Nanosonics Limited · ASX:NAN
Nanosonics — Shareholder Meeting (November 2023)
48 slides from Nanosonics's shareholder meeting presentation, Nov 3, 2023
Slide 1: 2023 Annual General Meeting
For personal use only Infection Prevention 2023 ANNUAL GENERAL MEETING FRIDAY, 3 NOVEMBER 2023 Nanosonics Building A, Level 1, 11 Talavera Road Macquarie Park NSW 2113
Slide 2: For personal use only
For personal use only Nanosonics Limited | AGM 2023 2
Slide 3: Board of Directors
For personal use only STEVEN SARGENT MICHAEL KAVANAGH MARIE MCDONALD DR DAVID FISHER NON-EXECUTIVE CHAIRMAN CEO AND PRESIDENT NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR DR LISA MCINTYRE GEOFF WILSON DR TRACEY BATTEN DR LARRY MARSHALL NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIR
Slide 4: How to ask a question
• To ask a written question select the Q & A icon For personal use only • Select the topic your question relates to from the drop-down list • Type your question in the text box and press the send button • To ask a verbal question follow the instructions below the broadcast window. Nanosonics Limited
Slide 5: How to vote
• When the poll is open, select the vote icon at For personal use only the top of the screen • To vote, select either For, Against or Abstain • You will see a vote confirmation • To change or cancel your vote “click here to change your vote” at any time until the poll is closed Nanosonics Limited |
Slide 6: Chairman's Address
For personal use only Chairman’s Address Steve Sargent Nanosonics Limited | AGM 2023 6
Slide 7: Customer, digitisation and healthcare trends
For personal use only CUSTOMER DIGITISATION HEALTHCARE ACQUIRED BUDGETARY PRESSURES & AUTOMATION INFECTION AWARENESS Costs are rising at a faster rate than The digital world is permeating all COVID-19 has fundamentally changed revenue sources and governments aspects of healthcare; replacing the prio
Slide 8: Board of Directors
For personal use only STEVEN SARGENT MICHAEL KAVANAGH MARIE MCDONALD DR DAVID FISHER NON-EXECUTIVE CHAIRMAN CEO AND PRESIDENT NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR DR LISA MCINTYRE GEOFF WILSON DR TRACEY BATTEN DR LARRY MARSHALL NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIR
Slide 9: FY23 key metrics
For personal use only GLOBAL INSTALLED GLOBAL TOTAL TOTAL CONSOLIDATED BASE UNITS1 REVENUE PROFIT BEFORE TAX 32,450 4,410 $166.0m $21.6m 9% 8% 38% 1,250% IN LAST 12 MONTHS VS. FY22 VS. FY22 VS. FY22 30% CC2 1. Global total units comprises new installed base units and upgrades including MES units in
Slide 10: Sustainability and ESG
For personal use only We see Sustainability or ESG as being strongly aligned with our Mission and Purpose. It is not just related to our longer- term sustainable growth, but rather it is fundamental to having a sustainable, commercial business that adds value in the communities in which we operate i
Slide 11: Our Mission
Our Mission For personal use only We improve the safety of patients, clinics, their staff and the environment by transforming the way infection prevention practices are understood and conducted and introducing innovative technologies that deliver improved standards of care. Nanosonics Limited | AGM
Slide 12: Thank you
For personal use only Thank you Nanosonics Limited | AGM 2023 12
Slide 13: CEO & President's Address
For personal use only CEO & President’s Address Michael Kavanagh Nanosonics Limited | AGM 2023 13
Slide 14: Our Mission
Our Mission For personal use only We improve the safety of patients, clinics, their staff and the environment by transforming the way infection prevention practices are understood and conducted and introducing innovative technologies that deliver improved standards of care. Nanosonics Limited | AGM
Slide 15: Key Highlights
Key Highlights Revenue of $166.0 million, up 38% on prior corresponding period (30% in constant currency1). • Capital revenue of $54.2 million, up 44% on prior corresponding period. • Consumables and service revenue of $111.8 million, up 35% on prior corresponding period. For personal use only Total
Slide 16: FY23 financial results
$ millions FY23 FY22 Change % HIGHLIGHTS For personal use only Capital revenue 54.2 37.7 44% Consumable/service revenue 111.8 82.6 35% • Revenue of $166.0 million, up 38% on prior corresponding period (30% in constant currency1). Revenue 166.0 120.3 38% – Capital revenue of $54.2 million up 44
Slide 17: Trophon business profitability
TROPHON BUSINESS A significant proportion of the Company’s operating expenses are associated with future earning opportunities from new product development and expansion. Presented below is the profitability profile of the current core trophon business without those product For personal use only exp
Slide 18: Our Capabilities
OUR CAPABILITIES In North America we have established internal capabilities to lead and drive the successful direct commercialisation of our product portfolio while maintaining flexibility of appointing distributor partners under a range of commercial models to support certain segments of the For pe
Slide 19: Global operating expenses and market opportunity
Global Operating Expenses Investing in a significant Infection Prevention market opportunity MARKET DEVELOPMENT For personal use only Nanosonics has DRIVING ONGOING GROWTH IN MATURE MARKETS established significant • Maintain new installed base unit momentum • Convert significant installed base upgra
Slide 20: Investment in R&D
INVESTMENT IN R&D Global, $m $29.5 Research and development 22.3 15.9 32% vs. FY22 continues to be a 17.2 15.6 11.6 cornerstone of the future For personal use only 11.4 5.9 8.8 9.6 growth of the Company. 13.6 10.7 5.5 6.8 7.6 FY19 FY20 FY21 FY22 FY23 During the year the Company invested $29.5 mill
Slide 21: Our Transformation
OUR TRANSFORMATION 2019 2023 For personal use only REVENUE 2 ($m) $ 84 15% CAGR $ 166 97% • Strong growth momentum continued at 15% CAGR CHANNEL MIX (%) 116% • North America operation moved largely to direct. (direct) Direct Distributor Direct Distributor INSTALLED BASE (ending) 20,930 32,450 55% •
Slide 22: Our Strategic Pillars
Our Strategic Pillars We have defined 5 Strategic Pillars aligned with our mission that guide the organisational strategies to deliver value For personal use only creation for society, customers, employees, shareholders and the planet. Value Creation for We improve the safety 1 Establish new standar
Slide 23: Our Strategic Pillars
Our Strategic Pillars •Continue to establish automated ultrasound reprocessing as standard of care and deliver innovations Establish new standards of care that maintain Nanosonics leadership in the category. For personal use only •Launch and establish CORIS as the new standard of care in the cleanin
Slide 24: Market Penetration
Market Penetration • Significant global growth opportunity. GLOBAL Installed base opportunity 140,000 1 • Increasing number of international guidelines requiring high level For personal use only 23% disinfection (HLD) supporting growing international demand. • Nanosonics expanding its footprint geog
Slide 25: Trophon Business
TROPHON BUSINESS In addition to managing a growing installed base, we strive to deliver continuous value over the lifetime of trophon by driving improved compliance with HLD standards. For personal use only Initial Upgrade installation YEAR 8 14 trophon2 + Printer + Cart CAPITAL + Mount ... + ECOS
Slide 26: Transforming the cleaning of flexible endoscopes
For personal use only Transforming the cleaning of flexible endoscopes OUR NEXT INSTRUMENT REPROCESSING PRODUCT PLATFORM All research and new product development programs involve inherent risks and uncertainties which can impact commercialisation timelines. Nanosonics Limited | AGM 2023 26 Product s
Slide 27: De novo Regulatory Pathway
De novo Regulatory Pathway United States In the United States, CORIS® represents a disruptive De novo Regulatory For personal use only Food and Drug innovation. As such, there is no existing predicate device submission on track for Q3 like it on the market. As a completely novel technology Administr
Slide 28: CORIS presented at international conferences
CORIS was recently presented at several international conferences highlighting best in class efficacy against toughened biofilm. Additional presentations are planned in 2024. For personal use only Association for Professionals in Infection Control and Epidemiology (APIC), USA, June 2023 Irish Decont
Slide 29: Endoscope contamination and biofilm
SUCTION/BIOPSY SUCTION/BIOPSY DISTAL CHANNEL2 CHANNEL2 TIP3 For personal use only FDA MAUDE database Increase in adverse event reports relating to Residue endoscope reprocessing, 2014 to 20211 Debris Soil 36x 87x 5x 22x 9x AIR/WATER CHANNEL4 SUCTION/BIOPSY CHANNEL2 AIR/WATER CHANNEL4 Biofilm Biofilm
Slide 30: Biofilm formation in endoscope channels
Water channel Air channel A/W junction For personal use only Air/Water Air/Water cylinder port Air Air channel channel Air pipe Water Air/Water Water channel junction channel Biofilm formed in A/W channels in just 60 days (30 days in NV: channel surface not visible due to thick layer of biofilm and/
Slide 31: CORIS vs manual cleaning of biofilm
1.4 mm lumens representing the air water and aux channels Protein Total Organic Carbon Colony Forming Units For personal use only *** * *** 60 25 *** 8 40 20 Protein (µg/cm2) Acceptance limit 6 log10CFU/cm2 20 TOC (µg/cm2) (6.4 µg/cm2) 15 1.0 Acceptance limit 4 10 (12 µg/cm2) 0.5 2 LOQ - 0.42 µg/cm2
Slide 32: Head-to-head cleaning test on simulated narrow channel
HEAD-TO-HEAD CLEANING TEST ON A SIMULATED NARROW CHANNEL For personal use only SIMULATE NARROW CHANNEL 1 Auxiliary channel conditions: 1.5 mm diameter, 3.6 m length, PTFE material Unsoiled channel SIMULATE CLINICAL CONDITIONS 2 Biofilm grown across entire channel length Magnified (stained purple) to
Slide 33: CORIS opportunity and endoscopy market
“.. it has become apparent that contamination of patient- ready flexible endoscopes with multi-resistant bacteria is a world-wide problem that results in transfer of these organisms to patients resulting in long-term colonization and/or infection. Biofilm formation has been shown to contribute signi
Slide 34: Thank you
For personal use only Thank you Nanosonics Limited | AGM 2023 35
Slide 35: Formal Business
For personal use only Formal Business Nanosonics Limited | AGM 2023 36
Slide 36: Resolution: Re-election of Dr Lisa McIntyre
RESOLUTION 1 For personal use only PROXY VOTES RECEIVED NUMBER % To consider and, if thought fit, to pass the following ordinary Resolution: For: 193,476,015 98.51 That Dr Lisa McIntyre, who retires by rotation as a Director Against: 2,458,573 1.25 pursuant to the Company’s Constitution and ASX List
Slide 37: Resolution: Election of Dr Tracey Batten
RESOLUTION 2 For personal use only PROXY VOTES RECEIVED NUMBER % To consider and, if thought fit, to pass the following ordinary Resolution: For: 195,838,482 99.72 That Dr Tracey Batten, who was appointed to fill a casual Against: 81,682 0.04 vacancy on the Board since the 2022 Annual General Meetin
Slide 38: Resolution: Election of Dr Larry Marshall
RESOLUTION 3 For personal use only PROXY VOTES RECEIVED NUMBER % To consider and, if thought fit, to pass the following ordinary Resolution: For: 195,854,904 99.72 That Dr Larry Marshall, who was appointed to fill a casual Against: 79,778 0.04 vacancy on the Board since the 2022 Annual General Meeti
Slide 39: Resolution: Re-election of Mr Steven Sargent
RESOLUTION 4 For personal use only PROXY VOTES RECEIVED NUMBER % To consider and, if thought fit, to pass the following ordinary Resolution: For: 188,364,580 95.92 That Mr Steven Sargent, who retires by rotation as a Director Against: 7,547,564 3.84 pursuant to the Company’s Constitution and ASX Lis
Slide 40: Resolution: Remuneration Report
RESOLUTION 5 For personal use only PROXY VOTES RECEIVED NUMBER % To consider and, if thought fit, to pass the following non-binding For: 193,647,598 99.00 Resolution: Against: 1,488,744 0.76 That the Remuneration Report for the financial year ended 30 June 2023 be adopted. Discretion: 471,692 0.24 A
Slide 41: Resolution: Service Rights to Michael Kavanagh
RESOLUTION 6 For personal use only PROXY VOTES RECEIVED NUMBER % To consider and, if thought fit, to pass the following ordinary Resolution: For: 192,046,145 98.16 That approval be given for all purposes under the Corporations Act 2001 (Cth) and the ASX Listing Rule 10.14 for the issue of 44,054 Ser
Slide 42: Resolution: Adoption of Nanosonics Equity Plan
RESOLUTION 7 For personal use only PROXY VOTES RECEIVED NUMBER % To consider and, if thought fit, to pass the following non-binding Resolution: For: 192,008,376 98.18 That, for the purposes of ASX Listing Rule 7.2, Exception 13, and for all other purposes, approval be given for the Company to adopt
Slide 43: Resolution: Performance Rights to Michael Kavanagh
RESOLUTION 8 For personal use only PROXY VOTES NUMBER % RECEIVED To consider and, if thought fit, to pass the following ordinary Resolution: For: 191,570,454 97.93 That approval be given for all purposes under the Corporations Act 2001 (Cth) and the ASX Listing Rule 10.14 for the issue of 385,140 Pe
Slide 44: How to ask a question
For personal use only When the Question function is available, the Q&A icon will appear at the top of the app. To send in a question, simply click in the ‘Ask a question’ box, type your question and the press the send arrow Your question will be sent immediately for review Nanosonics Limited | AGM 2
Slide 45: How to vote
For personal use only When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen To vote simply select the direction in which you would like to cast your vote, the selected option will change colour. There is no submit or send button, your selection is a
Slide 46: How to ask a question
For personal use only When the Question function is available, the Q&A icon will appear at the top of the app. To send in a question, simply click in the ‘Ask a question’ box, type your question and the press the send arrow Your question will be sent immediately for review Nanosonics Limited | AGM 2
Slide 47: Disclaimer
For personal use only This presentation is intended to provide a general outline only and is not intended to be a definitive statement on the subject matter covered in it. The information in this presentation, whether written or verbal, has been prepared without taking into account the commercial, f
Slide 48: Nanosonics Limited contact details
For personal use only Nanosonics Limited Building A Level 1 11 Talavera Road Macquarie Park NSW 2113 Australia T +61 2 8063 1600 E info@nanosonics.com.au www.nanosonics.com.au ABN 11 095 076 896 Nanosonics Limited | AGM 2023