Resmed Inc. · NYSE:RMD
Resmed — 42nd Annual William Blair Growth Stock Conference 2022
33 slides from Resmed's conference presentation, Jun 8, 2022
Slide 1: 42nd Annual William Blair Growth Stock Conference
nd 42 Annual William Blair Growth Stock Conference Rob Douglas, President & COO June 8, 2022
Slide 2: Presentation of financial information & forward-looking statements
Presentation of financial information & forward-looking statements Historical financial and operating data in this presentation reflect the consolidated results of ResMed Inc., its subsidiaries, and its legal entities, for the periods indicated. This presentation includes financial information prepa
Slide 3: Company Overview & Strategy
Company Overview & Strategy
Slide 4: Who we are / what we do
Who we are / what we do • Listed on NYSE & ASX, ~$30B market cap • World-leading digital health company with over 17 million 100% cloud-connectable devices – 19+ million patients in AirView monitoring ecosystem – 115+ million patient accounts in out-of-hospital care network • Innovative designer and
Slide 5: Why invest? – driving long-term shareholder value
Why invest? – driving long-term shareholder value Growth & Innovation Market Dynamics Financial Results • Global leader in digital health for • Underpenetrated markets in sleep • Historical revenue and profit growth sleep and respiratory care and COPD • Recurring revenue • Long-term growth opportuni
Slide 6: ResMed 2025 | Patient-centric, digitally-enabled strategy
ResMed 2025 | Patient-centric, digitally-enabled strategy 250 million lives improved in out-of-hospital healthcare in 2025! Purpose Empower people to live happier, healthier, and higher quality lives in the comfort of their home Growth Focus Global health epidemics in sleep apnea, COPD, other major
Slide 7: Positioned to win
Positioned to win Growing the Driving digital Transforming market innovation out-of-hospital care at scale through commercial in sleep and respiratory excellence and expanding care to radically improve to drive better outcomes, market access patient experience and lower costs, and improve outcomes q
Slide 8: Our Business: Sleep & Respiratory Care
Our Business: Sleep & Respiratory Care
Slide 9: Proactive care to capture significant underpenetrated markets
Proactive care to capture significant underpenetrated markets Chronic disease is the largest driver of healthcare spending in developed economies Sleep apnea COPD Asthma • Leading indicator, and a contributing • Largely undiagnosed COPD sufferers in • Significant opportunity to improve factor, to ma
Slide 10: Transforming care by enabling an integrated healthcare model
Transforming care by enabling an integrated healthcare model Sleep apnea patient journey Benefits Customer(s) Patients Payers Healthcare providers Patients Payers Reach and engage untreated patients Integrated patient Identification Diagnosis Treatment Short-term Resupply Long-term Disease Enable se
Slide 11: Leadership in OSA treatment with physical devices
Leadership in OSA treatment with physical devices Devices Key differentiators Quietest, most intuitive devices on the market Latest launch AirSense 11: newest, most connected device • Expanding digital tools for patient experience, including patient engagement built into device Masks1 Minimalist Fre
Slide 12: Leadership in OSA treatment with data applications
Leadership in OSA treatment with data applications Key differentiators User-friendly, intuitive platform provides milestone Large installed base with over 19M patient enrolled in our accomplishments and motivation to patients, increasing cloud-based software solution therapy adherence, and improving
Slide 13: At the forefront of Respiratory Care
At the forefront of Respiratory Care Patient Digital High-Flow Highlights Management Therapeutics Therapy Widest range of therapies for higher acuity respiratory patients, including COPD and asthma Broadest set of digitally connected respiratory therapy devices Bilevel Non-invasive Ventilation Life
Slide 14: Leveraging our scale with data and digital solutions
Leveraging our scale with data and digital solutions Now Next For Patients For Patients With more than • Coaching and usage help in context • Personalized coaching in myAir 11.5 billion nights through myAir app based on Machine Learning of therapy For Providers For Providers usage data we have a uni
Slide 15: Our Business: Software as a Service (SaaS)
Our Business: Software as a Service (SaaS)
Slide 16: Leading provider of cloud-based software for out-of-hospital care providers
Leading provider of cloud-based software for out-of-hospital care providers across multiple settings Our breadth uniquely Out-of-hospital care positions us to be the ecosystem innovation engine for providers Software solutions and data Home Medical Hospice/ Pharmacy/ Home Private Skilled Senior Life
Slide 17: We have a leading position across these markets
We have a leading position across these markets Continuously PATIENT & API CALLS & OTHER RESIDENT RECORDS TRANSACTIONS USERS expanding market potential 115M+ 10M+ 700K+ IN OUR OUT-OF-HOSPITAL CARE NETWORK PER DAY $2.0B FY 2021 estimated market size HME: #1 position and expanding into Pharmacy / Home
Slide 18: Uniquely positioned to address provider needs
Uniquely positioned to address provider needs Demand for greater coordination across provider markets Home Medical Pharmacy / Infusion Home Hospice/ Private Skilled Senior Life Plan Equipment Health Palliative Duty Nursing Living Communities Providers Care • Providers are diversifying and lines are
Slide 19: Digital Health Technology
Digital Health Technology
Slide 20: Our digital health solutions improve outcomes and lower costs
Our digital health solutions improve outcomes and lower costs ecosystem Patient outcomes Artificial intelligence Connected devices and digital health Out-of-hospital platform CLINICIAN Business outcomes Machine learning IDN APPS/DIGITAL PATIENT/ Operations THERAPEUTICS CONSUMER HME/PAYORS DEVICES Fo
Slide 21: We transform 11.5+ billion nights of medical data into useful outcomes
We transform 11.5+ billion nights of medical data into useful outcomes End-to-end digital health solutions in sleep, respiratory care, and out-of-hospital healthcare DIAGNOSIS THERAPY MONITORING & MGMT. PATIENT ENGAGEMENT BILLING & INTEGRATIONS 21 © 2022 ResMed | 42nd Annual William Blair Growth Sto
Slide 22: Global leader in digital health
Global leader in digital health 19+ million >17 million patients on AirView™ 100% cloud connectable devices worldwide 2+ million >115 million diagnostic tests processed in the cloud accounts in out-of-hospital care network ~100 API 4+ million calls per second from integrators patients have signed up
Slide 23: Recent Quarterly Results
Recent Quarterly Results
Slide 24: Q3 FY22 financial results
Q3 FY22 financial results Diversified revenue by business & by geography OOH SaaS 12% $ in millions, except per share amounts 3Q22 $864.5 Revenue Revenue Devices +12%, +14% CC by business 50% 58.1% 3Q22 Non-GAAP gross margin* (150) bps Masks & Other $253.0 38% Non-GAAP operating income* +5% $1.32 OO
Slide 25: Capital allocation
Capital allocation $ in millions 3Q22 Higher priority • Reinvest in product development for Cash and cash equivalents $202 Reinvest for high-return organic growth growth • 7-8% of revenue invested in R&D Debt $681 • Actively evaluate potential acquisitions Net debt $479 Pursue M&A • Pursue targets a
Slide 26: Track record of strong financial returns for shareholders
Track record of strong financial returns for shareholders (Financial data as of March 31, 2022) Revenue ($B) Non-GAAP Operating Income ($M) Non-GAAP EPS 12% CAGR 16% CAGR 15% CAGR $3.5 $1,062 $5.65 $2.0 $504 $2.80 LTM 3Q17 LTM 3Q22 LTM 3Q17 LTM 3Q22 LTM 3Q17 LTM 3Q22 Total shareholder return, TSR (N
Slide 27: Our vision is to empower people to take control of their health
Our vision is to empower people to take control of their health so they can sleep better, breathe better, and live better lives outside the hospital Connected therapy devices Connected medications Improve the Increase long- Lower the Improve Measurably Improve Masks patient term adherence cost of he
Slide 28: 250 million lives in 2025
In the last 12 months, we changed over 137 million lives with our digital health products and cloud-based software solutions Our aspiration is to improve 250 million lives in 2025 28 © 2022 ResMed | 42nd Annual William Blair Growth Stock Conference | June 8, 2022
Slide 29: Contact Investor Relations
Contact Investor Relations Phone: (858) 836-5971 Email: investorrelations@resmed.com Website: investor.resmed.com
Slide 30: APPENDIX
APPENDIX
Slide 31: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures The measures “non-GAAP gross profit” and “non-GAAP gross margin” excludes amortization expense from acquired intangibles related to cost of sales and are reconciled below: (Unaudited; $ in thousands, except for per share amounts) Three Months Ended Nine
Slide 32: Reconciliation of non-GAAP financial measures, cont’d
Reconciliation of non-GAAP financial measures, cont’d The measure “non-GAAP income from operations” is reconciled with GAAP income from operations below: (Unaudited; $ in thousands, except for per share amounts) Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, 2022 2021 2
Slide 33: Reconciliation of non-GAAP financial measures, cont’d
Reconciliation of non-GAAP financial measures, cont’d The measure “non-GAAP net income” and “non-GAAP diluted earnings per share” are reconciled with GAAP net income and GAAP diluted earnings per share in the table below: (Unaudited; $ in thousands, except for per share amounts) Three Months Ended N
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