Pro Medicus, Ltd. · ASX:PME
Pro Medicus — Shareholder Meeting (November 2007)
55 slides from Pro Medicus's shareholder meeting presentation, Nov 2, 2007
Slide 1: Pro Medicus – AGM 2007
Pro Medicus – AGM 2007 For personal use only Mel Ward – Chairman Page 1
Slide 2: Introducing
Introducing For personal use only Pro Medicus Team – Board – Senior Management – Auditor Page 2
Slide 3: Farewells
Farewells For personal use only Philip Molyneux - Director Geoff Holden - CFO Page 3
Slide 4: Pro Medicus
Pro Medicus For personal use only Sustained growth since IPO in 2000 2006/07 another successful year Continued to strengthen Australian business Continued progress on international expansion Page 4
Slide 5: Pro Medicus
Pro Medicus For personal use only Revenue $13.03M , up 11.9% Profit after Tax 7.05M, up 15.3% EPS 7.0c, up 16.4% Total Dividend for year 7c, up 27% Strong Balance Sheet : – Cash Reserves $11.1M – No Debt A very sound position Page 5
Slide 6: Dividend
Pro Medicus Dividend For personal use only Final dividend: 3c normal + 1c special Interim dividend: 2.5c normal + 0.5c special 27% increase YOY reflects increased profit Special dividends reflect strong cash balance and reduced expansion risk. Page 6
Slide 7: Strategy
PROMEDICUS Strategy For personal use only Best of breed systems +++ Best support services +++ Best value for money +++ Retain contracts ++ Leverage contracts ++ New contracts + Page 7
Slide 8: Strategy
Pro Medicus Strategy For personal use only Alliances ++ Mergers and Acquisitions ?? Offshore Develop offshore markets +++ Page 8
Slide 9: Offshore Markets
Pro Medicus Offshore Markets For personal use only North American AGFA alliance strong Product development and extension has continued. AGFA Sales Team order pipeline growing Good basis for long term relationship Page 9
Slide 10: Share Market
Pro Medicus Share Market For personal use only Free float now 40% Liquidity and volatility improved Aim to leverage digital operation and North American position as major platforms for growth Page 10
Slide 11: Close knit Board and Management
Pro Medicus For personal use only Close knit Board and Management • Thanks to Directors Congratulations to Management and Staff • Hard work, enthusiasm, diligence Confident that we will see continued new opportunities and sustained growth • Quality systems • Strong Balance Sheet • Long-term client r
Slide 12: Pro Medicus – AGM 2007
Pro Medicus – AGM 2007 For personal use only Sam Hupert – Deputy Chairman. Co-Founder and Executive Director Page 12
Slide 13: Overview
Overview For personal use only Leading provider of IT solutions to private health market. Growing and profitable e-health offering Key player in rapidly expanding digital radiology market Sales in Australia US, Canada & UK Page 13
Slide 14: Financials – Full Year 2007
rds. Financials –Full Year 2007 For personal use only Revenue $13.03 Million (+ 11.9%) Profit after tax of $7.05 Million (+ 15.3%) Overseas Revenue increased to $3.1M (+34%) Margins increase to 77.6% Cash Reserves $11.1 Million Debt free Page 14
Slide 15: Financials – Full Year 2007
Financials –Full Year 2007 For personal use only Final dividend 3c/share fully franked Special dividend 1c/share Total dividend for year 7c/share fully franked (+27%) Page 15
Slide 16: Pro Medicus – Digital Imaging Integration
Pro Medicus – Digital Imaging Integration For personal use only Page 16
Slide 17: Pro Medicus – Digital Imaging Integration
Pro Medicus – Digital Imaging Integration For personal use only PACS Page 17
Slide 18: Integrated Digital Radiology
Pro Medicus Integrated Digital Radiology For personal use only HTTP DICOM Modality Worklists Internet/Promedicus.net HL7 DICOM DICOM HL7 Hospital [HIS/EMR] Web Distribution Voice Recognition Radiologist Workstation Page 18
Slide 19: The tighter the integration – the greater the productivity
Pro Medicus – Digital Imaging Integration For personal use only “The tighter the integration – the greater the productivity” 40% ↑ Level 1 – broker (industry standard) 35% ↑ Level 2 – PME brokerless 30% ↑ Level 3 – PME 3rd generation 25% 20% 15% 10% 5% 0% Level 1 Level 2 Level 3 Page 19
Slide 20: Digital Imaging 2007 - 2008
Digital Imaging 2007 - 2008 For personal use only Increased sales of digital technology. Over 40 Sites and growing (up from 25) Market Leader with proven results Extremely well positioned for further sales. Page 20
Slide 21: Digital Imaging – 2007 - 2008
Digital Imaging – 2007 - 2008 For personal use only Market has reached “tipping point.” Increased integration capability – Intelerad PACS Opens new opportunities Doubling of number of digital integration sites in 2007/2008 Page 21
Slide 22: Agfa US Deal
For personal use only Page 22 Agfa US Deal
Slide 23: Agfa US Deal – Imaging Centre Market
Agfa US DealCentre Market The Imaging For personal use only U.S. Imaging Sales A Zones A K K W M M M N VV E A E M TT N O T D N HM M R I S N W W MI MI 81 Y CAAR D W D II 169 PA T I Y N IA IN162 O 161360 N J N V E 121 IL I H W161 M D D E S T AT E FL COU N T 383 U C N VA122 V NY 360 K V 293 C T O K S M
Slide 24: Why Imaging Centre Market
Agfa US Deal Centre Market Why Imaging For personal use only Similarities to Australian Private practice Billing/Practice Management focused. Legal requirement to store images On the cusp of going digital Key growth market 24 Page 24
Slide 25: Agfa US Deal – Progress Time line
Agfa US Deal Agfa US Deal – Progress Time line For personal use only 1st shown at RSNA in December 2004. Key reference sites installed and working July 2005 Clinical validation August 2005. Commercially released throughout the US – September 2005. Strong demand for the product – September 2005 to no
Slide 26: Agfa US Deal – Progress Time Line
Agfa US Deal Agfa US Deal – Progress Time Line For personal use only New Imaging Center sales force to supplement Agfa sales organisation - October 2005 1st phase of knowledge transfer to Agfa – May 2006. Agfa commencing sales, marketing and installations in the US – July 2006 onwards Agfa has scale
Slide 27: Agfa US Deal - Timing of Revenue
Agfa US Contract Agfa US Deal - Timing of Revenue For personal use only Revenue from deal commenced in 2nd half 2006 Building in 2007 through into 2008 with bias to 2nd half following RSNA Service revenue to build 2007 onwards 27 Page 27
Slide 28: Agfa US Deal – Progress Time Line
Agfa US Deal Agfa US Deal – Progress Time Line For personal use only Diverse range of sites installed in key US radiology markets Product seen as differentiator due to strong Practice Management/Billing focus. Excellent referral base on which to build further sales. 28 Page 28
Slide 29: Company Highlights – First Half 2007
Company Highlights – First Half 2007 For personal use only Significant progress with Agfa North American deal. Specialised Imaging Centre team with new COO and Solutions Manager. Fully integrated voice recognition and advanced billing expands product offering. Improved “strike rate” - increasing mar
Slide 30: Company Highlights – AltaPACS Canadian Deal
Company Highlights – AltaPACS Canadian Deal For personal use only Page 30
Slide 31: Canada AltaPACS Update
Canadian Canada AltaPACS Update - AltaPACS For personal use only $2.6 million upfront licence fees 1st site installed mid December 2004 10 sites installed in May 2005 All 28 sites now installed. 31 Page 31
Slide 32: Canada AltaPACS Update
Canadian Canada AltaPACS Update - AltaPACS For personal use only Over $1Million in revenue Recurring support revenue New licence sales - expansion within group New products eg EMPI – technology can be used in other countries. 32 Page 32
Slide 33: Pro Medicus – Further Overseas Opportunities
Integration Benefits Pro Medicus – Further Overseas Opportunities For personal use only Increasing % of revenue coming from overseas Leveraging Agfa’s presence in North America frees up PME resources Products successfully installed in US, Canada and UK - three of the world largest markets Interest i
Slide 34: Pro Medicus – Further Overseas Opportunities
Integration Benefits Pro Medicus – Further Overseas Opportunities For personal use only Increasing % of revenue coming from overseas Leveraging Agfa’s presence in North America frees up PME resources Products successfully installed in US, Canada and UK - three of the world largest markets Interest i
Slide 35: Pro Medicus – David Chambers CEO
Pro Medicus – David Chambers CEO For personal use only Head of Agfa Healthcare in Asia Pacific from 2000- 2004 Instrumental in Pro Medicus/Agfa alliance announced in 2001 Head of Agfa US Sales and marketing organisations from 2004 to 2007 Has a wealth of industry experience in Australia, US and othe
Slide 36: What experience and credentials do I bring?
What experience and credentials do I bring? For personal use only Over 25 Years experience in HealthCare Formal technical and business qualifications 4 Years Director Sales & Marketing, Australia & New Zealand, Bayer Diagnostics 10 Years Sales and General Management at E.Merck General Management, Sa
Slide 37: What experience and credentials do I bring?
What experience and credentials do I bring? For personal use only 3 years Vice President Sales & Marketing, Agfa HealthCare North America 4 years General Manager Agfa HealthCare Asia Pacific 5 years General Manager Agfa HealthCare Australia & New Zealand, and Director of Agfa Australia. Strong conne
Slide 38: A solid foundation underpins accelerated growth path
A solid foundation underpins accelerated growth path For personal use only Our business has a solid basis in Australia International footprint now established in US, Canada and U.K. Have achieved strong export growth in 2007 Our strike rates are trending upwards We have tremendous Industry knowledge
Slide 39: Commencement of a step-wise process
Commencement of a step-wise process For personal use only Re-validate Vision and Mission – Present to future state Strategy selection – Identify and size business growth options – Prioritize our best opportunities Devise go-forward action plans Organizational alignment – Organizational design and al
Slide 40: Key supporting Planks Required for our Step Change
Key supporting Planks Required for our Step Change For personal use only 1. Vision We have a compelling vision and a solid strategy 2. Awareness A critical mass of people are aware of and on-board with the transformation 3. Diagnosis What needs to be changed and why is known 4. Plan We have the expe
Slide 41: Pro Medicus Strategy
Pro Medicus Strategy For personal use only What is our strategic intent? Page 41
Slide 42: A step change transitioning towards new products and new markets
A step change transitioning towards new products and new markets For personal use only new Products existing existing new Markets Page 42
Slide 43: Our traditional playing field
Our traditional playing field For personal use only new Products Promedicus existing today RIS/Australia existing new Markets Page 43
Slide 44: Accelerate the reach of our solutions to International markets
Accelerate the reach of our solutions to International markets For personal use only new Products U.S.A. Agfa existing Canada yesterday U.K. Others RIS/Australia existing new Markets Page 44
Slide 45: Migrate our knowledge to new related products and technologies
Migrate our knowledge to new related products and technologies For personal use only New Applications new Products U.S.A. Agfa Canada existing yesterday U.K. Others RIS/Australia Early Development existing new Markets Page 45
Slide 46: New products, new markets
New products, new markets For personal use only Orthopedics? New Applications Cardiology? new Patient Records? Products U.S.A. Agfa existing Canada yesterday U.K. Others? Australia existing new Markets Page 46
Slide 47: Ongoing integration of our IT offering
Ongoing integration of our IT offering For personal use only Orthopedics? New Applications Cardiology? new Patient Records? Products U.S.A. Agfa Canada existing yesterday U.K. Others? Australia existing new Markets Page 47
Slide 48: E Health Platforms… High Level Strategic Direction
E Health Platforms… High Level Strategic Direction For personal use only What businesses underpin our growth? • RIS Hospitals Physicians Ambulatory Office • PACS/Teleradiology • Ambulatory vs. Acute Care • Large, medium or small Hospitals • Decision Support, CAD • Orthopaedics ePlatform • Cardiology
Slide 49: Strategic Stance varies depending on Market
Strategic Stance varies depending on Market For personal use only Australia Consolidate U.S.A. High Growth Canada Moderate Growth U.K. Moderate Growth Asia Selective Targeting Europe Opportunistic Page 49
Slide 50: U.S. Imaging Centers
For personal use only U.S. Imaging Centers Let’s look at the landscape Page 50
Slide 51: Adoption in Imaging Centres market grows in U.S.A.
Adoption in Imaging Centres market grows in U.S.A. For personal use only Imaging Centre market growth ~10-15% 7000 Consolidation of Hospitals and imaging 6070 6000 5752 centres in to distributed environments 5450 5163 5000 4773 Drive for efficiency gains due to 4159 downward pressure on reimbursemen
Slide 52: Agfa US Deal – Top Ten Trends
Agfa USTrends Top Ten Deal – Improved work-flow No.1!! For personal use only 1. Improving departmental workflow √ 2. Adding/improving web access to images √ 3. Increasing imaging procedure volume √ 4. Network security 5. Adding advanced visualization 6. Managing multi-slice CT images 7. Improving th
Slide 53: Cornerstones of our Growth Strategy
Cornerstones of our Growth Strategy For personal use only Digital Imaging growth in Australia Build on customer base in US, Canada and U.K. Seek out new product opportunities Develop and secure new alliances and markets Page 53
Slide 54: Conclusion
Conclusion For personal use only This company is well positioned to move in to a new growth phase Page 54
Slide 55: Pro Medicus – AGM 2007
Pro Medicus – AGM 2007 For personal use only Page 55