Austco Healthcare Ltd · ASX:AHC
Austco Healthcare — Azure Healthcare — Non-Deal Roadshow (March 2019)
28 slides from Austco Healthcare's roadshow presentation, Mar 25, 2019
Slide 1: Roadshow
ROADSHOW 25 & 26 MARCH 2019 CLAYTON ASTLES, CEO & BRENDAN MAHER, CFO 1
Slide 2: ASX:AZV Snapshot
ASX:AZV SNAPSHOT Global leader in the design and manufacture of sophisticated, high quality, nurse call and clinical workflow solutions MARKET INFORMATION COMPANY INFORMATION FINANCIAL INFORMATION FY18 Profitable with strong cash Shares on Cash Flow from Ops $2.0M Issue 232,712,826 Financial Positio
Slide 3: Marketplace & Products
MARKETPLACE & PRODUCTS 3
Slide 4: Global Demand
GLOBAL DEMAND Nurse call system market grew by GLOBAL NURSE CALL MARKET * (USDm) an average 17.2% pa from 2013 to 2017, and is expected to more than double from 2017 to 2025, 3,000 driven by: 2,666 • aging populations 11.3% CAGR 2,250 • increasing demand for better clinical outcomes 1,500 • continua
Slide 5: Global Market
GLOBAL MARKET Current and future demand Revenue by facility % 2020 3 year dominated by hospitals and type (USDm)* 2017 2020 total growth assisted living centres, accounting for almost 90% of the Hospitals 814.0 1,112.2 70.4% 36.6% market and its growth: • hospital systems tend towards Outpatient cli
Slide 6: Nurse Call Systems
NURSE CALL SYSTEMS “Nurse call" covers a spectrum of healthcare communications systems of vastly different capabilities, with the best offering life saving capability INTEGRATED Sophisticated communication systems Physical or voice initiated Fully integrated with other MOBILE care systems, including
Slide 7: Azure Global Presence
AZURE GLOBAL PRESENCE USA/CANADA SINGAPORE Markets North America, Markets Asia. Middle East Latam GLOBAL COVERAGE Sales A$12.3m Sales A$3.6m Employees 57 Employees 15 Activities Sales, R&D, Activities Sales Manufacturing UK AUSTRALIA/NZ Markets Europe Markets Australia, NZ Sales A$2.3m Sales A$10.8m
Slide 8: Tacera
TACERA Internet Protocol based nurse call and clinical workflow solution that ensures rapid and effective responses to patient calls Key Features • Real-time data distribution enabling faster response times with alerts sent to specific carers: • optimising workflows and procedures Restructure • redu
Slide 9: Tacera Pulse
TACERA PULSE Suite of software applications that integrates mobile applications and business intelligence tools with an interactive dashboard, enabling healthcare providers to make data driven decisions in real time Key Features • Interfaces with systems such as Real-Time Locating Systems (RTLS), Re
Slide 10: New Products
NEW PRODUCTS NEXT GENERATION CALL SMART WATCH APPS WORKFLOW STATION POINTS • Hands-free care • 10” Android tablet • Smart technology to • Ideal notification • Surface mount manage tasks depending devices • Custom profiles on carer present • Focused on • All new interface • Built in RTLS alarm • 8 la
Slide 11: The Future
THE FUTURE FY18 R&D spend of $3.4 million is a 9.7% increase over 2017 with $0.74 million development cost from 2H18 capitalised to reflect development of IP CONSISTENT USER WEB SERVICES AUGMENTED REALITY INTERFACE • Across all screens, mobile, • Open API for alarms • Voice &/or gesture control to c
Slide 12: Financial Performance
FINANCIAL PERFORMANCE 12
Slide 13: 1HFY19 Financial Snapshot
1HFY19 FINANCIAL SNAPSHOT Revenue Margin NPAT $14.97m $6.66m ($0.47m) Normalised $6.84m Normalised $0.26m $0.73m or Consistent with pcp Normalised 5.1% on pcp ($0.18m) or (41%) on pcp Cashflow from Net Cash operations $1.60m $0.68m ($0.5m) from $0.22m or 30 June 49% on pcp
Slide 14: Revenue Model
REVENUE MODEL Equipment 2018 REVENUE BREAKDOWN • One off sales with margins between 20% and 60% • Long shelf life which affects resales (up to 15 years) Equipment • Heavily weighted to the front end of the contract life Installation Software Software 11% Installation • Sales cycle is 12 to 24 months
Slide 15: Revenue
REVENUE Continued growth in sales revenue over pcp SALES REVENUE (A$000S) and November `18 guidance: • $1.44m (10.7%) above November `18 guidance 14,972 • $0.73m (5.1%) increase over 1HFY18 14,242 • 7% CAGR from 1HFY17 • Aust/NZ, Asia and Europe all reported revenue 13,530 increases 13,054 • recurri
Slide 16: Gross Profit & Margin
GROSS PROFIT & MARGIN Gross margin down to 44.5% compared to GROSS PROFIT MARGIN 48% pcp: (A$000S) • negatively impacted by rising costs of raw materials resulting from US tariff imposts on 6,836 6,843 6,662 Chinese goods 5,990 48.0% 45.7% 44.5% • total CoGS up by 12.6% as result of increased 45.9%
Slide 17: Overhead Expenses
OVERHEAD EXPENSES Overhead increased by $0.71m to OVERHEAD EXPENSES $7.11m in 1H19: (A$000S) • increase driven by large one off costs of $0.54m related to management 8,256 restructuring • normalised overhead increased 2.6% over 544 1H18 to $6.57m 6,567 6,399 • the business remains committed to R&D,
Slide 18: Cash & Debt
CASH & DEBT Cashflow from operations continue to Net cash was largely unchanged over the improve: period with a minor decrease of $0.05m from $1.65m to $1.60m: • cashflow from operations of $0.68 million increased from $0.45 million in the pcp • debt was reduced by $0.24m • cash was reduced by $0.30
Slide 19: Strategy & Outlook
STRATEGY & OUTLOOK 19
Slide 20: Progress on Strategy
PROGRESS ON STRATEGY Strategic Objective Status Diversify supply sources away from China to lessen impact of ‣ Currently trialling new suppliers from China/USA trade disputes and tariffs Australia, USA and Taiwan Focus on high quality new products that differentiate Azure from ‣ Released new product
Slide 21: Outlook
OUTLOOK External Internal • Increasing shift towards open • Order book remains significantly software packages to accompany higher than forecast despite supply hardware constraint issues • Procurement challenges will continue • Strong demand across all geographic to be dominated by trade issues segm
Slide 22: Wrap Up
WRAP UP Significant Flagship product attractive market pipeline to global market Positive cash flow Strong R&D focus from operations Positioned Restructure Complete for Growth No long-term debt Cash at bank Underlying profitability Clean balance sheet Azure Healthcare is well-placed to benefit from
Slide 23: Appendices
APPENDICES
Slide 24: Board & Management
BOARD & MANAGEMENT Graeme Billings Brett Burns Anthony Glenning Clayton Astles Brendan Maher Non-Executive Director Non-Executive Director MD & CEO CFO & Company Secretary Chairman Graeme has been a Chartered Before becoming a founding Tony is a CEO, Non-Executive Based in Texas, Clayton Brendan is
Slide 25: 5 Year Earnings
5 YEAR EARNINGS A$000 2014 2015* 2016 2017 2018 NOTES Sales revenue 31,308 33,497 31,570 28,919 28,940 Total revenue 31,319 34,962 32,028 29,191 28,948 Gross profit 17,649 18,298 15,654 13,517 14,134 Asset sale - - 460 - CellGuard divestment Overhead (13,758) (17,604) (18,803) (14,905) (12,557) Incl
Slide 26: 5 Year Balance Sheet/Cash Flow
5 YEAR BALANCE SHEET/CASH FLOW A$000 2014 2015* 2016 2017 2018 NOTES Current assets 15,884 17,002 16,127 16,735 15,491 Non-current assets 5,414 5,967 5,858 617 1,323 Total assets 21,298 22,969 21,983 17,375 16,814 Current liabilities 6,569 7,320 9,733 9,047 7,195 Non-current liabilities 355 112 80 4
Slide 27: Disclaimer
DISCLAIMER This Publication does not constitute an offer, invitation or recommendation for the sale or purchase of any securities in any jurisdiction. References to, and the explanation of, legislation and regulatory issues in this Publication are indicative only and should not be relied on. They do
Slide 28: Azure Healthcare Limited
\a d AZURE HEALTHCARE LIMITED