Post on 20-Aug-2020
August 09, 2018 1
Enabling InnovationBuilding a Market Leader in Molecular Biology
August 2018 – Half Year Results 2018 & Outlook 2018
August 09, 2018 2
Today on the Call
Heikki Lanckriet, PhD – CEO/CSO
David Roth – CFO
August 09, 2018 3
Disclaimer
This document is intended for prospective investors, partners and media audiences and no statements made here should be considered as claims for the success of our products, which are currently in the development phase. This document also may contain projections and/or estimates about and descriptions of plans and objectives relating to our future operations, products, or services; future financial results; or assumptions underlying or relating to any such statements. These statements are forward-looking and are subject to risks and uncertainties, many of which are beyond our control and are not to be regarded as guarantees of future events.
Actual results could differ materially depending on a number of factors, including the timing and effects of regulatory actions, the results of product tests, the Company's relative success developing and gaining market acceptance for any new products, and the effectiveness of patent protection.
There can be no guarantee regarding the results of the product tests or other on going studies with our products. There can be no guarantee that our products in development will be approved for marketing in a timely manner, if at all.
The Company disclaims any intent or obligation to update these forward-looking statements or the factors that may affect the Company's future results, performance or achievements, even if new information becomes available in the future.
August 09, 2018 4
Agenda
• Group Overview
• Vision & Strategy
• Operational Review H1 2018
• Financial Review H1 2018 and Outlook FY 2018
August 09, 2018 5
SYGNIS AG Renamed to Expedeon AG
• Completion of the change of name to Expedeon AG
• Entry in the Mannheim commercial register on 6 August 2018
• Expedeon continues to be listed on the Regulated Market of the Frankfurt Stock Exchange
• ISIN and German securities identification code remain unchanged (DE000A1RFM03)
• Ticker symbol has been changed to EXN
• Name change reflects the new structure and positioning of the enlarged Company and the approval of the Annual General Meeting held on 5 July 2018
August 09, 2018 6
Group Overview
• ~110 staff across six countries
• Global sales team, business development and marketing in Cambridge/UK
• US-focused sales team in San Diego
• R&D centered in Madrid and Cambridge
• Manufacturing in San Diego, Cambridge, Madrid and Adelaide
Sales
Heidel-berg
CorporateMadrid
R&D,Manufacturing
San Diego
Manufacturing, Sales
Cam-bridge Manufacturing,
Sales, R&D
Singa-pore
Sales
Ade-laide
Manufacturing, Sales, R&D
August 09, 2018 7
Our Products
TruePrimeQualiPhiMutants
SunScript
SensiPhi Double Switch
Amintra Affinity Resins
VersaWave
Proteoloc
Nvoy Technology
BCA
Nvoy Solubility
Western Blot
PolyMACBradford
AnalysisSample
EnrichmentPurification Quantitation Analysis
Instant Blue
RunBlue
GelFree 8100
Fractionation
ImmunoreagentsProteomicsGenomics
Analysis
Lightning-Link
Thunder-Link
BioconjugationAssays and reagents
FlexLISA
Nanoparticles labeling kits
Imm-Link kits
Ready madeconjugates
Purification
AffinityResins
AbPure
AbSelect
Western Blot
ElectronMicroscopy
Flow cytometry
FRET
Check & Go
Lateral flowCovCheck
ATP/GTP resins
ATP/GTPase
August 09, 2018 8
Key Technologies
Next Generation Sequencing
Liquid Biopsy, Oncology
Point-of-care / Rapid
Diagnostics
Proteomics, Personalised
Medicine
TruePrime™ Whole Genome Amplification
Lightning-Link®
Biomarker Detection/Quantitation
ColloidalGold
RunBlue™Biomarker Analysis
CaptSure™Biomarker Capture
August 09, 2018 9
Agenda
• Group Overview
• Vision & Strategy
• Operational Review H1 2018
• Financial Review H1 2018 and Outlook FY 2018
August 09, 2018 10
Corporate Vision
• Become a market leading innovator enabling:
- Advances in medical science
- Advances in patient care
• By developing products and services built on proprietary technology, which:
- Accelerate and simplify bio-molecular research
- Enable biopharmaceutical and diagnostic products and solutions
August 09, 2018 11
Strategy
• Innovation driving organic growthDevelop and sell clever and easy to use products and services that our customers want to use
• Scale driving profitabilityAcquire complementary technologies which further enhance
- Growth
- Economies of scale and
- Profitability
• Maximise shareholder valueCreate a market leader with high profitability through innovation and scale
August 09, 2018 12
Strategy: Grow, Buy & Build
● Efficiently expand portfolio, technology and sales channels for all key markets
● Leverage growth by infrastructure synergies
● Accelerate growth to establish a leadership position
● Acquisition of profitable, debt-free, innovative companies with high growth rates
● New products, services & technologies for genomics, proteomics and immunology research
● Nurture high value clinical applications
Buy
Grow
Build
August 09, 2018 13
Sales and Marketing Model
● Intelligence driven direct mail
● Brochures
● Rich content website
● SEO, Web shop
● Local exhibitions
● Internationalevents
● Product video feeds
• Worldwide
• Higher margins
• Customer feedback
• End-user database marketing
Direct Marketing
E-Commerce
Conferences Social Media
Direct Sales (40%)
Distribution (40%)
OEM and Supply
Agreement (15%)
Licensing(5%)
• Local distributors: Europe, Far East
• Global distributors
• Wider reach
• Global reach
• Lower margins
• Economies of scale
• High margin
• Small proportion of the value chain
Marketing Approach
August 09, 2018 14
Agenda
• Group Overview
• Vision & Strategy
• Operational Review H1 2018
• Financial Review H1 2018 and Outlook FY 2018
August 09, 2018 15
Year-to-Date 2018: Milestones
• Extended OEM agreement with leading global research tools supplier
- Provide customers with improved access to research tools
- Worldwide sales and distribution channels
• Successful integration of products and services
- Expedeon Holdings, Innova Biosciences and C.B.S. Scientific fully integrated
- All products and companies operate under one brand name, Expedeon
• Completion of Sales and Marketing team restructuring
- Support continued strong revenue growth
- Cost leverage
• Acquisition of TGR Biosciences
- Australian research reagents company with complementary portfolio
Expedeon
SYGNIS
Innova Biosciences
C.B.S. Scientific
TGR Biosciences
August 09, 2018 16
TGR Biosciences: Commercial & Financial
Blue Chip OEM customers Technology included in market leading pharma platform
Established Production and R&D12 full time staff
Strong technology overlap
Strong GrowthRevenues € ~3.6 million (2017e)Annual growth: ~20% (3yr)
ProfitableEBIT: € ~1.3 million (2017e)
Debt-free
August 09, 2018 17
Agenda
• Group Overview
• Vision & Strategy
• Operational Review H1 2018
• Financial Review H1 2018 and Outlook FY 2018
August 09, 2018 18
Year-to-Date 2018: Financial Highlights
• Revenues rapidly growing
- €5.6 million (H1 2017: €3.0 million)
- Increase of 89% compared with H1 2017
• €6.2 million raised in a private placement and debt issues
- Funds used to acquire Australian research reagents company TGR Biosciences in May 2018
• H1 EBITDA positive
- Overall positive EBITDA 2018 expected
• Financial results fully within projection of guidance 2018
- Guidance raised for 2018 to €13-14 million (previous revenue guidance: €11-12 million)
- Increase of 67% against 2017 reported revenues
August 09, 2018 19
Consolidated Statement of Comprehensive IncomeIn € million Three Months ended
30 June 2018Three Months ended
30 June 2017Six Months ended 30
June 2018Six Months ended 30
June 2017
Revenues 3.3 1.6 5.6 3.0
Costs of goods sold (0.9) (0.6) (1.5) (1.5)
Expenses
Sales (0.8) (0.3) (1.3) (0.6)
Administration (2.0) (1.4) (3.2) (2.7)
Research & development (0.3) (0.2) (0.5) (0.3)
Other operating income/(expenses) 0.03 0.04 0.02 (0.03)
Total operating expenses (3.9) (2.5) (6.6) (5.2)
Results of operating activities (0.6) (0.9) (1.0) (2.2)
Earnings before taxes (0.7) (0.9) (1.1) (2.2)
Net profit/(loss) for the period (0.6) (0.8) (0.9) (2.0)
August 09, 2018 20
Financials H1 2018: Composition of Operating Income and Expensesin € thousand Effect of Non-cash Charges
six Months to 30 June
2018 2017
Reported EBIT (1,011) (2,188)
Amortisation and depreciation 1,034 541
EBITDA 23 (1,647)
Other non-cash charges:
PPA Fair value charge for inventory acquired and now sold 17 658
Equity settled share compensation 124 0
141 658
EBITDA Adjusted 164 (989)
August 09, 2018 21
Balance Sheet as of June 30, 2018Selected balance sheet data (in € million) 2018 (Jun 30) 2017 (Dec 31)
Non-current assets 53.8 44.0
thereof goodwill 34.8 30.7
thereof other intangible assets 16.6 11.3
Current assets 6.9 6.0
thereof cash and cash equivalents 1.1 2.0
Total assets 60.7 50.0
Shareholders’ equity 43.8 40.0
Non-current financial liabilities 9.6 5.3
thereof financial liabilities 6.7 3.9
Current liabilities 7.3 4.6
Total equity and liabilities 60.7 50.0
August 09, 2018 22
Outlook 2018
Continue to expand and consolidate the product portfolio; generate ongoing growth through strong organic products sales and acquisition
Outlook on financials
Revenues: 2018: €13-14 millionOngoing upside potential in 2019
EBITDA: EBITDA positive
Cash flow: Become cash flow positive during 2018
The goal of the Company is to become increasingly profitable through a combination of organic growth and growth by acquisitions.
August 09, 2018 23
Expedeon Current Stock Information (as of 9 August 2018)
Ticker symbol: EXN (Xetra)
ISIN: DE000A1RFM03
WKN: A1RFM0
Issued shares: 50,658,270
Listing: Germany: Deutsche Börse (Prime Standard)(Major Stock Exchanges)
Free float: ~ 81%
Key shareholders (>3%):Deutsche Balaton: 6.3%; Alpenfels Family Trust: 3.9%;
Fernandez Trust: 5.2%; Dr. Heikki Lanckriet: 3.1%
Market cap: € ~70 million
Analysts: GBC AG (Cosmin Filker; BUY: €3.30)
August 09, 2018 24
Thank You for Your Attention
For more information, please contact:
www.expedeon.comwww.investors.expedeon.com
Dr. Heikki Lanckriet, CEO/CSO
Email: heikki.lanckriet@expedeon.com
Phone: +44 1223 873364
Raimund Gabriel
Email: expedeon@mc-services.eu
Phone: +49 89 210 228 0
MC Services AG
Expedeon AG