Nanosonics Limited · ASX:NAN
Nanosonics — H1 FY20 Earnings Presentation
19 slides from Nanosonics's earnings presentation, Feb 26, 2020
Slide 1: 2020 Half Year Results Investor Presentation
2020 Half Year Investor Presentation Results Michael Kavanagh CEO and President McGregor Grant CFO and Company Secretary
Slide 2: FY20 Half Year Highlights
FY20 HALF YEAR – Total Revenue ($’m) Capital Revenue ($’m) HIGHLIGHTS 84.3 32.8 Total revenue down 12% Total revenue up 19% 16.4 • Record first half sales of $48.5 million, up 19% on prior corresponding on PCP 12% 14.4 period (PCP) and 11% on prior half. on PCP 11% 16.4 • Continued strong global ins
Slide 3: Installed Base Growth
INSTALLED BASE Global Installed Base 20,930 22,500 GROWTH 17,740 14,160 10,130 Global installed base up Global installed 17% in the last 12 months base grew 17% in FY16 FY17 FY18 FY19 FY20 H1 last 12 months and 8% in last 6 months to North America 22,500 19,930 18,570 North America 15,620 installed
Slide 4: Nanosonics revenue profile
RANGE OF SELLING MODELS 1 Direct Channel Distribution Channel Managed Full Service Capital Capital Sale Equipment Service Rental Distribution Reseller Market • Capital equipment • Nanosonics provides • Customer rents capital • Distributor purchases • Distributor purchases sold upfront with capital e
Slide 5: Financial Overview
Financial FY20 First Half Overview
Slide 6: Revenue
REVENUE Total Revenue ($’m) 84.3 Half year revenue up 19% on PCP to $48.5 million 67.5 60.7 43.6 31.4 42.8 30.7 Total revenue up Consumables and Service sales up 40% on PCP to 19% $34.1 million 27.2 on PCP 11% 48.5 40.7 36.1 30.0 on FY19 H2 reflecting: growing installed base; impact of 15.6 increase
Slide 7: Revenue Mix by Region
REVENUE MIX BY REGION NORTH AMERICA Total Revenue ($’m) Capital Revenue ($’m)* Consumables / Service Revenue ($’m) 76.5 Total Total Total revenue up revenue down revenue up 39.4 18% on PCP 14% on PCP 45.5 41% on PCP 31.0 11% 12% 26% 24.0 * Capital revenue includes sales to end user customers which 4
Slide 8: Operating Expenses and Profit Before Tax
OPERATING Operating Expenses ($’m) 49.2 EXPENSES 42.6 • Operating expenses of $30.7 million for the half, 37.0 up 11% on prior half and 32.1 27.7 43% on PCP. $30.7million 23.3 • Continued investment 19.9 in our growth strategy, 22.8 15.5 including expansion of for the half our regional operations, 1
Slide 9: Free Cash Flow and Cash Equivalents
FREE CASH FLOW Free Cash Flow ($’m) 15.1 Free cash flow for the half year was $10.0 million $10.0 million compared with $1.6 million 10.0 in prior corresponding period ($2.6 million in FY19), for the half reflecting increased 6.2 receipts from customers and lower inventory. 2.6 1.9 2016 2017 2018 20
Slide 10: Profit and Loss Summary
PROFIT AND LOSS SUMMARY FY20 FY19 Change FY19 Change Highlights $ million H1 H1 % H2 % • Sales of $48.5 million ($45.8 million Total revenue 48.5 40.7 19% 43.6 11% in constant currency1), up 19% (13% in constant currency1) vs PCP. Gross profit 36.4 30.6 19% 32.3 13% • Gross profit of $36.4 million,
Slide 11: Significant Global Market Opportunity
SIGNIFICANT GLOBAL MARKET OPPORTUNITY Installed Base Opportunity 1 Market Penetration 2 Global Global 20,930 22,500 120,000 19% 17,740 • Increasing number of international guidelines requiring high level 14,160 disinfection (HLD) supporting growing international demand. 10,130 • Nanosonics expanding
Slide 12: Expanding Global Presence
EXPANDING GLOBAL PRESENCE Norway Denmark South Korea Partnership in place with GE Healthcare Partnership in place Regulatory approval in place. with GE Healthcare Exploring distributor partnership for market entry United Kingdom Sweden Nanosonics direct operation in place and Partnership in place gr
Slide 13: New Product Development
New Product Development
Slide 14: Significant investments being made in Research & Development
Significant investments are being made in Research & Investment in R&D ($’m) Development 11.4 up 15% in half to $6.8 million. 9.5 9.9 5.9 7.3 5.3 5.2 4.0 4.9 4.1 2.6 6.8 2.2 5.5 4.6 4.3 3.3 2.3 1.9 2014 2015 2016 2017 2018 2019 2020 H1 H2 13 Investor Presentation February 2020
Slide 15: New Product Development
NEW PRODUCT Instrument Cleaning Mandatory critical first step DEVELOPMENT Compliance and which sets up the effectiveness of all downstream disinfection Traceability procedures. Digitally-enabled tools to increase visibility and Our core areas of control around infection risk mitigation. R&D interest
Slide 16: Nanosonics' Next New Platform Technology
Instrument Cleaning NANOSONICS’ NEXT NEW PLATFORM TECHNOLOGY Compliance and Traceability • Nanosonics is investing significantly to progress its next new innovative platform technology, which is being designed to address a major unmet need in infection prevention today. • Would involve both capital
Slide 17: Our Strategic Priorities
OUR STRATEGIC PRIORITIES Trophon as Expand geographic Product expansion Invest to grow standard of care footprint • Expand portfolio of • Maintain strong financial • Support establishment of • Expand operations infection prevention position to support international guidelines. across Asia Pacific an
Slide 18: Business Outlook
BUSINESS OUTLOOK FY20 The Company is targeting: • Continued growth in installed base in North America with FY20 adoption similar to FY19. • Adoption of trophon in Europe to grow from: – Expanded geographical reach, stronger fundamentals for adoption and growing awareness; and – Ongoing investment in
Slide 19: Thank you
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