Fisher & Paykel Healthcare Corporation Limited · NZX:FPH
Fisher & Paykel Healthcare — FY2003 Earnings Presentation
18 slides from Fisher & Paykel Healthcare's earnings presentation, 2003
Slide 1: Summary FY03 and FY03 Q4 Update
H Summary FY03 and FY03 Q4 Update H
Slide 2: FY03 Financial Highlights
FY03 Financial Highlights Net Profit NZ$72.9M +17% US$36.0M +34% Currency gain NZ$23.0M Operating margin 35.5% Pre-tax return on funds 61% Dividend NZ$0.50 Revenue growth (USD) – Total +15% – Respiratory Humidification +12% – OSA +28% – Neonatal/Warming +5% H
Slide 3: Markets and Products
Markets and Products • Respiratory humidification • Obstructive sleep apnea Neonatal • Neonatal and other OSA 41% and other 10% Respirato ry Humid- à Consumable products represent ification approx. 50% of core product sales 49% * 12 months to 31 March 2003 H
Slide 4: Respiratory Humidification Update
Respiratory Humidification Update • Revenue growth (USD) FY03 +12%, Q4 +25% on pcp • Sales growth driven by chamber and circuit sales, acceptance of MR850 system • Continued market share growth in breathing circuits, rapid uptake of neonatal circuits • Non invasive ventilation circuit, weaning kit d
Slide 5: CPAP/Obstructive Sleep Apnea Update
CPAP/Obstructive Sleep Apnea Update • Revenue growth (USD) FY03 +28%, Q4 +20% on pcp • Flow generator revenue growth > market • Increasing acceptance of humidification benefits, improved Medicare reimbursement • Pricing currently stable • Improved Aclaim mask • New flow generators, masks in R&D pipe
Slide 6: Neonatal and Warming Update
Neonatal and Warming Update • Revenue growth (USD) FY03 +5%, Q4 -17% on strong pcp • Tender driven, lumpy • Growing acceptance of Neopuff infant resuscitator and neonatal CPAP system • Journal of Perinatology, Narendran et al, found favourable outcomes from bubble CPAP H
Slide 7: Research & Development
Research & Development • 130 engineers, scientists, physiologists • Significant new product pipeline for FY2004 • Competitive NZ cost base • Integrated product teams • Rapid prototype development • Active clinical research program • 32 US patents, 53 US pending *, 48 ROW, 186 ROW pending • NZ$3.6M f
Slide 8: Global Presence
Global Presence % of Revenue* • Direct – hospitals, alternate site, home care North dealers America – sales offices in USA/Canada, 49% UK/Ireland, France/Benelux/Italy/ Spain, Germany/Austria, Australia Other 3% and NZ • Distributors Asia – 100 distributors worldwide - 90 Pacific countries 20% Europ
Slide 9: Growth Drivers
Growth Drivers • Maintain high level of innovation – continue to improve existing product lines – develop complementary product offerings • Target new medical applications – e.g. COPD • Increase international presence, – e.g. Italy, Spain, China H
Slide 10: Revenue Growth USD US$M
Revenue Growth USD 100 FY 1999 CAGR: FY 2000 FY ends 31 March 90 Core 17.4% FY 2001 Total 13.4% 80 FY 2002 FY 2003 70 60 US$M CAGR: 7.4% 50 CAGR: 38.5% 40 30 20 10 CAGR: 24.5% 0 Respiratory OSA Warming/ Other * TOTAL Humidification Neonatal * Other includes distributed and discontinued products H
Slide 11: Operating Results FY03
Operating Results FY03 Twelve months ended 31 March 03 Margins 100 % 35.5% Operating 8 0% profit 5.5% R&D 6 0% 26.6% 4 0% SG&A GM = 67.6% 2 0% COGS 32.4% H 0%
Slide 12: Balance Sheet
Balance Sheet • Cash post-dividend approx NZ$21M • Inventory NZ$21.9M, 92 days FG • DSO 54 days • Fixed assets NZ$71.4M, mainly facility • Pre-tax return on average funds employed 61.0% H
Slide 13: Foreign Currency
Foreign Currency • Policy: mix of options and contracts – 100% year 1, 75% years 2 and 3, options only up to 25% years 4 and 5. • US$ represents 80% of NZ export value • Portfolio equivalent to NZD 438 million • FY03 year end portfolio (USD): – Year 1 100%) average 0.4470 NZD:USD – Year 2 75%) avera
Slide 14: Operating Results US$
Operating Results US$ FY03 (12 mths) % Revenue US$M %êpcp Operating revenue 100% 103.1 +15% Gross profit 67.6% 69.6 +13% SG&A 26.6% 27.4 +16% R&D 5.5% 5.7 +34% Total Operating Expenses 32.1% 33.1 +19% Operating Profit 35.5% 36.5 +7% Profit after Tax 35.0% 36.1 +34% H
Slide 15: Operating Results NZ$
Operating Results NZ$ FY03 (12 mths) % Revenue NZ$M %êpcp Operating revenue 100% 208.4 -3% Gross profit 67.6% 140.9 -5% SG&A 26.6% 55.4 -2% R&D 5.5% 11.6 +12% Total Operating Expenses 32.1% 67.0 0% Operating Profit 35.5% 73.9 -10% Profit after Tax 35.0% 72.9 +17% H
Slide 16: Operating Results US$ Q4
Operating Results US$ FY03 Q4 (3 mths) % Revenue US$M %êpcp Operating revenue 100% 28.8 +19% Gross profit 68.8% 19.8 +23% SG&A 26.2% 7.5 +28% R&D 5.7% 1.7 +44% Total Operating Expenses 31.8% 9.2 +30% Operating Profit 37.0% 10.6 +17% Profit after Tax 26% 7.5 -21% H
Slide 17: Operating Results NZ$ Q4
Operating Results NZ$ FY03 Q4 (3 mths) % Revenue NZ$M %êpcp Operating revenue 100% 52.3 -9% Gross profit 68.9% 36.1 -6% SG&A 26.1% 13.6 -2% R&D 5.7% 3.0 +10% Total Operating Expenses 31.8% 16.6 -0% Operating Profit 37.2% 19.5 -10% Profit after Tax 24.6% 12.9 -43% H
Slide 18: Fisher & Paykel Healthcare
Fisher & Paykel HEALTHCARE » Fisher &.Paykel MEALTHCARE ‘om
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