Nanosonics Limited · ASX:NAN
Nanosonics — Shareholder Meeting (November 2015)
50 slides from Nanosonics's shareholder meeting presentation, Nov 6, 2015
Slide 1: Nanosonics Limited 2015 Annual General Meeting
For personal use only Nanosonics Limited 2015 Annual General Meeting Friday 6 November 2015
Slide 2: Nanosonics Board, Secretaries and Auditor
Nanosonics Board, Secretaries and Auditor For personal use only Maurie Stang David Fisher McGregor Grant Chairman Non-Executive Director CFO / Company Secretary Michael Kavanagh Ron Weinberger Rob Waring CEO and Executive Director President Technology Company Secretary Development / Commercialisatio
Slide 3: Business of the meeting
For personal use only Nanosonics Limited 2015 Annual General Meeting Business of the meeting
Slide 4: Resolution: Election of a Director – Richard England
Resolution 1 For personal use only Election of a Director – Richard England Resolution: That Richard England, who retires as a Director pursuant to the Company’s Constitution and, being eligible, offers himself for re-election, be elected a Director. Proxy votes received Votes for : 149,465,324 Agai
Slide 5: Resolution: Remuneration report
Resolution 2 For personal use only Remuneration report Resolution: That the Remuneration Report for the financial year ended 30 June 2015 be adopted. Proxy votes received Votes for : 122,175,631 Against : 3,948,462 Abstained/Excluded : 27,150,341 Discretion : 573,435 5
Slide 6: Resolution: Issue of Performance Rights to the CEO and President under 2015 LTIS
Resolution 3 For personal use only Issue of Performance Rights to the CEO and President under 2015 LTIS Resolution: That approval be given for all purposes under the Corporations Act 2001 (Cth) and the Listing Rules of ASX Limited: a) for the issue of 206,882 Performance Rights to Mr Michael Kavanag
Slide 7: Resolution: Issue of Performance Rights to the President Technology Development
Resolution 4 For personal use only Issue of Performance Rights to the President Technology Development / Commercialisation under 2015 LTIS Resolution: That approval be given for all purposes under the Corporations Act 2001 (Cth) and the Listing Rules of ASX Limited: a) for the issue of 70,992 Perfor
Slide 8: Chairman's Address
For personal use only Nanosonics Limited 2015 Annual General Meeting Chairman’s Address Mr Maurie Stang
Slide 9: Disclaimer
For personal use only 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, fina
Slide 10: 2015 – A year of significant achievement and transformation
2015 – A year of significant achievement and transformation For personal use only Move to expanded new state of the art corporate, R&D and manufacturing Installed base in US facilities completed North America grew to 5,000 in FY15, now > 5,700 Nanosonics’ North American direct sales organisation now
Slide 11: 2015 – A year of significant achievement and transformation
2015 – A year of significant achievement and transformation For personal use only Comprehensive clinical studies program implemented Successful Placement supporting and Share Purchase Plan standard of care raised $28 million to support growth strategy R&D strategy focussing on Infection prevention.
Slide 12: Strong global momentum for guidelines and regulation for prevention of HAIs
Strong global momentum for guidelines and regulation For personal use only for prevention of Hospital Acquired Infections (HAIs) May 2014 NEJM paper recommended increasing surveillance and prevention activities to fight HAIs “Our nation is making progress in preventing healthcare- associated infecti
Slide 13: Governments and accrediting bodies responding to the challenge of HAIs
Governments and accrediting bodies responding For personal use only to the challenge of HAIs The Hospital-Acquired Condition (HAC) Reduction Program in the US is the result of reforms under the Affordable Care Act1 Non compliance with infection control standards associated with medical equipment & d
Slide 14: Risk of cross contamination with reusable devices recently reinforced
Risk of cross contamination with reusable devices For personal use only recently reinforced CDC/FDA Alert September 2015 Reusable medical devices must be properly maintained, cleaned and disinfected/sterilized. Healthcare facilities urged to immediately review current reprocessing practices to prote
Slide 15: FY15 revenue and cash balance
For personal use only FY15 revenue and cash balance Pleasing sales revenue achieved as North Strong cash reserves American direct sales operations established to support growth plans $45.7 SALES REVENUE CASH $ million $ million $21.5 $22.2 $7.9 $14.9 $24.1 2015 H2 $21.2 2015 H1 $12.3 $14.3 $2.2 $0.3
Slide 16: Nanosonics included in ASX in March 2015
Nanosonics included in ASX 300 in March 2015 For personal use only $2.00 $1.90 $1.80 NAN ($) $1.70 $1.60 $1.50 $1.40 $1.30 $1.20 $1.10 $1.00 $0.90 $0.80 $0.70 30-Jun-14 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 30 Jun 15 30 Jun 14 30 Jun 13 Total shares issued (million) 282.91 263.82 261.99 Share pric
Slide 17: Media coverage highlights
Media coverage highlights For personal use only Comprehensive positive media coverage during the year 17
Slide 18: New state of the art global headquarters supports strategic growth objectives
New state of the art global headquarters supports For personal use only strategic growth objectives 18
Slide 19: Strong product development and R&D pipeline
Strong product development and R&D pipeline For personal use only Nanosonics well positioned to capitalise on the high growth global market for infection prevention. • Approximately $5 million invested in product development and R&D activities across mechanical, electrical and software engineering,
Slide 20: For personal use only
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Slide 21: CEO's Address
For personal use only Nanosonics Limited 2015 Annual General Meeting CEO’s Address Mr Michael Kavanagh
Slide 22: Executive Team
Executive Team Ron Weinberger Gerard Putt For personal use only McGregor Grant President Head of Michael Potas CFO and Company Technology Manufacturing & Head of RD&D Secretary Development/ Operations Commercialisation Vincent Wang Ruth Cremin Kirste Courtney Andrew Murray Head of Global Head of Qua
Slide 23: Nanosonics' mission
Nanosonics’ 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. 23 Johns Hopkins
Slide 24: Corporate objectives
Corporate objectives For personal use only Customer Experience Establish our offerings as new standards of care globally and provide customers a convenient, seamless and consistent experience with both product and brand. Product Innovation Operational Excellence People Engagement Create and bring to
Slide 25: Customer Experience – FY15 highlights
Customer Experience – FY15 highlights For personal use only Commenced Direct Operations in North America Expanded European Presence into 5 new countries Grown installed base to > 5000 in US (at June 30) including adoption in many luminary sites Implemented extensive clinical outcomes program Support
Slide 26: Product Innovation – FY15 highlights
Product Innovation – FY15 highlights For personal use only Active R&D Subcommittee of Board Engaged with key infection prevention societies and opinion leaders Defined Product Roadmap Progressed our research across trophon, new chemistries and new IP solutions Product Innovation CONFIDENTIAL Creat
Slide 27: Operational Excellence – FY15 highlights
Operational Excellence – FY15 highlights For personal use only Moved HQ, R&D center and manufacturing operations to state of the art facility Set up new premises in UK and Germany Updated our IT Infrastructure Expanded ERP system to support global operations Set up infrastructure to support US opera
Slide 28: People Engagement – FY15 highlights
People Engagement – FY15 highlights For personal use only Engaged and aligned the organisation through mission and clarity around Corp. Objectives Attracting top quality people to company across all disciplines Formalised Human Capital Planning across the business People Engagement Build an organisa
Slide 29: Value Creation – FY15 highlights
Value Creation – FY15 highlights For personal use only $2.00 $1.90 $1.80 NAN… $1.70 $1.60 $1.50 $1.40 $1.30 $1.20 $1.10 $1.00 $0.90 $0.80 $0.70 30-Jun-14 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 Market Cap growth of 131% to $481 Million Successful Capital Raising Nanosonics enters ASX 300 Value Imple
Slide 30: FY2015 revenue and cash balance
For personal use only FY2015 revenue and cash balance Pleasing sales revenue achieved as North Strong cash reserves to American direct sales operations established support growth plans SALES REVENUE CASH $45.7 $ million $ million $21.5 $22.2 $7.9 $14.9 $24.1 2015 H2 $12.3 $21.2 2015 H1 $14.3 $2.2 $0
Slide 31: Regional Review
For personal use only Regional Review
Slide 32: North American direct sales operation successfully implemented
North American direct sales operation successfully For personal use only implemented • Direct sales operation covering all US territories established • 18 highly qualified sales professionals trained and focussed on building sales pipeline • Warehousing, order fulfilment and direct service fully ope
Slide 33: North American adoption continues to grow strongly
North American adoption Sales For personal use only H2 H1 $17.7 $17.7 $ million continues to grow strongly Sales $13.2 $10.2$ million $9.7 $5.6 $10.1 Installed base of 5,000 units at end of FY15 now $6.5 $12.1 $8.0 grown to 5,700 as at end Q1 FY16 $3.7 $3.0 Market opportunity of 40,000 units FY1
Slide 34: Direct sales focussed across all ultrasound brands
Direct sales focussed across all ultrasound brands For personal use only trophon now compatible with more than 900 ultrasound transducer models • Expanded number of ultrasound probes approved with trophon from 600 to 900 • Covers all world’s leading manufacturers • Includes both intracavitary and su
Slide 35: Europe/ROW sales growing strongly
For personal use only Europe/ROW sales growing strongly Sales • FY15 sales of $2.3 million $2.3 $ million up 45% on pcp • UK primary driver of sales in the $1.6 period with FY15 installed base ~250 units across 40 sites • New Welsh guidelines supporting trophon and guidelines in England $0.4 and Sco
Slide 36: Wales: Potential impact of guidelines
Wales For personal use only Potential impact of guidelines New NHS Wales Guidelines position automated, validated decontamination systems as the optimal solution for ultrasound probe decontamination All Health Boards in Wales have now commenced with trophon following the introduction of guidance in
Slide 37: Scottish and English guidelines pending
For personal use only Scottish and English guidelines pending HFS Survey shows everybody is using manual English guidelines currently under review and expect reprocessing methods and most with no traceability publication in “Journal of Hospital Infection” TBD Already installations across 7 hospital
Slide 38: Active program of education and support across UK
Active program of education For personal use only and support across UK • National Infection Prevention Society conference • Regional Infection Prevention Society Meetings • Institute of Decontamination Sciences • British Medical Ultrasound Society • Central Sterilising Club • British Society of Gyn
Slide 39: European expansion with Miele
European expansion with Miele For personal use only Italy Netherlands Belgium Austria 39
Slide 40: Education day for all ultrasound manufacturers in Germany
For personal use only Education day for all ultrasound manufacturers in Germany 40
Slide 41: Broad market awareness and education activities
Broad market awareness For personal use only and education activities M&K April 2015 HygMed 2015 41
Slide 42: ANZ setting the benchmark for standard of care
For personal use only ANZ setting the benchmark for standard of care • Sales of $2.3 million • Installed base grew 13% and now approaching 1,000 units Sales • trophon becoming standard of care $2.3 $2.3 $ million in ANZ $1.7 $1.5 • Market penetration ~ 60% FY12 FY13 FY14 FY15 42
Slide 43: Standard of Care – Clinical studies
For personal use only Standard of Care – Clinical studies
Slide 44: HPV risk
HPV risk For personal use only • Human Papilloma Virus (HPV) is associated with 99.7% of cervical cancers as well as a number of other cancers including anal, vaginal, vulvar and penile1 • HPV Types 16 and 18 account for 5% of all cancers worldwide2 1. Walboomers JMM,Jacobs MV,Manos MM, et al. Human
Slide 45: HPV – A real risk of cross contamination through ultrasound examination
HPV – A real risk of cross contamination through For personal use only ultrasound examination • “a considerable number of ultrasound probes contaminated with human and HR-HPV DNA, despite LLD disinfection and probe cover” 1 • A substantial persistence of microorganisms observed on disinfected probes
Slide 46: Disinfectants commonly used on ultrasound probes do not kill HPV
Disinfectants commonly used on ultrasound probes For personal use only do not kill HPV Glutaraldehyde and OPA shown to be totally ineffective against natural, infectious HPV, even with longer contact times Meyers, J., et al., Susceptibility of high-risk human papillomavirus type 16 to clinical disin
Slide 47: Currently only one system proven to kill HPV - trophon
For personal use only Currently only one system proven to kill HPV - trophon • Second Meyers study retested OPA and also investigated ability of trophon, an automated high level disinfection system for ultrasound probes, to kill HPV • Results confirmed OPA to be ineffective but showed that trophon E
Slide 48: Strong product development and R&D pipeline
Strong product development and R&D pipeline For personal use only Nanosonics well positioned to capitalise on the high growth global market for infection prevention. • Approximately $5 million invested in product development and R&D activities across mechanical, electrical and software engineering,
Slide 49: Business outlook
Business outlook For personal use only • FY16 first quarter results encouraging during North American direct operations transition period. – Focus on building direct sales pipeline • Market fundamentals continue to strengthen – Increased attention by regulatory authorities – Supporting guidelines fo
Slide 50: For personal use only
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