Slide 1: Infection Prevention 2023 Full Year Results
Infection Prevention 2023 Full Year Results INVESTOR PRESENTATION Michael Kavanagh, CEO & President McGregor Grant, CFO and Company Secretary
Slide 2: Contents
Contents I. Highlights II. Installed base and upgrades III. Financial results IV. trophon business profitability V. Research & development VI. CORIS® – our next instrument reprocessing product platform VII. ESG VIII. Outlook Appendix
Slide 3: 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. Nanosonics Limited | Full Year Results 2023 3
Slide 4: 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 other need
Slide 5: Key Highlights
Key Highlights Revenue of $166.0 million, up 38% on prior corresponding period (30% in constant currency1). • Capital revenue of $54.2 million, up 44% on prior corresponding period. • Consumables and service revenue of $111.8 million, up 35% on prior corresponding period. Total trophon®2 units place
Slide 6: FY23 Key Highlights
FY23 KEY HIGHLIGHTS ina TOTAL CAPITAL CONSUMABLES/ GROSS PROFIT OPERATING CONSOLIDATED REVENUE REVENUE SERVICE REVENUE MARGIN EXPENSES PROFIT BEFORE TAX $166.0m $54.2m $111.8m 78.7% $114.2m $21.6m (incl. R&D $29.5m) 38% 44% 35% 2.3PTS 26% 1,250% VS. FY22 VS. FY22 VS. FY22 VS. FY22 VS. FY22 VS. FY22
Slide 7: FY23 Key Highlights: trophon Units
FY23 KEY HIGHLIGHTS trophon Units With an installed base of 32,450 trophon units globally, approximately 26 GLOBAL INSTALLED BASE NEW INSTALLED BASE UPGRADES GLOBAL TOTAL UNITS1 million patients are protected every year from 32,450 2,600 1,810 4,410 the risk of ultrasound probe cross contamination.
Slide 8: Installed Base and Upgrades
Installed Base and Upgrades Nanosonics Limited | Full Year Results 2023 8
Slide 9: Installed Base
TROPHON Installed Base 32,450 units GLOBAL TOTAL INSTALLED BASE Units 29,850 32,450 26,750 Growth momentum 23,720 9% In last 12 months continued and the 20,930 total global installed base grew 9% for the year with 32,450 FY19 FY20 FY21 FY22 FY23 trophon units now in NORTH AMERICA Units EUROPE AND
Slide 10: New Installed Base Growth
TROPHON New Installed Base Growth 2,600 units GLOBAL NEW INSTALLED BASE Units The global new 3,190 2,790 3,030 3,100 2,600 16% FY23 vs. FY22 installed base increased by 2,600 units in the year. The pipeline for new FY19 FY20 FY21 FY22 FY23 installed base grew NORTH AMERICA EUROPE AND MIDDLE EAST A
Slide 11: Upgrade Units
TROPHON Upgrade Units 1,810 units GLOBAL UPGRADES Units Global upgrades grew 81% compared with prior 1,810 81% FY23 vs. FY22 corresponding period with 1,000 1,810 upgrade units 430 installed. Upgrades represent a FY21 FY22 FY23 significant growth opportunity NORTH AMERICA EUROPE AND MIDDLE EAST AS
Slide 12: Total Units 4,410
TROPHON Total Units 4,410 units GLOBAL TOTAL UNITS Units New IB Upgrades Global total 3,460 4,100 4,410 8% FY23 vs. FY22 3,190 1,000 trophon2 units1 1,810 - 2,790 430 - grew 8% on prior 3,190 3,030 3,100 2,790 corresponding 2,600 period with 4,410 FY19 FY20 FY21 FY22 FY23 units placed in the year.
Slide 13: Financial Results
Financial Results Nanosonics Limited | Full Year Results 2023 13
Slide 14: Revenue $166.0m
REVENUE H1 H2 $166.0 $166.0m TOTAL REVENUE $m 120.3 84.4 Total revenue for the year was 84.3 100.1 2 103.12 59.7 38% vs. FY22 $166.0 million, up 38% (30% in constant currency1) on prior 43.6 51.6 60.0 30% in CC 81.6 corresponding period. 40.7 48.5 43.1 60.6 The growth in revenue was attributable
Slide 15: North America Revenue $150.4m
REVENUE H1 H2 $150.4m TOTAL REVENUE $m $150.4 Total revenue was $150.4 million, 90.2 89.2 106.9 76.3 41% vs. FY22 up 41% (32% in constant 76.5 currency1) on prior corresponding 39.4 46.5 52.3 52.5 32% in CC period. 43.7 54.4 74.1 37.1 36.9 Capital revenue for the year was $48.9 million, up 46% o
Slide 16: Europe and Middle East Revenue $8.1m
REVENUE H1 H2 $8.1m TOTAL REVENUE $m Total revenue was $8.1 million, up $8.1 8% vs. FY22 7.5 8% on prior corresponding period 5.2 7.2 with revenue in the second half up 3.8 3.6 4.1 4.5 2.8 25% versus the first half. 2.1 2.4 3.6 3.4 3.6 1.7 The market challenges experienced in the first half of the
Slide 17: Asia Pacific Revenue $7.5m
REVENUE H1 H2 $7.5m TOTAL REVENUE $m Total revenue for the year was 6.7 5.9 $7.5 27% vs. FY22 $7.5 million, up 27% on prior 4.0 4.7 3.7 4.1 corresponding period. 2.2 2.3 3.1 Capital revenue for the year was $3.3 million, 1.8 2.4 2.6 2.9 3.8 up 74% on prior corresponding period FY19 FY20 FY21 FY22
Slide 18: Gross profit margin 78.7%
78.7% 78.7% 78.0% Gross profit margin was 76.4% 78.7% for the year, up 74.5% 75.4% 2.3PTS vs. FY22 2.3 percentage points compared with 76.4% in prior corresponding FY19 FY20 FY21 FY22 FY23 period. The stronger gross margin was driven by: • favourable capital and consumable pricing in North America
Slide 19: Operating expenses $114.2m
H1 H2 $114.2m T O T AL O PE R AT I NG E XPE NSE S Global, $m $114.2 In line with the Company’s 90.5 26% vs. FY22 70.8 59.7 investment in the drivers 63.2 49.2 47.8 24% in CC of ongoing growth 32.5 37.7 27.7 through geographical 30.7 33.0 42.7 54.5 21.5 expansion and research FY19 FY20 FY21 FY22
Slide 20: Global Operating Expenses
Global Operating Expenses Investing in a significant Infection Prevention market opportunity MARKET DEVELOPMENT Nanosonics has DRIVING ONGOING GROWTH IN MATURE MARKETS established significant • Maintain new installed base unit momentum • Convert significant installed base upgrade opportunity • Deliv
Slide 21: Profit before tax $21.6m
$21.6m T O T AL PR O FI T B E FOR E T AX Global, $m $21.6 Profit before tax for the year was $21.6 million 16.8 1,250% vs. FY22 12.4 11.0 compared with $1.6 million in FY22. 1.6 FY19 FY20 FY21 FY22 FY23 Profit before tax increased by $20.0 million resulting from: • strong growth in total revenue;
Slide 22: Free cash flow and cash
$19.8m FREE CASH FLOW Global, $m 20.9 $19.8 Free cash flow for the year of $19.8 million compared with 5.9 2.6 a net outflow of $0.2 million in FY22. (0.2) FY19 FY20 FY21 FY22 FY23 $112.2m as at 30 June 2023 CASH AND CASH EQUIVALENTS Cash and cash equivalents were Global, $m $112.2 million at 30 Jun
Slide 23: Highlights
$ millions FY23 FY22 Change % HIGHLIGHTS Capital revenue 54.2 37.7 44% Consumable/service revenue 111.8 82.6 35% • Revenue of $166.0 million, up 38% on prior corresponding period (30% in constant currency1). Revenue 166.0 120.3 38% – Capital revenue of $54.2 million up 44% on prior Gross profi
Slide 24: trophon Business Profitability
trophon Business Profitability Nanosonics Limited | Full Year Results 2023 24
Slide 25: trophon Business
TROPHON BUSINESS A significant proportion of the Company’s operating expenses are associated with future earning opportunities from new product development and expansion. Presented below is the profitability profile of the current core trophon business without those product expansion investments. $
Slide 26: Research & Development
Research & Development Nanosonics Limited | Full Year Results 2023 26
Slide 27: Investment in R&D
INVESTMENT IN R&D Global, $m $29.5 Research and development 22.3 15.9 32% vs. FY22 continues to be a 17.2 11.4 15.6 11.6 cornerstone of the future 5.9 8.8 9.6 growth of the Company. 13.6 10.7 5.5 6.8 7.6 FY19 FY20 FY21 FY22 FY23 During the year the Company invested $29.5 million in R&D, FIVE CORE
Slide 28: Transforming the cleaning of flexible endoscopes
Transforming the cleaning of flexible endoscopes OUR NEXT INSTRUMENT REPROCESSING PRODUCT PLATFORM All research and new product development programs involve inherent risks and uncertainties which can impact commercialisation timelines. Nanosonics Limited | Full Year Results 2023 28 Product shown is
Slide 29: CORIS novel mode of action
N O VE L MO D E O F AC T I O N 1 CORIS® uses a proprietary, environmentally-friendly cleaning agent – coupled with an advanced delivery mechanism – to deliver a novel mode of action that effectively and consistently cleans large and small channels, including those that cannot be brushed today. AU T
Slide 30: Expert views on endoscope reprocessing
“.. it has become apparent that contamination of patient- ready flexible endoscopes with multi-resistant bacteria is a world-wide problem that results in transfer of these organisms to patients resulting in long-term colonization and/or infection. Biofilm formation has been shown to contribute signi
Slide 31: United States Food and Drug Administration
United States Engagement with the FDA De novo Regulatory Pathway Food and Drug through their Safer In the United States, CORIS® represents a disruptive Technologies Program innovation. As such, there is no existing predicate device Administration (STeP) is ongoing like it on the market. As a complet
Slide 32: ESG
ESG Nanosonics Limited | Full Year Results 2023 32
Slide 33: FY23 Highlights
ESG ESG At a Glance FY23 Highlights "We see Sustainability or ESG as being strongly aligned with our Mission and Purpose. It is not just related to our longer-term sustainable growth, but rather it is fundamental to having a sustainable, commercial business that adds value in the communities in whic
Slide 34: Sustainability in our Operations
ESG Sustainability in our Operations In FY23, we measured our scope 1, 2 and 3 carbon footprint. “Overall, the Global GHG assessment for Nanosonics resulted in a total emissions per employee of 28.8 (tCO2 e). This result compares favourably against the Pangolin benchmark of 45.5 (tCO2 e), which incl
Slide 35: Outlook
Outlook Nanosonics Limited | Full Year Results 2023 35
Slide 36: FY24 Business Outlook
BUSINESS OUTLOOK FY24 With a growing opportunity pipeline, it remains to be seen whether hospital budgetary pressures will impact the timing of trophon purchases. Recognising the uncertainties, the Company targets for FY24 include:1 R E VENU E “Nanosonics is well • Growing capital revenue with incre
Slide 37: Appendix
Appendix Nanosonics Limited | Full Year Results 2023 37
Slide 38: Board of Directors and Executive Team
Nanosonics has a highly experienced and dedicated team of professionals leading the development and implementation of our strategic growth agenda. B O AR D O F D I R E C T ORS We are very pleased that Dr Tracey Batten will be joining the Board in September 2023. With each new director joining, the b
Slide 39: Consumables
Delivering consistent protection across every high-level disinfection cycle Consumables trophon®2 THE STANDARD OF CARE BROAD PROTECTION Tested against an extensive range of infectious pathogens, including STIs, hepatitis A, B and C as well as HPV, Clostridium difficile spores and drug-resistant bact
Slide 40: Market Penetration
Market Penetration • Significant global growth opportunity. GLOBAL Installed base opportunity 140,000 1 23% • Increasing number of international guidelines requiring high level disinfection (HLD) supporting growing international demand. • Nanosonics expanding its footprint geographically both direct
Slide 41: trophon Business
TROPHON BUSINESS In addition to managing a growing installed base, we strive to deliver continuous value over the lifetime of trophon by driving improved compliance with HLD standards. Initial Upgrade installation YEAR 8 14 trophon2 + Printer + Cart CAPITAL + Mount ... + ECOSYSTEM (CONSUMABLES + +
Slide 42: Direct and Distribution Channels
TROPHON BUSINESS D I R E CT C H ANNE L D I S T RI BUT ION C H ANNE L MANAGED FULL SERVICE CAPITAL SALE EQUIPMENT SERVICE RENTAL DISTRIBUTION CAPITAL RESELLER • Capital equipment sold upfront • Nanosonics provides capital • Customer rents capital • Distributor purchases capital • Distributor purchase
Slide 43: Income Tax
Income Tax $ millions 30-Jun-23 30-Jun-22 Income tax expense / (benefit) 1.7 (2.1) • Effective income tax for the period was 7.9% Components of Net Deferred Tax Asset (DTA) 30-Jun-23 30-Jun-22 Tax losses 0.5 0.3 • Deferred tax asset attributable to carried forward tax losses relate to the recognised
Slide 44: Nanosonics Limited | Full Year Results 2023
Nanosonics Limited | Full Year Results 2023