Adheris Health Limited · ASX:AHE
Adheris Health — FY2022 Earnings Presentation
26 slides from Adheris Health's earnings presentation, Aug 26, 2022
Slide 1: A leader in digital medication adherence solutions
A leader in digital medication adherence solutions FY22 Full Year Results | ASX:MDR 26 August 2022 www.mymedadvisor.com MedAdvisor Limited ABN 17 145 327 617 1
Slide 2: Important notice and disclaimer
Important notice and disclaimer This Presentation is dated 26 August 2022 and employers or advisers give, have given or have achievement of any forward-looking statement in may not be offered or sold in the United States or has been prepared by MedAdvisor Limited ABN 17 authority to give, any repres
Slide 3: Agenda
Agenda 1 Delivering on strategic initiatives 2 Digitalisation of the US market continues 3 Further growth in Australia and New Zealand 4 Robust financial performance in FY22 5 Positive outlook 6 Q&A 7 Appendix: analyst pack 3
Slide 4: Delivering on strategic initiatives
Delivering on strategic A year of strategic initiatives change positions MedAdvisor for next growth phase 4
Slide 5: Delivering on key priorities in FY22
Delivering on key priorities in FY22 Launch omni- Expand digital Expanded channel adherence Expanded markets reach geographies solution Omni-channel network contract signed in US, access to US Medicare THRiV developed and NZ Market entry with Green over 40 million patients launched, delivering gross
Slide 6: Robust FY22 results, with strong growth in underlying results
Robust FY22 results, with strong growth in underlying results Revenue Gross Margin EBITDA Operating Cash flow $67.8m $35.0m ($11.3m) ($0.2m) +18.7% LFL1 +17.3% LFL1 +9.9% LFL1 +$12.3m YOY ANZ revenue ANZ gross margin US Revenue US gross margin $14.1m 83.3% +13% per program 47.5%2 +44% YOY +2.3ppt YO
Slide 7: Digitalisation of the US market continues
Digitalisation of the US market A year of strategic continues change positions MedAdvisor for next growth phase 7
Slide 8: US digitalisation continues to progress
US digitalisation continues to progress Recap of FY22 achievements Key priorities for FY23 Recapofof • Digitalisation theFY22 achievements US market Key priorities • THRiV for FY23 – Investment in platform 2 and MedEngage • Patient reach of over 40 million people in the US digitally upgrade and expa
Slide 9: US Revenue up 10.5% to US $39.0m
US Revenue up 10.5%1 to US $39.0m Adheris is continuing to deliver on its growth profile with emerging upside from new revenue models and digital US Revenue uplift driven by: solutions MedAdvisor US Revenue (US$) • Increased revenue per program: grown by c. 13% on the pcp +10.5% • Increased customer
Slide 10: Further growth in Australia and New Zealand
Further growth in Australia and A year of strategic New Zealand change positions MedAdvisor for next growth phase 10
Slide 11: A year of growth and consolidation in Australia
A year of growth and consolidation in Australia Recap of FY22 achievements Key priorities for FY23 • Recap of FY22 achievements Signed major pharmacy group to a 5-year deal, driving network growth up 18.7%. Key priorities • Successful for FY23 integration of GuildLink acquisition: • Consolidation of
Slide 12: Strong growth in ANZ revenues, up 44%
Strong growth in ANZ revenues, up 44% Operating Revenue up 44% Pharmacy Network over 4,300 (incl NZ, excluding GuildLink) ANZ Revenue uplift driven by: Digital Health Programs Transaction Fees 14.1 4,335 SaaS 3,672 3,566 3,297 9.6 9.8 8.2 Key priorities • Transaction for fees FY23 up c. 101% attribu
Slide 13: Robust financial performance in FY22
Robust financial performance in A year of strategic FY22 change positions MedAdvisor for next growth phase 13
Slide 14: FY22 revenue strong with like for like growth of 19%
FY22 revenue strong with like for like1 growth of 19% Reported Revenue up 75%1 Like for like revenue up 19%2 +74.8% 18.7% 70 67.8 70 67.8 28.1% 60 60 57.1 50 +302.9% 50 41.0 40 38.7 40 53.7 47.3 30 30 31.7 20 20 9.6 10 10 14.1 9.3 9.8 0 0 FY20 FY21 FY22 FY20 FY21 FY22 SaaS Revenue AU Transaction Fee
Slide 15: Gross Margin of $35m up 17.3% like for like
Gross Margin of $35m up 17.3% like for like1 Like for like gross margin up 17.3%1 17.4% $M AUD % of Sales 35.0 • ANZ gross margin of $11.8m @ 83.3% of 35.0 60 sales (FY21: $7.9m @ 81.0%) reflecting 55 strong revenue growth and realised upside 30.0 29.8 of re-platforming. 50 • US gross margin of $23.
Slide 16: EBITDA stable, absorbing investment in US as ANZ improves
EBITDA stable, absorbing investment in US as ANZ improves -9.9% 0 -0.6 -1 -1.8 -1.8 -2 -3.4 • EBITDA loss of ($11.3m), reducing by $1.2m year -3 -2.8 -2.8 on year on a like for like1 basis -4 • US EBITDA reflecting investments in the THRiV -5 product offering and digitalisation, as well as IT -3.0 i
Slide 17: Operating cash flow moving towards cash flow breakeven
Operating cash flow moving towards cash flow breakeven Operating cashflow outflow of ($0.2m) 0 -0.2 -1 • Operating cash flow of ($0.2m), an improvement from ($12.5m) in FY21, -2 demonstrating robust working capital management. -3 -4 • Cash flow management continues to be a high priority with the sec
Slide 18: Positive outlook for FY23 and beyond
Positive outlook for FY23 and A year of strategic beyond change positions MedAdvisor for next growth phase 18
Slide 19: Strategic initiatives underpin positive outlook
Strategic initiatives underpin positive outlook Optimise cost Successful Continue Analyse market structure to drive integration of digitalisation expansion sustainable GuildLink of US network opportunities performance 19
Slide 20: Appendix: analyst pack
Appendix: analyst pack A year of strategic change positions MedAdvisor for next growth phase 20
Slide 21: FY22 Group Profit/(Loss) Statement
FY22 Group Profit/(Loss) Statement FY22 FY21 FY21 • Statutory operating revenue growth Year ended 30 June 2022 ($'000) reported reported Var % LFL1 Var % of 74.7% (18.5% LFL) driven by solid Adheris performance (13% LFL growth) and strong sales across Australian Operating Revenue 67,750 38,773 74.7%
Slide 22: 30 June 2022 Group Balance Sheet
30 June 2022 Group Balance Sheet 30 June 2022 30 June 2021 Change • Trade receivables of $9m, down from $12.5m, As at 30 June 2022 ($'000) $'000 $'000 $'000 due to the timing of a large debtor receipt received in Q1 FY22. 3 month rolling DSO down ASSETS to 33 days (June 2021: 78 days) with new Curre
Slide 23: FY22 Group Cashflow Statement
FY22 Group Cashflow Statement 30 June 2022 30 June 2021 Change • Cash balance of $7.6m consistent year on Year ended 30 June 2022 ($'000) $'000 $'000 $'000 year Cash Flows From Operating Activities • Total cash receipts of $74.9m +36.9m year on Receipts from customers (inclusive of GST) 74,863 37,95
Slide 24: EBITDA reconciliation – $1.2m uplift year on year LFL
EBITDA reconciliation – $1.2m uplift year on year LFL1 -9.9% 0 • Reported EBITDA loss of ($11.3m), reducing by -1 $1.2m year on year on a like for like basis -2 • Gross margin uplift of $5.2m driven by sales out performance, partially offset by a reduced -3 gross margin rate on US sales mix achieved
Slide 25: Executive team and Board of Directors
Executive team and Board of Directors Over 70+ years of combined healthcare and technology experience Executive Team Rick Ratliff Jim Rotsart Annabelle Grant Wayne Marinoff Ruba El Afifi Craig Schnuriger Naomi Lawrie CEO & Managing EVP US – Client Interim Chief EGM ANZ – Sales Chief Operating Chief
Slide 26: www.mymedadvisor.com
Q@ MedAdvisor www.mymedadvisor.com