Codelab Capital As · OSL:CODE
Codelab Capital As — PatientSky Group — Q3 2021 Earnings Presentation
31 slides from Codelab Capital As's earnings presentation, Nov 29, 2021
Slide 1: PatientSky Group 3Q 2021
PatientSky Group 3Q 2021 OSLO, November 29th, 2021 PatientSky
Slide 2: Disclaimer and Forward-Looking Statements
yy DISCLAIMER AND FORWARD-LOOKING STATEMENTS PatientSky This presentation (the "Presentation") has been produced by PatientSky Group AS (the "Company", and together with its subsidiaries, the "Group") solely for information purposes. This Presentation may not be reproduced or redistributed, in whole
Slide 3: Today's presenters
Today’s presenters Kristian Ikast, CEO Christoffer Mathiesen, CFO « PatientSky Board Member in 2020 + Global CEO and MD experience from ECCO, KIWI, and Clipper * CFO since 1. Nov 2021 + Experience from DNB Markets, Pareto Securities and Medici Corporate Stian Husveeg, Interim CFO * Started as interi
Slide 4: Agenda
J PatientSky AGENDA 3Q highlights The PatientSky business Financials Q&A Closing remarks toe ee ISS
Slide 5: Main events Q3 2021
Main events Q3 2021: + Appointment of new Group CEO - Kristian Ikast + Appointment of new MD in PatientSky Norway — Kjell Magne Solli + Announcing End of Life Promed — cloud migration to be completed 1Q22 + Reorganizing into planned Business Units according to plan + Signed new HQ at Skoyen (Hoffsve
Slide 6: Introduction to PatientSky
Introduction to PatientSky + Aplatform company - open, scalable low code platform * The SaaS Business is the leading cloud-based EHR provider in Norway with 2 516‘ clinics and NOK 191m in ARR + SaaS Business delivering recurring revenue growth of 17% and 30% EBITDA-capex margin * 180 FTEs with headq
Slide 7: A simplified snapshot of the current business models
A simplified snapshot of the current business models Category Platform (PaaS) Software (SaaS) Phase Typical customers Key products Revenue model Strategy / operational Financials / KPIs Investment phase, scale-up Software companies, system integrators, service providers, HIE and VNA companies, loT d
Slide 8: Our platform is different from our EHR cloud competitors'
Our platform is different from our EHR cloud competitors’ CD PatientSky Key features of the PS 360 platform * Tailormade boilerplate for healthcare applications * Low code / easy to use * 140 microservices (+60 last year) * Open for everyone + Reusable and global (no country-specific) International
Slide 9: Our platform is different from our EHR cloud competitors'
Our platform is different from our EHR cloud competitors’ CD PatientSky A tool for digital health solutions Other Many of our SaaS competitors (web and cloud-based) say they have a platform. SaaS players PatientSky So how does the PS platform differentiate? Sees + Others have an EHR software tailore
Slide 10: New strategy: Launch now
• • • o • • • • • Illustrative Launch now New strategy 10
Slide 11: The SaaS business unit is currently the revenue generating unit of the Group
The SaaS business unit is currently the revenue generating unit of the Group and is the market leader in Norway within EHR-software The SaaS business unit introduction CD PatientSky Status and priorities Est. 2014 . ' A (greenfield) Acquired 2018 Acquired 2020 Acquired 2017 . a Hove Total (cloud) In
Slide 12: We are re-organizing into independent business units
We are re-organizing into independent business units to improve C by the internal focus and visi Simplified group structure, effective from 1.1.22 'y of the underlying financial performance PatientSky Comments Group AS Listed and bond issuer C27) C26 @ PaaS SaaS App The business units will have indi
Slide 13: Finance function status - goals and aspirations
QDs Finance function status —- goals and aspirations PatientSky * One common ERP system, integrated with CRM tool * Earlier financial release —- corresponds to improved internal processes + More transparency — improve existing and include additional KPls and information per BU * Consistency in repor
Slide 14: • • • • 43% 25% 30% • 22% 24% 24% 12%
• • • • 43% 25% 30% • 22% 24% 24% 12% 14
Slide 15: Revenue impacted by declining non-recurring revenue
Revenue impacted by declining non-recurring revenue, C by while recurring streams show sound organic growth rates PatientSky Revenue breakdown, NOKm Annualized growth, %' Comments * Cloud recurring revenue grew at an annualized rate of 49%, reflecting continued 9 51.4 51.7 49% migration of on-prem c
Slide 16: Unaudited Financials: Q3 Business Unit P&Ls
Unaudited Financials PatientSky has a highly profitable and cash generative SaaS Business, C b while the remaining financials reflect significant investments in PaaS PatientSky Q3 Business Unit P&Ls', NOKkm Comments The breakdown is based on preliminary SaaS Group Other management assessment of reve
Slide 17: Revenue: focus on migrations of EOL ProMed customers
Revenue PatientSky’s current focus is on migrations of EOL ProMed customers, expecting accelerated new sales tractions post-ProMed Illustrative and simplified topline expectations Key take-aways SaaS 4Q 21 1Q 22 2Q 22 Time 1. Migration / EOL period: + Active Promed migration since 2018 (limited effo
Slide 18: Uptick in migration speed through the quarter
Uptick in migration speed through the quarter resulting in 75 C ) new clinics on our cloud solutions PatientSky Paying EHR of customers', end-of-quarter Q3 customer development Mii cloud HM On-prem 2533 2526 2516 Cloud B - — us 935 980 1055 development i | a Start Q3 Churn New Upgraded End Q3 1598 1
Slide 19: Higher revenue per customer on both Cloud and On-prem
Benefiting from higher revenue per customer on both Cloud and On-prem CD PatientSky Updated Avg. Revenue per Customer! Avg. Revenue per Customer, NOK Comments + The Q3 increase reflects customers Avg. f _ ae r 928 ) r 958 ) C1018.) that were migrated during H1, and 15 _ 30 — 16112 invoiced from the
Slide 20: Consistent and low churn on our clouded EHR solutions
Consistent and low churn on our clouded EHR solutions, ( » with a clear tendency of churning lower value customers PatientSky Annualized churn’, % [ll Revenue churn [J Customer churn Consolidated churn On-prem churn Cloud churn @ e 4,9% Q1 2021 Q2 2021 Q3 2021 Q1 2021 Q2 2021 Q3 2021 Q1 2021 Q2 2021
Slide 21: MRR development through 2021
Unaudited Financials CD MRR development through 2021 driven by migrations and price increases PatientSky Continued Business MRR (ex ProMed), NOKm Comments HM uve licences MRR notifications 15.6 15.5 TEA + MRR development through 2021 shown ex 14.9 14.9 : Promed due to EoL announcement and 14.4 142 1
Slide 22: Highlights post 3Q21
Ds Highlights post 3Q21: PatientSky * All time high MRR in October of NOK 16m! + Appointment of new CFO * Appointment of additional independent board member representing a large shareholder * Good new sales month in Oct. with higher # licenses than entire 2Q 41) ExPromed
Slide 23: Slide 23
Slide 24: Outlook and final remarks
QDs Outlook and final remarks PatientSky * Continued ramp-up of platform organization, technology and pipeline * Focus on migration and then subsequently new sales in our SaaS business to increase growth and margins ¢ Platform partner agreements expected in 2H22 + 4Q21 results will be presented on t
Slide 25: Appendix
Appendix PatientSky
Slide 26: Detailed breakdown of PatientSky's Revenue and Growth
Detailed breakdown of PatientSky’s Revenue and Growth in 2021 C by 98% of this is the Norwegian SaaS Business PatientSky Revenue breakdown, NOKm Q12021 Q2 2021 Q3 2021 QoQ Comments Revenue by type Recurring 43.6 45.4 47.3 4.2% ~10% variable MRR (consumption and notifications) SaaS Recurring 42.6 44.
Slide 27: NOK 6.0m adj. EBITDA for the quarter
NOK 6.0m adj. EBITDA for the quarter mainly driven by more FTEs as we scale up PaaS and one extra month of salaries compared to 2Q21 Q3 2021 EBITDA bridge, NOKm Unaudited Financials 28) 15.5 93 (11.6) 30% ~ 03° (1.0) 6.0 12% medians Revenue COGS Salary OPEX Adj. Relbtesneets CD PatientSky Comments o
Slide 28: Group Consolidated P&L
Appendix Group Consolidated P&L PatientSky © usted nance NOKm Q3 2020 Q3 2021 YoY Adjustment Q3 2021 Adj. YoY Revenue 33.9 51.7 57% 51.7 57% COGS 5.3 6.9 29% 6.9 29% Gross profit 27.6 44.9 63% 44.9 63% Personnel expenses 19.8 27.3 38% (0.6) 26.7 35% Other OPEX 2.8 14.2 403% (2.0) 12.2 336% EBITDA 49
Slide 29: Group Consolidated Balance Sheet
Appendix Group Consolidated Balance Sheet Reported ncials PatientSky NOKm Q3 2020 Q3 2021 Key highlights ASSETS Q3 2021 development and highlights Customer relations 265 489 Research and development 161 232 Major investments in PaaS related activities and Goodwill 57 108 payment of sellers credit im
Slide 30: Group Consolidated Cash Flow Statement
Appendix Group Consolidated Cash Flow Statement Reported financials NOKm Q3 2021 Q3 2021 YTD Profit/loss before tax (27.5) (67.9) Taxation paid - - Ordinary depreciation 26.6 79.3 Change in inventory, receivable and 8.5 47 payable Change in other accrual items (32.1) (14.4) Net cash flows from opera
Slide 31: Q&A
Cr» PatientSky