Announcement

FLLYR: FPH: FPH Reports Record Full Year Result 08:30a.m. 
FPH  
27/05/2019 08:30  
FLLYR  
PRICE SENSITIVE  
REL: 0830 HRS Fisher & Paykel Healthcare Corporation Limited  
 
FLLYR: FPH: FPH Reports Record Full Year Result  
 
Fisher & Paykel Healthcare Reports Record Full Year Result, Achieves Revenue  
Milestone of NZ$1 Billion  
 
Auckland, New Zealand, 27 May 2019 - Fisher & Paykel Healthcare Corporation  
Limited today announced a record result for the 2019 financial year, with net  
profit after tax up 10% to NZ$209.2 million. The company also reached the  
milestone of achieving over NZ$1 billion in revenue, with operating revenue  
up 9% to a record NZ$1.07 billion.  
 
"Our record results were driven by our innovative products, the dedication of  
our teams around the world, a culture of continuous improvement and the value  
we offer for clinicians and patients," said Managing Director and CEO, Lewis  
Gradon. "It is now 50 years since the inception of our business and our  
results this year are a reflection of our long term and consistent growth  
strategy."  
 
Operating revenue for the Hospital product group, which includes products  
used in respiratory, acute and surgical care, increased 12% to a record  
NZ$642.3 million, or 11% growth in constant currency. Products in the  
Hospital group made up 60% of the company's operating revenue.  
 
"Our Optiflow nasal high flow therapy remains a key growth driver for our  
hospital business and over the past year we estimate that approximately 3  
million patients were treated with our Optiflow products. This was reflected  
in robust constant currency revenue growth of 20% from new applications  
consumables which now account for 62% of our Hospital consumables revenue."  
 
Operating revenue for the Homecare product group, which includes products  
used in the treatment of obstructive sleep apnea (OSA) and respiratory  
support in the home, rose 6% to NZ$421.5 million, or 4% growth in constant  
currency. A hiatus in OSA mask launches was offset by a strong contribution  
from the successfully completed roll out of the company's new SleepStyle OSA  
device to all major markets, and from home respiratory support.  
 
"We were pleased to launch our new F&P ViteraTM OSA full face mask recently.  
This mask puts patient comfort first and incorporates our new VentiCoolTM  
technology, the next generation of mask seal and other innovative design  
features. The initial response from our customers in Australasia, Canada and  
Europe has been positive and we look forward to releasing Vitera in more  
countries during the course of this year."  
 
Gross margin increased by 56 basis points to 66.9%, or a 58 basis points  
increase in constant currency, compared to the previous year, primarily due  
to favourable product mix.  
 
"Research and development remains a fundamental part of our success story,  
with a cumulative $750+ million invested in R&D since 2001. Last year, we  
invested $100 million (equal to 9% of our revenue) into R&D and we have a  
full pipeline of new products in development."  
 
Dividend and Suspension of Dividend Reinvestment Plan  
The final dividend of 13.5 cents per share, carrying full New Zealand  
imputation credit, will be paid on 5 July 2019. Given the company's strong  
performance over the last five years and reduction of debt to below the  
target gearing range, the Board has determined to suspend the dividend  
reinvestment plan (DRP). As a result, shareholders who have previously  
elected to participate in the DRP will receive dividends in cash for the  
dividend scheduled to be paid on 5 July 2019.  
 
Outlook for FY2020  
"Achieving $1 billion in revenue is a milestone for our company, however, we  
are not sitting still. We will continue to build on our strengths and  
continuously improve and expand our portfolio of valued solutions for  
healthcare providers and patients.  
 
"We expect capital expenditure for the 2020 financial year to be  
approximately NZ$150 million as we increase capacity for both existing and  
new products and complete construction of the fourth building on our Auckland  
campus.  
 
At current exchange rates we expect full year operating revenue for the 2020  
financial year to be approximately NZ$1.15 billion and net profit after tax  
to be approximately NZ$240 million to NZ$250 million. Recent changes  
introduced by the New Zealand Taxation (Research and Development Tax Credits)  
Act 2019, a significant reduction in patent litigation costs and forecast  
currency benefits have been factored into our earnings guidance for 2020.  
 
"We are looking forward to the future and what it holds for our company and  
are well positioned to meet growing demand for our products and systems and  
continuing to deliver better healthcare solutions," concluded Mr Gradon.  
 
Overview of key results for the 2019 financial year  
o 10% growth in net profit after tax to a record NZ$209.2 million.  
o 8% increase in final dividend to 13.5 cps (2018: 12.5 cps).  
o 9% growth in operating revenue to a record NZ$1.07 billion, 8% growth in  
constant currency.  
o 12% growth in Hospital operating revenue, 11% growth in constant currency.  
o Revenue growth of 20% in constant currency for consumables used in  
non-invasive ventilation, Optiflow nasal high flow therapy and surgical  
applications, accounting for 62% of Hospital consumables revenue.  
o 6% growth in Homecare operating revenue, 4% growth in constant currency.  
o Investment in R&D was 9% of revenue or NZ$100.4 million.  
o 86% of the company's revenue was generated from recurring items, such as  
consumables and accessories.  
 
About Fisher & Paykel Healthcare  
Fisher & Paykel Healthcare is a leading designer, manufacturer and marketer  
of products and systems for use in respiratory care, acute care, surgery and  
the treatment of obstructive sleep apnea. The company's products are sold in  
over 120 countries worldwide. For more information about the company, visit  
our website www.fphcare.com.  
 
Ends  
 
Media & Investor Contacts:  
Marcus Driller  
VP Corporate  
marcus.driller@fphcare.co.nz  
+64 (0) 27 578 9663  
 
Hayden Brown  
Investor Relations Manager  
hayden.brown@fphcare.co.nz  
+64 (0) 27 807 8073  
 
Accompanying Documents  
Please find attached to this news release the following additional documents:  
 
o Results in Brief  
o Annual Report 2019  
o Investor Presentation 2019  
o Annual Review 2019  
o NZX Results Announcement  
o NZX Distribution Notice  
 
The 2019 Annual Report is also available online at  
https://annualreport.fphcare.com/.  
 
Constant Currency Information  
Constant currency information included within this news release is  
non-conforming financial information, as defined by the NZ Financial Markets  
Authority, and has been provided to assist users of financial information to  
better understand and track the company's comparative financial performance  
without the impacts of spot foreign currency fluctuations and hedging results  
and has been prepared on a consistent basis each year. A constant currency  
analysis is included on page 36 of the company's Annual Report 2019 and the  
company's constant currency income statement framework can be found on the  
company's website at www.fphcare.com/ccis.  
 
Full Year Results Conference Call  
Fisher & Paykel Healthcare will host a conference call today to review the  
results and to discuss the outlook for the 2020 financial year. The  
conference call is scheduled to begin at 10:00am NZST, 8:00am AEST (6:00pm  
USEDT) and will be broadcast simultaneously over the internet.  
 
To listen to the webcast, access the company's website at  
www.fphcare.com/investor. Please allow extra time prior to the webcast to  
visit the site and download the streaming media software if required. An  
online archive of the event will be available approximately two hours after  
the webcast and will remain on the site for two weeks.  
 
To attend the conference call, participants will need to dial in to one of  
the numbers below 5 to 10 minutes prior to the scheduled call time and  
identify yourself to the operator. When prompted, please quote the  
conference code of: 7242707.  
 
New Zealand Toll Free 0800 423 970  
US/Canada Toll Free 800 458 4121  
Australia Toll Free 1800 573 793  
Hong Kong Toll Free 800 961 105  
United Kingdom Toll Free 0800 358 6377  
International +64 9 913 3622  
End CA:00335053 For:FPH Type:FLLYR Time:2019-05-27 08:30:23  

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