Nanosonics Limited · ASX:NAN
Nanosonics — Shareholder Meeting (November 2019)
31 slides from Nanosonics's shareholder meeting presentation, Nov 18, 2019
Slide 1: 2019 Annual General Meeting
2019 Annual General Meeting 18 November 2019 1
Slide 2: Board of Directors
Board of Directors Steven Sargent Michael Kavanagh Maurie Stang Non-Executive Director, Deputy Chairman CEO and President Non-Executive Chairman and Lead Independent Director David Fisher Marie McDonald Geoff Wilson 2 Non-Executive Director Non-Executive Director Non-Executive Director
Slide 3: 2019 Annual General Meeting - Michael Kavanagh, CEO and President
2019 Annual General Meeting Michael Kavanagh CEO and President 18 November 2019 3
Slide 4: 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 5: Innovation has been the cornerstone of our success to date
“Nanosonics has continued to go from strength to strength delivering “ Innovation excellent growth in our core trophon business as well as making significant investments as has been the part of our longer term strategic cornerstone of our growth agenda” Michael Kavanagh CEO and President success to
Slide 6: Innovation
Innovation People adding value through the implementation of new ideas 6
Slide 7: Innovation Key elements
Innovation 4 Key elements Adding People Implementation New Ideas Value 7
Slide 8: Our Executive Team
1 People Our Executive Team Nanosonics has a highly experienced and dedicated team of professionals leading the development and implementation of our strategic growth agenda Left to right: McGregor Grant, David Morris, Leanne Baxendale, Steven Farrugia, Michael Kavanagh, Rod Lopez, Ronan Wright, Ken
Slide 9: We value all aspects of diversity fostering an inclusive workplace
1 People We value all aspects of diversity fostering an inclusive 300 Up 27% workplace for all to fulfil their potential. global 30 36% 30% 10 team nationalities female female senior graduate/intern represented management program members 9
Slide 10: Our Mission & Core Values
1 People Our Mission & Core Values Our Mission shape the way We improve the safety of we work and patients, clinics, their staff and the environment … defines the by transforming the way infection positive prevention practices are understood and conducted … culture of the and introducing innovative
Slide 11: Employee Engagement Survey
1 People Employee Engagement Survey identified 91% of employees are proud to tell people they work for Nanosonics 11
Slide 12: Nanosonics delivers value to many stakeholders
2 Adding Value Patients • Protecting patients from the risk of cross contamination Nanosonics Customers • Providing infection prevention solutions that are effective, delivers value safe and efficient delivering confidence in outcomes to many • Participating in the ongoing education and advancements
Slide 13: Every day 70,000 patients are protected from cross contamination
2 Adding Value Every day 70,000 patients are protected from the risk of cross contamination because their ultrasound transducer has been decontaminated using trophon 13
Slide 14: trophon2 delivers the world's leading automated HLD solution for ultrasound probes
2 Adding Value trophon®2 delivers the world’s leading automated HLD solution for ultrasound probes Advanced user experience Greater workflow efficiencies Confidence through demonstrated compliance Broadest clinical micro-efficacy spectrum 14
Slide 15: Total Revenue up 39% to $84.3m
2 84.3 Adding Total Revenue ($m) Value 67.5 60.7* 42.8 Total Revenue up Growth in revenue supporting strong 22.2 39% financial position for ongoing investment 2015 2016 2017 2018 2019 FY19 Total Revenue Capital Revenue ($m) Consumables /Service Revenue ($m) up 39% to $84.3m Capital Revenue up 51.5 C
Slide 16: Investment in our growth strategy
2 Adding Value Operating Expenses ($m) FY19 Quarterly Operating Expense ($m) 49.2 42.6 Investment in 37.0 our growth 32.1 strategy 22.8 15.7 Throughout FY19 there was 10.7 10.8 12.0 continued investment in our growth strategy, including an increase in 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4 headcount b
Slide 17: Profit Before Tax $16.8m
2 Adding Profit Before Tax ($m) Value 16.8 13.9 • Profit before tax up 201% on prior corresponding period Profit Before Tax 5.6 $ 16.8m (5.5) 0.1 2015 2016 2017 2018 2019 Cash and Cash Equivalents ($m) Cash And Cash Equivalents 69.4 72.2 • Cash and cash equivalents up $2.8 million 63.0 supporting on
Slide 18: Significant market capitalisation growth and performance
2 Growth over the past 5 years $6.79 Adding Value $5.14 $3.03 $2.43 Significant $1.70 $2.21 market $0.80 capitalisation Jul-2014 Jul-2015 Jul-2016 Jul-2017 Jul-2018 Jul-2019 growth and performance Outpacing industry indices over the last 12 months compared to 197% relevant indices 121% 107% 102% Aug
Slide 19: Committed to protecting the environment
2 Adding Value Committed to protecting the environment Hydrogen peroxide used in trophon is converted to water and oxygen by-products eliminating the need for disposal of toxic chemistry waste Head office supply of electricity and water through renewable resources Nanosonics Green Team driving inter
Slide 20: Installed Base Growth
Global 20,930 3 17,740 Global installed base up 18% 14,160 Implementation 10,130 6,250 Installed Base 2015 2016 2017 2018 2019 Growth North America 15,620 18,570 North America installed base up 19% 12,400 Global installed 8,700 base grew 18% to 20,930 5,000 2015 2016 2017 2018 2019 Europe/Middle Eas
Slide 21: Significant Installed Base Opportunity
3 Installed Base Opportunity 1 Market Penetration Cumulative Installed Base • Increasing number of international guidelines Implementation 20,930 Global 17,740 requiring high level disinfection (HLD) supporting 17% 14,160 growing international demand. 120,000 Units 6,250 10,130 • Nanosonics expandin
Slide 22: Expanding global presence
3 Norway Denmark South Korea Implementation Partnership in place with GE Healthcare Partnership in place Regulatory approval in place. with GE Healthcare Exploring distributor partnership for market entry United Kingdom Sw eden Nanosonics direct operation in place Partnership in place Japan Expandin
Slide 23: Market Expansion Europe
3 • New agreement established with Implementation GE Healthcare for distribution in Denmark, Finland, Spain and Portugal effective February 2019. This new agreement is in Market addition to existing agreements Expansion with GE Healthcare in Sweden Finland and Norway. Europe • A new distributor was
Slide 24: Market Expansion Japan
3 Implementation FY19 Key Highlights: • Japanese entity (Nanosonics Japan K.K.) established. Market • Preliminary clinical study completed: – Over 90% of probes were found to be contaminated; and Expansion – Of the contaminated probes over 50% were found to harbour potentially pathogenic bacteria in
Slide 25: Market Expansion Asia Pacific
3 Implementation Market Expansion China Asia Pacific Market assessment activities • Regional President for Asia Pacific appointed to lead underway across a expansion strategy. number of Asia • Market assessment commenced in China with visits to large hospitals, the Chinese Centre for Disease Pacific
Slide 26: Research & Development investment increasing
4 New Ideas Investment in R&D ($m) 11.4 Significant 9.5 9.9 investments are 7.3 being made in Research & 4.1 4.9 Development 3.2 with investment increasing by FY13 FY14 FY15 FY16 FY17 FY18 FY19 32% to $15 million in FY20 26
Slide 27: Our core areas of interest in the infection prevention landscape
4 New Ideas Instrument Cleaning Compliance and Traceability Mandatory critical first step which sets up the Digitally-enabled tools to increase visibility effectiveness of all downstream disinfection and control around infection risk mitigation. procedures. Our core areas of Environmental Decontamin
Slide 28: Continue to target first significant new product for international launch throughout FY21
4 New Ideas Continue to target first significant new product for international launch throughout FY21 • Targeting the commercial introduction to commence in FY21 and launch in a number of international markets throughout the first half of FY21 (subject to individual market regulatory approvals) • Ne
Slide 29: Our Strategic Priorities
Our Strategic Priorities Trophon as standard Expand geographic Product Expansion Invest to Grow of care footprint • Support establishment of • Expand operations across • Expand portfolio of infection • Maintain strong financial international guidelines Asia Pacific & EMEA with prevention solutions t
Slide 30: Business Outlook
Business Outlook Nanosonics targeting: FY20 Beyond FY20 Continued growth in installed base in North America with FY20 adoption similar to FY19 Continued growth in trophon installed base as new guidelines are released and increasing Adoption of trophon in Europe to grow from: awareness of the i
Slide 31: Thank You
Thank You nanfosonics nosonics