Q3 2019 Earnings Conference Call Q3 2019 Earnings Conference Call - - PowerPoint PPT Presentation

Q3 2019 Earnings Conference Call

November 25, 2019

Q3 2019 Earnings Conference Call

November 25, 2019

Today’s presenters

El Elisab abet Lund Gö Göran Ma Malm lmberg

Gr Group CEO EO & President Ch Chief ef Financial Of Officer er

• Lagging decision processes in the medical device industry

segment impacted negatively on sales, but no

• pportunities were lost to competitors or disappeared.
• Positive indications from the hospital segment, with sales

expected to outperform 2018.

• Intensified approach in India, could become next growth

area in APAC after China and Japan.

• Denis Gestin, Gösta Johannesson and David Ballard were

elected as additional board members enhancing Mentice marketing orientation of the board.

• Mentice reached 100 full-time equivalent employees.
• St

Strategic partnerships: : Progress with all three partners: Siemens Healthineers, Philips and Laerdal. Expected sales increase in 2020.

• Te

Technology: New ultrasound solutions presented for TEE (Transesophageal Echocardiography) and ICE (Intracardiac Echocardiography).

• Te

Technology: Rapid progress in auto segmentation solution based on machine and deep learning, prototype expected to be ready by year-end.

Third Quarter of 2019

Co Continued ex expansion, bu but th the med medical de device in industr try is is la laggin ing

Or Order in inta take an and order book

• ok

Q3 2019 – Financial performance

Order intake

Order intake for the third quarter was 24. 4 (49.2) MSEK.

Order book

The order book* was 47.0 (55.0) MSEK at the end of the

• quarter. It is estimated that 50% of the order book will be

delivered during the year.

20 40 60 80 100 120 140 160 180 200 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Order Intake RTM (MSEK)

(*) The order book represents orders received but not yet delivered.

Ne Net sa sales pe per segment

Q3 2019 – Financial Performance

65% 32% 3% Jan–Sep 2019 70% 30% 0% Jan–Sep 2018 67% 28% 5% Full Year 2018

Ne Net sa sales pe per pr produ duct

Q3 2019 – Financial Performance

System Sales Software Licenses Support & Service contracts

30% 26% 44% Jan–Sep 2019 35% 27% 38% Jan–Sep 2018 35% 33% 32% Full Year 2018

Ne Net sa sales pe per ge geogr

• graphic ma

market et

Q3 2019 – Financial Performance

Me Mentice re report ports sa sales fi figures fo for th three ge geogr graphic ic ma markets:

• EMEA (Europe, Middle East and Africa)
• APAC (Asia and the Asian Pacific Region)
• Americas (North, Central and South America)

Ke Key fi figur ures

Q3 2019 – Financial Performance

* * RTM = Latest 12 months period. RTM has not been reviewed by the company’s auditors.

• We expect strong sales in the fourth quarter.

However, we do not expect to reach the full year target that was set forth in the Q2 report.

• Current forecast suggests that we will end up around

last year’s result for net sales and orders received.

• Additional opportunities might help us bridge some of

the delta between our current forecast and the initial target.

• Large pipeline over and above what we expect to

close for the fourth quarter will move over and build

• pportunities for 2020.
• Orders received late in the end of the year will build
• rder book for next year.
• St

Strategic partnerships: : In-depth discussions with strategic partners and participation in medical congresses such as RSNA (Chicago) together with Siemens Healthineers and Philips Healthcare.

• Te

Technology: The technology department is fully allocated and divided between custom solutions for the medical device industry, standard simulation solutions for all clients and new innovative technologies such as robotics and auto segmentation.

• Med

Medic ical l Devic ice e Industr try: We expect several of our medical device industry projects to close during the fourth quarter, bridging some of the gap compared to our initial target as well as last year’s outcome.

Outlook – Fourth quarter of 2019

• Disappointing outlook for 2019, but this is expected to have a minimal impact on mid-term expansion.
• Mentice has a competitive position as well as market share per segment and geography.

Our vertical approach is providing us with strong leverage.

• We have high expectations for our interactions with strategic partners as well as the effect of new

technologies planned for 2020 and onwards.

Di Disappoi

• inting

g ou

• utlook
• ok for
• r 2019, but stron
• ng

g pos

• sition
• ns in all ge

geogr

• graphies and segme

gments cr create a promising view on 2020 and our co continued expansion

• utlook – Full year 2019 and further Ahead

Q&A Session

El Elisab abet Lund Gö Göran Ma Malm lmberg

Gr Group CEO EO & President Ch Chief ef Financial Of Officer er