Slide 1: H1 FY24 Investor Presentation
H1 FY24 Investor Presentation 29 February 2024 Mach7 Technologies ASX: M7T 1
Slide 2: Agenda
Agenda Business Overview H1 FY24 Result Outlook Appendices Mike Lampron, CEO Dyan O’Herne, CFO 2 Unless otherwise stated, all dollar values are in Australian dollars (AUD)
Slide 3: Business Overview
Business Overview Issued 18 February 2021, approved by the Board 3 3
Slide 4: About Mach7 Technologies (ASX:M7T)
About Mach7 Technologies (ASX:M7T) Mach7 Technologies develops innovative image management and viewing solutions that form the core of an integrated enterprise imaging ecosystem. We give healthcare organisations the independence and flexibility to deploy our solutions according to their needs, eithe
Slide 5: Our Solution – Enterprise Imaging Platform
Our Solution – Enterprise Imaging Platform Enterprise Data Management Enterprise Diagnostic Viewing Workflow Orchestration Vendor Neutral Archive eUnity Enterprise Diagnostic Viewer Communication Workflow Engine ✓ Consolidate ALL Images across the enterprise ✓ Zero Footprint HTML -5 Viewer -100% Fid
Slide 6: Shift to Subscription Model Accelerates
Shift to Subscription Model Accelerates Licence revenue recognition for Subscription is initially lower than Capital but delivers greater total value and revenue predictability Equivalent Contracts: Capital Licence Subscription Licence Activity/ Timing Fee Type Revenue Contribution Revenue Recogniti
Slide 7: Our Product Rankings
Our Product Rankings Universal Viewer Segment Vendor Neutral Archive Segment (Mach7 eUnity Viewer) (Mach7 VNA) Total proportion of positive Placed #4 overall, comments to KLAS has #4 12.5% #2 in previous year increased by 12.5% in the last 12 months (relative to prior year) V12 of the Mach7 VNA stil
Slide 8: Recent VNA Comments reported to KLAS
Recent VNA Comments reported to KLAS Manager, on loyalty and product: “Mach7 Vendor Director, on relationship: “We have seen positive Neutral Archive is a true vendor-neutral archive. We changes in support, and things are going well. We feel use it as an enterprise solution and have expanded far lik
Slide 9: H1 FY24 Results
H1 FY24 Results Issued 18 February 2021, approved by the Board 9 9
Slide 10: H1 FY24 Highlights
H1 FY24 Highlights Record Sales Orders Revenue CARR4 ARR5 (TCV)1 A$13.3M A$26.8M A$18.6M run rate A$49.5M -A$3.1M or 19% on PCP +A$6.8M or 34% on PCP +A$2.2M or 13% on PCP +A$23.7M or 92% on PCP2 Recurring revenue Exceed FY24 A$9.9M Guidance of A$48M3 +A$1.7M or 21% on PCP NPATA7 New contracts, stro
Slide 11: Record Sales Orders – Subscription Dominates
Record Sales Orders – Subscription Dominates Changing customer preference for subscription model Highlights: • Record sales orders of A$49.5M (TCV), up 92% on H1 Sales Order Composition (TCV)1 FY23 and exceeding initial FY24 target of A$48M.2 Sales 45 orders are the best measure of financial progres
Slide 12: Record Sales Orders – New Customers and Large Renewal Program
Record Sales Orders – New Customers and Large Renewal Program Renewals demonstrate strong customer retention Sales Order by Type (TCV)1 Highlights: 30 • New customer sales orders of A$12.5M (25% of sales orders) included Veterans Health Administration National 25 Teleradiology Program (Phase I). The
Slide 13: Major Contract Wins and Renewals
Major Contract Wins and Renewals New customers and renewals drive H1 FY24 sales order growth H1 FY24 Highlights – Public Sector Entry and Outpatient Focus • Veterans’ Health Administration (VHA) - National Teleradiology Program (NTP) contract. o Phase I will see Mach7’s VNA and eUnity Viewer solutio
Slide 14: Short-Term Revenue Impact from Subscription Transition
Short-Term Revenue Impact from Subscription Transition Strong Growth in Recurring Revenue in H1 FY24 Highlights: 10 • Revenue of A$13.3M, down 19% on pcp (H1 FY23: 9 A$16.4M) due to short-term impact from 8 subscription transition as 87% of H1 FY24 sales 7 orders related to subscription/maintenance
Slide 15: CARR Leading Indicator of Future Recurring Revenue
CARR Leading Indicator of Future Recurring Revenue ARR recognition begins when FPU achieved, usually 12-18 months after contract signing Highlights: CARR is Leading Indicator of ARR • Contracted Annual Recurring Revenue (CARR) of A$26.8M, up 34% on A$20.0M at December 2022. This 25 A$8.2M yet repres
Slide 16: Strong Growth in Recurring Revenue, Opex Discipline
Strong Growth in Recurring Revenue, Opex Discipline Despite revenue decline, strong growth in receipts and operating cashflow improvement $ % Highlights: Earnings (A$M)3 H1 FY24 H1 FY23 Change Change • Revenue decline of 19% due to short-term impact from Revenue 13.3M 16.4 M (3.1M) (19%) delay in re
Slide 17: Limited Impact on Cash Balance from Subscription Transition
Limited Impact on Cash Balance from Subscription Transition Mach7 expects to be cashflow positive in FY24 Closing Cash Balance Highlights: 25 • Transition to a Subscription payment model is expected to have a limited impact on short-term cashflow 20 • Mach7 expects to be cashflow positive for FY24 d
Slide 18: Outlook
Outlook NS JE O < =
Slide 19: Outlook
Outlook Fragmentation Complex Subscription Sales pipeline opportunities opportunities transition opportunities • Fragmented imaging • More complex reading • Accelerating transition • Largest and most market with long-time environments and remote to subscription sales diverse pipeline of sales legacy
Slide 20: Appendix
Appendix
Slide 21: Our Markets
Our Markets Diverse Market Segments and Global Footprint • Integrated Delivery Networks (IDNs) 165+ Customers in 15 Countries • US public health system (new market in FY24) • International hospital authorities • Regional and community hospital systems • Academic medical institutions • Medical resear
Slide 22: Our Value Proposition
Our Value Proposition Fits Individual Needs Designed for the Enterprise Flexible Workflows We can fit into customers’ existing The foundation is in the enterprise, not Flexibility of workflows – with an intuitive technology infrastructure or adapt as it individual departmental systems. The Mach7 and
Slide 23: Our Differentiators
Our Differentiators • Enterprise First Strategy • Maintained Industry-Leading Performance • VNA backend data management solution • eUnity Viewer scored above industry average designed and built for entire healthcare performance in KLAS for 3 consecutive years. network rather than the radiology depar
Slide 24: Our Scalable Future Proof Framework
Our Scalable Future Proof Framework Build on Existing Innovative Long-Term Allow Anyone to Join Work Technologies Scalability Builds upon the Provides a point of access Allows new and innovative Ensures variation around a substantial work done in to allow all types of technologies such as AI to broa
Slide 25: Our AI Position
Our AI Position AI Market Dynamics: AI Ready - Data Storage, Management & Orchestration • According to Signify Research*, the medical imaging AI Deployment, integration, data depth, data management and market was estimated at approximately US$700 million in data orchestration are key requirements fo
Slide 26: Market dynamics influencing Enterprise Imaging adoption
Market dynamics influencing Enterprise Imaging adoption Factors driving demand • Decisions increasingly driven by C-suite with emphasis on enterprise efficiency, simplified procurement and cost savings. • Growing investment across non-acute providers. Many imaging centres and ambulatory centres offe
Slide 27: Contact Us
Contact Us Investor Relations, Mach7 Françoise Dixon +61 (0) 412 292 977 ir@mach7t.com Registered Office: Level 4 | 100 Albert Road, South Melbourne, VIC This document was authorised for release to the ASX by Mike Lampron, Managing Director and Chief Executive Officer Issued 18 February 2021, Mach7
Slide 28: Disclaimer “forward looking” statements
Disclaimer “forward looking” statements Summary of information: This presentation contains general and background information about Mach7 Risks: An investment in M7T securities is subject to investment and other known and unknown risks, Technologies Limited (“M7T”) activities current as at the date