Adheris Health Limited · ASX:AHE
Adheris Health — FY2020 Earnings Presentation
27 slides from Adheris Health's earnings presentation, Aug 27, 2020
Slide 1: FY20 Results Presentation
Brooke, MedAdvisor patient FY20 Results Presentation 27 AUGUST 2020 1
Slide 2: Important notice
Important This Presentation is dated 27 August 2020 and has been prepared by MedAdvisor Limited ACN 145 327 617 (MedAdvisor or the Company) for information notice purposes only. This Presentation is not an offer or invitation to acquire securities in MedAdvisor and is not a disclosure document. It i
Slide 3: Agenda
Agenda Business update Chris Ridd Non-Executive Director, Chairman Robert Read Financial update Chief Executive Officer Simon Glover Chief Financial Officer Strategy update Steve Watt Chief Revenue Officer Q&A 3
Slide 4: Business Update
Robert Read Chief Executive Officer Business Update 4
Slide 5: Strong foundation for future growth
Strong PA T IEN T S 1.7 O PER A T IN G R EVEN U E ARR foundation m + 42% YO Y $ 9.6m + 16. 5% YO Y $ 6.3m+ 15. 3% YO Y for future PH A R M A C IES growth 3,500 SA A S R EVEN U E G R O SS M A R G IN + $ 5.9m $ 8.4m + 19. 4% YO Y + 16. 0% YO Y AU + 260 Y O Y PA T IEN T S PER PH A R M A C Y 450 T O T A
Slide 6: Driving diversified revenue growth
Driving OPERATING REVENUE diversified revenue growth $9. 6m $8. 2m + 16. 5% YO Y + 24. 8% YO Y Solid performance from SaaS revenue driven by growth in network $6. 6m Transaction revenue mix is evolving with the introduction of in-app payments and changes in SMS as more patients migrate to app-based
Slide 7: Investing in building the platform
Investing in THE MEDADVISOR building the PLATFORM platform HOSPITALS PHARMACIES Connecting the healthcare system by building a platform which spans the ecosystem - patient, pharmacy, PATIENT insurer, GP and pharmaceutical End-to-end integration - GP, scripts, dispensing, delivery, adherence Global d
Slide 8: COVID-19 changed the game
COVID-19 changed the game Provision of Changed the Government Business healthcare landscape support pace Tech-first approach has Cultural shift in adoption of Australian Government Business pace has slowed been adopted via digital tech in health and allocated $1.1bn to health in the US & UK, however
Slide 9: Helping our customers navigate COVID-19
Helping our Enhanced pharmacy customers software to improve remote patient navigate management COVID-19 Enabled patients to digitally order, pay for, and have medications Helping patients maintain social distancing and supporting pharmacies delivered cope with demand by launched in-app payment which
Slide 10: Australian highlights
Australian highlights 25 + % $ 6.3m H EA L T H PR O G RA MS ARR + 15. 3% YO Y Expanded digitally connected patients from 1.2 million to 1.7million up 42% Grew pharmacy network by +8% Signed agreements with 3 pharmacy groups 60 > % PH A R M A C Y 260 + N EW PH A R M A C IES including 2-year agreement
Slide 11: International highlights
International Signed agreement with highlights HMS to provide health programs in the US First revenue from international markets Boosted sales capabilities in US with appointment of two senior US-based Launched first US health executives to drive engagement programs with Adheris in UK’s National Pha
Slide 12: Corporate highlights
Corporate MEDADVISOR highlights LEADERSHIP Raised $17 million in Steve Watt Simon Glover oversubscribed placement with CRO CFO HMS as cornerstone investor to accelerate international growth Appointed new Chair Chris Ridd, and US-based Jeff Sherman as Naomi Lawrie NED to add industry experience Craig
Slide 13: Financial Update
Simon Glover Chief Financial Officer Financial Update 13
Slide 14: Revenue continues to climb
Revenue Full year financial statement Year ended 30 June 2020 ($000) FY20 FY19 Var % +ve/(-ve) continues to Operating Revenue 9,603 8,242 16.5% Other Revenue 1,468 951 54.4% climb Total Revenue 11,071 9,193 20.4% Gross Margin 8,381 7,228 16.0% Gross Margin % 87.3% 87.7% (0.4%) Revenue growth of 20.4
Slide 15: Improving scale and operating efficiency
Improving scale GROSS MARGIN COST OF ACQUISITION and operating (PER PHARMACY) 87. 3% efficiency 87. 7% - 24% 87. 6% $8381.4m $7228.0m Gross margin stable at 87.3%, impacted $5783.1m by one-off costs for infrastructure technology uplift F Y18 F Y19 F Y20 F Y19 F Y20 CAC per pharmacy reduced as we ben
Slide 16: Driving revenue expansion: cash flow
Driving Cash flow Year ended 30 June 2020 ($000) FY20 FY19 $ Var revenue Total operating cash receipts 11,420 8,947 2,473 expansion Total operating cash payments (20,100) (15,892) (4,208) Net cash inflow / (outflow) from operating (8,681) (6,945) (1,735) activities Total cash receipts $11.4m, +28% Y
Slide 17: Well positioned for growth
Well Balance sheet Year ended 30 June 2020 ($000) FY20 FY19 $ Var positioned Cash & cash equivalents 12,345 4,401 7,944 for growth Trade receivables 1,839 1,130 710 Other 376 407 (32) Net Assets of $17m, +96% YOY Current Assets 14,560 5,938 8,623 Strong cash position driven by capital raising and re
Slide 18: Strategy Update
Robert Read Chief Executive Officer Strategy Update 18
Slide 19: Strategic trends
Strategic trends Race to adopt Consumer Increased Pharmacies needing digital health empowerment government funding to compete differently solutions to support new globally models of care 19
Slide 20: $630B global market problem
$ 630 B global market problem UNITED STATES SOUTH EAST ASIA Medication non-adherence is a $US630B global problem UNITED KINGDOM 125,000 deaths alone in the US from medication non-adherence ~1 in 2 people have a chronic condition in developed markets Large global pharmaceutical company customer base,
Slide 21: Strategic priorities
Strategic TECH & PRODUCT priorities PEOPLE Uplift our technology creating Establish a performance awesome solutions culture where talented people do meaningful work MARKETING SALES Build a world-class Invest in global sales marketing organisation organisation – capability, tools, people GROWTH Execu
Slide 22: Strategic investment
Strategic investment Global focus Goals Delivery Build on existing Grow global addressable Large global patient pool partnerships including HMS, patient pool Adheris and Zuellig Growing pharmacy Increase sticky client-base SaaS business Invest in product development Reduce cost-to-serve Strong healt
Slide 23: Questions & Answers
Questions & Answers 23
Slide 24: Appendix
Appendix 24
Slide 25: Balance sheet
Balance Year ended 30 June 2020 ($000) Cash & cash equivalents FY20 12,345 FY19 4,401 $ Var 7,944 sheet Trade receivables Other 1,839 376 1,130 407 710 (32) Current Assets 14,560 5,938 8,623 Property, plant & equipment 394 405 (12) Intangibles 6,318 5,182 1,136 Other - 250 (250) Total Non Current As
Slide 26: Cashflow
Cashflow Year ended 30 June 2020 ($000) RECEIPTS FROM CUSTOMERS (inclusive of GST) FY20 10,130 FY19 8,063 $ Var 2,067 PAYMENTS TO SUPPLIERS AND (20,005) (15,892) (4,114) employees (inclusive of GST) Receipt from R&D Tax concession 1,188 750 439 Interest received 101 134 (32) Interest paid (95) 0 (95
Slide 27: mymedadvisor.com/investors
mymedadvisor.com/investors 27