ResMed Inc. · NYSE:RMD
ResMed — JP Morgan Healthcare Conference 2015
30 slides from ResMed's conference presentation, Jan 14, 2015
Slide 1: JP Morgan Healthcare Conference
JP Morgan Healthcare Conference Mick Farrell - CEO January 14, 2015
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Statements contained in this release that are not historical facts are “forward-looking” statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements -- including statements regarding ResMed's projections of future re
Slide 3: Who We Are / Why Invest / Where We're Going
WHO WE ARE WHY INVEST WHERE WE’RE GOING ©ResMed 2014 I 3
Slide 4: Overview
Overview Global leading developer, manufacturer and marketer of medical solutions to treat and manage sleep-disordered breathing, chronic obstructive pulmonary disease and other chronic respiratory conditions. • Operate in more than 100 countries directly and with distribution partners • Integrated
Slide 5: Holy Grail: Improve outcomes & reduce healthcare costs
Holy Grail: Improve outcomes & reduce healthcare costs • Improve quality-of-life for patients • Prevent chronic disease progression • Reduce costs of managing chronic disease ©ResMed 2014 I 5
Slide 6: Opportunity to shift care from hospital to home
Opportunity to shift care from hospital to home Source: OECD report (2011) – WHY IS HEALTH SPENDING IN THE UNITED STATES SO HIGH? www.oecd.org ©ResMed 2014 I 6
Slide 7: We can reduce costs of key chronic diseases
We can reduce costs of key chronic diseases $403 billion Annual costs per chronic condition $165 billion* $147 $145 billion billion Obstructive Sleep Apnea CVD & Stroke $20 billion Obesity Diabetes Asthma MMWR, Vol 60, 2011 CDC National Asthma CDC, National Diabetes Eric A. Finkelstein, et al, Healt
Slide 8: Who We Are / Why Invest / Where We're Going
WHO WE ARE WHY INVEST WHERE WE’RE GOING ©ResMed 2014 I 8
Slide 9: Why invest
Why invest Strong Portfolio Strong Performance Growth Drivers Broad range of Solid revenue growth Underpenetrated products & solutions track-record global SDB market − Wireless, cloud- New adjacent markets Operational excellence connected devices in COPD and HF is part of our DNA − End-to-
Slide 10: Q1 2015 Results
Q1 2015 Results Key Financial Metrics Q1 2015 $380M Revenue +6% (6% CC) Gross margin 62.4% $83M GAAP net income +3% $0.58 GAAP EPS +4% Operating profit $95M Cash flow from operations $87M ©ResMed 2014 I 10
Slide 11: Diversified revenue sources by region & product
Diversified revenue sources by region & product Masks & Accessories 44% Europe 35% Flow Generators Americas 56% 54% Asia-Pacific 11% ©ResMed 2014 I 11
Slide 12: Strong financial performance
Strong financial performance (USD in Billions, except EPS) Revenue Net Income 11% 19% CAGR CAGR $0.3 $1.6 $0.9 $0.1 2009 2014 2009 2014 EPS Free Cash Flow 21% 20% CAGR CAGR $2.42 $0.3 $0.95 $0.1 2009 2014 2009 2014 ©ResMed 2014 I 12
Slide 13: Robust capital management
Robust capital management Capital Deployment FCF returned to Increasing Dividend Investment for Growth Shareholders 2014 Dividend payout ratio of New products 2014 combined dividend and 41% of net income stock repurchase = 110% of Geographic expansion 2014 dividend per share free cash flow
Slide 14: Who We Are / Why Invest / Where We're Going
WHO WE ARE WHY INVEST WHERE WE’RE GOING ©ResMed 2014 I 14
Slide 15: Horizon 1: Core Market Growth
Horizon 1: Core Market Growth Patient Growth Time ©ResMed 2014 I 15
Slide 16: Sleep-Disordered Breathing: New Platform
Sleep-Disordered Breathing: New Platform ResMed introduces the AirSolutions Platform • The ResMed AirSolutions Platform provides cloud-connected data access • Provides value to patients, providers, payers, and physicians • End to end solutions across the patient pathway Mgmt by Remote Self- Diagnosi
Slide 17: U-Sleep Solution – Improves Outcomes and Efficiency
U-Sleep Solution – Improves Outcomes and Efficiency Patient U-Sleep Clinician Mobile Application Automated Data Email, Patient using AirView™ ResMed wireless- * transmitted daily data server Text & Voice Manager enabled Notifications CPAP device Integrations to 3rd party and customer healthcare Bill
Slide 18: AirFit – World-leading Patient Interfaces
AirFit – World-leading Patient Interfaces 50% quieter & lighter Compact, user-friendly Compact design Easy to fit design Ease of use Visual freedom Ease of use; comfort Patients ranked #1 for seal, Visual freedom comfort and ease of use Patients ranked #1 compared to industry mas
Slide 19: We continue to build sleep apnea awareness
We continue to build sleep apnea awareness “Ignorance is our major competitor” • “Better Sleep for Women” education and product focused campaign • S+ by ResMed – consumer sleep management solution available online and retail; connected to Apple HealthKit ©ResMed 2014 I
Slide 20: Horizon 2: Adjacent Market Growth
Horizon 2: Adjacent Market Growth Patient Growth Time ©ResMed 2014 I 20
Slide 21: Our new respiratory care platform: Astral
Our new respiratory care platform: Astral ResMed introduces the Astral life support ventilator in the U.S. Designed to enrich life for patients • Greater freedom: patient quality of life • Ease of use: saves time • Lower total cost of ownership: efficiency * The Astral™ platform is water resistant,
Slide 22: Broad respiratory care solutions
Broad respiratory care solutions Life Support Ventilation Non-invasive Ventilation Astral™ 100 and Stellar™ 100 and Astral™ 150 Stellar™ 150 S9™ VPAP ST-A with iVAPS Bilevel Devices VPAP™ S, VPAP™ Auto VPAP™ COPD - First and only FDA-cleared device for chronic obstructive pulmonary disease
Slide 23: Non-invasive ventilation reduces COPD mortality
Non-invasive ventilation reduces COPD mortality • Relative risk of death reduced by 76% over one year using long-term non-invasive ventilation (NIV) treatment in COPD patients • One-year mortality in the two matched chronic obstructive pulmonary disease cohorts was: 12% (intervention cohort) versus
Slide 24: Horizon 3: New Business Growth
Horizon 3: New Business Growth Patient Growth Time ©ResMed 2014 I 24
Slide 25: Sleep apnea: Highly prevalent in key diseases
Sleep apnea: Highly prevalent in key diseases Stroke Heart Failure 63% 76% Drug-Resistant Depression Hypertension 45% 83% Type 2 Coronary Diabetes Artery Disease 72% 57% Obesity A-fib 77% 49% Prevalence References: Logan et al. J. Hypertension; O’Keefe and Patterson, Obes Surgery; Oldenburg et al,,
Slide 26: Heart Failure & Sleep-Disordered Breathing
Heart Failure & Sleep-Disordered Breathing Treatment of Sleep Disorders – 2013 ACCF/AHA Recommendation: Continuous positive airway pressure can be beneficial to increase left ventricular ejection fraction and improve functional status in patients with heart failure and sleep apnea. References: Yancy
Slide 27: World-leading research in Heart Failure & SDB
World-leading research in Heart Failure & SDB ResMed is involved in two clinical studies to demonstrate impact of our PaceWave™ adaptive servo-ventilation algorithm on HF outcomes Goal: Demonstrate that our PaceWave™ adaptive servo ventilation can improve mortality and morbidity in patients with c
Slide 28: Changing lives with every breath
Changing lives with every breath In the last 12 months, we changed more than 8 million lives, literally keeping patients breathing… and we are just getting started. Our aspiration is to change 20 million lives by 2020 ©ResMed 2014 I 28
Slide 29: Why invest
Why invest Strong Portfolio Strong Performance Growth Drivers Broad range of Solid revenue growth Underpenetrated products & solutions track-record global SDB market − Wireless, cloud- New adjacent markets Operational excellence connected devices in COPD and HF is part of our DNA − End-to-
Slide 30: Contact Investor Relations
Contact Investor Relations Phone: (858) 836-5971 Email: investorrelations@resmed.com Website: www.investor.resmed.com