Nanosonics Limited · ASX:NAN
Nanosonics — FY2018 Earnings Presentation
24 slides from Nanosonics's earnings presentation, August 2018
Slide 1: 2018 Full Year Results Investor Presentation
2018 Full Year Results Investor Presentation Michael Kavanagh, CEO and President McGregor Grant, Chief Financial Officer
Slide 2: Disclaimer
DISCLAIMER 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, financial or
Slide 3: Company Overview and Key Corporate Data
OUR MISSION Company Overview Key Corporate Data 1 Share • ASX 200 listed healthcare company specialised price $3.47 in the development and commercialisation of Shares infection control solutions on issue 299.3 million • First product, trophon® – proprietary Market automated technology for low temper
Slide 4: FY18 Highlights
FY18 - HIGHLIGHTS • Global installed base increased 25% to 17,740 units. • North America up 26% to 15,620 units. • EMEA up 49% to 730 units. • Asia Pacific/Middle East up 9% to 1,390 units. • Fundamentals for ongoing adoption of trophon continued to strengthen with a range of new guidelines and stud
Slide 5: Installed Base
INSTALLED BASE Global 17,740 14,160 Global installed base up 6,250 10,130 +25% 3,960 2014 2015 2016 2017 2018 Global installed North America 15,620 base grew 25% to 12,400 North America installed base up 17,740 units 3,000 5,000 8,700 +26% 2014 2015 2016 2017 2018 EMEA 730 EMEA installed base up +49
Slide 6: Fundamentals for Adoption Strengthen Internationally
FUNDAMENTALS FOR ADOPTION European society of Radiology (ESR) STRENGTHEN • High level disinfection required for all semi-critical procedures and automated system presented as preferred option. INTERNATIONALLY In FY18 the British Medical Ultrasound Society (BMUS) fundamentals for • HLD and use of ste
Slide 7: FY18 Financial Results Review
FY18 Financial Results Review
Slide 8: Nanosonics Revenue Profile: Range of Selling Models
RANGE OF SELLING MODELS 1 Direct Channel Distribution Channel Managed Full Service Capital Capital Sale Equipment Service Rental Distribution Reseller Market • Capital equipment sold • Nanosonics provides • Customer rents capital • Distributor purchases • Distributor purchases upfront with 12 month
Slide 9: Revenue
REVENUE Sales Revenue ($M) Capital Revenue 39.3 • Revenue of $60.7 million 25.5 reflects: 67.5 35.2% • Transitionary reduction in 60.7* capital revenue associated with the earlier than FY17 FY18 anticipated regulatory 42.8 approval of trophon2 and Revenue associated with consumables/service subseque
Slide 10: Revenue Mix by Region
REVENUE MIX BY REGION North America Total Revenue Capital Revenue Revenue associated with consumables/service 62.3 Revenue mix 54.4 37.5 30.3 24.1 24.8 22% demonstrates FY17 FY18 FY17 FY18 FY17 FY18 strong growth in sales associated EMEA with consumables Total Revenue Capital Revenue Revenue associa
Slide 11: Operating Expenses
OPERATING EXPENSES Operating Expense ($M) FY18 Quarterly Operating Expense ($M) 42.6 Continued investment 37.0 in our growth strategy, 32.1 including an increase in headcount by 36% 22.8 to 225 employees, 19.7 expanding our regional 12.8 operations, supporting 8.9 10.4 10.4 our product expansion goa
Slide 12: Profit Before Tax and Cash and Cash Equivalents
PROFIT BEFORE TAX Profit Before Tax ($M) • Reduction in Profit Before Tax reflects growing investments in our strategic growth agenda plus transitionary impact of reduction in Capital 13.9 Sales associated with earlier than 5.6 anticipated trophon2 approval. 0.1 (2.6) (5.5) 2014 2015 2016 2017 2018
Slide 13: Profit and Loss Summary
PROFIT AND LOSS SUMMARY $ million FY18 FY17 Change Highlights • Sales of $60.7 million ($62.2 million in Sale of goods and services 60.7 67.5 10% constant currency), down 10% (7.8% in Gross profit 45.3 50.2 10% constant currency).* % 75% 74% • Gross profit of $45.3 million, or 75% of sales. Selling,
Slide 14: Income Tax
INCOME TAX $ million Key Points • Deferred tax assets recognised following Components of deferred tax asset assessment of operations of the Group. • In FY18 deferred tax asset relating to US Tax losses 1.1 operations recognised. As at 30 June 2018, $2.2 million of total deferred tax asset relates R&
Slide 15: Significant Global Market Opportunity
SIGNIFICANT GLOBAL MARKET OPPORTUNITY Installed Base Opportunity Market Penetration Cumulative Installed Base 17,740 • Increasing number of international guidelines Global 15% 14,160 requiring high level disinfection D supporting growing international demand 120,000 10,130 • Nanosonics expanding its
Slide 16: Simply Smarter
Simply Smarter High Level Disinfection for Ultrasound Probes Investor Presentation August 2018 16
Slide 17: Tap into the Latest Innovation in Ultrasound
Smart Protection trophon2 delivers protection for patients, staff and the environment – reduces risk Smart Flexibility Tap into the Streamlines set-up, can be customised to latest innovation your workflow and has extensive probe compatibility – improves efficiency in ultrasound Smart Functionality E
Slide 18: Significant Replacement/Upgrade Opportunity
REPLACEMENT/ Replacement/upgrade expected after UPGRADE OPPORTUNITY 5-7 years Age distribution of global Installed Base at June 2018 Significant 25% replacement/ 20% upgrade 15% opportunity as 10% installed base ages and new 5% generation 0% Age 1yr 2 yrs 3 yrs 4 yrs 5 yrs 6 yrs 7 yrs 8 yrs devices
Slide 19: Growth Strategies
GROWTH STRATEGIES Expand trophon Geographic Product usage in existing expansion expansion markets Entry into new markets Targeting one or more Establish trophon as with trophon and new infection prevention standard of care for all Regional highlights | North America www.nanosonics.com.au new product
Slide 20: Expanding Global Presence
EXPANDING GLOBAL PRESENCE UK Saudi Arabia Nanosonics direct Exploring distributor operation in place and partnership for North America growing. Guidelines market entry now in place in England, Nanosonics direct operation with over 54 Scotland, Wales and people. GE Healthcare Northern Ireland. Strong
Slide 21: Significant R&D Investment Being Made
NEW PRODUCT Second generation of trophon® approved by the FDA DEVELOPMENT in pril 2018 and now targeting one or more new infection prevention solutions by end of FY20, subject to regulatory approvals Significant R&D Investment Investment in R&D ($M) 9.5 9.9 being made into Product 7.3 Expansion 4.9
Slide 22: Business Outlook FY19
BUSINESS OUTLOOK FY19 anosonics expects • Continued growth in installed base in North America with FY19 adoption similar to FY18. • GE North America to rebuild inventory of capital equipment following launch of trophon2. • Upgrades/replacements of trophon EPR units more than 5 years old to commence
Slide 23: Our People
OUR PEOPLE Our Board Nanosonics has a highly Richard England FCA, MAICD Marie McDonald BSc (Hons), LLB Michael Kavanagh BSc, MBA Maurie Stang Non-Executive David Fisher BRurSc (Hons), Steven Sargent BBus, FAICD experienced and Non-Executive (Hons) (Advanced) Chairman MAppFin, PhD, Non-Executive Dire
Slide 24: Thank you
Thank you