Nanosonics Limited · ASX:NAN
Nanosonics — Investor Presentation (April 2012)
23 slides from Nanosonics's investor presentation, Apr 10, 2012
Slide 1: Changing the way ultrasound probes are disinfected
For personal use only Changing the way ultrasound probes are disinfected Investor Briefing: April 2012 Dr Ron Weinberger, Managing Director McGregor Grant, Chief Financial Officer
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: The Challenge: Healthcare Acquired Infections are Increasing, Changing & Costly
The Challenge: Healthcare Acquired Infections are Increasing, Changing & Costly For personal use only Healthcare Acquired Current situation: Infections • Bacterial spores e.g. C.Difficile; traditionally not considered threat are resistant to standard disinfection methods • C.Difficile infections con
Slide 4: The Challenge: Rapid increase in the use of intracavity probes
The Challenge: Rapid increase in the use of intracavity probes For personal use only Ultrasound probes Diagnostic imaging technique • Used to visualize tendons, muscles, joints, & internal organs • 20+% of procedures intracavity, e.g. obstetric, gynaecological, IVF Current disinfection Disinfection
Slide 5: Current market: >500,000 ultrasound machines installed globally
Current market: > 500,000 ultrasound machines installed globally For personal use only Ultrasound machine market Distribution of ultrasound forecast to grow significantly machines globally 5.18 30% 34% North America $US Billion Europe 2.88 36% Asia, Pacific 2009 2015 Data source: GlobalData 2009 glo
Slide 6: Compatible with all major ultrasound probes
Compatible with all major Ultrasound probes > 600 million procedures per annum* For personal use only Market share of leading ultrasound Nanosonics’ markets manufacturers Obstetrics & GE Healthcare Siemens Gynaecology 25% 17% HLD is ~20% Toshiba Current Other HLD 14% Other focus Mandated Procedures
Slide 7: Trophon EPR first fully automated system for disinfection of ultrasound probes
Trophon EPR first fully automated system for disinfection of ultrasound probes For personal use only Extensive testing with all leading ultrasound intracavity probes; manufacturer endorsed 7 minutes to Closed system disinfect each eliminates OH&S probe, reduces issues with handling number of probes
Slide 8: Multiple revenue streams: balance product sales with annual revenues
Multiple revenue streams: balance product sales with annual revenues For personal use only Trophon EPR: • Margins in line with similar 240 and 110 volt models medical devices • Manufactured locally by Nanosonics • Multi-lingual option 41% of revenues Consumables: NanoNebulant and • High margin produ
Slide 9: Strategic approach to market development
Strategic approach to market development For personal use only Current Markets Phase 2 Phase 3 Regulatory approvals obtained; Regulatory approvals still Regulatory approvals still large ultrasound markets; needed; Languages to be added needed; Languages to be added distributors appointed distributor
Slide 10: GE driving exclusive distribution in North America
GE driving exclusive distribution in North America For personal use only 10
Slide 11: No competitors in point of care automated HLD
No competitors in point of care automated HLD Very high barriers to entry For personal use only Sector competition • Non-existent • Current chemicals difficult to defend; regulators require change • No other high-level, low temperature, point of care disinfection system on market Supplier power • Na
Slide 12: Owning the disinfection process
For personal use only Owning the disinfection process 12
Slide 13: Objective: Own the ultrasound probe reprocessing market
Objective: Own the ultrasound probe reprocessing market For personal use only Patient Store Clean Record Wipe Disinfect 13
Slide 14: Focus moves to broadening revenue base
Focus moves to broadening revenue base For personal use only Software and Printer • Patient audit trail and traceability of probes and usage • Software for patient specific records; Price approx $500 • Trophon EPR specific printer to print immediate patient record; Price approx $800 Pre-disinfection
Slide 15: Platform creates new opportunities
Platform creates new opportunities For personal use only 2nd generation Trophon • Build Trophon into ultrasound machines Other types of • Transesophageal Echocardiography probes ultrasound probes • Ear nose and throat probes • Surface probes: current major use of ultrasound probes NanoNebulant other
Slide 16: Nanosonics investment case: building strong global company
Nanosonics investment case: building strong global company For personal use only Global market • Healthcare Acquired Infections major health issue • New disinfection standards for intra-cavity ultrasound probes • Patient audit and traceability increasingly important • Regulation, compliance standard
Slide 17: FY12 Half Year Results
For personal use only FY12 Half Year Results Continuing steady sales growth 17
Slide 18: Solid base for future growth
Solid base for future growth For personal use only Sales • Revenues increased $3.71m to $5.08m • Quarter on quarter growth • Australia /New Zealand installed base >500 units Broadening revenue • Service contracts tested in New Zealand streams • Roll-out to other countries • Consumables, accessories
Slide 19: Results built on getting the basics right
Results built on getting the basics right For personal use only Distributors • Quality key to market penetration and sales growth • USA: GE Healthcare deep client base via ultrasound probe sales • Europe: initial focus on top 6 value market Manufacturing • Focus on capacity as well as manufacturing
Slide 20: Service contracts add to creation of strong annualised revenues
Service contracts add to creation of strong annualised revenues For personal use only Service contracts Background: • Trophon EPR requires annual service • Major service after 5,000 probes disinfected • Rate of major service dependant on practice mix Solution: • Introduction of service contracts • 8
Slide 21: Production – key to meeting growth objectives
Production – key to meeting growth objectives For personal use only Production • Increased by approximately 50% • Focus on manufacturing processes • Economies of scale starting to add to margins • Better supplier contracts • Identify third party high volume medical device manufacturers to outsource
Slide 22: Investing in sales support
Investing in sales support For personal use only Europe • New look at distribution methodology • Hamburg office – operational • Increase dedicated resources to facilitate growth USA • Indianapolis office - alongside GE Healthcare service operations and Applied Laboratories Inc maker of NanoNebulant
Slide 23: Company background
Company background For personal use only Established: Incorporated 2001 Listed Australian Stock Exchange 2007 Offices Head office: Sydney USA: Indianapolis Germany: Hamburg No of employees 80 Manufacturing capacity 6,000 units per annum Product registrations Australia: TGA Feb 2009 USA FDA Feb 2011