Fisher & Paykel Healthcare Corporation Limited · NZX:FPH
Fisher & Paykel Healthcare — INFINZ Conference 2002
20 slides from Fisher & Paykel Healthcare's conference presentation, August 2002
Slide 1: INFINZ Presentation
H INFINZ Presentation August 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: Markets and Products
Markets and Products • Respiratory humidification (50% of sales*) – respiratory humidifiers, chambers, breathing circuits and accessories • Obstructive sleep apnea (40% of sales*) – integrated flow generator-humidifiers, humidifiers, masks and chambers • Neonatal and other (10% of sales*) – neonatal
Slide 4: Global Presence
Global Presence % of Revenue* • Direct North – hospitals, alternate site, home care America dealers NZ 50% 2% – sales offices in USA/Canada, Other UK/Ireland, France/Benelux, 3% Germany/Austria, Australia and NZ Australia • Distributors 9% – 100 distributors worldwide - 90 countries Asia 11% Europe
Slide 5: Why separation?
Why separation? • Value gap! • Market cap of FPI on 2 July 2000 when Deutsche Bank review announced $809m Market Capitalisation • Market cap of FPI on 20 (NZ$m) December 2000 when separation announced $1,500 7 0 % $957m + • Combined market cap of $1,000 FPH and FPA on 12 August 2002 $1,376m $500 Tod
Slide 6: Challenges of Listing/Separation
Challenges of Listing/Separation • Pre-Listing - internal separation of the businesses, company structure, contracts, patents, staff - preparation of required filings - US prospectus (US GAAP, USD a/c’s) - NZ information memorandum - people involved in drafting (approx 26) H
Slide 7: Challenges of Listing/Separation
Challenges of Listing/Separation 2 3 PwC NZ 2 1 PwC US FPH 2 FPI Corp 3 FPH US Counsel Bell Gully 2 DB Bankers 2 DB Counsel DB Analyst 3 Piper Analyst 3 Banc of Am Analyst 3 Participants involved in drafting= 26 H
Slide 8: Challenges of Listing/Separation
Challenges of Listing/Separation • Pre-Listing - underwriter selection - depositary bank selection - roadshow, NZ, Aust., USA - court approval - board selection - management distraction - independent valuation - and many more H
Slide 9: Challenges of Listing/Separation
Challenges of Listing/Separation • Post-Listing - listing requirements, NZSE,ASX,NASDAQ - financial reporting - quarterly - NZD, USD - US GAAP - 20-F US annual report - preparation of historical financial information, quarterly, USD H
Slide 10: Challenges of Listing/Separation
Challenges of Listing/Separation • Post-Listing - new corporate functions - investor relations - treasury - legal/compliance - volatility of world share markets H
Slide 11: FY2003 Q1 Update
yr } 4 ‘Wa s) FY2003 Q1 Update Fisher & Paykel HEALTHCARE Fisher & Paykel
Slide 12: Respiratory Humidification
Respiratory Humidification Environment - Softer hospital capex Performance - Good growth in North America +9% - Reduced humidifier sales to OEMs and to Europe - Strong growth in single-use adult breathing circuits +20% - Revenue (USD) +4% in Q1 - 50% of revenue Q1 H
Slide 13: CPAP / Obstructive Sleep Apnea
CPAP / Obstructive Sleep Apnea Environment - Increasing acceptance of humidification benefits - Price reductions less significant - Improved reimbursement from July Performance - 45% volume growth in integrated flow-generator humidifiers Q1 - Masks increasing in importance - Flow-generator revenue g
Slide 14: Neonatal and warming
Neonatal and warming Environment - Increasing USA sales activity - Tender driven, lumpy Performance - Good growth in North America - Secured a significant neonatal warmer tender in Latin America - Revenue (USD) +23% in Q1 - 5% of revenue Q1 H
Slide 15: New Products
New Products Last 6-12 months Aclaim™ Mask Oracle Mask Infant CPAP System Australasia HC150 Humidifier HC221 Integrated Flow Generator Neonatal breathing circuits HC220 Integrated Flow Generator Aclaim2 mask Æ Continuously introducing new features and advancements to our existing product lines H
Slide 16: Revenue Growth USD
Revenue Growth USD 100 CAGR: Core 17.1% Total 12.7% 80 FY 1999 FY 2000 FY 2001 60 FY 2002 US$M CAGR: 6.1% CAGR: 42.4% 40 20 CAGR: 31.6% 0 Respiratory OSA Warming/ Other * TOTAL Humidification Neonatal H * Other includes distributed and discontinued products FY ends 31/3
Slide 17: Foreign Currency
Foreign Currency • Policy: options and contracts – 100% year 1, 75% years 2 and 3, options only up to 25% years 4 and 5. • Current portfolio (USD): – Year 1 100%) – Year 2 and 3 75% ) average .4590 – Year 4 and 5 25% ) • US$ represents 80% of NZ export value H
Slide 18: Balance Sheet
Balance Sheet • Cash lower due to final dividend (25cps) • DSO steady at 55 days • Finished inventory 5.0 turns p.a. • NZ$20M net balance of currency provisions • Strong operating cashflow of NZ$18M • Capex of NZ$4.8M of which NZ$3.4M on facility extension H
Slide 19: Revenue by core products
Revenue by core products FY03 Q1 US$ Jun-02 Jun-01 %Ì Respiratory humidification 11.7 11.3 +4 CPAP sleep apnea 9.4 8.0 +18 Patient warming/ neonatal 1.3 1.1 +23 22.4 20.3 +10 FY03 Q1 NZ$ Jun-02 Jun-01 %Ì Respiratory humidification 25.2 27.5 -8 CPAP sleep apnea 20.4 19.5 +5 Patient warming/ neonatal
Slide 20: Fisher & Paykel Healthcare
Fisher Paykel HEALTHCARE hé ACF wets 3 f = eos ——4 Fisher & Paykel HEALTHCARE