Nanosonics Limited · ASX:NAN
Nanosonics — Shareholder Meeting (November 2015)
45 slides from Nanosonics's shareholder meeting presentation, Nov 6, 2015
Slide 1: Nanosonics Limited 2015 Annual General Meeting
Nanosonics Limited 2015 Annual General Meeting Friday 6 November 2015
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
Nanosonics Limited 2015 Annual General Meeting Chairman’s Address Mr Maurie Stang
Slide 4: Nanosonics Board, Secretaries and Auditor
Nanosonics Board, Secretaries and Auditor 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 / Commercialisation Richard England Mark
Slide 5: 2015 – A year of significant achievement and transformation
2015 – A year of significant achievement and transformation 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 successfully implemen
Slide 6: 2015 – A year of significant achievement and transformation
2015 – A year of significant achievement and transformation 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. For life with powerful
Slide 7: Strong global momentum for guidelines and regulation for prevention of HAIs
Strong global momentum for guidelines and regulation 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 infections through three main
Slide 8: Governments and accrediting bodies responding to the challenge of HAIs
Governments and accrediting bodies responding 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 & devices is one of the t
Slide 9: Risk of cross contamination with reusable devices recently reinforced
Risk of cross contamination with reusable devices 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 protect patients. • CRE “su
Slide 10: FY15 revenue and cash balance
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 $0.8 2009 2010 2011 2
Slide 11: Nanosonics included in ASX 300 in March 2015
Nanosonics included in ASX 300 in March 2015 $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 price $1.70 $0.79 $0.61 Ma
Slide 12: Media coverage highlights
Media coverage highlights Comprehensive positive media coverage during the year 17
Slide 13: New state of the art global headquarters supports strategic growth objectives
New state of the art global headquarters supports strategic growth objectives 18
Slide 14: Strong product development and R&D pipeline
Strong product development and R&D pipeline 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, microbiology and chemi
Slide 15: narosonics
narosonics (LM ies n. For Life.
Slide 16: CEO's Address
Nanosonics Limited 2015 Annual General Meeting CEO’s Address Mr Michael Kavanagh
Slide 17: Executive Team
Executive Team Ron Weinberger McGregor Grant Gerard Putt 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 Quality Human Resources H
Slide 18: Nanosonics' mission
Nanosonics’ 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. 23 Johns Hopkins Photo Credit: America
Slide 19: Corporate objectives
Corporate objectives 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 market a Develop an a
Slide 20: Customer Experience – FY15 highlights
Customer Experience – FY15 highlights 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 Supported development and ado
Slide 21: Product Innovation – FY15 highlights
Product Innovation – FY15 highlights 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 Create and bring to market
Slide 22: Operational Excellence – FY15 highlights
Operational Excellence – FY15 highlights 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 operations Operational Exce
Slide 23: People Engagement – FY15 highlights
People Engagement – FY15 highlights 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 organisation that attracts and
Slide 24: Value Creation – FY15 highlights
Value Creation – FY15 highlights $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 Implementation of Enterpris
Slide 25: FY2015 revenue and cash balance
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 $0.3 $0.8 2009 2010 2011
Slide 26: Regional Review
Regional Review
Slide 27: North American direct sales operation successfully implemented
North American direct sales operation successfully 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 operational • Establishin
Slide 28: North American adoption continues to grow strongly
North American adoption Sales $ million H2 H1 $17.7 $17.7 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 FY12 FY13 FY14 FY15 Tro
Slide 29: Direct sales focussed across all ultrasound brands
Direct sales focussed across all ultrasound brands 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 surface probes 34
Slide 30: Europe/ROW sales growing strongly
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 Scotland in development $
Slide 31: Potential impact of guidelines
Wales 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 2014 Installed base pr
Slide 32: Scottish and English guidelines pending
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 settings including lar
Slide 33: Active program of education and support across UK
Active program of education 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 Gynaecological Imaging •
Slide 34: European expansion with Miele
European expansion with Miele Italy Netherlands Belgium Austria 39
Slide 35: Education day for all ultrasound manufacturers in Germany
Education day for all ultrasound manufacturers in Germany 40
Slide 36: Broad market awareness and education activities
Broad market awareness and education activities M&K April 2015 HygMed 2015 41
Slide 37: ANZ setting the benchmark for standard of care
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 38: Standard of Care – Clinical studies
Standard of Care – Clinical studies
Slide 39: HPV risk
HPV risk • 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 papillomavirus is a n
Slide 40: HPV – A real risk of cross contamination through ultrasound examination
HPV – A real risk of cross contamination through 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: HPV DNA found on 13%
Slide 41: Disinfectants commonly used on ultrasound probes do not kill HPV
Disinfectants commonly used on ultrasound probes 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 disinfectants. J Antimicrob
Slide 42: Currently only one system proven to kill HPV - trophon
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 EPR totally kills natur
Slide 43: Strong product development and R&D pipeline
Strong product development and R&D pipeline 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, microbiology and chemi
Slide 44: Business outlook
Business outlook • 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 for automated HLD soluti
Slide 45: narosonics
narosonics (LM ies n. For Life.