Slide 1: 2021 Half Year Results Investor Presentation
Infection Prevention. For Life. 2021 HALF YEAR RESULTS INVESTOR PRESENTATION Michael Kavanagh – CEO and President McGregor Grant – CFO and Company Secretary
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 covered in it. The information in this presentation, whether written or verbal, has been prepared without taking into account the commercial, financial or
Slide 3: H1 FY21 Highlights
“It is very H1 FY21 Highlights encouraging to • Global installed base up 12% in last 12 months and up 6% in last 6 months to 25,100 units. Importantly, the number of new units installed in Q2 FY21 was up 38% compared with Q1 FY21. see a significant • Half year revenue of $43.1 million, down 11% comp
Slide 4: Company Overview
C O M PA N Y O V E R V I E W ASX 200 listed healthcare company specialised in the development and KEY CORPORATE DATA 1 commercialisation of infection prevention solutions Share price $6.05 • First product, trophon® – proprietary automated technology for low temperature, high level disinfection (HLD)
Slide 5: Global Installed Base
I N S TA L L E D B A S E GLOBAL Global installed CUMULATIVE INSTALLED BASE UNITS 25,100 base grew 12% 23,720 20,930 in last 12 months 17,740 and 6% in last 14,160 In last 12 months In the last 6 months 6 months to 12 % 6% 25,100 units 2017 2018 2019 2020 H1 2021 GLOBAL The Company experienced NEW IN
Slide 6: Installed Base by Region
I N S TA L L E D B A S E B Y R E G I O N CUMULATIVE INSTALLED BASE NEW UNITS INSTALLED UNITS BY QUARTER (Q3 FY20–Q2 FY21) NORTH AMERICA In last In last Q1 FY21 Q2 FY21 20,990 22,120 12 months 6 months 650 650 vs Q4 FY20 vs Q1 FY21 18,570 15,620 11% 5% 410 480 17 % 35 % 2018 2019 2020 H1 2021 Q3 FY20
Slide 7: Nanosonics Revenue Profile: Range of Selling Models
R A N G E O F S E L L I N G M O D E LS 1 DIRECT CHANNEL DISTRIBUTION CHANNEL MANAGED FULL SERVICE CAPITAL SALE EQUIPMENT SERVICE RENTAL DISTRIBUTION CAPITAL RESELLER • Capital equipment • Nanosonics provides capital • Customer rents capital • Distributor purchases capital • Distributor purchases cap
Slide 8: Financial Results Review
nanosonics Infection Prevention. For Life. FINANCIAL RESULTS REVIEW
Slide 9: Total Revenue Down 11% vs PCP
T O TA L R E V E N U E Total revenue down TOTAL REVENUE BY HALF ($M) 11% vs PCP to 48.5 43.1 $4 3 .1 m H1 FY21 vs PCP The lower revenue was primarily driven by the foreshadowed 11 % reduction in purchases by GE Healthcare as a result of the impacts of COVID-19 on its inventory at 30 June 2020 as wel
Slide 10: Total Revenue by Region
T O TA L R E V E N U E B Y R E G I O N TOTAL REVENUE TOTAL REVENUE BY QUARTER BY HALF ($M) (Q3 FY20–Q2 FY21) ($M) NORTH AMERICA The impact in revenue was primarily associated with the foreshadowed significant reduction in capital equipment purchases and a reduction in purchases of consumables in Q1
Slide 11: Capital Revenue Down 35% vs PCP
C A P I TA L R E V E N U E Capital Revenue CAPITAL REVENUE BY HALF ($M) down 35% vs PCP to 14.4 $ 9 .4 m 9.4 H1 FY21 vs PCP 35 % H1 FY20 H1 FY21 Impact was primarily felt in the first CAPITAL REVENUE BY QUARTER (Q3 FY20–Q2 FY21) ($M) quarter where no capital units were 8.2 sold to GE Healthcare resu
Slide 12: Capital Revenue by Region
C A P I TA L R E V E N U E B Y R E G I O N CAPITAL REVENUE CAPITAL REVENUE BY QUARTER BY HALF ($M) (Q3 FY20–Q2 FY21) ($M) NORTH AMERICA H1 FY21 Q1 FY21 Q2 FY21 13.5 vs PCP 7.3 6.8 vs Q4 FY20 vs Q1 FY21 7.2 47 % 5.4 74 % 200 % 1.8 H1 FY20 H1 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 EUROPE AND MIDDLE EAST
Slide 13: Consumables/Service Revenue Down 1% vs PCP
CONSUMABLE / SERVICE REVENUE Consumables/ CONSUMABLES/ SERVICE REVENUE BY HALF ($M) Service Revenue 34.1 33.7 down 1% vs PCP to $ 3 3 .7m H1 FY21 vs PCP 1% Revenue from consumables and service in Q1 FY21 was impacted by a reduction in ultrasound procedure volumes in Q4 of FY20. H1 FY20 H1 FY21 This
Slide 14: Consumables/Service Revenue by Region
CONSUMABLES/SERVICE REVENUE BY REGION CONSUMABLES/SERVICE CONSUMABLES/SERVICE REVENUE REVENUE BY HALF ($M) BY QUARTER (Q3 FY20–Q2 FY21) ($M) NORTH AMERICA H1 FY21 Q1 FY21 Q2 FY21 30.3 29.7 vs PCP 16.0 16.4 17.0 vs Q4 FY20 vs Q1 FY21 2% 12.7 23 % 34 % H1 FY20 H1 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 E
Slide 15: Operating Expenses and Profit Before Tax
O P E R AT I N G E X P E N S E S $ 33.0 m OPERATING EXPENSES ($M) 63.2 49.2 Continued investment in the 42.6 32.5 Company’s growth strategy with 37.0 first half operating expenses of 27.7 $33.0 million, up 8% on prior 23.3 corresponding period and up 19.9 2% compared with H2 FY20. 30.7 33.0 19.3 21.
Slide 16: Free Cash Flow and Cash Position
FREE CASH FLOW ( $ 2.4 m ) FREE FLOW CASH ($M) 20.9 Free cash flow for the half year 15.1 was a net outflow of $2.4 million compared with a net cash inflow of $10.0 million in prior corresponding period due to the amount and 6.2 timing of customer receipts and the timing of supplier payments. 2.6 (2
Slide 17: Profit and Loss Summary
PROFIT AND LOSS SUMMARY HIGHLIGHTS FY21 FY20 CHANGE% FY20 CHANGE% • Half year revenue of $43.1 million down 11% $ Million H1 H1 (vs H1 FY20) H2 (vs H2 FY20) (down 8% in constant currency 1) compared with prior corresponding period. Capital revenue 9.4 14.4 (35%) 15.6 (40%) • Gross profit of $34.2 mi
Slide 18: Significant Global Market Opportunity
SIGNIFICANT GLOBAL MARKET OPPORTUNITY Installed base opportunity Market Penetration Cumulative Installed Base 25,100 23,720 20,930 GLOBAL 17,740 14,160 • Increasing number of international guidelines requiring 120 , 000 high level disinfection (HLD) supporting growing international demand. 21% units
Slide 19: Expanding Global Presence
E X PA N D I N G G L O B A L P R E S E N C E Nanosonics distributes its products in 27 countries, either through direct operations or via distributor partners. RUSSIA SWEDEN FINLAND NORWAY DENMARK ESTONIA UNITED KINGDOM CANADA GERMANY IRELAND AUSTRIA BELGIUM SWITZERLAND FRANCE ROMANIA UNITED STATES
Slide 20: New Product Development
nanosonics Infection Prevention. For Life. NEW PRODUCT DEVELOPMENT
Slide 21: New Product Development
NEW PRODUCT DEVELOPMENT Nanosonics continues FIVE CORE AREAS OF FOCUS to invest in a number of innovations aimed COMPLIANCE AND INSTRUMENT at addressing a TRACEABILITY CLEANING broader range of Digitally-enabled tools to increase visibility and Mandatory critical first step which sets up Infection i
Slide 22: Investment in R&D
NEW PRODUCT DEVELOPMENT In the first half The R&D team continued to make $7.6 million was significant progress across a number invested in R&D, of projects including a new platform up 12% on prior technology and a solution for further corresponding digital traceability and reporting. period. INVESTM
Slide 23: Our Strategic Priorities
O U R S T R AT E G I C P R I O R I T I E S TROPHON AS EXPAND GEOGRAPHIC PRODUCT EXPANSION INVEST TO GROW STANDARD OF CARE FOOTPRINT • Support establishment of • Expand operations • Expand portfolio of • Maintain strong financial international guidelines. across Asia Pacific and infection prevention
Slide 24: Business Outlook
BUSINESS OUTLOOK “The positive growth FY21 EXPECTATIONS trend and improving • Based on current market improvements the Company is anticipating ongoing growth in total revenue and profitability into the second half, driven by increasing installed market conditions base growth and increased usage of c
Slide 25: Beyond FY21
BUSINESS OUTLOOK Despite the current BEYOND FY21 challenges of the Our forward looking growth agenda remains very much intact and indeed the COVID-19 pandemic increases our resolve to execute on this agenda. Beyond FY21, Nanosonics COVID-19 pandemic is targeting: our longer term strategic • Continue
Slide 26: Appendix
—) = < je) — 2) c © c £ 5 5 2 < 3 = S $ 2 a Ss 2 oS 2 = APPENDIX
Slide 27: Slide 27
Slide 28: A Real Market Need
A REAL MARKET NEED Fundamentals for adoption continue to strengthen Risk of cross with an increasing number of international guidelines contamination requiring high level disinfection for semi critical probes with ultrasound probes well Traditional mechanisms trophon® setting of decontamination a ne
Slide 29: trophon System Overview
trophon is an automated system that delivers effective, ® TROPHON The latest innovation in efficient and safe high level disinfection of ultrasound ultrasound probe high probes level disinfection. trophon® Consumables Accessories KEY FEATURES • Highly effective in killing bacteria, fungi and viruses