Slide 1: Uscom (UCM) – Global Medical Devices and Revenue Growth
October 2015 For personal use only Uscom (UCM) – Global Medical Devices and Revenue Growth Rob Phillips PhD(med), MPhil(med), FASE, DMU(cardiol) Associate Professor, Critical Care Research Group, School of Medicine, The University of Queensland Executive Chairman/CEO The Measure of Life
Slide 2: Disclaimer
Disclaimer For personal use only This presenta,on is intended to provide a general outline only and is not intended to be a defini,ve statement on the subject ma9er. The informa,on in this presenta,on, whether wri9en or verbal, has been prepared without taking into account the commercial, financial or
Slide 3: Disclaimer
For personal use only 3 Disclaimer
Slide 4: Uscom
Uscom For personal use only “A rapidly growing Australian medical device company with world leading products and a strategic global vision…” 4
Slide 5: Uscom: Products generate profit
Uscom For personal use only “Products generate profit” Outstanding science Experienced and sector leading people High growth (+50% pa), innova,ve medical device company Key cardiovascular pulmonary markets with mul,ple products De-‐risked technology Strategic growth from recent acquisi,ons Valuable
Slide 6: For personal use only
For personal use only 6
Slide 7: Uscom vision
Uscom vision For personal use only Company of the Year, 2014 Johnson & Johnson InnovaAon Industry Excellence Awards “A milestone driven, rapidly growing global medical device company, with real products, real revenue, real growth and an aggressive growth strategy” 7
Slide 8: Current Business
Current Business For personal use only § Premium noninvasive cardiovascular and pulmonary monitoring devices § Addressing the growing threat of superbugs, heart failure, hypertension and asthma § Validated, clinically accepted, cost and life saving devices with cri,cal applica,ons § IP protected
Slide 9: Strategic growth
Strategic growth For personal use only Complementary products and technology Fluid, Sepsis Hypertension & COPD & Heart Failure Vascular Health & Asthma § US 1.3bn market * § US 1.7bn market * § US 400m market * § CAGR of 7.6% * § CAGR of 11.5% * § CAGR of 6.5% * § CE, FDA, TGA, CFDA § CE, FD
Slide 10: USCOM 1A
USCOM 1A For personal use only Non invasive, accurate, compact technology platform solution Heart failure, hypertension, sepsis Accurate cardiac output Works with all other hospital equipment Cardiac stroke volume Intuitive touch screen Systemic vascular Real time data resistance Platform technology
Slide 11: Uscom BP+
Uscom BP+ For personal use only Central BP - New Wave Supra-systolic Oscillometry Central Blood Pressure and Pulse Pressure Wave Analysis The new standard for hypertension • FDA, CE Mark, TGA approvals • Home or clinic • Supra-systolic • PPW Analysis Central BP+ • Results in • Reliable and 30 second
Slide 12: Uscom Thor Spirometry
Uscom Thor Spirometry For personal use only Central BP – High fidelity digital Ultrasonic spirometry For asthma, COPD, and drug compliance monitoring • Digital ultrasonic spirometry • Dual pathway ultrasonic sensing • FDA, CE Mark, TGA approvals • Reliable and accurate • Auto calibration • Research,
Slide 13: De-Risked technology
De-Risked technology For personal use only Featured in 400+ peer reviewed publications and presentations Sepsis, Heart failure, Hypertension, Fluid management, Emergency, Pediatrics, Cardiac transplantation, Electrophysiology, Emergency transport, Anesthesia, Liver transplantation, ICU, Pre-eclampsi
Slide 14: Global People
Global People For personal use only Nick Schicht Steve Haken Andrew Kenig Denise Pater Tina Wu Rik Denicke Rob Phillips Global Euro Aus Global Global USA Global Bev Jacobson Richard Scott George Tang Lindy Belleza George Ferenczi Hagay Gilad Steve Wilson Global Global Aus Aus Global Aus USA 14
Slide 15: Results - Growth
Results - Growth For personal use only Revenue and Income Distribution Agreements $2,500,000 40 38 $2,039,426 $2,000,000 35 30 27 $1,500,000 $1,377,716 25 $1,010,942 20 $1,000,000 15 12 10 $500,000 5 $0 0 2013 2014 2015 2013 2014 2015 Current revenue only from USCOM 1A BP+ and Thor revenue in 2016 1
Slide 16: New Acquisition
New Acquisition For personal use only Uscom has acquired 100% of Thor Laboratories -‐ Asthma * Company Overview Uscom benefits § High fidelity digital Doppler spirometry devices § Cash flow posi,ve, revenue of $500k § Established manufacturing -‐ 15 years § Accredited interna,onal manufacturing §
Slide 17: New Products - Asthma
New Products - Asthma For personal use only Products in Market New Products Digital Doppler Spirometer New – AsthmaHero Home use Drug delivery measure Telemetry to iPhone app Smart spacer Pa,ent interac,ve With DiagnosQcs and WIFI Digital wifi spirometer New -‐ BreatheSmart Digital wifi spirometer Pr
Slide 18: People and Manufacturing
People and Manufacturing For personal use only Post acquisition headcount Total Headcount Combined Headcount 40 7 35 34 Manufacturing and 6 engineering 30 5 25 Headcount 20 +183% 4 3 15 12 Thor 2 Uscom 10 7 5 1 0 0 Uscom 2011 Uscom 2015 Uscom 2016 More people and More Manufacturing = More Revenue 18
Slide 19: Thor Manufacturing
Thor Manufacturing For personal use only ü Global approvals ü Manufacturing and R&D ü Experienced engineers ü Established reputa,on ü USCOM and BP+ reserve ü University Budapest links InternaAonally ISO accredited medical device manufacturing 15
Slide 20: Revenue Targets
Revenue Targets For personal use only Thor Total Revenue 20,000,000 18,000,000 16,000,000 BP+ 14,000,000 12,000,000 Thor $ 10,000,000 BP+ 8,000,000 USCOM USCOM 6,000,000 4,000,000 2,000,000 0 2015 2016* 2017* 2018* 2019* 2020* 20 $20m revenue by 2020 -‐ 5 year CAGR of 58%
Slide 21: Operations growth
OperaQons growth 1. Uscom Aus Maintaining growth 2. 3. Uscom UK Uscom Budapest For personal use only 4. Uscom USA 2• •• •••• • •• •• 3 • • • •• • • ••• • 4 •• • •• • • • • • •• Key Markets 1. AsiaPAC – 65% 2/3. Europe – 27% • • • 1 4. Nth America – 8% US Focus 2016 Stephen Wilson – Former VP Corpora
Slide 22: The Future: Value Cascade
The Future For personal use only Value Cascade Products Sales OperaQons OpportuniQes USCOM 1A New appointments Global opera,ons Share price growth Uscom BP+ Current distribu,on Increased products Dividend Spirotube Thor distribu,on Increased scale Transac,on O9hon of Comple,on New distribu,on Cost e
Slide 23: Business Risks & Mitigants
Business Risks & Mitigants For personal use only Risks MiQgants § Global markets unpredictable § Diversified and expanded products § Compe,,veness of market sectors § Senior sales and marke,ng personnel § Thor integra,on & key staff reten,on § Earn outs in Thor deal structure § Ongoing Thor bus
Slide 24: UCM Investment
UCM Investment For personal use only ASX 10yr CAGR 14 12 10 UCM sales growth 8 2014 – 67% % 6 2015 – 59% 4 2 0 Mining Financials Health BHP NAB Resmed -2 Health is Growth, UCM is more growth 24
Slide 25: Disconnect between performance and price
ASX:UCM For personal use only Disconnect between performance and price But markets ulQmately align! UCM share price Revenue and Income $4,000,000 $3,500,000 $3,500,000 $3,000,000 $2,500,000 $2,039,426 $2,000,000 $1,377,716 $1,500,000 $1,010,942 $1,000,000 $500,000 $0 2013 2014 2015 2016* 9 Tightly h
Slide 26: Industry comparators
Industry comparators For personal use only Reported and Predicted EBITDA Capitalised Value 2 100 1.5 90 88 1.5 80 1 0.8 70 0.5 60 0 0 0 0 AUD (m) 0 50 46.7 x7 AUD (m) -0.5 UCM ACG ADH 40 30 -1 x4 20 -1.5 -1.1 12.5 FY 15 10 -2 FY16* 0 FY 17* UCM ACG ADH -2.5 -2.3 -3 -2.6 26 * -‐ esAmate ADH – no for
Slide 27: Uscom
Uscom For personal use only Value investment ✓ Experienced management ✓ Strong underlying business ✓ Strong growth phase ✓ Invested in future growth ✓ Premium global markets ✓ Diversified and lifesaving technologies✓ Aggressive global growth strategy ✓ Two new product ranges for market in the next 12
Slide 28: Thanks
October 2015 For personal use only Uscom (UCM) – Global Medical Devices and Revenue Growth Thanks Rob Phillips PhD(med), MPhil(med), FASE, DMU(cardiol) Associate Professor, Critical Care Research Group, School of Medicine, The University of Queensland Executive Chairman/CEO
Slide 29: USCOM 1A Competitive Advantage
USCOM 1A Competitive Advantage For personal use only Non- SV beat Method Manufacturer Technology Rel+Rep invasive Simple Cost Portable to beat USCOM 1A Uscom Doppler ✓ ✓ ✓ ✓ ✓ ✓ BioZ Samsung BioImpedance ✗ ✓ ✓ ✗ ✓ ✗ NiCOM Cheetah BioReactance ✗ ✓ ✓ ✗ ✓ ✗ Nexfin Bmeye APP ✗ ✓ ✓ ✓ ✓ ✗ CardioQ Deltex D
Slide 30: Testimonials
Testimonials For personal use only “This machine is saving lives, there are no two ways about it.” Professor Brendan Smith, AnestheTst, Intensivist and Emergency Physician, N.S.W. Dept of Health, Australia “USCOM has changed the way I look at the cardiovascular status of my paTents. It’s part of the
Slide 31: BP+ Competitive Advantage
BP+ Competitive Advantage For personal use only Uscom BP+ TensioMed BPLab IEM Centron AtCor Australia Hungary Russia Germany UK Australia USD 3,500 USD 6,000 USD 7,000 USD 7,000 USD 6,300 USD 20,000 1 min 2 min 2 min 2 min 1 min 1 min Stand-alone ABP, needs computer ABP, needs computer ABP, needs co
Slide 32: Why ?
Why ? For personal use only Independent research from Cambridge University, Weill Cornell, University of California, Wales Heart InsAtute – BP+ = Four stars BP+ is on the internaAonal space staAon 36 McEniery CM, Cockcroft JR, Roman MJ, Franklin SS, Wilkinson AB. Central blood pressure: current evid
Slide 33: Thor Competitive Advantage
Thor Competitive Advantage For personal use only Uscom Thor Welch Allyn Schiller Sibelmed Vitalograph MIR Carefusion NDD Australia USA Switzerland Spain USA Italy USA Switzerland USD 1,790 USD 2,100 USD 1,850 USD 2,300 USD 2,030 USD 1,750 USD 2,180 USD 1,990 Dual Path Diff Pressure Diff Pressure Tur