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CARNEGIE NORDIC HEALTHCARE SEMINAR
2019-03-06
Thomas Axelsson, CEO
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LEADING COMPANY IN MEDICAL DEVICES FOR ASSISTED REPRODUCTION
2 * Rolling 12 months
A Swedish company
Founded in 1994
Approx 390 employees
Sales 1 151 MSEK*
98% on export
Listed on NASDAQ Stockholm Large Cap
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10–15 % OF ALL COUPLES IN FERTILE AGE SUFFER FROM FERTILITY
PROBLEMS
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Hormone stimulation to increase the number of retrievable
eggs
HORMONETREATMENT
THE IVF-PROCESS – VITROLIFE PRODUCTS
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SUCCESS RATE ”STEP BY STEP”
5 2015 Assisted Reproductive Technology, National Center for
Chronic Disease Prevention and Health Promotion, Divison of
Reproductive Health
Outcomes of ART Cycles Using Fresh Nondonor Eggs or Embryos
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AGE IS A CRITICAL FACTOR FOR SUCCESS
6 2015 Assisted Reproductive Technology, National Center for
Chronic Disease Prevention and Health Promotion, Divison of
Reproductive Health
Day 3 and Day 5 embryo transfers that resulted in live births by
age
Percentages of ART cycles that resulted in miscarriage by
age
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PRE-IMPLANTATION GENETIC TESTING
PGT-a (aneuploidy)- previously named PGS (Screening)
Testing whether the embryos are euploid (all 46 chromosomes)
Aiding clinicians in order to choose which embryo to
transfer
PGT-m (monogenic)- previously named PGD (Diagnosis)
Testing to avoid that a certain mutation (altered gene) is
inherited to child
Note: New applications, such as PGT-sr, looking at chromosomal
rearrangements and PGT-p, looking at diseases caused by a large
number of genes are emerging
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PGT-A WILL MATTER – MAINLY FOR OLDER PATIENTS
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Percentage of euploid or normal embryos by age Miscarriage rate
by maternal age
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INVESTMENT IN PRE-IMPLANTATION GENETIC TESTING (PGT)
Licensing and commercialization agreement with Illumina Inc.
Distribution of PGT kits in EMEA and Americas started early
2019. Option in Asia/Pacific
PGT aids IVF clinics to avoid aneuploidembryos (abnormal number
of chromosomes)
Vitrolife will be able to offer both PGT technologies and
time-lapse
Vitrolife will develop new generationPGT products
Upfront payment of 13 MUSD. Accretive to revenue 2019 of approx
10% and EBITDAof 3-5%
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VERISEQ – OUR NEW OFFER IN PGT-A
Amplification Library Prep Sequencing Software
SurePlex WGA VeriSeq PGS BlueFuse Multi
OEM kit from Rubicon-Takara*
VeriSeq PGSlibrary prep
VeriSeq PGSIndex Adapters
MiSeq v3SBS Cartridge
MiSeq PR2 Buffer
MiSeq Flowcell
Validated algorithms to call embryo status
Clear visualization of genome
Automated reports
Note: Products are for research use only
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IMPROVED OUTCOMES USING TIME-LAPSE
Frequently captured images of an embryo result in a video
showing the development
IMPROVED implantation rate 1-4 REDUCED pregnancy loss1, 5, 6
SHORTENED time to pregnancy 1
1. Rubio et al (2014);Fertil Steril 102 (5):1287-1294 e1285. 2.
Meseguer et al (2012); Fertil Steril 98 (6):1481-1489 e1410. 3.
Kovacs et al (2013);Fertil Steril2013;100(3):S90. 4. Siristatidis
(2015); J Assist Reprod Genet 5. Barrie et al (2013); Fertil Steril
100 (3):S248 6. Vitrolife metaanalysis of Kahraman et al (2013); J
Reprod Stem Cell Biotechnol;3:55-61, Kovacs et al (2013) and Rubio
et al (2014. )
Artificial intelligence/deep learning algorithms tocreate
automated objective embryo assessment tools
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EXPECTED SYNERGIES BETWEEN GENOMICS AND MORPHOLOGY
Non-invasive PGT is yielding promising results - and could prove
to offer advantages compared to trophectoderm biopsy
Combining information from morphology and
morphokinetics(time-lapse) could provide superior information when
choosing what embryo to transplant
Deep learning / AI algorithms could improve bioinformatics to
interpret sequencing data
Our leading position in time-lapse is an important asset in
addressing these opportunities
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PRODUCTS AND SOFTWARE APPLICATIONS TO ALLOW SHORTERTIME TO
PREGNANCY
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Time-lapse
Genetics Embryo selection Successful result
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Our goal is to be the leading provider of solutions that reduce
the time to achieve a healthy baby and improve
workflow efficiency and control for IVF clinics
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TREATMENTS & TECHNOLOGY THAT ARE INCREASING
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Time-lapse Pre-implantation genetic testing
Cryo-preservation
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AGING EGGS AND CHROMOSOME ISSUES
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REASONS THAT EGG FREEZING WOMEN CHOSE TO DELAYCHILDBEARING
0
20
40
60
80
100
Lack of partner Professionalreasons
Financial reasons Too large of acommitment
Other
Source: ”What do reproductive age women who undergo oocyte
cryopreservation think about the process as a meansto preserve
fertility?” Fertility and Sterility
88%
24%15% 15%
8%
%
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SUMMARY Q4 AND YTD
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Q4: Sales of 320 MSEK (271) equals +18% in SEK Sales increased
by 12% in local currency EBITDA of 135 MSEK (42% margin) Licensing
and commercialization agreement with
Illumina Inc., regarding genetic testing
YTD: Sales of 1 151 MSEK (1 046) equals +10% in SEK Sales
increased by 5% in local currency EBITDA of 479 MSEK (42% margin)
Market approval for ES+ in the US and ES in China
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SALES AND GROWTH PER MARKET REGION
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Total +12%
Q4 GROWTH RATE COMPARED TO LAST YEAR IN LOCALCURRENCIES
SHARE OF VITROLIFE’S SALESROLLING 12-MONTHS 15%
+29%
26%44%
* Whereof organic growth +12 percent
15%
+7% -13%+33%
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SALES AND GROWTH PER BUSINESS UNIT
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+10%
+32%
+14%TIME-LAPSE
DISPOSABLE DEVICES
MEDIA
ART EQUIPMENT
Quarterly growthLocal currencies
SEK millions, rolling 12m
500 519 536 543 545 543 562 584606
139 142 148150 148 151 149 153
167160178 209
233 254 271 267282 29739
5678 80
78 80 6561
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0
200
400
600
800
1000
1200
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2016 2017
-19%
2018
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KEY FINANCIALS GROUP Q4
2018 Q4
2017 Q4
2018 FY
2017 FY
Sales, MSEK 320 271 1 151 1 046
Gross Margin % 67% 64% 66% 65%
Adj. Gross Margin %* 70% 68% 70% 69%
EBITDA, MSEK 135 103 479 408
EBITDA Margin % 42% 38% 42% 39%
Earnings per share, SEK** 0.77 0.63 2.85 2.43
Net Debt / EBITDA rolling 12m -1.0 -1.0 -1.0 -1.0
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• Fluctuations in exchange rates positively impacted EBITDA by
11 MSEK.• EBITDA margin was positively impacted by increased sales,
currency and good cost control.
* Gross margin excluding amortisation of acquisition-related
intangible assets** Recalculated with regard to the 5:1 share split
carried out in May 2018.
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SUMMARY
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Broaden the product portfolio
Time-lapse & genomics can give better clinical results
Technology and treatments that are growing
Good growth and high profitability
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THE SHARE
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• Listed on NASDAQ Stockholm Large Cap
• Market value: ~20 billion SEK
SEK / SHARE
Stockholm
LARGEST OWNERS31 January 2019
1. William Demant Invest A/S 22.6%2. Bure Equity AB 20.8%3.
State Street Bank and Trust Co, W9 10.5%4. Lannebo Fonder 2.8%5.
BNY Mellon SA/NA (former BNY) 2.4%6. CBNY-Norges Bank 2.1%
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Contact: Thomas Axelsson, CEO, [email protected], +46 31
721 80 01Mikael Engblom, CFO, [email protected], +46 31 721 80
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DISCLAIMER
This presentation contains estimates and forward-looking
statements, which reflect the Management’s current views with
respect to the market, certain future events and financial
performance. Although the statements are based upon estimates the
Management believes to be reasonable, there is no assurance that
these statements are correct or will be achieved. The most
important strategic and operative risks regarding Vitrolife’s
business and field are described in the Management report, in the
Annual Report. These are primarily constituted by macro-economic
risks, operational risks and financial risks.
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Carnegie Nordic Healthcare Seminar��2019-03-06�leading company
in medical �devices for assisted reproductionSlide Number 3The
ivf-process – vitrolife productsSuccess rate ”Step by step”Age is a
critical factor for successPre-implantation genetic testingPGT-A
will matter – MAINLY FOR older patientsInvestment in
pre-implantation genetic testing (PGT)�Veriseq – our new offer in
PGT-aImproved outcomes using time-lapseExpected synergies between
genomics and morphologyProducts and Software applications to allow
shorter time to pregnancySlide Number 14Slide Number 15Aging eggs
and chromosome issuesReasons that egg freezing women chose to delay
childbearingSummary Q4 and YTDSales and growth per market
region�Sales and growth per business unitKey financials group
q4summary �The shareSlide Number 24Slide Number 25
