Slide 1: Investor Presentation Q2 2017
Investor Presentation Q2 2017 January 23, 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 20 million lives changed in 2020 Invest in Portfolio of 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 myAir™ AirViewTM © 2017 ResMed I 5
Slide 6: Strong pipeline of sleep products
Strong pipeline of sleep products © 2017 ResMed I 6
Slide 7: Full spectrum of products for respiratory care
Full spectrum of products for respiratory care Portable Oxygen Concentrator Activox™ AcuCare™ high flow nasal cannula Bilevel Ventilation Non-invasive Ventilation (NIV) Life Support 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 2 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 2 million+ patients 4 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 15 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 2 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 200 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 $0 Source: Organization for Economic Cooperation and Development, OECD Health Statistics 2015, July 2015. As compile
Slide 14: AirSolutions - Better outcomes, improved efficiencies
AirSolutions™ - Better outcomes, improved efficiencies Labor 59% World’s largest study for adherence 21 % patient adherence Costs2 > 128,000 patients 24 % with automated compliance New 55% coaching1 Patient Setups3 patient adherence with patient 1. Hwang, et al., Tele-OSA study, Abstract SLEEP 2016
Slide 15: Non-Invasive Ventilation: Reduces hospital admissions
Non-Invasive Ventilation: Reduces hospital admissions Combining non-invasive ventilation with home oxygen therapy: • Reduced likelihood of hospital re-admission or death by 51% • Increased time to re-admission to hospital or death by ~90 days References: Murphy et al. European Respiratory Society 20
Slide 16: NIV: Potential to improve outcomes in COPD
NIV: Potential to improve outcomes in COPD • Mortality risk reduced by over 60%* using 0.40 long-term non-invasive ventilation (NIV) Control Group treatment in severe, hypercapnic chronic Intervention Group obstructive pulmonary disease (COPD) p=0.0004 0.30 • One-year mortality in the two matched Cu
Slide 17: Longer term growth through a portfolio of options
Longer term growth through a portfolio of options • Adjacent Market Development − A-Fib, HFpEF, Asthma, Monitoring Stroke 62% • Sleep & Consumer wellness Atrial Fibrillation 49% ‒ Engagement in Sleep Health ‒ Expansion of ResMed brand Heart Failure 76% Type 2 Diabetes 72% Drug-Resistant Hypertension
Slide 18: Disciplined financial track record
Disciplined financial track record Revenue ($B) Adjusted Net Income ($M) 8% CAGR 10% $1.8 CAGR $379 $1.2 $234 2011 2016 2011 2016 Adjusted EPS Free Cash Flow ($M) 12% $2.68 18% CAGR $489 CAGR $1.49 $217 2011 2016 2011 2016 Fiscal Years ended June 30 © 2017 ResMed I 18
Slide 19: Q2 2017 results
Q2 2017 results Key Financial Metrics Q2 2017 $530.4M Revenue +17% (+18% CC) Non-GAAP gross margin* 58.3% $131.6M Non-GAAP operating profit* +13% $103.3M Non-GAAP net income* +1% $0.73 Non-GAAP EPS* 0% Cash flow from operations $119.9M Free cash flow $105.2M * Excludes for the impact of the Astral b
Slide 20: Diversified revenue sources by region & product
Diversified revenue sources by region & product Brightree 6% EMEA 24% Americas Devices 62% 57% Masks and APAC Accessories 14% 37% Note: Represents Q2 2017 revenue breakdown © 2017 ResMed I 20
Slide 21: 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 21
Slide 22: Proven capital management
Proven capital management Capital Deployment Free Cash Flow returned Increasing Dividend Investment for Growth to Shareholders Last twelve months combined YTD FY 2017 dividend payout New Products ratio of 61% of net income dividend and stock repurchase Geographic expansion = 47% of free cash
Slide 23: Changing Lives with Every Breath
Changing Lives with Every Breath In the last 12 months, we changed more than 10 million lives. Our aspiration is to change 20 million lives by 2020 © 2017 ResMed I 23
Slide 24: 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 25: Contact Investor Relations
Contact Investor Relations Phone: (858) 836-5971 Email: investorrelations@resmed.com Website: www.investors.resmed.com © 2017 ResMed I 25