Slide 1: FY 2020 Results Presentation
FY 2020 RESULTS PRESENTATION August 2020
Slide 2: Pro Medicus (ASX:PME)
PRO MEDICUS (ASX:PME) Healthcare IT company specializing in Enterprise Imaging and Radiology Information System (RIS) software. Leading edge products, growing global presence. EU HQ/R&D Berlin GmbH U.S. HQ San Diego CA GROUP HQ Melbourne AUS OVER 40+ SOFTWARE ENGINEERS 2
Slide 3: Product Suite
ASX:PME VISAGE RIS VISAGE 7 OEM PRODUCT SUITE 3
Slide 4: Results FY 2020
RESULTS FY 2020 $56.8M $23.1M $30.3M 52.5% Underlying Profit Underlying EBIT Revenue after tax Profit margins up 23.9% up 20.7% Before Tax up 33.4% $43.4M $0.12 Cash Company Strong Full year Reserves debt balance dividend FF up 34.3% free sheet Up 14.3%
Slide 5: In Review FY 2020
In Review FY 2020 Implementation $22M/5 years Continues to grow completed in $9M/5 years Highly Optimised New Contract $6M/5 years New Contract STRONGLY record time New Contract JULY 2019 NOVEMBER 2019 DECEMBER 2020 DECEMBER 2019 JUNE 2020 PIPELINE 5
Slide 6: FY 2020 Revenue Split
FY 2020 Revenue Split Exam/licence revenue*** Support/baseline revenue*** Capital revenue (net of hardware) Professional Services*** $60,000,000 ***Recurring revenue $4,609,000 $50,000,000 $6,464,000 $16,857,000 $3,049,000 $40,000,000 $12,327,000 $4,151,000 $30,000,000 $2,429,000 $10,858,000 $1,445,
Slide 7: Operational (Transaction) Model
OPERATONAL (TRANSACTION) MODEL • Used in vast majority of US contracts • Delivered as SaaS model • Now used in RIS contracts in AUS • Model based on transaction minimums • Forward revenue > A$210M/5 years* • Upside as client examination volumes grow • Annuity style revenue stream – greater predictab
Slide 8: Exam (Transaction) Revenue
EXAM (TRANSACTION) REVENUE • Recurring in nature • Increased by 31% YoY • Growth to continue for FY 2021 (FY Duke, OSU, Northwestern & others) • Growth from existing clients (organic and M&A) plus new clients • Further upside with adoption of new products (VISAGE 7 Open Archive and Enterprise Imagin
Slide 9: Professional Services
PROFESSIONAL SERVICES • Project planning, training & implementation • Revenue spread over the length of the contract - new accounting standards (AASB 15) • Recurring in nature ~ 10% contract value • Will decrease as a % of total revenue as exam (transaction) revenue increases 9
Slide 10: Operating Leverage
OPERATING LEVERAGE • Highly scalable offering • No capex (HW) – SW only model • Training & Installation – charged as professional services • Contained cost base • High operating leverage • Margin continues to grow as footprint increases 10
Slide 11: COVID-19 - Operational
COVID-19 - Operational • PME/Visage transitioned to WFH in mid-March • Able to operate at 100% capacity • Sales and marketing efforts continued throughout • “Thinness” of the technology enabled large scale remote demonstrations • New opportunities despite COVID restrictions. 11
Slide 12: COVID-19 – Impact
COVID-19 – Impact • All elective imaging deferred late in March/early April • Some regions affected more than others • Worst affected – volumes declined by up to 75% • 2nd half April onwards – steady recovery in image volumes • Most clients now at “near normal volumes” > 90% - some 100% • Deferred e
Slide 13: Visage RIS
VISAGE RIS @ VISAGERIS TECHNOLOGIST DOCTOR TRANSCRIPTIONIST SEARCH OFFICE CLAIMING SETUP. Recent|¥ Dr 8 Simps ‘Appointments Reaion "Worthern Sock "Visage General Hospital 4 Tue, 17-0¢22017 FMT PTPRI™ @ patient © Procedure Ml Cancelled 7] Blocked Visage Xray + ma Visage US Room1 + Visage US Room2 > ‘
Slide 14: Visage RIS
VISAGE RIS • Long term (5 year) contracts with Primary Healthcare and I–MED, the 2 biggest radiology providers in AUS • Combined additional revenue of $4.4M pa once fully deployed • HIS (Healius) rollout nearing completion • Upside via organic and M&A growth (i-med) • Increased market interest – new
Slide 15: Visage 7.0
Visage 7.0 Continues to be #1 in Speed, Functionality and Scalability. SPEED FUNCTIONALITY SCALABILITY
Slide 16: Massive Data Explosion
MASSIVE DATA EXPLOSION • High density Multi-slice CT - 10,000+ images • HD Breast Tomosynthesis - 6 GB+ • Optoacoustic breast ultrasound - 10+ GB • Total Body PET Scan - 10+ GB • 7T MRI - much larger than 3T
Slide 17: Legacy Technology
LEGACY TECHNOLOGY “Compress and Send” MODALITIES PACS RADIOLOGIST/CLINICIAN
Slide 18: Solution: Visage Streaming Technology
SOLUTION: VISAGE 7 Streaming Technology BACKEND RENDER SERVER SERVER RADIOLOGIST/CLINICIAN MODALITIES
Slide 19: Ohio State University
OHIO STATE UNIVERSITY Wexner Medical Center • Minimum $9 Million over 5 years • Transaction-based licensing model with upside • Large regional hospital system • Teaching hospital for The Ohio State College of Medicine • Implementation completed - 100% remote 19
Slide 20: Nines
NINES • 5 year - $6 Million platform deal • Transaction based model – volumes to step up YoY • SaaS offering based on Visage in the Cloud • Nines team – highly respected in machine learning, AI, and radiology circles • Leveraging the power of modern AI to clinical settings • Opens up new market segm
Slide 21: Northwestern
NORTHWESTERN • Minimum $22 Million over 5 years • Transaction-based licensing model with upside • Voted in the top 10 Hospitals in North America • Teaching hospital for the Feinberg School of Medicine • Adds to PME growing base of Tier-1 Healthcare institutions • Implementation scheduled for Q3 FY21
Slide 22: Fast Track Implementation
FAST TRACK IMPLEMENTATION • All implementations on or ahead of schedule • Fast track methodology continues to deliver • Large scale projects completed in under 1/4 the time of industry norm • Delivers huge savings for client • Frees PME staff for other jobs • Reduces barrier to change • OSU first 10
Slide 23: Visage – Proven ROI
VISAGE – PROVEN ROI Significant IT & Unparalleled Increase in Greater Clinical Infrastructure Savings Radiologist Efficiency Accuracy Improved Physician Delivers Superior Engagement Value Proposition 23
Slide 24: Visage – Clinical ROI
VISAGE – Clinical ROI Improved Physician Engaement 24
Slide 25: Growth Strategy
GROWTH STRATEGY New product offerings Transaction growth Extend to new from existing clients geographical markets Leverage R&D capability Expand footprint – to introduce next new clients generation products 25
Slide 26: North American Pipeline
NORTH AMERICAN PIPELINE Prospects Progressing through Network Effect various stages of the cycle Opportunities Increased as a result of recent high- profile wins Last 12 months - Pipeline Robust significant increase in number of inbound RFPs In terms of quality and quantity of opportunities 26
Slide 27: New Products: Visage 7 Open Archive
NEW PRODUCTS VISAGE 7 OPEN ARCHIVE • Same highly scalable enterprise imaging platform used in VISAGE 7 • Interoperable – works in complex environments • Enables Visage to offer choice of modular or single vendor solutions • Pipeline includes opportunities for Viewer and Visage Open Archive • Well pl
Slide 28: New Products: Enterprise Imaging
NEW PRODUCTS ENTERPRISE IMAGING • Single viewer for ALL images in the medical record (EMR) • Radiology/Cardiology (DICOM format) • Non-radiology– reflected light – hi-res photos & videos • VISAGE 7 technology ideally suited • Increases Visage value proposition • Growth opportunities within existing
Slide 29: Visage 7 Worklist
Visage 7 WORKLIST • Adds to V7 Viewer and Archive modules • Based on over 30 years experience in Worklist SW • Allows PME to offer single vendor solution if required • Integral part of Visage in the Cloud SaaS solution • Ability to interface with broad range of AI algorithms 29
Slide 30: Visage in the Cloud
VISAGE in the CLOUD • Visage 7 - highly optimised for Cloud deployment • Same ultrafast performance as on premise • Full Visage 7 functionality • Security and scale of the cloud • Full deployment or as backup/disaster recovery • Suitable for all size implementations • Opens up new market opportuniti
Slide 31: Visage 7 AI Platform
Visage 7 • Unique end to end solution • Supports both research and production environments on a single platform • Based on market leading Visage 7 technology • Enables Visage clients to fast track AI as part of their imaging strategy 31
Slide 32: Visage 7 Research Server and AI Ecosystem
Visage 7 • Visage Research Server – streamlines AI algorithm development • Optimised for AI data curation and validation • Open API - seamless integration • AI Ecosystem - 3rd party and Visage developed algorithms • Joint development/commercialisation opportunities - 3rd parties and academic clients
Slide 33: AI Research Leadership
AI Research Leadership Malte Westerhoff Chief Technology Officer Detlev Stalling Head of Development Ming De Lin Clinical Research Manager North America 33
Slide 34: Breast Density - AI
Breast Density - AI • 1st diagnostic AI algorithm produced by Visage • Developed in collaboration with renown breast imaging team at Yale • Provides “on the fly” AI assessment of breast density • Previewed at RSNA 2019 as WIP • Pending FDA approval • A model for future collaboration with other acade
Slide 35: Summary
SUMMARY • Growing North American footprint • Transaction revenue up 31% YoY • Market leading technologies • Growing product portfolio • Proven implementation & support capability • Unparalleled value proposition (Clinical and Financial ROI) • Pipeline Continues to grow strongly. • Visage AI-Accelera
Slide 36: Thank You
pro+medicus