Omnicell, Inc. · NASDAQ:OMCL
Omnicell — Investor Day (September 2022)
71 slides from Omnicell's investor day presentation, Sep 20, 2022
Slide 1: Investor Day September 2022: Positioning Omnicell for the Future
Investor Day September 2022 Positioning Omnicell for the Future © 2022 Omnicell, Inc. 1
Slide 2: Agenda
© 2022 Omnicell, Inc. Agenda Welcome Kathleen Nemeth, Senior Vice President, Investor Relations Strategic Overview & Opportunity Randall Lipps, Chairman, President, Chief Executive Officer & Founder Pharmacy Transformation & the Shift to Services Scott Seidelmann, Executive Vice President & Chief Co
Slide 3: Forward-Looking Statements
© 2022 Omnicell, Inc. Forward - Looking Statements This presentation contains “forward - looking statements” within the meaning of federal securities laws. These forward - looking sta tements include statements with respect to expected benefits and objectives of Omnicell’s products and services, str
Slide 4: Strategic Overview & Opportunity
Strategic Overview & Opportunity Randall Lipps, Chairman, President, Chief Executive Officer & Founder 4 © 2022 Omnicell, Inc.
Slide 5: Celebrating 30 Years… But we are just getting started
© 2022 Omnicell, Inc. Pharmacy as a cost center Pharmacy as a profit center Celebrating 30 Years… But we are just getting started 5 Omnicell has the right solutions and righ t business model to meet the industry's evolving needs. Technological advancements Robotics Omnicell Advancements Industry Tre
Slide 6: Our Mission and Vision
© 2022 Omnicell, Inc. Our Mission Our Vision D eliver the most compelling automation and services that accelerate pharmacy perfection. Be the clinician’s most trusted partner for medication management. We are dedicated to continuously deliver innovative technology that helps our customers improve pa
Slide 7: The Challenge: Our Healthcare System is Broken
© 2022 Omnicell, Inc. The Challenge: Our Healthcare System is Broken The healthcare industry is trying to drive clinical standardization often creating siloed settings of care. 7 7
Slide 8: Medication Management is Part of the Problem
© 2022 Omnicell, Inc. Medication Management is Part of the Problem Better processes and better technology are needed to manage Medication Management across the entire continuum of care. 8
Slide 9: Omnicell is uniquely positioned to solve medication management problems
© 2022 Omnicell, Inc. Omnicell is uniquely positioned… to solve the problems of medication management. 9
Slide 10: Leader in Large and Growing Segments
© 2022 Omnicell, Inc. 10 Leader in Large and Growing Segments 1. Represents estimated cumulative TAM over 10 years as of 5/31/2022 and includes the United States, UK&I, Germany, France, Spai n, Kingdom of Saudi Arabia and Australia/New Zealand.. Omnicell is growing its leadership position across a p
Slide 11: Omnicell — Across the Continuum of Care
© 2022 Omnicell, Inc. Omnicell — Across the Continuum of Care install base in US retail pharmacy sector ~80% of post - acute sector served by Omnicell customers >60% install base in US hospitals 1 ~50% Omnicell has 30 years of experience within medication management across the entire continuum of ca
Slide 12: Our Comprehensive Solutions Deliver Better Healthcare Value
© 2022 Omnicell, Inc. Our Comprehensive Solutions Fundamentally Deliver Better Healthcare Value 12 1. Future services and future devices represent potential future technology that is under development and may or may not ever be com e generally available to the commercial marketplace. Omnicell makes
Slide 13: Evolving Management Team Towards SaaS and Digital Healthcare
© 2022 Omnicell, Inc. Evolving Management Team Towards SaaS and Digital Healthcare 8 management team members with robust healthcare tech industry expertise +200 years combined technology services experience 7 new management team members in the last 4 years with a focus on healthcare, technology, clo
Slide 14: Our Strategy
© 2022 Omnicell, Inc. Our Strategy Fundamentally transform the pharmacy care delivery model by delivering a set of services that touch the entire continuum of care, built on a single cloud platform. 14
Slide 15: Autonomous Pharmacy Vision and Growth Opportunity
© 2022 Omnicell, Inc. Driving innovation and continuing to deliver the Autonomous Pharmacy Vision Growing and expanding within large existing customer base (sites & platform solutions) Capitalizing on next generation technology Continuing market share gains Executing value - enhancing M&A, which can
Slide 16: M&A Driving Advanced Services
© 2022 Omnicell, Inc. M&A Driving Advanced Services Focused on medication management and technology with cross - selling potential Strong cultural and solution fit with strong value proposition for Omnicell customers Accretive to growth and profitability with strong recurring revenue profile and abi
Slide 17: Capitalizing on Growth Opportunities
© 2022 Omnicell, Inc. Capitalizing on Growth Opportunities 17 DISCLAIMER: We do not provide a reconciliation of forward - looking non - GAAP measures to the comparable GAAP measures as these it ems are inherently uncertain and difficult to estimate and cannot be predicted without unreasonable effort
Slide 18: A Better Way: Our ESG Strategy
© 2022 Omnicell, Inc. A Better Way: Our ESG Strategy Innovation Accelerating for Perfection Design, and deliver, our products to minimize environmental footprint while maximizing patient outcomes Environment Innovating for Energy Efficiency Actively contribute to realize 1.5 ƒ Celsius future by 2030
Slide 19: A Better Way: Our ESG Strategy in Action
© 2022 Omnicell, Inc. 19 A Better Way: Our ESG Strategy in Action 1. Source: Omnicell’s 2021 Corporate Responsibility Report 2. Sustainalytics ESG Risk Rating Report published on 6/2/2022. 3. MSCI report published on 7/26/2022. 44% of Board are women or racially / ethnically diverse Zero safety defe
Slide 20: Why we win?
© 2022 Omnicell, Inc. Why we win? Pharmacy focused True strategic customer partnerships Comprehensive solution portfolio Cloud enabled Services deliver real outcomes 20
Slide 21: Omnicell: Compelling Growth Opportunities
© 2022 Omnicell, Inc. Omnicell: Compelling Growth Opportunities 21 1. Represents estimated cumulative TAM over 10 years as of 5/31/2022 and includes the United States, UK&I, Germany, France, Spain, Kingdom of Saudi Arabia and Australia/New Zealand. Category creator transforming the pharmacy care del
Slide 22: Pharmacy Transformation & the Shift to Services
Pharmacy Transformation & the Shift to Services Scott Seidelmann, Executive Vice President & Chief Commercial Officer 22 © 2022 Omnicell, Inc.
Slide 23: Omnicell is uniquely positioned to solve medication management problems
© 2022 Omnicell, Inc. Omnicell is uniquely positioned… to solve the problems of medication management. 23
Slide 24: Healthcare Challenges
Healthcare Challenges CLINICAL 20 – 30% of prescriptions never filled 1.3M ED visits from adverse drug events in outpatient settings 350K hospitalizations from adverse drug events in outpatient settings 125K potentially preventable deaths from poor medication adherence ECONOMIC in hospital nursing s
Slide 25: Helping Customers Achieve Better Results
We are Focused on Helping Customers Achieve Better Results IMPROVE PATIENT OUTCOMES INCREASE STAFF EFFICIENCY REDUCE COST REDUCE COMPLIANCE RISK INCREASE REVENUE 25 © 2022 Omnicell, Inc.
Slide 26: Our Strategy
© 2022 Omnicell, Inc. Our Strategy Fundamentally transform the pharmacy care delivery model by delivering a set of services that touch the entire continuum of care, built on a single cloud platform. 26
Slide 27: Patient Engagement (EnlivenHealth) TAM
© 2022 Omnicell, Inc. 27 Patient Engagement (EnlivenHealth) $1.1B TAM – Potential Annual Recurring Revenue Opportunity 27
Slide 28: Inventory Optimization (Omnicell One & 340B) TAM
© 2022 Omnicell, Inc. 28 Inventory Optimization (Omnicell One Ρ & 340B) $1.3B TAM – Potential Annual Recurring Revenue Opportunity 28
Slide 29: Outpatient Pharmacy Services TAM
© 2022 Omnicell, Inc. 29 Outpatient Pharmacy Services (fka ReCept Specialty) $1.9B TAM – Potential Annual Recurring Revenue Opportunity 29
Slide 30: Central Pharmacy Dispensing Service (CPDS) TAM
© 2022 Omnicell, Inc. 30 Central Pharmacy Dispensing Service (CPDS) $2.4B + $0.4B TAM – Potential Capital + Annual Recurring Revenue Opportunity 30
Slide 31: IV Compounding Service (IVCS) TAM
© 2022 Omnicell, Inc. 31 IV Compounding Service (IVCS) $1.1B + $0.4B TAM – Potential Capital + Annual Recurring Revenue Opportunity 31
Slide 32: Large annual recurring addressable market
And we now have a large annual recurring addressable market Advanced Services Annual Recurring Revenue TAM $1.2 $5.5 $0 $1 $2 $3 $4 $5 $6 $7 $8 2019 2022 Billions +377% ▪ Annual recurring revenue TAM is driving most of our TAM expansion 32
Slide 33: Recurring Revenue Addressable Market Inside Current Customer Base
We Have Significant Annual Recurring Revenue Addressable Market Inside Our Current Customer Base Within existing customer base , 51% Outside existing customer base , 49% $5.5 $0 $1 $2 $3 $4 $5 $6 $7 $8 2022 Billions Advanced Services Annual Recurring Revenue TAM 33 © 2022 Omnicell, Inc.
Slide 34: Achieving Long-Term Targets With Low Market Share
© 2022 Omnicell, Inc. 34 We Can Achieve Our Long - Term Targets With Less Than 10% Market Share Capture ~ 6% 20 20 20 - 30% 202 5E ~ 50% 2020 - 2025 Targeted Revenue CAGR 20 21A 10% SaaS, Sub SW & Tech - Enabled Services (% of Total Revenue) We forecast 7 - 10% market share for our Advanced Services
Slide 35: Point of Care to Home Medication Management Continuum
35 Point of Care IV Compounding Central Distribution Inventory Management Retail Home Point of Care IV Compounding Central Distribution Inventory Management Retail Home © 2022 Omnicell, Inc. 35
Slide 36: The Autonomous Pharmacy Framework – an Industry Vision
The Autonomous Pharmacy Framework – an Industry Vision 36 © 2022 Omnicell, Inc.
Slide 37: What's on Customers' Minds Regarding IV?
Extended Dating, Inventory O ptimization 503B Supply Chain/Reliability OR RTA Syringes Emergency Readiness Drug Shortages Staffing Shortages Controlling Spend USP 797/800 Compliance What’s on Customers’ Minds Regarding IV? 37 © 2022 Omnicell, Inc.
Slide 38: IV Compounding Service (IVCS)
IV Compounding Service (IVCS) IVCS is a comprehensive solution designed to transform IV sterile compounding operations and drive value. Advanced Robotics Intelligent Analytics Expert Services Reduce Medication Cost Improve Labor Efficiency Reduce Stockouts Designed to: 38 © 2022 Omnicell, Inc.
Slide 39: We Perpetually Curate Knowledge to Improve our Services
39 We Perpetually Curate Knowledge to Improve our Services © 2022 Omnicell, Inc.
Slide 40: Omnicell is uniquely positioned to transform the pharmacy care delivery model
© 2022 Omnicell, Inc. Omnicell is uniquely positioned to transform the pharmacy care delivery model Pharmacy has big, important problems to solve Comprehensive solutions portfolio driving value Potential >$90B 10 - year TAM with a $5B annual recurring revenue market Advanced Services driving our lon
Slide 41: An Introduction to EnlivenHealth
An Introduction to EnlivenHealth® Danny Sanchez, Senior Vice President & General Manager, EnlivenHealth® 41 © 2022 Omnicell, Inc.
Slide 42: PRESCRIBE
PRESCRIBE YEARS ASSESS FSNnadsia ADMINISTER
Slide 43: What's the Problem?
© 2022 Omnicell, Inc. What’s the Problem? “Patients average 34 visits to their pharmacy per year vs 4 visits to their medical provider .” Drug Topics Magazine, 2019 “Pharmacist burnout is a significant patient safety issue. It is impacting patients today with delayed prescription fulfillment, unacce
Slide 44: Why These Problems Persist in Retail Pharmacy
© 2022 Omnicell, Inc. Why These Problems Persist in Retail Pharmacy Inefficient Pharmacy Workflows Constant Battle to Retain Patients Growing Demand for Clinical Services Poor Management of Pharmacy Financials 44 The Great Resignation: How Is It Impacting the Pharmacy Industry? Retail Pharmacy Has R
Slide 45: The Complete Pharmacy Solutions Platform
© 2022 Omnicell, Inc. The Complete Pharmacy Solutions Platform 45 1. This solution achieved a nearly 20% reduction in inbound call transfers for an EnlivenHealth pharmacy customer based in the M idw est. This reduction translates into a significant decrease in phone interruptions for the pharmacy st
Slide 46: EnlivenHealth Works With More than 50,000 Retail Pharmacies
© 2022 Omnicell, Inc. EnlivenHealth Works With More than 50,000 Retail Pharmacies in the USA And thousands of independent pharmacies 46
Slide 47: By the Numbers: Accelerating Pharmacy Growth
© 2022 Omnicell, Inc. 47 By the Numbers: Accelerating Pharmacy Growth 0 10,000 20,000 30,000 40,000 50,000 60,000 2020 2021 2022 1. According to NCPDP DataQ 2022. 64,000 retail pharmacies in the U.S. 1 ~31% ~78% ~78% Number of Pharmacies EnlivenHealth Engages With
Slide 48: Customer Case Study
© 2022 Omnicell, Inc. Customer Case Study ANNUAL RECURRING REVENUE PLATFORM PURCHASED SOLUTIONS SOLUTIONS IN DISCUSSION Patient Engagement Solutions Patient Communications Next - Gen Communications Platform Clinical Solutions Medication Synchronization & CareScheduler Expanded Clinical Applications
Slide 49: National Chain: Prospect Example
© 2022 Omnicell, Inc. National Chain: Prospect Example 49 1. Tier 1 is defined as a top 5 retail pharmacy chain Initial Products Other Interested Products Tier 1 1 Pharmacies utilizing our solutions 5 Solutions initially under contract $29M Annual TAM for current product portfolio $50M Booking value
Slide 50: EnlivenHealth Growth Strategies
© 2022 Omnicell, Inc. EnlivenHealth Growth Strategies Leverage significant position with integration of FDS Amplicare and MarkeTouch Media “Land & expand”: Cross - sell full range of digital SaaS solutions Continue to cross - sell with Health System solutions 50
Slide 51: Capitalizing on the Opportunity
Capitalizing on the Opportunity Peter Kuipers, Executive Vice President & Chief Financial Officer 51 © 2022 Omnicell, Inc.
Slide 52: Omnicell Business Model Evolution
© 2022 Omnicell, Inc. Omnicell Business Model Evolution 2025 Business Model • Advanced Services targeted to be ~20 - 30% of total revenue by 2025 • Platform adoption, expansion, market share gains, next generation technologies, and wallet share expansion driving growth • Resilient, highly valuable r
Slide 53: Driving Profitable Growth Through Disciplined Execution
© 2022 Omnicell, Inc. Driving Profitable Growth Through Disciplined Execution $ 1,900 – $ 2 ,000 2025E $1,133 2021A Expected Annual Non - GAAP Revenue ($ in Millions) $ 1,650 – $ 1,750 Continue to grow and expand within large existing customer base (sites & platform solutions ) Growth from next gene
Slide 54: Multiple Growth Drivers and Resilient Revenue
© 2022 Omnicell, Inc. Multiple Growth Drivers Resilient and High - Visibility Revenue Deep Customer Relationships & Robust Backlog • 150 of the top 300 U.S. health systems in long - term sole - source agreements 1 ; majority have multiyear co - development plans • Over 50,000 retail pharmacies and 7
Slide 55: Advanced Services Accelerating Recurring Revenue Growth
Advanced Services Accelerating Recurring Revenue Growth 55 SaaS, Subscription Software & Tech - Enabled Services (% of Total Revenue) 6% 20 20 20 - 30% 202 5E Leveraging established channel and strong customer relationships Strong demand driven by increasing provider digitization and need to evolve
Slide 56: Business Model Transformation — Revenue Composition
© 2022 Omnicell, Inc. ~55% ~20% ~20 - 30% Business Model Transformation — Revenue Composition 65% 25% 10% Intelligent Connected Devices, Software Licenses & Other Revenue 2021A 2025E ~45% SaaS, Subscription Software & Tech - Enabled Services CAGR 1 14 – 15% total revenue CAGR Recurring Technical Ser
Slide 57: Advanced Services Scaling
© 2022 Omnicell, Inc. SaaS, SW Subscriptions Tech - Enabled Services Components Omnicell One, EnlivenHealth, and Omnicell 340B IVCS, CPDS, and Outpatient Pharmacy Services 2025 Market Share Assumptions 1,2 7 - 10% 2025E Target Recurring Revenue $250M to $400M $125M to $200M 2025E Target Gross Margin
Slide 58: SaaS and Software Subscriptions Model
© 2022 Omnicell, Inc. SaaS and Software Subscriptions Model YEAR 1 YEAR 2 YEAR 3 YEAR 4 – 5 YEAR 1 YEAR 2 YEAR 3 YEAR 4 – 7 Advanced Services Business Model — Customer Example End of year 7 Net sales type lease balance: $0 Transition to Advanced Services business model provides: 1) Increased value t
Slide 59: Improving Business Mix and Key Drivers of Margin Expansion
© 2022 Omnicell, Inc. Improving Business Mix SaaS, Subscription Software & Tech - Enabled Services targeted to represent 20 – 30% of revenue by 2025, supporting strong gross margins Long - Term Customer Partnerships Sole - source agreements with 150 of the top 300 U.S. health systems 1 and many outs
Slide 60: Continuing to Drive EBITDA Margin Expansion
© 2022 Omnicell, Inc. 2022E Volume & Scale Price & Product / Customer Mix Supply Chain Initiatives COGS & OpEx Inflation Cloud Innovation & Investments 2025E 2017A Volume & Scale Price & Product / Customer Mix Supply Chain Initiatives COGS & OpEx Inflation Cloud Innovation & Investments 2022E Contin
Slide 61: M&A Framework
© 2022 Omnicell, Inc. M&A Framework • Medication management and technology focused • Product and market adjacencies, with a focus on Advanced Services • Cross - selling potential and opportunities to leverage Omnicell sales channel • Strong cultural fit • Solution fit within Omnicell sales channel •
Slide 62: Strong Balance Sheet
© 2022 Omnicell, Inc. Strong Balance Sheet Continuing to target free cash flow greater than GAAP net income Free cash flow projected to grow slower than EBITDA as Omnicell reinvests in the transformation to Advanced Services Liquidity and capital structure support growth strategy $32M $1,016M $554M
Slide 63: Key Financial Takeaways
© 2022 Omnicell, Inc. Key Financial Takeaways Targeting to grow total revenue to $1.9 – $2.0B in 2025 Targeting 14 – 15% 2021 – 2025 total revenue CAGR (organic 11 – 12%, inorganic 3%) Targeting 2025 non - GAAP EBITDA margin of ~23% Advanced Services growth driving recurring revenue to ~45% of total
Slide 64: Conclusion
Conclusion Randall Lipps, Chairman, President, Chief Executive Officer & Founder 64 © 2022 Omnicell, Inc.
Slide 65: Today's Key Takeaways
© 2022 Omnicell, Inc. Today's Key Takeaways 65 1. Represents estimated cumulative TAM over 10 years as of 5/31/2022 and includes the United States, UK&I, Germany, France, Spai n, Kingdom of Saudi Arabia and Australia/New Zealand.. Omnicell has the right solutions and the right business model to solv
Slide 66: Q&A
Q&A 66 © 2022 Omnicell, Inc.
Slide 67: YEARS
“@ YEARS of INNOVA
Slide 68: Appendix
Appendix 68 © 2022 Omnicell, Inc.
Slide 69: Sources
Sources Clinical • 20 - 30% of prescriptions never filled • Brody, J., “The Cost of Not Taking Your Medicine,” New York Times, April 17, 2017. • 1.3M ED visits from adverse drug events in outpatient settings • Centers for Disease Control and Prevention , “Adverse Drug Events in Adults,” cdc.gov, acc
Slide 70: Reconciliation of GAAP to Non-GAAP
© 2022 Omnicell, Inc. 70 2021 2017 (a) 1,132,018$ 712,714$ Acquisition accounting impact related to deferred revenues 780 1,252 1,132,798$ 713,966$ 554,653$ 318,637$ 49.0% 44.7% Share-based compensation expense 7,994 3,562 Amortization of acquired intangibles 11,438 11,488 Acquisition accounting imp
Slide 71: Reconciliation of GAAP to Non-GAAP: Liquidity
© 2022 Omnicell, Inc. 71 Omnicell, Inc. Reconciliation of GAAP to Non-GAAP (Unaudited, in thousands) Year Ended December 31, 2021 Revolver availability 500,000 Cash and cash equivalents 349,051 Liquidity 849,051 Year Ended December 31, 2017 Revolver availability 280,500 Cash and cash equivalents 32,