Presentation of interim report january september 2010

Vitrolife Solutions for life-critical situations Interim report Jan-Sept 2010 Telephone conference November 2, 2010 Magnus Nilsson, CEO Anne-Lie Sveder, CFO November 2, 2010 Vitrolife strives to be leading in clinical medium and advanced disposables for fertility, cell and tissue therapy. Vitrolife – vision and mission 2 Vitrolife develop, produce and market high-quality systems for the preparation, cultivation and storage of human cells, tissues and organs outside the body . Vitrolife’s platform for growth Fertility Maturity 3 Transplantation Stem cells Time • Sales 68 SEKm, +11% loc curr • Gross margin 70% • EBIT 6 SEKm + 9% • EBIT* 7 SEKm +10% Third Quarter in brief - Financials • EBIT* 7 SEKm +10% • Equity/asset ratio 84% • Earnings per share 0.55 SEK • Cash flow from op act 7 SEKm *Adjusted for one-off costs 3 Third Quarter in brief – Highlights Fertility • Sales growth in local currency was 12 %. Sales amounted to SEK 56 (54) million, an increase of 4 %. • New supplementary product series of laboratory accessories for fertility treatment together with HertART. 3 accessories for fertility treatment together with HertART. Launch of 20 new products is planned for Q4 2010 and Q1 2011. • Acquisition of Conception Technologies Inc, USA (Q4). Third Quarter in brief – Highlights Transplantation • Sales amounted to SEK 12 (11) million, an increase of 5 %. In local currency growth was 8 %. • A new study shows improved survival with Perfadex. • Continuing strategic investments in STEEN Solution™ 3 • Continuing strategic investments in STEEN Solution™ • Focusing on market clearance in USA Third Quarter in brief – Highlights Stem Cell Therapy • Sales amounted to SEK 0.5 (1.3) million. • Launch of a new generation of growth factors and cytokines for stem cell cultivation . 3 cytokines for stem cell cultivation . • Continuing strategic investments to be able to provide researchers and cell therapy companies high quality media, reagents and instruments that will facilitate their use of stem cells for therapeutic purposes Main strategies Fertility • Build a complete product portfolio of premium products for IVF treatments • World leading quality control and cost effective 8 control and cost effective GMP production • World wide market and customer support organisation on all (15) key markets covering 80% of all treatments Vitrolife regions and the Global market situation 53% 16% 15% Europe TMS 41% GRTM 5% Asia TMS 30% GRTM 13% America TMS 14% GRTM ?% Before the aquisition of Conception Technologies 9 16% 12% 4% Share of Vitrolife sales Emerging markets TMS 10% GRTM 8% Pacific TMS 5% GRTM 6% Global market size is approx 1.2 million cycles per year HertART Aps • Collaboration with HertART, acquired 25% Q2, proceeded during Q3 • Launch of more than 20 products consisting of culture dishes, tubes and pipettes during Q4 2010 and Q1 2011 10 pipettes during Q4 2010 and Q1 2011 • Option to acquire up to 100% of the shares [...]... external partners Finn-Medi Research Ltd ( Finland) University of Melbourne ORF Genetics (distr agreement) • Launch of new products for stem cells Launch of new generation of growth factors and cytokines for stem cell cultivation during Q3 22 Financials 23 Consolidated income July-Sept SEK Millions January - Sept Whole year 2010 2009 2010 2009 2009 68 65 217 207 275 -21 -20 -65 -61 -82 48 46 151 146... proportion of humanity including more than 10% of all couples worldwide • Approximately four million individuals have so far been born following IVF Many of them are now adult and some have already become parents 15 Professor Robert G Edwards, Lesley Brown, Louise Brown, the world's first "test tube baby“ born in 1978, with her son Cameron Transplantation - Leader of innovation • Perfadex today 95% of world... curr +5 % mSEK 13 Fertility - Goals 2010 Continued execution of main strategy: • Broaden product portfolio through R&D and/or acquisition • Establish and further develop direct sales and market support organisation on all key markets covering 80% of all treatments 14 2010 Nobel Prize in Medicine • Robert G Edwards was awarded the 2010 Nobel Prize for the development of human in vitro fertilization (IVF)... Stem Cell cultivation • Strategic development of a portfolio of products for clinical Stem Cell Therapy.The aim for the portfilio is to include, high quality culture media, cryopreservation media, growth factors, cytokines and cell culture instruments that ensure excellent and highly reproducible results 21 Stem cells - Goals 2010 • Continue the development of a new stem cells product line • Increase... 25 Cash flow SEK millions 2010 2009 2010 2009 2009 7 15 27 24 41 Cash flow from investing activities -10 -5 -32 -21 -33 Cash flow from financing activities 2 1 -1 -8 -6 Cash flow for the period -1 11 -6 -5 2 Liquid funds at beginning of period 11 -2 16 14 14 0 0 0 0 0 10 9 10 9 16 Cash flow from operating activities Exchange rate difference in liquid funds Liquid funds at end of period 26 27 ... Perfadex today 95% of world market for cold preservation of lungs • Pioneering new warm perfusion system (ex vivo) • More than 50 patients now transplanted with STEEN Solution™ method • Development of perfusion systems for other organs • Focusing on market clearance 2011 in USA 16 Perfadex study • Study at the John Hopkins institute in Baltimore, USA 93 % of the patients had received lungs preserved in Perfadex,... 193 70% 71% 70% 70% 70% 6 7 25 24 30 EBITDA 10 11 37 36 46 Income after financial items 11 7 30 23 31 Net income 11 7 30 23 34 Net sales Cost of goods sold Gross income EBIT 24 Other Keys Ratios July- Sept 2010 2009 Operating margin, % Januari - Sept Whole year 2010 2009 2009 8.7 11.0 11.3 11.5 11.1 Operating margin before R&D, % 25.5 25.5 26.9 25.4 25.1 EBITDA, % 14.4 17.0 16.9 17.2 16.8 Net margin,... physicians,Andrology and IVF laboratories, with an emphasis on pipettes for micromanipulation, ICSI 11 Conception Technologies Inc • The products supplement existing range of products • Vitrolife creates a complete line of products which are used at all stages of an in vitro fertility treatment • Broaden IVF product portfolio, increase cost-efficient production capacity and increase market share, above all in North... group: greater risk of being affected by rejection reactions requiring treatment • Perfadex will also be needed to an equally great extent in transplantations where the STEEN Solution™ method is used 17 Market Potential Perfadex** STEEN Solution™*** incl disposables Costs for products per Transplantation (SEK) ~ 10,000 > 80,000 Potential number of lung transplantations . life-critical situations Interim report Jan-Sept 2010 Telephone conference November 2, 2010 Magnus Nilsson, CEO Anne-Lie Sveder, CFO November 2, 2010 Vitrolife strives. Q3 • Launch of more than 20 products consisting of culture dishes, tubes and pipettes during Q4 2010 and Q1 2011 10 pipettes during Q4 2010 and Q1 2011