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Executive Briefing Gary Robinson Resmed


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Executive Briefing Gary Robinson Resmed

  1. 1. Born Global - Delivery on Export Excellence Across Global Markets Global leaders in sleep and respiratory medicine Gary Robinson VP – Supplier Alliance
  2. 2. Agenda <ul><li>ResMed overview </li></ul><ul><li>Sleep-disordered breathing </li></ul><ul><li>Market growth drivers </li></ul><ul><li>Product innovation </li></ul><ul><li>Strategic alliances </li></ul><ul><li>Global integration </li></ul><ul><li>Global strengths </li></ul>
  3. 3. What Does ResMed Do? <ul><li>Global leading developer, manufacturer and marketer of medical devices to treat sleep-disordered breathing (SDB) and other respiratory conditions </li></ul>
  4. 4. ResMed – Global Operations <ul><li>Operate in 70 countries through wholly owned subsidiaries and independent distributors </li></ul><ul><li>Excellent leadership and a team of 3,000 personnel in direct offices in 18 countries </li></ul><ul><li>Continuing innovation </li></ul><ul><ul><li>2,100 patents, 1,100 design registrations granted and pending – June 2009 </li></ul></ul><ul><li>Manufacturing in Australia, US and Europe, and Singapore </li></ul>NYSE: RMD ASX: RMD.AX
  5. 5. ResMed – Global Opportunity <ul><li>The sleep-disordered breathing (SDB) market </li></ul><ul><li>Global market size approximately $2.5 billion </li></ul><ul><li>Market growth in US estimated at 15-20% </li></ul><ul><li>Market growth in OUS estimated at 10-15% </li></ul><ul><li>Market <10% penetrated </li></ul>
  6. 6. Strong Sales Performance - Quarterly <ul><ul><li>Trailing 12 Months Revenue: </li></ul></ul><ul><ul><li>$1.0B </li></ul></ul>US$ (Million) <ul><ul><li>FY 2009 EPS $1.90 </li></ul></ul><ul><ul><li>20% CAGR </li></ul></ul>
  7. 7. Global Sales by Region & Product Q2 2010 Americas 54% Europe 38% Asia-Pacific 8% Masks & Accessories 41% Flow Generators 59%
  8. 8. Global Strategy Innovation Patent new products to address current and unmet clinical needs in both sleep disorders and respiratory insufficiency with a commitment to providing the highest quality products in the market. Education and awareness Effective global marketing of sleep-disordered breathing via public relations and clinical education campaigns. Investing for global growth Reinvest capital into dedicated long term resources geared toward expanding our global reach.
  9. 9. Sleep-disordered Breathing (SBD)
  10. 10. <ul><li>Types of sleep-disordered breathing (SDB): </li></ul><ul><li>Obstructive sleep apnea (OSA) The most common type of sleep apnea. It occurs when the upper airway closes but efforts to breathe continue. </li></ul><ul><li>Central sleep apnea (CSA) This affects only 5-10% of the sleep apnea population. It occurs when the muscles of respiration fail to act, though the airway remains open. </li></ul><ul><li>Complex and mixed apnea (CompSA) A combination of OSA and CSA. </li></ul>Healthy upper airway: Obstructed upper airway: Partially obstructed upper airway: What is Sleep-Disordered Breathing?
  11. 11. Treatment for Sleep Apnea <ul><li>CPAP - Continuous Positive Airway Pressure </li></ul><ul><li>OSA treatment first described in 1981 by Sullivan ( Lancet ) </li></ul><ul><li>Works as an air splint to keep upper airway open during sleep </li></ul><ul><li>Prevents upper airway collapse and associated physiologic responses </li></ul><ul><li>Most effective non-invasive therapy </li></ul>
  12. 12. SDB Externally <ul><li>Choking arousals </li></ul><ul><li>Fragmented sleep </li></ul><ul><li>Nocturia </li></ul><ul><li>Unrefreshed on wakening </li></ul><ul><li>Morning headaches </li></ul><ul><li>Impaired concentration </li></ul><ul><li>Daytime sleepiness </li></ul><ul><li>Fatigue related industrial and automotive accidents </li></ul>Internally • Hypoxemia • Hypercapnia • Sympathetic activation • Endothelial dysfunction • Metabolic dysregulation • Hypertension • Arrhythmias • Myocardial infarction • Stroke
  13. 13. Metabolic Syndrome <ul><li>Sleep-disordered breathing is at the center of Metabolic Syndrome </li></ul><ul><li>Treating SDB improves all major co-morbidities </li></ul>
  14. 14. Market Growth Driver
  15. 15. How Will the Market Grow? Occupational Health & Safety Healthcare Practice Guidelines Healthcare Economics Reimbursements Medical Awareness Public Awareness Co-morbidities & Demographics
  16. 16. Obesity Trends* Among U.S. Adults <ul><li>(*BMI  30, or about 30 lbs. overweight for 5’4” person) </li></ul>Journal of Sleep: CDC Behavior Risk Factor Surveillance Survey (BRFSS) 1990 1998 No Data <10% 10%–14% 15%–19% 20%–24% 2 5%–29% ≥30% 2008
  17. 17. Growth in SDB Publications
  18. 18. Product Innovation
  19. 19. <ul><li>6-7% spending on R&D – 2010 </li></ul><ul><li>Innovative culture (2,100) patients </li></ul><ul><li>Market position of high end products </li></ul><ul><li>Valued internally (P.Farrell Innovation Awards) </li></ul><ul><li>Clinical Research group </li></ul><ul><li>Close alliance with leading external research establishments </li></ul>Drivers
  20. 21. Product Quality & Innovation
  21. 22. S9™ Series It’s all about... More. Comfort.
  22. 23. Home Testing <ul><li>In 2008, Home Sleep Testing (HST) was approved by Medicare and all 5 of the major commercial payers </li></ul><ul><li>Over 50% of US adult population has access to HST </li></ul>Sleep Lab Home Sleep Testing
  23. 24. Innovation Metrics * New products includes all products that were launched in the last 12 months of each quarter
  24. 25. Strategic Alliances
  25. 26. Market Creation through Distribution Agreements <ul><li>Careful selection of distributors in new markets </li></ul><ul><li>Exclusive arrangements </li></ul><ul><li>Internal development of market </li></ul><ul><li>Acquisition of long term distributors </li></ul><ul><li>Direct presence confirmed </li></ul><ul><li>Integrated into Corporate structure </li></ul>
  26. 27. <ul><li>ResMed sales subsidiaries in key healthcare markets: </li></ul><ul><ul><li>USA </li></ul></ul><ul><ul><li>Europe ResMed: Germany, France, UK, Sweden, </li></ul></ul><ul><ul><li>Switzerland, Spain, Finland, </li></ul></ul><ul><ul><li>The Netherlands, Norway, Austria </li></ul></ul><ul><ul><li>Asia Pacific: Japan, India, China, Australia, NZ </li></ul></ul><ul><li>ResMed controls the sales and marketing focus </li></ul><ul><li>Distributors in the other ~40 countries </li></ul>International Distribution
  27. 28. Global Integration
  28. 29. Business Evolution <ul><li>Start-up – one location, independent distributors </li></ul><ul><ul><li>Organic growth – one location, distribution network </li></ul></ul><ul><ul><ul><li>Acquisitions – multiple specialized operations </li></ul></ul></ul><ul><ul><ul><li>Global – multiple design and manufacturing sites </li></ul></ul></ul>Current Gap
  29. 30. <ul><li>Organizational change </li></ul><ul><ul><li>Establishment of CEO (Non-Founder) </li></ul></ul><ul><ul><li>Customer focused business units (Sleep, Patient Interface, Ventillation) </li></ul></ul><ul><li>Cultural Change </li></ul><ul><ul><li>“ One ResMed” </li></ul></ul><ul><ul><li>Continuous Improvement (Lean, Six Sigma) </li></ul></ul><ul><ul><li>Learning Centre </li></ul></ul><ul><ul><li>“ Voice” Climate Survey </li></ul></ul>Bridging the Gap
  30. 31. Bridging the Gap <ul><ul><li>Systems Development </li></ul></ul><ul><ul><ul><li>Oracle is the Global Platform </li></ul></ul></ul><ul><ul><ul><li>Local variations if justified </li></ul></ul></ul><ul><ul><ul><li>ResMed Quality Management System </li></ul></ul></ul><ul><ul><ul><li>Global Learning Management System </li></ul></ul></ul><ul><ul><ul><li>Global IT Organisation </li></ul></ul></ul>
  31. 32. Bridging the Gap <ul><ul><li>All functions being challenged </li></ul></ul><ul><ul><li>Global consistency </li></ul></ul><ul><ul><li>KPI driven </li></ul></ul><ul><ul><li>Eliminate waste </li></ul></ul>
  32. 33. Changing role of IT in the organisation
  33. 34. Global Strengths <ul><ul><li>Global footprint </li></ul></ul><ul><ul><ul><li>Established by distributor acquisition </li></ul></ul></ul><ul><ul><li>Global workforce </li></ul></ul><ul><ul><ul><li>Mobile </li></ul></ul></ul><ul><ul><ul><li>Multicultural </li></ul></ul></ul><ul><ul><li>Global Systems </li></ul></ul><ul><ul><li>Current focus </li></ul></ul>
  34. 35. Global Supply Chain Footprint <ul><li>China </li></ul><ul><li>– Supplier Alliance Team </li></ul><ul><li>Component Suppliers </li></ul>Europe PD, Ventilation Manufacturing Service Australia Manufacturing, PD & R&D West USA PD, Logistics & Service Centre Singapore PD, Purchasing & Manufacturing East USA Logistics West USA Motor Manufacturing
  35. 36. Conclusion <ul><ul><li>ResMed was born global </li></ul></ul><ul><ul><li>Product innovation has driven global sales </li></ul></ul><ul><ul><li>Now completing construction of a global business </li></ul></ul>
  36. 37. You are not healthy unless your sleep is healthy