US & S & M Mexico I o Investor D or Day 12 S Sep eptemb ember er 2016 Care.
Morn orning A g Age genda da 8:30am Welcome Marcus Driller (General Manager, Corporate) Why Mexico? Lewis Gradon (Managing Director & CEO) Overview of Mexican Operations Raul Sanchez (General Manager Mexico Operations) 9:15am Tour of Parque Industrial Pacifico Manufacturing Facility Raul Sanchez (General Manager Mexico Operations) 10:15am Complete facility tour and board coach 10:45pm Visit to new Tijuana campus site – La Encantada 11:15am Depart for San Diego 12:00pm Lunch break in San Diego Time will be made available at the end of each presentation specifically for questions and answers. 2
Lewis Gradon Managing Director and CEO Why Mexico? 3
Why Me y Mexico? Mexico is performing extremely well Manufacturing Output by Region 12 months to 31 March 2016 o Grow manufacturing outside New Zealand for geographical risk mitigation o Working day overlap with Auckland o Access to raw materials o Economic and political stability o Ease of personnel transfer (work permits etc) o Proximity to our largest market over a 10 year horizon New Zealand Mexico o Great people – skill, productivity and availability of people 4
Why Me y Mexico? https://www.bcgperspectives.com/content/interactive/lean_manufacturing_globalization_bcg_global_manufacturing_cost_competitiveness_index/ 5
Raul Sanchez General Director Mexico Operations Overview of Mexican Operations 6
Tiju ijuan ana B a Ben enef efit its o Medical device manufacturing skills (>38,000 people) o Proximity to major North American markets o Low and relatively stable manufacturing labour costs o Bilingual Spanish, English 7
Proxi ximity ty 10,46 462 km km Distan ance e from om A Aucklan and to o Tijuan ana 8
Tiju ijuan ana an a and M Mexic ico Dem emograp aphic ics 1.8% .8% annual population growth o Population of Mexico estimated at approximately 120 million o 3.15 million people in Baja California 27. 7.0 74.9 .9 years average life o 1.7 million people in work expectancy Tijuana metropolitan area force age 1.2 .2 million people labor force Source: Tijuana Medical Cluster 9
Med edic ical D al Devic ice e In Industry in in T Tiju ijuan ana Employees in the Maquiladora Employed in Baja Industry in Mexico in 5,000+ California in 900+ companies companies >290,000 000 >2 >2.4 m millio illion Medical device Employed in Tijuana in manufacturing 500+ companies plants in Tijuana >200 00,000 000 50 50 Employees in medical device manufacturers in Tijuana >38, 8,000 000 Source: Tijuana Medical Cluster/Instituto Nacional de Estadística y Geografía (INEGI) 10
Qualit ality o Commitment to manufacturing quality healthcare devices o Environmentally-controlled environment: temperature, humidity, pressure and contaminant levels are kept within strict limits o Production quality is continuously monitored and our products are rigorously tested before shipment o As in NZ, certified to ISO13485 (the Medical Devices Quality Management Systems standard) by TÜV SÜD 11
Tim imelin eline Started production Started Started mask Commenced Commenced Fit-out First Lease production of nasal prongs and production. production shipments to production of agreement completed. Nivairo mask. of Simplus Second Evaqua II. of Optiflow Europe. signed and First full face mask. Negotiated products. chamber line mask shipped. Received fit-out purchase of new Implemented installed. Commenced Japan starts. First breathing Tijuana campus. SAP. production circuit accreditation. of Eson. shipped. 12
Our P Ou r Peopl ople Total number of Mexico employees at August 2016 811 11 EDUCATION ED ION World class universities Public & Private universities Technical Schools 14 14 35 35 Degrees and Masters Mechanical Engineer Master and Doctorate in Sciences • • Industrial Engineer and Digital Systems • Mechatronic Engineer Master in R&D in Digital Systems • • Biochemistry Engineer Master in Information Tech and • • Electrical Engineer Communication • Source: Tijuana Medical Cluster 13
Or Orga ganizati tion on C Chart rt 14
Produ oducts ts Made de i in M Mexi xico Chambers Circuits 15
Produ oducts ts Made de i in M Mexi xico Masks and accessories 16
Valu aluin ing Our P r Peopl ople o Educational excellence o Children’s Day open house o Environmental and community initiatives o Health awareness campaign o Transport o Subsidized meals 17
New T Tiju ijuan ana a Ca Campus us - La La En Encanta tada da 18
New T Tiju ijuan ana a Cam ampus - La La En Encanta tada da 19
What i t is n next xt for M or Mexi xico? o Adding capacity growth in Mexico, generally not moving production from New Zealand o Currently in process of establishing a manufacturing campus in Tijuana o New manufacturing facility in Tijuana to be completed in 2019 o Continued gross margin expansion – 50 to 100bps for at least the next three years 20
Raul Sanchez General Director Mexico Operations Questions?
Aftern rnoon oon A Age genda da 3:00pm The Opportunity Lewis Gradon (Managing Director & CEO) 3:20pm North American Business Overview Justin Callahan (President US Operations) US Hospital Steve Lacke (VP Sales & Marketing – US Hospital) 4:20pm Afternoon Break 4:30pm Optiflow nasal high flow with AIRVO Dr Robert Goldberg (Pulmonologist, Mission Viejo, California) 5:00pm US Homecare Justin Callahan (President US Operations) Steve Polgar (National Sales Manager – US Homecare) 5:30pm Health of the Homecare Industry Doug Coleman (CEO, Major Medical Supply, Colorado) Closing Comments Lewis Gradon (Managing Director & CEO) 6:00pm Finish 6:30pm Dinner FPH NZ and US Management Teams Time will be made available at the end of each presentation specifically for questions and answers . 22
Lewis Gradon Managing Director and CEO The Opportunity
Ou Our B r Business: : Hos Hospi pita tal Invasive Noninvasive Hospital Surgical Respiratory Support Ventilation Ventilation Humidification “NEW APPLICATIONS” Applications outside of invasive ventilation 24
Ou Our B r Business: : Hom Homecare Home CPAP Respiratory Support Therapy 25
Globa obal Opportu Opportuniti ties Demographics: o 60% of total lifetime healthcare cost incurred over 65 years of age o US population over 65 years of age to grow by ~80% over the next 20 years o Healthcare spending per capita increasing by 5-7% pa in developing countries o Focus on reducing healthcare costs: in hospitals, ~6% of expenditure is on medical devices 26
Strong Glo Global P al Pres esen ence o International reach Revenue by Region 12 months to 31 March 2016 o Selling into 120 countries o Our people based in 36 countries o New sales offices in Brazil, Norway o 100+ distributors worldwide o 15 distribution centres o 3,500+ employees o Will continue to grow our global presence 27
Fin inan ancial T ial Tar arget ets o More than NZ$1 billion of annual operating revenue within the next two years o Doubling our constant currency operating revenue every 5-6 years o Targeting gross margin of 65% and operating margin of 30% o Targeted dividend pay-out ratio of approximately 70% of net profit after tax 28
New P Ne Produ oduct t Developm opment o Investment into R&D: 500+ people, NZ$73.3M (9% of operating revenue) * o Working on new products and ideas many years prior to release o Just released three new products, more to come Just released three new products, o New products will support long-term more to come growth * As at 31 March 2016 29
Com ompe peti titi tive A Adv dvanta tage ge – 45 5 Years rs’ Expe ’ Experi rience Significant expertise in, and history, of changing clinical practice High barriers to entry: o Years in market o Dedicated and focused sales force o Strong distribution channels, supplier/dealer relationships o Substantial and growing clinical evidence showing efficacy of our products o Proprietary technology and IP protection of that technology o Hospital: Evaqua / Optiflow / Airvo / F&P 850 / F&P 950 o Homecare: Masks / myAirvo 30
Importa portance of of North North Am Ameri rican M Mark rket o Our largest market – 47% of revenue FY16 o New direct sales model for hospital products to accelerate growth o Unique sales process – GPOs, reimbursement o Looking at ways to reduce overall healthcare spend 31
Lewis Gradon Managing Director and CEO Questions?
Justin Callahan President US Operations North American Business Overview
Ov Overv rview of of ou our North r North Am Ameri rican B Business North American Employees Revenue by Region North American Revenue US$M 12 months to 31 March 2016 300 250 200 250 150 200 100 50 150 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 100 50 8,000 direct customers 0 250,000 square feet of 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 distribution facilities 34
Stru tructu ture 35
Recommend
More recommend
