Slide 1: Compumedics Limited Corporate Presentation
For personal use only May, 2015 Compumedics Limited Corporate Presentation – February 2015 1
Slide 2: Investor Overview
Investor Overview For personal use only • Core business: returned to growth. • Neurology growth opportunity: New market for CMP. We have the leading brain source localisation software. - Asian EEG - largest segment of $886.8 m brain monitoring device market - Asian EEG - 2013 $81.8m PA to 2018 $133.
Slide 3: Who is Compumedics?
Who is Compumedics? For personal use only • Compumedics is a leading global, innovative developer and manufacturer of medical devices for: – Diagnosing sleep disorders – Monitoring neurological disorders including long-term epilepsy monitoring (LTEM) – Highly sophisticated brain research – Ultrasoni
Slide 4: Directors & Executive Team
Directors & Executive Team Key Management For personal use only David Burton, Ph.D. Executive Chairman, CEO Founder, Tenure 26yrs NED Mr. David Lawson Mr. Alan Anderson Chief Financial Officer & Leading USA Attorney Company Secretary CMP Tenure : 11 yrs CMP Tenure 13 yrs Mr. Warwick Freeman Kerry Hu
Slide 5: A Tradition of Innovation
A Tradition of Innovation For personal use only Comperio DQ Summit IP SynAmps2 2004 2005 Somté 2003 2001 Siesta 802 Siesta 2000 2005 P Series 1994 S Series 1987 Somté PSG 2006 Neuvo LTM SynAmpsRT 2007 2008 CURRY6 Somnilink SPAP 2009 2010 Grael HD Somfit Somté PSG 2.0 2010 2015 2011 5
Slide 6: Established Client Profile
Established Client Profile For personal use only 6
Slide 7: Core Sleep and Brain Diagnostic Monitoring Business
For personal use only Core Sleep and Brain Diagnostic Monitoring Business 7
Slide 8: Core Business Overview
Core Business Overview For personal use only • Core business has now recovered post GFC and high AUD • We continue to transition product manufacturing and assembly offshore, which will result in reducing the cost of manufacturing to between 1/3 and 1/2 while maintaining premium functionality • We ha
Slide 9: Product Matrix
Product Matrix For personal use only Product Used for Bought by Average selling price Grael Sleep and Hospitals, doctors and USD17,500 neurology service providers Somte PSG Sleep Hospitals, doctors and USD10,000 service providers Siesta Sleep and Hospitals, doctors and USD18,000 neurology service pr
Slide 10: Revenue Composition
Revenue Composition at ≈$15.6m 31 December 2014 For personal use only By geographic region By product/market Tech. Europe, Supply Service, 18% USA, Items, 9% Sleep, 32% 11% 32% Asia, 33% Brain Blood Neuro, Aust, Flow, Brain 11% 17% 20% Res, 17% Software upgrades 5 to 10% of system sales Compumedics
Slide 11: Historical First Half Revenues
Historical First Half Revenues 6 months to 31 December For personal use only Shipped and invoiced 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 H1 FY13 H1 FY14 H1 FY15 F'cast H2 FY15 H1 Rev F'Cast Rev
Slide 12: Historical First-Half Earnings
Historical First-Half Earnings 6 months to 31 December For personal use only NPAT EBITDA 1 2 0.8 1.8 0.6 1.6 1.4 0.4 1.2 0.2 1 0 0.8 H1 FY13 H1 FY14 H1 FY15 H2 Fcast -0.2 FY15 0.6 -0.4 0.4 -0.6 0.2 -0.8 0 H1 FY13 H1 FY14 H1 FY15 H2 Fcast -1 FY15 NPAT F'Cast NPAT EBITDA F'Cast EBITDA Full year EBITDA
Slide 13: Employee Composition
Employee Composition at ≈130 staff 31 December 2014 For personal use only By geographic region By function Asia, Mid Admin East, Sales & 2% & Fin, Quality, Mark, Europe, 1% USA, 12% 2% 24% 24% 32% Manuf, 28% Service, Aust, R&D, 12% 41% 22% Compumedics has its Head Office in Melbourne, Australia with
Slide 14: Tide turning post GFC and high AUD
Tide turning post GFC and high AUD For personal use only 4 45 40 3 35 2 30 25 AUDm AUDm 1 20 0 15 FY08 FY09 FY10 FY11 FY12 FY13 FY14 10 -1 5 -2 0 EBITDA Revenues 120 100 80 60 40 20 0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 AUD/USD Average 14
Slide 15: Growth Drivers – Core business
Growth Drivers – Core business For personal use only • Compumedics/NeuroScan LTEM innovative brain analysis software and high performance amplifiers are unrivalled world class technology • We have >20,000 systems installed worldwide. Strong reputation and brand name. Customers like buying from Compu
Slide 16: Growth Strategies – core business
Growth Strategies – core business USA Clinical Sales Force Expansion For personal use only More sales representatives > more revenue Past for both sleep and neurology USD4.5m FY2014 - Now USD8.0m FY2016 USD12.5m FY2017 USD15.5m
Slide 17: China - We are the number Premier Supplier
China - We are the number 1 Premier Supplier Compumedics Clients in China For personal use only China Sales – USD’s 4 2 0 FY12 FY13 FY14 17
Slide 18: Earnings improvement activities
Earnings improvement activities For personal use only • Outsourcing Manufacturing – lower cost regions of China and Taiwan • EEG cap production completely relocated at Dec 14 and Grael and Somte production to be completed by July 2015 • Offshore purchasing houses to increase quality and drive down c
Slide 19: Strategic Value Realisation
For personal use only Strategic Value Realisation 19
Slide 20: Strategic value realisation
Strategic value realisation For personal use only The company is currently considering options to simplify its business and unlock significant value for shareholders by: • Spinning out its Germany based DWL Transcranial Doppler (TCD) ultrasound blood flow business • Spinning out its Brain Research b
Slide 21: DWL Spin out opportunity
DWL Spin out opportunity For personal use only • DWL is the founding business and global leader in TCD ultrasound. • Short term growth opportunities in 3D Transcranial Colour Doppler (TCCD)/Duplex Imaging • Medium term growth opportunities in TBI and Stroke Market • 3D TCCD is a US$900m vs DWL’s cur
Slide 22: Brain Research Spin Out Opportunity
Brain Research Spin Out Opportunity For personal use only • Enormous neurology devices demand – est. $7bn pa by 2017 up from $2bn in 2010 • Growth outlook – significant for Neuroscan CURRY – World’s best of class brain analysis software • CURRY multi modal brain analysis technology – traditional res
Slide 23: eHealth – Next Phase in Compumedics Growth
For personal use only eHealth – Next Phase in Compumedics Growth 23
Slide 24: Medical Innovations – eHealth
Medical Innovations – eHealth For personal use only • Compumedics is developing eHealthMedics, an online professional sleep services platform • Sleep diagnostics is traditionally delivered as a lab-based (equipment intense) or Home Sleep Testing service eHealthMedics has re-architected its solution
Slide 25: eHealthMEDICS - Competitive Advantage
eHealthMEDICS - Competitive Advantage For personal use only • The scalability and cost efficiencies of eHealthMedics vs traditional sleep diagnostics allow the service to accommodate very large sleep-disordered populations, even in regions where private or public health insurance is limited or non-e
Slide 26: eHealthMEDICS – Making Progress
eHealthMEDICS – Making Progress • eHealthMedics has already locked in excess of $10m of forward orders over the next three For personal use only years (primarily in China) for its professional services platform. Initial pilot sites commence in May and June this year • Operational systems have been d
Slide 27: eHealthMEDICS services platform
eHealthMEDICS - We bring to the table a eHealth services platform that leverages core competencies built over 25 years For personal use only mHealth Product Ecosystem: Required Competencies • Inc. medical data security [traditional business] (FDA, CE, TGA compliant, US est. 1987 HIPPS) • Medical gra
Slide 28: Investor Summary
Investor Summary For personal use only • Core business returned to growth: FY15: $33m revenue, >10% sales growth • Sales force expansion, neurology market opportunity and earnings improvement initiatives to drive growth of core business • Intense company focus on improving returns to shareholders. C
Slide 29: OneMedForum 2011 - San Francisco
For personal use only OneMedForum 2011 - San Francisco Wednesday 12 January 2011 29