Accuray Incorporated · NASDAQ:ARAY
Accuray — J.P. Morgan Healthcare Conference 2020
22 slides from Accuray's conference presentation, Jan 13, 2020
Slide 1: J.P. Morgan Healthcare Conference Investor Presentation
Accuray Incorporated (Nasdaq: ARAY) J.P. Morgan Healthcare Conference Investor Presentation January 15, 2020 Exhibit 99.2
Slide 2: Agenda
© Accuray and/or its affiliates. All rights reserved. Accuray confidential. | © Accuray and/or its affiliates. All rights reserved. Accuray confidential. | AGENDA Accuray’s Inflection Point Line of Sight to Accelerating & Sustainable Revenue and Profit Growth 2.China Unprecedented Growth Catalyst &
Slide 3: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation (including the oral commentary that accompanies it) that are not statements of historical fact are forward-looking statements and are subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking
Slide 4: Accuray's Inflection Point: Line of Sight to Accelerating & Sustainable Revenue and Profit Growth
ACCURAY’S INFLECTION POINT LINE OF SIGHT TO ACCELRATING & SUSTAINABLE REVENUE AND PROFIT GROWTH P&L Trend Adjusted EBITDA is a non-GAAP financial reassure. See the appendix for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure. Represents a mid-point of FY20 Guidance a
Slide 5: Enhanced Shareholder Value
© Accuray and/or its affiliates. All rights reserved. Accuray confidential. | ENHANCED SHAREHOLDER VALUE 53% Recurring Service Revenue for FY2019 as a % of Total FY 2019 Revenue >15%(1) TTM Order Growth >75%(3) EV/Sales Trading Discount to Comparable Group HIGH RECURRING REVENUE ORDER GROWTH VALUATI
Slide 6: China: Unprecedented Growth Catalyst
© Accuray and/or its affiliates. All rights reserved. Accuray confidential. | CHINA: UNPRECEDENTED GROWTH CATALYST China Expected Cancer Incidence 4.3M (2.5x the amount in the U.S.) 12,000 /day China’s lack of access to Radiotherapy: Linac Installed Base by Country Annual New Diagnosed (1) Significa
Slide 7: October 2018 Quota Announcement Provides Visibility on Market Opportunity
© Accuray and/or its affiliates. All rights reserved. Accuray confidential. | 188 TYPE A “PREMIUM” 1,208 TYPE B “CORE” OCTOBER 2018 QUOTA ANNOUNCEMENT PROVIDES VISIBILITY ON MARKET OPPORTUNITY Radixact ® Tomo HD-A ™ & HD ® CyberKnife ® New JV Linac ACCURAY PRODUCT ACCURAY SUCCESS RATE QUOTA TYPE 50
Slide 8: China Joint Venture: Accuray's Differentiated Strategy
© Accuray and/or its affiliates. All rights reserved. Accuray confidential. | CHINA JOINT VENTURE ACCURAY’S DIFFERENTIATED STRATEGY JV PARTNER 25% of CIRC shares listed on the Hong Kong Stock exchange; market capitalization of HKD 6.5 billion(1) Controlled by China National Nuclear Corporation (“CNN
Slide 9: Global Radiation Therapy Market Growing Addressable Market
The Lancet Oncology Commission – “Expanding Global Access to Radiotherapy, Volume 16 September 2015 Edition Radiotherapy in Cancer Care: Facing the Global Challenge, IAEA 2017 *21,800 includes 14,100 expected replacement systems and 7,700 new systems © Accuray and/or its affiliates. All rights reser
Slide 10: Accuray's Differentiated Platforms
© Accuray and/or its affiliates. All rights reserved. Accuray confidential. | ACCURAYS DIFFERENTIATED PLATFORMS Accuray Develops, Manufactures And Sells Radiation Therapy Systems That Make Cancer Treatments Shorter, Safer, Personalized And More Effective.
Slide 11: CyberKnife System: Unique Robotic Non-Coplanar Delivery
© Accuray and/or its affiliates. All rights reserved. Accuray confidential. | CyberKnife® System: Unique Robotic Non-Coplanar Delivery Submillimeter precision, from head to toe PRECISE Synchrony - enables real-time tumor tracking and beam adjustment to continually and efficiently deliver dose to mov
Slide 12: Radixact: Versatile Workhorse System
© Accuray and/or its affiliates. All rights reserved. Accuray confidential. | Radixact ®: Versatile Workhorse System Next Generation TomoTherapy® System PRECISE Synchrony - enables real-time tumor tracking and beam adjustment to continually and efficiently deliver dose to moving targets Helical Deli
Slide 13: Installed Base Replacement Opportunity
© Accuray and/or its affiliates. All rights reserved. Accuray confidential. | INSTALLED BASE REPLACEMENT OPPORTUNITY 48% Of installed Accuray systems over 8 years old leading to significant replacement opportunities over coming years AGE 10 Yrs Average trade in age of Accuray systems over last 5 yea
Slide 14: Accuray Poised to Benefit from Value-Based Care
© Accuray and/or its affiliates. All rights reserved. Accuray confidential. | ACCURAY POISED TO BENEFIT FROM VALUE-BASED CARE ACCURAY SYSTEMS DELIVER HYPOFRACTIONATED TREATMENTS SAFELY AND EFFICIENTLY ACCURAY’S SYNCHRONY™ TECHNOLOGY PROVIDES MEANINGFUL BENEFIT FOR ALL 3 OF THESE PROCEDURES BASED ON
Slide 15: CMS Proposed APM Drives Value-Based Care
© Accuray and/or its affiliates. All rights reserved. Accuray confidential. | CMS PROPOSED APM DRIVES VALUE-BASED CARE ACCURAY PORTFOLIO WELL-POSITIONED TO SUPPORT PROPOSED ALTERNATIVE PAYMENT MODEL (APM) (1) (2) (3) (4) Buyyounouski, M. K., Balter, P., Lewis, B., D’Ambrosio, D. J., Dilling, T. J.,
Slide 16: Accuray Synchrony Competitive Advantage Supports Value-Based Care
ACCURAY SYNCHRONY COMPETITIVE ADVANTAGE SUPPORTS VALUE-BASED CARE Only solution for true motion tracking (bringing the beam to the tumor) Enables tighter dosing margins, minimizing dose to healthy tissues and OAR Accurate, precise and efficient “Synchrony is the major advantage Accuray has over comp
Slide 17: CyberKnife Prostate Study: The PACE-B Trial Acute Toxicity Results
CyberKnife allows patients to receive higher dose and shorter treatment regimens with lowered risk of greater toxicity or incidence of side effects Level 1 evidence study designed to determine non-inferiority of ultra-hypofractionated SBRT over conventionally fractionated or moderately hypofractiona
Slide 18: Summary: Accuray's Accelerating Growth Drivers
© Accuray and/or its affiliates. All rights reserved. Accuray confidential. | SUMMARY: ACCURAY’S ACCELERATING GROWTH DRIVERS CHINA VALUE-BASED CARE CMS Proposed Alternative Payment Model (RO-APM) will drive SBRT and hypofractionated treatment Accuray portfolio safely and efficiently delivers hypofra
Slide 19: Appendix
APPENDIX
Slide 20: Appendix A: Reconciliation of GAAP Net Loss to Adjusted EBITDA (FY'20 Guidance)
APPENDIX A Reconciliation of GAAP Net Loss to Adjusted EBITDA (FY’20 Guidance) © Accuray and/or its affiliates. All rights reserved. Accuray confidential. | Numbers in 000’s FY20 Guidance Mid-Point GAAP Net Loss $ (15,500) Depreciation and Amortization (a) 7,600 Stock-based Comp 12,100 Interest Expe
Slide 21: Appendix B: Reconciliation of GAAP Net Loss to Adjusted EBITDA (FY'17-FY'19)
APPENDIX B Reconciliation of GAAP Net Loss to Adjusted EBITDA (FY’17 – FY’19) © Accuray and/or its affiliates. All rights reserved. Accuray confidential. | Numbers in 000’s FY’17 FY’18 FY’19 GAAP Net Loss $ (29,579) $ (23,899) $ (16,430) Depreciation and Amortization (a) 18,041 9,732 8,266 Stock-bas
Slide 22: Appendix C: EV/Sales Trading Discount to Comparable Group
© Accuray and/or its affiliates. All rights reserved. Accuray confidential. | APPENDIX C EV/Sales Trading Discount to Comparable Group As of January 8, 2020 Ticker Company Stock Price Shares Outstanding Market Cap Cash Debt Enterprise Value SALES (TTM) EV/SALES (TTM) ARAY Accuray Incorporated $2.65