Nanosonics Limited · ASX:NAN
Nanosonics — Shareholder Meeting (November 2022)
41 slides from Nanosonics's shareholder meeting presentation, Nov 18, 2022
Slide 1: Infection Prevention. For Life. 2022 Annual General Meeting
Infection Prevention. For Life. 2022 ANNUAL GENERAL MEETING Nanosonics Limited | Annual General Meeting 2022 1
Slide 2: Board of Directors
BOARD OF DIRECTORS Steve Sargent Maurie Stang Michael Kavanagh Lisa McIntyre Non-Executive Chairman Non-Executive Director and Deputy CEO and President Non-Executive Director Chairman David Fisher Marie McDonald Geoff Wilson Non-Executive Director Non-Executive Director Non-Executive Director Nanoso
Slide 3: How to ask a question
How to ask a question • To ask a written question select the Q & A icon • Select the topic your question relates to from the drop-down list • Type your question in the text box and press the send button • To ask a verbal question follow the instructions below the broadcast window. Nanosonics Limited
Slide 4: How to vote
How to vote • When the poll is open, select the vote icon at the top of the screen Items of Business • To vote, select either For, Against or Abstain 2A Re-elect Mr Sam Sample as a Director FOR AGAINST ABSTAIN • You will see a vote confirmation 2B Re-elect Ms Jane Citizen as a Director • To change o
Slide 5: Chairman's Address
Infection Prevention. For Life. 2022 ANNUAL GENERAL MEETING CHAIRMAN’S ADDRESS Steve Sargent, Chairman Nanosonics Limited | Annual General Meeting 2022 5
Slide 6: Thank you Maurie
THANK YOU MAURIE “As founder and past Chairman, Maurie has made an enormous contribution to Nanosonics over the last two decades including listing Nanosonics on the stock exchange and guiding its growth into a successful international business. I am pleased that we will have ongoing access to his de
Slide 7: Board of Directors
BOARD OF DIRECTORS Steve Sargent Maurie Stang Michael Kavanagh Lisa McIntyre Non-Executive Chairman Non-Executive Director and Deputy CEO and President Non-Executive Director Chairman David Fisher Marie McDonald Geoff Wilson Non-Executive Director Non-Executive Director Non-Executive Director Nanoso
Slide 8: End-to-End Customer Experience: North America Direct Sales Model
NORTH AMERICA – DIRECT SALES MODEL Nanosonics has successfully transitioned to a largely direct sales model, delivering capability and capacity to take advantage of significant remaining growth opportunity, as well as new product introductions. T R AN SIT IO N C O MPLET E W IT H K E Y C APABI L I T
Slide 9: Our people, our advantage
Our people, our advantage D IV ER SIT Y & IN C LUSION We value all aspects of Our organisational growth has been diversity fostering an focused on growing and supporting our inclusive workplace customer base, and on Nanosonics’ for all to fulfil their innovation agenda to drive future growth. potent
Slide 10: Continued Commitment to Sustainability
CONTINUED COMMITMENT TO SUSTAINABILITY SU ST AI N ABI L I T Y H I G H LI G HT S 1 ~98k Patients protected daily from the risk of cross-contamination Progressed sustainable Supply Chain initiatives Establishment of the Community Engagement Committee Strengthened IT, privacy & cybersecurity protection
Slide 11: Investing for Growth
INVESTING FOR GROWTH Nanosonics has Investing in a significant established Infection Prevention market opportunity significant MARKET DEVELOPMENT capabilities and Sustaining Mature Market Growth continues to focus its operating costs Geographic Expansion To New Markets and investments on the future
Slide 12: Thank You
THANK YOU Nanosonics Limited | Annual General Meeting 2022 12
Slide 13: CEO & President's Address
Infection Prevention. For Life. 2022 ANNUAL GENERAL MEETING CEO & PRESIDENT’S ADDRESS Michael Kavanagh, CEO and President Nanosonics Limited | Annual General Meeting 2022 13
Slide 14: FY22 – Key Highlights
FY22 – KEY HIGHLIGHTS “Total revenue for the year grew 17% to $120.3 million resulting from continued growth in new installed base, upgrades and consumables/service. I N ST AL LE D B ASE T O T AL R E V E N UE C API T AL R E V E N UE C O NSUMABLE S/ SE R V I C E R E V E N UE This was a very pleasing
Slide 15: FY23 – Trading Update
FY23 – TRADING UPDATE “The first four months of FY23 has seen the business In the first four months to 31 October 2022… perform well across all regions against Total revenue of $52.6 million, up 42% compared with the prior our FY23 objectives. corresponding period (36% in constant currency1). Market
Slide 16: Significant Global Market Opportunity
SIGNIFICANT GLOBAL MARKET OPPORTUNITY Market Penetration GLOBAL Installed base opportunity • Significant global growth opportunity. 140,000 1 • Increasing number of international guidelines requiring high level 21% disinfection (HLD) supporting growing international demand. UNITS • Nanosonics expand
Slide 17: trophon Value Opportunity
TROPHON VALUE OPPORTUNITY In addition to managing a growing installed base, we strive to deliver continuous value over the lifetime of trophon by driving improved compliance with HLD standards. Initial installation Upgrade YEAR 8 14 trophon2 + Printer CAPITAL + Cart + Mount + ... ECOSYSTEM (CONSUM
Slide 18: Attractive Annuity-Based Business Model
ATTRACTIVE ANNUITY-BASED BUSINESS MODEL In markets with strong fundamentals of adoption, the trophon business can generate significant operating profit associated with the attractive high-margin business model. NORTH AMERICA FY22 KEY PERFORMANCE METRICS Revenue $106.9m INSTALLED BASE OPPORTUNITY INS
Slide 19: Operating Costs
OPERATING COSTS Nanosonics has Investing in a significant established Infection Prevention market opportunity significant MARKET DEVELOPMENT capabilities and SUSTAINING MATURE MARKET GROWTH • Maintain 2,800-3,000+ new installed base unit momentum continues to focus • Convert significant installed ba
Slide 20: Investment in R&D
INVESTMENT IN R&D Global, $m $22.3 During the year, Nanosonics continued to invest in its 17.2 30% vs. FY21 product expansion strategy. 15.6 11.4 11.6 8 % H2 vs. H1 R&D investment increased to $22.3m 9.9 9.6 8.8 5.9 5.2 10.7 6.8 7.6 4.6 5.5 FY18 FY19 FY20 FY21 FY22 directed across multiple H1 H2
Slide 21: Platforms for Growth
PLATFORMS FOR GROWTH Our technology platforms offer significant growth potential within current and potential future indications. Market Introduction In-market Launched CY2023 Growth focus Adoption focus Development focus Coris® 23 patent families 1 patent family 9 patent families CURRENT Ultrasound
Slide 22: CORIS
Nanosonics aims to address the challenges CORIS of manual cleaning of endoscope channels ® through a novel automated technology that revolutionises the cleaning process, thereby reducing the risk of Transforming the cleaning ineffective endoscope reprocessing and of flexible endoscopes resulting pat
Slide 23: Significant Global Opportunity: Procedure Volume
SIGNIFICANT GLOBAL OPPORTUNITY An established and growing market >60m procedures growing at 6% annually # MAJOR GROWTH DRIVERS Aging population Increasing incidence of colorectal cancer Various national-level screening programs Expensive and ineffective ANNUAL current standard of care Procedure Grow
Slide 24: A Recognised Risk
A RECOGNISED RISK Reusable endoscopes have been associated with infections and reprocessing failures across all endoscope types. THERE ARE MANY WELL-DOCUMENTED INSTANCES OF… FDA MAUDE database1 Increase in adverse event reports relating to IN F E CT ION O U TBR EAK S… endoscope reprocessing, 2014 to
Slide 25: Endoscope reprocessing is an established global practice
Endoscope L AR G E V AR I E T Y O F E N D OSCOPE S F O R C O MPLE X C L I NI C AL PR O CE DUR E S… reprocessing is an established Colonoscopy Gastroscopy Duodenoscopy Enteroscopy Endoscopic Ultrasound Bronchoscopy Urology E.N.T. Gynaecology global practice … W I T H ST R O N G F U NDAME N TALS AN D
Slide 26: Superior Biofilm Removal
SUPERIOR BIOFILM REMOVAL CORIS® technology delivers far superior efficacy over manual cleaning in removing biofilm from small channels that cannot be brushed today. HEAD-TO-HEAD CLEANING TEST ON A SIMULATED NARROW CHANNEL SIMULATE NARROW CHANNEL 1 Auxiliary channel conditions: 1.5 mm diameter, 3.6 m
Slide 27: CORIS is being designed as a global solution
“CORIS® is being VARYING REGULATORY REQUIREMENTS designed as a global United States Acceptance into the FDA Safer De novo Regulatory solution ultimately to be Food and Drug Technologies Program (STeP) Pathway used across all Administration Products accepted into this program are reasonably expected
Slide 28: Thank You
THANK YOU Nanosonics Limited | Annual General Meeting 2022 28
Slide 29: Formal Business
Infection Prevention. For Life. 2022 ANNUAL GENERAL MEETING FORMAL BUSINESS Nanosonics Limited | Annual General Meeting 2022 29
Slide 30: Re-election of a director – Ms Marie McDonald
RESOLUTION 1 Re-election of a director – Ms Marie McDonald Proxy votes received Number % Resolution: That Ms Marie For : 182,068,799 98.87 McDonald, who retires as a Director pursuant to the Against : 1,719,294 0.93 Company’s Constitution and, being Discretion : 369,292 0.20 eligible, offers herself
Slide 31: Remuneration Report
RESOLUTION 2 Remuneration Report Resolution: That the Remuneration Report for the Proxy votes received Number % financial year ended 30 June 2022 be adopted. For : 167,807,350 96.38 Against : 5,921,500 3.40 Discretion : 387,656 0.22 Abstained/Excluded : 10,173,310 - Nanosonics Limited | Annual Gener
Slide 32: Issue of 21,871 Service Rights to the CEO under 2022 STI
RESOLUTION 3 Issue of 21,871 Service Rights to the Chief Executive Officer and President, Mr. Michael Kavanagh, under the 2022 Short Term Incentive (2022 STI) Resolution: That approval be given for all purposes under Proxy votes received Number % the Corporations Act 2001 (Cth) and the ASX Listing R
Slide 33: Issue of Share Appreciation Rights and Performance Rights to the CEO under 2022 LTI
RESOLUTION 4 Issue of 283,930 Share Appreciation Rights and 231,914 Performance Rights to the Chief Executive Officer and President, Mr. Michael Kavanagh, under the 2022 Long-Term Incentive (2022 LTI) Resolution: That approval be given for all purposes under Proxy votes received Number % the Corpora
Slide 34: Issue of securities under the Nanosonics Omnibus Equity Plan
RESOLUTION 5 Issue of securities under the Nanosonics Omnibus Equity Plan Resolution: That, for the purposes of ASX Listing Rule 7.2, Proxy votes received Number % Exception 13, and for all other purposes, approval be given For : 159,254,271 87.06 for the issue of securities under the Omnibus Equity
Slide 35: Issue of securities under the Nanosonics Global Employee Share Plan
RESOLUTION 6 Issue of securities under the Nanosonics Global Employee Share Plan Resolution: That, for the purposes of ASX Listing Rule 7.2, Proxy votes received Number % Exception 13 and for all other purposes, approval be given For : 159,580,101 87.22 for the issue of securities under the Global E
Slide 36: Increase in maximum aggregate Non-Executive Directors' Remuneration
RESOLUTION 7 Increase in maximum aggregate Non-Executive Directors’ Remuneration Resolution: That for the purposes of Clause 22.1 of the Proxy votes received Number % Company’s Constitution and ASX Listing Rule 10.17, the For : 174,126,975 99.34 maximum aggregate remuneration payable to Non- Executi
Slide 37: How to ask a question
How to ask a question • To ask a written question select the Q & A icon • Select the topic your question relates to from the drop-down list • Type your question in the text box and press the send button • To ask a verbal question follow the instructions below the broadcast window. Nanosonics Limited
Slide 38: How to vote
How to vote • When the poll is open, select the vote icon at the top of the screen Items of Business • To vote, select either For, Against or Abstain 2A Re-elect Mr Sam Sample as a Director FOR AGAINST ABSTAIN • You will see a vote confirmation 2B Re-elect Ms Jane Citizen as a Director • To change o
Slide 39: How to ask a question
How to ask a question • To ask a written question select the Q & A icon • Select the topic your question relates to from the drop-down list • Type your question in the text box and press the send button • To ask a verbal question follow the instructions below the broadcast window. Nanosonics Limited
Slide 40: Disclaimer
DISCLAIMER This presentation is intended to provide a general outline only and is not intended to be a definitive statement on the subject matter covered in it. The information in this presentation, whether written or verbal, has been prepared without taking into account the commercial, financial or
Slide 41: Nanosonics Limited
Nanosonics Limited Building A, Level 1, 11 Talavera Road Macquarie Park NSW 2113 Australia T +61 2 8063 1600 E info@nanosonics.com.au www.nanosonics.com.au ABN 11 095 076 896 Nanosonics Limited | Annual General Meeting 2022 41