Compumedics Limited · ASX:CMP
Compumedics — Shareholder Meeting (October 2005)
25 slides from Compumedics's shareholder meeting presentation, October 2005
Slide 1: Defining Life's Signals – Annual General Meeting October 2005
‘Defining Life's Signals’ COMPUMEDICS ‘Defining Life’s Signals’ > Sleep Diagnostics > Brain Research > Neurodiagnostics > Doppler Sonography > Neuromedical Supplies Annual General Meeting * October 2005
Slide 2: Agenda
Agenda Meeting opens Chairman’s address Ordinary business and acceptance of Remuneration Report Commendation to Ko Koike for his dedication to the Board and his valuable years of service. Special thank you from the Chairman, Board and staff Meeting closes Slide 2
Slide 3: Chairman's Address
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Slide 4: Outline
Outline 1. Financial review – June 30, 2005. 2. Review of the past year. 3. Key strategies. 4. Key milestones. 5. The road forward. Slide 4
Slide 5: Financial Review - June 30, 2005
Financial Review - June 30,2005 Record revenues of $38m compared to last year’s $34m. DWL acquired and included in results for 10 months. Underlying sleep, EEG and Neuroscan businesses performed below expectations. Changes have occurred and are showing early signs of working, being the emplo
Slide 6: Corporate Profile
Corporate Profile Over 1,400 beds of sleep diagnostics installed in the USA. No 1 market leader in Brain research in the USA. No 1 market leader in sleep diagnostics in Japan. No 1 market leader position in sleep diagnostics (70% share) in Australia. No. 1 market leader position in clinica
Slide 7: Corporate Profile
Corporate Profile Proprietary technology in three high growth emerging markets. Existing business, with proven technologies and products. Existing business with significant proven organic growth Significant expansion opportunities into: Q USA Q Europe Q Asia The Company has increased its s
Slide 8: Corporate Profile – the markets
Corporate Profile– the markets Compumedics operates in the following emerging high growth markets: Q Sleep disorders • 80% sleep diagnostic market share in Australia • 12% sleep diagnostic market share in the USA and growing • Major market share in Japan • Emerging market share in Europe Q Neuroph
Slide 9: Corporate Profile – existing business
Corporate Profile – existing business Compumedics has been trading since 1987. Compumedics has sold direct in the USA since 2002, with significant opportunity for future growth still to be realised. USA growth complimented by Asian and European opportunities, particularly China, Germany and Fr
Slide 10: Overview – Key Milestones
Overview – Key Milestones AWARDS 2004 Deloitte Technology Fast 50 2003 Frost & Sullivan Award for Market Expansion 2003 David Burton-Centenary Medal Compumedics has an impressive 2002 David Burton-Clunies Ross National Science and track record of achievement : Technology Award 2001 Governor of Victo
Slide 11: Key Clients
Koy Clients ~ Urticestty ct Nita [fart Fliraters Unevees ty Wir ~ Unbverstty ct Casareiand (tard ~ Untversaty ct Syeiney (ard) ~ University ct Mow Catia Runt ~ Setrburne Centra tr Applied Warratoree (fant) ~ Shrstip Chara Hepat Pe ata} Unerceaty of Catterran Cant: ESA) ~ Pertain Ep tapray Cortor (SA
Slide 12: DWL Acquisition – an update
DWL Acquisition – an update DWL business is up and running. Complementary brain function technology based on Doppler Sonography. Building our base in Europe. 60% market share in Germany. Good opportunity to globalise technology. Sales to be approximately $6m in 2006. Slide 12
Slide 13: Performance relative to previous period
Performance relative to previous period 12 mths to 12 mths to 12 mths to $Am June 30 June 30 June 30 2003 2004 2005 Operating 32.1 34.0 38.2 Revenue EBITDA 1.9 2.9 (2.6) EBIT (18.8) 2.4 (3.9) Profit after Tax (18.6) 2.4 (3.9) Gross Margin 57% 59% 53% EBITDA/Op. 6% 9% (7%) Revenue Profit after tax/Op
Slide 14: Balance Sheet relative to PCP
Balance Sheet relative to PCP June 2005 June 2004 A$’000 A$’000 CURRENT ASSETS Cash assets 3,922 6,352 Receivables 11,239 10,239 Inventories 5,963 6,481 Other 426 69 Total current assets 21,549 23,141 NON CURRENT ASSETS Other 119 - Property, plant and equipment 1,521 1,368 Intangible assets 1,361 -
Slide 15: Financial Performance
Financial Performance Costs under focus Q Investments in new sales and marketing resources have been made so the company will continue to be vigilant with monitoring its expenses whilst these incremental expenses bear fruit through greater sales. Margins Q June 04 – 57%, June 05 – 53%. Q A renew
Slide 16: First quarter trading performance
First quarter trading performance Due to the end of September sales not being as strong as anticipated in the company’s financial modeling, the company is not compliant with one of several covenants in its bank facility as at the end of the September quarter. The bank has expressed ongoing support
Slide 17: Historical Sales Graph
Historical Sales Graph AU$m 35 30 25 20 Fact: 15 Revenues for the last five years have grown 10 an average: 5 + 33% p.a. 0 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 Export Sales Domestic Sales Other Income Slide 17
Slide 18: International expansion continues
Revenue By Region 45.0 40.0 International expansion 35.0 continues 30.0 25.0 20.0 15.0 10.0 5.0 - 2001 2002 2003 2004 2005 Asia Europe Australia USA Slide 18
Slide 19: Plenty of room to grow
Plenty of room to grow: Slide 19
Slide 20: Strategy Working: Building a global medical diagnostic company
Strategy Working Building a global medical diagnostic company With Compumedics’ core strategic edge being Sleep Diagnostics and Leveraging this technology into related fields including Neurosciences and Cardiology. Slide 20
Slide 21: Moving Forward: Business
Moving Forward : Business Revenues expected to continue growing beyond $38million for year ended June 30, 2006. Margins have improved since June 2005. Earnings to be restored during the financial year. Research and development expenditure expected to be between 16% and 18% of revenue, for ye
Slide 22: Moving Forward: Technologies
Moving Forward : Technologies Curry 5.0 Siesta802 ComperioDQ Stim II Strong product pipelines in all CMP divisions. Medical Innovation breakthroughs now in patent and clinical proof of concept phase. Slide 22
Slide 23: Recap
Recap 1. Business has instigated a major restructure in the last 9 months which is now beginning to contribute to the underlying performance. 2. Q1 results were strong in Asia, Australia and Europe and emerging in the USA, this held Q1 numbers back. 3. Clear focus on costs and profitability, while s
Slide 24: Ordinary business
Ordinary business Mr. Ko Koike has resigned as a Director for health reasons. Mr. Alan Anderson who retires by rotation offers himself for re-election to the position of Non-Executive Director. Non binding vote on remuneration report. Slide 24
Slide 25: Thank You
CG ‘Defining Life's Signals’ COMPUMEDICS Thank You