Accuray Incorporated · NASDAQ:ARAY
Accuray — Investor Day (October 2023)
42 slides from Accuray's investor day presentation, Oct 3, 2023
Slide 1: Accuray Investor Briefing ASTRO 2023
Accuray Investor Briefing ASTRO 2023 Advancing Care, Creating Value San Diego, CA October 3, 2023 EXHIBIT 99.1
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation is intended exclusively for investors. 2 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-look
Slide 3: Agenda
Agenda 01 02 03 Q & A 04 05 06 07 Welcome and Opening Remarks Suzanne Winter Chief Executive Officer Clinical Trends in Radiation Therapy: Real World Experiences from Key Opinion Leaders Seth Blacksburg, M.D., MBA Chief Medical Officer Financials Ali Pervaiz Chief Financial Officer Commercial Strate
Slide 4: Our Vision / How We Operate
Our Vision How We Operate Think, act, and execute beyond expectations every day to deliver better, safer radiation therapy solutions and help patients get back to living their lives, faster Vision To expand the curative power of radiation therapy to improve as many lives as possible
Slide 5: Accuray Executive Team
Accuray Executive Team Tenured Healthcare Expertise – Incentives Aligned with Shareholders Suzanne Winter President and CEO Ali Pervaiz Senior Vice President, Chief Financial Officer Sandeep Chalke Senior Vice President, Chief Commercial Officer Seth Blacksburg Senior Vice President, Chief Medical O
Slide 6: Accuray Board of Directors
Accuray Board of Directors Extensive MedTech Expertise With a Focus on Value Creation for Stakeholders Suzanne Winter President and CEO Member of the Board of Directors 6 Joe Whitters Chair of the Board of Directors James Hindman Chair of the Audit Committee Anne Le Grand Chair of the Science and Te
Slide 7: Cancer and Radiation Therapy Trends
Cancer and Radiation Therapy Trends Cancer Burden Grows and Care Gaps Exist Cancer incidence continues Global disparity in access to care Radiation Therapy Landscape Global RT market dominated by 3 companies High barriers to entry Significant capital equipment investment Installed base (IB) growth i
Slide 8: Closing the Gaps to Cancer Care
Closing the Gaps to Cancer Care Advance Care by providing solutions that address the biggest pain points in RT Drive Patient Access to radiotherapy treatments in developed and high potential underserved markets Delight Customers by ensuring high operational performance so no patient is rescheduled H
Slide 9: Our Strategic Growth Plan: Key Pillars
Our Strategic Growth Plan: Key Pillars Outpace market growth with Innovations Expand service revenue with installed base growth and focus on uptime Profitability expansion Strengthen balance sheet and cash flow Operational excellence and efficiency
Slide 10: Innovation Driven Growth
Innovation Driven Growth 10 *
Slide 11: Innovation Highlights from ASTRO
Innovation Highlights from ASTRO High quality CT imaging Driving Radixact new system demand ClearRT™ VitalHold™ Surface Guided RT for breast cancer therapy Available in US, EU; Japan/Sonin pending Alliance A+ Value-added Service solutions Accuray Financial Services Online Adaptive Solution for Radix
Slide 12: Online Adaptive Solution on the Radixact System
Online Adaptive Solution on the Radixact® System 510(k) Pending. Online Adaptive on the Radixact® System is not available for sale in the USA. It is not CE marked and availability is subject to regulatory clearance or approval in some markets. Chameleon by Magenta Dream, generated with AI/stock.adob
Slide 13: Accuray FY23 Highlights
Accuray FY23 Highlights * Global Leader in Precision Radiation Therapy Vision: To expand the curative power of radiation therapy to improve as many lives as possible Russell 2000® Index Broad-market Russell 3000® Index New Headquarters Location Madison, WI 9% $448M Growth in FY23 system volume over
Slide 14: FY23 Revenue: Balanced Regional Revenue Contribution
35% 14% 24% 27% FY23 Revenue: $448M Balanced Regional Revenue Contribution 5% YOY 24% YOY 3.7% CAGR 5.5% CAGR Growing Global Momentum in FY23
Slide 15: Significant Global Market Opportunity
Significant Global Market Opportunity Total Addressable Radiotherapy Market: $3.5B1 Economy $350M Value $1.4B Premium $1.2B Specialty $525M Future: Incremental $1.4B Value Segment Estimate FY23 market share3 26% 8-10% Growth4 0-3% Growth2 Today: Compete in $1.75B Segment 1. ReAnin Radiotherapy Marke
Slide 16: Expanding Access to Global Value Segment
Expanding Access to Global Value Segment Accuray Helix™ Tomo® C Locally Manufactured, China Solution Manufactured in Madison, Wisconsin Fueling Growth in China Type B Market Unique Features Designed for Workflow Efficiency
Slide 17: Commercial Strategy
ACCURAY Commercidl Strategy
Slide 18: Advancing Cancer Care in Over Countries
Advancing Cancer Care in Over 60 Countries Japan France Georgia, U.S. Kenya Slovakia
Slide 19: Regional Strategy: Key Commercial Priorities
Regional Strategy … Key Commercial Priorities FY23 Revenue Contribution 27% 35% 24% 14% Japan APAC EIMEA AMS Installed Base Protect Grow Grow Sustain Market Growth Flat/Negative Growing Growing Flat/Slow Growth Direct Channel USA Central Europe, India China, HK, Korea Japan
Slide 20: China: Preparing for Type-B Market Growth
China: Preparing for Type-B Market Growth CY20231 China Roadshows IB Growth CAGR 22% Hubei 05/05 Chongqing 04/27 Anhui 05/20 Hebei 05/26 Hunan 07/22 Chengdu TBD Guangdong TBD 1 2 3 4 5 6 7 Type-A RT Market Share Leader 170 Person JV Customer Team (June 30th) 1. CY is calendar year
Slide 21: Expanding Commercial Growth Through Partnerships
Expanding Commercial Growth Through Partnerships
Slide 22: Service: Significant Revenue and Margin Growth Opportunity
1 2 3 4 10 Service: Significant Revenue and Margin Growth Opportunity Install/Go Live Warranty Period Prime years End of System Life Order/Ship 11 14 18 months 3 months 12 months 10 years 3-5 years Average Lifecycle Timeline1 22 Product/Feature Upgrades 3-4 years Service Solutions Annual Bridge to R
Slide 23: Clinical Trends in Radiation Therapy
Clinical Trends in Radiation Therapy 23
Slide 24: Clinical Trends in Radiation Therapy
Clinical Trends in Radiation Therapy Growth Conventional RT Brachytherapy LDR Brachytherapy HDR Proton RT Projected 5-Yr and 10-Yr Growth % in Projected RO Claims1 Improvements in screening more early-stage disease Better detection of metastatic disease; more aggressive treatment Better systemic t
Slide 25: Clinical Trends in Radiation Medicine
Clinical Trends in Radiation Medicine Focus: Personalized Medicine Firmly Tethered to Workflow and Economic Realities PACE-A/B, 10-year Follow-up Salvage SBRT Spacers DIL boosting Prostate SBRT Oligometastatic Disease PSMA SABR COMET Theranostics (Lu-177) CNS Malignant: synchronous and metachronous
Slide 26: Supporting Providers With Education
1 Prostate SBRT Hands-on Symposium, Tokyo LATAM Cancer Summit, Colombia Global Training Hubs Tianjin, China Madison, Wisconsin Genolier1, Switzerland Tokyo, Japan Training classrooms Sales site visits Advanced education and curricula Supporting Providers With Education 26 1. Genolier site is under c
Slide 27: U.S. Payer Trends and Payment Models
U.S. Payer Trends and Payment Models 27
Slide 28: Delivering on Value Based Care
Delivering on Value Based Care Equity Efficiency Timeliness Safety Effective Patient Centeredness Value-Based Healthcare 28
Slide 29: Financials
ACCURAY Financials Proprietary and Confidential Property of Accuray 29
Slide 30: FY23 Financial Performance
FY23 Financial Performance FY23 Highlights Historic revenue milestone with 24% growth in system volume over prior year Revenue adjusted for FX $465M (exceeded the high-end of FY23 guidance by $10M) 5% growth in global installed base year over year Underlying service revenue growth of 5% XFX Positive
Slide 31: Building Durable Organic Growth
Building Durable Organic Growth Predictable Revenue Growth Margin Expansion Strengthen Balance Sheet Build profitable reliable backlog Grow recurring service revenue Innovate new customer solutions Price accretion across portfolio Reduce product COGS Optimize service cost to serve Enhance cash posit
Slide 32: Predictable Revenue Growth
Predictable Revenue Growth Cultivating Consistent Revenue Growth Core business product innovation Grow recurring service offerings Penetrate high-growth value segment Expansion of global customer base Recurring Revenue Non-Recurring Revenue Note: Illustrative graphs not to scale ~4-6% Revenue CAGR T
Slide 33: Delivering Margin Expansion: Key Pillars
Delivering Margin Expansion : Key Pillars Pricing Accretion Service Growth OPEX Management Operational Excellence 33
Slide 34: 3-year aEBITDA Margin Expansion Strategy
3-year aEBITDA Margin1 Expansion Strategy Note: Illustrative graph, not to scale 1. adjusted EBITDA (or aEBITDA) is a non-GAAP financial measure 2. High single digit FY23 aEBITDA Margin1 Foreign Exchange and Inflation Product Mix Service Solutions OPEX Management aEBITDA Margin1 Goal Pricing Product
Slide 35: Strong Cash Position
Strong Cash Position Strengthen Balance Sheet Priorities Continued Cash Reserve Growth Strategic Debt Repayment Positive Free Cash Flow Generation Inventory Turnover Days Sales Outstanding Leverage new ERP Improved Forecasting Higher Parts Quality Receivables Management Upgraded Terms Enhanced Credi
Slide 36: Top Priorities: Clear Path to Value Creation
Predictable Revenue Growth Margin Expansion Strengthen Balance Sheet Top Priorities… 01 02 03 Accuray Advancing Care, Driving Value High-Performing Culture Strong Operating Framework Strategic Capital Allocation Clear Path to Value Creation 36
Slide 37: Q&A
ACCURAY QéA
Slide 38: Closing Remarks
ACCURAY Closing Remarks
Slide 39: Creating Meaningful Value
Large, growing markets especially in emerging economies Growing faster than the market through product innovation Significant growth opportunities in Accuray Solutions Building durable organic growth with improved profitability and balance sheet management Creating Meaningful Value Driven by Our Vis
Slide 40: Thank you
ACCURAY Thank you
Slide 41: Appendix
ACCURAY C) Appendix
Slide 42: GAAP to Adjusted EBITDA Reconciliation
$K GAAP net income (loss) Stock-based compensation Interest expense, net Provision for income taxes Adjusted EBITDA Depreciation and amortization $ $ $ $ (9,280) 4,527 10,053 10,340 2,492 23,948 (5,347) 5,522 10,600 8,109 3,345 22,823 ERP and ERP related expenditures 3,078 Restructuring charges 2,73