Nanosonics : Appendix 4D and Half Year Report

									Appendix 4D
				Nanosonics Limited
				Half Yearly Report
	ABN: 11 095 076 896			Reporting period: 31 December 2021		Previous period: 31 December 2020
only
	Results for announcement to the market
					31 December 31 December
					2021		2020		Movement
					$'000	$'000		%	$'000
	Revenue from ordinary activities	60,646		43,148	up	41%	17,498
	Profit from ordinary activities before tax	3,261		203	up	1,506%	3,058
use	Profit from ordinary activities after tax attributable
to members		3,875		1,464	up	165%	2,411
Net profit for the period attributable to members	3,875		1,464	up	165%	2,411
				Cents	Cents			Cents
Basic earnings per share		1.29		0.49	up	163%	0.80
Dividend per share		-		-
	Net tangible assets per share¹		42.47		38.73	up	10%	3.74
personal

¹ For the period ended 31 December 2021 and prior period, the Company has included the right-of-use asset in the calculation of the net tangible asset backing per ordinary security.

The information in this report should be read in conjunction with the 30 June 2021 Annual Report.

Record date for determining entitlements to the dividend and dividend payment date are not applicable. There were no distributions of dividends during the period or in the previous corresponding period. No dividend reinvestment plans were in operation during or since the half-year.

During the period, Nanosonics (Shanghai) Co Ltd was formed as a wholly owned subsidiary. There were no entities over which control has been gained or lost during the period.

The Group has no associates or joint venture entities.

The Group applies International Financial Reporting Standards in compiling the financial report of its wholly-owned subsidiaries, Nanosonics Europe GmbH, Nanosonics, Inc., Nanosonics Canada, Inc., Nanosonics Europe Limited, Nanosonics UK Limited, Nanosonics Japan K.K., Nanosonics (Shanghai) Co Ltd, Nanosonics Investments Pty Ltd and Saban Ventures Pty Ltd.

The financial statements included in the half yearly report are not subject to audit dispute or qualification.

ForThe information set out above and in the attached half year report is provided to the ASX in accordance with a resolution of the Directors.

Attachments:

The Half-Yearly Report of Nanosonics Limited for the period ended 31 December 2021 is attached. On behalf of the directors

Geoff Wilson

Director

Sydney, 22 February 2022

For personal use only

HALF-YEARLY REPORT

Given to the ASX under listing rule 4.2A.

31 DECEMBER 2021

The information in this report should be read in conjunction with the 30 June 2021 Annual Report.

Directors' report

For the half-year ended 31 December 2021

Your Directors present their report, together with the interim consolidated financial statements and notes for Nanosonics Limited (the Company) and its subsidiaries (together the Group) for the half-year ended 31 December 2021, and the Auditor's review report thereon.

onlyPrincipal activities

During the year, the principal activities of the Group consisted of:

• Manufacturing and distribution of the trophon® ultrasound probe disinfector and its associated consumables and accessories; and

• Research, development and commercialisation of infection control and decontamination products and related technologies.

Further information is included in the review of results and operations below and in the financial statements.

useOther than as discussed in this report, there have been no significant changes in the nature of these activities for the half-year ended 31 December 2021.

Directors

During the period and to the date of this report, the Board of Nanosonics Limited comprised of non-executive directors, Maurie Stang (Chairman), Steven Sargent (Deputy Chairman), David Fisher, Marie McDonald, Geoff Wilson, Lisa McIntyre and executive director, Michael Kavanagh (CEO & President/Managing Director).

Review of results and operations

For personal

Revenue from contracts with customers Cost of sales

Gross profit

Selling and general expenses Administration expenses Research and development expenses Other income

Other losses - net Finance income Finance expense

Profit from ordinary activities before tax Income tax benefit

Net profit for the period attributable to members

Cash and cash equivalents

Net assets

31 December 2021	31 December 2020
$'000	$'000
60,646	43,148
(14,243)	(8,908)
46,403	34,240
(22,260)	(17,819)
(9,691)	(7,619)
(10,748)	(7,632)
125	73
(478)	(1,241)
140	366
(230)	(165)
3,261	203
614	1,261
3,875	1,464

31 December 2021	30 June 2021
$'000	$'000
91,931	96,027
140,139	135,568

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Directors' report

For the half-year ended 31 December 2021

Sales for the period were $60,646,000. This compares with sales of $43,148,000 in the prior corresponding period. The global installed base of trophon increased by 1,410 units, growing to approximately 28,160 units. In North America, the installed base of trophon increased by 1,200 units in the half-year to 31 December 2021 to approximately 24,680 units.

onlyGross profit was $46,403,000 compared with $34,240,000 in the prior corresponding period. Gross margin as a percent of sales was 76.5% compared with 79.4% in the prior corresponding period.

Selling, general and administration expenses were $31,951,000, an increase of $6,513,000 compared with $25,438,000 in the prior corresponding period. The increase is mainly to support continued growth in North America, as well as significant investment in operational infrastructure for market expansion activities in Europe and Asia Pacific.

useResearch and development expenses for the half-year to 31 December 2021 were $10,748,000, an increase of $3,116,000 compared with the prior corresponding period as a result of the Company's continued investment in its product expansion strategy.

Other income for the period was $125,000 (31 December 2020: $73,000) which includes $54,000 grant revenue

associated with the New South Wales Jobs Plus Program (31 December 2020: nil).

Other losses - net for the period were $478,000 compared with $1,241,000 loss in the prior corresponding period, personalmainly as a result of net loss in foreign currency changes and derivative financial instruments.

Income tax benefit for the period was $614,000 compared with an income tax benefit of $1,261,000 in the prior corresponding period.

Cash and cash equivalents at 31 December 2021 totalled $91,931,000 compared with $96,027,000 at 30 June 2021. The cash on hand provides a strong balance sheet for the Company to continue executing on its growth strategies. Free cash outflow amounted to $3,842,000 compared with free cash outflow of $2,373,000 in the prior corresponding period.

Subsequent events

Note 8.3 sets out details of events subsequent to 31 December 2021 that may significantly affect the interim consolidated financial statements or require disclosure.

Apart from the items included in Note 8.3 and in the half-year report, there are no matters or circumstances that have arisen since 31 December 2021 that have significantly affected, or may significantly affect:

1. the Group's operations in the current or future financial years;
2. the results of those operations in the current or future financial years; or
3. the Group's state of affairs in the current or future financial years.

ForRounding

The amounts contained in this report and in the interim consolidated financial statements have been rounded to the nearest $1,000 (where rounding is applicable) and where noted ($'000) under the option available to the Company under ASIC Instrument 2016/191. The Company is an entity to which that instrument applies.

2

Directors' report

For the half-year ended 31 December 2021

Auditor's independence declaration

A copy of the Auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 4.

onlyThis Report is made and signed in accordance with a resolution of the Directors made pursuant to section 306(3)(a) of the Corporations Act 2001.

On behalf of the Directors

useGeoff Wilson Director

Sydney, 22 February 2022 personalFor

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