Nanosonics Limited · ASX:NAN
Nanosonics — Shareholder Meeting (November 2014)
52 slides from Nanosonics's shareholder meeting presentation, Nov 7, 2014
Slide 1: Leader in Infection Control Solutions - Annual General Meeting
LEADER IN INFECTION CONTROL SOLUTIONS Improving the safety of patients, clinics, their staff and the environment ANNUAL GENERAL MEETING 7 November 2014
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: Chairman's Address
Chairman’s Address Mr Maurie Stang
Slide 4: Strengthening Case for Increased Investment in Preventing HAIs
Strengthening Case for Increased Investment in Preventing HAIs May 2014 NEJM paper recommended increasing surveillance and prevention activities to fight HAIs “Our nation is making progress in preventing healthcare-associated infections through three main mechanisms: • financial incentives to improv
Slide 5: 2014: A Year of Achievements
2014: A Year of Achievements Oct 2014: NHS Wales guidelines positions trophon Nov 2014: Miele EPR as optimal solution expansion in Europe Mar 2014: Miele signed as non-exclusive distributor in Germany Aug 2014: trophon EPR approved for Aug 2013: Updated GE Oct 2013: Nanosonics sale in Japan agreemen
Slide 6: FY2014: A Year of Solid Financial Growth
FY2014: A Year of Solid Financial Growth $21.5 SALES REVENUE $ million Solid revenue growth $14.9 $12.3 Trending to profitability Strong cash reserves $2.2 $0.3 $0.8 CASH 2009 2010 2011 2012 2013 2014 $ million $24.1 $21.2 -$2.6 -$2.6 -$4.7 -$4.5 -$5.8 LOSS AFTER TAX $ million -$11.2 2013 2014
Slide 7: FY14: Strong Market Capitalisation Growth
FY14: Strong Market Capitalisation Growth 12 months (1 Nov ’13 – 31 Oct ‘14) $1.19 130% NAN ($) NAN ASX300 HEALTHCARE ASX ALL ORDS $1.14 120% $1.09 $1.04 110% $0.99 $0.94 100% $0.89 $0.84 90% $0.79 80% $0.74 01 Nov 13 22 Jan 14 10 Apr 14 02 Jul 14 17 Sep 14 01-Nov-13 31-Jan-14 02-May-14 01-Aug-14 31
Slide 8: Growing Media Coverage in 2014
Growing Media Coverage in 2014 59 individual pieces of media coverage in FY14 Top tier coverage across News Ltd and Fairfax publications Strong coverage in healthcare and biotech media Financial Review on Sunday The Australian Smart Investor Australian Financial Review • Story covered the rise
Slide 9: Media Coverage Highlights
“Media Coverage Highlights It’s time to get biotechnical Nanosonics is up 125 per cent since early May as UK orders pick up for its Trophon ultrasound probe disinfector. Nanosonics named healthcare industry’s Company of the Year for 2013 Diagnosis positive for medical advances 3 biotech stocks for a
Slide 10: FY14: Participated in More Than 40 Major Trade Shows/Conferences
FY14: Participated in More Than 40 Major Trade Shows/Conferences 10
Slide 11: FY15 Coming Conferences
““FY15 Coming Conferences SER Société Francaise de Radiologie [e) Institute of 1G Ona sO DEC PF, Decontamination NN Sciences TOOTH SCIENTIFIC ASSEMBLY AND ANNUAL meETING | O'5 12-15 Nov 2014 Diisseldorf - Germany Ya vorid ACIPC pinks Prwctos Sa Conta AUSTRALASIAN SOCIETY FOR ULTRASOUND IN MEDICINE B
Slide 12: Nanosonics Board and Sub-Committees
Nanosonics Board and Sub-Committees R&D and Audit and Risk Remuneration Nomination Innovation Committee Committee Committee Committee (Est. July 2014) Maurie Stang Non-Executive Chairman Michael Kavanagh CEO and President, Managing Director Richard England Non-Executive Director * * * David Fisher N
Slide 13: CEO and President Address
CEO and President Address Mr Michael Kavanagh
Slide 14: A Year of Transformation and Growth
A Year of Transformation and Growth 14
Slide 15: Executive Team
Executive Team Michael Kavanagh Ron Weinberger McGregor Grant Gerard Putt CEO and President President CFO and Company Head of Technology Secretary Manufacturing & Development/ Operations Commercialisation Michael Potas Vincent Wang Ruth Cremin Kirste Courtney Head of RD&D Head of Global Head of Qual
Slide 16: Corporate Mission
Corporate Mission 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. Johns Hopkins Photo Credit: American Nur
Slide 17: Core Corporate Objectives
Core Corporate Objectives We improve the safety of Customer Experience patients, clinics, their staff and the environment by Product Innovation transforming the way infection prevention practices are Operational Excellence understood and conducted, and introducing innovative People Engagement techno
Slide 18: trophon EPR
trophon EPR ® 18
Slide 19: trophon EPR
trophon® EPR Fast Helps protect Consistent Probe friendly Fully enclosed system Probe friendly process. Fast automated high level Quality assured limits exposure to harmful Compatible with more disinfection consistency chemicals than 600 probe models Environmentally Friendly Cost Efficient Effective
Slide 20: Current Workflow with Soaking
Current Workflow with Soaking 20
Slide 21: Delivering Superior Performance and Workflow
Delivering Superior Performance and Workflow 21
Slide 22: "...complete and safer protection for our patients and staff"
“…complete and safer protection for our patients and staff ” “The trophon EPR has been the biggest thing to hit ultrasound since colour Doppler. “trophon was an answered prayer! It has solved so many high level disinfection (HLD) issues while offering more complete and safer protection for our patie
Slide 23: Infection Control – a Major Healthcare Issue
Infection Control – a Major Healthcare Issue 1.7 Million 1 in 25 people are infected in U.S. patients will acquire hospitals every year1, more than breast and prostate an infection during cancer combined2 a hospital stay1 HAI’s cost the U.S. 3.2 Of the 1.7 million up to infected in the US, $147 70%
Slide 24: Growing Awareness of Imaging Procedure HAIs
Growing Awareness of Imaging Procedure HAIs 0.9 - 9% of barrier sheaths and condoms leak1 A meta-analysis has shown that 12.9% of transducers are contaminated with pathogenic bacteria following routine disinfection2 HPV, a known cause of cervical cancer, has been found on up to 7.5% of transva
Slide 25: trophon EPR Assists Compliance with Guidelines
trophon EPR Assists Compliance with Guidelines TJC Quick Safety 2014 identified Infection Control as one of the top five non-compliant TJC requirements1 In addition1 • Of 13 immediate threat to life (ITL) discoveries from surveys conducted in 2013, seven were directly related to improperly steri
Slide 26: trophon EPR Positioned to Meet Stricter Reprocessing Controls
trophon EPR Positioned to Meet Stricter Reprocessing Controls New American Institute of Ultrasound in Medicine (AIUM) guidelines released in May reinforce importance of high level disinfection 26
Slide 27: trophon EPR Positioned to Meet Stricter Reprocessing Controls
trophon EPR Positioned to Meet Stricter Reprocessing Controls New NHS Wales Guidelines position automated, validated decontamination systems as the optimal solution for ultrasound probe decontamination 27
Slide 28: New Studies Continue to Demonstrate Superior Clinical Efficacy
New Studies Continue to Demonstrate Superior Clinical Efficacy of trophon EPR European study showed trophon EPR to be significantly more effective than manual quaternary ammonium compound wipe disinfection. Study at The John Hopkins Hospital in the US showed need for disinfection of intracavity and
Slide 29: Evidence Emerging for Need to Decontaminate Surface Probes
Evidence Emerging for Need to Decontaminate Surface Probes The recent John Hopkins study showed bacterial contamination on both intracavity and surface probes (heads and handles) prior to disinfection In all cases, disinfection in the trophon EPR produced a statistically significant reduction in
Slide 30: 2014: Sales Revenue up 44%
2014: Sales Revenue up 44% $ million H1 H2 FY14 FY13 Operating revenue 9.7 11.8 21.5 14.9 Gross Profit 6.0 7.9 13.9 8.5 % 62% 67% 65% 57% Other Income 0.8 2.6 3.4 1.5 Q1 Q2 21.5 Operating Total Sales (10.3) (9.8) (20.1) (16.4) In Millions expenses 6.6 14.9 EBIT (3.5) 0.7 (2.8) (6.4) 12.3 6.3 5.2 Int
Slide 31: Strong Market Capitalisation Growth
Strong Market Capitalisation Growth 12 months (1 Nov ’13 – 31 Oct ‘14) $1.19 130% $1.14 NAN ($) NAN $1.09 120% $1.04 110% $0.99 $0.94 100% $0.89 $0.84 90% $0.79 $0.74 80% 01-Nov-13 31-Jan-14 02-May-14 01-Aug-14 31-Oct-14 01 Nov 13 22 Jan 14 10 Apr 14 02 Jul 14 17 Sep 14 31 Oct 14 30 Jun 14 30 Jun 13
Slide 32: Growing Media Coverage in 2014
Growing Media Coverage in 2014 59 individual pieces of media coverage in FY14 Top tier coverage across News Ltd and Fairfax publications Strong coverage in healthcare and biotech media Financial Review on Sunday The Australian Smart Investor Australian Financial Review • Story covered the rise
Slide 33: Media Coverage Highlights
Media Coverage Highlights 33
Slide 34: 2014 Sales – All Regions Contributing
2014 Sales – All Regions Contributing FY13 FY14 10% 2% 7% 11% 82% 88% North America ANZ Europe / Others 34
Slide 35: Strong Sales Growth in North America
Strong Sales Growth in North America $17.7 FY14 sales of $17.7 million up 34% on Sales $ million FY13 $13.2 $10.2 Trophon now represented in 42 of the top 50 hospitals and in over 1750 sites 2012 2013 2014 35
Slide 36: Johns Hopkins Study
Johns Hopkins Study Confirmed trophon EPR efficacy & Guidelines are justified: cleaning and use of probe covers alone do not sufficiently reduce transmission risk. HLD is required SURFACE TRANSDUCER EVIDENCE – “Cleaning alone does not appear to be sufficient to reduce transmission risk” Handle
Slide 37: Strategic Partnership with APIC
Strategic Partnership established with the Association for Professionals in Infection Control and Epidemiology (APIC) Provides consistent visibility through out the year 40% growth in APIC membership in last 5 years More than 15,000 APIC members 37
Slide 38: Nanosonics US Service and Repair Facility Established
Nanosonics US Service and Repair Facility Established 38
Slide 39: European Highlights
European Highlights Sales $1.6 $ million $0.4 $0.2 2012 2013 2014 FY14 sales of $1.7 million, greater than five fold increase in FY13 Validation trials conducted in UK demonstrating efficacy of trophon. Miele Professional appointed as German distributor in March and market development activiti
Slide 40: European Market Expanding
European Market Expanding 40
Slide 41: Strong Growth in the UK and Ireland
Strong Growth in the UK … and Ireland Trophon EPR now present in 27 hospital sites throughout UK and Ireland 41
Slide 42: New Ultrasound Probe Guidance Published in Wales
New Ultrasound Probe Guidance Published in Wales An automated, validated system positioned as optimal solution The decontamination of transvaginal and transrectal probes should take place in the location they are being used, ie, point of care For quality assurance/traceability purposes, a docu
Slide 43: Barts Health NHS
Barts Health NHS' NHS Trust Major nrObhon EPR Order Secured at Top London Hospital :
Slide 44: Momentum Building in Germany
Momentum Building in Germany Miele distribution partnership signed Congress of German society of hospital hygiene (DGKH, April 2014) Publications – Heeg/Gauer, VAH negative virucidal efficacy of wipes, first 1yr customer experience M&K Award winner 2014 Scientific presentations at expert m
Slide 45: Market development in France progressing well
Market development in France progressing well trophon EPR now on a number of Public and Private Hospital Tenders (UGAP, AGEPS, HELPEVIA & CACIC) Presented at a number of Key Conferences and Educational Events KOL program development Local clinical trial plans under development 45
Slide 46: Continued Growth in Australia and NZ
Continued Growth in Australia and NZ trophon EPR now present in 520 sites across Australia & NZ 46
Slide 47: Japan Regulatory Approval Granted
Japan Regulatory Approval Granted 47
Slide 48: Active R&D Program
Active R&D Program Manufacturing Engineering Number of granted/accepted Sustaining Engineering patents has doubled since April Next Generation trophon 2013 – from 47 to 95 New Products 48
Slide 49: Active R&D
Active R&D ? Future Chemistries Accessories trophon EPR products 49
Slide 50: Identifying New Markets
Mobile phone technology and hospitalized patients: a crot ‘surveillance study of bacterial colonization, and patient of, behaviours a en A eA Yt A Ra A a ‘atone Hn Gg Oen fk i Nos wf Abra Pamnentennirer wna omennnnnyn i! ing New Markets Contamination of blood pressure cuffs by methicillin-resistant
Slide 51: Business Outlook – Positioned for Continued Growth
Business Outlook – Positioned for Continued Growth • Market fundamentals continue to strengthen – Increasing awareness of imaging related healthcare acquired infections – Supporting Guidelines for automated HLD solutions – Excellent clinical data and customer value propositions • Continuing to Expan
Slide 52: Thank You
nanoSonics UL’ Thank You