Slide 1: For personal use only
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Slide 2: Overview
For personal use only Over view Financial update – highlights Financial update - details Business unit revenues Geographic revenues Key activities completed Early FY2008 performance Outlook – financial Outlook – technology Recap Slide 2
Slide 3: Financial update - highlights
For personal use only Financial update - highlights Major Turnaround in financial performance continues FY2007 profitable and operating cash positive Sales stabilised despite adverse impact of USD/AUD On-going substantial reduction in operating costs Bank debt significantly reduced R&D pipeline main
Slide 4: Financial update - details
For personal use only Financial update - details Gross margins up 7% over the previous year to 59% Operating expenses decline $2.8m for FY2007 compared to FY2006. Down $5m compared to FY2005 EBITDA up to $1.3m profit compared to prior year loss of $0.5m Profit after tax at $0.1m is $1.7m better than
Slide 5: Financial update - details
For personal use only Financial update - details Borrowings were substantially reduced from $6.4m in the . prior year to $3.4m at end of FY2007 Borrowing costs at $0.9m were 80% higher than the prior year’s $0.6m Sales in USA (+11%), Europe (+16%), Australia (+5%) and DWL (+6%) were up but not enoug
Slide 6: Four-year financial summary
For personal use only Financial update - details 2004 2005 2006 2007 actual actual actual actual Revenues ($m) 34.0 38.2 37.7 36.7 Margins % 57% 53% 52% 58% Other income 0.4 0.3 1.3 0.1 Operating Expenses 16.8 24.3 22.1 19.5 EBITDA 2.9 (2.6) (0.5) 1.3 NPAT 2.4 (4.7) (1.6) 0.1 Slide 6
Slide 7: Total group sales stabilised despite rising Australian dollar
For personal use only Financial update - details Total group sales stabilised despite rising Australian dollar and significant cost reductions Revenues stable at constant 40 exchange rates DWL acquisition 35 30 25 Neuroscan acquisition AUDm 20 15 10 5 0 2002 2003 2004 2005 2006 2007 Slide 7
Slide 8: Gross margins improving
For personal use only Financial update - details Gross Margins % improving as a result of on-going restructuring and cost improvements programs and despite the surging Australian dollar 60 50 40 % 30 20 10 0 2002 2003 2004 2005 2006 2007 Slide 8
Slide 9: Operating expenses continue to decline
For personal use only Financial update - details Operating Expenses continue to decline - $5m over the last two years 25 DWL acquisition 20 Neuroscan 15 acquisition AUDm 10 5 0 2002 2003 2004 2005 2006 2007 Slide 9
Slide 10: EBITDA returned to profitability
For personal use only Financial update - details EBITDA returned to profitability at current revenue levels 3 2 1 AUDm 0 -1 -2 -3 2002 2003 2004 2005 2006 2007 Slide 10
Slide 11: Bank debt paid down
For personal use only Financial update - details Bank debt paid down through some fairly tough times 9 Neuroscan 8 acquisition 7 DWL acquisition 6 5 AUDm 4 3 2 1 0 2002 2003 2004 2005 2006 2007 Slide 11
Slide 12: Bank costs escalate despite debt repayment
For personal use only Financial update - details Bank costs escalate despite debt repayment 0.7 0.6 0.5 0.4 AUDm 0.3 0.2 0.1 0 2002 2003 2004 2005 2006 2007 Slide 12
Slide 13: Foreign exchange impacts adversely
For personal use only Financial update - details Foreign exchange impacts adversely in current financial year Exchange movements relate 0.6 largely to consolidation of off shore group subsidiaries 0.4 0.2 0 AUDm -0.2 -0.4 -0.6 -0.8 -1 2002 2003 2004 2005 2006 2007 Slide 13
Slide 14: Business unit revenues
For personal use only Business unit revenues Business unit revenues stable across all business units with annuity-style supplies revenues increasing 20 18 16 14 12 AUDm 10 8 6 4 2 0 2002 2003 2004 2005 2006 2007 Sleep Brain research EEG/DWL Supplies/Service Slide 14
Slide 15: Geographic revenues
For personal use only Geographic revenues 2007 FY MI 2005FY Asia 1% Australia Australia 13% 14% Asia 11% 17% DWL 16% DWL Medical 15% Innovation (MI) USA 2% 45% Europe 9% USA Europe Australia 43% 14% Asia 12% 20% 2006 FY DWL 14% Europe 11% USA 43% Slide 15
Slide 16: Key achievements completed in FY2007
For personal use only Key achievements completed in FY2007 New distributors signed up for Europe with incremental sales commitments of $10m over the next three years Sub leasing of 1/3 of property in Abbotsford (saving $200k pa approximately from May 2006) Relocation of US office from El Paso, Texas
Slide 17: Early FY2008 performance update
For personal use only Early FY2008 performance update Business trending to plan. Business starting to pick up again in the Northern hemisphere following the annual summer slow down in July and August. Cost containment continues. Australian dollar still high to the US dollar but looking softer. Austr
Slide 18: Outlook - financial
For personal use only Outlook - financial International market expansion of the core sleep business. Expansion of core sleep-diagnostic and monitoring technology into the associated fields of neurology and cardiology. Expand recurring revenue base (sensors, electrodes and other consumables). Growth
Slide 19: Outlook - financial
For personal use only Outlook – financial Maximise penetration of existing products into existing markets. Roll out of new generation hardware and software for existing products. Continuing vigilance on cost controls and further cost reduction possibilities. Tight management of working capital with
Slide 20: Outlook - technology
For personal use only Outlook - technology DWL Blood Flow Neuroscan Diagnostics Sleep Diagnostics Neuro Neuro Diagnostics Medical Supplies Building a global medical diagnostic company With Compumedics’ core strategic edge being Sleep Diagnostics Leveraging this technology into related fields includi
Slide 21: Outlook - technology: New Products
For personal use only Outlook - technology New Products Nexus Profusion PSG 3 Somte PSG Neuvo Slide 21
Slide 22: Outlook - technology
For personal use only Outlook - technology No other company has the world’s leading technology and/or market position covering 3 of the key rapid growth new generation medical technology market first discovered in the 1980s •Clinical Sleep •Transcranial Doppler (TCD) •Computerised Cognitive Neurosci
Slide 23: Outlook - technology: Sleep Market
For personal use only Outlook - technology Sleep Market Pioneering of computerised PSG (CMP;1987) and CPAP treatment discovery [Sullivan, CE (1981), Sydney Australia] 40% of the Australian Clinical EEG Market and 70% of the Australian Sleep Diagnostics Market. 10% USA market share and growing in Sle
Slide 24: Outlook - technology: Transcranial Doppler Market
For personal use only Outlook - technology Transcranial Doppler (TCD) Market Developed by Dr. Rune Aaslid in 1982, today DWL’s client DWL has a strong market share in Germany and well established distribution networks in Europe World’s firsts include : ● Bilateral Doppler , ● Emboli differentiation
Slide 25: Outlook - technology: Cognitive Neuroscience/EEG
For personal use only Outlook - technology Computerised Cognitive Neuroscience/EEG brain function Pioneered by Neuroscan in 1989 Commands 90% of the US Market for Research EEG applications and a significant market share worldwide. Sells its products in over 50 countries worldwide to over 1500 univer
Slide 26: Business Recap
For personal use only Business Recap Group returned to profits at existing sales levels after two years of significant restructuring Group generates positive operating cash compared to prior year Bank debt cut in half during the current year Cost vigilance to remain R&D product pipeline strong Focus
Slide 27: For personal use only
For personal use only Slide 27