Adheris Health Limited · ASX:AHE
Adheris Health — Investor Presentation (July 2022)
45 slides from Adheris Health's investor presentation, Jul 25, 2022
Slide 1: GuildLink acquisition & equity raising
GuildLink acquisition & equity raising Investor & Capital Raise Presentation | ASX: MDR 25 July 2022 | MedAdvisor Limited ABN 17 145 327 617 Not for release to US wire services or distribution in the United States
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER The information contained in this presentation (Presentation) has been prepared by MedAdvisor Limited ABN 17 145 327 617 (MDR, MedAdvisor or the Company). This Presentation has been prepared in relation to: • MDR’s acquisition of GuildLink Pty Ltd (GuildLink); and • a
Slide 3: Important Notice and Disclaimer (continued)
IMPORTANT NOTICE AND DISCLAIMER (continued) Neither the information contained in this Presentation nor any copy hereof may be, directly or indirectly, taken or transmitted into or distributed, in whole or in part, in any other jurisdiction which prohibits the same except in compliance with applicabl
Slide 4: Table of contents
Table of contents 01 FY22 Group highlights 04 US investment opportunity 02 Transaction summary 05 Capital raise 03 GuildLink acquisition 06 Key risks 07 Appendices
Slide 5: Global Expansion: MedAdvisor FY22 Group Highlights
Global Expansion MedAdvisor FY22 Group Highlights MDR Footprint Founded and Developed in Australia and focusing on growing in the US Corporate Overview 184 $68m Employees globally FY22 Operating Revenue (1) 2.9m+ Digitally Connected 18.6% Patients in Au Like-for-Like Growth 180m+ 52% Patients access
Slide 6: FY22 Group Highlights
MedAdvisor FY22 Group Highlights MDR has world class digital and data platforms with unparalleled patient reach driving marketplace economics US Market ANZ Market • 180m people in the US can be reached • 23m Australians visit a MedAdvisor without further opt in via c. 25,000 pharmacy(1) pharmacies P
Slide 7: FY22 MedAdvisor highlights
MedAdvisor FY22 Group Highlights FY22 MedAdvisor highlights Continuing to deliver revenue growth Commentary 67.8 • Rick Ratliff appointed MedAdvisor’s new US-based CEO & $m Revenue1 Managing Director, commencing 18 July 2022 57.1 • Rick has significant experience in health and Revenue - AU and ROW p
Slide 8: Operating cash flow moving towards cash flow breakeven
MedAdvisor FY22 Group Highlights Operating cash flow moving towards cash flow breakeven Improving cash flow dynamics Commentary Operating cash outflow of $1.7m • Operating cash out flow inclusive of lease payments of ($1.7 $m million) for FY22, an improvement from ($13.5 million) FY21 and ($8.9 mill
Slide 9: MedAdvisor ANZ FY22 shows strong revenue growth of 44%
MedAdvisor FY22 Group Highlights MedAdvisor ANZ FY22 shows strong revenue growth of 44% Operating Revenue up 44% Commentary Patients now +2.9m, up 50% Digital Health Programs 14.1 Transaction Fees SaaS 2.9 • ANZ revenue driven by: 9.6 9.8 8.2 • Transaction fees up c. 101% impacted by the COVID-19 va
Slide 10: GuildLink Acquisition
MedAdvisor FY22 Group Highlights GuildLink Acquisition GuildLink1 is a provider of digital healthcare solutions and MedAdvisor is purchasing GuildLink to provide a leading medication medicines information for consumers, health professionals and and service management platform within the Australian m
Slide 11: GuildLink acquisition consolidates Australian market and allows next phase of US growth
MedAdvisor FY22 Group Highlights GuildLink acquisition consolidates Australian market and allows next phase of US growth Creating marketplace economics through strong strategic positioning in attractive markets Australia & NZ US US Growth Consolidate & Grow Digitalise Pharmacy Market Leverage distri
Slide 12: Capital Raise - seeking to raise up to 14.6m to fund future growth
MedAdvisor FY22 Group Highlights Capital Raise - MedAdvisor is seeking to raise up to 14.6m to fund future growth opportunities A$10 million Scenario A$14.6 million Scenario Costs Costs associated associated with funding with funding 0.9 0.6 GuildLink 1.1 Integration GuildLink 1.1 Integration 4.2 Sy
Slide 13: Transaction summary
02 / Transaction summary
Slide 14: Transaction Summary
MedAdvisor Transaction Summary Transaction Summary MedAdvisor and GuildLink are combining to deliver greater services to pharmacies and provide choice for consumers in medicine management • MedAdvisor’s Australian subsidiary, MedAdvisor International Pty Ltd (MAI), has entered into a binding agreeme
Slide 15: Transaction Summary: Acquisition terms
MedAdvisor Transaction Summary Transaction Summary Acquisition terms Escrow 50% of the Consideration Shares are to be held in escrow for 12 months and the remaining 50% for 24 months (subject to customary exceptions). MedAdvisor has agreed to appoint GGHL’s nominee as a director of MedAdvisor with e
Slide 16: Transaction Summary: Master Services Agreement with Pharmacy Guild
MedAdvisor Transaction Summary Transaction Summary Master Services Agreement with Pharmacy Guild The Master Services Agreement (MSA) to be entered into by the Pharmacy Guild, GuildLink and MAI on Completion establishes a collaborative, strategic partnership under which Overview the parties will give
Slide 17: GuildLink acquisition
03 / GuildLink acquisition +
Slide 18: Overview of GuildLink
MedAdvisor GuildLink Acquisition Overview of GuildLink Product synergies to enhance value to pharmacy and reduce combined operating costs • GuildCare is a cloud-based platform that is integrated with more than 10 dispense vendors GuildLink Revenue and provides pharmacy and their patients access to 3
Slide 19: MedAdvisor + GuildLink – A Compelling Strategic Rationale
MedAdvisor GuildLink Acquisition MedAdvisor + GuildLink – A Compelling Strategic Rationale + Pharmacy Guild as Superior financial Strong market position Attractive Economics strategic partner growth profile • Addition of 934 new • Guild Group Holdings Limited • Pro forma FY22 Australian • Accelerati
Slide 20: Strong market position creates new opportunities
MedAdvisor GuildLink Acquisition Strong market position creates new opportunities The combined group will have a strong market presence within Australia for pharmacy and pharmacy services Pharmacy Network over 5,0001 stores 21.2 AU Revenue2 over $21m, on a pro forma3 basis 5,500 3.0 GuildCare 3.0 5,
Slide 21: Attractive economics with high operating leverage
MedAdvisor GuildLink Acquisition Attractive economics with high operating leverage ANZ pro forma P&L sees EBITDA breakeven achieved with GuildLink acquisition Operating Revenue – FY20 to FY22 MDR AU1 + Guild (Pro EBITDA – FY20 to FY22 MDR AU1 + Guild (Pro forma)2 forma)2 +116.4% +109.8% 21.2 +22.3%
Slide 22: Consolidated Group including GuildLink
MedAdvisor GuildLink Acquisition Consolidated Group including GuildLink MedAdvisor’s consolidated group is delivering consistent growth, as well as a decline in key expenses relative to revenue Consolidated Group performance3 – Revenue A$ Commentary +31.2% • FY22 MDR AU1 operating revenue of $14.1 m
Slide 23: US Investment Opportunity
04/ US Investment Opportunity
Slide 24: MDR US' Total Addressable Market ~$9B p.a.
MedAdvisor US Investment Opportunity MDR US’ Total Addressable Market MDR is achieving critical digitalisation scale in the US market with attractive adjacent markets to leverage capabilities Market Acceleration Sponsor Estimated Market size Current Strategic Focus Opportunity • Grow core offering a
Slide 25: Digitalisation of the US Market
MedAdvisor US Investment Opportunity Digitalisation of the US Market The digital reach with the understanding of a patient’s medication, is significant at over 40m people in the US Digital Enabling Pharmacy Engagement Technology 90%+ of Adheris pharmacy network indicated they intend to run digital a
Slide 26: Improved financial economics driven by THRiV
MedAdvisor US Investment Opportunity Improved financial economics driven by THRiV THRiV’s expansion allows for premium pricing due to individual tailoring made available through leveraging predictive models and AI to drive improved outcomes Price per patient pa1 Gross Margins1 Deal Size1 Gross Margi
Slide 27: Platform upgrade & expansion – THRiV v2 & MedEngage
MedAdvisor US Investment Opportunity Platform upgrade & expansion – THRiV v2 & MedEngage Additional features position the US business for differentiated entry into new markets and better outcomes for patients and stakeholders *examples only SCALE: REACH & INSIGHTS & OMNICHANNEL TAILORED PATIENT ENGA
Slide 28: MedAdvisor US performance
MedAdvisor US Investment Opportunity MedAdvisor US performance Adheris is continuing to deliver on its growth profile with emerging upside from new revenue models and digital solutions $USD Revenue Commentary US Programs +10.2% +53.6% 39.0 • Successful first program launched into the Medicare 35.3 A
Slide 29: Management Team and Board of Directors
Management Team and Board of Directors MedAdvisor Management Team and Board Over 70+ years of combined healthcare and technology experience Executive Team Rick Ratliff Jim Rotsart Annabelle Wayne Marinoff Ruba El Afifi Craig Naomi Lawrie Grant EGM Sales & Schnuriger CEO & EVP Client Chief Operating
Slide 30: Capital Raise
05 / Capital Raise
Slide 31: Entitlement Offer Summary: Offer details
MedAdvisor Capital Raise Entitlement Offer Summary: Offer details Offer Size and Structure • 1 for 4.2 pro-rata Accelerated Non-Renounceable Entitlement Offer (ANREO) to raise gross proceeds of up to approximately $14.6 million (Entitlement Offer or Offer). The institutional component, which constit
Slide 32: Use of funds
MedAdvisor Capital Raise Use of funds Rationale Min Max Uses of Funds1 A$m – 10.0 A$m - 14.6 Guild integration Guild integration 1.1 1.1 • Funding for transition and integration of GuildCare and MedAdvisor platforms Investment into MDR ANZ 3.1 3.1 Investment into MDR ANZ focused expansion focused ex
Slide 33: Equity Raising Timetable
MedAdvisor Capital Raise Equity Raising Timetable Event Date Trading halt and announcement of Entitlement Offer and Acquisition Monday, 25 July 2022 Institutional Entitlement Offer opens Monday, 25 July 2022 Institutional Entitlement Offer closes Tuesday, 26 July 2022 Announcement of results of Inst
Slide 34: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Austral
Slide 35: Key risks
06 / Key risks The following summary is not intended to be an exhaustive list of the risk factors to which MedAdvisor is exposed.
Slide 36: Key Risks: Acquisition and Offer risks
MedAdvisor Key Risks Key Risks Acquisition and Offer risks MedAdvisor and GGHL may terminate the Acquisition in limited circumstances as described on page 15 of this Presentation. If such termination rights are exercised, completion f the Acquisition will not occur and GGHL will not be entitled to b
Slide 37: Key Risks: Group risks
MedAdvisor Key Risks Key Risks Group risks MedAdvisor reported a loss (before income tax) from continuing operations of $7.6m for the half-year ended 31 December 2021. GuildLink reported an operating loss of $0.9m for the half-year ended 31 December 2021. The ability for the MedAdvisor group to be p
Slide 38: Key Risks: Group risks (continued)
MedAdvisor Key Risks Key Risks Group risks (continued) The Group and its customers are dependent on the performance, reliability and availability of its platforms, data centres and communications systems (including servers, the Disruption or internet, hosing servicers and the cloud environments in w
Slide 39: Key Risks: Group risks (continued)
MedAdvisor Key Risks Key Risks Group risks (continued) Increased competition through local or global competitors in the areas in which the Group operates could result in price reductions, under-utilisation of personnel, assets or Competition risk infrastructure, reduced operating margins and/or loss
Slide 40: Key Risks: General risks
MedAdvisor Key Risks Key Risks General risks General economic factors such as interest rates, exchange rates, inflation, business and consumer confident and general market factors may have an adverse impact on General market MedAdvisor’ performance, prospects or the value of its assets. The market p
Slide 41: Appendices
07 / Appendices
Slide 42: Underwriting Agreement
MedAdvisor Underwriting Agreement Underwriting Agreement Summary of Underwriting Agreement • MedAdvisor has entered into an underwriting agreement with Peloton Capital Pty Ltd ABN 22 149 540 018 (AFSL 406040) and MA Moelis Australia Advisory Pty Ltd ABN 72 142 008 446 (AFSL 345499) (the Underwriters
Slide 43: Underwriting Agreement (continued)
MedAdvisor Underwriting Agreement Underwriting Agreement Summary of Underwriting Agreement (continued) • ASX announces that the Company will be removed from the official list or that the shares in the Company will be removed from official quotation or suspended from quotation by ASX for two or more
Slide 44: Underwriting Agreement (continued)
MedAdvisor Underwriting Agreement Underwriting Agreement Summary of Underwriting Agreement (continued) • a circumstance arises that would require the Company to give ASX a notice under section 708AA(12) (as notionally inserted by Instrument 2016/84); • the Company varies any term of its constitution
Slide 45: Anticipated capital structure
MedAdvisor Capital structure Anticipated capital structure Company data Value Number of shares (m) 380.8 Options (m)1 22.3 Market capitalisation (undiluted) $53.3 Market capitalisation (fully diluted) $56.4 Issued to Guild Group Holdings Limited as consideration (m) 57.1 Entitlement offer shares (m)