investors presentation - supersonic imagine · philips, philips medical systems ... buoyant success...
TRANSCRIPT
Investors Presentation
September 2015
An experienced leadership team
2
Jérôme Destoppeleir
Kurt Kelln
Philippe LutmanClaude Cohen-Bacrie
Jacques Souquet, PhD
Executive VP and COO
Executive VP at Océ (Canon Group)
Executive VP, CEO EMEA and Latin America,
Philips, Philips Medical Systems
CEO KMD, Kommunedata
Tom Egelund
Executive VP, Founder and Chief
Innovation Officer
Former CEO SuperSonic Imagine
Former CTO ATL & Philips Medical Systems
Past and Present Board Membership: SonoSite,
Median, X’Counter
Member of the French Academy of Technologies
Executive VP, Founder and CTO
Former lead of Ultrasound activities at
Philips Research
Holds 15+ Medical Imaging Patents
Board Member EyeTechCare
Executive VP and CFO
Former VP finance at Homair vacances
Former VP finance at PGA motors
Former VP finance at Delta Plus and ONET
20+ years listed companies experience
Executive VP of Sales and Marketing
Former VP of Sales and Marketing for Ultrasound
and WHC, Philips Healthcare
20+ years sales and marketing leadership
experience
Executive VP, Chief Customer Fulfilment
Officer
COO at Acteon (Dental and Medical Imaging)
Board Member Vodasystems
Former CTO at Sybase365
Former Marketing Director at Gemalto
Supersonic Imagine: better cancer diagnosis / screening and vascular pathologies detection
Provide unique clinical solutions to address patient, clinicians / customers and payers needs
Capture growth from emerging geographies and dedicated clinical specialties
Address specialized markets to maximize our platform’s technological value
Strategic vision
Become a major player in premium and compact innovative ultrasound
in 5 years in meaningful geographic markets
4
Concrete opportunities in a huge estimated $5.8bn market for a well reimbursed modality
New generation ultrasound platform for malignancy diagnosis with major clinical improvement
First significant innovation in ultrasound in 15+ years
Strong incentive for all stakeholders (patients, physicians, hospitals, healthcare systems)
1,150+ machines in 50+ countries
SuperSonic Imagine: a dedicated 100% ultrasound player
5
General Radiology, Hepatology
A rapid development on the ultrasound market
SuperSonic Imagine: snapshot on a successful French MedTech story
*Including own and shared patents
6
MUSCULO SKELETAL
Strong performance
in Israel
9 systems installed in
the Paris Radiology
Institute
(IRP)
Winner of the “Breakthrough
Technology Designation” award
Appointment of Tom
Egelund as Director of
Operations
Michael Brock
joins he
supervisory
board as Vice
Chairman
Clinical trial to
confirm the
benefits of its
technology on
dense breast
tissue
Exclusive
distribution
agreement with
Konica Minolta, Inc.
Collaboration to develop a
photo-acoustic and
ultrasound imaging device
Regulatory approval in 54
countries
BREAST
LIVER
THYROÏD
PROSTATE
CLINICAL INDICATIONS
REGULATORY / CORPORATE
2005 IPO 2014
2015
Japanese regulatory approval
Herman RequardtSupervisory Board’s
Independent Strategic Advisory
LIVER
Positive results for the clinical trial confirming
the technology’s medical benefits
1,150+ machines in 54 countries in 6 years and half years
Solid installed based of prestigious hospitals worldwide
28%45%
27%
EMEA
APAC (Asia-Pacific)
Installed base geographical breakdownat 6/30/2015
7
Installed base growth over 5 years
North America
Reference customers
No license required
Approved
64 209 352541
773+1,000
+1,150
2009 2010 2011 2012 2013 2014 H1 2015
Significant innovations in the medical ultrasound imaging industry
Patented software platform:Essential leverage in the design of innovations
9
Aixplorer, a generation ahead on the premium segment
MODE2D B-mode - 3D B-mode
Doppler: Color, PW ARFI, Static Elastography
Up to 32x multiline
Radiology - Cardiology – Vascular - OB/Gyn
POWER
APPLICATIONS
Ultrafast ShearWave Elastography
3D Elastography
256x multiline
RadiologyVascular
Specialty medicine
GLOBAL PERFORMANCE
Breakth
ro
ug
h t
ech
no
log
y
HARDWARENo significant innovation for 15 years
SOFTWARESignificative innovation
New real time imaging modes to surpass existing mode performances
New imaging techniques
Regular updates
Excellent image quality in B-mode
Overcoming imaging limitations of HW based systems
Hardware
Patented software: SonicSoftware™
Conventional Imaging
Ultrafast™ Imaging
capture of 20,000 images / second(c.200 times faster than conventional ultrasound)
Hardware processing 1 received signal per transmit beam
Multiple HW boards (~10~ 15)
Software processingGPU
All RF lines of the image
10
Supersonic ShearWave Elastography: the only real time implementation
Fibroscan
Liver
Single shot average measurement
Supersonic Imagine
Real timemeasurements over
the entire image
Breast, Liver, Thyroid, Prostate, Gyn, MSK
Siemens, Philips
Liver
Breast (WIP)
Single shot line measurement
MRI elastography
Offline image computation (30 minutes)
Liver
Prostate Liver
11
Mean velocity in a colour coded representation
Quantification of velocity in 1 given location
Improved colour imaging and quantification of flow velocity everywhere
Imaging
OR
Quantification
Breaking the compromise betweenflow imaging and flow quantification
How Ultrafast™ Doppler changes the rules of the game
High sensitivity and acquisition speed
high quality visualization of flows
significantly simplified and shorter doppler exams
Conventional Doppler Ultrafast Doppler
Imaging QuantificationAND
12
AND
AND
I Main terms of the offering
Strong clinical positioning on main applications in radiology
PROSTATE Effective biopsy guidance
VASCULAR Quantitative imaging of vascular function
BREAST Reduce the number of unnecessary biopsies
LIVEREnabling fibrosis assessment without
biopsies
Clinically-proven improvement of cancer diagnosis strategyand vascular function assessment
13
MUSCULO-SKELETAL
Real-time visualization of anatomical and
functional image of the muscle during the
effort
Clinical strategy: all clinical frameworks and applications
Prostate
Increased sensitivity (100%) for prostate
cancer screening (Barr et al.) Role of SWE in targeting of prostate biopsies to increase detection
Improved characterisation of prostate cancer nodules
(Correas et al.) SWE better than Colour Doppler and CEUS*
* CEUS = Imagerie de contraste ultrasonore
14
Breast
Improved diagnosis
better classification of lesions between BI-RADS 3 and BI-RADS 4
Allowing breast screening
focus on dense breast in Asian countries
Improving therapy monitoring
Tumour volume & monitor treatment
BI-RADS 3 BI-RADS 4
BI-RADS 4 BI-RADS 3
Musculo-Skeletal
Non invasive fibrosis assessment
SWE surpasses FibroScan on Hep B / Hep C patients
(Ferraioli)
Ultrasound all-in-one solution
(Fibrosis, Cirrhosis, HCC)
Liver
SWE Aixplorer depending of
metavir
FibroScan depending of metavir
Improved diagnosis
Sensitivity and accuracy of the color Doppler
Spatial resolution and contrast (image quality mode B)
Optimal ergonomics
H1 2015 main events
Changes within the Management and Supervisory Board
16
Supervisory BoardManagement Board
Jérôme DestoppeleirChief Financial Officer
Philippe LutmanChief Customer Fulfilment Officer
Tom EgelundManagement Board President
Brad Garrett
Gordon Waldron
Jacques SouquetChief Innovation Officer
Michael BrockSB Vice-President
Ex-CEO BK Medical
Bernard Daugeras
Auriga Partners Repr.
Bernard DoorenbosInterim President of the SB
Ex-MD of Axxicon Group, Neways
Electronics, Vilenzo International…
Hans Barella
SB Ex-President
Hermann RequardtIndependant Strategic Advisor
Ex-MD of Siemens Healthcare dép.
Corporate Technology
US distribution strategy evolution
17
Direct distributionDirect
distribution
Exclusive distribution partnership
10 employees (sales + apps)
+
3 employees max per services
PROSTATE
BREAST LIVER
MSKPROSTATE
BREAST
LIVER
MSK
2014Sept. 2015
+
APAC (1/2): Japanese regulatory approval
18
In Japan, Aixplorer is commercialized by the Japanese market leader, Konica Minolta, via an exclusive distribution agreement signed in January 2015
Kazuyoshi Hata, Healthcare Business Unit President, Konica Minolta and Jacques Souquet, Chief Innovation Officer, SuperSonic Imagine at JSUM
Buoyant success Aixplorer presentation by Konica Minolta to the medical community
during the annual scientific meeting of the Japan Society of Ultrasonics in Medicine
(JSUM), Tokyo, May 22 – 24, 2015.
Strong growth dynamic in China
APAC (2/2): Strong commercial ramp up in China
Regional organization with dedicated sales managers by area
Creation of a society dedicated to tenders (WFOE)
19 distributors
19
Well structured organization
+124% for H1 2015
28% of H1 2015 sales
(vs. 13% for H1 2014)
Multi distributor covered province
Current office locations
May consider author solo Distributor per province
Provinces covered by whole distributor
2014 expected office locations
Distribution network in China
Representative office in Beijing
H1 2015 finances
7,400 7,440
719 811
H1 2014 H1 2015
Products Services
A growth primarily driven by Asia
Sales increase during H1 2015
21
(‘000 euros)
8,251
H1 2015 sales changes by business activities
+13%
+1% H1 2015 sales distribution by business activities
90%
10%
Products Services
8,119 +2%
H1 2014/2015 sales geographical distribution
Asia
34%
Americas
26%
EMEA
40%Asia
43%
Americas
20%
EMEA
37%
H1 2014 H1 2015
Financial results for H1 2015
22
(1) Gross margin on sales = Sales – Cost of sales(2) Gross margin as a % of sales = Gross margin on sales / Sales
Thousands of euros H1 2015 H1 2014 Changes (%)
Sales 8,251 8,119 +1.6%
Other revenue 491 1,097 -55.2%
Total revenue 8,742 9,216 -5.1%
Cost of Sales -4,908 -5,039 -2.6%
Gross Margin 3,834 4,177 -8.2%
Gross Margin on Sales1 3,343 3,080 +8.5%
Gross margin as a % of sales 2 40.5% 37.9% +2.6 pts
Current Operating Result -7,041 -4,399 -60.0%
Operating Result -7,041 -4,718 -49.2%
Financial Result 151 -208 +172.6%
Net profit/(Lost) -6,951 -4,973 -39.8%
Gross Margin on Sales H1 2015: +2.6 points at 40,5% (vs. 37.9% in H1 2014)
Efforts to improve margins through production relocation in Malaysia + positive currency effects
Operating Result: -60% to €-7.0m (vs. €-4.4m)
Significant increase in general and administrative costs (x2 in 1 year). The company has not record any operating costs
Net profit at €-7.0m (vs. €-5.0m as of June 30, 2014)
Thousands of euros 6/30/2015 6/30/2014
Intangible assets 8,522 7,464
Tangible assets 1,438 1,279
Other non current assets 2,387 2,509
Total Non current assets 12,347 11,251
Inventories 6,424 4,234
Trade Receivables 7,479 8,417
Other current assets 5,845 5,809
Cash & cash equivalents 30,987 42,204
Total current assets 50,735 60,664
Total Assets 63,082 71,915
Shareholders equity 44,278 51,062
Financial liabilities (LT) 5,600 5,562
Other Non current liabilities 1,072 1,080
Total Non current liabilities 6,672 6,643
Financial liabilities (short term) 3,021 3,021
Account payable 4,165 4,525
Other current liabilities 4,947 6,664
Total current liabilities 12,133 14,210
Total liabilities 63,082 71,915
Balance Sheet as of June 30, 2015
23
Cash: €31.0m
€30.9m available
€0.1m as Other non current assets
Change in trade receivables (excluding other income): +14% against +17% for sales
Balance of outstanding receivables not impaired: €798 million ( against €957 million at the end of 2013 )
Of which €693 million collected in January and February 2015
Capital increase of €39.3m (IPO & results for the period)
Comments
1 Estimate in the US
Structured sales organization’s summary
Offensive sales approach to catch worldwide growth:all clinical applications everywhere
Specific approach through a
representative office in Beijing
Recruit and manage a network of agents and
dealers
Exclusive distribution
agreement with Konica Minolta ,
Inc. in Japan
Representative OfficeDirect distribution Indirect distribution
24
Distributors covering EMEA , Latin America and Asia
(excluding China)
Strong potential for developing medical devices or equipment
renewal
I Main terms of the offering
Strategy and Outlook
A clear development strategy
26
Set up a real differentiation strategy compared to the majors
Become a reference in some specialized indications with strong commercial potential…
…and capitalize on this differentiation in order to better enter the General Imaging segment
LIVER PROSTATEBREAST
Materialize specialized indications’ technologic advantage into competitive advantage by creating leading positions
Recover a good dynamic in the US
Continuing growth in Asia
Geographical commercial expansion
A newly defined distribution strategy
27
Continue the reinforcement of direct sales forces
Validate the last years success by adjusting our product line
and prices
Priority Regions
China
• 30 + 2 dedicated to Services• 19 distributors
France
• 7 + 8 dedicated to Services• 3 distributors
Continue to invest in the actual structure
+
Clinical trials in progress(12 sites - breast / 9 sites - liver)
North America
• 11 + 3 dedicated to Services2 distributors
High growth potential in premium / high-end
Short term action plan
28
Increase investments on 1 or 2 special indications
Focus on short term milestones taking advantage of the existing Aixplorer platform
Take immediate measures in order to boost the global growth:
• Specific actions regarding the price positioning in Europe and the US.
• Dedicate important efforts to our penetration strategy on breast cancer and hepatology markets in France and in the US
• Develop the Urology indication in Germany
• Increase the number of sales representatives in the US from 4 to 7
PLATEFORM B
Development of next generation modular platform
Platform B : reinforce strategic advantages of Aixplorer
Mobile compact
Shared service
Premium / High end
29
Tablet
Docking station Cart
Shell for tablet
Docking station for tablet
Complete system
Electronic acquisition card
Computing power
Power
Engine
Mechanical
enclosure
Probes
1
2
3
At the cutting edge of innovation by addressing new clinical applications
Source: In Medica (2013) 30
Complete clinical value on current application and create promising perspectives by leveraging the technology
Premium / high-end
Mid-range(shared service)
Specialty(Compact)
Breast / Thyroid
Liver /Abdomen
Prostate / Gyn.
Pediatric
+ Trans Cranial Doppler
+ Obstetrics
+ Urology
+ Screening and Therapy
+ Urology
+ Hepato/Gastro
Wider penetration of care centers (Compact)
Vascular+ Cardiology
Radiology and shared service
2017-2022 2013-2016
2 connectors
2012
Hepatology
Vascular labs
4 connectors Product line
+ Musculoskeletal
Capture c.7% market share of the total ultrasound industry in 10 years
Achieve a gross margin of c.60% in the mid term
Achieve an EBITDA margin of c.20% in the mid term
Reach EBITDA break-even within 4 years
Financial objectives
31
I Main terms of the offering
32
SuperSonic Imagine in the Market
* Including Management and employees
Market Cap: €60m (09/11/2015)
Analyst Coverage
Guillaume CUVILLIER
Romain ZANA
Patrick JOUSSEAUME
Sébastien MALAFOSSE
SuperSonic ImagineJerome Destoppeleir
Chief Financial Officer+33 4 88 19 68 55
NewCapInvestor Relations & Financial
CommunicationFlorent Alba / Pierre Laurent
+33 1 44 71 94 [email protected]
Shareholding Structure as of July 31, 2014 Financial Calendar
Contacts
Event Date
2015 First-Quarter Sales April 21, 2015
Annual General Meeting May 29, 2015
2015 First-Half Sales July 21, 2015
2015 First-Half Results September 14, 2015
2015 Third-Quarter Sales October 20, 2015
2015 Full-Year Sales January 19, 2016
Others
40%
EDRIP
12%
Auriga Partners
10%
Omnes Capital
11%
Caisse Des
Dépôts
10%
Bpifrance
Investissements
9%
NBGI Private
Equity
8%