Nanosonics Limited · ASX:NAN
Nanosonics — Canaccord Growth Conference 2013
25 slides from Nanosonics's conference presentation, August 2013
Slide 1: Leader in Infection Control Solutions
LEADER IN INFECTION CONTROL SOLUTIONS Addressing the need for safer, faster and eco-friendly high level disinfection of ultra sound probes Dr Ron Weinberger, CEO Canaccord Growth Conference August 2013
Slide 2: Disclaimer
Disclaimer This presentation is intended to provide a general outline only and is not intended to be a definitive statement on the subject matter. The information in this presentation, whether written or verbal, has been prepared without taking into account the commercial, financial or other needs o
Slide 3: Nanosonics Highlights
Nanosonics Highlights Developed proprietary automated system for low temperature, high level disinfection ® First product, trophon EPR for disinfection of ultra sound probes ® trophon EPR approved for sale in major western markets (incl. US) Achieved significant market penetration in Austral
Slide 4: Investment Thesis
Investment Thesis ® Advancing global rollout of trophon EPR – the first fully automated system for high level disinfection of ultra sound probes Addresses unmet market need: current disinfection methods are antiquated, manual, dangerous and inefficient Strong regulatory, legal liability and ec
Slide 5: Share Price Performance
Share Price Performance 1 January 2013 – 9 August 2013 APRIL MAY JUNE JULY AUGUST 5
Slide 6: Our Technology – Nano-Nebulisation for Low Temperature Disinfection
Our Technology – Nano-Nebulisation for Low Temperature Disinfection High frequency sonic vibration turns disinfecting liquid into nano-sized droplets “Nano” droplets disperse like a gas − Covers entire surface of object being disinfected NanoNebulant is a strong oxidising agent − Lethal to bac
Slide 7: High Level Disinfection Methods
High Level Disinfection Methods Unchanged for 20+ years Disinfection processes Autoclave (High Pressure / High Temperature unchanged in 20+ years Disinfection) − Standard Existing methods have high level disinfection method many shortfalls − Not an option from many disinfection requirements − Heat
Slide 8: Lead Product – trophon EPR
Lead Product –trophon EPR Low temperature high level disinfection for intra-cavity ultrasound probes • Fully automated 7 minute disinfection cycle • Compatible with • Self contained >500 probes • Non-toxic • Saves time, chemistry infrastructure • By products and cost water and • Reduces probe oxygen
Slide 9: Multiple factors driving adoption and “Standard of Care”
Multiple factors driving adoption and “Standard of Care” Regulatory − Compliance to 2008 US CDC Guidelines for disinfection / sterilisation − FDA communication – probe must be completely immersed for effective high level disinfection Safe & appealing workplace − Removes workplace exposure to haz
Slide 10: Established Sales and Distribution
Established Sales and Distribution Approved in Major Western Markets Multiple Channels to Market Approved for sale in the US and most other Exclusive North American distribution with GE major western markets Healthcare − Establishing trophon as ”Standard of Care” United Europe North America King
Slide 11: Updated marketing agreement with GE
Updated marketing agreement with GE Non-dilutive investment for trophon EPR sales and marketing activities to begin immediately Dedicated trophon EPR sales force to be established. The new trophon team to support US ultrasound sales personnel already selling trophon Funded by both GE Healthcar
Slide 12: Large and Accessible Market
Large and Accessible Market Distribution of ultrasound machines globally USA addressable install base: ~40,000 trophon EPR 30% − Equivalent sized markets in both Europe and RoW 34% Current end sale price ~ US$10,000 per unit − average consumables ~ $3,000pa 36% − additional revenue from service
Slide 13: Attractive Revenue Model
Attractive Revenue Model Multiple revenue streams: Up-front sales plus consumables, accessories and service contracts Accessories Trophon Consumables Service & maintenance contracts 35% 5% 45% 15% Figures refer to % of revenue Each unit sale results in robust annuity type revenue streams moving forw
Slide 14: trophon EPR Lifecycle Revenue Example
trophon® EPR Lifecycle Revenue Example Revenue $A'000 Year 1 Year 2 Year 3 Year 4 Total Trophon 10.0 10.0 Consumables Sonex 3.0 3.0 3.0 3.0 11.9 Chemical Indicator 0.3 0.3 0.3 0.3 1.4 3.3 3.3 3.3 3.3 13.3 Accessories Cart (or Wall Mount) 1.4 1.4 Printer 0.8 0.8 Software 0.7 0.7 2.8 2.8 Service - 1.4
Slide 15: North American Sales Leading the Way
North American Sales Leading the Way North American IB Growth Trajectory Revenue by Market Installed base Rest of the Expanded US world 3% sales team ANZ 13% GE trophon® EPR contract entered Canadian signed Market North America GE Incentive 83% Scheme updated 1st US shipment Dedicated BD Manager and
Slide 16: Many Key Sites Already on Board
Many Key Sites Already on Board Institution Units Location SCRIPPS CLINIC (multiple sites) 21 California, CA BRIGHAM AND WOMAN’s 21 Boston, MA MASSACHUSETTS GENERAL 26 Boston, MA JOHNS HOPKINS 20 Baltimore, MD BETH ISRAEL DEACONESS MEDICAL 38 Boston, MA CENTER INC WALTER REED NATIONAL MILITARY 8 Bet
Slide 17: Strong Customer Satisfaction to Date
Strong Customer Satisfaction to Date Successful “Try it and Buy it Program” − 80+ sites trialled − An average of 2.5 units sold per unit trialled What the market is saying about trophon: EFFICIENT: Independent cost / benefit analysis concludes trophon® EPR is more efficient and easy to use – s
Slide 18: Platform for Future Growth
Platform for Future Growth Utilising our strong IP position to develop extended applications for our disinfection technology − R&D team of 8 people − FY13 A$2m-A$3m budget on new product development − ENT market and TEE (Trans oesophageal Echocardiography) probes − Investigation of expanded applic
Slide 19: Upcoming milestones
Upcoming milestones Leverage investment in sales resources by NAN, GE and Toshiba to accelerate growth in key markets of North America and Europe Maximise penetration in home market – Australia and New Zealand Further European distributor appointments Capitalise on regulatory changes in Euro
Slide 20: Appendices
nanoSsonics _’ APPENDICES
Slide 21: Capital Structure and Register
Capital Structure and Register As of June 30, 2013 Shares on issue ~262.8 million shares Market capitalisation ~$159 million Cash balance $24.1 million Average daily trading volume (12 months) 0.198 million shares Share register breakdown Substantial shareholders % Founders and Related Institutions
Slide 22: Recent Financial Performance
Recent Financial Performance A$’000s 2010 2011 2012 2013 Operating Revenue 763 2,247 12,301 14,899 % Change y-o-y 147% 194% 447% 21% Cost of Sales (284) (981) (4799) (6428) Gross Profit 479 1,266 7,502 8,471 Other Income - Government Grants 161 – 150 1,498 Operating Expenses (8,827) (13,229) (12,634
Slide 23: Company History – Major Events
Company History – Major Events 2001: Founded to develop or commercialise nano- nebulant technology for Mar 2009: First low temperature Trophon sales to disinfections Australian market Jun 2012: A$10m+ Apr 2008: Trophon Feb 2011: Trophon Jul 2011: North North American revenue CE mark certification FD
Slide 24: Executive Team
Executive Team Joined the company in August 2004 and was appointed Managing Director and CEO in December 2011 Ron Weinberger Co-inventor of several key Nanosonics’ inventions which underpin the company’s technology platform CEO and Executive Director Has a PhD in medical research and over two
Slide 25: Board of Directors
Board of Directors Appointed Non-Executive Chairman March 2007, Director since 2000 Maurie Stang Entrepreneur with over 20 years of experience in building and managing companies in the healthcare and Non-Executive Chairman biotechnology sector Currently Non-Executive Chairman of Aeris Environm