Resmed Inc. · NYSE:RMD
Resmed — Q4 FY2020 Earnings Presentation
22 slides from Resmed's earnings presentation, Aug 5, 2020
Slide 1: 4Q20 Earnings Conference Call
4Q20 Earnings Conference Call August 5, 2020
Slide 2: Presentation of financial information & forward-looking statements
Presentation of financial information & forward-looking statements Historical financial and operating data in this presentation reflect the consolidated results of ResMed Inc., its subsidiaries, and its legal entities, for the periods indicated. This presentation includes financial information prepa
Slide 3: Our mission is to change 250 million lives in 2025
Our mission is to change 250 million lives in 2025 We're proud to offer digital and connected health solutions that help those with sleep apnea, COPD and other respiratory diseases live happier, healthier lives in the comfort of home or care setting of their choice During the last 12 months, we chan
Slide 4: ResMed at a glance
ResMed at a glance KEY STATISTICS1 Revenue by Business Revenue by Region FY 2020 FY 2020 FY2020 REVENUE $3B FOUNDED 1989 Americas 12% 12% Sleep and LISTED (NYSE, ASX) 1995, RMD Devices Respiratory Care MARKET CAP ~$29B 51% Masks & Other 53% Europe, Asia 37% 35% and Other HEADQUARTERS San Diego, CA O
Slide 5: ResMed 2025: a patient-centric, digitally-enabled strategy
ResMed 2025: a patient-centric, digitally-enabled strategy Expect impact of COVID-19 will accelerate this strategy 250 million lives improved in out-of-hospital healthcare in 2025! Purpose Empower people to live happier, healthier and higher quality lives in the comfort of their home Growth Focus Gl
Slide 6: Priorities that guide our daily focus
Priorities that guide our daily focus Our triple aim: I. Slow chronic Grow and differentiate Deliver world-leading Build the world's best disease progression our core sleep apnea, medical devices and software solutions COPD, and asthma digital health technology network for healthcare II. Reduce over
Slide 7: Our response to COVID-19: Focused on preservation of life
Our response to COVID-19: Focused on preservation of life Our ResMed Team Our Stakeholders Business Continuity • Work-from-home policy for all • Fair and ethical allocation of products • Established key workstreams and a employees when job can be performed globally supported by an epidemiological ce
Slide 8: Q4 and full-year FY2020 highlights
Q4 and full-year FY2020 highlights STRATEGIC UPDATES Q4 2020 FINANCIAL HIGHLIGHTS FY2020 FINANCIAL HIGHLIGHTS • Rapidly pivoted business to support • Revenue increased 9% to $770.3M, • FY20 revenue $3B, up 13% YOY, COVID-19 pandemic through up 10% constant currency 15% constant currency increased ve
Slide 9: Business updates
Business updates SLEEP RESPIRATORY CARE SOFTWARE AS A SERVICE (SaaS) • Beginning to see signs of recovery in • Increased ventilator manufacturing • Good demand for resupply solutions new patient diagnosis – varies by 3.5x over prior year as customers focus on resupply to market and geography • Launc
Slide 10: Financial Results
Financial Results
Slide 11: Q4 FY20 financial results
Q4 FY20 financial results Revenue by Business Q4 FY20 12% Devices Revenue ($M) Non-GAAP Operating Non-GAAP EPS FCF ($M) Income ($M) 53% Masks & Other 35% +10% +24% +40% +161% $800.0 $300.0 $1.40 $1.33 $350.0 OOH SaaS $770.3 $312.3 $750.0 $250.0 $243.4 $1.20 $300.0 $705.0 $196.2 $1.00 $0.95 $250.0 $2
Slide 12: FY2020 financial results
FY2020 financial results Revenue by Business FY2020 12% Devices Revenue ($B) Non-GAAP Operating Non-GAAP EPS FCF ($M) Income ($M) 51% Masks & Other +15% +24% +31% +81% 37% $1,000.0 $5.00 $4.76 $800.0 OOH SaaS $3.0 $3.0 $890.9 $706.9 $900.0 $4.50 $700.0 $2.8 $800.0 $716.3 $4.00 $3.64 $2.6 $600.0 $700
Slide 13: Strong balance sheet and recurring free cash flow
Strong balance sheet and recurring free cash flow Operating Cash Flow ($M) Capital Expenditures ($M) Free Cash Flow ($M) Total debt outstanding $1,176M $802.3 $706.9 $95.3 Less: Cash & cash equiv. $463M $505.0 $68.7 $442.4 $459.1 $62.6 $390.4 Net Debt $713M Unused borrowing capacity $1,090M FY2018 F
Slide 14: Track record of strong financial returns for shareholders
Track record of strong financial returns for shareholders Revenue ($B) Non-GAAP Operating Income ($M) Non-GAAP EPS 12% CAGR 16% CAGR 13% CAGR $3.0 $891 $4.76 $1.7 $429 $2.57 FY2015 FY2020 FY2015 FY2020 FY2015 FY2020 Total shareholder return, TSR (NYSE shares as of 6/30/2020): 1-yr 59% | 3-yr 157% |
Slide 15: Capital allocation overview
Capital allocation overview Higher Priority Reinvest for Reinvest in product development for $2.2B Deployed high-return organic growth; 7% of 2020 3-Year History Growth revenue invested in R&D 3% Actively evaluate potential acquisitions but 24% Pursue M&A pursue only those that accomplish long-term
Slide 16: Driving long-term shareholder value
Driving long-term shareholder value Growth & Innovation Market Dynamics Financial Results • Global leader in connected health for • Underpenetrated markets in sleep • Historical revenue and profit growth sleep and respiratory care and COPD • Recurring revenue • Long-term growth opportunities • Healt
Slide 17: Contact Investor Relations
Contact Investor Relations Phone: (858) 836-5971 Email: investorrelations@resmed.com Website: investor.resmed.com
Slide 18: Appendix
APPENDIX
Slide 19: Striving for excellence in environmental, social, and governance processes
Striving for excellence in environmental, social, and governance processes Recognized by others for leading in this space: • #18 on Forbes & Just Capital’s “2019 Just 100,” #1 in Healthcare Equipment and Services • #125 on WSJ’s 2019 Management Top 250 of the U.S.’s most well-run companies for custo
Slide 20: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures The measures “non-GAAP gross profit” and “non-GAAP gross margin” excludes amortization expense from acquired intangibles related to cost of sales and are reconciled below: (Unaudited; $ in thousands, except for per share amounts) Three Months Ended Twelv
Slide 21: Reconciliation of non-GAAP financial measures, cont'd
Reconciliation of non-GAAP financial measures, cont’d The measure “non-GAAP income from operations” is reconciled with GAAP income from operations below: (Unaudited; $ in thousands, except for per share amounts) Three Months Ended Twelve Months Ended June 30, June 30, June 30, June 30, 2020 2019 202
Slide 22: Reconciliation of non-GAAP financial measures, cont'd
Reconciliation of non-GAAP financial measures, cont’d The measure “non-GAAP net income” and “non-GAAP diluted earnings per share” are reconciled with GAAP net income and GAAP diluted earnings per share in the table below: (Unaudited; $ in thousands, except for per share amounts) Three Months Ended T