Fisher & Paykel Healthcare Corporation Limited · NZX:FPH
Fisher & Paykel Healthcare — NZX Australasian Media Day 2003
20 slides from Fisher & Paykel Healthcare's conference presentation, Nov 12, 2003
Slide 1: NZX Australasian Media Day
Fisherd Paykel HEALTHCARE NZX Australasian Media Day 12 November 2003 Fisher& Paykel HEALTHCARE
Slide 2: Investment Highlights
Investment Highlights _ ¢ Leading player in heated humidification devices and consumables for a variety of respiratory markets * Estimated US$1.2 billion+ market opportunity ¢ High level of innovation * Global presence * Competitive NZ cost base * Strong financial performance ° Experienced managemen
Slide 3: Operating Results US$
Operating Results US$ H1FY04 (6 mths) % Revenue USS$M % fs pcp Operating revenue 100% 60.3 +27% Gross profit 70.5% 42.6 +32% SG&A 28.8% 17.4 +36% R&D 6.4% 3.9 +47% Total Operating Expenses 35.3% 21.3 +38% Operating Profit 35.3% 21.3 +27% Profit after Tax 24.1% 14.5 -8% Fisher& Paykel HEALTHCARE
Slide 4: Operating Results NZ$
Operating Results NZ$ ‘H1FY04 (6 mths) | % Revenue NZSM %Apcp Operating revenue 100% 104.9 +4% Gross profit 70.5% 74.0 +8% SG&A 28.8% 30.2 +11% R&D 6.4% 6.8 +20% Total Operating Expenses 35.3% 37.0 +12% Operating Profit 35.3% 37.0 +4% Profit after Tax 24.1% 25.2 -25% Fisher& Paykel HEALTHCARE
Slide 5: Markets and Products
Markets and Products « Respiratory humidification ¢ Obstructive sleep apnea Neonatal ¢ Neonatal and other Osa aroiad 41% Respirato ry Humid- m Consumable products represent ification approx. 50% of core product sales 49% * 42 months to 31 March 2003 Fisher & Paykel HEALTHCARE
Slide 6: Respiratory Humidification
Respiratory Humidification OLLLLLD ¢ Normal airway humidification is bypassed or compromised during ventilation or O, therapy ¢ Mucociliary transport system operates less effectively — increases risk of infection — impairs gas exchange ¢ Need to deliver gas at physiologically normal levels — 37°C bo
Slide 7: Market Opportunity
Market Opportunity LIE Humidification systems are utilized to create, control and deliver optimal levels of humidity ¢ Estimated US$300+ million market worldwide — heated humidifier controllers — humidifier chambers + — breathing circuits + — unheated humidifiers — oxygen therapy supplies w» Heated
Slide 8: Humidification Systems
Humidification Systems CUE iis Fisher & Paykel has a full range of industry-leading respiratory humidification systems Products include: MR850 Respiratory Humidification System —- invasive ventilation, O2 therapy and non-invasive ventilation — patented flow measuring technology ~ integrated system ~
Slide 9: Single-use Components
Single-use Components Single-use chambers — patented auto filling MR290 — manual filling models Single-use breathing circuits — adult and neonatal — patented spiral heater wire — less condensation — delivery of optimal humidity — New technology in pipeline Breathing circuit components — filters — ca
Slide 10: Respiratory Humidification Update
Respiratory Humidification Update » Revenue growth (US$) H1 FY04 +37% on pcp * Sales growth driven by chamber and circuit sales, acceptance of MR850 system . Continued market share . Catheter Mount Filter growth in breathing circuits, rapid uptake of neonatal <<? circuits Weaning Kit UOT iy . SARS U
Slide 11: Obstructive Sleep Apnea
Obstructive Sleep Apne Temporary closure of airway during sleep Can greatly impair quality of sleep, leading to - fatigue; also associated with stroke and heart attack Estimated US$700+ million worldwide market, / ‘ ee growing 15%-20% Normal breathing 12 million affected by OSA in US alone Most comm
Slide 12: Fisher & Paykel's CPAP Systems
Fisher & Paykel’ s CPAP Systems Fisher & Paykel has a broad range of CPAP products, including flow generators, humidifiers and masks Products include: * HC150 Humidifier — suitable for use with most OSA flow generators — patented Ambient Tracking™ system — compact, integrated unit — patented Ambient
Slide 13: Mask Systems
Mask Systems « FlexiFit™ Nasal Masks — patented sliding attachment — flexible FlexiFit™ foam cushion — bias flow diffuser im lass leaks, greater comfort ¢ Oracle™ Oral Mask ~ proprietary oral interface ~— no headgear required * Three new masks in pipeline Fisher& Paykel HEALTHCARE
Slide 14: CPAP/Obstructive Sleep Apnea Update
CPAP/Obstructive Sleep Apnea Update « Revenue growth (US$) H1FY04 +15.4% on pcp ¢ Flow generator revenue growth +28% Q2 on pcp ¢ HC221LE flow generator introduced ¢ HC211 convertible flow generator introduced, expands market opportunity ¢ HC405 FlexiFit™ nasal mask introduced New flow generators, ma
Slide 15: Neonatal Warmers and CPAP
Neonatal Warmers and CPA LLL LD wie i « Radiant Warmers — 400,000 pre-term live births per year in US ~— warmers required in delivery and NICU — precise and stable temperature control * Infant CPAP System ~ proprietary bubble CPAP, non- invasive, oscillating pressure — lower risk alternative to vent
Slide 16: Neonatal and Warming Update
Neonatal and Warming Update LLIB * Revenue growth (US$) H1FY04 +48% ¢ Strong infant warmer revenue growth ° Growing acceptance of Neopuff infant resuscitator and neonatal CPAP system Fisher& Paykel HEALTHCARE
Slide 17: Research & Development
Research & Development ¢ 130 engineers, scientists, physiologists ° R&D increase to 6.4% of revenue H104 ¢ Significant new product pipeline for FY2004 — Flow generators — Masks — Breathing circuit technology — Patient warmer * Competitive NZ cost base ¢ 32 US patents, 53 US pending *, 48 ROW, 186 RO
Slide 18: Global Presence
Global Presence * Direct ~ hospitals, alternate site, home care North dealers America — sales offices in USA/Canada, 49% UK/lreland, France/Benelux/Italy/ Spain, Germany/Austria, Australia and NZ — Ongoing international expansion * Distributors ~ 100 distributors worldwide - 90 Europe countries 28%
Slide 19: Growth Drivers
Growth Drivers ¢ Maintain high level of innovation — continue to improve existing product lines -— develop complementary product offerings ¢ Target new medical applications — e.g. COPD ¢ Increase international presence, — e.g. Italy, Spain, China Fisher& Paykel HEALTHCARE
Slide 20: Fisher&
Fisher& Paykel HEALTHCARE Fisher& Paykel HEALTHCARE
Fisher & Paykel Healthcare — NZX Australasian Media Day 2003 on 6ix