COMPUMEDICS LIMITED — Interim / Quarterly Report 2008

Feb 26, 2008

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Existing business up-date – financial results for 6 months to 31 December 2007 Step out opportunity - USA ambulatory sleep business Step out opportunity - Neuvo™– NEW long-term monitoring device into NEW market for Compumedics Step out opportunity - Xegis™– NEW EMG device for Compumedics as a result of a NEW OEM strategic alliance Sleep treatment – SPAP™device up-date Brief up-date of other innovation projects and technologies
Capital equipment patient monitoring business (Core business) • • • • Medical innovations business (break-out business) • • Outlook – financial and technology Recap
Over view
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Slide 2
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Core business - Financial update	� STRENGTHENING financial positionand SOUND outlook	� RECORD profit-after-tax more than triples to $1.6m in the	half-year to 31 December 2007	� RECORD half-year revenues of $20.1m. Revenues would	have been approximately $22m had exchange rates not moved	adversely from the prior corresponding half-year and had	supportive banking services been provided in the half-	year by our now previous bankers	� REDUCTION in operating costs continues	� RE-FINANCING with HSBC completed - January 14, 2008	� STRONG R&D pipeline maintained	� BREAKOUT SPAP™technology – commercialisation activities	continue

		Actual		half year	Dec 2007		20.1			62%		(11.0)		(0.3)		2.1		1.5		88.16c
Core Business - Financial update		Actual Actual Actual		half year half year half year	Dec 2006 Dec 2005 Dec 2004		19.7 18.1 19.4 Revenues ($m)			62% 54% 57% Margins %		(11.8) (12.9) (10.7) Operating Expenses		(0.2) - (1.0) Foreign exchange		1.1 (2.1) (0.4) EBITDA		0.5 (3.0) (0.9) NPAT		79.13c 72.72c 77.53c AUD / USD exchange	rate
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2007
Underlying revenue growth at 10% largely washed away by adverse currency movements
2006
2005
2004
at $20m, would have been $22m had the
2003
Revenues for the 6 months to December 31
2002
and regular banking services been available
25 20 15 10 5 0
AUDm
Total group revenues
Australian dollar not risen against other currencies and competitive
Core Business - Financial update
Slide 7
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2007
2006
2005
dollar
Product restored 2004
profitability
2003
at 62% are same as prior corresponding half-year
Gross margins for the 6 months to December 31
2002
62 60 58 56 54 52 50
%
and 3% better than at 30 June 2007 despite the rising Australian
Core Business - Financial update Gross Margins
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2007
2006
2005
Sustainable cost base re-affirmed
2004
DWL acquisition
continue to decline - $1.9m or 15%
2003
over the last two years
Expenses for the 6 months to December 31
2002
14 12 10 8 6 4 2 0
Operating Expenses
AUDm
Core Business - Financial update
Slide 9
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2007
2006
RECORD EBITDA
2005
dollar 2004
2003
EBITDA for the six months ended December 31
2002
record half-year profitability at current revenue
2.5 2 1.5 1 0.5 0 -0.5 -1 -1.5 -2 -2.5
levels, which are constrained by the higher Australian
EBITDA
AUDm
Core Business - Financial update
Slide 10
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2007
2006
2005
years! 2004
Bank Debt at December 31
2003
DWL acquisition
reduction continues – lowest debt levels in 5
2002
8 7 6 5 4 3 2 1 0
Bank debt
AUDm
Core Business - Financial update
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2007
2006
2005
2004
2003
2002 Borrowing costs for the 6 months to December 31
some respite despite improving business performance
0.5 0.4 0.3 0.2 0.1 0
and debt repayment. Bank changed January 2008
AUDm
Bank costs
Core Business - Financial update
Slide 12
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2007
2006
business is off-shore
almost 90% of the total
shore group subsidiaries –
Exchange movements relate largely to consolidation of off
2005
2004
2003
impacts adversely again in current half year
2002
0 -1 Foreign exchange losses for the 6 months to December 31
-0.2 -0.4 -0.6 -0.8
Foreign exchange AUDm
AUD/USD rate 0.56 0.74 0.78 0.73 0.79 0.88
Core Business - Financial update
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2007
2006
Supplies/Service
improving
2005
EEG/DWL
2004
2003
Brain research
Business unit revenues
2002
Revenues by business for the 6 months to December 31
9 8 7 6 5 4 3 2 1 0
Sleep
AUDm
Business unit revenues
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14%
DWL 15% Europe
14%
Australia
MI 1%
Asia 13%
USA 43%
15%
DWL 14% Europe
14%
2007 H1
Australia
MI
1%
Asia 14%
USA 42%
DWL 14% 11%
Europe
12%
Australia
2008 H1
USA 43%
Asia 20%
Geographic revenues
2006 FY MI = Medical innovations Slide 15
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Slide 17
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CMP current sales
AUD30m
Brain Research
Global market
CMP current sales
Supplies AUD260m
Global market
CMP current sales
AUD250m
Sleep diagnostics
Global market
CMP current sales
AUD890m
Neuro diagnostics
Outlook – CMP annual sales compared to global market annual sales
Global market
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14 20 35
treatment
medical innovation
The valuation scenarios assume no value for the
commercial opportunities identified for SPAP™sleep
ASX average PE ratio Healthcare equipment and services (HES) sector PE ratio Leading company in HES sector PE ratio’s
32 45 80
$3.2m
12.5
142.5m cents cents cents cents
Market valuations – core business only
Shares on issue Annualised earnings Current share price CMP share price at ASX PE ratio CMP share price at sector PE ratio CMP share price at leading company sector PE ratio
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Outlook - technology	DWL	Blood Flow	Neuroscan Diagnostics	Sleep	Diagnostics	Neuro Neuro	Diagnostics Medical	Building a global medical diagnostic company Supplies	� With Compumedics’ core strategic edge being Sleep Diagnostics	� Leveraging this technology into related fields including Neurosciences,	Cardiology, Brain Research, Neuromedical supplies. Combined, these markets	have annual sales of more than AUD 1.2 billion.	� In 2002, Compumedics acquired US-based Neuroscan, the world’s leading	developer of brain research instruments.	� In 2004, Compumedics acquired German based DWL, which has enabled	Compumedics to expand its global operations into neuro and cardio diagnostics	and equipment for brain research.	� From 1999-2007, the company increased its sales from $9 million to almost $40	million, reflecting its product development initiatives, combined with its own strong	distribution network in the United States, which accounts for 43% of sales. 86%	of sales are exported world-wide.

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Neuvo
Nexus
Profusion PSG 3
Somte PSG
New Products
Outlook - technology
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(TCD)
technology markets
first discovered in the 1980s
and/or market position covering
3 of the key rapid growth, new generation medical
No other company has the world’s leading technology Clinical Sleep Transcranial Doppler Computerised Cognitive
• • • Neuroscience/EEG brain function
Outlook - technology
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Sleep Heart Health Study
Sleep Market
Outlook - technology
Pioneering of computerised PSG (CMP;1987) and CPAP treatment discovery [Sullivan, CE (1981), Sydney Australia] 40% of the Australian Clinical EEG Market and 70% of the Australian Sleep Diagnostics Market. 10% USA market share and growing in sleep diagnostics. Developed and installed Australia’s first computerised sleep centre at Melbourne’s Epworth Hospital in 1988.
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(TCD) Market
Bilateral Doppler , Emboli differentiation Full digital Doppler
Transcranial Doppler
● ● ●
Developed by Dr. Rune Aaslid in 1982, today DWL’s client DWL has a strong market share in Germany and well established distribution networks in Europe World’s firsts include :
Outlook - technology
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.
Computerised Cognitive Neuroscience/EEG brain function
Outlook - technology
Pioneered by Neuroscan in 1989 Commands 90% of the US Market for Research EEG applications and a significant market share worldwide. Sells its products in over 50 countries worldwide to over 1500 universities, corporate laboratories and national research centres. First to commercialise high-density EEG/EP recordings, electromagnet source locationisation, merging of multi-modal neuroimaging data. World opportunity - $1.2b size of the industry of which we have less than 3% market share
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Business Recap	� Profits triple from prior corresponding half-year despite	rising Australian dollar and the adverse impact this has on	revenues and margins	� Operating cash flow more than doubles compared to	prior corresponding half-year	� Cost vigilance to remain	� R&D product pipeline strong – new products ready to	rollout over calendar 2008	� Focus on restoring group growth and increasing	profitability, whilst pursuing break out sleep treatment	opportunity