Pro Medicus, Ltd. · ASX:PME
Pro Medicus — Shareholder Meeting (November 2019)
40 slides from Pro Medicus's shareholder meeting presentation, Nov 19, 2019
Slide 1: Chairman's Address AGM
pro+medicus OUR SUPPORT. YOUR SUCCESS. CHAIRMAN'S ADDRESS AGM NOVEMBER 2019 Lf VISAGE IMAGING’
Slide 2: Chairman's Report
CHAIRMAN’S REPORT Overview The Board has continued to follow its strategic plans, which were updated in August last year, and which have provided the company with significant growth and improved profitability during the last financial year. Each of our businesses in our main markets (Australia, Euro
Slide 3: Chairman's Report: Dividend, Founder Share Sales, ASX 200
The Company continued to be cash flow positive with retained cash increasing from $25 million to $32 million after paying an increased dividend. This trend has continued as a large proportion of the significant balance of trade receivables at 30 June 2019 has been realised. The Board anticipates ano
Slide 4: Chairman's Report: Closing
As the company’s business grows we see the opportunity to appoint an additional director and we hope to be in a position to make an announcement early in the New Year. Closing In closing, on your behalf, I would like to thank all of our dedicated staff in Australia, North America and Europe for thei
Slide 5: CEO Presentation AGM
pro+medicus OUR SUPPORT. YOUR SUCCESS. CEO PRESENTATION AGM NOVEMBER 2019 Lf VISAGE IMAGING’
Slide 6: Pro Medicus
PRO MEDICUS (ASX:PME) Healthcare IT company specializing in Enterprise Imaging and Radiology Information System (RIS) software. Leading edge products, growing global presence. EU HQ/R&D Berlin GmbH U.S. HO San Diego CA wd GROUP HO Melbourne AUS & VISAGE TMAGING" 3
Slide 7: Global Management Team
VY GLOBAL MANAGEMENT TEAM Malte Westerhoff Sean Lambright Brad Levin Teresa Gschwind Chief Technology Officer Head of Sales Head of Marketing Head of Services pro+medicus & VISAGE TMAGING"
Slide 8: Visage Product Suite
VISAGE RIS ©) ASX:PME pro+medicus.net @B VISAGE? Pd | OEM VISAGE 7 OEM PRODUCT SUITE prosmedicu % ners ie, Visace IMAGING:
Slide 9: Visage RIS
@ VISAGERIS TECHNOLOGIST DOCTOR TRANSCRIPTIONIST. SEARCH CLAIMING — SETUP. Recent|¥ Dr RSimpson |v /+ ‘Appointments Northern Book ‘Visage General Hospital 4 Tue, 17-0cr201 MTP” @ Patient © Procedure [Cancelled Blocked Visage Xray ~ Visage US Room ~ Visage US Room 2 ~ ssn (Visage US Room3 + Visage Ma
Slide 10: Visage RIS
y VV VISAGE RIS Long term (5 year) contracts with Primary Healthcare and @ VISAGE RIS |-MED, the 2 biggest radiology providers in AUS Radiology prehensive care, Uncompromising auality, Combined additional revenue of $4.4M pa once fully deployed cay saa “MED Network Rollouts progressing well Potentia
Slide 11: Leading Edge Platform
LEADING EDGE PLATFORM Visage 7 continues to be #1 in Speed, Functionality and Scalability. SPEED FUNCTIONALITY SCALABILITY prosmedicus % SUR suron Youn sucess VISAGE TMAGING’
Slide 12: Legacy Technology: Compress and Send
A vv LEGACY TECHNOLOGY 4 “Compress and Send" V MODALITIES PACS RADIOLOGIST/CLINICIAN prosmedicus 4% founsupront your success VISAGE IMAGING’
Slide 13: Solution: Visage 7 Streaming Technology
A YY SOLUTION: 4 & VISAGE 7? Streaming Technology RADIOLOGIST/CLINICIAN 7 BACKEND RENDER %) SERVER SERVER 7 A prosmedicus 4% founsupront your success VISAGE IMAGING’
Slide 14: North American Market
NORTH AMERICAN MARKET VISAGE IMAGING’ ¢ PACS market estimated at > US $2B pa and growing * Expanding into Enterprise Imaging ¢ Paradigm shift to modular, best-of-breed approach ¢ Market fragmented — in process of consolidating ¢ VISAGE 7? - proven, market leading technology ¢ Rapidly growing PME foo
Slide 15: Massive Data Explosion
MASSIVE DATA EXPLOSION ¢ High density Multi-slice CT - 10,000+ images ¢ HD Breast Tomosynthesis - 6 GB+ ¢ (Optoacoustic breast ultrasound - 10+ GB ¢ Total Body PET Scan - 10+ GB ¢ 7T MRI - much larger than 3T & VISAGE TMAGING"
Slide 16: Electronic Health Record (EHR)
ELECTRONIC HEALTH RECORD (EHR) ¢ Mandated in US Hospitals by end of 2018 * Consolidates all hospitals data - clinical and financial ¢ Massive investment - often in $ Billions ° 90% of EHR is imaging data (by volume) * Post EHR implementation - next focus is imaging ¢ Need fora single viewer for all
Slide 17: Year in Review
YEAR IN REVIEW a VA) US Department ofVereran Afar DukeHealth PARTNERS ® ui "yom WEXNER MEDICAL CENTER $27M/7 years 93M $4M/5 years $14M/7 years | $9M/5 years New Contract German Govt. Hospital VISN23 New Contract New Contract Contract Extension Contract (Renewal) i i 1 i i + + + + + NOVEMBER 2018 DE
Slide 18: Partners Healthcare
4 , V PARTNERS HEALTHCARE V ° Largest health system in Massachusetts ¢ Massachusetts General Hospital ranked (#2) y and Brigham and Women's Hospital (#13) best hospital in US ¢ Top two teaching hospitals for Harvard Medical School 7 ¢ Leader in biomedical and data science research - MGH & BWH vv Cen
Slide 19: Partners Healthcare
PARTNERS HEALTHCARE ° 7-year, $27M deal, transaction-based licensing model (Phase 1) ¢ Largest contract in the history of PME ¢ Transformational - a key component of Partners 2.0 initiative ¢ Phase 1 fully implemented in record time prosmedicu % ners ie, Visace IMAGING: 16
Slide 20: Duke Health
A & : VY DUKE HEALTH 7 year - $14 Million deal Largest health system in North Carolina Visage 7 to be implemented across all of Duke's radiology departments - commencing January 2020 ——— Transaction-based model with potential upside Adds to PME's growing footprint in the tier 1 U.S. academic hospita
Slide 21: Ohio State University
>) THE ON 1d STATE UNIVERSITY | WEXNER MEDICAL C OHIO STATE UNIVERSITY Wexner Medical Center ¢ Minimum of $9 Million over 5 years ¢ Transaction-based licensing model with upside ¢ Large regional hospital system * Teaching hospital for The Ohio State College of Medicine ¢ Implementation scheduled for
Slide 22: Results
RESULTS FY 2019 $50.1M § aan | $19.13M $22.74M 51.6% Profit ; 0 Underlying now OFF (he) a” oo (a) $32.32M Cash ® Company Strong debt balance up 28% free sheet $0.045 Fully franked Final dividend Total dividend up 75% Reserves prosmedicus 4% founsupront your success VISAGE IMAGING’
Slide 23: Revenue by Geographic Segment
$60,000,000 Revenue by geographic segment - * reinstated for new accounting standards $35.00 $50,000,000 Cash ($M) $30.00 $40,000,000 $25.00 $30,000,000 $20.00 $15.00 $20,000,000 $10.00 $10,000,000 $5.00 $- $- FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY2018 FY2019 North America Austra
Slide 24: Operational (Transaction) Model
y & A VY OPERATONAL (TRANSACTION) MODEL Used in vast majority of US contracts Delivered as SaaS model ‘ ¢ Now used in RIS contracts in AUS %) * Model based on guaranteed transaction minimums ¢ Contracted revenue > AS180M/5 years* ¢ Upside as client examination volumes grow f ¢ Annuity style revenue
Slide 25: Exam (Transaction) Revenue
YY EXAM (TRANSACTION) REVENUE * Recurring in nature ¢ Increased by 43.5% YoY * Growth to continue in FY 2020 onwards (Partners, Duke, OSU & Others) Growth from existing clients (organic and M&A) plus new clients rN ¢ Further upside with adoption of new products A (VISAGE 7 Open Archive and Enterpris
Slide 26: Professional Services
A VV PROFESSIONAL SERVICES Vv ¢ Project planning, training & implementation -—————— [ol * Revenue spread over the length of the contract Q A - new accounting standards (AASB 15) L ° Recurring in nature ~ 10% contract value oo i } e Will decrease as a % of total revenue as exam 0 y (transaction) reve
Slide 27: Operating Leverage
OPERATING LEVERAGE ¢ Highly scalable offering ed * No capex (HW) - SW only model S ° Training & Installation - charged as professional | services s ¢ Relatively fixed cost base * High operating leverage ¢ Margin continues to grow as footprint increases te $$$ prosmedicus | 4% founsupront your succes
Slide 28: Margin Expansion
MARGIN EXPANSION EBIT Margins 60 50 40 30 20 10 , = : FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 S oe * &. IMAGING"
Slide 29: Fast Track Implementation
FAST TRACK IMPLEMENTATION ¢ Allimplementations on or ahead of schedule ¢ Fast track methodology continues to deliver ¢ Large scale projects completed in under 1/4 the time of industry norm ¢ Delivers huge savings for client ¢ Frees PME staff for other jobs ° Reduces barrier to change ¢ A key differe
Slide 30: Growth Strategy
7 vv GROWTH STRATEGY y Transaction growth A from existing clients / Expand footprint - New clients New product offerings A for existing clients VA Extend to other 7 EY geographical markets J Leverage R&D capability VV to introduce next generation products & VISAGE TMAGING"
Slide 31: New Products: Visage 7 Open Archive
A NEW PRODUCTS vv 4 VISAGE ? OPEN ARCHIVE ¢ Same highly scalable enterprise imaging platform used in VISAGE 7 ¢ — Interoperable - works in complex environments ¢ — Enables Visage to offer choice of A modular or single vendor solutions A ¢ Pipeline includes opportunities for = Viewer and Visage Open
Slide 32: New Products: Enterprise Imaging
VV NEW PRODUCTS ENTERPRISE IMAGING VISAGE 7 Al ¢ — Single viewer for ALLimages in the medical record (EMR) * — Radiology/Cardiology (DICOM format) ENCOUNTER ¢ Non-radiology- reflected light - v hi-res photos & videos 7 a ¢ VISAGE 7 technology ideally suited / A * Increases Visage value proposition o
Slide 33: Visage in the Cloud
VISAGE in the CLOUD ¢ Visage 7 - highly optimised for Cloud deployment ¢ Same Ultrafast performance as on premise ¢ Full Visage 7 functionality ¢ Security and scale of the cloud * Full deployment or as backup/disaster recovery ¢ Suitable for all size implementations ¢ Opens up new market opportuniti
Slide 34: Visage Accelerator
Visage / N ACCELERATOR ¢ Unique end to end solution ¢ Supports both research and production environments ona single platform ¢ Based on market leading Visage 7 technology ¢ Enables Visage clients to fast track Al as part of their imaging strategy prosmedicus % ners ie, Visace IMAGING:
Slide 35: Visage Accelerator
Visage / N ACCELERATOR e Visage Research Server - streamlines Al algorithm development * Optimised for Al data curation and validation * Open API - seamless integration ¢ Al Ecosystem - 3" party and Visage developed algorithms * Joint development/commercialisation opportunities - 3 parties and acade
Slide 36: AI Research Leadership
A Ww . Al Research Leadership \ ACCELERATOR ¢ & Malte Westerhoff Chief Technology Officer Vv 7 ‘2 Detlev Stalli y r a aun 4 w ; ; \ Ming De Lin Clinical Research Manager North America X — & ors | VISAGE TMAGING' prosmedicu
Slide 37: Breast Density AI
MN) Breast Density Al . i 4s . ACCELERATOR ¢ st diagnostic Al algorithm produced by Visage ¢ Developed in collaboration with renown breast imaging team at Yale \ + Provides “on the fly” Al assessment of breast density } * To be previewed at RSNA 2019 as WIP é ¢ A model for future collaboration with
Slide 38: Progressing Through Various Stages
© Prospects y © Progressing through V Network Effect various stages } of the cycle Increased as a result of recent high- profile wins A Opportunities A last 12 months - significant increase in number of inbound RFPs Pipeline Robust In terms of quality and quantity of opportunities prosmedicus | % fo
Slide 39: RSNA - Chicago
& RSNA - Chicago December Ist - 5th De facto world radiology conference ~ 60,000 attendees Largest Visage presence to date Record number of pre-booked meetings Looking to leverage network effect of recent high-profile wins Visage to showcase latest product releases and new Al offerings Shaping up to
Slide 40: Thank You - AGM
THANK YOU - AGM NOVEMBER 2019