Resmed Inc. · NYSE:RMD

Resmed — Q4 2018 Earnings Presentation

38 slides from Resmed's earnings presentation, Aug 2, 2018

Slide 1: Investor Presentation Q4 2018
Investor Presentation Q4 2018 Aug 2, 2018
Slide 2: Presentation of Financial Information & Forward-Looking Statements
Presentation of Financial Information & Forward-Looking Statements Historical financial and operating data in this presentation reflect the consolidated results of ResMed Inc., its subsidiaries, and its legal entities, for the periods indicated. This presentation includes financial information prepa
Slide 4: Who We Are / What We Do
Who We Are / What We Do • World-leading connected health company with more than 5 million cloud-connected devices ‒ Enabling care teams in over 65 countries to remotely monitor patients every day • Innovative designer and manufacturer of award- winning devices and cloud-based software solutions ‒ Di
Slide 5: Why Invest? – Driving Long-Term Shareholder Value
Why Invest? – Driving Long-Term Shareholder Value Market Dynamics Growth & Innovation Financial Results • Underpenetrated • Global leader in • Historical revenue and markets in sleep & connected health for profit growth COPD sleep and respiratory • Recurring revenue care • Healthcare costs • Operati
Slide 6: Growth Strategy & Strategic Initiatives
Growth Strategy & Strategic Initiatives Changing lives with every breath 20 million lives changed in 2020 Number of Patient Lives Impacted Horizon 3 Invest in Portfolio of Improve patient quality of life New Market Options Slow chronic disease progression • Sleep & Consumer Wellness Reduce healthcar
Slide 8: What is Sleep-Disordered Breathing?
What is Sleep-Disordered Breathing? • Abnormal respiration during sleep – the cessation of breathing or “sleep suffocation” • Most prevalent is obstructive sleep apnea – collapse of the upper airway despite ongoing effort • Other types include central sleep apnea -- lack of breathing and lack of eff
Slide 9: Transforming Treatment & Management of Sleep Apnea
Transforming Treatment & Management of Sleep Apnea Quiet Compact AirSense™10 AirSense™10 AutoSet for Her AirCurve™10 Comfortable Connected AirViewTM myAir™ © 2018 ResMed I Q4 2018 Investor Presentation I 9
Slide 10: Global Prevalence of Obstructive Sleep Apnea (OSA)
Global Prevalence of Obstructive Sleep Apnea (OSA) Presents Opportunity to Drive Increased Awareness AHI ≥ 5 AHI ≥ 15 936,360,689 424,630,028 Benjafield, et al. AJRCCM 2018 (abstract) © 2018 ResMed I Q4 2018 Investor Presentation I 10
Slide 11: Sleep Apnea is More Than 80% Undiagnosed
Sleep Apnea is More Than 80% Undiagnosed 1 Peppard PE et al. Am J Epidemiol 2013 2 Young T et al. Sleep 1997 © 2018 ResMed I Q4 2018 Investor Presentation I 11
Slide 12: Key Demographic, Political, and Healthcare Trends Present Multiple Opportunities
Key Demographic, Political, and Healthcare Trends Present Multiple Opportunities for ResMed Healthcare continues to rise in importance as a major topic on social and political agendas around the world. Increasing Chronic Aging Healthcare Costs Physician MACRO Disease Burden Population Growing Shorta
Slide 13: Working with Others to Raise Sleep as a Public Priority
Working with Others to Raise Sleep as a Public Priority Consumer tech joint Sleep research joint venture with Dr. Oz venture with Verily1 and Pegasus Capital World’s first non- To study the health and contact sleep tracking financial impacts of mobile app untreated sleep apnea Shows people how Based
Slide 15: Leading the Industry with over 2.5 Billion Nights of Data in the Cloud
Leading the Industry with over 2.5 Billion Nights of Medical Sleep and Respiratory Care Data in the Cloud Global Leader in Cloud-Connected Medical Devices 3rd Party Diagnostics DIAGNOSIS THERAPY MONITORING & MGMT. PATIENT ENGAGEMENT BILLING & INTEGRATIONS © 2018 ResMed I Q4 2018 Investor Presentatio
Slide 16: Global Leadership in Connected Health
Global Leadership in Connected Health AirView™ has over 5 million+ patients 8 million+ patients monitored at home with connected care 200,000+ diagnostic tests Brightree has 64 million+ processed in the cloud patient accounts as part of its post-acute care network 76 API calls per second 1 million+
Slide 17: Market-Leading Connected Health Solutions
Market-Leading Connected Health Solutions Pioneering innovations and providing clinical evidence that support better patient outcomes and improved business efficiencies for customers Labor World’s largest study for adherence % Costs2 59% 21 patient adherence with automated > 128,000 patients complia
Slide 18: Improving Adherence to Therapy
Improving Adherence to Therapy ResAdhere: remote monitoring + mask resupply drive improved adherence In a study of ~100k patients with AirView cloud-connected devices… 100 100% Probability on Therapy (%) 84% 66% 0 Resupply group (AirView + Brightree) 90 360 Control group (non-resupply) Time to Drop
Slide 19: Big Data Analysis Drives Insights for Treatment of Central Sleep Apnea
Big Data Analysis Drives Insights for Treatment of Central Sleep Apnea Patients with treatment-emergent central sleep apnea (CSA) are two times more likely to terminate therapy • Opportunity to rethink conventional therapeutic options • Minimize risk of therapy termination through early diagnosis •
Slide 20: Our Business - Respiratory Care
Our Business - Respiratory Care © 2018 ResMed I Q4 2018 Investor Presentation I 20
Slide 21: What is Chronic Obstructive Pulmonary Disease (COPD)?
What is Chronic Obstructive Pulmonary Disease (COPD)? COPD is a serious lung disease that over time, makes it hard to breathe The leading cause of COPD is smoking Other causes include: • second hand smoke • a history of childhood infections (could • pollution be a catalyst) • occupational exposure t
Slide 22: COPD is a Large and Growing Market
COPD is a Large and Growing Market • COPD is the third leading cause of death worldwide1 • More than 380 million people worldwide are estimated to have COPD2 ‒ Largely undiagnosed COPD sufferers in high-growth markets such as China, India, Brazil and E. Europe may be well over 100 million3 • Cost to
Slide 23: Opportunity to Shift Care from Hospital to Home
Opportunity to Shift Care from Hospital to Home • Healthcare costs are on the rise • Combining non-invasive ventilation (NIV) with home oxygen therapy (HOT) − Reduces hospitalization and mortality by 51% − Increases time to hospital readmission or death by ~90 days Admission-free survival by treatme
Slide 24: Full Spectrum of Solutions for Respiratory Care
Full Spectrum of Solutions for Respiratory Care High-Flow Therapy Portable Oxygen Concentrator AcuCare™ high flow Mobi™ Bilevel Ventilation Non-invasive Ventilation (NIV) Life Support Ventilation AirCurve 10 Lumis™ Stellar™ Astral™ Astral™ with RCM Patient Acuity © 2018 ResMed I Q4 2018 Investor Pre
Slide 25: Our Business - Software as a Service (SaaS)
Our Business - Software as a Service (SaaS) © 2018 ResMed I Q4 2018 Investor Presentation I 25
Slide 26: Global Leader in End-to-End Solutions for Sleep and Respiratory Care
Global Leader in End-to-End Solutions… …for Sleep and Respiratory Care 3rd Party Diagnostics DIAGNOSIS THERAPY MONITORING & MGMT. PATIENT ENGAGEMENT BILLING & INTEGRATIONS © 2018 ResMed I Q4 2018 Investor Presentation I 26
Slide 27: History of Successful SaaS Acquisitions and Integrations
History of Successful SaaS Acquisitions and Integrations Company Location Date Key Product Status Halifax, NS Fully integrated as AirView Action Groups. Halifax has become AUG 2012 U-Sleep Canada key PD development center and provider of Saas Services Rebranded as GoScripts referral document managem
Slide 28: Software as a Service (SaaS): Brightree
Software as a Service (SaaS): Brightree Leading Brightree is the leading provider of cloud-based software to improve clinical and business Provider performance in the post-acute care industry 2,500 Serves more than 2,500 organizations in the HME, home health, hospice, orthotic and Orgs prosthetic, H
Slide 29: Expanding ResMed's SaaS Offerings
Expanding ResMed’s SaaS Offerings Acquired: July 9, 2018 EHR software, billing and coding services, analytics for home health and hospice agencies Segments are large and growing, along with the prevalence of chronic disease and seniors shifting to homecare and other lower-cost care settings Customer
Slide 31: Key Financial Results
Key Financial Results Q4 2018 FY 2018 $623.6M $2,340.2M Revenue +12% (+10% CC) +13% (+10% CC) Gross margin 58.1% 58.2% $166.0M $606.6M Non-GAAP operating profit* +19% +19% $136.3M $507.8M Non-GAAP net income* +24% +27% $0.95 $3.53 Non-GAAP EPS* +23% +25% Cash flow from operations $129.4M $505.0M Fre
Slide 32: Diversified Revenue – by Geography & by Business
Diversified Revenue – by Geography & by Business Europe, OOH SaaS Asia and Other 6% 38% Masks and Accessories Devices 37% 56% US, Canada and Latin America 62% Note: Represents Q4 2018 revenue breakdown © 2018 ResMed I Q4 2018 Investor Presentation I 32
Slide 33: Track Record of Disciplined Financial Growth
Track Record of Disciplined Financial Growth Revenue ($B) Adjusted EPS Quarterly dividend 9% 9% CAGR $2.3 CAGR $3.53 16% CAGR $0.35 $1.5 $2.27 $0.17 2013 2018 2013 2018 2013 2018 Fiscal Years ended June 30 © 2018 ResMed I Q4 2018 Investor Presentation I 33
Slide 34: Focus on Operating Excellence is Driving Improved Operating Leverage
Focus on Operating Excellence is Driving Improved Operating Leverage Operating Profit 24.6% 25.9% $2,500 $2,340 $2,067 $2,000 $1,500 $1,000 $500 $508 $607 $- FY2017 FY2018 Non-GAAP Operating Income Revenue © 2018 ResMed I Q4 2018 Investor Presentation I 34
Slide 35: Proven Capital Management Capital Deployment
Proven Capital Management Capital Deployment Free Cash Flow returned Increasing Dividend Investment for Growth to Shareholders  New Products  Last twelve months combined  FY 2018 dividend payout ratio of 39% of Adj. net income  Geographic expansion dividend and stock repurchase = 57% of free  D
Slide 36: Changing Lives with Every Breath
Changing Lives with Every Breath In the last 12 months, we changed more than 14 million lives. Our aspiration is to change 20 million lives by 2020 © 2018 ResMed I Q4 2018 Investor Presentation I 36
Slide 37: Why Invest? – Driving Long-Term Shareholder Value
Why Invest? – Driving Long-Term Shareholder Value Market Dynamics Growth & Innovation Financial Results • Underpenetrated • Global leader in • Historical revenue and markets in sleep & connected health for profit growth COPD sleep and respiratory • Recurring revenue care • Healthcare costs • Operati
Slide 38: Contact Investor Relations
Contact Investor Relations Phone: (858) 836-5971 Email: investorrelations@resmed.com Website: www.investors.resmed.com © 2018 ResMed I Q4 2018 Investor Presentation I 38

ResMed — Q4 2018 Earnings Presentation on 6ix

Resmed — Q4 2018 Earnings Presentation

Slide 1: Investor Presentation Q4 2018

Slide 2: Presentation of Financial Information & Forward-Looking Statements

Slide 3: Overview

Slide 4: Who We Are / What We Do

Slide 5: Why Invest? – Driving Long-Term Shareholder Value

Slide 6: Growth Strategy & Strategic Initiatives

Slide 7: Our Business - Sleep

Slide 8: What is Sleep-Disordered Breathing?

Slide 9: Transforming Treatment & Management of Sleep Apnea

Slide 10: Global Prevalence of Obstructive Sleep Apnea (OSA)

Slide 11: Sleep Apnea is More Than 80% Undiagnosed

Slide 12: Key Demographic, Political, and Healthcare Trends Present Multiple Opportunities

Slide 13: Working with Others to Raise Sleep as a Public Priority

Slide 14: Healthcare Informatics

Slide 15: Leading the Industry with over 2.5 Billion Nights of Data in the Cloud

Slide 16: Global Leadership in Connected Health

Slide 17: Market-Leading Connected Health Solutions

Slide 18: Improving Adherence to Therapy

Slide 19: Big Data Analysis Drives Insights for Treatment of Central Sleep Apnea

Slide 20: Our Business - Respiratory Care

Slide 21: What is Chronic Obstructive Pulmonary Disease (COPD)?

Slide 22: COPD is a Large and Growing Market

Slide 23: Opportunity to Shift Care from Hospital to Home

Slide 24: Full Spectrum of Solutions for Respiratory Care

Slide 25: Our Business - Software as a Service (SaaS)

Slide 26: Global Leader in End-to-End Solutions for Sleep and Respiratory Care

Slide 27: History of Successful SaaS Acquisitions and Integrations

Slide 28: Software as a Service (SaaS): Brightree

Slide 29: Expanding ResMed's SaaS Offerings

Slide 30: Financial Results

Slide 31: Key Financial Results

Slide 32: Diversified Revenue – by Geography & by Business

Slide 33: Track Record of Disciplined Financial Growth

Slide 34: Focus on Operating Excellence is Driving Improved Operating Leverage

Slide 35: Proven Capital Management Capital Deployment

Slide 36: Changing Lives with Every Breath

Slide 37: Why Invest? – Driving Long-Term Shareholder Value

Slide 38: Contact Investor Relations