Accuray Incorporated · NASDAQ:ARAY
Accuray — J.P. Morgan Healthcare Conference 2015
19 slides from Accuray's conference presentation, Jan 12, 2015
Slide 1: Accuray Incorporated J.P. Morgan Healthcare Conference January 2015
Accuray Incorporated j.p. morgan healthcare conference January 2015 NASDAQ: ARAY
Slide 2: 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 3: Company Highlights
Company Highlights Large and growing radiation therapy market Products positioned in fastest growth segments Unique differentiated technology that leads the market in dosing precision Roadmap to maintain precision leadership Improving commercial execution Driving to sustained profitability Accuray I
Slide 4: Radiation Therapy is Integral to Cancer Treatment
Worldwide incidences of cancer are estimated to reach 17 million by 2017 Driven by growth of aging population 90% of all cancers are projected to be solid tumors Potentially eligible for radiation therapy 60% of cancer patients worldwide may undergo some form of radiation therapy during their course
Slide 5: Radiotherapy is a Cost-Effective Alternative
Source: Daedal Research “Global Proton Therapy Market: Trends and Opportunities (2013-2018).” Large and Growing Market Radiotherapy is a Cost-Effective Alternative $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 Radiotherapy Surgery Proton Therapy Biologic/Chemotherapy Esti
Slide 6: Products Positioned in Growth Segments
Specialty Economy Premium Value SRS/SBRT IMRT Conventional RT $1M $2M $3M $4M $5M Clinical Precision ASP CyberKnife® TomoTherapy® Products Positioned in Growth Segments - 1% 14% - 22% 29% *Source: U.S. data. The Advisory Board Company, five-year growth projection. New Patient Volume: 5-Year Growth E
Slide 7: Uniquely Differentiated Technology
Uniquely Differentiated Technology CyberKnife® TomoTherapy® Conventional LINACs Widest range of beam angles enables precise delivery of radiation to the tumors, avoiding healthy tissue. Fast, interactive planning enables efficient, high quality treatment plans for all. Limited range of beam angles c
Slide 8: Maintaining Technology Leadership: Product Roadmap
Maintaining Technology Leadership CyberKnife® Multileaf Collimator Expands Clinical Utility Interface Optimizes Workflow Faster Treatment Times Increase Throughput * TomoTherapy® Imaging Enhancements Reduces Setup and Treatment Times Integrated QA Facilitates Simplified Performance Monitoring Motion
Slide 9: Improving Commercial Execution: The Vital Few
Improving Commercial Execution The Vital Few Focus on installed base satisfaction Accelerate TomoTherapy® mainstream product positioning Broaden CyberKnife® clinical versatility around MLC Activate GPO/strategic accounts contracts portfolio Develop profitable China growth strategy 1 6 2 3 5 4 Improv
Slide 10: Accelerate TomoTherapy Mainstream Product Positioning
Improving Commercial Execution Accelerate TomoTherapy® Mainstream Product Positioning 1. Estimates based on IMV 2012/13 Radiation Therapy Market Summary Report, July 2013. 2. Internal Accuray information (Feb 2014). Improvements in Performance and Reliability Opportunities in Single and Multi Vault
Slide 11: Activate GPO/Strategic Accounts Contracts
GPO Access Contract 3,000+ hospitals and oncology centers Represents ~ 40 percent of the U.S. hospitals EXCLUSIVE three-year contract. Only contracted line of radiotherapy products and services available. Covers the CyberKnife® and TomoTherapy® Systems, upgrades and service. 2,900 hospitals VHA, UHC
Slide 12: Develop Profitable China Growth Strategy
Improving Commercial Execution Develop Profitable China Growth Strategy RT Systems Per 1000 Cancer Patients Source: Accuray internal estimates. Estimated LINAC demand at 50% treatment of newly diagnosed cases: 5,000 units Estimated RT Penetration 2.42 1.56 0.46 0 1 2 3 US Japan China RT Systems Per
Slide 13: Driving to Sustained Profitability
Driving to Sustained Profitability Committed to profitable revenue growth from expanding margins and controlled operating expenses FY2015 Guidance as presented in Q1 earnings release dated October 29, 2014 and not updated today. Final Q2FY15 Results and Guidance on FY15 to be issued on January 27, 2
Slide 14: Q2 FY15 Performance Update: Executing on the Transformation
28% TomoTherapy in single or dual vault settings 26% large university teaching hospitals outside of US/Western Europe 62% non-university affiliated hospitals 9% trade-in or trade-up Chinese NHFPC issued 6 licenses for Accuray product last month: One system order went to backlog in Q2 FY15 Two system
Slide 15: Q2 FY15 Performance Update: Executing on the Transformation
Age-outs approximately $18 million, as expected Cancellations approximately $7 million, no competitive losses Foreign currency impact approximately $6 million Net decrease in backlog approximately $6 million or 1.7% Q2 FY15 Performance Update Executing on the Transformation Net orders expected to be
Slide 16: Company Highlights
Company Highlights Large and growing radiation therapy market Products positioned in fastest growth segments Unique differentiated technology that leads the market in dosing precision Roadmap to maintain precision leadership Improving commercial execution Driving to sustained profitability Accuray I
Slide 17: Accuray: Precise, innovative tumor treatments
w ACCURAY Precise, innovative tumor treatments”
Slide 18: Appendix
ACCURAY Appendix
Slide 19: aEBITDA Reconciliation: Non-GAAP
aEBITDA Reconciliation: Non-GAAP This presentations contains non-GAAP financial information. Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the company and facilitates a more meaningful compar