Collagen Solutions Plc Jamal Rushdy, CEO Growth & Innovation Forum 2017 January 2017
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Overview Opportunity Multiple growth initiatives create potential for 5x+ revenue within 5 years Market $1.5bn+ biomaterials market opportunity growing 10%+ Core Business Stable recurring sales from collagen and tissue-based biomaterials and devices Finished Device Pipeline Pipeline of finished devices with owned I.P. for commercialisation via distribution and licensing Growth Recently reported 6 month interim results 1.9m sales/other income, +30% on prior year 3
Core Business Products & Services Medical Grade Collagen Pericardium & Other Tissues OEM & Development Services Research & tissue engineering Dental membranes Cartilage scaffolds Heart valves Soft tissue mesh Wound scaffolds Bone graft substitutes Cell therapy carriers 4
Stable Global Core Business Set for Growth Core Business Growth Model Development and prototypes to supply and manufacturing Revenue is sticky Switching costs are high New commercial team and distribution Geographically expand Current customer base demographics USA, Canada, Northern Europe, Middle East, South Korea Diverse mix from early/pre-revenue to $1B+ Applications in orthopaedics, cardiovascular, wounds, dental, research, and tissue engineering 5
Finished Device Pipeline ChondroMimetic Cartilage Repair Fibrillar Collagen Wound Treatment Bone Graft Substitutes Bone Regeneration Previously used in Europe, 6+ years evidence in patients Retro study and CE mark in process, targeted for 1H 2017 Potential to address multiple markets in wound care and burns Target wound market clearance in 2018 Provisional patent filed December, 2016 Target orthopaedic market clearance in 2018 6
ChondroMimetic Osteochondral Plug Scaffold for treatment of cartilage defects Highlights Chondral layer: collagen/glycosaminoglycan Osseous layer: collagen/glycosaminoglycan/ calcium phosphate Addresses clinical need for clinically and cost effective alternative to current standards of care ChondroMimetic advantages: Single surgery Cost effective Address both cartilage and underlying bone Previously used in Europe, 6+ years evidence in patients Retro study and CE mark for OUS launch in process, targeted for 1H 2017 Enhanced MRI image from original pilot study showing 10 day and 6 month results. 7
Multiple Growth Drivers 5x+ 3.2 0.02 0.1 1.0 1.5 1.9 FY 2014 FY 2015 FY 2016 FY 2017 Sales and other income (millions) 6 Mos Full Year Sales channels, geographic expansion, OEM mix Current finished device pipeline + licensing/distribution Next stage pipeline + licensing/distribution 8
Summary Strategy addresses a significant opportunity $1.5bn+ biomaterials opportunity Core supply and development business to grow through focused execution Stable core business, embedded revenue Pipeline of owned products for license and distribution Cartilage, bone, wounds Commercial and R&D investments for sustainable growth Goal of 5x sales in 5 years 9
Our Vision To become the industry s first choice for regenerative biomaterials 10
Thank You
Appendix: Six months ended 30 September 2016 Financial KPIs Gill Black, CFO 12
Embedded customers driving revenue growth 1.04m Year Ending 31 March 2015 3.24m Year Ending 31 March 2016 1.46 1.78 1.89 0.89 0.02 0.14 31-Mar-14 30-Sep-14 31-Mar-15 30-Sep-15 31-Mar-16 30-Sep-16 Six month revenue & other income trend 13
Financial KPIs Revenue & Other Income ( ) Gross Profit ( ) Gross Margin (%) 1,460,218 1,891,001 1,090,856 1,305,150 83.2% 75.7% 143,213 119,023 71.3% 30-Sep-14 30-Sep-15 30-Sep-16 30-Sep-14 30-Sep-15 30-Sep-16 30-Sep-14 30-Sep-15 30-Sep-16 14
Financial KPIs LBITDA* ( ) 30-Sep-14 30-Sep-15 30-Sep-16 (79,376) EPS (p) 30-Sep-14 30-Sep-15 30-Sep-16 (0.26) Cash and Equivalents ( ) 3,104,230 (522,144) (0.60) 1,657,193 (712,537) (0.88) 927,094 *Before separately identifiable items: 30-Sep-14 30-Sep-15 30-Sep-16 2016: Unrealised translation losses on deferred consideration - 294,229 debit 2015: NIL 2014: NIL 15
Revenue by geographic region 6 months ended 30 September 2016 Revenue by region 2015 Revenue by region 36% 54% 39% 59% 10% 2% North America EMEA Asia Pacific North America EMEA Asia Pacific 16
Revenue by activity 6 months ended 30 September 2016 Revenue by activity 2015 Revenue by activity 35% 29% 7% 58% 7% 64% Contract Manufacturing Development Materials Contract Manufacturing Development Materials 17