Fisher & Paykel Healthcare Corporation Limited · NZX:FPH
Fisher & Paykel Healthcare — Investor Day (September 2018)
114 slides from Fisher & Paykel Healthcare's investor day presentation, Sep 21, 2018
Slide 1: Investor Day Presentation in Mexico and the United States
Stock Exchange Announcement STOCK EXCHANGE LISTINGS: NEW ZEALAND (FPH), AUSTRALIA (FPH) For personal use only Fisher & Paykel Healthcare Investor Day Presentation in Mexico and the United States Auckland, New Zealand, 21 September 2018 - Fisher & Paykel Healthcare Corporation Limited (NZX:FPH, ASX:F
Slide 2: US and Mexico Investor Day 2018
US and Mexico “% Investor Day 2018 21 September 2018 Fisher & Paykel HEALTHCARE
Slide 3: Morning Agenda
Morning Agenda 8:30am 8:30am 8:45am 9:30am 10:30am 1:00am 11:30am 12:30pm- 1:30pm Welcome Marcus Driller Manufacturing Overview Andrew Somervell Mexico: Delivering Sustainable Growth Raul Sanchez Malena Ortiz Tour of Spence Manufacturing Facility Raul Sanchez Complete facility tour and board coach T
Slide 4: Our approach to Manufacturing
Our approach te ian | > ; Manufacturing _ | 4 y _ eo Dr Andrew Somervell = VP - Products & Technol Fisher & Paykel HEALTHCARE
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Slide 8: Questions?
Questions? Dr Andrew Somervell \ VP - Products & Technology 3 a Fisher & Paykel HEALTHCARE
Slide 9: Mexico: Delivering Sustainable Growth
For personal use only Mexico: Delivering Sustainable Growth Raul Sanchez General Director Mexico Operations Malena Ortiz Finance & Group Services Director HEALTHCARE
Slide 10: For personal use only
For personal use only • • • • • Source: Tijuana Medical Cluster/Instituto Nacional de Estadística y Geografía (INEGI) 9
Slide 11: Medical Device Industry in Tijuana
Medical Device Industry in Tijuana >2.4 million employees in the Maquiladora Industry in Mexico in 5,000+ companies. >38,000 people 44+ Medical Device manufacturing plants in Tijuana. Hospitalization 02 |___ 0! Ophthalmology and Surgery ia GBD B8nypro SURGICAL it Yeats 02 Respiratory smiths MERTEDIC
Slide 12: Our Journey
Our Journey SE99 999990 Lease agreement signed and fit-out starts. f AAA Fit-out completed. First full face mask shipped. First breathing circuit shipped. First shipments to Europe. Received Japan accreditation. Started HC405 mask production. Second chamber line installed. Commenced production of Ev
Slide 13: La Encantada Campus, Tijuana, Mexico
La Encantada Campus, Tijuana, Mexico os Fisheré.Paykel HEALTHCARE
Slide 14: Melville Building, La Encantada Campus
Melville Building, La Encantada Campus 7 the Z, fag O9FeSS™ Building Size m2 : 22,888 eS z < te Fisheré.Paykel HEALTHCARE
Slide 15: Our People
Our People NUMBER OF EMPLOYEES IN MEXICO 1000 7 900 800 700 600 or 826 667 507 500 469 400 33g 38 300 243 200 100 ° FYI FYI2. FYI3. ~FYI4. -FYIS) «-FYI6. «FYIT.—s FYB 44% Male 56% Female 1,000+ associates 64% Direct 36% Indirect Fisher & Paykel HEALTHCARE u
Slide 16: For personal use only
For personal use only *Source: Ruiz-Morales y Asociados Firm 15
Slide 17: Continuing Education
Continuing Education We believe that Educational Program: education is not an 07 Master's Degree opportunity but an investment in our future. O9 Bachelor’s Degree 84 High School Graduates: O2 master’s Degree citys oO cA sites UNIVERSIDAD O1 Bachelor’s Degree 18 High School MIT ue, GliRabas ONBEEES F
Slide 18: Mexico Objectives
Mexico Objectives LICENSE TO SUPPLY CHAIN PROCESS BUSINESS OPERATIONAL OPERATE INTEGRATION FOCUSED INNOVATION EXCELLENCE Fisher & Paykel HEALTHCARE
Slide 19: Operational Excellence
Operational Excellence Fisher’ Paylel Results Enterprise Alignment SA Continuous Improvement People GUIDING PRINCIPLES SUPPORTING CONCEPTS Cultural Enablers l YS Bw? Creating long-term and sustainable solutions rather than leaving temporary fixes in place. Fisher & Paykel HEALTHCARE
Slide 20: People Initiatives
People Initiatives 56+ Kaizen Events 38+ Lean | Six Sigma Certifications Workplace Optimization After Fisher & Paykel
Slide 21: Employee Health & Safety
20 Employee Health & Safety We know that tomorrow matters as much as today. We are one connected family and what makes us family is our commitment to work well and live better. @) Process | 0 Plant 4 Oy Fisher & Paykel HEALTHCARE
Slide 22: Workstation Ergonomics
Workstation Ergonomics After HEALTHCARE
Slide 23: Quality
Quality Fisher & Paykel HEALTHCARE
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oO =) a THA s 0D Sse Y) MS O 12) Cc D O LL oO
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24 For personal use only 17
Slide 26: Questions?
For personal use only Questions? Raul Sanchez General Director Mexico Operations Malena Ortiz Finance & Group Services Director Fisher & Paykel HEALTHCARE
Slide 27: Afternoon Agenda
Afternoon Agenda 1:30pm Sustainable Profitable Growth Lewis Gradon Managing Director & CEO 1:40pm Global Sales Approach Paul Shearer Senior VP - Sales & Marketing 2:00pm North American Overview Justin Callahan President - US Operations 2:25pm US Hospital Overview Steve Lacke VP Sales & Marketing - U
Slide 28: Our Aspiration: Sustainably Doubling Revenue
OUR ASPIRATION: ra) ® A) @ Sustainably RESPIRATORY CPAP HOSPITAL HOME SURGICAL HUMIDIFICATION THERAPY/OSA RESPIRATORY RESPIRATORY TECHNOLOGIES D fe) U B LI N G SUPPORT SUPPORT our constant currency revenue every 5-6 years. } Fon) SHORT-TERM MEDIUM-TERM LONGER-TERM “CONSTANT CURRENCY Fisher & Paykel
Slide 29: Global Sales Approach
v Global Sales Approach Paul Shearer Senior VP - Sales & Marketing Fisher & Paykel HEALTHCARE
Slide 30: Strong Global Presence
29 Strong Global Presence REVENUE BY REGION Fisheré.Paykel - "12 MONTHS TO 31 MARCH 2018 HEALTHCARE
Slide 31: Multi-Channel Distribution Model
Multi-Channel Distribution Model DIRECT SALES OPERATION Control of sales process Sales force focus Accelerates sales Fisher & Paykel HEALTHCARE
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Slide 33: Clinical Change Process
Clinical Change Process C PRODUCT DEVELOPMENT FEEDBACK D) f YY TRUSTED ADVISOR Process: © nce © ee © }$ed6 nowledge LONG COMPLEX SALES CYCLE ] use only na For perso Fisheré.Paykel 32 HEALTHCARE
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Slide 35: Questions?
v Questions? Paul Shearer Senior VP - Sales & Marketing Fisher & Paykel ba HEALTHCARE
Slide 36: North America Overview
North America Overvi Justin Callahan, President Fisher & Paykel Healthcare Inc.
Slide 37: Overview of our North American Business
Overview of our North American Business NORTH AMERICAN REVENUE NORTH AMERICAN EMPLOYEES US$M 350 350 8,000+ direct 300 300 customers 250 250 200 200 150 150 250,000 square 100 100 feet of distribution facilities 50 50 ie) ie) e S ae @ FP PS PS F925 300+ employees Fisheré.Paykel 36 HEALTHCARE
Slide 38: Customers & Distribution Channels
37 Customers & Distribution Channels Therapy Hospital High Flow Therapy NIV Humidification & Masks Invasive Humidification Infant CPAP Infant Resuscitation > > Homecare High Flow Therapy Sleep Therapy NIV Humidification & Masks Invasive Humidification > Distribution Channel Distribution Partners F&P
Slide 39: How does payment work?
38 How does payment work? HOSPITAL Physician Distributors DRG - Diagnosis Related Groups Reimbursement tied to specific diagnosis during inpatient stay. HOMECARE Physician Reimbursement FFS - Fee for Service Reimbursement generally tied to specific product HCPC code for use in the home. Fisher & Pay
Slide 40: Our People and Our Culture
39 Our People and Our Culture North American engagement score Global top quartile for AON Hewitt surveyed companies We believe our people are our strength, and that an engaged workforce drives our success. We know it takes several years for a sales rep to become fully effective due to our long compl
Slide 41: Questions?
Quest Justin Callahan, President Fisher & Paykel Healthcare Inc. Fisheré.Paykel HEALTHCARE
Slide 42: US Hospital Overview
US Hospital Overview Steve Lacke, VP Sales & Marketing Steve Wilson, National Sales Manager Fisher & Paykel HEALTHCARE
Slide 43: Our Route to Market
Our Route to Market Fisher &.Paykel HEALTHCARE Group Purchasing Organizations Represent ~98% of US hospitals Combine the buying power of their members Negotiate standardized pricing and contract terms Fisher & Paykel HEALTHCARE
Slide 44: GPO Process
GPO Process + BEG MEMBERSHIP HOSPITAL GPO y, 43 NEGOTIATE: > PRICING Fisher& Paykel > CONTRACTS HEALTHCARE > FEES S Fisher& Paykel HEALTHCARE
Slide 45: Estimated GPO Market Share
44 Estimated GPO Market Share BVizient m Premier mw HealthTrust Intalere m@ Others MARKET SHARE Fisher & Paykel HEALTHCARE
Slide 46: Integrated Delivery Networks (IDNs)
45 Integrated Delivery Networks (IDNs) An IDN is a network of facilities that work together to offer a continuum of care to a specific geographic area or market Negotiate dollar and volume commitments with GPO contracted suppliers GPO Fisheré.Paykel HEALTHCARE
Slide 47: Health of US Hospitals/Regulatory Environment
46 Health of US Hospitals/Regulatory Environment Challenges Healthcare costs and spending exceed rates of inflation - Medicare Office of Actuary estimates healthcare spending will grow at an average rate of 5.8% from 2015 to 2025, 1.3% greater than the expected increase in GDP. Pricing pressure - CM
Slide 48: Our Key Products in the Hospital
47 Our Key Products in the Hospital Resuscitation Invasive Non-invasive ventilation ventilation Nasal high flow Fisheré.Paykel HEALTHCARE
Slide 49: Optiflow Nasal High Flow Therapy
Optiflow Nasal High Flow Therapy Optiflow Nasal High Flow therapy has been clinically proven to reduce the escalation of care when compared to other more conventional therapies (Oxygen Cannula, Oxygen Mask, NIV) Reducing the escalation of care within the acute care facility provides a positive impac
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Slide 53: Questions?
Questions? Steve Lacke, VP Sales & Marketing Steve Wilson, National Sales Manager Fisher & Paykel HEALTHCARE
Slide 54: Afternoon Break
Ir personal use only Afternoon Break Fisher & Paykel
Slide 55: Nasal High Flow Therapy: UCSD Perspective
For personal use only Nasal High Flow Therapy: UCSD Perspective Timothy A. Morris, M.D. Professor of Medicine Division of Pulmonary and Critical Care Medicine Medical Director, Respiratory Care University of California, San Diego Disclosure: Timothy Morris, M.D. will be reimbursed by Fisher & Paykel
Slide 56: UC San Diego Healthcare
UC San Diego Healthcare For personal use only • UCSD Hillcrest Medical Center (390 beds) • Jacobs Medical Center (364 beds) • Sulpizio Cardiovascular Center (54 beds) • Average Daily Census: 504 • Annual Discharges: 29,200 • Average Length of Stay: 6.13 • Emergency Visits: 77,603 55
Slide 57: My roles
My roles For personal use only • Medical Director, Respiratory Care Department • Medical Director, Pulmonary Physiology Lab • Clinical Service Chief, Pulmonary and Critical Care • Critical care physician • Past-president, National Association for Medical Direction of Respiratory Care • President, Re
Slide 58: Clinical niches at UCSD
Clinical niches at UCSD For personal use only • Provide oxygen to alveoli 57
Slide 59: Provision of oxygen
Provision of oxygen For personal use only • FO2 of – 2 LPM NC – 6 LPM NC – 10 LPM face mask – 100% non-rebreather mask 58
Slide 60: Inspiratory flow rates
Inspiratory flow rates For personal use only 30 L/min 350 L/min 59
Slide 61: Supplied vs entrained air
Supplied vs entrained air For personal use only 2 LPM 100% O2 ??% O2 21% O2 Inspiratory flow 60
Slide 62: Supplied vs entrained air
Supplied vs entrained air For personal use only 6 LPM 100% O2 ??% O2 21% O2 Inspiratory flow 61
Slide 63: Supplied vs entrained air
Supplied vs entrained air For personal use only 60 LPM 100% O2 ??% O2 21% O2 Inspiratory flow 62
Slide 64: Clinical niches at UCSD
Clinical niches at UCSD For personal use only • Provide oxygen to alveoli – Pneumonia – Lung inflammation – Pneumothroax 63
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UNIVERSITY of CALIFORNIA SAN DIEGO SCHOOL OF MEDICINE
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UNIVERSITY of CALIFORNIA SAN DIEGO SCHOOL OF MEDICINE
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e) UNIVERSITY of CALIFORNIA SAN DIEGO SCHOOL OF MEDICINE 66
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fe) UNIVERSITY of CALIFORNIA SAN DIEGO SCHOOL OF MEDICINE
Slide 69: Clinical niches at UCSD
Clinical niches at UCSD For personal use only • Provide oxygen to alveoli • Provide water to airways 68
Slide 70: Humidity
69 For personal use only Humidity
Slide 71: Jungle humidity
70 For personal use only Jungle humidity
Slide 72: Alveoli are 100% humid
Alveoli are 100% humid at 37 C For personal use only 71
Slide 73: Where does the water come from?
Where does the water come from? For personal use only Alveolar air Ambient air this week 72
Slide 74: Evaporation from airways
Evaporation from airways For personal use only 73
Slide 75: Mucociliary clearance
Mucociliary clearance For personal use only 74
Slide 76: Clinical niches at UCSD
Clinical niches at UCSD For personal use only • Provide oxygen to alveoli • Provide water to airways – bronchiectasis – cystic fibrosis – chronic bronchitis – asthma – diffuse panbronchiolitis – plastic bronchitis – primary ciliary dyskinesia 75
Slide 77: Clinical niches at UCSD
Clinical niches at UCSD For personal use only • Provide oxygen to alveoli • Provide water to airways • Mechanical support to ventilation 76
Slide 78: Increase the inspiratory support
Increase the inspiratory support For personal use only Paw PEEP 77
Slide 79: Clinical niches at UCSD
Clinical niches at UCSD For personal use only • Provide oxygen to alveoli • Provide water to airways • Mechanical support to ventilation – Neuromuscular weakness – Rib fractures etc. 78
Slide 80: Increase the PEEP
Increase the PEEP For personal use only Paw PEEP 79
Slide 81: Normal Alveoli
80 For personal use only Normal Alveoli
Slide 82: Emphysema
81 For personal use only Emphysema
Slide 83: Beginning of Exhalation
Beginning of Exhalation For personal use only Normal Airway Obstruction 82
Slide 84: End of Exhalation
End of Exhalation For personal use only Normal Airway Obstruction 83
Slide 85: Applied Pressure to Counter PEEPi
Applied Pressure to Counter PEEPi For personal use only Airway Obstruction Applied Pressure 84
Slide 86: Clinical niches at UCSD
Clinical niches at UCSD For personal use only • Provide oxygen to alveoli • Provide water to airways • Mechanical support to ventilation – Neuromuscular weakness – Rib fractures etc. – COPD 85
Slide 87: Clinical niches at UCSD
Clinical niches at UCSD For personal use only • Provide oxygen to alveoli • Provide water to airways • Mechanical support to ventilation • Increase intrathoracic pressure 86
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UNIVERSITY of CALIFORNIA C H F SAN DIEGO ‘SCHOOL OF MEDICINE 87
Slide 89: CHF and positive intra-thoracic pressure
CHF and positive intra-thoracic pressure For personal use only 88
Slide 90: Positive intra-thoracic pressure during CHF
Positive intra-thoracic pressure during CHF… For personal use only • decreases venous return • reduces right ventricle bulging into left ventricle • decreases left ventricle work 89
Slide 91: Clinical niches at UCSD
Clinical niches at UCSD For personal use only • Provide oxygen to alveoli • Provide water to airways • Mechanical support to ventilation • Increase intrathoracic pressure – Cardiomyopathy – Congestive heart failure 90
Slide 92: Clinical niches at UCSD
Clinical niches at UCSD For personal use only • Provide oxygen to alveoli Routine use • Provide water to airways Growing use • Mechanical support to ventilation Beginning use • Increase intrathoracic pressure Beginning use 91
Slide 93: Thank you
92 For personal use only Thank you
Slide 94: US Homecare Overview
US Homecare Overview Justin Callahan, President of US Operations Steve Polgar, VP Sales & Marketing ») Fisher & Paykel HEALTHCARE
Slide 95: For personal use only
94 For personal use only • • • • •
Slide 96: Our Leading-Edge Masks
95 Our Leading-Edge Masks oy Simplus” Eson"2 Brevida’ * Significant focus building awareness and confidence with sleep physicians Fisheré.Paykel HEALTHCARE
Slide 97: Mask Matters Most Campaign
For personal use only Mask Matters Most Campaign The Mask Matters Most’
Slide 98: Rest. Assured.
97 Rest. Assured. “My dad was always making things, fixing something for a neighbour, or building small yachts. He always encouraged me to think about how to improve and make iterations to designs, continuously improving and learning from previous mistakes. But more importantly to never give up and
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Slide 103: Questions?
Questions? Justin Callahan, President of US Operations Steve Polgar, VP Sales & Marketing a») Fisher & Paykel HEALTHCARE 2
Slide 104: HCD COPD Program
For personal use only HCD COPD Program The COPD Program offers comprehensive, personalized care for people with Chronic Obstructive Pulmonary Disease (COPD) John Olivas, President Rodolfo Blain, VP HME 103
Slide 105: Disclosure
Disclosure For personal use only John Olivas and Rodolfo Blain will be reimbursed by Fisher & Paykel Healthcare for any expenses incurred in connection with their participation in today’s event. 104
Slide 106: Equipment for Improved Living
Equipment for Improved Living For personal use only Durable Medical Equipment Negative Pressure Wound Therapy Feeding Pumps Hospital Beds Tens Units Gel Mattresses Incontinence Supplies Low Air Loss Mattresses Ventilators Trapeze Bars Oxygen Concentrators Wheelchairs O2 Conse
Slide 107: COPD Program Goals
COPD Program Goals For personal use only Prevent disease progression Relieve symptoms Improve exercise tolerance Improve health status Prevent and treat complications Prevent and treat exacerbations, reducing hospital admissions Improve overall quality of life People who learn about
Slide 108: COPD Education
COPD Education For personal use only What is COPD Respiratory System What Happens to Your lungs with COPD Medication Delivery Devices Metered Dose Inhaler and Proper Use Nebulizer and Proper Use Albuterol Home Oxygen When to call your Primary Care Physician 107
Slide 109: Standard COPD Program Length
Standard COPD Program Length For personal use only The standard COPD program stay will last 5 weeks with an extra 1 week to be reserved for as needed (PRN). The first week will run Monday through Friday with scheduled 1 hour daily sessions as follows: Week 1, Monday through Friday with scheduled 1
Slide 110: COPD Program and Airvo
COPD Program and Airvo For personal use only INDICATION FOR AIRVO 2 HIGH FLOW HUMIDIFICATION Reoccurring Hospitalizations due to COPD exacerbation (Yellow Zone) Potential for/or Presence of Atelectasis Bronchospasm Bronchiectasis Need for Hydration and of Retained Secretions Need for Hea
Slide 111: Airvo Case
Airvo Case 1 For personal use only 70 y/o Hispanic female presented with diagnosis of COPD 3 prior hospitalizations last one 04/03/18 Admitted into COPD program on 05/16/18 w/Airvo Followed for the initial four week COPD program visits in which her vital signs remained within normal limits,
Slide 112: Airvo Case
Airvo Case 2 For personal use only 83 y/o Hispanic male presented with diagnosis of COPD Multiple hospitalizations for exacerbation of his COPD Most resent hospitalization was in 06/17/18 for 10 days Admitted post hospitalization 06/28/18 His bilateral breath sounds were with rhonchi to up
Slide 113: Airvo Case
Airvo Case 3 For personal use only 66 y/o Hispanic male presented with diagnosis of COPD Two prior hospitalizations for COPD exacerbation admitted into COPD program on 07/18/18 patient completed the COPD program with unremarkable results and no visits to the ER and no hospitalizations. 112
Slide 114: Lewis Gradon
Lewis Gradon Fisher & Paykel HEALTHCARE
Fisher & Paykel Healthcare — Investor Day (September 2018) on 6ix