Medistim ASA Fourth Quarter Kari E. Krogstad, President and CEO Thomas Jakobsen, CFO February 17th, 2017

Transcription

1 Medistim ASA Furth Quarter 2016 Kari E. Krgstad, President and CEO Thmas Jakbsen, CFO February 17th, 2017

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 furth quarter 2. Financial statements 3. Business segments update 4. Implementing the strategy

4 1. Highlights furth quarter

5 5 Highlights furth quarter % r MNOK 7.2 decline in sales fr the quarter, Cmparing t Q4-15, best quarter ever in Medistim MNOK 4.6 in 3.party prducts is lst fr the quarter due t the terminated Medtrnic agency MNOK 3.6 in flw prbes backrders due t temprary lack f prductin capacity Anther strng quarter fr the USA with sales up 10.0 % t MNOK 21.9 Q Revenue MNOK 67.4 (74.6) EBIT MNOK 9.7 (15.9) Q Q -9.6 % % Full year 2016 shws 6.6 % revenue grwth Currency neutral sales f wn prducts grws 9.5 % 3.party prducts decline by 10% EBIT at MNOK 9.7 fr the quarter due t the lwer sales Full year 2016 EBIT is up 21.0 % t MNOK 56.4 SnQ launched in India in Nvember Bard suggest a dividend f NOK 1.75 per share Currency N f capital units sld: Flw systems 25 Imaging systems 5 Flw prbes Imaging prbes 18 Prcedures (USA) % 47 % -82 % -5.7 % -33 % 33 %

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% 19,0 % 24,5 % Depreciatin Write ffs - (453) Operating result (EBIT) EBIT % 14,5 % 21,4 % Financial incme Financial expenses Net finance (1 109) Pre tax prfit Tax Result Sales per Quarter (TNOK) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q EBIT per Quarter (TNOK) Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q ,00% 25,00% 20,00% 15,00% 10,00% 5,00% 0,00%

8 8 Prfit and lss Year t date Prfit & lss All numb ers 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% 25,4 % 25,3 % Depreciatin Write ffs Operating result Financial incme Financial expenses Net finance (2 828) Pre tax prfit Tax Result Dividend Sales per Year (TNOK) EBIT per Year (TNOK)

9 9 Balance sheet - Assets Balance sheet All numb ers in NOK 1000 Assets Intangible assets Fixed assets Ttal intangible and fixed assets Inventry Custmers receivables Other receivables Cash Ttal current assets Ttal assets Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Intangible assets Fixed assets Inventry Accunts receivable Other assets Cash Inventry level is high, related t MiraQ prduct line intrductin while maintaining the VeriQ/VeriQC prducts with last-time-buy f cmpnents Increased 3.party cnsignment inventry f Mentr prducts related t the Aleris agreement and HINAS tender Securing safety level f critical cmpnents

10 10 Balance sheet - Equity and liability Balance sheet All numb ers in NOK Share capital Premium fund Other equity Ttal equity Ttal lng term debt Ttal shrt term debt Ttal equity and liability Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Share capital Premium fund Other equity Lng term debt Shrt term debt 5.6 MNOK in interest bearing debt Suggested dividend f NOK 1.75 per share

11 3. Business segments update

12 12 Flw prbes and systems in units Flw prbes in units (excl USA) Flw systems in units (VeriQ & MiraQ) Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Eurpe US ROW Asia Abut 400 prbes in backrder fr Q4 due t temprary lack f prductin capacity 5.1 % grwth in prbe sales in 2016 Strng flw system sales in all regins except Asia Flw-t-imaging upgrade pprtunity is well received by custmers 16 f the 25 systems were MiraQ

13 13 Imaging prbes and systems in units Imaging prbes in units (incl USA) Imaging systems in units (VeriQC & MiraQ) Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Imaging prbes US imaging prbes Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 US Asia Eurpe ROW Increased sales f imaging prbes in the USA Lwer number f imaging systems sld this quarter results in weaker imaging prbe sales utside the USA Lw imaging system sales in Q in all regins, nly 5 systems vs 28 in Q f the 5 systems sld were n the MiraQ platfrm

14 14 Q4 revenue perfrmance by regin Mill NOK Q4 '16 Q4 '15 Q / Q Y/Y Eurpe 38,3 42,5-9,8 % 136,4 141,7-3,8 % USA 21,9 19,9 10,1 % 91,0 76,2 19,4 % Asia & Jp 4,7 8,1-41,6 % 24,8 21,7 14,3 % ROW (MEA, CAN, SA, AUS) 2,5 4,2-40,0 % 15,9 11,8 34,7 % Ttal 67,4 74,6-9,6 % 268,1 251,4 6,6 % In Eurpe, Q4 was weak, since bth 3.party prduct sales decreases by 13.2 % due t the lst Medtrnic agency and wn prducts decreased by 6.5 % due t lwer prbe sales and imaging systems sales. Fr 2016, wn prducts grw 3.5% and 3. party is dwn by 10.0%. In the USA, Medistim delivers yet anther gd quarter and grwth in NOK was 10.0%, currency neutral grwth was 13.4%. Fr 2016 grwth is 19.4% in NOK and 14.2% currency neutral. Bth Asia/Japan and ROW are s far smaller sales territries, with significant quarter t quarter variatin. Negative currency effects fr Q4 with 1.4 MNOK and psitive with 7.6 MNOK fr Average actual exchange rate fr USD 8.40 and EUR 9.29 versus last year USD 8.07 and EUR 8.95.

15 15 Q4 revenue perfrmance by prduct Mill NOK Q4 '16 Q4 '15 Q/Q Y/Y Prcedures (USA) 20,3 18,0 12,5 % 81,9 69,7 17,5 % Flw prbes 17,5 19,9-12,3 % 70,4 64,1 9,8 % Flw systems (VeriQ & MiraQ) 5,6 3,6 55,3 % 17,7 12,9 37,7 % Imaging systems (VeriQ C & MiraQ) 2,8 10,3-72,8 % 21,0 23,3-9,8 % Imaging prbes 0,6 1,8-67,0 % 3,1 3,9-19,0 % 3rd party 18,2 20,9-13,2 % 68,4 76,1-10,0 % Other 2,5 #DIV/0! 5,4 1,5 269,4 % Ttal revenues 67,4 74,6-9,6 % 268,1 251,4 6,6 % Prcedure sale in the USA: In number f prcedures, pure flw prcedures are up 25 % while imaging prcedures are up 118 % in Q flw prcedures increase with 12 % while imaging prcedures increase with 45 %. Flw prbes revenue: In additin t the backrder situatin, 6.6 % f decline was currency driven in Q4. Fr the year 2016, 5.1 % f grwth was vlume driven and 4.7 % was related t currency. Flw systems: The Q4 grwth in revenue is driven by grwth inn units and mre direct sales. Fr the year, favrable currency als cntributes. Imaging systems and prbes: Ttal system units sld in Q4 was 5, dwn 23 units frm last year, which explains the reductin in sales fr the quarter and the year. 3 rd party prducts: As expected, sales is dwn frm last year due t f the lss f the Medtrnic agency.

16 4. Implementing the strategy

17 17 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) 2 2. Achieve rutine use f bth Flw and Imaging by fighting ignrance, indifference and ease-f-use bjectins thrugh Clinical marketing & Educatinal prgrams Strng Medistim markets (e.g. Jp, Nrdic, Germany) >50% CABG share 1 3 Prduct innvatin fr ease f use Increased sales frce capacaity 3. Build and strengthen psitin in vascular surgery Dedicated system (MiraQ Vascular) & prbes GEOGRAPHIES APPLICATION AREAS CABG surgery (2 BNOK) Vascular surgery (>1 BNOK) Other pen heart surgery (1 BNOK) Build psitin with scieties and KOLs 4. Offer an entry-level slutin t reach emerging, pricesensitive, high-grwth markets

18 High perfrmance US sales rganizatin Number f prcedures per year RESULTS 2016 Revenues up by 19.4 % in NOK 14.2 % grwth in USD # f Prcedures per Cnsecutive Quarter Number f prcedures up by 15.4 % % grwth in flw prcedures 45 % grwth in imaging prcedures 40 % increase in capital sales Cntinued grwth in Q4 in USA 6 cmpletely new accunts, 23 fr the year 2 TTFM accunt cnverted t Imaging, 4 fr the year Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

19 19 Grwth pprtunities in emerging 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) 2 2. Achieve rutine use f bth Flw and Imaging by fighting ignrance, indifference and ease-f-use bjectins thrugh Clinical marketing & Educatinal prgrams Strng Medistim markets (e.g. Jp, Nrdic, Germany) >50% CABG share 1 3 Prduct innvatin fr ease f use Increased sales frce capacaity 3. Build and strengthen psitin in vascular surgery Dedicated system (MiraQ Vascular) & prbes GEOGRAPHIES APPLICATION AREAS CABG surgery (2 BNOK) Vascular surgery (>1 BNOK) Other pen heart surgery (1 BNOK) Build psitin with scieties and KOLs 4. Offer an entry-level slutin t reach emerging, pricesensitive, high-grwth markets

20 20 Launch f SnQ in India SnQ intrduced during the Internatinal Crnary Cngress in India (ICC) in Nvember 2016 Medistim premium prducts are well accepted, but price has been an issue Large market with crnary surgeries perfrmed per year and high grwth

21 21. Adressing grwth and develpment needs in Medistim manufacturing Situatin: Increasing vlumes Increased cmplexity MiraQ platfrm VeriQ / VeriQC platfrm Cardiac and vascular prbe families Temprary lack f prbe prductin capacity Prduct quality is indesputably nr 1 pririty Key initiatives: Review and revisin f manufacturing prcesses quality prcedures mnitring and cntrl New VP Manufacturing, Helge Børslid, started January Cming frm Prductin Manager rle in Halliburtn, Sandefjrd Previus experience frm Nrautrn, Infinen Technlgies Sensnr, Kngsberg Maritime and Sensr Develpment

22 22 20 largest share hlders (per 9. February 2017) Number f shared Shares in % Sharehlder ,00 INTERTRADE SHIPPING ,16 SALVESEN & THAMS INV ,58 JPMrgan Chase Bank, NORDEA TREATY ACCOUN ,45 FOLLUM CAPITAL AS ,28 PROTECTOR FORSIKRING Aksjer ,56 Skandinaviska Enskil A/C CLIENTS ACCOUNT ,30 BNP Paribas Securiti S/A ITALIAN RESIDENT ,84 BUANES ASBJØRN JOHN ,43 DYVI INVEST AS ,42 STENSHAGEN INVEST AS V/Lars Hatletveit ,40 Citibank Eurpe plc S/A SEB SA UCITS ,29 GRANDEUR PEAK INTERN BROWN BROTHERS HARRI ,89 VERDIPAPIRFONDET HAN NORGE ,75 RBC Investr service S/A LUX-NON-RES/DOM ,43 SEB PRIME SOLUTIONS SKANDINAVISKA ENSKIL ,36 Danske Invest Nrge ,10 Danske Bank A/S 3993 NORDIC SETTLEME ,09 Bank Julius Bär & C ,09 VEVLEN GÅRD AS ,04 REGENTS OF THE UNIVE The Bank f New Yrk

23 23 Seeing is believing