Nanosonics Limited · ASX:NAN
Nanosonics — Shareholder Meeting (November 2021)
47 slides from Nanosonics's shareholder meeting presentation, Nov 19, 2021
Slide 1: Infection Prevention. For Life. 2021 Annual General Meeting
Infection Prevention. For Life. 2021 ANNUAL GENERAL MEETING Nanosonics Limited | Annual General Meeting 2021 1
Slide 2: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY We acknowledge the traditional owners of the various lands in which we meet virtually today and pay respects to all Aboriginal Elders, past and present, and acknowledge today’s Aboriginal communities who are the custodians of these lands. Nanosonics Limited | Annual Genera
Slide 3: Board of Directors
BOARD OF DIRECTORS Maurie Stang Steven Sargent Michael Kavanagh Lisa McIntyre Non-Executive Chairman Non-Executive Director, Deputy CEO and President Non-Executive Director Chairman and Lead Independent Director David Fisher Marie McDonald Geoff Wilson Non-Executive Director Non-Executive Director N
Slide 4: Online Attendees – Question Process
ONLINE ATTENDEES – QUESTION PROCESS When the Question function is available, the Q&A icon will appear at the top of the app. To send in a question, simply click in the ‘Ask a question’ box, type your question and the press the send arrow Your question will be sent immediately for review Nanosonics L
Slide 5: Online Attendees – Voting Process
ONLINE ATTENDEES – VOTING PROCESS When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen To vote simply select the direction in which you would like to cast your vote, the selected option will change colour. There is no submit or send button, your se
Slide 6: Chairman's Address
Infection Prevention. For Life. 2021 ANNUAL GENERAL MEETING CHAIRMAN’S ADDRESS Maurie Stang, Chairman Nanosonics Limited | Annual General Meeting 2021 6
Slide 7: Our people, our advantage
Our people, our advantage 339 TOTAL EMPLOYEES ENDING FY21 (+9% VS. FY20) 94 % STRONGLY ALIGNED TO COMPANY PURPOSE 93 % KNOW HOW THEIR WORK CONTRIBUTES TO COMPANY GOALS 1Compound Annual Growth Rate Nanosonics Limited | Annual General Meeting 2021 7 2Science, Technology, Engineering, Mathematics
Slide 8: Growing opportunities
GROWING OPPORTUNITIES MARKETS INCREASED TAM IN NORTH AMERICA 50% growth in trophon TAM (to 60,000 units), driven by strong ultrasound growth. Driving trophon® IMPROVING FUNDAMENTALS FOR ADOPTION IN EMEA Increase in guidelines and associated Nanosonics investment in the region. business growth EXPAND
Slide 9: Five core areas of R&D focus
FIVE CORE AREAS OF R&D FOCUS STRATEGIC CAPABILITIES Core R&D Sustaining engineering External technology INVESTMENT IN R&D Global, $m evaluation $17.2 $15.6 11% vs. FY20 $9.5 $9.9 $11.4 Nanosonics Investments FY17 FY18 FY19 FY20 FY21 All research and new product development programs involve inheren
Slide 10: Continued commitment to sustainability and social responsibility
CONTINUED COMMITMENT TO SUSTAINABILITY AND SOCIAL RESPONSIBILITY D IV ER SIT Y & IN C LUSION SU ST AI N ABI L I T Y H I G H LI G HT S 1 We value all aspects of 88 ~ k Patients protected daily from the risk of cross-contamination diversity fostering an Developed sustainable Supply Chain initiatives i
Slide 11: Leadership
LEADERSHIP Nanosonics has a highly experienced and dedicated team of professionals leading the development and implementation of our strategic growth agenda. B O AR D O F D I R E C T ORS MAURIE STEVEN MICHAEL MARIE DAVID LISA GEOFF STANG SARGENT KAVANAGH MCDONALD FISHER MCINTYRE WILSON E XE C UT I V
Slide 12: CEO & President's Address
Infection Prevention. For Life. 2021 ANNUAL GENERAL MEETING CEO & PRESIDENT’S ADDRESS Michael Kavanagh, CEO and President Nanosonics Limited | Annual General Meeting 2021 12
Slide 13: FY21 Key Highlights
FY21 KEY HIGHLIGHTS A year of ongoing achievement with a significant recovery in H2 to pre-COVID growth momentum levels CONSUMABLES/ INSTALLED BASE TOTAL REVENUE CAPITAL REVENUE SERVICE REVENUE FY21 26,750 $ 103.1m $ 26.7m $ 76.4m 13% 3% (12% cc ) 1 11% (8% cc ) 1 9% (20% cc ) 1 H2 20% vs.
Slide 14: Our Strategic Priorities
“Nanosonics’ forward- Provide awareness Ensure Customers looking growth agenda TROPHON AS Support establishment of and education to highlight risks of have a positive STANDARD experience with all remains very much OF CARE national guidelines. cross contamination for all semi critical aspects of the
Slide 15: trophon Opportunity
TROPHON ® OPPORTUNITY Nanosonics Limited | Annual General Meeting 2021 15
Slide 16: Ultrasound Procedures
ULTRASOUND PROCEDURES There are over 150 procedures that use 1 ultrasound probes across many departments that risk contact with mucous membranes, non-intact skin and/or sterile tissue. EXAMPLES ENDOCAVITARY UG2 BIOPSY INTRAOPERATIVE NERVE BLOCKS WOUNDS Abdominal Duplex Biopsy of liver Intraoperative
Slide 17: North America Installed Base Opportunity
NORTH AMERICA INSTALLED BASE OPPORTUNITY INSTALLED BASE There has been a significant increase in the trophon® 60,000 1 UNITS 20,990 23,480 18,570 opportunity in North America resulting from increased MARKET PENETRATION 15,620 12,400 estimate of Total Addressable Market, revised up to 1 39% 60,000 un
Slide 18: Significant Global Market Opportunity
SIGNIFICANT GLOBAL MARKET OPPORTUNITY Market Penetration GLOBAL Installed base opportunity • Significant global growth opportunity. 140,000 • Increasing number of international guidelines requiring high level 1 disinfection (HLD) supporting growing international demand. 19% • Nanosonics expanding it
Slide 19: Capital Upgrades
CAPITAL UPGRADES A significant capital upgrade potential exists in the installed base G R O W IN G O PPOR TUNIT Y 6,500+ units AGED INSTALLED BASE UPGRADED TO-DATE 1 8 % 9% Implemented trophon EPR 7% end-of-life policies and notified 6% customers. 2% Upgrades is a key component of growth strateg
Slide 20: Europe and Middle East Installed Base Opportunity
EUROPE AND MIDDLE EAST INSTALLED BASE OPPORTUNITY INSTALLED BASE Guidelines across Europe for ultrasound probe 40,000 UNITS 1,510 1,120 disinfection continue to strengthen with preferences MARKET PENETRATION 730 880 for automated solutions that can be validated. This UK 490 4% has supported installe
Slide 21: Nanosonics Presence in Europe and Middle East
NANOSONICS PRESENCE IN EUROPE AND MIDDLE EAST We have broad presence and MAR K E T AC C E SS T H R OUG H D I R E C T AN D D I ST R I B UT I ON C H ANNELS access to key markets to capitalise SWEDEN on the strengthening NORWAY FINLAND fundamentals across ESTONIA the region. DENMARK RUSSIA UNITED KINGD
Slide 22: Asia Pacific Installed Base Opportunity
ASIA PACIFIC INSTALLED BASE OPPORTUNITY INSTALLED BASE We have ramped up our efforts to bring new markets 40,000 UNITS 1,610 1,760 1,480 online, with particular focus on the untapped potential MARKET PENETRATION 1,270 1,390 in Japan, China and across the ASEAN countries. ANZ 4% >75% FY17 FY18 FY19 F
Slide 23: Investing for Growth: Research & Development
INVESTING FOR GROWTH RESEARCH & DEVELOPMENT Nanosonics Limited | Annual General Meeting 2021 23
Slide 24: New Product Development
NEW PRODUCT DEVELOPMENT During the year, INVESTMENT IN R&D Global, $m Nanosonics 17.2 15.6 11% vs. FY20 continued to invest in its product 9.9 11.4 expansion strategy. 9.5 R&D investment FY17 FY18 FY19 FY20 FY21 increased to $17.2m Substantial investment made in new product development with import
Slide 25: Introducing
INTRODUCING Nanosonics Limited | Annual General Meeting 2021 25
Slide 26: Infection Control Workflow Compliance Management
INFECTION CONTROL WORKFLOW COMPLIANCE MANAGEMENT Workflow compliance management tool that ensures customers consider the infection prevention requirements for all ultrasound procedures Enhances clinical workflow Practice standardization Improves staff competency with the Spaulding Standardises ultra
Slide 27: AuditPro and trophon Synergies
AUDITPRO AND TROPHON SYNERGIES AuditPro further enhances the trophon2 value proposition and competitive advantage. N A N O S O N I C S A U D I T P R O TM HAS THE POTENTIAL TO DRIVE… trophon2 adoption EPR to trophon2 upgrades Consumables usage Nanosonics Limited | Annual General Meeting 2021 27
Slide 28: Our Next Instrument Reprocessing Product Platform
OUR NEXT INSTRUMENT REPROCESSING PRODUCT PLATFORM All research and new product development programs involve inherent risks and uncertainties which can impact commercialisation timelines. Nanosonics Limited | Annual General Meeting 2021 28
Slide 29: Our New Product Platform Focus
OUR NEW PRODUCT PLATFORM FOCUS “more healthcare- A TOP 10 HEALTH TECHNOLOGY HAZARD associated In 2018, the ECRI Institute listed “failure to consistently and effectively reprocess flexible endoscopes” as one of the top 10 health technology hazards facing the outbreaks have Healthcare industry. In pa
Slide 30: Flexible Endoscopes
FLEXIBLE ENDOSCOPES Reusable flexible endoscopes are highly sophisticated medical devices designed to enable advanced diagnostic and therapeutic interventions to diagnose and treat cancers and other life-threatening conditions. They incorporate advanced technology that gives physicians a sophisticat
Slide 31: A Recognised Risk
A RECOGNISED RISK Flexible endoscopes have been associated with a high frequency of outbreaks of healthcare-associated infections. THERE ARE MANY WELL-DOCUMENTED INSTANCES OF… IN F E CT ION O U TBR EAK S… … AN D R E PR O CESSING ISSU ES COLONOSCOPES G A S T R O S CO P E S B R O N C H O S CO P E S UR
Slide 32: The Problem of Cleaning Flexible Endoscopes
THE PROBLEM OF CLEANING FLEXIBLE ENDOSCOPES Challenges associated with manual cleaning, combined with reports of persistent contamination from biofilm despite routine cleaning, represents a significant unmet need and is a complex technical challenge that has existed for many years. A 2021 study on g
Slide 33: Nanosonics Coris
NANOSONICS CORIS ® Nanosonics aims to address these challenges by replacing manual cleaning of endoscope channels with a novel automated technology that revolutionises the cleaning process, thereby reducing the risk of ineffective endoscope reprocessing and resulting patient infection. Work continue
Slide 34: FY22 Business Outlook
“Despite the inherent risks and uncertainties associated with COVID-19, we remain optimistic the improved market conditions will continue as vaccination numbers increase across all major markets.” – Michael Kavanagh FY22 BUSINESS OUTLOOK (assuming the positive market recovery trends continue) DOUBLE
Slide 35: Formal Business
Infection Prevention. For Life. 2021 ANNUAL GENERAL MEETING FORMAL BUSINESS Nanosonics Limited | Annual General Meeting 2021 35
Slide 36: Re-election of a Director – Dr. David Fisher
RESOLUTION 1 Re-election of a director – Dr. David Fisher Proxy votes received Number % Resolution: That Dr. David Fisher, For : 170,167,164 97.72 who retires as a Director pursuant to the Company’s Constitution Against : 3,279,127 1.88 and, being eligible, offers himself Discretion : 682,973 0.40 f
Slide 37: Re-election of a Director – Mr. Geoff Wilson
RESOLUTION 2 Re-election of a director – Mr. Geoff Wilson Proxy votes received Number % Resolution: That Mr. Geoff Wilson, For : 170,818,924 98.11 who retires as a Director pursuant to the Company’s Constitution Against : 2,598,880 1.49 and, being eligible, offers himself Discretion : 682,973 0.40 f
Slide 38: Remuneration Report
RESOLUTION 3 Remuneration Report Resolution: That the Remuneration Report for the Proxy votes received Number % financial year ended 30 June 2021 be adopted. For : 156,359,607 95.41 Against : 4,646,030 2.83 Discretion : 2,880,078 1.76 Abstained/Excluded : 10,544,025 - Nanosonics Limited | Annual Gen
Slide 39: Issue of 30,010 Service Rights to the CEO
RESOLUTION 4 Issue of 30,010 Service Rights to the Chief Executive Officer and President, Mr. Michael Kavanagh, under the 2021 Short Term Incentive (2021 STI) Resolution: That approval be given for all purposes under Proxy votes received Number % the Corporations Act 2001 (Cth) and the ASX Listing R
Slide 40: Issue of Share Appreciation Rights and Performance Rights
RESOLUTION 5 Issue of 190,114 Share Appreciation Rights and 132,760 Performance Rights to the Chief Executive Officer and President, Mr. Michael Kavanagh, under the 2021 Long-Term Incentive (2021 LTI) Resolution: That approval be given for all purposes under Proxy votes received Number % the Corpora
Slide 41: Adoption of New Constitution
RESOLUTION 6 Adoption of New Constitution Resolution: For the purposes of section 136(2) of the Proxy votes received Number % Corporations Act and for all other purposes, the For : 171,020,765 98.24 Company’s constitution be amended by adopting in substitution for it, effective from the close of thi
Slide 42: Proportional Takeover Provisions in Constitution
RESOLUTION 7 Proportional Takeover Provisions in Constitution Resolution: That the proportional takeover provisions in Proxy votes received Number % clause 14 of the proposed new Constitution referred to in For : 170,667,163 98.05 Resolution 6, take effect for a period of three years commencing on t
Slide 43: Online Attendees – Question Process
ONLINE ATTENDEES – QUESTION PROCESS When the Question function is available, the Q&A icon will appear at the top of the app. To send in a question, simply click in the ‘Ask a question’ box, type your question and the press the send arrow Your question will be sent immediately for review Nanosonics L
Slide 44: Online Attendees – Voting Process
ONLINE ATTENDEES – VOTING PROCESS When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen To vote simply select the direction in which you would like to cast your vote, the selected option will change colour. There is no submit or send button, your se
Slide 45: Online Attendees – Question Process
ONLINE ATTENDEES – QUESTION PROCESS When the Question function is available, the Q&A icon will appear at the top of the app. To send in a question, simply click in the ‘Ask a question’ box, type your question and the press the send arrow Your question will be sent immediately for review Nanosonics L
Slide 46: 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 47: Nanosonics Limited
Nanosonics Limited 14 Mars Road, Lane Cove NSW 2066 Australia T +61 2 8063 1600 E info@nanosonics.com.au www.nanosonics.com.au ABN 11 095 076 896 Nanosonics Limited | Annual General Meeting 2021 47