Nanosonics Limited · ASX:NAN
Nanosonics — FY2017 Earnings Presentation
32 slides from Nanosonics's earnings presentation, 2017
Slide 1: 2017 Full Year Results Investor Presentation
2017 Full Year Results Investor Presentation Michael Kavanagh – CEO & 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. The information in this presentation, whether written or verbal, has been prepared without taking into account the commercial, financial or other needs o
Slide 3: FY17 - Highlights
FY17 - Highlights Significant achievements across all aspects of Nanosonics’ business ► Record revenue, up 58% to $67.5 million ► North America installed base up 42% to 12,400 (Global installed base now 14,100) ► Market expansion into Japan ► Investments in R&D delivering results, now targeting two
Slide 4: Company Overview
Company Overview ► Healthcare company specialised in the development and commericalisation of infection control solutions Key Corporate Data ► First product, trophon® EPR - proprietary automated Share price* $2.50 technology for low temperature, high level disinfection of ultrasound probes Shares on
Slide 5: Our Mission
Our Mission 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.
Slide 6: Corporate Objectives
Corporate Objectives Customer Product Operational Experience Innovation Excellence Establish our offerings as new Create and bring to market a Develop an agile operation with standards of care globally and portfolio of innovative and quality scalable, compliant and provide customers a convenient, pr
Slide 7: trophon System
trophon® System Accessories
Slide 8: trophon System
trophon® System Safe Versatile Simple • Patient – most • Compatible with over • Simple to use – one button comprehensive portfolio of 1,000 probes including operation efficacy testing in probe intracavity and surface • Fast 7 minute cycle high level disinfection. probes • User - no handling or • Can
Slide 9: Large market opportunity, attractive revenue model
Large market Attractive revenue opportunity model Global addressable installed base: ~120,000 trophon EPR units ► ~40,000 Units in North America ► Equivalent sized markets in Europe and RoW
Slide 10: Financial Results
Financial Results
Slide 11: 2017 Full Year Results
2017 Full Year Results $67.5 million Sales $13.9m Profit $15.1m Free Before Tax Cash Flow $13.9m $67.5m $15.1m $42.8m ($5.9m) ($4.7m) ($3.1m) ($2.6m) $1.9m $21.5m $22.2m ($5.7m) ($5.5m) $136,000 $14.9m 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 ► FY17 sales of $67.5 m
Slide 12: 2017 Full Year Financial Results
2017 Full Year Financial Results Highlights $ million FY17 FY16 Change% ► Sales of $67.5 million, up 58% vs FY16 Sale of goods and services 67.5 42.8 58% ► Gross profit of $50.2 million, or 74% of sales ► Total operating expenses of $38.1 million Gross profit 50.2 32.2 56% % 74% 75% • 30% increase i
Slide 13: Regional Updates
Regional Updates
Slide 14: North America
North America trophon Installed Base ► Key focus is to establish trophon as standard of care across all hospitals and all relevant departments within each hospital. ► Continuing investment in education, sales and marketing activities to drive market awareness on the importance high level disinfectio
Slide 15: Europe
Europe trophon Installed Base ► Momentum of trophon adoption in UK builds in response to guideline changes and the Management Equipment Service (MES) business model. ► UK sales team expanded and new warehouse and service operations established. ► Fundamentals for adoption strengthening in France and
Slide 16: Asia Pacific
Asia Pacific trophon Installed Base Australia / New Zealand ► ANZ sales grew 22% to $3.1 million. ► Market penetration approximately 70%. ► New joint guideline between ASUM and ACIPC emphasising the importance of HLD of all semi-critical ultrasound devices. Japan ► Nanosonics entered into a master d
Slide 17: Strengthening fundamentals for adoption globally
Strengthening fundamentals for adoption globally
Slide 18: New studies and guidelines reinforce the need for High Level Disinfection
New studies and guidelines reinforce the need for High Level Disinfection Guidelines evolving rapidly to reflect disinfection best practice ► World Federation for Ultrasound in Medicine and Biology • Defines semi critical devices as those that pose a higher risk because of contact with non-intact sk
Slide 19: Semi-critical Probes
Semi-critical Probes Many surface probe The need for High Level procedures are semi- Disinfection is based on intended critical & require High Level Disinfection probe usage - not probe type ► Educational push by industry Key Opinion Leaders through influential peer reviewed publications. ► trophon
Slide 20: Industry experts issue a call to action
Industry experts issue a call to action… ► Highlights that immediate action is needed to bridge gaps in awareness about ultrasound probe reprocessing requirements, and to enhance education ► The Call to Action explores: • challenges presented by ultrasound probe infections • current efforts to monit
Slide 21: Growth Strategies
Growth Strategies Expand existing Geographic Product market expansion expansion ► Trophon as Standard of ► Entry into new markets ► Investment in R&D Care for all semi critical with trophon and new ► Minimum of two new probes across all products products in two years relevant hospital departments an
Slide 22: Focussed ramp up in R&D Program
Focussed ramp up in R&D Program ► Large unmet needs exist in infection prevention. ► Increased investment in R&D by 30% to $9.5 million. ► Solid progress made on a number of new products which are moving from the research phase into the development phase in FY18. ► Targeting the launch of two new pr
Slide 23: Nanosonics and GE Healthcare extend trophon relationship
Nanosonics and GE Healthcare extend trophon relationship ► New 3 Year Capital Reseller agreement comes into effect on July 1 2019 at end of current Distribution agreement. ► Agreement is part of Nanosonics’ global Ultrasound OEM program. ► GE Healthcare will have ongoing access to trophon through GE
Slide 24: Business Outlook
Business Outlook Growth Drivers Markets ► Continue to grow and establish trophon as ► New guidelines expected in Europe standard of care ► Pre-marketing in Japan ► Geographical expansion ► Uncertainty surrounding healthcare reform in ► Product line expansion USA – potential to delay timing of adopti
Slide 25: Thank you
Thank you Infection Protection. For Li
Slide 26: Appendix
Appendix
Slide 27: 2017 Full Year Financial Results: Income Tax
2017 Full Year Financial Results: Income Tax Key points: $ million Income tax benefit ► Deferred tax assets recognised following Recognition of deferred tax assets 14.1 assessment of operations of the Group. Equity component of SBP (current and deferred) (1.8) Others (0.1) ► Income tax benefit recog
Slide 28: 2017 Full Year Financial Results: Impact of FX
2017 Full Year Financial Results: Impact of FX Key points: $ million USD Ave. USD Outstanding FX contracts at 30 June 2017 covered rate ► The Company takes a conservative Forward cover in place 10.2 0.7520 approach in covering currency exposure on forecast USD net inflows. P&L impact from FX FY17 FY
Slide 29: Traditional High Level Disinfection Methods
Traditional High Level Disinfection Methods The traditional methods: soak, spray or wipe ► Chemical spills and vapour control present OH&S risks ► Probes often must be transported to a central sterilisation facility ► Pathogens may remain - increased risk of cross contamination ► Wipes and sprays no
Slide 30: trophon's patented disinfection technology
trophon’s patented disinfection technology Step 1: Ultrasonic vibrations generate soundwave energy to create micro-sized droplets. Step 2: The droplets are converted into an ultrafine mist that enters the disinfection chamber. Step 3: The mist covers the entire surface of the probe and handle, and i
Slide 31: trophon technology
trophon® technology
Slide 32: trophon – breaks new ground
trophon – breaks new ground trophon is the safe, versatile and simple way to high level disinfect ultrasound probes.