Corporate Presentation - EMIS Group, leading healthcare software … · 2015. 6. 16. · EMIS Group...
Transcript of Corporate Presentation - EMIS Group, leading healthcare software … · 2015. 6. 16. · EMIS Group...
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Corporate Presentation
May 2010
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EMIS Group – Table of Contents
PageEMIS Group - Presentation Team 3Investment Opportunity 4Company Background and History 5Current Products and Services 6Products and Services – 2009 Income Breakdown 7Revenue Model 8EMIS – The Market Leader 9The Healthcare IT Environment 10EMIS Web – The Opportunity 11EMIS Web – Revenue Model 12EMIS Web – In Action 13EMIS Web – Liverpool PCT Roll-out 14Strategy and Opportunity 15Financial Summary 16Financials – Profit and Loss Account 17Financials – Balance Sheet 18Financials – Cash Flow 19Summary 20Appendices 21-29
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EMIS Group – Presentation Team
Sean Riddell, Chief Executive, 45– BSc in Psychology– 20 years’ experience of healthcare IT – Joined EMIS in 1989 (CEO since 2006)
Phillip Woodrow, Finance Director, 62– Chartered Accountant– Baker Tilly 1965-2008 (Partner since 1972)– Joined EMIS in April 2008 as Finance Director
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Investment Opportunity
Trusted, market-dominant healthcare software business
Profitable and highly cash generative
20+ year track record of organic growth
High visibility of earnings with substantial recurring revenues
History of successful product development
Experienced management team
Clear growth strategy - organic + acquisition
Dividend paying
“Written by Doctors for Doctors”
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Company Background and History
Established in 1987
Based in Yorkshire
Canadian operations established 2005
774 employees
UK market share of 52%
2009 turnover of £58m; £15.8m EBIT*
Strong cash conversion
* IFRS
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Current Products and Services
Hosting
OtherHardware Sales and Training
Support Services
Software Licences
GP Practices
Medical records
Appointment booking
Consultation mode
Intelligent prescribing
Decision support
Installation
Call centre support
Maintenance
Hardware
Training
3rd party software
Patient arrival screens
Appointment recall screens
Patient kiosks
c13 million patient records in data centres
CfH accredited (PCS WAN)
Supporting GPs’ management of cradle to grave electronic health records
Medical records
Appointment Consultation mode
Intelligent
Installation
Call centre support
Maintenance
Hardware
Training
3rd party
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Products and Services – 2009 Income Breakdown
UK Revenue by Product/Service
Recurring revenues – £42.7m
Other – £14.5m75%
25%
Percentage of Recurring Revenues
Total - £57.2m
0% 50% 100%
Other
Recurring £40.4m95%
53%
Gross Margin – £48.1m
£7.7m
Support Services – 27%
Hardware sales and Training – 16%
Hosting – 6%
Other – 6%
Software Licences – 45%
45%
27%
16%
6% 6%
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Revenue Model
Average annual revenue per GP Practice of approximately £10,000
64% of customers have been with EMIS for >10 years
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Software Licences £4,700
Support Services £1,100
Other Recurring Income £1,700
Hardware Sales and Training £1,600
Other Sales £900
75% Recurring
25% Non-recurring
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EMIS – The Market Leader
39 million Electronic Patient Records on EMIS’ platformFurther opportunities for market share expansion:
Scotland / legacy system share erosion / PCT driven consolidation
0 1000 2000 3000 4000 5000 6000 7000 8000 9000
England
Northern Ireland
Scotland
Wales
EMIS
InPS
iSoft
TPP
Other
(Allocation of competitor data estimated)
EHR market share by country as at 31 December 2010
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The Healthcare IT Environment
The NHS National Programme for IT / Connecting for Health
Objective: national care record service – single, centralised patient recordMethod : ruthless standardisation – “rip and replace”Focused on hospital IT as the solution (not cradle to grave record)Outcome: classed now as a failed IT programme
New policy: “connect all” rather than “replace all”
Conservative view – “Choosing their own software within a framework of interoperability” Andrew Lansley
New opportunity: EMIS Web
Focus on cradle to grave recordConnecting healthcare professionals Delivering efficiency and cost savingsNHS ordered “familiarisation service” in 2010
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EMIS Web represents the future of healthcare software
EMIS Web – The Opportunity
Upgrade our existing GP practices in England to EMIS Web NHS accreditation for GP use expected H2 2010, growth to be reflected in 2011
Convert non-EMIS GP practices
Penetrate new areas of NHSBenefits
• Shared cradle to grave record• Reduces waiting times • Saves admin time – cost saving• Reduces risk of errors – LIFE SAVING
Successful roll out to date• Liverpool – minor surgery wait times cut from 9 months to 1 day in some cases• Gateshead – primary care records of 206,000 patients accessible by out of hours clinicians• Tower Hamlets – physio team saving 7 admin hours per week
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EMIS Web - Revenue Model
2012 illustrative average annual revenue per GP Practice of £13,000
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Software Licences
Support Services
Other Recurring Income
Hardware Sales and Training
Other Sales £800
78% Recurring
22% Non-recurring
EMIS Web = incremental revenue opportunity
11000
12000
13000
£3,500Hosting and EMIS Web
£300
£5,000
£1,400
£2,000
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EMIS Web – a UK-wide view
GP
GP
GP GP GP GP
INPS – 20%156,694 staff
Cradle to grave EHR
GP GP GP GP
EMIS – 52.5%
Extended care
Long termconditions
OOH
Child health
Physio
DiabetesAsthma
CVD
District nursesPodiatry
Healthvisitors
292,417 staff
£425 p.a.
FTE seat
Community
iPHR
Telehealth
61.4m people in the UKSecondary care
922,443 staff
Heart emergencyAMUCoronary care
A&EHospital pharmacy
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EMIS Web – Liverpool PCT Roll-out
Multidisciplinary Teams
Liverpool PCT
CommunityMatrons
EMIS: LV/PCS InPS
FeedMessaging
and/or ViewingiSOFT
MMT
End of Life
GP System Primary Care Interfaces
AED Diversion –Royal Liverpool
Anti Coag
Minor Surgery
Outside of Hospitals Services – Primary & Community
ABPI (April Go Live)
Emergency Department –
Royal Liverpool
Walk-In Centres
Weight ManagementJoint Injections
Dermatology (April Go Live)
ENT
Gynaecology (April Go Live)
North Mersey Clinical Pathways – spanning numerous Health and Social Care Services
Out of Hours GP
Child Health (V&I)
COPD
PCI Clinic
Coronary Care
Heart Emergency Centre
Acute Medical Unit
In Patient
Out Patient
Pharmacy
Diabetes Heart Failure Cancer
Treatment Rooms
IV Therapy
AED Diversion –Alder Hey
Emergency Department –
Alder Hey
Emergency Department –
Aintree
Emergency Renal
Surgical Assessment Unit
Emergency Care
Secondary Care ServicesKEY
Installed
Underway
Planned
Social Care / SAP
MentalHealth
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Strategy and Opportunity
Growth of existing business
i.e. Scotland UpgradesNew products
Roll out of EMIS Web
Sale to other (non-GP) healthcare professionalsConversion of current GP customer base over 2-4 year periodReplacement of legacy GP systems
Acquisitions - healthcare software and service providers
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Financial Summary
Growth business (despite NPfIT)
High visibility of earningsc75% recurring revenuesLong-term growth trendEnd user loyaltyStable and secure customer base
Annual licence fees; quarterly invoicing mainly in advance
Consistently strong cash generation
Healthy balance sheet
8 year sales history - UK GAAP
30.0
35.0
40.0
45.0
50.0
55.0
60.0
2002 2003 2004 2005 2006 2007 2008 2009
8 year EBITDA history - UK GAAP
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
2002 2003 2004 2005 2006 2007 2008 2009
NPfIT
NPfIT
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Financials – Profit and Loss Account
(all in £ millions) Year ended 31 December
2009 IFRS 2008 IFRS 2007 IFRS
Turnover 57.7 55.4 48.5EBITDA 20.1 10.1 7.0EBITDA Margin 34.8% 18.2% 14.4%EBIT 15.8 5.9 5.1EBIT Margin 27.4% 10.6% 10.5%
Growth in revenue driven primarily by increase in software licences / support fees
Strengthening EBITDA margin as costs reduce
Consistently profitable
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Financials – Balance Sheet
(all in £ millions)At 31 December
2009 IFRS 2008 IFRS 2007 IFRS
Fixed assets 49.0 44.9 10.8
Current assetsCash at bank and in hand 5.2 6.1 25.1Other current assets 8.2 6.7 6.7
Total current assets 13.4 12.8 31.8
Current liabilities (15.7) (16.1) (13.2)
Long-term liabilities (35.3) (40.2) -
Net assets 11.4 1.4 29.4
Low net working capital requirement
10 year founder loan - £23 million - repaid in full on Admission
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Financials – Cash Flow
(all in £ millions)At 31 December
2009 IFRS
2008 IFRS
2007 IFRS
Cash generated from operations 19.9 10.9 1.2Interest (2.6) (2.1) 1.6Tax (3.1) (2.8) (1.2)Net capital expenditure (3.9) (1.2) (2.3)Software development (4.5) - -Purchase of subsidiary - (30.9) -Net financing ex dividends (6.6) 14.0 -Dividends - (7.0) -Net decrease (0.8) (19.0) (0.8)B/F at 1 January 6.1 25.1 25.9C/F at 31 December 5.3 6.1 25.1
Highly cash generativeFree cash flow allows sensible dividend
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Summary
Profitable and highly cash generative
Strength of market share
High visibility of earnings and substantial recurring revenues
Growth of existing business
Potential of EMIS Web
Dividend paying
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Appendices
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EMIS Group Structure
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The History of EMIS Group
1987: Development of core EMIS Software
2008: Roll out of EMIS Web commences (non GP)
1997:EMIS MoD GP systems contract signed
1998: Launch of LV ‐ text based version with GUI Interface
2006 EMIS Web Development starts
August 2007: GPSoC Signed
2006: DMICP MoD Contract signed for both GP and Dental software
1987
1999/2002: Launch of EMIS PCS –Windows and MS SQL based GP product LAN then WAN
1999: Egton set up as separate trading division to concentrate on hardware support
2010
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Market Share
Country EMIS estate EMIS % InPS estate InPS % iSoft estate iSoft % TPP estate TPP % Other Other %
England 4936 59.0% 1545 18.5% 832 9.9% 731 8.7% 321 3.8%
Northern Ireland
149 40.8% 82 22.5% 72 19.7% 0 0% 62 17.0%
Scotland 132 12.7% 203 19.6% 25 2.4% 0 0% 673 65.0%
Wales 160 31.7% 242 47.9% 99 19.6% 2 0% 3 1%
UK TOTAL 5377 52.4% 2072 20.2% 1028 10.0% 733 7.1% 1059 10.3%
Country MOD Overseas Isle of Man Channel Islands EMIS Canada EMIS Web projects
EMIS Non GP EMIS Dental (Non MOD)
HMP Customer
Number 634 4 13 16 26 140 108 2 36
Total:6356
Other areas
Market Share by Geography
(Allocation of competitor data estimated)
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Market Share – Last 10 Years
GP Supplier Yr 1999 % Yr 2000 % Yr 2005 % Yr 2009 %
EMIS 3,030 28% 3734 35% 5541 49% 5377 52.4%
InPS 1,871 17% 1683 16% 1695 15% 2072 20.2%
iSOFT 2,294 21% 2095 19% 1825 16% 1028 10.0%
GPASS 933 9% 922 9% 861 8% 673 6.6%
TPP 110 1% 733 7.1%
Other 2,748 25% 2378 22% 1361 12% 386 3.8%
UK Total 10876 10812 11393 10269
(Allocation of competitor data estimated)
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EMIS Award Wins
Finalist 2009
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ISO Accreditation
ISO 9001:2008 TickitMoD and Overseas & international
ISO 9001:2008Egton
ISO 27001Information Security Quality Management SystemEMIS including Egton
ISO 20000 IT Service ManagementEgton
ISO 20000 IT Service ManagementEMIS (Hosted product)
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EMIS Group - Probono
LV in use by Africaid medics Qresearch.org Qsurveillance.org Qrisk.org Signtranslate.com
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Barriers to Entry
Longevity of customer relationships – disincentive to move
Less expensive than competitor products
Dominant market share and consolidation of PCTs
Supplier accreditations
EMIS Web core development effort largely complete – significant development costs for a new entrant
Data mobilisation benefits