Slide 1: Mach7 Technologies Investor Presentation, September 2017
For personal use only MACH7 TECHNOLOGIES INVESTOR PRESENTATION, M7T.ASX SEPTEMBER 2017 Copyright © 2013 Mach7 Technologies Copyright © 2013 Mach7 Technologies
Slide 2: M7T:ASX Corporate Overview
M7T:ASX CORPORATE OVERVIEW For personal use only 2007 FINANCIAL INFORMATION ($A) MAJOR SHAREHOLDERS FOUNDED 2012 Share price (29-Aug-17) Number of shares (m)1,2, $0.17 118.2m # shares (m) % MACH7 PRODUCT JM Financial Group 11.8 10.3% LAUNCHED Market Capitalisation $20.1m (Melb., Australia) 2016 Cash
Slide 3: Mach7 – The Solution
For personal use only Mach7 Enterprise Imaging Platform is a flexible and scalable solution that allows images and data to be easily shared, improving clinical workflows and MACH7 – THE SOLUTION patient care outcomes. With multi specialty capabilities, across all the ‘ologies’, complete patient reco
Slide 4: Investment Highlights
SIGNIFICANT FIRST MOVER ADVANTAGE 100% enterprise imaging already handling >1 billion owned } technology with a suite of For personal use only complementary IP portfolio clinical tools images INVESTMENT HIGHLIGHTS VALIDATED MARKET DEMAND Proven execution Mach7 Technologies with track record of Prove
Slide 5: FY17 Highlights
For personal use only Strong revenue growth from new contracts with FY17 HIGHLIGHTS A$ large U.S. university medical centres, healthcare networks and radiology groups Revenue 7-year deal signed with Maine Health $10.3m +76% (TCV btw $3.8m and $5.5m) Major implementation completed in EBITDA Qatar (TC
Slide 6: Strong Revenue Trajectory
STRONG REVENUE For personal use only TRAJECTORY ($m) Total Revenue USD 9.0 8.0 $7.7m ► 2013 to 2017 revenue 7.0 CAGR of +37.3% 6.0 5.0 ► Growth driven by 4.0 customer wins in the US 3.0 market 2.0 1.0 0.0 FY13 FY14 FY15 FY16 FY17 Total revenue Linear trend -6-
Slide 7: Increasing Contribution from Recurring Revenue
INCREASING For personal use only CONTRIBUTION FROM ($m) Revenue mix USD RECURRING REVENUE 6.0 5.0 ► 2013 to 2017 recurring 4.0 revenue CAGR of +73.3% 3.0 ► Recurring revenue growth driven by bias of new 2.0 contracts favouring a higher mix of annual maintenance 1.0 support and pay as you go pricing
Slide 8: Revenue Growth Fuelled by Global Market Opportunity
REVENUE GROWTH For personal use only FUELLED BY GLOBAL ($m) Global revenue growth potential (USD) MARKET OPPORTUNITY 100.0 90.0 80.0 70.0 ► Graph shows the 60.0 extrapolation of current 50.0 revenue trend (2013 to 2017) 40.0 out to 2023. 30.0 ► This is considered a business 20.0 as usual scenario gi
Slide 9: Sales Momentum and Pipeline
SALES MOMENTUM AND PIPELINE For personal use only Sales pipeline data at August 2017 $441K $281K $157K FY15 FY16 FY17 109 $ 6 6 m AVERAGE DEAL SIZE* customers total sales USD value USD 17 13 35 *Decline in average deal size due to FY15 FY16 FY17 increasing number of new subscription cloud models and
Slide 10: Customer Evolution
CUSTOMER EVOLUTION For personal use only Mach7’s global customer base is progressing from earlier adopters towards significantly larger mid-market 456 Installed sites, across… 11 Countries 52 Unique customers, comprising… 38 Hospitals / medical centres 12 Imaging centres 2 Veterinary Early customers
Slide 11: Improving Operating Leverage
IMPROVING OPERATING LEVERAGE For personal use only M7T approaching EBITDA breakeven – all R&D continues to be expensed Expense to revenue ratio* 2.5 x 2.0 x 1.5 x 1X = EBITDA 1X = EBITDA breakeven 1.0 x breakeven 0.5 x CY14 CY15 FY16 FY17 FY18 Forecast Expense to revenue ratio Including R&D expense
Slide 12: Investing in Growth
INVESTING IN For personal use only GROWTH ($m) Expense composition USD 12.0 ► High correlation between 10.0 P&L and cash outgoings with all R&D expenditure 8.0 expensed 6.0 ► R&D expenditure ~25% revenue for the last four 4.0 years as we continue to enhance the product and protect our competitive 2.
Slide 13: Resources Focused on Large US Market Opportunity
RESOURCES FOCUSED ON LARGE For personal use only US MARKET OPPORTUNITY GEOGRAPHY FUNCTION Executive & Admin. USA 7 R&D 43 Headcount 17 47 June 2017 AUS. Services 1 SING. Sales and support 3 9 14 - 13 -
Slide 14: Improving Financial Position
IMPROVING FINANCIAL POSITION For personal use only More customers, strong revenue trajectory and a clean balance sheet Balance Sheet (A$m) – major line items 30 June 30 June 2017 2016 Cash 2.7 1.7 Impairment charges of $17.7 million were made to Receivables/prepayments 5.2 2.7 intangible assets du
Slide 15: Validated Market Demand – Today
10,500 For personal use only VALIDATED MARKET IMAGING CENTRES 4,700 DEMAND – TODAY IMAGING CENTRE NETWORKS blue chip 52 customers $3.8 Billion global addressable 11 countries market – US largest market 456 sites 5,600 REGISTERED HOSPITALS 3,900 NON-GOVT HOSPITALS - 15 -
Slide 16: Market Observations
MARKET OBSERVATIONS For personal use only MARKET FACTORS TOP TRENDS • ~6%-10% CAGR • Consumerism: social media, • ~$4B Market mobile health, patient portals • Shifting to value driven • Ubiquitous access: healthcare interoperability, data interchange , HIE, image exch… • Increasing costs with no net
Slide 17: The Problem
For personal use only Problems with current Electronic Health Record Systems1 THE PROBLEM Lack of interoperability 46% Viewers do not work 10% Not enough vendor support 9% Lack of interoperability of current Data security 5% systems prevents optimal patient Too much downtime 3% care outcomes and inc
Slide 18: Preferred Alternative: Mach7 – The Solution
For personal use only PREFERRED ALTERNATIVE MACH7 – THE SOLUTION As a response to the problems, the preferred investment for Mach7 Enterprise Imaging Platform is a flexible imaging related technology is and scalable solution that allows images and expected to be enterprise data to be easily shared,
Slide 19: Industry Leader
INDUSTRY LEADER For personal use only Since its 2012 launch, Mach7 has been recognised as an industry leader, receiving various awards and accolades. No.1 Leader, US Our PACS vendors all proposed schemes to Healthcare Provider improve workflow and imaging access, but we VNA/AICA Unstructured needed
Slide 20: Mach7 Key Features
MACH7 KEY FEATURES only ► Mach7 Enterprise Imaging Platform is best-in-class software Innovative platform with intuitive, point-and- Easy Procedure click interface and real-time monitoring Physician & UNIQUE COMPETITIVE ADVANTAGES use tracking, dashboard monitoring and Patient Portals Telehealth / s
Slide 21: Strategy to Win
STRATEGY TO WIN For personal use only • Refreshed product positioning and pricing • Increase recurring revenue base • Shorten the sales cycle Disrupt the • Grow the app ecosystem market • Evaluate entry into new verticals (vet, ophthalmology, dental, Sports Medicine etc) Grow • Technology Partners E
Slide 22: Board and Management
BOARD AND MANAGEMENT use only Strong founder involvement with proven Board and management team MANAGEMENT For personal BOARD Jenni Pilcher Damien Lim DR Nigel Finch Mike Jackman GLOBAL CFO and NON-EXECUTIVE NON-EXECUTIVE PRESIDENT AND CEO CEO, AUSTRALIA CHAIRMAN DIRECTOR OPERATIONS 21+ years exper
Slide 23: FY18 Outlook
For personal use only FY18 OUTLOOK Partnering with our customers to deliver better patient and operational outcomes Continued strong revenue growth Positive EBITDA - 23 -
Slide 24: Further Information
FURTHER INFORMATION For personal use only Video Website Contact Jenni Pilcher GLOBAL CFO and CEO, AUSTRALIA OPERATIONS jenni.pilcher@mach7t.com https://youtu.be/uSkRQwbxzXo www.mach7t.com - 24 - Copyright © 2013 Mach7 Technologies