VITROLIFE AB (PUBL) NORDEA Small & Mid Cap Seminar

Transcription

1 VITROLIFE AB (PUBL) NORDEA Small & Mid Cap Seminar

2 % OF ALL COUPLES IN FERTILE AGE SUFFER FROM FERTILITY PROBLEMS

3 LEADING COMPANY IN MEDICAL DEVICES FOR ASSISTED REPRODUCTION A Swedish company Founded in 1994 Approx 370 employees Sales MSEK* 97% on export Listed on NASDAQ Stockholm Mid Cap 3 * Rolling 12 months

4 AN INCREASING TREND OF DELAYING FIRST BIRTH 32 Age Spain Sweden United Kingdom Poland United States Source: UNECE Statistical Database. Data collected from Eurostat and UNICEF TransMONEE official sources 4

5 AGE IS A CRITICAL FACTOR FOR SUCCESS Day 3 and Day 5 embryo transfers that resulted in live births by age Percentages of ART cycles that resulted in miscarriage by age Assisted Reproductive Technology, National Center for Chronic Disease Prevention and Health Promotion, Divison of Reproductive Health

6 SUCCESS RATE STEP BY STEP Outcomes of ART Cycles Using Fresh Nondonor Eggs or Embryos Percentages of ART Cycles Using Fresh Nondonor Eggs or Embryos That Resulted in Pregnancies, Live Births, and Single-Infant Live Births, by Age of Woman* Assisted Reproductive Technology, National Center for Chronic Disease Prevention and Health Promotion, Divison of Reproductive Health

7 THE IVF-PROCESS VITROLIFE PRODUCTS HORMONE TREATMENT Hormone stimulation to increase the number of retrievable eggs 7

8 COST STRUCTURE FOR AN IVF CLINIC 26% 45% EBITA 25-30% Salaries 45% Purchase 8-12% Depreciation 1-3% Other operating costs 15-25% (currently reconstruction cost or high financial cost to owner structure) Comments Salaries are the major cost Sales & marketing is in other operating costs Clinic chains have higher financial costs than non clinic chains 10% 2% 17% 8

9 WITH FOCUS ON SUPPORTING CLINICS IN BECOMING SUCCESSFUL Ensure staff are well trained Secure access to the latest know-how and technologies Maximise clinic efficiency and reliability Improve the financial results 9

10 LARGE REGIONAL DIFFERENCES ON NUMBER OF IVF CHILDREN BORN ART INFANTS (EXCL. IUI) PER NATIONAL BIRTH % 10 Source: Data from

11 MARKET TRENDS Increased regulatory demands (higher barriers to enter) Patients are more informed and involved as decision-makers Cooper has strengthened its position by acquisitions Emergence of local players with domestic production in China and Japan Kitazato emerging competitor in new areas COMPETITION PATIENTS Growing middle class Parents mean age is increasing Social freezing is growing Time-lapse is increasing Pre-implantation genetic testing is increasing Cryo-preservation is increasing TREATMENT IVF CLINICS Consolidation of IVF clinics Private equity owned clinic chains Increased demand for easy-to-use products and workflow efficiency Mild stimulation is increasing Mid-single digit growth in oocyte pickup cycles Higher revenue growth due to upselling 11

12 STRATEGIC OPPORTUNITIES Opportunities in all markets sell more of existing portfolio time-lapse expansion product line expansion Technology changes selection / decision support Medtech diagnostics and pharma integration / cooperation 12

13 SUMMARY Q2 Sales of 283 MSEK (285) equals -1% in SEK Sales decreased by 5% in local currencies EBITDA of 116 MSEK (41% margin) Market approval for EmbryoScope+ in the US Share split 5:1 Collaboration agreement with GE Healthcare 13

14 SALES AND GROWTH PER BUSINESS UNIT SEK millions, rolling 12m ART EQUIPMENT TIME-LAPSE DISPOSABLE DEVICES -61% -9% -10% MEDIA +9% 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Quarterly growth Local currencies 14

15 SALES AND GROWTH PER MARKET REGION SHARE OF VITROLIFE S SALES ROLLING 12-MONTHS 14% 45% 25% 16% Q2 GROWTH RATE COMPARED TO LAST YEAR IN LOCAL CURRENCIES +3% +7% -26% +6% Total -5% 15 * Whereof organic growth -1 percent

16 KEY FINANCIALS GROUP Q2 Fluctuations in exchange rates positively impacted EBITDA by SEK 8 million. Dividend paid of SEK 81 million (SEK 3.70 per share before share split) 2018 Q Q Q1-Q Q1-Q FY Sales, MSEK Gross Margin % 66% 65% 66% 65% 65% Adj. Gross Margin %* 70% 69% 69% 69% 69% EBITDA, MSEK EBITDA Margin % 41% 39% 41% 39% 39% Earnings per share, SEK** Net Debt / EBITDA rolling 12m * Gross margin excluding amortisation of acquisition-related intangible assets ** Recalculated with regard to the 5:1 share split carried out in May 2018.

17 THE SHARE SEK / SHARE Listed on NASDAQ Stockholm Mid Cap Market value: ~13 billion SEK (10/8-18) Share split on May 17 (5:1) Stockholm LARGEST OWNERS 29 June William Demant Invest A/S 21.8% 2. Bure Equity AB 20.8% 3. SSB CLIENT OMNIBUS AC OM07 6.9% 4. Lannebo Fonder 3.1% 5. Eccenovo AB 2.1% 6. CBNY-NORGES BANK 2.0% 17

18 OUTLOOK Long-term market growth 5-10% in monetary terms Expansion of sales Broadening the product offering 18

19 Our goal is to become the world leading supplier of medical devices for assisted reproduction 19

20 Contact: Thomas Axelsson, CEO, Mikael Engblom, CFO,