Accuray Incorporated · NASDAQ:ARAY
Accuray — 2021 J.P. Morgan Healthcare Conference
25 slides from Accuray's conference presentation, Jan 14, 2021
Slide 1: Accuray Innovation Driven Growth Strategy
Accuray Innovation Driven Growth Strategy 2021 J.P. Morgan Healthcare Conference January 14, 2021 Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation (including the oral commentary that accompanies it) that are not statements of historical fact are forward-looking statements and are subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking
Slide 3: Agenda
Company Vision and Growth Strategy Market Dynamics and Long-Term Growth Catalysts Enabling Technology and Product Roadmap Q & A Agenda
Slide 4: Our Vision
To expand the curative power of radiation therapy to improve as many lives as possible. Our Vision
Slide 5: Strategy to Accelerate Long-Term Growth Trajectory
Strategy to Accelerate Long-Term Growth Trajectory FY2018 - FY2019 FY2022+ Plan FY2020 - FY2021 Plan Transform Culture and Begin Innovation Driven Growth Enhanced leadership team Established China joint venture and awarded 50 out of 58 Type A licenses Reset cost structure to increase operating lever
Slide 6: Innovation Pipeline and Annual Product Launch Cadence
VOLO™ NeuroCK ClearRT™ Adaptive TomoTherapy® China/Value FY21-23 Synchrony® Global Patent Portfolio1 472 Issued 129 Pending As of June 30, 2020, we held exclusive field of use licenses or ownership of approximately 472 U.S. and foreign patents, and approximately 129 U.S. and foreign patent applicati
Slide 7: Favorable Market Dynamics and Long-Term Growth Catalysts
Favorable Market Dynamics and Long-Term Growth Catalysts Global Radiotherapy Market Overview China Market Opportunity and our Differentiated Strategy Treatment Modality Trend (SBRT vs. Conventional) RO-APM Update / How Accuray will Benefit
Slide 8: A Growing Addressable Market
A Growing Addressable Market Underpenetrated Global Radiotherapy Market1 18 MILLION 50-60% 30% 21,8002 +7,700 +150% New Cases Of Cancer Worldwide In 2018 Of Cancer Patients Worldwide Would Benefit From Radiation Therapy Currently Receive Radiation Therapy Total Number Of Linacs Needed By 2035 Number
Slide 9: China: Unprecedented Long-Term Growth Opportunity
2022E 2019 2020E 2021E 2,959 2023E 2024E 2025E 2026E 3,580 2,223 3,255 2,021 3,938 2,445 2,690 Premium/Type A Core /Type B Economy /Type B Chen W, et al. Cancer statistics in China, 2015 Set 2019 data as the base from Survey on the Basic Information of Personnel and Facilities of Radiotherapy in Chi
Slide 10: Accuray's Differentiated Strategy China Joint Venture
Accuray’s Differentiated Strategy China Joint Venture “MADE IN CHINA 2025” INITIATIVE MARKET ACCESS UNIQUE POSITIONING EXPANDS TYPE B OPPORTUNITY Locally branded and manufactured product well-aligned with local policies Broad JV commercial infrastructure and access to hospitals Competitive advantage
Slide 11: U.S. Replacement Sale and Upgrade Opportunity
U.S. Replacement Sale and Upgrade Opportunity Age of Accuray Installed Base Median age of total US radiation therapy installed base: ≥ 8 years1 82% of purchases are replacements1 New capabilities driving purchase decisions IMV 2019 Radiation Therapy Market Summary Report
Slide 12: Macro Factors Driving SBRT Treatments and RO-APM
IMV 2019 Radiation Therapy Market Summary Report; Radiation Oncology Alternative Payment Model Radiation Therapy system consolidation SBRT treatment demand increasing Reimbursement pressure Clinical evidence and guidelines Emerging Trend: Patient/provider impact due to COVID Treatment Systems -3.4%
Slide 13: Ultra-Hypofractionation Supports Shift From Volume to Value
Ultra-Hypofractionation Supports Shift From Volume to Value Real-time Delivery Adaptation Synchrony® tracks tumor motion and adjusts therapy delivery in real-time Diagnostic Quality Imaging ClearRT™ provides fast, diagnostic quality visualization with largest anatomical field of view Improved Patien
Slide 14: Why Customers Choose Accuray
Enables Why Customers Choose Accuray Ultra-Precise, Radiation Therapy Planning and Delivery Platforms CyberKnife® Platform Robotic design SRS/SBRT Versatility across neuro and radiation oncology Helical imaging & delivery Broad patient treatment with SBRT growth Outcomes Quality of life Patient expe
Slide 15: TomoTherapy Platform Features
Fast Warmup Intelligent Helical kVCT Imaging Quick Installation Helical Delivery Scalable Platform Synchrony® Real-Time Delivery Adaptation Connected Ultra-Precise Helical Delivery | Treats Simple to Complex
Slide 16: Synchrony on the Radixact System
Conventional Methods Clinical Advantages Synchrony® on the Radixact® System Fast Beam ON throughout range of motion Slow Beam OFF much of the motion cycle (Gating) Compromised Wider margins compensate for slow speed (ITV) Precise Tighter margins enabled when beam follows the target Enables Ultra-Hyp
Slide 17: ClearRT Helical kVCT Imaging
Imaging Leadership Bringing diagnostic quality images into the RT workflow Unmatched Flexibility Largest field-of-view (50cm) and scan length (up to 135cm) Fast 1-meter in 1-minute for long field registration No learning curve, familiar user interface Maintains MV imaging mode for those with metal i
Slide 18: Unique Advantages Over Other Imaging Modalities
Unique Advantages Over Other Imaging Modalities ClearRT™ Helical kVCT 1.35 Meters 18 Exceptional Spatial Resolution MR prone to geometric distortion Excellent uniformity and low noise across entire image Conebeam CT prone to scatter artifact Low-contrast anatomy such as skin, fat, and soft tissue ea
Slide 19: CyberKnife Platform
Fast Treatment Delivery Flexible Dose Sculpting Fast Treatment Planning Unique Robotic Platform Moving or Stationary Targets Dose Minimization To Organs At Risk Industry-Leading Precision | Confident, Effective SRS And SBRT Treatment Delivery
Slide 20: CyberKnife S7 Neuro Package
Frameless or Frame-Based1 Choose based upon clinical need; maintain familiarity to those transitioning from other delivery systems Neuro Treatment Planning through Brainlab Partnership Integrates workflows and planning conventions recognized by neurosurgeons Oligometastatic Treatment Ability to trea
Slide 21: Operating Earnings and Installed Base Recent Trends
Operating Earnings and Installed Base Recent Trends Improving Fundamentals and Growing Installed Base Operating Leverage Growing Installed Base 582 932 5.4% CAGR Operating leverage expected to drive long-term profitability growth and continued investments in innovation Growing installed base provide
Slide 22: Execution is Our Top Priority
Execution is our top priority Absolute Focus on Value Creation REVENUE GROWTH CATALYSTS OPERATING LEVERAGE VALUATION Anticipated long-term revenue growth catalysts create foundation for strong returns Operating leverage expected to drive accelerated profitability and free cashflow growth >80% EV/Sal
Slide 23: Accuray
ACCURAY
Slide 24: Thank you
- aD O Thank you ACCURAY |
Slide 25: EV/Sales Trading Discount to Comparable Group
Appendix 1 EV/Sales Trading Discount to Comparable Group As of January 4, 2021