Fisher & Paykel Healthcare provides FY21 trading update

News Release
STOCK EXCHANGE LISTINGS: NEW ZEALAND (FPH), AUSTRALIA (FPH)

Fisher & Paykel Healthcare provides FY21 trading update

Auckland, New Zealand, 18 August 2020 - Fisher & Paykel Healthcare Corporation Limited
today provided an update on its trading activities for the first four months of the 2021 financial
year.

FY21 Trading Update

For the first four months of the financial year, to the end of July 2020, strong demand for the
company’s Hospital respiratory care products continues to approximately track the spread of
COVID-19 around the world, and reflects a changing trend in clinical practice to lead with nasal
high flow therapy for treatment of COVID-19 patients in hospital.

“Hospital hardware sales have continued to steadily increase over the first four months of FY21
with +390% constant currency revenue growth to the end of July compared to the prior
comparable period. Our manufactured output of the related consumables has steadily increased
over the four months, allowing us to begin some rebuilding of inventory levels after a peak in
shipments in April,” said Managing Director and CEO Lewis Gradon.

“Including a very strong finish to the first quarter, for the first four months of FY21 Hospital
consumables revenue has grown 48%, and overall Hospital product group revenue has grown
91%, compared to the prior comparable period and in constant currency terms.

“Global sales of both invasive ventilation and Optiflow consumables in July have returned to
similar levels to the peak we saw in April. This would reflect usage of the greater installed base
of Hospital hardware coupled with a change of clinical practice to favour nasal high flow therapy
for COVID-19 patients. Some rebuilding of stock levels by our customers may also be
contributing.

“Revenue by geography tends to follow the incidence of COVID-19, with more than half of our
Airvo hardware sales outside North America and Europe this financial year.

“Our Homecare product group is also impacted by COVID-19. We continue to see lower
diagnosis rates of obstructive sleep apnea (OSA) globally, coupled with mildly elevated rates of
mask resupply, below the peak we experienced at the end of FY20. Constant currency revenue
growth in OSA masks for the first four months of FY21 was 4% compared to the prior
comparable period. Growth in home respiratory support is more than offsetting a decline in OSA
flow generators, resulting in Homecare revenue growth of 5% to the end of July, in constant
currency terms, compared to the prior comparable period.

Guide

“Due to significant uncertainty in the extent and duration of the impact of COVID-19 on global
demand for our products, we have made some assumptions to allow us to provide a guide to
the potential impact on our financial results for FY21. We provided an initial set of assumptions
in our announcement on 29 June 2020 for the full financial year and have now updated the set
of assumptions used as COVID-19 has progressed around the world.

“The updated guide now assumes that global hospitalisations requiring respiratory support
steadily return to normal by the end of this calendar year. It also assumes that countries around
the world continue to build respiratory care infrastructure, including inventory of established ICU
ventilators requiring our humidifiers, and that the trend toward nasal high flow as a preferred
frontline therapy continues for both COVID and non-COVID patients.

“We have maintained our assumption that OSA diagnosis rates are reduced for the year. We
also assume some costs related to COVID-19, particularly freight, remain elevated for the year,
resulting in a reduction in gross margin of up to 200 basis points in constant currency for the
year.

“On this basis and at current exchange rates, full year operating revenue for the 2021 financial
year would be approximately $1.61 billion and net profit after tax would be approximately $365
million to $385 million.

“We cannot predict the course of COVID-19 around the world, the effectiveness or adoption of
preventative measures, the impact on future hospitalisation rates, the adoption of evolving
clinical practice guidelines, or the investments countries may make in treatment measures and
the impact on our business. Consequently, we have provided a trading update, and an
assumptions-based guide to the potential impact of those assumptions on our results for the full
financial year,” concluded Mr Gradon.

About Fisher & Paykel Healthcare
Fisher & Paykel Healthcare is a leading designer, manufacturer and marketer of products and
systems for use in chronic and acute respiratory 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:
Karen Knott
Senior Communications Manager
karen.knott@fphcare.co.nz
+64 21 713 911
Hayden Brown
Investor Relations Manager
hayden.brown@fphcare.co.nz
+64 27 807 8073


Authorised by Fisher & Paykel Healthcare Corporation Limited’s Board of Directors.