ResMed Inc. · NYSE:RMD
ResMed — William Blair Growth Stock Conference 2015
33 slides from ResMed's conference presentation, Jun 10, 2015
Slide 1: William Blair Growth Stock Conference
William Blair Growth Stock Conference Robert Douglas – President & COO June 10, 2015
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Statements contained in this presentation that are not historical facts are “forward- looking” statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements -- including statements regarding ResMed's projections of fut
Slide 3: Who We Are
WHO WE ARE WHY INVEST WHERE WE’RE GOING ©ResMed 2014 I 3
Slide 4: Overview
Overview Leading global developer, manufacturer and marketer of medical solutions to treat and manage sleep-disordered breathing, chronic obstructive pulmonary disease and other chronic respiratory conditions. • Operate in more than 100 countries directly and with distribution partners • Integrated
Slide 5: Holy Grail: Improve outcomes & reduce healthcare costs
Holy Grail: Improve outcomes & reduce healthcare costs • Improve quality-of-life for patients • Prevent chronic disease progression • Reduce costs of managing chronic disease ©ResMed 2014 I 5
Slide 6: Opportunity to shift care from hospital to home
Opportunity to shift care from hospital to home Source: OECD report (2011) – WHY IS HEALTH SPENDING IN THE UNITED STATES SO HIGH? www.oecd.org ©ResMed 2014 I 6
Slide 7: We can reduce costs of key chronic diseases
We can reduce costs of key chronic diseases $403 billion Annual costs per chronic condition $165 billion* $147 $145 billion billion Obstructive Sleep Apnea CVD & Stroke $20 billion Obesity Diabetes Asthma MMWR, Vol 60, 2011 CDC National Asthma CDC, National Diabetes Eric A. Finkelstein, et al, Healt
Slide 8: Why Invest
WHO WE ARE WHY INVEST WHERE WE’RE GOING ©ResMed 2014 I 8
Slide 9: Why invest
Why invest Strong Portfolio Strong Performance Growth Drivers Broad range of Solid revenue growth Underpenetrated products & solutions track-record global SDB market − Wireless, cloud- New adjacent markets Operational excellence in COPD, CAD & AF connected devices is part of our DNA − End-
Slide 10: Q3 2015 Results
Q3 2015 Results Key Financial Metrics Q3 2015 $422M Revenue +6% (13% CC) Gross margin 59.5% $91M GAAP net income +1% $0.65 Non-GAAP EPS +2% $0.64 GAAP EPS +2% Operating profit $106M Cash flow from operations $91M Free cash flow $80M ©ResMed 2014 I 10
Slide 11: Diversified revenue sources by region & product
Diversified revenue sources by region & product Europe 31% Masks and Accessories 41% Americas Flow 59% Generators 59% Asia-Pacific 10% ©ResMed 2014 I 11
Slide 12: Strong financial performance
Strong financial performance (USD in Billions, except EPS) Revenue Net Income 11% 19% CAGR CAGR $0.3 $1.6 $0.9 $0.1 2009 2014 2009 2014 EPS Free Cash Flow 21% 20% CAGR CAGR $2.42 $0.3 $0.95 $0.1 2009 2014 2009 2014 ©ResMed 2014 I 12
Slide 13: Robust capital management
Robust capital management Capital Deployment FCF returned to Increasing Dividend Investment for Growth Shareholders YTD 2015 Dividend payout New products YTD 2015 combined dividend ratio of 44% of net income and stock repurchase = 92% Geographic expansion 2015 dividend per share of free ca
Slide 14: Where We're Going
WHO WE ARE WHY INVEST WHERE WE’RE GOING ©ResMed 2014 I 14
Slide 15: ResMed's Three Horizon Growth Strategy
ResMed’s Three Horizon Growth Strategy Changing lives with every breath 20 million lives changed by 2020 Improve patient quality of life Prevent chronic disease progression Reduce healthcare system costs Horizon 3 Accelerate and Expand into New Markets Patient Growth • Respiratory monitoring solutio
Slide 16: Horizon 1: We changed the basis of competition
Horizon 1: We changed the basis of competition Air Solutions: Smaller, Quieter, More Comfortable… and More Connected DIAGNOSIS THERAPY MONITORING & MGMT. PATIENT ENGAGEMENT BILLING ©ResMed 2014 I 16
Slide 17: Proven HI Solutions builds competitive advantage
Proven HI Solutions builds competitive advantage The ability to predict outcomes, communicate insights and act on data effectively and efficiently keeps ResMed in a leadership position. ©ResMed 2014 I 17
Slide 18: U-Sleep – Better Efficiency, Better Outcomes
U-Sleep – Better Efficiency, Better Outcomes AirView™ U-Sleep™ Enhanced management by exception Data U-Sleep™ automatically Automated patient rules engine transmitted coaching (HALO) AirSense device with ResMed onboard AirView™ data wireless server 3rd-party integrations Multiple Points of Value Cli
Slide 19: AirFit range – World-leading Patient Interfaces
AirFit range – World-leading Patient Interfaces 50% quieter & lighter Compact, user-friendly Compact design Easy to fit design Ease of use Visual freedom Ease of use; comfort Patients ranked #1 for seal, Visual freedom comfort and ease of use Patients ranked #1 compared to indust
Slide 20: We continue to build sleep apnea awareness
We continue to build sleep apnea awareness “Ignorance is our major competitor” • “Better Sleep for Women” education and product focused campaign • S+ by ResMed – consumer sleep management solution available online and retail; connected to Apple HealthKit ©ResMed 2014 I 20
Slide 21: ResMed's Three Horizon Growth Strategy
ResMed’s Three Horizon Growth Strategy Changing lives with every breath 20 million lives changed by 2020 Improve patient quality of life Prevent chronic disease progression Reduce healthcare system costs Horizon 3 Accelerate and Expand into New Markets Patient Growth • Respiratory monitoring solutio
Slide 22: Horizon 2: Huge potential to improve outcomes in COPD
Horizon 2: Huge potential to improve outcomes in COPD • Mortality risk reduced by over 60% on a relative basis when using long-term non-invasive ventilation (NIV) 0.40 Control Group Intervention Group treatment in chronic obstructive p=0.0004 pulmonary disease (COPD) 0.30 Cumulative Mortality • One-
Slide 23: Our new respiratory care platform: Astral
Our new respiratory care platform: Astral ResMed introduces the Astral life support ventilator globally: Designed to enrich life for patients • Freedom: patient quality-of-life • Ease of use: saves clinician time • Low total cost of ownership: efficiency * The Astral™ platform is water resistant, bu
Slide 24: Horizon 2: Full spectrum of ventilation products
Horizon 2: Full spectrum of ventilation products Life Support Ventilation Non-invasive Ventilation (NIV) Product Features Astral™ Bilevel Lumis™ Stellar™ AirCurve 10 Patient Requirements ©ResMed 2014 I 24
Slide 25: ResMed's Three Horizon Growth Strategy
ResMed’s Three Horizon Growth Strategy Changing lives with every breath 20 million lives changed by 2020 Improve patient quality of life Prevent chronic disease progression Reduce healthcare system costs Horizon 3 Accelerate and Expand into New Markets Patient Growth • Respiratory monitoring solutio
Slide 26: Sleep apnea: Highly prevalent in key diseases
Sleep apnea: Highly prevalent in key diseases Stroke 63% Depression 45% Drug-Resistant Hypertension 83% Heart Failure 76% Coronary Artery Disease 57% Morbid Obesity 77% Atrial Fibrillation 49% Type 2 Diabetes 72% References: Logan et al. J. Hypertension; O’Keefe and Patterson, Obes Surgery; Oldenbur
Slide 27: Horizon 3: Heart Failure reduced ejection fraction (HFrEF)
Horizon 3: Heart Failure reduced ejection fraction (HFrEF) • SERVE-HF Headline Result: ‒Neutral with no signal in the primary endpoint: all-cause mortality and HF • Key Points: hospitalization ‒The use of positive airway pressure in other clinical indications is not associated with increased cardiov
Slide 28: Horizon 3: Heart Failure preserved ejection fraction (HFpEF)
Horizon 3: Heart Failure preserved ejection fraction (HFpEF) Dose-response relationship between SDB and cardiovascular outcome Reference: Damy et al. Eur. J Heart Fail. 2012 • Goal: Incorporate ASV therapy • Status: Enrollment underway as into the ACC/AHA heart failure preparation for future clinica
Slide 29: Horizon 3: Atrial Fibrillation (AF)
Horizon 3: Atrial Fibrillation (AF) • Conclusion of study in JACC: ‒CPAP use associated with reduced AF recurrence ‒Reduced AF recurrence seen in two key groups • Patients who underwent catheter ablation • Patients who underwent non-ablation medical mgmt. ‒Data included 7 studies with n=1,087 patien
Slide 30: Horizon 3: Coronary Artery Disease (CAD)
Horizon 3: Coronary Artery Disease (CAD) • Conclusion of data from ATS ‒Results suggest CPAP reduces risk for adverse cardiovascular outcomes in revascularized patients with CAD and non-sleepy OSA ‒CPAP usage of at least 4 hours per night is crucial to achieve this risk reduction ©ResMed 2014 I 30
Slide 31: Changing lives with every breath
Changing lives with every breath In the last 12 months, we changed more than 8 million lives, literally keeping patients breathing… and we are just getting started. Our aspiration is to change 20 million lives by 2020 ©ResMed 2014 I 31
Slide 32: Why invest
Why invest Strong Portfolio Strong Performance Growth Drivers Broad range of Solid revenue growth Underpenetrated products & solutions track-record global SDB market − Wireless, cloud- New adjacent markets Operational excellence in COPD, CAD & AF connected devices is part of our DNA − End-
Slide 33: Contact Investor Relations
Contact Investor Relations Phone: (858) 836-5971 Email: investorrelations@resmed.com Website: www.investor.resmed.com