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Pacific Growth Equities 2005

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  • Can you add a screened back cone shape behind the three graphics going from small to large? I can explain this better via phone! Call me!!
  • See notes on slide 13 & treat this similarly but with these numbers: -0.12 for final column 2003 , then after the line, add two new columns: -0.27 (for 2003 1H) and -0.10 (for 2004 1H) SO THERE WILL BE NO 2H numbers after the line on any of these slides.

Transcript

  • 1. Mike Schuh – CFO and Anne Bugge, VP – Corporate Affairs 2005 Pacific Growth Equities Life Sciences Growth Conference – San Francisco
  • 2. 2 Forward-Looking Information Except for historical information presented, the statements made today are forward-looking statements that are based on the opinions and estimates of our management as of today. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expected or implied. Factors that could affect our actual results include the performance and acceptance of our products, our ability to compete effectively and other risks described under the heading, “factors affecting our operating results, our business and our stock price,” included in our latest periodic report filed with the SEC. We caution investors not to place undue reliance on these forward-looking statements. We undertake no obligation to update publicly any forward-looking statements made today.
  • 3. 3 Profile  #1 Brand - 60% share est.  #1 Installed Base - 20,000+ units  #1 Technology - ASICS, transducers World leader in hand-carried ultrasound -
  • 4. 4 Benefits of SonoSite HCU  Smaller  Lighter  High performance ultrasound wherever it’s needed … ER … ICU … OR … Imaging lab … Doctor’s office
  • 5. 5 Disruptive Technology =8 lbs. 300+ lbs.
  • 6. 6 Investment Thesis  Revenue growth – 63% 5-yr. CAGR  Transitioning to profitability  High and expanding gross margins  Revenue rising on new technology and expanded channels  Major new market opportunity – CardioVascular Disease Management  Major new product cycle beginning
  • 7. 7 Global Diagnostic Imaging Market MRI CT Nuclear Imaging Mobilization Opportunity X-Ray $17B Ultrasound $3.5 B PET
  • 8. 8 Radiology 40% OB/Gyn 20% Cardiology 25% Vascular 5% Cart-based  Slow unit growth  Slow $ growth  Substitution risk  Commoditization Other 10% The Impact of HCU  High unit growth  High $ growth  Broad market potential HCU Vascular Access Surgery ER Anesthesia Cardiovascular Mgmt. Point of Care Expansion Other 10%
  • 9. 9 Spawning A New Market Historical Price Segmentation 53%53% 27%27% $100K+ $50 - 100K Under $50K 20% Vascular Access Surgery ER Anesthesia Point of Care Expansion Radiology 40% OB/Gyn 20% Other 10% Cardiology 25% Vascular 5% $3.5B Traditional Cardiovascular Mgmt. SONO SONO
  • 10. 10 Hand-Carried Ultrasound Projected Growth Trajectory * Klein Biomedical-2005 2010 Imaging PhysicalTM – Company Estimates 1999 2004 2010 $10M $195M* $1B Diagnostic Diagnostic Imaging PhysicalTM 30% Procedural 20% Procedural
  • 11. 11 Entering Cardiovascular Disease Mgmt  Cardiovascular disease affects more than 64 million Americans  50% men/64% women who died of heart attacks had no previous symptoms  Analysis of carotid artery lining can be effective indicator of asymptomatic disease  SonoSite with IMT software can bring technique to physician’s office
  • 12. 12 The Impact of HCU on CVDM Imaging PhysicalImaging Physical Family Practice Neurologists Ob/Gyn Endocrinologists Internal Medicine Cardiologists 85,000 40,000 Diagnostic 30% Procedural 7,500
  • 13. 13 SonoSite Technology Proposition 180PlusTM (1999) 5.4 pounds ASIC Transducer Design Value
  • 14. 14 iLook® (2002) 3.0 pounds SonoSite Technology Proposition ASIC Transducer Design Value
  • 15. 15 SonoSite Technology Proposition TITANTM (2003) 7.8 pounds ASIC Transducer Design Value
  • 16. 16 Gen III – The Crossover Point Introducing– MicroMAXX™  High-end cart performance in 8 lb. device  Dramatic increase in raw system processing performance without increased size … 4X Channels … 4X improvement in dynamic range … 2X bandwidth  Standard 5-year warranty  Embedded IMT
  • 17. 17 Mobilizing High Performance Ultrasound Traditional Gen I 6 BOPS Gen II 10 BOPS Gen III PERFORMANCE SIZE The Next Generation - Scalable
  • 18. 18 Robust Intellectual Property Portfolio  22 issued patents in US:  Digital ultrasound under 10 lbs  Transducer technology  ASIC technology  Device designs  48 patents pending  20 in US; 28 foreign License to former parent’s HCU-related technology Result: Unmatchable performance, price and size
  • 19. 19 Driving Ultrasound Across the Clinical Spectrum Ra d OB/ Gyn Vas c Card/ Shared Hospital Office E M E D S U R G E R Y A N E S T H Direct Selling Direct/Partner Mix Ra d OB/ Gyn Vas c Cardiology EurologyAcute Care Early Diagnosis & Management Screening Vascular Access Endocrinology Internal Medicine Family Practice OB/GYN Wellness Channels Catheter Insertion Line Placement Biopsy Nerve BlockCard/ Shared
  • 20. 20 Driving Ultrasound Across the Clinical Spectrum Ra d OB/ Gyn Vas c Card/ Shared Hospital Office E M E D S U R G E R Y A N E S T H Direct Selling Direct/Partner Mix Ra d OB/ Gyn Vas c Cardiology EurologyAcute Care Early Diagnosis & Management Screening Vascular Access Endocrinology Internal Medicine Family Practice OB/GYN Wellness Channels Catheter Insertion Line Placement Biopsy Nerve BlockCard/ Shared
  • 21. 21 Driving Ultrasound Across the Clinical Spectrum Ra d OB/ Gyn Vas c Card/ Shared Hospital Office E M E D S U R G E R Y A N E S T H Direct Selling Direct/Partner Mix Ra d OB/ Gyn Vas c Cardiology NeurologyAcute Care Early Diagnosis & Management Screening Vascular Access Endocrinology Internal Medicine Family Practice OB/GYN Wellness Channels Catheter Insertion Line Placement Biopsy Nerve BlockCard/ Shared
  • 22. 22 SonoSite’s Expanding Global Presence 7 Direct Subsidiaries 75 Distributors United Arab Emirates Miami SEATTLE UNITED KINGDOM GERMANY FRANCE SPAIN JAPAN AUSTRALIA/ NEW ZEALAND Brasillia Shanghai Subsidiaries CANADA (Toronto) Major Regional Sales Offices Corporate Headquarters Singapore IndiaMexico
  • 23. 23 Revenue Growth CAGR 63% $10 mm $32 mm $46 mm $73 mm $85 mm $116 mm 1999 2000 2001 2002 20042003 ‘04 ‘05 $24 mm $34 mm 1st Quarter
  • 24. 24 Expanding Gross Margins 36.2% 1999 2000 2001 2002 20042003 ‘04 ‘05 64.8% 70.2% 1st Quarter 41.8% 52.2% 59.2% 63.5% 67.4%
  • 25. 25 Moving Toward Profitability -$3.08 1999 $0.23 * 2004 -$0.12 2003 -$0.59 2002 -$1.59 2001 -$2.01 2000 * Excludes tax benefit of $1.23 per share ‘04 ‘05 -$0.10 $0.05 1st Quarter
  • 26. 26 Balance Sheet Strength ($ millions) March 31, 2005 Cash and Investments $ 61.5 Total Assets $ 155.2 Long-term Debt - 0 - Stockholders’ Equity $ 136.2 Current Ratio 5:1
  • 27. 27 Nasdaq: SONO www.sonosite.com