Fisher & Paykel Healthcare Corporation Limited · NZX:FPH
Fisher & Paykel Healthcare — Macquarie Private Wealth Clients Presentation (June 2013)
17 slides from Fisher & Paykel Healthcare's conference presentation, Jun 12, 2013
Slide 1: Improving Care & Outcomes
Improving Care & Outcomes Presentation to Macquarie Private Wealth Clients 1 June 2013 Company Highlights • Continuing vision to improve patient care and outcomes • A global leader in respiratory and OSA care devices • NZ based • Innovation driven • 2,750 employees – 1,750 NZ, 359 R&D • NZ$556M reve
Slide 2: Global Presence; Manufacturing & Operations
Global Presence • Direct/offices – Hospitals, home care dealers – Sales/support offices in North America, Europe, Asia, South America, Middle East and Australasia, 16 distribution centres – >550 staff in 30 countries – Ongoing international expansion • Distributors – 100+ distributors worldwide • Or
Slide 3: Research & Development; Markets and Products
Research & Development • 8.2% of operating revenue, NZ$45.7M1 • Product pipeline includes: – Humidifier controllers – Masks – Respiratory consumables – Flow generators – Compliance monitoring solutions • 107 US patents, 159 US pending, 442 ROW, 260 ROW pending1 1 at 31 March 2013 5 Markets and Produ
Slide 4: Respiratory & Acute Care
Respiratory & Acute Care 7 Respiratory & Acute Care MORE CRITICAL LESS CRITICAL 8
Slide 5: Invasive Ventilation
Invasive Ventilation • Normal airway humidification is bypassed or compromised during ventilation or O2 therapy • Mucociliary transport system operates less effectively • Need to deliver gas at physiologically normal levels – 37 oC body core temperature – 44mg/L 100% saturated 9 Invasive Ventilation
Slide 6: Noninvasive Ventilation; Optiflow Therapy, AIRVO
Noninvasive Ventilation • Patients breathe through a mask • Ventilator helps the patient breathe • Masks, humidifier controllers, chambers, breathing circuits • Opportunity: improved outcomes with humidification 11 Optiflow Therapy, AIRVO • Patients breathe humidified air and oxygen through nasal ca
Slide 7: Surgical; Hospital Cost Breakdown
Surgical • Patients receive CO2 gas to inflate surgical site or to protect from gas bubbles or infection • Humidifier controllers, chambers, tubes, filters • Opportunity: improved outcomes with humidification 13 Hospital Cost Breakdown Utilities, Depreciation Drugs, Devices, Supplies & Food Labour S
Slide 8: Lower Care Intensity = Lower Cost
Lower Care Intensity = Lower Cost $50,000 $40,000 Mean cost (2008 US$) $30,000 $20,000 $10,000 $0 Outpatient cohort Urgent outpatient ED cohort Standard admission ICU cohort All cohort cohort Source: Anand A Dalal, Laura Christensen, 2 Fang Liu, and Aylin A Riedel. Direct costs of chronic obstructiv
Slide 9: Respiratory & Acute Care; Single-use Respiratory Care Systems
Respiratory & Acute Care • MR850 Respiratory Humidifier System – Invasive ventilation, oxygen therapy and non-invasive ventilation • MR810 Respiratory Humidifier System – Entry level system – Ventilation and oxygen therapy – Optional heated breathing circuit • AIRVO™ Flow Generator/Humidifier – Opti
Slide 10: Respiratory & Acute Care Update
Respiratory & Acute Care Update H2 FY2013 • Operating revenue growth – NZ$ +13% – Constant currency +18% • New applications consumables revenue growth (NIV, Optiflow™, AIRVO™, Surgical) – NZ$ +32% – Constant currency +38% – New applications, 38% of RAC consumables revenue • New products roll-out – E
Slide 11: Obstructive Sleep Apnea
Obstructive Sleep Apnea • Temporary closure of airway during sleep • Can greatly impair quality of sleep, leading to fatigue; also associated with hypertension, stroke and heart attack • Estimated US$2.3billion + worldwide market, growing ~6-8% • Potentially 50-60 million affected worldwide • Most c
Slide 12: Efficient Compliance Reporting; Revolutionary New Masks
Efficient Compliance Reporting Patient’s Home DME / Physician Office 23 Revolutionary New Masks • Comfortable • Easy to fit • Efficient • Nasal Pillows – F&P Pilairo™ • Nasal – F&P Eson™ • Full Face – F&P Simplus™ 24
Slide 13: Obstructive Sleep Apnea Update
Obstructive Sleep Apnea Update H2 FY2013 • Operating revenue growth – NZ$ +6% – Constant currency +10% • Mask revenue growth – Constant currency +16% • New products roll-out – F&P Pilairo™ – F&P Eson™ – F&P Simplus™ – F&P ICON™+ 25 Overview 26
Slide 14: Consistent Growth Strategy; Earnings Growth Drivers
Consistent Growth Strategy • Experts in humidification, respiratory care, and obstructive sleep apnea • Provide innovative devices which can improve patient care and outcomes • Continuous product improvement • More devices for each patient • Serve more patient groups – Invasive ventilation, NIV, oxy
Slide 15: Second Half Highlights; FY13 Operating Results NZ$
Second Half Highlights Actual CC1 Net profit after tax +22% +54% Operating revenue +9% +14% Gross margin (bps increase) +240- +330- RAC new applications revenue +38% OSA mask revenue +16% 1. CC = constant currency 29 FY13 Operating Results NZ$ FY13 (12 months to 31 March 2013) %Revenue NZ$M PCP CC
Slide 16: Outlook FY14; Questions?
Outlook FY14 • Expect new products and applications to drive continuation of strong revenue growth • Expect at 0.80 – 0.85 NZD:USD exchange rate: – Operating revenue NZ$610M - NZ$630M – Net profit after tax NZ$85M - NZ$90M 31 Questions? 32
Slide 17: Improving Care & Outcomes
Improving Care & Outcomes Presentation to Macquarie Private Wealth Clients 33 June 2013
Fisher & Paykel Healthcare — Macquarie Private Wealth Clients Presentation (June 2013) on 6ix