Nanosonics Limited · ASX:NAN
Nanosonics — Shareholder Meeting (November 2020)
42 slides from Nanosonics's shareholder meeting presentation, Nov 24, 2020
Slide 1: 2020 Annual General Meeting
2020 ANNUAL GENERAL MEETING 24 NOVEMBER, 2020
Slide 2: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY We acknowledge the traditional owners of the various lands in which we meet virtually today and pay respects to all Aboriginal Elders, past and present, and acknowledge today’s Aboriginal communities who are the custodians of these lands. Protection by design 2
Slide 3: Board of Directors
BOARD OF DIRECTORS Board of Directors Maurie Stang Steven Sargent Michael Kavanagh Lisa McIntyre Non-Executive Chairman Non-Executive Director, Deputy Chairman CEO and President Non-Executive Director and Lead Independent Director David Fisher Marie McDonald Geoff Wilson Non-Executive Director Non-E
Slide 4: Online Attendees – Question Process
ONLINE ATTENDEES – QUESTION PROCESS • When the Question function is available, the Q&A icon will appear at the top of the app. • To send in a question, simply click in the ‘Ask a question’ box, type your question and the press the send arrow • Your question will be sent immediately for review Protec
Slide 5: Online Attendees – Voting Process
ONLINE ATTENDEES – VOTING PROCESS • When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen • To vote simply select the direction in which you would like to cast your vote, the selected option will change colour. • There is no submit or send button, y
Slide 6: Chairman's Address
nanosonics Infection Prevention. For Life. CHAIRMAN’S ADDRESS
Slide 7: Our Mission, Our Values
OUR MISSION OUR VALUES We improve the safety of patients, clinics, their staff and the environment by transforming the way infection prevention practices are understood and conducted, and introducing innovative technologies that deliver standards of care. Protection by design 7
Slide 8: Expanding Global Presence
EXPANDING GLOBAL PRESENCE Protection by design Nanosonics distributes its products in 27 countries, either through direct operations or via distributor partners. 8
Slide 9: Total Revenue and Installed Base
INSTALLED BASE TOTAL REVENUE Global installed FY20 Total Revenue TOTAL REVENUE VS PCP ($M) base grew 13% to up 19% to 19% 23,720 $100.1m In the first three quarters of the year, strong GLOBAL INSTALLED BASE UP growth was experienced with total revenue increasing 26% on prior corresponding period. 13
Slide 10: R&D: Five Core Areas of Focus
R&D Substantial investment made in new product FIVE CORE AREAS OF FOCUS development with important milestones met throughout the year towards our product expansion goals. COMPLIANCE AND TRACEABILITY INSTRUMENT CLEANING 37% Digitally-enabled tools to Mandatory critical first increase visibility and s
Slide 11: Environmental, Social and Corporate Governance
ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE Protection by design 11
Slide 12: Capital Management
CAPITAL MANAGEMENT C A S H AND C A S H E Q U I V A L E N T S CASH AND CASH EQUIVALENTS ($M) $91.8m as at 30 June 2020 Cash and cash equivalents up $19.6 million to $91.8 million supporting ongoing growth and expansion. Protection by design 12
Slide 13: Board of Directors
BOARD OF DIRECTORS Board of Directors Maurie Stang Steven Sargent Michael Kavanagh Lisa McIntyre Non-Executive Chairman Non-Executive Director, Deputy Chairman CEO and President Non-Executive Director and Lead Independent Director David Fisher Marie McDonald Geoff Wilson Non-Executive Director Non-E
Slide 14: Protection by design
nanosonics Infection Prevention. For Life.
Slide 15: CEO & President's Address
nanosonics Infection Prevention. For Life. CEO & PRESIDENT’S ADDRESS
Slide 16: Our Strategic Priorities
OUR STRATEGIC PRIORITIES TROPHON AS EXPAND GEOGRAPHIC PRODUCT EXPANSION INVEST TO GROW STANDARD OF CARE FOOTPRINT • Support establishment of • Expand operations • Expand portfolio of • Maintain strong financial international guidelines. across Asia Pacific and infection prevention position to suppor
Slide 17: Protection by design
Protection by design
Slide 18: Installed Base
INSTALLED BASE Global installed base grew 13% to GLOBAL INSTALLED BASE UP 23,720 units 13 % • In the first three quarters of the year, the growth in installed base in North America NORTH AMERICA was in line with expectations (i.e. similar INSTALLED BASE UP to FY19). During that period, the number 13
Slide 19: Significant Global Market Opportunity
SIGNIFICANT GLOBAL MARKET OPPORTUNITY Installed base opportunity Market Penetration Cumulative Installed Base • Increasing number of international guidelines requiring high level disinfection (HLD) supporting growing 120,000 international demand. • Nanosonics expanding its footprint geographically b
Slide 20: Expanding Global Presence
EXPANDING GLOBAL PRESENCE Protection by design Nanosonics distributes its products in 27 countries, either through direct operations or via distributor partners. 20
Slide 21: Total Revenue
TOTAL REVENUE TOTAL REVENUE FY20 FY20 Q1-Q3 AND Q4 Total Revenue TOTAL REVENUE VS PCP ($M) TOTAL REVENUE VS PCP ($M) up 19% to 19% $100.1m 26% In the first three quarters of the year, strong growth was experienced with total revenue increasing 26% on prior corresponding period. Q4 Revenue of $25.3 m
Slide 22: Total Revenue by Region
TOTAL REVENUE BY REGION FY20 TOTAL REVENUE FY20 Q1-Q3 AND Q4 VS PCP ($M) TOTAL REVENUE VS PCP ($M) 18 % 25 % 0.4% 37 % 43 % 20 % 17 % 27 % 10 % Protection by design Graphs are not to scale and therefore not comparable 22
Slide 23: Capital Revenue
TOTAL REVENUE capital REVENUE FY20 CAPITAL FY20 Q1-Q3 AND Q4 Capital Revenue REVENUE VS PCP ($M) CAPITAL REVENUE VS PCP ($M) down 9% to $30m 9% While sales to end customers increased during the year, overall capital revenue decreased reflecting: 5% A reduction in the number of units purchased by GE
Slide 24: Consumable/Service Revenue
CONSUMABLE/SERVICE REVENUE Consumable/Service Revenue Consumables/ FY20 CONSUMABLES/ SERVICE REVENUE FY20 Q1-Q3 AND Q4 CONSUMABLES/SERVICE REVENUE VS PCP VS PCP ($M) ($M) Service Revenue up 36% to 36% $70.1m 39% In the first three quarters of the year, revenue was up 39% on prior corresponding perio
Slide 25: New Product Development
NEW PRODUCT DEVELOPMENT Substantial investment made in new product FIVE CORE AREAS OF FOCUS development with important milestones met throughout the year towards our product expansion goals. COMPLIANCE AND TRACEABILITY INSTRUMENT CLEANING 37% Digitally-enabled tools to Mandatory critical first incre
Slide 26: Free Cash Flow and Cash
FREE CASH FLOW FREE CASH FLOW FREE FLOW CASH $20.9m ($M) Free cash flow for the year was $20.9 million compared with $2.6 million in prior corresponding period, driven by increased receipts from customers. CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS ($M) $91.8m as at 30 June 2020 Cash and ca
Slide 27: Operating Expenses and Profit Before Tax
OPERATING EXPENSES $63.2m OPERATING EXPENSES ($M) The Company continued to invest in its strategic growth agenda with operating expenses up 28% to $63.2m. 28% P R O F I T B E F O R E TAX PROFIT BEFORE TAX ($M) $12.4m as at 30 June 2020 As a consequence of the planned increase in investment in growth
Slide 28: Upgrade Opportunity
UPGRADE OPPORTUNITY Upgrade 7+ years from installation Age distribution of the Global Installed Base as at October 2020 Significant upgrade opportunity continues to emerge as existing install base ages and new generation devices are introduced into the market Protection by design 28
Slide 29: narfosonics
narfosonics (LM ioe n. For Life.
Slide 30: 2020 Annual General Meeting: Formal Business
2020 ANNUAL GENERAL MEETING FORMAL BUSINESS
Slide 31: Resolution 1
RESOLUTION 1 Re-election of a director – Mr Steve Sargent Resolution: That Mr Steve Sargent, who retires as a Director pursuant to the Company’s Constitution and, being eligible, offers himself for re-election, be re-elected a Director. Proxy votes received Number % For : 189,997,806 98.72 Against :
Slide 32: Resolution 2
RESOLUTION 2 Re-election of a director – Ms Marie McDonald Resolution: That Ms Marie McDonald, who retires as a Director pursuant to the Company’s Constitution and, being eligible, offers herself for re-election, be re-elected a Director. Proxy votes received Number % For : 190,026,756 98.72 Against
Slide 33: Resolution 3
RESOLUTION 3 Election of a director – Dr Lisa McIntyre Resolution: That Dr Lisa McIntyre, who was appointed to the Board since the 2019 Annual General Meeting and retires in accordance with the Company’s Constitution and ASX Listing Rule 14.4, and, being eligible, offers herself for election, be ele
Slide 34: Resolution 4
RESOLUTION 4 Remuneration Report Resolution: That the Remuneration Report for the financial year ended 30 June 2020 be adopted. Proxy votes received Number % For : 177,485,874 97.43 Against : 3,496,042 1.92 Discretion : 1,184,413 0.65 Abstained/Excluded : 10,696,652 - 34 34 34 34 Protection by desig
Slide 35: Resolution 5
RESOLUTION 5 Issue of 19,112 Performance Rights to the Chief Executive Officer and President, Mr Michael Kavanagh, under the 2020 Short Term Incentive (2020 STI) Resolution: That approval be given for all purposes under the Corporations Act 2001 (Cth) and the ASX Listing Rule 10.14 for the issue of
Slide 36: Resolution 6
RESOLUTION 6 Issue of 208,884 Share Appreciation Rights and 143,298 Performance Rights to the Chief Executive Officer and President, Mr Michael Kavanagh, under the 2020 Long-Term Incentive (2020 LTI) Resolution: That approval be given for all purposes under the Corporations Act 2001 (Cth) and the AS
Slide 37: Resolution 7
RESOLUTION 7 Re-insertion of Proportional Takeover Provisions in Constitution Resolution: That the proportional takeover provisions at clause 1.6 of the Company’s Constitution, in the form attached to this Notice of Meeting as Annexure A, be re-inserted into the Constitution for a period of three ye
Slide 38: Online Attendees – Question Process
ONLINE ATTENDEES – QUESTION PROCESS • When the Question function is available, the Q&A icon will appear at the top of the app. • To send in a question, simply click in the ‘Ask a question’ box, type your question and the press the send arrow • Your question will be sent immediately for review Protec
Slide 39: Online Attendees – Voting Process
ONLINE ATTENDEES – VOTING PROCESS • When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen • To vote simply select the direction in which you would like to cast your vote, the selected option will change colour. • There is no submit or send button, y
Slide 40: Online Attendees – Question Process
ONLINE ATTENDEES – QUESTION PROCESS • When the Question function is available, the Q&A icon will appear at the top of the app. • To send in a question, simply click in the ‘Ask a question’ box, type your question and the press the send arrow • Your question will be sent immediately for review Protec
Slide 41: Protection by design
nanosonics Infection Prevention. For Life.
Slide 42: Disclaimer
Full Year 2020 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 commercia