Fisher & Paykel Healthcare Corporation Limited · NZX:FPH
Fisher & Paykel Healthcare — H1 FY2025 Earnings Presentation
47 slides from Fisher & Paykel Healthcare's earnings presentation, Nov 28, 2024
Slide 1: Half Year Results Presentation FY2025
Half Year Results Presentation FY2025 Fisher & Paykel For six months ended 30 September 2024 HEALTHCARE
Slide 2: Important notice
Important notice Disclaimer The information in this presentation is for general purposes only and should be read in conjunction with Fisher & Paykel Healthcare Corporation Limited's (FPH) Interim Report 2025 and accompanying market releases. Nothing in this presentation should be construed as an inv
Slide 3: Half year business highlights
Half year business highlights RELEASED two new hardware platforms COMMENCED sales of our F&P Solo™ into the United States: the F&P 950™ nasal and pillows mask in the United System and Airvo™3 States BEGAN manufacturing at our new facility in Guangzhou, China INITIATED sales of our new F&P Optiflow D
Slide 4: Key half year financial results
Key half year financial results H1 FY25 (Six months to 30 September 2024) % of Revenue NZ$M SPCP* acc* Operating revenue 100% 951.2 18% 17% Hospital operating revenue 62% 591.4 21% 21% Homecare operating revenue 38% 359.4 14% 13% Gross margin / Gross profit 62% 588.7 141 bps 198 bps SG&A 27% (260.5)
Slide 5: Hospital product group
Hospital product group _» HARDWARE H1 FY25 HOSPITAL REVENUE COMPOSITION 950 System 850 System Airvo3 Airvo 2 HumiGard coseeseeneee CONSUMABLES Invasive Noninvasive Optiflow™ Optiflow™ Surgical ventilation ventilation nasal high flow 9 mHardware ™ Consumables H1 FY24 Hospital revenue composition Hard
Slide 6: Hospital product group
Hospital product group 6 Fisher &Paykel HEALTHCARE
Slide 7: Homecare product group
Homecare product group H1 FY25 HOMECARE REVENUE COMPOSITION - HARDWARE = => SleepStyle myAirvo 3 myAIRVO2 — [i 820System CONSUMABLES Q- Therapy/OSA © Home Respiratory Support % mHardware Consumables 2 OF H1 FY24 Homecare revenue composition Hardware: 13% Consumables: 87% Evora Full Evora Nasal Solo
Slide 8: Homecare product group
Homecare product group $359.4M Fisher & Paykel 8 HEALTHCARE
Slide 9: Gross margin
Gross margin GROSS MARGIN 70% Gross margin for the half year: 60% - increased by 141 bps to 61.9% 50% - increased by 198 bps in constant currency * This margin improvement reflects the ongoing 40% progress of our continuous improvement initiatives sox and overhead efficiency. 20% 10% 0% zzair?z SBR
Slide 10: Operating margin
Operating margin OPERATING (EBIT) MARGIN Operating expenses * $370.6M, +11% (+11% CC) * Operating margin increased by 394 bps 35% (+420 bps CC) to 22.9% * $110.1M, +14% (+14% CC) * Estimate ~60% of R&D spend eligible for tax credit for the full year * $9M recognised for the tax credit in first half
Slide 11: Cash flow and balance sheet
Cash flow and balance sheet H1FY24Nz$m = H1 FY25 Nz$m Operating cash flow 156.5 233.0 Capital expenditure (including purchases of intangible assets) (275.5) (55.1) Lease liability payments (8.5) (8.5) Free cash flow (127.5) 169.4 31 Mar 2024 30 Sep 2024 NZ$M NZ$M Net cash / (debt) (32.2) 50.0 Total
Slide 12: Dividend
Dividend * Increased interim dividend by 3% DIVIDEND HISTORY compared with the FY24 interim dividend iS Ga b fo) ° ° ° - 18.5 cps + 7.19 cps imputation credit for NZ residents (gross dividend of NZ 25.69 cps) - Fully imputed ° ° - 3.26 cps non-resident supplementary se. ¢ . dividend 10 * Dividend re
Slide 13: Foreign exchange effects
Foreign exchange effects H1 FY24 H1FY25 Change Reconciliation of Constant Currency to Reported Revenue NZ$M NZ$M NZ$M Revenue (constant currency) 783.8 919.5 135.7 Spot exchange rate effect 281 24.7 (3.4) Foreign exchange hedging result (12.1) 7.0 19.1 Balance sheet revaluation* 3.9 - (3.9) Total im
Slide 14: Outlook FY25
Outlook FY25 Operating revenue and net profit after tax At 31 October exchange rates*, the company continues to guide to the following: ¢ full-year operating revenue in the range of approximately $1.9 billion to $2.0 billion ¢ full-year net profit after tax in the range of approximately $320 million
Slide 15: Key Financials
r , d Sa Key Financials
Slide 16: Hedging cover
Hedging cover * 49% of operating revenue in US$ (H1 FY24: 49%) and 19% in € (H1 FY24: 19%). Year to 31 March Hedging position for our main exposures FY25 FY26 FY27 FY28 FY29 FY30- (as at 13 November 2024) FY35* USD % cover of estimated exposure 94% 80% 68% 50% 20% 1% USD average rate of cover 0.619
Slide 17: Revenue and expenses by currency
Revenue and expenses by currency H1FY25 (for the six months ended 30 September 2024) REVENUE BY CURRENCY COST OF SALES BY CURRENCY OPERATING EXPENSES BY CURRENCY =NZD m#USD BEUR @MXN m Other = NZD USD MEUR @ MXN m@ Other =NZD mUSD BEUR @MXN mOther 7 Fisheré.Paykel HEALTHCARE
Slide 18: Overview
r . Overview
Slide 19: Fisher & Paykel Healthcare at a glance
Fisher & Paykel Healthcare at a glance Global leader in respiratory humidification devices 19 Medical device manufacturer with leading positions in respiratory care and obstructive sleep apnea >50 years’ experience in changing clinical practice to solutions that provide better clinical outcomes and
Slide 20: ~NZ$25+ billion and growing market opportunity
~NZ$25+ billion and growing market opportunity Total addressable market estimates HOSPITAL HOMECARE ~150+ million patients ~100+ million patients Va 20 Invasive Ventilation ~ Noninvasive _ Hospital Ventilation Respiratory Support Applications outside of invasive ventilation Anesthesia Surgical ae Ho
Slide 21: Our aspiration
Our aspiration © iS) @ @ @ _ our aspiration: RESPIRATORY cpap HOSPITAL ANESTHESIA HOME SURGICAL Sustainably HUMIDIFICATION THERAPY/OSA RESPIRATORY RESPIRATORY TECHNOLOGIES ‘SUPPORT SUPPORT DOUBLING our constant currency revenue every 5-6 years. SHORT-TERM MEDIUM-TERM LONGER-TERM rm growth aspiration
Slide 22: Consistent growth strategy
Consistent growth strategy 22 OUR INPUTS Our people | 50+ years of trusted relationships Excellence in R&D Global supply networks Trusted brand Ti SUSTAINABLE, PROFITABLE GROWTH We aim to grow our business in a way that is sustainable and profitable over the long term GLOBAL REACH CHANGE CLINICAL In
Slide 23: A deep understanding of the problem and knowing what we are trying to achieve
A deep understanding of the problem and knowing what we are trying to achieve, leads to valued, innovative solutions
Slide 24: High level of innovation and investment in R&D
High level of innovation and investment in R&D * R&D represents 12% of operating revenue*: NZ$110.1M in 1H FY25 * Product pipeline includes: - Humidifier controllers - Masks - Respiratory consumables - Flow generators - Compliance monitoring solutions * 632 US patents, 573 US pending, 3,103 Rest of
Slide 25: Growing patent portfolio
Growing patent portfolio — FISHER & PAYKEL HEALTHCARE US PATENT PORTFOLIO (2008 - 2024) 700 600 Average remaining life of FPH patent 400 portfolio call countries): 300 10.7 years* 200 7 Tn nual 2008 2009 2010 201 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 mUS Patents m US Paten
Slide 26: Insert image of products in action and or Sales talking with clinician
• • • Insert image of products in action and or Sales talking with clinician • • •
Slide 27: Strong global presence
Strong global presence * Direct/offices Revenue by Region Six months to 30 September 2024 - Hospitals, homecare dealers - Sales/support offices in North America, Europe, Asia, South America, Middle East and Australasia, 21 distribution centres - ~1,400 employees in 54 countries - Ongoing internation
Slide 28: Manufacturing and operations
Manufacturing and operations New Zealand * Four buildings: 110,000 m2 / 1,180,000 ft? * Co-location of R&D and manufacturing * Continued development of East Tamaki campus Tijuana, Mexico * Three buildings: 63,000 m2 / 690,000 ft? Guangzhou, China * First shipment of product from our new manufacturin
Slide 29: Fisher & Paykel Healthcare
29 Fisher &Paykel HEALTHCARE
Slide 30: Invasive ventilation
Invasive ventilation Invasive ventilation refers to respiratory support delivered directly to a patient’s lower airways via an endotracheal (ET) or tracheostomy tube. ¢« Normal airway humidification is bypassed or compromised during ventilation ¢« Mucociliary transport system operates less effective
Slide 31: New applications consumables
New applications consumables New applications consist of: @pwaness ese, Geen ODesusica CONSTANT CURRENCY REVENUE GROWTH RATE IN NEW APPLICATIONS CONSUMABLES* FY1 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 31 Adjusted to exclude impact of US distribution transition in FY16 and F
Slide 32: Noninvasive ventilation
Noninvasive ventilation © Noninvasive ventilation involves the delivery of oxygen (ventilation support) via a face mask and without the need for endotracheal intubation. Reasons for requiring noninvasive ventilation: e Acute and chronic respiratory failure, chronic obstructive pulmonary disease, cys
Slide 33: Our NIV masks and their unique features
Our NIV masks and their unique features ) RollFit™ auto- Patented TubeFit™ Bridge-free™ NIV adjusting seal technology * Fisher& Paykel HEALTHCARE
Slide 34: Optiflow nasal high flow therapy
Optiflow nasal high flow therapy ® Optiflow nasal high flow therapy provides respiratory support to patients by delivering heated, humidified air and oxygen at flow rates up to 70 L/min via an Optiflow nasal cannula and a system such as the Airvo 2, Airvo 3, F&P 850 or 950. Patient groups who may be
Slide 35: Optiflow - displacing conventional oxygen therapy
Optiflow - displacing conventional oxygen therapy @ CONVENTIONAL NON-INVASIVE OXYGEN THERAPY VENTILATION oi # Va? Low flow nasal prongs Rebreather mask 8 ~6+million Estimated patients were treated with our Optiflow high flow therapy during the 2024 financial year Optiflow Nasal high flow therapy Fis
Slide 36: Clinical practice guidelines: NHF therapy
Clinical practice guidelines: NHF therapy Qe SUPPORTING CLINICAL i EMERGENCY PRACTICE GUIDELINES = DEPARTMENT Icu/HDU : RESPIRATORY GENERAL Primary support ESICM, ERS, SSC, AARC, : : ~~) MEDICAL ACP, TSANZ, WHO VV) iv) a [v) Primary support ~~) POST-OPERATIVE BIER ) Pre-escalation support/ : e Peri-
Slide 37: A growing body of clinical evidence
A growing body of clinical evidence Qe NASAL HIGH FLOW CLINICAL PAPERS PUBLISHED ANNUALLY 900 800 * The publication of 700 638 clinical papers 600 on NHF during the 2023 calendar year 900 signifies ongoing 400 clinical interest in 300 the therapy 200 100 0) SAwrwe HHS GF PG sr hh SSO sh Pr MP Annual
Slide 38: Optiflow in Anesthesia
Optiflow in Anesthesia The F&P Optiflow THRIVE™ system enables users to deliver THRIVE™ transnasal humidified rapid-insufflation ventilatory exchange and nasal high flow (NHF) therapy, which has been shown to optimize oxygenation during general anesthesia and procedural sedation. ce a In Procedural
Slide 39: Surgical humidification
Surgical humidification @ Surgical humidification is the delivery of warm, humidified CO, in laparoscopic and open surgery. * Current standard of care is dry CO, gas to the surgical site * Causes evaporation and cooling * Surgical humidification reduces the incidence of peri-operative hypothermia®?
Slide 40: Homecare
r Homecare
Slide 41: Obstructive sleep apnea
Obstructive sleep apnea Obstructive sleep apnea (OSA) is characterized by episodes of a complete (apnea) or partial collapse (hypopnea) of the upper airway with an associated decrease in oxygen saturation or arousal from sleep. 4) OSA is an underdiagnosed medical condition, with multiple negative ou
Slide 42: Mask matters most
Mask matters most @ *« Masks are key to compliance « Unique, patented designs * Released our new F&P Solo™ mask into the United States in April, while Nova Micro™ was launched in New Zealand and Canada during the half Evora Nasal Evora Full Solo Nova Micro 42 Fisher & Paykel HEALTHCARE
Slide 43: Home respiratory support
Home respiratory support es) The F&P myAirvo™ system delivers humidified high flow therapy to chronic respiratory patients at home and in long-term care facilities. * Chronic obstructive pulmonary disease (COPD) is a lung disease which is commonly associated with smoking * Chronic respiratory diseas
Slide 44: Operating Sustainably
r 1 = Operating | Sustainably 44 Fisher&.Paykel HEALTHCARE
Slide 45: Environmental, Social & Governance
Environmental, Social & Governance Our People The Board approved a discretionary profit-sharing payment of $6 million in the first half for those who have worked for the company for a qualifying period. Community and Volunteer Groups We are proud of the community groups supported through the Fisher
Slide 46: Ownership structure and listings
Ownership structure and listings * Listed on NZX and ASX (NZX.FPH, ASX.FPH) Shareholding structure as at Geographical ownership as at 30 September 2024 30 September 2024 <1% 4% m Australia m@ New Zealand ar ar m North America mUK NZ Institutions @ Other Institutions m Europe (ex UK) Asia m Brokers &
Slide 47: References
References 47 Rochwerg, Bram et al, "The role for high flow nasal cannula as a respiratory support strategy in adults: a clinical practice guideline.” Intensive care medicine vol. 46,12 (2020): 2226-2237. doil0.1007/s00134-020-06312-y Oczkowski, Simon, et al. “ERS Clinical Practice Guidelines: High
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