Resmed Inc. · NYSE:RMD
Resmed — Q1 2016 Earnings Presentation
33 slides from Resmed's earnings presentation, Oct 22, 2015
Slide 1: Investor Presentation Q1 2016
Investor Presentation Q1 2016 October 22, 2015
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 reven
Slide 3: Who We Are
WHO WE ARE WHY INVEST WHERE WE’RE GOING © 2015 ResMed I 3
Slide 4: Overview
Overview Leading global developer, manufacturer and marketer of medical solutions to treat and manage sleep-disordered breathing, chronic obstructive pulmonary disease and other chronic respiratory conditions. • Operate in more than 100 countries directly and with distribution partners • Integrated
Slide 5: Holy Grail: Improve outcomes & reduce healthcare costs
Holy Grail: Improve outcomes & reduce healthcare costs • Improve quality of life for patients • Prevent chronic disease progression • Reduce costs of managing chronic disease © 2015 ResMed I 5
Slide 6: Opportunity to shift care from hospital to home
Opportunity to shift care from hospital to home Source: OECD report (2011) – WHY IS HEALTH SPENDING IN THE UNITED STATES SO HIGH? www.oecd.org © 2015 ResMed I 6
Slide 7: We can reduce costs of key chronic diseases
We can reduce costs of key chronic diseases $403 Annual costs per chronic condition billion $165 billion* $147 $145 billion billion Obstructive Sleep Apnea CVD & Stroke $20 billion Obesity Diabetes Asthma MMWR, Vol 60, 2011 CDC National Asthma CDC, National Diabetes Eric A. Finkelstein, et al, Healt
Slide 8: Why Invest
WHO WE ARE WHY INVEST WHERE WE’RE GOING © 2015 ResMed I 8
Slide 9: Why invest
Why invest Strong Portfolio Strong Performance Growth Drivers Broad range of Solid revenue growth Underpenetrated products & solutions track record global SDB market − Wireless, cloud- New adjacent markets Operational excellence connected devices in COPD, CAD & AF is part of our DNA − End-
Slide 10: Q1 2016 Results
Q1 2016 Results Key Financial Metrics Q1 2016 $411.6M Revenue +8% (15% CC) Gross margin 58.0% $100M Non-GAAP operating profit* +4% $82.1M Non-GAAP net income* -3% $0.58 Non-GAAP EPS* -2% $0.57 GAAP EPS -2% Cash flow from operations $122M Free cash flow $106M * Excludes $2.3 million in expenses ($1.7
Slide 11: Diversified revenue sources by region & product
Diversified revenue sources by region & product EMEA 27% Masks and Accessories 42% Americas Flow 62% Generators 58% APAC 11% Note: Represents Q1 2016 revenue breakdown © 2015 ResMed I 11
Slide 12: Strong financial performance
Strong financial performance Revenue ($B) Adjusted Net Income ($M) 9% 13% CAGR CAGR $367 $1.7 $0.9 $195 2010 2015 2010 2015 Adjusted EPS Free Cash Flow ($M) 15% 20% CAGR $2.57 CAGR $321 $1.26 $131 2010 2015 2010 2015 © 2015 ResMed I 12
Slide 13: Robust capital management
Robust capital management Capital Deployment Free Cash Flow returned Increasing Dividend Investment for Growth to Shareholders FY 2015 dividend payout ratio New products Last twelve months combined of 45% of net income dividend and stock repurchase Geographic expansion 2015 dividend per sh
Slide 14: Where We're Going
WHO WE ARE WHY INVEST WHERE WE’RE GOING © 2015 ResMed I 14
Slide 15: Three-Horizon Growth Strategy
ResMed’s Three-Horizon Growth Strategy Changing lives with every breath 20 million lives changed by 2020 Improve patient quality of life Prevent chronic disease progression Reduce healthcare system costs Horizon 3 Accelerate and Expand into New Markets Patient Growth • Respiratory monitoring solutio
Slide 16: The optimized delivery model with Air Solutions
The optimized delivery model with Air Solutions Payors Hospital EMR HME RDM Resupply OSA Referring Sleep Lab or Patient Physician Home Sleep Test Diagnosis Therapy Monitoring & Management Patient Engagement Billing © 2015 ResMed I 16
Slide 17: Proven HI Solutions builds competitive advantage
Proven HI Solutions builds competitive advantage The ability to predict outcomes, communicate insights and act on data effectively and efficiently keeps ResMed in a leadership position. © 2015 ResMed I 17
Slide 18: Air Solutions – Better Efficiency, Better Outcomes
Air Solutions – Better Efficiency, Better Outcomes Efficient management & business growth 1 Patient engagement achieving compliance 2 • Patients who used • Reduced unreached patients myAir achieved by 87% compliance by Day 23 • Increased new patient setups • 84% of patients are by 55% compliant with
Slide 19: AirFit range – World-leading Patient Interfaces
AirFit range – World-leading Patient Interfaces 50% quieter & lighter Compact, user-friendly design Compact design Easy to fit Ease of use Visual freedom Ease of use; comfort Visual freedom Patients ranked #1 for Patients ranked #1 seal, comfort and ease of compared to industry u
Slide 20: We continue to build sleep apnea awareness
We continue to build sleep apnea awareness “Ignorance is our major competitor” • “Better Sleep for Women” education and product focused campaign • S+ by ResMed – consumer sleep management solution available online and retail; connected to Apple HealthKit © 2015 ResMed I 20
Slide 21: Three-Horizon Growth Strategy
ResMed’s Three-Horizon Growth Strategy Changing lives with every breath 20 million lives changed by 2020 Improve patient quality of life Prevent chronic disease progression Reduce healthcare system costs Horizon 3 Accelerate and Expand into New Markets Patient Growth • Respiratory monitoring solutio
Slide 22: Horizon 2: Huge potential to improve outcomes in COPD
Horizon 2: Huge potential to improve outcomes in COPD • Mortality risk reduced by over 60% on a relative basis when using long-term non-invasive ventilation (NIV) 0.40 Control Group Intervention Group treatment in chronic obstructive p=0.0004 pulmonary disease (COPD) 0.30 Cumulative Mortality • One-
Slide 23: Our new respiratory care platform: Astral
Our new respiratory care platform: Astral ResMed introduces the Astral life support ventilator globally: Designed to enrich life for patients • Freedom: patient quality-of-life • Ease of use: saves clinician time • Low total cost of ownership: efficiency * The Astral™ platform is water resistant, bu
Slide 24: Horizon 2: Full spectrum of ventilation products
Horizon 2: Full spectrum of ventilation products Life Support Ventilation Non-invasive Ventilation (NIV) Product Features Astral™ Bilevel Lumis™ Stellar™ AirCurve 10 Patient Requirements © 2015 ResMed I 24
Slide 25: Horizon 2: Invest in a portfolio of key high growth markets
Horizon 2: Invest in a portfolio of key high growth markets © 2015 ResMed I 25
Slide 26: High growth markets: Investing in China
High growth markets: Investing in China • Accelerating our strategy to invest and grow in China and other high growth markets • ResMed and Curative combined will be the leader in sleep and respiratory care in China • Complementary sleep and respiratory care products and Curative product manufacturin
Slide 27: Three-Horizon Growth Strategy
ResMed’s Three-Horizon Growth Strategy Changing lives with every breath 20 million lives changed by 2020 Improve patient quality of life Prevent chronic disease progression Reduce healthcare system costs Horizon 3 Accelerate and Expand into New Markets Patient Growth • Respiratory monitoring solutio
Slide 28: Sleep apnea: Highly prevalent in key diseases
Sleep apnea: Highly prevalent in key diseases Stroke 63% Depression 45% Drug-Resistant Hypertension 83% Heart Failure 76% Coronary Artery Disease 57% Morbid Obesity 77% Atrial Fibrillation 49% Type 2 Diabetes 72% References: Logan et al. J. Hypertension; O’Keefe and Patterson, Obes Surgery; Oldenbur
Slide 29: Horizon 3: Atrial Fibrillation (AF)
Horizon 3: Atrial Fibrillation (AF) • Conclusion of study in JACC: ‒CPAP use associated with reduced AF recurrence ‒Reduced AF recurrence seen in two key groups • Patients who underwent catheter ablation • Patients who underwent non-ablation medical mgmt. ‒Data included 7 studies with n=1,087 patien
Slide 30: Horizon 3: Heart Failure
Horizon 3: Heart Failure Dose-response relationship between SDB and cardiovascular outcome • Goal: Clinical trial focused on treatment of • Status: Enrollment complete and continuing sleep disordered breathing in Heart the clinical trial as a pilot study to Failure inform future research © 2015 ResM
Slide 31: Changing lives with every breath
Changing lives with every breath In the last 12 months, we changed more than 9 million lives, literally keeping patients breathing… and we are just getting started. Our aspiration is to change 20 million lives by 2020 © 2015 ResMed I 31
Slide 32: Why invest
Why invest Strong Portfolio Strong Performance Growth Drivers Broad range of Solid revenue growth Underpenetrated products & solutions track record global SDB market − Wireless, cloud- New adjacent markets Operational excellence connected devices in COPD, CAD & AF is part of our DNA − End-
Slide 33: Contact Investor Relations
Contact Investor Relations Phone: (858) 836-5971 Email: investorrelations@resmed.com Website: www.investors.resmed.com