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OssDsign

OssDsign

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Regenerative implant technology

OssDsign is a Swedish medtech company that offers novel regenerative implants for improved healing of bone defects. The current product portfolio targets cranial and facial reconstruction and has regulatory approvals and reimbursement in place across its target markets in Europe, the US and Japan. With >800 patients treated successfully to date, we conclude that OssDsign’s technology platform is not only clinically validated, but also shows significant commercial promise. OssDsign is based in Uppsala, Sweden and had 34 employees in 2019.

OssDsign has made significant commercial progress since its IPO in mid-2019. With improved market access, commercial infrastructure, and broadened product portfolio, the company targets rolling 12-month sales to exceed SEK 200m in early 2023 (sales CAGR >75% Q1’20-Q1’23). The US and Japan will be key growth drivers, as OssDsign’s best-in-class implants are the catalyst behind continuously taking market share from existing alternatives. We note that the company’s USD 565m addressable market excludes sales potential from defects relating to congenital diseases.

OssDsign faces a crowded and tough competitive landscape. Large medtech players Stryker, DePuy Synthes and Zimmer Biomet hold a ~65% market share, and each company is likely to fight to protect its market share. Even if only a fraction of the global addressable market would mean significant revenues for OssDsign, there is still risk that the company will fail to break through the entrenched market status of its competitors. Other risks relate to its financial targets, scaling up production and sales organisations, and market acceptance.

Financials

SEKm 2021 2022e 2023e
Sales 32 53 117
Sales growth (%) 27,6 66,7 121,1
EBITDA -80 -73 -29
EBITDA margin (%) -250,7 -137,9 -24,4
EBIT adj -89 -83 -40
EBIT adj margin (%) -281,3 -157,4 -34,6
Pretax profit -94 -84 -41
EPS rep -1,65 -1,47 -0,72
EPS growth (%) 56,9 10,8 50,7
EPS adj -1,57 -1,39 -0,63
DPS 0 0 0
EV/EBITDA (x) -3,9 -2,3 -7,6
EV/EBIT adj (x) -3,5 -2 -5,3
P/E (x) -5,3 -3,2 -6,4
P/E adj (x) -5,5 -3,4 -7,4
EV/sales (x) 9,8 3,1 1,8
FCF yield (%) -23,3 -30,2 -17,7
Dividend yield (%) 0 0 0
Net IB debt/EBITDA 2,3 1,4 1,7
Lease adj. FCF yield (%) -24 -31,6 -19,3
Lease adj. ND/EBITDA 2,4 1,5 2
SEKm 2021 2022e 2023e
Other operating items -101 -110 -117
EBITDA -80 -73 -29
Depreciation on tangibles -1 -2 -2
Depreciation on intangibles 0 0 0
EBITA -85 -79 -35
Goodwill impairment charges 0 0 0
Other impairment and amortisation -3 -4 -4
EBIT -89 -83 -40
Other financial items 0 0 0
Net financial items -5 -1 -1
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit -94 -84 -41
Tax 0 0 0
Net profit -94 -84 -41
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders -94 -84 -41
EPS -1,65 -1,47 -0,72
EPS Adj -1,57 -1,39 -0,63
Total extraordinary items after tax 0 0 0
Tax rate (%) -0,2 -0,2 0
Gross margin (%) 68,6 70,3 75,8
EBITDA margin (%) -250,7 -137,9 -24,4
EBITA margin (%) -267,5 -148,6 -30
EBIT margin (%) -281,3 -157,4 -34,6
Pretax margin (%) -296,5 -158,7 -35,3
Net margin (%) -296 -158,4 -35,3
Growth rates Y/Y 2021 2022 2023
Sales growth (%) 27,6 66,7 121,1
EBITDA growth (%) -2,8 8,3 60,9
EBIT growth (%) -6,3 6,7 51,4
Net profit growth (%) -11 10,8 50,7
EPS growth (%) 56,9 10,8 50,7
Profitability 2021 2022 2023
ROE (%) -46,8 -33,8 -22,3
ROE Adj (%) -44,6 -31,9 -19,4
ROCE (%) -40,9 -31,4 -20
ROCE Adj(%) -38,9 -29,7 -17,3
ROIC (%) -96,3 -79 -36,7
ROIC Adj (%) -96,3 -79 -36,7
Adj earnings numbers 2021 2022 2023
EBITDA Adj -80 -73 -29
EBITDA Adj margin (%) -250,7 -137,9 -24,4
EBITA Adj -85 -79 -35
EBITA Adj margin (%) -267,5 -148,6 -30
EBIT Adj -89 -83 -40
EBIT Adj margin (%) -281,3 -157,4 -34,6
Pretax profit Adj -90 -79 -36
Net profit Adj -90 -79 -36
Net profit to shareholders Adj -90 -79 -36
Net Adj margin (%) -282,2 -149,6 -30,7
Sales 32 53 117
COGS -10 -16 -28
Gross profit 22 37 89
Depreciation and amortisation -5 -6 -7
Of which leasing depreciation -3 -4 -4
EO items 0 0 0
Impairment and PPA amortisation -4 -5 -5
EBITDA lease Adj -83 -77 -33
EBITDA lease Adj margin (%) -261,4 -144,7 -28
Leasing payments -3 -4 -4
SEKm 2021 2022e 2023e
EBITDA -80 -73 -29
Net financial items -5 -1 -1
Paid tax 0 0 0
Non-cash items 0 0 0
Cash flow before change in WC -84 -73 -29
Change in WC 0 -4 -11
Operating cash flow -84 -77 -40
CAPEX tangible fixed assets -1 -2 -4
CAPEX intangible fixed assets -1 -2 -4
Acquisitions and disposals -30 0 0
Free cash flow -116 -80 -47
Dividend paid 0 0 0
Share issues and buybacks 271 0 0
Other non cash items 0 0 0
Decrease in net IB debt -77 111 -74
Balance Sheet (SEKm) 2021 2022 2023
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 166 164 163
Tangible fixed assets 35 34 35
Other fixed assets 0 0 0
Fixed assets 212 208 207
Inventories 3 4 10
Receivables 6 11 23
Other current assets 3 3 3
Cash and liquid assets 202 118 67
Total assets 425 344 310
Shareholders equity 289 206 164
Minority 0 0 0
Total equity 289 206 164
Long-term debt 2 2 2
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 52 52 52
Short-term debt 1 1 1
Accounts payable 4 6 13
Other current liabilities 63 63 63
Total liabilities and equity 425 344 310
Net IB debt -184 -101 -49
Net IB debt excl. pension debt -184 -101 -49
Capital invested 105 105 115
Working capital -55 -51 -40
EV breakdown 2021 2022 2023
Market cap. diluted (m) 497 265 265
Net IB debt Adj -184 -101 -49
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity 0 0 0
EV 312 165 216
Capital efficiency (%) 2021 2022 2023
Total assets turnover (%) 9,4 13,8 35,8
Capital invested turnover (%) 31,5 33,6 61,6
Capital employed turnover (%) 18,5 24,8 43,7
Inventories / sales (%) 7,6 7,2 7,6
Customer advances / sales (%) 45 27,9 13
Payables / sales (%) 11,6 11,5 12,6
Working capital / sales (%) -172,5 -100,2 -39,2
Financial risk and debt service 2021 2022 2023
Net debt / equity (%) -63,7 -48,9 -30
Net debt / market cap (%) -35,1 -37,9 -18,6
Equity ratio (%) 68,1 59,9 53,1
Net IB debt adj. / equity (%) -63,7 -48,9 -30
Current ratio (%) 303,4 186,3 127,8
EBITDA / net interest (%) -1649,1 -11341,8 -3573,1
Net IB debt / EBITDA (%) 231,8 137,9 172,8
Interest cover (%) -1760,2 -12226,8 -4395,9
Lease liability amortisation -3 -4 -4
Other intangible assets 162 159 157
Right-of-use asset 15 15 15
Total other fixed assets 0 0 0
Leasing liability 15 15 15
Total other long-term liabilities 52 52 52
Net IB debt excl. leasing -199 -115 -64
Net IB debt / EBITDA lease Adj (%) 239,9 150,5 195,4
SEKm 2021 2022e 2023e
Shares outstanding adj. 57 57 57
Fully diluted shares Adj 57 57 57
EPS -1,65 -1,47 -0,72
Dividend per share Adj 0 0 0
EPS Adj -1,57 -1,39 -0,63
BVPS 5,07 3,6 2,88
BVPS Adj 2,23 0,81 0,12
Net IB debt / share -3,2 -1,8 -0,9
Share price 9,19 4,65 4,65
Market cap. (m) 525 265 265
Valuation 2021 2022 2023
P/E -5,3 -3,2 -6,4
EV/sales 9,84 3,12 1,85
EV/EBITDA -3,9 -2,3 -7,6
EV/EBITA -3,7 -2,1 -6,2
EV/EBIT -3,5 -2 -5,3
Dividend yield (%) 0 0 0
FCF yield (%) -23,3 -30,2 -17,7
P/BVPS 1,72 1,29 1,61
P/BVPS Adj 3,91 5,71 37,7
P/E Adj -5,5 -3,4 -7,4
EV/EBITDA Adj -3,9 -2,3 -7,6
EV/EBITA Adj -3,7 -2,1 -6,2
EV/EBIT Adj -3,5 -2 -5,3
EV/cap. employed 1 0,7 1,2
Investment ratios 2021 2022 2023
Capex / sales 6 6 6
Capex / depreciation 97,8 153,4 293,6
Capex tangibles / tangible fixed assets 2,8 4,6 10
Capex intangibles / definite intangibles 0,6 1 2,2
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 5,6 6,1 6,8
Lease adj. FCF yield (%) -24 -31,6 -19,3

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OssDsign - Company presentation with CEO Morten Henneveld
OssDsign - Company presentation with CEO Morten Henneveld

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Main shareholders - OssDsign

Main shareholders Share capital % Voting shares % Verified
SEB Venture Capital 11.5 % 11.5 % 31 Dec 2021
Karolinska Development 11.0 % 11.0 % 31 Mar 2022
Avanza Pension 7.0 % 7.0 % 31 Mar 2022
Lancelot Asset Management AB 5.7 % 5.7 % 31 Mar 2022
Nordic Cross Asset Management 5.6 % 5.6 % 31 May 2022
Fouriertransform AB 5.6 % 5.6 % 31 Mar 2022
Linc AB 5.4 % 5.4 % 31 May 2022
Nordnet Pensionsförsäkring 3.5 % 3.5 % 31 Mar 2022
Theodor Jeansson 2.9 % 2.9 % 31 Mar 2022
Fredrik Lundgren 1.6 % 1.6 % 31 Mar 2022
Source: Holdings by Modular Finance AB