Pro Medicus, Ltd. · ASX:PME
Pro Medicus — Shareholder Meeting (November 2017)
34 slides from Pro Medicus's shareholder meeting presentation, Nov 14, 2017
Slide 1: Chairman's Address AGM November 2017
1 For personal use only Chairman’s Address AGM November 2017
Slide 2: Chairman's Report
CHAIRMAN’S REPORT Overview The Board has continued to follow its broad strategic plans which have provided the company with strong growth and improved profitability during the last financial year. For personal use only The company is in an excellent position to continue to capitalise on the increasi
Slide 3: Directors and Financial Results
Directors As the business continues to grow a range of diverse opportunities are being presented to the company. These are principally in the areas of research collaborations and licensing of software both inwards and outwards. In keeping with our strategic objective of diversifying and strengthenin
Slide 4: Dividend Policy
Dividend Policy The Board was pleased to increase dividend payments for the 2017 financial year to 4 cents per share with the final dividend of 2.5 cents being fully franked. This represents an increase of 33% over the previous year and a payout ratio of 44%. For personal use only The dividends were
Slide 5: CEO Presentation AGM November 2017
3 For personal use only CEO Presentation AGM November 2017
Slide 6: Pro Medicus
Pro Medicus (ASX:PME) For personal use only Healthcare IT company specialising in Enterprise Medical Imaging and radiology information system (RIS) software. Leading edge products, growing presence globally. EU Headquarters / R&D Berlin, Germany US Headquarters San Diego, CA Group Headquarters Melbo
Slide 7: Product suite
For personal use only PME Ltd Visage 7 * Visage RIS * Pro Medicus.net Product Suite OEM
Slide 8: FY2017 Highlights - Financial Results
FY2017 Highlights - Financial Results For personal use only Revenue ($m) 27.52 31.60 15% Profit before tax ($m) 9.50 13.41 41% NPAT - reported ($m) 6.37 9.32 46% NPAT - underlying ($m) 6.43 9.86 53% Cash ($m) 17.11 22.78 33% EPS (cps) 6.30 9.10 44% DPS (cps) 3.00 4.00 33% Growth in North American bu
Slide 9: FY17 Highlights
FY17 Highlights For personal use only • Increased revenue from US contracts • 5 year RIS contract with Primary Healthcare • Contracted revenue over next five years increased to > AUD$110 million • Proven implementation capability • Visage 7.0 - increasing momentum in US market • Pipeline of Opportun
Slide 10: Visage RIS – Market Leader
Visage RIS – Market Leader For personal use only • Technology is leading edge • Feedback from customers positive • New clients purchasing Visage RIS & PACS • Transition of user base nearing completion • Large scale rollouts > 2,000 users on 1 system • PME leader in the field
Slide 11: Visage RIS
For personal use only Visage RIS
Slide 12: Visage RIS - Australia
Visage RIS - Australia For personal use only • HIS (Primary) - one of the largest diagnostic imaging service providers • Visage RIS to be deployed in 141 practices • 5 year transaction based agreement • Rollout to commence 2nd half FY2018 • Upside as HIS grows • Repositions PME as clear market leade
Slide 13: Leading Edge Product Set
Leading Edge Product Set – Visage Imaging Still Number 1 in Speed, Functionality, Scalability 11 For personal use only
Slide 14: North American market
North American market 12 For personal use only • PACS market estimated at > US$2 billion pa and growing • Expanding into Enterprise Imaging • Paradigm shift to “deconstructed PACS” – best in breed approach • Market fragmented - in process of consolidating • Visage 7.0 – proven, market leading techno
Slide 15: Massive data explosion
Massive data explosion 13 For personal use only • Higher image density - CT leaps from 64 slices to 256 and now 640 • 3.0T MRI – much larger dataset than 1.5T • Functional Imaging e.g. PET scan often > 1.5 to 2 gigabytes • Digital Breast Tomosynthesis (DBT) files can be over 4 to 6 gigabytes • Prior
Slide 16: "Deconstructed" PACS
“Deconstructed” PACS 14 For personal use only Radiology Urology Gastroenterology Oncology Cardiology Neurology
Slide 17: Electronic Medical Record (EMR)
Electronic Medical Record (EMR) 15 For personal use only • Mandated in US Hospitals by end of 2018 • Consolidates all hospital data – clinical and financial • 90% of EHR is imaging data (by volume) • Need all imaging data in one repository • Driving adoption of VNA • Need for a single Viewer for all
Slide 18: Solution - Visage 7.0 Streaming Technology
Solution - Visage 7.0 Streaming Technology 16 For personal use only
Slide 19: Fast Track Implementation
Fast Track Implementation For personal use only • Proven fast track methodology • 1/3 the time of industry norm • Delivers huge savings for client • Strategic advantage - key differentiator in the market • Frees implementation staff for other jobs
Slide 20: Proven Results
Proven Results For personal use only • Significant IT and infrastructure savings • Unparalleled radiologist efficiency • Greater clinical accuracy • Improved physician engagement • Delivers superior value proposition
Slide 21: Growing Recurring Income Stream – Operational (Transaction) Model
Growing Recurring Income Stream – Operational (Transaction) Model 19 For personal use only • Alternative to capital model • Favoured in recent US contracts • Now used in RIS contracts in Australia [insert chart comparing • Model based on guaranteed minimums transaction with capital model] • Contract
Slide 22: Margin Expansion
Margin Expansion 20 For personal use only • Highly scalable offering • No Capex (HW) – SW only model • Training & Installation – charged as professional services • Relatively fixed cost base • Margin growth as footprint increases
Slide 23: Margin Expansion - EBIT Margins
Margin Expansion 21 For personal use only EBIT Margins 50 45 40 35 30 25 20 15 10 5 0 FY-14 FY-15 FY-16 FY-17
Slide 24: Marketing - North America
Marketing - North America For personal use only
Slide 25: Building on the success of RSNA 2016
For personal use only • Building on the success of RSNA 2016 • Heavily booked demonstration schedule • Record number of pre booked meetings • Visage to exhibit at inaugural Deep Learning (AI) showcase
Slide 26: US Pipeline
24 For personal use only US Pipeline • Multiple opportunities at various stages of cycle [insert chart • New opportunities – some at RFI/RFP stage comparing • Opportunities in both Private and Large transaction with capital model] Enterprise markets. • Network effect from recent high profile wins •
Slide 27: Growth Strategy
Growth Strategy 25 For personal use only • Transaction growth from existing clients • Expand current footprint - new clients • New product offerings for existing clients • Extend to other geographical markets • Leverage R&D capability to introduce next generation products
Slide 28: New products – Visage Open Archive
New products – Visage 7 Open Archive 26 For personal use only • Same highly scalable enterprise imaging platform used in Visage 7 • Modular design – interoperable in complex environments • Currently used outside of North America • Visage can offer choice of deconstructed or single vendor solutions •
Slide 29: New products - Enterprise Imaging
New products - Enterprise Imaging 27 For personal use only • Single viewer for all images in the medical record (EMR) • Radiology/Cardiology (DICOM format) • Other “ologies” –neurology, ophthalmology etc • Non radiology - reflected light - hi res photos & video • Visage technology ideally suited • I
Slide 30: Visage Imaging: One Viewer, All Images
VISAGE TMAGING’ @ ONEVIEWER ALLIMAGES Diagnostic - Clinical - EHR - 3D + Cardiology - Breast Imaging + Specialties - Telerad —_— At Home/Remote - Non-DICOM - Visible Light - Multimedia - HD Video + Audio - QA .
Slide 31: Enterprise Imaging
For personal use only Enterprise Imaging 29
Slide 32: Leverage R&D – Artificial Intelligence (AI)
Leverage R&D – Artificial Intelligence (AI) 30 For personal use only • Visage well positioned to take advantage of this emerging technology • Advanced image processing in Health is our “DNA” • Visage 7 - an ideal visualization/processing platform for AI • Growing academic/research focused client bas
Slide 33: Summary
Summary 31 For personal use only • Unique market position • Leading edge technology • Proven implementation & support capability • Delivers measureable financial benefits • Meaningful improvement in clinical outcomes • Unparalleled value proposition • New products – Enterprise Imaging & Open archive
Slide 34: Thank you
32 For personal use only Thank you AGM November 2017