mindray medical international. east going west · 29 1q11 international market highlights 1q11...

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© 2010 Mindray Confidential Mindray Medical international. East going West Mr. Anders Bang, Managing Director Mindray Medical Germany GmbH Frankfurt, May 17, 2011

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Page 1: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

© 2010 Mindray Confidential

Mindray Medical international.

East going West

Mr. Anders Bang, Managing Director

Mindray Medical Germany GmbH Frankfurt, May 17, 2011

Page 2: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

“Made in China”

Page 3: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Rapid Change

Shen Nan Road, 1983 Shen Nan Road, 2009

Page 4: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

“Made in China”

Page 5: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

44

Who We Are

Mindray is a leading developer, manufacturer and marketer of medical devices worldwide, creating value and driving growth through:

Meeting the needs of hospitals and health systems in various geographies around the world

Constant innovation driven by a vertically integrated business model and a world class R&D operation

A global player, with established leadership position in the fast growing China market

Page 6: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

VISION

We will make better healthcare solutions more accesible to humanity.

MISSIONImprove healthcare by optimizing and sharing medical

technologies with the world

Page 7: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Milestones

Page 8: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Founded in Shenzhen, China in 1991

Listed on NYSE since 2006New Head quarters 2010

Page 9: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

8

Ot hers1%

Emerg ing M arket

3 2 %

D evelo p ed M arket

2 5%

C hina4 2 %

Revenue Growth and Breakdown by Region

2003 Total Revenues: US$ 59mm

2010 Total Revenues: US$ 704mm

A Global Player in Medical Technology

Others5%Emerging 

Market 12%

Developed Market8%

China75%

Page 10: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Key Figures

Geographic segmentation as a percentatge of total revenue

2009

Product segmentation as a percentage of total revenue 2009

Note: The market cap comparison is based on the closing values at NYSE on August 31, 2010

Market cap in USD Billion

Page 11: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

To earn the respect and trust of our customers world wide by continuously finding better solutions across all aspects of our business and to create a performance-driven culture that values integrity and constant improvement.

Core Values

Page 12: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Our Brand pillars

Page 13: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Our Brand pillars

Thoroughly understand and quickly respond to the needs of the medical community

Insightful

Page 14: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Our Brand pillars

Adopt and advances key technologies and makes them more relevant to the market

Innovative

Page 15: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Our Brand pillars

AccessibleEasy to use, affordable to own and reliable to operate

Page 16: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

A global Provider of clinical solutions

Medical imaging systemsMedical imaging systems In Vitro Diagnostic Systems

In Vitro Diagnostic Systems

Patient Monitoring and Life support products

Patient Monitoring and Life support products

Page 17: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Medical imaging Systems

Color Ultra sound systems

Color Ultra sound systems

Portable ultra sound systems

Portable ultra sound systems

Black & white ultra sound

systems

Black & white ultra sound

systems

MRI and digital xray imaging

MRI and digital xray imaging

Page 18: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Diagnostic In-Vitro systems

HematologyHematology BiochemistryBiochemistry 5 part Hematology

5 part Hematology

Immuno-assay

Immuno-assay

Veterinary Eq.

Veterinary Eq.

Page 19: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Patient monitors and Clinical information systems

Vital signs monitors

Vital signs monitors

Compact MonitorsCompact Monitors

Modular Multiparameter

Monitor

Modular Multiparameter

Monitor

Central systems and

Telemetry

Central systems and

Telemetry

Defibrillation and transport

monitoring

Defibrillation and transport

monitoring

Page 20: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Patient Monitoring and Life support products

Anesthesia Machines

Anesthesia Machines

Anesthesia work stations

Anesthesia work stations

Operating Tables

Operating Tables

Operating Room lamps

Operating Room lamps Roof pendantsRoof pendants

Page 21: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Operating Room Solution

Complete integrated clinical solutions

Page 22: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Product Road Map

Page 23: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

R&D Center

Shenzhen R&D Center responsible for new products planning throughout the global R&D system.

Beijing R&D Center works on key technologies in ultrasound, hematology and reagents.

Page 24: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

R&D Center

Nanjing R&D Center works on technologies in surgical lights & table, ceiling supply units and medical beam systems.

Seattle R&D Centerworks on ultrasound and IVD technological innovation.

Page 25: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Mahwah R&D Centerdevelops patient monitoring equipment.

R&D Center

Stockholm R&D Center develops and fine tunes advanced technologies in gas measurement (Artema AION™) .

Page 26: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Our products and solutions

Page 27: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

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• A world-class organization rooted in the world’s fastest growing market• China’s first domestic brand in three product areas, today backed by

international research centers in U.S. and Europe• China’s most comprehensive sales and service infrastructure, covering

all major cities from local sales offices with distributors covering vast rural and remote areas

• High growth track record in international markets• Through organic expansion programs and acquisition, we build direct

and indirect sales infrastructure in the international markets to increase penetration into hospitals and other points of sale around the world

• Long-term focus on growth, profitability and cash generation

Investment Highlights

59 85 132 164

294

548634

704

35 53 89 133 147 171

16 22 56

216 245 253373

434

23130

100200300400500600700800

2003 2004 2005 2006 2007 2008 2009 2010

RevenueNet income*Cash & cash equivalents and short‐term/restricted investments US

$ mm

* non-GAAP figures which exclude share-based compensation expense and acquired intangible assets amortization expense, in-progress research and development expenses, realignment costs - post acquisition, as well as income from early termination of contract, all net of related tax impact .

Page 28: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

2727

1Q11 Highlights

Achieved overall sales of $180.9 million, up 24.0% from 1Q10

International sales were robust at $108.5 million for the quarter, an increase of 29.6% as compared to $83.7 million in 1Q10. Both emerging markets and developed markets contributed significantly this quarter

Solid China sales growth of 16.6% versus 1Q10

Excluding the tax benefit of $7.6 million and $8.6 million recognized in the first quarter of 2011 and 2010 respectively , 1Q11 non-GAAP net income increased 9.9% year-over-year to $34.7 million

EBITDA in the first quarter of 2011 was $40.8 million, a year-over-year increase of 5.2%

Generated $32.3 million net operating cash during the quarter

Introduced three new products during the quarter, including the A5 anaesthesia machine, the BeneHeart D3 defibrillator and the DP-50 black and white ultrasound

Page 29: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Mindray a truly global company

Page 30: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

2929

1Q11 International Market Highlights

1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Emerging markets were the key drivers of growth in the quarter

Delivered over 40% year-over-year growth in the Latin America and Asia Pacific, as well as over 20% growth in Eastern Europe and the CIS region resulting from our consistent execution of expansion strategies in international channels

Developed markets demonstrated over 25% year-over-year growth, far surpassing the growth rates of recent quarters in the range of teens

Western Europe achieved more than 40% year-over-year growth, primarily as a result of our effort to restructure the sales team in the region back in 2010, increased direct sales, as well as a lower sales base comparison versus last year

New product launches in the US such as the M7, the V series and the A5 anesthesia system received positive feedback from the market

Page 31: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

476 515 568658

759866

1097 1129

14541612

0

400

800

1200

1600

2000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E

30

)Government spending on healthcare (2000 to 2011)

Growth Catalysts in China---Macro Environment

Source: Morgan Stanley Research; MOH

RMB bn

15% CAGR (2000-09)

RMB bn

)Total national spending on healthcare (2000 to 2009)

24% CAGR (2000-11)

Page 32: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

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Sustainable Market Leadership in China

Strong Brand Recognition Brand loyalty among domestic

hospitals across China High-quality products and

customer support services

Extensive Sales & Service Network 32 sales and sales support offices 1000+ sales and service staff 2000+ distributors (including

1200+ exclusive distributors)

Sales Force Management Low turnover rate Effective incentive scheme

Strong Brand Recognition Brand loyalty among domestic

hospitals across China High-quality products and

customer support services

Extensive Sales & Service Network 32 sales and sales support offices 1000+ sales and service staff 2000+ distributors (including

1200+ exclusive distributors)

Sales Force Management Low turnover rate Effective incentive scheme

Urumchi

Shenyang

DalianBeijing

QingdaoJinanTaiyuan

ZhengzhouXi’anLanzhou

Shanghai

Nanjing

Hangzhou

Fuzhou

HefeiWuhan

NanchangChangsha

Guangzhou ShenzhenNanning

Chengdu

Chongqing

Kunming

Guiyang

Changchun

ShijiazhuangTianjin

Harbin

Suzhou

Huhehaote

Haikou

Page 33: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

3232

Market Presence in China

Patient Monitoring Devices & Anesthesia Machine

Hematology Analyzers

Biochemistry Analyzers

Ultrasound Systems

Other domesticbrands 9%

Source: Frost & Sullivan research, market data as of 2009

Foreignbrands44%

Other domesticbrands 22%

Mindray34%

Foreignbrands50%

Other Domesticbrands 19%

Mindray31%

Mindray18%

Otherdomestic

brands 24%

Foreignbrands58%

Mindray14%

Foreignbrands77%

Page 34: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

3333

1Q11 Domestic Market Highlights

1Q11 China sales grew 16.6% versus 1Q10 with non-tender or regular sales grew 23.1% year-over-year

Initiatives in China are yielding positive results to gradually restore sales growth

More hospital procurement activities happened as a result of the government’s renewed focus on county level hospitals. These are mostly in the form of direct government funding to hospitals

Page 35: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Global Supply Chain -- Efficient Production

Shenzhen Main Production Facility 110.000 m2 New Production Facility in Nanjing

Page 36: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

100% Mindray Products

Metal work shop

Production Line laboratory Eq.

Page 37: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Quality control

Patient Monitoring Production

System verification anesthesia machines

Page 38: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

World-class, heavy invested labs functioning as a reliable platform for developing/ testing products and obtaining approvals.

Standardized labs: • Reliability test lab (testing lab with

CNAS, UL, ETL,TUV and CSA approvals)

• Hematology traceability lab (calibrating lab with CNAS approval)

Specialty labs:• Acoustic output• Patient monitoring parameters• Anesthesia and ventilation• Hematology• Clinical chemistry• DR• Power supply

Laboratories

EMC

Page 39: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Clinical and Product Training

Page 40: Mindray Medical international. East going West · 29 1Q11 International Market Highlights 1Q11 international sales were robust at $108.5 million, an increase of 29.6% year-over-year

Thank you very much, Dankeschön!