Company Presentation and Update - curasan · Management: Michael Schlenk, CEO Shareholders: 74% free float, management, institutional investors Company facts Market access Under Market

Company Presentation and Update

Disclaimer

This presentation does not constitute a stock offering in the sense of a legal prospectus according to the laws of publically traded companies in Germany. This presentation is not an offer to sell nor does it indicate an offer to purchase or issue shares of curasan AG. It is solely intended to provide additional information. Any other use, duplication, or distribution of this document or the information contained within is strictly prohibited. This presentation contains „forward looking statements” regarding curasan AG, including opinions, estimates and projections regarding curasan’s financial position, business strategy, plans and objectives of management and future operations. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of curasan AG to be materially different from future results, performance or achievements expressed or implied by such forward looking statements. These forward looking statements speak only as of the date of this presentation and are based on numerous assumptions which may or may not prove to be correct. No representation or warranty, express or implied, is made by curasan AG with respect to the fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein, including but not limited to the plans, business relationships, financial situation, market conditions, competition, future strategies, and regulatory assumptions. The information in this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning curasan AG. curasan AG undertakes no obligation to publicly update or revise and forward looking statements or other information stated herein, whether as a result of new information, future events or otherwise. curasan AG reserves the right to adjust or change these forward looking statements at any time should there be changes in relevant factors. The forward looking statements from studies conducted by third parties could prove to be incorrect. The use of data from third party studies or reports serves solely to provide additional information and does not indicate or imply accuracy or agreement with such data, claims, opinions or conclusions. curasan AG does not warrant or assume responsibility for the selection, completeness, or accuracy of third party studies or information.

Kleinostheim

Lindigstraße 4

63801 Kleinostheim

Germany

T: +49 6027 40 900 22

F: +49 6027 40 900 29

Michael Schlenk

CEO

[email protected]

Background

curasan AG

2 EK Forum, Frankfurt Airport, November 22th 2016

A snapshot

USA Subsidiary

70 sales partners

40 countries

Locations: Frankfurt, Germany & NC, USA

Founded/IPO: 1988/2000 General Standard

Headcount: 36

Management: Michael Schlenk, CEO

Shareholders: 74% free float, management,

institutional investors

Market access Company facts

Under one umbrella Market Growth

… of medicial devices

Research Production Certification Distribution

3

$ 1.6 Bio

$ 2.1 Bio

2015 2020


Orthopedic Market Size Dental Market Size

Global BGS market by segment

Source: iData 2015, espicom, Orthoknow, management estimates

CAGR: 4,4%

USA: most attractive market with 1 Billion potential (over 60% of world market)

curasan: Foam product under registration – expect approval Q1 2017

46%

35%

14%

5%

WW-BGS Market 2015:

$ 451 Mio

US Europe Asia/Pac China

42%

30%

15%

13%

WW-BGS Market 2020:

$ 687 Mio

US Europe

CAGR: 8,8%

China: highest CAGR: 30,7% p.a.; world wide share increase from 5% to 13%

curasan: CERASORB® dental granules registered ready to sell

Global BGS Market 2015: $ 1.636 Mio / 2020: $ 2.133 Mio

74%

7%

19%

WW-BGS Market 2015:

$ 1.168 Mio

US Europe RoW

74%

6%

20%

WW-BGS Market 2020:

$ 1.446 Mio

US Europe RoW

4


CERASORB® - safe and safe

1. Synthetic

1. No costly cleaning steps needed to „wash

out“ biology and virology

2. No biological risks

3. Synthetics: The future in biomaterials

2. Fully resorbable

After 12 months in an x-ray only bone

material can be seen (all granulate or

foam or paste 100% resorbed)

3. Absolutely safe

Over 1.6 million vials of CERASORB®

were used, but ZERO reported medically

related side-effects

5 curasan is owner of 9 patents; further 10 patent applications

CERASORB®

CERASORB® M

Ceracell®

Osseolive®

Osbone®

• Round Granules • Micropores

• Polygonal morsels • Micro-, meso- and

macropores

• Bioactive • Polygonal morsels • Bone like structure

• Bioactive • Glass ceramic • Open cellular • High mechan.

stability

• Osteoconductive • Polygonal morsels • Bone like structure

• Porosity 35% • Porosity 65% • Porosity up to <75% • Porosity <80% • Improved

mechanical stability

• Porosity up to 80%

• Resorption approx. 6-12 months

• Resorption approx. 6-9 months

• Enhanced biological activity

• Fastest resorption • Low resorption • Volume stability

Evolution in technology leadership

Future OEM Alternative


Strategy Shift


Stronger concentration on Orthopedics

36%

64% 66%

34%

Ortho Dental

71%

29%

Orthopedics market worldwide most attractive segment:

Revenues Split 2015 curasan AG

Market Split World

Market Split USA

H1 2016: 60 % vs. 40 %


Strategy ::: Focus on Key Products

CERASORB® curavisc®


Opportunities

1. USA: Dental and Ortho portfolio registered.

Foam will be FDA approved early 2017.

2. China: 2nd largest economy worldwide.

Dental portfolio already registered. Ortho

ready for registration.

3. Selected countries offer significant upside

potential.


Strategy ::: Regional Focus

• Focus on Europe, MENA and Asia

• USA reorganization in full swing

• Utilizing huge China potential

• Registration in new markets

• USA CERASORB® M Ortho Foam: approval expected early 2017

• China CERASORB® M Dental approval received (distributor discussions)

• Canada CERASORB® M Ortho Foam approval received (selection ongoing)

• Japan, Korea, Taiwan (ASIA)

• Saudi Arabia, Kuwait, Iran (MENA)

• others


curasan Inc. ::: New President

Shane Ray new President of US subsidiary

curasan Inc. since June 2016

20+ years of experience in US Orthopedics market

MP of multiple Orthopedics companies

Experience in building-up and structuring sales teams

for complex products

US market for orthobiologic products in Orthopedics: > 860 mUS$

FDA approval for CERASORB® Ortho Foam expected early 2017:

Network of distribution partners for US market currently being built-up!


New strategic investor

21 April 2016:

Long-term stypro® distribution partner BicomTc

(Mr. Yinan Xiong, born in China, residing in Canada)

10 percent or 943,604 new shares

Gross proceeds of EUR 1,132,324.80

Largest shareholder, but no preferences or favorable conditions


Roll-Out in China has begun

Build Chinese market

curasan already successful in China with stypro®

Market and partner evaluation period concluded,

distribution agreements to be signed in Q 4, 2016

Registration of CERASORB® Dental Granules already

granted, registration of Foam and Paste will follow

Market growth in China according to iData +30.7 % per year until 2020

Registration strategy for Dental and Orthopedics defined. Ready to go.


Profit & Loss Statement (abbr.)

in TEUR 9M 2016 9M 2015 ∆ [abs.] ∆ [%]

Revenues gross & adjusted 4,828 4,433 395 8.9%

Revenues gross 4,828 4,571 257 5.6%

Revenues net 4,512 4,231 281 6.6%

EBITDA -1,640 3,085 -4,725 na

Other income 160 4,714 -4,554 -96.6%

Cost of personnel 2,404 2,231 173 7.8%

Depreciation 380 404 -24 -5.9%

Other Expenses 2,165 2,128 37 1.7%

EBIT -2,020 2,681 -4,701 na

Financial result -93 -132 39 -29.5%

Taxes 0 0 0 na

Net Income -2,113 2,549 -4,662 na

Number of shares (average, thousands) 9,856 9,055 801 8.8%

Earnings per share (in Euro) -0,18 0,32 -0,50 na


Net revenues by region (like-for-like)

Europe shows very positive performance....

....... for example in UK, Italy, France, Portugal, Poland, Hungary, Ukraine

CH with Silony expects to reorder

Middle East +32%, Asia +2% continue to perform well

US subsidiary lower due to shift in sales strategy to prepare for Ortho roll-out in Q1, 2017

Germany still weaker. Process with partners to improve performance ongoing

1.903

983

365

997

1.231

16

1.774

1.141

277

927

1.245

8

Europe thereof Germany Middle East Asia Americas Others

9M 2016 9M 2015


Sales growth rates of the last quarters pick up (investment vs break-even)

Needs investments, but USA and China will contribute significantly to

2017ff sales

Careful shift from Dental to Ortho markets (driven by USA)

Marketing strategy of focus and support (e.g. ADBoard) is accepted by

distributor network

Network of 70 distributors in 40 countries = new spirit = ready to go

More than 1.6 million vials = ZERO side-effects = super safe products

Various fully developed life cycle products ready for launch or out-licensing

Summary

2017 - the first year of visible success


Discussion

Balance Sheets – Assets

in TEUR 30.09.16 31.12.15 ∆ [abs.] ∆ [%]

Current Assets 4,825 5,664 -839 -14.8%

thereof cash & cash equivalents 273 1,588 -1,315 -82.8%

thereof Trade receiveables 1,844 1,260 584 46.3%

thereof Inventory 2,520 2,621 -101 -3.9%

thereof Other assets (shortterm) 188 195 -7 -3.6%

Non-current Assets 6,591 6,913 -322 -4.7%

thereof Intangible Assets 1,277 1,331 -54 -4.1%

thereof Tangible Assets 1,239 1,368 -129 -9.4%

thereof Goodwill 2,776 2,776 0 0.0%

thereof Customer Base 1,240 1,379 -139 -10.1%

thereof Deferred Taxes 59 59 0 0.0%

Total Assets 11,416 12,577 -1,161 -9.2%


Balance Sheets – Liabilities (abbr.)

in TEUR 30.09.16 31.12.15 ∆ [abs.] ∆ [%]

Current Liabilities 1,541 1,526 15 1.0%

thereof from banks 3 10 -7 -70.0%

thereof Trade payables 827 609 218 35.8%

thereof Other liabilities (shortterm) 589 603 -14 -2.3%

Non-current Liabilities 1,946 2,211 -265 -12.0%

thereof Pension provision 304 304 0 0.0%

thereof Other liabilities (shortterm) 1,388 1,653 -265 -16.0%

Equity 7,929 8,840 -911 -10.3%

thereof Subscribed capital 10,380 9,436 944 10.0%

thereof Capital reserve 7,617 7,371 246 3.3%

thereof Loss carryforward -7,754 -9,087 1,333 14.7%

thereof Net result -2,113 1,333 -3,446 na

Total Liabilities 11,416 12,577 -1,161 -9.2%


Cash flow Statement

in TEUR 9M 2016 9M 2015 ∆ [abs.] ∆ [%]

Cash & cash equivalents (start of period) 1,588 1,552 36 2.3%

Cash flow from operations -1,980 55 -2,035 na

Cash flow from investments -368 -12 -356 na

Cash flow from financing 1,033 860 173 20.1%

Cash & cash equivalents (end of period) 273 2,455 -2,182 -88.9%

Further key figures

Employees (FTE) 36 32 4 12.5%

Free liquidity (incl. credit lines) EUR 1.00m

Road shows in Asia and Eastern Europe in Q3 to guarantee refinancing opportunities


curasan ownership structure

2,9%

1,5%

9,1%

7,7%

5,0% 73,7%

CEO

Supervisory Board

Yinan Xiong

Alto Invest

Riemser Pharma

Free Float

Documents

Company Presentation and Update - curasan · Management: Michael Schlenk, CEO Shareholders: 74% free float, management, institutional investors Company facts Market access Under Market