nordion corporate presentation_2014_q1
TRANSCRIPT
www.nordion.com
NORDIONCorporate Presentation
March 7, 2014
2
Caution on Forward Looking Statements
This presentation contains forward-looking statements, within the meaning of applicable securities laws, including under applicable Canadian
securities laws and the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These statements can
be identified by expressions of belief, expectation or intention, as well as those statements that are not historical fact. The words “may”,
“will”, “could”, “should”, “would”, “outlook”, “believe”, “plan”, “anticipate”, “estimate”, “expect” and similar words and expressions are
also intended to identify forward-looking statements. Forward-looking statements are necessarily based on estimates and assumptions made
by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other
factors that we believe are appropriate in the circumstances, but which are inherently subject to significant business, political, economic and
competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected
in the forward-looking statements. Accordingly, this presentation is subject to the disclaimer and qualified by the assumptions, qualifications
and risk factors referred to in our 2013 Annual Information Form (AIF).
We caution readers not to place undue reliance on the Company’s forward-looking statements, as a number of factors could cause our actual
results, performance or achievements to differ materially from any forward-looking statements. We do not assume any obligation to update or
revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required
by applicable law.
3
About Nordion
Delivering quality products to our global customers for more than 60 years, our product portfolio includes:
• Sterilization Technologies
• Medical Isotopes
Nordion is a health science company that provides market-leading products used for the prevention, diagnosis and treatment of disease.
4
A Global Company
APPROXIMATELY
400 EMPLOYEESSUPPLY OVER
500 CUSTOMERSAROUND
30 PRODUCTSACROSS MORE THAN
40 COUNTRIES
64%UNITED STATES
23%ROW
8%EUROPE
5%CANADA
F2013 REVENUES BY REGION - $232.8M*
*Revenues and regional breakdown include Targeted Therapies business, which was divested in July 2013 to BTG plc.
5
2011 2012 20130
50
100
150
200
250
300
108.7 95.4 96.1
122.8101.0 100.3
42.6
48.5 36.3
2013 Financial Highlights
Revenue Trend (US$ Millions)
* In July 2013, Nordion divested its Targeted Therapies business to BTG plc
Medical Isotopes Targeted Therapies*Sterilization Technologies
6
2011 2012 20130
20
40
60
80
100
120
46.1 39.0 35.3
38.3
29.425.9
12.7
14.1
3.0
2013 Financial Highlights
Segment Earnings Trend (US$ Millions)
Medical Isotopes Targeted Therapies*Sterilization Technologies
Excludes corporate segmented loss* In July 2013, Nordion divested its Targeted Therapies business to BTG plc
7
Q1 2014 Results
2013 20140.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
16.4 19.2
25.2
51.712.0
Targeted TherapiesSterilization Technologies Medical Isotopes
Segmented Revenue (US$ millions)
Segmented Earnings* (US$ millions)
* Excludes corporate segment
2013 20140.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
3.57.1
6.9
25.1
1.4
Q1 Q1
8
Q1 2014
Nordion participates at the 2013 International Meeting on Radiation Process in Shanghai, China
November January
December January
Nordion posted its 2012 Annual Report on Toxic Substance Reduction
Nordion publishes its fiscal 2013 Annual Report and files associated disclosure documents.
Nordion signs customer contracts to supply strontium-82 and cobalt.
Q1 2014 Timeline
9
Leading Products in Global Markets
POTENTIAL >
PRIORITY >
STERILIZATION TECHNOLOGIES
ADVANTAGE >
Optimize Medical Isotopes business• Secure long-term supply• Maintain customer relationships
Maintain Sterilization business; selectively invest in growth:• Geographic expansion• New applications
• Global leader in cobalt-60• Significant barriers to entry• Solid cash flow and gross margins• Recurring revenue base
• A global provider in processing, packaging, & delivery
• Extensive regulatory expertise and logistics & distribution network
Approximately 40% of single-use medical products worldwide are sterilized using gamma sterilization technologies
Over 10,000 hospitals worldwide use radioisotopes in medical procedures with about 90% being for diagnosis.
MEDICAL ISOTOPES
10
Specialty Isotopes: Sterilization Technologies
Gamma sterilization is focused on the prevention of disease
Co-60 is used to sterilize medical devices, instruments and supplies and food
Customers of Co-60 include contract sterilization service providers and medical device and product manufacturers
The Nordion Gamma Centre of Excellence is a world class applied research and specialty gamma processing facility to promote and expand the use of gamma globally
Nordion manufactures Co-60 irradiation sources, and designs, constructs and maintains commercial gamma sterilization systems
11
MARKET MIX PRODUCTS DRIVERS
80%
10%
• Stents• Patches• Tissue• Regen medicine
+ Aging population+ Enhance devices+ Leverage drugs+ Stem cell research
10%
Sterilization Market Segmentation
MEDICAL & SURGICAL
BIO-ACTIVE DEVICES
FOOD SAFETY
• Syringes• Catheters• Drapes, gowns• Sutures, gloves
+ Aging population
+ Min invasive surgery
+ Smaller devices
+ Material
• Fruits & vegetables• Spices• Meat and poultry• Ready To Eat (RTE)
+ FDA labeling
+ USDA FEA
+ Food safety concerns
10%
80%
12
Specialty Isotopes: Medical Isotopes
• Medical isotopes are used to prevent, diagnose and treat disease
• Main isotope supply sources are nuclear reactors and cyclotrons
• Primary product is Mo-99, which decays for use in Technetium-99 (Tc-99m) generators, used in imaging to diagnose heart disease and cancers
• Other Key Reactor Isotopes:– Xenon-133 (Xe-133), used in lung scans;
– Iodine-131 (I-131), used to treat hyperthyroidism, thyroid cancer and non-Hodgkin’s lymphoma;
– Iodine-125 (I-125), used to treat prostate cancer;
– Yttrium-90 (Y-90), used to treat liver cancer.
• Key Cyclotron Isotopes:– Iodine-123 (I-123), used to diagnose thyroid disease;
– Strontium-82 (Sr-82), used to manufacture rubidium-82 generators, which are used in imaging to diagnose heart disease
– Thallium-201 (Tl-201), used to diagnose and assess risk of coronary artery heart disease;
– Palladium-103 (Pd-103), used to treat prostate cancer;
– Indium-111 (In-111) and Gallium-67 (Ga-67) (both used to diagnose infection and cancer) at our Vancouver facilities
13
Medical Isotopes (Mo-99) Supply Chain
• Established, reliable facilities providing high-quality isotopes to global customers• Specialty skills in operations, regulatory affairs and global logistics
Irradiation of HEU targets to produce crude
isotopes
NUCLEAR REACTORS
Purification of Mo-99 and
distribution to global radiopharmaceutical
manufacturers
MEDICAL ISOTOPE PROCESSORS
Tc-99m Generator
manufacturing and distribution to radiopharmacies
RADIOPHARMACEUTICAL MANUFACTURERS
Unit dose compounding and
distribution to hospital/departments
RADIOPHARMACIESAND HOSPITALS
Critical physiological diagnosis enabling
informed therapeutic decisions
PHYSICIANSAND PATIENTS
14
Nordion Environmental, Health,and Safety (EH&S) Program
• Creating a workplace that enriches the health and well-being of Nordion employees
• Demonstrating Environmental, Health, and Safety (EH&S) regulatory excellence
• Improving EH&S performance – continually
• Managing EH&S with excellence
Recipient of Canada’s Safest Employers - Gold level award
October, 2013
15
Nordion Environmental, Health,and Safety (EH&S) Program
• Implementing measures in the design and operation of all of our facilities to keep radiation dose received by workers and the public ALARA (as low as reasonably achievable)
• Implementing an ISO 14001-based environmental management (EMS) system at our Ottawa site
• Establishing EH&S objectives and targets annually to continually improve our performance
• Maintaining - and building on - a comprehensive training program for employees and contractors
• Engraining EH&S excellence into the Nordion culture
• Investing in a world class approach to EH&S
ISO 14001: 2004 certified
Recipient of the Government of Canada 2007 ENERGY STAR ® Market Transformation Award
Practitioner of LeanSigma, a methodology used to continually improve processes
Recipient of an unprecedented ten-year license renewal from the Canadian Nuclear Safety Commission (CNSC)
16
In the Community
Other Programs:
• Employee Giving Program - Nordion makes donations to not-for-profit organizations nominated by employees
• Proud sponsor of the Gala for Research,
an annual black-tie event to support the Ottawa Hospital Research Institute, the research arm of The Ottawa Hospital
Ride the RideauSponsor of Ride the Rideau since its inauguration in 2010, Nordion has helped to raise over $6.4 million for cancer research at The Ottawa Hospital Research Institute.
17
The talented, dedicated and resilient people that make up Nordion share a single purpose:
Maintain a global leadership position in our key markets
Build value for shareholders through the execution of our strategic priorities
Be a trusted, world-class provider of healthcare products to our customers
Business Outlook
www.nordion.com
Find out more at www.nordion.com
Follow us at http://twitter.com/NordionInc