FPH Presentation to Deutsche Bank NZ Corporate Day

Stock Exchange Announcement
STOCK EXCHANGE LISTINGS: NEW ZEALAND (FPH), AUSTRALIA (FPH)

Fisher & Paykel Healthcare Presentation to Deutsche Bank / Craigs NZ Corporate Day
Conference

Auckland, New Zealand, 6 March 2019 - Fisher & Paykel Healthcare Corporation Limited attaches
a copy of its presentation to analysts and fund managers at the Deutsche / Craigs NZ Corporate
Day in Sydney. All material incorporated in the presentation has previously been disclosed to the
NZX and ASX.

The presentation is attached and will also be made available on the company’s website at
www.fphcare.com/investor/presentations.

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

---

1
Half Year Results Presentation FY2018
Care by design
Half Year Results Presentation FY2019 | Deutsche / CraigsNZ Corporate Day
For six months ended 30 September 2018

2
H1 FY2019 Business Highlights
+ WELCOMED
first major clinical study into the use
of Optiflownasal highflow therapy in
the home
+ AWARDED
two Gold Pinsat the New Zealand
Design Awards for our F&P InfoSmart
web application and F&P SleepStyle
patient application
+ ANNOUNCED
the appointment of LyndalYo r k a s
Chief Financial Officer and Neville
Mitchell as a new non-executive
director
+ INCLUDED
in the Dow Jones Sustainability Asia
Pacific Index and the Dow Jones
Sustainability Australia Index
+ LAUNCHED
the F&P 950 neonatal heated
humidification system into New
Zealand and Australia
+ PROGRESSED
with construction of our two building
projects in New Zealand and Mexico

3
First Half Financial Highlights
H1 FY2019 (6 months to 30 September 2018)
NZ$MPCP^CC*
Record operating revenue511.3+12%+8%
Record Hospital operating revenue2 9 7. 3+13%+11%
Record Homecare operating revenue211.1+10%+6%
Hospital new applications consumables revenue+24%+22%
OSAmasks revenue+6%+2%
Gross margin(basis points increase)+77bps+22bps
Record net profit after tax9 7. 4+20%+14%
^ PCP = prior comparable period * CC = constant currency
Recurring items, consumables and accessories
approximately 86% of operating revenue (H1 FY18: 87%)

4
Hospital Product Group
58%
OF OPERATING REVENUE
13%
NZ$
H1 FY2019
11%
CONSTANT CURRENCY
24%
NZ$
22%
CONSTANT CURRENCY
HOSPITAL OPERATING REVENUE
NEW APPLICATIONS*
CONSUMABLES REVENUE
*New applications = Noninvasive ventilation (NIV), Optiflow™, AIRVO™, Surgical
•New applications consumables* made
up 60% of H1 FY2019 Hospital
consumables revenue, 55% in H1
FY2018
•Strong customer demand for our
Optiflowand AIRVO systems, driven
by clinical trial results
•F&P 950 to be released in Europe mid-
2019, followed by US and Canada
Respiratory humidification and support
Surgical technologies
H1 FY2019

5
Homecare Product Group
41%
OF OPERATING REVENUE
10%
NZ$
H1 FY2019
6%
CONSTANT CURRENCY
6%
NZ$
HOMECARE OPERATING REVENUE
MASKS REVENUE
CPAP therapy / Obstructive Sleep Apnea (OSA)
2%
CONSTANT CURRENCY
Home respiratory support
H1 FY2019

6
First Half Operating Results
H1 FY2019 (6 months to 30 September 2018)
% of RevenueNZ$MPCP^CC*
Operating revenue100%511.3+12%+8%
Cost of sales33.2%169.7+9%+8%
Gross profit66.8%341.6+13%+9%
Other income (R&D grant)2.50%0%
SG&A31.2%159.4+11%+8%
R&D8.9%45.7-3%-3%
Total operating expenses40.1%205.1+8%+5%
Operating profit27. 2%139.0+21%+14%
Profitafter tax19.0%97.4+20%+14%
^ PCP = prior comparable period * CC = constant currency

7
Gross Margin Improvements
Long Term Gross Margin target
GROSS MARGIN
Note: the long term gross margin target is based on an assumption of a continuation of the current business environment.
0%
10%
20%
30%
40%
50%
60%
70%
201420152016201720181H 2019
•Gross margin for the first half:
−increased by 77 bps to 66.8%
−increased by 22 bps in constant currency
•Primarily driven by favourableproduct mix
•Offset by OSA price declines

8
Operating Margin
OPERATING (EBIT) MARGIN
Long Term Operating margin target
Note: the long term operating margin target is based on an assumption of a continuation of the current business environment.
0%
5%
10%
15%
20%
25%
30%
201420152016201720181H 2019
Research & Development expenses
•NZ$45.7M
•-3% (-3% cc) compared to 1H FY18
•Higher one-off costs in the prior half
relating to product introductions and
patent renewal fees
•Underlying rate of R&D increasing
Selling, General & Administrative expenses
•NZ$159.4M
•+11% (+8% cc) compared to 1H FY18
•Continuing expansion of sales teams and
promotional activities
•Patent litigation expenses: $7.7M

9
Cash Flow and Balance Sheet
H1FY2019 (for the 6 monthsended 30 September 2018)NZ$M
Operating cash flow (+14%)93.4
Capital expenditure (includingpurchases of intangible assets)61.1
Depreciation and amortization20.9
H1 FY2019 (as at30 September 2018)NZ$M
Net cash14.8
Total equity776.7
Total assets1,044.0
%
Gearing(debt/debt + equity)-2.0%

10
Gearing and Dividend
•Increased interim dividend by 11%:
−9.75 cps + 3.792 cps imputation credit
for NZ residents (gross dividend of NZ
13.542 cps)
−Fully imputed
−1.721 cps non-resident supplementary
dividend
−Dividend reinvestment plan available
for New Zealand and Australian
residents. No discount will apply.
•Target gearing ratio* of +5% to -5%
debt to debt plus equity
−Gearing ratio at 30 September 2018 was
-2.0%
* Calculated using net interest bearing debt (debt less cash and cash equivalents) to net interest-bearing debt and equity (lesshedge reserve).
GEARING*

11
Foreign Exchange Effects
•50% of operating revenue in USD (FY18: 51%) and 19% in €.
Year to 31 March
Hedging position for our main ex p o s u r e s
(a s a t 26 t h N o v e m b e r 20 1 8 )
FY1 9FY20FY21FY22FY23FY24FY25-27
USD % cover of expected exposure95 %75 %50%10%
---
USD average rate of cover0. 68 10. 66 80. 6540. 66 0---
EUR % cover of expected exposure95 %70%50%40%35%25%5%
EUR average rate of cover0. 6040. 5720. 54 20.5220. 5090. 5000.47 1
Hedging cover percentages have been rounded to the nearest 5%
6 months ended 30 September
Reconciliation of Constant Currency to Actual Income Statements
20 16
N Z$M
20 17
N Z$M
20 18
N Z$M
Profit before tax (constantcurrency)106.9109.1126.1
Spot exchange rate effect(0.6)(5.5)6.6
Foreign exchange hedgingre s u l t9.710.4(2.1)
Balance sheet revaluation(4.8)0.15.3
Profit before tax (as reported)111.2114.1135.9

12
Profit & Loss by Currency
1%
50%
19%
0%
30%
NZDUSDEURMXNOther
REVENUE BY CURRENCY
46%
35%
3%
9%
7%
NZDUSDEURMXNOther
COST OF SALES BY CURRENCY
42%
26%
12%
0%
20%
NZDUSDEURMXNOther
OPERATING EXPENSES BY CURRENCY
1H FY 2 0 1 9 (for the 6 months ended 30 September 2018)

13
Overview

14
Fisher & Paykel Healthcare at a Glance
•Medical device manufacturer with leading
positions in respiratory care and obstructive
sleep apnea
•45+ years’ experience in changing clinical
practice to solutions that provide better clinical
outcomes and improve effectiveness of care
•Estimated US$6+ billion and growing market
opportunity driven by demographics
•Significant organic long-term growth
opportunities in respiratory care, OSA, COPD and
surgery
•Large proportion (86%) of revenue from
recurring items, consumables and accessories
•High level of innovation and investment in R&D
with strong product pipeline
•High barriers to entry
Global leader in respiratory humidification
devices
Global presence
Strong financial performance
Consistent growth strategy
37
Our people are
located in 37
countries
2,258
of our people in
New Zealand
1,314
of our people in
North America
294
of our people
in Europe
308
of our people
in the rest of
the world
•Continued target, and history of, doubling our
revenue (in constant currency terms) every
5 to 6 years
•Targeting gross margin of 65% and operating
margin of 30%
•Growth company with targeted dividend pay-out
ratio of approximately 70% of net profit after tax

15
~US$6+ Billion and Growing Market Opportunity
HOSPITAL
HOMECARE
“NEW APPLICATIONS”
Applications outside of invasive ventilation
Invasive
Ventilation
Surgical
Humidification
Non-invasive
Ventilation
Hospital
Respiratory Support
Home
Respiratory Support
CPAP
Therapy

16
OUR ASPIRATION:
Sustainably
DOUBLING
our constant
currency revenue
every 5-6 years.
Our Aspiration

17
Markets & Products
•Hospital
−Heated humidification
−Respiratory care
−Neonatal care
−Surgery
•Homecare
−Masks
−Flow generators
−Data management tools
−Respiratory care in the home
Recurring items, consumables and
accessories approximately 86% of
operating revenue (1HFY18: 87%)
REVENUE BY PRODUCT GROUP
12 MONTHS TO 30 SEPTEMBER 2019
1%
Hospital
Homecare
Distributed & Other
41 %

18
Impact of Changing Demographics
0
10
20
30
40
50
60
70
80
90
100
19701990201020302050
US POPULATION OVER AGE 65
(MILLIONS)
•Population age and weight both
increasing
−US population 65 years+ to grow
~80% over next 20 years
1
−US males 60 -74 years,
average weight increased
0.4 kg/year since 1960
2
•60% of US healthcare cost is after age
65 years
3
•Developing markets increasing
healthcare spending
−China healthcare expenditure
projected to grow at 12% per year
between 2014-2018
4

19
Hospital Cost Breakdown
Source: Estimates of Medical Device Spending in the United States, Donahoe, G and King, G, June 2014
O th e r –includes labour,
utilities, drugs, supplies,
food, depreciation.
Medical devices
94%
6%

20
Source: AnandA Dalal, Laura Christensen, Fang Liu,and Aylin A Riedel. Direct costs of chronic obstructive pulmonary disease among managed care patients.
IntJ ChronObstruct PulmonDis. 2010; 5: 241-249.
MEAN ANNUAL COPD-RELATED MEDICAL, PHARMACY
AND TOTAL COSTS BY CARE INTENSITY COHORT
$0
$10,000
$20,000
$30,000
$40,000
$50,000
Outpatient cohortUrgent outpatient cohortED cohortStandard admission cohortICU cohort
Mean cost (2008 US$)
Lower Care Intensity = Lower Cost

21
Hospital

22
Respiratory Humidification
•Normal airway humidification
is bypassed or compromised
during ventilation or oxygen
therapy
•Mucociliarytransport system
operates less effectively
•Need to deliver gas at
physiologically normal levels
−37°C body core
temperature
−44mg/L 100% saturated

23
Optiflow-Displacing Conventional Oxygen Therapy
CONVENTIONAL
O X YG E N T HE R A P Y
NON-INVASIVE
VENTILATION

24
Clinical Outcomes of OptiflowNasal High Flow Therapy
A D ULTS:
•REDUCED intubation
5
•REDUCED re-intubation
6, 7, 8
•REDUCED bilevelventilation
7
•REDUCED nursing workload
7
•INCREASED ventilator free days
5
•IMPROVED comfort & patient
tolerance
6
•IMPROVED compliance
6
•REDUCED COPD exacerbations
9
PAEDIATRICS:
•REDUCED intubation
10
•REDUCED length of stay
11
•REDUCED respiratory distress
12
NEONATES:
•NON-INFERIORITY with nasal
CPAP
13
•REDUCED nasal trauma
14, 15
•REDUCED respiratory distress
16
Optiflow NHF therapy is associated with:

25
OptiflowNHF -A Growing Body of Clinical Evidence
NASAL HIGH FLOW CLINICAL PAPERS PUBLISHED ANNUALLY
Source: PubMed
0
25
50
75
100
125
150
175
200
225
AdultNeonatal & Paediatric

26
Consistently Strong Growth in Hospital New Applications
•New applications consumables now make up 59% of Hospital
consumables revenue, up from 50% in FY2016 and 54% in FY2017
CONSTANT CURRENCY REVENUE GROWTH RATE
IN NEW APPLICATIONS CONSUMABLES*
0%
5%
10%
15%
20%
25%
30%
35%
20112012201320142015201620172018
New applications consumables: Non-invasive ventilation, Optiflow, AIRVO, Surgical
* Adjusted to exclude impact of US distribution transition in FY16 and FY17

27
Homecare

28
Obstructive Sleep Apnea
•Temporary closure of airway during sleep
•Can greatly impair quality of sleep, leading to
fatigue; also associated with hypertension,
stroke and heart attack
•Estimated US$3+ billion worldwide market.
•Estimate >50 million people affected in
developed countries
•Most common treatment is CPAP
(Continuous Positive Airway Pressure)
−Key issue with CPAP is compliance
−Humidification provides significant
acceptance and compliance improvements

29
Revolutionary Masks
F&P SIMPLUS
™
F&P ESON2
™
F&P BREVIDA
™
•Market leading mask technology
•Unique, patented designs
•Mask Matters Most
−Masks are key to compliance

30
Home Respiratory Support
•Chronic obstructive pulmonary disease (COPD) is a
lung disease which is commonly associated with
smoking
•Emphysema and chronic bronchitis are both forms of
COPD
•Chronic respiratory disease, primarily COPD, is the
third leading cause of death in the US
17
•6% of US adults have been diagnosed with COPD
18
(~15 million people)
•4-10% COPD prevalence worldwide
19
(~400 million
people)

31
High Level of Innovation and Investment in R&D
•R&D represents 9% of operating
revenue:
*
NZ$45.7M
•Product pipeline includes:
−Humidifier controllers
−Masks
−Respiratory consumables
−Flow generators
−Compliance monitoring
solutions
•186 US patents, 385 US pending,
870 ROW, 912 ROW pending
†
*For 6 months ended 30 September 2018
†As at 31 March 2018

32
Growing Patent Portfolio
Average remaining life of FPH patent portfolio (all countries): 12 years*
FISHER & PAYKEL HEALTHCARE US PATENT PORTFOLIO (2008 –2018)
*As at 31 March 2018
0
50
100
150
200
250
300
350
400
450
200820102012201420162018
US PatentsUS Patent Applications

33
Manufacturing & Operations
•Vertically integrated
−COGS improvements: Mexico, lean
manufacturing, supply chain
•Ample capacity to grow
Auckland, New Zealand
•Three buildings:
82,000 m
2
/ 885,000 ft
2
total
•100 acres / 40 hectares land
•Fourth building underway
Tijuana, Mexico
•18,000 m
2
/ 200,000 ft
2
•Consumables capacity ramping up
•Construction of second building to be
completed in FY19

34
Strong Global Presence
•Direct/offices
−Hospitals, home care dealers
−Sales/support offices in North
America, Europe, Asia, South
America, Middle East and
Australasia, 15 distribution centres
−More than 950 staff in 29 countries
−Ongoing international expansion
•Distributors
−100+ distributors worldwide
•Original Equipment Manufacturers
−Supply most leading ventilator
manufacturers
•Sell in more than 120 countries in total
REVENUE BY REGION
6 MONTHS TO 30 SEPTEMBER 2018
28%
21%
4%
47%
North America
Europe
Asia Pacific
Other

35
Ownership Structure and Listings
•Listed on NZX and ASX (NZX.FPH, ASX.FPH)
14%
59%
25%
2%
NZ InstitutionsOther Institutions
Brokers & RetailOther
37%
27%
23%
5%
4%
4%
New ZealandAustraliaNorth America
UKEurope (ex UK)Asia
GEOGRAPHICAL OWNERSHIP AS AT
30 SEPTEMBER 2018
SHAREHOLDING STRUCTURE AS AT
30 SEPTEMBER 2018

36
Consistent Growth Strategy

37
Important Notice and References
Disclaimer
The information in this presentation is for general purposes only and should be read in conjunction with Fisher & Paykel
Healthcare Corporation Limited’s (FPH) 2019 Interim Report and accompanying market releases.Nothing in this presentation
should be construed as an invitation for subscription, purchase or recommendation of securities in FPH.
This presentation includes forward-looking statements about the financial condition, operations and performance of FPH and
its subsidiaries.These statements are based on current expectations and assumptions regarding FPH’s business and
performance, the economy and other circumstances.As with any projection or forecast, the forward-looking statements in
this presentation are inherently uncertain and susceptible to changes in circumstances.FPH’s actual results may differ
materially from those expressed or implied by those forward-looking statements.
References
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2.Cynthia L Ogden, Cheryl D Fryar et al. Mean Body Weight, Height, and Body Mass Index (BMI) 1960-2002. US Centers for Disease Control and Prevention, 2004.
3.BerhanuAlemayehu, Kenneth E Warner. The Lifetime Distribution of Health Care Costs. Health ServRes. 2004 June; 39(3): 627–642
4.Sheryl Jacobson, Yvonne Wu. 2015 Health Care Outlook: China. Deloitte 2015.
5.Frat JP, ThilleAW, MercatA et al. High-flow oxygen through nasal cannula in acute hypoxemic respiratory failure. N EnglJ Med. 2015;372(23):2185-96
6.Maggiore SM, IdoneFA, VaschettoR et al. Nasal high-flow versus Venturimask oxygen therapy after extubation. Effects on oxygenation, comfort, and clinical outcome. Am J RespirCritCare Med. 2014;190(3):282-8
7.StéphanF, BarrucandB, Petit P et al. High-Flow Nasal Oxygen vs Noninvasive Positive Airway Pressure in Hypoxemic Patients After Cardiothoracic Surgery: A Randomized Clinical Trial. JAMA. 2015;313(23):2331-9
8.Hernández G, Vaquero C, González P, et al. Effect of PostextubationHigh-Flow Nasal Cannula vs Conventional Oxygen Therapy on Reintubation in Low-Risk Patients: A Randomized Clinical Trial. JAMA.2016;315(13):1354-1361. doi:10.1001/jama.2016.2711
9.Storgaard LH, Hockey HU, Laursen BS, Weinreich UM. Long-term effects of oxygen-enriched high-flow nasal cannula treatment in COPD patients with chronic hypoxemic respiratory failure. Int J ChronObstructPulmonDis 2018;16;13:1195-1205
10.Wing R, James C, Maranda LS et al. Use of high-flow nasal cannula support in the emergency department reduces the need for intubation in pediatric acute respiratory insufficiency. PediatrEmergCare. 2012;28(11):1117-23
11.McKiernan C, Chua LC, VisintainerPF et al. High flow nasal cannulaetherapy in infants with bronchiolitis. J Pediatr. 2010;156(4):634-8
12.MilésiC, BaleineJ, MateckiS et al. Is treatment with a high flow nasal cannula effective in acute viral bronchiolitis? A physiologic study. Intensive Care Med. 2013 Jun;39(6):1088-94
13.Manley BJ, Owen LS, Doyle LW et al. High-flow nasal cannulaein very preterm infants after extubation. N EnglJ Med. 2013;369(15):1425-33
14.Yoder BA, Stoddard RA, Li M, King J et a. Heated, humidified high-flow nasal cannula versus nasal CPAP for respiratory support in neonates. Pediatrics. 2013;131(5):e1482-90
15.Collins CL, HolbertonJR, Barfield C, Davis PG. A randomized controlled trial to compare heated humidified high-flow nasal cannulaewith nasal continuous positive airway pressure postextubationin premature infants. J Pediatr. 2013;162(5):949-54
16.SaslowJG, AghaiZH, NakhlaTA et al. Work of breathing using high-flow nasal cannula in preterm infants. J Perinatol. 2006;26(8):476-80
17.HoyertDL, Xu JQ. Deaths: preliminary data for 2011. Natl Vital Stat Rep. 2012;61(6):1-65. Hyattsville, MD: National Center for HealthStatistics. 2012.
18.Nicole M Kosacz, Antonello Punturieriet al. Chronic Obstructive Pulmonary Disease Among Adults -United States 2011. US Centers for Disease Control and Prevention, 2012.
19.R J Halbert, Sharon Isonaka, Dorothy George, AhmarIqbal. Interpreting COPD Prevalence Estimates. Chest. 2003; 123:5 1684 – 1692.