Adheris Health Limited · ASX:AHE
Adheris Health — Investor Presentation (March 2020)
29 slides from Adheris Health's investor presentation, Mar 11, 2020
Slide 1: Investor Presentation & 1H20 Results
making medication manageable Investor Presentation & 1H20 Results 2 0 2 0 1
Slide 2: Important Notice
making Important Notice medication manageable This Presentation dated 11 March 2020 and has been prepared by MedAdvisor International Pty Ltd ACN 161 366 589 (MedAdvisor or the Company) for information purposes only. This Presentation is not an offer or invitation to acquire securities in MedAdvisor
Slide 3: MedAdvisor 1H20 highlights – demonstrable progress in expanding internationally and domestically
making medication MedAdvisor 1H20 highlights – demonstrable progress in manageable expanding both internationally and domestically 1. Business showing operating leverage • Revenue of $4.4m, up 14%, with underlying growth of 22% • Cash receipts of $4.8m, up 32.5% • Core EBITDA1 up 41% from $1.0m to $
Slide 4: MedAdvisor financial performance
making medication MedAdvisor financial performance manageable Var % Half Year ended 31 December ($000) 1H20 1H19 +ve/(-ve) Operating Revenue 4,442.8 3,882.3 14.4% Other Revenue 78.1 80.8 (3.3%) Total Revenue 4,520.9 3,963.1 14.1% Gross Margin 3,971.1 3,483.3 14.0% Gross Margin % 87.6% 87.6% 0.0% Ope
Slide 5: 1H20 financial highlights across key metrics
1H20 financial highlights across key metrics... making medication manageable Revenue Cash Flow 4.4 3.9 3.2 36% 4.8 35% 3.1 3.7 2.1 37% -1.5 -1.9 1.5 -4.0 87% 63% 65% 64% -5.2 1H17 1H18 1H19 1H20 1H17 1H18 1H19 1H20 Net Operating Cashflows Cash receipts User Based Fees SaaS Fees Core EBITDA1 Gross ma
Slide 6: 1H20 key driver metrics
1H20 key driver metrics... making medication manageable Average Recurring Revenue (“ARR”) SaaS Revenue Reported +5.4% +25.3% +3.0% +24.4% 5.8 2.8 2.8 5.5 +2.6% +6.2% +8.2% 4.4 +3.9% 2.2 4.3 2.1 4.0 2.0 1H18 2H18 1H19 2H19 1H20 1H18 2H18 1H19 2H19 1H20 Number of Health Programs Health Program Revenue
Slide 7: About MedAdvisor
making medication manageable About MedAdvisor OUR PURPOSE To improve the way patients can manage their medication, empowering them to feel more in control
Slide 8: Why we exist
making Why we exist medication manageable MedAdvisor is tackling the global issue of medication non-adherence and poor health literacy to drive improved health outcomes for patients by making medication manageable. 8
Slide 9: Poor medication adherence is a global issue
making Poor medication adherence is a global issue medication manageable Improving adherence has multiple beneficiaries Pharmacists & Doctors Patients Pharma Companies & Payors* *Healthcare payors vary in each jurisdiction and include Governments and Insurers The WHO estimates adherence to long term
Slide 10: Changing global landscape impacting Pharmacy
making Changing global landscape impacting Pharmacy medication manageable Pressure on Pharmacy’s traditional revenue model Competitive/Disruptive forces Opportunities Funding reducing for Must diversify revenue dispense fees; needing to streams – offer more shift to services revenue medicines & heal
Slide 11: The Solution: MedAdvisor Global Platform
Pharmacists & Doctors Patients Pharma Companies & Payors The Solution MedAdvisor Global Platform MedAdvisor Global Platform MedAdvisor mobile app ratings: 4.6 4.5 4.5 w w w . m e d a d v i s o r . c o m . a u 3,214 Total 940 All Versions 15,543 Likes 11
Slide 12: The MedAdvisor Global Platform
making The MedAdvisor Global Platform medication manageable Driving improved adherence & health literacy SaaS platform: PlusOne MedAdvisor App & Messaging Health Programs ✓ Streamlines patient communication ✓ A free mobile app for patients ✓ Platform for pharma companies to distribute Health Program
Slide 13: MedAdvisor is the largest provider of adherence and communication solutions in Australia
making MedAdvisor is the largest provider of adherence medication manageable and communication solutions in Australia Health Care Providers Patients Pharma Companies & Payors Market Penetration 60% of all pharmacies Pharmacy Groups Pharmaceutical Partners 1.3m+ users via Web, App & SMS Ran 48 health
Slide 14: The network effect reinforces value to all stakeholders
making The network effect reinforces value to all stakeholders medication manageable Benefits of adherence accrue to all stakeholders Pharmacists & Doctors Pharma Companies & Payors • Make patients more loyal • Improve adherence to improve patient outcomes and revenue • Increase adherence +20% to dr
Slide 15: International Update
International Update 3 Key Markets: US, Asia and the UK w w w . m e d a d v i s o r . c o m . a u 15
Slide 16: MedAdvisor software is powering digital adherence & pharmacy platforms globally
making MedAdvisor software is powering medication manageable digital adherence & pharmacy platforms globally Agreement to deploy PlusOne National Pharmacy Association (NPA) Pharmacy software on a Saas plus endorsed. NPA’s UK sales team messaging fees basis to pharmacy proactively promote MedAdvisor’
Slide 17: MedAdvisor US Overview
making MedAdvisor US Overview: medication manageable Signed first material health program; secured strategic investor to accelerate expansion in US through payor market • Adheris have a pharmacy network of 26,000 and ~197m patients • Revenue share model with Adheris Health, with varying splits based
Slide 18: MedAdvisor US market entry strategy
making MedAdvisor US market entry strategy: medication manageable Significant progress made with plans to enter US market Phase 3 – SaaS model with pharmacies Phase 2 – integration with • SaaS pharmacy product Pharmacies; extend programs rollout – talks underway to other payors with pharmacy chains
Slide 19: MedAdvisor UK Update
making MedAdvisor UK Update: medication manageable Implementation of Day Lewis on track for 2H20 rollout; signing of NPA represents acceleration of increased addressable patients Day Lewis • Rollout MedAdvisor’s PlusOne Pharmacy software on a Saas plus launch messaging fees basis to pharmacy 270 sto
Slide 20: MedAdvisor UK market entry strategy
making MedAdvisor UK market entry strategy: medication manageable Significant progress made with plans to enter UK market with signing of NPA and impending launch of Day Lewis Phase 3 – Launch digital health programs Phase 2 – integration with • Extend health program Pharmacies; offering to include
Slide 21: MedAdvisor Asia Update
making MedAdvisor Asia Update: medication manageable 50:50 JV with Zuellig Pharma with initial market entry to Philippines & Malaysia Zuellig Pharma operates in 13 Asian countries with >US$12B in revenue. 100 years of operating presence to help facilitate market entry. Early customer wins in PH & MY
Slide 22: MedAdvisor Asia market entry strategy
making MedAdvisor Asia market entry strategy: medication manageable 50:50 Joint Venture with Zuellig Pharma - Singapore Phase 3 – SaaS model with pharmacies Phase 2 – Build Addressable • Scale up pharma company Patient Pool in Pilot Markets programs across MedExpress, + MedAdvisor addressable Phase
Slide 23: Financial Performance
Financial Performance 1H20 Results w w w . m e d a d v i s o r . c o m . a u 23
Slide 24: MedAdvisor performance summary
making medication MedAdvisor performance summary manageable Var % Half Year ended 31 December ($000) 1H20 1H19 +ve/(-ve) Operating Revenue 4,442.8 3,882.3 14.4% Other Revenue 78.1 80.8 (3.3%) Total Revenue 4,520.9 3,963.1 14.1% Gross Margin 3,971.1 3,483.3 14.0% Gross Margin % 87.6% 87.6% 0.0% 3 Mai
Slide 25: MedAdvisor cash flow
making medication MedAdvisor cash flow – cash flow manageable Half Year ended 31 December ($000) 31-Dec-19 31-Dec-18 $ Var Receipts from customers 4,801 3,624 1,176 Payments to suppliers and employees (9,996) (7,730) (2,266) Interest received 27 80 (53) Net cash inflow/(outflow) from operating activ
Slide 26: MedAdvisor balance sheet – well placed following successful capital raise
making medication MedAdvisor balance sheet – well placed following manageable successful capital raise Half Year ended 31 December ($000) Note 31-Dec-19 30-Jun-19 Var $ Comments: Cash & equivalents 1 16,257.5 4,400.7 11,856.8 1. In October 2019, MedAdvisor successfully raised Trade receivables 1,389
Slide 27: 1H20 continued growth in key metrics
1H20 continued growth in key metrics….. making medication manageable 1H20 v 1H19 Metric 1H18 1H19 1H20 %Δ Patients (m) 1.0 1.1 1.3 11.5% Pharmacy ('000) 3.1 3.3 3.4 3.3% Health Programs (#) 23 32 48 50.0% Average Recurring Revenue ($m) 4.0 4.4 5.8 31.1% LTV of Pharmacy ($'000) 12.3 13.7 16.9 23.1% S
Slide 28: MedAdvisor Has Attracted a Strong Executive Team
making MedAdvisor Has Attracted a Strong Executive medication manageable Team Robert Read Steve Watt Simon Glover Simon Chamberlain CEO & Managing Director CRO CFO GM Strategy Robert has been CEO of MedAdvisor since July 2015 taking Steve is an experienced CEO, Chair and Investor in Simon is a senio
Slide 29: Corporate Overview
making Corporate Overview medication manageable MedAdvisor Ltd (ASX:MDR) Top Shareholders Shares on Issue (as at 31 December 2019) 245.9m Employee Options (including Read Performance Rights) 10.4m Board & Management ~24% Domestic Institutions ~17% Fully Diluted 256.3m HMS Holdings Corp ~13% Share Pr