Slide 1: 2019 Full Year Results
2019 Full Year Results Investor Presentation Michael Kavanagh, CEO and President McGregor Grant, CFO and Company Secretary
Slide 2: Disclaimer
DISCLAIMER This presentation is intended to provide a general outline only and is not intended to be a definitive statement on the subject matter covered in it. The information in this presentation, whether written or verbal, has been prepared without taking into account the commercial, financial or
Slide 3: FY19 Highlights
FY19 HIGHLIGHTS “Nanosonics has continued to go • Total revenue of $84.3 million, up 39% on prior corresponding period. from strength to • Capital revenue of $32.8 million, up 28% on prior strength delivering corresponding period. • Consumables and service revenue of $51.5 million, up 47% excellent
Slide 4: Our Mission
OUR MISSION Company Overview Key Corporate Data 1 • ASX 200 listed healthcare company specialised Share price $5.01 in the development and commercialisation of Shares infection control solutions on issue 300.0 million • First product, trophon® – proprietary Market automated technology for low temper
Slide 5: Installed Base
Global INSTALLED BASE 20,930 17,740 Global installed base up 18% 14,160 10,130 6,250 2015 2016 2017 2018 2019 Global installed North America 18,570 base grew 18% to 15,620 North America 20,930 installed base up 19% 12,400 8,700 5,000 units 2015 2016 2017 2018 2019 Europe/Middle East 880 730 Europe/M
Slide 6: Nanosonics Revenue Profile: Range of Selling Models
RANGE OF SELLING MODELS 1 Direct Channel Distribution Channel Managed Full Service Capital Capital Sale Equipment Service Rental Distribution Reseller Market • Capital equipment • Nanosonics provides • Customer rents capital • Distributor purchases • Distributor purchases sold upfront with capital e
Slide 7: FY19 Financial Results Review
FY19 FINANCIAL RESULTS REVIEW
Slide 8: Revenue
REVENUE Total Revenue ($m) 84.3 67.5 Total Revenue 60.7 * up 39% to 42.8 Total Revenue up 39% $84.3m 22.2 2015 2016 2017 2018 2019 Capital Revenue ($m) Consumables / Service Revenue ($m) Consumables / Service up 47% 51.5 Capital Revenue up 28% 35.1 32.8 25.6 Service / Parts * Reduction in 2018 reven
Slide 9: Revenue Mix by Region
REVENUE MIX BY REGION NORTH AMERICA • Continued strong IB growth driving both capital Total Revenue ($m) Capital Revenue ($m) Consumables / Service Revenue ($m) and consumable revenue growth 76.5 • Increasing awareness on importance of high level disinfection for all semi critical probes, including
Slide 10: Operating Expenses
OPERATING EXPENSES Operating Expenses ($m) FY19 Quarterly Operating Expense ($m) 49.2 42.6 Continued investment 37.0 in our growth strategy, 32.1 including an increase in headcount by 27% 22.8 to 286 employees, expanding our regional 15.7 operations, supporting our 10.7 10.8 12.0 product expansion g
Slide 11: Profit Before Tax and Cash and Cash Equivalents
PROFIT Profit Before Tax ($m) BEFORE 16.8 • Profit before tax up 201% on TAX 13.9 prior corresponding period $16.8m 5.6 (5.5) 0.1 2015 2016 2017 2018 2019 CASH AND CASH Cash and Cash Equivalents ($m) 69.4 72.2 EQUIVALENTS 63.0 • Cash and cash equivalents up $2.8 million supporting ongoing growth $72
Slide 12: Profit and Loss Summary
PROFIT AND LOSS SUMMARY $ million FY19 FY18 Change Highlights Revenue 84.3 60.7 39% • Revenue of $84.3 million ($78.5 million in constant currency1), up 39% Gross profit 62.8 45.3 39% (29% in constant currency). % 74.5% 74.6% • Gross profit of $62.8 million, Operating expenses or 74.5% of sales. Sel
Slide 13: Income Tax
INCOME TAX Key Points 2019 2018 Income tax $m $m • Deferred tax assets recognised Income tax expense/(benefit) 3.2 (0.2) following assessment of operations of the Group. 2019 2018 • Deferred tax asset attributable Components of Deferred Tax Asset (DTA) $m $m to carried forward losses relates to the
Slide 14: Significant Global Market Opportunity
SIGNIFICANT GLOBAL MARKET OPPORTUNITY Installed Base Opportunity 1 Market Penetration Cumulative Installed Base 20,930 • Increasing number of international guidelines requiring Global 14,160 17,740 high level disinfection (HLD) supporting growing 17% international demand. 120,000 Units 6,250 10,130
Slide 15: Expanding Global Presence
EXPANDING GLOBAL PRESENCE Geographical expansion is key to the Company’s strategic growth agenda. Nanosonics distributes its products in 21 countries, either through direct operations or via distributor partners. Norway Denmark South Korea Partnership in place with GE Healthcare Partnership in place
Slide 16: Market Expansion Europe
MARKET • New agreement established with GE Healthcare EXPANSION for distribution in Denmark, Finland, Spain and Portugal effective February 2019. This new EUROPE agreement is in addition to existing agreements with GE Healthcare in Sweden and Norway. • A new distributor was also appointed for Switze
Slide 17: Market Expansion Japan
MARKET FY19 Key Highlights: • Japanese entity (Nanosonics Japan K.K.) established. EXPANSION • Preliminary clinical study completed: JAPAN ––Over 90% of probes were found to be contaminated; and ––Of the contaminated probes over 50% were found to harbour potentially pathogenic bacteria including met
Slide 18: Market Expansion Asia Pacific
MARKET EXPANSION ASIA PACIFIC China Market assessment activities underway across a • Regional President for Asia Pacific appointed to lead expansion strategy. number of • Market assessment commenced in China with Asia Pacific visits to large hospitals, the Chinese Centre for Disease control and regu
Slide 19: trophon2 Launched in Key Major Markets
TROPHON®2 LAUNCHED IN KEY MAJOR MARKETS • trophon®2 launched in North America, Europe and Australia during the year. • Positive customer reaction to new design features, functionality, Smart protection plus new AcuTrace, traceability solution. trophon2 delivers protection for patients, staff • Adopt
Slide 20: Replacement/Upgrade Opportunity
REPLACEMENT/ Replacement/upgrade expected after 5-7 years UPGRADE Age distribution of global installed base at June 2019 OPPORTUNITY 20% of IB Significant replacement/ 15 upgrade opportunity as installed base ages 10 and new generation 5 devices are introduced to market 0 Age 1yr 2 yrs 3 yrs 4 yrs 5
Slide 21: New Product Development
NEW PRODUCT Substantial investment made in new product development with important milestones met throughout the year towards targeted DEVELOPMENT introduction of the next significant new product for the end of FY20 (subject to regulatory approval). • Planned investment of $15 million in FY20. Signif
Slide 22: Our People
OUR PEOPLE OUR BOARD Nanosonics has a highly experienced and dedicated team of professionals leading the development and implementation of our strategic growth agenda Left to right: Steven Sargent, David Fisher, Marie McDonald, Richard England, Michael Kavanagh, Geoff Wilson and Maurie Stang. In FY1
Slide 23: Growth Strategies
GROWTH STRATEGIES Expand product portfolio Goal of introducing a range of new products over time targeting the first by end of FY20 (subject to regulatory approval). Establish trophon® Enter new markets as Standard of Care Entry into new markets Continue to establish trophon as with trophon and stan
Slide 24: Business Outlook
BUSINESS OUTLOOK FY20 Nanosonics expects: • Continued growth in installed base in North America with FY20 adoption similar to FY19. • Adoption in Europe to grow from: • Expanded geographical reach, stronger fundamentals for adoption and growing awareness; • Investment in Nanosonics European infrastr
Slide 25: Thank You
THANK YOU