Nanosonics Limited · ASX:NAN
Nanosonics — Investor Presentation (May 2013)
24 slides from Nanosonics's investor presentation, May 2013
Slide 1: Leader in Infection Control Solutions
LEADER IN INFECTION CONTROL SOLUTIONS Addressing the need for safer, faster and eco-friendly high level disinfection of ultra sound probes
Slide 2: 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. The information in this presentation, whether written or verbal, has been prepared without taking into account the commercial, financial or other needs o
Slide 3: Nanosonics Highlights
Nanosonics Highlights Developed proprietary automated system for low temperature, high level disinfection ® First product, trophon EPR for disinfection of ultra sound probes trophon EPR approved for sale in major western markets (incl. US) Achieved significant market penetration in Australia
Slide 4: Investment Thesis
Investment Thesis ® Advancing global rollout of trophon EPR – the first fully automated system for high level disinfection of ultra sound probes Addresses unmet market need: current disinfection methods are antiquated, manual, dangerous and inefficient Strong regulatory, legal liability and ec
Slide 5: Our Technology – Nano-nebulisation for Low Temperature Disinfection
Our Technology – Nano-nebulisation for Low Temperature Disinfection High frequency sonic vibration turns disinfecting liquid into nano-sized droplets Nano droplets disperse like a gas − Covers entire surface of object being disinfected Nano-nebulant is a strong oxidising agent − Lethal to bact
Slide 6: High Level Disinfection Methods
High Level Disinfection Methods Unchanged for 20+ years Disinfection processes Autoclave (High Pressure / High Temperature unchanged in 20+ years Disinfection) − Standard Existing methods have high level disinfection method many shortfalls − Not an option from many disinfection requirements − Heat
Slide 7: Lead Product – trophon EPR
Lead Product –trophon EPR Low temperature high level disinfection for intra-cavity ultrasound probes Rapid − Fully automated 7 minute disinfection cycle Safe − Self contained − Non-toxic chemistry Gentle / non-damaging to probe Effective − In-built checking systems − Disinfects entire probe
Slide 8: Multiple factors driving adoption and “Standard of Care”
Multiple factors driving adoption and “Standard of Care” Regulatory − Compliance to 2008 US CDC Guidelines for disinfection / sterilisation − FDA communication – probe must be completely immersed for effective high level disinfection Safe & appealing workplace − Removes workplace exposure to haz
Slide 9: Large and Accessible Market
Large and Accessible Market Distribution of ultrasound machines globally USA addressable install base: ~40,000 trophon EPR 30% − Equivalent sized markets in both Europe and RoW 34% Current end sale price ~ US$10,000 per unit − average consumables ~ $3,000pa 36% − additional revenue from service
Slide 10: Established Sales and Distribution
Established Sales and Distribution Approved in Major Western Markets Multiple Channels to Market Approved for sale in the US and most other Exclusive North American distribution with GE major western markets Healthcare − ~30% ultrasound share in North America Toshiba signed (April 2013) as non
Slide 11: Attractive Revenue Model
Attractive Revenue Model Multiple revenue streams: Up-front sales plus consumables, accessories and service contracts Accessories Trophon Consumables Service & maintenance contracts 35% 5% 45% 15% Figures refer to % of revenue Each unit sale results in robust annuity type revenue streams moving forw
Slide 12: trophon EPR Lifecycle Revenue Example
trophon® EPR Lifecycle Revenue Example Revenue $A'000 Year 1 Year 2 Year 3 Year 4 Total Trophon 10.0 10.0 Consumables Sonex 3.0 3.0 3.0 3.0 11.9 Chemical Indicator 0.3 0.3 0.3 0.3 1.4 3.3 3.3 3.3 3.3 13.3 Accessories Cart (or Wall Mount) 1.4 1.4 Printer 0.8 0.8 Software 0.7 0.7 2.8 2.8 Service - 1.4
Slide 13: Adoption in Key Markets
Adoption in Key Markets Australia and New Zealand Established strong market penetration in own domestic market Good take up from major medical imaging providers such as I-Med North America ® GE launched trophon EPR in July 2011 Approximately A$10m revenue in North America in 1st year launch
Slide 14: North American Sales Leading the Way
North American Sales Leading the Way North American IB Growth Trajectory Revenue by Market Installed base Rest of the Expanded US world 3% sales team ANZ 13% GE trophon® EPR contract entered Canadian signed Market North America GE Incentive 83% Scheme updated 1st US shipment Dedicated BD Manager and
Slide 15: Several Major Sites Already on Board
Several Major Sites Already on Board Institution Units Location SCRIPPS CLINIC (multiple sites) 21 California, CA BRIGHAM AND WOMAN’s 21 Boston, MA MASSACHUSETTS GENERAL 26 Boston, MA JOHNS HOPKINS 20 Baltimore, MD BETH ISRAEL DEACONESS MEDICAL CENTER INC 38 Boston, MA WALTER REED NATIONAL MILITARY
Slide 16: Strong Customer Satisfaction to Date
Strong Customer Satisfaction to Date Successful “Try it and Buy it Program” − 80+ sites trialled − An average of 2.5 units sold per unit trialled What the market is saying about trophon: EFFICIENT: Independent cost / benefit analysis concludes trophon® EPR is more efficient and easy to use – s
Slide 17: Platform for Future Growth
Platform for Future Growth Utilising our strong IP position to develop extended applications for our disinfection technology − R&D team of 8 people − FY13 A$2m-A$3m budget on new product development − ENT market and TEE (Trans oesophageal Echocardiography) probes − Investigation of expanded applic
Slide 18: FY13 Priorities / Upcoming milestones
FY13 Priorities / Upcoming milestones Leverage investment in sales resources by NAN, GE and Toshiba to accelerate growth in key markets of North America and Europe Maximise penetration in home market – Australia and New Zealand Build on early momentum in Hong Kong; launch in Singapore Active
Slide 19: Appendices
nanoSonics _’ APPENDICES
Slide 20: Capital Structure and Register
Capital Structure and Register As of March 31, 2013 (all figures in AUD) Shares on issue ~261.6 million shares Market capitalisation ~$120 million Cash balance $24.9 million Average daily trading volume (12 months) 0.188 million shares Share register breakdown Substantial shareholders % Founders and
Slide 21: Recent Financial Performance
Recent Financial Performance A$’000s 2010 2011 2012 Operating Revenue 763 2,247 12,301 % Change y-o-y 147% 194% 447% Cost of Sales (284) (981) (4799) Gross Profit 479 1,266 7,502 Over Income - Government Grants 161 – 150 Operating Expenses (8,827) (13,229) (12,634) % Change y-o-y -11% 50% -4% EBITDA
Slide 22: Company History – Major Events
Company History – Major Events 2001: Founded to develop or commercialise nano- nebulant technology for Mar 2009: First low temperature Trophon sales to disinfections Australian market Jun 2012: A$10m+ Apr 2008: Trophon Feb 2011: Trophon Jul 2011: North North American revenue CE mark certification FD
Slide 23: Executive Team
Executive Team Joined the company in August 2004 and was appointed Managing Director and CEO in December 2011 Ron Weinberger Co-inventor of several key Nanosonics’ inventions which underpin the company’s technology platform CEO and Executive Director Has a PhD in medical research and over two
Slide 24: Board of Directors
Board of Directors Appointed Non-Executive Chairman March 2007, Director since 2000 Maurie Stang Entrepreneur with over 20 years of experience in building and managing companies in the healthcare and Non-Executive Chairman biotechnology sector Currently Non-Executive Chairman of Aeris Environm