Codelab Capital As · OSL:CODE
Codelab Capital As — PatientSky Group AS — Q2 2021 Earnings Presentation
68 slides from Codelab Capital As's earnings presentation, Sep 1, 2021
Slide 1: Welcome to the PatientSky Q2 2021 Investor Presentation
Welcome to the PatientSky Q2 2021 Investor Presentation OSLO, September ‘st, 2021
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 CD» PatientSky Jesper Melin, Chairman Kristian Ikast, CEO Stian Husveeg, Interim CFO « Founded PatientSky in 2014 « PatientSky Board Member in 2020 * Started as interim CFO in Jan. 2021 « Serial entrepreneur within Health tech * Global CEO and MD experience « Experience from Morga
Slide 4: and our story
and our story
Slide 5: > z ea) = s a
> z ea) = s 3 a
Slide 6: Mission statement
Mission statement U We deliver revolutionary and innovative e-health platforms. Empowering partners, patients and professionals across borders to provide the future of new, better, faster and cheaper patient care.
Slide 7: To be the preferred structured and open e-health platform globally
PatientSky To be the preferred structured and open e-health platform globally
Slide 8: Core values
CY Core values PatientSky We are a team of fearless a umble players PROFESSIONAL [eo RESPONSIBLE &
Slide 9: Passion, Person, Power
PASSION NU?’ PERSON QDs PatientSky
Slide 10: Who is the new guy?
WHOIS THE NEW GUY? PatientSky
Slide 11: Kristian Ikast
QDs PatientSky Kristian Ikast e PatientSky Board Member in 2020 e Global CEO and MD experience from ECCO, KIWI, PVH, Bestseller and Clipper
Slide 12: Why PatientSky?
J Why PatientSky? PatientSky “PatientSky is one of the most innovative companies in Scandinavia. | have a firm belief in the strategy, and | will ensure that we utilize the company’s potential for growth internationally” Kristian Ikast, CEO PatientSky
Slide 13: Why PatientSky?
CY @ PatientSky Why PatientSky? & “It is not an easy job we have ahead of us, but dedicated employees and ambitious owners make it possible. Together we will work towards our vision: Changing Lives” Kristian Ikast, CEO PatientSky 13
Slide 14: Why PatientSky? Vision, mission and values
• I fully identify with the vision, mission and values. • Working for company creating and improving products for a sector who is changing lives. • We have a platform that create the foundation international to change many more lives.
Slide 15: Global digital health market to reach USD 600bn by 2024
Global digital health market to reach USD 600bn by 2024 (> representing USD 90-120bn addressable market for PaaS players PatientSky 2024 estimated digital health global market size, USD billion MN) Saas - Local adaptation MlPaaS - Global scalablility 600 EA pis 36% growth in healthcare data m °% | |
Slide 16: Partners signed up in 2-3 weeks
QDs PatientSky & 30 partners signed up in 2-3 weeks Key benefits for partners A ® Increased traffic Shorter time to market Easier to scale 16
Slide 17: But understand the domain was a big task!
But understand the domain was a big task! Oo
Slide 18: What is a platform
WHAT IS © A PLATFORM
Slide 19: Platform as a Service
CY PatientSky Platform as a Service
Slide 20: Platform as a Service
CD Platform as a Service PatientSky laaS 20
Slide 21: Platform as a Service: Services and Tools
VW Platform as a Service PatientSky Services and Tools laaS
Slide 22: Platform as a Service: Application Store
CD Platform as a Service PatientSky Application Store Services and Tools laaS 22
Slide 23: Platform as a Service: Key differentiators
CD Platform as a Service PatientSky 15% 85% Key differentiators Vendors own source code Healthcare specific application. Easy to use in solutions. Application Store ay ae : eas e x Tailormade boilerplate for healthcare applications. 2 ee ® GDPR complaint. Certified datastore. Services and Tools laaS
Slide 24: How we build the platform
HOW WE BUILD THE 360 PLATFORM A
Slide 25: Generic platform functionality first
VY PatientSky But we have always prioritized to develop the generic platform functionalities first, ready for reuse in future applications, before delivering the functional features requested by the SaaS users.
Slide 26: We see it as a good investment and the right strategy. Why?
We see it as a good investment and the right strategy. WHY? PatientSky
Slide 27: Market potential for e-health platforms
QDs PatientSky Because we: 1. See the incredible market potential for e-health platforms globally. 2. It was and still is our dream to fix the healthcare sector, and our best contribution is to build a low-code structured open data platform that will enable a broad range of e-health innovations
Slide 28: Defining a healthcare platform from the outside in
VY PatientSky We believe that no vendor can build a platform for healthcare without defining it from the outside in over a long period of time, no matter who you are.
Slide 29: We know because we built it!
We know because we built It! PatientSky
Slide 30: So why has the company not delivered PaaS to partners yet?
So why has the company not delivered PaaS to partners yet? VY PatientSky 225
Slide 31: We have actually done that: partners on the platform
We have actually done that. In Norway, we have more than 15 unique partners using the platform: norskhelsenett DdigiCare Partner, Norway External partner, Norway === bankID ‘yDIPS Internal partner, Norway External partner, Norway FURST nets% External partner, Norway External partner, NO, DK “¥ FHI E
Slide 32: Learnings from platform v.1.0
QDs PatientSky With the experience from these 15 partners on the platform v.1.0, the board realized: There was too high barriers for Partners to understand and utilize the potential of the platform. The difficult onboarding process also consumed too much of key employees’ time, distracting them from
Slide 33: Pause of partner negotiations and revenue guidance downgrade
This is also the reason why we decided to pause contratual negotiations with potential new partners and downgrade revenue guidance for 2021 But now what? PatientSky
Slide 34: PS Application Store
PS Application Store CD PatientSky Application —_— Application — IN ~~ /\ a Hosting f
Slide 35: PS Application Store
PS Application Store Frontend Backend Backend Integrations partners /\“~ XV SOAR LS Partner Manager Hosting Services Hosting Tools CD PatientSky
Slide 36: On-platform Solution
On-platform Solution [eee] | [eee] | [ee sectors | PS Application Store VAS application VAS application ‘SaaS application Backend S.party application Frontend Platform Service Hosting — ~ —> Service Service Partner Management Applications Hosting Services Hosting Tools Integrations partners. Vv Pati
Slide 37: Focus: we are a platform company
100 % focus: WE ARE A PLATFORM COMPANY
Slide 38: Platform Product Catalog is the foundation for international growth
Platform Product Catalog is the foundation for international growth. Partly release H1 2022
Slide 39: Our platform is the key differentiator
Our platform is the key differentiator Modules Hosting ® Google Cloud Regular healthcare platform Web Application aws “—" AA Microsoft Azure Services Modules Hosting PatientSky 360 Platform Web / Mobile Application EHR l CY PatientSky 80+ Services CD Patientsh Hosting << << << CD PatientSky Platform
Slide 40: PatientSky Organisation
CD PatientSky Organisation PatientSky CEO Head of Talent, CFO CBDO Culture and CMO. Employer branding Group functions 40
Slide 41: Overall strategy to scale and create value at PatientSky
Overall strategy to scale and create value at PatientSky C» PatientSky Invest Develop Harvest Purpose & mission APP Possible avenues To be the preferred Developing Possible end-game structured and open e-health new partners platform globally M&A targets Money makers JVs opportunities Spin-offs Inter
Slide 42: M&A strategy of acquiring and transforming on-prem software providers
M&A strategy of acquiring and transforming on-prem software providers CY (1) acquire, (2) upgrade, (3) keep platform contract and (4) divest SaaS PatientSky Mlisaas MilPaas YjRange Acquire On-Prem Upgrade to SaaS Divest a SaaS company 220-240 Revenue 80% J . SaaS 6-8x (sell 3-5x revenue Value enhanc
Slide 43: Illustration of potential PaaS terms
Illustration of potential PaaS terms (15-25%) (5-10%) 15-25% (5-10%) >70m (5-10%) ~13% 50-60% >40m ~35% ~35% >20% Adj. 2021 Non-SaaS SaaS 2021 1 source SaaS Services SaaS after App store Infrastructure EBITDA expenses EBITDA code efficiency potential and Tools PaaS fee 43
Slide 44: Action plan
QDs PatientSky Action plan: e Hire 80 new colleagues to create 4 standalone Business Units. e Split out the APP for venture founding and partnership. e SaaS business split out and ready to execute on our strategy PatientSky Group AS contemplates to initiate a review of strategic alternatives for our
Slide 45: Invested in the platform
Invested in the platform: NOK 350m Scaling the organization from: 170 to 250 PatientSky
Slide 46: Unaudited Financials: Continued robust financial performance
Unaudited Financials Continued robust financial performance quarter over quarter C )s with 4% underlying QoQ revenue growth and adj. EBITDA of 30% PatientSky Quarterly revenue and EBITDA, NOKm / % Key highlights HilRevenue Q2 2021 (MAgj. EBITDA . Financial performance YTD remain as expected, with th
Slide 47: Primarily a SaaS business with ~90% recurring revenue
We are primarily a SaaS business today with ~90% Cy recurring revenue growth driven by Clinics and Enterprise PatientSky Revenue breakdown, NOKm QoQ growth by customer type, NOkm MRecurring § {)Non-recurring Projects Clinics [« NOK 45m 51.6 51.4 12% 8% 30 Tm Enterprise 191% NOK 0.8m Partners 0% NOK
Slide 48: Moving customers to the cloud
The SaaS journey continues to be about moving customers to the cloud Cw 38% of customers have upgraded as of Q2 2021 PatientSky HMiCloud EHR customers [iJ On-prem EHR customers Cloud vs. on-prem EHR customers', avg. nr of customers Cloud vs. on-prem, revenue per customer 2534 0.7% 2551 18 851 1% NOK
Slide 49: 8.1% 6.8% 4.1% 4.1% 2.8% 2.2% 1.7% 0.9% 0.8% 1.0% 0.7% 0.4% 49
8.1% 6.8% 4.1% 4.1% 2.8% 2.2% 1.7% 0.9% 0.8% 1.0% 0.7% 0.4% 49
Slide 50: Current MRR level continues robust YoY growth
Qs Current MRR level continues robust YoY growth of above 40% PatientSky MRR momentum into Q3 2021 Clinics adding more functionalities Group MRR NOKm Nr of upsold modules +14, ns 15.5 1870 1207 Jun. 2020 Jun. 2021 Jun. 2020 Jun. 2021 50
Slide 51: Q2 results in line with FY 2021 guidance
Unaudited Financials Q2 results came in as expected and inline with FY 2021 guidance, Cw delivering NOK 51.4m revenue and an adj. EBITDA of 30% PatientSky Q2 2021 EBITDA bridge, NOKm Comments 51.4 15.5 1.9 BGR Revenue COGS Salary OPEX EBITDA Adj. Adj. “EBITDA Revenue grew 51% YoY in Q2, supported by
Slide 52: Detailed breakdown of 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 QoQ Comments Revenue by type Recurring 43.6 45.4 4% 80% licence based and 20% consumption based Non-recurring 1.6 1.9 17% Consulting hours,
Slide 53: Why downgrade PaaS before summer?
J PatientSky Why downgrade PaaS before summer? e We paused onboarding partners e Wanted to improve our onboarding (Platform Catalog) e Ready for international scale e Reduced future time to market
Slide 54: Annual recurring revenue end of 2021: 210M NOK
Annual recurring revenue end of 2021: 210M NOK
Slide 55: Growth rate: 51%
Growth rate: 51%
Slide 56: Recurring revenue: ~90%
Recurring revenue: ~90%
Slide 57: QoQ Recurring Organic Growth
QoQ Recurring Organic Growth: avr CY Patient’
Slide 58: Global digital health market by 2024: USD 600bn
Global digital health market by 2024: USD 600bn
Slide 59: Addressable market for PaaS players: USD 90-120bn
Addressable market for PaaS players: USD 90-120bn
Slide 60: Growth in healthcare data generated: 36% CAGR
Growth in healthcare data generated: 36% CAGR
Slide 61: Partners' development cost
CD atientSky \, Partners’ Dev. cost: “85%
Slide 62: Q&A
Slide 63: Thank you very much for joining this market update
QDs PatientSky Thank you very much for joining this market update. Insight into us as a PaaS company. Insight into our current financial performance, in line with our previous communication. We have full faith in the future and are committed to deliver on the extraordinary potential we have... "To b
Slide 64: Appendix
Appendix PatientSky
Slide 65: Group Consolidated P&L
Appendix Group Consolidated P&L PatientSky (sted anc NOKm Q2 2020 Q2 2021 YoY Adjustment Q2 2021 Adj. YoY Revenue 34.1 51.4 51% 51.4 51% CcoGs 5.5 9.3 70% 9.3 70% Gross profit 28.6 42.1 47% 42.1 47% Personnel expenses 16.3 15.7 -4% (1.4) 14.2 -13% Other OPEX 2.8 14.5 427% (2.2) 12.4 349% EBITDA 9.5
Slide 66: Group Consolidated Balance Sheet
Group Consolidated Balance Sheet Appendix PatientSky Reported Is NOKm Q22020 Q12021* Q22021 Key highlights ASSETS Q2 2021 development and highlights Customer relations 272 521 505 149 196 213 + Business-as-usual impacts on the balance sheet, ending the Research and development second quarter with NO
Slide 67: Group Consolidated Cash Flow Statement
Group Consolidated Cash Flow Statement Appendix Reported financials PatientSky NOKm Qi 2021 Q2 2021 Key highlights Profitioss before tex (21.8) M1633) Q2 2021 development and worth noting Taxation paid - - . ; Ordinary depreciation 24.2 28.5 . Positive NOK 23.8m cash flow from operating Change in in
Slide 68: PatientSky
Cr» PatientSky