Bioquell PLC Investor Presentation

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Presentation transcript:

Bioquell PLC Investor Presentation November 2016 Ian Johnson, Executive Chairman Michael Roller, Finance Director

New Executive team Ian Johnson, Executive Chairman Ian has spent his business career in life science and was founder and CEO of Biotrace International Plc, which was a listed company until its sale to 3M in December 2006. Ian is currently non-executive chairman of Cyprotex PLC and Quantum Pharma PLC and was chairman of Celsis International Ltd and Lumora Ltd. He has served on the boards of various public and private companies in strategic consultancy and business development capacities including: Evans Analytical Group, MyCelx Technologies Corporation and AOI Medical Inc., each AIM traded companies. Ian studied at Cardiff University obtaining a B.Sc. and M.Sc. in Microbiology. He is a chartered biologist, a member of the Royal Society of Biology and the Institute of Directors. Jay LeCoque, Commercial Director Joined the Board on 24th August 2016. Jay was CEO of Celsis International Ltd (formerly Celsis International plc) from 2000 to 2015. He joined Celsis during its start-up days in 1995 as a Director of Global Business Development. LeCoque previously worked for Baxter Healthcare (NYSE) and AptarGroup (NYSE) in various global sales and marketing roles. LeCoque received his MBA from Northwestern University’s Kellogg Graduate School of Management in 1991 and his BS from Miami University in Oxford, Ohio in 1985. Michael Roller, Group Finance Director Joined the Board on 19 March 2014. He has previously been Finance Director of a number of quoted companies, most recently Corin Group plc, has significant experience within the Life Sciences sector and is a non-executive director of Filtronic plc. He has also held a number of other senior finance roles in a broad range of listed and private companies. He qualified as an accountant with KPMG.

Recent News & Events June ‘16 Ian Johnson replaces Nigel Keen as non executive Chairman Tender offer completed - £40.8m returned to shareholders August ‘16 Offer period terminated – no satisfactory offers received Nick Adams steps down as CEO Ian Johnson becomes Executive Chairman; Jay LeCoque joins as Commercial Director Interim Announcement September ‘16 Initiated major restructuring of the Group Expect some ‘one off’ costs Expect completion by end of year

Focus on core Bio-Decontamination business (95% of Group Revenues) Life Sciences (80% of bio-decontamination revenues) new initiatives to drive top line growth US sales restructured and enhanced new international business development role Global Key Account Management new customer propositions renewed emphasis on captive consumables & recurring revenues Healthcare (20% of bio-decontamination revenues) developing new sales channels for Healthcare market increasing overlap between Life Science and Healthcare markets currently US and UK market and mainly RBDS service solution POD rental in UK Defence (5% of Group revenues) non-core business providing CBRN filtration products for vehicles and shelters

Summary revenue data £m H1 2016 H1 2015 % Bio-decontamination : 11.1 10.3 8% Defence 1.0 2.2 (55%) Total revenues 12.1 12.5 (3%) Bio-decontamination revenues Services 6.9 6.3 10% Systems 4.2 4.0 5% Recurring Revenues* 62% 61% Non-UK revenues 8.0 (72%) 7.8 (76%) 3% US dollars c. 45% Euro c. 27% * Service revenues are generally recurring / quasi-recurring Business has longstanding H2 revenues bias

Other financial information Gross margin (%) 46% 42% Overheads* (5.2) Cash overheads (ex FX)** (4.9) (5.3) EBITDA 1.7 1.4 PBT 0.5 0.1 Balance sheet: Net assets 25.0 64.7*** Net cash 7.3 47.7*** * IFRS overheads, including amortisation of capitalised R&D costs ** overheads expensing R&D and excluding £177k of net FX expense (2015: £84k profit) *** Includes cash from disposal of TRaC

Appendices

Bio-decontamination products & services Systems Services Consumables Mobile systems Fixed Systems QUBE (aseptic work station) Bio - Decon services: RBDS proactive RBDS reactive Preventative maintenance Repairs Spares Validation Hydrogen peroxide Biological indicators Chemical indicators Rental POD Flexible, ‘mix & match’ approach to providing bio-decontamination solutions, predominantly to the international Life Sciences sector

Demand driven by regulatory compliance Bioquell’s bio-decontamination technology is increasingly regulated… …and also enables clients to achieve regulatory compliance EU 72-281 ISO 18362 EU regulation of airborne disinfection systems based on a French National standard (which changed market) comes into force in February 2017 “Manufacture of cell-based healthcare product – control of microbial risks during processing” should help drive demand for the QUBE In the Life Sciences sector, a significant proportion of customers buy from Bioquell to help them achieve regulatory compliance

Launch of new fixed (wall-mounted) system Bioquell FS-1 – or ‘Flat-screen’ fixed decontamination system with consumable thin, minimised foot-print demand from clean-room users as well as material airlocks / cleanroom “pass-thrus” demand increasingly driven by regulations in Life Sciences sector Completion of the Bioquell product range: fixed, mobile and service

Evolving drivers of growth for BQ products & services complex, rapidly expanding international regulatory environment for the safe production of biologically- sensitive therapeutic products demand for cost-effective, fast-to-deploy aseptic environments rapid, aseptic transfer of heat-sensitive materials into cleanrooms after-sales support & preventative maintenance (NB regulatory requirement) pressure on costs… …and the use of technology to reduce costs growth in cell-based healthcare products – eg CAR-T mitigation of risks and liabilities for complex drug production in hospital pharmacies Regulatory compliance is a key driver of growth in the international Life Sciences market