Fisher & Paykel Healthcare Corporation Limited · NZX:FPH
Fisher & Paykel Healthcare — FY2024 Earnings Presentation
50 slides from Fisher & Paykel Healthcare's earnings presentation, May 29, 2024
Slide 1: Full Year Results Presentation FY2024
Full Year Results Presentation FY2024 Fisher & Paykel For the year ended 31 March 2024 HEALTHCARE
Slide 2: Disclaimer
Disclaimer The information in this presentation is for general purposes only and should be read in conjunction with Fisher & Paykel Healthcare Corporation Limited’s (FPH) Annual Report 2024 and accompanying market releases. Nothing in this presentation should be construed as an invitation for subscr
Slide 3: Business highlights
Business highlights IMPACTED the lives of approximately 20 million patients around the world. UNVEILED revolutionary new F&P Solo™ mask in New Zealand and Australia. | . INTRODUCED the Airvo™ 3 into more of our key markets, including the US. OBTAINED regulatory clearance in the US for the 950™. LAUN
Slide 4: Adjustments for abnormal items
Adjustments for abnormal items Reported Underlying Underlying Underlying FY24 (12 months to 31 March 2024) Growth CC* Product recall Revaluation of Deferred tax** (NZ$M) (NZ$M) growth PCP^ growth CC* (NZ$M) land (NZ$M) (NZ$M) Operating revenue 1,742.8 8% - - - 1,742.8 10% 8% Hospital operating re
Slide 5: FY24 Hospital revenue composition
HARDWARE FY24 HOSPITAL REVENUE COMPOSITION 10% CONSUMABLES Invasive Noninvasive OptiflowTM OptiflowTM Surgical ventilation ventilation nasal high flow anesthesia 90% Hardware Consumables
Slide 6: New applications
• • • *New applications = Noninvasive ventilation (NIV), nasal high flow, surgical
Slide 7: FY24 Homecare revenue composition
FY24 HOMECARE REVENUE COMPOSITION HARDWARE 12% CONSUMABLES CPAP Therapy/OSA Home Respiratory Support 88% Hardware Consumables
Slide 8: Homecare product group
Homecare product group 8 Fisher & Paykel HEALTHCARE
Slide 9: Land holdings: historical cost and fair value
• • • Historical cost Fair value FY24 NZ$M FY24 NZ$M East Tāmaki (42 ha) 86.4 263.9 Karaka* (79 ha) 220.1 122.0 Total New Zealand 306.5 385.9 Mexico (15 ha) 27.4 37.7 Total land 333.9 423.6 *Approximately 79 hectares has been acquired to date. The balance of land (approximately 25 hectares) will be
Slide 10: Gross margin
GROSS MARGIN 70% • 60% 50% • 40% 30% • 20% 10% 0% FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24* Long-term gross margin target *Underlying gross margin excludes the product recall provision
Slide 11: Operating (EBIT) margin
OPERATING (EBIT) MARGIN 40% • 35% • 30% 25% • 20% 15% 10% • 5% • 0% FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24* • Long-term operating margin target *Underlying operating margin excludes the product recall provision
Slide 12: Cash flow and balance sheet
FY23 NZ$M FY24 NZ$M Operating cash flow 238.2 429.6 Capital expenditure (including purchases of intangible assets) (211.3) (339.0) Lease liability payments (14.4) (16.8) Free cash flow 12.5 73.8 FY23 NZ$M FY24 NZ$M Net cash / (debt) (including short-term investments) 37.7 (32.2) Total assets 2,204.5
Slide 13: Dividend history
Dividend 13 Increased final dividend by 2% compared with FY23 - 23.5 cps + 9.14 cps imputation credit for NZ residents (gross dividend of NZ 32.64 cps) - Fully imputed - 4.15 cps non-resident supplementary dividend Total dividend for the year increased by 2% to 41.5 cps The company’s dividend reinve
Slide 14: Constant currency reconciliation
FY23 FY24 Change Reconciliation of Constant Currency to Reported Revenue NZ$M NZ$M NZ$M Revenue (constant currency) 1,523.7 1,651.6 127.9 Spot exchange rate effect 53.9 99.4 45.5 Foreign exchange hedging result (7.5) (15.3) (7.8) Balance sheet revaluation 11.0 7.1 (3.9) Total impact of foreign excha
Slide 15: Outlook
• • • • • *At 1 May 2024 exchange rates of NZD:USD 0.59, NZD:EUR 0.56, NZD:MXN 10.14.
Slide 16: Key Financials
r , d Sa Key Financials
Slide 17: Second half financial results
% of Revenue NZ$M PCP^ CC** Operating revenue 100% 939.1 5% 3% Hospital operating revenue 64% 600.4 3% 0% Homecare operating revenue 36% 337.9 11% 8% Hospital new applications consumables revenue 12% 9% OSA masks revenue 14% 10% Underlying gross profit* 62% 578.3 260bps 244bps SG&A 27% 256.2 12% 1
Slide 18: Hedging position for main exposures
• Year to 31 March Hedging position for our main exposures FY30- FY25 FY26 FY27 FY28 FY29 FY35* USD % cover of estimated exposure 80% 75% 60% 45% 20% 0% USD average rate of cover 0.621 0.607 0.597 0.584 0.564 0.523 EUR % cover of estimated exposure 90% 75% 60% 40% 40% 5% EUR average rate of cover 0.
Slide 19: Revenue, cost of sales and operating expenses by currency
FY24 (for the year ended 31 March 2024) REVENUE BY CURRENCY COST OF SALES BY CURRENCY OPERATING EXPENSES BY CURRENCY 1% 5% 18% 15% 30% 37% <1% 3% 10% 48% 49% 1% 19% 24% 40% NZD USD EUR MXN Other NZD USD EUR MXN Other NZD USD EUR MXN Other
Slide 20: Overview
cr Overview ykel HEALTHCARE Fisher & 20
Slide 21: Company at a glance
• • • • • • • • • • Note: people numbers are represented as full-time equivalents
Slide 22: Applications outside of invasive ventilation
Invasive Noninvasive Hospital Home Respiratory Obstructive Sleep Respiratory Support Anesthesia Support Apnea Ventilation Ventilation Infant Care Surgical Applications outside of invasive ventilation
Slide 23: Long-term growth aspirations
The image above is an illustration of the company’s long-term growth aspirations. It is not a graph and should not be interpreted as being indicative of levels of revenue or profitability in the short term.
Slide 24: Consistent growth strategy
Consistent growth strategy OUR INPUTS OUR OUTPUTS 50+ years of trusted relation Excellence Trusted brand 24 SUSTAINABLE, PROFITABLE GROWTH We aim to grow our business in a way that is sustainable and profitable over the long term. CHANGE CLINICAL PRACTICE ‘OUR PURPOSE Improving care and BETTER PRODU
Slide 25: F&P product fundamentals
F&P product fundamentals What are we here to do? A drive to not only improve, but transform, clinical practice. Provide products with protected value differentiation. Get our products, including the evidence, knowledge and supporting tools, into the hands of the customer A deep understanding of the
Slide 26: Innovative new product releases
Innovative new product releases HOSPITAL HOMECARE oy The F&P 950™ System launched into the US in H1 FY25. F&P Solo™ mask launched into NZ, Australia, Canada and certain European countries in H2 FY 24, followed by the US in H1 FY25. F&P Airvo 3™ nasal high flow device launched into the US in H2 FY24
Slide 27: Key facts
• • − − − − − • * For year ended 31 March 2024 † As at 31 March 2024
Slide 28: US patent portfolio 2008–2024
FISHER & PAYKEL HEALTHCARE US PATENT PORTFOLIO (2008 – 2024) 700 600 500 400 300 200 100 0 2008 2010 2012 2014 2016 2018 2020 2022 2024 US Patents US Patent Applications * As at 31 March 2024
Slide 29: Products in action
• • • Insert image of products in action and or Sales talking with clinician • • •
Slide 30: Revenue by region
• Revenue by Region 12 months to 31 March 2024 − − 6% 21% 46% − − • − 27% • − North America Asia Pacific Europe Other •
Slide 31: Manufacturing and operations
Manufacturing and operations New Zealand * Four buildings: 110,000 m2 / 1,180,000 ft? * Co-location of R&D and manufacturing * Continued development of East Tamaki campus * Received Overseas Investment Office approval in April 2023 for the purchase of land in Karaka for our second New Zealand campus
Slide 32: Hospital
32 Fisher & Paykel HEALTHCARE
Slide 33: Invasive ventilation
Invasive ventilation @ Invasive ventilation refers to respiratory support delivered directly to a patient’s lower airways via an endotracheal (ET) or tracheostomy tube. ° Normal airway : A. Ventilator E, Expiratory Limb humidification is bypassed ace | oe or compromised during ventilation ¢« Mucocil
Slide 34: Constant currency revenue growth in new applications consumables
Noninvasive OptiflowTM OptiflowTM Surgical ventilation nasal high flow anesthesia CONSTANT CURRENCY REVENUE GROWTH RATE IN NEW APPLICATIONS CONSUMABLES* 60% 50% 40% 30% 20% 10% 0% -10% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 * Adjusted to exclude impact of US distributi
Slide 35: Noninvasive ventilation
Noninvasive ventilation © Noninvasive ventilation involves the delivery of oxygen (ventilation support) via a face mask and without the need for endotracheal intubation. Why would somebody require noninvasive ventilation: e Acute and chronic respiratory failure, chronic obstructive pulmonary disease
Slide 36: Our NIV masks and their unique features
Our NIV masks and their unique features ) RollFit™ auto- Patented TubeFit™ Bridge-free™ NIV adjusting seal technology *° Fisher&Paykel HEALTHCARE
Slide 37: Optiflow nasal high flow therapy
Optiflow nasal high flow therapy ® Optiflow nasal high flow therapy provides respiratory support to patients by delivering heated, humidified air and oxygen at flow rates up to 70 L/min via an Optiflow nasal cannula and a system such as the Airvo 2, Airvo 3, F&P 850 or 950. Patient groups who may be
Slide 38: Conventional oxygen therapy to non-invasive ventilation
CONVENTIONAL NON-INVASIVE OXYGEN THERAPY VENTILATION
Slide 39: Clinical practice guidelines
Primary support ESICM, ERS, SSC, AARC, MEDICAL ACP, TSANZ, WHO Primary support ESICM, ERS POST-OPERATIVE Pre-escalation support/ Peri- ESICM intubation Post-extubation/ ESICM, ERS, AARC, ACP De-escalation support Complementary support ERS (NIV-rested/proning) Prophylactic support AARC (Require oxyge
Slide 40: Nasal high flow clinical papers published annually
NASAL HIGH FLOW CLINICAL PAPERS PUBLISHED ANNUALLY 900 800 • 700 600 500 400 300 200 100 0 Annual total of studies (calendar year) Source: PubMed. Includes adult and paediatric/neonatal studies.
Slide 41: Optiflow in Anesthesia
Optiflow in Anesthesia The F&P Optiflow THRIVE™ system enables users to deliver THRIVE™ transnasal humidified rapid-insufflation ventilatory exchange and nasal high flow (NHF) therapy, which has been shown to optimize oxygenation during general anesthesia and procedural sedation. ce a In Procedural
Slide 42: Surgical humidification
Surgical humidification @ Surgical humidification is the delivery of warm, humidified CO, in laparoscopic and open surgery. * Current standard of care is dry CO, gas to the surgical site * Causes evaporation and cooling * Surgical humidification reduces the incidence of peri-operative hypothermia®?
Slide 43: Homecare
r Homecare s Fisher & Paykel HEALTHCARE
Slide 44: Obstructive sleep apnea
Obstructive sleep apnea es) Obstructive sleep apnea (OSA) is characterized by episodes of a complete (apnea) or partial collapse (hypopnea) of the upper airway with an associated decrease in oxygen saturation or arousal from sleep. * OSA is an underdiagnosed medical condition, with multiple negative
Slide 45: Mask matters most
Mask matters most @ *« Masks are key to compliance « Unique, patented designs * Released our new F&P Solo™ mask into New Zealand and Australia during the financial year. Nova Micro™ launched in New Zealand in early FY25. Evora Nasal Evora Full Solo Nova Micro 45 Fisher & Paykel HEALTHCARE
Slide 46: Home respiratory support
Home respiratory support es) The F&P myAirvo™ system delivers humidified high flow therapy to chronic respiratory patients at home and in long-term care facilities. ¢ Chronic obstructive pulmonary disease (COPD) is a lung disease which is commonly associated with smoking ¢ Chronic respiratory diseas
Slide 47: Operating Sustainably
r Operating Sustainably 47
Slide 48: Emissions, water and waste data
• • • Scope 1 emissions (tonnes CO2e) 1,777 2,287 2,123 Scope 2 emissions (tonnes CO2e) – location-based 13,894 14,529 14,293 Scope 2 emissions (tonnes CO2e) – market-based 10,344 11,105 12,253 Scope 1 & 2 emissions subtotal (tonnes CO2e) – using location-based Scope 2 15,671 16,816 16,416 Scope 1 &
Slide 49: Shareholding structure and geographical ownership
• Shareholding structure as at Geographical ownership as at 31 March 2024 31 March 2024 <1% 3% 4% 4% 18% 18% 9% 37% 14% 61% 31% New Zealand Australia North America UK NZ Institutions Other Institutions Europe (ex UK) Asia Brokers & Retail Other Rest of World
Slide 50: References
1. Rochwerg, Bram et al. “The role for high flow nasal cannula as a respiratory support strategy in adults: a clinical practice guideline.” Intensive care medicine vol. 46,12 (2020): 2226-2237. doi:10.1007/s00134-020-06312-y 2. Oczkowski, Simon, et al. “ERS Clinical Practice Guidelines: High-flow Na
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