Pro Medicus, Ltd. · ASX:PME
Pro Medicus — Shareholder Meeting (November 2022)
64 slides from Pro Medicus's shareholder meeting presentation, Nov 21, 2022
Slide 1: Chairman's Address AGM 2022
Chairman’s Address AGM 2022 ® VISAGE IMAGING’
Slide 2: Chairman's Report
Pro Medicus Ltd AGM 21 November 2022 CHAIRMAN’S REPORT Overview The company has enjoyed another very successful year both from an operational and financial point of view. Each of our businesses in our principal markets (Australia, Europe and North America) contributed strongly to the outcomes. The s
Slide 3: Financial Results
Each of these contracts will make a major contribution to our future revenues. Despite the number of recently announced new contracts, new opportunities continue to present themselves and as a result our pipeline remains strong. In Australia our RIS product continues to be the undisputed market lead
Slide 4: Review of Global Management Structure
Review of global management structure At last year’s AGM I indicated that we were reviewing our current global management structure and had received external advice to assist the Board in that process. We are currently implementing the initial stages of our plan and have added a number of additional
Slide 5: CEO Address AGM 2022
CEO Address AGM 2022 ® 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. HQ San Diego CA GROUP HQ Melbourne AUS OVER 40+ SOFTWARE ENGINEERS 3
Slide 7: Visage RIS and Visage OEM Product Suite
ASX:PME VISAGE RIS VISAGE 7 OEM PRODUCT SUITE 4
Slide 8: FY22 Results
FY 22 – Results • Record year financially • Four major sales - 3 in North America, 1 in Europe • Two key contract renewals – Sutter and Wellspan • Completed several large-scale cloud implementations • Good progress with research collaboration agreements with NYU Langone, Mayo Clinic and others 5
Slide 9: Results FY 2022
RESULTS FY 2022 $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 10: FY 2022 Revenue Split
FY 2022 REVENUE SPLIT 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 $70,000,000 $3,413,000 $60,0
Slide 11: FY2022 Highlights Financial Results
FY2022 HIGHLIGHTS – FINANCIAL RESULTS Revenue by Geographic Segment Operating Cash ($m) $100.00 $100,000,000 North Ameri ca Australia Europe (net of hardware) Operating Cash Fixed Income Securities $90.00 $90,000,000 $80.00 $80,000,000 $70.00 $70,000,000 $60.00 $60,000,000 $50.00 $50,000,000 $40.00
Slide 12: Operational (Transaction) Model
OPERATONAL (TRANSACTION) MODEL • 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$450M/5 years* • Upside as client examination volumes grow • Annuity style revenue stream – greater predictab
Slide 13: Operating Leverage
OPERATING LEVERAGE • Highly scalable offering • No capex (HW) – SW only model • Training & Installation – charged as professional services • Contained cost base • Margin continues to grow as footprint increases 10
Slide 14: Margin Expansion
MARGIN EXPANSION 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 11
Slide 15: Highlights FY22
Highlights FY22 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 12
Slide 16: In Review
In Review 2022 Top Hospitals 13
Slide 17: Increasing Our Footprint in the IDN Space
Increasing our footprint in the IDN space • Existing IDN clients – Mercy, Sutter Health, Intermountain Allegheny, Medstar etc • 3 large IDN sales in the last year, Novant, Inova & Allina • All 3 sales for more than one Visage product • All 3 opportunities Cloud deployed • Increasing network effect i
Slide 18: FY23 Year to Date
FY23 -Year to Date • Tracking ahead of budget • Transaction volumes above pre COVID levels • Addressing mid market - Bay, CHOP and Montage. • 15.5M 7- year U Florida renewal • 3 major implementations in 1st half FY23 – Inova and Allina (completed) with Novant scheduled for December. • Several smalle
Slide 19: FY23 Year to Date
FY23 -Year to Date • Two strategic hires –People and Culture director and Chief Strategy Officer - July 2022 • In person company wide Management and Strategy meeting in Melbourne – October 2022 • Sets base for future growth 16
Slide 20: Visage RIS
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Slide 21: Visage RIS
VISAGE RIS • 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 22: Visage 7.0
Visage 7.0 Continues to be #1 in Speed, Functionality and Scalability. SPEED FUNCTIONALITY SCALABILITY
Slide 23: Legacy Technology
LEGACY TECHNOLOGY “Compress and Send” MODALITIES PACS RADIOLOGIST/CLINICIAN
Slide 24: Solution: Visage Streaming Technology
SOLUTION: VISAGE 7 Streaming Technology BACKEND RENDER SERVER SERVER RADIOLOGIST/CLINICIAN MODALITIES
Slide 25: Solution: Visage Streaming Technology
SOLUTION: Visage 7 Streaming Technology
Slide 26: Novant Health
NOVANT HEALTH • $40M – 7-year deal • Visage to replace multiple legacy PACS systems • Visage to deploy Visage 7 Workflow and Visage 7 Viewer • Extends PME’s rapidly growing footprint in NA IDN Market • Transaction-based model with potential upside 23
Slide 27: Inova Health
INOVA HEALTH • $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 24
Slide 28: Allina Health
ALLINA HEALTH • $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 25
Slide 29: Wellspan / Sutter Health Renewals
WELLSPAN / SUTTER HEALTH RENEWALS • 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 26
Slide 30: Contracts – Different Market Segments
3 Contracts – 3 different market segments • Montage Health – regional IDN • Bay Imaging consultants – private radiology group • CHOP – Tier 1 academic children's hospital • Visage 7 suitable to different market segments – increases PME’s total addressable market (TAM). • Combined minimum contract va
Slide 31: University of Florida Renewal
UNIVERSITY OF FLORIDA RENEWAL Gainesville / Jacksonville • 7 Year - $15.5M contract renewal • Both sites now on transaction-based model • Increase in per transaction fee • Demonstrates confidence in Visage as a technology leader 28
Slide 32: Fast Track Implementation
FAST TRACK IMPLEMENTATION • 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 change • New highly o
Slide 33: Key Implementations
KEY IMPLEMENTATIONS FY22 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 30
Slide 34: Visage – Proven ROI
VISAGE – PROVEN ROI Significant IT & Unparalleled Increase in Greater Clinical Infrastructure Savings Radiologist Efficiency Accuracy Improved Physician Delivers Superior Engagement Value Proposition 31
Slide 35: Clinical Outcomes: Moving the Needle
Clinical Outcomes Moving the Needle 33
Slide 36: VST – Visage Brain Perfusion
VST - Visage Brain Perfusion Performed by software gifted to VST
Slide 37: Background of Victorian Stroke Telehealth
Background of Victorian Stroke Telehealth (VST) • Operational since 2013; Ambulance Victoria 2018 • Hospitals: 17 Victoria + 2 Tasmania • 24/7 access to stroke specialists via • Treatment advice for suspected acute strokes • >4000 patients treated each year – all with advanced CT brain imaging (CT/A
Slide 38: Glioma Segmentation
Glioma Segmentation Mariam Aboian, MD, PhD Assistant Professor Radiology & Biomedical “PACS is our clinical world for Radiologists. Engineering Yale School of Medicine “This is what AI based segmentation of gliomas Incorporation of AI into PACS, gives us clinical in PACS looks like! Advanced image p
Slide 39: Glioma Segmentation
Glioma Segmentation Mariam Aboian, MD, PhD Assistant Professor Radiology & Biomedical Engineering Yale School of Medicine • Multiple abstracts and papers published • Neuro-Oncology paper showing workflow efficiency gains using the lesion tracking tool • What used to take 3 to 4 hours now takes a few
Slide 40: Burnout – the new epidemic?
Burnout – the new epidemic ? 38
Slide 41: Burnout – the new epidemic?
Burnout – the new epidemic ? 39
Slide 42: Pro Medicus Visage Imaging
prosmedicus ‘VISAGE TMAGING"
Slide 43: Patient Engagement – Video Reports
Patient Engagement - Video Reports “Your Radiologist Is the Most Important Doctor You’ve Never Met—Until Now” NYU Langone debuts the First Video Radiology Reports in a U.S. Hospital to Help Patients Understand the Results of Their Imaging Exams For the study, 105 clinical radiologists at NYU Langone
Slide 44: Patient Engagement – Video Reports
Patient Engagement - Video Reports
Slide 45: Growth Strategy
GROWTH STRATEGY 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 43
Slide 46: North American Pipeline
NORTH AMERICAN PIPELINE Prospects Progressing through Network Effect various stages of the cycle Opportunities Further increased as a result of recent high- profile wins New inbound RFPs Pipeline Robust even during COVID In terms of quality and quantity of opportunities across multiple market segmen
Slide 47: Visage Open Archive
VISAGE 7 OPEN ARCHIVE • Same highly scalable Visage 7 platform • Interoperable – works in complex environments • Enables choice of modular or single vendor solutions • Several recent sales - Viewer and Visage 7 Open Archive • Pipeline includes Visage 7 Open Archive opportunities • Key component of V
Slide 48: Visage Workflow
VISAGE 7 WORKFLOW • Adds to Visage 7 Viewer and Open 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 • Sold in majority of rec
Slide 49: Visage 7 Workflow
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Slide 50: New Products
NEW PRODUCTS • 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 existing contracts
Slide 51: One Viewer – Cardiology
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Slide 52: Visage CloudPACS
Visage CloudPACS • Visage 7 – fully Cloud native • As fast if not faster than on-premise • Full Visage 7 functionality • Security and scale of the cloud • Complete PACS deployment in the Cloud • Suitable for all size implementations 50
Slide 53: Visage CloudPACS
Visage CloudPACS • Unprecedented momentum swing to Cloud • Last eight major sales have been CloudPACS • Majority of pipeline mandating Cloud deployment. • Cloud vendor agnostic - large scale implementations in all 3 cloud vendors - AWS, Azure and Google GCP • Significant strategic advantage over com
Slide 54: AI in Radiology – Use Cases
AI in Radiology – Use Cases • Imbedded in SW or imaging equipment • Prioritisation of cases – head CT • Screening – early-stage lung nodule detection • Aid to diagnosis – 2nd opinion, incidental findings • Automated diagnosis 52
Slide 55: Visage AI Accelerator
Visage AI Accelerator • Unique end to end solution • Research and production environments on a single platform • Based on market leading Visage 7 technology • Enables Visage clients to fast-track AI as part of their imaging strategy 53
Slide 56: Visage 7 AI
Visage 7 • Streamlines AI algorithm development • Optimised for AI data curation and validation • Open API enables native integration • AI Ecosystem - 3rd party and Visage developed algorithms • Joint development/commercialisation opportunities - academic clients. 54
Slide 57: AI Research Leadership
AI Research Leadership 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 , MBA Director, AI Business Development North America 55
Slide 58: Breast Density – AI
Breast Density - AI • 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 • FDA approval – February 2021 • Deployed to 2nd site in pre commercialisation phase 56
Slide 59: Research Collaboration Agreements (RCA)
Research Collaboration Agreements (RCA) 57
Slide 60: NYU Langone – RCA Update
NYU LANGONE – RCA Update • Multi Year research collaboration agreement • NYC R&D Hub commenced August 2021 • Joint R&D developing next generation imaging products • Visage has onsite access to NYU Langone radiologists and imaging scientists. • Leverage R&D and commercialization opportunities • Showi
Slide 61: RSNA 2022
RSNA 2022 • In person – largest Visage presence to date • Showcasing new technology – AI and Workflow • Excellent number of advance bookings
Slide 62: RSNA 2022 – Owning the Conversation
RSNA 2022 – Owning the Conversation
Slide 63: Summary
SUMMARY • Most successful period in company’s history • North American footprint continues to grow strongly • Expanded product portfolio – single vendor or modular • Proven remote implementation & support capability • Cloud – huge strategic advantage over competitors • Unparalleled value proposition
Slide 64: Thank You
A’\A Gy 4 VV . Wy THANK YOU pro+medicus