FPH announces result for the first half of FY22
News Release
STOCK EXCHANGE LISTINGS: NEW ZEALAND (FPH), AUSTRALIA (FPH)
Fisher & Paykel Healthcare announces result for the first half of the 2022 financial year
Auckland, New Zealand, 25 November 2021 – Fisher & Paykel Healthcare Corporation Limited
today announced its results for the first half of the 2022 financial year.
For the six months ended 30 September 2021, total operating revenue was $900 million. This was a
1% decline from the same period in the previous financial year, or a 2% increase in constant
currency. Net profit after tax for the first half was $222 million, a 2% decline from the prior
comparable period, or a 1% decline in constant currency.
Managing Director and CEO Lewis Gradon said, “For nearly two years now, our customers have
been working selflessly to care for patients during a pandemic. Our people and our suppliers have
also been working under demanding circumstances, and we are grateful for their relentless
commitment.
“As you may recall, the first half of the last financial year was a period of extraordinary demand
during the initial surges of COVID-19. Our financial results in the first half of the 2022 financial year
have continued to be very strong,” Mr Gradon continued.
In the Hospital product group, which includes humidification products used in respiratory, acute and
surgical care, revenue for the first half was $670 million, a decline of 2% from the first half of the
2021 financial year, or an increase of 1% in constant currency. Hospital consumables grew 8% in
constant currency, and of total Hospital product group revenue, 67% was from the sale of
consumables and 33% was from the sale of hardware.
In the Homecare product group, which includes products used in the treatment of obstructive sleep
apnea (OSA) and respiratory support in the home, revenue was $227 million, a 0.3% increase over
the prior comparable period, or 3% in constant currency.
Gross margin was 63.1%, up 135 basis points or 53 basis points in constant currency compared to
the first half of the 2021 financial year. Elevated freight costs and air freight utilisation continued but
were lower than the same period last year, impacting gross margin by approximately 190 basis points
compared to pre-COVID-19 levels.
The company’s directors have approved an interim dividend of 17 cents per ordinary share. The
interim dividend, carrying full New Zealand imputation credit, will be paid on 15 December 2021 with
a record date of 3 December 2021.
The company also announced that over the next five years it expects to invest approximately
$700 million in land and buildings. This includes a fifth building completing its Auckland campus
and acquiring land for a second New Zealand campus. Over the next five years the company
expects to add an additional three manufacturing facilities located outside New Zealand, the first of
which is currently under construction in Tijuana, Mexico.
“The longer-term impact from COVID-19 for our business has been a larger installed base of our
hospital hardware and increased global physician awareness and experience with our therapies
and products. To ensure we are well-positioned to meet demand for the ongoing use of this
installed base of hardware and accommodate our strong new product pipeline, we are continuing
to invest in our infrastructure to ensure it supports our long-term growth,” said Mr Gradon.
Given the continuing uncertainties associated with COVID-19, including the impact on
hospitalisations and public and civic responses to COVID-19 case numbers, the company is not
providing quantitative revenue or earnings guidance for the remainder of the 2022 financial year.
“We have not changed our view on outlook for the remainder of the financial year since we last
provided an update on the 18
th
of August,” said Mr Gradon.
“For the second half, we expect our Hospital hardware sales will continue to be impacted by COVID-
19-related hospital admissions. However, as we said in our August trading update, many countries
have already boosted their hospital treatment capacity, so we do not expect Hospital hardware
revenue to continue at an elevated level for the rest of the year.
“In our Hospital product group, consumables volume is likely to be impacted by a number of different
factors. Those include the ongoing COVID-19 hospitalisations around the world, the severity of the
flu season during the Northern Hemisphere winter, and the ability of hospitals to return to their pre-
COVID-19 rates for surgeries.
“Our second half last year corresponded to peak COVID-19 hospitalisations in North America and
most European countries. In the absence of further comparable hospitalisation surges around the
world, we would expect our consumables revenue for the second half of this financial year to be
lower than the second half last year. Continuing endemic COVID-19 hospitalisations, surgical
activity approaching normality and the ongoing adoption of nasal high flow for applications other
than COVID-19 would result in our consumables revenue increasing sequentially from the first half
of this year.
“In our Homecare product group, growth in OSA masks is dependent on new patient diagnosis
rates, which may continue to be impacted by COVID-19 and the supply of treatment hardware. We
continue to expect new patient diagnoses to be at or above FY21 rates for the second half of the
2022 financial year.
“Ongoing localised surges in COVID-19 cases and civic responses indicate that it may yet be a long
journey to get to a point where business and life are more predictable. Whatever the future holds,
we are unified in our belief that doing what is best for patients will deliver the best outcomes for the
business,” concluded Mr Gradon.
Overview of key results for the first half of the 2022 financial year
• 2% decline in net profit after tax to $221.8 million.
• 1% decline in operating revenue to $900.0 million, or 2% growth in constant currency.
• 2% decline in Hospital operating revenue to $670.2 million, or 1% growth in constant currency.
• 24% constant currency revenue growth for new applications consumables; i.e. products used in
noninvasive ventilation, Optiflow nasal high flow therapy and surgical applications, accounting for
72% of Hospital consumables revenue.
• 0.3% growth in Homecare operating revenue, or 3% growth in constant currency.
• Investment in R&D was 8% of revenue, or $75.7 million.
• 6% increase in interim dividend to 17 cps (H1 FY21: 16 cps).
About Fisher & Paykel Healthcare
Fisher & Paykel Healthcare is a leading designer, manufacturer and marketer of products and
systems for use in acute and chronic 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
General Manager - Corporate Communications
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.
Accompanying Documents
Attached to this news release are the following additional documents:
• Results in Brief
• Interim Report 2022
• Investor Presentation
• NZX Results Announcement
• NZX Distribution Notice
Constant Currency Information
Constant currency information included within this news release is non-GAAP 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 13 of the company’s
Interim Report 2022, and the company’s constant currency framework can be found on the
company’s website at www.fphcare.com/ccf.
Half Year Results Conference Call
Fisher & Paykel Healthcare will host a conference call today to discuss the results for the first half of
the 2022 financial year. The conference call is scheduled to begin at 10:00am NZDT, 8:00am AEDT
Thursday, 25 November (4:00pm USEST, Wednesday 24 November) and will be webcast.
To listen to the webcast, access the company’s website at www.fphcare.com/investor. 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 should dial in to one of the numbers below at least
five minutes prior to the scheduled call time and identify yourself to the operator. When prompted,
please quote the conference code of: 245311.
New Zealand +64 9 913 3624 US/Canada +1 323 794 2095
Australia +61 2 7250 5438 Hong Kong +852 3008 1533
United Kingdom +44 330 336 9104 International +64 9 913 3624
---
Results in Brief
Six Months Ended Six Months Ended
% Change
(Reported)
30 Sep 20 30 Sep 21 % Change
(Constant
Currency
1
)
NZ$M NZ$M
(except as otherwise
stated)
(except as otherwise
stated)
FINANCIAL PERFORMANCE
Total operating revenue 910.2 900.0 -1% +2%
Cost of sales (348.3) (332.3) -5% +0.5%
Gross profit 561.9 567.7 +1% +3%
Gross margin 61.7% 63.1% +135bps +53bps
Selling, general and administrative expenses (188.1) (189.6) +1% +5%
Research and development expenses (64.6) (75.7) +17% +17%
R&D percentage of operating revenue 7.1% 8.4% +131bps +114bps
Total operating expenses (252.7) (265.3) +5% +8%
Operating profit before financing costs 309.2 302.4 -2% -2%
Operating margin 34.0% 33.6% -37bps -121bps
Net financing income (expense) 3.8 (1.3) -135% -15%
Profit before tax 313.0 301.1 -4% -2%
Tax expense (87.5) (79.3) -9%
-4%
Profit after tax 225.5 221.8 -2%
-1%
Effective tax rate 28.0% 26.3%
Effective tax rate excluding R&D tax credit 30.0% 28.8%
Revenue by Region:
North America 373.9 329.8 -12%
Europe 269.9 232.0 -14%
Asia Pacific 184.4 267.2 +45%
Other 82.0 71.0 -13%
Total 910.2 900.0 -1%
Revenue by Product Group:
Hospital 681.0 670.2 -2%
Homecare 226.2 226.9 +0.3%
Core products sub-total 907.2 897.1 -1%
Distributed and other 3.0 2.9 -2%
Total 910.2 900.0 -1%
FINANCIAL POSITION
As at 31 Mar 21
NZ$M
(except as otherwise
stated)
As at 30 Sep 21
NZ$M
(except as otherwise
stated)
Tangible assets 1,913.7 1,856.9 -3%
Intangible assets
2
161.3 188.5 +17%
Total assets 2,075.0 2,045.4 -1%
Total liabilities (554.1) (454.6) -18%
Shareholders’ equity 1,520.9 1,590.8 +5%
Gearing (27.2%) (16.6%) 10.6%
Net tangible asset backing (cents per share) 236 243 +3%
1
Constant currency (CC) removes the impact of exchange rate movements. This approach is used to assess the Group’s underlying
comparative financial performance without any impact from changes in foreign exchange rates. The company’s constant currency
framework can be found on the company’s website at www.fphcare.com/ccf. The reconciliation to reported results is included within
the Financial Commentary section of the Interim Report.
2
Includes Intangible and deferred tax assets.
Results in Brief
(continued)
Six Months
Ended
Six Months
Ended
% Change
30 Sep 20 30 Sep 21
NZ$M NZ$M
(except as
otherwise stated)
(except as
otherwise stated)
CASH FLOWS
Net cash flow from operating activities 218.1 127.5 -42%
Net cash flow (used in) investing activities (81.9) 13.8 -117%
Net cash flow (used in) financing activities (92.9) (131.9) +42%
SHARES OUTSTANDING
Weighted average basic shares outstanding 574,981,039 576,615,929
Weighted average diluted shares outstanding 579,449,729 579,772,363
Basic shares outstanding at period end 576,123,608 577,131,310
DIVIDENDS AND EARNINGS PER SHARE
Dividends per share (cents) – declared 16.0 17.0 +6%
Basic earnings per share (cents) 39.2 38.5 -2%
---
Interim Report 2022
Forward, together.
For nearly two years now, our customers
have been working selflessly to care for
patients during a pandemic, and our
people have been committed to delivering
for those customers.
It may yet be a long journey to get
to a point where business and life are
more predictable. Whatever the future
holds, we are focussed on moving
forward, together.
Contents
HALF YEAR FINANCIAL HIGHLIGHTS2
HALF YEAR BUSINESS UPDATES3
PRODUCT GROUP OVERVIEW4
HALF YEAR REVIEW6
FINANCIAL COMMENTARY10
FINANCIAL STATEMENTS14
NOTES TO THE FINANCIAL STATEMENTS18
DIRECTORY24
Constant currency information contained within this report
is non-conforming financial information, as defined by the
NZ FMA and has been provided to assist users of financial
information to better understand and assess the company’s
financial performance without the impacts of spot financial
currency fluctuations and hedging results, and has been
prepared on a consistent basis each financial year. A
reconciliation between reported results and constant currency
results is available on page 13 of this report. The company’s
constant currency framework can be found on our website
at www.fphcare.com/ccf.
This report is dated 24 November 2021 and is signed on behalf of
Fisher & Paykel Healthcare Corporation Limited by Scott St John,
Board Chair and Lewis Gradon, Managing Director and
Chief Executive Officer.
LEWIS GRADON, MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
SCOTT ST JOHN, BOARD CHAIR
Whilst globally the fight against Covid-19 continues,
we continue to move forward, together. To both meet
the challenges of the pandemic and remain focussed
on Care by Design. For our products, in working with
healthcare professionals and delivering patient care and
better recovery outcomes.
INTERIM REPORT 2022
2Fisher & Paykel Healthcare
HALF YEAR
financial highlights
OPERATING REVENUE
$900.0m
▼
1% | 1H FY21 $910.2M
GROSS MARGIN
63.1%
HOSPITAL REVENUE
$670.2m
▼
2% | 1H FY21 $681.0M
NET PROFIT AFTER TAX
$221.8m
▼
2% | 1H FY21 $225.5M
INTERIM DIVIDEND
FULLY IMPUTED
17cps
▲
6% | 1H FY21 16CPS
SPEND ON R&D
$75.7m
8% OF OPERATING REVENUE
HOSPITAL NEW APPLICATIONS CONSUMABLES
REVENUE GROWTH
24%
( CONSTANT CURRENCY)
INTERIM REPORT 2022
3Fisher & Paykel Healthcare
HALF YEAR
business updates
REVENUE BY REGION
6 MONTHS TO 30 SEPTEMBER 2021
Hospital
Homecare
Distributed & Other
North America
Europe
Asia Pacific
Other
CONTRIBUTED to the
fight against COVID-19
by providing convenient
access to vaccinations
for our employees.
LAUNCHED F&P Visairo™
mask for noninvasive
ventilation and F&P Evora™
Full mask for obstructive
sleep apnea.
APPOINTED Dr Lisa
McIntyre to the Board
of directors.
36%
26%
30%
8%
120+
COUNTRIES
74%
25%
<1%
REVENUE BY PRODUCT GROUP
6 MONTHS TO 30 SEPTEMBER 2021
COMMENCED construction
on our third manufacturing
facility in Mexico and started
earthworks on our fifth
facility in New Zealand.
INITIATED search for
property to build a second
R&D and manufacturing
campus in New Zealand.
CONTINUED to expand
our global reach by placing
sales representatives into
additional countries.
INTERIM REPORT 2022
4Fisher & Paykel Healthcare
Product group overview
Our business is structured in two parts: Hospital and Homecare.
Hospital
74%
OF OPERATING REVENUE
Our Hospital product group
includes products used in
invasive ventilation, noninvasive
ventilation, nasal high flow
therapy, and laparoscopic and
open surgery. Not only do these
products help healthcare providers
improve patient outcomes, they
often deliver economic benefits
as well, by reducing the need to
escalate care and shortening
patient stays in hospital.
CONSTANT CURRENCY REVENUE FROM
NEW APPLICATIONS CONSUMABLES
24%
OPERATING REVENUE
1H FY22 2%
$670.2M
INTERIM REPORT 2022
5Fisher & Paykel Healthcare
25%
OF OPERATING REVENUE
CONSTANT CURRENCY
REVENUE
3%
OPERATING REVENUE
1H FY22 0.3%
$226.9M
The Homecare product group
includes devices and systems used
to treat obstructive sleep apnea
(OSA) and provide respiratory
support in the home. These include
our CPAP therapy masks as well as
flow generators, interfaces, and
data management technologies.
Homecare
INTERIM REPORT 2022
6Fisher & Paykel Healthcare
Half year review
SCOTT ST JOHN
Board Chair
LEWIS GRADON
Managing Director and
Chief Executive Officer
As we write this, the world has
surpassed 250 million recorded
cases of COVID-19. Some countries
appear to have flattened the curve,
and others are responding to third
and fourth waves.
Healthcare providers have been caring
for COVID-19 patients, along with patients
with other illnesses, for nearly two years
now. A simple ‘thank you’ cannot begin
to express the gratitude they deserve.
Working under incredibly demanding
circumstances, they have shown remarkable
compassion and commitment.
The people of Fisher & Paykel Healthcare and
our suppliers have also been working under
demanding circumstances – maintaining
higher production levels, advancing new
projects, and supporting customers while
dealing with the daily impacts of COVID-19
in their communities and homes. Thanks to
their effort, we have achieved another
extraordinary result.
Financial result
The first half of the previous financial year
was a period of extraordinary demand during
the initial surges of COVID-19. Our results for
the first half of the 2022 financial year have
continued to be very strong.
Elevated demand for most of our hospital
products has followed the global surges of
COVID-19, and this is reflected in our revenue
for the first half. For the six months ended
30 September 2021, total operating revenue
was $900.0 million. This was 1 per cent below
the same period of the previous financial year,
or a 2 per cent increase in constant currency.
Net profit after tax was $221.8 million, a 2 per
cent decline from the same period in the
previous financial year, or a 1 per cent
decline in constant currency.
Once again, our result was largely driven
by our Hospital product group, which
comprised 74 per cent of revenue. Within
the Hospital product group, revenue for
the first half was $670.2 million, a decline
of 2 per cent compared to the first half
of the 2021 financial year, or an increase
of 1 per cent in constant currency.
When we announced our year-end results
in May, we expected that Hospital hardware
sales would continue to be impacted by
COVID-19-related hospital admissions.
This proved to be the case in the last two
months of the half-year, as North America
in particular experienced a COVID-19
hospitalisation surge. Hospital hardware
INTERIM REPORT 2022
7Fisher & Paykel Healthcare
sales declined 10 per cent in constant
currency for the half, and we do not expect
our Hospital hardware sales to remain at this
elevated level for the remainder of the year.
Sales of Hospital consumables grew in the
first half, up 8 per cent over the prior
comparable period in constant currency.
Sales of new applications consumables grew
24 per cent in constant currency in the first
half, reflecting the change in clinical practice
towards nasal high flow therapy.
In our Homecare product group, revenue
was $226.9 million, a 3 per cent increase
over the first half of the previous financial
year in constant currency. Continuing
COVID-19 restrictions, along with a limited
supply of continuous positive airway pressure
(CPAP) devices worldwide, may have
impacted the number of new patients
diagnosed with obstructive sleep apnea
(OSA). Our Vitera™ and Evora masks are
performing well, and we were pleased to
see 3 per cent growth in constant currency
in OSA masks and accessories compared
with the first half of the 2021 financial year.
Strategic progress
While there are still some challenges
accessing our customers in hospitals to
test and trial our new products, we are
continuing to make progress with product
launches. In August, we released the Visairo
mask for noninvasive ventilation in the United
States, and in October, we launched the
Evora Full mask for OSA in New Zealand and
Australia. Our commitment to researching
and developing new products is unwavering,
and our investment in R&D for the first six
months of the financial year was $75.7 million.
In the first half, we also made good progress
on new buildings to support our growth. We
have always carried additional manufacturing
and distribution capacity so that we can scale
up quickly in response to a crisis. Maintaining
that ability requires space and buildings, and
over the next five years, we expect to invest
approximately $700 million for this purpose.
This includes constructing a fifth building in
Auckland, completing our Auckland campus,
and acquiring land for a second New Zealand
campus where we can co-locate R&D and
manufacturing. Our long-term plan is to add
an additional three manufacturing facilities
located outside New Zealand, the first of
which is currently under construction in
Tijuana, Mexico.
It may be a long
journey to get to the
point where business
and life are more
predictable.
INTERIM REPORT 2022
8Fisher & Paykel Healthcare
Board update
Our search for a Board member to replace
Tony Carter was a lengthy one, made more
difficult by COVID-19 travel restrictions.
In October, we were delighted to appoint
Dr Lisa McIntyre to the Board. Lisa has
extensive knowledge in health and
technology, with experience in strategy,
finance, technology transformation and
data analytics. She has already provided
valuable insights, and we believe we will
benefit from her deep understanding of
international markets.
Dividend
The Board of Directors has approved an
interim dividend of 17 cents per share for
the six months to 30 September 2021, which
is an increase of 6 per cent from the first half
of the 2021 financial year. The dividend will be
paid on 15 December 2021 with a record date
of 3 December.
Profit share
Our people continue to manage demand
surges for our products due to COVID-19,
as well as ongoing supply chain challenges
obtaining raw materials and delivering
finished goods to our customers. All of
our facilities around the world continue
to change and evolve their work practices
in response to local conditions – to keep our
people safe and our product supply stable
for the patients who rely on us. We want to
recognise everyone for uniting together to
mitigate the global impact of the pandemic,
as well as the efforts of our global team
toward our goal of getting 100 per cent
of our people vaccinated. The Board has
therefore decided to double the interim
discretionary profit-sharing bonus for
everyone who has worked with us for
a qualifying period. The profit-sharing
bonus totals $12 million.
Moving forward together
Ongoing localised surges in COVID-19 cases
and civic responses indicate that it may
yet be a long journey to get to a point
where business and life are more predictable.
Whatever the future holds, we are focussed
on moving forward together. Our purpose
unites us – improving care and outcomes
through inspired and world-leading
healthcare solutions – and we are unified
in our belief that doing what is best for
patients will deliver the best outcomes
for the business.
Thank you
On behalf of the Board, we would like to
express our appreciation to our customers
for their perseverance. We would also like
to thank the people of Fisher & Paykel
Healthcare for their relentless commitment,
and our suppliers for going the extra mile.
As always, we thank you, our shareholders,
for your ongoing support.
SCOTT ST JOHN
BOARD CHAIR
LEWIS GRADON
MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
INTERIM REPORT 2022
9Fisher & Paykel Healthcare
Financial report
INTERIM REPORT 2022
10Fisher & Paykel Healthcare
Financial commentary
INCOME STATEMENTS
For the six months ended
30 September
2020
NZ$M
2021
NZ$M
Change
Reported
%
Change
CC
1
%
Operating revenue 910.2 900.0 -1+2
Gross profit 561.9 567.7 +1+3
Gross margin 61.7%63.1%135 bps 53 bps
SG&A expenses (188.1)(189.6)+1+5
R&D expenses (64.6) (75.7)+17+17
Total operating expenses (252.7)(265.3)+5+8
Operating profit 309.2 302.4 -2-2
Operating margin 34.0%33.6%-37 bps -121 bps
Net financing income
(expense)
3.8 (1.3)––
Profit before tax 313.0 301.1 -4-2
Tax expense (87.5) (79.3)-9-4
Profit after tax225.5221.8-2-1
1
Constant currency (CC) removes the impact of exchange rate movements. This approach is used to
assess the Group’s underlying comparative financial performance without any impact from changes
in foreign exchange rates. See further details on page 13.
Total profit after tax for the period was $221.8 million, a 2% decline from the prior
comparable period (1% decline in constant currency).
Revenue
Total operating revenue was $900.0 million. This was a 1% decline from the same period
last year or a 2% increase in constant currency. The first half of last financial year was a
period of extraordinary demand during the initial surges of COVID-19. The revenue in this
period has continued to be very strong. Hospital revenue grew 1% in constant currency.
Homecare revenue grew 3% in constant currency.
Gross margin
Gross margin increased by 53 basis points in constant currency due to a lower level
of elevated freight costs and air freight utilisation in this period compared to the
prior year. Excluding the additional freight costs, a 65% gross margin was achieved
in reported currency.
Operating expenses
Operating expenses increased 5% (8% in constant currency) to $265.3 million,
reflecting ongoing expenditure to support global sales growth and development
of our product pipeline.
R&D spend of $75.7 million grew 17% reflecting underlying growth and the timing of
R&D and clinical projects. Over the long term R&D spend is expected to grow in line
with constant currency revenue growth.
Financing expenses
The net financing expense increase reflects the gain on foreign exchange revaluations
in the prior period not repeating this period. Excluding the impact of foreign currency
movements, net financing expense was in line with the prior period.
Ta x
The effective tax rate for the period was 26.3%, down from 28.0% in the prior year.
The R&D tax credit reported this period of $7.4 million (Sep 2020: $6.4 million)
represents the estimated eligible R&D expenditure incurred during the period.
Excluding the R&D tax credit the effective tax rate was 28.8% (Sep 2020: 30.0%).
INTERIM REPORT 2022
11Fisher & Paykel Healthcare
FOREIGN CURRENCY IMPACTS
The Group is exposed to movements in foreign exchange rates, with approximately 99%
of operating revenue generated in currencies other than NZD as shown below.
US dollars 49%
Euros 17%
Australian dollars 4%
Japanese yen 6%
Canadian dollars 3%
Chinese yuan 3%
New Zealand dollars 1%
Other currencies 14%
British pounds 3%
Others
NZD
CNY
CAD
GBP
JPY
AU
D
EUR
USD
Approximately 60% of COGS and over 50% of operating expenses are in currencies other
than NZD.
During the period since 31 March 2021, the NZD weakened slightly against major
currencies. The effect of balance sheet translations for the period resulted in an increase
in operating revenue of $2.5 million (Sep 2020: $10.6 million decrease) and an increase in
profit after tax of $2.4 million (Sep 2020: $3.6 million decrease). The hedging programme
contributed a pre-tax gain of $21.1 million (Sep 2020: $1.4 million loss).
The average daily spot rate and the average conversion exchange rate (i.e. the accounting
rate, incorporating the benefit of forward exchange contracts in respect of the relevant
financial year) of the main foreign currency exposures for the reported periods are set out
in the table below.
Average daily spot and conversion rates for the period ended 30 September
Average daily spot rateAverage conversion exchange rate
Six months ended
30 September2020202120202021
USD0.64030.70770.65510.6769
EUR 0.56390.59380.5559 0.5594
Net profit after tax was reduced by $1.6 million compared to the prior period due
to the impact of foreign currency. Excluding the impact of favourable balance sheet
translations, unfavourable impacts reflect a stronger NZD and higher average exchange
rates compared to the prior comparable period, particularly against the USD (See further
details on page 13).
Foreign exchange hedging position
In line with our hedging programme, additional hedges have been added for future years,
in particular for financial years 2023 to 2024. The hedging position for our main currency
exposures as at 11 November 2021 is:
Year to 31 March20222023202420252026-27
USD % cover of estimated exposure95%70%50%30%–
USD average rate of cover0.6750.6650.6560.624–
EUR % cover of estimated exposure95%70%45%35%5%
EUR average rate of cover0.5540.5370.5260.5080.481
Hedging cover has been rounded to the nearest 5%.
INTERIM REPORT 2022
12Fisher & Paykel Healthcare
CASH FLOWS
The full statement of cash flows is provided on page 17.
For the six months ended 30 September
2020
NZ$M
2021
NZ$M
Change
NZ$M
Operating profit before financing costs309.2302.4(6.8)
Plus depreciation and amortisation 37.0 46.0 9.0
Change in working capital and other(45.5) (31.2) 14.3
Net interest paid (1.9) (1.7) 0.2
Net income tax paid(80.7)(188.0) (107.3)
Operating cash flows218.1 127.5 (90.6)
Lease repayments (5.3) (6.6) (1.3)
Purchase of land and buildings(13.5) (14.7) (1.2)
Purchase of plant and equipment(64.9) (50.1) 14.8
Purchase of intangible assets(16.1) (16.5) (0.4)
Free cash flows118.3 39.6 (78.7)
Dividends paid(89.1)(126.8) (37.7)
Operating cash flows
Cash flows from operations for the period decreased 42% to $127.5 million. Excluding
the tax payments, operating cash flows increased 6%. Working capital continued to
be impacted by increases in inventories relating to building raw materials and finished
goods to be able to meet potential surge demand.
Capital expenditure
Property plant and equipment and intangible asset purchases for the period were
$81.3 million, a decrease of $13.2 million from the prior year. Capital expenditure was
elevated in the prior period due to the acceleration of manufacturing equipment projects.
Dividends
Dividends paid of $126.8 million were 42% higher than the prior period representing the
increase in final dividend.
BALANCE SHEET
As at
31 March
2021
NZ$M
30 September
2021
NZ$M
Change
NZ$M
Trade receivables 191.7 201.7 10.0
Inventories 270.6 291.8 21.2
Less trade and other payables
+
(145.8) (126.4) 19.4
Working capital 316.5 367.1 50.6
Property, plant and equipment
++
882.1 917.4 35.3
Intangible assets 80.0 83.4 3.4
Other net assets (liabilities) (16.9) 49.0 65.9
Lease liabilities (43.7) (42.2) 1.5
Net cash 302.9 216.1 (86.8)
Net assets 1,520.9 1,590.8 69.9
+
Trade and other payables excludes all non-current payables and all employee entitlements
and provisions
++
Property, plant and equipment includes lease assets recognised
Trade receivables at 30 September 2021 reflected the continued strong sales and
collections. Debtor days were within the normal range at 41 days (March 2021: 43 days).
Inventories balances increased with the continued build in raw materials and finished
goods to enable the supply of products in the event of any surges in demand. Trade and
other payables reduction includes timing associated with key capital projects and due
dates for payment of suppliers.
The increase in property, plant and equipment included capital additions (including
leased assets) of $68.9 million, the majority of which related to production tooling
and equipment additions. These increases were offset by $32.4 million of depreciation.
During the period, the build of the third manufacturing facility in Mexico commenced,
and earthworks began in preparation for a fifth building in New Zealand.
Intangible assets increased by $3.4 million, including patent acquisition costs. Included in
intangible assets is ERP system capital spending with our global SAP rollout continuing
over the next two to three years.
Other net assets/liabilities movements included the reduction in tax payables of
$101.6 million offset by a decrease in net derivative financial instrument assets
of $43.1 million. All currency derivatives continued to be effective hedges.
INTERIM REPORT 2022
13Fisher & Paykel Healthcare
Net cash and debt facilities
As at
31 March
2021
NZ$M
30 September
2021
NZ$M
Change
NZ$M
Loans and borrowings
– Current–––
– Non-current (62.8) (63.5) (0.7)
Bank overdrafts (11.9) (8.8) 3.1
Total interest-bearing liabilities
+
(74.7) (72.3) 2.4
Cash and cash equivalents97.3103.2 5.9
Short-term investments 280.3185.2 (95.1)
Total cash and investments 377.6288.4 (89.2)
Net cash302.9216.1 (86.8)
Gearing-27.2%-16.6%10.6%
Undrawn debt facilities167.2185.0 17.8
+
Excluding lease liabilities
The average maturity of loans and borrowings of $63.5 million was 1.4 years and the
currency split was 92% USD; 5% Australian dollars; and 3% Canadian dollars (with no
NZD denominated debt).
On 30 September 2021, a NZ$30 million facility expired and was replaced with a
US$40 million revolving facility that commenced on 22 September 2021 and expires
on 31 October 2024.
Cash and short-term investments, mainly in NZD, were $288.4 million at 30 September
2021. This balance, and operating cash generated in the second half of FY2022, will fund
the payment of the interim dividend, provisional tax and ongoing capital expenditure
including manufacturing capacity expansion and building projects in Mexico and Auckland.
Gearing
1
At 30 September 2021 the group had gearing of -16.6%. Gearing was outside the target
range of -5% to +5%.
1
Net interest-bearing debt (debt less cash and cash equivalents and short-term investments) to net interest-bearing
debt and equity (less hedging reserves). Net interest-bearing debt excludes lease liabilities.
NOTES – CONSTANT CURRENCY
Constant currency analysis is non–Generally Accepted Accounting Practice (GAAP)
financial information, that is not prepared in accordance with New Zealand Equivalents
to International Financial Reporting Standards (NZ IFRS). Constant currency information
has been provided to assist users of financial information to better understand and assess
the Group’s financial performance without the impacts of foreign currency fluctuations,
including hedging results.
Constant currency financial information is prepared each month to enable the Board
and management to monitor and assess the Group’s underlying comparative financial
performance without any distortion from changes in foreign exchange rates. Constant
currency information is prepared on a consistent basis for reported periods restated into
NZD based on “constant” exchange rates, typically the budgeted exchange rates for the
current year. This information excludes the impact of movements in foreign exchange
rates, hedging results and balance sheet translations.
The Group’s constant currency framework can be found on the company’s website
at www.fphcare.com/ccf. PwC perform assurance procedures over the constant
currency information.
RECONCILIATION OF CONSTANT CURRENCY TO REPORTED PROFIT AFTER TAX
For the six months ended 30 September
2020
NZ$M
2021
NZ$M
Change
NZ$M
Profit after tax (constant currency) 200.9198.8(2.1)
Spot exchange rate effect 29.25.4 (23.8)
Foreign exchange hedging result (1.0)15.216.2
Balance sheet revaluation (3.6)2.4 6.0
Profit after tax (reported) 225.5221.8(3.7)
The significant exchange rates used in the constant currency analysis, being the budget
exchange rates for the year ended 31 March 2022, are USD 0.72, EUR 0.60, AUD 0.93,
GBP 0.52, CAD 0.92, JPY 78, MXN 15.2, CNY 4.7, KRW 820, SEK 6.1 and INR 53.
INTERIM REPORT 2022
14Fisher & Paykel Healthcare
CONSOLIDATED INCOME STATEMENT
For the six months ended 30 September 2021
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 September 2021
Notes
Unaudited
2020
NZ$M
Unaudited
2021
NZ$M
Operating revenue 3 910.2 900.0
Cost of sales (348.3) (332.3)
Gross profit 561.9 567.7
Selling, general and administrative expenses (188.1) (189.6)
Research and development expenses (64.6) (75.7)
Total operating expenses (252.7) (265.3)
Operating profit before financing costs 309.2 302.4
Financing income 0.9 1.2
Financing expense (2.4) (2.4)
Exchange gain/(loss) on foreign currency
interest-bearing liabilities
5.3 (0.1)
Net financing income (expense) 3.8 (1.3)
Profit before tax 4 313.0 301.1
Tax expense (87.5) (79.3)
Profit after tax 225.5 221.8
Basic earnings per share 39.2 cps 38.5 cps
Diluted earnings per share 38.9 cps 38.3 cps
The accompanying notes form an integral part of the financial statements.
Unaudited
2020
NZ$M
Unaudited
2021
NZ$M
Profit after tax 225.5 221.8
Other comprehensive income
Items that may be reclassified to profit or loss
Foreign currency translation reserve
Exchange differences on translation of foreign
operations
(4.4) 1.2
Hedging reserves
Changes in fair value in hedging reserves 143.8 (22.2)
Transfers to profit before tax from cash flow hedge
reserve
2.3 (21.0)
Tax on above reserve movements (40.9) 12.1
Other comprehensive income, net of tax 100.8 (29.9)
Total comprehensive income 326.3 191.9
Financial statements
INTERIM REPORT 2022
15Fisher & Paykel Healthcare
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 September 2021
Notes
Share
capital
NZ$M
Retained
earnings
NZ$M
Reserves
NZ$M
Total
equity
NZ$M
Balance at 31 March 2020 (audited) 225.4 686.3 62.1 973.8
Total comprehensive income– 225.5 100.8 326.3
Dividends paid9– (89.1)– (89.1)
Issue of share capital under employee share plans18.1––18.1
Movement in treasury shares 1.3 –– 1.3
Movement in share based payments reserve ––(7.3)(7.3)
Balance at 30 September 2020 (unaudited)244.8822.7155.61,223.1
Balance at 31 March 2021 (audited) 249.1 1,029.2 242.6 1,520.9
Total comprehensive income– 221.8 (29.9) 191.9
Dividends paid9– (126.8)– (126.8)
Issue of share capital under employee share plans6.4––6.4
Movement in share based payments reserve ––(1.6)(1.6)
Balance at 30 September 2021 (unaudited)255.51,124.2211.11,590.8
The accompanying notes form an integral part of the financial statements.
INTERIM REPORT 2022
16Fisher & Paykel Healthcare
CONSOLIDATED BALANCE SHEET
As at 30 September 2021
Notes
Audited
31 March
2021
NZ$M
Unaudited
30 September
2021
NZ$M
ASSETS
Current assets
Cash and cash equivalents 97.3 103.2
Short-term investments 280.3 185.2
Trade and other receivables 222.5 236.6
Inventories 270.6 291.8
Derivative financial instruments5 42.9 38.9
Tax receivable 6.4 12.0
Total current assets 920.0 867.7
Non-current assets
Derivative financial instruments5 104.0 70.0
Other receivables 7.6 1.8
Property, plant and equipment 882.1 917.3
Intangible assets 80.0 83.5
Deferred tax assets 81.3 105.1
Total assets 2,075.0 2,045.4
LIABILITIES
Current liabilities
Interest-bearing liabilities 11.9 8.8
Lease liabilities 14.7 14.7
Trade and other payables 233.3 224.6
Provisions 15.6 13.8
Tax payable 149.6 48.0
Derivative financial instruments5 2.4 4.4
Total current liabilities 427.5 314.3
Notes
Audited
31 March
2021
NZ$M
Unaudited
30 September
2021
NZ$M
LIABILITIES
Non-current liabilities
Interest-bearing liabilities 62.8 63.5
Lease liabilities 29.0 27.5
Provisions 10.5 22.7
Other payables 22.8 22.0
Derivative financial instruments5 1.5 4.6
Total liabilities 554.1 454.6
EQUITY
Share capital 249.1 255.5
Retained earnings 1,029.2 1,124.2
Reserves 242.6 211.1
Total equity 1,520.9 1,590.8
Total liabilities and equity 2,075.0 2,045.4
The accompanying notes form an integral part of the financial statements.
On behalf of the Board
24 November 2021
Scott St John Lewis Gradon
Board Chair Managing Director and Chief Executive Officer
INTERIM REPORT 2022
17Fisher & Paykel Healthcare
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 September 2021
Unaudited
2020
NZ$M
Unaudited
2021
NZ$M
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 884.0 883.1
Interest received 0.8 1.0
Payments to suppliers and employees (583.3) (565.9)
Tax paid (80.7) (188.0)
Interest paid (1.9) (1.9)
Lease interest paid (0.8) (0.8)
Net cash flows from operating activities 218.1 127.5
CASH FLOWS FROM INVESTING ACTIVITIES
Net short-term investments 12.6 95.1
Purchases of property, plant and equipment (78.4) (64.8)
Purchases of intangible assets (16.1) (16.5)
Net cash flows from investing activities (81.9) 13.8
CASH FLOWS FROM FINANCING ACTIVITIES
Issue of share capital under employee share plans 1.5 1.5
Lease liability payments (5.3) (6.6)
Dividends paid (89.1) (126.8)
Net cash flows from financing activities (92.9) (131.9)
Net increase in cash 43.3 9.4
Opening cash 36.4 85.4
Effect of foreign exchange rates (0.5) (0.4)
Closing cash 79.2 94.4
RECONCILIATION OF CLOSING CASH
Cash and cash equivalents 93.2 103.2
Bank overdrafts (14.0) (8.8)
Closing cash 79.2 94.4
Unaudited
2020
NZ$M
Unaudited
2021
NZ$M
CASH FLOW RECONCILIATION
Profit after tax 225.5 221.8
Add (deduct) non-cash items:
Depreciation – right-of-use assets 5.0 6.7
Depreciation and amortisation – other assets 32.0 39.3
Share based payments 3.7 3.7
Movement in provisions 7.8 10.4
Movement in deferred tax assets / liabilities (21.4) (11.7)
Movement in net tax payables 32.0 (107.2)
Foreign currency translation (7.4) 1.0
Other non-cash items 3.8 (0.3)
55.5 (58.1)
Net working capital movements:
Trade and other receivables (14.1) (8.4)
Inventories (87.1) (21.3)
Trade and other payables 38.3 (6.5)
(62.9) (36.2)
Net cash flows from operating activities 218.1 127.5
The accompanying notes form an integral part of the financial statements.
INTERIM REPORT 2022
18Fisher & Paykel Healthcare
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 September 2021
1. GENERAL INFORMATION
Reporting entity
Fisher & Paykel Healthcare Corporation Limited (the “Company” or “Parent”) together
with its subsidiaries (the “Group”) is a leading designer, manufacturer and marketer of
medical device products and systems for use in both hospital and homecare settings.
Products are sold in over 120 countries worldwide. The Company is a limited liability
company incorporated and domiciled in New Zealand.
Statement of compliance
The Company is registered under the Companies Act 1993 and is an FMC reporting entity
under Part 7 of the Financial Markets Conduct Act 2013. The Company is also listed on
the New Zealand Stock Exchange (NZX) and the Australian Securities Exchange (ASX).
Basis of preparation
These consolidated financial statements for the six months ended 30 September 2021
have been prepared in accordance with New Zealand Generally Accepted Accounting
Practice (NZ GAAP). They comply with New Zealand Equivalent to International
Accounting Standard 34: Interim Financial Reporting (NZ IAS 34) and International
Accounting Standard 34: Interim Financial Reporting (IAS 34). The Company and
Group are designated as profit-oriented entities for financial reporting purposes.
These consolidated financial statements do not include all of the notes normally included
in an annual financial report. Accordingly, this report should be read in conjunction with
the audited consolidated financial statements for the year ended 31 March 2021.
Presentation currency
These consolidated financial statements are presented in New Zealand dollars (NZD)
to the nearest hundred thousand dollars unless otherwise stated.
Accounting policies
All accounting policies have been applied on a basis consistent with those used
and described in the audited consolidated financial statements for the year ended
31 March 2021.
2. SIGNIFICANT TRANSACTIONS AND EVENTS FOR THE CURRENT PERIOD
The following significant transactions and events affected the financial performance
and financial position of the Group for the six month period ended 30 September 2021:
COVID-19
In March 2020, the World Health Organisation declared the outbreak of COVID-19
as a pandemic. Since the outbreak of COVID-19, the Company’s focus has been on
manufacturing and supplying products that are directly involved in treating patients
with COVID-19.
Management have assessed the impact of COVID-19 on all aspects of the balance sheet.
Specifically, the carrying value of receivables, inventory and warranty exposure were
considered, with provisioning reflecting management’s best estimate of the impact
based on information available at the time of preparing these financial statements.
There has been no material impact on the balance sheet.
Share capital
During the six months ended 30 September 2021, the Group issued 689,563 shares under
employee equity plans.
Funding and short-term investments
The Company had total available committed debt funding of NZ$248 million as at
30 September 2021, of which approximately NZ$185 million was undrawn. As at
30 September 2021, the weighted average maturity of borrowing facilities was 2.6 years.
As at 30 September 2021, the Group has invested available cash on hand of $185 million
in short-term investments. These investments have maturities between 100 and 277 days
with banking institutions that have a long term credit rating of Standard & Poors’ A-
and above and are invested at average interest rates of 1.1%.
INTERIM REPORT 2022
19Fisher & Paykel Healthcare
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3. OPERATING REVENUE AND SEGMENTAL INFORMATION
For the six months ended 30 September
Unaudited
2020
NZ$M
Unaudited
2021
NZ$M
Sales revenue 910.6 879.6
Foreign exchange (loss)/gain on hedged sales (0.4) 20.4
Total operating revenue 910.2 900.0
Revenue by product group
Hospital products 681.0 670.2
Homecare products226.2 226.9
907.2 897.1
Distributed and other products 3.0 2.9
Total operating revenue 910.2 900.0
Revenue after hedging by geographical location of customer:
North America 373.9 329.8
Europe 269.9 232.0
Asia Pacific 184.4 267.2
Other 82.0 71.0
Total operating revenue 910.2 900.0
4. OPERATING EXPENSES
For the six months ended 30 September
Unaudited
2020
NZ$M
Unaudited
2021
NZ$M
Profit before tax includes the following expenses:
Depreciation - right-of-use assets 5.0 6.7
Depreciation and amortisation - other assets 32.0 39.3
Employee benefits expense 287.8 296.3
5. DERIVATIVE FINANCIAL INSTRUMENTS
Financial instruments are either carried at amortised cost, less any provision for impairment,
or fair value. The carrying value of all financial assets and liabilities approximates fair value.
There have been no changes to the Group’s hedging policy during the period. The Group
enters into foreign currency option contracts or forward foreign currency contracts within
policy parameters to manage the net risk associated with anticipated sales or costs.
The Group generally applies hedge accounting to all derivative financial instruments.
All derivative financial instruments continue to be re-measured to their fair value.
Derivative financial instruments continue to be classified as being within Level 2 of the
fair value hierarchy and there were no changes in valuation techniques during the period.
Contractual amounts of derivative financial instruments were as follows:
Audited
31 March
2021
NZ$M
Unaudited
30 September
2021
NZ$M
Foreign currency forward contracts and options
Sale commitments forward exchange contracts 1,743.5 1,769.8
Purchase commitments forward exchange contracts 83.2 82.3
Foreign currency borrowing forward exchange contracts 36.1 36.2
NZD call option contracts purchased – 24.8
Collar option contracts – NZD call options purchased (i) 31.9 31.9
Collar option contracts – NZD put options sold (i) 34.0 34.0
Interest rate derivatives
Interest rate swaps 29.0 29.3
Interest rate options 10.7 10.9
(i) Foreign currency contractual amounts of put and call options are equal.
Undiscounted foreign currency contractual amounts for outstanding hedges were as follows:
Audited
31 March
2021
M
Unaudited
30 September
2021
M
Sale Commitments
United States dollars US$627.5US$648.5
European Union euros €280.7€286.8
Japanese yen ¥8,485.0¥9,467.5
Purchase Commitments
Mexican pesos MX$1,314.5 MX$1,309.0
INTERIM REPORT 2022
20Fisher & Paykel Healthcare
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
6. COMMITMENTS
Audited
31 March
2021
NZ$M
Unaudited
30 September
2021
NZ$M
Capital expenditure commitments contracted for but
not recognised as at the reporting date:
Within one year 45.9 52.8
Between one and two years 9.2 –
Between two and five years – 7.1
55.1 59.9
7. CONTINGENT LIABILITIES
Periodically the Group is party to litigation including product liability and patent claims.
The Directors are unaware of the existence of any claim or contingencies that would have
a material impact on the operations of the Group.
8. RELATED PARTY TRANSACTIONS
During the period the Group has not entered into any material contracts involving related
parties or Directors’ interests. No amounts owed by related parties have been written off
or forgiven during the period. Apart from Directors’ fees, key executive remuneration and
dividends paid by the Group to its Directors as shareholders of the company, there have
been no related party transactions.
9. DIVIDENDS
On 26 May 2021 the Directors approved the payment of a fully imputed 2021 final dividend
of $126.8 million (22.0 cents per share) which was paid on 7 July 2021. A supplementary
dividend of 3.8824 cents per share was also paid to eligible non-resident shareholders.
Subsequent event – dividend declared
On 24 November 2021 the Directors approved the payment of a fully imputed 2022
interim dividend of $98.1 million (17 cents per share) to be paid on 15 December 2021.
A supplementary dividend of 3 cents per share was also approved for eligible non-
resident shareholders.
10. SUBSEQUENT EVENTS
There are no other subsequent events other than the dividend as set out in Note 9.
INTERIM REPORT 2022
21Fisher & Paykel Healthcare
INDEPENDENT AUDITOR’S REVIEW REPORT
To the shareholders of Fisher & Paykel Healthcare Corporation Limited
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
OUR CONCLUSION
We have reviewed the consolidated financial statements of Fisher & Paykel Healthcare Corporation Limited (the Company) and its subsidiaries (the Group),
which comprise the consolidated balance sheet as at 30 September 2021, and the consolidated income statement, the consolidated statement of
comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the six months period
ended on that date, and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements of the Group do
not present fairly, in all material respects, the financial position of the Group as at 30 September 2021, and its financial performance and cash flows for the
six months period then ended on that date, in accordance with International Accounting Standard 34 Interim Financial Reporting (IAS 34) and New Zealand
Equivalent to International Accounting Standard 34 Interim Financial Reporting (NZ IAS 34).
BASIS FOR CONCLUSION
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410 (Revised) Review of Financial Statements Performed
by the Independent Auditor of the Entity (NZ SRE 2410 (Revised)). Our responsibility is further described in the Auditor’s responsibility for the review of the
financial statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual financial
statements, and we have fulfilled our other ethical responsibilities in accordance with these ethical requirements. In addition to our role as auditor, our firm
carries out other services for the Group in the areas of executive remuneration benchmarking and providing market survey data, regulatory tax compliance
procedures in Mexico, and other assurance services in relation to constant currency disclosures. The provision of these other services has not impaired our
independence.
DIRECTORS’ RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Directors of the Company are responsible on behalf of the Company for the preparation and fair presentation of these consolidated financial statements
in accordance with IAS 34 and NZ IAS 34 and for such internal control as the Directors determine is necessary to enable the preparation and fair
presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
AUDITOR’S RESPONSIBILITY FOR THE REVIEW OF THE FINANCIAL STATEMENTS
Our responsibility is to express a conclusion on the consolidated financial statements based on our review. NZ SRE 2410 (Revised) requires us to conclude
whether anything has come to our attention that causes us to believe that the consolidated financial statements, taken as a whole, are not prepared in all
material respects, in accordance with IAS 34 and NZ IAS 34. A review of consolidated financial statements in accordance with NZ SRE 2410 (Revised) is a
limited assurance engagement. We perform procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards on
Auditing and International Standards on Auditing (New Zealand) and consequently does not enable us to obtain assurance that we might identify in an
audit. Accordingly, we do not express an audit opinion on these consolidated financial statements.
INTERIM REPORT 2022
22Fisher & Paykel Healthcare
WHO WE REPORT TO
This report is made solely to the Company’s Shareholders, as a body. Our review work has been undertaken so that we might state to the Company’s
Shareholders those matters which we are required to state to them in our review report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the Shareholders, as a body, for our review procedures, for this report, or for the
conclusion we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is Keren Blakey.
For and on behalf of:
Chartered Accountants Auckland
24 November 2021
INTERIM REPORT 2022
23Fisher & Paykel Healthcare
INTERIM REPORT 2022
24Fisher & Paykel Healthcare
DIRECTORS
Scott St John Board Chair, Non-Executive, Independent
Lewis Gradon Managing Director and Chief Executive
Officer
Michael Daniell Non-Executive
Pip GreenwoodNon-Executive, Independent
Geraldine McBride Non-Executive, Independent
Dr Lisa McIntyreNon-Executive, Independent
Neville MitchellNon-Executive, Independent
Donal O’Dwyer Non-Executive, Independent
EXECUTIVE MANAGEMENT TEAM
Lewis GradonManaging Director and
Chief Executive Officer
Lyndal YorkChief Financial Officer
Paul ShearerSenior Vice President – Sales & Marketing
Andrew SomervellVice President – Products & Technology
Winston FongVice President – Surgical Technologies
Brian SchultzVice President – Quality & Regulatory
Affairs
Nicholas FourieVice President – Information &
Communication Technology
Jonti RhodesGeneral Manager – Supply Chain,
Facilities & Sustainability
Marcus DrillerVice President – Corporate
Nicola TalbotVice President – Human Resources
REGISTERED OFFICES
New Zealand:
Physical address: 15 Maurice Paykel Place,
East Tamaki, Auckland 2013,
New Zealand
Telephone: +64 9 574 0100
Postal address: PO Box 14348, Panmure,
Auckland 1741, New Zealand
Website: www.fphcare.com
Email: investor@fphcare.co.nz
Australia:
Physical address: 19-31 King St, Nunawading,
Melbourne, Victoria 3131, Australia
Telephone: +61 3 9871 4900
Postal address: PO Box 159, Mitcham
Victoria 3132, Australia
STOCK EXCHANGES
The Company’s ordinary shares are listed on the
NZX Main Board and the ASX.
SHARE REGISTRAR
In New Zealand:
Link Market Services Limited
Physical address: Level 30, PwC Commercial Bay,
15 Customs Street West,
Auckland 1010, New Zealand
Postal address: PO Box 91976,
Auckland 1142, New Zealand
Facsimile: +64 9 375 5990
Investor enquiries: +64 9 375 5998
Website: www.linkmarketservices.co.nz
Email: enquiries@linkmarketservices.co.nz
In Australia:
Link Market Services Limited
Physical address: Level 12, 680 George Street,
Sydney, NSW 2000, Australia
Postal address: Locked Bag A14, Sydney South,
NSW 1235, Australia
Facsimile: +61 2 9287 0303
Investor enquiries: +61 2 8280 7111
Internet address: www.linkmarketservices.com.au
Email: registrars@linkmarketservices.com.au
Directory
INTERIM REPORT 2022
25Fisher & Paykel Healthcare
Fisher & Paykel Healthcare is a leading designer,
manufacturer and marketer of products and systems
for use in acute and chronic respiratory care, surgery
and the treatment of obstructive sleep apnea.
www.fphcare.com
© 2021 Fisher & Paykel
Healthcare Corporation Limited
---
1
Half Year Results Presentation FY2022
For six months ended 30 September 2021
To be updated once interim cover
complete
2
Important notice
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) Interim Report 2022 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.
Constant currency information included within this presentation is non-GAAP 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 reconciliation between reported results and constant currency
results is available in the company’s Interim Report 2022. The company’s constant currency framework can be found on the
company’s website at www.fphcare.com/ccf.
3
Half year business highlights
CONTRIBUTEDto the fight against
COVID-19 by providing convenient access to
vaccinations for our employees.
COMMENCED construction on our third
manufacturing facility in Mexico and started
earthworks on our fifth facility in New Zealand.
LAUNCHED F&P Visairo™mask for
noninvasiveventilation and F&P Evora™ Full mask
for obstructive sleep apnea.
INITIATED search for property for a second
R&D and manufacturing campus in New Zealand.
APPOINTED Dr Lisa McIntyre to the Board
of directors.
CONTINUEDto expand our global reach by
placing sales representatives into additional
countries.
4
Key half year financial results
H1 FY22 (6 months to 30 September 2021)
% of RevenueNZ$MPCP^CC*
Operating revenue100%900.0-1%2%
Hospital operating revenue74%670.2-2%1%
Homecare operating revenue25%226.90%3%
Gross margin / Gross profit63%5 67.7135bps53bps
SG&A21%(189.6)1%5%
R&D8%(75.7)17%17%
Total operating expenses29%(265.3)5%8%
Operating profit34%302.4-2%-2%
Profitafter tax25%221.8-2%-1%
^ PCP = prior comparable period * CC = constant currency
5
Hospital product group
33%
67%
HardwareConsumables
H1 FY22 HOSPITAL REVENUE COMPOSITION
HARDWARE
CONSUMABLES
Invasive
ventilation
Noninvasive
ventilation
Optiflow
TM
nasal
high flow
Surgical
H1 FY21 Hospital revenue composition
Hardware: 37% Consumables: 63%
6
Hospital product group
74%
OF OPERATING
REVENUE
-2%
NZ$
H1 FY22
1%
CONSTANT
CURRENCY
20%
NZ$
24%
CONSTANT
CURRENCY
HOSPITAL OPERATING REVENUE
NEW APPLICATIONS*
CONSUMABLES REVENUE
*New applications = Noninvasive ventilation (NIV), nasal high flow therapy, surgical
(H1 FY22 $670.2M)
•Strong customer demand
for our Optiflowand
Airvosystems, driven by
the growing body of
clinical evidence and
COVID-19
•New applications
consumables* made up
72% of H1 FY22 Hospital
consumables revenue,
63% in H1 FY21
•H1 FY22 Hospital
hardware declined 10% in
constant currency
7
Homecare product group
18%
82%
HardwareConsumables
H1 FY22 HOMECARE REVENUE COMPOSITION
HARDWARE
CONSUMABLES
CPAP Therapy/OSAHome Respiratory Support
H1 FY21 Homecare revenue composition
Hardware: 17% Consumables: 83%
8
Homecare product group
25%
OF OPERATING
REVENUE
0%
NZ$
H1 FY22
3%
CONSTANT
CURRENCY
-1%
NZ$
MASKS REVENUE
3%
CONSTANT
CURRENCY
HOMECARE OPERATING REVENUE
(H1 FY22 $226.9M)
•Introduced F&P Evora
Full, a compact full-face
mask, in Australia and
New Zealand
•OSA mask revenue
impacted by reduced new
patient diagnosis, due to
the impact of COVID-19
and the limited supply of
treatment hardware
9
Gross Margin
Long Term Gross Margin target
GROSS MARGIN
0%
10%
20%
30%
40%
50%
60%
70%
20172018201920202021H1 2022
•Gross margin for the half year:
−increased by 135 bps to 63.1%
−increased by 53 bps in constant currency
−freight remained elevated but lower than
prior half year
•Increased freight costs adversely impacted
constant currency gross margin by ~190bps
compared to pre-COVID-19 levels
10
Operating Margin
OPERATING (EBIT) MARGIN
Long Term Operating Margin target
0%
5%
10%
15%
20%
25%
30%
35%
40%
20172018201920202021H1 2022
Research & Development expenses
•$75.7M, +17% (+17% CC)
•Reflecting underlying growth and timing of R&D
projects
•Estimate ~65% of R&D spend eligible for tax credit
Selling, General & Administrative expenses
•$189.6M, +1% (+5% CC)
Operating expenses
•$265.3M, +5% (+8% CC)
•Operating margin decreased by 37 bps
(-121 bps CC) to 33.6% with continued investment
in operating expenses to support hardware sales
11
Cash Flow and Balance Sheet
H1 FY21 NZ$MH1 FY22 NZ$M
Operating cash flow218.11 2 7. 5
Capital expenditure
(includingpurchases of intangible assets)94.581.3
Lease liability payments5.36.6
Free cash flow118.339.6
FY21 NZ$MH1 FY22 NZ$M
Net cash / (debt) (including short-term investments)302.9216.1
Total assets2,075.02,045.4
Total equity1,520.91,590.8
Gearing(net debt / net debt + equity)*-2 7. 2 %-16.6%
* Calculated using net interest-bearing debt (debt less cash and cash equivalents) to net interest-bearing debt and equity (lesshedge reserve).
12
Dividend
DIVIDEND HISTORY
0
5
10
15
20
25
30
35
40
201720182019202020212022
Dividend (CPS)
Interim cpsFinal cpsTotal cps
•Increased interim dividend by 6%
−17.00 cps + 6.6111 cps imputation
credit for NZ residents (gross
dividend of NZ 23.6111 cps)
−Fully imputed
−3.0000 cps non-resident
supplementary dividend
13
Foreign exchange effects
•49% of operating revenue in US$ (FY21: 52%) and 17% in € (FY21: 19%).
Year to 31 March
Hedging position for our main exposures
FY22FY23FY24FY25FY26-27
USD % cover of estimated exposure95%70%50%30%-
USD average rate of cover0.6750.6650.6560.624-
EUR % cover of estimated exposure95%70%45%35%5%
EUR average rate of cover0.5540.5370.5260.5080.481
Hedging cover percentages have been rounded to the nearest 5%
Reconciliation of Constant Currency to Actual Income Statements
H1 FY21
NZ$M
H1 FY22
NZ$M
Profit after tax (constantcurrency)200.9198.8
Spot exchange rate effect29.25.4
Foreign exchange hedgingresult(1.0)15.2
Balance sheet revaluation(3.6)2.4
Profit after tax (as reported)225.5221.8
14
Revenue and expenses by currency
1%
49%
17%
1%
32%
NZDUSDEURMXNOther
REVENUE BY CURRENCY
38%
42%
4%
10%
6%
NZDUSDEURMXNOther
COST OF SALES BY CURRENCY
47%
25%
11%
<1%
16%
NZDUSDEURMXNOther
OPERATING EXPENSES BY CURRENCY
H1 FY22 (for the 6 months ended 30 September 2021)
15
H2 FY22 Observations
No quantitative guidance provided for the remainder of the 2022 financial year given the
continuing uncertainties associated with COVID-19.
H2 FY22 Observations*
•Hospital Consumables: H2 FY21 peak COVID-19 hospitalisationsin North America / Europe. In
the absence of further comparable hospitalisationsurges around the world, expect
consumables revenue for H2 FY22 to be lower than H2 FY21. Continuing endemic COVID-19
hospitalisations, surgical activity approaching normality and the ongoing adoption of nasal
high flow for applications other than COVID-19 would result in consumables revenue increasing
sequentially from H1 FY22.
•Hospital hardware: do not expect Hospital hardware revenue to continue at an elevated level
for H2 FY22.
•Homecare: continue to expect new OSA patient diagnoses to be at or above FY21 rates for H2
FY22.
*None of the observations listed is a prediction, forecast or guide for H2 FY22. Please refer to the full list of observations available in the company’s
news release dated 25 November 2021.
16
Overview
Overview
Overview
Overview
17
Fisher & Paykel Healthcare at a glance
•Medical device manufacturer with leading positions
in respiratory care and obstructive sleep apnea
•>50 years’ experience in changing clinical practice to
solutions that provide better clinical outcomes and
improve effectiveness of care
•Estimated NZ$20+ billion and growing market
opportunity driven by demographics
•Significant organic long-term growth opportunities
in respiratory care, OSA, COPD and surgery
•Large proportion (71%) 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
Our people
are located in
51 countries
3,793
in New Zealand
2,544
in North America,
including Mexico
371
in Europe
449
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 a strong history of
increasing dividend payments
18
~NZ$20+ billion and growing market opportunity
HOSPITAL
HOMECARE
NEW APPLICATIONS
Applications outside of invasive ventilation
Surgical
Humidification
Total addressable market estimates
~90+ million patients
~100+ million patients
Home Respiratory
Support
Obstructive Sleep
Apnea
Non-invasive
Ventilation
Invasive
Ventilation
Hospital
Respiratory Support
19
OUR ASPIRATION:
Sustainably
DOUBLING
our constant
currency revenue
every 5-6 years.
Our aspiration
20
Markets and 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 71% of
operating revenue (H1 FY21: 68%)
REVENUE BY PRODUCT GROUP
6 MONTHS TO 30 SEPTEMBER 2021
<1%
Hospital
Homecare
Distributed & Other
74%
25%
21
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
−Total health spending is increasing more
rapidly in low and middle income countries
(close to 6% on average) than in high income
countries (4%)
4
* Source: United States Census Bureau National Population Projections
22
Hospital cost breakdown
Source: Estimates of Medical Device Spending in the United States, Donahoe, G and King, G, June 2014
Other –includes labour,
utilities, drugs, supplies,
food, depreciation.
Medical devices
94%
6%
23
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
24
Hospital
25
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
26
Optiflow-displacing conventional oxygen therapy
CONVENTIONAL
OXYGEN THERAPY
NON-INVASIVE
VENTILATION
27
Patient groups who may benefit from Optiflow
A D U LT S :
•Acute respiratory
failure
•Asthma
•Atelectasis
•Bronchiectasis
•Bronchitis
•Burns
•COPD
•Chest trauma
PAEDIATRICS/NEONATES:
•Infant respiratory
distress
•Emphysema
•Palliative Care
•Pneumonia
•Pulmonary embolism
•Respiratory
compromise
•Viral pneumonia
•Carbon monoxide
poisoning
•Bronchiolitis
These patients are located throughout the hospital - in the ICU, NICU, PICU, SICU, HDU, Ward and ED.
28
Clinical outcomes of Optiflownasal high flow therapy
A D U LT S :
•REDUCED intubation
6
•REDUCED re-intubation
7, 8, 9
•REDUCED bilevel ventilation
8
•REDUCED nursing workload
8
•INCREASED ventilator free days
6
•IMPROVED comfort & patient
tolerance
7
•IMPROVED compliance
7
•REDUCED COPD exacerbations
10
PAEDIATRICS:
•REDUCED intubation
11
•REDUCED length of stay
12
•REDUCED respiratory distress
13
NEONATES:
•NON-INFERIORITY with nasal
CPAP
14
•REDUCED nasal trauma
15, 16
•REDUCED respiratory distress
17
Optiflow NHF therapy is associated with:
29
OptiflowNHF -a growing body of clinical evidence
NASAL HIGH FLOW CLINICAL PAPERS PUBLISHED ANNUALLY
Source: PubMed
•The publication of
638 clinical papers
on NHF continues to
signify a high level of
clinical interest in the
therapy
0
100
200
300
400
500
20002002200420062008201020122014201620182020
AdultNeonatal & Pediatric
30
International Clinical Practice Guidelines
The role for high flow nasal cannula as a
respiratory support strategy in adults: a
clinical practice guideline
Result: The guideline panel made four
recommendations:
1.strong recommendation for HFNC in
hypoxemic respiratory failure compared to
COT (moderate certainty),
2.conditional recommendation for HFNC
following extubation(moderate certainty),
3.no recommendation regarding HFNC in the
peri-intubation period (moderate certainty),
4.conditional recommendation for
postoperative HFNC in high risk and/or
obese patients following cardiac or thoracic
surgery (moderate certainty).
ERS Clinical Practice Guidelines: high-flow
nasal cannula in acute respiratory failure
Result: The Task Force developed 8 conditional
recommendations, suggesting using:
1.HFNC over COT in hypoxemic ARF,
2.HFNC over NIV in hypoxemic ARF,
3.HFNC over COT during breaks from NIV,
4.either HFNC or COT in post-operative patients
at low risk of pulmonary complications,
5.either HFNC or NIV in post-operative patients
at high risk of pulmonary complications,
6.HFNC over COT in non-surgical patients at
low risk of extubationfailure,
7.NIV over HFNC for patients at high risk of
extubationfailure unless there are relative or
absolute contraindications to NIV,
8.triallingNIV prior to use of HFNC in patients
with chronic obstructive pulmonary disease
(COPD) and hypercapnic ARF.
Management of Adult Patients With
Oxygen in the Acute Care Setting
Summary: The findings are consistent with a
published systematic review and meta-analysis
and subsequent clinical practice guidelines by
Rochwerget al. These clinical practice guidelines
gave a
1.strong recommendation for HFNC over
conventional oxygen therapy (COT) for
hypoxemic respiratory failure
2.a conditional recommendation for use
immediately postextubation, and
postoperatively in cardiac and/or thoracic
surgery patients.
3.Further data are required to demonstrate
mortality benefits or confirm benefits in ICU
or hospitalLOSwith HFNC compared to COT
in any patient population.
Napolitano et al (2021) AARC Clinical Practice Guideline: Management of Pediatric
Patients With Oxygen in the Acute Care Setting. Respiratory Care
(http://rc.rcjournal.com/content/early/2021/11/02/respcare.09294/tab-pdf)
OczkowskiS, ErganBüm, Bos L, et al. ERS Clinical Practice Guidelines: high-flow
nasal cannula in acute respiratory failure. Eur Respir J 2021; in press
(https://doi.org/10.1183/13993003.01574-2021).
Rochwerget al (2020) The role for high flow nasal cannula as a respiratory support
strategy in adults: a clinical practice guideline. Intensive Care Med
31
Clinical practice guideline: NHF evidence from the ED
Studies from the AARC, ERS and ESICM clinical practice guidelines associated with Nasal High Flow use in the ED.
29
30
31
32
33
34
35
36
37
38
39
32
Strong growth in hospital new applications
•New applications consumables currently make up 72% of Hospital
consumables revenue, from 63% in H1 FY21
CONSTANT CURRENCY REVENUE GROWTH RATE
IN NEW APPLICATIONS CONSUMABLES*
New applications consumables: Non-invasive ventilation, Optiflow, Airvo, Surgical
* Adjusted to exclude impact of US distribution transition in FY16 and FY17
0%
10%
20%
30%
40%
50%
60%
FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21H1
FY22
33
Homecare
34
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
•Estimate >100 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
35
Mask matters most
F&P EVORA NASAL
™
F&P EVORA FULL-FACE
™
•Masks are key to compliance
•Unique, patented designs
•Released F&P Evora compact full-face mask in Australia and
New Zealand and will be launched in other countries upon
receiving clearances.
F&P BREVIDA
™
36
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 world
17
•6% of US adults have been diagnosed with
COPD
18
(~15 million people)
•4-10% COPD prevalence worldwide
19
(~400
million people)
•Emerging evidence for COPD patients using NHF
at home, reduced exacerbation rates
10
, reduced
hypercapnia
27, 2 8
, and improved Quality of life
10,27
.
37
High level of innovation and investment in R&D
•R&D represents 8% of operating
revenue*: NZ$75.7M
•Product pipeline includes:
−Humidifier controllers
−Masks
−Respiratory consumables
−Flow generators
−Compliance monitoring
solutions
•411 US patents, 491 US pending,
1,699 Rest of world patents,
1,141 Rest of world pending†
*For 6 months ended 30 September 2021
†As at 30 September 2021
38
Growing patent portfolio
Average
remaining life
of FPH patent
portfolio (all
countries):
11.7 years*
FISHER & PAYKEL HEALTHCARE US PATENT PORTFOLIO (2008 –2021)
*As at 30 September 2021
0
100
200
300
400
500
2008201020122014201620182020H1 2022
US PatentsUS Patent Applications
39
Manufacturing and operations
New Zealand
•Four buildings: 110,000 m
2
/ 1,180,000 ft
2
•Co-location of R&D and manufacturing
•Commenced earthworks on building 5
•Initiated search for second R&D and
manufacturing campus in New Zealand
Tijuana, Mexico
•Two buildings: 41,000 m
2
/ 450,000 ft
2
•Commenced construction of a 22,000 m
2
/
240,000 ft
2
third manufacturing facility in
Mexico
Future manufacturing
•Planning two additional facilities outside of
New Zealand over the next five years
Mexico 3 – Construction progressing
well on the third manufacturing
facility in Tijuana, Mexico.
40
Environmental, Social & Governance
Sustainability disclosures
and indices
We participate annually in a suite of well-
respected sustainability disclosure
programmes and have been included this
year in the Dow Jones Sustainability
Index and the FTSE4Good index.
ESG Summary
People
Supporting our people: Through an internal
campaign called unite in the fight. We reminded
our people of the vital role their work was playing
in the treatment of COVID-19 patients.
Community
Fisher & Paykel Healthcare Foundation: The
purposes of this charitable organisationinclude
supporting and funding health research,
improving access to healthcare, environmental
protection initiatives and promoting STEM.
a
$20 million
TO ESTABLISH THE NEW
FISHER & PAYKEL HEALTHCARE
FOUNDATION
Environment
CDP ScoresFY19FY20FY21
ClimatesBBA-
Supplier Engagement-B-A-
Water-CB
Forests--C
Disclosure:
During FY21
we began
disclosing
CDP forests.
41
Strong global presence
•Direct/offices
−Hospitals, home care dealers
−Sales/support offices in North
America, Europe, Asia, South
America, Middle East and
Australasia, 18 distribution centres
−~1,100 employees in 51 countries
−Ongoing international expansion
•Distributors
−+180 distributors worldwide
•Original Equipment Manufacturers
−Supply most leading ventilator
manufacturers
•Sell in more than 120 countries
REVENUE BY REGION
6 MONTHS TO 30 SEPTEMBER 2021
26%
30%
8%
36%
North America
Europe
Asia Pacific
Other
42
Ownership structure and listings
•Listed on NZX and ASX (NZX.FPH, ASX.FPH)
16%
60%
23%
1%
NZ InstitutionsOther Institutions
Brokers & RetailOther
35%
26%
20%
9%
5%
4%
1%
New ZealandAustralia
North AmericaUK
Europe (ex UK)Asia
Rest of World
GEOGRAPHICAL OWNERSHIP AS AT
30 SEPTEMBER 2021
SHAREHOLDING STRUCTURE AS AT
30 SEPTEMBER 2021
43
Consistent growth strategy
44
References
References
1.Clinical guidelines for use of NHF on Covid-19 patients, including those issued by the HHS, WHO, SCCM, ACEP, NIH and the CDC.
2.Grayson K. Vincent, Victoria A. Velkoff. The Next Four Decades. The Older Population in the United States: 2010 to 2050. US Census Bureau, 2010.
3.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.
4.BerhanuAlemayehu, Kenneth E Warner. The Lifetime Distribution of Health Care Costs. Health ServRes. 2004 June; 39(3): 627–642
5.KeX, Agnes S et al. Public Spending on Health: A Closer Look at Global Trends. World Health Organisation2018.
6.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
7.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
8.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
9.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
10.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
11.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
12.McKiernan C, Chua LC, VisintainerPF et al. High flow nasal cannulaetherapy in infants with bronchiolitis. J Pediatr. 2010;156(4):634-8
13.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
14.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
15.Yoder BA, Stoddard RA, Li M, King J et al. Heated, humidified high-flow nasal cannula versus nasal CPAP for respiratory support in neonates. Pediatrics. 2013;131(5):e1482-90
16.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
17.SaslowJG, AghaiZH, NakhlaTA et al. Work of breathing using high-flow nasal cannula in preterm infants. J Perinatol. 2006;26(8):476-80
18.World Health Organise(2018) The top 10 causes of death, Available at: https://www.who.int/news-room/fact-sheets/detail/the-top-10-causes-of-death (Accessed: 24 May 2018)
19.Nicole M Kosacz, Antonello Punturieriet al. Chronic Obstructive Pulmonary Disease Among Adults -United States 2011. US Centers for Disease Control and Prevention, 2012.
20.R J Halbert, Sharon Isonaka, Dorothy George, AhmarIqbal. Interpreting COPD Prevalence Estimates. Chest. 2003; 123:5 1684 – 1692.
21.RochwergB, GrantonD, Wang DX et al (2019) High flow nasal cannula compared with conventional oxygen therapy for acute hypoxemic respiratory failure: a systematic review and meta-analysis. Intensive Care Med 45(5):563–572.
22.Chaudhuri D, GrantonD, Wang DX, Burns KEA, HelvizY, EinavS, Trivedi V, Mauri T, Ricard JD, ManceboJ, Frat JP, Jog S, Hernandez G, Maggiore SM, MbuagbawL, Hodgson CL, Jaber S, GoligherEC, BrochardL, RochwergB. High-Flow Nasal Cannula in the Immediate Postoperative
Period: A Systematic Review and Meta-analysis. Chest. 2020 Nov;158(5):1934-1946. doi: 10.1016/j.chest.2020.06.038. Epub2020 Jun 29. PMID: 32615190..
23.Chaudhuri D, GrantonD, Wang DX et al (2020) Moderate certainty evidence suggests the use of high-flow nasal cannula does not decrease hypoxia when compared with conventional oxygen therapy in the peri-intubation period: results of a systematic review and meta-analysis. Critical
Care Med.
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---
25 November 2021
Results announcement
Results for announcement to the market
Name of issuer Fisher & Paykel Healthcare Corporation Limited
Reporting Period 6 months to 30 September 2021
Previous Reporting Period 6 months to 30 September 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$900,000 -1%
Total Revenue $900,000 -1%
Net profit/(loss) from
continuing operations
$221,800 -2%
Total net profit/(loss) $221,800 -2%
Interim Dividend
Amount per Quoted Equity
Security
0.17000000 $/share
Imputed amount per Quoted
Equity Security
0.06111111 $/share
Record Date 03 December 2021
Dividend Payment Date 15 December 2021
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
2.42989359 $/share 1.87047145 $/share
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Not applicable
Authority for this announcement
Name of person
authorised
to make this announcement
Raelene Leonard
Contact person for this
announcement
Raelene Leonard
Contact phone number +64 9 574 0147
Contact email address
companysecretary@fphcare.co.nz
Date of release through MAP
25 November 2021
Reviewed financial statements accompany this announcement.
---
25 November 2021
Distribution Notice
Section 1: Issuer information
Name of issuer Fisher & Paykel Healthcare Corporation Limited
Financial product name/description Interim Dividend
NZX ticker code FPH
ISIN NZFAPE0001S2
Type of distribution
Full Year Quarterly
Half Year X Special
DRP applies
Record date 03 December 2021
Ex-Date 02 December 2021
Payment date 15 December 2021
Total monies associated with the
distribution
$98,121,968 million based on shares on issue at 24
November 2021 for cash distribution
Source of distribution Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution 0.23611111 $/share
Gross taxable amount 0.23611111 $/share
Total cash distribution 0.17000000 $/share
Excluded amount N/A
Supplementary distribution amount 0.03000000 $/share
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
100%
Imputation tax credits per financial
product
0.06611111 $/share
Resident Withholding Tax per
financial product
0.01180556 $/share
Section 4: Distribution re-investment plan (if applicable)
Not applicable
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
Raelene Leonard
Contact person for this
announcement
Raelene Leonard
Contact phone number +64 9 574 0147
Contact email address companysecretary@fphcare.co.nz
Date of release through MAP 25 November 2021
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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