Pro Medicus, Ltd. · ASX:PME
Pro Medicus — FY2021 Earnings Presentation
43 slides from Pro Medicus's earnings presentation, August 2021
Slide 1: FY 2021 Results Presentation
FY 2021 RESULTS PRESENTATION August 2021
Slide 2: Pro Medicus (ASX:PME)
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 2
Slide 3: Product Suite
ASX:PME VISAGE RIS VISAGE 7 OEM PRODUCT SUITE 3
Slide 4: Results FY 2021
RESULTS FY 2021 $67.9M $30.85M $42.63M 63.2% Underlying Profit Underlying EBIT Revenue after tax Profit margins up 19.5% up 33.7% Before Tax up 41.0% $61.8M $0.15 Cash Company Strong Full year & debt balance dividend FF Investments free sheet Up 25% up 42.4%
Slide 5: Sales Pipeline FY21 Full Year
SALES PIPELINE FY21 Full Year Continues to grow STRONGLY University of California $25M/7 years $10M/7 years $18M/5 years $40M/7 years $31M/7 years $14M/8 years New Contract New Contract New Contract New Contract New Contract New Contract SEPTEMBER 2020 OCTOBER 2020 DECEMBER 2020 JANUARY 2021 FEBRUAR
Slide 6: In Review
IN REVIEW 2020-2021 Top Hospitals 6
Slide 7: FY 2021 Revenue Split
FY 2021 Revenue Split $80,000,000 Full year revenue split Exam/licence revenue*** Support/baseline revenue*** Capital revenue (net of hardware) Professional Services*** Archive data migration ***Recurring revenue $70,000,000 $3,413,000 $6,047,000 $60,000,000 $4,609,000 $50,000,000 $17,484,000 $6,464
Slide 8: 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$320M/5 years* • Upside as client examination volumes grow • Annuity style revenue stream – greater predictab
Slide 9: Exam (Transaction) Revenue
EXAM (TRANSACTION) REVENUE • Recurring in nature • Increased by 16% YoY (28% on constant currency basis) • Growth to continue for FY 2022 (Northwestern, NYU, MedStar & others) • New sites coming online in 1st Half FY22 (Intermountain, 2 UC campuses & UVM) • Growth from existing clients (organic and
Slide 10: Professional Services
PROFESSIONAL SERVICES • 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 7 Open Archive sale – once off 10
Slide 11: Operating Leverage
OPERATING LEVERAGE • 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 12: COVID-19
COVID-19 • PME/Visage transitioned to WFH in mid-March 2020 • Operating at 100% capacity • Sales and marketing efforts continued throughout • “Thinness” of the technology enabled large scale remote demonstrations • New opportunities despite COVID restrictions • Visage 7 - enables radiologists to sea
Slide 13: Visage RIS
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Slide 14: 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 15: Visage 7
VISAGE 7 Continues to be #1 in Speed, Functionality and Scalability SPEED FUNCTIONALITY SCALABILITY
Slide 16: Massive Data Explosion
MASSIVE DATA EXPLOSION • 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 17: Legacy Technology
LEGACY TECHNOLOGY “Compress and Send” MODALITIES PACS RADIOLOGIST/CLINICIAN
Slide 18: Solution: Visage 7 Streaming Technology
SOLUTION: VISAGE 7 STREAMING TECHNOLOGY
Slide 19: NYU Langone
NYU LANGONE • $25 Million over 7 years • Voted in the top 10 Hospitals in North America • Transaction based licensing model with upside • Teaching hospital for the Grossman School of Medicine • Implementation completed in June 2021 • Visage to setup new R&D hub in NYC starting August 2021 20
Slide 20: LMU Klinikum - Munich
LMU KLINKUM - MUNICH • $10M – 7-year deal • One of Europe’s largest teaching hospitals • 2nd major hospital contract in Germany • Visage 7 Viewer and Visage 7 Open Archive • Breaks the mold of “one-stop-shop” modality vendor systems • Paves the way for future European sales • Implementation complete
Slide 21: Zwanger Pesiri
ZWANGER PESIRI • $8.5M -5-year renewal contract • One of the largest private outpatient groups in the US • Increased minimum contract value by 70% • Visage technology key enabler of practice growth • Validates Visage’s unique value proposition 22
Slide 22: MedStar Health
MEDSTAR HEALTH • $18M-5-year deal • Replaces legacy PACS across 10 hospitals • Largest health system in the Maryland/DC region • Contract for all three Visage modules –Viewer, Open Archive and Workflow • Visage 7 platform to be fully deployed in the public cloud • Extends PME’s rapidly growing footp
Slide 23: Intermountain Healthcare
INTERMOUNTAIN HEALTHCARE • $40M – 7-year deal • Largest healthcare provider in the Intermountain West • Visage to replace legacy PACS across 24 hospitals and more than 200 clinics • Contract includes the Visage 7 Viewer and Open Archive • Visage 7 to be fully deployed in the public cloud • Extends P
Slide 24: University of California Health System
UNIVERSITY OF CALIFORNIA HEALTH SYSTEM • $31M – 7-year deal • 5 leading academic campuses - UCLA, UCSF, UCSD, UC Davis and UC Irvine • Unifying all 5 academic campuses on a single diagnostic imaging platform • Visage 7 to be deployed in the public cloud • Further extends PME’s footprint in tier 1 ac
Slide 25: University of Vermont Medical Center
UNIVERSITY OF VERMONT MEDICAL CENTER • $14M – 8-year deal • Visage to replace multiple legacy PACS systems • Visage 7 to be deployed in the public cloud • Extends PME’s US academic institution footprint • Transaction-based model with potential upside 26
Slide 26: 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 • OSU first 10
Slide 27: Key Implementations
KEY IMPLEMENTATIONS FY21 OTHER SITES August 2020 May 2021 June 2021 June/July 2021 July to April 100% Remote Onsite 100% Remote Hybrid Remote & 100% Remote Onsite 28
Slide 28: 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 29
Slide 29: Visage – Clinical ROI
VISAGE – CLINICAL ROI Improved Physician Engaement 30
Slide 30: 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 31
Slide 31: North American Pipeline
NORTH AMERICAN PIPELINE 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 opportunities 32
Slide 32: Visage 7 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 • Three recent sales - Viewer and Visage 7 Open Archive • Pipeline includes Visage 7 Open Archive opportunities • Key component of Vis
Slide 33: Visage 7 Workflow
VISAGE 7 WORKFLOW • Adds to Visage 7 Viewer and Open Archive modules • Based on over 30 years experience in Worklist 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 based model
Slide 34: 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 35: Visage in the Cloud
VISAGE IN THE CLOUD • 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 • Opens new market opportunities • Signific
Slide 36: Visage in the Cloud: Cloud Native
VISAGE* 7 IN THE CLOUD CLOUD NATIVE ' 4 Cloud Object Storage MASSIVELY PARALLEL 1/0 Digital Alchemy for Imaging in the Cloud Faster-than-flash performance using secure, low-cost storage, We re-architected Vi intelligently leverage the best capabilities of object-based cloud storage. Up to 60 to clou
Slide 37: Visage 7 AI platform
VISAGE 7 • Unique end to end solution • Supports both 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 39
Slide 38: Visage 7 AI Accelerator Platform
VISAGE 7 • Visage AI Accelerator Platform– streamlines AI algorithm development • Optimised for AI data curation and validation • Open API - seamless integration • AI Ecosystem - 3rd party and Visage developed algorithms • Joint development/commercialisation opportunities - 3rd party and academic cl
Slide 39: AI Research Leadership
AI RESEARCH LEADERSHIP Malte Westerhoff, PhD Chief Technology Officer Detlev Stalling, PhD Head of Development MingDe Lin, PhD Director, Clinical Research North America 41
Slide 40: Research Collaboration Agreements (RCA)
RESEARCH COLLABORATION AGREEMENTS (RCA) 42
Slide 41: Breast Density - AI
BREAST DENSITY - AI • First 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 development 43
Slide 42: HIMSS21
V\ HIMSS21 VISAGE TMAGING Platform: For The Future — Powered. By Speed. Lx . prosmedicus & SR SUPPORT. aU SUES Visace IMAGING’ 44
Slide 43: Thank You
A’\A Gy 4 VV . Wy THANK YOU pro+medicus