A very very interesting presentation.... Key takeaways for me,...

A very very interesting presentation....

Key takeaways for me,

-Each machine sells for $6500 to $7500 USD, 65% gross profit margins.

-Each machine, when they sell it direct will generate around $3000 AUD per annum in consumable revenue. One poster above wondered if China could sell generic consumables? The answer is No, if any hospital uses any consumable not from NAN the warranty is voided and their legal protection goes out the door as the Trophon wasn't used as it should have been.

-"From a competitors perspective it's really the only successful automated machine out there in the market place today." So a great chance to create a monopoly with recurring, high margin, annuity stream income from every machine.

- Addressable market of 40 000 units each in North America, Europe and Middle East, Asia Pacific... have captured around 35% of the market in North America but barely scratched the surface in Europe and Middle East or Asia Pacific.... Europe growing very strongly (England predicted at 100%, Germany and France also doing well) albeit from a low base. Mandates for high level disinfection are becoming more and more ubiquitous.

-Different selling models for different markets.

-This is the big one..... When Nanosonics sells the Trophon direct they earn around $3000 AUD every year from consumables although when they sell it through a distributor they earn around $1500 AUD every year.... from 1st of July 2019 instead of earning $1500 a year for every Trophon that GE has sold they will start earning $3000, "the total installed base in The United States will come to Nanosonics for ALL the consumables" .... This is going to have a major impact on the top and bottom line.

-That base in North America was 14 100 at December 31st 2017, by July 1st 2019 I estimate it will be at 19 200 (adding 1700 every half).... 19 200 x 3000 will give Nanosonics $57 600 000 in consumable revenues from North America alone (at I believe 90% gross profit margins)

-From FY19 to the end of FY20, expect to see 2nd generation of Trophon and 1 or 2 new products to leverage existing Trophon sales channels (which are currently being expanded and developed.)

An amazing future ahead.