Fisher & Paykel Healthcare Corporation Limited

Welcome to the Fisher & Paykels Health Cares Results Conference Call. My name is Cynthia, and I will be your operator for today's call. At this time, everyone except the guest speakers will be in a listen-only mode. Later, we'll conduct a question-and-answer session. We ask for your assistance in keeping the call to a maximum of one hour. If assistance is required at any time, please press the star followed by zero on your phone and wait for a coordinator. If you require further assistance, you should redial into the call. Please note this conference call is being recorded. I would now like to turn the call over to Marcus Driller, VP Corporate. Please go ahead.

Thank you, Cynthia. Well, good morning, everyone, and welcome to Fisher & Paykel Healthcare's 2023 Financial Year Results Conference Call. On the call today are Lewis Graydon, our Managing Director and Chief Executive Officer, Lyndall York, Chief Financial Officer, Paul Shearer, Senior VP of Sales and Marketing, and Andrew Somerville, our VP of Products and Technology. Lewis and Lyndall will first provide an overview of the results, and then we'll open up the call to questions for the team. We'll be discussing our results for the year ended 31 March, 2023. We've earlier today provided our 2023 annual report including financial statements and commentary on our results to the NZX and ASX. These documents can be accessed on our website at fphcare.com forward slash investor. With that I'd now like to turn the call over to Lewis.

Okay and thanks Marcus and welcome everyone. So today I'm going to be referring to the investor presentation pack that we released to the NZX and the ASX this morning. We do have limited time and our roster of analysts is continuing to grow. So I'm very conscious of leaving plenty of time to get to all your questions. We're thinking that we'll try to move through these initial slides a little faster than we normally do today. And for this audience, we think it's a little more meaningful to focus on our second half performance. So let's start on page four, our second half results. Now we're coming out of three years that were impacted by COVID-19 and we think this result is encouraging as we can see market conditions progressing towards more of a normal state over the last six months. Operating revenue for the second half was $890.5 million. That's up 14% on the prior corresponding period or 12% in constant currency. Net profit after tax for the half was $154.4 million which is flat compared to the prior corresponding period and it's a 3% decline in constant currency. So let's turn now to page 6 for hospital. Hospital operating revenue was $584.8 million for the half, that's up 9% or 7% in constant currency. For the full year hospital hardware sales were down 53% in constant currency compared to the 2022 financial year, and that is a year that was much more heavily impacted by the global COVID-19 surges. Hardware sales have still benefited from surges during FY23 in some locations, but in those countries or regions that did not experience COVID-19 surges, Hardware sales look to be tracking somewhat close to pre-pandemic patterns throughout the year. New applications consumables revenue for the second half was up 14% on 2022. That's 13% in constant currency. And given that we are lapping a period significantly impacted by COVID-19, we think this is a very pleasing result, and we believe it indicates steady progress in increasing use of our therapies. Overall in hospital therapies we'd say we are beginning to see periods of stable ordering patterns in the second half of the 2023 financial year and into the early months of this year, FY24. I'll turn now to page 8. Home care operating revenue was $303.9 million. That's up 25% on the second half of 2022. or 22% in constant currency. I would say mask revenue was particularly strong at 28% or 24% in constant currency. Now we launched our overall full mask in the US in May 2022, and it's been a significant contributor to mask revenue. That is one of the most positive mask launches we've ever experienced, both in terms of customer feedback and sales performance to date. Now, I will pause there and hand over to our CFO, Lyndall York, for more details on the financials, and then I'll speak to guidance after that. Thank you, Lyndall.