Fisher & Paykel Healthcare Corporation Limited · NZX:FPH
Fisher & Paykel Healthcare — H1 FY2010 Earnings Presentation
11 slides from Fisher & Paykel Healthcare's earnings presentation, November 2009
Slide 1: Half Year Update and Overview FY2010
HALF YEAR UPDATE AND OVERVIEW FY2010 November 2009 1 Investment Highlights • Leading player in respiratory humidification systems • Consistent growth strategy • Estimated US$3.0+ billion and growing market opportunity • High level of innovation • Global presence • Strong financial performance NZSX:F
Slide 2: Operating Results NZ$ and US$
Operating Results NZ$ 1H FY10 (6 months to 30 September) %Revenue NZ$M % Ìpcp Operating revenue 100% 251.4 +18% Gross profit 54.0% 135.8 +15% Other income 0.9% 2.2 SG&A 28.2% 70.8 +18% R&D 6.5% 16.3 +23% Total Operating Expenses 34.7% 87.1 +18% Operating Profit 20.3% 50.9 +11% Profit after Tax 14.7%
Slide 3: Markets and Products
Markets and Products Distributed • Respiratory & Acute Care /Other 6% – Heated Humidification – Respiratory Care OSA 47% – Neonatal Care • Obstructive Sleep Apnea – Masks – Flow Generators Respiratory – Humidifiers & Acute 47% Revenue by Product ¯ Consumable and accessory products 6 months to 30 Sep
Slide 4: Respiratory/Humidification Systems
Respiratory/Humidification Systems • MR850 Respiratory Humidifier System – invasive ventilation, O2 therapy and non-invasive ventilation • MR810 Respiratory Humidifier System – entry level system – ventilation and O2 therapy – optional heated breathing circuit • Infant CPAP System – proprietary bubb
Slide 5: Expanding Opportunities and Respiratory & Acute Care Update
Expanding Opportunities Invasive Ventilation Non-invasive Ventilation O2 Therapy Humidity Therapy Surgical Insufflation COPD Humidity Therapy 9 Respiratory & Acute Care Update • 8% revenue growth NZ$, est. 14% underlying constant currency • Lapping first half last year; US GPO contracts, consumable
Slide 6: Obstructive Sleep Apnea
Obstructive Sleep Apnea • Temporary closure of airway during sleep • Can greatly impair quality of sleep, leading to fatigue; also associated with hypertension, stroke and heart attack • Estimated US$2.2+ billion worldwide market, growing ≈10-15% • Potentially 50-60 million affected worldwide • Most
Slide 7: Mask Range and OSA Update
Mask Range Four interface categories • Nasal Masks – patented glider – FlexiFit™ technology – New Zest Petite, Plus • Full Face Mask – under chin seal – patented glider – FlexiFit™ – new Forma™ with Flexifoam™ • Oral Mask – Oracle™ oral interface • Nasal Pillows Mask – very light – Opus 360™ 13 OSA
Slide 8: Research & Development and Manufacturing
Research & Development • 250 engineers, scientists, physiologists* • R&D expenses increased 23% in NZ$ for first half • 6.5% of operating revenue • Product pipeline includes – flow generators – new range – masks – respiratory consumables • 79 US patents, 73 US pending, 292 ROW, 212 ROW pending* * at
Slide 9: Global Presence and Revenue Growth US$
Global Presence • Direct/offices – hospitals, home care dealers Asia Pacific – sales/support offices in North America, /Other Europe, Asia, South America, Middle East 22% and Australasia – 500 staff in 30 countries – ongoing international expansion, new distribution centres, Japan, Canada • Distribu
Slide 10: Balance Sheet and Outlook FY2010
Balance Sheet • NZ$106.5M net debt • NZ$278.3M total shareholders equity • NZ$477.5M total assets • Annualised 47% pre-tax return on equity, annualised 26% on total assets • NZ$600M of hedging in place • US$62M hedge book close-out, Sep – Oct, NZ$30M realised 19 Outlook FY2010 • Accelerating growth
Slide 11: Growth Drivers
Growth Drivers Consistent strategy • Continue to improve existing product lines • Develop complementary products/consumables • Target new medical applications – e.g. COPD, NIV, O2 therapy, surgery • Increase international presence 21
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