Fisher & Paykel Healthcare Corporation Limited · NZX:FPH
Fisher & Paykel Healthcare — UBS Warburg Healthcare Conference 2002
24 slides from Fisher & Paykel Healthcare's conference presentation, Oct 17, 2002
Slide 1: Presentation to UBS Warburg Healthcare Conference
Presentation to UBS Warburg Healthcare Conference Sydney, Australia 17 October 2002 H
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may include forward-looking statements and actual results could vary. Such forward-looking statements, including statements regarding our future revenue and earnings projections and the development of new markets for our products, are subject to risks and
Slide 3: Investment Highlights
Investment Highlights • Leading player in heated humidification devices and consumables for a variety of respiratory markets • Estimated US$1 billion+ market opportunity • High level of innovation • Global presence • Competitive NZ cost base • Strong financial performance • Experienced management te
Slide 4: Markets and Products
Markets and Products • Respiratory humidification Respiratory Neonatal and other Humid- 12% ification • Obstructive sleep apnea 51% • Neonatal and other ¯ Consumable products represent OSA approx. 45% of sales 37% * 12 months to 31 March 2002 H
Slide 5: Respiratory Humidification
Respiratory Humidification • Normal airway humidification is bypassed or compromised during ventilation or O2 therapy • Mucociliary transport system operates less effectively – increases risk of infection – impairs gas exchange • Need to deliver gas at physiologically normal levels – 37°C body core
Slide 6: Market Opportunity
Market Opportunity Humidification systems are utilized to create, control and deliver optimal levels of humidity • Estimated US$300+ million market worldwide – heated humidifier controllers – humidifier chambers – breathing circuits – unheated humidifiers – oxygen therapy supplies ¯ Heated humidifie
Slide 7: Fisher & Paykel's Humidification Systems
Fisher & Paykel’s Humidification Systems Fisher & Paykel has a full range of industry-leading respiratory humidification systems Products include: MR850 Respiratory Humidification System – invasive ventilation, O2 therapy and non-invasive ventilation – patented flow measuring technology – integrated
Slide 8: Single-use Components
Single-use Components • Single-use chambers – patented auto filling MR290 – manual filling models • Single-use breathing circuits – adult and neonatal – patented spiral heater wire – less condensation – delivery of optimal humidity ¯ On average, 35 system set-ups used per controller per year H
Slide 9: Competitive Advantage
Competitive Advantage • Creating, controlling and delivering optimal humidity poses technical challenges • Integrated humidifier, chamber, circuit system provides: – optimal performance – marketing advantage • Bundled consumable sales driven by installed controllers – Estimate F&P has >50% global co
Slide 10: Respiratory Humidification FY03 Q1
Respiratory Humidification FY03 Q1 • Revenue growth (USD) +4% on pcp • Good growth in North America +9% • Reduced humidifier sales to OEMs and to Europe • Strong growth in adult breathing circuits +20% • Neonatal circuits complete MR850 system H
Slide 11: Obstructive Sleep Apnea
Obstructive Sleep Apnea • Temporary closure of airway during sleep • Can greatly impair quality of sleep, leading to fatigue; also associated with stroke and heart attack • Estimated US$600+ million worldwide market, growing 15%-20% Normal breathing • 12 million affected by OSA in US alone • Most co
Slide 12: Fisher & Paykel's CPAP Systems
Fisher & Paykel’s CPAP Systems Fisher & Paykel has a broad range of CPAP products, including flow generators, humidifiers and masks Products include: HC150 Humidifier • suitable for use with most OSA flow generators • patented ambient tracking system HC220/HC221 Integrated Flow-Generator Humidifier
Slide 13: Mask Systems
Mask Systems • Aclaim2 Nasal Mask – proprietary sliding attachment – bias flow diffuser ¯ less leaks, greater comfort • Oracle™ Oral Mask – proprietary oral interface – no headgear required H
Slide 14: Competitive Advantage
Competitive Advantage ¯ Fisher & Paykel is the pioneer of heated humidification technologies in OSA • Leveraging heated humidification expertise into rapidly growing market – increased penetration of heated humidification in OSA, increased reimbursement • Benefits of integrated flow-generator humidi
Slide 15: CPAP/Obstructive Sleep Apnea FY03 Q1
CPAP/Obstructive Sleep Apnea FY03 Q1 • Revenue growth (USD) +18% on pcp • Increasing acceptance of humidification benefits • Improved Medicare reimbursement from 1 July 02 • Price reductions less significant • 45% volume growth in integrated flow- generator humidifiers • Flow-generator revenue great
Slide 16: Neonatal Warmers and CPAP
Neonatal Warmers and CPAP • Radiant Warmers – 400,000 pre-term live births per year in US – warmers required in delivery and NICU – precise and stable temperature control • Infant CPAP System – proprietary bubble CPAP, non- invasive, oscillating pressure – lower risk alternative to ventilation H
Slide 17: Neonatal and warming FY03 Q1
Neonatal and warming FY03 Q1 • Revenue growth (USD) +23% on pcp • Good growth in North America • Tender driven, lumpy • Neonatal CPAP in Australasia H
Slide 18: Research & Development
Research & Development • 120 engineers, scientists, physiologists • Competitive NZ cost base • Integrated product teams • Rapid prototype development • Active clinical research program • 29 US patents, 25 pending * • NZ$3.6M funding over 4 yrs for COPD research H * at 31 Mar 2002
Slide 19: Global Presence
Global Presence % of Revenue* • Direct – hospitals, alternate site, home North care dealers America – sales offices in USA/Canada, 49% UK/Ireland, France/Benelux, Germany/Austria, Australia and Other 3% NZ • Distributors Asia – 100 distributors worldwide - 90 Pacific countries 20% Europe • Original
Slide 20: Growth drivers
Growth drivers • Maintain high level of innovation – continue to improve existing product lines – develop complementary product offerings • Target new medical applications – e.g. COPD • Increase our international presence H
Slide 21: Revenue Growth USD
Revenue Growth USD 100 CAGR: FY 1999 FY ends 31 90 Core 17.1% FY 2000 March Total 12.7% 80 FY 2001 FY 2002 70 60 US$M 50 CAGR: 6.1% 40 CAGR: 42.4% 30 20 10 CAGR: 31.6% 0 Respiratory OSA Warming/ Other * TOTAL Humidification Neonatal * Other includes distributed and discontinued products H
Slide 22: Operating Results
Operating Results Three months ending 30 June 02 Margins 100% 80% 36.5% Operating profit 60% 5.2% R&D 26.9% 40% SG&A GM = 68.6% 20% COGS 31.4% H 0%
Slide 23: Foreign Currency
Foreign Currency • Policy: mix of options and contracts – 100% year 1, 75% years 2 and 3, options only up to 25% years 4 and 5. • US$ represents 80% of NZ export value • Q1 portfolio (USD): – Year 1 100% ) – Year 2 and 3 75% ) average 0.4590 NZD:USD – Year 4 and 5 25% ) H
Slide 24: Fisher & Paykel Healthcare
Fisher «Paykel HEALTHCARE Fisher &Paykel HEALTHCARE
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