Slide 1: Compumedics Limited Corporate Presentation – September 2015
For personal use only Compumedics Limited Corporate Presenta2on – September 2015 1
Slide 2: Investor Overview
Investor Overview For personal use only • FY 15 Highlights: $33.5m sales, revenue growth 9%, EBITDA $4.1m, NPAT $2.0m • Core business: now highly profitable and continues to grow with the full benefits of the earnings initiatives undertaken in recent years still to flow through. • New Product platfo
Slide 3: Who is Compumedics?
Who is Compumedics? For personal use only • Compumedics is a leading global, innovative developer and manufacturer of medical devices for: – Diagnosing sleep disorders – Monitoring neurological disorders including long-term epilepsy monitoring (LTEM) – Highly sophisticated brain research – Ultrasoni
Slide 4: Directors & Executive Team Key Management
Directors & Execu2ve Team Key Management For personal use only David Burton, Ph.D. Execu5ve Chairman, CEO Founder, Tenure 26yrs NED Mr. David Lawson Mr. Alan Anderson Chief Financial Officer & Leading USA AWorney Company Secretary CMP Tenure : 11 yrs CMP Tenure 13 yrs Mr. Warwick Freeman Kerry Hubick,
Slide 5: A Tradition of Innovation
A Tradi2on of Innova2on For personal use only Comperio DQ Summit IP SynAmps2 2004 2005 Somté 2003 2001 Siesta 802 Siesta 2000 2005 P Series 1994 S Series 1987 Somté PSG 2006 Neuvo LTM SynAmpsRT 2007 2008 CURRY6 Somnilink SPAP 2009 2010 Grael HD Somfit 2010 2015 Somté PSG 2.0 2011 5
Slide 6: Established Client Profile
Established Client Profile For personal use only 6
Slide 7: Core Sleep and Brain Diagnostic Monitoring Business
For personal use only Core Sleep and Brain Diagnos2c Monitoring Business 7
Slide 8: FY15 Results
FY15 Results For personal use only • Revenue and profit figures in line with guidance • New sales orders taken in FY2015 were 19% higher than new sales orders taken in FY2014. Driven by growth in US, China and Europe. • Sales order backlog con2nues to decline, although late rush of sales orders receiv
Slide 9: Revenue Composition at ≈$33m June 2015
Revenue Composi2on at ≈$33m 30 June 2015 For personal use only By geographic region By product/market Tech. Europe, Supply Service, 16% Items, 8% Sleep, USA, 9% 28% 34% Asia, Brain Blood Neuro, 34% 12% Aust, Flow, Brain 16% 21% Res, 21% So#ware upgrades 5 to 10% of system sales Compumedics sells dir
Slide 10: Core Business Overview
Core Business Overview For personal use only • The core business has returned to strong operating profitability and is positioned for significant earnings growth in the years ahead • Cost reduction initiatives for the assembly and manufacture of key products are yet to fully flow through to the bott
Slide 11: International Growth – Geographic Expansion
Interna2onal Growth – Geographic Expansion For personal use only • Expand our US sales force and management team to further build our market presence in the largest markets for sleep diagnos2cs and neurology. • Establish an office in Germany, a rela2vely untapped market for Compumedics to date. • Push
Slide 12: Product Matrix
Product Matrix For personal use only Product Used for Bought by Average selling price Grael Sleep and Hospitals, doctors and USD17,500 neurology service providers Somte PSG Sleep Hospitals, doctors and USD10,000 service providers Siesta Sleep and Hospitals, doctors and USD18,000 neurology service pr
Slide 13: Historical Full Year Revenues
Historical Full Year Revenues 12 months to 30 June For personal use only Shipped and invoiced 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 FY2013 FY2014 FY2015 F'cast FY2016 H1 Rev F'Cast Rev
Slide 14: Historical Full Year Earnings
Historical Full Year Earnings 12 months to 30 June For personal use only NPAT EBITDA 4 6 3 5 4 2 3 1 2 0 FY2013 FY2014 FY2015 Fcast 1 FY2016 -‐1 0 FY2013 FY2014 FY2015 Fcast -‐2 FY2016 NPAT F'Cast NPAT EBITDA F'Cast EBITDA Full year EBITDA for FY2016 is es2mated between $4.5m and $5.5m. Excluding
Slide 15: Employee Composition at ≈120 staff June 2015
Employee Composi2on at ≈120 staff 30 June 2015 For personal use only By geographic region By func5on Mid Admin Asia, Sales & East, USA & & Fin, Quality, 3% Mark, 1% LA, 14% 2% Europe, Manuf, 23% 31% 30% 20% Service, Aust, R&D, 19% 35% 22% Compumedics has its Head Office in Melbourne, Australia with add
Slide 16: Tide turning post GFC and high AUD
Tide turning post GFC and high AUD For personal use only 45,000 5,000 40,000 4,000 35,000 3,000 30,000 25,000 2,000 20,000 1,000 15,000 -‐ 10,000 5,000 -‐1,000 -‐ -‐2,000 2009 2010 2011 2012 2013 2014 2015 Revenues EBITDA 1.2000 1.0000 0.8000 0.6000 0.4000 0.2000 0.0000 2009 2010 2011 2012 2013
Slide 17: Growth Drivers – Core business
Growth Drivers – Core business For personal use only • Compumedics/NeuroScan LTEM innovative brain analysis software and high performance amplifiers are unrivalled world class technology • We have >20,000 systems installed worldwide. Strong reputation and brand name. Customers like buying from Compu
Slide 18: Earnings improvement activities
Earnings improvement ac2vi2es For personal use only • Outsourcing Manufacturing – lower cost regions of China and Taiwan • EEG cap produc2on completely relocated at Dec 14 and Grael produc2on to be completed by Dec 2015 • Offshore or specialist purchasing houses to increase quality and drive down cos
Slide 19: Growth Strategies – core business: USA Clinical Sales Force Expansion
Growth Strategies – core business USA Clinical Sales Force Expansion For personal use only More sales representatives > more revenue Past for both sleep and neurology USD4.5m FY2015 - Now USD6.4m FY2016 USD10.0m FY2017 USD15.0m
Slide 20: China – We are the number one Premier Supplier
China -‐ We are the number 1 Premier Supplier Compumedics Clients in China For personal use only China Sales – USD’s 10 5 0 FY12 FY13 FY14 FY15 20
Slide 21: Strategic Value Realisation
For personal use only Strategic Value Realisa2on 21
Slide 22: Strategic value realisation
Strategic value realisa2on For personal use only The company is currently considering op2ons to simplify its business and unlock significant value for shareholders by: • Spinning out its Germany based DWL Transcranial Doppler (TCD) ultrasound blood flow business • Spinning out its Brain Research busin
Slide 23: DWL Spin out opportunity
DWL Spin out opportunity For personal use only • DWL is the founding business and global leader in TCD ultrasound. • Short term growth opportunities in 3D Transcranial Colour Doppler (TCCD)/Duplex Imaging • Medium term growth opportunities in TBI and Stroke Market • 3D TCCD is a US$900m vs DWL’s cur
Slide 24: Brain Research Spin Out Opportunity
Brain Research Spin Out Opportunity For personal use only • Growth outlook – significant for Neuroscan CURRY – World’s best of class brain analysis software • Enormous neurology devices demand – est. $7bn pa by 2017 up from $2bn in 2010 • CURRY multi modal brain analysis technology – traditional res
Slide 25: eHealth – Next Phase in Compumedics Growth
For personal use only eHealth – Next Phase in Compumedics Growth 25
Slide 26: Medical Innovations – eHealth
Medical Innova2ons – eHealth For personal use only • Compumedics is developing eHealthMedics, an online professional sleep services platform • Sleep diagnostics is traditionally delivered as a lab-based (equipment intense) or Home Sleep Testing service eHealthMedics has re-architected its solution s
Slide 27: eHealthMEDICS - Competitive Advantage
eHealthMEDICS -‐ Compe22ve Advantage For personal use only • The scalability and cost efficiencies of eHealthMedics vs tradi2onal sleep diagnos2cs allow the service to accommodate very large sleep-‐disordered popula2ons, even in regions where private or public health insurance is limited or non-‐ex
Slide 28: eHealthMEDICS – Making Progress
eHealthMEDICS – Making Progress • eHealthMedics has already locked in excess of $10m of forward orders over the next three For personal use only years (primarily in China) for its professional services plaxorm. Ini2al pilot sites commence in May and June this year • Opera2onal systems have been deve
Slide 29: eHealthMEDICS - eHealth services platform leveraging core competencies
eHealthMEDICS -‐ We bring to the table a eHealth services plaxorm that leverages core competencies built over 25 years For personal use only mHealth Product Ecosystem: Required Competencies • Inc. medical data security [tradi5onal business] (FDA, CE, TGA compliant, US est. 1987 HIPPS) • Medical gra
Slide 30: Investor Summary
Investor Summary For personal use only • Core business con2nues to grow • Interna2onal sales force expansion, neurology market opportunity and earnings improvement ini2a2ves to con2nue to drive growth of core business • Compumedics remains commiWed to con2nuing to deliver superior returns to shareho
Slide 31: OneMedForum 2011 - San Francisco
For personal use only OneMedForum 2011 - San Francisco Wednesday 12 January 2011 31