KAPITALMARKNADSDAG 20 SEPTEMBER 2016 Thomas Axelsson, CEO 1
AGENDA 16.10-16.30 VD har ordet Thomas Axelsson, CEO 16.30-16.50 Clinical relevance of time-lapse Dr. Niels B. Ramsing, Business Unit Time-lapse, Strategic Product Development 16.50-17.10 Business Unit ART Equipment: main products and market relevance Dr. Paul Gassner, Business Unit Director ART Equipment 17.20-18.50 Produktpresentationer och produktionsvisning 18.50- Mingel Produktpresentationer: Business Unit Media och Business Unit Disposable Devices Embryo biopsy with OCTAX laser technology Dr. Klaus Rink, Business Unit ART Equipment, Strategic Product Development Time-lapse EmbryoScope+ Dr. Niels B. Ramsing, Business Unit Time-lapse, Strategic Product Development 2
LEADING COMPANY IN MEDICAL DEVICES FOR ASSISTED REPRODUCTION A Swedish company Founded in 1994 About 360 employees Sales 771 MSEK* 97% on export Listed on NASDAQ Stockholm Mid Cap 3 * Rolling 12 months
WITH FOCUS ON SUPPORTING CLINICS IN BECOMING SUCCESSFUL MEDIA INSTRUMENTS LABWARE TIME-LAPSE EQUIPMENT Support clinics to reach Clinical results Financial results 4
5 10 15 % OF ALL COUPLES IN FERTILE AGE SUFFER FROM INFERTILITY
VITROLIFE IN THE VALUE CHAIN The couple in need of treatment The IVF clinic Pharmaceutical suppliers Medical device suppliers 6
THE IVF-PROCESS VITROLIFE PRODUCTS HORMONE TREATMENT Hormone stimulation to increase the number of retrievable eggs
SNAPSHOT OF VITROLIFE PRODUCT OFFERING 8
SUMMARY JANUARY JUNE 2016 Sales of 395 MSEK (347) equals +14% in SEK Sales growth +15% in local currency EBITDA of 136 MSEK (34% margin) Acquisition of OCTAX and MTG New organisational structure Consolidation of time-lapse business to Denmark Introduction of EmbryoScope + and broadening time-lapse product portfolio Launch of new range of aspiration needles for oocyte retrieval 9
Acquisition of OCTAX and MTG ACQUISITION OF OCTAX AND MTG TRANSACTION RATIONALE Broaden product offer towards customers in a market segment with rapid growth Stronger market position Build a base for better support and sales in Germany Access to knowledge and competence Shared development opportunities between business units 10
SALES AND GROWTH PER MARKET REGION SHARE OF VITROLIFE S SALES ROLLING 12-MONTHS 17% 44% 39% JAN-JUNE GROWTH RATE COMPARED TO LAST YEAR IN LOCAL CURRENCY -4% +6% +35% Total 14% 11
MARKET CONTRIBUTION PER REGION JAN-JUNE MARKET CONTRIBUTION COMPARED TO LAST YEAR 33 MSEK (31) 80 MSEK (73) 75 MSEK (55) JAN-JUNE MARKET CONTRIBUTION IN RELATION TO SALES 50% 46% 48% Total 48% 12 Market contribution = Gross income minus selling expenses
KEY FINANCIALS GROUP Q2 Income included one-time expenses of SEK 3 million related to time-lapse consolidation. Income included transaction-related expenses of SEK 2 million related to OCTAX/MTG 2016 Q2 2015 Q2 2016 Q1-Q2 2015 Q1-Q2 2015 FY Sales, MSEK 208 184 395 347 722 Gross Margin % 66% 66% 66% 66% 67% M&S / Sales % 19% 19% 18% 20% 19% Admin / Sales % 12% 12% 12% 12% 11% R&D / Sales % 7% 8% 7% 8% 8% EBITDA, MSEK 74 62 136 116 279 EBITDA Margin % 35% 34% 34% 33% 39% Cash flow from operations, MSEK 46 31 56 40 194 Earnings per share, SEK 2.21 1.77 3.98 3.38 8.42 Net Debt / EBITDA rolling 12m -0.1 0.0-0.1 0.0-0.5 13
THE SHARE SEK / SHARE Vitrolife Listed on NASDAQ Stockholm Mid Cap XVIVO distributed October 1, 2012 and listed on First North at 19.80 SEK Market value: ~10 355 MSEK MAJOR SHAREHOLDERS August 31, 2016 OMX Index 1. Bure Equity AB 21.7% 2. William Demant Invest A/S 19.4% 3. SSB CLIENT OMNIBUS AC OM07 6.7% 4. SEB Investment Management 3.5% 5. Eccenovo AB 2.5% 6. State Str Bank & Trust Com 1.4% 14
LARGE REGIONAL DIFFERENCES ON NUMBER OF IVF CHILDREN BORN IVF INFANTS PER NATIONAL BIRTH % 15 Source (2010): http://www.ncbi.nlm.nih.gov/pubmed/24304902, http://www.eshre.eu, Vitrolife research
DRIVERS FOR FUTURE GROWTH PATIENTS MARKET TRENDS INCREASED PURCHASING POWER RIGHTS TO TREATMENT Parents mean age is increasing Social acceptance to do IVF Value per cycle increasing through better technologies Consolidation of IVF clinics Growing middle class Changes in reimbursement Patients increasingly becoming more involved in their treatment Biosimilars / generica for hormone treatment Governmental / regulatory involvement More cycles from one oocyte pick-up 16
VITROLIFE TOGETHER. ALL THE WAY Vision with a purpose To fulfil the dream of having a baby Distinct business goal To become the world leading supplier of medical devices for assisted reproduction Delivering financial value ANNUAL GROWTH 20% EBITDA MARGIN 30% NET DEBT/EBITDA <3 Business Units Focused business strategy to become global No 1 in IVF Market Regions Media Disposable devices Time-lapse ART Equipment Focus 1: Fundamental Structure Scalable global organization Common culture and working procedures Focus 2: Sales Development Excellence in sales Selling solutions Focus 3: Product Offer Competitive product portfolio Cross Company Synergies Focus 4: Operational Excellence Excellence in research and product development Excellence in supply chain and manufacturing Focus 5: Extended Capabilities Strategic acquisitions Strategic collaborations EMEA Asia & Pacific Americas INTERNAL EXTERNAL Solid growth platform with global functions based on 20 years of IVF experience 17
Our goal is to become the world leading supplier of medical devices for assisted reproduction 18
Contact: Thomas Axelsson, CEO, taxelsson@vitrolife.com, +46 31 721 80 01 Mikael Engblom, CFO, mengblom@vitrolife.com, +46 31 721 80 14