SPINEWAY 2016 annual results, 2017 and beyond % TO 2016 TO 2016 : [PDF]

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SPINEWAY 2016 annual results, 2017 and beyond…

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% TO 2016

2016 Turn Over by area

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(% TO 2015)

TO 2016 : 5,1 M€

SPW Officerepresentation Worldwide distributionnetwork

USA 12%

(NS)

Europe 24%

(20%)

LATAM 36%

(41%)

EMEA 10%

(20%)

Asia/Pacific 18%

(19%)

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KEY HIGHLIGHTS OF 2016: USA

Acceleration of deployment to the US

Establishment of Spineway USA Inc – Based in Florida (August 2016)
First strategic partner in the US: California distributor
Sales orders totaling $2 million (delivery in 2017)

New approvals from the FDA (510k)

Autorisation to market in the US:
Sterile product lines: Mont-blanc (MIS and 3D+), Twin-Peaks and Ayers Rocks
Non-sterile product lines: Blue Mountain, Ayers Rocks and Mont-Blanc Mini-invasive
Products that meets 80% of surgeons’ needs

"Sterile" option: key to market entry in the US

Huge demand from US hospitals: "ready-to-use" implants
Spineway’s competitive edge: few sterile product options available in the US

An area that is likely to represent a significant portion of the sales margin for 2018

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KEY HIGHLIGHTS OF 2016: CHINA

China: a strategic partner

Agreement with TINAVI Medical Technologies (Beijing) – shares listed on NEEQ (Since Nov. 2015)
Development and marketing of highly innovative surgical systems
TiRobot ™: the world’s only robot that can perform surgery on the entire spinal column (cervical,

thoracic, lumbar vertebrae and the sacral crest).

Alliance in place for 5 years

First-line synergies

Deployment in China
Preferential market access for Tinavi surgeons

(Scientific committee, pilot sites…)

Highly innovative positioning in the spinal surgery sector (robotic)

Share capital participation by TINAVI in Spineway

Reserved capital increase of 1.4 M euros (November 2016)
Tinavi holds 9% of Spineway’

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KEY HIGHLIGHTS OF 2016: RANGES/PRODUCTS

Successful presentation of Mont-Blanc MIS at the Eurospine congress: Germany (Berlin)

Distributors meeting
First step: applications for degenerative disease
Rapid appropriation: known surgical techniques
Positioning by Spineway in a new segment
Line already approved and used in 10 countries

Confirmed interest in the MIS Spineway technology Ambitious development strategy for new applications

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+ Easy-to-use + Rapid + Reliable

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KEY HIGHLIGHTS OF 2016

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Shawn McQuinn VP Sales USA Philippe Laurito Président of Spineway USA Inc. Stéphane Morvan Europe Lucas Langevin Asia-Pacific Thibault Marnay Latin America Cédryc Douillet Middle East Africa

Structuration des équipes commerciales pour une accélération des ventes

Laurent Ricquart RoW Sales Director

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INTRODUCTION

Annual Results 2016

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Mont Blanc 49% Mont Blanc Baby 4% Mont Blanc 3D+ 2%

MIS Mont- Blanc 12%

Kili 5% Ayer Rock 7% Blue Mountain 3% Autres 3% Twin Peaks 13% Névé Sonora 2%

BREADOWK OF 2016 TURN OVER PER RANGE

2016 Turn Over : 5,1 M€

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Innovative products

23 %

Of Turn Over

Vs 25% in 2015

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2016 P&L

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In thousands of euros 31/12/2015 31/12/2016

Turn Over 5 680 5 120 Gross Margin on products sold 3 798 3 361 In % of the Turn Over 66,9% 66% External expenses

2 234
2 374

Taxes

98
98

Wages

2 561
2 312

Other expenses and operating revenues 16 EBITDA

1 078
1 424

Depreciation and amortization

767
944

EBIT

1 845
2 368

Net results

1 686
2 264

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In thousands of euros

31/12/2015 31/12/2016

SHAREHOLDERS EQUITY AND OTHER EQUITY 3 021 2 168 Provisions

255

Financial Debts 4 119 4 125 Payables 1 388 2 276 Other Liabilities 434 366 TOTAL LIABILITIES 8 962 9 190

In thousands of euros

31/12/2015 31/12/2016

FiXED ASSETS 1 428 1 297 Inventory 2 210 3 363 Receivables (clients) 3 041 2 147 Other receivables 895 958 Cash 1 388 1 419 TOTAL ASSETS 8 962 9 190

Working Capital 31/12/2016 4,4 M€

2015 : 4,7 M€

Gearing 31/12/2016 125%

2015 : 89 %

2016 Balance Sheet

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1 026

268

626

1 324 456

364

Cash generated from operations Change in working capital Tangible and non-tangible assets Capital increase Advances received Loans

1 388

Cash at end of period

1 419

Cash at beginning

f period

In K€ 12 Operating activities

759K€

Financing activities

1 416K€

Investing activities

626K€

2016 Cash Flow Statement

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To summarise

Transitory decrease of activity
Good control of operating expenses
Strong investments in R&D maintained
2016 results supporting the future speeding-up
Group's financial structure strengthened

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INTRODUCTION

2017, return to growth

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VERY DYNAMIC START TO 2017

Consolidated US accounts to 1 January 2017 Strong sales growth for the first trimester: + 176%

3.1 M euros vs 1.1 M euros (consolidated figures)
Sales increases in the US (1.7 M euros)
Good momentum in the rest of the world (+ 30%)

Excellent progress in Latin America (+ 86%) and France (+ 27%) Opening into the Oceania region

Signing of a distribution contract for Australia
First exposure for Mont-Blanc
Asia/Oceania region: +15% in T1 2017

Initial effects of the SKYWAY 2018 plan

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Sales T1 2017 3.1 M euros vs 1.1 M euros

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2017 AND BEYOND: GROUP STRUCTURING

Spineway USA Inc: basis for strategic deployment in the US

World’s largest market for spinal products
US subsidiary management overseen by Philippe Laurito – founding partner of Spineway

New achievements in the US

New distribution contracts
First exposure for the Mont-Blanc MIS line

Reinforcement of the supply chain to accompany the growth

Structuring of logistics teams in France and the US
Process optimisation

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2017 AND BEYOND: DEVELOPMENT OF NEW PRODUCTS

Continuation of R&D work

New applications for MIS: to be pioneered in new market segments
New product launches to complete the lines: Ongoing pipeline for 15 products in R&D
Fast-growing segment

Success of the new Mont-Blanc MIS line confirmed

Increasing demand in France and Latin America

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DEGENERATIVE OPEN 52%

DEGENERATIVE MIS 22%

DEFORMATION OUVERT 4% DEFORMATION MIS 4% TRAUMA &OPEN TUMOURS 4% TRAUMA &TUMOURS MIS 4% POSTERIOR CERVICAL OPEN 5% POSTERIOR CERVICAL MIS 3% OTHERS 2%

Currently 12% of the market

100% for degenerative surgery

Forecast to 2020 33% of the market Minimally-Invasive Surgery

Source : MarketWatch, January 17th, 2017

OPEN surgery/MIS according to pathology type projected to 2020

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2017 AND BEYOND: GEOGRAPHIC STRATEGY

Stronger positioning in mature markets

Development in Australia
Study of growth drivers for improvement in Europe
Active exploration in the Japanese market

Continued growth in established areas

Asia: emerging strength of the partnership with Tinavi
Latin America reversion to historic levels
Study for potential improvement in the Middle East

Technology partnership with Tinavi in the field of robotic surgery

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OUTLOOK CONFIRMED

Turn Over of 10 M€
Break even

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Targets SKYWAY 2018

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INTRODUCTION

Thank you for your attention

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STOCK EXCHANGE

LISTING ON ALTERNEXT PARIS

Stock exchange listing: February 2013
ISIN code : FR0011398874
MNEMONIQUE : ALSPW
June 22nd share price : 3,43 €
Capitalisation : 13,4 M€

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VOLUMES

Nb of shares : 3 907 846
3 010 530 securities traded in 2016 vs 262 112 in

2015

Trading x 11 between 2016 and 2015.

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Président Directeur Général Directeur Général Délégué Directeur Financier

Stéphane LE ROUX Philippe LAURITO David SIEGRIST Tel : 04 72 77 83 32 Tel : 04 72 77 83 33 Tel : 04 72 77 83 37 slr@spineway.com phl@spineway.com finance.dsg@spineway.com COMMUNICATION FINANCIÈRE Jérôme Gacoin Solène Kennis Tel : 01 75 77 54 67 Tel : 01 75 77 54 68 jgacoin@aelium.fr skennis@aelium.fr

CONTACTS

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