Company background/history Summary of first half year 2009 Markets Product /therapy areas Key Figures Outlook

24 Key ratios FINANCIAL INFO April - June January - June Whole Year Gross margin, % 71.3 (69.6) 69.9 (69.3) (69.4) Selling exp/sales, % 28.7 (29.6) 27.8 (27.0) (28.8) Admin-exp/sales, % 14.3 (14.9) 14.3 (14.0) (15.7) R&D-exp/sales, % 15.7 (13.6) 13.6 (13.3) (13.6) Operating margin, % 11.1 (10.6) 11.7 (14.4) (12.0) Adjusted Operating margin, % *) 11.1 (10.6) 14.4 (14.4) (12.0) Operating margin before R&D, % 26.8 (24.1) 25.3 (27.7) (25.6) Adjusted operating margin before R&D, % 26.8 (24.1) 28.1 (27.7) (25.6) EBITDA *) 11.9 (9.2) 28.4 (23.2) (40.1) Net margin, % 10.6 (10.7) 11.2 (12.4) (13.4) Adjusted Net margin, % *) 10.6 (10.7) 14.0 (12.4) (14.4) Earnings per share, SEK 0.38 (0.31) 0.81 (0.73) (1.52) Adjusted Earnings per share, SEK *) 0.38 (0.31) 1.01 (0.73) (1.52) Equity/assets ratio, % 86.9 (82.8) 86.9 (82.8) (85.1) Net Cash, SEK million -6.3 (5.5) -6.3 (5.5) (7.5) *) Adjusted for MediCult and cost for move Jan-Jun

25 Cash flow analysis FINANCIAL INFO April - June January - June Whole year SEK thousands Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash flow for the period Liquid funds at beginning of period Exchange rate difference in liquid funds Liquid funds at end of period

26 Agenda Company background/history Summary of first half year 2009 Markets Product /therapy areas Key Figures Outlook

27 Outlook 2009 Continued execution of main strategy: Establish direct sales on all major markets covering 80% of all treatments Exploit market synergies with broader product portfolio through development and/or acquisitions Increase gross margin through continuous improvement of operations One major new product launch in Product Area Fertility Support launch of STEEN Solution in Europe and prepare for market introduction in USA and Canada Strong R&D focus with gradually increasing efforts in Transplantation and Stem Cell Cultivation Maintain profitable growth and operational strong cash flow 27

28 With sustainable profit & cash flow reaching the global market investing in growth for the future