January 21, 2021

2020 Preliminary unaudited top-line figures


Press Release - 2020 Preliminary unaudited top-line figures

Medacta Group SA continues to outperform the market[1] with a strong revenue acceleration in the second semester 2020

- FY 2020 revenues were EUR 302.5 million, only -2.1% on a constant currency basis, -2.6% reported vs 2019

- 2H revenues to EUR 167.7 million, +7.6% on a constant currency basis, largely compensating 1H results

- 2H acceleration sustained by both pent-up demand and new customers acquired

- Online efforts and tactical changes in Marketing and Medical Education Programs reflected in 2H rebound

- Continuous innovation with 30+ new products registered

- Around 80 new jobs added including significant salesforce expansion across all geographies

CASTEL SAN PIETRO, 21 January 2021 - Medacta Group SA ('Medacta', SIX:MOVE) announces today 2020 preliminary unaudited revenues. Measures adopted by governments in response to the Covid-19 pandemic caused the deferral of elective procedures with an impact on our sales in the first half of the year. In the following months, backlog recovery and continued acquisition of market share allowed to largely compensate the first half sales decrease, although it was limited by further restrictions from the pandemic resurgence starting in the end of October.

Francesco Siccardi, CEO of Medacta, commented: 'During a year strongly conditioned by the Covid-19 pandemic in all geographies, Medacta managed to restart growing in 2H20 recovering almost completely the 1H20 negative growth. I am very satisfied with how we were able to protect our business and employees while continue to serve our customers, advance innovations and prepare for our future growth, hoping to quickly overcome the pandemic' concluded Francesco Siccardi.

During the year our Marketing and Medical Education Programs never stopped, thanks to the implementation of several tactical changes and new online based initiatives which proved to be effective in maintaining existing customers and reaching new ones. Also, innovation continued and over 30 new products across our business lines were registered with more expected in the first half of this year. Growth investments carried on with significant salesforce expansion across all geographies and investment in additional surgical instruments to serve new customers.

Revenues recorded in 2020 had significant differences among product lines and geographies due to different levels of Covid-19 related restrictions during the year and diverse patterns of momentum in pre-Covid sales growth.

Medacta registered a negative growth in the core business (Hip -6.1% and Knee -4.1%) because of the already mentioned restrictions and postponement of elective procedures in the first half, partially compensated by an effective backlog recovery. The last few months of the year did see a pandemic resurgence mainly in Europe and North America.

The Extremities product line had a very positive performance (+46.6%), growing in all geographies despite the Covid-19 impact, thanks to the strong momentum carried over by new business and expansion of product range, with an increase of our market share, especially in Europe.

The Spine business line recorded good performance (+14.6%) driven by newly launched products, salesforce expansion and a gain in market share, particularly in the US.

Below we report the 2020 sales break-down by product line:


(Million Euro)
31.12.2020 31.12.2019 Reported Growth Constant Currency Growth
Hip 153.1 163.9 -6.6% -6.1%
Knee 106.2 111.7 -4.9% -4.1%
Extremities* 14.3 9.7 46.5% 46.6%
Spine 28.9 25.3 14.4% 14.6%
TOTAL 302.5 310.6 -2.6% -2.1%
* Extremities include Shoulder and Sports Med revenues
 

In terms of geographic trend, Europe registered a negative growth (-6.0%) with a significant recovery in the second half of the year. The most affected markets were France, Italy and Belgium, while the 'DACH' area recorded the smallest impact with Germany growing over the prior year.

North America was substantially unchanged compared with the previous year (-1.0%) thanks to our increasing market share that offset the negative Covid-19 effect.

APAC delivered positive performance (+9.2%) mainly due to a limited pandemic impact in Japan and Australia together with attainment of new customers through the expansion of our salesforce.
RoW recorded negative growth (-29.2%) due to stocking distributors reducing purchases in response to the Covid-19 pandemic.

Below we report the 2020 sales break-down by geographic area:


(Million Euro)
31.12.2020 31.12.2019 Reported Growth Constant Currency Growth
Europe 129.3 136.1 -5.0% -6.0%
North America 92.7 95.5 -2.9% -1.0%
Asia Pacific 72.0 66.9 7.6% 9.2%
RoW* 8.5 12.1 -29.6% -29.2%
TOTAL 302.5 310.6 -2.6% -2.1%
* RoW includes all other geographic locations, including Middle East.
 

These preliminary figures are unaudited and are based on management's initial analysis of operations for the period ending December 31, 2020 and are therefore subject to change. The company will announce its audited full year 2020 financial and operating results on March 31, 2020.

Medacta's 2020 preliminary unaudited top-line figures conference call will take place at 3:00 pm CET today. The event will be webcast live via this link. The audio webcast of the conference call will be available on our website at https://www.medacta.com/EN/financial-calendar.

The telephone conference can be accessed at:
CH: +41 445806522
DE: +49 69201744220
UK: +44 2030092470
USA: +1 8774230830

PIN: 22523666#

2021 Financial Calendar

- 31 March 2021 Publication of 2020 Full Year results

- 25 May 2021 Annual General Meeting

- 20 July 2021 Publication of 2021 Half-year unaudited top-line figures

- 10 September 2021 Half-year results 2021


Contact
Medacta International SA
Gianna La Rana, Head of Investor Relations
Phone: +41 91 696 14 95
investor.relations@medacta.ch

About Medacta
Medacta is an international company specialized in the design and production of innovative orthopaedic products and the development of accompanying surgical techniques for joint replacement, spine surgery, and sports medicine. Established in 1999 in Switzerland, Medacta's products and surgical techniques are characterized by innovation. Medacta is a pioneer in developing new offerings on the basis of minimally invasive surgical techniques, in particular its Anterior Minimally Invasive Surgery (AMIS) technique for hip replacements. Medacta has leveraged its orthopaedic expertise and comprehensive understanding of the human body to develop the sophisticated MySolutions technology, which offers surgeons highly personalized pre-operative planning and implant placement methodologies by creating advanced personalized kinematic models and 3D planning tools for use in hip, knee, shoulder and spine procedures.

Disclaimer
This press release has been prepared by Medacta Group SA ('Medacta' and together with its subsidiaries, 'we', 'us' or the 'Group'). The information contained in the press release does not purport to be comprehensive and is not to be taken as containing any securities advice, recommendation, offer or invitation to subscribe for, purchase or redeem any securities regarding Medacta.

Forward-looking information
This press release has been prepared by Medacta and includes forward-looking information and statements concerning the outlook for its business. These statements are based on current expectations, estimates and projections about the factors that may affect its future performance. These expectations, estimates and projections are generally identifiable by statements containing words such as 'expects', 'believes', 'estimates', 'targets', 'plans', 'outlook' or similar expressions. Although Medacta believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved.

Alternative Performance Measures
This press release contains certain information that it refers to as 'constant currency', which is a non-IFRS financial measure and represents the total change between periods excluding the effect of changes in foreign currency exchange rates. The Group believes that the reconciliations of changes in constant currency provide useful supplementary information to investors in light of fluctuations in foreign currency exchange rates. Furthermore, the Group believes that constant currency measures provide additional useful information on the Group's operational performance and is consistent with how the business performance is measured internally.

[1] Orthopaedic industry is expected to decline 10% in 2020. Source ORTHOWORLD, 2020 Orthopedic Market Revenue Projections, December 2020.

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