Compumedics Limited · ASX:CMP
Compumedics — Investor Presentation (February 2016)
32 slides from Compumedics's investor presentation, Feb 11, 2016
Slide 1: Compumedics Limited Corporate Presentation
May, 2015 Compumedics Limited Corporate Presentation – February 2015 1
Slide 2: Investor Overview
Investor Overview • Core business: returned to growth. • Neurology growth opportunity: New market for CMP. We have the leading brain source localisation software. - Asian EEG - largest segment of $886.8 m brain monitoring device market - Asian EEG - 2013 $81.8m PA to 2018 $133.0m by 2018, CAGR: 10.4
Slide 3: Who is Compumedics?
Who is Compumedics? • Compumedics is a leading global, innovative developer and manufacturer of medical devices for: – Diagnosing sleep disorders – Monitoring neurological disorders including long-term epilepsy monitoring (LTEM) – Highly sophisticated brain research – Ultrasonic monitoring of blood
Slide 4: Directors & Executive Team Key Management
Directors & Executive Team Key Management David Burton, Ph.D. Executive Chairman, CEO Founder, Tenure 26yrs NED Mr. David Lawson Mr. Alan Anderson Chief Financial Officer & Leading USA Attorney Company Secretary CMP Tenure : 11 yrs CMP Tenure 13 yrs Mr. Warwick Freeman Kerry Hubick, Ph.D. Mr. Christ
Slide 5: A Tradition of Innovation
A Tradition of Innovation Comperio DQ Summit IP SynAmps2 2004 2005 Somté 2003 2001 Siesta 802 Siesta 2000 2005 P Series 1994 S Series 1987 Somté PSG 2006 Neuvo LTM SynAmpsRT 2007 2008 CURRY6 Somnilink SPAP 2009 2010 Grael HD Somfit Somté PSG 2.0 2010 2015 2011 5
Slide 6: Established Client Profile
Established Client Profile 6
Slide 7: Core Sleep and Brain Diagnostic Monitoring Business
Core Sleep and Brain Diagnostic Monitoring Business 7
Slide 8: Core Business Overview
Core Business Overview • Core business has now recovered post GFC and high AUD • We continue to transition product manufacturing and assembly offshore, which will result in reducing the cost of manufacturing to between 1/3 and 1/2 while maintaining premium functionality • We have traditionally targe
Slide 9: Product Matrix
Product Matrix Product Used for Bought by Average selling price Grael Sleep and Hospitals, doctors and USD17,500 neurology service providers Somte PSG Sleep Hospitals, doctors and USD10,000 service providers Siesta Sleep and Hospitals, doctors and USD18,000 neurology service providers Neuvo LTM Neur
Slide 10: Revenue Composition at ≈$15.6m December 2014
Revenue Composition at ≈$15.6m 31 December 2014 By geographic region By product/market Tech. Europe, Supply Service, 18% USA, Items, 9% Sleep, 32% 11% 32% Asia, 33% Brain Blood Neuro, Aust, Flow, Brain 11% 17% 20% Res, 17% Software upgrades 5 to 10% of system sales Compumedics sells directly to end-
Slide 11: Historical First Half Revenues
Historical First Half Revenues 6 months to 31 December Shipped and invoiced 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 H1 FY13 H1 FY14 H1 FY15 F'cast H2 FY15 H1 Rev F'Cast Rev
Slide 12: Historical First-Half Earnings
Historical First-Half Earnings 6 months to 31 December NPAT EBITDA 1 2 0.8 1.8 0.6 1.6 1.4 0.4 1.2 0.2 1 0 0.8 H1 FY13 H1 FY14 H1 FY15 H2 Fcast -0.2 FY15 0.6 -0.4 0.4 -0.6 0.2 -0.8 0 H1 FY13 H1 FY14 H1 FY15 H2 Fcast -1 FY15 NPAT F'Cast NPAT EBITDA F'Cast EBITDA
Slide 13: Employee Composition at ≈130 staff
Employee Composition at ≈130 staff 31 December 2014 By geographic region By function Asia, Mid Admin East, Sales & 2% & Fin, Quality, Mark, Europe, 1% USA, 2% 12% 24% 24% 32% Manuf, 28% Service, Aust, R&D, 12% 41% 22% Compumedics has its Head Office in Melbourne, Australia with additional offices in
Slide 14: Tide turning post GFC and high AUD
Tide turning post GFC and high AUD 4 45 40 3 35 2 30 25 AUDm AUDm 1 20 0 15 FY08 FY09 FY10 FY11 FY12 FY13 FY14 10 -1 5 -2 0 EBITDA Revenues 120 100 80 60 40 20 0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 AUD/USD Average 14
Slide 15: Growth Drivers – Core business
Growth Drivers – Core business • 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. • Trend toward
Slide 16: Growth Strategies – core business
Growth Strategies – core business USA Clinical Sales Force Expansion More sales representatives > more revenue Past for both sleep and neurology USD4.5m FY2014 - Now USD8.0m FY2016 USD12.5m FY2017 USD15.5m
Slide 17: China - We are the number 1 Premier Supplier
China - We are the number 1 Premier Supplier Compumedics Clients in China China Sales – USD’s 4 2 0 FY12 FY13 FY14 17
Slide 18: Earnings improvement activities
Earnings improvement activities • Outsourcing Manufacturing – lower cost regions of China and Taiwan • EEG cap production completely relocated at Dec 14 and Grael and Somte production to be completed by July 2015 • Offshore purchasing houses to increase quality and drive down costs. Grael and Somte
Slide 19: Strategic Value Realisation
Strategic Value Realisation 19
Slide 20: Strategic value realisation
Strategic value realisation The company is currently considering options to simplify its business and unlock significant value for shareholders by: • Spinning out its Germany based DWL Transcranial Doppler (TCD) ultrasound blood flow business • Spinning out its Brain Research business (NeuroScan) 20
Slide 21: DWL Spin out opportunity
DWL Spin out opportunity • DWL is the founding business and global leader in TCD ultrasound. • Short term growth opportunities in 3D Transcranial Colour Doppler (TCCD)/Duplex Imaging • Medium term growth opportunities in TBI and Stroke Market • 3D TCCD is a US$900m vs DWL’s current market of $US30m.
Slide 22: Brain Research Spin Out Opportunity
Brain Research Spin Out Opportunity • Enormous neurology devices demand – est. $7bn pa by 2017 up from $2bn in 2010 • Growth outlook – significant for Neuroscan CURRY – World’s best of class brain analysis software • CURRY multi modal brain analysis technology – traditional research market - $50m pa
Slide 23: eHealth – Next Phase in Compumedics Growth
eHealth – Next Phase in Compumedics Growth 23
Slide 24: Medical Innovations – eHealth
Medical Innovations – eHealth • Compumedics is developing two eHealth platforms from its core world-class sleep diagnostic technology, which it has built up over more than two decades and $100m+ in accumulated R&D. The two platforms are: • eHealthMEDICS – cloud based sleep diagnostic service for exi
Slide 25: eHealthMEDICS & eLifeMEDICS
eHealthMEDICS & eLifeMEDICS online healthcare solutions for life Our vision is to provide world-leading mobile-wireless online healthcare solutions for life. Our mission is to be a world leading online health management services provider enabling healthcare everywhere for professionals (eHealthMEDIC
Slide 26: eHealthMEDICS - Executive Summary
eHealthMEDICS - Executive Summary: The global mobile and online health category is forecast to grow rapidly eHealth market: 5-year growth outlook for wearable technology $50- 70B; mHealth $22B; telemedicine $35B Compumedics: World Leader in hospital & remote eHealth medical diagnostics China
Slide 27: eHealthMEDICS mHealth services platform
eHealthMEDICS - We bring to the table an mHealth services platform that leverages core competencies built over 25 years mHealth Product Ecosystem: Required Competencies • Inc. medical data security [traditional business] (FDA, CE, TGA compliant, US est. 1987 HIPPS) • Medical grade Cloud • Establishe
Slide 28: eHealthMEDICS - collaborating with leaders in the mobile sector
eHealthMEDICS - We are looking to collaborate with leaders in the mobiles sector to rapidly develop, scale and distribute our technology mHealth Product Ecosystem: Cloud Required Competencies Medical Regulatory Data Compliance Processing Patents / Health IP Services Potential Web or new Mobile Secto
Slide 29: eLifeMEDICS
eLifeMEDICS • SomFit is a device that allows medical grade measurement in a consumer environment • The cloud based sleep data environment provides safe access by health professionals and sleep coaching for consumers • Somfit prototypes shown at CES 2015 • Cloud based sleep database already in produc
Slide 30: Somfit
Somfit • $199 one time purchase + 50c per day for electrodes • Device can be prescribed by doctor to monitor sleep for a given period • Device connects to smartphone and cloud based app collecting medical grade sleep data • Access to data depending on the model (personal, prescribed) with CMP’s prop
Slide 31: Investor Summary
Investor Summary • Core business returned to growth: FY15: $33m revenue, >10% sales growth • Sales force expansion, neurology market opportunity and earnings improvement initiatives to drive growth of core business • Intense company focus on improving returns to shareholders. Current share price doe
Slide 32: OneMedForum 2011 - San Francisco
OneMedForum 2011 - San Francisco Wednesday 12 January 2011 32