Pro Medicus, Ltd. · ASX:PME
Pro Medicus — Shareholder Meeting (November 2008)
34 slides from Pro Medicus's shareholder meeting presentation, Nov 14, 2008
Slide 1: We offer a Partnership into the Future
For personal use only We offer a Partnership into the Future Annual General Meeting November 14th 2008 Radiology Information Solutions
Slide 2: Chairman: Mel Ward
For personal use only PROMEDICUS • Mel Ward - Chairman
Slide 3: Board Members
Board Members For personal use only Mel Ward – Chairman David Chambers – CEO & Managing Director Sam Hupert – Deputy Chairman & Executive Director Anthony Hall – Executive Director Peter Jonson – Non-Executive Director Peter Kempen – Non-Executive Director
Slide 4: Officers
Officers For personal use only Sandy McKendrick – Company Secretary Danny Tauber – Chief Operating Officer Clayton Hatch – Finance Manager Stuart Painter – Ernst and Young Auditor
Slide 5: Pro Medicus – In Perspective
Pro Medicus – In Perspective For personal use only 4 • 2007/08 another successful year • 8th year of sustained growth • Continued operation in Australia, and North America and the U.K.
Slide 6: Pro Medicus – 2007/08 Highlights
Pro Medicus – 2007/08 Highlights For personal use only • Record revenue of $15.34 million – up 17.8% • Net profit of $7.9 million – up 12.5% • Most profitable year in company’s history • 3.25c per share final dividend • Total dividend for year of 6.0 cents fully franked • Cash reserves increase 16%
Slide 7: 2007/08 - The Year in Review
2007/08 - The Year in Review For personal use only • Australia Digital Imaging sales reach ‘tipping point’ • Continued growth of e:health platform which at 10% growth reaches 3.52 M transactions • Well positioned in both local and overseas markets • New Agreement with Agfa-Gevaert in North America •
Slide 8: Pro Medicus – Looking Forward
Pro Medicus – Looking Forward For personal use only 7 • World-wide – all countries and companies face more volatile and uncertain conditions • Share market and exchange rate will present challenges • Maturing market and volatility in Australia validates decision to go off- shore • Our strategy still
Slide 9: Pro Medicus - Strategy
Pro Medicus - Strategy For personal use only • Best of breed systems +++ • Best support services +++ • Best value for money +++ • Australian Organic growth --Retain and leverage contracts ++ --New contracts + • New Growth --Develop offshore markets ++ --Alliances (old and new) ++ --Mergers and Acqui
Slide 10: Pro Medicus - Share Market
Pro Medicus - Share Market For personal use only • Financial crises heralds fears of recession and represents some unforeseen challenges • Debt free balance sheet with strong cash reserves provides capacity to weather storm • Healthcare still considered largely recession proof • Strong Australian co
Slide 11: Pro Medicus Dividend
Pro Medicus Dividend For personal use only 10 • Final dividend 3.25 c Interim dividend 2.75 c • No special dividend paid • Foreshadowed last year the benefit of finding a good M&A candidate particularly in North America • This opportunity represents the best use of your reserves
Slide 12: M&A - Activities
M&A - Activities For personal use only • Have identified and studied a number of acquisition opportunities in North America and entered into discussions • Ailing economies and downward movement in exchange rates renders conditions adverse to go- forward • Deferred action until conditions improve • C
Slide 13: Pro Medicus – Looking Ahead
Pro Medicus – Looking Ahead For personal use only • Competition will be tough, and economic seas may be rough with deferred capital spending • Well placed to weather a difficult economic climate • Strong Balance Sheet • Cash reserves at $12.89 M • Long-term client relationships • Balanced growth str
Slide 14: Pro Medicus – In Summary
Pro Medicus – In Summary For personal use only • Board and Management (re-shaped) • Thanks to Directors • Congratulations to Management and Staff • Creativity, enthusiasm, hard work
Slide 15: CEO: David Chambers
For personal use only PROMEDICUS • David Chambers – CEO
Slide 16: A solid foundation underpins our company's well defined growth path
A solid foundation underpins our company’s well defined growth path For personal use only • Our business has a solid basis in Australia • International footprint well established in U.S.A., Canada and U.K. • 25 years Industry knowledge and experience of Radiology Information Systems • Proven in some
Slide 17: 2007/08 Business Highlights
2007/08 Business Highlights For personal use only • Record revenue of $15.34 million – up 17.8% • Net profit of $7.9 million – up 12.5% • Ongoing successful RIS placements in U.S., Canada and the U.K. • New Agreement with Agfa-Gevaert Limited in U.S.A. • Forging new strategic alliances
Slide 18: 2007/08 Australian Highlights
2007/08 Australian Highlights For personal use only • Revenue increased by 33.1% from $9.4M to $12.5M • ‘Tipping point’ reached with 125 practices adopting PME digital technology up from 40 last year • New projects with other PACS vendors yields results • Success in Hospital market e.g. St.Vincents
Slide 19: 2007/08 North America Highlights
2007/08 North America Highlights For personal use only • North American revenues impacted by: • Currency impact • Agfa ‘tail off’ effect • New agreement signed with Agfa Gevaert • Establishment of PME presence in North America • First ‘direct’ project successfully completed • Agfa continue to quote
Slide 20: New North American Business Model
New North American Business Model For personal use only • Allows PME to focus on out-patient imaging centre market • Satisfies clients requests for more direct contact with PME • Opens door for other products like e:health • Leverages PME’s rapid implementation model • Addresses other markets segmen
Slide 21: What are the benefits?
What are the benefits? For personal use only • Continue to work with Agfa and be their preferred RIS for Imaging Centers • Bring PME knowledge and track record into a direct client relationship placing us in drivers seat • Company will now get full mark-ups, but costs of establishment • Retain acces
Slide 22: USA & Canada Resources & Client Sites
USA & Canada Resources & Client Sites For personal use only PME resources US Sites Canada Sites
Slide 23: How to Build Business - U.S.A.
How to Build Business* - U.S.A. For personal use only More than half (53 percent) of survey respondents see adding or providing remote access to clinical images and information as the No. 1 reason to gain physician mindshare and referrals. That goes hand in hand with just about half (49 percent) who
Slide 24: Imaging Center market - highest growth
Imaging Center market - highest growth For personal use only 23 Percentage Penetration Number of Sites Based on Annual procedure Volume Based on Annual procedure Volume Source: Frost & Sullivan
Slide 25: It's about speed, scalability, stability and your success
Mantra: “It’s about speed, scalability, stability and your success: all informed by the key attribute of support” For personal use only • Our deep understanding of the practice of radiology is placed at the disposal of our clients to deliver better clinical and business outcomes • Our clients enlist
Slide 26: Specialist experience with large groups
Specialist experience with large groups For personal use only United States • Virginia Based integrated healthcare group with 40 outpatient imaging centres Canada • Calgary based diagnostic imaging group with 28 imaging centre sites Australia • Australia’s largest private radiology group with 170 di
Slide 27: Building a platform for future growth
Building a platform for future growth For personal use only • Establishment of Pro Medicus own presence in North America. • Business now registered in Delaware • Offices established in New Jersey • Investment in new people and infrastructure • Sales • Implementation • Support • Pursuing major develo
Slide 28: Transfer our knowledge to new related products and markets
Transfer our knowledge to new related products and markets For personal use only √ Complementary Technology new Products U.S.A. Canada √ existing Promedicus U.K. today Others Australia existing new Markets
Slide 29: New products, new markets
New products, new markets For personal use only Complementary Technology Orthopedics √ new Products Cardiology √ U.S.A. Canada Agfa U.K. existing Promedicus yesterday Asia-Pacific? tomorrow Public Hospitals? Australia existing new Markets
Slide 30: Development Update
Development Update For personal use only • Delivered new capabilities into US product • integration of 3rd party billing modules • integration of leading US electronic medical record (EMR) product. • R&D effort • Ongoing build up of core competencies. • underpins future by transitioning products to
Slide 31: Financial Crises – Threat or Opportunity?
Financial Crises – Threat or Opportunity? For personal use only • Healthcare a defensive position - Governments continuing to reduce Healthcare costs through technology • Costs in US Dollars will be offset by future earnings also in US currency • Up-front costs offset by assistance in logistics and
Slide 32: Pro Medicus Outlook
Pro Medicus Outlook For personal use only 31 • Have been travelling well • We are in a transition period • Further potential remains in Australia but market is maturing • U.S. is still the key to future growth • RSNA in December is our primary launch pad • Have opportunity hopper, but must close sal
Slide 33: We offer a Partnership into the Future
For personal use only We offer a Partnership into the Future Radiology Information Solutions
Slide 34: CEO Incentive Scheme
CEO Incentive Scheme For personal use only 33 • 2008 /09 a year of transition • Emphasis placed on scaling company for growth • Performance parameters aligned with shareholders interests • Building company for minimum 3 x growth • EPS • Share price accretion • Renewable agreement