Slide 1: Compumedics Limited Corporate Presentation – March 2014
For personal use only Compumedics Limited Corporate Presenta2on – March 2014
Slide 2: Who is Compumedics?
Who is Compumedics? For personal use only • Compumedics is a leading global, innovative developer and manufacturer of medical devices for: – Diagnosing sleep disorders – Monitoring neurological disorders including long-term epilepsy monitoring (LTEM) – Highly sophisticated brain research – Ultrasoni
Slide 3: Board and Key Management
Board and Key Management For personal use only David Burton, Ph.D. Execu5ve Chairman, CEO Founder, Tenure 26yrs NED Mr. David Lawson Mr. Alan Anderson Execu2ve Director, Chief Financial Officer & Leading USA AHorney Company Secretary CMP Tenure : 14 yrs CMP Tenure 15 yrs Kerry Hubick, Ph.D. Mr. Christ
Slide 4: A Tradition of Innovation
A Tradi:on of Innova:on For personal use only Comperio DQ Summit IP SynAmps2 2004 2005 Somté 2003 2001 Siesta 802 Siesta 2000 2005 P Series 1994 S Series 1987 Somté PSG 2006 Neuvo LTM SynAmpsRT 2007 2008 CURRY6 2009 Somnilink SPAP Grael HD 2010 2010 Somté PSG 2.0 2011
Slide 5: Established Client Profile
Established Client Profile For personal use only
Slide 6: Strategic Value Roadmap – Market Opportunities
Strategic Value Roadmap – Market Opportuni:es For personal use only Core Diagnos5c Business 15 Medical Innova5ons Global Global Markets -‐ $m 25 150 Markets -‐ $m 450 10,000 8,000 Sleep Diagnos2cs Neurological Monitoring Brain Research 15,000 TCD Sleep Treatment Driver Vigilance eHealth
Slide 7: What was achieved in the six months to December 2013?
What was achieved in the six months to 31 December 2013? For personal use only § NPAT of $0.4 million compared to loss of $(0.8) million for the PCP. EBITDA was a $1.3 million profit compared to $0.2 million in the PCP, as a result of ongoing efficiency gains in manufacturing, and the favourable impac
Slide 8: What was achieved in the six months to December 2013?
What was achieved in the six months to 31 December 2013? For personal use only § The Company had sales orders of $7.3 million on-‐hand at 31 December 2013, which it expects to substan2vely reduce in the early months of the 2014 calendar year § The Company has substan2vely completed reloca2ng some
Slide 9: H1 Revenue Composition at ≈$14.5m
H1 Revenue Composi:on at ≈$14.5m For personal use only By geographic region By product/market Tech. Supply Service, Europe, USA, Items, 9% Sleep, 31% 31% 26% 12% Neuro, Asia, Aust, 16% 16% Brain Brain 22% Res, Blood Flow, 19% 18% Compumedics sells directly to end-‐user customers in Australia, USA a
Slide 10: Historical First Half Revenues
Historical First Half Revenues For personal use only Shipped and invoiced 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2011 2012 2013 H2 H1 Rev F'Cast Rev
Slide 11: Historical First-Half Earnings
Historical First-‐Half Earnings For personal use only NPAT EBITDA 1 1.6 0.8 1.4 0.6 1.2 0.4 1 0.2 0.8 0 -‐0.2 2011 2012 2013 H2 0.6 -‐0.4 0.4 -‐0.6 0.2 -‐0.8 0 -‐1 2011 2012 2013 H2 NPAT F'Cast NPAT EBITDA F'Cast EBITDA
Slide 12: Profitability Improvement
Profitability Improvement For personal use only FY2013 EBITDA to forecast FY2014 EBITDA with improvement steps iden5fied 3.0 2.5 2.0 AUDm 1.5 1.0 0.5 -‐ -‐0.5
Slide 13: Cash, debt & operating cash
Cash, debt & opera:ng cash For personal use only 3 2.5 2 1.5 1 0.5 0 2011 2012 2013 Opera2ng cash Cash Debt
Slide 14: Employee Composition at ≈130 staff
Employee Composi:on at ≈130 staff For personal use only By geographic region By func5on Mid Quality, Asia, East, Admin 2% Sales & 2% 1% & Fin, Mark, Europe, USA, 24% 32% 12% 24% Manuf, Service, Aust, R&D, 28% 12% 41% 22% Compumedics has its Head Office in Melbourne, Australia with addi2onal offices in Ch
Slide 15: Ownership composition – Feb 2014
Ownership composi:on – Feb 2014 For personal use only Remaining shareholders, 18% Other top 20 shareholders, D&DJ Burton 20% Holdings, 62% There are currently 168m ordinary shares on issue to approximately 1,000 shareholders. There are no op2ons or other equity instruments on issue.
Slide 16: Strategic Value Roadmap – Core Diagnostic Business Opportunities
Strategic Value Roadmap – Core Diagnos:c Business Opportuni:es For personal use only Core Diagnos5c Business Global Markets -‐ $m 25 15 150 450 Medical Innova5ons Global Markets -‐ $m 10,000 8,000 Sleep Diagnos2cs Neurological Monitoring Brain Research TCD 15,000 Sleep Treatment Driver Vigilance e
Slide 17: Growth strategies – Core business
Growth strategies – Core business For personal use only • Building growth momentum in key global neurological monitoring markets with emphasis on LTEM through the Company’s innova2ve product planorm and growing brand recogni2on in these new markets for the Company. • Expansion across all product lin
Slide 18: Growth Strategies - Execution so far
Growth Strategies -‐ Execu:on so far Compumedics Clients in China For personal use only
Slide 19: Earnings improvement activities
Earnings improvement ac:vi:es For personal use only • Reloca2on of selected manufacturing ac2vi2es to lower cost regions in China and Taiwan. • Con2nue to drive component purchasing to lower cost regions in China and Taiwan. • Streamlining of logis2cs (final product assembly, tes2ng and shipment) as
Slide 20: Strategic Value Roadmap – Medical Innovations Commercial Opportunities
Strategic Value Roadmap – Medical Innova:ons Commercial Opportuni:es For personal use only 15 Core Diagnos5c Business 25 Global Markets -‐ $m Medical Innova5ons Global 150 Markets -‐ $m 450 10,000 8,000 Sleep Diagnos2cs Neurological Monitoring Brain Research 15,000 TCD Sleep Treatment Driver Vigil
Slide 21: Medical Innovations – Sleep Treatment
Medical Innova:ons – Sleep Treatment For personal use only • The sleep treatment technology is the most advanced of these Medical Innova2on technologies. • The SomniLink® SPAP® device has been developed in collabora2on with Medigas Italia S.r.l., Compumedics Italian distributor and also a significant
Slide 22: Medical Innovations – Sleep Treatment
Medical Innova:ons – Sleep Treatment For personal use only • About 20% of the adult popula2on globally suffer from some sleep disorder. • The global Apnoea devices market is es2mated at about USD8bn with expecta2ons it could reach close to $20bn by 2017. • Up to 100m people globally suffer from Sleep
Slide 23: Medical Innovations – Driver Vigilance Assist
Medical Innova:ons – Driver Vigilance Assist For personal use only • Compumedics has unique sleep monitoring technology which has been used to research and develop proto-‐type systems for monitoring driver drowsiness • Fa2gue is one of the top three reasons for all road fatali2es • Car manufacturer
Slide 24: Medical Innovations – Driver Vigilance Assist
Medical Innova:ons – Driver Vigilance Assist For personal use only • Market for this technology is very large – conserva2vely es2mated at $30m for the Australian market and up to USD15bn for the global market, based on annual vehicle produc2on of some 60m vehicles a year. • Compumedics owns patents
Slide 25: Medical Innovations – eHealth
Medical Innova:ons – eHealth For personal use only • eHealth home and hospital applica5ons for exis5ng Compumedics technologies – driven by government and insurers needs to reduce the delivery costs of health services to ageing popula2ons. • Large markets – US market for exis2ng eHealth applica2ons
Slide 26: Strategic Growth Execution Capitalization Pathways
Strategic Growth Execu:on Capitaliza)on Pathways For personal use only The three principal paths available to Compumedics in order to implement the strategic growth drivers are: § “Do it ourselves” – recapitalize the group and implement the action plans for the strategic growth drivers ourselves (w
Slide 27: Comparative valuations
Compara5ve valua5ons For personal use only Annualised Revenes and Market Cap rela5ve to Annualised Revenues 35.0 20.00 18.00 30.0 16.00 25.0 Market Cap to Revenues 14.00 Revenues -‐ $m 12.00 20.0 10.00 15.0 8.00 10.0 6.00 4.00 5.0 2.00 -‐ 0.00 CMP MVP UCM IPD UBI GLH MBE Revenues 29.0 9.0 0.8 3.2
Slide 28: Demerged financial data – Diagnostic medical devices business
Strategic Growth Execu2on strategies -‐ Demerged financial data For personal use only Diagnos2c medical devices business (Sleep and Neurology) FY2011 FY2012 FY2013 FY2014 Actual Actual Actual Forecast Revenues -‐ $m $17.3 $15.8 $15.8 $18.6 EBITDA -‐ $m $2.1 $(0.3) $(0.3) $2.5 NPAT -‐ $m $1.8m $(0
Slide 29: Demerged financial data – Brain Research (Neuroscan) business
Strategic Growth Execu2on strategies -‐ Demerged financial data For personal use only Brain Research (Neuroscan) business FY2011 FY2012 FY2013 FY2014 Actual Actual Actual Forecast Revenues -‐ $m $6.2 $5.3 $6.1 $7.5 EBITDA -‐ $m $1.2 $0.5 $0.9m $3.1 NPAT -‐ $m $1.2 $0.5 $0.9m $3.1 Est. demerger co
Slide 30: Demerged financial data – Ultrasonic brain blood flow monitoring (DWL)
Strategic Growth Execu2on strategies -‐ Demerged financial data For personal use only Ultrasonic brain blood flow monitoring business (DWL) FY2011 FY2012 FY2013 FY2014 Actual Actual Actual Forecast Revenues -‐ $m $6.0 $6.2 $5.5 $6.5 EBITDA -‐ $m $0.2 $0.3 $0.4m $0.9 NPAT -‐ $m $0.1 $0.2 $0.3 $0.8
Slide 31: Demerged financial data – On-going Medical Innovation Investment
Strategic Growth Execu2on strategies -‐ Demerged financial data For personal use only On-‐going Medical Innova2on Investment FY2011 FY2012 FY2013 FY2014 Actual Actual Actual Forecast Revenues -‐ $m $1.1 $0.5m $0.0 $0.5 EBITDA -‐ $m $(1.0) $(0.6) $(0.8) $(0.8) NPAT -‐ $m $(1.6) $(1.4) $(1.6) $(1.
Slide 32: Step out growth opportunities – Sleep Treatment
Step out growth opportuni2es – Sleep Treatment For personal use only Year 1 Year 2 Year 3 Year 4 Forecast Forecast Forecast Forecast Revenues -‐ $m $1.7 $5.9 $9.1 $18.3 EBITDA -‐ $m $0.0 $1.6 $2.8 $6.3 NPAT -‐ $m $0.0 $1.1 $2.0 $4.2 Assump2ons: 1 Global Auto-‐set sleep-‐treatment market assumed
Slide 33: Step out growth opportunities – Driver Vigilance Assist (DVA)
Step out growth opportuni2es – Driver Vigilance Assist (DVA) For personal use only Year 1 Year 2 Year 3 Year 4 Forecast Forecast Forecast Forecast Revenues -‐ $m $4.0m $10.3 $26.5 $43.7 EBITDA -‐ $m $2.5m $6.3 $16.3 $28.0 NPAT -‐ $m $1.8m $4.4 $11.4 $19.6 Assump2ons: 1 Local car manufacture at 20
Slide 34: Step out growth opportunities – Automated Sleep Scoring and eHealth
Step out growth opportuni2es – Automated Sleep Scoring and data For personal use only warehousing -‐ eHealth Year 1 Year 2 Year 3 Year 4 Forecast Forecast Forecast Forecast Revenues -‐ $m $1.0 $2.4 $4.4 $5.8 EBITDA -‐ $m $0.3 $0.9 $2.8 $4.0 NPAT -‐ $m $0.2 $0.7 $1.9 $2.8 Assump2ons: 1 Es2mated s
Slide 35: In conclusion
In conclusion For personal use only • Core business – refocus on sales and profit growth as Asia manufacturing cost reduc2ons and clearing the sales order back-‐log restore profitability to the Group. Consider ra2onaliza2on of the Group and demerger op2ons to provide clearer focus • Medical Innova5on
Slide 36: OneMedForum 2011 - San Francisco
For personal use only OneMedForum 2011 - San Francisco Wednesday 12 January 2011