Nanosonics Limited · ASX:NAN
Nanosonics — Shareholder Meeting (November 2017)
48 slides from Nanosonics's shareholder meeting presentation, Nov 3, 2017
Slide 1: 2017 Annual General Meeting
Nanosonics Limited For personal use only 2017 Annual General Meeting 3 November 2017
Slide 2: Disclaimer
Disclaimer For personal use only 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, fina
Slide 3: Nanosonics' Board and Secretaries
Nanosonics’ Board and Secretaries For personal use only Maurie Stang Steven Sargent Michael Kavanagh Chairman, Non-Executive Director Deputy Chairman , Non-Executive Director CEO and Executive Director Marie McDonald David Fisher Richard England Non-Executive Director Non-Executive Director Non-Exec
Slide 4: Chairman's Address
For personal use only Chairman’s Address Mr Maurie Stang Nanosonics Limited 2017 Annual General Meeting 2017 Nanosonics | 4
Slide 5: FY17 - Full year financial results
FY17 - Full year financial results For personal use only Highlights $ million FY17 FY16 Change% ► Sales of $67.5 million, up 58% vs FY16 Sale of goods and services 67.5 42.8 58% ► Gross profit of $50.2 million, or 74% of sales ► Total operating expenses of $38.1 million Gross profit 50.2 32.2 56% %
Slide 6: Global installed base continues to grow
Global installed base continues to grow For personal use only 12,400 10,700 8,700 6,700 5,000 4,000 H2 H2 H1 H2 H1 H2 FY15 FY16 FY17 2017 Nanosonics | 6
Slide 7: New studies and guidelines reinforce the need for High Level Disinfection
New studies and guidelines reinforce the need for High Level Disinfection For personal use only 2017 Nanosonics | 7
Slide 8: Nanosonics and GE Healthcare extend trophon relationship
Nanosonics and GE Healthcare extend trophon For personal use only relationship ► New 3 Year Capital Reseller agreement comes into effect on 1 July 2019 at end of current Distribution agreement. ► Agreement is part of Nanosonics’ global Ultrasound OEM program. ► GE Healthcare will have ongoing access
Slide 9: Focussed ramp up in R&D program
Focussed ramp up For personal use only in R&D program ► Large unmet needs exist in infection prevention. ► Increased investment in R&D in FY17 by 30% to $9.5 million and further growth in FY18 to approx. $14 million ► Solid progress made on a number of new products which are moving from the research
Slide 10: Nanosonics' Board
Nanosonics’ Board For personal use only Maurie Stang Steven Sargent Michael Kavanagh Chairman, Non-Executive Director Deputy Chairman , Non-Executive Director CEO and Executive Director Marie McDonald David Fisher Richard England Non-Executive Director Non-Executive Director Non-Executive Director 2
Slide 11: Environmental, Social and Governance
Environmental, Social and Governance For personal use only Nanosonics’ commitment to environmental, social and governance (ESG) factors is embedded in the Company’s culture and approach to business. 2017 Nanosonics | 11
Slide 12: Chairman's Address
For personal use only Chairman’s Address Mr Maurie Stang Nanosonics Limited 2017 Annual General Meeting 2017 Nanosonics | 12
Slide 13: Mr Michael Kavanagh, Chief Executive Officer & President
For personal use only Mr Michael Kavanagh Chief Executive Officer & President Nanosonics Limited 2017 Annual General Meeting 2017 Nanosonics | 13
Slide 14: Senior Leadership Team
Senior Leadership Team For personal use only Dr. Ron Dr. Steven Gerard Putt Ken Shaw McGregor Grant Weinberger Farrugia Head of Regional CFO and Company President Technology SVP Design & Manufacturing & President Secretary Development/ Development Operations Americas Commercialisation Anthony Bryn T
Slide 15: Our Mission
Our Mission For personal use only We improve the safety of patients, clinics, their staff and the environment by transforming the way infection prevention practices are understood and conducted and introducing innovative technologies that deliver improved standards of care. 2017 Nanosonics | 15
Slide 16: Corporate objectives
Corporate objectives For personal use only Customer Product Operational Experience Innovation Excellence Establish our offerings as new Create and bring to market a Develop an agile operation with standards of care globally and portfolio of innovative and quality scalable, compliant and provide cust
Slide 17: trophon System
trophon® System For personal use only Safe Versatile Simple • Patient - most • Compatible with over • Simple to use – one button comprehensive portfolio of 1,000 probes including operation efficacy testing in probe intracavity and surface • Fast 7 minute cycle high level disinfection. probes • User
Slide 18: Large market opportunity, attractive revenue model
Large market Attractive revenue opportunity model For personal use only Global addressable market: ~120,000 trophon EPR units ► ~40,000 Units in North America ► Equivalent sized markets in Europe and RoW 2017 Nanosonics | 18
Slide 19: FY17 - Highlights
FY17 - Highlights For personal use only Significant achievements across all aspects of Nanosonics’ business ► Record revenue, up 58% to $67.5 million ► North America installed base, up 42% to 12,400 (global installed base now 14,100) ► Market expansion into Japan ► Investments in R&D delivering resu
Slide 20: Regional updates
For personal use only Regional updates 2017 Nanosonics | 20
Slide 21: North America
North America For personal use only trophon Installed Base ► Key focus is to establish trophon as standard of care across all hospitals and all relevant departments within each hospital. ► Continuing investment in education, sales and marketing activities to drive market awareness on the importance
Slide 22: Ultrasound companies support trophon at major ultrasound conferences
Ultrasound companies Philips GE Healthcare support trophon at For personal use only major ultrasound conferences ► Capital Reseller agreements now in place with all major ultrasound OEMs in USA Hitachi Carestream ► OEMs demonstrate trophon as preferred solution on their trade displays at major ultra
Slide 23: Europe
Europe For personal use only trophon Installed Base ► Momentum of trophon adoption in UK builds in response to guideline changes and the Management Equipment Service (MES) business model. ► UK sales team expanded and new warehouse and service operations established. ► Fundamentals for adoption stren
Slide 24: Managed Equipment Service (MES)
Managed Equipment Service (MES) For personal use only ► Model helps hospitals in UK overcome capital budget constraints and provides an immediate benefit to the customer through earlier access to trophon. ► Ownership of the trophon capital equipment placed in hospitals remains with Nanosonics. ► Fac
Slide 25: Asia Pacific
Asia Pacific For personal use only trophon Installed Base Australia / New Zealand ► ANZ sales grew 22% to $3.1 million. ► New joint guideline between ASUM and ACIPC emphasising the importance of HLD of all semi-critical ultrasound devices. Japan ► Nanosonics entered into a master distribution agreem
Slide 26: Strengthening fundamentals for adoption globally
For personal use only Strengthening fundamentals for adoption globally 2017 Nanosonics | 26
Slide 27: New studies and guidelines reinforce the need for High Level Disinfection
New studies and guidelines reinforce the need for High Level Disinfection For personal use only Guidelines evolving rapidly to reflect disinfection best practice ► World Federation for Ultrasound in Medicine and Biology • Defines semi critical devices as those that pose a higher risk because of cont
Slide 28: Semi-critical probes
Semi-critical probes For personal use only Many surface probe The need for High Level procedures are semi- Disinfection is based on intended critical & require High Level Disinfection probe usage - not probe type ► Educational push by industry Key Opinion Leaders through influential peer reviewed pu
Slide 29: Industry experts issue a call to action
Industry experts issue a call to action… For personal use only ► Preliminary survey highlighted that immediate action is needed to bridge gaps in awareness about ultrasound probe reprocessing requirements, and to enhance education ► The Call to Action explores: • challenges presented by ultrasound p
Slide 30: Follow up study confirms need for stricter HLD controls
Follow up study* confirms need for stricter HLD controls for semi critical probes. For personal use only Example of surface probes requiring HLD where it is not currently performed as standard practice* 100% 77% Probe 66% undergoes 55% LLD/ILD (%) 50% 43% 41% 0% Scan to guide peripheral Scan to guid
Slide 31: First population-level study shows increased infection risk
First population-level study demonstrates increased risk of both infection and antibiotic prescriptions following semi-invasive ultrasound probe procedures For personal use only • Scottish study published by National Service Scotland has shown epidemiological link between improper endocavitary ultra
Slide 32: Growth strategies
Growth strategies For personal use only Expand existing Geographic Product market expansion expansion ► Trophon as Standard of ► Entry into new markets ► Investment in R&D Care for all semi critical with trophon as new ► Targeting two new probes across all guidelines emerge and products in two years
Slide 33: Focussed ramp up in R&D program
Focussed ramp up For personal use only in R&D program ► Large unmet needs exist in infection prevention. ► Increased investment in R&D in FY17 by 30% to $9.5 million and further growth in FY18 to approx. $14 million ► Solid progress made on a number of new products which are moving from the research
Slide 34: Business outlook - Business model evolving
Business outlook - Business model evolving For personal use only ► Installed base continues to grow (key driver for annuity revenue) and fundamentals for adoption internationally strengthening ► Direct Business – Business model mix • Capital equipment sales • Capital equipment rentals • Managed Equi
Slide 35: Business outlook
Business outlook FY18 Beyond FY18 For personal use only ► Continued growth in installed base in North America – FY18 H1 similar ► Continued growth in trophon installed base in all core markets as to FY17 H2 requirements for HLD of all Semi Critical probes is understood and • Uncertainty surrounding
Slide 36: Thank you
For personal use only Thank you 2017 Nanosonics | 36
Slide 37: Formal Business
For personal use only Formal Business Nanosonics Limited 2017 Annual General Meeting 2017 Nanosonics | 37
Slide 38: Resolution: Re-election of a Director – Mr Richard England
Resolution 1 Re-election of a Director – Mr Richard England For personal use only 2017 Nanosonics | 38
Slide 39: Resolution: Re-election of a Director – Mr Richard England
Resolution 1 Re-election of a Director – Mr Richard England For personal use only Resolution: That Mr Richard England, who retires as a Director pursuant to the Company’s Constitution and, being eligible, offers himself for re-election, be re-elected a Director. Proxy votes received For : 117,825,34
Slide 40: Resolution: Re-election of a Director – Dr David Fisher
Resolution 2 Re-election of a Director – Dr David Fisher For personal use only 2017 Nanosonics | 40
Slide 41: Resolution: Re-election of a Director – Dr David Fisher
Resolution 2 Re-election of a Director – Dr David Fisher For personal use only Resolution: That Dr David Fisher, who retires as a Director pursuant to the Company’s Constitution and, being eligible, offers himself for re- election, be re-elected a Director. Proxy votes received Votes for : 144,422,7
Slide 42: Resolution: Remuneration report
Resolution 3 For personal use only Remuneration report Resolution: That the Remuneration Report for the financial year ended 30 June 2017 be adopted. Proxy votes received Votes for : 126,507,912 Against : 2,761,589 Discretion : 739,135 Abstained/Excluded : 17,578,876 2017 Nanosonics | 42
Slide 43: Resolution: Appointment of Auditor
Resolution 4 For personal use only Appointment of Auditor Resolution: That for the purposes of section 327B(1)(b) of the Corporations Act 2001 (Cth), and for all other purposes, Ernst & Young, having been nominated by a shareholder and consented in writing to act in the capacity of Auditor, be appoi
Slide 44: Resolution: Performance Rights to CEO under 2017 STIS
Resolution 5 For personal use only Issue of 45,513 Performance Rights to the Chief Executive Officer and President, Mr Michael Kavanagh, under the 2017 Short Term Incentive Scheme (2017 STIS) Resolution: That approval be given for all purposes under the Corporations Act 2001 (Cth) and the ASX Listin
Slide 45: Resolution: Performance Rights and Options to CEO under 2017 LTIS
Resolution 6 For personal use only Issue of 25,733 Performance Rights and 340,424 Options to the Chief Executive Officer and President, Mr Michael Kavanagh, under the 2017 Long-Term Incentive Scheme Invitation (2017 LTIS) Resolution: That approval be given for all purposes under the Corporations Act
Slide 46: Resolution: Amendment to 2015 Long Term Incentive Scheme
Resolution 7 For personal use only Amendment to the 2015 Long Term Incentive Scheme to remove the “deemed exercise” provisions and allow exercise any time during 3 years after 31 August 2018 Resolution: That approval be given to amending the terms of the 2015 Long Term Incentive Scheme (2015 LTI) by
Slide 47: Resolution: Re-insertion of Proportional Takeover Provisions
Resolution 8 For personal use only Re-insertion of Proportional Takeover Provisions in Constitution Resolution: That the proportional takeover provisions at clause 1.6 of the Company’s Constitution, in the form attached to this Notice of Meeting as Annexure B, be re-inserted into the Constitution fo
Slide 48: Questions
For personal use only Questions Nanosonics Limited 2017 Annual General Meeting 2017 Nanosonics | 48