1H 2012 Financial Results & Business Update. August 2012

Transcription

1 1H 2012 Financial Results & Business Update August 2012

2 Content 1H 2012 Financial Results Business Update Long-Term Plans Appendix - financial statement 1

3 Financial Summary 1H 2012 Highlights Key Financial Summary Revenue: 485m, Y/Y 8.0% Net profit: 223m,Y/Y 9.4% Cash generated from operation: 167m, 26.5% (1H2011: 132m) New Commercially-Launched Products: RMB: million H2011 1H2012 Flux Revenue % Cost (137.3) (69.2) (71.8) 3.8% Gross Profit % Expenses (403.1) (173.0) (174.3) 0.8% Operating Profit % Net Gain/Loss % Net Profit % EPS % A Gonadotropin-Releasing Hormone (GnRH) Infusion Pump for the treatment of IHH A Circumferential Pulmonary Vein Diagnostic Catheter for atrial fibrillation procedures GnRH Easyloop Business Diversification: New Businesses experiencing hyper growth, accounting for 5.3% of total revenue M&A: A strategic acquisition in on-pump fields - Dongguan Kewei in June,

4 Growth on Revenue and Net Profit Revenue Net Profit RMB million RMB million H2011 1H H2011 1H2012 Note: Dongguan Kewei s finance result is not consolidated in 1H

5 Business Diversification Revenue Mix for Reference Revenue by Products ( ) TAA/AAA stent Graft 5.7% (26M) Other Vascular 4.6% Diabetes 0.4% Drug-eluted stents 88.8% 398M New Businesses 0.9% EP 0.6% 4.1M RMB 449M RMB Revenue by Products ( ) TAA/AAA stent Graft 5.3% (26M) Other Vascular 6.6% Diabetes 1.0% Drug-eluted stents 82.9% New Businesses 5.3% Orthopedics 3.5% EP 0.7% 402M 485M RMB 25.5M RMB 4

6 Profitability Gross Profit Margin(GPM%) Net Profit Margin(NPM%) 81.9% 86.1% 86.5% 83.7% 84.6% 85.2% 36.9% 33.2% 33.0% 38.2% 45.4% 45.6% H H H H 2012 GPM% and NPM% both keeps stable in 1 st half year 5

7 Operating Expenses Sales and Marketing Cost Administrative Expense Research and Development Cost RMB million RMB million RMB million 17.5% 17.7% 18.1% 18.2% 13.6% 13.7% 13.4% 9.9% 9.1% 9.6% 11.7% 9.1% 10.0% 12.2% 15.4% 16.2% 15.7% 12.9% H 20111H H 20111H H 20111H 2012 Y/Y: 5.5% Y/Y: 13.7% Y/Y: 10.9% 6

8 Business Update 1 Vascular Business 2 EP Business 3 Orthopedics Business 4 Diabetes Business 5 M&A Dongguan Kewei 6 Long-Term R&D Pipeline *Patents: 298 in total by 2011; 372 in total by July,

9 1-1 Vascular Business Market Leader with Strong Brand Recognition DES Market Leadership (2012) DES Revenue (2008-1H2012) RMB: million (in terms of units implanted) % % % % 0% Lepu Jiwei Others Abbot Medtronic J&J Boston Scientific International competitors Source: Internal Study Data Domestic competitors H H

10 1-1 Vascular Business Firehawk R&D Status Firebird 2 Firehawk Clinical Trial Phase 1 First in Man ( FIM ) (Completed) Commercially launched in January 2009 Constructed of cobaltchromium coated with sirolimus inch thick Third generation DES Cobalt-chromium target-eluting stent coated with sirolimus Biodegradable drug coating that attaches only to the area of stent that contacts the blood vessel Phase 2 TARGET I A study of randomized controlled multicenter trial with total of 510 patients completed Update of Firehawk The results of Target I will be published on TCT 2012 (Oct. 2012) Expect to get approval as soon as the beginning of 2014 Phase 3 Single Arm Trial Completed enrollment of 730 patients in Feb

11 1-2 Vascular Business TAA/AAA TAA/AAA Market Leadership (2012) Products Profile (in terms of units implanted) Castor 30% Branched Aortic Stent-Graft and Delivery System Clinical Trial to be kicked off in % 10% Hercules B / Hercules T 0% Metronic Medtronic Cook Others International competitors Domestic competitors 10

12 1-3 Vascular Business Neurovascular Solid Growth of Apollo in Revenue R&D Pipeline RMB: million Tubridge Vascular Reconstruction Device First-in-man Finished in Clinical Trial to be kicked off in H H 2012 Leading Position in Neurovascular stents Willis 10% Apollo 30% In terms of units Wingspan Others Intracranial Stent Graft System Waiting for SFDA approval 60% 11

13 2 EP Business Solid Growth of EP in Revenue R&D Pipeline RMB: million Columbus D Mapping System Clinical Trial in H H 2012 Products on the Market Voyager Irrigated RF Ablation Cathete Clinical Trial in

14 3 Orthopedics Business Milestones Sales Split by Application Key Factors 2009 Established Shanghai MicroPort Orthopedics Other Spine 2010 Obtained CE Certificates for over 5 products since 2010 Trauma RMB:17M Employee: 166 in total Facilities: increase an area of 11,000 m2 Certificates: over 20 domestic registration certificates, and over 5 CE certificates 2011 Acquired Suzhou BEST Orthopedics Corporation Products Profile Pipeline 2012 Revenues generated from domestic & international sales Trauma-Plates Trauma-Nails Cannulated Screws External FX Spine-Plates Spine-Screws Spine-Cages Spine-Instruments 13

15 4 Diabetes Business Solid Growth of Diabetes Business in Revenue RMB: million Products Profile Micro-Infusion GnRH Pump (Artificial Pituitary Pump) Innovative Solution for Hypogonadotropic Hypogonadism (HH) Contribute a lot to the revenue R&D Pipeline La Fenice V La Fenice Pen New generation Insulin Pum Clinical Trial Finished Motor Drive Insulin Pen Clinical Trial to be kicked off in

16 5 M&A Dongguan Kewei Key Factors Oxygenators Market Leadership Kewei 22% 15% Medtronic Terumo Located on Dongguan, Guangdong province 28 patents in China Around 160 employees, over 20 engineers and 10 sales Products currently used in more than 150 hospitals 12% 8% 9% 10% 14% 10% Medos AG Sorin Jostra AG Xijian Medical Others Source: Guohai Securities Research Center, Feb Financial Highlight Future Development (RMB million) Year 2011 Fill the gap of product lines in cardiac surgeries and structural heart diseases markets for MicroPort Medical Compete in the cardio-thoracic area Revenue 64 Net Profit 9 Net Assets 57 Enrich the existing product lines and increase market share with the new products Huge potential for development of new technologies relating to the occluders and membrane oxygenators 15

17 6 Long-Term R&D Pipeline (over 5 years) Pacemaker & Pacing Lead Others IPG (Implantable Pulse Generator) Under R&D stage Transcatheter Aortic Valve Implantation system Under R&D stage ( 微创医芯 ) Pacing Leads active & passive Intramyocardial injection catheter Under R&D stage Under R&D stage 16

18 Cardiovascular Endovascular & Peripheral vascular Neurovascular Endo Surgery General Surgery EP CRM Orthopedics LifeScience (Diabetes) TBD Long-Term Plans (10+5) MicroPort Scientific Corporation MicroPort Innovation Center Accessories Device (Model Processing & Extrusion) MicroPort Intelligent MediTech MicroPort Leadership College MicroPort Overseas 17

19 Appendix I - Consolidated Income Statement (RMB '000) 1H 2012 Actual 1H 2011 Actual Revenue 484, ,824 Cost of sales (71,833) (69,227) Gross profit 413, ,597 Other revenue & net income 25,811 37,854 Research and development costs (62,824) (70,454) Sales and marketing costs (64,886) (61,524) Adminnistrative expenses (46,637) (40,993) Other operating costs (313) (5,083) Operating Profit 264, ,397 Finance costs (327) (880) Profit before taxation 263, ,517 Income tax (41,236) (34,919) Net profit 222, ,598 18

20 Appendix II - Consolidated Balance Sheet RMB' Dec Jun 2012 Cash and cash equivalents 1,095, ,888 Deposits with banks 319,279 1,100,129 Trade & Other receivables 286, ,487 Inventories 73,962 70,097 Total current assets 1,775,067 1,816,601 Fixed Assets & CIP & Prepay for FA 407, ,956 Intangible assets 85,632 96,368 Goodwill 64,466 66,466 Deferred tax assets 11,674 9,980 Prepayment for investment - 41,355 Total non-current assets 569, ,125 Total assets 2,344,199 2,510,726 Short-term loan (2,000) - Trade & Other payables (141,284) (84,209) Income tax payable (10,059) (20,780) Dividend payable - (81,451) Other current liabilities (590) (590) Total current liabilities (153,933) (187,030) Long-term loan (3,193) (3,243) Deferred income (46,628) (40,410) Deferred tax liabilities (25,290) (24,981) Total liabilities (75,111) (255,664) Share capital (109) (109) Capital reserve (2,115,046) (2,254,953) Total stockholders' equity (2,115,155) (2,255,062) Total liabilities and equity (2,344,199) (2,510,726) Net Current Assets 1,929,000 2,003,631 Net Assets 2,115,155 2,255,062 19

21 Appendix III - Condensed Consolidated Cash Flow Statement (RMB '000) 1H 2012 Actual 1H 2011 Actual Cash generate from operations 196, ,027 Income tax paid (29,131) (33,743) Net cash generated from operating activities 167, ,284 * Net cash used in investing activities (945,785) (213,334) Net cash used in financing activities (25,962) (119,629) Net decrease in cash and cash equivalent (804,349) (200,679) Cash and cash equivalents at 1 January 1,095, ,053 Effect of foreign exchange rate changes (972) 210 Cash and cash equivalents at 30 June 289, ,584 * Including million net placement of time deposits with bank over 3 month(1h 2011: 170 million) 20

22 Disclaimer This document is for information purposes only and does not constitute or form part of any offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for any securities of MicroPort Scientific Corporation, and no part of it shall form the basis of, or be relied upon in connection with, any agreement, arrangement, contract, commitment or investment decision in relation thereto whatsoever. FORWARD-LOOKING STATEMENTS Some information contained on this website contains forward-looking statements. These forward-looking statements include, without limitation, those regarding our future financial position, our strategy, plans, objectives, goals and targets, future developments in the markets where we participate or are seeking to participate, and any statements preceded by, followed by or that include the words "believe", "intend", "expect", anticipate", "project", "estimate", "predict", "is confident", "has confidence" and similar expressions are also intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of MicroPort s management and are subject to significant risks and uncertainties. MicroPort Scientific Corporation undertakes no obligation to update any of the statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors that could cause actual future results to differ materially from current expectations include, but are not limited to, general industry and economic conditions, PRC governmental policies and regulations relating to the medical device manufacturing industry, competition in the medical device manufacturing industry, our ability to develop new products and stay abreast of market trends and technological advances, our goals and strategies, our ability to execute strategic acquisitions of, investments in or alliances with other companies and businesses, fluctuations in general economic and business conditions in China. CONFIDENTIALITY This presentation is confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. 21

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