Half Year 2025 Polynovo Ltd Earnings Presentation Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Silvia Luo - J.P. Morgan Securities Australia Ltd. - Analyst : Hi, Swami, Jan, and David. Thanks for your presentation today. I'd like to talk a little bit about the MTX sales. Could we walk through in detail what supported the sales momentum? And is it more led by patient/clinical demand or the clinical education programs, which you spoke of earlier? I'll start with that. Thanks.

Question: Silvia Luo - J.P. Morgan Securities Australia Ltd. - Analyst : Okay. Helpful. Thank you. And then could I also talk about -- in the opening remarks, Swami and David mentioned that you were taking share from some established incumbents. Were you able to detail who you're taking share from and what have been the drivers?

Question: Silvia Luo - J.P. Morgan Securities Australia Ltd. - Analyst : That's very helpful and detailed. Thank you. I'll get back in the queue.

Question: Shane Storey - Wilsons Advisory and Stockbroking Limited - Analyst : Good afternoon, everyone. I'd like to go back to MTX, please, but just more from a clinical perspective. You made the comment that it wasn't cannibalizing NovoSorb in those indications beyond burn. So I guess, my question is, probably for Swami, if you could maybe give us a little bit more descriptive detail on the particular indications where you found that MTX is winning share, say, against the biologics. But just say on an indication basis, just specifically where it's finding a good audience, please?

Question: Shane Storey - Wilsons Advisory and Stockbroking Limited - Analyst : Yeah, no, it does. It does very much so. And I guess, my follow-on to that, you mentioned, I think, in '26, you might have a particular form there. And when you develop that, should we be thinking that would be like a fully implantable sort of device?

Question: Shane Storey - Wilsons Advisory and Stockbroking Limited - Analyst : Right. My final question is just for Jan. Go ahead, David.

Question: Shane Storey - Wilsons Advisory and Stockbroking Limited - Analyst : No, that's great. But my final question is really for Jan. Just if you look at the US mix over the half and what -- if I was to try and aggregate the centimeter squared sort of volume into that market between burns and trauma very broadly, how would I split that out? And how would that have compared to a year ago? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 24, 2025 / 3:00AM, PNV.AX - Half Year 2025 Polynovo Ltd Earnings Presentation

Question: Shane Storey - Wilsons Advisory and Stockbroking Limited - Analyst : Thanks, gentlemen. That's really helpful.

Question: David Nayagam - E&P - Analyst : Good day, guys. Thanks, everyone, for the color around the result. Just a couple of questions from me. First of all, I'm curious, given all the chatter that's been going around lately about the tariffs that the Trump administration have been talking about and given the potential to move this into REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 24, 2025 / 3:00AM, PNV.AX - Half Year 2025 Polynovo Ltd Earnings Presentation medical devices that's been flagged, is that something that you've thought about? And could you just give us any consideration on that given your manufacturing here in Port Melbourne?

Question: David Nayagam - E&P - Analyst : That's great. Thanks, Swami. Sorry, did you want to add anything, David?

Question: David Nayagam - E&P - Analyst : Okay, thanks. Thanks, David. I appreciate that. Just another question while I got the chance. On the upside, we're also hearing a lot about these proposed CMS LCD changes. And I know that's been pushed back again. But there's a potential there to weed out some of the smaller competitors on the skin substitute side, not the more outpatient side. But is that something that also you'd like to reflect on at all?

Question: David Nayagam - E&P - Analyst : Yeah. Okay. Thank you. And then just finally, just could you just give us a bit more detail on what a clinical development plan might look like for SynTrel and SynTrix, given you're progressing through preclinical studies now? Like, have you had any thoughts yet about what a registrational study might look like?

Question: David Nayagam - E&P - Analyst : Yeah, that makes sense. Okay, thanks very much. I'll jump back in the queue.

Question: Andrew Paine - CLSA Ltd. - Analyst : Yeah, afternoon, everyone. Thanks for taking my questions. Just some of your peers have reported slower-than-expected hospital purchasing activity at the end of last year versus what was expected. Just really good to know if you were affected by this, and are you able to call out any market trends you're seeing at the start of the year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 24, 2025 / 3:00AM, PNV.AX - Half Year 2025 Polynovo Ltd Earnings Presentation

Question: Andrew Paine - CLSA Ltd. - Analyst : Okay. So you're seeing normalized trends in purchasing at the end of the year and kind of start of this year?

Question: Andrew Paine - CLSA Ltd. - Analyst : Yeah. Great. And just also, it looks like you are going to deliver some savings in admin expenses. But the employee expenses increased as a percentage of revenue. It wasn't massive, but it ticked up. Just be good to get some insights as to what's driving this. And are there any launches that you're preparing for or focus of the ramp-up, which might require more sales members in these locations?

Question: Andrew Paine - CLSA Ltd. - Analyst : Yeah, that's great color. And so just to confirm, looking forward, are you looking at it as a ratio of revenues and looking to keep that stable just in the near term as you invest for growth? Or do you think you can start to deliver leverage through that line?

Question: Andrew Paine - CLSA Ltd. - Analyst : Okay, that makes sense. Appreciate it.

Question: Lyanne Harrison - BofA Global Research - Analyst : Hi, good afternoon, all. Can I come back to sales for a moment? And if we could focus on the United States, is there any bulk orders or stocking that you could call out that happened in '24 that might have led to, I guess, some of that sales slowing in first-half '25 (multiple speakers) focus on the US as well?

Question: Lyanne Harrison - BofA Global Research - Analyst : Okay. And it's the trials that may lead to more or less purchases by any given hospital in any given period of time. Is that what you're saying?

Question: Lyanne Harrison - BofA Global Research - Analyst : Okay. So then if I think about then the existing hospital or customer base, so excluding any ones that might be trialing it on newly or new customers, how should we think about -- or can you give us some guidance as to what the existing customer like-for-like growth was in first half '25?

Question: Lyanne Harrison - BofA Global Research - Analyst : Okay. Good. So then can I move on to MTX? You mentioned you're selling to 109 hospitals at the moment. Can you talk about what your plans are? Because I think BTM is in, what, over 500 hospitals or something like that. What are your plans in terms of rolling that out across your entire hospital customer base?

Question: Lyanne Harrison - BofA Global Research - Analyst : Okay. Fabulous. If I can move on to India, you did say that things are progressing a little bit slower than you had expected. Can you give us an indication of how many tenders have you submitted for -- and your success rates to date, and what else is in the pipeline with respect to those tenders?

Question: Lyanne Harrison - BofA Global Research - Analyst : Okay. Thank you. And just can you comment quickly on private pay? Because previously, that was a source of strength in India. Has that continued into this half? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 24, 2025 / 3:00AM, PNV.AX - Half Year 2025 Polynovo Ltd Earnings Presentation

Question: Lyanne Harrison - BofA Global Research - Analyst : Okay. Thank you. Just one final question from me. The California wildfires, which we saw, I guess, in January of this year, was there any material ordering of BTM during that period?

Question: Lyanne Harrison - BofA Global Research - Analyst : Okay, fabulous. Thank you very much.

Question: Scott Power - Morgans - Analyst : Good afternoon, Swami, David, and Jan. Just a couple of really quick questions for me. Just in terms of the BARDA program, can I just double check that the full-thickness burn submissions in, and you expect approval by the end of this calendar year? Is that timing still correct?

Question: Scott Power - Morgans - Analyst : Okay. Great. And just in terms of the less funding coming through from BARDA. You got $5.8 million, I think, in the first half. What can we expect into the second half, if you're able to just provide a little bit of guidance on that front?

Question: Scott Power - Morgans - Analyst : Okay. Great. And just finally for me, just the capital expenditure on the new facility. Can you just remind me what that's going to expand your capacity to in that third facility?

Question: Scott Power - Morgans - Analyst : Yeah. And as you said, timing end of this year, that's all on track.

Question: Scott Power - Morgans - Analyst : Right. Thank you. That's all my questions.

Question: John Hester - Bell Potter Securities - Analyst : Good afternoon. Probably a question for Jan. Jan, can you explain to us that discrepancy between the sales growth of 28% and the orders up 58%, you've got 62%. I don't know whether that's due to smaller order sizes or pricing adjustments or pretty straightforward if you can just add color.

Question: John Hester - Bell Potter Securities - Analyst : I'm glad you brought up Integra. So what is the latest from those guys? Are they sort of showing any signs of getting back to market sooner than we had anticipated in calendar '26?

Question: John Hester - Bell Potter Securities - Analyst : Yeah. Okay, well, time will tell. That is all from me. Thank you.