C O M P A N Y P R E S E N T A T I O N J U L Y 2 0 1 8 WHO ARE WE? - - PowerPoint PPT Presentation

C O M P A N Y P R E S E N T A T I O N

J U L Y 2 0 1 8

WHO ARE WE?

• A MEDICAL IMAGING COMPANY WITH ULTRASOUND TECHNOLOGY

Unrivaled innovative technology

for ultrafast acquisitions and wholly software- based image formation

54 countries

Aixplorer product approved

172 employees

including 100 in France

23

patent families

Strategic focus

‒ Clinical: Breast and Liver ‒ Geographic: China, France, United States

64 209 352 541 773 1,000 1,300 1,600 1,900 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 5 000 10 000 15 000 20 000 25 000 30 000 500 1 000 1 500 2 000 Cumulative Installed Base Revenue

Revenue and Cumulative Installed Base

2

SOURCE: COMPANY

OUR MISSION

To become the standard in non-invasive care pathways for breast and liver diseases

3

INNOVATION IN RESPONSE TO A CLINICAL CHALLENGE

• A PROVEN TECHNOLOGICAL ADVANCE

UltraFast TM Doppler Significantly improved patient throughput (15 min vs. 50 min for vascular examination) Real time ShearWave Elastography (SWE™) Real-time, quantitative, any transducer and any organ Angio PL.U.S. – Planewave ultrasensitive Doppler Low flow rates in microvessels without contrast agents NEW! TriVu Real time B,SWE, Col+ simultaneous Real-time combination Anatomy and Function

SCREENING DIAGNOSIS THERAPY MONITORING

UltraFast™ Imaging Up to 20,000 images/sec

4

• MEASUREMENT OF A NEW

PARAMETER

• Tissue stiffness (objective,

reproducible, quantit.)

• Replaces manual palpation
• NO IONIZING RADIATION
• NON-INVASIVE EXAMINATION
• IMPROVED PATIENT

THROUGHPUT

• ULTRAFAST ACQUISITION
• 3D ACQUISITION

SOURCE: COMPANY

HIGH CLINICAL ADDED VALUE FOR A GROWING USER BASE

• GROWING BASE OF CLINICAL DATA

(+500 PUBLICATIONS IN PEER-REVIEWED JOURNALS)

• EXCELLENT WORLDWIDE NETWORK OF KEY

OPINION LEADERS (KOL)

• SWE INCORPORATED IN CLINICAL GUIDE

LINES (BREAST AND LIVER)

• SWE REIMBURSED IN MANY COUNTRIES
• VERY POSITIVE FEEDBACK CONCERNING

EASE OF USE

• MULTIPLE AND REPEAT SALES AT SAME SITE

AFTER INITIAL PURCHASE

• HIGH CLINICAL VALUE OF THE TECHNOLOGY

RECOGNIZED BY THE FDA: 510K CLEARANCE FOR LIVER DISEASES, INCLUDING FIBROSIS AND STEATOSIS 5

100 200 300 400 500 600 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Transformation

Technological Innovation Clinical Innovation

Cumulative total of publications with Aixplorer

SOURCE: COMPANY

LOCATIONS AND PARTNERSHIP

• SWITZERLAND, ITALY AND ISRAEL

UNDERGOING GROW TH

• CREATION OF A W FOE

IN SHANGHAI

• CLINICAL

ASSESSMENT OF BREAST AND LIVER IN CHINA

• PRESENCE IN KOREA,

TAIW AN, HONG KONG

• CANADA AND

MEXICO SENT FROM THE US

20%

Americas

390 systems (o/w 280 in the US)

52%

EMEA

980 systems (o/w 380 in France)

28%

APAC

530 systems (o/w >390 in China)

Americas/ APAC

EMEA

• MORE THAN 2,000 AIXPLORER SYSTEMS INSTALLED WORLDWIDE AND

NUMEROUS PRESTIGIOUS PARTNERS

6

FOCUS

(*): CLINICAL STUDY BE1

• CLINICAL APPLICATIONS ADDRESSING MAJOR PUBLIC HEALTH NEEDS

BROAD CLINICAL EXCELLENCE

• SPECIFICITY OF DIAGNOSIS: BENIGN/MALIGNANT
• OBJECTIVITY OF DIAGNOSIS: NOT OPERATOR DEPENDENT
• NO RADIATION
• MONITORING (EVOLUTION OF TUMORS)
• SCREENING OF DENSE BREASTS

(>35% WORLD POPULATION)

• SIGNIFICANT DECREASE IN UNNECESSARY BIOPSIES ( -47%)*

BREAST CANCER

• LEADING CAUSE OF CANCER IN

WOMEN: 1 IN 8 WOMEN

• INCREASE IN NUMBER OF CANCERS:
• contraception
• besity
• physical inactivity

LIVER DISEASES

• HEP. B & C – FIBROSIS
• 700 million people
• Increasing (diabetes, obesity)
• NAFLD – STEATOSIS
• 420 million people
• Increasing fast
• LIVER CANCER

Screening Diagnosis Monitoring

• SPECIFICITY OF DIAGNOSIS: STAGING OF FIBROSIS
• INTERVENTIONAL IMAGING FOR BIOPSIES
• CANCER SCREENING: BENIGN/MALIGNANT
• NON-INVASIVE FIBROSIS EVALUATION

(HEP B & C)

• STEATOSIS (NASH) DETECTION
• REDUCTION IN USE OF CONTRAST AGENTS (ANGIO PL.U.S)

7

CONTINUUM OF LIVER DISEASES

Healthy liver Simple steatosis NASH (Steatohepatitis)

Inflammation, ballooning

Fibrosis Cirrhosis Transplantation Liver failure Portal hypertension Hepatocellular carcinoma

GENERALIST RADIOLOGY GASTROENTEROLOGY HEPATOLOGY

Attenuation Speed of sound Viscosity

SWE PUSH FROM PHARMA COMPANIES

CRITICAL CARE

 Imaging and treatment of hepatocellular carcinoma (HCC)  Detection and treatment of complications (ascites, PTH, etc.)  Selection of patients for transplantation  Management and monitoring of patients

ANTIVIRAL THERAPIES

 Diagnosis of liver fibrosis  Prediction of cirrhosis complications  Selection of patients for treatment  Management and monitoring of patients

NASH THERAPIES

 Evaluation of liver steatosis  Detection of inflammation & ballooning  Diagnosis and evaluation of NASH

PREVENTION

 Early detection of non- alcoholic fatty liver disease (NAFLD)

SWE SWE SWE SWE Angio PLUS Angio PLUS UFD

8

A TEC H N OLOGY TH AT C AN BE R EPLIC ATED IN OTH ER C LIN IC AL APPLIC ATION S

New cutting-edge technological advances for targeted applications Principal clinical indications

Liver Perfusion  Beyond conventional Doppler without use

• f contrast agents

Vascular  Simultaneous imaging and quantification Prostate  Improved biopsy guidance Musculoskeletal  Improved diagnosis Breast

Perfusion  Visualization and evaluation of microvasculature  Diagnosis of hepatic lesions without use of a contrast agent Vascular  Measurement of pulse wave velocity indicating vascular elasticity  Improved work flow for quantifying blood flow rate for better evaluation

• f cardiovascular diseases

Prostate  Better analysis of nodules during early diagnosis  SWE helps to target prostate biopsies to reduce false negatives Musculoskeletal  Real-time visualization of anatomy and functional image of muscle and tendons

9

F I N A N C I A L D A T A

SOLID GROWTH IN 2017

• +11% sales growth (+13% constant

currency)

• Strong product (+10%*) and service

(+35%*) performance

• Tremendous growth in china (+33%*)

and France (+16%)

• 18%* decline in the united states
• Asia and EMEA regions improved

respectively by +29%* and +13% over the year

• Direct sales, which include china,

France and the united states, represent 64% of sales revenues in 2017, against 64% in 2016

In thousands of euros 2017 2016 Change (%) Products 21,827 20,073 +9% Services 2,869 2,143 +34%

TOTAL SALES 24,695 22,217 +11% SALES GEOGRAPHIC DISTRIBUTION

(*) =% at constant rate 5 104 21% 3 199 13% 7 487 30% 8 905 36% France US China RoW 4 403 20% 4 048 18% 5 797 26% 7 969 36% 10 816 44%

3 569 14%

10 310 42%

2017

EMEA America Asia 9 579 43% 4 446 20% 8 192 37%

2016 11

(1) GROSS MARGIN ON SALES = SALES - COST OF SALES (2) GROSS MARGIN ON SALES = SALES - GROSS MARGIN ON SALES/SALES

SIGNIFICANT EBITDA IMPROVEMENT

• INCREASE IN GROSS MARGIN AND SIGNIFICANT EBITDA IMPROVEMENT

 11% sales growth  gross margin rate on sales improvement: +1.7pt  control of OPEX with €21.0m vs. 20.9m in 2016  intensification of R&D efforts in accordance with next platform’s development phasing with €9.8m spent (€2.6m net of RTC and activation) vs €9.1m in 2016  EBITDA improvement of +€1.2m  improvement in the operating result with €(9.9m) vs. €(10.3m) in 2016 (-40% vs. -46%

• f sales)



• €2.2m decrease in financial result
• €0.9m for early Norgine loan repayment and interests on

repayable advance, non-recurring charge specific to 2017

• €0.8m due to exchange gain on 2016 and loss on 2017
• €0.4m due to rise in financial interests

In thousands of euros

31/12/2017 31/12/2016 Var.

Sales

24,695 22,217 +11.2%

Other revenue

• 1,023
• Total revenue

24,695 23,240 +6.3%

Cost of sales

• 13,608
• 12,628

+7.8%

Gross margin 1

11,088 10,611 +4.5%

Gross margin on sales 2

11,088 9,588 +15.6%

Gross margin as a % of sales

44.9% 43.2% +1.7pt

Research and development expenses

• 2,558
• 3,046

Selling and marketing expenses

• 12,341
• 11,987

General and administrative expenses

• 5,775
• 5,447

Other operating income/(expense)

• 294
• 403

Total OPEX

• 20,968
• 20,883

EBITDA

• 6,611
• 7,805

+15.3%

Core operating result

• 9,880
• 10,272

+3.8%

Operating result

• 9,880
• 10,272

+3.8%

Financial result

• 2,405
• 221
• Net profit/(loss)
• 12,247
• 10,555
• 16.0%

12

SOLID CASH POSITION

 Cash at December 31, 2017 amounted to €19m vs. €11.2m, representing a positive net cash change of +€7.8m  Sharp decrease in operating cash flow to €(4.6m) in 2017  Sustained investment in R&D with an increase in investment flows €(8.0m) in 2017  +€18.9m in additional cash related to financing operations in 2017: − capital increase in June 2017 − loan Venture in March and December 2017 − short-term financing of the WCR  +€2.0m reclassification of cash following repayment of the Norgine loan  €(0.5m) for the change in foreign exchange

• n cash

In thousands of euros

31/12/2017 31/12/2016 Cash flow from operations before change in the WCR (7 034) (7 201)

Inventories

45 870

Trade receivables and related accounts

(291) (628)

Other receivables

(52) 352

Research tax credit and operating subsidies

(550) 344

Trade payables and other liabilities

2 627 (2 609)

Income tax paid

44 (157)

Change in the WCR

2 404 (1 828) Cash by operating activities (4 629) (9 029) Cash by investing activities (7 979) (5 062) Cash by financing activities 18 853 (3 832)

Change in cash during the year

6 244 (17 923)

Reclassification loan repayment 2,000

• Change in exchange rates on cash

(477) (303) Cash and cash equivalents at end of year 19,017 11,250

13

BALANCE SHEET

In thousands of euros

31/12/2017 31/12/2016

Non-current assets

19,035 16,044

• /w intangible assets

14,158 12,333

• /w property, plant and equipment

4,443 1,330

• /w non-current financial assets

434 2,381

Current assets

37,148 29,691

• /w cash and cash equivalents

19,017 11,250 TOTAL ASSETS 56,183 45,735

Equity

25,591 27,305

Non-current liabilities

12,682 4,357

• /w long-term financial liabilities

11,294 3,037

• /w provisions and other non-current liabilities

907 834

Current liabilities

17,910 14,073

• /w short-term financial liabilities

7,034 5,135

• /w provisions and other current liabilities

5,650 4,576 TOTAL LIABILITIES 56,183 45,735

14

H 1 2018: C ON TIN U ED GR OW TH MO MEN TU M

CONFIDENTIAL - 18.07.18 SOURCES : COMPANY

 At constant exchange rates, sales grew by +15% in H1 2018  8th straight quarter of growth  Solid performance of products (+11%*) and

• f services (+40%*)

 Buoyant growth in China (+51%*) and in the United States (+23%*)

In thousands of euros H1 2018 H1 2017

• Var. (%)

Products 9,487 9,030 +5% % of total revenue 85% 88% Services 1,693 1,262 +34% % of total revenue 15% 12% TOTAL SALES 11,180 10,291 +9%

15

1,504 13% 1,504 13% 4,298 38% 3,874 36% France US China RoW 2,246 22% 1,347 13% 3,170 31% 3,527 34% 4,509 40%

1,599 14%

5,073 45%

H1 2018

EMEA America Asia 4,718 46% 1,411 14% 4,162 40%

H1 2017

SALES GEOGRAPHIC DISTRIBUTION

(*)= % at constant rate

SUPERSONIC IMAGINE’S STOCK MARKET PROFILE

Ownership structure (Dec. 31, 2017) Market data

• Ticker: SSI
• ISIN Code: FR0010526814
• Market: Euronext Paris
• Index: CAC All Shares
• Share price: €2.34 (July 17th, 2018)
• Number of shares: 23,416,627
• Market capitalization: €55m (July 17 th, 2018)

Others 46% EPIC Bpifrance / Groupe CDC 27% Andera Partners 9% Auriga Partners 7% NBGI Private Equity 4% Omnes Capital 2% Mérieux 5%

Analyst coverage 2018 financial calendar

Events Date

2018 First-Half Results September 11, 2018 2018 Third-Quarter Sales October 17, 2018

• Xavier Regnard
• Guillaume Cuvillier
• Damien Choplain

16

SOLID STRENGTHS IN A FAST GROWING MARKET

SOFTW AR E AR C H ITEC TU R E U N D ER PIN N IN G FU TU R E IN N OVATION S

• A BUSINESS MODEL FOCUSED ON MAXIMIZING MARGINS

The real innovation is the software Exclusively software-based architecture delivering:

1.

less complex updates

2.

more straightforward and more rapid maintenance

3.

more effective image analysis

4.

less expensive data storage

More profitable…  Lower product localization costs  Lower cost of goods sold: more rapid profitability  Centralized system for maintenance and support … and delivering higher margins for the service  Annual software subscription charge generating recurring revenue streams  Operating system update  Big data analysis of patient data  Connected and smart imaging systems  Remote connection  Personalized therapies

The future: connectivity, Big data and Deep learning

Paradigm shift based on diagnostics of the future–Cloud connection enabling real time comparisons with image databases

18

AIXPLORER MACH 30: NEXT-GENERATION PRODUCT

• FRUIT OF A MULTI-YEAR R&D PROGRAM

Aixplorer Mach

Develop a product family Cardiological module for shared service Strengthen our position in the premium/High end segment Significant reduction in equipment costs FURTHER R&D INVESTMENT (€27 million between 2015 and 2017) ODM sale of the platform  Increase the competitive advantage over the competition:

• greater computing power
• larger software share than on the Aixplorer
• ergonomics and design (easy-to-use UI)

 Structure ready for Big data and Deep learning  Remote access for service and upgrades  Innovative new imaging modes  New clinical applications  Extension of clinical parameters for NASH (work performed by Prof Vilgrain in Beaujon Hospital and

• Prof. Correas in Necker Hospital)

19

AIXPLORER MACH 30: 3 PILLARS SUPPORTING THE ARCHITECTURE

Innovation

Unique Ergonomic

Next Generation

Engine New Ultrasound performance

 Ultrasound engine on a single board  12x more computing efficiency compared to previous generation  Up to 5x speed increase in Ultrafast Doppler  Overall better penetration even at high frequency  Reduced power consumption

New product Design

 Brand new UIF concept  Extreme ease of use with the new Intuitive Sonic Pad  Optimized workflow to speed exam time

New intelligent modes

 Higher frame rate elastography  Development of new Liver disease biomarkers  Platform ready for AI and deep learning

20

MACH 30: FROM 1 TO FULL SET OF NEW BIOMARKERS

Stiffness Stiffening Viscosity

• Q. Vascularization

Blood Pressure US Speed of Sound US Attenuation US Multidiffusion US Non linearity Stiffness

Probability of developing a NASH disease :

80%

21

OUR ADDRESSABLE MARKET 13.0%

Market share

(**): SNITEM data and 2016 market share

France

(***): ACR and AASLD data

€143 million

Echography**

€22 million

Premium Radiology**

€42 million

Radiology**

4.0%

Market share

China

$230 million

Addressable market (2016)

$700 million*

6,900 hospitals

$430 million*

1,990 hospitals

2.5%

Market share

United States

$60 million

ACR-listed women’s imaging centres*

590

sites

$100 million

Hepatology specialists**

1,500

sites

(*): IHS Technology report - 2014 - Ultrasound in China

$420 million*

10,000 hospitals

22

OUR COMMERCIAL ORGANIZATION TODAY

• REGULATORY APPROVAL ACHIEVED IN 54 COUNTRIES
• DIRECT SALES IN FRANCE, THE UNITED STATES AND CHINA
• OTHER MARKETS COVERED BY DISTRIBUTORS

United States

• 4 DIRECT SALES STAFF

2 CLINICAL SUPPORT STAFF 2 SERVICE STAFF

• LIVER DISTRIBUTOR

(SANDHILL): 24 SALESPEOPLE

• DISTRIBUTOR IN CANADA AND

MEXICO

France

• 6 DIRECT SALES STAFF

4 CLINICAL SUPPORT STAFF 5 SERVICE STAFF

• LIVER DISTRIBUTOR:

4 SALESPEOPLE

• DISTRIBUTOR TO REUNION

ISLAND, MARTINIQUE AND NEW CALEDONIA

China

• 27 DIRECT SALES STAFF

7 CLINICAL SUPPORT STAFF 5 SERVICE STAFF

• 35 DISTRIBUTORS

OTHER COUNTRIES DISTRIBUTORS AND PARTNERSHIP WITH KONICA MINOLTA IN JAPAN 23

A CLEAR STRATEGY FOR GAINING MARKET ACCESS

• EXPAND OUR SALES COVERAGE
• CONTINUE CLINICAL TRIALS TO

CONSOLIDATE OUR POSITIONING

• INVEST IN CLINICAL MARKETING TO STRENGTHEN THE BRAND
• GAIN ACCESS TO NEW SEGMENTS W ITH THE NEW PLATFORM

(SHARED SERVICE)

• GAIN MORE REFERENCE SITE OF OUR PRODUCT
• PENETRATE NATIONAL ACCOUNTS, HOSPITALS AND CLINICS

REFERENCING PRODUCTS, ETC.

• STRENGTHEN OUR RELATIONSHIP W ITH KEY OPINION LEADERS

THROUGH REGIONAL W ORKSHOPS

• INVEST IN CLINICAL MARKETING TO STRENGTHEN THE BRAND
• CONTINUE W ITH CLINICAL TRIALS
• EXPAND OUR DIRECT SALES PRESENCE
• INVEST IN CLINICAL MARKETING TO STRENGTHEN THE BRAND
• CLINICAL AND COST/BENEFIT RESEARCH
• STRENGTHEN OUR PRESENCE IN DEDICATED BREAST CENTERS
• ACCELERATE OUR PENETRATION IN HEPATOLOGY
• TRAINING CYCLES FOR HEPATOLOGY AND SENOLOGY

ULTRASOUND departments

China

RADIOLOGY departments

France

HEPATOLOGY & SENOLOGY

United-States

24

2018, AN INFLEXION YEAR PAVING THE WAY FOR PROFITABLE GROWTH

2017 2016 2009 2005 Technology Sales Clinical and geographical strategic focus  Margin improvement

• Objective of positive EBITDA for FY 2019
• Gross margin target of 50% in the medium term

 Process optimization  Improvement in the WCR  Higher productivity Operational excellence  Range effects  Installed base effects  Market share gains  New clinical applications  Connectivity Profitable growth

25