Nanosonics Limited · ASX:NAN
Nanosonics — Investor Presentation (November 2007)
25 slides from Nanosonics's investor presentation, November 2007
Slide 1: Achieving Milestones
Achieving Milestones 1 November 2007
Slide 2: Nanosonics’ Opportunity
Nanosonics’ Opportunity • Nanosonics has patented a breakthrough disinfection platform technology • The Company’s first products disinfect medical instruments utilising our novel technology: - faster, more effectively and more safely • Market reaction to our technology and products is strongly posit
Slide 3: Disinfection Market drivers
Disinfection Market drivers Major trends in modern medicine: 1. Hospital acquired Infection - 150,000 Australians a year infected in hospital, 7,000 deaths - England, 300,000 people, £1B cost annually 2. Growing use of minimally invasive instruments - high tech equipment, with optics, lenses, fragil
Slide 4: Current disinfection methods
Current disinfection methods • Disinfection methods depend on: - invasiveness of medical procedures, instrument construction 4
Slide 5: First product for Ultrasound Probes
First product for Ultrasound Probes 5
Slide 6: Competitive advantages
Competitive advantages Environmentally friendly Improved OH&S VV Y Non-carcinogenic YVVYVVV VV VY Disinfects at near ambient temperatures Compatible with a range of medical instruments Meets infection control standards Quality assurance Patented nanosonics
Slide 7: The NanoNebulant Process
The NanoNebulant Process Nanosonics disinfection process: • Nanosonics consumable is nebulised to create an ultra- fine aerosol • This aerosol is then transformed into nano-sized particles: NanoNebulant™ • The NanoNebulant™ is injected into the disinfecting chamber • Disinfection of the medical inst
Slide 8: Commercialisation strategy
Commercialisation strategy 1. Focus - 1-3 products initially, staged launches, pipeline of products - Europe, then Aust/NZ, then US/Canada, then Japan - Devices with a medical application initially 2. Manufacturing - low volume internally to establish quality & cost standards - then high volume outs
Slide 9: Collaborative Developments
Collaborative Developments Nanosonics OEMs / Global NanoNebulant™ Medical Co’s Channels to Market/Demand • World-Class disinfection tech • Value added products REQUIREMENTS OFFERING • Rapid, instrument friendly Strong • Instrument friendly process process Synergies • Additional revenue opportunities
Slide 10: First product
First product Ultrasound Probe Disinfector • 400M+ ultrasound scans worldwide in 2006 • CAGR of 5% • Initial launch in Europe, market size of 125,000 units • Global market size, 450,000 units • Positive reactions from customers, instrument manufacturers, medical associations and professionals • Devi
Slide 11: OEMs & Materials Testing
OEMs & Materials Testing Medical Equip They make OEMs Ultrasound Probes • Siemens • Philips • GE • Hitachi • Toshiba • Etc Nanosonics Device Disinfects these Complex Probes 11
Slide 12: Market size and growth rates
Market size and growth rates Nanosonics Launch Products • Total market opportunity for HLD instruments is est. to be over US $2.0b * Estimates of market sizes include device and consumable sales allowing for the estimated useful life of the Disinfection devices 12
Slide 13: Margin Model
Margin Model Margin Distrib Gross 30 – 45% Margin Distrib Recommended Retail Price Recommended Retail Price Gross 35 – 42% Drives cash Nano Revenue Drives cash Margin Gross Nano Revenue Nano flow and Margin flow and Gross 50 – 55% Nano 55 – 70% P&L P&L COGS Nano Our cost Our cost COGS Core ultrasoun
Slide 14: “Go to Market” Business Model
“Go to Market” Business Model Nano Sales Distrib Sales Core Model Nano Distributor Customer Nano Paid Distrib Paid • Nanosonics device margin, 50 – 55% • Nanosonics consumables margin, 55 – 70% • Nanosonics financing cost – Working Capital (Inv, A/R) • Customer has CapEx outlay plus ongoing consumab
Slide 15: Regulatory Progress
Regulatory Progress Ultrasound Probe Sept 07 – Feb 08 Feb 08 – Jul 08 Sept 08 –> April 08 – Oct 08 Disinfector - CE Mark Program TGA & Canadian FDA Program Other Regions Regulatory Strategy Program Ultrasound Probe Sept – Dec 07 Dec 07 – Feb 08 Mar 08 – May 08 Disinfector - Technical File TUV Evalua
Slide 16: Manufacturing facility
Manufacturing facility • Sydney facility for early production, delivers quality assurance • With quality and initial sales established, manufacturing then outsourced 16
Slide 17: Manufacturing Program
Manufacturing Program - Completed on time/budget Commission - Upgraded ISO compliance EU & Canada Sydney Facilities - Suppliers engaged & audited Sales Zone Manufacture CE - CE devices in progress Mark Devices for - Bottle manuf begun Testing - Designs being honed - Tooling contract let Commission T
Slide 18: “Go to Market” Strategy
“Go to Market” Strategy • Validation of demand and market metrics continues to grow 18
Slide 19: Roll-out programme Q3/Q4 FY08
Roll-out programme Q3/Q4 FY08 19
Slide 20: Product pipeline
Product pipeline Flexible endoscope disinfector • Endoscopes used for diagnostic and interventional invasive procedures • Nanosonics product - washes and disinfects - stores, transports • Current status - working prototype completed - developing industry partnerships for collaboration TEE Probe Disi
Slide 21: Commercialisation milestones
Commercialisation milestones 21
Slide 22: People
People Maurie Stang Geoff Marshall David Fisher (non exec, science, (Chairman, healthcare) (CEO, healthcare) engineering & finance) Senior Management Nadja Hasenauer, Dr Ron Weinberger, Ole Jochen Stockhausen, Rachael Moore, GM Human Resources GM Innovation & GM Global Marketing & Product Management
Slide 23: Business metrics
Business metrics @ 30th September 2007 194,535,923 @ 30th September 2007 $28,662,897 $31,000,000 Nil @ 6th November 2007 $0.67 @ 6th November 2007 $130 million @ 6th November 2007 46 6 23
Slide 24: Achievements to date
Achievements to date • Quality management systems - achieved international certification upgrade for medical device design and manufacture - EN ISO 13485:2003 • Funding - pre-IPO funding $12.25M, government R&D grants $5.0M - ASX listing, raised $27M - 3M Corporation $2M (substantial shareholder) •
Slide 25: Conclusion
Conclusion Novel Australian technology with global competitive advantage High margin business model with annuity income streams Short regulatory lead time, process under way Near term revenue generation – sales expected in FY08 History of collaboration with major medical instrument manufacturers Pat