Nordhealth As · OSL:NORDH
Nordhealth As — Investor Presentation (2021)
39 slides from Nordhealth As's investor presentation, 2021
Slide 1: Nordhealth
(XJ nordhealth
Slide 2: Today's presenters
Today’s presenters Valter Pasanen Charles MacBain CFO CEO
Slide 3: Table of contents
Table of contents » Introduction to Nordhealth (X) nordhealth
Slide 4: Our mission
Our mission Redefine digital healthcare
Slide 5: Our vision
Our vision Empowering healthcare professionals to save time so they can focus on what matters most— delivering great care, great experiences, and growing their business.
Slide 6: Business overview
Business overview Nordhealth is the leading Nordic healthcare SaaS company W% Pan-Nordic company growing internat Lly Incubator Nordhealth is a healthcare SaaS company founded in 2001 We acquire, develop, migrate and manage a portfolio of fast- growing Practice Management Software (PMS) in attractiv
Slide 7: Attractive historical financial metrics
Attractive historical financial metrics CC & 85% 87% recurring revenue Gross margin Or o O~-O 119% net retention rate 1.8% ARR gross churn average 2019- 2020 all products 2020 Note: (1) Assuming 87% gross margin and a churn rate of 1.8% 87% ARR CAGR 2018-2020 11.8 months CAC payback period Ul ip 46%
Slide 8: Outstanding LTV to CAC
Outstanding LTV to CAC tN * Lowchurn rates and high gross margins allow for very high average customer lifetime value 87% . . * In2020 Nordhealth recruited 423 new recurring revenue customers and ended the year with ~2 700 customers 18% * Churn rate trending down as Trofast migration resulted in 19
Slide 9: History of successful acquisitions and organic growth
History of successful acquisitions and organic growth IN Starting point International Expansion Full potential SaaS Veterinary segment entered Therapy segment entered Roll-out to several countries Exploiting SaaS opportunities oe @ Expansion to Estonia in 2015 PROVET © Diarium - Expansion to Sweden
Slide 10: Seasoned management team and board
Seasoned management team and board IN Charles MacBain, CEO + Joined Nordhealth in 2018 + Prior vice president at Pamoja Capital and consultant at Booz & Company * MBA from Harvard Business School Valter Pasanen, CFO * Several finance positions in well-known firms, including CFO Germany for Eltel * M
Slide 11: Table of contents
Table of contents Introduction to Nordhealth (X) nordhealth
Slide 12: Platform with big potential to scale and add services
Platform with big potential to scale and add services IN) Electronical health record Veterinary Small Veterinary Farm es ationa ee General Animal & Equine Animal NTE PISS t el Practitioners World leading position Building scale in Finland, aiming to expand Potential next steps Additional Modules €Fr
Slide 13: Why Practice Management Software?
Why Practice Management Software? tN Workflow gravity Data gravity Revenue Model PMS is core to our customers’ workflow The PMS creates and holds the most and culture, and is used by all critical information and is the hardest employees in clinic to migrate. It is the system that all other systems i
Slide 14: Trend towards cloud
Trend towards cloud Market opportunity as a frontrunner in the shift from on-premise to cloud based Practice Management Software Why veterinary & therapy? Regulatory benefits Less regulation compared to traditional EHRs" facilitates an increased growth rate and ability to scale faster then tradition
Slide 15: Tier 1 customers and a highly diversified customer base
Tier 1 customers and a highly diversified customer base tN) Nordhealth serves tier 1 customers... ..with limited customer concentration risk U . | UNIVERSITY OF rip wocace” AniCura Wifey Biivekroot N Institute of Veterinary Science e Se seen oO & cle xzext FysiIOS oS UCD School of Mitsiike, Veterina
Slide 16: Table of contents
Table of contents Introduction to Nordhealth (X) nordhealth
Slide 17: Strong historical financial performance
Strong historical financial performance — wae . iN} EBITDA and cash flow positive since 2020 Reported figures (i.e. not PF adj.) EURm HB Revenue 13.0 Ml EBITDA Hl Free Cash Flow TT 51 023 ot -0.2 2018 2019 2020
Slide 18: Successfully growing attractive recurring revenue streams
Successfully growing attractive recurringrevenuestreams Reported figures (i.e. not PF adj.) EURm Recurring revenue Q1’2021 tracking clearly ahead of budget with annualized ARR at EUR 21.4 million per QV'21 23.0-25.0 8.2 ARRDecember Netretention Newcustomers ARRDecember Netretention Newcustomers ARR
Slide 19: Ability for cash generation will increase in the medium-term
Ability for cash generation will increase inthe medium-term WW Ability for cash generation the next years will be contributed from several reliable levers EBITDA — CAPEX as % of Revenue Adjustment relates to: . . Assuming 1) G&A (biggest contributor) 47pp increase mature adjusted for growth business
Slide 20: Growth driven by upsales, new customers, expansion and M&A
Growth driven by upsales, new customers, expansionandM&A W 46% organic ARR CAGR 201 ‘0 41% M&A ARR growth NET UPSELL TO EXISTING CUSTOMERS Organic growth through a combination of price increases, upsells and customer user growth RECRUIT NEW CUSTOMERS Ramped up marketing and sales team to enable us t
Slide 21: Nordhealth uniquely positioned to expand the offering by adding value added services
Nordhealth uniquely positioned to expand the offering by adding additional value added services i) Take rate as % of clinic revenue Provide in-clinic and online payments via partners Consumer apps and bookings Wholesalers, financing partners, external 6 laboratories 2-4% Current take rate Full poten
Slide 22: Nordhealth has a clear strategy on how to enter new markets
i) Nordhealth has a clear strategy on how to enter new markets Customer Satisfaction Marketing Target and hire Software implementation to be successful Target university Lan\ op, chains and clinics Ke Localization of the software . 4] ® Recruitlocal team «3 Begin outbound sales campaign EQ Y combine
Slide 23: Why have we been successful with acquisitions historically?
Target acquired At acquisition R&D synergies SG&A and Net upsell synergies Why have we been successful with acquisitions historically? Case study: Acquisition synergies Case study: Acquisition synergies Value creating migration process Sanimalis EBITDA after capex margin development Sanimalis 14% %
Slide 24: Table of contents
Table of contents Introduction to Nordhealth (X) nordhealth
Slide 25: Key building blocks in the M&A strategy going forward
Key building blocks in the M&A strategy going forward tN Nordhealth has a successful playbook for M&A Identify attractive new country based on ARPU", market >1 year migration process size and competitive landscape 2-4x Customer value Acquire PMS companies with strong customer base and local team 2 c
Slide 26: Aspit Acquisition
& aspit Aspit Acquisition tN) Business overview Equity value creation + Leading provider of practice management software for therapists in Norway * Currently ~60 employees including ~20 IT consultations * More than 6,000 psychologists, psychiatrists, physiotherapists, chiropractors and specialists u
Slide 27: USA veterinary expansion
& USA veterinary expansion US expansion rationale Market landscape Current cloud providers include: * The majority of US vet practices currently use legacy hosted or on-premise PMS software solutions from: — IDEXX: Cornerstone — Covetrus: Impromed or Avimark * Current chains are looking to unify the
Slide 28: Use of proceeds
Use of proceeds Recruit and retain great talent Develop great products Deliver great experiences PMS and add-on products acquisitions
Slide 29: Targeting ~40% growth rate in the medium-term
Targeting ~40% growth rate in the medium-term IN Sustainable growth rate medium term the next 4-5 years Level relates to: 1) PMS add-ons 2) Integrated payments ~40% 3) Marketplace revenue 15-20% 20-25% 15-20% 4-5% 5% Priceincreases User growth Upsells Churn & Net retention Migration New clinics Sust
Slide 30: Nordhealth is targeting >€110M ARR in the medium-term
Nordhealth is targeting >€110M ARR in the medium-term several reliable leve 12 Fully financed to reach the medium-term target with the planned capital raise Medium-term ARR foresight, EURm & 1 56-58 23-25 ARR Pro forma December 2021") ° New customers: M&A / Organic expansion + Acquire to accelerate
Slide 31: Q&A
Q&A (X) nordhealth
Slide 32: Table of contents: Appendix
Table of contents Introduction to Nordhealth > Appendix (X) nordhealth
Slide 33: Q1 2021 recurring revenue update
Q12021 recurring revenue update IN) Significant recui evenue increase driven by acquisitions and organic growth Comments Annualized QV'2020 vs Q1'2021, recurring revenue 21.4 + Recurring revenue in Q1 2021 tracking clearly ahead of budget EURM ug anne * The main driver being Provet Cloud, where both
Slide 34: Q1 2021 EBITDA update
Q12021 EBITDA update Ny) resulting gross margins offset additi vestments into top tale: Q12020 vs Q1'2021, EBITDA 1 + Profitability also improved significantly, as larger scale and resulting gross margins managed to offset active recruiting of new talent in the group. EURm + EBITDAafter capex improv
Slide 35: Legal structure
Legal structure Nordhealth AS Nordhealth Oy 100% 100% 4e 100% 4 100% - 100% é s 100% Nordhealth Finland WRordhealthNorway Aspitas N } Provet Cloud k Provet Cloud OY ‘AS spi lavicre Oy rovet Cloud Inc. Limited e 100% @ 100% a 100% 100% Nordhealth Sweden "Estonian Net ‘AB Aspit Sverige AS Solutions OU
Slide 36: Reported P&L 2018 – Q1 2021
Reported P&L 2018 — Q1’2021 iN) Ba va) RED Recurringrevenue 4623 10724 Otherrevenue 3018 1960 Total revenues 5010 7641 12685 Other operatingincome 53 312 Material and services (160) (1225) (1751) Gross profit 4946 6470 1246 Personnel expenses, (3754) (4184) (6555) (1567) Other operating charges (152
Slide 37: Adjusted pro-forma P&L 2018 – Q1 2021
Adjusted pro-forma P&L 2018 — Q1’2021 iN Adjusted pr IEUR in thousands FVI8 PF FVI9PFFY20PF_Qi'2iPF| ‘Adj, Total revenues 14.958 17153 20087 5498 Other operating income 96 53 312 51 coas (2431) (3504) (3584) (895) ‘Adj. Gross profit 12624 13702 16815 4654 Personnel expenses (7581) (8409) (933) (2578
Slide 38: Balance sheet 2018 - 2020
Balance sheet 2018 - 2020 IN) Audited balance sheet 2018 - 2020 IEUR in thousands 31Dec'8 BDec'!9 __31Dec'20] Intangible assets 176 1939 2435 Other capitalizedlong-term expenses 74 54 34 Group Goodwill 139 4986 4135 Machinery and equipment 437 368 306 Other shares and similar rights of ownership 189
Slide 39: Nordhealth
(XJ nordhealth