© 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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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
VISION
We will make better healthcare solutions more accesible to humanity.
MISSIONImprove healthcare by optimizing and sharing medical
technologies with the world
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%
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
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
Our Brand pillars
Thoroughly understand and quickly respond to the needs of the medical community
Insightful
Our Brand pillars
Adopt and advances key technologies and makes them more relevant to the market
Innovative
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
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
Diagnostic In-Vitro systems
HematologyHematology BiochemistryBiochemistry 5 part Hematology
5 part Hematology
Immuno-assay
Immuno-assay
Veterinary Eq.
Veterinary Eq.
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
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
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.
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.
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™) .
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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 .
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
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
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)
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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
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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%
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
Global Supply Chain -- Efficient Production
Shenzhen Main Production Facility 110.000 m2 New Production Facility in Nanjing
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