On track for success. DVFA, Frankfurt May 8 th, 2017

Transcription

1 On track for success DVFA, Frankfurt May 8 th, 2017

2 Disclaimer Background curasan AG This presentation does not constitute an stock offering in the sense of a legal prospectus according to the laws of publically traded companies in Germany. This presentation is not an offer to sell nor does it indicate an offer to purchase or issue shares of curasan AG. It is solely intended to provide additional information. Any other use, duplication, or distribution of this document or the information contained within is strictly prohibited. This presentation contains forward looking statements regarding curasan AG, including opinions, estimates and projections regarding curasan s financial position, business strategy, plans and objectives of management and future operations. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of curasan AG to be materially different from future results, performance or achievements expressed or implied by such forward looking statements. These forward looking statements speak only as of the date of this presentation and are based on numerous assumptions which may or may not prove to be correct. No representation or warranty, express or implied, is made by curasan AG with respect to the fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein, including but not limited to the plans, business relationships, financial situation, market conditions, competition, future strategies, and regulatory assumptions. The information is this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning curasan AG. curasan AG undertakes no obligation to publicly update or revise and forward looking statements or other information stated herein, whether as a result of new information, future events or otherwise. curasan AG reserves the right to adjust or change these forward looking statements at any time should there be changes in relevant factors. The forward looking statements from studies conducted by third parties could prove to be incorrect. The use of data from third party studies or reports serves solely to provide additional information and does not indicate or imply accuracy or agreement with such data, claims, opinions or conclusions. curasan AG does not warranty or assume responsibility for the selection, completeness, or accuracy of third party studies or information. Kleinostheim Lindigstraße Kleinostheim Germany T: F: M: Michael Schlenk CEO michael.schlenk@curasan.com DVFA Frankfurt, May 8 th

3 curasan at a glance Locations: Founded/IPO: Headcount: 34 Frankfurt, Germany & Raleigh, NC, USA 1988/2000 General Standard Sales 2016: 6.93 Mill EUR (+16,1%) CEO: Michael Schlenk since 10/2014 Shareholders: Company facts 68% free float, management, Chinese partner, institutional investors Under one umbrella USA Subsidiary 80 sales partners 50 countries Market access Market Growth Research Production Certification Distribution $ 2.1 Bio $ 1.6 Bio of medicial devices DVFA Frankfurt, May 8 th

4 Historic development of curasan FOCUS Marketing & Key Account Management Production and R&D DVFA Frankfurt, May 8 th

5 Financing turnaround Last rounds of financing/settlements since start of turnaround end of ,5m 16% capital increase Different investors, including CEO ,0m 10% capital increase Different investors, incl. CEO and management ,5m Settled dispute with Stryker ,2m 10% capital increase Strategic distribution partner Xiong Yinan, China ,0m 10% capital increase Different investors, incl. CEO, management and SVB 2017 Growth investment to accelerate sales and registration DVFA Frankfurt, May 8 th

6 New Management Team Michael Schlenk Okt 2014 Gregor Siebert April 2015 Christine Uekert April 2017 CEO Director Sales & Marketing CFO Dr. Gregor Thomas June 2016 Medical Director Dr. Fabian Peters 2001 Technical Director Mitchell Shane Ray May 2016 President & CEO curasan, INC. DVFA Frankfurt, May 8 th

7 Alternative Bone Materials Autologous bone (Autografts) Allogenic bone (Allografts) Xenogenic bone (Xenografts) Bovine, porcine or equine origin Synthetic materials DVFA Frankfurt, May 8 th

8 CERASORB - safe and safe 1. Synthetic 1. No costly cleaning steps needed to wash out biology and virology 2. No biological risks 3. Synthetics: The future in biomaterials 2. Fully resorbable After 12 months in an x-ray only bone material can be seen (all granulate or foam or paste 100% resorbed) 3. Absolutely safe Over 1.6 million vials of CERASORB were used, but ZERO reported product related side-effects Regenerative medicine: bone regeneration, NOT replacement. DVFA Frankfurt, May 8 th

9 Strategy ::: Focus on key products CERASORB curavisc

10 Market access of curasan Growth opportunities EUROPE Reset dental Network (2017) Extend partner Network in Ortho: Spinal Partner General Ortho partner Growth opportunities USA/Canada Launch Ortho in Trauma/Foot & Ankle Launch Ortho Spine (Q1, 2018) Expand Sales Network in Ortho and Dental Growth opportunities LA Re-evaluate Ortho / Dental in Brazil Mexico Chile Argentina Growth opportunities APAC Japan: Osbone launch 2019 China: Cerasorb dental launch (2017) and Ortho launch 2021 Vietnam: Stypro and Cerasorb Launch (2017) Growth opportunities MENA Establish Distributor/Partner Network in 2017 CURAVISC Launch in Qatar/Kuwait/Iran (2017) All other Products DVFA Frankfurt, May 8 th

11 Main changes and achievements 2016 (Q1, 2017) In 1,000 Euro 2016 Net Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec After years of declining and stagnant sales, sales grew in 2016 by 16.1%...and that despite discontinuation of Cytoplast (400 K, low profitability) Sales growth increased quarter by quarter. In Q4 vs PY even 37%. New medical director. New CFO. New marketing & key account management team New President of curasan, Inc. Re-organisation of fully owned US subsidiary: New marketing manager and sales staff CERASORB Foam Ortho received US FDA registration in December 2016; ahead of expectation. Launch end of Q2, 2017 Prepared Chinese Market. Signed contract with Fosun in April. First sales and trainings May 16 th /17 th Two capital increases raising 2.2 Million EUR DVFA Frankfurt, May 8 th

12 New 2016 Annual Report available upon request

13 Steps to success Execute strategy Gain relevant market share Re-invention Strategy Net Sales EBIT DVFA Frankfurt, May 8 th

14 Attractive and growing future markets Global BGS Market 2015: $ Mio Orthopedic Market Size / 2020: $ Mio Dental Market Size WW-BGS Market 2015: $ 1168 Mio WW-BGS Market 2020: $ 1446 Mio WW-BGS Market 2015: $ 451 Mio WW-BGS Market 2020: $ 687 Mio 19% 20% 14% 5% 13% 7% CAGR: 4,4% 6% 46% CAGR: 8,8% 15% 42% 74% 74% 35% 30% US Europe RoW US Europe RoW US Europe Asia/Pac China US Europe USA: most attractive market with 1 Billion potential (Ortho/Dental > 60% of world market) curasan: CERASORB Foam Ortho was approved already in Dec Source: idata 2015, espicom, Orthoknow, management estimates China: highest CAGR: 30,7% p.a.; world wide share increase from 5% to 13% curasan: CERASORB granulate portfolio is registered. Contract with FOSUN signed in April 14

15 Sales growth by region until 2020 China Market size growing from 5% to 13% in 2020 U.S. Market size 74% in Sales Europe USA Latin America Asia Pacific Middle East / Africa 2020 Sales DVFA Frankfurt, May 8 th

16 Sales shift from Dental to Ortho markets Dental 31% Ortho 69% 2015 ACT 2016 ACT Target 2020 Market 2020 DVFA Frankfurt, May 8 th

17 Financials

18 2016: Continuous growth on like-for-like basis (1.000 Euro) Δ (abs) Δ (%) Revenues gross & adjusted ,1% Revenues net ,8% Cost of materials ,2% Other income ,7% Cost of personnel ,5% Other Expenses ,5% EBITDA n/a Depreciation ,8% EBIT n/a Financial Income ,8% Taxes n/a Net Income n/a Number of shares (average, thousands) ,5% Earnings per share (in Euro) -0,21 0,15 DVFA Frankfurt, May 8 th

19 Balance Sheets - Assets (1.000 Euro) Current Assets Δ (abs) Δ (%) ,6% Thereof Cash & Cash equivalents ,6% thereof Trade receiveables ,1% thereof Inventory ,5% thereof Other assets (shortterm) ,0% Non-current Assets ,3% thereof Intangible Assets ,0% thereof Tangible Assets ,4% thereof Goodwill ,0% thereof Customer Base ,4% thereof tax asset ,2% Total Assets ,3% DVFA Frankfurt, May 8 th

20 Balance Sheets - Liabilities (1.000 Euro) Current Liabilities Δ (abs) Δ (%) ,2% thereof from Banks ,0% thereof Trade payables ,1% thereof Other liabilities (shortterm) ,6% Non-current Liabilities Equity ,6% thereof Pension provision ,0% thereof Other liabilities and accruals ,0% ,3% thereof Subscribed capital ,0% thereof Capital reserve ,5% Other reserves ,0% Change in equity (neutral) ,8% thereof Loss carryforward ,8% Net result n/a Total Liabilities ,3% DVFA Frankfurt, May 8 th

21 Cash flow affected by capital increase (1.000 Euro) Δ (abs) Δ (%) Cash & cash equivalents as of 1 Jan ,3% Cash flow from operations n/a Cash flow from investments ,1% Cash flow from financing ,5% Cash & cash equivalents as of 31 Dec ,6% Further key figures Employees as of 31/12/15 (FTE) ,9% DVFA Frankfurt, May 8 th

22 Outlook 2017 (guidance) Gross Revenues 8.5 meur meur Net result -1.6 meur meur Regional focus USA and China Add new markets and distribution partners to increase coverage Shift focus from dental to ortho Continued focus on CERASORB and Curavisc DVFA Frankfurt, May 8 th

23 curasan shares and ownership structure 3,1% 2,2% CEO Supervisory Board 8,8% Alto Invest 67,9% Aktien 8,3% 4,6% Yinan Xiong Riemser Pharma 3,9% Isar Holding /Winterling Free Float Stand: April 2017 Quelle: offizielle Meldungen, Unternehmensinformationen DVFA Frankfurt, May 8 th

24 Unique selling points Made in Germany BGS Gold Standard Experts on board USPs Under one umbrella Experience 29 Resorbables Registration expert Best in class products Safety proven DVFA Frankfurt, May 8 th

25 SUMMARY: Why is curasan so attractive? 1. Competitive Product Advantages a. Safe products / zero side-effects (1.6 Mio vials) b. Best synthetic bone graft in the market: Reference β-tricalcium Phosphate (Europe / USA) c. Own Patents d. Broad product spectrum: Granulate, Foam, Paste 2. Internationally, experienced turnaround management a. 5 out of 6 new top managers b. New marketing and key account team c. Headcount stable d. Cultural change without brain drain 3. Modern production facilities / little CapEx need to expand capacity Break even Growing profitability EBIT Rich pipeline, ready to launch. Marketing and Sales dominate. 5. Excellent opportunities in two key markets ::: USA and China 6. Shift to huge Ortho market with double the size of Dental 7. Low market cap with excellent growth potential adjusted DVFA Frankfurt, May 8 th