Inspiration Healthcare Group plc Interim Results Presentation For - - PowerPoint PPT Presentation

Inspiration Healthcare Group plc

Interim Results Presentation For period ended July 2018

October 2018

Our Business

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Our vision

• To improve patient outcomes in critical care

Our mission

• To develop outcome-enhancing products for intensive care patients and

to promote these globally. We are passionate about improving patient

• utcomes through innovation, research and life-saving customer service.

The business

• An international supplier of Neonatal Intensive Care and Patient

Warming Equipment and distributor of Life Support Equipment

• Key Markets: Critical Care, Operating Theatres and Home Healthcare
• Core Values: Patient focus, Outcome changing, Pioneering, Research

driven Hypothermia Station

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H1 ended July 2018

Highlights In line with management expectations Sales growth despite regulatory delay Continued Investment in staff Patient Warming System launched Renewal of Tecotherm and Micrel Agreements Neuroprotexeon Ltd announced seeking to IPO H2 2018 AlphaCore5

Patient Warming Controller and expanded mattress

• ffering for surgery and areas of critical care

H1 ended July 2018

Financial Headlines

• Revenue up 3% to £7.4m in line with our expectations (H1 2017/18:

£7.2m)

• Revenue grew both domestically (2%) and internationally (4%)
• EBITDA up by 9% to £0.7m (H1 2017/18: £0.6m)
• Operating profit £0.5m (H1 2017/18: £0.5m)
• Cash remains strong ending the half year at £2.4m; a net inflow of

£0.3m in the period

• Outlook unchanged with growth expected in H2

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1 before exceptional items in 2017

Unaudited H1 2019 Unaudited H1 2018 £’000 £’000 Revenue 7,391 7,185 Gross Profit 3,319 3,202 EBITDA 696 641 Operating profit 502 514 Finance Income/(Expense) 2 (2) Profit before tax 504 512 Taxation (70) (51) Profit after tax 434 461 Diluted EPS 1.4p 1.5p

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Consolidated Income Statement

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Revenue by Product Ownership H1 2019

Distributed 43% (H1 2018: 37%)

Inspiration Branded 44% (H1 2018: 48%)

Technical Support 11% (H1 2018: 13%) Other 2% (H1 2018: 2%)

Operating Theatre £0.8m

Thermoregulation Medos Acutronic

Critical Care £5.1m

Thermoregulation Respiratory Brain Monitoring Acutronic Novalung

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Home Healthcare £1.5m

Parenteral Feeding

Revenue by Market Sector H1 2019

Critical Care £5.1m (69%) H1 2018: £5.1m Operating Theatre £0.8m (11%) H1 2018: £0.8m Home Healthcare £1.5m (20%) H1 2018: £1.3m

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Revenue by Geography H1 2019

Domestic 68% Europe 16% Middle East & Africa 6% Americas 8% Rest of World 2%

Consolidated Cash Flow

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6 months H1 2019 6 months H1 2018

£’000 £’000

Profit before taxation 504 512 Depreciation & Amortisation 158 111 Movement in working capital (124) (464) Other 33 3 Net cash generated from operations 571 162 Taxation (69) (50) Purchase of tangible and intangible assets (201) (467) Other 2 (18) Net increase/(decrease) in cash and cash equivalents 303 (373) Cash and cash equivalents at the beginning of the year 2,086 2,165 Cash at end of period 2,389 1,792

31.07.18 31.07.17 31.01.18 £’000 £’000 £’000

Non-Current Assets 1,824 1,362 1,782 Cash 2,389 1,792 2,086 Other Current Assets 3,930 2,911 3,625 Total Liabilities (3,306) (2,479) (3,128) Net Assets 4,837 3,586 4,365

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Consolidated Balance Sheet

Strategic Markets - Focus on Neonatal Intensive Care

Core skills

• Strong market knowledge
• Track record in growing sales in NICU
• Strong relationships with Key Opinion

Leaders

• Increased regulatory and

development capability in field Current Neonatal own-brand product portfolio

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• Respiratory (Inspire nCPAP)
• Neurological (Unique + CFM)
• Resuscitation (Inspire rPAP and LifeStart)
• Thermoregulation (Tecotherm Neo / AlphaCore5)

Strategy: World Leader in Neonatal Intensive Care

Identifiable Brand Worldwide Disruptive Technologies

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Global Market Drivers

15m babies born Prematurely p.a. worldwide Over 1m deaths per year – largest cause of mortality in infants under 5 (18%) 75% of deaths preventable with cost-effective equipment WHO is committed to reducing the health problems and lives lost as a result of preterm birth As infant mortality rates fall (reduction in childhood diseases etc) prematurity becomes increasingly the main cause of death Global Market for Neonatal Medical Equipment:

• $2.7bn by 2024 (Persistence

Market Research)

• $9bn by 2025 (Transparency

Market Research) Regulatory compliance becoming more burdensome across the industry Procurement changing to reduce wastage and improve value

Footnote: Source World Health Organization Fact Sheet: Preterm Birth 12

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Strategic Objectives – Size Matters!!!

Objective

• £100m + t/o
• Direct Operations in key markets
• Comprehensive range for NICU
• Disruptive technologies

Strategic Imperative

• Organic, Acquire, Leverage
• Acquire / Develop
• Acquire / Develop
• Acquire / Develop

Putting together the pieces

Comprehensive Range Leading-Edge Technology Outcome Changing Products Proven by Clinical Research Patient Focussed Social Conscience Route to Market Outstanding Customer Service Value enhancing Complementary Products Innovative Solutions Endorsed by KOLs

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Outlook

• Outlook unchanged with growth expected in H2
• Exploring Distribution Opportunities
• Develop markets further over 3 years
• Continual investment from our balance sheet to grow business over

the next 3 years

• New product introductions to steadily increase growth rate
• Actively seeking synergistic acquisitions in neonatal intensive care

Appendices

The Inspiration Story

2003 2007 2010 2015 2016 2017 2018

17 Distribution of 4 products in UK Licensed Tecotherm Launched Inspire nCPAP Listed on AIM Consolidated & reengineered Group Outsource Manufacturing & new corporate head office

Sales c.£0.6m Sales c.£1.6m Sales c.5.3m Sales c.9.5m Sales c.13.1m Sales c.14.3m Sales c.15.5m

3 new products cleared in EU

Management Shareholders 50% Institutional Shareholders 28% Notifiable Private Investors 10% Other/ Free Float 12%

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Shareholder Base

DISCLAIMER

• While the information contained herein has been prepared by Inspiration Healthcare Group plc (“Inspiration”) in good

faith, neither it nor any of its directors, officers, agents, advisers, affiliates or employees makes any representation or warranty, express or implied, nor shall any of them have any responsibility whatsoever in respect of the accuracy or completeness of, or omissions from the contents of this document or any other document or information, written or

• ral, supplied at any time or in respect of any opinions or projections expressed herein or omitted there from.
• No responsibility is accepted, and any and all responsibility and liability is expressly disclaimed, by Inspiration and its

directors, officers, agents, advisers, affiliates or employees for any errors, miss-statements, misrepresentations or

• missions in this document or any other such document or information supplied at any time to the recipient or its

advisers in the course of the recipient’s evaluation of Inspiration.

• Any forward looking information contained in this document is based on subjective estimates and assumptions made by

representatives of Inspiration and about circumstances and events that have not yet taken place. Such estimates and assumptions involve significant elements of subjective judgement and analysis which may or may not be correct. Accordingly, no representations are made as to the accuracy of such information and there can be no assurance that any such projected results will be attained or outcome realised.

• Neither Inspiration, nor any of its subsidiaries, affiliates, representatives, partners, directors, officers, employees,

advisers or agents has any authority to make or give any representation or warranty whatsoever in relation to Inspiration

• r the prospects of Inspiration and makes no such representation or warranty.
• This document does not constitute or form part of any offer for the sale of shares, business or assets of Inspiration nor

shall it constitute the basis of any contract which may be concluded for the sale of the shares, business or assets of Inspiration. 19