Slide 1: ASX cover letter: FY2022 Results Presentation (amended)
Pro Medicus Limited 450 Swan Street Richmond Victoria 3121 Australia T +61 3 9429 8800 F +61 3 9429 9455 promedicus.com 18 August 2022 For personal use only Company Announcements Office Australian Securities Exchange FY2022 Results Presentation Please find attached an amended release of the FY2022 r
Slide 2: FY 2022 Results Presentation
For personal use only FY 2022 RESULTS PRESENTATION August 2022
Slide 3: Pro Medicus (ASX:PME)
PRO MEDICUS (ASX:PME) Healthcare IT company specializing in Enterprise Imaging and For personal use only Radiology Information System (RIS) software. Leading edge products, growing global presence. EU HQ/R&D Berlin GmbH U.S. HQ San Diego CA GROUP HQ Melbourne AUS OVER 40+ SOFTWARE ENGINEERS 2
Slide 4: Product Suite
ASX:PME For personal use only VISAGE RIS VISAGE 7 OEM PRODUCT SUITE 3
Slide 5: Results FY 2022
RESULTS FY 2022 For personal use only $93.5M $44.4M $62.4M 67.5% Underlying Profit Underlying EBIT Revenue after tax Profit margins up 37.7% up 44.1% Before Tax up 46.8% $90.6M $0.22 Cash Company Strong Full year & Investments debt balance dividend FF up 46.5% free sheet Up 47%
Slide 6: Highlights FY22
Highlights FY22 For personal use only German Government $40M/7 years $1.3M $32M/8 years $28M/7 years 5 and 7 years Continues to grow New Contract Contract Extension New Contract New Contract Contract Renewal STRONGLY OCTOBER DECEMBER APRIL JUNE JUNE CURRENT 2021 2021 2022 2022 2022 PIPELINE 5
Slide 7: FY 2022 Revenue Split
FY 2022 REVENUE SPLIT For personal use only Full year revenue split $100,000,000 Exam/licence revenue*** Support/baseline revenue*** Capital revenue (net of hardware) Professional Services*** Archive data migration $1,044,000 ***Recurring revenue $90,000,000 $6,540,000 $80,000,000 $18,355,000 $70,00
Slide 8: In Review: 2022 Top Hospitals
In Review 2022 Top Hospitals For personal use only 7
Slide 9: Operational (Transaction) Model
OPERATONAL (TRANSACTION) MODEL For personal use only • Used in vast majority of US contracts • Delivered as SaaS model • Now used in RIS contracts in AUS • Model based on transaction minimums • Forward revenue ~ A$420M/5 years* • Upside as client examination volumes grow • Annuity style revenue stre
Slide 10: Exam (Transaction) Revenue
EXAM (TRANSACTION) REVENUE For personal use only • Recurring in nature • Increased by 65% YoY (61% on constant currency basis) • Growth to continue for FY 2023 (Intermountain, UC’s & others). • New Sites coming online in 1st Half FY23 (Novant, Inova, Allina & others) • Growth from existing clients (
Slide 11: Professional Services
PROFESSIONAL SERVICES For personal use only • Project planning, training & implementation • Revenue spread over the length of the contract - new accounting standards (AASB 15) • Recurring in nature ~ 10% contract value • Data Migration as part of Visage Archive sale – once off 10
Slide 12: Operating Leverage
OPERATING LEVERAGE For personal use only • Highly scalable offering • No capex (HW) – SW only model • Training & Installation – charged as professional services • Contained cost base • High operating leverage • Margin continues to grow as footprint increases 11
Slide 13: Margin Expansion
MARGIN EXPANSION For personal use only 80.00% EBIT Margins 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% FY2018 FY2019 FY2020 FY2021 FY2022 12
Slide 14: COVID-19 Update
COVID-19 Update For personal use only • PME/Visage mix of in-office and WFH • Operating at 100% capacity • Sales and marketing efforts continue unabated • “Thinness” of the technology enabled large scale remote demonstrations • Increased number of new opportunities despite COVID restrictions • Visag
Slide 15: Visage RIS
For personal use only VISAGE RIS
Slide 16: Visage RIS
VISAGE RIS For personal use only • Long term (5 year) contracts with Primary Healthcare and I–MED, the 2 biggest radiology providers in AUS • HIS (Healius) rollout now complete • Upside via organic and M&A growth (I-MED) • Increased market interest – new opportunities • PME undisputed market leader
Slide 17: Visage 7.0
Visage 7.0 For personal use only Continues to be #1 in Speed, Functionality and Scalability. SPEED FUNCTIONALITY SCALABILITY
Slide 18: Massive Data Explosion
MASSIVE DATA EXPLOSION For personal use only • 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
Slide 19: Legacy Technology
LEGACY TECHNOLOGY For personal use only “Compress and Send” MODALITIES PACS RADIOLOGIST/CLINICIAN
Slide 20: Solution: Visage Streaming Technology
SOLUTION: For personal use only VISAGE 7 Streaming Technology BACKEND RENDER SERVER SERVER RADIOLOGIST/CLINICIAN MODALITIES
Slide 21: Novant Health
NOVANT HEALTH For personal use only • $40M – 7-year contract • Equal biggest deal to date • Cloud based implementation • Visage to replace multiple legacy PACS systems • Visage to deploy Visage 7 Workflow and Visage 7 Viewer • Extends PME’s rapidly growing footprint in IDN Market • Transaction-based
Slide 22: German Government Contract
GERMAN GOVERNMENT CONTRACT For personal use only • 4th extension of original contract signed in 2015 • $1.3M one-off capital license (net of hardware) • Annual support contract to be in addition • Increases PME footprint in Europe 21
Slide 23: Inova Health
INOVA HEALTH For personal use only • $32M – 8 -year contract • Cloud based implementation • Includes INOVA’s hospitals and Fairfax Radiology practices • Visage to replace 2 key competitor systems • Extends PME’s rapidly growing footprint in IDN Market • Transaction-based model with potential upside
Slide 24: Allina Health
ALLINA HEALTH For personal use only • $28M – 7 -year contract • Cloud based implementation • Includes Visage 7 Workflow • Visage to replace legacy PACS systems • Extends PME’s rapidly growing footprint in IDN Market • Transaction-based model with potential upside 23
Slide 25: Wellspan / Sutter Health Renewals
WELLSPAN / SUTTER HEALTH RENEWALS For personal use only • Combined minimum contract value of $47M • Sutter Health 7-year renewal • Wellspan Health 5-year renewal • Increased per-transaction fee • Shows high level of confidence in Visage technology 24
Slide 26: Fast Track Implementation
FAST TRACK IMPLEMENTATION For personal use only • All implementations 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
Slide 27: Key Implementations FY22
KEY IMPLEMENTATIONS FY22 For personal use only June/July 2021 October 2021 December 2021 January 2022 February 2022 March 2022 Hybrid Remote & Hybrid Remote & Onsite Onsite Hybrid Remote & Onsite Onsite Onsite Onsite 26
Slide 28: Visage – Proven ROI
VISAGE – PROVEN ROI For personal use only Significant IT & Unparalleled Increase in Greater Clinical Infrastructure Savings Radiologist Efficiency Accuracy Improved Physician Delivers Superior Engagement Value Proposition 27
Slide 29: Visage – Clinical ROI
VISAGE – Clinical ROI For personal use only Improved Physician Engaement 28
Slide 30: Growth Strategy
GROWTH STRATEGY For personal use only New product offerings Transaction growth Extend to new from existing clients geographical markets Leverage R&D capability Expand footprint – to introduce next new clients generation products 29
Slide 31: North American Pipeline
NORTH AMERICAN PIPELINE For personal use only Prospects Progressing through Network Effect various stages of the cycle Opportunities Increased as a result of recent high- profile wins Last 12 months - Pipeline Robust significant increase in number of inbound RFPs In terms of quality and quantity of
Slide 32: Visage Open Archive
VISAGE 7 OPEN ARCHIVE For personal use only • Same highly scalable Visage 7 platform • Interoperable – works in complex environments • Enables choice of modular or single vendor solutions • Three recent sales - Viewer and Visage Open Archive • Pipeline includes Visage Open archive opportunities • Ke
Slide 33: Visage Workflow
Visage 7 Workflow For personal use only • Adds to V7 Viewer and Archive modules • Based on over 30 years experience in Workflow SW • Allows PME to offer single vendor solution • Integral part of Visage in the Cloud SaaS solution • Ability to interface with broad range of AI algorithms • Transaction
Slide 34: New Products
NEW PRODUCTS For personal use only • Single viewer for ALL images in the medical record (EMR) • Radiology/Cardiology (DICOM format) • Non-radiology– reflected light – hi-res photos & videos • Visage 7 technology ideally suited • Increases Visage value proposition • Growth opportunities within existi
Slide 35: RSNA 2021
For personal use only RSNA 2021 34
Slide 36: Visage CloudPACS
Visage CloudPACS For personal use only • Visage 7 – fully Cloud native • Same ultrafast performance as on-premise • Full Visage 7 functionality • Security and scale of the cloud • Complete PACS deployment or as backup/disaster recovery • Suitable for all size implementations • Significant strategic
Slide 37: Visage AI Ecosystem
Visage 7 For personal use only • Unique end to end solution • Supports both research and production environments on a single platform • Based on market leading Visage 7 technology • AI Ecosystem - 3rd party and Visage developed algorithms • Enables Visage clients to fast-track AI as part of their im
Slide 38: AI Research Leadership
AI Research Leadership For personal use only Malte Westerhoff, PhD Global Chief Technology Officer Detlev Stalling, PhD Head of Development Ming De Lin, PhD Clinical Research Manager North America Raj Moily, MBBS, PhD Director, AI Business Development North America 37
Slide 39: Research Collaboration Agreements
(RCA) Research Collaboration Agreements For personal use only 38
Slide 40: Breast Density - AI
Breast Density - AI For personal use only • 1st diagnostic AI algorithm produced by Visage • Developed in collaboration with breast imaging team at Yale • Provides “on the fly” AI assessment of breast density • Previewed at RSNA 2019 as WIP • FDA approval – February 2021 • A model for future AI deve
Slide 41: RSNA 2021
For personal use only RSNA 2021 40
Slide 42: First in-person RSNA conference since 2019
For personal use only • 1st in person RSNA conference since 2019 • Large Visage presence comprising US and European teams • Visage demonstrations fully booked despite attendance down >50% • Higher than usual percentage of new opportunities • Opportunities across broad range of market segments 41
Slide 43: Conferences FY22
For personal use only Conferences FY22 42
Slide 44: Summary
SUMMARY For personal use only • Most successful year in company’s history • Transaction revenue increased by 65% • Contract wins and renewals • Strong base for growth in FY23 • Expanded product portfolio – single vendor or modular • CloudPACS – huge strategic advantage over competitors • Unparallele
Slide 45: Thank You
For personal use only THANK YOU