Slide 1: For personal use only
2 S[RUSIS Sa 6 - WV 6 « 8002 Aieniga - aep-df ssouisng
Slide 2: Overview
For personal use only Over view Capital equipment patient monitoring business (Core business) • Existing business up-date – financial results for 6 months to 31 December 2007 • Step out opportunity - USA ambulatory sleep business • Step out opportunity - Neuvo™ – NEW long-term monitoring device into
Slide 3: Core business - Financial update
For personal use only Core business - Financial update STRENGTHENING financial position and SOUND outlook RECORD profit-after-tax more than triples to $1.6m in the half-year to 31 December 2007 RECORD half-year revenues of $20.1m. Revenues would have been approximately $22m had exchange rates not mo
Slide 4: Core business - margins, expenses, EBITDA and profit
For personal use only Core Business - Financial update Gross MARGINS IMPROVE from 59% at 30 June 2007 to 63% at 31 December 2007, despite rising Australian dollar Operating EXPENSES DECLINE $0.8m or 7% to $11.0m for the half-year to 31 December 2007 compared to the prior corresponding half-year. Ope
Slide 5: Core business - borrowings and sales by region
For personal use only Core Business - Financial update . BORROWINGS substantially REDUCED from $5.6m at the prior corresponding half-year to $3.1m at the end of the current half- year. The LOWEST level of borrowings in 5 years Borrowing costs at $0.3m were 40% LOWER than the prior corresponding half
Slide 6: Half-year financial summary 2004-2007
For personal use only Core Business - Financial update Actual Actual Actual Actual half year half year half year half year Dec 2004 Dec 2005 Dec 2006 Dec 2007 Revenues ($m) 19.4 18.1 19.7 20.1 Margins % 57% 54% 62% 62% Operating Expenses (10.7) (12.9) (11.8) (11.0) Foreign exchange (1.0) - (0.2) (0.
Slide 7: Group revenues
For personal use only Core Business - Financial update Total group revenues at $20m, would have been $22m had the Australian dollar not risen against other currencies and competitive and regular banking services been available 25 Underlying revenue growth at 10% largely washed away by adverse curren
Slide 8: Gross margins
For personal use only Core Business - Financial update Gross Margins at 62% are same as prior corresponding half-year and 3% better than at 30 June 2007 despite the rising Australian dollar 62 Product 60 profitability restored 58 % 56 54 52 50 2002 2003 2004 2005 2006 2007 Gross margins for the 6 mo
Slide 9: Operating expenses
For personal use only Core Business - Financial update Operating Expenses continue to decline - $1.9m or 15% over the last two years Sustainable cost 14 base re-affirmed 12 DWL acquisition 10 8 AUDm 6 4 2 0 2002 2003 2004 2005 2006 2007 Expenses for the 6 months to December 31 Slide 9
Slide 10: EBITDA
For personal use only Core Business - Financial update EBITDA record half-year profitability at current revenue levels, which are constrained by the higher Australian dollar 2.5 RECORD EBITDA 2 1.5 1 0.5 AUDm 0 -0.5 -1 -1.5 -2 -2.5 2002 2003 2004 2005 2006 2007 EBITDA for the six months ended Decemb
Slide 11: Bank debt reduction
For personal use only Core Business - Financial update Bank debt reduction continues – lowest debt levels in 5 years! 8 7 DWL acquisition 6 5 AUDm 4 3 2 1 0 2002 2003 2004 2005 2006 2007 Bank Debt at December 31 Slide 11
Slide 12: Borrowing costs
For personal use only Core Business - Financial update Bank costs some respite despite improving business performance and debt repayment. Bank changed January 2008 0.5 0.4 0.3 AUDm 0.2 0.1 0 2002 2003 2004 2005 2006 2007 Borrowing costs for the 6 months to December 31 Slide 12
Slide 13: Foreign exchange impacts
For personal use only Core Business - Financial update Foreign exchange impacts adversely again in current half year AUD/USD rate 0.56 0.74 0.78 0.73 0.79 0.88 0 -0.2 -0.4 Exchange movements relate AUDm largely to consolidation of off -0.6 shore group subsidiaries – almost 90% of the total business
Slide 14: Business unit revenues
For personal use only Business unit revenues Business unit revenues improving 9 8 7 6 5 AUDm 4 3 2 1 0 2002 2003 2004 2005 2006 2007 Sleep Brain research EEG/DWL Supplies/Service Revenues by business for the 6 months to December 31 Slide 14
Slide 15: Geographic revenues
For personal use only Geographic revenues MI Asia 1% Australia Australia 13% 14% Asia 12% 2007 H1 20% 2006 FY DWL DWL 14% 15% Europe 11% MI USA USA Europe Australia 43% 43% Asia 1% 14% 14% 14% DWL 14% USA Europe 42% 15% 2008 H1 MI = Medical innovations Slide 15
Slide 16: Key achievements completed in H1 2008
For personal use only Key achievements completed in H1 2008 New banking service provider chosen – greater flexibility and less expensive USA office relocated to Charlotte, North Carolina – less expensive New market opportunities in brain research executed with several pharmaceutical companies in the
Slide 17: Early H2 2008 performance
For personal use only Early H2 2008 performance Business performing to plan US brain research business momentum continues, Australian business strong and Asian research business strong, US sleep business picking up. Cost containment continues. Australian dollar still high relative to the US dollar -
Slide 18: Outlook - financial
For personal use only Outlook - financial Replication of the first half result in the second half without loosing cost control restraints will be the primary focus It is early days along a fresh and revitalised path for the business back to profitability and growth – management remains cautiously op
Slide 19: CMP annual sales compared to global market annual sales
For personal use only Outlook – CMP annual sales compared to global market annual sales Sleep diagnostics Brain Research Neuro diagnostics AUD30m Global market CMP current sales AUD250m Global market CMP current sales Supplies AUD890m AUD260m Global market CMP current sales Global market CMP current
Slide 20: Medical innovation - Sleep treatment
For personal use only Medical innovation – Sleep treatment Compumedics SPAP™ sleep treatment technology as good as and as intelligent as, if not better than Respironics’ and Resmed’s Immediate deal for $2m of products signed in 2007 OEM discussions for 3-year $100m contract on-going 3 major world le
Slide 21: Market valuations - core business only
For personal use only Market valuations – core business only Shares on issue 142.5m ASX average PE ratio 14 Annualised earnings $3.2m Healthcare equipment 20 and services (HES) sector PE ratio Current share price 12.5 Leading company in 35 cents HES sector PE ratio’s CMP share price at 32 ASX PE rat
Slide 22: 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 23: Outlook - technology: New Products
For personal use only Outlook - technology New Products Nexus Profusion PSG 3 Somte PSG Neuvo Slide 23
Slide 24: 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 markets first discovered in the 1980s •Clinical Sleep •Transcranial Doppler (TCD) •Computerised Cognitive Neuros
Slide 25: 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 26: 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 27: Outlook - technology: Computerised 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 28: Business Recap
For personal use only Business Recap Profits triple from prior corresponding half-year despite rising Australian dollar and the adverse impact this has on revenues and margins Operating cash flow more than doubles compared to prior corresponding half-year Cost vigilance to remain R&D product pipelin
Slide 29: For personal use only
For personal use only Slide 29