Pro Medicus, Ltd. · ASX:PME
Pro Medicus — Shareholder Meeting (November 2018)
46 slides from Pro Medicus's shareholder meeting presentation, Nov 20, 2018
Slide 1: Chairman's Address AGM November 2018
1 Chairman’s Address AGM November 2018
Slide 2: Chairman's Report
CHAIRMAN’S REPORT Overview The Board has continued to follow its strategic plans which have provided the company with significant growth and improved profitability during the last financial year. Each of our businesses in our main markets (Australia, Europe and North America) contributed strongly to
Slide 3: Chairman's Report: Outlook, Dividend Policy and Closing
The Company continued to be cash flow positive with retained cash increasing from $23 million to nearly $25 million after paying an increased dividend. The Board anticipates another strong year with the majority of growth occurring in the second half of the financial year. Results to date are tracki
Slide 4: CEO Presentation AGM November 2018
2 CEO Presentation AGM November 2018
Slide 5: Pro Medicus (ASX:PME)
Pro Medicus (ASX:PME) Healthcare IT company specialising in Enterprise Medical Imaging and radiology information system (RIS) software. Leading edge products, growing presence globally. EU Headquarters / R&D Berlin, Germany US Headquarters San Diego, CA Group Headquarters Melbourne Over 40 Software
Slide 6: Global Management Structure
Global Management Structure Malte Westerhoff – Chief Technology Officer Sean Lambright - Head of Sales Brad Levin – Head of Marketing Teresa Gschwind – Head of Services 4
Slide 7: PME Product Suite
PME Visage 7 * Visage RIS Pro Medicus.net Product Suite OEM
Slide 8: FY18 in review
FY18 in review • November 2017 - $18M Yale New Haven contract • May 2018 – I-MED renewal and extension contract • May 2018 - Mayo Rochester go live • June 2018 – $15M Mercy Open archive deal • US implementations on/ahead of schedule • Visage RIS – increased market lead • Pipeline continues to grow s
Slide 9: FY2018 Highlights - Financial Results
FY2018 Highlights - Financial Results Financial Highlights FY2017 FY2018 % YoY Revenue ($M) 31.60 36.00 14% Profit before tax ($M) 13.41 17.37 30% NPAT ($M) 9.32 12.74 37% Cash ($M) 22.78 25.24 11% EPS (cps) 9.1 12.4 36% DPS (cps) 4.0 6.0 50% Growth in North American business Positive free cash flow
Slide 10: Operational (Transaction) Model
Operational (Transaction) Model 8 • Used in vast majority of US contracts • Delivered as SaaS model • Now used in RIS contracts in Australia [insert chart comparing • Model based on guaranteed transaction transaction with minimums capital model] • Forward revenue > A$135M/5 years* • Upside as client
Slide 11: FY18 Full Year Revenue Split
FY- 18 Full Year Revenue Split $40,000,000 Exam/licence revenue*** Support/baseline revenue*** Capital revenue Professional Services ***Recurring revenue $35,000,000 $6,817,000 $30,000,000 $6,601,000 $3,689,000 $25,000,000 $10,858,000 $1,890,000 $20,000,000 $10,118,000 $1,810,000 $9,991,000 $15,000,
Slide 12: High Operating Leverage
High Operating Leverage 10 • Highly scalable offering • No capex (HW) – SW only model • Training & Installation – charged as professional services • Relatively fixed cost base • Margin continues to grow as footprint increases
Slide 13: Margin Expansion
Margin Expansion 11 EBIT Margins 60 50 40 30 20 10 0 FY-14 FY-15 FY-16 FY-17 FY-18
Slide 14: Visage RIS
TECHNOLOGIST DOCTOR ‘Appointments Northern Visage X-ray |v VISAGE TMAGIN TRANSCRIPTIONIST SEARCH 0} Visage General Hospital Visage CT» rn 7a ICE CLAIMING Visage US Room 1» Visage RIS SETUP BRT "PA™ @ Patient @ Procedure ssn Visage US Room 2 |v 7a 7a rsa Visage US Room 3 | rn Recent|* Dr RSimpson|~ f
Slide 15: Visage RIS – I-MED
Visage RIS – I-MED • 5 year renewal of existing contract • Extension of contract to include I-MED Queensland and Regional Imaging practices • Additional revenue $1.4M pa once fully deployed • One of the largest RIS installations worldwide • Growing via acquisition
Slide 16: Visage RIS
Visage RIS • Long term (5 year) contracts with Primary Healthcare and I-MED, the 2 biggest radiology providers in Australia • Combined additional revenue of $4.4M pa once fully deployed • Rollouts progressing well • Potential upside via organic and M&A growth • Repositions PME as undisputed market l
Slide 17: Leading Edge Product Set – Visage Imaging Still Number 1
Leading Edge Product Set – Visage Imaging Still Number 1 in Speed, Functionality, Scalability 15
Slide 18: North American market
North American market 16 • PACS market estimated at > US$2 billion pa and growing • Expanding into Enterprise Imaging • Paradigm shift to “deconstructed PACS” – best in breed approach • Market fragmented - in process of consolidating • Visage 7.0 – proven, market leading technology • Company ideally
Slide 19: Massive data explosion
Massive data explosion 17 • Higher image density - CT leaps from 64 slices to 256 and now 640 • 3.0T MRI – much larger dataset than 1.5T • Functional Imaging e.g. PET scan often > 1.5 to 2 gigabytes • Digital Breast Tomosynthesis (DBT) files can be over 4 to 6 gigabytes • Prior examinations multiply
Slide 20: Electronic Medical Record (EMR)
Electronic Medical Record (EMR) 18 • Mandated in US Hospitals by end of 2018 • Consolidates all hospital data – clinical and financial • 90% of EHR is imaging data (by volume) • Need all imaging data in one repository • Driving adoption of VNA • Need for a single Viewer for all images
Slide 21: Solution - Visage 7.0 Streaming Technology
Solution - Visage 7.0 Streaming Technology 19
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 • A key differ
Slide 23: Visage - Proven RoI
Visage - Proven RoI • Significant IT and infrastructure savings • Increased equipment utilisation – CT thin slice – no reformatting. • Unparalleled increase in radiologist efficiency • Greater clinical accuracy • Improved physician engagement • Delivers superior value proposition
Slide 24: Visage – Case Study
Visage – Case Study • Child presents with severe headaches • CT shows multiple aneurysms requiring emergency interventional surgery • No time to wait for lengthy technologist or 3D lab post- processing • MRA/MRV performed on-the-fly by Visage
Slide 25: Visage - Proven RoI - Clinical
Visage - Proven RoI - Clinical
Slide 26: Visage – Case Study
Visage – Case Study • Radiologist able to “walk through the interventional surgery” in advance • Saved precious time (estimated at tens of minutes) • Increased the quality and speed of the surgical planning • Interventional radiologist commenting on the contributions of Visage 7 to his work; "Visage
Slide 27: Visage - Proven RoI - Clinical
Visage - Proven RoI - Clinical Current Prior Fused Subtraction showing intracranial bleed Fused Image
Slide 28: Visage - Proven RoI
Visage - Proven RoI CT Volume Growth at Visage Customer Reading “Thins"
Slide 29: Visage - Proven RoI
Visage - Proven RoI • Acquisition protocols thin slice since Visage 7 go- live • Techs quicker - no modality-based reformats • CT volume increased 23% since go live • No change in staffing (radiologists or technologists) • No change in modality (CT Scanner) count • Techs spend more time with patient
Slide 30: Visage - Proven RoI - Financial
Visage - Proven RoI - Financial Radiologist Productivity and Turn-Around Time Data Analytics STAT exams – 30.4% Radiologist turn-around-time improvement (Enterprise)
Slide 31: Visage - Proven RoI - Financial
Visage - Proven RoI - Financial
Slide 32: Visage - Proven RoI – Radiologist
Visage - Proven RoI – Radiologist • Unparalleled increase in radiologist productivity. • Greater clinical accuracy • Improvements of 20% or more • Results in better less stressful radiologist work environment • Delivers very significant financial benefits
Slide 33: Marketing - North America
Tomorrow's * RADIOLOGY TODAY J NOVEMBER 25-30 innovation-Fyou prosmedicus VISAGE TMAGING”
Slide 34: RSNA 2018 marketing plans
• Building on the success of RSNA 2017 • Larger more prominent stand • Record number of pre booked meetings • Visage to showcase latest product release and AI offerings
Slide 35: US Pipeline
33 US Pipeline • Pipeline robust in terms of quality and quantity of opportunities [insert chart • Increasing number of opportunities coming to comparing market transaction with capital model] • Network effect from recent high profile wins • Prospects at various stages of cycle
Slide 36: Growth Strategy
Growth Strategy 34 • Transaction growth from existing clients • Expand current footprint - new clients • New product offerings for existing clients • Extend to other geographical markets • Leverage R&D capability to introduce next generation products
Slide 37: New products – Visage Open Archive
New products – Visage 7 Open Archive 35 • Same highly scalable enterprise imaging platform used in Visage 7 • Modular design – interoperable in complex environments • Enables Visage to offer choice of deconstructed or single vendor solutions • Well placed for the North American archive market
Slide 38: Visage Open Archive - Mercy
Visage 7 Open Archive - Mercy 36 • $15M – 7 year deal • Mercy to standardise on Visage 7 Open Archive across its diagnostic imaging business • Transaction-based model with potential upside • Over 25 million diagnostic imaging exams to be migrated • Once completed - one of the largest medical imaging
Slide 39: New products - Enterprise Imaging
New products - Enterprise Imaging 37 • Single viewer for all images in the medical record (EMR) • Radiology/Cardiology (DICOM format) • Other “Ologies” –neurology, ophthalmology etc • Non radiology - reflected light - hi res photos & video • Visage technology ideally suited • Increases Visage value
Slide 40: Visage Imaging: One Viewer, All Images
VISAGE TMAGING’ @ ONEVIEWER ALLIMAGES Diagnostic - Clinical - EHR - 3D + Cardiology - Breast Imaging + Specialties - Telerad —_— At Home/Remote - Non-DICOM - Visible Light - Multimedia - HD Video + Audio - QA .
Slide 41: Enterprise Imaging
Enterprise Imaging File View Protocol Tools Help Study Browser * MORGAN (mee fg Zt, iSeries 2Series 4 Series 6 Series 8 Series 12 Series Other Series Multiplanar (act. series) Multiplanar + 3D MIP (act. series) VISA (GAN EDNA ANON Foy:200 x 200 mm: thse. cor Fi 133140 kd mm ki mm pA a mm pas mm C10
Slide 42: Artificial Intelligence (AI)
Artificial Intelligence (AI) 40 • Healthcare imaging ideally suited to AI • Visage well positioned to take advantage of this emerging technology • Advanced image processing in healthcare is “in our DNA” • Visage architecture uses GPU technology • Growing academic/research focused client base
Slide 43: Visage 7 AI
Visage 7 AI - 41 Malte Westerhoff – Chief Technology Officer Detlev Stalling – Head of Research & Development Ming De Lin – Clinical Research Manager North America
Slide 44: Visage 7 AI
- 42 Visage 7 AI • “In product” AI - automate high end functions within Visage 7 • Visage 7 AI - single visualization platform for both clinical and research environments • Visage 7 AI - Open platform enables integration of 3rd party algorithms • Platform for possible future Visage created algorithm
Slide 45: Summary
Summary 43 • Unique market position • Leading edge technology • Proven implementation & support capability • Delivers measureable financial benefits • Meaningful improvement in clinical outcomes • Unparalleled value proposition • New products – Enterprise Imaging & Open archive • Leveraging R&D/Rese
Slide 46: Thank you AGM November 2018
44 Thank you AGM November 2018