Adheris Health Limited · ASX:AHE
Adheris Health — H1 FY2023 Earnings Presentation
23 slides from Adheris Health's earnings presentation, Mar 1, 2023
Slide 1: A global leader in digital medication management solutions
A global leader in digital medication management solutions 1H FY23 Results Presentation 1 March 2023 MedAdvisor Limited ABN 17 145 327 617
Slide 2: Important notice and disclaimer
Important notice and disclaimer This Presentation is dated 1 March 2023 and has agents, employers or advisers give, have given or warranty is given as to the accuracy or (as defined in Regulation S under the U.S. been prepared by MedAdvisor Limited ABN 17 or have authority to give, any representatio
Slide 3: CEO quote on strong first half results
“ Our strong first half financial results are underpinned by the significant growth of our community pharmacy network and execution of our digital patient “ engagement strategy. - Rick Ratliff CEO and Managing Director MedAdvisor 1H FY2023 Investor Presentation | 3
Slide 4: Agenda
Agenda Performance Highlights Financial Results Business Update Pathway to Profitability Rick Ratliff Ancila Desai CEO and Managing Director CFO and Company Secretary MedAdvisor 1H FY2023 Investor Presentation | 4
Slide 5: 1H FY23 Performance Highlights
1H FY23 Performance Highlights Record half year performance as MedAdvisor scales pharmacy network and digital reach Income Statement (half year ending 31 December) Total global network 65.8% Revenue Growth pharmacies: 37,934 US digital patient reach 110.1% Gross Profit Growth >60M FY23 forecast to r
Slide 6: Agenda
Agenda Performance Highlights Financial Results Business Update Pathway to Profitability MedAdvisor 1H FY2023 Investor Presentation | 6
Slide 7: 1H FY23 revenue driven by increased uptake of digital solutions
REVENUE 1H FY23 revenue driven by increased uptake of digital solutions Revenue Growth of 65.8% to $64.1m +65.8% AUD $’m 65.0 64.1 60.0 • US revenue up 71.1% to $54.9m 55.0 50.0 • AU revenue up 40.3% to $9.2m 45.0 +26.2% 40.0 38.6 35.0 54.9 • Positive FX impact of $5m3 30.6 30.0 25.0 32.1 20.0 25.7
Slide 8: Product mix drives significant Gross Margin improvement
GROSS PROFIT Product mix drives significant Gross Margin improvement Gross Profit increase of 110.1% to $38.4m AUD $’m +110.1% 40.0 38.4 • Group Gross Margin up 12.7 ppts to 60.0% 35.0 • US Gross Margin up 15.7 ppts to 55.8% • AU Gross Margin up 2.1 ppts to 84.5% 30.0 25.0 • Driven by the success in
Slide 9: Positive EBITDA supported by uplift in Revenue and Gross Margin
EBITDA Positive EBITDA supported by uplift in Revenue and Gross Margin Positive EBITDA of $8.6m, up $13.1m on 1H FY22 ($4.5m) and Gross Margin of 60%, +12.7 ppts vs pcp AUD $’m +13.1 16.0 15.0 0.4 1.6 • $20.2m increase due to improved product mix, 14.0 2.0 1.2 higher margin digital programs and incr
Slide 10: Moving towards cashflow break even
CASH FLOW Moving towards cashflow break even Strong capital position with Cash of $32.7m as of 31 December 2022 AUD $’m +27.3 34.0 32.7 Capital Management a Key Priority 32.0 $15.7m Operating activities 30.0 28.0 • $19.9m reflecting strong customer receipt growth from both the US and AU 26.0 14.6 24
Slide 11: Agenda
Agenda Performance Highlights Financial Results Business Update Pathway to Profitability MedAdvisor 1H FY2023 Investor Presentation | 11
Slide 12: MedAdvisor Overview
MedAdvisor Overview MedAdvisor provides patient support via simple and innovative digital medication management and communications solutions in target markets Total network pharmacies: 37,934 Investing and innovating in digital patient medication Total network patients: 235M management and communica
Slide 13: Significant US growth opportunities for digital medication communications
Significant US growth opportunities for digital medication communications Total Addressable Market (TAM) has grown to USD $16 Billion Annual US pharmaceutical sales and marketing spend • Pharma spends USD $16 Billion on digital marketing per annum • This spend includes medication awareness, access a
Slide 14: Immediate growth opportunities for MedAdvisor through digitisation
Immediate growth opportunities for MedAdvisor through digitisation As we migrate our US pharmacy network to support digital medication management and communications solutions, MedAdvisor increases its value to Pharma US Pharmacy Landscape Top 50 US Pharmaceutical landscape 40,276 MedAdvisor pharma M
Slide 15: Accelerating the digitisation of the US pharmacy network
Accelerating the digitisation of the US pharmacy network Doubling reach of stores and patients through digital channels Pharmacy Network – Digital Expansion H1 FY23 17.6 • Increased pharmacy reach of the 60 MedAdvisor digital patent communications solution by almost 50% 9.1 FY22 46 • Digital patient
Slide 16: Extensive multi-channel vaccine programs on the US pharmacy network
Extensive multi-channel vaccine programs on the US pharmacy network Vaccine awareness programs demonstrated the power of digital communications to drive revenue and margin increases • Executed 13 digital communications Product Mix Revenue Shift programs representing 53% of 1H revenue • Increased cus
Slide 17: Consistent seasonal revenue increases in Q2 powered by digital solution growth
REVENUE by QUARTER Consistent seasonal revenue increases in Q2 powered by digital solution growth • Q2 seasonally high as expected with pharma typically ramping up program spending • The seasonal trend was positively impacted by a combination of: ✓ Increased pharmacy support for our digital solution
Slide 18: Australia and New Zealand provide medication management solutions to individuals and pharmacies
Australia and New Zealand provide medication management solutions to individuals and pharmacies Our platform allows users to: • Order, manage, and track their National 45 health medications pharmacy programs coverage of sponsored • Receive reminders for when to 95% by pharma take them • Access educa
Slide 19: Increasing market footprint through strategic partnerships in Australia and New Zealand
Increasing market footprint through strategic partnerships in Australia and New Zealand GuildCare transition on 3.1 million connected patients Australia • track • • 45 Health Programs in 1H FY23 • >15,000 new patients • New contracts with six • Long term SaaS agreements connected per month pharma or
Slide 20: GuildLink integration on track for scheduled completion by 30 June 2023
GuildLink integration on track for scheduled completion by 30 June 2023 MedAdvisor will have over 5,700 pharmacies in our network, which equates to 95% of the AU market by the end of April 2023 • The focus has been on migrating 1,494 GuildCare Phase 1 and Phase 2 on track for scheduled completion ph
Slide 21: Agenda
Agenda Performance Highlights Financial Results Business Update Pathway to Profitability MedAdvisor 1H FY2023 Investor Presentation | 21
Slide 22: Pathway to Profitability
Pathway to Profitability Global Platform Business Operations Product Innovation Australia United States United Kingdom • Successful completion of • Grow digital patient reach to • Accelerate expansion GuildLink integration over 100M • Obtain commitment from 500 • Grow patient reach • Expand digital
Slide 23: Your Health in Your Hands
Your Health in Your Hands ©MedAdvisor Limited ABN 17 145 327 617