Accuray Incorporated · NASDAQ:ARAY
Accuray — Investor Presentation (February 2023)
26 slides from Accuray's investor presentation, Feb 14, 2023
Slide 1: Corporate Overview: Innovation Driven Growth Strategy
Corporate Overview Innovation Driven Growth Strategy February 2023 Exhibit 99.1
Slide 2: Safe Harbor Statement
Proprietary and Confidential Property of Accuray Safe Harbor Statement Statements in this presentation (including the oral commentary that accompanies it) that are not statements of historical fact are forward-looking statements and are subject to the “safe harbor” provisions of the Private Securiti
Slide 3: Accuray Overview: Global Leader in Precision Radiation Therapy
Accuray Overview Global Leader in Precision Radiation Therapy Vision: To expand the curative power of radiation therapy to improve as many lives as possible Systems Installed in Over 60 Countries1 1: As of October 20, 2022 2: Estimated percentage of revenue invested into R&D Installed Base Milestone
Slide 4: Accuray Executive Leadership Team
Suzanne Winter President and CEO Ali Pervaiz Senior Vice President, Chief Financial Officer Sandeep Chalke Senior Vice President, Chief Commercial Officer Jesse Chew Senior Vice President, General Counsel Mike Hoge Senior Vice President, Global Operations Patrick Spine Senior Vice President, Chief A
Slide 5: RT Strongly Positioned for Value-based Care
RT Strongly Positioned for Value-based Care 5 U.S. Cancer Expenditures Estimate ($ Billion)1,2 1: Dieguez G., Ferro C., Pyenson B.S. A multi-year look at the cost burden of cancer care: Milliman research report. https://milliman-cdn.azureedge.net/-/media/Milliman/importedfiles/uploadedFiles/insight/
Slide 6: The Golden Age of Radiotherapy
6 The Golden Age of Radiotherapy Radiation therapy/radiosurgery potential as a first-line therapy Shorter Treatment Regimens Imaging Innovation Correct for Changes Powerful Partnerships Clinical Innovation Reduced Patient Burden – Advanced Precision – Clinical Evidence Proprietary and Confidential P
Slide 7: Accuray Systems: Differentiated Solutions
7 Accuray Systems: Differentiated Solutions CT-Linac System Radixact® System Robotic System CyberKnife® Accuray Precision® Premium Performance Radiosurgery/SBRT System Connectivity to the RT Department Treatment Planning System Proprietary and Confidential Property of Accuray
Slide 8: The Radixact System: a Universal Workhorse
The Radixact® System: a Universal Workhorse Synchrony® 4D Dynamic Delivery Simple VOLO™ Ultra Planning Unique Helical Platform Any Case Complexity Precise Helical Dose Painting ClearRT™ Imaging Quick Installation Vendor Neutral Connectivity 8 Proprietary and Confidential Property of Accuray
Slide 9: The CyberKnife Radiosurgery System
The CyberKnife® Radiosurgery System Unique Robotic Platform Submillimeter Accuracy Fast Delivery Versatile SRS/SBRT System Thousands of Beam Angles Flexible Collimation For Various Cases Powerful Planning Choices Moving Or Stationary Targets 9 Proprietary and Confidential Property of Accuray
Slide 10: Accuray Software Solutions
Accuray Software Solutions Accuray Precision® Treatment Planning iDMS® Data Management Synchrony® Motion Adaptation Technology High-quality Plans All Case Types Strategic Software Partnerships1 10 1: C-RAD, Brainlab, RaySearch, Limbus AI OIS Compatibility Seamless Integration AI-Driven Real-Time Ada
Slide 11: Radiation Therapy Market
Radiation Therapy Market1 1: ReAnin Radiotherapy Market, Global Industry insights and trends 2017-2027. $3.3B $2.5B $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Proton Therapy Cobalt Brachytherapy Systemic Therapy Software Total: $5.8B $M Accuray competes in Premium and Specialty Markets Proprietary
Slide 12: FY23-25 Radiation Therapy Market: Mature versus Growth Markets
FY23-25 Radiation Therapy Market Mature versus growth markets 1: Based on COCIR radiotherapy age profile & density, December 2019 Edition, DIRAC database and proprietary data, data on file 2: Infoholic and COCIR reports on proportion of systems and system ageing: ASP estimated at $2-2.3B, data on fi
Slide 13: Strategic Areas of Focus
13 Strategic Areas of Focus Proprietary and Confidential Property of Accuray Drive market share through disruptive innovation Expand service business Transform through strategic partnerships Drive margin and profitability initiatives
Slide 14: Ultra-Hypofractionation is Ready for Prime-Time
Ultra-Hypofractionation is Ready for Prime-Time 20% Adoption0 growing with Phase II-III clinical evidence 70%5 Breast, prostate, lung cancer, and metastases Patient Mix Phase II-III Trials Fast-Forward PACE-B STARS SABR-COMET Adoption 20% HF UHF0 HF: hypofractionation UHF: ultra-hypofractionation Fa
Slide 15: Multi-year Service Strategic Focus
15 Service quality and customer satisfaction Clinical technology adoption Expansion of direct-service markets JV Partner and distributor performance Commercial Focus on Service Deal support and blended-margin analysis Market analytics Service Offering Expansion Monetizing value-added services Expand
Slide 16: Accuray - GE Healthcare Partnership
16 Accuray - GE Healthcare Partnership Global commercial collaboration agreement Proprietary and Confidential Property of Accuray Expand access to innovative precision solutions from diagnosis to treatment Accuray radiation therapy technologies + GE Healthcare’s imaging solutions Emphasis on early d
Slide 17: China JV Strategy
17 Establish domestic presence, brand, product Launch Tomo® C for Type-B, critical for growth Continue to harvest share in Type-A Leverage CAMT infrastructure for COGS reduction & value product manufacturing (margin, capacity, risk) China JV Strategy CAMT (JV) is our path to winning share in the gro
Slide 18: Q2'FY23 Highlights
Q2’FY23 Highlights NMPA regulatory submission completed for Tomo® C, the joint venture product for the China Type B segment Awarded 18 systems in the November 2022 Ministry of Health Type A central bidding process in China1 Received IMV Award for Best in Service in Radiation Oncology for 2022 Comple
Slide 19: Q2'FY23 and 1H'FY23 Financials
Q2’FY23 and 1H’FY23 Financials Strong financial performance KEY FINANCIAL METRICS $M Q2 Y/Y Highlights Steady orders performance amidst significant currency fluctuations Total Q2 revenue decline of 1% due to supply chain constraints and unfavorable foreign currency fluctuations OPEX includes ~$2M
Slide 20: FY23 Guidance Affirmed February 1, 2023
FY23 Guidance Affirmed February 1, 20231 Revenue Adjusted EBITDA2 $429.9M $22.8M FY23 Guidance Range1 FY22 Actual $ in millions % = YoY Growth $447M - $455M +4% - 6% $26M - $30M +14% - 32% 1 FY23 guidance affirmed February 1, 2023. Nothing contained herein should be construed as reaffirmation of suc
Slide 21: In Summary
In Summary Growing momentum with 34 orders in the quarter Strongest product portfolio and pipeline in company’s history Multiple growth catalysts and global commercial execution Focused on margin expansion and free cash flow Positioned for Long-Term Revenue Growth and Market Share Gain 21
Slide 22: Thank you
ACCURAY Thank you
Slide 23: GAAP to Adjusted EBITDA Q2 FY23 and Q2 FY22
$K GAAP net income (loss) Stock-based compensation Interest expense, net Provision for income taxes Adjusted EBITDA Depreciation and amortization Three Months Ended December 31, Three Months Ended December 31, 2021 2022 $ $ $ $ (1,874) 1,151 3,126 2,642 1,049 8,498 179 1,422 2,695 2,070 480 6,846 ER
Slide 24: GAAP to Adjusted EBITDA 1H FY23 and 1H FY22
$K GAAP net income (loss) Stock-based compensation Interest expense, net Provision for income taxes Adjusted EBITDA Depreciation and amortization Six Months Ended December 31, Six Months Ended December 31, 2021 2022 $ $ $ $ (7,323) 2,327 6,042 4,898 1,390 10,393 (849) 2,841 5,211 4,106 911 12,220 ER
Slide 25: GAAP to Adjusted EBITDA FY22 Actual
GAAP to Adjusted EBITDA FY22 Actual Reconciliation of Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (Adjusted EBITDA) $K GAAP net income (loss) Stock-based compensation Interest expense, net Provision for income taxes Adjusted
Slide 26: GAAP to Adjusted EBITDA FY23 Forward Looking Guidance
$K GAAP net income (loss) Stock-based compensation Interest expense, net Provision for income taxes Adjusted EBITDA Depreciation and amortization To From $ $ $ $ (5,500) 6,300 11,600 8,000 2,000 26,000 (1,500) 6,300 11,600 8,000 2,000 30,000 ERP and ERP related expenditures 1,600 Restructuring charg