Nanosonics Limited · ASX:NAN
Nanosonics — H1 FY2017 Earnings Presentation
29 slides from Nanosonics's earnings presentation, 2017
Slide 1: 2017 Half Year Results
2017 Half Year Results Investor Presentation Michael Kavanagh - CEO & 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. 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. 2017 Half Year Results | 3
Slide 4: Company overview
Company overview • Healthcare company specialised in the development and commericalisation of infection control solutions Key Corporate Data • First product, trophon® EPR - proprietary automated technology for low Share price* $2.67 temperature, high level disinfection of ultrasound probes Shares on
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 • Safe for Patient – most • Compatible with over • Simple to use – one comprehensive portfolio 1,000 probes button operation of efficacy testing i
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 base: ~120,000 trophon Capital EPR units globally sales • ~40,000 units in North America • Equivalent sized Consumables Service and maintenan
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: 2017 First Half Highlights
2017 First Half Highlights Customer Experience Operational Excellence • Installed base growth of over 2,000 units in • Canadian direct sales infrastructure established North America • Expanded operations in UK (Sales, Service, • New international guidelines supporting usage Warehousing) across all s
Slide 9: 2017 H1 Financial Results
2017 H1 Financial Results SALES • FY17 H1 sales of $36.1 million, up 33% vs FY16 H2 (36% in constant currency) and up 132% vs FY16 H1 (142% in constant currency). • Continuing strong adoption of trophon in North America. • Increased consumables and service revenue from growing global installed base
Slide 10: 2017 H1 Financial Results
2017 H1 Financial Results FY16 FY17 $ million Sales of $36.1 million, up 33% vs FY16 H2 and H1 H2 Total H1 132% vs FY16 H1 Sale of goods and services 15.6 27.2 42.8 36.1 Gross profit of $26.3 million, or 73% of sales Gross profit 12.6 19.6 32.2 26.3 Total operating expenses of $17.2 million % 81% 72
Slide 11: HPV – A major driver for new guidelines and adoption
HPV – A major driver for new guidelines and adoption American Journal of Obstetrics and Gynaecology A proposal to reduce the risk of transmission of human papilloma virus via transvaginal ultrasound. • References the findings of Prof Meyers first and second HPV papers • Recommends use of trophon as
Slide 12: New guidelines reinforce broader requirements for High Level Disinfection
New guidelines reinforce broader requirements for High Level Disinfection World Federation for Ultrasound in Medicine and Biology Guidelines for cleaning transvaginal ultrasound transducers between patients • Defines semi critical devices as those that pose a higher risk because of contact with non-
Slide 13: North America - trophon becoming Standard of Care
North America - trophon becoming Standard of Care • trophon installed base grew over 2,000 units in half with total IB now >10,700 units • Canadian direct sales operations established and commence sales in FY17 Q3 • Engagement with all leading ultrasound OEMs • Numerous educational activities conduc
Slide 14: North America - Drivers for ongoing adoption
North America - Drivers for ongoing adoption Addressable installed base of 40,000 units in North America 10,700 North America trophon Installed Base Drivers for ongoing adoption: 9,700 • Usage at point of care in all relevant 8,700 departments across > 5,000 hospitals 7,700 • Private physician offic
Slide 15: North America – Expert infection prevention panel recognise need for broader education
North America – Expert infection prevention panel recognise need for broader education and use of HLD for semi-critical probes • ‘Call to Action’ on infection risk from ultrasound probes published in Infection Control Today (ICT) in Feb 2017 • HLD required for all semi-critical procedures (intracavi
Slide 16: UK & Ireland: Momentum building in trophon adoption
UK & Ireland: Momentum building in trophon adoption • Six of the fourteen Scottish Health boards have commenced adoption of trophon post release of Scottish guidelines • All Welsh Health boards have adopted trophon with nine of the fourteen major hospitals in Wales adding to their initial installati
Slide 17: Germany: Fundamentals for adoption strengthening
Germany: Fundamentals for adoption strengthening German hospital hygiene society (DGKH) • The first official statement by DGKH (German Hospital Hygiene Society) on ultrasound reprocessing in December 2016 • Reinforces the guidelines of the commission for hospital hygiene and infection prevention at
Slide 18: France: Fundamentals for adoption strengthening
France: Fundamentals for adoption strengthening Ministry of Health (MOH) • Issued a new statement whereby strict compliance with the stringent visual inspection requirements of the probe after use • More strict hygiene processes are now required and will be regularly audited • Commissioned an audit
Slide 19: Australia / New Zealand
Australia / New Zealand • Adoption of trophon continues off an already high installed base • Good demonstration of the ability of trophon to become standard of care when relevant guidelines are in place • New guidelines released jointly by Australian Society of Ultrasound in Medicine (ASUM) and Aust
Slide 20: Preparations for geographical expansion underway
Preparations for geographical expansion underway Japan Middle East • Japanese commercialisation strategy • Registrations now in place for Saudi Arabia, progressing positively Kuwait, Qatar and United Arab Emirates • trophon technology demonstrated at the • Trophon recently presented at Arab Health a
Slide 21: Focussed ramp up in R&D program
Focussed ramp up in R&D program • Large unmet needs exist in infection prevention • Increased investment in R&D by 30% to $4.3 million • Methodical approach to market needs identification and latest “Design thinking” in place Understanding Identifying technology • Solid progress made on Market Needs
Slide 22: Business Outlook
Business Outlook Positioned for ongoing growth • Excellent market opportunity continues in North America • Fundamentals for adoption strengthening in more markets around the world • Expansion into new geographical territories planned • R&D activities in multigenerational trophon program and novel ne
Slide 23: Thank you!
narosonics Infection Prevention. For Life. Thank you!
Slide 24: Appendix
Appendix
Slide 25: 2017 H1 Financial Results: Income tax
2017 H1 Financial Results: Income tax $ million Key points: Income tax benefit Deferred tax asset recognised following Recognition of deferred tax asset 13.6 Equity component of SBP (current and deferred) (1.9) assessment of operations of the Group 11.7 Income tax benefit recognised relates to C
Slide 26: 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 27: 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 28: 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 29: 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. 2017 Half Year Results | 29