Trajan Group

STEPHEN TOMISICH

CEO & MANAGING DIRECTOR

(ASX:TRJ)

◾ Company Name: Trajan Group ◾ Company ASX code: TRJ ◾ Key areas: Medical devices ◾ Key Personnel: Stephen Tomisich, CEO & Managing Director | John Eales AM, Chair | Alister Hodges, Chief Financial Officer ◾ Locations: Australia, Germany, Japan, Malaysia, United Kingdom, United States ◾ Market Cap as of 15/09/22: $316.32M ◾ 52 Week share price as of 15 September: $1.910 - $4.590 ◾ Company Website: trajanscimed.com

COMPANY PROFILE

Trajan is a global developer and manufacturer of analytical and life sciences products and devices. With products and solutions used in the analysis of biological, food, and environmental samples, the company was founded to have a positive impact on human wellbeing through scientific measurement.

The company has more than 650 people and while headquartered in Ringwood, Australia, holds a truly global footprint, with seven manufacturing sites across the US, Australia, Europe, and Malaysia.

Servicing multiple areas in healthcare, ranging from pharmaceutical drug development and medical research to public health and remote patient monitoring, Trajan’s purpose is to deliver science that benefits people.

Trajan aims to achieve this by building the capabilities to enable personalised, preventative, data-based healthcare for all.

And the company is putting its money where its mouth is, having made four acquisitions in Axel Semrau, Neoteryx, LEAP PAL Parts and Consumables, and Chromatography Research Supplies (and one strategic investment in Humankind Ventures Ltd) since listing on the Australian Securities Exchange in June 2021 – all of which have worked to expand its product, manufacturing, and geographic footprint.

German-based Axel Semrau, acquired by Trajan in November 2021, employs just over 50 staff in Europe and develops and manufactures laboratory automation and chromatography software and detection systems. It reported FY21 (year ended Sept ’21) revenues of €14.9M and EBITDA of €1.46M (normalised EBITDA of €1.67M, unaudited).

Axel Semrau owns and develops the CHRONOS intelligent sequencing software platform upon which Trajan’s automated workflows are built. Following the acquisition, Trajan plans to further invest in CHRONOS in line with its goal to simplify and automate complex analytical workflows. Axel Semrau’s presence in chromatography and portable gas detection also aligns with Trajan’s direction.

Neoteryx is a global leader in blood microsampling devices based in Torrance, California. Through the acquisition made in December 2021, Trajan’s goal is to drive the global commercialisation and adoption of microsampling at scale – especially since remote sampling is an essential element in progressing personalised, preventative, and data-based healthcare. The company is also focused on building the tools around the entire workflow, from consumer portals to laboratory automation.

While not immediately EBITDA accretive, Trajan expects to see a meaningful acceleration of the microsampling portfolio’s contribution to both its top line and EBITDA growth over the next 3-5 years.

Then there’s LEAP Pal Parts and Consumables (LPP) which Trajan acquired in December 2021. LPP operates in the specialised parts of medical instruments business, which supports customers that operate automated laboratory workflows based on the PAL platform from CTC Analytics AG Switzerland.

Trajan also has high hopes for Chromatography Research Supplies (CRS), which is a leading global manufacturer of high-quality analytical consumables that’s been in operation for over 25 years. The company and its products are highly complementary to Trajan’s existing portfolio, which are used in analytical laboratories and various other industries worldwide and are known for their quality.

These recent acquisitions performed to plan for Trajan, contributing $22.7M to revenue and $2.1M to normalised EBITDA in FY22. The company’s focus is now on fully integrating these businesses and capitalising on their synergies in FY23. And with a continued focus on its dual growth strategy of strong organic growth and strategic acquisitions and investments, Trajan won’t be stopping there.

KEY INVESTMENT HIGHLIGHTS

JUNE 27, 2022: Acquired 100% of CRS for US$43.3M (Trajan’s fourth acquisition since its June 2021 IPO), funded partially by a fully underwritten $29.7M institutional placement. JULY 15, 2022: Completed $4.7M Share Purchase Plan (SPP) to support further acquisition and organic growth objectives. AUGUST 24, 2022: Released FY22 Full Year Results with net revenues of $107.6M, up 40.5% on PCP, and normalised EBITDA of $12.5M, up 26% on PCP.