Somnomed Limited · ASX:SOM

Somnomed — H1 FY2016 Earnings Presentation

14 slides from Somnomed's earnings presentation, Feb 18, 2016

  1. Slide 1: SomnoMed Investor Presentation: Financial Year 2015-16 Half Year Review

    For personal use only SomnoMed Investor Presentation Financial Year 2015-16 Half Year Review Copyright ® and registered trademark notice ASX Investor Presentation | Page 0

  2. Slide 2: Disclaimer & Regulatory Disclosure

    Disclaimer & Regulatory Disclosure For personal use only This document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial position and performance, profit and losses and the rights and liabilities attaching to the Company’s

  3. Slide 3: Strong growth in direct sales volumes and revenues whilst US licensee sales become less important

    Strong growth in direct sales volumes and revenues whilst US licensee sales become less important For personal use only Global unit sales growth Global revenues growth A$’000 Units 25,000 35,000 $21.3m 28,997 30,000 20,000 25,000 Global Other Direct 15,000 revenues 20,000 +23.8% +11.6% 15,000 10,000

  4. Slide 4: Global highlights first half 2015/16

    Global highlights first half 2015/16 For personal use only o Direct sales volumes +23.8% and group revenues +30.2% o MAS gross margin maintained at 68.5% and Group gross margin up to 57.5% o Licensee sales now less than 10% of North American sales o EBITDA up 124% to $908,000 o Acquisition of remain

  5. Slide 5: Excellent sales growth especially in the US and Europe

    Excellent sales growth especially in the US and Europe For personal use only APAC & Japan Europe North America Direct Units Units Units 3,500 12,000 16,000 +11.2% +28.8% +21.2% 3,000 14,000 10,000 12,000 2,500 8,000 10,000 2,000 6,000 8,000 1,500 6,000 4,000 1,000 4,000 500 2,000 2,000 0 0 0 2013/14

  6. Slide 6: Europe and North America dominate share of unit sales

    Europe and North America dominate share of unit sales For personal use only Regional unit sales split 100% 90% 80% 44.6% 49.0% 70% 60% USA Direct 10.3% USA Licensee 50% 5.1% EUROPE 40% APAC & JAPAN 30% 34.7% 35.9% 20% 10% 10.4% 9.9% 0% 2014/15 2015/16 Half Year Investor Presentation | Slide 5

  7. Slide 7: Main trends – North America

    Main trends – North America For personal use only Direct unit sales growth 28.8% New product sales are successfully gaining share Units 18,000 16,000 14,000 12,000 34% 10,000 8,000 56% 6,000 4,000 10% 2,000 0 2014/15 2015/16 North America Direct North America Licensee Signature traditional Signature

  8. Slide 8: Growth acceleration in Europe due to strong performance of new and emerging markets

    Growth acceleration in Europe due to strong performance of new and emerging markets For personal use only Europe unit sales growth rate Europe core market growth Europe emerging market growth Units Units 25.0% +23.4% 9,350 1,600 1,400 20.0% +18.3% 8,800 +56.7% 1,200 +16.6% 1,000 15.0% 8,250 800 10.0

  9. Slide 9: APAC – Australian market mature but Korea and Japan promising

    APAC – Australian market mature but Korea and Japan promising For personal use only ANZ South Korea Japan +15.9%* +10.4%* +18.8%* 2014/15 2015/16 2014/15 2015/16 2014/15 2015/16 * Half year comparative volume growth Investor Presentation | Slide 8

  10. Slide 10: Summary Profit & Loss for first half 2015/16

    Finance Summary Profit & Loss for first half 2015/16 For personal use only Financial Summary – AUD $000’s 15/16 14/15 1st H 1st H Group Revenue 21,333 16,800** Group gross margin 12,272 9,516 Regional sales and marketing expenses (5,696) (4,653) Regional administrative expenses (4,076) (3,109) Opera

  11. Slide 11: Under-proportionate growth in expenses increases bottom line

    Finance Under-proportionate growth in expenses increases bottom line For personal use only Total Revenue 27.0% MAS Revenue (1) 30.2% Gross Margin (2) 29.0% Main Reasons (1) Excellent unit sales growth Regional Sales and Marketing expenses (3) 22.4% (2) Volume growth (3) Higher sales commissions/trav

  12. Slide 12: Future development of US Gross Margin

    Finance Future development of US Gross Margin For personal use only USA Gross Margin by product group Volume Volume Future Margin Digital Supplier pricing Improvement Digital 80% 70% 60% 50% 40% 72.7% 67.0% 30% 52.3% 20% 10% 0% Signature products Mid-price products All products Half Year Investor Pr

  13. Slide 13: Outlook second half 2015/16

    Outlook second half 2015/16 For personal use only o Continuing 20%+ growth in North America and European direct sales o Gross margin improvement due to economies of scale, digital scanning and improving supplier pricing o Continuing decline in licensee volumes o Introduction of new product at the US

  14. Slide 14: Contact details

    For personal use only Contact details EXECUTIVE CHAIRMAN & CEO  Dr. Peter Neustadt CHIEF FINANCIAL OFFICER  Mr. Neil Verdal-Austin Address  Level 3, 20 Clarke Street Crows Nest NSW 2065 Australia Telephone  +61 (2) 9467 0400 Website  www.somnomed.com.au Investor Presentation | Slide 13

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