Fisher & Paykel Healthcare Corporation Limited · NZX:FPH
Fisher & Paykel Healthcare — UBS Australasian Healthcare Conference 2004
20 slides from Fisher & Paykel Healthcare's conference presentation, October 2004
Slide 1: UBS Australasian Healthcare Conference October 2004
UBS Australasian Healthcare Conference October 2004
Slide 2: Investment Highlights
Investment Highlights • Leading player in heated humidification devices and consumables for a variety of respiratory and related markets • Consistent growth strategy • Estimated US$1.5 billion+ market opportunity • High level of innovation • Global presence • Competitive NZ cost base • Strong financ
Slide 3: Operating Results US$
Operating Results US$ FY04 (12 mths) % Revenue US$M %Ìpcp Operating revenue 100% 132.1 +28% Gross profit 70.9% 93.6 +34% SG&A 27.5% 36.4 +33% R&D 6.6% 8.7 +52% Total Operating Expenses 34.1% 45.0 +36% Operating Profit 36.8% 48.6 +33% 3
Slide 4: Markets and Products
Markets and Products • Respiratory Neonatal and humidification other OSA • Obstructive sleep 37% 11% apnea • Neonatal and other RH ¯ Consumable products 52% represent approx. 50% of Revenue by Product core product sales 12 months 31 March 2004 4
Slide 5: Respiratory Humidification
Respiratory Humidification • Normal airway humidification is bypassed or compromised during ventilation or O2 therapy • Mucociliary transport system operates less effectively – increases risk of infection – impairs gas exchange • Need to deliver gas at physiologically normal levels – 37°C body core
Slide 6: Market Opportunity
Market Opportunity Humidification systems are used to create, control and deliver optimal levels of humidity • Estimated US$350+ million market worldwide – heated humidifier controllers – humidifier chambers + – breathing circuits and components + – unheated humidifiers – oxygen therapy supplies • O
Slide 7: Humidification Systems
Humidification Systems Products include: • MR850 Respiratory Humidifier System – invasive ventilation, O2 therapy and non-invasive ventilation – increasing penetration driving consumable growth • MR810 Respiratory Humidifier System – electronic thermostat – simple controls – optional heated breathin
Slide 8: Single-use Components
Single-use Components • Single-use chambers – patented auto filling MR290 – manual filling models • Single-use breathing circuits – adult and neonatal – patented spiral heater wire – proprietary dry expiratory tube – less condensation – delivery of optimal humidity • Breathing circuit components – f
Slide 9: Laparoscopic Insufflation
Laparoscopic Insufflation • Dry CO2 gas used in ‘keyhole’ surgery • Heated humidification – reduced hypothermia – less post operative pain – less time in recovery room – faster return to normal activities – reduced risk of adhesions • Pilot marketing in NZ/Australia • Potential high volume of consum
Slide 10: Obstructive Sleep Apnea
Obstructive Sleep Apnea • Temporary closure of airway during sleep • Can greatly impair quality of sleep, leading to fatigue; also associated with hypertension, stroke and heart attack • Estimated US$1+ billion worldwide market, growing 15% - 20%+ Normal breathing • Potentially 50-60 million affecte
Slide 11: CPAP Systems
CPAP Systems • HC150 Humidifier • HC210 Convertible Flow Generator series – Easy conversion to heated humidity • HC220LE Integrated Flow Generator series – compact, integrated unit – compliance optimizer – proprietary motor technology • HC230 Integrated Flow Generator series – greater pressure range
Slide 12: Mask Range
Mask Range Four interface categories: • FlexiFit™ Nasal Masks – patented sliding attachment – FlexiFit™ technology – 3 models • FlexiFit™ Full Face Mask – under chin seal • Oracle™ Oral Mask – proprietary oral interface • Infinity™ Direct Nasal Mask – very light 12
Slide 13: Neonatal and Warming
Neonatal and Warming • Radiant Warmers – warmers required in delivery and NICU – precise and stable temperature control – opportunity in operating room • Infant CPAP System – proprietary bubble CPAP, non- invasive, oscillating pressure – lower risk alternative to ventilation – high value consumable
Slide 14: Research & Development
Research & Development • 150 engineers, scientists, physiologists, up 20 on FY03* • R&D NZ$ 22% increase to 6.6% of revenue FY04 • Product pipeline includes – Flow generators – Masks – Humidification systems for COPD/O2 therapy – Respiratory consumables • Competitive NZ cost base • 45 US patents, 58
Slide 15: Manufacturing
Manufacturing • Vertically integrated – electronics assembly – injection moulding – motor assembly • ISO 9001; Class 100,000 controlled environment • Ample capacity to grow – 300,000 ft2 / 28,000m2 facility – 100 acres / 40 ha – planning next facility, site works underway 15
Slide 16: Global Presence
Global Presence • Direct North – hospitals, home care dealers America – Sales/support offices in USA/Canada, 44% UK/Ireland, France/Benelux/Italy/ Spain, Germany/Austria/Switzerland, Other 4% India, Japan, UAE, China, Australia and NZ - 250 staff – Ongoing international expansion Asia • Distributors
Slide 17: Revenue Growth US$
Revenue Growth US$ 130 120 FY 1999 CAGR FY 2000 CORE 19.6% 110 TOTAL 16.2% 100 FY 2001 FY 2002 90 FY 2003 80 CAGR 12.3% FY 2004 US$M 70 60 CAGR 33.9% 50 40 30 20 CAGR 31.4% 10 0 Respiratory OSA Warming/ Other TOTAL Humidification Neonatal 17
Slide 18: Balance Sheet
Balance Sheet • NZ 52 cps (=10.4 cps post sub-div.) dividend total for FY04, policy 90% payout • NZ$27M ongoing share buyback • 42% pre-tax return on average funds employed FY04 • Planning next building on Auckland site 18
Slide 19: Growth Drivers
Growth Drivers • Consistent strategy • Continue to improve existing product lines • Develop complementary product offerings • Target new medical applications – e.g. COPD, O2 therapy, patient warming, insufflation • Increase international presence – e.g. Japan, China, India, UAE, Switzerland in FY05
Slide 20: Fisher & Paykel Healthcare
Fisher<. Paykel HEALTHCARE Fisher & Paykel HEALTHCARE
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