Austco Healthcare Ltd · ASX:AHC
Austco Healthcare — Azure Healthcare — Investor Presentation (October 2019)
28 slides from Austco Healthcare's investor presentation, October 2019
Slide 1: Investor Presentation October 2019
INVESTOR PRESENTATION October 2019 Clayton Astles Brendan Maher CEO CFO
Slide 2: Disclaimer
DISCLAIMER This Publication does not constitute an offer, invitation or Disclaimer Other than to the extent required by law, neither Azure nor any of their respective affiliates, recommendation for the sale or purchase of any securities associates, shareholders, directors, officers, employees, agent
Slide 3: Presentation Agenda
PRESENTATION AGENDA Growth Market and Products Financial Performance Wrap-Up Appendices 3
Slide 4: Growth Strategy
GROWTH STRATEGY 4
Slide 5: The Azure Journey
THE AZURE JOURNEY 2017 2018 Reduced headcount by 30% ($2M saving pa) 2019 Introduced recurring software Significantly improved product quality revenue model Diversified supply sources away from China Relocated manufacturing to USA and Invested over $13 million to to lessen impact of China/USA trade
Slide 6: FY20 Growth Strategy
FY20 GROWTH STRATEGY Strategic Objective Status Focus on high quality new products that differentiate Austco from its competitors ‣ Releasing new software products regularly. Improve manufacturing efficiencies to drive further cost reductions and ‣ Material requirements planning (MRP) system reduce
Slide 7: Market + Products
MARKET + PRODUCTS 7
Slide 8: Azure Global Presence
AZURE GLOBAL PRESENCE USA/CANADA SINGAPORE Markets USA, Canada, Latam Markets Asia, Middle East Sales A $13.1m Sales A $4.2m Employees 57 Employees 15 Sales, Activities Activities Sales Manufacturing, R&D UNITED KINGDOM AUSTRALIA/NZ Markets UK, Europe Markets Australia, NZ Sales A $2.6m Sales A $11.
Slide 9: Global Market
GLOBAL MARKET Global Nurse Call System Market (USDm) Revenue by facility type (USDm) 3,000 2,666 2,666 2017 2020 % 2020 total 3 year growth 2,250 Hospitals 814.0 1,112.2 70.4% 36.6% 11.3% CAGR Outpatient clinics 94.4 128.6 8.1% 36.2% 1,500 Assisted living 183.7 286.2 18.1% 55.8% 17.2% CAGR 1,131 Amb
Slide 10: Flagship Product Tacera
FLAGSHIP PRODUCT TACERA Core nurse call system Enhanced Workflow Enterprise Reporting Mobile Annunciators, Census Integrations Tacera is the most advanced IP-based nurse call system in the world, with its fully customisable platform able to cater to facility needs as well as individual patient needs
Slide 11: Enable Caregiver Mobility
ENABLE CAREGIVER MOBILITY Alarm Management Workflow Prioritized list of assigned alarms Remote control the nurse call system For each alarm, staff can reject, accept, escalate or call back Lights the light, plays the tones iOS and Android native app 3rd party integrated apps cannot replicate this fu
Slide 12: Enterprise Reporting
ENTERPRISE REPORTING Two enterprise solutions in one: Reporting Engine & Healthcare Dashboard Multiple deployment options Software solution Benefits Monitor alarm activity at any level Automated reporting frees up staff time Identify developing problems Measure response times Adherence to protocol 1
Slide 13: Financial Performance
FINANCIAL PERFORMANCE 13
Slide 14: Revenue Model
REVENUE MODEL Equipment • One off sales with margins between 20% and 60% • Long shelf life which affects resales (up to 15 years) • Heavily weighted to the front end of the contract life Software Installation 11% • Sales cycle is 12 to 24 months, additionally new builds can add further time between
Slide 15: Sales Revenue
SALES REVENUE Sales Revenue (A$000s) By Region (A$000s) FY18 FY19 13,113 16,725 12,374 11,805 10,748 14,972 14,698 14,242 4,176 3,545 2,273 2,603 1H18 2H18 1H19 2H19 USA/Can AU/NZ Asia Europe Continued growth in revenue over last four halves: All regions reporting revenue growth in FY19 as compared
Slide 16: Gross Profit + Margin
GROSS PROFIT + MARGIN 49.7% 48.0% 47.3% Gross margin improvement in 2H19 to 47.3% and increased 45.7% 44.5% 7,918 revenue improved gross profit to $7.9m in 2H19: • 1H19 was negatively impacted by rising costs of raw 7,298 materials resulting from US tariff imposts on Chinese 6,836 6,843 goods 6,662
Slide 17: Overhead Expenses
OVERHEAD EXPENSES Overheads at $7.3m in 2H19 represent a new baseline of expenditure arising from: • increased net expenditure in R&D team to drive 2,749 delivery of roadmap of $583k in 2H19 as 8,256 compared to 1H19 7,278 7,382 • increased investment in technical resources in 544 target regions to
Slide 18: Earnings
EARNINGS EBITDA (A$000S) NPAT (A$000S) 1,102 Norm EBITDA 978 Norm NPAT EBITDA Reported NPAT 770 600 757 598 502 437 509 260 -465 -216 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 EBITDA impacted by new US tariff regime 2H19 reported NPAT was $1.1m, giving rise to a FY19 but was partially restored in the
Slide 19: Cash + Debt
CASH + DEBT CASH + DEBT (A$000S) 2,307 • Cash on hand remains at satisfactory levels, driven by continuing positive operational cash flow 2,011 1,945 • Net cash has been largely unchanged over the last three periods at ~$1.7m • Positive cashflow from operations has allowed for an increase in strateg
Slide 20: Wrap Up
WRAP UP RESEARCH & DEVELOPMENT 20
Slide 21: Outlook
OUTLOOK Strong sales pipeline Market-leading products through sustained R&D commitment Rapidly growing global marketplace Investment in Sales and Marketing resources Azure Healthcare is devoting more sales and marketing resources in targeted markets to capitalise on a growing marketplace and convert
Slide 22: Appendices
APPENDICES 22
Slide 23: AZV Snapshot
AZV SNAPSHOT MARKET INFORMATION COMPANY INFORMATION FINANCIAL INFORMATION FY18 Profitable with strong cash flow from Shares on Issue 232,712,826 Financial Position Cash Flow from Ops $2.0M operations. Products located in over 4,500 sites Options on Track Record Net Cash $1.65M 8.2M globally Issue Pu
Slide 24: FY19 Normalisations
FY19 NORMALISATIONS* FY19 1H19 2H19 FY19 Cash / A$000s Notes Statutory One-offs One-offs Normalised Non-cash Write off of project costs incurred in a Gross Profit 14,580 (181) - 14,761 Non-cash previous period Overhead (14,493) (544) - (13,949) Cash Costs related to management restructure EBITDA 558
Slide 25: 5-Year Earnings
5-YEAR EARNINGS A$000 2015* 2016 2017 2018 2019(N) NOTES Sales revenue 33,497 31,570 28,919 28,940 31,697 Total revenue 34,962 32,028 29,191 28,948 31,790 Gross profit 18,298 15,654 13,517 14,134 14,761 Asset sale - 460 - - 2017: CellGuard divestment Overhead (17,604) (18,803) (14,905) (12,557) (13,
Slide 26: 5-Year Balance Sheet + Cash Flow
5-YEAR BALANCE SHEET + CASH FLOW A$000 2015* 2016 2017 2018 2019 NOTES Current assets 17,002 16,127 16,735 15,491 16,681 Non-current assets 5,967 5,858 617 1,323 3,045 Total assets 22,969 21,983 17,375 16,814 19,726 Current liabilities 7,320 9,733 9,047 7,195 9,174 Non-current liabilities 112 80 42
Slide 27: Board + Management
BOARD + MANAGEMENT Graeme Billings Clayton Astles Chair CEO & Exec Dir Graeme has been a Chartered Accountant since 1980, retiring from Based in Texas, Clayton joined Azure in 2008 as Vice-President and then PwC in 2011 after 34 years. President of Austco’s main operating subsidiary, Austco. He has
Slide 28: Clayton Astles CEO & Executive Director
Clayton Astles CEO & Executive Director Telephone Aust: +61 411 531 170 Telephone US: +1 416 565 7457 Email: clayton.astles@austco.com Brendan Maher CFO & Company Secretary Telephone: +61 439 369 551 Email: brendan.maher@austco.com 28
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