Presentation

Company Profile
Mentice offers simulation solutions for the medical sector with a focus on the fast-growing market for endovascular procedures. The simulators are used to educate, train, and improve surgeon’s skills in various types of procedures and when introduced to new clinical instruments. Mentice was founded in 1999 and has since then developed a wide product portfolio with a majority of the largest medical technology companies as clients. Mentice has an installed base of some 1800 systems including approximately 500 hospitals around the world. The company was introduced on Nasdaq First North in June 2019 after a period of strong growth and improving margins.

Q2 and recent highlights
The order intake increased by 42% y/y and beat our forecast by 15%, while net sales increased by 91% y/y and exceeded our expectations by 16%. Strategic Alliances were down 40% y/y in H1, but the company anticipates sales picking up during H2 and expects full-year sales to exceed those in 2020, i.e., more than SEK 14.2m. The gross margin of 80% was lower than the PAS estimate of 82%, but the underlying gross margin FX adjusted was near 85%, indicating that we can expect high margins in H2 as well. The company received an order of 5.9 SEKm from Baylis Medical Company for their simulation solutions for use in Baylis’ portfolio of transseptual puncture procedures.

Outlook
We now forecast group sales growth of 35% for full-year 2021, above the company’s financial target, and opex to increase to SEK 137m, which is lower than in 2019 when it amounted to SEK 143m. The company has financial targets of 30-40% average annual revenue growth and 30% EBITDA margin for the next 3-5 years.