Ann: FLLYR: FPH: FISHER & PAYKEL HEALTHCARE REPOR

• Release Date: 25/05/12 10:58
• Summary: FLLYR: FPH: FISHER & PAYKEL HEALTHCARE REPORTS FULL YEAR RESULTS
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FPH
25/05/2012 08:58
FLLYR

REL: 0858 HRS Fisher & Paykel Healthcare Corporation Limited

FLLYR: FPH: FISHER & PAYKEL HEALTHCARE REPORTS FULL YEAR RESULTS

FISHER & PAYKEL HEALTHCARE REPORTS FULL YEAR RESULTS
Auckland, New Zealand, 25 May 2012 - Fisher & Paykel Healthcare Corporation
Limited (NZSX:FPH, ASX:FPH) today announced that expanding clinical
applications for its medical devices and new products contributed to record
operating revenue of NZ$516.7 million for the year ended 31 March 2012.

The company reported net profit after tax of NZ$64.1 million, compared to
NZ$52.5 million for the prior year.  The prior year result included one-off
non-cash deferred tax charges of NZ$11.5 million.

In constant currency terms, and excluding the prior year deferred tax
charges, the company's net profit after tax grew 23%, primarily as a result
of revenue growth, disciplined control of expenses and other efficiencies.

Operating revenue
The company derived approximately 52% of its operating revenue in US dollars.
 In US dollars, the company's respiratory and acute care product group (RAC)
operating revenue increased by 18% and obstructive sleep apnea (OSA) product
group revenue increased by 7%, over the prior year.

"Strong growth in our RAC product group was driven by rapidly growing
acceptance of our products which are used in applications outside of
intensive care ventilation, with operating revenue from consumables used in
those new applications increasing 24% in constant currency terms", commented
Fisher & Paykel Healthcare's CEO, Mr Michael Daniell.

"In our OSA product group, constant currency flow generator revenue growth of
18% over the prior year reflected strong growth from our ICON range.  Mask
revenue reduced 4% in constant currency terms, but began to improve late in
the year, following the launch of the first of a number of innovative new
masks".

Dividend
The company's directors have approved a final dividend for the financial year
ended 31 March 2012 of 7.0 NZ cents per ordinary share (2011: 7.0 cents),
carrying full imputation credit based on a tax rate of 28%.  For New Zealand
resident shareholders that results in a gross dividend of 9.722 cents per
ordinary share.  Eligible non-resident shareholders will receive a
supplementary dividend of 1.235 NZ cents per ordinary share.  The final
dividend will be paid on 6 July 2012, with a record date of 22 June 2012, and
ex-dividend dates of 18 June 2012 for the ASX and 20 June 2012 for the NZSX.

The company offers a dividend reinvestment plan (DRP), under which eligible
shareholders may elect to reinvest all or part of their cash dividends in
additional shares.  A 3% discount will be applied when determining the price
per share of shares issued under the DRP and will be applied in respect of
the 2012 final dividend and future dividends, until such time as the
directors determine otherwise.

Research & Development, Selling, General & Administrative expenses
Research and development (R&D) expenses increased by 7% over the prior year
to NZ$42.0 million, representing 8.1% of operating revenue.

The company continued to expand its product and process research and
development activities, and current new product projects include OSA masks,
flow generators, humidifier systems and respiratory and acute care
consumables.
Selling, general and administrative (SG&A) expenses increased 1% to NZ$142.6
million, or 6% in constant currency terms, as the company continued to expand
its operations and its sales teams in the North America, Europe and
Asia-Pacific regions.

Capacity Expansion
During the year the company invested NZ$67.5 million of capital expenditure,
which included equipment for increased manufacturing capacity, new product
tooling, replacement equipment and NZ$47.4 million for construction of the
third building on its Auckland site.

The ramp up of manufacturing of consumable products at the company's facility
in Tijuana, Mexico progressed as expected with an increasing quantity and
range of the company's products now manufactured there.

Foreign Exchange Hedging
To protect the company from exchange rate volatility, the company had in
place at 31 March 2012 a mix of foreign exchange contracts and collar
options, up to five years forward, with a face value of approximately NZ$450
million.  These instruments hedge the company's net exposure.  At the
commencement of the 2013 financial year, the company had in place
approximately 64% cover for the US dollar and approximately 65% cover for the
Euro at average rates of approximately 0.75 US dollars and 0.46 Euros to the
New Zealand dollar.

The company closed out foreign exchange contracts in the 2010 and 2012
financial years, which will contribute NZ$17.8 million in the 2013 financial
year and NZ$21.3 million in the 2014 financial year to operating profit but
not to cash flow, as the cash was received in the 2010 and 2012 financial
years. Those instruments were progressively replaced with new instruments
that form part of the company's current foreign exchange hedging.

Outlook for FY2013
"We expect our underlying revenue growth to begin to accelerate this year,
particularly in the second half, as a number of new products, including new
OSA masks, are introduced around the world.  We also anticipate a
continuation of strong growth in demand for our products, which are used in a
broad range of respiratory and surgical applications.

We expect to continue to improve constant currency operating margin, with
faster growth in higher margin differentiated products, cost reductions and
other efficiencies.

Exchange rates have continued to be very volatile. For the 2013 financial
year, based on an exchange rate range of 0.75 to 0.80 for the NZD:USD for the
remainder of the year, we expect our operating revenue to be in the range of
NZ$540 million to NZ$560 million and net profit after tax to be in the range
of NZ$62 million to NZ$70 million", concluded Mr Daniell.

Financial Statements and Commentary
Attached to this news release are condensed NZ dollar financial statements
and commentary. For convenience the income statement has been translated into
US dollars.  The US dollar financial statement is non-conforming financial
information, as defined by the NZ Financial Markets Authority.

The company's financial statements for the year ended 31 March 2012 and the
comparative financial information for the year ended 31 March 2011 have been
prepared under the New Zealand equivalents to International Financial
Reporting Standards (NZ IFRS).

A constant currency analysis is also included. A constant currency income
statement is prepared each month to enable the board and management to
monitor and assess the company's underlying financial performance without any
distortion from changes in foreign exchange rates.  The constant currency
data provided is an estimate of the changes in the main income statement
items after excluding the impact of movements in foreign exchange rates,
hedging results and balance sheet translations.  The data is based on the NZ
dollar income statements for the relevant periods which have all been
restated at the budget foreign exchange rates for the 2012 financial year.

The constant currency analysis is non-conforming financial information, as
defined by the NZ Financial Markets Authority, and has been provided to
assist users of financial information to better understand and track the
company's financial performance without the impacts of spot foreign currency
fluctuations and hedging results.

Full Year Results Conference Call
Fisher & Paykel Healthcare will host a conference call today to review the
results and to discuss the outlook for the 2013 financial year.  The
conference call is scheduled to begin at 10:00am NZST, 8:00am AEST (6:00pm
USEDT) and will be broadcast simultaneously over the Internet.

To listen to the webcast, access the company's website at www.fphcare.com.
Please allow extra time prior to the webcast to visit the site and download
the streaming media software if required.  An online archive of the event
will be available approximately two hours after the webcast and will remain
on the site for two weeks.

To attend the conference call, participants will need to dial in to one of
the numbers below at least 5 minutes prior to the scheduled call time and
identify yourself to the operator.  When prompted, please quote the
conference code of:  76732439.

New Zealand Toll Free 0800 452 569 USA Toll Free 1866 242 1388
Australia Toll Free 1800 354 715 Hong Kong Toll Free 800 968831
United Kingdom Toll Free 0808 234 7860 International +61 2 8823 6760

An audio replay of the conference call will be available approximately 2
hours after the call and will be accessible for two weeks by dialing one of
the numbers below.  When prompted please enter the conference code of:
76732439.

New Zealand Toll Free 0800 445 136 USA Toll Free 1866 214 5335
Australia Toll Free 1800 766 700 Hong Kong Toll Free 800 901596
United Kingdom Toll Free 0800 731 7846 International +61 2 8235 5000

About Fisher & Paykel Healthcare
Fisher & Paykel Healthcare is a leading designer, manufacturer and marketer
of products and systems for use in respiratory care, acute care and the
treatment of obstructive sleep apnea. The company's products are sold in over
120 countries worldwide.  For more information about the company, visit our
website www.fphcare.com.

Contact: Michael Daniell MD/CEO on +64 9 574 0161 or Tony Barclay CFO on +64
9 574 0119.
End CA:00223255 For:FPH    Type:FLLYR      Time:2012-05-25 08:58:19