Fisher & Paykel Healthcare Corporation Limited

for today's call. At this time, everyone except the guest speakers will be in 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 button 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 the conference call for Fisher & Paykel Healthcare's full year results for the 2024 financial year. On the call today are Lewis Graydon, Managing Director and Chief Executive Officer, Lyndall York, Chief Financial Officer, Justin Callaghan, VP Sales and Marketing, Andrew Somerville, VP of Products and Technology, and Andy Nicol, our Chief Operating Officer. Lewis and Linda will first provide an overview of the results, and then we'll open up the call to questions. We'll be discussing our results for the year end of 31 March 2024. Earlier today, we provided our 2024 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 and with thunder and lightning here at our campus, I'd now like to turn the call over to Lewis. Yeah, look, thanks, Marcus.

And you can't plan these things, but we are sitting here in the middle of a major downpour in Auckland. I hope there's not too much background noise. And we might sound a little funny to you. That's because we're shouting at the speaker. to try and get over this background thunder, lightning and deluge. So my apologies. Now today I'm going to be using the investor presentation pack that we released at NZX and the ASX this morning. So let's start on page three with the business highlights. Our people continue to work with clinicians around the world to promote the adoption of our therapies. and that's supporting the treatment of approximately 20 million patients during this year. In the hospital business, we've reached some important product milestones. We got regulatory clearance in the United States for a number of products, and that includes the FMP950 system, our OptiFlow Duet nasal cannula as well. We also introduced the Ebo3 into the United States this year, and you can find more details on these in the timing, on page 26 of the presentation pack. In home care, OSA masks had an outstanding year. Our Evora face masks continue to perform well, and we've recently launched our new Solo mask in the United States. So now let's turn to page 4. Operating revenue for the full year was $1.74 billion, up 10% on FY23, and that's 8% in constant currency. And this was driven by solid demand across the hospital, consumables, product portfolio, and strong growth in OC masks. Now, as we explained in our market announcement, reported net profit after tax was impacted by three factors that were unusual, the voluntary product recall, the valuation of the karaka land, and the removal of depreciation deductibility for our New Zealand buildings. And these are all reflected in this table on page four, where we also look at the underlying results. Lyndall's going to touch on this shortly, but I would like to make one brief comment on the karaka land. We're actually pretty pleased that we've got this now, as we consider that owning this site mitigates the risk to our future growth in light of the current increase in uncertainty around potential development of sites like this in Auckland. So including these adjustments, reported net profit after tax for the year was $132.6 million. That's down 56% on FY23 in constant currency. Underlying net profit after tax, which excludes those items, was $264.4 million. That's up 6% on FY23 or 5% in constant currency. And we think it's a better representation of the ongoing operating characteristics of the business for the year. So now let's look at our product groups. We'll start on page six. Hospital operating revenue was $1.1 billion for the full year. That's up 6% or 5% in constant currency. New applications consumed was revenue was up 15% on FY23 or 13% in constant currency. Growth in the second half has come from reduced cumulative respiratory illness hospitalisations in the northern hemisphere compared to FY23. I should really say it's come after reduced cumulative respiratory illness hospitalisations. Because we're thinking of seasonal respiratory illness as including COVID, flu, and RSV-related hospitalizations. FY24 had a strong flu season compared to historical periods, but that's offset by a lower COVID hospitalization rate. And it results in a lower overall seasonal hospitalization compared to the second half of FY23. So I think going forward, we'll be talking about seasonal hospitalizations to incorporate all those moving parts. Now against this backdrop, growth was broad-based across the portfolio. That's including a non-invasive ventilation, OptiFlow for respiratory and anesthesia patients, and invasive ventilation. It all suggests that we are making headway with changing clinical practice. Hospital hardware of over $100 million was pleasing, given the significant volume of hardware sold in recent years, and the fact that we lapped a period with COVID-driven surges in some countries. such as China, for example. So turning now to page eight. Home care operating revenue was $652.3 million. That's up 18% on FY23, or 16% in constant currency. Our Evora full face mask continues to be a strong performer. And we're continuing to add new high-performance masks to our portfolio, and that accommodates a wide range of patient needs, and patient preferences. In April this year, we launched the new Solo mask into the United States. This mask offers automatic fitting and adjustment for patients who prefer something that just works without adjustments or any assistance. We also unveiled our smallest and lightest mask yet, the Nova Micro Nasal Pillows Mask. This has been released in New Zealand and Canada, and launches into Australia, Europe, and the US are to follow later this year. So I'm going to pause there and hand over to our CFO, Lyndall York, for more details on financial performance, and then I'll speak to guidance after that.