Adheris Health Limited · ASX:AHE
Adheris Health — MedAdvisor — 1H FY24 Earnings Presentation
32 slides from Adheris Health's earnings presentation, Feb 28, 2024
Slide 1: 1H FY24 Investor Update: Delivering profitable growth
For personal use only 1H FY24 Investor Update Delivering profitable growth 29 February 2024
Slide 2: Agenda
Agenda 1 1H FY24 overview 2 Financial and operational update For personal use only 3 Investment strategy 4 2H FY24 outlook Rick Ratliff Ancila Desai CEO & Managing Director Global Chief Financial Officer and Company Secretary 2 1H FY24 Investor Update: Delivering Profitable Growth
Slide 3: 1H FY24 overview
1H FY24 overview For personal use only 3 1H FY24 Investor Update: Delivering Profitable Growth
Slide 4: Key investor highlights
Key investor highlights MedAdvisor Solutions is a global leader of pharmacy-driven patient engagement solutions that provide individualised patient experiences to help remove barriers of care. For personal use only Record 1H FY24 revenues of $75.5M (18% YoY) Finalised initial investment in Charac—cr
Slide 5: Financial and operational update
Financial and operational update For personal use only 5 1H FY24 Investor Update: Delivering Profitable Growth
Slide 6: 1H FY24 group financial highlights
1H FY24 group financial highlights Record half-year performance with clear YoY momentum, delivering on our Pathway to Profitability as we scale up. For personal use only Financial Category (AUD) 1H FY24 1H FY23 Change Revenue $75.5M $64.1M +17.8% Doing what we said: On track to deliver Gross Profit
Slide 7: Continued progress toward sustained profitability
Continued progress toward sustained profitability EBITDA (adjusted) Improvement of 24% YoY, enabling targeted investments in 1H $5.0M Revenue and Margin Uplift: Improvement due to ($0.5M) For personal use only increased growth in vaccine programs $11.9M ($1.1M) ($0.3M) Marketing & Communications: To
Slide 8: Strong cash position, creating opportunities to fund investments
Strong cash position, creating opportunities to fund investments for growth and profitability Cash Reported cash flow = $60.8M strong cash position. Receipts from Customers and Payments to Suppliers: Strong customer receipt For personal use only growth from both the US and AU, and disciplined workin
Slide 9: 1H FY24 regional highlights: US
1H FY24 regional highlights: US Clear YoY momentum in US. Increase in 1H revenue from $54.9M 1H FY23 to Health programs $64.5M up by 17.5% YoY 109 executed in the US (30% growth on pcp) For personal use only Gross profit Average revenue per top 20 Pharma Revenue per full-time employee +10.8% YoY to
Slide 10: Diversification is driving growth in the US
Diversification is driving growth in the US We introduced 11 new brands in the first half. Two of these brands contributed to the diversification of the vaccine revenue. Arthritis: .59% Flu: 1% Men’s Health: .31% Thyroid: 1% Migraine: .14% Hepatitis: 1% Tetanus: 4% Gastrointestinal: 4.41% For person
Slide 11: 1H FY24 regional highlights: ANZ
1H FY24 regional highlights: ANZ Developing a foundation for growth in ANZ. Increase in 1H revenue from $9.2M 1H FY23 to Health programs $11.1M 54 executed in the first half (43% growth on pcp) For personal use only up by 20.7% YoY 2,300 +16% 95% Gross profit +23.1% YoY to $9.6M pharmacies using our
Slide 12: UK strategy taking shape
UK strategy taking shape Initial £500K investment in Charac completed and UK transition proceeding ahead of plan. UK Transition MedAdvisor Solutions and Charac Planning • 100% of the MDR-contracted pharmacy owners • Per the Charac licensing agreement, planning to deliver a pharmacy have been contact
Slide 13: Investment strategy
Investment strategy For personal use only 13 1H FY24 Investor Update: Delivering Profitable Growth
Slide 14: Our purpose, impact, and reach
In progress/preliminary design Our purpose, impact, and reach Our Purpose Enable pharmacy-led personalised medication management. Our Impact For personal use only Our data-driven solutions today deliver differentiating value to: The Patient The Pharmacy Pharma Simplifying Empowering Improving the pa
Slide 15: Our global platform for personalised medication management
Our global platform for personalised medication management AWARENESS Our unified platform will: • Deliver interoperable Our evolving global platform connectivity and faster will be powered by THRiV, which Pharmacy-led speed to market engagement was originally developed in • Accelerate product execut
Slide 16: Our investment for sustained profitable growth
Our investment for sustained profitable growth We are investing $10-$15M from internal cash flow in FY25 and FY26, creating operating leverage in late FY25. FOCUS > Operational Path to Innovate Product, Data: Hyper- Evolve Our drive For personal use only Excellence Global Platform Tech, AI Personali
Slide 17: Impact of AI optimisation on THRiV, PlusOne, and patient engagement
Impact of AI optimisation on THRiV, PlusOne, and patient engagement We are rapidly working to integrate and deploy AI to revolutionise patient engagement and simplify the medication journey. For personal use only Patient segmentation to enhance Piloting AI optimisation personalisation in Medication
Slide 18: Investments enable increased operating leverage over time
Investments enable increased operating leverage over time Fixed costs OPEX vs. revenue Variable costs For personal use only We are purposefully driving Over time, these actions As fixed costs reach down fixed costs with will put steady downward equilibrium in 4Q FY25, we initiatives, including shift
Slide 19: 2H FY24 outlook
2H FY24 outlook For personal use only 19 1H FY24 Investor Update: Delivering Profitable Growth
Slide 20: Positioned for a strong finish in 2H FY24
Positioned for a strong finish in 2H FY24 Over 75% of projected 2H FY24 US revenue is contracted with a solid pipeline to support a strong finish in FY24. Our US Pipeline 3X The pipeline has 3X what is needed ANZ 2H FY24 Outlook to close the gap and achieve 2H For personal use only Contracted Revenu
Slide 21: FY24 and beyond—actions to accelerate sustained profitability
FY24 and beyond—actions to accelerate sustained profitability We expect FY24 to show YoY revenue growth and profitability in line with the seasonality of the US business. Sustained profitability will result from: For personal use only Driving growth Improving margins Increasing number of accessible
Slide 22: Appendix
In progress/preliminary design Appendix For personal use only 22 1H FY24 Investor Update: Delivering Profitable Growth
Slide 23: The value of personalised medication management
In progress/preliminary design The value of personalised medication management For personal use only 23 1H FY24 Investor Update: Delivering Profitable Growth
Slide 24: Global need for simplified patient medication engagement
Global need for simplified patient medication engagement Current global landscape is primed for transformation. Annual global medication ~50% of adults have a chronic condition non-optimisation cost, per WHO: US$630B ~20% of patients do not pick up For personal use only their prescriptions Cost of m
Slide 25: The power of pharmacy
The power of pharmacy Community pharmacies are uniquely positioned to help drive this transformation. Patients visit pharmacists up to For personal use only As healthcare 10x more than prescribers prioritises personalised care, Globally, pharmacists ranked the pharmacy is top 5 most trusted professi
Slide 26: Why Pharma and pharmacies partner with us
Why Pharma and pharmacies partner with us They know us. We are a leader in pharmacy-driven “Having an intermediary like MedAdvisor patient engagement, supporting full Solutions on pharma-sponsored scope of practice, delivering sustained opportunities is important. There could For personal use only v
Slide 27: The business model across ANZ and the US varies
The business model across ANZ and the US varies In the US, our primary focus is targeted Provider prescribes… patient engagement programs for Pharma, delivered through the patient’s pharmacy. • Each delivered communication generates a For personal use only transaction fees subscription fees (ANZ) tr
Slide 28: Overview of our ANZ business
Overview of our ANZ business Room to Grow ANZ Pharmacy Network In ANZ • More transaction fees • More pharmacy solutions 95% Revenue generated primarily by SaaS subscription and transaction fees paid • More health programs • More clinical services by the pharmacy. of pharmacies PlusOne For personal u
Slide 29: Bringing it all together–solutions across the spectrum
Bringing it all together–solutions across the spectrum MedAdvisor App Thrive Health Programs Maggie has access to Maggie receives targeted medication reminders, Pharma-sponsored doctor telehealth, electronic messages at the right time to prescriptions, click and simplify medication use. collect, and
Slide 30: Overview of our US businesses
Overview of our US businesses Room to Grow US Pharmacy Network In US • More pharmacies • More Pharma brands 65% Revenue generated entirely by transaction fees paid by Pharma. • More THRiV • Introduce AI patient engagement $8.4B of the population As new AI and digital patient engagement solutions are
Slide 31: Simplifying the patient journey in the US
Simplifying the patient journey in the US Meet Raymond: Retired 65-year-old male • NTB Dupixent patient • Digitally eligible • Moderate compliance history Raymond, you are now eligible l for the flu and RSV vaccines. Express Markets 333 Adheris Drive Anytown, PA 01887 For personal use only Dear Jenn
Slide 32: How we got here
How we got here Our approach: Invest in established businesses in patient Today, taking the best of our engagement in key markets and evolve. technologies and working as one All of our businesses have been working in new team, we are building a single global ways towards the same outcome: empowering