Deltex Medical : Interim Results Presentation 2021

Deltex Medical Group plc

Interim results to 30 June 2021 Company Update

20 September 2021

Andy Mears

Chief Executive Officer

Natalie Wettler

Group Finance Director

© Deltex Medical Group plc (2021). All rights reserved.

Deltex Medical

Why monitor haemodynamics? Why Deltex Medical?

Haemodynamic monitoring

• Visualisation & measurement of circulating blood volume, which is a function of blood flow, blood pressure and resistance

Criticality of blood flow

If circulating blood flow is not optimised during surgery, or in intensive care then:

• inadequate blood and oxygen supply to vital organs (e.g. gut, kidneys, liver) can occur
• increases the risk of organ under-perfusion & harm
• increased risk of over-perfusion and patient injury

Scientific evidence

The use of Deltex Medical's

TrueVue Doppler haemodynamic monitoring technology has been proven in 24 randomised controlled trials (RCTs) to:

• reduce avoidablecomplications, including major ones such as Acute Kidney Injuries (AKIs) & Surgical Site Infections (SSIs)
• improve outcomes for both high risk and low-to-moderate risk patients
• give rise to shorter patient length of stay
• lower costs to healthcare systems
• improve patient safety

Deltex Medical TrueVue System

The only haemodynamic monitoring technology that can independently measure both blood flow & blood pressure across each and every heart beat

TrueVue Platform:

• Doppler
• Impedance
• PressureWave
• core technology within Deltex Medical's portfolio
• high precision, beat-to-beatreal-time information on the patient's circulating blood volume
• global 'gold standard' for precision haemodynamic monitoring
• high margin, single-use disposable ultrasound probe

2

Increasing pressure from health systems, regulators, patient safety advocates & payers to reduce risks to patients, with a particular focus on 'avoidablecomplications'

"Navigating haemodynamics - see what we see"

Deltex Medical

Effect of COVID-19 on our business

By the end of 2019 we had turned the business around and had reported positive EBITDA.

But then COVID-19 hit

• pre pandemic c.80% of Deltex Medical's revenues were generated from elective surgery
• the effect of COVID-19 on elective surgery - and hence Deltex Medical - has been substantial

3

"Navigating haemodynamics - see what we see"

Deltex Medical

Summary P&L information to 30 June, 2021

£000		30 June 2021		30 June 2020
Probe revenues	923	86%	1,044	90%
Other revenues	149	14%	113	10%
Total revenues	1,072	100%	1,157	100%
Gross margin	691	64%	756	65%
Administrative costs	(777)		(578)
Sales & distribution costs	(466)		(550)
R&D and Q&R costs	(117)		(186)
Total overheads	(1,360)		(1,314)
Adjusted EBITDA*	(242)		(241)
Operating profit / (loss)	(451)		(490)
Loss for the period	(524)		(574)

4 * Earnings before interest, tax, depreciation and amortisation, share-based payments, non-executive directors' fees and other items (Note 5 in the interims)

"Navigating haemodynamics - see what we see"

Deltex Medical

Summary balance sheet information at 30 June 2021

£000		30 Jun		30 Jun
		2021		2020
						Borrowings
Property, plant &	271	344
equipment					Trade & other payables
Intangible assets	2,756	2,696
	Total current liabilities
Financial assets at	157	159		Borrowings
amortised cost
				Trade & other payables
Total non-curr. assets	3,184	3,199
	Provisions
Inventories	812	1,000
	Total non-curr. liabilities
Trade & other	392	655
	Total liabilities
receivables
Other current assets	212	431
Cash & cash equivalents	553	568
Total current assets	1,969	2,654
Total assets	5,153	5,853
	Net assets

30 Jun		30 Jun
2021		2020
(163)	(77)
(1,527)	(2,185)
(1,690)	(2,262)
(1,010)	(1,092)
(252)	(300)
(51)	(65)
(1,313)	(1,457)
(3,003)	(3,719)

2,150 2,134

5

"Navigating haemodynamics - see what we see"