Ann: HALFYR: FPH: FPH Reports Half Year Profit Up

• Release Date: 22/11/12 11:01
• Summary: HALFYR: FPH: FPH Reports Half Year Profit Up 18%
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FPH
22/11/2012 09:01
HALFYR

REL: 0901 HRS Fisher & Paykel Healthcare Corporation Limited

HALFYR: FPH: FPH Reports Half Year Profit Up 18%

FISHER & PAYKEL HEALTHCARE REPORTS HALF YEAR PROFIT UP 18%
Auckland, New Zealand, 22 November 2012 - Fisher & Paykel Healthcare
Corporation Limited (NZSX:FPH, ASX:FPH) today reported net profit after tax
of NZ$33.3 million for the six months ended 30 September 2012, an increase of
18% compared to the first half last year.

In constant currency terms, the company's operating profit grew 46%,
primarily as a result of revenue growth, improved gross margins and operating
efficiencies.

Operating revenue
Operating revenue was a record NZ$266.9 million, which was 6% above the same
period last year, or 8% growth in constant currency terms.

The company's respiratory and acute care (RAC) product group operating
revenue increased by 11% and obstructive sleep apnea (OSA) product group
revenue increased by 3% in constant currency  terms.

"Strong growth in our RAC product group was driven by ongoing growth in
acceptance of our respiratory humidification systems which assist to improve
patient care in a wide range of applications, including invasive ventilation,
non-invasive ventilation, oxygen therapy and humidity therapy", commented
Fisher & Paykel Healthcare's CEO, Mr Michael Daniell.  "Growth in revenue
from new applications beyond invasive ventilation was particularly
encouraging, with consumables revenue from those increasing 20% in constant
currency.

"In our OSA product group, revenue for our mask range grew 5% in constant
currency terms, reflecting a ramp-up in growth during the half following the
introduction of our new Pilairo nasal pillows and Eson nasal masks.  Customer
response to both masks has been very positive, with constant currency mask
revenue growth of 11% in the second quarter.  Revenue for our ICON flow
generator range grew 5% in constant currency over the first half last year,
offset by the expected decline in revenue from our legacy SleepStyle range."

Dividend
The company's directors have approved an interim dividend for the financial
year ending 31 March 2013 of 5.4 NZ cents per ordinary share (2012: 5.4
cents), carrying full imputation.  For New Zealand resident shareholders that
equates to a gross dividend of 7.5 cents per ordinary share.  Eligible
non-resident shareholders will receive a supplementary dividend of 0.953 NZ
cents per ordinary share.  The interim dividend will be paid on 14 December
2012, with a record date of 30 November 2012 and ex-dividend dates of 26
November 2012 for the ASX and 28 November 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 2013 interim 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
comparable period to NZ$21.3 million, representing 8% 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 6% to NZ$77.0
million, or 7% 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.  In September we acquired selected assets from our
distributor in South Korea and established our own sales operation.

Capacity Expansion
During the half year, the company invested NZ$40.9 million in capital
expenditure, which included equipment for increased manufacturing capacity,
new product tooling, replacement equipment and NZ$27.4 million for
construction of the third building on its Auckland site.

The increase in manufacturing of consumable products at the company's
facility in Tijuana, Mexico continued, 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 30 September 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 30
September 2012, the company had in place for the second half of the 2013
financial year approximately 95% cover for the US dollar and approximately
89% cover for the Euro, at average rates of approximately 0.76 US dollars and
0.49 Euros to the New Zealand dollar.

Outlook for FY2013
"We expect constant currency revenue growth to increase further in the second
half, as new products and applications continue to gain traction.

For the 2013 financial year, assuming current exchange rates for the
remainder of the year, we expect our operating revenue to be in the range of
NZ$545 million to NZ$555 million and net profit after tax to be in the range
of NZ$69 million to NZ$72 million.  That represents a three to four million
dollar improvement on the guidance we provided at our Annual Shareholders'
meeting in August", 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 six months ended 30 September 2012
and the comparative financial information for the six months ended 30
September 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 2013 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.

Half Year Results Conference Call
Fisher & Paykel Healthcare will host a conference call today to review these
results and to discuss the outlook for the remainder of the 2013 financial
year.  The conference call is scheduled to begin at 10:00am NZDT, 8:00am AEDT
(4:00pm USEST) 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:00230083 For:FPH    Type:HALFYR     Time:2012-11-22 09:01:05