PRO MEDICUS LIMITED — AGM Information 2008

Nov 13, 2008

We offer a Partnership into the Future

Annual General MeetingNovember 14th2008

PROMEDICUS

•Mel Ward - Chairman

Board Members

• Mel Ward Chairman
• David Chambers CEO & Managing Director
• Sam Hupert Deputy Chairman & Executive Director
• Anthony Hall Executive Director
• Peter Jonson Non-Executive Director
• Peter Kempen Non-Executive Director

Officers

• Sandy McKendrick Company Secretary
• Danny Tauber Chief Operating Officer
• Clayton Hatch Finance Manager
• Stuart Painter Ernst and Young Auditor

Pro Medicus – In Perspective

• •2007/08 another successful year
• •8th year of sustained growth
• • Continued operation in Australia, and North America and the U.K.

Pro Medicus – 2007/08 Highlights

• •Record revenue of $15.34 million – up 17.8%
• •Net profit of $7.9 million – up 12.5%
• •Most profitable year in company's history
• •3.25c per share final dividend
• •Total dividend for year of 6.0 cents fully franked
• •Cash reserves increase 16% to $12.9 million
• •Company remains debt-free

2007/08 - The Year in Review

• • Australia Digital Imaging sales reach 'tipping point'
• • Continued growth of e:health platform which at 10% growth reaches 3.52 M transactions
• Well positioned in both local and overseas markets
• • New Agreement with Agfa-Gevaert in North America
• • Building platform for future growth through investment in human capital and R&D

Pro Medicus – Looking Forward

• • World-wide – all countries and companies face more volatile and uncertain conditions
• • Share market and exchange rate will present challenges
• • Maturing market and volatility in Australia validates decision to go offshore
• •Our strategy still sound

Pro Medicus - Strategy

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Pro Medicus - Share Market

• • Financial crises heralds fears of recession and represents some unforeseen challenges
• • Debt free balance sheet with strong cash reserves provides capacity to weather storm
• • Healthcare still considered largely recession proof
• • Strong Australian core business and established position
• • Digital integration and North American position remain keys to future growth
• •PME remains healthy with positive outlook

Pro Medicus Dividend

• • Final dividend 3.25 cInterim dividend 2.75 c
• •No special dividend paid
• • Foreshadowed last year the benefit of finding a good M&A candidate particularly in North America
• • This opportunity represents the best use of your reserves

M&A - Activities

• • Have identified and studied a number of acquisition opportunities in North America and entered into discussions
• • Ailing economies and downward movement in exchange rates renders conditions adverse to goforward
• •Deferred action until conditions improve
• • Costs incurred on M&A activities have been expensed in the year
• • But cooperating actively with companies in the market

Pro Medicus – Looking Ahead

• • Competition will be tough, and economic seas may be rough with deferred capital spending
• • Well placed to weather a difficult economic climate
  • •Strong Balance Sheet
  • •Cash reserves at $12.89 M
  • •Long-term client relationships
  • •Balanced growth strategy
  • •Healthcare typically recession proof

Pro Medicus – In Summary

• • Board and Management (re-shaped)
  • •Thanks to Directors
• • Congratulations to Management and Staff
  • •Creativity, enthusiasm, hard work

PROMEDICUS

• David Chambers CEO

A solid foundation underpins our company's well defined growth path

• •Our business has a solid basis in Australia
• • International footprint well established in U.S.A., Canada and U.K.
• • 25 years Industry knowledge and experience of Radiology Information Systems
• • Proven in some of the largest practices in the world
• • Focused not only on the practice of Radiology but also with expansion of e:health
• •In partnership with large International players

2007/08 Business Highlights

• •Record revenue of $15.34 million – up 17.8%
• •Net profit of $7.9 million – up 12.5%
• • Ongoing successful RIS placements in U.S., Canada and the U.K.
• • New Agreement with Agfa-Gevaert Limited in U.S.A.
• •Forging new strategic alliances

2007/08 Australian Highlights

• Revenue increased by 33.1% from $9.4M to $12.5M
• 'Tipping point' reached with 125 practices adopting PME digital technology up from 40 last year
• New projects with other PACS vendors yields results
• Success in Hospital market e.g. St.VincentsPrivate, Mater in Sydney, Cabrini in Melbourne
• 10% growth in number of doctors as registered users of promedicus.net (to 28,000)

2007/08 North America Highlights

• • North American revenues impacted by:
  • •Currency impact
  • •Agfa 'tail off' effect
• •New agreement signed with Agfa Gevaert
• • Establishment of PME presence in North America
• •First 'direct' project successfully completed
• • Agfa continue to quote our products and offer up opportunities
• •Other PACS companies offer up collaboration

New North American Business Model

• • Allows PME to focus on out-patient imaging centre market
• • Satisfies clients requests for more direct contact with PME
• •Opens door for other products like e:health
• •Leverages PME's rapid implementation model
• • Addresses other markets segments e.g. orthopedics and cardiology
• • Allows collaboration with other PACS vendors –broadens addressable market

What are the benefits?

• • Continue to work with Agfa and be their preferred RIS for Imaging Centers
• • Bring PME knowledge and track record into a direct client relationship placing us in drivers seat
• • Company will now get full mark-ups, but costs of establishment
• • Retain access to some of Agfa's most highly skilled and knowledgeable staff
• • Growth will slow but momentum to build over next 12-18 months with some investment

USA & Canada Resources & Client Sites

US SitesCanada SitesPME resources

How to Build Business* - U.S.A.

More than half (53 percent) of survey respondents see adding or providing remote access to clinical images and information as the No. 1 reason to gain physician mindshare and referrals.

That goes hand in hand with just about half (49 percent) who rank improving report/image turn-around time as the next most important way to earn referrals.

	TOP 10 CLINICAL IT System Purchases
	1 Radiology information system		6 HIS
	2 Cardiology PACS		ED information sys
	Badiology PACS		8 Nuclear medicine P

Imaging Center market - highest growth

Source: Frost & Sullivan

Mantra: "It's about speed, scalability, stability and yoursuccess: all informed by the key attribute of support"

• • Our deep understanding of the practice of radiology is placed at the disposal of our clients to deliver better clinical and business outcomes
• • Our clients enlist a team that not only knows the solution but also understands their business.
• •With unrivalled responsiveness and support
• • Experience built from a diverse range of more than 400 practices world-wide:
  • •Imaging Centres
  • •Hospitals
  • •Specialist Centres

Specialist experience with large groups

• Virginia Based integrated healthcare group with 40 outpatient imaging centres

Canada

• Calgary based diagnostic imaging group with 28 imaging centre sites

Australia

• Australia's largest private radiology group with 170 diagnostic imaging centre sites

United Kingdom

• Private Health Care Group with 30 imaging centre sites across England

Building a platform for future growth

• • Establishment of Pro Medicus own presence in North America.
  • •Business now registered in Delaware
  • •Offices established in New Jersey
• • Investment in new people and infrastructure
  • •Sales
  • •Implementation
  • •Support
• • Pursuing major development program aimed at delivering new technology platform

Transfer our knowledge to new related products and markets

New products, new markets

Products

Markets

Development Update

• • Delivered new capabilities into US product
  • •integration of 3rd party billing modules
  • • integration of leading US electronic medical record (EMR) product.
• • R&D effort
  • •Ongoing build up of core competencies.
  • • underpins future by transitioning products to new technology platform.
  • • cornerstone for future growth in local and overseas markets.

• • Healthcare a defensive position - Governments continuing to reduce Healthcare costs through technology
• • Costs in US Dollars will be offset by future earnings also in US currency
• • Up-front costs offset by assistance in logistics and channel support from Agfa
• • Infrastructure costs low in start up phase and well under control through sensible containment measures
• •Strong balance sheet with cash in bank
• •Well positioned for M&A when markets stabilise

Pro Medicus Outlook

• •Have been travelling well
• •We are in a transition period
• • Further potential remains in Australia but market is maturing
  • •U.S. is still the key to future growth
• •RSNA in December is our primary launch pad
• • Have opportunity hopper, but must close sales and build momentum
• • FY 2008/09 – a year of re-investment to build and bridge a platform of success for the future

We offer a Partnership into the Future

Radiology Information Solutions

CEO Incentive Scheme

• •2008 /09 a year of transition
• •Emphasis placed on scaling company for growth
• •Performance parameters aligned with shareholders interests
• • Building company for minimum 3 x growth
  • •EPS
  • •Share price accretion
• •Renewable agreement