131127 INTERIM RESULTS SIX MONTHS ENDED 30 SEPTEMBER 2013 Presentation
Interim Results Six months ended 30 September 2013
Disclaimer The information in this document and the related presentation do not constitute or form any part of, and should not be construed as, an offer or invitation to sell, or issue, or any solicitation of any offer to purchase, subscribe for or otherwise acquire any share or other securities in Omega Diagnostics Group PLC (“Omega") in any jurisdiction, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract therefore. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document and the presentation or their completeness. No representation or warranty, expressed or implied, is given on behalf of Omega or any of its respective directors, employees, agents or advisers as to the accuracy, completeness or fairness of the information or opinions contained herein or made in the presentation and, save in the case of fraud, no responsibility or liability is accepted (and all such liability is hereby excluded) for any such information or opinions. Readers of this document and recipients of the presentation are reminded that any decision to acquire shares in Omega should be made only on the basis of information contained in the final admission document to be issued by Omega which may be different from the information contained in this document. The information in this document may not be reproduced or further distributed to any other person or published, in whole or in part, for any purpose. Neither this document (or any copy of it) nor the information in the presentation may be sent or taken into the United States, Canada, Australia or Japan, nor may it be distributed to any US person (within the meaning of regulation S under the US Securities Act of 1933, as amended). Furthermore, this document and presentation are strictly only for persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (SI 2001/1335), as amended, (the "FPO") or persons falling within paragraph 49 of the FPO (high net worth companies, unincorporated associations etc.) or to persons to whom it may otherwise be lawful for these materials to be communicated ("Permitted Recipients"). Any persons who are not Permitted Recipients should not stay for the remainder of this presentation and, in any event, must not act or rely upon the information contained in this presentation and document. By staying for the remainder of this presentation and/or receiving this document, each participant is deemed to confirm that they are a Permitted Recipient. 2
The Omega Presentation Team
Andrew Shepherd – Chief Executive Kieron Harbinson
– Finance Director
Jag Grewal
– Sales & Marketing Director
3
Presentation Format
Core Business • Results • Challenges update • Solutions update
Future Growth Opportunities • Allergy – IDS iSYS Development • CD4 Technology Transfer and mHealth • Summary
4
Financial KPIs Six months ended 30 September 2013 Sales (£m)
£5.6m 5.5
1%
11.15.5
11.3
Gross profit (£m)
Gross profit (%)
£3.6m
64%
5.6 3.5
7.0
2% 3.5
7.1
63.6 60 3.1
3.6
1% 63
63
62.9
7.9
63.6 306
306
4.7
1.7 48
1.2
48
-74
1.3
-74
11
12
13
11
12
13
Adjusted PBT (£m)
Tax credit/(charge) £k
£0.43m 14%
£83k
60%
11
12
13
Adjusted EPS
0.6p
11%
1.7 1.7
0.43
306
1.0
0.38
0.8
0.43
0.7p
205
1.2
0.7
83 (62)
0.4p
1.3 1.3
0.6p
1.3
1.2
48
(74)
11
12
13
11
12
Adjusted PBT stated before acquisition costs, share-based payments, IFRS-related discount unwinds and amortisation of intangible assets
13
11
12
13
5
Core Business – Segmental Results Six months ended 30 September 2013 Gross Profit £m
Sales £m
3.9 2.1
3.2
4.5
4.4
2.2 + 9%
2.8
4.2
2.0
1.5
2.1 + 2% 2.7 1.4
3.1
1.7 + 11%
2.8
1.4
1.4 + 3%
2.7
0.6
1.3
1.1
- 12% Food Intolerance
Allergy and Autoimmune 2012
Infectious Disease
72%
Food Intolerance
Allergy and Autoimmune 2012
2013
Gross Margin %
0.5 - 22%
1.1
Infectious Disease
2013
Adjusted PBT £m 0.6
72%
73%
0.4
68%
1.1
69%
1.2
0.1
43%
Food Intolerance
Allergy and Autoimmune 2012
0.2
0.2 0.3
0.1
0.2
38%
Infectious Disease
-0.4 -0.6 -0.4 -0.6 Food Intolerance
Allergy and Autoimmune
Infectious Disease Corporate costs
2013 2012
2013
6
Flagship Product Sales Six months ended 30 September 2013 Genarrayt Reagent Sales Top five markets = 67% of sales Reagent sales in 35 countries to date
632 + 68%
657 + 4%
10
11
876 836 + 5% + 27%
5%
376 + 17%
9
12
Food Detective Sales
13
733 + 36%
£733k 36%
539 513 + 5% + 39%
Top five markets = 49% of sales Sales of over £900k to Poland since launch
£876k
369 348 + 6% + 169%
9
10
11
12
13
7
Direct Sales Operations Six months ended 30 September 2013 Omega GmbH
€2.12m
Seasonal trends
2% constant currency 4% actual reported Apr-Jun
Jul-Sep FY10
FY11
Oct-Dec FY12
FY13
Jan-Mar FY14
Omega Dx (Asia)
233 233
Growing momentum
168 121 115 121 115 54 23
23
Food Intolerance
64
54
24
£233k 46% constant currency
168
39% actual reported
64
24
Allergy and Autoimmune 2012
Infectious Disease
TOTAL
2013
8
Core Business – Sales Challenges 900000
800000
700000
600000
500000 1H FY13 1H FY14
400000
300000
200000
100000
0 Africa / Middle East
Asia / Far East
• Continuing political and economic instability • Subsequent pressure on sales in Middle East and Africa • Availability of currency • Focus on new countries – emerging economies (Brazil, SE Asia, Eastern Europe) • New distributor appointed in Indonesia • Good growth of FIT in Brazil
Americas
9
Core Business – Direct Operations Omega GmbH Flat in a declining market
Omega Dx (Asia) Growing momentum
• • • • • •
4% increase over PY (reported) Careful management of existing business Focus on customer service and education Reimbursement situation – lower impact Diversification of portfolio to maximise resources Export sales slow but starting to grow
• • • • •
39% increase over PY (reported) Growth drivers – FIT & Allergy (improved mix) Focus on education / CME for FIT & Allergy Increasing portfolio – Specific Protein products Number of sub-distributors increased to 84
10
Core Business – India Field Sales Force
Regional sub-stockists 12 9
1
4 1
6
5
10
9 7 Operational Non-operational
2
4
2 12
11
Allergy Development Programme
Create assays and undertake feasibility Lock down instrument protocol Optimisation and claim support Manufacturing and commercialisation
12
Allergy Development Programme
Programme Update • 13 Allergens optimised - 11 more in process • Additional 3 instruments and personnel (IDS) to assist claim support • Two additional instruments in Alva to increase resource for optimisation and claim support
Manufacturing Plan • Dispensing equipment purchased for installation into Alva • Equipment identical to that used by IDS • Cartridge design finalised
13
Allergy Diagnostics Competitiveness IDS iSYS
Phadia Immunocap 250
First available
2010
2004
Throughput
86 tests / hour
60 tests / hour
Time to first result
46 mins
103 mins
Menu
Vit D, Bone, Autoimmune, Allergy
Allergy, Autoimmune
On board storage tests
6,300 tests
2,880 tests
On board storage samples
120
50
Reagent load while running
Yes
No
14
CD4 Market opportunity
Source: UNAIDS 2010 estimates
Source: CHAI 2012 21 countries
15
Visitect® CD4 Progress update
Preferred manufacturing protocol selected Initial evaluation sites identified and ready to start upon receipt of product Pre-Launch marketing programme generating significant interest
16
Visitect® CD4 Evaluation sites US Reference Laboratory
UK Reference Laboratory
India Mozambique
= Initial evaluation sites
South Africa
Burnet Institute - Australia
= Field trial sites 17
Visitect® CD4 Pre-Launch Marketing
18
CD4 Competition landscape
19
Visitect® CD4 mHealth
20
Summary
Core business holding up Successful £4m fundraising Covered much ground on claim support with iSYS automation project Selected preferred manufacturing protocol for Visitect®CD4 Confident in delivering shareholder value
21
APPENDICES
22
Omega Diagnostics Group PLC A brief history
2006 Omega Diagnostics Group PLC Public Listing
2007 Acquisition of Genesis Diagnostics and Cambridge Nutritional Sciences
2009 Acquisition of Co-Tek
2011 2010 Formation of Indian Acquisition of IVD Subsidiary Omega Dx Division of (Asia) Pvt Ltd. Allergopharma
1987 Omega Diagnostics Ltd founded
23
Omega Management Team
Mike Gordon Operations Director
Bill Rhodes NED
David Evans Chairman
Kieron Harbinson CFO
Andrew Shepherd CEO
Iain Logan Group FC
Dr Edward Valente R&D Director
Jag Grewal S&M Director
Karsten Brenzke Omega GmbH
Jamie Yexley Genesis/CNS
Prashant Maniar Omega Dx (Asia)
24
Omega Diagnostics Group PLC 5-Year history to 31 March 2013
25
Revenue Split Year to 31 March 2013
26
Disclaimer The information in this document and the related presentation do not constitute or form any part of, and should not be construed as, an offer or invitation to sell, or issue, or any solicitation of any offer to purchase, subscribe for or otherwise acquire any share or other securities in Omega Diagnostics Group PLC (“Omega") in any jurisdiction, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract therefore. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document and the presentation or their completeness. No representation or warranty, expressed or implied, is given on behalf of Omega or any of its respective directors, employees, agents or advisers as to the accuracy, completeness or fairness of the information or opinions contained herein or made in the presentation and, save in the case of fraud, no responsibility or liability is accepted (and all such liability is hereby excluded) for any such information or opinions. Readers of this document and recipients of the presentation are reminded that any decision to acquire shares in Omega should be made only on the basis of information contained in the final admission document to be issued by Omega which may be different from the information contained in this document. The information in this document may not be reproduced or further distributed to any other person or published, in whole or in part, for any purpose. Neither this document (or any copy of it) nor the information in the presentation may be sent or taken into the United States, Canada, Australia or Japan, nor may it be distributed to any US person (within the meaning of regulation S under the US Securities Act of 1933, as amended). Furthermore, this document and presentation are strictly only for persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (SI 2001/1335), as amended, (the "FPO") or persons falling within paragraph 49 of the FPO (high net worth companies, unincorporated associations etc.) or to persons to whom it may otherwise be lawful for these materials to be communicated ("Permitted Recipients"). Any persons who are not Permitted Recipients should not stay for the remainder of this presentation and, in any event, must not act or rely upon the information contained in this presentation and document. By staying for the remainder of this presentation and/or receiving this document, each participant is deemed to confirm that they are a Permitted Recipient. 2
The Omega Presentation Team
Andrew Shepherd – Chief Executive Kieron Harbinson
– Finance Director
Jag Grewal
– Sales & Marketing Director
3
Presentation Format
Core Business • Results • Challenges update • Solutions update
Future Growth Opportunities • Allergy – IDS iSYS Development • CD4 Technology Transfer and mHealth • Summary
4
Financial KPIs Six months ended 30 September 2013 Sales (£m)
£5.6m 5.5
1%
11.15.5
11.3
Gross profit (£m)
Gross profit (%)
£3.6m
64%
5.6 3.5
7.0
2% 3.5
7.1
63.6 60 3.1
3.6
1% 63
63
62.9
7.9
63.6 306
306
4.7
1.7 48
1.2
48
-74
1.3
-74
11
12
13
11
12
13
Adjusted PBT (£m)
Tax credit/(charge) £k
£0.43m 14%
£83k
60%
11
12
13
Adjusted EPS
0.6p
11%
1.7 1.7
0.43
306
1.0
0.38
0.8
0.43
0.7p
205
1.2
0.7
83 (62)
0.4p
1.3 1.3
0.6p
1.3
1.2
48
(74)
11
12
13
11
12
Adjusted PBT stated before acquisition costs, share-based payments, IFRS-related discount unwinds and amortisation of intangible assets
13
11
12
13
5
Core Business – Segmental Results Six months ended 30 September 2013 Gross Profit £m
Sales £m
3.9 2.1
3.2
4.5
4.4
2.2 + 9%
2.8
4.2
2.0
1.5
2.1 + 2% 2.7 1.4
3.1
1.7 + 11%
2.8
1.4
1.4 + 3%
2.7
0.6
1.3
1.1
- 12% Food Intolerance
Allergy and Autoimmune 2012
Infectious Disease
72%
Food Intolerance
Allergy and Autoimmune 2012
2013
Gross Margin %
0.5 - 22%
1.1
Infectious Disease
2013
Adjusted PBT £m 0.6
72%
73%
0.4
68%
1.1
69%
1.2
0.1
43%
Food Intolerance
Allergy and Autoimmune 2012
0.2
0.2 0.3
0.1
0.2
38%
Infectious Disease
-0.4 -0.6 -0.4 -0.6 Food Intolerance
Allergy and Autoimmune
Infectious Disease Corporate costs
2013 2012
2013
6
Flagship Product Sales Six months ended 30 September 2013 Genarrayt Reagent Sales Top five markets = 67% of sales Reagent sales in 35 countries to date
632 + 68%
657 + 4%
10
11
876 836 + 5% + 27%
5%
376 + 17%
9
12
Food Detective Sales
13
733 + 36%
£733k 36%
539 513 + 5% + 39%
Top five markets = 49% of sales Sales of over £900k to Poland since launch
£876k
369 348 + 6% + 169%
9
10
11
12
13
7
Direct Sales Operations Six months ended 30 September 2013 Omega GmbH
€2.12m
Seasonal trends
2% constant currency 4% actual reported Apr-Jun
Jul-Sep FY10
FY11
Oct-Dec FY12
FY13
Jan-Mar FY14
Omega Dx (Asia)
233 233
Growing momentum
168 121 115 121 115 54 23
23
Food Intolerance
64
54
24
£233k 46% constant currency
168
39% actual reported
64
24
Allergy and Autoimmune 2012
Infectious Disease
TOTAL
2013
8
Core Business – Sales Challenges 900000
800000
700000
600000
500000 1H FY13 1H FY14
400000
300000
200000
100000
0 Africa / Middle East
Asia / Far East
• Continuing political and economic instability • Subsequent pressure on sales in Middle East and Africa • Availability of currency • Focus on new countries – emerging economies (Brazil, SE Asia, Eastern Europe) • New distributor appointed in Indonesia • Good growth of FIT in Brazil
Americas
9
Core Business – Direct Operations Omega GmbH Flat in a declining market
Omega Dx (Asia) Growing momentum
• • • • • •
4% increase over PY (reported) Careful management of existing business Focus on customer service and education Reimbursement situation – lower impact Diversification of portfolio to maximise resources Export sales slow but starting to grow
• • • • •
39% increase over PY (reported) Growth drivers – FIT & Allergy (improved mix) Focus on education / CME for FIT & Allergy Increasing portfolio – Specific Protein products Number of sub-distributors increased to 84
10
Core Business – India Field Sales Force
Regional sub-stockists 12 9
1
4 1
6
5
10
9 7 Operational Non-operational
2
4
2 12
11
Allergy Development Programme
Create assays and undertake feasibility Lock down instrument protocol Optimisation and claim support Manufacturing and commercialisation
12
Allergy Development Programme
Programme Update • 13 Allergens optimised - 11 more in process • Additional 3 instruments and personnel (IDS) to assist claim support • Two additional instruments in Alva to increase resource for optimisation and claim support
Manufacturing Plan • Dispensing equipment purchased for installation into Alva • Equipment identical to that used by IDS • Cartridge design finalised
13
Allergy Diagnostics Competitiveness IDS iSYS
Phadia Immunocap 250
First available
2010
2004
Throughput
86 tests / hour
60 tests / hour
Time to first result
46 mins
103 mins
Menu
Vit D, Bone, Autoimmune, Allergy
Allergy, Autoimmune
On board storage tests
6,300 tests
2,880 tests
On board storage samples
120
50
Reagent load while running
Yes
No
14
CD4 Market opportunity
Source: UNAIDS 2010 estimates
Source: CHAI 2012 21 countries
15
Visitect® CD4 Progress update
Preferred manufacturing protocol selected Initial evaluation sites identified and ready to start upon receipt of product Pre-Launch marketing programme generating significant interest
16
Visitect® CD4 Evaluation sites US Reference Laboratory
UK Reference Laboratory
India Mozambique
= Initial evaluation sites
South Africa
Burnet Institute - Australia
= Field trial sites 17
Visitect® CD4 Pre-Launch Marketing
18
CD4 Competition landscape
19
Visitect® CD4 mHealth
20
Summary
Core business holding up Successful £4m fundraising Covered much ground on claim support with iSYS automation project Selected preferred manufacturing protocol for Visitect®CD4 Confident in delivering shareholder value
21
APPENDICES
22
Omega Diagnostics Group PLC A brief history
2006 Omega Diagnostics Group PLC Public Listing
2007 Acquisition of Genesis Diagnostics and Cambridge Nutritional Sciences
2009 Acquisition of Co-Tek
2011 2010 Formation of Indian Acquisition of IVD Subsidiary Omega Dx Division of (Asia) Pvt Ltd. Allergopharma
1987 Omega Diagnostics Ltd founded
23
Omega Management Team
Mike Gordon Operations Director
Bill Rhodes NED
David Evans Chairman
Kieron Harbinson CFO
Andrew Shepherd CEO
Iain Logan Group FC
Dr Edward Valente R&D Director
Jag Grewal S&M Director
Karsten Brenzke Omega GmbH
Jamie Yexley Genesis/CNS
Prashant Maniar Omega Dx (Asia)
24
Omega Diagnostics Group PLC 5-Year history to 31 March 2013
25
Revenue Split Year to 31 March 2013
26
