Company pany Pr Pres esenta entation tion August st 2020 020 - - PowerPoint PPT Presentation

Company pany Pr Pres esenta entation tion

August st 2020 020

Vision

2

We create value and contribute to improved life quality in Life Science

Introduction

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▪ Decentralised investment company in Life Science ▪ Value creation through active ownership ▪ 2 business segments: MedTech and Specialty Pharma ▪ Sales: 786 MSEK (c. 76 MEUR) ▪ Employees: ~ 280 ▪ Listed on Nasdaq Stockholm Small Cap

Home markets for portfolio companies Important export markets + Australia and the US

Net Sales

(rolling 12 months) 57% 43%

MedTech Specialty Pharma

59% 24% 16% 1%

Sweden Nordic Europé RoW

MedTech Specialty Pharma

About us Geographical split

First quarter (Q2 2020)

4

7 8 14 17 12 22 19 20 17 35 30 20 31 25 34

5 10 15 20 25 30 35 40 Q3 16/17 Q4 Q1 17/18 Q2 Q3 Q1 18 Q2 Q3 Q4 Q1 19 Q2 Q3 Q4 Q1 20 Q2

Financials Comments

▪ Sales growth in Q2 compared to previous year driven by both segments ▪ Group revenue growth in Q2 of 12% and EBITDA increased by 13%, excluding the effect of IFRS16 implementation of 6.7 MSEK ▪ Positive sales and profit development in the MedTech segment was driven by Cardiolex’ acquisition of Amedtec (from 1 Nov 2019) and Abilia’s acquisition of Somna (from 1 Feb 2020). The quarter was also negatively impacted by the continued weak development in Abilia’s Norwegian business (Covid-19 lock-down). ▪ Growth in sales and profit in Specialty Pharma compared to previous year. The development was mainly driven by strong market demand but also partly due to non- recurring sale of available stock to a logistics partner. The growth in the Nordic specialty pharma portfolio continues.

1

Net sales per quarter (MSEK) EBITDA per quarter (MSEK) 132 140 139 152 120 183 173 166 188 200 186 160 211 206 209

50 100 150 200 250 Q3 16/17 Q4 Q1 17/18 Q2 Q3 Q1 18 Q2 Q3 Q4 Q1 19 Q2 Q3 Q4 Q1 20 Q2

* * ** ** ** **

2 3 4

* Q3 2017/18: two months * * Excluding IFRS16 effect

** **

R12 update (development vs last year)

5

Financials

Net Sales vs. last year (MSEK) EBITDA vs. last year (MSEK)

* Excluding IFRS16

739 32 15 786 200 400 600 800 R12 Q2 2019 MedTech Specialty Pharma R12 Q2 2020 101,4 4,8 5,3

• 2,8

108,8 20 40 60 80 100 120 140 R12 Q2 2019 MedTech Specialty Pharma Other R12 Q2 2020

*

Comments

▪ Profit increased by 7% and sales by 6% compared to the equivalent period previous year ▪ Positive sales development in both MedTech and Specialty Pharma ▪ R12 EBITDA increased by 5% for

• MedTech. The development was mainly

driven by strong sales growth and increasing margins in Cardiolex. The acquisitions of Somna and Amedtec contributed since Nov 19 and Feb 20, respectively ▪ R12 EBITDA increased by 25% for Specialty Pharma. The development was primarily driven by the growth in the Nordic Specialty pharma portfolio. As the business mix changes over time, margins will increase due to a higher average gross margin and scalability of the cost base.

1 2 3 4

Sales and EBITDA – MedCap over time

6 187 259 316 337 349 406 423 466 525 596 709 757 786 7 22 38 33 41 47 27 45 43 59 78 116 109

20 40 60 80 100 120 140 100 200 300 400 500 600 700 800 900

08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 2018 FY 2019 FY 2020 Q2 R12

Nettoomsättning R12 EBITDA R12 EBITDA % MSEK (Net sales) MSEK (EBITDA) / %

Sales, EBITDA and EBITDA margin development over time

Sales CAGR: 14% EBITDA CAGR: 28%

Sales and EBITDA – R12 per quarter

7 377 410 439 466 504 508 513 525 540 564 596 639 672 699 709 726 739 734 757 763 786 21 34 39 45 53 44 46 43 43 51 59 66 72 77 78 90 101 102 116 104 109

5,6 8,3 8,9 9,7 10,5 8,7 9,0 8,2 8,0 9,0 9,9 10,3 10,8 11,0 10,9 12,4 13,7 13,9 15,3 13,7 13,8

20 40 60 80 100 120 100 200 300 400 500 600 700 800 900 1 000

Q1 15/16 Q2 15/16 Q3 15/16 Q4 15/16 Q1 16/17 Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20

Net sales EBITDA R12 EBITDA % MSEK (Net sales) MSEK (EBITDA) / %

Sales, EBITDA and EBITDA margin development Q1 15/16 – Q2 20

Sales CAGR: 15% EBITDA CAGR: 38%

Overview of segments

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MedTech Specialty Pharma Net Sales R12: 451 MSEK EBITDA R12: 98 MSEK Net Sales R12: 335 MSEK EBITDA R12: 27 MSEK Technical aid solutions and services for individuals with functional disabilities Vacuum system and for ECG- systems Package solutions for pharmaceuticals and probiotic products Specialty pharma (nische pharmaceuticals) and CDMO (contract development and production)

Investment strategy

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Investment strategy

Central/Northern Europe

Located companies with international potential

Small and mid-sized

Private life science companies

0-500 MSEK (5-50 MEUR)

In investment size

Relationship

Based investments

Majority

Ownership

Unlimited

Ownership period

Targeting

5 – 10 core investments

Value creation through active ownership

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MedCap’s ownership model: Combines the larger company’s strengths with the smaller company’s entrepreneurial spirit

Active

• wnership

Investment in development Long-term value creation Assessment based

• n transparent

financial and

• perational targets

Add-on acquisitions of companies with synergies Access to competencies, networks and resources

Acquisitions and exits since the start

11

2006 2001 2005 2008 2009 2007

Quickels, Acquisition Dunmedic, Add-on (IM-Medico) Unimedic, Acquisition

2010 2019

VC-portfolio, Acquisition IM-Medico, Acquisition VC-portfolio, Exit IM-Medico, Sale

• f property

GEWA (Abilia), Acquisition Handitek, Add-on (GEWA – changed name to Abilia) Falck Igel, Add-on (Abilia) Abilia, Refinancing (30 MSEK)

2011 2012 2013 2014 2015 2016 2017 2018

Unimedic, Sale of product (D-droppar) IM-Medico, Exit Ergobe, Add-on (Unimedic) Toby Churchill, Add-

• n (Abilia)

Pharmadone, Add-on (Unimedic) Cross Pharma, Add-on (Unimedic) ForGetMeNot, Add-on (Abilia) Miwana, Add-on (Unimedic) Cardiolex, Add-on (Quickels) Inpac, Acquisition Emfit, Add-on (Abilia) Scandinavian Nutrients, Add-on (Inpac AirContainer) Strässle, Add-on (Cardiolex)

2020

Comai, Add-on (Abilia) Amedtec, Add-on (Cardiolex) Somna, Add-on (Abilia)

1 1 1 1 2 3 1 2 1 2 1 2 3 1 1 2 1 2 3 4 1 2 3 1 1 1 2

Financial Targets

12

Focus on growth

*Average over economic cycle

Net sales in 3-4 years

1,500 MSEK

Annual EBITDA growth*

15%

Net debt / EBITDA*

<3x

26 25 25 29 34 40 46 49 52 55 65 65 78 91 93 99 102 98 98

20 40 60 80 100 120 Q3 15/16 Q4 15/16 Q1 16/17 Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20

MedTech – Operating and financial update

13 199 209 223 238 258 268 280 296 312 336 364 381 400 410 419 424 431 444 451

100 200 300 400 500 Q3 15/16 Q4 15/16 Q1 16/17 Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20

Financials 2020 Q2

*) Adjusted, excluding management fees from the mother company. **) Excluding IFRS16 which was implemented in Q1 2019

Net Sales – Rolling 12 months EBITDA* – Rolling 12 months

Comments

▪ The companies included in the MedTech segment primarily sell different types of medical equipment and products ▪ The segment consists of the subsidiaries Cardiolex, Abilia and Inpac AirContainer ▪ Net sales for the rolling 12-months period increased by c. 8 percent during the second quarter compared to the same period last year, primarily driven by strong growth in Cardiolex and Abilia ▪ However, negative impact in Abilia’s Norwegian business during Q1 and Q2 2020 due to Covid-19 lock-down ▪ The German ECG company Amedtec was part of the Group from 1 November 2019 and the Swedish assistive technology company Somna from 1 February 2020 ▪ R12 EBITDA increased by 5 percent compared to the same period last year ▪ Net working capital for the segment was 92 MSEK (78 MSEK) as per 30 June 2020

1 2 3 5 6 7

MSEK MSEK ** ** ** ** ** **

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Value Drivers in MedTech - Abilia

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Value drivers Diagnoses, children 0-14 years (Sweden)

▪ Since 2000 there has been an accelerating trend with an increasing number of young people being diagnosed with neuro phycological disabilities ▪ Treatment therapies as well as diagnostic methods have developed rapidly in combination with increased capacity in the established systems ▪ In Sweden and Norway there is a ”tradition” of using (electronic) support for time and structure management. There is also a common understanding in these markets that Abilia’s products add significant socio-economic value.

2 245 3 277 4 736 5 924 7 552 9 708 11 724 13 187 15 380 17 429 1 250 1 709 1 906 2 080 2 580 3 033 3 622 4 279 5 540 7 024 619 843 988 990 1 524 1 731 2 042 2 105 2 079 2 001

2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 ADHD Autism Asperger

Sources: Patientregistret, Socialstyrelsen och Statistiska Centralbyrån

Children 0-14 years in Sweden 1 2 3

Strong product portfolio and solid market position in MedTech generate long term growth opportunities

15

Portfolio of attractive MedTech Products Companies

Company Market size Customers Market position Dynamics

Nordics: 1 BnSEK, Global ”very large” Welfare systems / care providers in Nordics and UK

#1 in Nordics

Low competition in certain niches, high in communication Nordics: 100 MSEK, EU 5 BnSEK Regions, municipalities, private care providers

#1 in Sweden

(Cardiolex)

#1 in Germany

(Strässle) High competition but attractive situation linked to software solution Nordics: 1.2 BnSEK Pharma, nutrition and logistics companies

#1 in Nordics for

probiotic products Large number of local/regional companies, few global

Specialty Pharma – Operating and financial update

16

2020 Q2

Net Sales – Rolling 12 months

Comments

▪ The companies included in the Specialty Pharma segment develop and sell pharmaceutical products within the regulatory classifications registered, extempore and non-license pharmaceuticals ▪ Net sales for the 12-months rolling period increased by c. 5 percent compared to the same period last year, ▪ Strong development for several products in the Nordic portfolio, +25% increase of 12- months rolling net sales (7 key products) ▪ EBITDA for the 12-month rolling period increased by 25% compared to the same period last year ▪ Improved product mix and scalability in the cost base contributed to the positive profit development ▪ Net working capital for the segment was 77 MSEK (74 MSEK) as per 30 June 2020

*) Adjusted, excluding management fees from the mother company. **) Excluding IFRS16 which was implemented in Q1 2019

241 257 280 270 265 258 256 269 284 302 308 318 309 316 321 310 327 320 335

50 100 150 200 250 300 350 400 Q3 15/16 Q4 15/16 Q1 16/17 Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20

21 30 38 26 22 11 6 10 15 20 17 22 12 13 22 16 28 22 27

5 10 15 20 25 30 35 40 Q3 15/16 Q4 15/16 Q1 16/17 Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20

1 2 3 4 5 6

EBITDA* – Rolling 12 months

MSEK MSEK ** ** ** ** ** **

Value creating product development process

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Process

• Specialty pharmaceuticals with

local clinical history, often based on dosage / administration

• Simplified registration process.

Known substances!

• Often pediatric, even alternative

formulation, in some cases Swedish requests

18-24 months Extempore Pharmaceuticals 6-12 months Registered national MRP

1. Fenylefrin 2. Prednisolon Klysma 3. Oxibutynin

• 20. Product x

Products

1 2 3 20

Products

1. Fenylefrin 2. Prednisolon Klysma 3. Oxibutynin

Products

1 2 3

1. Fenylefrin in Nordics, UK, German speaking countries, Benelux + a few more

Products

1

• Increases documentation quality –

”medical file”

• Creates IP
• Price negotiation
• Takes 100% of existing market
• Expansion of national registration
• International sales / out-licensing
• Only in geographies with clear

clinical relevance and transparency

Opportunities in Specialty Pharma

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Portfolio of attractive products Strong net sales development for newly launched products1

Attractive platform of own products, pipeline with new product launches, established expertise in product development and experience from registration processes. Prioritised area for strategic acquisitions.

1 Portfolio of seven newly launched products in Specialty pharma (see next page) R12 MSEK

10 20 30 40 50 60 70 80 90 Net sales

+25% (12 months)

Attractive portfolio of own Specialty Pharma products

19

Product information

Product

Indication MAH (Marketing Authorisation Holder) Launch

Cresemba

Fungal infection Basilea (Unimedic exclusive in Nordics) Spring 2017

Fenylefrin

Low blood pressure (anesthetic) Unimedic (Out-licence partners outside Nordics) Spring 2015

Efedrin

Low blood pressure (anesthetic) Unimedic Fall 2018

Morfin

Pain (intensive care) Unimedic Fall 2018 Opioid addiction Martindale (Unimedic exclusive in Nordics) Spring 2017 Ulcerative colitis Unimedic Fall 2018 Overactive bladder Unimedic Spring 2018

Espranor Prednisolon - Klysma Oxybutynin

Financial summary – Balance Sheet

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Balance sheet

MedTech Specialty Pharma

*) Includes 137 MSEK of assets recorded in accordance with IFRS16 (implemented in Q1 2019) **) Includes -32 MSEK of Group cash pool eliminations

656 238 198

1,093

92 77

• 1

169

MedTech Other / Eliminations MedCap Specialty Pharma Assets Net Working Capital

MSEK 656 238 198 92 77

• 1

*

Market

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MedTech & Specialty Pharma MedTech Specialty Pharma

▪ Specialty Pharma develops and sells pharmaceutical products within the regulatory classes registered, extempore and non-license pharmaceuticals. The customers are primarily pharmacies and pharma companies. ▪ MedCap is primarily active on the Swedish pharmaceutical market, which during 2015 was 40.6 Bn SEK and consists of c. 12 000 registered pharmaceutical products. In Sweden 99 million pharmaceutcal packages were prescribed during 2015. Approximately 90 percent of these are covered by national reimbursement. ▪ MedCap’s companies in the MedTech segment primarily sell different types of medical devices and ECG-equipment. The customers are normally healthcare regions, municipalities, healthcare providers and distributors ▪ In MedTech MedCap is active in growing niches within assitive technology and has a leading position in both the Nordic region and Europe within its niches. In ECG- equipment it is the leading provider of complete ECG systems in Sweden and the leading provider of vaccum ECG in Germany ▪ In total the European market for assistive technology is approximately 1 Bn SEK and the global market for ECG equipment is approximately 40 Bn SEK

1 2 3 1 2

Management Team

22

• MSc. Eng., b 1974

Experience from corporate finance, business development and active

• wnership

Ownership c. 4.1 %

• MSc. Ec., b 1982

Experience from Life Sciene and Investment Banking in London and Stockholm Previously Morgan Stanley

• ch UBS Investment Bank.
• MSc. Ec., b 1974

Experience from finance roles in large corporate

• rganisations, most recently

head of accounting at Holmen AB

Management

Position Experience

Karl Tobieson CEO Kristina Ekblad CFO Thomas Bergh Investment Manager Johan Folkunger Business Area Manager MedTech

• MSc. Ec., b 1968

Background in varous leading position in medtech companies, most recently CEO for Philips Sweden.

Board of Directors

23

Board of Directors

CEO Bure Equity AB. Board member of The Chimney Pot AB and

• Valot. Chairman of the

board for Investment AB Bure och Cavena Image Products AB.

Henrik Blomquist

Specialist physician (psychiatry) and MSc from Stockholm School

• f Economics. Writes

about medical research for British Medical

• Journal. Board member
• f Execeutive Health

Sweden AB.

Anders Hansen

Board member of Bioservo Technologies, Tellacq AB, Nordic Biosite AB and Secure Appbox AB

Anders Lundmark Nina Rawal

Founder of Emerging Health Ventures, Previously responsible for Life Science at Industrifonden and Boston Consulting Group Chairman of the Board. Board member (chairman)

• f Boule Diagnostics AB,

Sophion A/S, Grönsöö Säteri AB and Färjsundet Industri AB

Peter von Ehrenheim

MedCap’s share

24

Largest shareholders Share price development

Share price (SEK) Volume (shares) ▪ MedCap listed on Nasdaq Stockholm since February 2016 (since 2004 on Nya Marknaden / First North) ▪ Per 31 August 2020 the share price was SEK 200,0 which implies a market cap

• f SEK 2 959 million

Name Shares Ownership Bengt Julander (Linc Invest AB) 2 965 946 20,05% Bure Equity AB 2 956 017 19,98% Karl Tobieson (incl. related parties and companies) 555 693 3,76% SEB Nanocap 541 784 3,66% Swedbank Robur 482 771 3,26% Lannebo Fonder 417 338 2,82% Staffan Dufva 402 500 2,72% Odin Fonder 316 765 2,14% Handelsbanken AB 310 532 2,10% Swedbank AB 262 170 1,77% Other 5 584 713 37,74% Total 14 796 229 100,0% 100 000 200 000 300 000 400 000 500 000 600 000 700 000 800 000 900 000 1 000 000 50 100 150 200 250 2008-06-16 2008-12-16 2009-06-16 2009-12-16 2010-06-16 2010-12-16 2011-06-16 2011-12-16 2012-06-16 2012-12-16 2013-06-16 2013-12-16 2014-06-16 2014-12-16 2015-06-16 2015-12-16 2016-06-16 2016-12-16 2017-06-16 2017-12-16 2018-06-16 2018-12-16 2019-06-16 2019-12-16 2020-06-16 Volume MedCap OMX Nordic Small Cap

Summary: Why invest in MedCap?

25

Summary Exposure to high quality, non-cyclical assets with market-leading positions and attractive outlooks in terms of growth and profitability – Diversified revenue streams across growing verticals with a high degree of recurring revenues – Additional growth fueled by demographic trends Proven track-record of acquiring profitable niche companies at attractive multiples – Credible rationale for small, entrepreneurial led companies to join MedCap’s platform of unlimited

• wnership horizon and active management

Long runway for geographic expansion, cross-selling and synergistic collaborations for recent acquisitions

1 2 3

Financial calendar

26

Key dates

▪ Q3 2020, 30 October 2020 ▪ Q4 2020, 19 February 2021 ▪ Q1 2021, 7 May 2021 ▪ Q2 2021, 30 July 2021

Financial summary – Segments

27

EBITDA & Net sales

*) Adjusted, excluding management fees from the mother company and excluding IFRS 16.

MSEK Net Sales EBITDA* Q2 2020 Q2 2019 FY 2019 Q2 2020 Q2 2019 FY 2019 apr-jun apr-jun jan-dec apr-jun apr-jun jan-dec MedTech 113,7 106,3 430,7 24,4 24,1 103,9 Specialty Pharma 95,6 80,1 326,5 14,0 9,4 27,7 MedCap group 209,3 186,4 757,2 34,4 29,9 116,0 Net Sales development compared to last year EBITDA-margin MedTech 7,0% 8,5% 7,6% 21,4% 22,7% 24,1% Specialty Pharma 19,3% 6,2% 5,8% 14,6% 11,7% 8,5% MedCap group 12,3% 7,7% 6,8% 16,4% 16,0% 15,3%