Somnomed Limited · ASX:SOM
Somnomed — Investor Presentation (September 2008)
23 slides from Somnomed's investor presentation, Sep 10, 2008
Slide 1: Investor Presentation September 2008
For personal use only Investor Presentation September 2008 This presentation contains forward-looking statements that involve risks and uncertainties. These forward-looking statements are not guarantees of SomnoMed's future performance and involve a number of risks and uncertainties that may cause a
Slide 2: SomnoMed company overview
For personal use only SomnoMed is a Sydney-based ASX-listed company (ASX code: SOM) which was formed in 2004 to commercialise its patented mandibular advancement splint, the SomnoDent® MAS. The SomnoDent® MAS is a clinically-tested medical device which is evidence based to be highly effective in tre
Slide 3: SomnoMed's Growth Story
SomnoMed’s Growth Story For personal use only • 2004 - Listed on the Australian Stock Exchange (ASX: SOM) • 2005 - Start up and infrastructure development • 2006 - Expansion into US market • 2007 - Restructure and new Management Expansion into European and Asian market • 2008 - SomnoDent® MAS is a l
Slide 4: Obstructive Sleep Apnea (OSA)
Obstructive Sleep Apnea (OSA) ~ a night time breathing disorder For personal use only • The upper airway narrows, or collapses during sleep • Periods of apnea may interrupt breathing hundreds of times a night Key signs and symptoms • Excessive daytime sleepiness • Grogginess and morning headaches •
Slide 5: OSA: a global healthcare challenge
Obstructive Sleep Apnea (OSA) ~ a global healthcare challenge For personal use only • 100-200 million people suffer from obstructive sleep apnea (OSA), causing long- term health risks • Increased risk of heart disease, high blood pressure, stroke, and impotency • OSA increases risk of heart attack b
Slide 6: OSA Global Market Size Projection
OSA Global Market Size Projection For personal use only • 15 – 20% growth rate p.a. • > 60% of diagnosed patients 6,000,000 untreated • Dramatic shift expected to more 5,000,000 comfortable MAS device 4,000,000 # units 3,000,000 MAS CPAP 2,000,000 1,000,000 0 2007 2010 2013 2014 2018 • CPAP market e
Slide 7: OSA treatment options
OSA treatment options For personal use only Surgery Irreversible Success rate *50% Painful, slow recovery Very expensive CPAP Success rate *100% (Continuous Positive Airway Compliance <50% Pressure) Expensive MAS device Success rate *50-70% (Mandibular Advancement Splint) Comfortable Compliance >90%
Slide 8: How does the SomnoDent device work?
How does the SomnoDent ® device work? For personal use only • SomnoDent ® prevents the collapse of the lower airways, which causes a medical condition called Sleep Apnea” • Device holds the lower jaw forward, which tightens these muscles to prevent collapse and keep the airways free from obstruction
Slide 9: SomnoDent Mandibular Advancement Splint (MAS)
SomnoDent ® Mandibular Advancement Splint (MAS) For personal use only • Oral device with a patented “fin coupling” component • FDA, TGA, CE/ISO 13485, Swiss Medic approved and certified • Custom made for each individual patient • Evidence based and clinically-tested for more than 4 years • Clinicall
Slide 10: SomnoDent product range
For personal use only SomnoDentTM SomnoDentTM Edentulous Acryl SomnoDentTM Flex MAS Gold Standard
Slide 11: FY 07-08 Turn around and foundation
For personal use only FY 07-08 “Turn around and foundation”
Slide 12: SomnoMed in FY 07-08
SomnoMed in FY 07-08 For personal use only • 2007/08 - Increased global sales by over 80% to 7,000 units - Total revenue increase by over 60% to A$ 3.9 million - Operating loss before corporate overheads reduced by 42% - Strong balance sheet with 5.4 million in cash (30.06.08) - Re-branding SomnoMed
Slide 13: SomnoMed in FY 07-08 continued
SomnoMed in FY 07-08 For personal use only • 2007/08…..continued - Exclusive worldwide rights on new polymer SMH BFlex – FDA registered - Built a global network of license and distribution partners in 10 countries - Established European headquarter in Zurich, Switzerland – SomnoDent AG - Opening of
Slide 14: North America Drives Volume Growth
North America Drives Volume Growth For personal use only Total North America APAC Europe
Slide 15: Strong Growth in Gross Margin
Strong Growth in Gross Margin For personal use only 105% Growth in Sales Revenue since 05/06 144% Growth in Gross Margin since 05/06
Slide 16: Significant Reduction in Cash Burn
Significant Reduction in Cash Burn For personal use only APAC North America Europe
Slide 17: Operating losses before Corporate Expenses reduced
Operating losses before Corporate Expenses reduced by over 70% since FY 05-06 For personal use only
Slide 18: Investing for Future Growth in Europe & Asia
Investing for Future Growth in Europe & Asia For personal use only -$800 -$846 -$1,405 -$2,428 -$1,326 -$3,389 -$2,731 -$3,274 Europe start up & APAC development cost -$4,188
Slide 19: Capital structure, funds available and shareholding structure
Capital structure, funds available and shareholding structure For personal use only Total shares on issue 768 million Market capitalization $ 25 million (30.06.2008) Cash available $ 5.4 million (30.06.2008) Current cash burn $ 150,000/month (based on 9 months 01.10.2007 - 31.03.2008) Last capital r
Slide 20: FY 08-09 From foundation to growth
For personal use only FY 08-09 “From foundation to growth”
Slide 21: Strategic Objectives in FY 08/09
Strategic Objectives in FY 08/09 For personal use only • 2008/09 - Increase global sales worldwide by more than 100% to 14,000 devices - Sales revenue increase from A$ 3.6 Mio to over A$ 7 million - Profitable operations North America, Europe, AsiaPacific by the end of FY 08/09 - International expan
Slide 22: Growth Projection for SomnoDent MAS
Growth Projection for SomnoDent® MAS For personal use only 25,000 2 2 ,0 0 0 20,000 #units 15,000 14 ,0 0 0 10,000 7 ,0 0 0 5,000 3 ,5 0 0 2 ,5 0 0 1,5 0 0 0 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 Source: Company data and estimates
Slide 23: SomnoMed Contacts
SomnoMed Contacts For personal use only Chairman Dr Peter Neustadt Chief Executive Officer Mr Ralf Barschow Address Level 3, 20 Clarke Street Crows Nest, NSW, 2065 Australia Telephone +61 (0)2 9467 0400 Website www.somnomed.com.au