VITROLIFE AB (PUBL) PARETO SECURITIES 2018-02-08...ACQUISITION OF GLOBAL EXCLUSIVE LICENSING RIGHTS...

VITROLIFE AB (PUBL) PARETO SECURITIES 2018-02-08

Thomas Axelsson, CEO Mikael Engblom, CFO

LEADING COMPANY IN MEDICAL DEVICES FOR ASSISTED REPRODUCTION

* Rolling 12 months 2

• Sales 1 046 MSEK*

• 97% on export

• Listed on NASDAQ Stockholm Mid Cap

• Approx 370 employees

• Founded in 1994

• A Swedish company

3

10–15 % OF ALL COUPLES IN FERTILE AGE SUFFER FROM INFERTILITY

AN INCREASING TREND OF DELAYING FIRST BIRTH

4

22

24

26

28

30

32

1980 1990 2000 2012

Age

Source: UNECE Statistical Database. Data collected from Eurostat and UNICEF TransMONEE official sources

Switzerland

Portugal

United Kingdom

Denmark

United States

Hormone stimulation to increase the number of retrievable eggs

HORMONE TREATMENT

THE IVF-PROCESS – VITROLIFE PRODUCTS

5

STRONG TIME-LAPSE OFFER FOCUSED ON CLINICAL BENEFITS AND WORKFLOW EFFICIENCY

6

Primo Vision EVO+ EmbryoScope EmbryoScope+

LARGE REGIONAL DIFFERENCES ON NUMBER OF IVF CHILDREN BORN

7

IVF INFANTS PER NATIONAL BIRTH %

Source (2010): http://www.ncbi.nlm.nih.gov/pubmed/24304902, http://www.eshre.eu, Vitrolife research

GLOBAL DISPOSABLES* MARKET ESTIMATED TO SEK 4 BILLION

~ 50 000 SEK END USER PRICE GLOBAL AVERAGE

30-40% SUCCESS RATE

~ 2 000 SEK VALUE PER CYCLE DISPOSABLES*

1.9 MILLION PER YEAR OOCYTE COLLECTION

5-10% PER YEAR GROWTH RATE IN MONETARY TERMS

* Medical device disposables (excluding hormones, equipment and diagnostics)

2.5 MILLION PER YEAR EMBRYO TRANSFERS

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500-1 000 SEK VALUE PER CYCLE TIME-LAPSE

More cycles from one oocyte pick-up

Time-lapse is increasing

Pre-implantation genetic testing is increasing

Cryo-preservation is increasing

Growing middle class

Parents’ mean age is increasing

Social acceptance to do IVF

Patients more involved as decision-makers

Consolidation of IVF clinics

Increased demand for easy-to-use products and workflow efficiency

Mid-single digit growth in oocyte pick-up cycles

Higher revenue growth due to up-selling

Increased regulatory demands (higher barriers to enter)

Cooper continue to acquire med-tech companies and PGT service providers

Merck continue with Fertility Partnership but less active

MARKET TRENDS

PATIENTS IVF CLINICS TREATMENT COMPETITION

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SUMMARY Q4 AND 2017 FY

Q4: Sales of 271 MSEK (251) equals +8% in SEK Sales growth +11% in local currency EBITDA of 103 MSEK (38% margin) 2017 whole year: Sales of 1 046 MSEK (856) equals +22% in SEK Sales growth +22% in local currency EBITDA of 408 MSEK (39% margin) Continued succesful launch of EmbryoScope+ Launch of RapidVit™ Omni vitrification system After closing day: Acquisition of licensing rights to Embryo Transfer Catheter Market approval for EmbryoScope in China

10

ACQUISITION OF GLOBAL EXCLUSIVE LICENSING RIGHTS IN THE IVF FIELD TO TECHNOLOGY FOR EMBRYO TRANSFER

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Global Embryo Transfer Catheter market is estimated to 3 million catheters at a value of 500 MSEK

Vitrolife intends to market a unique ETC to enable easier and more standardized transfers with potential for improved clinical results

Approved by FDA and CE certificate Development project initiated Acquisition broadens product portfolio Initial purchase price of 5 MUSD and

potential for sales milestones and royalties Accretive to EBITDA/share from 2021

SALES AND GROWTH PER BUSINESS UNIT

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+6%

-1%

+43% TIME-LAPSE

DISPOSABLE DEVICES

MEDIA

ART EQUIPMENT

Quarterly growth Local currency

-15% SEK millions Rolling 12m

SALES AND GROWTH PER MARKET REGION

Total 11%*

Q4 GROWTH RATE COMPARED TO LAST YEAR IN LOCAL CURRENCY

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14% 43%

43%

SHARE OF VITROLIFE’S SALES ROLLING 12-MONTHS

+6% +13% +12%

* Whereof organic growth 11 percent

KEY FINANCIALS GROUP Q4

2017 Q4

2016 Q4

2017 FY

2016 FY

Sales, MSEK 271 251 1 046 856

Gross Margin % 64% 67% 65% 66%

Adj. Gross Margin %* 68% 71% 69% 69%

EBITDA, MSEK 103 96 408 303

EBITDA Margin % 38% 38% 39% 35%

Earnings per share, SEK 3.15 2.74 12.14 8.77

Net Debt / EBITDA rolling 12m

-1.0 -0.5 -1.0 -0.5

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• Fluctuations in exchange rates negatively impacted EBITDA by SEK 5 million. • After closing day: Board proposes a dividend of SEK 3.70 (2.60) per share.

* Gross margin excluding amortisation of acquisition-related intangible assets

OUTLOOK

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Long-term market growth 5-10% in monetary terms

Expansion of sales Broadening the product offering

Contact: Thomas Axelsson, CEO, taxelsson@vitrolife.com, +46 31 721 80 01 Mikael Engblom, CFO, mengblom@vitrolife.com, +46 31 721 80 14