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MACH7 TECHNOLOGIES LIMITED — Investor Presentation 2021
Jun 2, 2021
65285_rns_2021-06-02_9c90b2d4-46c3-4517-97e1-8c40994a3210.pdf
Investor Presentation
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Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
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Summary of information: This presentation contains general and background information about Mach7 Technologies Limited (“ M7T ”) activities current as at the date of the presentation and should not be considered to be comprehensive or to comprise all the information that an investor should consider when making an investment decision. This presentation is not a prospectus, disclosure document, product disclosure statement or other offering document under Australian law or under any other law. The presentation does not purport to contain all the information that a prospective investor may require in assessing a possible investment in M7T nor does it contain all the information which would be required in a prospectus prepared in accordance with the requirements of the Corporations Act 2001 (Cth). The information provided is in summary form, has not been independently verified, and should not be considered to be comprehensive or complete. It should be read solely in conjunction with the oral briefing provided by M7T and all other documents provided to you by M7T. The information in this presentation remains subject to change without notice. M7T is not responsible for providing updated information and assumes no responsibility to do so. Not financial product advice: This financial information provided in this presentation is for information purposes only. The information contained in this presentation is of a general nature only and is not a financial product, investment advice or a recommendation to acquire M7T securities and has been prepared without taking into account the objectives, financial situation or needs of any person or entity. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances. M7T is not licensed to provide financial product advice in respect of its securities or and other financial products. Cooling off rights do not apply to the acquisition of M7T securities. M7T assumes that the recipient is capable of making its own independent assessment, without reliance on this document, of the information and potential investment and will conduct its own investigation.
Disclaimer: M7T and its related bodies corporate and each of their respective directors, agents, officers, employees and advisors expressly disclaim, to the maximum extent permitted by the law, all abilities (however, caused, including negligence) in respect of, make no representations regarding, and take no responsibility for, any part of this presentation and make no representation or warranty as to the currency, accuracy, reliability or completeness of any information, statements, opinions, conclusions or representations contained in this presentation. In particular, this presentation does not constitute, and shall not be relied upon as, a promise, representation, warranty or guarantee as to the past, present or future performance of M7T.
Future performance: This presentation contains certain forward-looking statements and opinions. The forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements, including projections, forecasts and estimates, are provided as a general guide only and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of M7T. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or other forecast.
Risks: An investment in M7T securities is subject to investment and other known and unknown risks, some of which are beyond the control of M7T. You should have regard to the ‘Key Risks’ section of this presentation which outlines some of these risks.
Not an offer: This presentation is not, and should not be considered as, an offer or an invitation to acquire securities in M7T or any other financial products and neither this document nor any of its contents will form the basis of any contract or commitment. This presentation is not a prospectus. Offers of securities in M7T will only be made in places which, or to persons to whom it would be lawful to make such offers. This presentation must not be disclosed to any other party and does not carry any right of publication. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of M7T.
No distribution in the US: This presentation is not an offer of securities for sale in the United States. Any securities to be issued by M7T have not been and will not be registered under the US Securities Act of 1933, as amended (the “US Securities Act”) and may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities Act. No public offer of the securities is being made in the United States and the information contained herein does not constitute an offer of securities for sale in the United States. This presentation is not for distribution directly or indirectly in or into the United States or to US persons.
Monetary values: Unless otherwise stated, all dollar values are in Australian dollars (AUD$). The information in this presentation remains subject to change without notice.
Sophisticated and professional investor: By attending this presentation, you present and warrant that (i) if you are in Australia, you are a person to whom an offer of securities may be made without a disclosure document as defined in the Corporation Act 2001 (Cth) (“Corporation Act”)) on the basis that you are exempt from the disclosure requirements of Part 6D.2 in accordance with Section 708(8) or 708(11) of the Corporations Act; (ii) if you are in the United States, you are a qualified institutional buyer (as defined under Rule 144A Under the U.S. Securities Act; (iii) if you are outside Australia and the United States, you are a person to whom an offer and issue of securities can be made outside Australia without registration, lodgement or approval of a formal disclosure document or other filing in accordance with the laws of that foreign jurisdiction. If you are not such a person, you are not entitled to attend this presentation. Please return this presentation and any copies and do not provide this presentation to any other person. No distribution: Distribution of this presentation may be restricted by law. Persons who come into possession of this presentation should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable security laws.
Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
Enterprising Imaging Solution Provider
Mach7 Technologies develops innovative image management and viewing solutions for . healthcare providers globally
Our solutions form the core of an integrated enterprise imaging ecosystem.
We give healthcare organizations the independence and flexibility to deploy our solutions according to their needs, whether in their individual components or unified into a comprehensive end-to-end enterprise imaging platform.
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Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
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2007 2010 2012 2016 2018 2019 2020
Mach7 Founded • First Pilots Deployed • First Commercial Wins Listed on ASX (M7T) New Diagnostic, • Completes Client
• Cloud Deployments • Revenue Phase Begins Connected Health Outlook Acquisition
• USA & Middle East and AI Solutions • Achieves
Profitability
• Cashflow Positive
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Cash on hand $18M, no debt, no capitalized R&D (all expensed as incurred)
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Cash flow positive Q3 YTD $1.2M (FY2020: $4.5M)
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Shares on issue 235.65M, current market capitalization $245M
Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
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Mike Lampron MANAGING DIRECTOR, CEO
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20+ years experience in business and operational management for HCIT companies
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Mike is responsible for our customers’ success while driving excellence throughout
Steve Rankin CHIEF PRODUCT OFFICER
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Former Co-founder and CEO of Client Outlook (acquired by Mach7 in 2020)
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Inventor of imaging viewing technology “eUnity”
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Former Product Manager Mitra Imaging (now Agfa Healthcare)
Jenni Pilcher CFO, COMPANY SECRETARY
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10+ years executive experience in ASX-listed healthcare companies
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Former CFO and Co-Sec of Mesoblast (ASX:MSB) & Alchemia (ASX:ACL)
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Part of global finance teams at Cadbury Schweppes, Medeva (UK)
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Chartered Accountant, Company Secretary Diploma
David Madaffri VP GLOBAL SALES
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12+ years with Philips Healthcare in executive sales roles, including VP of Sales for Enterprise Diagnostic Informatics for North America.
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Former commercial roles at Sharp, IDX and GE
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Managed Imaging Services at Sharp Memorial Hospital, CA.
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Radiologic Technologist
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Ravi Krishnan FOUNDER, GM Asia
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Founding partner of Mach7 Technologies
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Nearly 20 years of experience with technology intricacies that drive medical imaging
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Previously worked at GE Healthcare and Agfa Healthcare
Bob Tranchida VP MARKETING
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25+ years experience in direct medical provider and healthcare IT space
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Former Sr. Field Marketing Manager for Philips Healthcare
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Previously held managing roles at lifeIMAGE, AMICAS, and IDX
Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
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David Chambers CHAIRMAN
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30+ years’ extensive experience in HCIT and Life Science industry.
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Former CEO of Promedicus (ASX:PME) & Visage Imaging
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Former Managing Director, AsiaPacific, of Allscripts
Rob Bazzani NON-EXECUTIVE DIRECTOR
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Corporate advisory, mergers & acquisitions and capital markets specialist
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Former Partner and Chairman KPMG Victoria
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Barrister, Solicitor and Chartered Accountant
Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
Eliot Siegel, MD NON-EXECUTIVE DIRECTOR
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Thought leader in the world of radiology and imaging informatics. Professor and Vice Chair at the University of Maryland School of Medicine
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Chief of Radiology & Nuc Med for the Veterans Affairs Maryland Healthcare System
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Philippe Houssiau NON-EXECUTIVE DIRECTOR Extensive Healthcare Imaging executive experience
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CEO of MAK-system (current)
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Former Partner PWC
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Former CEO Agfa Healthcare
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Former CEO Alliance Medical
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Former operating partner at Hg Capital
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We help healthcare providers: Drive workflow efficiency Achieve profound operational cost savings Leverage their existing IT solution investments Improve the experience for patients and medical professionals, leading to better patient outcomes
Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
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Enterprise Viewing
Enterprise Data Management
Enterprise PACS
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Leading industry zero-footprint • Vendor neutral archiving and image data • Enterprise diagnostic viewing and “eUnity” Enterprise and management enterprise data management solution Diagnostic Viewers • Consolidates all imaging data regardless • Powerful universal worklist and quality
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• One single viewer for all users , of its origin or where its stored control tools to replace traditional PACS reducing cost and complexity • • Drives and supports workflows across the Load balance workloads across active
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while increasing access enterprise to optimally capture, index, clinicians with advanced algorithms
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• manage, store, distribute, view, Images stored to disk are •
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exchange, and analyze all clinical imaging Advanced assignment features with
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presented at 100% of their quality and multimedia content streamlined resident workflow
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• Accessible on any device with an • •
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HTML5-enabled web browser Enables teleradiology Clinical collaboration through screen sharing and secure on-line chat
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•
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• Designed to integrate with any Reduces complexity, makes data more capabilities accessible
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PACS, VNA, or other image • User-created worklists, intelligent
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archive and can launch from any • EMR Offered on-premise or via Cloud workload balancing and color-coded infrastructure relevant prior studies
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• Security and exceptional performance
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Powerful universal worklist and quality control tools to replace traditional PACS
Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
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Solves Immediate Needs
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Cutting Edge of Technology
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Flexible Contract Terms
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Fits Individual Needs
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Designed for the Enterprise
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Customer Partnerships
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Lasting Technology
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Flexible Workflows
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Agile Global Company
Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
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•
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Integrated Delivery Networks Centers of Excellence
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• • International hospital Imaging Centers authorities and health systems • Telehealth service providers
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• Regional and community • Integration platform for
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hospital systems external systems (EMR, VR,
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• Academic medical institutions Image Sharing, HIEs)
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• • Medical Research facilities Strategic partnerships
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• • Independent Provider Groups Children’s Health Centers
Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
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CUSTOMER FOOTPRINT - 14 COUNTRIES
GLOBALLY
United States
Canada
China
United Kingdom
Hong Kong
The Netherlands
Singapore
Philippines
Saudi Arabia
Indonesia
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Hospital systems around the world employ Mach7 Technologies
Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
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More than 150 customers spanning 14 countries globally. Hospitals and healthcare entities around the world deploy Mach7’s solutions and innovative technologies. We have built a global network of diverse customers that range from expansive Integrated Delivery Networks, National Health Systems, medical research facilities, and large academic medical institutions to regional community hospitals, children’s health centers and independent provider groups.
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Partnerships focused on Meaningful Value to Support Patient Care Augmenting and expanding Mach7’s Enterprise Imaging Solution through innovative and collaborative partnerships designed to provide elevated value to healthcare organizations around the globe.
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$4.4Bn global imaging market; Radiology IT $2.6Bn - CAGR 2.3% (forecast);
Mach7 competes in all segments of the Radiology IT market, except Standalone RIS & Image Exchange
| Table 2.3 | Table 2.3 | Mach7 competes in all segments of the Radiology IT market, except Standalone RIS & Image Exchange Radiology IT is a subset of a larger imaging market: |
Mach7 competes in all segments of the Radiology IT market, except Standalone RIS & Image Exchange Radiology IT is a subset of a larger imaging market: |
Mach7 competes in all segments of the Radiology IT market, except Standalone RIS & Image Exchange Radiology IT is a subset of a larger imaging market: |
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| World Market for Radiology IT Total | |||||
| Revenue (US$m) | |||||
| 2019 2020 2021 2022 *2023 2024 CAGR (20-24)** |
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| Radiology PACS | 1,582.6 1,557.2 1,559.6 1,558.1 1,555.4 1,534.9 -0.4% |
Table 2.1 | |||
| -1.0% -1.6% 0.2% -0.1% -0.2% -1.3% |
World Market for All Products |
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| Standalone RIS | 255.9 246.4 240.7 232.0 223.7 211.7 -3.7% |
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| -2.5% -3.7% -2.3% -3.6% -3.6% -5.3% |
Revenue (US$m) | ||||
| Enteprise Imaging - Radiology |
459.8 489.4 531.5 607.0 670.8 730.7 10.5% |
2019 2020 2021 2022 2023 2024 CAGR (20-24) |
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| 15.7% 6.4% 8.6% 14.2% 10.5% 8.9% |
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| Standalone VNA | 135.3 139.2 146.6 147.0 151.3 157.4 3.1% |
Radiology IT 2,625.2 2,635.5 2,694.1 2,767.4 2,837.0 2,887.3 2.3% |
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| -6.2% 2.9% 5.3% 0.3% 2.9% 4.0% |
1.7% 0.4% 2.2% 2.7% 2.5% 1.8% |
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| Standalone Image Exchange | 69.5 68.5 67.0 63.3 61.3 59.9 -3.3% |
Cardiology IT 536.0 546.8 563.9 587.9 616.0 639.6 4.0% |
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| -1.6% -1.5% -2.1% -5.5% -3.2% -2.2% |
3.8% 2.0% 3.1% 4.3% 4.8% 3.8% |
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| Standalone Universal Viewer | 122.1 134.8 148.6 160.0 174.7 192.6 9.3% |
Advanced Visualisation 1,221.2 1,256.3 1,303.4 1,358.7 1,418.3 1,468.8 4.0% |
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| 12.1% 10.4% 10.3% 7.6% 9.2% 10.3% |
4.4% 2.9% 3.7% 4.2% 4.4% 3.6% |
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| TOTAL Market | 2,625.2 2,635.5 2,694.1 2,767.4 2,837.0 2,887.3 2.3% |
TOTAL Market 4,382.4 4,438.6 4,561.3 4,714.1 4,871.4 4,995.7 3.0% |
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| 1.7% 0.4% 2.2% 2.7% 2.5% 1.8% |
2.7% 1.3% 2.8% 3.3% 3.3% 2.6% |
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| Source: Signify Research *Forecast |
Jan-21 | Source: Signify Research Jan-21 |
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Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
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Services comprise bulk of market (61%) – Mach7 services approx 50% of revenue
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Most (86%) deployments are on-premise, cloud uptake still slow Capex revenue models still dominant Radiology IT sales (89%) over SAAS
| Table 6.2 | |||
|---|---|---|---|
| World Market for Radiology IT |
Product 2019 % |
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| Hardware 266.6 10% Services 1,595.9 61% Software 762.7 29% Total 2,625.2 |
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Company |
2019 | ||
| Rank | |||
| Fujifilm | 1 | ||
| GE Healthcare | 2 | ||
| Agfa Healthcare | 3 | ||
| Cloud / On-Prem 2019 % |
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Carestream |
4 | ||
| Philips Healthcare | 5 | Cloud 377.3 14% On-Prem 2,247.9 86% Total 2,625.2 |
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Siemens Healthineers |
6 | ||
| Change Healthcare | 7 | ||
IBM Watson Health |
8 | ||
| Sectra Medical | 9 | ||
| Business Model 2019 % |
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| Intelerad | 10 | ||
| Capex 2,347.1 89% SAAS 278.1 11% Total 2,625.2 |
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| Others | |||
| Total Market | $2,625.2m | ||
| Source: Signify Research |
Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
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Two sales models – Capital License (“Capex”) and Subscription License (“SAAS”)
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Capital License Subscription License
Activity Revenue Recognition Example Activity Revenue Recognition Example
License Granted (perpetual or 5 year term) License Granted (subscription)
Software is delivered 100% License Fee Eg $1M Software is delivered No revenue n/a
Professional Services Professional Services
Implementation phase % complete Eg $0.3M Implementation phase % complete Eg $0.3M
Annual Support (5 years) Subscription License (5 years)
Software is live Monthly (evenly) Eg $0.2M per annum Software is live Monthly (evenly) Eg $0.45M per annum
Total Contract Value (eg $2.3M) Total Contract Value (eg $2.55M)
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Annual Support + Subscriptions = Annual Recurring Revenue (ARR) Current run-rate = $11.7M p/a / 130 active customers Covers > 60% of operating expenditures
Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
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SAAS / Support Revenue
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- Strong SAAS revenue growth – 47% CAGR (last 3 years), 130 Customers
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12.0 M
10.0 M
8.0 M
6.0 M
4.0 M
2.0 M
0.0 M
FY 18 FY 19 FY 20 FY 21 (FCT)
Annual maintenance fees Subscription, Pay-per-use
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Forecast ~$10.5M-$11M FY2021
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In addition to the Annuity Revenue, Mach7 earns revenue from:
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Software License Fees recognised 100% at time of delivery ($10.4M FY2020, $3.1M FY2019)
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Professional Services Fees (Average $2.2M last 3 years)
Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
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Sales orders drives software fees and future annuity revenue
Highlights:
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Sales growth is continuing, despite COVID-19
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^
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$23.6M (TCV ) sales orders Q3 YTD – up 94% on last year. Sales orders include:
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Trinity ($5.3M) - Capital/Perpetual /7 yrs*
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Adventist ($8M) - Capital/Perpetual /5 yrs*
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HAHK ($3M) – Purchase Order
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Total 56 sales contracts/purchase orders
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High demand for Enterprise Viewing solution to enable teleradiology in COVID environment
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- “Land and expand” approach is working
^Total Contract Value (TCV) = Software fees, services, and annual support over contract duration *timing of revenue subject to site roll-outs (purchase order style contract)
Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
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Imaging Market
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The uncertainty and volatility brought on by the pandemic, hugely disruptive for the imaging IT market, is receding.
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There is pressure on imaging IT to deal with removing barriers for remote diagnosis for Radiologists.
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Heightened focus on IT healthcare spend generally will drive more opportunities for enterprise imaging solutions and Mach7.
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Continued consolidation among healthcare providers is anticipated – drives demand for integration software like Mach7
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Trade shows back to “in-person” which will accelerate purchasing decisions
Mach7 Specifically
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Purchase Orders to be received for Trinity Healthcare and Adventist Health as they roll out Mach7 solutions across FY2022
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Pipeline conversion is expected to accelerate as customers being to normalize their staffing levels and assign budgets
Mach7 Technologies – All information is proprietary and confidential unless otherwise specified
For more information, contact:
Thank you
Jenni Pilcher CFO, Mach7 [email protected]
Andrew Keys Investor Relations [email protected]
Registered Office: Tower 4 | 727 Collins Street Docklands, 3008
This presentation has been approved for ASX lodgment by the Company Secretary and CEO, Managing Director.