Nanosonics Limited · ASX:NAN
Nanosonics — H1 FY2019 Earnings Presentation
20 slides from Nanosonics's earnings presentation, Feb 25, 2019
Slide 1: 2019 Half Year Results Investor Presentation
2019 Half Year Results Investor Presentation Michael Kavanagh, CEO and President McGregor Grant, Chief Financial Officer
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 covered in it. The information in this presentation, whether written or verbal, has been prepared without taking into account the commercial, financial or
Slide 3: 2019 Half Year Highlights
2019 HALF YEAR Total revenue ($m) Capital revenue ($m) HIGHLIGHTS 60.7 25.6 Capital revenue up 11% 10.8 16.4 • Total first half revenue of $40.7 million, on PCP up 36% on prior corresponding period and 33% on prior half. 52% 14.8 30.7 • trophon 2 successfully launched in ® 40.7 on FY18 H2 North Amer
Slide 4: Installed Base
INSTALLED Global installed base Global BASE 19,310 17,740 installed base up 9% 14,160 10,130 Global installed base 6,250 in last 6 months grew 9% in last 6 months and 20% 3,960 20% in last 12 months 2014 2015 2016 2017 2018 2019 in last 12 months to Half Year 19,310 North American installed base Nor
Slide 5: Range of Selling Models
RANGE OF SELLING MODELS 1 DIRECT CHANNEL DISTRIBUTION CHANNEL Capital Sale Managed Equipment Rental Full Service Distribution Capital Reseller Market Service • Capital equipment sold • Customer rents capital • Distributor purchases • Distributor purchases upfront with 12 month • Nanosonics provides
Slide 6: Financial Results Review
FY19 Financial Results Review 2019 Half Year Results 6
Slide 7: Revenue
REVENUE Total revenue ($m) 67.5 60.7 * Record half year Total renevue up revenue of 36% 31.4 $ 40.7 30.7 42.8 40.7 on PCP million 22.2 7.9 27.2 36.1 33% on FY18 H2 30.0 14.3 15.6 2015 2016 2017 2018 2019 Half Year H1 H2 Capital revenue ($m) Consumables/service revenue ($m) 24.3 19.9 16.4 15.3 14.8 1
Slide 8: Revenue Mix by Region
REVENUE MIX North America BY REGION Total revenue ($m) Capital revenue ($m) Consumables/service 54.4 revenue ($m) Total Capital Consumables/ revenue up revenue up service revenue up 27.2 37.1 37% on PCP 11% on PCP 30.3 64% on PCP 24.1 21.5 Revenue mix 27.2 36% on FY18 H2 10.0 15.6 56% on FY18 H2 17.
Slide 9: Profit & Loss Summary
PROFIT & LOSS SUMMARY Highlights FY19 FY18 Change FY18 Change $ million H1 H1 (vs PCP) H2 (vs FY18 H2) • Revenue of $40.7 million, ($38.4 million in constant currency vs PCP): Total revenue 40.7 30.0 36% 30.7 33% –– up 36% compared with PCP Gross profit 30.6 22.3 37% 23.0 33% (28% in constant curren
Slide 10: Profit Before Tax and Cash and Cash Equivalents
PROFIT Profit before tax ($m) • Profit before tax of $11.0 million was up 195% BEFORE TAX 13.9 11.0 on prior corresponding period ($3.7 million) and up 493% on prior half ($1.9 million). $ 11.0 million 5.6 for the half 0.1 (2.6) (5.5) 2014 2015 2016 2017 2018 2019 H1 CASH AND CASH Cash and cash equi
Slide 11: Income Tax
INCOME TAX Key points 31 December 30 June 2018 2018 • Reduction of deferred tax asset Components of Deferred Tax Asset (DTA) $m $m corresponds with absorption of carried forward tax losses and R&D tax credits. Tax losses 0.6 1.1 R&D tax credits 4.6 9.9 • Deferred tax asset attributable to carried fo
Slide 12: Significant Global Opportunity
SIGNIFICANT GLOBAL OPPORTUNITY Installed base opportunity 1 Market penetration Cumulative installed base Global • Increasing number of international guidelines requiring 120,000 19,310 17,740 high level disinfection (HLD) supporting growing 16% 14,160 international demand. units 10,130 • Nanosonics
Slide 13: Expanding Global Presence
EXPANDING GLOBAL Norway Partnership in place with GE Healthcare PRESENCE Nanosonics direct UK operation in place and Switzerland growing. Guidelines Distributor partnership now in place in in place and marketing England, Scotland, activities underway North America Wales and Northern Nanosonics direc
Slide 14: Market Expansion Japan
MARKET EXPANSION JAPAN Our business • Preliminary clinical study completed: ––Over 90% of probes were found to be contaminated; and development activities ––Of the contaminated probes over 50% were found in Japan progressed to harbour potentially pathogenic bacteria including positively with methici
Slide 15: Market Expansion Europe
MARKET EXPANSION • New agreement established with GE Healthcare EUROPE for distribution in Denmark, Finland, Spain and Portugal effective February 2019. This new New agreements 1 agreement is in addition to existing agreements in Europe as with GE Healthcare in Sweden and Norway. fundamentals for •
Slide 16: trophon 2 launched in all major markets
trophon 2 launched in all major markets ® Smart protection trophon2 delivers protection for patients, staff and the environment – reduces risk • trophon®2 launched in North America, Smart flexibility Europe and Australia end August/ September. Streamline set-up, can be customised to your workflow an
Slide 17: Replacement/Upgrade Opportunity
REPLACEMENT/ Replacement/upgrade expected UPGRADE after 5-7 years OPPORTUNITY Significant replacement/ Age distribution of global Installed Base at December 2018 upgrade opportunity 25% as installed base ages 20 and new generation devices are introduced 15 to market 10 5 0 Age 1yr 2 yrs 3 yrs 4 yrs
Slide 18: Our People
OUR PEOPLE As part of our Global expansion and growth strategy, three new senior executives join the Executive Management Team Nanosonics has a highly experienced and dedicated team of professionals leading the development and implementation of our Corporate Growth Renee Salaberry Chief Marketing Of
Slide 19: Business Outlook
BUSINESS OUTLOOK FY19 Nanosonics expects: • Continued growth in installed base in North America with FY19 adoption similar to FY18. • Upgrades/replacements of trophon® EPR units over five years old to commence in FY19. • Adoption in Europe to grow with: –– Ongoing strong adoption in the UK, where ne
Slide 20: Thank you
Thank you