Nanosonics Limited · ASX:NAN
Nanosonics — FY2020 Earnings Presentation
29 slides from Nanosonics's earnings presentation, Aug 25, 2020
Slide 1: 2020 Full Year Results Investor Presentation
For personal use only Infection Prevention. For Life. 2020 FULL YEAR RESULTS INVESTOR PRESENTATION Michael Kavanagh – CEO and President McGregor Grant – CFO and Company Secretary
Slide 2: Disclaimer
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 co
Slide 3: FY20 Highlights
“The 2020 financial FY20 HIGHLIGHTS year has been • Full year revenue of $100.1 million, up 19% on prior corresponding period. another year − In the first three quarters of the year, total revenue was up 26% on prior corresponding period, demonstrating strong underlying growth momentum. For personal
Slide 4: Company Overview
C O M PA N Y O V E R V I E W ASX 200 listed healthcare company specialised in the development and KEY CORPORATE DATA 1 commercialisation of infection control solutions Share price $6.49 • First product, trophon® – proprietary automated technology for low temperature, high level disinfection (HLD) of
Slide 5: Installed Base
I N S TA L L E D B A S E Global installed GLOBAL base grew 13% to GLOBAL For personal use only 23,720 INSTALLED BASE UP 23 , 720 units 20,930 17,740 13 % 14,160 10,130 2016 2017 2018 2019 2020 • In the first three quarters of the year, the growth in installed base in North America was in line with e
Slide 6: Range of Selling Models
R A N G E O F S E L L I N G M O D E LS 1 DIRECT CHANNEL DISTRIBUTION CHANNEL For personal use only MANAGED FULL SERVICE CAPITAL SALE EQUIPMENT SERVICE RENTAL DISTRIBUTION CAPITAL RESELLER • Capital equipment • Nanosonics provides capital • Customer rents capital • Distributor purchases capital • Dis
Slide 7: Financial Results Review
For personal use only FINANCIAL RESULTS REVIEW
Slide 8: Total Revenue
T O TA L R E V E N U E Total Revenue FY20 TOTAL REVENUE VS PCP ($M) FY20 Q1-Q3 AND Q4 TOTAL REVENUE VS PCP ($M) up 19% to For personal use only $100 .1 m 19 % In the first three quarters of the year, strong growth was experienced with total revenue increasing 26% on 26 % prior corresponding period.
Slide 9: Capital Revenue
C A P I TA L R E V E N U E Capital Revenue FY20 CAPITAL REVENUE VS PCP ($M) FY20 Q1-Q3 AND Q4 CAPITAL REVENUE VS PCP ($M) down 9% to For personal use only $ 30 m While sales to end customers increased during the year, overall capital revenue decreased reflecting: 9% • A reduction in the number of un
Slide 10: Consumable / Service Revenue
CONSUMABLE / SERVICE REVENUE Consumables/ FY20 CONSUMABLES/ SERVICE REVENUE VS PCP ($M) FY20 Q1-Q3 AND Q4 CONSUMABLES/SERVICE REVENUE VS PCP ($M) Service Revenue For personal use only up 36% to $ 70 . 1 m 36 % In the first three quarters of the year, revenue was up 39% on prior corresponding period.
Slide 11: Total Revenue by Region
T O TA L R E V E N U E B Y R E G I O N FY20 TOTAL REVENUE FY20 Q1-Q3 AND Q4 VS PCP ($M) TOTAL REVENUE VS PCP ($M) For personal use only NORTH AMERICA 90.2 76.5 67.0 53.4 FY19 FY20 18 % FY19 Q1-Q3 FY20 Q1-Q3 25 % 23.1 FY19 Q4 23.2 FY20 Q4 0 .4 % EUROPE AND MIDDLE EAST 5.2 3.8 4.0 2.8 FY19 FY20 37 % F
Slide 12: Capital Revenue by Region
C A P I TA L R E V E N U E B Y R E G I O N FY20 TOTAL CAPITAL FY20 Q1-Q3 AND Q4 REVENUE VS PCP ($M) CAPITAL REVENUE VS PCP ($M) For personal use only NORTH AMERICA 31.0 27.5 20.2 20.7 11 % 2% 37 % 10.8 6.8 FY19 FY20 FY19 Q1-Q3 FY20 Q1-Q3 FY19 Q4 FY20 Q4 EUROPE AND MIDDLE EAST 1.4 1.1 1.0 0.8 FY19 FY
Slide 13: Consumables/Service Revenue by Region
CONSUMABLES/SERVICE REVENUE BY REGION FY20 TOTAL CONSUMABLES/ FY20 Q1-Q3 AND Q4 SERVICE REVENUE VS PCP ($M) CONSUMABLES/SERVICE VS PCP ($M) For personal use only NORTH AMERICA 62.7 45.6 46.3 33.2 FY19 FY20 38 % FY19 Q1-Q3 FY20 Q1-Q3 39 % 12.4 FY19 Q4 16.4 FY20 Q4 32 % EUROPE AND MIDDLE EAST 3.8 2.7
Slide 14: Operating Expenses and Profit Before Tax
O P E R AT I N G E X P E N S E S $ 63 . 2 m OPERATING EXPENSES ($M) For personal use only The Company continued to invest in its strategic growth agenda with operating expenses up 28% to 63.2 $63.2m. 49.2 42.6 37.0 32.1 2016 2017 2018 2019 2020 28 % P R O F I T B E F O R E TA X PROFIT BEFORE TAX ($M
Slide 15: Free Cash Flow and Cash Equivalents
FREE CASH FLOW $ 20 . 9 m FREE FLOW CASH ($M) For personal use only Free cash flow for the year was $20.9 million compared with $2.6 million in prior corresponding 20.9 period, driven by increased 15.1 receipts from customers. 6.2 1.9 2.6 2016 2017 2018 2019 2020 C A S H A N D C A S H E Q U I VA L E
Slide 16: Profit and Loss Summary
PROFIT AND LOSS SUMMARY HIGHLIGHTS $ Million FY20 FY19 CHANGE% • Revenue of $100.1 million ($93.7 million in constant For personal use only currency1), up 19% (11% in constant currency). Revenue 100.1 84.3 19% • Gross profit of $75.5 million, or 75.4% of revenue. Gross profit 75.5 62.8 20% • Selling
Slide 17: Significant Global Market Opportunity
SIGNIFICANT GLOBAL MARKET OPPORTUNITY Installed base opportunity Market Penetration Cumulative Installed Base 23,720 20,930 GLOBAL 17,740 14,160 • Increasing number of international guidelines requiring high 120 , 000 For personal use only level disinfection (HLD) supporting growing international 10
Slide 18: Expanding Global Presence
E X PA N D I N G G L O B A L P R E S E N C E Nanosonics distributes its products in 27 countries, either through direct operations or via distributor partners. For personal use only RUSSIA SWEDEN FINLAND NORWAY DENMARK ESTONIA UNITED KINGDOM CANADA GERMANY IRELAND AUSTRIA BELGIUM SWITZERLAND FRANCE
Slide 19: New Product Development
For personal use only NEW PRODUCT DEVELOPMENT
Slide 20: New Product Development: R&D Investment
NEW PRODUCT DEVELOPMENT During the year, Substantial investment made in new product Nanosonics continued development with important milestones met For personal use only to invest in its product expansion strategy. throughout the year towards our product R&D investment expansion goals. increased 37%
Slide 21: New Product Development: Five Core Areas of Focus
NEW PRODUCT DEVELOPMENT There are five core areas FIVE CORE AREAS OF FOCUS of R&D interest in the For personal use only infection prevention COMPLIANCE AND INSTRUMENT landscape. TRACEABILITY CLEANING Digitally-enabled tools Mandatory critical first As a result of ongoing international to increase vi
Slide 22: Our Strategic Priorities
O U R S T R AT E G I C P R I O R I T I E S For personal use only TROPHON AS EXPAND GEOGRAPHIC PRODUCT EXPANSION INVEST TO GROW STANDARD OF CARE FOOTPRINT • Support establishment of • Expand operations • Expand portfolio of • Maintain strong financial international guidelines. across Asia Pacific and
Slide 23: Business Outlook
BUSINESS OUTLOOK Despite the ongoing FY21 uncertainties associated • Considering the inherent uncertainties and ongoing risks associated with the pandemic, it is not possible to provide specific guidance in respect of FY21. with the current COVID-19 For personal use only • While installed base conti
Slide 24: Business Outlook: Beyond FY21
BUSINESS OUTLOOK Despite the current Beyond FY21 challenges of the Beyond FY21, Nanosonics is targeting: For personal use only • Continued growth in the trophon installed base across all regions. COVID-19 pandemic • Growth in upgrades of trophon EPR to trophon2. our longer term strategic • Japan to
Slide 25: Appendix
For personal use only APPENDIX
Slide 26: For personal use only
For personal use only
Slide 27: A Real Market Need
A REAL MARKET NEED Fundamentals for adoption continue to strengthen Risk of cross with an increasing number of international guidelines contamination requiring high level disinfection for semi critical probes with ultrasound For personal use only probes well Traditional mechanisms trophon® setting o
Slide 28: trophon
trophon is an automated system that delivers effective, ® TROPHON The latest innovation in efficient and safe high level disinfection of ultrasound ultrasound probe high probes level disinfection. For personal use only trophon® Consumables Accessories KEY FEATURES • Highly effective in killing bacte
Slide 29: Income Tax
I N C O M E TA X KEY POINTS $ Million FY20 FY19 • Effective income tax rate for the period For personal use only was 18.6%. Income tax expense 2.3 3.2 • Deferred tax asset attributable to carried forward losses relates to the UK and Canada. • Assessment of probability of recovery (and therefore reco