Fisher & Paykel Healthcare Corporation Limited · NZX:FPH
Fisher & Paykel Healthcare — NZX SciTech Seminar 2006
17 slides from Fisher & Paykel Healthcare's conference presentation, Aug 3, 2006
Slide 1: NZX SciTech Seminar
NZX SciTech Seminar 1 & 3 August 2006
Slide 2: Investment Highlights
Investment Highlights • Leading player in heated humidification systems • Consistent growth strategy • Estimated US$2+ billion and growing market opportunity • High level of innovation • Global presence • Strong financial performance NZSX:FPH, ASX:FPH 2
Slide 3: Operating Results US$
Operating Results US$ FY06 (12 mths) %Revenue US$M %Ìpcp Trading revenue 100% 199.6 +23% Gross profit 70.1% 140.0 +19% SG&A 28.2% 56.3 +24% R&D 5.9% 12.0 +9% Total Operating Expenses 34.2% 68.2 +21% Operating Profit 35.9% 71.7 +18% 3
Slide 4: Markets and Products
Markets and Products Neonatal • Respiratory and Other humidification 11% • Obstructive sleep apnea • Neonatal and other OSA 44% Resp. Hum. 45% ¯ Consumable products represent approx. 59% of core Revenue by Product product sales 12 months to 31 March 2006 4
Slide 5: Respiratory Humidification
Respiratory Humidification • Normal airway humidification is bypassed or compromised during ventilation or O2 therapy • Mucociliary transport system operates less effectively – increases risk of infection – impairs gas exchange • Need to deliver gas at physiologically normal levels – 37°C body core
Slide 6: Humidification Systems
Humidification Systems • MR850 Respiratory Humidifier System – invasive ventilation, O2 therapy and non-invasive ventilation • MR880 Respiratory Humidifier System – simpler controls – O2 therapy • MR810 Respiratory Humidifier System – entry level system – ventilation and O2 therapy – optional heated
Slide 7: Single-use Components
Single-use Components • Single-use chambers – patented auto filling MR290 • Single-use breathing circuits – patented spiral heater wire – proprietary dry expiratory tube – less condensation – delivery of optimal humidity • Breathing circuit components – filters – catheter mount – weaning kit • Inter
Slide 8: Expanding Opportunities
Expanding Opportunities Invasive Ventilation Non-invasive Ventilation O2 Therapy COPD Device Coming … Humidity Therapy Laparoscopic Insufflation 8
Slide 9: Obstructive Sleep Apnea
Obstructive Sleep Apnea • Temporary closure of airway during sleep • Can greatly impair quality of sleep, leading to fatigue; also associated with hypertension, stroke and heart attack • Estimated US$1.2+ billion worldwide market, growing 15% - 20% Normal breathing • Potentially 50-60 million affect
Slide 10: CPAP Systems
CPAP Systems • HC150 Humidifier • SleepStyle™ 200 Convertible and Integrated Flow Generator series – greater pressure range, altitude adjustment, enhanced user ergonomics – patented Ambient Tracking™ plus auto- adjusting humidification technology • SleepStyle™ 600 Integrated Flow Generator series –
Slide 11: Mask Range
Mask Range Four interface categories: • FlexiFit™Nasal Masks – patented sliding attachment – FlexiFit™ technology – new 406 Petite model • FlexiFit™Full Face Mask – under chin seal • Oracle™Oral Mask – proprietary oral interface • Infinity™Direct Nasal Mask – very light 11
Slide 12: Neonatal and Warming
Neonatal and Warming • Radiant Warmers – warmers required in delivery and NICU – precise and stable temperature control – opportunity in operating room • Infant CPAP System – proprietary bubble CPAP, non-invasive, oscillating pressure – lower risk alternative to ventilation – high value consumable s
Slide 13: Research & Development
Research & Development • 190 engineers, scientists, physiologists • 6.0% of revenue FY06 • Product pipeline includes – Flow generators – Masks – Humidification system for COPD therapy – Respiratory consumables • 61 US patents, 71 US pending, 145 ROW, 236 ROW pending * * at 31 Mar 2006 13
Slide 14: Manufacturing
Manufacturing • Vertically integrated − electronics assembly − injection moulding − motor assembly • ISO 9001; Class 100,000 controlled environment • Ample capacity to grow − 300,000ft2 / 28,000m2 facility − 23,000m2 building completed July 2006 − 100 acres / 40 ha 14
Slide 15: Global Presence
Global Presence • Direct – hospitals, home care dealers – Sales/support offices in USA/Canada, Asia Pacific Other 19% 5% UK/Ireland, France/Benelux/Italy/ Spain, Germany/Austria/Switzerland, India, Japan, UAE, China, Taiwan, Sweden, Brazil, Australia and NZ – 350+ staff – Ongoing international expan
Slide 16: Revenue Growth US$
Revenue Growth US$ 210 200 FY ended 31 March CAGR 190 FY 2002 180 CORE 23.2% 170 FY 2003 TOTAL 22.3% 160 FY 2004 150 FY 2005 140 130 FY 2006 120 US$M 110 100 CAGR 19% CAGR 28% 90 80 70 60 50 40 30 CAGR 29% 20 10 0 Respiratory OSA Warming/ Other TOTAL Humidification Neonatal 16
Slide 17: Growth Drivers
Growth Drivers Consistent strategy: • Continue to improve existing product lines • Develop complementary products/ consumables • Target new medical applications – e.g. COPD, NIV, O2 therapy, insufflation • Increase international presence 17
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