Slide 1: Investor Presentation Q4 2017
Investor Presentation Q4 2017 August 1, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements contained in this presentation that are not historical facts are “forward- looking” statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements — including statements regarding ResMed's projections of future re
Slide 3: ResMed – Driving Value for Shareholders
ResMed – Driving Value for Shareholders Long-term growth Reduce healthcare costs; opportunities across all three horizons of ResMed’s strategy improve outcomes • Improve quality of life for patients • Prevent chronic disease progression • Reduce costs of managing chronic disease Proven innovator in
Slide 4: ResMed's growth strategy: Changing lives with every breath
ResMed’s growth strategy Changing lives with every breath Number of Patient Lives Impacted Horizon 3 Invest in Portfolio of 20 million lives changed in 2020 New Market Options • Sleep & Consumer Wellness Improve patient quality of life ‒ Engagement in Sleep Health Slow chronic disease progression Ho
Slide 5: Global leader in sleep apnea management
Global leader in sleep apnea management AirSense™10 AirViewTM myAir™ © 2017 ResMed I 5
Slide 6: We have launched the world's smallest CPAP
We have launched the world’s smallest CPAP © 2017 ResMed I 6
Slide 7: Full spectrum of products for respiratory care
Full spectrum of products for respiratory care Portable Oxygen Concentrator High-Flow Therapy Activox™ AcuCare™ nasal cannula Non-invasive Ventilation (NIV) Life Support Ventilation Bilevel Ventilation AirCurve 10 Lumis™ Stellar™ Astral™ Astral™ with RCM Patient Acuity © 2017 ResMed I 7
Slide 8: End-to-end solutions for sleep apnea & respiratory care
End-to-end solutions for sleep apnea & respiratory care Over 3 million cloud-connected med devices liberating data daily through AirView 3rd Party Diagnostics DIAGNOSIS THERAPY MONITORING & MGMT. PATIENT ENGAGEMENT BILLING & INTEGRATIONS © 2017 ResMed I 8
Slide 9: Global leader in Connected Care for medical devices
Global leader in Connected Care for medical devices AirView™ has over 3 million+ patients 5 million+ patients monitored at home with connected care 200,000+ diagnostic tests Brightree has 45 million+ processed in the cloud patient accounts as part of its post-acute care network 24 API calls per seco
Slide 10: Liberating sleep data and providing predictive analytics
Liberating sleep data and providing predictive analytics • Over 1 billion nights of sleep data • Receiving over 3 million nights of data daily • Clinically proven devices and solutions • Leading solutions consulting services ‒ improve healthcare outcomes ‒ unlock value for patients, physicians, prov
Slide 11: Sleep apnea is a huge and underpenetrated market
Sleep apnea is a huge and underpenetrated market Sleep Heart Health Study: 26% of adults have sleep apnea Eastern Europe China South Korea India Brazil <15% penetration <10% penetration <1% penetration High growth markets © 2017 ResMed I 11
Slide 12: COPD is a large and growing market
COPD is a large and growing market • Chronic obstructive pulmonary disease (COPD) is the third leading cause of death worldwide1 • More than 380 million people worldwide are estimated to have COPD2 ‒ Largely undiagnosed COPD sufferers in high-growth markets such as China, India, Brazil and E. Europe
Slide 13: Opportunity to shift care from hospital to home
Opportunity to shift care from hospital to home $10,000 8,713 Healthcare Costs per Capita (USD) $8,000 6,325 $6,000 4,819 4,904 4,351 4,124 3,713 3,866 $4,000 3,453 3,077 3,235 $2,000 $0 Source: Organization for Economic Cooperation and Development, OECD Health Statistics 2015, July 2015. As compile
Slide 14: AirSolutions - Better outcomes, improved efficiencies
AirSolutions™ - Better outcomes, improved efficiencies Labor 59% World’s largest study for adherence 21 % patient adherence Costs2 > 128,000 patients 24 % with automated compliance New 55% coaching1 Patient Setups3 patient adherence with patient 1. Hwang, et al., Tele-OSA study, Abstract SLEEP 2016
Slide 15: Big data insights on central sleep apnea
Big data insights on central sleep apnea CPAP to ASV increased adherence CSA ~two times chance of quitting therapy • Largest-ever analysis: ~200k patients • Big Data Study ~135,000 patients showed with treatment-emergent central sleep those with treatment-emergent central apnea sleep apnea (CSA) are
Slide 16: Non-Invasive Ventilation: Reduces hospital admissions
Non-Invasive Ventilation: Reduces hospital admissions Admission free survival by treatment arm over one year 100 Unadjusted hazard ratio, 0.54 (0.34-0.84; P=.007 Combining non-invasive 80 Adjusted hazard ratio, a 0.49 (0.31-0.77; P=.002 ventilation with home oxygen therapy: Admission-free Survival %
Slide 17: NIV: Potential to improve outcomes in COPD
NIV: Potential to improve outcomes in COPD 0.40 Control Group Intervention Group p=0.0004 • Mortality risk reduced by 76%* using long- term non-invasive ventilation (NIV) 0.30 Cumulative Mortality treatment in severe, hypercapnic chronic obstructive pulmonary disease (COPD) 0.20 • One-year mortality
Slide 18: Longer term growth through a portfolio of options
Longer term growth through a portfolio of options • Adjacent Market Development − A-Fib, HFpEF, Asthma, Monitoring Stroke 62% • Sleep & Consumer wellness Atrial Fibrillation 49% ‒ Engagement in Sleep Health ‒ Expansion of ResMed brand Heart Failure 76% Type 2 Diabetes 72% Drug-Resistant Hypertension
Slide 19: Disciplined financial track record
Disciplined financial track record Revenue ($B) Adjusted EPS Quarterly dividend per share 9% 10% $2.82 CAGR CAGR 14% CAGR $0.33 $2.1 $1.78 $0.17 $1.4 2012 2017 2012 2017 2012 2017 Fiscal Years ended June 30 © 2017 ResMed I 19
Slide 20: Q4 2017 results
Q4 2017 results Key Financial Metrics Q4 2017 $556.7M Revenue +7% (+8% CC) Non-GAAP gross margin* 58.2% $139.1M Non-GAAP operating profit* +3% $109.6.M Non-GAAP net income* +5% $0.77 Non-GAAP EPS* +4% Cash flow from operations $140.3M Free cash flow $122.0M * Excludes for the impact of the Astral ba
Slide 21: Diversified revenue sources by region & product
Diversified revenue sources by region & product Brightree 7% EMEA 27% Masks and Accessories Devices 36% 57% APAC Americas 10% 63% Note: Represents Q4 2017 revenue breakdown © 2017 ResMed I 21
Slide 22: Operating Excellence: a continuous process at ResMed
Operating Excellence: a continuous process at ResMed Invest in innovation & unlock acquisition ResMed’s value Operating Excellence Process Efficiencies in product supply & Grow manufacturing operating Expand margins Operating Leverage © 2017 ResMed I 22
Slide 23: Proven capital management
Proven capital management Capital Deployment Free Cash Flow returned Increasing Dividend Investment for Growth to Shareholders Last twelve months combined FY 2017 dividend payout ratio New Products of 54% of net income dividend and stock repurchase Geographic expansion = 53% of free cash flo
Slide 24: Changing Lives with Every Breath
Changing Lives with Every Breath In the last 12 months, we changed more than 11 million lives. Our aspiration is to change 20 million lives by 2020 © 2017 ResMed I 24
Slide 25: ResMed – Driving Value for Shareholders
ResMed – Driving Value for Shareholders Long-term growth Reduce healthcare costs; opportunities across all three horizons of ResMed’s strategy improve outcomes • Improve quality of life for patients • Prevent chronic disease progression • Reduce costs of managing chronic disease Proven innovator in
Slide 26: Contact Investor Relations
Contact Investor Relations Phone: (858) 836-5971 Email: investorrelations@resmed.com Website: www.investors.resmed.com © 2017 ResMed I 26