Fisher & Paykel Healthcare Corporation Limited · NZX:FPH
Fisher & Paykel Healthcare — Deutsche Bank Securities 27th Annual Health Care Conference (May 2002)
22 slides from Fisher & Paykel Healthcare's conference presentation, May 2002
Slide 1: Deutsche Bank Securities 27th Annual Health Care Conference
Deutsche Bank Securities 27th Annual Health Care Conference
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may include forward-looking statements and actual results could vary. Such forward-looking statements, including statements regarding our future revenue and earnings projections and the development of new markets for our products, are subject to risks and
Slide 3: Investment Highlights
Investment Highlights • Leading player in heated humidification devices and consumables for a variety of respiratory markets - estimated US$1 billion+ market opportunity • High level of innovation • Global presence • Competitive NZ cost base • Strong financial performance • Experienced management te
Slide 4: Markets and Products
Markets and Products • Respiratory humidification – respiratory humidifiers, % of Sales by Product chambers, breathing circuits and accessories • Obstructive sleep apnea Neonatal & Other – integrated flow generator- 13% Respiratory humidifiers, humidifiers, masks Humidification and chambers 52% • Ne
Slide 5: Respiratory Humidification
Respiratory Humidification • Normal airway humidification is bypassed or compromised during ventilation or O2 therapy • Mucociliary transport system operates less effectively – increases risk of infection – impairs gas exchange • Need to deliver gas at physiologically normal levels – 37°C body core
Slide 6: Market Opportunity
Market Opportunity Humidification systems are utilized to create, control and deliver optimal levels of humidity • Estimated US$350 million market worldwide – consists of heated humidifier controllers, humidifier chambers, breathing circuits, unheated humidifiers and related supplies – 1.5 million i
Slide 7: Fisher & Paykel's Humidification Systems
Fisher & Paykel’s Humidification Systems Fisher & Paykel has a full range of industry-leading respiratory humidification systems Products include: MR850 Respiratory Humidification System • invasive ventilation, O2 therapy and non-invasive ventilation • patented flow measuring technology • integrated
Slide 8: Single-use Components
Single-use Components • Single-use chambers – patented auto filling MR290 – manual filling models • Single-use adult breathing circuits – patented spiral heater wire – less condensation – delivery of optimal humidity à On average, 35 system set-ups used per controller per year
Slide 9: Competitive Advantage
Competitive Advantage • Creating, controlling and delivering optimal humidity poses technical challenges • Integrated humidifier, chamber, circuit system provides: – optimal performance – marketing advantage • Bundled consumable sales driven by installed controllers – Estimate F&P has >50% global co
Slide 10: Obstructive Sleep Apnea
Obstructive Sleep Apnea • Estimated US$500 million worldwide market, growing 15%-20% • Temporary closure of airway during sleep • Can greatly impair quality of sleep, leading to fatigue and reduced cognitive function; also associated with stroke and Normal breathing heart attack • 12 million affecte
Slide 11: Benefits of Heated Humidification with OSA
Benefits of Heated Humidification with OSA Compliance can be greatly improved with heated humidification Clinical studies have found that: • Mouth leak resulted in nasal congestion and increased nasal airway resistance (Richards, Journal of Respiratory Care Medicine, 1996) • More patients abandoned
Slide 12: Fisher & Paykel's OSA Systems
Fisher & Paykel’s OSA Systems Fisher & Paykel has a broad range of CPAP products, including flow generators, humidifiers and masks Products include: HC150 Humidifier • suitable for use with most OSA flow generators • patented ambient tracking system HC221 Integrated Flow-Generator Humidifier • compa
Slide 13: Mask Systems
Mask Systems • Aclaim™ Nasal Mask – proprietary sliding attachment – auto-adjusting headpiece – bias flow diffuser à less leaks, greater comfort • Oracle™ Oral Mask – proprietary oral interface – no headgear required
Slide 14: Competitive Advantage
Competitive Advantage • Leveraging heated humidification expertise into rapidly growing market – increased penetration of heated humidification in OSA à Fisher & Paykel is the pioneer of heated humidification technologies in OSA • Benefits of integrated flow-generator humidifier • Recently-introduce
Slide 15: Neonatal Warmers and CPAP
Neonatal Warmers and CPAP • Radiant Warmers – 400,000 pre-term live births per year in US – warmers required in delivery and NICU – precise and stable temperature control • Infant CPAP System – proprietary bubble CPAP, non- invasive, oscillating pressure – lower risk alternative to ventilation
Slide 16: Research & Development
Research & Development • 120 engineers, scientists, physiologists • Competitive NZ cost base • Integrated product teams • Rapid prototype development • Active clinical research program • 26 US patents, 18 pending
Slide 17: Recent Product Launches
Recent Product Launches Timing Product CY 2001 Actual Aclaim™ Mask Oracle Mask Infant CPAP System HC150 Humidifier HC221 Integrated Flow Generator Next 6-12 months MR810 Humidifier Neonatal breathing circuits à Continuously introducing new features and advancements to our existing product lines
Slide 18: Global Presence
Global Presence % of revenue* • Direct – hospitals, alternate site, home care Europe dealers 28% North – sales offices in USA/Canada, America UK/Ireland, France/Benelux, 45% Germany/Austria, Australia and NZ • Distributors – 100 distributors worldwide - 90 countries Asia/ Other Pacific • Original Eq
Slide 19: Revenue Growth
Revenue Growth CAGR: 16.3% 80 60 FY 1999 FY 2000 CAGR: 8.3% FY 2001 US$M 40 CAGR: 56.2% 20 FY ends 3/31 CAGR: 32.7% 0 Respiratory OSA Warming/ Other * TOTAL Humidification Neonatal * Other includes distributed and discontinued products
Slide 20: Operating Results
Operating Results 9 mths to 31 Dec 01 Dec-01 Dec-00 US$m US$m %ê Operating revenue (Core) 60.8 54.2 +12 Gross profit 45.7 41.6 +10 SG&A 17.6 15.2 +16 R&D 3.1 2.6 +19 Operating profit 24.9 23.8 +5 Earnings after tax 17.4 12.7 +37 Diluted earnings per ADS $0.60 $0.43 +39 Gross margin 70% 69% Operating
Slide 21: Investment Highlights
Investment Highlights • Leading player in heated humidification devices and consumables for a variety of respiratory markets - estimated US$1 billion+ market opportunity • High level of innovation • Global presence • Competitive NZ cost base • Strong financial performance • Experienced management te
Slide 22: Fisher & Paykel Healthcare
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