Infection Prevention. For Life - 2021 HALF YEAR RESULTS - Nanosonics
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Infection
Prevention.
For Life.
2021 HALF YEAR
RESULTS
INVESTOR PRESENTATION
Michael Kavanagh – CEO and President
McGregor Grant – CFO and Company Secretary
DISCLAIMER
This presentation is intended to provide a general outline only and is not intended to be a definitive statement on the subject matter covered in it. The information in
this presentation, whether written or verbal, has been prepared without taking into account the commercial, financial or other needs of any individual or organisation.
Certain information may relate to protected intellectual property rights owned by Nanosonics Limited (Nanosonics) and its subsidiaries (together the Group).
While due care has been taken in compiling the information based on the information available to Nanosonics at the date of this presentation material, neither
Nanosonics nor its officers or advisors or any other person warrants the accuracy, reliability, completeness or timeliness of the information or guarantees the
commercial or investment performance of the Group.
The information does not constitute advice of any kind and should not be relied on as such. Investors must make their own independent assessment of the
Group and undertake such additional enquiries as they deem necessary or appropriate for their own investment purposes. Any and all use of the information is at your
own risk.
No representation, warranty or assurance (express or implied) is given or made in relation to any forward looking statement or estimate by any person (including
Nanosonics). In particular, no representation, warranty or assurance (express or implied) is given in relation to any underlying assumption or that any forward
looking statement will be achieved. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking
statements are based.
Subject to any continuing obligations under applicable law or any relevant listing rules of the Australian Securities Exchange, Nanosonics disclaims any obligation
or undertaking to disseminate any updates or revisions to any forward looking statements in these materials to reflect any change in expectations in relation to any
forward looking statements or any change in events, conditions or circumstances on which any such statement is based. Nothing in these materials shall under any
circumstances create an implication that there has been no change in the affairs of the Group since the date of these materials.
Nanosonics Limited | Half Year 2021 1
“It is very H1 FY21 Highlights
encouraging to • Global installed base up 12% in last 12 months and up 6% in last 6 months to 25,100 units.
Importantly, the number of new units installed in Q2 FY21 was up 38% compared with Q1 FY21.
see a significant • Half year revenue of $43.1 million, down 11% compared with prior corresponding period.
− The lower revenue was primarily driven by the foreshadowed reduction in purchases by GE Healthcare as a result
recovery in the of the impacts of COVID-19 on its inventory at 30 June 2020 as well as the impact of a stronger Australian dollar.
− Global revenue recovered strongly in Q2 FY21, up 48% compared with Q1 FY21. This growth resulted from
underlying growth stronger installed base growth across all regions, GE Healthcare resuming purchases of capital equipment in
Q2 FY21 as well as an increase in consumables and service revenue.
momentum of the − All revenue associated with I-MED’s upgrade of its 200+ trophon®EPR fleet, announced in November 2020,
is expected to be recognised in H2 FY21 as new trophon2 systems are installed across their network.
business across • Half year consumables and service revenue of $33.7 million, down 1% compared with prior
corresponding period.
trophon adoption, − Revenue from consumables and service in Q2 FY21 was up 29% compared with Q1 FY21. This growth
reflects the recovery in ultrasound procedure volumes experienced in the half leading to increased purchases
consumables by GE Healthcare, along with the growing installed base.
− Q2 FY21 consumables and service revenue in constant currency 1 terms represented the Company’s highest
usage and overall quarter on record.
• Half year capital revenue of $9.4 million, down 35% compared with prior corresponding period.
growth, despite − Capital revenue was impacted by the foreshadowed reduction in trophon unit sales to GE Healthcare as a
consequence of COVID-19. This impact was primarily experienced in Q1 FY21 with GE resuming purchases
the continuing of capital in Q2 F21.
• Continued investment in the Company’s growth strategy with first half operating expenses of $33.0
impacts of million, up 8% on prior corresponding period.
COVID-19.” • Operating profit before tax of $0.2 million, compared with $6.7 million in prior corresponding period.
This result reflects the impacts of COVID-19, particularly on Q1 revenue, and the ongoing investment in
the Company’s growth strategy.
Michael Kavanagh, • Free cash flow for the half year was a net outflow of $2.4 million compared with a net cash inflow of
CEO and President $10.0 million in the prior corresponding period due to the amount and timing of customer receipts and
the timing of supplier payments.
• Cash and cash equivalents of $87.9 million, providing ongoing strong foundation for continued
investment in growth. The Company has negligible debt.
1. Constant currency (CC) removes the impact of foreign exchange rate movements to facilitate comparability of operational performance. This is done
by converting the current period sales of entities that use currencies other than Australian dollars at the rates that were applicable in the prior period.
The average exchange rate used for the Company’s major foreign currency for the 6 months to Dec20/Dec19 was AUD/USD 0.72/0.68.
Nanosonics Limited | Half Year 2021 2
C O M PA N Y O V E R V I E W
ASX 200 listed healthcare company specialised in the development and KEY CORPORATE DATA 1
commercialisation of infection prevention solutions
Share price $6.05
• First product, trophon® – proprietary automated technology for low
temperature, high level disinfection (HLD) of ultrasound probes Shares on issue 301.0 million
Market capitalisation $1,821 million
• Approved for sale in most major markets including: US/Canada, ANZ,
UK, Europe, Singapore, HK, South Korea, Japan Liquidity (30 day avg.) 0.8 million shares
Cash (31 Dec 20) $87.9 million
• 323 staff across Australia, US, Canada, UK, Ireland, Germany,
France, Norway, Sweden and Japan Share Register Founders 14.2%
Our Mission • Sold direct and through distribution partners, including leading brands
such as: GE Healthcare, Philips, Samsung, Siemens and Canon
Breakdown
(31 Dec 20)
Institutions 58.7%
Private 27.1%
• Active R&D program targeting expansion of product portfolio for
We improve the safety of Infection Prevention market
patients, clinics, their staff SHAREHOLDER RETURN 1 FINANCIAL OVERVIEW
and the environment by Market Capitalisation ($ million) Share Price SALES REVENUE ($M)
100.0
transforming the way infection $3,000 9
84.3
67.5 51.6
prevention practices are 8 31.4
60.7
43.6
43.1
30.7
understood and conducted $2,500
36.1 40.7 48.5 43.1
30.0
and introducing innovative 7
2017 2018 2019 2020 H1 2021
technologies that deliver $2,000 6 PBT ($M)
16.8
improved standards of care. 5
13.9
12.4
$1,500
4 5.6
$1,000 3 0.2
2017 2018 2019 2020 H1 2021
2 CASH ($M)
$500 91.8 87.9
1 69.4 72.2
63.0
$0 0
Jun 08
Dec 08
Jun 09
Dec 09
Jun 10
Dec 10
Jun 11
Dec 11
Jun 12
Dec 12
Jun 13
Dec 13
Jun 14
Dec 14
Jun 15
Dec 15
Jun 16
Dec 16
Jun 17
Dec 17
Jun 18
Dec 18
Jun 19
Dec 19
Jun 20
Dec 20
Market Capitalisation ('000) Closing share price 2017 2018 2019 2020 H1 2021
1. As at 23 February 2021.
Nanosonics Limited | Half Year 2021 3
I N S TA L L E D B A S E
GLOBAL
Global installed
CUMULATIVE INSTALLED BASE UNITS
25,100
base grew 12%
23,720
20,930
in last 12 months 17,740
and 6% in last 14,160
In last
12 months
In the last
6 months
6 months to 12 % 6%
25,100 units
2017 2018 2019 2020 H1 2021
GLOBAL
The Company experienced NEW INSTALLED BASE UNITS BY QUARTER (Q3 FY20–Q2 FY21)
a return in the underlying 800
growth momentum of 730
the installed base with
the number of new units 580
installed in Q2 FY21 490
up 38% Q1 FY21
vs Q4 FY20
Q2 FY21
vs Q1 FY21
compared with Q1 FY21.
18 % 38 %
Graphs are not to scale and therefore not comparable Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
Nanosonics Limited | Half Year 2021 4
I N S TA L L E D B A S E B Y R E G I O N
CUMULATIVE INSTALLED BASE NEW UNITS INSTALLED
UNITS BY QUARTER (Q3 FY20–Q2 FY21)
NORTH
AMERICA
In last In last Q1 FY21 Q2 FY21
20,990 22,120 12 months 6 months 650 650 vs Q4 FY20 vs Q1 FY21
18,570
15,620
11% 5% 410
480
17 % 35 %
2018 2019 2020 H1 2021 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
EUROPE AND
MIDDLE EAST
In last In last Q1 FY21 Q2 FY21
1,320 12 months 6 months 120 vs Q4 FY20 vs Q1 FY21
1,120
730
880
31% 18 % 60 50
80
60 % 50 %
2018 2019 2020 H1 2021 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
ASIA
PACIFIC
In last In last Q1 FY21 Q2 FY21
1,610 1,660 12 months 6 months 30 30 vs Q4 FY20 vs Q1 FY21
1,390 1,480
6% 3% 20 20
33 % 50 %
2018 2019 2020 H1 2021 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
Graphs are not to scale and therefore not comparable
Nanosonics Limited | Half Year 2021 5
R A N G E O F S E L L I N G M O D E LS 1
DIRECT CHANNEL DISTRIBUTION CHANNEL
MANAGED FULL SERVICE
CAPITAL SALE EQUIPMENT SERVICE RENTAL DISTRIBUTION CAPITAL RESELLER
• Capital equipment • Nanosonics provides capital • Customer rents capital • Distributor purchases capital • Distributor purchases capital
sold upfront with equipment to customer. equipment. equipment, consumables and equipment from Nanosonics
12-month warranty. spare parts from Nanosonics. and sells to end customer.
• Equipment fully maintained by • Equipment fully maintained
• Customer purchases Nanosonics. by Nanosonics. • Distributor sells capital • Customer purchases
consumables as required. equipment, consumables consumables and service
• Customer purchases • Customer purchases and service to customer on from Nanosonics.
• Customer elects to purchase consumables as required at consumables as required. a similar basis to the Direct
service contracts from an ‘all-inclusive’ price. Channel Capital Sale Model.
Nanosonics (usually after
warranty period expires) or • Nanosonics owns capital
pays for service and parts, equipment, depreciated over
as required. 5 years.
NANOSONICS REVENUE PROFILE
0 yrs 5 yrs 0 yrs 5 yrs 0 yrs 5 yrs 0 yrs 5 yrs 0 yrs 5 yrs
1. The information in the revenue profile charts is intended to be illustrative only, demonstrating the cumulative revenue associated with a single unit sale over five years under each selling model.
Capital Consumables Service/parts
Nanosonics Limited | Half Year 2021 6
FINANCIAL RESULTS REVIEW
T O TA L R E V E N U E
Total revenue down
TOTAL REVENUE BY HALF ($M)
11% vs PCP to
48.5
43.1
$4 3 .1 m H1 FY21
vs PCP
The lower revenue was primarily
driven by the foreshadowed 11 %
reduction in purchases by
GE Healthcare as a result of the
impacts of COVID-19 on its inventory
at 30 June 2020 as well as the H1 FY20 H1 FY21
impact of a stronger Australian dollar.
TOTAL REVENUE BY QUARTER (Q3 FY20–Q2 FY21) ($M)
26.3 25.7
25.3
Global revenue recovered strongly
in Q2 FY21, up 48% compared
with Q1 FY21. This growth resulting
17.4
from stronger installed base growth
across all regions, GE Healthcare Q1 FY21 Q2 FY21
vs Q4 FY20 vs Q1 FY21
resuming purchases of capital
equipment in Q2 FY21 as well as
an increase in consumables and
31 % 48 %
service revenue.
Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
Graphs are not to scale and therefore not comparable
Nanosonics Limited | Half Year 2021 8T O TA L R E V E N U E B Y R E G I O N
TOTAL REVENUE TOTAL REVENUE BY QUARTER
BY HALF ($M) (Q3 FY20–Q2 FY21) ($M)
NORTH
AMERICA
The impact in revenue was primarily associated with the
foreshadowed significant reduction in capital equipment
purchases and a reduction in purchases of consumables in
Q1 FY21 by GE Healthcare in response to increased inventory H1 FY21 Q1 FY21 Q2 FY21
43.8 vs PCP 23.3 23.2 22.4 vs Q4 FY20 vs Q1 FY21
holdings at the end of Q4 FY20. Importantly, GE Healthcare 36.9
resumed purchasing capital equipment in Q2 FY21 and
increased purchases of consumables as a result of the recovery
16 % 14.5 38 % 54 %
in ultrasound procedures across the half coupled with increasing
sales by Nanosonics direct operations. This resulted in total H1 FY20 H1 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
revenue growing 54% between Q1 FY21 and Q2 FY21.
EUROPE AND
MIDDLE EAST
Total revenue for the half was $3.6 million, up 50% compared
with prior corresponding period. Revenue growth momentum
was also experienced between the first and second quarter
with Q2 FY21 revenue up 25% compared with Q1 FY21. H1 FY21 Q1 FY21 Q2 FY21
3.6 vs PCP 2.0 vs Q4 FY20 vs Q1 FY21
1.6 1.6
2.4
50 % 1.2 33 % 25 %
H1 FY20 H1 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
ASIA
PACIFIC
In Asia Pacific, total revenue for the half was $2.6 million, up
8% compared with prior corresponding period.
H1 FY21 Q1 FY21 Q2 FY21
2.4 2.6 vs PCP 1.4 1.3 1.3 vs Q4 FY20 vs Q1 FY21
8% 0.9
44 % 0%
H1 FY20 H1 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
Graphs are not to scale and therefore not comparable
Quarterly revenue data is based on management accounts
Nanosonics Limited | Half Year 2021 9C A P I TA L R E V E N U E
Capital Revenue
CAPITAL REVENUE BY HALF ($M)
down 35% vs PCP to
14.4
$ 9 .4 m 9.4
H1 FY21
vs PCP
35 %
H1 FY20 H1 FY21
Impact was primarily felt in the first CAPITAL REVENUE BY QUARTER (Q3 FY20–Q2 FY21) ($M)
quarter where no capital units were
8.2
sold to GE Healthcare resulting in a 7.4
reduction in capital revenue of 64% 6.7
between Q4 FY20 and Q1 FY21.
As GE Healthcare resumed capital
Q1 FY21 Q2 FY21
purchases in the second quarter, vs Q4 FY20 vs Q1 FY21
coupled with increasing capital
sales by Nanosonics’ direct 2.7 64 % 148 %
operations and other distributor
partners, capital revenue grew by
148% compared with Q1.
Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
Graphs are not to scale and therefore not comparable
Nanosonics Limited | Half Year 2021 10C A P I TA L R E V E N U E B Y R E G I O N
CAPITAL REVENUE CAPITAL REVENUE BY QUARTER
BY HALF ($M) (Q3 FY20–Q2 FY21) ($M)
NORTH
AMERICA
H1 FY21 Q1 FY21 Q2 FY21
13.5 vs PCP 7.3 6.8 vs Q4 FY20 vs Q1 FY21
7.2 47 % 5.4
74 % 200 %
1.8
H1 FY20 H1 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
EUROPE AND
MIDDLE EAST
H1 FY21 Q1 FY21 Q2 FY21
1.5 vs PCP 0.9 vs Q4 FY20 vs Q1 FY21
0.5
200 % 0.5
0.4
0.6
50 % 50 %
H1 FY20 H1 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
ASIA
PACIFIC
H1 FY21 Q1 FY21 Q2 FY21
0.7 vs PCP 0.4 0.4 vs Q4 FY20 vs Q1 FY21
0.4 75 % 0.2
0.3
50 % 33 %
H1 FY20 H1 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
Graphs are not to scale and therefore not comparable
Quarterly revenue data is based on management accounts
Nanosonics Limited | Half Year 2021 11CONSUMABLE / SERVICE REVENUE
Consumables/
CONSUMABLES/ SERVICE REVENUE BY HALF ($M)
Service Revenue
34.1 33.7
down 1% vs PCP to
$ 3 3 .7m H1 FY21
vs PCP
1%
Revenue from consumables and
service in Q1 FY21 was impacted
by a reduction in ultrasound
procedure volumes in Q4 of FY20.
H1 FY20 H1 FY21
This led to a reduction in purchases
by GE Healthcare in Q1 FY21.
CONSUMABLES/ SERVICE REVENUE BY QUARTER (Q3 FY20–Q2 FY21) ($M)
19.0
18.1 17.9
Importantly, total consumables
and service revenue in Q2 FY21 14.7
was up 29% compared with Q1
FY21. This growth reflects the Q1 FY21 Q2 FY21
recovery in ultrasound procedure vs Q4 FY20 vs Q1 FY21
volumes experienced in the half
leading to increased purchases 18 % 29 %
by GE Healthcare, along with the
growing installed base.
Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
Graphs are not to scale and therefore not comparable
Nanosonics Limited | Half Year 2021 12CONSUMABLES/SERVICE REVENUE BY REGION
CONSUMABLES/SERVICE CONSUMABLES/SERVICE REVENUE
REVENUE BY HALF ($M) BY QUARTER (Q3 FY20–Q2 FY21) ($M)
NORTH
AMERICA
H1 FY21 Q1 FY21 Q2 FY21
30.3 29.7 vs PCP 16.0 16.4 17.0 vs Q4 FY20 vs Q1 FY21
2% 12.7
23 % 34 %
H1 FY20 H1 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
EUROPE AND
MIDDLE EAST
H1 FY21 Q1 FY21 Q2 FY21
2.1 vs PCP 1.1 1.0 1.1 vs Q4 FY20 vs Q1 FY21
1.9
11 % 0.8
25 % 10 %
H1 FY20 H1 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
ASIA
PACIFIC
H1 FY21 Q1 FY21 Q2 FY21
1.9 1.9 vs PCP 1.0 1.0 vs Q4 FY20 vs Q1 FY21
0.9
0% 0.7
43 % 10 %
H1 FY20 H1 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
Graphs are not to scale and therefore not comparable
Quarterly revenue data is based on management accounts
Nanosonics Limited | Half Year 2021 13O P E R AT I N G E X P E N S E S
$ 33.0 m
OPERATING EXPENSES
($M) 63.2
49.2
Continued investment in the
42.6 32.5
Company’s growth strategy with
37.0
first half operating expenses of 27.7
$33.0 million, up 8% on prior 23.3
corresponding period and up 19.9
2% compared with H2 FY20.
30.7 33.0
19.3 21.5
17.1
2017 2018 2019 2020 H1 2021
P R O F I T B E F O R E TA X PROFIT BEFORE TAX
($M)
16.8
$ 0. 2 m 13.9
12.4
Operating profit before tax
was $0.2 million compared to
$6.7 million in prior corresponding
period. This reflects the impacts 5.6
of COVID-19, in particular on
Q1 revenue, the ongoing investment
in the Company’s growth strategy 0.2
and a stronger Australian dollar.
2017 2018 2019 2020 H1 2021
Graphs are not to scale and therefore not comparable
Nanosonics Limited | Half Year 2021 14FREE CASH FLOW
( $ 2.4 m )
FREE FLOW CASH
($M) 20.9
Free cash flow for the half year 15.1
was a net outflow of $2.4 million
compared with a net cash inflow of
$10.0 million in prior corresponding
period due to the amount and
6.2
timing of customer receipts and the
timing of supplier payments. 2.6
(2.4)
2017 2018 2019 2020 H1 2021
C A S H A N D C A S H E Q U I VA L E N T S CASH AND CASH EQUIVALENTS
($M)
$ 87. 9 m
91.8
87.9
72.2
69.4
63.0
as at 31 December 2020
Cash and cash equivalents of
$87.9 million, providing ongoing
strong foundation for continued
investment in growth. The
Company has negligible debt.
2017 2018 2019 2020 H1 2021
Graphs are not to scale and therefore not comparable
Nanosonics Limited | Half Year 2021 15PROFIT AND LOSS SUMMARY
HIGHLIGHTS
FY21 FY20 CHANGE% FY20 CHANGE% • Half year revenue of $43.1 million down 11%
$ Million H1 H1 (vs H1 FY20) H2 (vs H2 FY20) (down 8% in constant currency 1) compared
with prior corresponding period.
Capital revenue 9.4 14.4 (35%) 15.6 (40%)
• Gross profit of $34.2 million, or 79% of revenue.
Consumables/Service revenue 33.7 34.1 (1%) 36.0 (6%)
• Selling, general and administration expenses
Total revenue 43.1 48.5 (11%) 51.6 (16%) of $25.4 million compared with $23.9 million
in prior corresponding period.
Gross profit 34.2 36.4 (6%) 39.1 (13%)
• Research and development expenses of
% 79% 75% 76% $7.6 million, the majority associated with
new products.
Operating expenses
• Other losses comprised mainly of net foreign
Selling and general (17.8) (17.7) 1% (17.0) 5% currency losses.
Admin (7.6) (6.2) 23% (6.7) 13% • Income tax benefit of $1.3 million compared
with expense of $1.0 million in the prior year.
Research and development (7.6) (6.8) 12% (8.8) (14%)
Other income 0.0 0.0 — 0.0 —
Other (losses)/gains-net (1.2) 0.6 (300%) (1.3) (8%)
Earnings before interest and tax 0.0 6.3 (100%) 5.3 (100%)
Finance income (net) 0.2 0.4 (50%) 0.4 (50%)
Operating income before income tax 0.2 6.7 (97%) 5.7 (96%)
Income tax benefit/(expense) 1.3 (1.0) (230%) (1.3) (200%)
Profit after income tax 1.5 5.7 (74%) 4.4 (66%)
1. Constant currency removes the impact of foreign exchange rate
movements to facilitate comparability of operational performance. This is
done by converting the current year sales of entities that use currencies
other than Australian dollars at the rates that were applicable in the prior
year. The average exchange rate used for the Company’s major foreign
currency for the 6 months to Dec20/Dec19 was AUD/USD 0.72/0.68.
Nanosonics Limited | Half Year 2021 16SIGNIFICANT GLOBAL MARKET OPPORTUNITY
Installed base opportunity Market Penetration Cumulative Installed Base 25,100
23,720
20,930
GLOBAL 17,740
14,160
• Increasing number of international guidelines requiring
120 , 000
high level disinfection (HLD) supporting growing
international demand.
21%
units • Nanosonics expanding its footprint geographically
both direct and through distributors.
2017 2018 2019 2020 H1 2021
Installed base opportunity Market Penetration Cumulative Installed Base 20,990 22,120
• Fundamentals for adoption strong with requirements
18,570 for HLD in place.
NORTH AMERICA 15,620
12,400 • trophon installed base over 22,120 and already in
40 , 000
units
55%
over 5,000 hospitals and clinics, including majority
of luminary hospitals.
• Nanosonics has a direct sales operation of 74 people
as well as partnerships with all leading ultrasound
2017 2018 2019 2020 H1 2021 companies to drive ongoing adoption.
Installed base opportunity Market Penetration Cumulative Installed Base 1,320
1,120
EUROPE AND • Expanded geographical reach, strengthening fundamentals
MIDDLE EAST 880 for adoption and growing awareness.
730
40 , 000
units
3%
490
• Expanded infrastructure covering sales, marketing,
clinical, regulatory and operations.
• A range of business models in place to support
market requirements.
2017 2018 2019 2020 H1 2021
Installed base opportunity Market Penetration Cumulative Installed Base 1,610 1,660
1,390
1,480 • Sales mainly in ANZ where market penetration is >75%.
1,270
ASIA PACIFIC • Japan market development strategy continues with
five distribution agreements in place.
40 , 000
units
4%
• Continued development of China market entry strategy.
• Assessment underway for further expansion across
Asia Pacific with regulatory approvals now in Thailand
2017 2018 2019 2020 H1 2021
and Indonesia with Malaysia underway.
1. Current installed base. Remaining potential opportunity. Graphs are not to scale and therefore not comparable.
2. Internal estimate based on historical regional estimates of the installed base of ultrasound consoles and those associated with procedures where high level disinfection may be required.
Nanosonics Limited | Half Year 2021 17E X PA N D I N G G L O B A L P R E S E N C E
Nanosonics distributes its products in 27 countries, either through direct operations or via distributor partners.
RUSSIA
SWEDEN
FINLAND
NORWAY
DENMARK ESTONIA
UNITED KINGDOM
CANADA GERMANY
IRELAND AUSTRIA
BELGIUM SWITZERLAND
FRANCE
ROMANIA
UNITED STATES JAPAN
PORTUGAL SPAIN
LEBANON
ISRAEL
KUWAIT
MEXICO HONG KONG
SINGAPORE
AUSTRALIA
NEW ZEALAND
Nanosonics Limited | Half Year 2021 18NEW PRODUCT DEVELOPMENT
NEW PRODUCT DEVELOPMENT
Nanosonics continues FIVE CORE AREAS OF FOCUS
to invest in a number
of innovations aimed
COMPLIANCE AND INSTRUMENT
at addressing a TRACEABILITY CLEANING
broader range of Digitally-enabled tools
to increase visibility and
Mandatory critical first
step which sets up
Infection
infection prevention control around infection
risk mitigation. Prevention.
the effectiveness of all
downstream disinfection
requirements. For Life. procedures.
ENVIRONMENTAL INSTRUMENT
DECONTAMINATION DISINFECTION
Novel technologies and High level and low
chemistries to reduce level disinfection and
cross-contamination sterilisation for medical
In addition, ongoing risk coming from STORAGE SOLUTIONS devices before re‑use
with a patient.
high contact surfaces Assurance that reprocessed
investigations into and environment. devices are not subsequently
potential strategic contaminated and are always
available for next use.
acquisitions and/
or product licensing
or collaboration Active programs are in place covering a number
opportunities continue of the areas outlined above.
through the newly
established business
development function.
All research and new product development programs involve inherent risks
and uncertainties which can impact commercialisation timelines.
Nanosonics Limited | Half Year 2021 20NEW PRODUCT DEVELOPMENT
In the first half The R&D team continued to make
$7.6 million was significant progress across a number
invested in R&D, of projects including a new platform
up 12% on prior technology and a solution for further
corresponding digital traceability and reporting.
period.
INVESTMENT IN R&D
($M)
15.6
11.4
8.8
9.9
9.5
5.9
5.3
5.2
7.6
6.8
5.5
4.3 4.6
2017 2018 2019 2020 H1 2021
Nanosonics Limited | Half Year 2021 21O U R S T R AT E G I C P R I O R I T I E S
TROPHON AS EXPAND GEOGRAPHIC PRODUCT EXPANSION INVEST TO GROW
STANDARD OF CARE FOOTPRINT
• Support establishment of • Expand operations • Expand portfolio of • Maintain strong financial
international guidelines. across Asia Pacific and infection prevention position to support
EMEA with trophon plus solutions to address growth.
• Provide awareness new products. unmet needs.
and education to • Deliver operational
highlight risks of cross • Leverage technology efficiencies, scale and
contamination for all semi platforms for potential leverage.
critical transducers. expanded indications.
• Ensure customers have a
positive experience with
all aspects of the product
and brand.
Nanosonics Limited | Half Year 2021 22BUSINESS OUTLOOK
“The positive growth FY21 EXPECTATIONS
trend and improving • Based on current market improvements the Company is anticipating ongoing growth
in total revenue and profitability into the second half, driven by increasing installed
market conditions base growth and increased usage of consumables across all regions. With COVID-19
experienced across vaccination programs underway, the Company is optimistic that overall market
conditions, in particular access to hospitals, are likely to continue to improve.
the half are expected • The underlying fundamentals for the business remain strong and we maintain our
to continue, subject of commitment to continue to invest in the strategic growth priorities of the business
through market expansion, R&D and infrastructure and capability growth. Total
course to the inherent operating expenses for the year are now expected to be at the lower end of the
risks and uncertainties $75 million to $78 million range indicated previously.
associated with the
COVID-19 pandemic”
Michael Kavanagh,
CEO and President
Nanosonics Limited | Half Year 2021 23BUSINESS OUTLOOK
Despite the current BEYOND FY21
challenges of the Our forward looking growth agenda remains very much intact and indeed the COVID-19
pandemic increases our resolve to execute on this agenda. Beyond FY21, Nanosonics
COVID-19 pandemic is targeting:
our longer term strategic • Continued growth in the trophon eco system and installed base across all regions;
growth agenda remains • Growth in upgrades of trophon EPR to trophon2;
very much intact. • Japan to become an important contributor to global installed base growth as well as
further expansion into Asia Pacific including China;
• Proactive expansion of our product portfolio through internal product development and
opportunities for strategic acquisitions and product licensing across key vectors of infection;
• Ongoing investment in R&D, infrastructure, people and capability to continue driving
the global strategic growth agenda with the aim of establishing Nanosonics as a global
leader in infection prevention.
TROPHON AS EXPAND GEOGRAPHIC PRODUCT EXPANSION INVEST TO GROW
STANDARD OF CARE FOOTPRINT
Nanosonics Limited | Half Year 2021 24APPENDIX
A REAL MARKET NEED
Fundamentals for adoption continue to strengthen
Risk of cross with an increasing number of international guidelines
contamination requiring high level disinfection for semi critical probes
with ultrasound
probes well Traditional mechanisms trophon® setting
of decontamination a new Standard
established
unchanged in decades of Care globally
• 0.9-9% of barrier sheaths
and condoms leak. 1
THE TRADITIONAL METHODS: SAFE
• A meta-analysis has shown SOAK, SPRAY OR WIPE
Patient proven effective
that 12.9% of transducers are contaminated
Chemical spills and vapour on wide range of
with pathogenic bacteria following
control present OH&S risks. pathogens.
routine disinfection. 2
User safe for user.
• HPV, a known cause of cervical cancer, has been Probes often must be transported
found on up to 7.5% of transvaginal ultrasound to a central sterilisation facility. Environment water
transducers following routine disinfection. 3 and oxygen by products.
Pathogens may remain – increased
• A fatal case of hepatitis B and non-fatal case risk of cross contamination.
VERSATILE
of hepatitis C have been attributed to improper
ultrasound transducer disinfection. 4,5 Wipes and sprays not approved Compatible with
by the FDA for HLD. > 1,000 probes.
• Ultrasound transducer handles are not routinely
disinfected and can harbour pathogens Toxic chemicals must be disposed Can be used at point
including MRSA. 6 of as chemical waste. of care.
• Six year population‑level study demonstrates Supports streamlined
increased risk of infection and antibiotic practice workflows.
prescriptions following semi-critical
ultrasound procedures. 7 SIMPLE
Simple to use –
one button operation.
1. Vickery et al, J InfPub Health 2013; in press.
Fast 7 minute cycle.
2. Leroy, S. J HospInfect 2013 83(2): 99-106.
3. Ma S et al. EmergMed J. 2013 30(6): 472-5.
4. FerhiK, et al. Case Rep Urol, 2013: p. 797248.
5. Medicines and Healthcare products Regulatory Agency (UK),
Medical Device Alert Ref: MDA/2012/037.
6. McNally G, NguA, ISUOG world congress, Sydney, 2013.
7. Scott D et al. Ultrasound. 2018 26(3):168-177.
Nanosonics Limited | Half Year 2021 27trophon is an automated system that delivers effective,
®
TROPHON
The latest innovation in efficient and safe high level disinfection of ultrasound
ultrasound probe high probes
level disinfection. trophon® Consumables Accessories
KEY FEATURES
• Highly effective in killing bacteria, fungi and viruses including the highly resistant HPV virus.
• Easy to use with fast 7 minute cycle.
• Can be placed at point of care to support efficient clinical workflows.
• Over 1000 ultrasound probes from all major ultrasound brands approved for use in the system.
• Safe for the operator, patient and environment with oxygen and water as by products.
• Fully automated delivering reproducible results every time.
• Data logs each cycle for excellent traceability.
trophon is covered by 14 patent families. Most are
active through to 2025 and in many cases beyond
including patents relating to the consumables which
go out to 2029.
Nanosonics Limited | Half Year 2021 28You can also read
