IMEXHS LIMITED — Annual Report 2022

Feb 27, 2022

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FY21 Results 28 February 2022

Presenters Dr German Arango, CEO Reena Minhas, CFO

Agenda FY21 Results

1. IMEXHS Overview

2. FY21 Results Overview

3. FY21 Financials

4. Strategy & Outlook

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Overview

One Company with two businesses aimed at democratising access to medical expertise

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Expanding global footprint

Software

Services

15 countries; 386 sites

Colombia, Spain and Mexico

2,400+ radiologists 35 distributors in 17 countries

33 radiology centres

100+ in-house radiologists

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37 engineers

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FY21 Results Overview

FY21 Operational Highlights

• AQUILA in the Cloud – 111 active contracts with ARR of $2.5m; 75% of contracts outside Colombia

• Entered into a global commercial partnership with Neusoft Medical

• Launched IMEXHS Cloud to provide better access to IMEXHS’s cloud portfolio of products

• Purchased radiology services provider RIMAB SAS in October 2021

• Contract signed for the outsourcing of the radiology department of Colombia’s National Police Central Hospital with $1.1m of ARR

• In January, entered the Thai market with FDA registration, a distribution agreement with BJC and an AQUILA in the Cloud order

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Sales Revenue[1]

Up 23% yoy

Up 34% on a constant currency basis

Recurring

revenue

Up 43% yoy

Up 57% on a constant currency basis

$13.4m

$12.2m

Annual Recurring Revenue (ARR)

$20.4m

Up 102% yoy

Up 121% on a constant currency basis

Closing cash Vs $10.8m at 31 $4.2m December 2020

EBITDA

vs ($1.3m) in FY20

due to continued investment in operations

Underlying EBITDA[2]

vs ($0.7m) in FY20

($3.0m)

($1.4m)

FY21 Revenue and ARR Split

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Medical
Radiology
$M Software Total
Services
Imaging
Revenue 5.0 8.3 13.4
ARR 7.1 13.3 20.4
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• Software revenue primarily related to sales of AQUILA Enterprise

• • Radiology services includes RIMAB along with other services related to outsourcing radiology on-premise or remotely using IMEXHS software

Notes:

1. Revenue includes RIMAB from Q4 FY21

2. ARR includes $1.1m from Colombia’s National Police Central Hospital contract won in Dec-21

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Software – AQUILA Enterprise

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Number of Studies (m)

• Enterprise imaging platform tailored to a customer’s specific needs (formerly AQUILA Custom)

• Dedicated to large university hospitals and multi-site healthcare organisations

• Average contract length is 5 years

• ~100 customers across 8 countries with revenue growth of 9% yoy

• 7.5m studies – up 21.3% yoy

• ARR growth from both existing customer volume growth and new customers

+21.3% 7.5m

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6.2m
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2020

2021

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Software – AQUILA in the Cloud (AiC)

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Annualised Recurring Revenue ($'000) and
# of contracts
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• Standardised radiology solution launched in May 2020; unique and successful offering in an underpenetrated global market

• Provides small and medium-sized customers with low-cost, rapidly deployed product offering

• At 31 Dec 2021, 111 deals signed including 7 in the US and 5 in Australia

• 73 contracts implemented, 64 contracts billing

• ARR contribution of $2.5m in 11 countries

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2500
2100
2000
1200
945
400
12 41 54 84 93 110
Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21
New contracts (cumulative) ARR Contribution ($000)
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• Distribution via growing partner network (generated 73% of AiC sales in FY21) and online marketplaces

• Strong pipeline of new opportunities

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Radiology Services

• Outsourced radiology services for hospitals and other establishments

• includes administration, technicians, enterprise software, training, equipment if required; radiologists located on premise and internal teleradiology

• 95%+ of revenues

• Teleradiology services

• growing as flexibility of operations reduces requirement for on-premise presence of radiologists

• ability to provide remote access to the highest quality radiology specialists.

• predominantly international customers such as Health Time in Spain

• Exclusively use IMEXHS software

• Fully integrated with RIMAB

• Top 5 player in Colombian market with a high academic profile of radiologists

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33 Radiology Centres
109 Radiologists
1.2m+ Studies per year
Zero customer churn
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Artificial Intelligence

• Key differentiator and competitive advantage

• Connection between 2 businesses – radiology services and technology

• AI tools – Chest, COVID, Lung, Neuro, Breast, Braviz

• Elements for successfully building AI tools:

• Data

• Experience

• Access to testing environment

• Continue to invest and increase AI development to deliver one platform that covers full scope of imaging practices

• IMEXHS Cloud provides marketplace where customers can add new AI prototypes

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Number of Images Stored (m)
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1504
940
488
231
99
2017 2018 2019 2020 2021
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Represents cumulative images stored since IMEXHS was founded in 2012.

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• Third party algorithm

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FY21 Financials

Strong growth in ARR

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25
20
15
10
5
0
2016 2017 2018 2019 2020 2021
Spot Not Yet Billing Constant Currency Not Yet Billing
A$ Millions
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+102% yoy (+121% on a constant currency basis)

Constant currency basis assumes that historic results are converted at the 31 Dec-21 exchange rate. This removes the impact of changes in currency rates and allows comparison of IMEXHS’s underlying operating performance.

ARR as at 31 December 2021

• $20.4m = $13.3m from Radiology Services and $7.1m from Software

• Includes $1.1m from Colombia’s National Police Central Hospital contract won in Dec-21

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Income Statement

$'000	FY21	FY20	Var	Var %
Revenue	13,373	10,914	2,459	23%
Other revenue	216	88	128	145%
Total revenue	13,589	11,002	2,587	24%
Expenses	(18,145)	(14,530)	(3,615)	25%
Net profit before tax	(4,556)	(3,528)	(1,028)	29%
Depreciation & amortisation	1,245	1,024	221	22%
Net finance expenses	292	1,185	(893)	(75%)
EBITDA	(3,019)	(1,319)	(1,701)	129%
FX & share-based payment
expenses	912	630	282	45%
One-off costs	702	-	702	-
Underlying EBITDA	(1,405)	(689)	(716)	104%

• Revenue of $13.4m, up 23% with 90% recurring revenue

• Total expenses of $18.1m, up 25% on pcp, reflect increased investment in sales and marketing, expanding operations in Australia and US and one-off acquisition related costs

• Finance expenses $0.9m lower due to repayment of related-party loan in the prior year

• Underlying EBITDA loss excludes the impact of FX, share-based payments and one-off costs in relation to the RIMAB acquisition

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1. Financial results include RIMAB Results from Q4 FY21

Balance Sheet

$'000	Dec 21	Jun 21	Dec 20
Cash	4,186	8,342	10,796
Trade & other receivables	7,264	4,609	4,059
Inventories	84	197	390
Current assets	11,535	13,148	15,245
Trade & other receivables	1,396	1,076	998
PPE & other	4,498	3,206	3,448
Intangible assets	8,329	1,568	1,113
Non-current assets	14,224	5,849	5,559
Total assets	25,759	18,997	20,804
Trade & otherpayables	3,769	1,940	2,383
Other current liabilities	3,331	1,972	2,076
Current liabilities	7,099	3,911	4,459
Non-current liabilities	2,007	1,430	809
Total liabilities	9,106	5,342	5,268
Net assets	16,653	13,655	15,536

• Balance Sheet reflects the acquired assets and liabilities of RIMAB

• Increase in Intangible assets reflects recognition of $5.3m of Goodwill and $0.9m in customer contracts for the RIMAB acquisition

• Current liabilities includes Contingent cash consideration of $0.3m for the acquisition of RIMAB

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Summary Cash Flow

$'000	FY21	FY20
Net cash used in operating activities	(2,968)	(1,467)
Net cash used in investing activities	(3,386)	(2,187)
Net cash flow from financing activities	(162)	7,405
Net cash movement	6,516	3,751
Cash at the beginning of the year	10,796	7,150
Effects of exchange rate	(94)	(105)
Cash at the end of the period	4,186	10,796

• FY21 operating outflows of $3.0m reflecting increased investment in sales and marketing, expanding operations in Australia and the US and one-off costs in relation to proposed acquisition of RIMAB

• Net cash used in investing activities includes capitalised development costs of $1.4m and payment for RIMAB acquisition of $1.1m

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Strategy & Outlook

Global market opportunity

Large and growing addressable markets

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• IMEXHS’s main software market is currently in radiology in Colombia

• 75% of AQUILA in the Cloud deals are from outside Colombia

• US accounts for ~40% of the radiology software market; Florida market is >3x the size of the Colombian market

• Further upside from other medical software and services

Sources of market stats:

Signify Research, 2021 Research and Markets, 2021

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Use of radiological Large, growing, techniques in fragmented global wider clinical medical imaging applications, markets demand for central storage of images

Chronic global Increased value radiologist Shift from client coming from shortage driving server architecture Artificial demand for to cloud solutions Intelligence (AI) teleradiology

STRATEGIC PRIORITIES: Benefiting from industry tailwinds

‘Land & expand’ with multiple verticals including patholog y and other ologies, portals, AI, advanced post processing

Expand into new geographies , leveraging our partner network and AQUILA in the Cloud offering

Investment in product and sales capability for AQUILA Enterprise to accelerate growth

Develop AI enhanced teleradiology solution to allow radiologists access images from any device or location

Accelerate AI verticals by using extensive database and testing environment to develop AI tools

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2022 Product Roadmap

Making good progress on software developments

IMEXHS AI

Core element of the new software development roadmap, attempting to enhance the AI integration engine.

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IMEXHS Cloud

Cloud based medical imaging platform that provides a way to manage medical imaging offering advanced technological tools.

AQUILA new version

IMEXHS Marketplace

Single platform. Big focus on enhancing the enterprise offer , bringing rules for highly complex deployments.

App Store with extensions that can enhance the user experience (for radiologists and non-radiologists).

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FY22 Outlook

AQUILA Enterprise – post COVID recovery reactivating purchase activity; investment in sales and marketing to accelerate growth

– AQUILA in the Cloud (AiC) strong underlying demand and implementation time decreasing

Radiology services – strong growth continues due to the attractive value proposition for the Latin American market

AI tools – accelerating AI strategy by creating more AI products and using more third-party algorithms

Global expansion – fuelled by recent Neusoft Medical partnership, entry into Thailand and greater presence in the US

US expansion – momentum building in Florida with land & expand initiatives planned for Texas in FY22

FY22 guidance – targeting EBITDA run rate breakeven whilst continuing to invest in product development and sales

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Q&A

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Appendix

IMEXHS Enterprise Imaging Universe

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IMEXHS Enterprise Imaging Solutions are cloud-based and manage, store, distribute, view and analyse images in three ologies – radiology, pathology and cardiology.

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A Combined Offering

FUTURE RADIOLOGY CHAIN

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Patient Scan PACS [1]
Physician Full process of
In-house
Cloud image/report transfer
powered by software
Artificial
Final Report Radiologist
Intelligence Diagnostic and
reporting assisted and
optimised by AI
Preliminary
Teleradiologist Report
(domestic / global)
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The role of technology in radiology, in particular AI, will increase in the future.

MEDICAL IMAGING SOFTWARE

• Technology such as AI, software and teleradiology makes the radiology process more efficient

RADIOLOGY SERVICES

• Data and experience to develop AI tools

Note: 1. Picture archiving and communication system Sources: Interviews,Management, Advancy analysis

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End-to-end modular imaging solution

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Scan Uploaded Archived on 1)Business
scheduled via to IMEXHS IMEXHS Cloud Manages Intelligence
our platform platform platform Billing } 2)Statistical
Data
3. 4. 5.
1. 2. Radiologist Referring Billing
Physician Patient has interprets Physician reviews (where
requests patient scheduled scan scanned images images via applicable)
scan ( Tele-Radiology [1] ) Referring
Physician Portal
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1 Teleradiology - radiology concerned with the transmission of digitised medical images (as X-rays, CT scans, and sonograms) over electronic networks and with the interpretation of the transmitted images for diagnostic purposes

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Glossary

Artificial intelligence (AI) tools aid the interpretation of radiological images which require access to large image databases and digital workflows

Cloud-based usually refers to an application or service available via the internet, hosted by any major public cloud provider

Cloud marketplace is an online channel that allows Cloud Service Providers (from different industries) to offer their business solutions to potential customers

DICOM is an international standard used to transmit, store, retrieve, print, process and display medical imaging information & allow interoperability between manufacturers

Medical verticals are market

segments that refer to specific diagnostic departments within hospitals (e.g. radiology, pathology, cardiology)

Multi-modality refers to the support of multiple types of medical images such as CAT Scan, MRI, X ray, Ultrasound

Multi-tenant architecture is a manner in which an application can be deployed in a cloud-based environment to offer multiples instances of a product within a single service

Non-DICOM are clinically significant patient records such as jpeg, pdf, video

Streaming technology transfers

medical images from our VNA to our Web Viewer, reducing the waiting time of the radiologist or referring physician

Teleradiology refers to scanned images (readings) which are managed digitally allowing interpretation to be performed by radiologists in other locations

Vendor Neutral Archiving (VNA) allows PACS systems to store all patient records (DICOM & non-DICOM)

Web viewer is built on top of web technologies to run on major web browsers

Zero footprint allows radiologists to diagnose images from any device (Mac, PC, tablet, smart phone), anywhere & on any web browser

PACS Picture archiving and communications system

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Disclaimer

The information contained in this Presentation or subsequently provided to the Recipient of this Presentation, whether orally or in writing by or on behalf of ImExHS Limited or its respective employees, agents or consultants (“Information”) is provided to the Recipient on the terms and conditions set out in this notice.

The Recipient should not treat the Information as advice relating to legal, taxation, financial product or investment matters and should consult their own advisers. This Presentation does not purport to contain all the information that a prospective investor may require. The Information may not be appropriate for all persons and it is not possible for ImExHS Limited to have regard to the investment objectives, financial situation and particular needs of each Recipient who reads or uses the Information . Accordingly, no recommendation or expression of opinion is contained within the Information. Further, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the Information, including the likelihood of achievement or reasonableness or any forecasts, prospects or returns contained in the Information. Before acting in reliance on any Information, the Recipient should conduct their own investigation and analysis in relation to the investment opportunity presented by this Presentation and should check the accuracy, reliability and completeness of the Information and obtain independent and specific advice from appropriate professional advisers.

Statements contained in the Information, particularly those regarding possible or assumed future performance or potential growth, prospects or projections of ImExHS Limited are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks, uncertainties and contingencies. The Information may also be subject to clarification and change and ImExHS Limited may in its absolute discretion, but without being under any obligation to do so, update, amend or supplement the Information.

The Information is for informational purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The Information is not, and should not be construed to be, a Prospectus.

To the maximum extent permitted by law none of ImExHS Limited or its respective employees, agents or consultants nor any other person accepts any liability, including, without limitation, any liability arising out of fault of negligence, for any loss arising from the use of the Information.

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FY21 Results 28 February 2022