Fisher & Paykel Healthcare Corporation Limited · NZX:FPH
Fisher & Paykel Healthcare — Investor Presentation (November 2001)
28 slides from Fisher & Paykel Healthcare's investor presentation, Nov 21, 2001
Slide 1: Fisher & Paykel Healthcare
(2) sm Fisher Paykel HEALTHCARE (2 es . i ig Fisher & Paykel HEALTHCARE vor Nei
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may include forward-looking statements and actual results could vary. Such forward-looking statements, including statements regarding our future revenue and earnings projections and the development of new markets for our products, are subject to risks and
Slide 3: Recent Separation and US IPO
Recent Separation and US IPO Fisher & Paykel Industries Ltd. Fisher & Paykel Fisher & Paykel Healthcare Corp. Ltd. Appliances Holdings Ltd. • Business established 1971 • Appliance, finance divisions • Listing on NASDAQ, NZ • <20% cross holding of F&P and Australian Stock Healthcare Exchanges • Listi
Slide 4: Investment Highlights
Investment Highlights • Leading player in heated humidification devices and consumables for a variety of respiratory markets - estimated US$1 billion+ market opportunity • High level of innovation • Global presence • Competitive NZ cost base • Strong financial performance • Experienced management te
Slide 5: Markets and Products
Markets and Products • Respiratory humidification (52% of sales) – respiratory humidifiers, chambers, breathing circuits and accessories • Obstructive sleep apnea (35% of sales) – integrated flow generator-humidifiers, humidifiers, masks and chambers • Neonatal and other (13% of sales) – neonatal wa
Slide 6: 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 7: Market Opportunity
Market Opportunity Humidification systems are utilized to create, control and deliver optimal levels of humidity • Estimated US$350 million market worldwide – consists of heated humidifier controllers, humidifier chambers, breathing circuits, unheated humidifiers and related supplies – 1.5 million i
Slide 8: Fisher & Paykel's Humidification Systems
Fisher & Paykel’s Humidification Systems Fisher & Paykel has a full range of industry-leading respiratory humidification systems Products include: MR850 Respiratory Humidification System • invasive ventilation, O2 therapy and non-invasive ventilation • patented flow measuring technology • integrated
Slide 9: Single-use Components
Single-use Components • Single-use chambers – patented auto filling MR290 – manual filling models • Single-use adult breathing circuits – patented spiral heater wire – less condensation – delivery of optimal humidity à On average, 35 system set-ups used per controller per year
Slide 10: Competitive Advantage
Competitive Advantage • Creating, controlling and delivering optimal humidity poses technical challenges • Integrated humidifier, chamber, circuit system provides: – optimal performance – marketing advantage • Bundled consumable sales driven by installed controllers – Estimate F&P has >50% global co
Slide 11: Obstructive Sleep Apnea
Obstructive Sleep Apnea • Estimated US$500 million worldwide market, growing 15%-20% • Temporary closure of airway during sleep • Can greatly impair quality of sleep, leading to fatigue and reduced cognitive function; also associated with stroke and Normal breathing heart attack • 12 million affecte
Slide 12: Benefits of Heated Humidification with OSA
Benefits of Heated Humidification with OSA Compliance can be greatly improved with heated humidification Clinical studies have found that: • Mouth leak resulted in nasal congestion and increased nasal airway resistance (Richards, Journal of Respiratory Care Medicine, 1996) • More patients abandoned
Slide 13: Fisher & Paykel's OSA Systems
Fisher & Paykel’s OSA Systems Fisher & Paykel has a broad range of CPAP products, including flow generators, humidifiers and masks Products include: HC150 Humidifier • suitable for use with most OSA flow generators • patented ambient tracking system HC221 Integrated Flow-Generator Humidifier • compa
Slide 14: Mask Systems
Mask Systems • Aclaim™ Nasal Mask – proprietary sliding attachment – auto-adjusting headpiece – bias flow diffuser à less leaks, greater comfort • Oracle™ Oral Mask – proprietary oral interface – no headgear required
Slide 15: Competitive Advantage
Competitive Advantage • Leveraging heated humidification expertise into rapidly growing market – increased penetration of heated humidification in OSA à Fisher & Paykel is the pioneer of heated humidification technologies in OSA • Benefits of integrated flow-generator humidifier • Recently-introduce
Slide 16: Neonatal Warmers and CPAP
Neonatal Warmers and CPAP • Radiant Warmers – 400,000 pre-term live births per year in US – warmers required in delivery and NICU – precise and stable temperature control • Infant CPAP System – proprietary bubble CPAP, non- invasive, oscillating pressure – lower risk alternative to ventilation
Slide 17: Research & Development
Research & Development • 20% of staff in research and development • 120 engineers, scientists, physiologists • Competitive NZ cost base • Integrated product teams • Rapid prototype development • Active clinical research program • 26 US patents, 18 pending
Slide 18: Recent Product Launches
Recent Product Launches Timing Product CY 2001 Actual Aclaim™ Mask Oracle Mask Infant CPAP System HC150 Humidifier HC221 Integrated Flow Generator Next 6-12 months MR810 Humidifier Neonatal breathing circuits à Continuously introducing new features and advancements to our existing product lines
Slide 19: Manufacturing
Manufacturing • Vertically integrated – electronics assembly – injection moulding – motor assembly • ISO 9001; Class 100,000 controlled environment • Ample capacity to grow – 240,000 ft2 facility – planned expansion of 62,000 ft2 – 100 acre site
Slide 20: Global Presence
Global Presence % of revenue* • Direct – hospitals, alternate site, home care Europe dealers 28% North – sales offices in USA/Canada, America UK/Ireland, France/Benelux, 45% Germany/Austria, Australia and NZ • Distributors – 100 distributors worldwide - 90 countries Asia/ Other Pacific • Original Eq
Slide 21: Revenue Growth
Revenue Growth CAGR: 21.6% 80 60 CAGR: 8.3% FY 1999 US $ M 40 FY 2000 CAGR: 56.2% FY 2001 FY ends 20 31 March CAGR: 32.7% 0 Respiratory OSA Warming/ TOTAL* Humidification Neonatal * excludes distributed and discontinued products
Slide 22: Operating Profit Growth
Operating Profit Growth CAGR = 27.7% $40 $34.9 $25.9 $30 $21.4 US$M $20 $10 $0 FY 1999* FY 2000 FY 2001 * excludes abnormal expenses FY ends 31 Mar
Slide 23: Operating Results
Operating Results Six months ending 30 Sep 01 Revenue US$M Margins Warming & neonatal: 100.0% Respiratory $2.4 humidification: $22.0 Distributed & other: 5.7% $2.9 6.9% 80.0% 39.7% Operating profit 52.3% 60.0% 5.0% R&D 35.2% OSA: $14.8 40.0% 27.6% SG&A 20.0% Total: $42.1 27.8% COGS 0.0%
Slide 24: Management Team
Management Team CEO Michael Daniell 1979 SVP - Research & Development Lewis Gradon 1985 SVP - Sales & Marketing Paul Shearer 1990 CFO Tony Barclay 1996
Slide 25: Board of Directors
Board of Directors Chairman Gary Paykel CEO F&P Industries Managing Michael Daniell F&P Industries / healthcare Director, CEO Prof. Director Adrienne Clarke University of Melbourne Director Dr. Nigel Evans NZ Steel, Quark Technology Director Lindsay Gillanders F&P Industries / legal Director Sir Col
Slide 26: Growth drivers
Growth drivers • Maintain high level of innovation – continue to improve existing product lines – develop complementary product offerings • Target new medical applications • Increase our international presence
Slide 27: Investment Highlights
Investment Highlights • Leading player in heated humidification devices and consumables for a variety of respiratory markets - estimated US$1 billion+ market opportunity • High level of innovation • Global presence • Competitive NZ cost base • Strong financial performance • Experienced management te
Slide 28: Fisher & Paykel Healthcare
(2) sm Fisher Paykel HEALTHCARE (2 es . i ig Fisher & Paykel HEALTHCARE vor Nei
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