Compumedics Limited · ASX:CMP
Compumedics — Investor Presentation (April 2019)
26 slides from Compumedics's investor presentation, April 2019
Slide 1: Corporate presentation
Corporate presentation March 2017 David Burton – Chairman, CEO dburton@compumedics.com.au David Lawson – Director, CFO dlawson@compumedics.com.au Sleep Diagnostics & Treatment - Neuro Diagnostics - Brain Research - Ultrasonic Blood Flow Monitoring1
Slide 2: Who is Compumedics?
Who is Compumedics? A leading global, innovative developer and manufacturer of medical devices for: Monitoring neurological Ultrasonic monitoring Diagnosing disorders including Highly sophisticated of blood flow through sleep disorders long-term epilepsy brain research the brain (Transcranial monito
Slide 3: H1 FY2019 – Performance Review
H1 FY2019 – Performance Review ▪ H1 FY19 Revenue (reported) $18.7m, EBITDA (reported) $1.5m, NPAT (reported) $0.8m H1 FY19 H1 FY18 Variance Comment The Company booked revenues 16% higher than the prior half year, driven by organic Revenue - growth in Asia, the USA and DWL. Revenues $18.7m $16.1m 16%
Slide 4: H1 FY2019 – Performance Review
H1 FY2019 – Performance Review ▪ Shipped and invoiced revenues increase 16% (12% constant currency) – Driven by organic growth in Asia, largely China, DWL and the USA. No additional revenue for the MEG sale was booked in H1 FY19 as final installation is schedule for H2 FY19 ▪ Asia based sales, large
Slide 5: Sales Bridge Chart – H1 FY18 versus H1 FY19
Sales Bridge Chart – H1 FY18 versus H1 FY19 5
Slide 6: EBITDA movement – H1 FY18 versus H1 FY19
EBITDA movement – H1 FY18 versus H1 FY19 6
Slide 7: H1 v H2 – FY18 actual to FY19 actual/forecast
H1 v H2 – FY18 actual to FY19 actual/forecast AUDm H1 FY18 H2 FY18 Total FY18 H1 FY19 H2 FY19* Total FY19* Sales 16.1 20.9 37.0 18.7 22.3 41.0 Margin $ 9.4 11.7 21.2 10.9 13.3 24.2 Margin % 58% 56% 57% 58% 60% 59% Other income 0.2 0.4 0.6 0.1 0.2 0.3 Expenses 8.6 9.5 18.1 9.8 9.8 19.6 Fin Chg’s 0.1
Slide 8: H1 v H2 – FY18 actual to FY19 actual/forecast
H1 v H2 – FY18 actual to FY19 actual/forecast ✓ Orders taken in H1 FY19 were $18.7m for the core business compared to $15.7 for H1 FY18. Carry forward orders booked but not shipped at 31 December 2018 are $7.3m, compared to $6.5m at 31 December 2017 ✓ The MEG sale to BNI, despite several delays, is
Slide 9: H1 FY19 – Milestones achieved
H1 FY19 – Milestones achieved ▪ Core business: Profitability grows, as sales grow across the business particularly in Asia and the USA, driven by Grael® product platform and expansion of sales and marketing activities in these and other key global markets ▪ MEG: Compumedics/Neuroscan continues to bu
Slide 10: Revenue Composition at $18.7m for H1 FY19
Revenue Composition at $18.7m for H1 FY19 31 December 2018 By geographic region By product/market Supply Tech. Europe, Items, Service, 17% 10% 10% Brain USA, Blood Sleep, 41% Flow, 28% 19% Asia, 30% Brain Res, Aust, 18% Neuro, 12% 15% Software upgrades 5 to 10% of system sales Compumedics sells dire
Slide 11: Core Business – Continuing Net Cash Position
Core Business – Continuing Net Cash Position $m FY14 FY15 FY16 H1 FY17 H1 FY18 H1 FY19 Cash 1.1 2.2 3.1 5.7 2.9 4.3 Trade receivables 8.6 9.8 11.9 10.9 14.8 15.5 Inventories 6.1 5.7 6.5 7.1 7.7 8.5 Prod. dev’t 2.9 2.7 2.4 2.4 3.4 5.0 Tax asset 0.0 0.0 0.5 0.5 0.7 0.0 PP&E 0.7 0.8 0.8 0.8 0.6 0.9 Oth
Slide 12: Outlook
Outlook ▪ Profitability and operating cash grow, as sales grow, validating changes made to product composition (new low cost Grael® devices) and the selective investment in sales and marketing in key markets ▪ US sales H1 FY2019 19% above PCP. Asia business up 37% and DWL up 51% over PCP. Growth exp
Slide 13: Growth Platform – Core and Step-Out
Growth Platform – Core and Step-Out Sales – schematic only FY18F FY19F FY20F FY21F FY22F Core - Base Core - Sleep/Neuro (Mid Market) Neuro - MEG Sleep - eHealth (Nexus360 & Somfit) • Step-out - NEURO – BRAIN IMAGING – Installing the new MEG* sale with Barrow Neurological Institute in Phoenix, AZ, US
Slide 14: Core Business – Premium Focus
Core Business – Premium Focus Neuro Neuro Sleep Brain Blood Diagnostics – Diagnostics - Diagnostics Flow Diagnostics Clinic Research Global market – 250m 1,300m 20m 15m USD pa Compumedics market share 6% <1% 30% 35% (approximate) Aust – 1 Aust – 1 Aust – 1 Aust – 1 Compumedics USA – 2 USA – 3 USA –
Slide 15: Core Business – Adding Mid-Tier Range
Core Business – Adding Mid-Tier Range Average Product Used for Bought by selling price Hospitals, doctors Grael Sleep and neurology USD17,500 and service providers Hospitals, doctors Somte PSG Sleep USD10,000 and service providers Hospitals, doctors Siesta Sleep and neurology USD18,000 and service p
Slide 16: Next Generation Growth – Core and Step-out
Next Generation Growth – Core and Step-out Neuro Neuro Sleep Brain Blood Diagnostics – Diagnostics - Diagnostics Flow Diagnostics Clinic Imaging Cloud based sleep Leverage existing Long term epilepsy diagnostic platforms Leverage CURRY TCD technology and Next generation market penetration for both p
Slide 17: Core Business - Growth Drivers
Core Business - Growth Drivers 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 Compumedics Earnings initiative
Slide 18: USA – CMP is number 3 Supplier USD9.0m
USA – CMP is number 3 Supplier USA Clinical Sales Force Expansion - Indicative More sales representatives = more revenue for both sleep and neurology Past USD3.0m to 4.0m FY2018 to now USD3.8m FY2019 USD6.5m FY2020 USD9.0m 18
Slide 19: China - We are the number 1 Premier Supplier
China - We are the number 1 Premier Supplier Compumedics Clients in China Sleep Neuroscience Neuroscan 28 2 Xin Jiang 5 Helongjiang Inner Mongolia 2 Jilin Beijing 88 2 Liaoning Ningxia 23 Qinhuangdao China Sales (invoiced) – USD’s QingHai 3 HeBei 10 3 Tianjin Dalian 2 3 16 12 Full year revenues 7.6
Slide 20: Step out - Brain Imaging: 1st sale tracking to delivery
Step out 1 - Brain Imaging: 1st sale tracking to delivery Opportunity Market & Competition Plan Outcome CMP’s CURRY brain The MEG market is currently H2 FY19 – install first CMP plans to analysis software is already estimated at about 20 systems a MEG sale install 1 MEG the gold standard for the yea
Slide 21: Step out - eHealth – Cloud Sleep Diagnostics
Step out 2 - eHealth – Cloud Sleep Diagnostics Nexus 360 Operational systems have Compumedics are Key partners (professional been developed for the cloud now approaching being cloud sleep based capture, transfer a select group of pursued diagnostics) and translation of medical grade strategic includ
Slide 22: Directors & Executive Team Key Management
Directors & Executive Team Key Management David Burton, Ph.D. Executive Chairman, CEO Founder, Tenure 31yrs Mr Tucson Dunn Non Executive Director Mr. David Lawson CMP Tenure 6 months Executive Director, Chief Financial Officer & Company Secretary CMP Tenure 19 yrs Mr. Warwick Freeman Kerry Hubick, P
Slide 23: Investor Summary
Investor Summary Core business continues to grow with lower cost base and addition of mid-tier International sales force Compumedics remains expansion, neurology market committed to continuing to opportunity and earnings deliver superior returns to improvement initiatives to shareholders continue to
Slide 24: Thank you
C> COMPUMEDICS THANK YOU fOfLISION NEXUS 360" Laboratory Management System
Slide 25: Disclaimer
Disclaimer This presentation has been prepared by Compumedics Ltd (CMP). While the information in this presentation has been prepared in good faith and with reasonable care, no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statement, estim
Slide 26: compumedics.com.au
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