Nanosonics Limited · ASX:NAN
Nanosonics — H1 FY2017 Earnings Presentation
29 slides from Nanosonics's earnings presentation, Feb 28, 2017
Slide 1: 2017 Half Year Results Investor Presentation
For personal use only 2017 Half Year Results Investor Presentation Michael Kavanagh - CEO & President McGregor Grant – Chief Financial Officer
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. The information in this presentation, whether written or verbal, has been prepared without taking into account the commercial, fina
Slide 3: Corporate Mission
Corporate Mission For personal use only 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. 2017 Half Year Res
Slide 4: Company overview
Company overview For personal use only • Healthcare company specialised in the development and commericalisation of infection control solutions Key Corporate Data • First product, trophon® EPR - proprietary automated technology for low Share price* $2.67 temperature, high level disinfection of ultra
Slide 5: trophon EPR
trophon EPR For personal use only trophon is the safe, versatile and simple way to high level disinfect ultrasound probes. Anything else is a compromise. Safe Versatile Simple • Safe for Patient – most • Compatible with over • Simple to use – one comprehensive portfolio 1,000 probes button operation
Slide 6: Large market opportunity & attractive revenue model
Large market opportunity & attractive revenue For personal use only model Each unit sale results in a robust annuity revenue stream trophon device Accessories Addressable installed base: ~120,000 trophon Capital EPR units globally sales • ~40,000 units in North America • Equivalent sized Consumables
Slide 7: Corporate objectives
Corporate objectives For personal use only Customer Experience Establish our offerings as new standards of care globally and provide customers a convenient, seamless and consistent experience with both product and brand. Product Innovation Operational Excellence People Engagement Create and bring to
Slide 8: 2017 First Half Highlights
2017 First Half Highlights For personal use only Customer Experience Operational Excellence • Installed base growth of over 2,000 units in • Canadian direct sales infrastructure established North America • Expanded operations in UK (Sales, Service, • New international guidelines supporting usage War
Slide 9: 2017 H1 Financial Results
2017 H1 Financial Results For personal use only SALES • FY17 H1 sales of $36.1 million, up 33% vs FY16 H2 (36% in constant currency) and up 132% vs FY16 H1 (142% in constant currency). • Continuing strong adoption of trophon in North America. • Increased consumables and service revenue from growing
Slide 10: 2017 H1 Financial Results
2017 H1 Financial Results For personal use only FY16 FY17 $ million Sales of $36.1 million, up 33% vs FY16 H2 and H1 H2 Total H1 132% vs FY16 H1 Sale of goods and services 15.6 27.2 42.8 36.1 Gross profit of $26.3 million, or 73% of sales Gross profit 12.6 19.6 32.2 26.3 Total operating expenses of
Slide 11: HPV – A major driver for new guidelines and adoption
HPV – A major driver for new guidelines and For personal use only adoption American Journal of Obstetrics and Gynaecology A proposal to reduce the risk of transmission of human papilloma virus via transvaginal ultrasound. • References the findings of Prof Meyers first and second HPV papers • Recomme
Slide 12: New guidelines reinforce broader requirements for High Level Disinfection
New guidelines reinforce broader requirements for High Level Disinfection For personal use only World Federation for Ultrasound in Medicine and Biology Guidelines for cleaning transvaginal ultrasound transducers between patients • Defines semi critical devices as those that pose a higher risk becaus
Slide 13: North America - trophon becoming Standard of Care
North America - trophon becoming Standard of For personal use only Care • trophon installed base grew over 2,000 units in half with total IB now >10,700 units • Canadian direct sales operations established and commence sales in FY17 Q3 • Engagement with all leading ultrasound OEMs • Numerous educati
Slide 14: North America - Drivers for ongoing adoption
North America - Drivers for ongoing adoption For personal use only Addressable installed base of 40,000 units in North America 10,700 North America trophon Installed Base Drivers for ongoing adoption: 9,700 • Usage at point of care in all relevant 8,700 departments across > 5,000 hospitals 7,700 • P
Slide 15: North America – Expert infection prevention panel recognise need for broader education
North America – Expert infection prevention panel recognise need for broader education For personal use only and use of HLD for semi-critical probes • ‘Call to Action’ on infection risk from ultrasound probes published in Infection Control Today (ICT) in Feb 2017 • HLD required for all semi-critical
Slide 16: UK & Ireland: Momentum building in trophon adoption
UK & Ireland: Momentum building in trophon adoption For personal use only • Six of the fourteen Scottish Health boards have commenced adoption of trophon post release of Scottish guidelines • All Welsh Health boards have adopted trophon with nine of the fourteen major hospitals in Wales adding to th
Slide 17: Germany: Fundamentals for adoption strengthening
Germany: Fundamentals for adoption strengthening For personal use only German hospital hygiene society (DGKH) • The first official statement by DGKH (German Hospital Hygiene Society) on ultrasound reprocessing in December 2016 • Reinforces the guidelines of the commission for hospital hygiene and in
Slide 18: France: Fundamentals for adoption strengthening
France: Fundamentals for adoption strengthening For personal use only Ministry of Health (MOH) • Issued a new statement whereby strict compliance with the stringent visual inspection requirements of the probe after use • More strict hygiene processes are now required and will be regularly audited •
Slide 19: Australia / New Zealand
Australia / New Zealand For personal use only • Adoption of trophon continues off an already high installed base • Good demonstration of the ability of trophon to become standard of care when relevant guidelines are in place • New guidelines released jointly by Australian Society of Ultrasound in Me
Slide 20: Preparations for geographical expansion underway
Preparations for geographical expansion underway For personal use only Japan Middle East • Japanese commercialisation strategy • Registrations now in place for Saudi Arabia, progressing positively Kuwait, Qatar and United Arab Emirates • trophon technology demonstrated at the • Trophon recently pres
Slide 21: Focussed ramp up in R&D program
Focussed ramp up in R&D program For personal use only • Large unmet needs exist in infection prevention • Increased investment in R&D by 30% to $4.3 million • Methodical approach to market needs identification and latest “Design thinking” in place Understanding Identifying technology • Solid progres
Slide 22: Business Outlook
Business Outlook For personal use only Positioned for ongoing growth • Excellent market opportunity continues in North America • Fundamentals for adoption strengthening in more markets around the world • Expansion into new geographical territories planned • R&D activities in multigenerational tropho
Slide 23: Thank you!
For personal use only Thank you!
Slide 24: Appendix
For personal use only Appendix
Slide 25: 2017 H1 Financial Results: Income tax
2017 H1 Financial Results: Income tax For personal use only $ million Key points: Income tax benefit Deferred tax asset recognised following Recognition of deferred tax asset 13.6 Equity component of SBP (current and deferred) (1.9) assessment of operations of the Group 11.7 Income tax benefit r
Slide 26: The requirement for disinfection in Ultrasound
The requirement for disinfection in Ultrasound For personal use only • Ultrasound transducers must be reprocessed between patients to prevent cross-infection • Any transducer that contacts broken skin, mucous membranes or sterile body cavities should be high level disinfected or sterilised1 • Heat s
Slide 27: Traditional High Level Disinfection (HLD) Methods
Traditional High Level Disinfection (HLD) For personal use only Methods Disinfection processes unchanged in 20+ years 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 • Pathogen
Slide 28: trophon's patented disinfection technology
trophon’s patented disinfection technology For personal use only 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 p
Slide 29: trophon – breaking new ground in reprocessing
trophon – breaking new ground in reprocessing For personal use only Traditional soaking Timeline trophon is the safe, versatile and simple way trophon to high level disinfect ultrasound probes. Anything else is a compromise. 2017 Half Year Results | 29