Austco Healthcare Ltd · ASX:AHC
Austco Healthcare — Azure Healthcare — Investor Presentation (April 2016)
66 slides from Austco Healthcare's investor presentation, Apr 13, 2016
Slide 1: Investor Presentation
Level 18, 60 Albert Rd South Melbourne VIC 3205 ABN 67 108 208 760 t +61 (03) 9209 9688 For personal use only 13th April 2016 ASX & Media Release Investor Presentation Please find attached a copy of the Investor Presentation held on 13 April 2016, for release to the market. For further information:
Slide 2: April 2016
For personal use only 1 13 April 2016
Slide 3: Disclaimer
Disclaimer For personal use only This Publication does not constitute an offer, invitation or recommendation for the sale or purchase of any securities in any jurisdiction. References to, and the explanation of, legislation and regulatory issues in this Publication are indicative only and should not
Slide 4: Participants
Participants For personal use only Graeme Billings Non-Executive Chairman Brett Burns Non-Executive Director Clayton Astles Chief Executive Officer / Managing Director Jason D’Arcy Chief Financial Officer Stephen Belcher Director – Research & Development Kevin Higgins User Experience Designer 2016 S
Slide 5: GoToWebinar Housekeeping: Attendee participation
GoToWebinar Housekeeping: Attendee participation For personal use only Your Participation Open and close your control panel Join audio: • Choose Mic & Speakers to use VoIP • Choose Telephone and dial using the information provided Submit questions and comments via the Questions panel Note: Today’s p
Slide 6: Agenda
Agenda For personal use only • About Azure • Year in Review • Strategic Priorities • Business Outlook • Research & Development Overview • New Products / Products Demonstration • Q&A 2016 Shareholder Roadshow | April 2016 5
Slide 7: About Azure
About Azure For personal use only • Established in 1986 • Global manufacturer of Nurse call Systems and Clinical Workflow solutions for hospitals and aged care facilities. • Over 4,500 confirmed installations in 60 countries 2016 Shareholder Roadshow | April 2016 6
Slide 8: Azure Healthcare
Azure Healthcare For personal use only 2016 Shareholder Roadshow | April 2016 7
Slide 9: Nurse Call emerging trends
Nurse Call emerging trends For personal use only Voice Voice Switch Applications Pulse Oximeter Infusion Pump System New Nurse Call standard System Patient Ventilator Infant Active Directory Monitoring Systems Protection System Traditional Nurse Call RTLS ADT System Stat Lab Patient Flow Results Sys
Slide 10: Corporate Structure
Corporate Structure For personal use only AZURE HEALTHCARE Austco Communications Pty Ltd Sedco Communications Pty Ltd 40 O'Malley Street, (Production) 40 O'Malley Street (Production) Osborne Park Osborne Park Western Australia 6017 Western Australia 6017 Austco Marketing & Service (Asia) Austco Mark
Slide 11: Management Structure
Management Structure For personal use only CEO Clayton Astles MANUFACTURING Operations REGIONAL MANAGEMENT RESEARCH & DEVELOPMENT FINANCE (Australia) (Global) President Operations Manager General Manager - Global Director R&D CFO (USA & Latin America) (Perth) Operations Stephen Belcher Jason D’Arcy
Slide 12: The Year in Review
THE YEAR IN REVIEW For personal use only 2016 Shareholder Roadshow | April 2016 11
Slide 13: The Year in Review: New Software Platform
The Year in Review For personal use only Launched New Software Platform Enterprise Information Dashboard with Reporting Sophisticated Integrations Mobile Applications Workflow Optimization Intuitive User Interface 2016 Shareholder Roadshow | April 2016 12
Slide 14: The Year in Review: Attended HIMSS 2016
The Year in Review Attended HIMSS 2016 For personal use only • HIMSS16 was attended by more than 40,000 health IT professionals, executives, and clinicians • More than 1,200 health IT vendors and organizations exhibited at HIMSS16 • Encompasses 2.25 million square feet— that’s 40 football fields! 20
Slide 15: The Year in Review: Upcoming Pilot Sites
The Year in Review For personal use only Upcoming Pilot Sites Reports and Dashboards Health South Monte Fiore (USA) Sick Kids (AUS) (CAN) 2016 Shareholder Roadshow | April 2016 14
Slide 16: The Year in Review: Large Project Deployments
The Year in Review Large Project Deployments For personal use only 700 Beds 370 Beds Ng Teng Fong General Sick Kids (SK) Hospital (NTFGH) 300 Beds 400 Beds Perth Children’s Hospital (PCH) New Oakville Hospital (NOH) 2016 Shareholder Roadshow | April 2016 15
Slide 17: The Year in Review: Half-Year Results
The Year in Review Half-Year Results For personal use only GROSS OPERATING REVENUE PROFIT PROFIT $17.68M -$0.497M 49.4% 60 Countries 6 Global Offices 4,500 Systems 60 Countries 7 Global Offices 5,000 Systems 2016 Shareholder Roadshow | April 2016 16
Slide 18: Strategic Priorities
STRATEGIC PRIORITIES For personal use only 2016 Shareholder Roadshow | April 2016 17
Slide 19: Our Strategic Priorities: Organizational Restructuring
Our Strategic Priorities Organizational Restructuring For personal use only Streamline reporting structure Focus on Quality Reduce Regulatory manufacturing costs Compliance Improve Adapt to Evolving efficiencies Industry Restructuring will be completed by December 2016 2016 Shareholder Roadshow | Ap
Slide 20: Relocate Manufacturing to USA
Our Strategic Priorities For personal use only Relocate Manufacturing to USA Average wage 21% Lower Factory Overheads 45% Lower Break-Even Point 3.5 Times Lower Perth Factory closure will result in savings of AUD $1M to $1.4M annually 2016 Shareholder Roadshow | April 2016 19
Slide 21: Rationalize Product Lines
Our Strategic Priorities For personal use only Rationalize Product Lines • Austco has more that 900 products in its portfolio • Typically with companies that have many products, 80% of sales come from only 20% of those products • Over 29 years, Austco has continued to add products to its portfolio w
Slide 22: Reduce Headcount
Our Strategic Priorities For personal use only Reduce Headcount 173 135 July 2015 March 2016 22% Reduction Headcount reductions have already reduced expenses by over AUD $2M annually 2016 Shareholder Roadshow | April 2016 1
Slide 23: Introduce Subscription Pricing Model
Our Strategic Priorities For personal use only Introduce Subscription Pricing Model Benefits for Azure: • Predictable and continuous revenue • While subscribed, Azure has regular contact with the customer, rather than sporadic contact. • More competitive on bids (cost of software is spread out over
Slide 24: Introduce Subscription Pricing
Our Strategic Priorities For personal use only Introduce Subscription Pricing Perpetual Cumulative Revenue Subscription Revenue A Software as a Product (SaaP) company’s revenue is a function of the number of new customers while the Software as a Service (SaaS) company’s revenue is a function of the
Slide 25: Business Outlook
BUSINESS OUTLOOK For personal use only 2016 Shareholder Roadshow | April 2016 24
Slide 26: Nurse Call Market Size
Business Outlook Nurse Call Market Size For personal use only GLOBAL NURSE CALL SYSTEMS MARKET, 2012 - 2020, REVENUE (USD Mil) 2016 Shareholder Roadshow | April 2016 25
Slide 27: Importance of North America
Business Outlook Importance of North America For personal use only GLOBAL NURSE CALL SYSTEMS MARKET, BY GEOGRAPHY, 2013 (US$ M) Rest of the World $72M North America Asia Pacific $229M $140M Europe $156M Source: TMR Analysis, December 2014 2016 Shareholder Roadshow | April 2016 26
Slide 28: Investment Case
Business Outlook Investment Case For personal use only Ageing baby Complementary • Project Revenue boomer revenue streams • Transaction Based generation • Recurring Revenue Well positioned to Well diversified take advantage of across future opportunities geographies Growing sales pipeline for High b
Slide 29: Questions?
QUESTIONS? For personal use only 2016 Shareholder Roadshow | April 2016 28
Slide 30: Presenter: Stephen Belcher April 2016
For personal use only Presenter: Stephen Belcher 13 April 2016 2 9
Slide 31: Agenda: 3Rs
AGENDA: 3Rs For personal use only • Restructuring • Realignment • Roadmap 3
Slide 32: R&D Restructuring
For personal use only R&D Restructuring 3
Slide 33: Project Management Organization
Project Management Organization For personal use only Risk Quality Scope PMO Cost Satisfaction Time 3
Slide 34: Stage-Gate Development Process
Stage-Gate Development Process For personal use only • Blueprint for managing product development • Ensures regulatory compliance • Each Gate exit requires a decision to continue Concept Feasibility Development Qualification Launch 3
Slide 35: Project Realignment
Project Realignment For personal use only FY15 FY16 35 25 65 75 Hardware Software 3
Slide 36: Research and Development Roadmap
Research and Development Roadmap For personal use only 2016 Shareholder Roadshow | April 2016 73
Slide 37: R&D Product Development Focus
R&D Product Development Focus For personal use only • KEY value add for customers • Strategic partnerships • Flexible licensing models 3
Slide 38: For personal use only
For personal use only Enhanced patient satisfaction Human resources efficiency & staff motivation Better staff monitoring & management Facilitate information sharing 3
Slide 39: Real Time Locating Systems
Real Time Locating Systems For personal use only Asset Management Manage Patient Flow Measure Staff Productivity Increased Profitability 3
Slide 40: Virtualization
Virtualization For personal use only – Transforms hardware into software – Benefits • Consolidation • Hardware Independence • Reliability 3
Slide 41: Mobility
Mobility For personal use only • Enhances user experience • Improves operational efficiency • Ultimately improves quality of care 4
Slide 42: Presenter: Kevin Higgins April 2016
For personal use only Presenter: Kevin Higgins 13 April 2016
Slide 43: Product Demos and future product opportunities
For personal use only PRODUCT DEMOS and future product opportunities Kevin Higgins User Experience Designer 2
Slide 44: RTLS Systems
3 For personal use only RTLS Systems
Slide 45: RTLS for Nurse Call
RTLS FOR NURSE CALL For personal use only “Presence” over door light Acknowledge alarms at nurse station Track time spent in room, response time Accurate for multi-bed rooms Position relative to other tags 4
Slide 46: Reports & Dashboards
For personal use only REPORTS & DASHBOARDS Analytics and reporting is a crowded market Few home-grown solutions Austco’s platform could be a market leader 5 Products displayed are for demonstration purposes only.
Slide 47: New Widgets
New Widgets For personal use only 6 Products displayed are for demonstration purposes only.
Slide 48: Unit Snapshot
For personal use only UNIT SNAPSHOT Top 4 units by alarm activity Full screen shows all units Table or chart view in full screen 7 Products displayed are for demonstration purposes only.
Slide 49: Rounding Alarm Forensics
For personal use only ROUNDING ALARM FORENSICS Staff vs. unit average Displays all alarms from filtered dates and locations Requires RTLS Export list as a report, or click for details 8 Products displayed are for demonstration purposes only.
Slide 50: Alarm Details
For personal use only ALARM DETAILS Data Event timeline VOIP recordings Print and export 9 Products displayed are for demonstration purposes only.
Slide 51: Widget Store
For personal use only WIDGET STORE Browse all widgets Trial period Seamless purchasing A-la-carte licensing 10 Products displayed are for demonstration purposes only.
Slide 52: Nurse Call GUI
For personal use only NURSE CALL GUI Designed for touch screen Allows nurses to focus on care, not technology Designed by nurses 11 Products displayed are for demonstration purposes only.
Slide 53: Interface video
For personal use only Interface video http://austco.com/media/roadshow2016-tacerawalkthrough.mp4 12
Slide 54: Whiteboards
For personal use only WHITEBOARDS For nurse’s station, patient rooms Uses icons and pics Easy to configure Customized workflow 13 Products displayed are for demonstration purposes only.
Slide 55: Mobile Apps
For personal use only MOBILE APPS BYOD Lets nurses use technology they already know Nurses not tied to a station 14 Products displayed are for demonstration purposes only.
Slide 56: Homepage
HOMEPAGE For personal use only Alarm management Same interactions as nurse station “Acknowledge” from any device 15 Products displayed are for demonstration purposes only.
Slide 57: Future Integrations
For personal use only FUTURE INTEGRATIONS Assignments Schedule 16 Products displayed are for demonstration purposes only.
Slide 58: Future Integrations
For personal use only FUTURE INTEGRATIONS Reminders Metrics 17 Products displayed are for demonstration purposes only.
Slide 59: For personal use only
For personal use only Toggle for on/off duty, breaks Alarms re-routed or escalated Can use built-in smartphone features 18 Products displayed are for demonstration purposes only.
Slide 60: Smart Watch Apps
For personal use only SMART WATCH APPS Hands-free care Watches are ideal notification devices 19 Products displayed are for demonstration purposes only.
Slide 61: Focused on Alarm Management
For personal use only FOCUSED ON ALARM MANAGEMENT Acknowledge alarm Forward/Decline alarm Escalate alarm Reminders 20 Products displayed are for demonstration purposes only.
Slide 62: For personal use only
For personal use only 21 Products displayed are for demonstration purposes only.
Slide 63: End-to-End Alarm Management
END-TO-END ALARM MANAGEMENT For personal use only 22 Products displayed are for demonstration purposes only.
Slide 64: All Austco Products
ALL AUSTCO PRODUCTS For personal use only Consistent interactions Consistent visual language Entire ecosystem 23 Products displayed are for demonstration purposes only.
Slide 65: Austco R&D Team
For personal use only AUSTCO R&D TEAM Set up for software development Great products in development Many opportunities for growth 24
Slide 66: Questions?
25 For personal use only QUESTIONS?
Azure Healthcare — Investor Presentation (April 2016) on 6ix