Masimo Corporation · NASDAQ:MASI
Masimo — Investor Day (December 2022)
24 slides from Masimo's investor day presentation, Dec 13, 2022
Slide 1: 2022 Investor Day Financial Outlook
2022 Investor Day Financial Outlook December 13, 2022
Slide 2: Forward-Looking Statements
These presentations contain forward-looking statements within the meaning of federal securities laws, including, among others, statements about our expectations, plans, strategies or prospects. We generally use the words “may,” “will,” “expect,” “believe,” “anticipate,” “plan,” “estimate,” “project,
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures The financial measures throughout this presentation will be primarily on a non-GAAP basis unless noted otherwise. Further, the presentation will reference pro forma financial measures, which include historical results for Sound United prior to the acquisition date of Apri
Slide 4: Our Track Record of Performance: EPS and Revenue
Earnings Per Share ($ per diluted share) $1.73 $2.65 $3.22 $3.60 $3.99 2017 2018 2019 2020 2021 Actual Performance Target 12% - 15% 12%-15% Target Revenue ($ in millions) $738 $830 $936 $1,144 $1,239 2017 2018 2019 2020 2021 Actual Performance Target 8% - 10% 8%-10% Target Our Track Record of Perfor
Slide 5: Our Track Record of Performance: Revenue CAGR by Product
Our Track Record of Performance 0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50% SET® rainbow® Hospital automation and other parameters Total Revenue 2017 - 2021 Revenue CAGR % Actual Target (2017 IR Day) Upside Case (2017 IR Day)
Slide 6: Our Track Record of Performance: Operating and Gross Margin
Operating Margin (% of revenue) 18.6% 23.8% 2017 2021 Actual Performance Target +400 bps Gross Margin (% of revenue) 64.2% 65.8% 2017 2021 Actual Performance Target +200 bps Our Track Record of Performance +520 bps +160 bps
Slide 7: Our Track Record of Performance: SG&A, R&D and OpEx
SG&A (% of revenue) 36.8% 30.9% 2017 2021 Actual Performance Target (200) bps Our Track Record of Performance (590) bps R&D (% of revenue) 8.8% 11.1% 2017 2021 Actual Performance Target Flat +230 bps Total OpEx (% of revenue) 45.7% 42.0% 2017 2021 Actual Performance Target (200) bps (370) bps
Slide 8: 2023 Consolidated Revenue Guidance
$2,330 to $2,400 million Consolidated Revenue 2023 Consolidated Revenue Guidance Proforma ($64) million Foreign Exchange Headwinds Proforma 6% to 8% Constant Currency Growth
Slide 9: 2023 Healthcare Revenue Guidance
$1,420 to $1,450 million Healthcare Revenue 2023 Healthcare Revenue Guidance ($22) million Foreign Exchange Headwinds 9% to 10% Constant Currency Growth
Slide 10: 2023 Non-Healthcare Revenue Guidance
$910 to $950 million Non-Healthcare Revenue 2023 Non-Healthcare Revenue Guidance Proforma ($42) million Foreign Exchange Headwinds Proforma 2% to 5% Constant Currency Growth
Slide 11: 2023 Operating Profit Guidance
$360 to $375 million Operating Profit 2023 Operating Profit Guidance Proforma ($32) million Foreign Exchange Headwinds
Slide 12: 2023 EPS Guidance
$4.25 to $4.45 per share Earnings Per Share 2023 EPS Guidance Proforma ($0.44) per share Foreign Exchange Headwinds
Slide 13: Increasing our Revenue and Cash Generating Power
Revenue ($ in millions) 7-9% CAGR Increasing our Revenue and Cash Generating Power Adjusted EBITDA ($ in millions) 10-12% CAGR 2028E2023E $490 to $510 2018 $230 2023E $1,420 to $1,450 2018 $830 2028E 9% - 11% CAGR $910 to $950 4% - 6% CAGR Healthcare Non-Healthcare Consolidated Consolidated
Slide 14: Healthcare Revenue Growth Target of 9% to 11%
1.3% 0.7% 0.7% 0.8% 1.0% 9% - 11% Healthcare Revenue Growth Target of 9% to 11% Total Revenue 9 – 11% N/A $110 B+ 2023 – 2028 Revenue Growth Rate Contribution Masimo Growth Market Growth Market Opportunity1 SET® Pulse Oximetry 6 – 8% 3 – 4% $3 B rainbow® Pulse Co-Oximetry & Hemodynamics 10% N/A $2 B
Slide 15: Non-Healthcare Revenue Growth Target of 4% to 6%
1% - 2% 4% - 6% Non-Healthcare Revenue Growth Target of 4% to 6% Total Revenue 4% – 6% N/A $61 B+ 2023E Revenue Mix 2023 – 2028 Revenue Growth Rate Contribution Masimo Growth Market Growth Market Opportunity1 Home Audio Premium & Luxury 3% – 4% LSD $6 B 2 Headphones 25% + DD $55 B+ 3% - 4% AVR Compo
Slide 16: Expanding our Total Market Opportunity by Nearly 20x
Expanding our Total Market Opportunity by Nearly 20x1 $9B $171B+ $6B $55B+ $30B+ $50B+ $20B+ Hospital Monitoring & Automation Home Audio: Premium & Luxury Hearables: Headphones Hearables: Hearing Enhancement Wearables Telemonitoring Total Market Opportunity 1 Market Estimates based upon internal dat
Slide 17: Acquisition Provides Immediate Critical Mass for Consumer Channel
Acquisition Provides Immediate Critical Mass for Consumer Channel Sales Marketing & Creative Customer & Sales Support Sound United adds 450 Consumer Sales & Marketing Employees Worldwide Unlocking Massive New Market Opportunities for Our Pipeline of Consumer Health Products Consumer Channel & Infras
Slide 18: Consumer Health Provides Upside Optionality
Consumer Health Provides Upside Optionality $8,000 $6,000 $4,000 $2,000 $0 Revenue ($ in millions) Professional Healthcare Consumer Non-Healthcare Consumer Health Consumer Health Upside Opportunity 7% - 9% CAGR 13% + CAGR 2023E 2028E 2033E
Slide 19: Focused on Long-Term Value Creation
Focused on Long-Term Value Creation Sustainable Revenue Growth Deliver 7% to 9% revenue growth through market leading performance in our core businesses Capture upside optionality through expansion into massive new markets Leveraged Earnings Growth Achieve 10% to 12% EPS growth Drive gross margin im
Slide 20: Appendices
Appendices ¥ Maso”
Slide 21: GAAP to Non-GAAP Reconciliations: Consolidated Income Statement
GAAP to Non-GAAP Reconciliations | Consolidated Income Statement (Unaudited; in millions, except per share data) (1) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Low High Low High GAAP revenue $790.2 $858.3 $937.8 $1,143.7 $1,239.2 $2,000.0 $2,030.0 $2,330.0 $2,400.0 Other adjustments ($52.0) ($28.4) ($1
Slide 22: GAAP to Non-GAAP Reconciliations: Consolidated Income Statement (continued)
GAAP to Non-GAAP Reconciliations | Consolidated Income Statement (Unaudited; in millions, except per share data) (1) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Low High Low High GAAP non-operating income (expense) $2.0 $5.7 $13.0 $7.9 ($1.4) ($10.6) ($10.6) ($43.7) ($43.7) Realized and unrealized gains
Slide 23: GAAP to Non-GAAP Reconciliations: Adjusted EBITDA
GAAP to Non-GAAP Reconciliations | Adjusted EBITDA (Unaudited; in millions, except per share data) (1) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Low High Low High GAAP Net Income $124.8 $193.5 $196.2 $240.3 $229.6 $146.5 $152.6 $179.4 $190.4 Other (Income) / Expense (2.3) (7.5) (13.6) (5.2) (0.6) 24.4
Slide 24: GAAP to Non-GAAP Reconciliations: Revenue
GAAP to Non-GAAP Reconciliations | Revenue (1) Totals may not foot due to rounding. Annual reported amounts may vary from amounts previously reported due to rounding conventions. (2) 2022 Guidance provided on November 8, 2022 (3) 2023 Guidance provided on December 13, 2022 (4) Constant currency adju