vitrolife ab (publ) · poland united states. age is a critical factor for success. ... treatment...
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VITROLIFE AB (PUBL) Pareto Securities Health Care Conference
2018-09-06
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10–15 % OF ALL COUPLES IN FERTILE AGE SUFFER FROM FERTILITY PROBLEMS
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LEADING COMPANY IN MEDICAL DEVICES FOR ASSISTED REPRODUCTION
3 * Rolling 12 months
A Swedish company
Founded in 1994
Approx 370 employees
Sales 1 064 MSEK*
97% on export
Listed on NASDAQ Stockholm Mid Cap
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AN INCREASING TREND OF DELAYING FIRST BIRTH
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Source: UNECE Statistical Database. Data collected from Eurostat and UNICEF TransMONEE official sources
22
24
26
28
30
32
1980 1990 2000 2010 2014
Age
Spain
Sweden United Kingdom
Poland
United States
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AGE IS A CRITICAL FACTOR FOR SUCCESS
5 2015 Assisted Reproductive Technology, National Center for Chronic Disease Prevention and Health Promotion, Divison of Reproductive Health
Day 3 and Day 5 embryo transfers that resulted in live births by age
Percentages of ART cycles that resulted in miscarriage by age
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SUCCESS RATE ”STEP BY STEP”
6 2015 Assisted Reproductive Technology, National Center for Chronic Disease Prevention and Health Promotion, Divison of Reproductive Health
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*
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Hormone stimulation to increase the number of retrievable eggs
HORMONE TREATMENT
THE IVF-PROCESS – VITROLIFE PRODUCTS
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COST STRUCTURE FOR AN IVF CLINIC
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Comments
Salaries are the major cost
Sales & marketing is in other operating costs
Clinic chains have higher financial costs than non clinic chains
17%
10%
45%
26%
2%
Salaries 45%
Depreciation 1-3%
Purchase 8-12%
EBITA 25-30%
Other operating costs 15-25% (currently reconstruction cost or high financial cost to owner structure)
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Ensure staff are well trained
Secure access to the latest know-how and technologies
Maximise clinic efficiency and reliability
Improve the financial results
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WITH FOCUS ON SUPPORTING CLINICS IN BECOMING SUCCESSFUL
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LARGE REGIONAL DIFFERENCES ON NUMBER OF IVF CHILDREN BORN
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ART INFANTS (EXCL. IUI) PER NATIONAL BIRTH %
Source: Data from 2013-2016
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Increased regulatory demands (higher barriers to enter)
Cooper has strengthened its position by acquisitions
Emergence of local players with domestic production in China and Japan
Kitazato emerging competitor in new areas
Time-lapse is increasing Pre-implantation genetic testing is
increasing Cryo-preservation is increasing Mild stimulation is increasing
Patients are more informed and involved as decision-makers
Growing middle class Parents’ mean age is increasing Social freezing is growing
Consolidation of IVF clinics Private equity owned clinic chains Increased demand for easy-to-use
products and workflow efficiency Mid-single digit growth in oocyte pick-
up cycles Higher revenue growth due to up-
selling
MARKET TRENDS
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PATIENTS
IVF CLINICS TREATMENT
COMPETITION
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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
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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
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SALES AND GROWTH PER BUSINESS UNIT
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+9%
-10%
-9% TIME-LAPSE
DISPOSABLE DEVICES
MEDIA
ART EQUIPMENT
Quarterly growth Local currencies
SEK millions, rolling 12m
469 482 500 519 536 543 545 543 562
134 136 139 142 148 150 148 151 149 146 148 160 178 209 233 254 271 267 3
20 39 56
78 80 78 80 65
0
200
400
600
800
1000
1200
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2016 2017
-61%
2018
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SALES AND GROWTH PER MARKET REGION
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Total -5%
Q2 GROWTH RATE COMPARED TO LAST YEAR IN LOCAL CURRENCIES
SHARE OF VITROLIFE’S SALES ROLLING 12-MONTHS 14%
+3%
25% 45%
* Whereof organic growth -1 percent
16%
+7% -26% +6%
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KEY FINANCIALS GROUP Q2
2018 Q2
2017 Q2
2018 Q1-Q2
2017 Q1-Q2
2017 FY
Sales, MSEK 283 285 547 529 1 046
Gross Margin % 66% 65% 66% 65% 65%
Adj. Gross Margin %* 70% 69% 69% 69% 69%
EBITDA, MSEK 116 112 222 207 408
EBITDA Margin % 41% 39% 41% 39% 39%
Earnings per share, SEK** 0.73 0.66 1.39 1.20 2.43
Net Debt / EBITDA rolling 12m -1.0 -0.5 -1.0 -0.5 -1.0
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• 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)
* Gross margin excluding amortisation of acquisition-related intangible assets ** Recalculated with regard to the 5:1 share split carried out in May 2018.
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THE SHARE
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• Listed on NASDAQ Stockholm Mid Cap
• Market value: ~13 billion SEK
• Share split on May 17 (5:1)
1. William Demant Invest A/S 22.2% 2. Bure Equity AB 20.8% 3. SSB CLIENT OMNIBUS AC OM07 7.1% 4. Lannebo Småbolag 2.9% 5. Eccenovo AB 2.1% 6. CBNY-NORGES BANK 1.9%
SEK / SHARE
Stockholm
LARGEST OWNERS 31 July 2018
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OUTLOOK
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Long-term market growth 5-10% in monetary terms
Expansion of sales
Broadening the product offering
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Contact: Thomas Axelsson, CEO, [email protected], +46 31 721 80 01 Mikael Engblom, CFO, [email protected], +46 31 721 80 14
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DISCLAIMER This presentation contains estimates and forward-looking statements, which reflect the Management’s current views with respect to the market, certain future events and financial performance. Although the statements are based upon estimates the Management believes to be reasonable, there is no assurance that these statements are correct or will be achieved. The most important strategic and operative risks regarding Vitrolife’s business and field are described in the Management report, in the Annual Report. These are primarily constituted by macro-economic risks, operational risks and financial risks.