Compumedics Limited · ASX:CMP
Compumedics — Shareholder Meeting (2007)
34 slides from Compumedics's shareholder meeting presentation, 2007
Slide 1: Compumedics Annual General Meeting 2007
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Slide 2: Agenda
Agenda Meeting opens Chairman's address Ordinary business Meeting closes Slide 2
Slide 3: Chairman's address
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Slide 4: Overview
Over view Financial update – highlights Financial update - details Business unit revenues Geographic revenues Key activities completed Early FY2008 performance Outlook – financial Outlook – technology Recap Slide 4
Slide 5: Financial update - highlights
Financial update - highlights Major Turnaround in financial performance continues FY2007 profitable and operating cash positive Sales stabilised despite adverse impact of USD/AUD On-going substantial reduction in operating costs Bank debt significantly reduced R&D pipeline maintained New breakout SP
Slide 6: Financial update - details
Financial update - details Gross margins up 7% over the previous year to 59% Operating expenses decline $2.8m for FY2007 compared to FY2006. Down $5m compared to FY2005 EBITDA up to $1.3m profit compared to prior year loss of $0.5m Profit after tax at $0.1m is $1.7m better than the prior loss of $1.
Slide 7: Financial update - details
Financial update - details Borrowings were substantially reduced from $6.4m in the . prior year to $3.4m at end of FY2007 Borrowing costs at $0.9m were 80% higher than the prior year’s $0.6m Sales in USA (+11%), Europe (+16%), Australia (+5%) and DWL (+6%) were up but not enough to counteract the fa
Slide 8: Financial update - details
Financial update - details 2004 2005 2006 2007 actual actual actual actual Revenues ($m) 34.0 38.2 37.7 36.7 Margins % 57% 53% 52% 58% Other income 0.4 0.3 1.3 0.1 Operating Expenses 16.8 24.3 22.1 19.5 EBITDA 2.9 (2.6) (0.5) 1.3 NPAT 2.4 (4.7) (1.6) 0.1 Slide 8
Slide 9: Revenues stable at constant exchange rates
Financial update - details Total group sales stabilised despite rising Australian dollar and significant cost reductions Revenues stable at constant 40 exchange rates DWL acquisition 35 30 25 Neuroscan acquisition AUDm 20 15 10 5 0 2002 2003 2004 2005 2006 2007 Slide 9
Slide 10: Gross margins improving
Financial update - details Gross Margins % improving as a result of on-going restructuring and cost improvements programs and despite the surging Australian dollar 60 50 40 % 30 20 10 0 2002 2003 2004 2005 2006 2007 Slide 10
Slide 11: Operating expenses continue to decline
Financial update - details Operating Expenses continue to decline - $5m (>20%) over the last two years 25 DWL acquisition 20 Neuroscan 15 acquisition AUDm 10 5 0 2002 2003 2004 2005 2006 2007 Slide 11
Slide 12: EBITDA returned to profitability
Financial update - details EBITDA returned to profitability at current revenue levels EBITDA $4m 3 improvement over 2 years 2 1 AUDm 0 -1 -2 -3 2002 2003 2004 2005 2006 2007 Slide 12
Slide 13: Bank debt paid down
Financial update - details Bank debt paid down through some fairly tough times 9 Neuroscan 8 acquisition Lowest bank 7 DWL acquisition debt in 5 years 6 down 68% from 5 2002 AUDm 4 3 2 1 0 2002 2003 2004 2005 2006 2007 Slide 13
Slide 14: Bank costs escalate despite debt repayment
Financial update - details Bank costs escalate despite debt repayment 0.7 0.6 0.5 0.4 AUDm 0.3 0.2 0.1 0 2002 2003 2004 2005 2006 2007 Slide 14
Slide 15: Foreign exchange impacts adversely
Financial update - details Foreign exchange impacts adversely in current financial year Exchange movements relate 0.6 largely to consolidation of off shore group subsidiaries 0.4 0.2 0 AUDm -0.2 -0.4 -0.6 -0.8 -1 2002 2003 2004 2005 2006 2007 Slide 15
Slide 16: Business unit revenues
Business unit revenues Business unit revenues stable across all business units with annuity-style supplies revenues increasing 20 18 16 14 12 AUDm 10 8 6 4 2 0 2002 2003 2004 2005 2006 2007 Sleep Brain research EEG/DWL Supplies/Service Slide 16
Slide 17: Geographic revenues
Geographic revenues 2007 FY MI 2005FY Asia 1% Australia Australia 13% 14% Asia 11% 17% DWL 16% DWL Medical 15% Innovation (MI) USA 2% 45% Europe 9% USA Europe Australia 43% 14% Asia 12% 20% 2006 FY DWL 14% Europe 11% USA 43% Slide 17
Slide 18: Key achievements completed in FY2007
Key achievements completed in FY2007 New distributors signed up for Europe with incremental sales commitments of $10m over the next three years Sub leasing of 1/3 of property in Abbotsford (saving $200k pa approximately from May 2007) Relocation of US office from El Paso, Texas to Charlotte, North C
Slide 19: Early FY2008 performance update
Early FY2008 performance update Group as a whole is tracking to plan Australian business is performing well consistent with strong domestic economy Cost containment continues – business in US has moved to Charlotte further USD100k pa saving. USD continues to fall against the AUD which does have a ne
Slide 20: Early FY2008 performance update
Early FY2008 performance update USA business – Neuroscan is approximately 45% higher for the first four months of trading compared to the same time last year in USD USA business – Supplies business is about 20% higher than same time last year in USD Asian business – Japanese business is 108% higher
Slide 21: Outlook - financial
Outlook - financial International market expansion of the core sleep business. Expansion of core sleep-diagnostic and monitoring technology into the associated fields of neurology and cardiology. Expanding recurring revenue base (sensors, electrodes and other consumables). Growth opportunities for c
Slide 22: Outlook – financial
Outlook – financial Maximise penetration of existing products into existing markets Create new opportunities for existing products into new markets Roll out of new generation hardware and software for existing products. Continuing vigilance on cost controls and further cost reduction possibilities N
Slide 23: Strategy
Strategy DWL Blood Flow Neuroscan Diagnostics Sleep Diagnostics Neuro Neuro Diagnostics Medical Supplies Building a global medical technology company With Compumedics’ core strategic edge being Sleep Diagnostics Leveraging this technology into related fields including Neurosciences, Cardiology, Brai
Slide 24: Strategy
Strategy No other company has the world’s leading technology and/or market position covering 3 of the key rapid growth new-generation medical technologies first discovered in the 1980s •Clinical Sleep •Transcranial Doppler (TCD) •Computerised Cognitive Neuroscience/EEG brain function Slide 24
Slide 25: Outlook - Strategy
Outlook - Strategy New Break out treatment devices Secure OEM SPAP deal for Europe Secure OEM SPAP deal for USA Core business Establish new growth programs for the US and European markets Rollout new LTM products and other neurophysiology products to expand neuroscience growth outlook Communicate to
Slide 26: Technology
Technology New Products Nexus Profusion PSG 3 Somte PSG Neuvo Slide 26
Slide 27: Markets: Sleep Market
Markets Sleep Market Pioneering of computerised PSG (CMP;1987) and CPAP treatment discovery [Sullivan, CE (1981), Sydney Australia] 40% of the Australian Clinical EEG Market and 70% of the Australian Sleep Diagnostics Market. 10% USA market share and growing in Sleep Heart Health Study sleep diagnos
Slide 28: Markets: Transcranial Doppler
Markets Transcranial Doppler (TCD) Market Developed by Dr. Rune Aaslid in 1982, today DWL’s client DWL has a strong market share in Germany and well established distribution networks in Europe World’s firsts include : ● Bilateral Doppler , ● Emboli differentiation ● Full digital Doppler Slide 28
Slide 29: Markets: Computerised Cognitive Neuroscience/EEG
Markets Computerised Cognitive Neuroscience/EEG brain function Pioneered by Neuroscan in 1989 Commands 90% of the US Market for Research EEG applications and a significant market share world wide. Sells its products in over 50 countries world wide to over 1500 universities, corporate laboratories an
Slide 30: Business Recap
Business Recap Core Business Group returned to profits at existing sales levels after two years of significant restructuring and generated positive operating cash Expenses down 20% over the last two years or $5m Bank debt down 68% over the last 5 years and at its lowest level in 5 years Sales are st
Slide 31: Business Recap
Business Recap Medical Innovations Business Letter of intent signed with Medigas OEM deal for SPAP Europe progressing OEM Deal for SPAP USA to be negotiated Other platforms progressing Slide 31
Slide 32: Ordinary business
Ordinary business Item 1 Financial Statements and Reports (non binding resolution) Item 2 Adoption of Remuneration Report (non binding resolution) Slide 32
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