PRO MEDICUS LIMITED — AGM Information 2007

Nov 1, 2007

Pro Medicus – AGM 2007

Mel Ward – Chairman

==> picture [163 x 23] intentionally omitted <==

Page 1

Introducing

==> picture [188 x 426] intentionally omitted <==

� Pro Medicus Team

– Board

– Senior Management

– Auditor

==> picture [163 x 23] intentionally omitted <==

Page 2

Farewells

==> picture [188 x 426] intentionally omitted <==

� Philip Molyneux - Director

� Geoff Holden - CFO

==> picture [406 x 135] intentionally omitted <==

==> picture [406 x 134] intentionally omitted <==

==> picture [163 x 23] intentionally omitted <==

Page 3

Pro Medicus

==> picture [188 x 426] intentionally omitted <==

• Sustained growth since IPO in 2000

• 2006/07 another successful year

• Continued to strengthen Australian business

• Continued progress on international expansion

==> picture [163 x 23] intentionally omitted <==

Page 4

Pro Medicus

==> picture [188 x 426] intentionally omitted <==

• Revenue $13.03M , up 11.9%

� Profit after Tax 7.05M, up 15.3% � EPS 7.0c, up 16.4%

• Total Dividend for year 7c, up 27%

• � Strong Balance Sheet :

– Cash Reserves $11.1M

– No Debt

• A very sound position

==> picture [163 x 23] intentionally omitted <==

Page 5

Pro Medicus Dividend

• Final dividend: 3c normal + 1c special

• Interim dividend: 2.5c normal + 0.5c special

• 27% increase YOY reflects increased profit

� Special dividends reflect strong cash balance and reduced expansion risk.

==> picture [163 x 23] intentionally omitted <==

Page 6

PROMEDICUS Strategy

�	Best of breed systems	+ + +
�	Best support services	+ + +
�	Best value for money	+ + +
�	Retain contracts	+ +
�	Leverage contracts	+ +
�	New contracts	+

==> picture [163 x 23] intentionally omitted <==

Page 7

Pro Medicus Strategy

• Alliances

� Mergers and Acquisitions Offshore

� Develop offshore markets

+ +

??

+ + +

==> picture [163 x 23] intentionally omitted <==

Page 8

Pro Medicus Offshore Markets

==> picture [188 x 426] intentionally omitted <==

North American AGFA alliance strong Product development and extension has continued.

� AGFA Sales Team order pipeline growing � Good basis for long term relationship

==> picture [163 x 23] intentionally omitted <==

Page 9

Pro Medicus Share Market

==> picture [188 x 426] intentionally omitted <==

� Free float now 40%

� Liquidity and volatility improved

Aim to leverage digital operation and North American position as major platforms for growth

==> picture [163 x 23] intentionally omitted <==

Page 10

Pro Medicus

• Close knit Board and Management

• Thanks to Directors

• Congratulations to Management and Staff

• Hard work, enthusiasm, diligence

• Confident that we will see continued new opportunities and sustained growth

• Quality systems

• Strong Balance Sheet

• Long-term client relationships

• Balanced growth strategy

==> picture [163 x 23] intentionally omitted <==

Page 11

Pro Medicus – AGM 2007

Sam Hupert – Deputy Chairman. Co-Founder and Executive Director

==> picture [163 x 23] intentionally omitted <==

Page 12

Overview

==> picture [188 x 439] intentionally omitted <==

• Leading provider of IT solutions to private health market.

• Growing and profitable e-health offering

• Key player in rapidly expanding digital radiology market

• Sales in Australia US, Canada & UK

==> picture [163 x 23] intentionally omitted <==

Page 13

rds. Financials –Full Year 2007

==> picture [188 x 439] intentionally omitted <==

• Revenue $13.03 Million (+ 11.9%)

• Profit after tax of $7.05 Million (+ 15.3%)

• Overseas Revenue increased to $3.1M (+34%)

• Margins increase to 77.6%

• Cash Reserves $11.1 Million

• Debt free

==> picture [163 x 23] intentionally omitted <==

Page 14

Financials –Full Year 2007

==> picture [188 x 439] intentionally omitted <==

• Final dividend 3c/share fully franked

• Special dividend 1c/share

• Total dividend for year 7c/share fully franked (+27%)

==> picture [163 x 23] intentionally omitted <==

Page 15

Pro Medicus – Digital Imaging Integration

==> picture [499 x 427] intentionally omitted <==

==> picture [163 x 23] intentionally omitted <==

Page 16

Pro Medicus – Digital Imaging Integration

==> picture [523 x 264] intentionally omitted <==

==> picture [175 x 170] intentionally omitted <==

==> picture [61 x 18] intentionally omitted <==

----- Start of picture text -----

PACS
----- End of picture text -----

==> picture [301 x 119] intentionally omitted <==

==> picture [163 x 23] intentionally omitted <==

Page 17

Pro Medicus

Integrated Digital Radiology

==> picture [755 x 391] intentionally omitted <==

----- Start of picture text -----

HTTP
DICOM
Modality Worklists Internet/Promedicus.net
HL7
DICOM
DICOM HL7
Hospital [HIS/EMR]
Web Distribution
Voice Recognition
Radiologist Workstation
----- End of picture text -----

==> picture [163 x 23] intentionally omitted <==

Page 18

Pro Medicus – Digital Imaging Integration

“The tighter the integration – the greater the productivity”

==> picture [395 x 302] intentionally omitted <==

----- Start of picture text -----

40%
35%
30%
25%
20%
15%
10%
5%
0%
Level 1 Level 2 Level 3
----- End of picture text -----

• ↑ Level 1 – broker (industry standard)

• ↑ Level 2 – PME brokerless

• ↑ Level 3 – PME 3rd generation

==> picture [222 x 98] intentionally omitted <==

==> picture [163 x 23] intentionally omitted <==

Page 19

Digital Imaging 2007 - 2008

==> picture [193 x 438] intentionally omitted <==

• Increased sales of digital technology.

• Over 40 Sites and growing (up from 25)

• Market Leader with proven results

• Extremely well positioned for further sales.

==> picture [163 x 23] intentionally omitted <==

Page 20

Digital Imaging – 2007 - 2008

==> picture [193 x 438] intentionally omitted <==

• Market has reached “tipping point.”

• Increased integration capability – Intelerad PACS

• Opens new opportunities

• Doubling of number of digital integration sites in 2007/2008

==> picture [163 x 23] intentionally omitted <==

Page 21

Agfa US Deal

==> picture [781 x 475] intentionally omitted <==

----- Start of picture text -----

Page 22
----- End of picture text -----

Agfa US Deal The Imaging Centre Market

==> picture [172 x 366] intentionally omitted <==

==> picture [567 x 323] intentionally omitted <==

----- Start of picture text -----

U.S. Imaging Sales
Zones
A
A
K
K
M
W M
A M N VV EE
T D M TTN
O N WW N HM
R DI W DS IA II MIMI 169 PAPA Y 81 CTNAARI
C NV UT Y C NE K M 121 IL INNI 162 KOH WV 161 V 161 VAMD 122360 DEJ STAT EFLNYCA COUNT 383360293
293 A O S O TTTY A NC T X 202
A N O A NNN SS PAOH 169162
H Z M K R M A G CC NJ 161
I MD 122
S L A IL 121
202
TX L CT 81
F
A 383
D
L
P
R
R
----- End of picture text -----

==> picture [163 x 23] intentionally omitted <==

Page 23

Agfa US Deal Why Imaging Centre Market

==> picture [172 x 360] intentionally omitted <==

• Similarities to Australian Private practice

• Billing/Practice Management focused.

• Legal requirement to store images

• On the cusp of going digital

• Key growth market

==> picture [163 x 23] intentionally omitted <==

24

Page 24

Agfa US Deal Agfa US Deal – Progress Time line

==> picture [175 x 371] intentionally omitted <==

• 1st shown at RSNA in December 2004.

• Key reference sites installed and working July 2005

• Clinical validation August 2005.

• Commercially released throughout the US – September 2005.

• Strong demand for the product – September 2005

• to now

==> picture [163 x 23] intentionally omitted <==

25

Page 25

Agfa US Deal Agfa US Deal – Progress Time Line

==> picture [175 x 371] intentionally omitted <==

• New Imaging Center sales force to supplement Agfa sales organisation - October 2005

• 1st phase of knowledge transfer to Agfa – May 2006.

• Agfa commencing sales, marketing and installations in the US – July 2006 onwards

• Agfa has scale in the US to achieve large footprint in US market.

==> picture [163 x 23] intentionally omitted <==

26

Page 26

Agfa US Deal Agfa US Contract - Timing of Revenue

==> picture [175 x 371] intentionally omitted <==

• Revenue from deal commenced in 2nd half 2006

• Building in 2007 through into 2008 with bias to 2nd

• half following RSNA

• Service revenue to build 2007 onwards

==> picture [163 x 23] intentionally omitted <==

27

Page 27

Agfa US Deal Agfa US Deal – Progress Time Line

==> picture [175 x 371] intentionally omitted <==

• Diverse range of sites installed in key US radiology markets

• Product seen as differentiator due to strong Practice Management/Billing focus.

• Excellent referral base on which to build further sales.

==> picture [163 x 23] intentionally omitted <==

28

Page 28

Company Highlights – First Half 2007

==> picture [189 x 439] intentionally omitted <==

• Significant progress with Agfa North American deal.

• Specialised Imaging Centre team with new COO and Solutions Manager.

• Fully integrated voice recognition and advanced billing expands product offering.

• Improved “strike rate” - increasing market acceptance

==> picture [163 x 23] intentionally omitted <==

Page 29

Company Highlights – AltaPACS Canadian Deal

==> picture [595 x 438] intentionally omitted <==

==> picture [189 x 439] intentionally omitted <==

==> picture [163 x 23] intentionally omitted <==

Page 30

Canada - AltaPACS Canadian AltaPACS Update

==> picture [193 x 421] intentionally omitted <==

• $2.6 million upfront licence fees

• 1st site installed mid December 2004

• 10 sites installed in May 2005

• All 28 sites now installed.

==> picture [163 x 23] intentionally omitted <==

31

Page 31

Canada - AltaPACS Canadian AltaPACS Update

==> picture [193 x 421] intentionally omitted <==

• Over $1Million in revenue

• Recurring support revenue

• New licence sales - expansion within group

• New products eg EMPI – technology can be used in other countries.

==> picture [163 x 23] intentionally omitted <==

32

Page 32

Integration Benefits Pro Medicus – Further Overseas Opportunities

==> picture [193 x 421] intentionally omitted <==

• Increasing % of revenue coming from overseas

• Leveraging Agfa’s presence in North America frees up PME resources

• Products successfully installed in US, Canada and UK - three of the world largest markets

• Interest in other PME products for these markets

==> picture [163 x 23] intentionally omitted <==

Page 33

Integration Benefits Pro Medicus – Further Overseas Opportunities

==> picture [193 x 421] intentionally omitted <==

• Increasing % of revenue coming from overseas

• Leveraging Agfa’s presence in North America frees

• up PME resources

• Products successfully installed in US, Canada and

• UK - three of the world largest markets

• Interest in other PME products for these markets

==> picture [163 x 23] intentionally omitted <==

Page 34

Pro Medicus – David Chambers CEO

==> picture [223 x 417] intentionally omitted <==

• Head of Agfa Healthcare in Asia Pacific from 20002004

• Instrumental in Pro Medicus/Agfa alliance announced in 2001

• Head of Agfa US Sales and marketing organisations

• from 2004 to 2007

• Has a wealth of industry experience in Australia, US and other potential PME markets

• Has worked closely with Pro Medicus over the past six years

==> picture [163 x 23] intentionally omitted <==

Page 35

What experience and credentials do I bring?

• Over 25 Years experience in HealthCare

• Formal technical and business qualifications

• 4 Years Director Sales & Marketing, Australia & New Zealand, Bayer Diagnostics

• 10 Years Sales and General Management at E.Merck

• General Management, Sales, Marketing and Services experience

==> picture [163 x 23] intentionally omitted <==

Page 36

What experience and credentials do I bring?

• 3 years Vice President Sales & Marketing, Agfa HealthCare North America

• 4 years General Manager Agfa HealthCare Asia Pacific

• 5 years General Manager Agfa HealthCare Australia & New Zealand, and Director of Agfa Australia.

• Strong connections in Australia, U.S.A., Canada, Europe and Asian markets

• Designed and executed successful growth strategies in International Health Care markets

==> picture [163 x 23] intentionally omitted <==

Page 37

A solid foundation underpins accelerated growth path

• Our business has a solid basis in Australia

• International footprint now established in US, Canada and U.K.

• Have achieved strong export growth in 2007

• Our strike rates are trending upwards

• We have tremendous Industry knowledge

• Ready for strides forward in revenues and profitability

==> picture [163 x 23] intentionally omitted <==

Page 38

Commencement of a step-wise process

• Re-validate Vision and Mission

– Present to future state

• Strategy selection

– Identify and size business growth options

– Prioritize our best opportunities

• Devise go-forward action plans

• � Organizational alignment

– Organizational design and alignment � Management and control mechanisms

– Performance metrics – Board planning approvals

==> picture [163 x 23] intentionally omitted <==

Page 39

Key supporting Planks Required for our Step Change

1. Vision

We have a compelling vision and a solid strategy

1. Awareness

2. A critical mass of people are aware of and on-board with the transformation

3. Diagnosis

What needs to be changed and why is known

1. Plan

We have the expertise to put together a detailed ‘step change’ plan

1. Support

We have a body of support amongst our team and our alliances to support implementation.

==> picture [163 x 23] intentionally omitted <==

Page 40

Pro Medicus Strategy

==> picture [251 x 423] intentionally omitted <==

What is our strategic intent?

==> picture [163 x 23] intentionally omitted <==

Page 41

A step change transitioning towards new products and new markets

==> picture [626 x 347] intentionally omitted <==

----- Start of picture text -----

new
existing
new
Products
existing
----- End of picture text -----

Markets

==> picture [163 x 23] intentionally omitted <==

Page 42

Our traditional playing field

==> picture [626 x 379] intentionally omitted <==

----- Start of picture text -----

Promedicus
today
RIS/Australia
new
existing
Markets
new
Products
existing
----- End of picture text -----

==> picture [163 x 23] intentionally omitted <==

Page 43

Accelerate the reach of our solutions to International markets

==> picture [626 x 347] intentionally omitted <==

----- Start of picture text -----

U.S.A.
Agfa
Canada
yesterday
U.K.
Others
RIS/Australia
new
existing
new
Products
existing
----- End of picture text -----

Markets

==> picture [163 x 23] intentionally omitted <==

Page 44

Migrate our knowledge to new related products and technologies

==> picture [626 x 347] intentionally omitted <==

----- Start of picture text -----

New Applications
U.S.A.
Agfa Canada
yesterday U.K.
Others
RIS/Australia Early Development
new
existing
new
Products
existing
----- End of picture text -----

Markets

==> picture [163 x 23] intentionally omitted <==

Page 45

New products, new markets

==> picture [626 x 379] intentionally omitted <==

----- Start of picture text -----

Orthopedics?
New Applications
Cardiology?
Patient Records?
U.S.A.
Agfa Canada
yesterday U.K.
Others?
Australia
new
existing
Markets
new
Products
existing
----- End of picture text -----

==> picture [163 x 23] intentionally omitted <==

Page 46

Ongoing integration of our IT offering

==> picture [626 x 379] intentionally omitted <==

----- Start of picture text -----

Orthopedics?
New Applications
Cardiology?
Patient Records?
U.S.A.
Canada
Agfa
U.K.
yesterday
Others?
Australia
new
existing
Markets
new
Products
existing
----- End of picture text -----

==> picture [163 x 23] intentionally omitted <==

Page 47

E Health Platforms… High Level Strategic Direction

==> picture [657 x 336] intentionally omitted <==

----- Start of picture text -----

What businesses underpin our growth?
•
RIS
Hospitals Physicians •
PACS/Teleradiology
Ambulatory Office
•
Ambulatory vs. Acute Care
•
Large, medium or small Hospitals
•
Decision Support, CAD
•
Orthopaedics
•
ePlatform Cardiology PACS
•
E-prescription
•
EMR/HER/PPR
•
Web Portals
•
INSURANCE PATIENT Reporting
Government Community •
Which geographies?
----- End of picture text -----

What businesses underpin our growth?

Links will increasingly be established between all levels to get the right information to the right person at the right time

==> picture [163 x 23] intentionally omitted <==

Page 48

Strategic Stance varies depending on Market

� Australia � U.S.A.

� Consolidate � High Growth

� Canada

• Moderate Growth

� U.K.

• Moderate Growth

� Selective Targeting

� Asia � � Europe � Opportunistic

==> picture [163 x 23] intentionally omitted <==

Page 49

==> picture [279 x 502] intentionally omitted <==

U.S. Imaging Centers Let’s look at the landscape

==> picture [163 x 23] intentionally omitted <==

Page 50

Adoption in Imaging Centres market grows in U.S.A.

• Imaging Centre market growth ~10-15%

• Consolidation of Hospitals and imaging centres in to distributed environments

• Drive for efficiency gains due to downward pressure on reimbursement

• IT seen as the ‘enabler’ of change

• Market consolidating and integration of disparate centres under one central management is the growing trend

• No established market leadership position, neither client or vendor

==> picture [320 x 259] intentionally omitted <==

----- Start of picture text -----

7000
6070
6000 5752
5450
5163
5000 4773
4159
4000
DI's
3000
2000
1000
0
2001 2002 2003 2004 2005 2006
----- End of picture text -----

==> picture [163 x 23] intentionally omitted <==

Page 51

Agfa US Deal Top Ten Trends – Improved work-flow No.1!!

1. Improving departmental workflow

2. Adding/improving web access to images

3. Increasing imaging procedure volume

√ √ √

1. Network security

2. Adding advanced visualization

3. Managing multi-slice CT images

4. Improving the speed and bandwidth of the network.

5. Buying a multi-slice CT scanner.

6. Adding enterprise storage.

10. Buying a Radiology Information System

Health Imaging & IT, January 2006

==> picture [163 x 23] intentionally omitted <==

Page 52

Cornerstones of our Growth Strategy

==> picture [193 x 421] intentionally omitted <==

�

�

�

Digital Imaging growth in Australia

Build on customer base in US, Canada and U.K.

Seek out new product opportunities

Develop and secure new alliances and markets

==> picture [163 x 23] intentionally omitted <==

Page 53

Conclusion

==> picture [251 x 423] intentionally omitted <==

This company is well positioned to move in to a new growth phase

==> picture [163 x 23] intentionally omitted <==

Page 54

Pro Medicus – AGM 2007

==> picture [710 x 427] intentionally omitted <==

==> picture [163 x 23] intentionally omitted <==

Page 55