Accuray Incorporated · NASDAQ:ARAY
Accuray — 2023 Cowen Healthcare Investor Conference
27 slides from Accuray's conference presentation, Mar 6, 2023
Slide 1: Innovation Driven Growth Strategy
2023 Cowen Healthcare Investor Conference Innovation Driven Growth Strategy March 6, 2023 Exhibit 99.1
Slide 2: Safe Harbor Statement
Proprietary and Confidential Property of Accuray 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 Securiti
Slide 3: Accuray Overview: Global Leader in Precision Radiation Therapy
Accuray Overview Global Leader in Precision Radiation Therapy Vision: Expand Curative Power of RT to Improve the Lives of Patients Diagnosed with Cancer Systems Installed in Over 60 Countries1 1: As of October 20, 2022 2: Estimated percentage of revenue invested into R&D Installed Base Achieved in J
Slide 4: Strongly Positioned for Value-based Care
Strongly Positioned for Value-based Care 4 U.S. Cancer Expenditures Estimate ($ Billion)1,2 1: Dieguez G., Ferro C., Pyenson B.S. A multi-year look at the cost burden of cancer care: Milliman research report. https://milliman-cdn.azureedge.net/-/media/Milliman/importedfiles/uploadedFiles/insight/201
Slide 5: The Golden Age of Radiotherapy
5 The Golden Age of Radiotherapy Radiotherapy/surgery emerging as potential first-line therapy Shorter Treatment Regimens Improved Visualization Personalized Treatments Powerful Partnerships Clinical Innovation Reduced Patient Burden – Advanced Precision – Improved Outcomes Proprietary and Confident
Slide 6: Accuray Executive Leadership Team
Suzanne Winter President and CEO Ali Pervaiz Senior Vice President, Chief Financial Officer Sandeep Chalke Senior Vice President, Chief Commercial Officer Jesse Chew Senior Vice President, General Counsel Mike Hoge Senior Vice President, Global Operations Patrick Spine Senior Vice President, Chief A
Slide 7: Accuray Systems: Differentiated Solutions
7 Accuray Systems: Differentiated Solutions CT-Linac System Radixact® System Robotic System CyberKnife® Accuray Precision® Premium Performance Radiosurgery/SBRT System Connectivity to the RT Department Treatment Planning System Proprietary and Confidential Property of Accuray
Slide 8: The Radixact System: a Universal Workhorse
The Radixact® System: a Universal Workhorse Synchrony® 4D Dynamic Delivery Simple VOLO™ Ultra Planning Unique Helical Platform Any Case Complexity Precise Helical Dose Painting ClearRT™ Imaging Quick Installation Vendor Neutral Connectivity 8 Proprietary and Confidential Property of Accuray
Slide 9: The CyberKnife Radiosurgery System
The CyberKnife® Radiosurgery System Unique Robotic Platform Submillimeter Accuracy Fast Delivery Versatile SRS/SBRT System Thousands of Beam Angles Flexible Collimation For Various Cases Powerful Planning Choices Moving Or Stationary Targets 9 Proprietary and Confidential Property of Accuray
Slide 10: Accuray Software Solutions
Accuray Software Solutions Accuray Precision® Treatment Planning iDMS® Data Management Synchrony® Motion Adaptation Technology High-quality Plans All Case Types Strategic Software Partnerships1 10 1: C-RAD, Brainlab, RaySearch, Limbus AI OIS Compatibility Seamless Integration AI-Driven Real-Time Ada
Slide 11: Radiation Therapy Market
Radiation Therapy Market1 1: ReAnin Radiotherapy Market, Global Industry insights and trends 2017-2027. $3.3B $2.5B $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Proton Therapy Cobalt Brachytherapy Systemic Therapy Software Total: $5.8B $M Accuray Competes in Premium and Specialty Markets Proprietary
Slide 12: FY23-25 Radiation Therapy Market: Mature versus Growth Markets
FY23-25 Radiation Therapy Market Mature versus growth markets 1: Based on COCIR radiotherapy age profile & density, December 2019 Edition, DIRAC database and proprietary data, data on file 2: Infoholic and COCIR reports on proportion of systems and system ageing: ASP estimated at $2-2.3B, data on fi
Slide 13: Ultra-Hypofractionation is Ready for Prime-Time
Ultra-Hypofractionation is Ready for Prime-Time 20% adoption0 growing with Phase II-III clinical evidence 70%5 Breast, prostate, lung cancer, and metastases Patient Mix Phase II-III Trials Fast-Forward PACE-B STARS SABR-COMET Adoption 20% HF UHF0 HF: hypofractionation UHF: ultra-hypofractionation Fa
Slide 14: PACE-A Prostate Cancer Trial Shows Fewer Side Effects with SBRT
14 Proprietary and Confidential Property of Accuray Treatment with SBRT resulted in better sexual function after 2 years2 At 2 years, men treated with SBRT were 10x less likely to need urinary pads to manage urinary incontinence (4.5% vs 47%)2 First randomized, multicenter trial testing 5-fraction S
Slide 15: Strategic Areas of Focus
15 Strategic Areas of Focus Proprietary and Confidential Property of Accuray Drive market share through disruptive innovation Expand service business Transform through strategic partnerships Drive margin and profitability initiatives
Slide 16: Multi-year Service Strategic Focus
16 Service quality and customer satisfaction Clinical technology adoption China JV partner and emerging market distribution Commercial focus Expansion of direct-service channels Value-added service offering expansion Parts cost productivity Design-for-serviceability Inventory optimization Securing a
Slide 17: Accuray - GE Healthcare Partnership
17 Accuray - GE Healthcare Partnership Global commercial collaboration agreement Proprietary and Confidential Property of Accuray Expand market access to innovative precision solutions from diagnosis to treatment Accuray radiation therapy technologies + GE Healthcare’s imaging solutions Emphasis on
Slide 18: China JV Strategy
18 Establish domestic presence, brand, product Launch Tomo® C for large and growing Type-B segment Leverage our strong market share (>70%) in Type-A Leverage CAMT infrastructure for COGS reduction & value product manufacturing China JV Strategy CAMT (JV) is our path to winning share in the growing R
Slide 19: Q2'FY23 Highlights
Q2’FY23 Highlights NMPA regulatory submission completed for Tomo® C, the joint venture product for the China Type B segment Awarded 18 systems in the November 2022 Ministry of Health Type A central bidding process in China1 Received IMV Award for Best in Service in Radiation Oncology for 2022 Comple
Slide 20: Q2'FY23 Financials
Q2’FY23 Financials Strong financial performance KEY FINANCIAL METRICS $M Q2 Y/Y Highlights Solid Q2 orders performance with a book-to-bill ratio of greater than 1.2x Strong customer demand and adoption of new capabilities Continue to navigate supply chain and inflation challenges FX continues to b
Slide 21: FY23 Guidance Affirmed February 1, 2023
FY23 Guidance Affirmed February 1, 20231 Revenue Adjusted EBITDA2 $429.9M $22.8M FY23 Guidance Range1 FY22 Actual $ in millions % = YoY Growth $447M - $455M +4% - 6% $26M - $30M +14% - 32% 1 FY23 guidance affirmed February 1, 2023. Nothing contained herein should be construed as reaffirmation of suc
Slide 22: FY24-FY27 aEBITDA Margin Expansion Strategy
22 FY24 - FY27 aEBITDA Margin* Expansion Strategy Note: Illustrative graph, not to scale *adjusted EBITDA is a non-GAAP financial measure FY19-22 Avg aEBITDA Margin* FY23 FX Impact FY23 Inflation, Supply Chain issues Innovation/ Commercial Execution OPEX Management 3-Yr aEBITDA Margin* Target Servic
Slide 23: In Summary
In Summary Growing momentum with 1000th installed base milestone achieved during current quarter Strongest product portfolio and pipeline in company’s history Multiple growth drivers and global commercial execution Focused on margin expansion and optimizing working capital Positioned for Long-Term R
Slide 24: Thank you
ACCURAY Thank you
Slide 25: GAAP to Adjusted EBITDA Q2 FY23 and Q2 FY22 Actual
$K GAAP net income (loss) Stock-based compensation Interest expense, net Provision for income taxes Adjusted EBITDA Depreciation and amortization Three Months Ended December 31, Three Months Ended December 31, 2021 2022 $ $ $ $ (1,874) 1,151 3,126 2,642 1,049 8,498 179 1,422 2,695 2,070 480 6,846 ER
Slide 26: GAAP to Adjusted EBITDA FY22 Actual
GAAP to Adjusted EBITDA FY22 Actual Reconciliation of Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (Adjusted EBITDA) $K GAAP net income (loss) Stock-based compensation Interest expense, net Provision for income taxes Adjusted
Slide 27: GAAP to Adjusted EBITDA FY23 Forward Looking Guidance
$K GAAP net income (loss) Stock-based compensation Interest expense, net Provision for income taxes Adjusted EBITDA Depreciation and amortization To From $ $ $ $ (5,500) 6,300 11,600 8,000 2,000 26,000 (1,500) 6,300 11,600 8,000 2,000 30,000 ERP and ERP related expenditures 1,600 Restructuring charg