PRO MEDICUS LIMITED — Investor Presentation 2017

Mar 13, 2017

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Investor Presentation March 2017

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Pro Medicus (ASX:PME)

Healthcare IT company specializing in Enterprise Medical Imaging and Radiology Information System software.

Leading edge products, growing presence globally.

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EU Headquarters / R&D
Berlin, Germany
US Headquarters
San Diego, CA
Group Headquarters
Melbourne
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Over 40 Software Engineers

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FY17 Half Year Results

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• Profit after tax $4.8M - up 63.1%

• Underlying NPAT – up 44.7%

• Margins continued to increase

• Cash reserves $20.28M – up $3.17M

• Dividend 1.5c Share (un-franked)

• Company debt free

• Strong balance sheet

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First Half FY17 in review

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• Future contracted revenue > $115M/5 years

• US footprint continues to grow

• Implementations on/ahead of schedule

• Visage RIS – increased market lead

• Pipeline continues to grow

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PME Ltd

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Visage 7 * Visage RIS Pro Medicus.net Product Suite OEM

Visage RIS – Market Leader

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• Technology is leading edge

• Feedback from customers positive

• New clients purchasing Visage RIS & PACS

• Transition of user base nearing completion

• Large scale rollouts > 1,500 users on 1 system

• Company leader in field

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RIS - Australia

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• HIS (Primary) - one of the largest diagnostic imaging service providers

• Visage RIS to be deployed in 141 practices

• 5 year transaction based agreement

• Upside as HIS grows

• Repositions PME as clear market leader

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Leading Edge Product Set – Visage Imaging continues to be Number 1 in Speed, Functionality, Scalability

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Massive data explosion

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• Higher image density - CT leaps from 64 slices to 256 and now 640

• 3.0T MRI – much larger dataset than 1.5T

• Functional Imaging e.g. PET scan often > 1.5 to 2 gigabytes

• Digital Breast Tomosynthesis (DBT) files can be over 4 to 6 gigabytes

• Prior examinations multiply the problem

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Solution - Visage 7.0 Streaming Technology

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“Deconstructed” PACS – VNA/EMR

Radiology Urology Gastroenterology Oncology Cardiology Neurology

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Electronic Medical Record (EMR)

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• Mandated in US Hospitals by end of 2018

• Consolidates all hospital data – clinical and financial

• 90% of EHR is imaging data (by volume)

• Need all imaging data in one repository

• Driving adoption of VNA

• Need for a single Viewer for all images

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Solution – Visage 7.0 Viewer”

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VNA use surging – VNA's projected to store 31% of new imaging studies worldwide by 2016 InMedica, May 2012 Of late, imaging IT has been a "barren" field of technology innovation Reiner & McKinley, JDI, June 2012

No single vendor will do Enterprise Imaging 2012, KLAS Image sharing most important capability for institutions that have adopted VNA Katalus Advisors, June 2012 3D imaging into the workflow of the radiology department effectively Advanced Visualization 2011, KLAS

More providers forming Enterprise Imaging Strategies , w/goal of getting "the right image to the right place at the right time" KLAS, July 2012

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North American market

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• PACS market estimated at > US$2 billion pa and growing

• Paradigm shift to “deconstructed PACS” – best in breed approach

• Market fragmented - in process of consolidating

• Visage 7.0 – proven, market leading technology

• Company ideally positioned

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Sales - 12 months

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April 2016

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July2016

Total Sales = $61M

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April 2016

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March 2017

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Fast Track Implementation

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• Proven fast track methodology

• 1/3 the time of industry norm

• Delivers huge savings for client

• Strategic advantage - key differentiator in the market

• Frees implementation staff for other jobs

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US Implementations

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• Busiest period in company’s history

• 2 very large scale implementations

• successfully completed in past month

• Increased transaction revenue

• Rapid growth in number of reference sites

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Proven Results

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• Significant IT and infrastructure savings

• Unparalleled radiologist efficiency

• Greater clinical accuracy

• Improved physician engagement

• Delivers superior value proposition

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Growing Recurring Income Stream – Operational (Transaction) Model

• Alternative to capital model

• Favoured in recent US contracts

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• Now used in RIS contracts in Australia

• Model based on guaranteed minimums

• Contracted minimums increase to > AUD $115 million

• Upside as client examination volumes grow

• Annuity style revenue stream – greater predictability

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Margin Expansion

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• Highly scalable offering

• No capex (HW) – SW only model

• Training & Installation – charged as professional services

• Relatively fixed cost base

• Margin continues to grow as footprint increases

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US Pipeline

• Multiple opportunities at various stages of cycle

• New opportunities since recent wins

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• No opportunities lost since recent announcements

• Opportunities in both Private and Large Enterprise markets.

• Network effect from recent high profile wins

• Increasing number of opportunities coming to market

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Growth Strategy

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• Transaction growth (above minimums) from existing clients

• Expand current footprint via new deals

• Margin expansion with future contracts

• Continue to build out pipeline

• Extend to other markets

• Leverage R&D capability to introduce new products

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New products - Enterprise Imaging

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• Single viewer for all images in the medical record (EMR)

• Radiology/Cardiology (DICOM format)

• Non radiology - reflected light - hi res photos & video

• Visage ideally suited – any image streamed anywhere

• Significantly increases Visage value proposition

• Additional future revenue stream

• Growth opportunity within existing contracts

Image courtesy of Gray Consulting

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Growth Strategy

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• Transaction growth (above minimums) from existing clients

Expand current footprint via new deals Margin expansion with future contracts Continue to build out pipeline Extend to other markets

• • • •

• Introduce new products

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Enterprise Imaging

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Summary

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• Unique market position

• Leading edge technologies

• Proven implementation & support capability

• Delivers measureable financial benefits

• Meaningful improvement in clinical outcomes

• Unparalleled value proposition

• Looking to further leverage R&D/Research capability

• Well positioned to deliver new technologies

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