Pro Medicus, Ltd. · ASX:PME
Pro Medicus — Investor Presentation (September 2018)
34 slides from Pro Medicus's investor presentation, Sep 3, 2018
Slide 1: Investor Presentation September 2018
Investor Presentation September 2018
Slide 2: Pro Medicus (ASX:PME)
Pro Medicus (ASX:PME) Healthcare IT company specialising in Enterprise Imaging and Radiology Information System (RIS) software. Leading edge products, growing global presence. EU Headquarters / R&D Berlin, Germany US Headquarters San Diego, CA Group Headquarters Melbourne Over 40 Software Engineers
Slide 3: PME product suite
PME Visage 7 * Visage RIS Pro Medicus.net Product Suite OEM
Slide 4: FY18 Results
FY18 Results • Profit after tax $12.74M - up 36.7% • Underlying NPAT $12.57M – up 27.4% • EBIT margins increased to 48.5% • Cash reserves increase 10.8% to $25.24M • Dividends 6.0c per share ff up 50% • Company debt free • Strong balance sheet
Slide 5: FY18 in review
FY18 in review • November 2017 - $18M Yale New Haven contract • May 2018 – I-MED renewal and extension contract • May 2018 - Mayo Rochester go live • June 2018 – $15M Mercy Open archive deal • Forward revenue > A$135M/5 years* • US implementations on/ahead of schedule • Visage RIS – increased market
Slide 6: FY18 Full Year Revenue Split
FY- 18 Full Year Revenue Split $40,000,000 Exam/licence revenue*** Support/baseline revenue*** Capital revenue Professional Services ***Recurring revenue $35,000,000 $6,817,000 $30,000,000 $6,601,000 $3,689,000 $25,000,000 $10,858,000 $1,890,000 $20,000,000 $10,118,000 $1,810,000 $9,991,000 $15,000,
Slide 7: Professional Services
Professional Services • Project planning, training & implementation • Revenue at beginning of contract • Non recurring in nature ~ 10% contract value • Will decrease as a % of total revenue as exam (transaction) revenue increases
Slide 8: Exam (transaction) revenue
Exam (transaction) revenue • Recurring in nature • Increased by 23% in FY18 • Step-up anticipated in FY 2019 onwards (Mayo, Yale & others) • Growth from existing clients (organic and M&A) plus new clients • Further upside with adoption of new products (Visage Open archive and Enterprise imaging)
Slide 9: Visage RIS
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Slide 10: Visage RIS – I-MED
Visage RIS – I-MED • 5 year renewal of existing contract • Extension of contract to include I-MED’s QLD and Regional Imaging practices • Additional revenue $1.4M pa once fully deployed • One of the largest RIS installations worldwide
Slide 11: Visage RIS
Visage RIS • Long term (5 year) contracts with Primary Healthcare and I-MED, the 2 biggest radiology providers in Australia • Combined additional revenue of $4.4M pa once fully deployed • Potential upside via organic and M&A growth • Repositions PME as undisputed market leader
Slide 12: Leading Edge Product Set – Visage Imaging continues to be Number 1
Leading Edge Product Set – Visage Imaging continues to be Number 1 in Speed, Functionality, Scalability 12
Slide 13: Massive data explosion
Massive data explosion 13 • Higher image density - CT leaps from 64 slices to 256 and now 640 • 3.0T MRI – much larger dataset than 1.5T • Functional Imaging e.g. PET scan often > 1.5 to 2 gigabytes • Digital Breast Tomosynthesis (DBT) files can be over 4 to 6 gigabytes • Prior examinations multiply
Slide 14: “Deconstructed” PACS – VNA
“Deconstructed” PACS – VNA 14 Radiology Urology Gastroenterology Oncology Cardiology Neurology
Slide 15: Electronic Medical Record (EMR)
Electronic Medical Record (EMR) 15 • Mandated in US Hospitals by end of 2018 • Consolidates all hospital data – clinical and financial • 90% of EHR is imaging data (by volume) • Need all imaging data in one repository • Driving adoption of VNA • Need for a single Viewer for all images
Slide 16: Solution - Visage 7.0 Streaming Technology
Solution - Visage 7.0 Streaming Technology 16
Slide 17: North American market
North American market 17 • PACS market estimated at > US$2 billion pa and growing • Expanding into Enterprise Imaging • Paradigm shift to “deconstructed PACS” – best in breed approach • Market fragmented - in process of consolidating • Visage 7.0 – proven, market leading technology • Growing PME foo
Slide 18: Yale – New Haven
Yale – New Haven • $18 Million - 7 year deal with Yale New Haven • A leading academic/medical institution in the US • Visage 7 to be implemented across all campuses • Builds on PME footprint in University/Academic market
Slide 19: Yale – New Haven
Yale – New Haven • Implementation on schedule • New Haven and Bridgeport hospitals – live July 2018 • Currently being used by over 170 Yale radiologists and 1,700 physicians • ~ 40,000 images processed per day • Remaining campuses scheduled to go live end of 1st half FY19
Slide 20: Fast Track Implementation
Fast Track Implementation • Fast track methodology continues to deliver • 1/3 to1/4 the time of industry norm • Delivers huge savings for client • Strategic advantage - key differentiator in the market • Frees implementation staff for other jobs
Slide 21: Visage - Proven ROI
Visage - Proven ROI • Significant IT and infrastructure savings • Unparalleled increase in radiologist efficiency • Greater clinical accuracy • Improved physician engagement • Delivers superior value proposition
Slide 22: Growing Recurring Income Stream – Operational (Transaction) Model
Growing Recurring Income Stream – Operational (Transaction) Model 22 • Alternative to capital model • Used in vast majority of US contracts • Now used in RIS contracts in Australia [insert chart comparing • Model based on guaranteed minimums transaction with capital model] • Forward revenue > A$135M
Slide 23: Margin Expansion
Margin Expansion 23 • Highly scalable offering • No capex (HW) – SW only model • Training & Installation – charged as professional services • Relatively fixed cost base • Margin continues to grow as footprint increases
Slide 24: Margin Expansion
Margin Expansion 24 EBIT Margins 60 50 40 30 20 10 0 FY-14 FY-15 FY-16 FY-17 FY-18
Slide 25: US Pipeline
25 US Pipeline • Pipeline robust in terms of quality and quantity of opportunities [insert chart • Increasing number of opportunities coming to comparing market transaction with capital model] • Network effect from recent high profile wins • Prospects at various stages of cycle
Slide 26: Growth Strategy
Growth Strategy 26 • Transaction growth from existing clients • Expand current footprint - new clients • New product offerings for existing clients • Extend to other geographical markets • Leverage R&D capability to introduce next generation products
Slide 27: New products – Visage 7 Open Archive
New products – Visage 7 Open Archive 27 • Same highly scalable enterprise imaging platform used in Visage 7 • Modular design – interoperable in complex environments • Enables Visage to offer choice of deconstructed or single vendor solutions • Well placed for the North American archive market
Slide 28: Visage Open Archive - Mercy
Visage 7 Open Archive - Mercy 28 • $15M – 7 year deal • Mercy to standardise on Visage 7 Open Archive across its diagnostic imaging business • Transaction-based model with potential upside • Over 25 million diagnostic imaging exams to be migrated • Once completed - one of the largest medical imaging
Slide 29: New products - Enterprise Imaging
New products - Enterprise Imaging 29 • Single viewer for all images in the medical record (EMR) • Radiology/Cardiology (DICOM format) • Other “Ologies” –neurology, ophthalmology etc • Non radiology - reflected light - hi res photos & video • Visage technology ideally suited • Increases Visage value
Slide 30: Solution – Visage 7.0 Viewer
Solution – Visage 7.0 Viewer” VNA use surging – VNA's projected to store 31% of new imaging studies worldwide by 2016 InMedica, May 2012 Of late, imaging IT has been a "barren" field of technology innovation Reiner & McKinley, JDI, June 2012 No single vendor will do Enterprise Imaging 2012, KLAS Ima
Slide 31: Enterprise Imaging
Enterprise Imaging File View Protocol Tools Help Study Browser * MORGAN (mee fg Zt, iSeries 2Series 4 Series 6 Series 8 Series 12 Series Other Series Multiplanar (act. series) Multiplanar + 3D MIP (act. series) VISA (GAN EDNA ANON Foy:200 x 200 mm: thse. cor Fi 133140 kd mm ki mm pA a mm pas mm C10
Slide 32: Artificial Intelligence (AI)
Artificial Intelligence (AI) 32 • Healthcare imaging ideally suited to AI • Visage well positioned to take advantage of this emerging technology • Advanced image processing in healthcare is “in our DNA” • Visage architecture uses GPU technology • Growing academic/research focused client base
Slide 33: Artificial Intelligence (AI)
- 33 Artificial Intelligence (AI) • Holistic view of AI • In product AI - automate high end functions within Visage 7 • Visage 7 - single visualization platform for AI in both clinical and research environments • Open platform – enables integration of both in- house and 3rd party algorithms
Slide 34: Summary
Summary • Growing North American footprint • Transaction revenue grew 23% • Market leading technologies • Proven implementation & support capability • Unparalleled value proposition • 1st large scale sale of Visage 7 Open Archive in US • New products – Enterprise Imaging • Positioned to leverage AI