Nanosonics Limited · ASX:NAN
Nanosonics — FY2016 Earnings Presentation
24 slides from Nanosonics's earnings presentation, August 2016
Slide 1: 2016 Full Year Results Investor Presentation
2016 Full Year Results Investor Presentation Michael Kavanagh CEO & President
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: Corporate Mission
Corporate Mission We improve the safety of patients, clinics, their staff and the environment by transforming the way infection prevention practices are understood and conducted, and introducing innovative technologies that deliver improved standards of care. 2016 Nanosonics | 3
Slide 4: Company overview
Company overview • Healthcare company specialised in the development and commericalisation of Key Corporate Data infection control solutions Share price* $2.80 • First product, trophon® EPR - proprietary automated technology for low Shares on issue* 295.93 million temperature, high level disinfectio
Slide 5: trophon EPR
trophon EPR trophon is the safe, versatile and simple way to high level disinfect ultrasound probes. Anything else is a compromise. Safe Versatile Simple trophon assures safety for trophon streamlines trophon makes ultrasound patient, staff and the practice workflows to probe disinfection simple, en
Slide 6: Large market opportunity & attractive revenue model
Large market opportunity & attractive revenue model Each unit sale results in a robust annuity revenue stream trophon device Accessories Addressable installed Capital base: ~120,000 sales trophon EPR units • ~40,000 units in North America • Equivalent sized Consumables Service and maintenance contra
Slide 7: Corporate objectives
Corporate objectives Customer Experience Establish our offerings as new standards of care globally and provide customers a convenient, seamless and consistent experience with both product and brand. Product Innovation Operational Excellence People Engagement Create and bring to market Develop an agi
Slide 8: 2016 Highlights
2016 Highlights Customer Experience Operational Excellence • Installed base growth of 74% in North America to • Successful first full year of North American direct over 8,700 units and 10,000 globally operations • Market expansion activities in Europe, Middle • Successful certifications and regulato
Slide 9: 2016 Financial Results
2016 Financial Results • Total sales for the year were $42.8 million, an increase of 93% on pcp. • Strong adoption of trophon continued in North America following the establishment of Nanosonics’ direct operations in 2015. • Maiden full year profit of $122,000 with $3.4 million in the 2nd half. • Fi
Slide 10: 2016 Financial Results
2016 Financial Results FY16 FY15 Sales up 93% to $42.8 million $ million H1 H2 Total Total Gross Profit up $16.9 million to $32.2 million Sales Revenue 15.6 27.2 42.8 22.2 Operating expenses $32.7 million Gross Profit 12.6 19.6 32.2 15.3 • Increased investment associated with the establishment of th
Slide 11: Excellent growth momentum under new North American business model
Excellent growth momentum under new North American business model Steady growth over the past five Quarterly Sales $15.1 quarters following the announcement $ million of North American direct operations $12.1 FY15 Q3 – Announced new business model $9.1 $8.3 FY15 Q3 / Q4 – Established North American
Slide 12: trophon setting a new benchmark for Standard of Care in North America
trophon setting a new benchmark for Standard of Care in North America The fundamentals for adoption North America trophon installed base continued to strengthen 74% installed base growth to over 8,700 units Sales grew a record 121% to $39.0M in North America • Successful first year of direct sales o
Slide 13: Fundamentals for adoption continue to strengthen
Fundamentals for adoption continue to strengthen Released a Health Advisory emphasising the need to properly maintain, clean, and disinfect or sterilize reusable medical devices1 Non compliance with infection control standards associated with medical equipment & devices is one of the top 5 findings
Slide 14: trophon breaks new ground in ultrasound probe disinfection
trophon breaks new ground in ultrasound probe disinfection HPV accounts for > 5% cancer worldwide trophon: the only system proven & 99.7% of cervical cancer to kill cancer causing HPV “a considerable number of 2014 study showed ultrasound probes contaminated with human and disinfectants commonly HR-
Slide 15: Regional Highlights
Regional Highlights Europe Australia/NZ FY16 focus in Europe centred on market • trophon as standard of care with >1000 development to strengthen the fundamentals for units installed and growing off a high base adoption • Excellent demonstration of what is possible when fundamentals for adoption str
Slide 16: Focussed ramp up in R&D program
Focussed ramp up in R&D program • Increased investment in R&D by 50% to $7.3 million • Strategic partnerships in place with key associations • Solid progress made on future generations of the trophon platform technology plus research on novel new solutions to meet a number of core opportunities in i
Slide 17: Probe compatibility: over 1,000 ultrasound transducer models validated
Probe compatibility: over 1,000 ultrasound transducer models validated • Covers all world’s leading manufacturers • Includes both intra-cavity and surface probes • Important barrier to entry 2016 Nanosonics | 17
Slide 18: Business Outlook
Business Outlook Positioned for ongoing growth • Fundamentals for adoption continue to strengthen • North American Business model driving growth • Growing Installed base • New supporting guidelines expected in England • Expansion into new territories being planned • Active R&D program to diversify p
Slide 19: Thank you!
narosonics Infection Prevention. For Life. Thank you!
Slide 20: Appendix
Appendix
Slide 21: The requirement for disinfection in Ultrasound
The requirement for disinfection in Ultrasound • Ultrasound transducers must be reprocessed between patients to prevent cross-infection • Any transducer that contacts broken skin, mucous membranes or sterile body cavities should be high level disinfected or sterilised1 • Heat sensitive transducer co
Slide 22: Traditional High Level Disinfection (HLD) Methods
Traditional High Level Disinfection (HLD) Methods Disinfection processes unchanged in 20+ years The traditional methods: soak, spray or wipe • Chemical spills and vapour control present OH&S risks • Probes often must be transported to a central sterilisation facility • Pathogens may remain - increas
Slide 23: trophon's patented disinfection technology
trophon’s patented disinfection technology Step 1: Ultrasonic vibrations generate soundwave energy to create micro-sized droplets. Step 2: The droplets are converted into an ultrafine mist that enters the disinfection chamber. Step 3: The mist covers the entire surface of the probe and handle, and i
Slide 24: trophon – breaking new ground in reprocessing
trophon – breaking new ground in reprocessing Traditional soaking Timeline trophon is the safe, versatile and simple way trophon to high level disinfect ultrasound probes. Anything else is a compromise. 2016 Nanosonics | 24