Accuray Incorporated · NASDAQ:ARAY
Accuray — Investor Presentation (January 2016)
21 slides from Accuray's investor presentation, Jan 11, 2016
Slide 1: Safe Harbor Statement
Safe Harbor Statement Forward Looking Statements 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 2: Accuray At-a-Glance
3 Accuray Overview Products: CyberKnife® and TomoTherapy® Systems Headquarters: Sunnyvale, CA Employees: 1,000 LTM Revenue(a): $387 million LTM Adjusted EBITDA(b): $23 million LTM Product Revenue: $186 million LTM Service Revenue: $201 million Service is recurring revenue source; average 3-year term
Slide 3: Large and Growing Market
4 Large and Growing Market Radiation Therapy is Integral to Cancer Treatment Worldwide incidence of cancer is estimated to reach 25 million cases by 2030; mainly driven by growth of aging population and lifestyle impacts 90% of all cancers projected as solid tumors: potentially treatable with radiot
Slide 4: Radiation Therapy is Growing in Importance
5 Radiation Therapy is Growing in Importance ©Accuray and/or its affiliates. All rights reserved. Cost Efficient 1 Increasing Support and Evidence for Efficacy 2 1x 3x 5x Relative Cost of Treatment
Slide 5: Global Radiotherapy Capacity Gaps
6 Global Radiotherapy Capacity Gaps 60% Growth in Market Capacity Projected Over Next 20 Years ©Accuray and/or its affiliates. All rights reserved. 2015 2035 GAP Radiotherapy Departments 7,700 10,900 3,200 Linear Accelerators 13,100 21,800 8,700 (Gap) +13,100 (Replacements) 21,800 (Total) Radiation
Slide 6: Accuray Opportunity: Products Positioned in Growth Segments
Specialty Economy Premium Value 7 Accuray Opportunity: Products Positioned in Growth Segments ©Accuray and/or its affiliates. All rights reserved. $1M $2M $3M $4M $5M Clinical Precision ASP SRS/SBRT IMRT Conventional RT 0% +29% 15% - 23% CyberKnife® M6™ Series TomoTherapy® H ™ Series *Source: U.S. d
Slide 7: Products' Unique Architecture Drives Superior Precision and Accuracy
8 ©Accuray and/or its affiliates. All rights reserved. TomoTherapy® Accuray Products CyberKnife® CT scanner-based; ring gantry platform Daily, low-dose 3D CT scan Fast MLC delivers thousands of “beamlets” with continuous 360° rotation of the ring gantry Dose contouring superiority Spares healthy tis
Slide 8: Commercial Strategy Execution
9 ©Accuray and/or its affiliates. All rights reserved. Commercial Strategy Execution Five Primary Business Initiatives to Drive Revenue and Margin Growth Focus on Installed Base Satisfaction and Upcoming Replacement Opportunities Accelerate TomoTherapy® Mainstream Product Positioning Broaden CyberKn
Slide 9: Accelerating TomoTherapy System Mainstream Product Positioning
10 ©Accuray and/or its affiliates. All rights reserved. Accelerating TomoTherapy® System Mainstream Product Positioning In Fiscal Q2 2016 > 50% Overall New TomoTherapy System Mix Sales was in 1 or 2 Vault Facilities 1. Estimates based on U.S. IMV 2012/13 Radiation Therapy Market Summary Report, July
Slide 10: CyberKnife InCise Multi-Leaf Collimator (MLC) Impact
11 ©Accuray and/or its affiliates. All rights reserved. CyberKnife® InCise™ Multi-Leaf Collimator (MLC) Impact Treatment times reported by customers for clinical cases delivered to patients. Includes setup and delivery time. (Treatment times reported by MultiPlan® planning station for equivalent fix
Slide 11: Focusing on Strategic Accounts
12 ©Accuray and/or its affiliates. All rights reserved. Focusing on Strategic Accounts Includes integrated delivery networks for both hospitals and free standing centers Can drive multi-system orders Accuray has partnerships with the following GPOs: Orders : Key Opinion Leader (KOL) within the radia
Slide 12: China Growth Potential
13 ©Accuray and/or its affiliates. All rights reserved. China Growth Potential Cancer Incidence in China Will Continue to Rise 65+ population will almost double in 15 years Source: World Health Organization, International Agency for Research on Cancer. http://globocan.iarc.fr/Pages/burden_sel.aspx a
Slide 13: Radiotherapy Treatment Capacity - China
14 ©Accuray and/or its affiliates. All rights reserved. Radiotherapy Treatment Capacity - China Major Capacity Gap When Compared to Developed Markets RT Systems Per 1,000 Cancer Patients* * Accuray internal estimates **http://www-naweb.iaea.org/nahu/dirac/query3.asp accessed 1/7/2016 1,115 linear ac
Slide 14: Accuray Commercial Progress – China
15 ©Accuray and/or its affiliates. All rights reserved. Accuray Commercial Progress – China Through Fiscal Q2 2016 Since 2013, Accuray products were placed in >85% of bunkers where Class A radiotherapy licenses were issued 34 licenses awarded to hospitals for Accuray products 39 licenses issued by N
Slide 15: Accuray Rated #1 in Independent Market Research
16 ©Accuray and/or its affiliates. All rights reserved. Accuray Rated #1 in Independent Market Research Source: IMV ServiceTrak™ Radiation Oncology 2015 System Performance Factors System uptime meets expectations Reliability System ease of use Value of system upgrades Ease of treatment planning inte
Slide 16: Installed Base Replacement Opportunities – Growth Catalyst
17 ©Accuray and/or its affiliates. All rights reserved. Installed Base Replacement Opportunities – Growth Catalyst Group Purchasing Organizations /Strategic Accounts 4.6X units will hit 10 year mark in next 3 years vs. previous 3 years Average radiation therapy system replacement cycle is 10 years 7
Slide 17: FY16 Q2 Order Demographics
18 ©Accuray and/or its affiliates. All rights reserved. FY16 Q2 Order Demographics Continued Execution of Commercial Strategic Initiatives **Final Q2FY16 Results to be issued on January 28, 2016** Gross Orders Expected to be Approximately $67 Million Greater than 50% of TomoTherapy® System orders pl
Slide 18: FY16 Q2 Update and FY16 Guidance
19 ©Accuray and/or its affiliates. All rights reserved. FY16 Q2 Update and FY16 Guidance Accuray Momentum Continues Gross orders of approximately $67M Revenues of approximately $107.5M; an increase of 10% (13% constant currency) Four gross product orders were converted from backlog to revenue in Chi
Slide 19: Progressive Financial Improvement Driving to Sustained Profitability
20 ©Accuray and/or its affiliates. All rights reserved. Progressive Financial Improvement Driving to Sustained Profitability Committed to profitable revenue growth from expanding margins and controlled operating expenses Currency fluctuations in FY2015 negatively impacted Revenues and Operating Inco
Slide 20: Progressive Financial Improvement
Progressive Financial Improvement Driving to Sustained Profitability FY2016 millions) FY2013 FY2014 FY2015CC (1) __ Guidance (2) Total Revenue $316.0 $369.4 $394.1 $395 - $410 Gross profit $97.6 $142.8 $156.9 Margin 30.9% 38.7% 39.8% Operating Income ($80.7) ($18.1) ($10.4) Net Income ($103.2) ($35.
Slide 21: Precise, innovative tumor treatments
Precise, innovative tumor treatments” w ACCURAY®