Analyst Presentation 29 March 2010 1 EMIS Group Table of Contents - PDF document

healthcare without boundaries Analyst Presentation 29 March 2010 1

EMIS Group – Table of Contents Page EMIS Group - Presentation Team 3 Investment Opportunity 4 Company Background and History 5 Current Products and Services 6 Products and Services – 2009 Income Breakdown 7 Revenue Model 8 EMIS – The Market Leader 9 The Healthcare IT Environment 10 EMIS Web – The Opportunity 11 EMIS Web – Revenue Model 12 EMIS Web – In Action 13 EMIS Web – Liverpool PCT Roll-out 14 Strategy and Opportunity 15 Financial Summary 16 Financials – Profit and Loss Account 17 Financials – Balance Sheet 18 Financials – Cash Flow 19 Summary 20 Appendices 21-29 healthcare without boundaries 2

EMIS Group – Presentation Team � Sean Riddell, Chief Executive, 45 BSc in Psychology – 20 years’ experience of healthcare IT – Joined EMIS in 1989 (CEO since 2006) – � Phillip Woodrow, Finance Director, 62 Chartered Accountant – Baker Tilly 1965-2008 (Partner since 1972) – Joined EMIS in April 2008 as Finance Director – healthcare without boundaries 3

EMIS EMIS has been delivering healthcare to patients since 1987.

Investment Opportunity � Trusted, market-dominant healthcare software business � Profitable and highly cash generative � 20+ year track record of organic growth � High visibility of earnings with substantial recurring revenues � History of successful product development � Experienced management team � Clear growth strategy - organic + acquisition “Written by Doctors for Doctors” � Dividend paying healthcare without boundaries 4

EMIS award win EMIS named best technology supplier of the year 2009 in the UK IT industry awards.

Company Background and History � Established in 1987 � Based in Yorkshire � Canadian operations established 2005 � 774 employees � UK market share of 52% � 2009 turnover of £58m; £15.8m EBIT* � Strong cash conversion * IFRS healthcare without boundaries 5

EMIS PCS “ EMIS has made the data sharing process simple. Feedback from the practices has been excellent.” S ue Manifold, Midway Medical Cent re

Current Products and Services Medical records Appointment booking Consultation mode Intelligent prescribing Software Licences Decision support c13 million patient records Installation in data centres Call centre support CfH accredited (PCS WAN) Support Hosting Maintenance Services GP Practices Hardware Patient arrival screens Hardware Other Sales and Appointment recall screens Training Training 3 rd party software Patient kiosks Supporting GPs’ management of cradle to grave electronic health records healthcare without boundaries 6

EMIS Access Over 2,000 practices are now actively using EMIS Access online services.

Products and Services – 2009 Income Breakdown Percentage of Recurring Revenues UK Revenue by Product/Service Software 6% 6% Licences – 45% 25% Support Recurring Services – 27% 16% revenues – £42.7m 45% Hardware sales Other – £14.5m and Training – 16% 75% Total - £57.2m Hosting – 6% 27% Other – 6% Gross Margin – £48.1m 95% Recurring £40.4m £7.7m Other 53% 0% 50% 100% healthcare without boundaries 7

EMIS Access In December 2009, 500,000 patients logged in to EMIS Access.

Revenue Model � Average annual revenue per GP Practice of approximately £10,000 10 10000 00 0 90 9000 00 80 8000 00 Software Licences £4,700 70 7000 00 75% Recurring 60 6000 00 £ 50 5000 Support Services £1,100 00 40 4000 00 Other Recurring Income £1,700 30 3000 00 2000 20 Hardware Sales and Training £1,600 00 25% Non-recurring 10 1000 00 Other Sales £900 0 64% of customers have been with EMIS for >10 years healthcare without boundaries 8

EMIS Access Over one million repeat prescriptions requests were submitted online using EMIS Access July - December 2009.

EMIS – The Market Leader � 39 million Electronic Patient Records on EMIS’ platform � Further opportunities for market share expansion: � Scotland / legacy system share erosion / PCT driven consolidation Wales EMIS Scotland InPS iSoft TPP Northern Ireland Other England 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 (Allocation of competitor data estimated) healthcare without boundaries 9

EMIS Access “ It has reduced the pressure on our reception staff and given patients new services at their fingertips. It’ s a win-win . ” Malcolm S canlan, Windmill Healt h Cent re

The Healthcare IT Environment � The NHS National Programme for IT / Connecting for Health � Objective: national care record service – single, centralised patient record � Method : ruthless standardisation – “rip and replace” � Focused on hospital IT as the solution (not cradle to grave record) � Two LSPs withdrawn � Well documented issues surrounding delivery of LSP systems � £500m spending cuts for NPfIT � Outcome: classed now as a failed IT programme � New policy: “connect all” rather than “replace all”* � New opportunity: EMIS Web � Focus on cradle to grave record � Connecting healthcare professionals � Delivering efficiency and cost savings � NHS ordered “familiarisation service” in 2010 *NHS – Informatics Planning 2010/2011 healthcare without boundaries 10

EMIS PCS Enterprise A total of 52 EMIS PCS Enterprise hosted systems host data for 2.9 million registered patients.

EMIS Web – The Opportunity � Upgrade our existing GP practices in England to EMIS Web � NHS accreditation for GP use expected H2 2010, growth to be reflected in 2011 � Convert non-EMIS GP practices � Penetrate new areas of NHS � Benefits • Shared cradle to grave record • Reduces waiting times • Saves admin time – cost saving • Reduces risk of errors – LIFE SAVING � Successful roll out to date • Liverpool – minor surgery wait times cut from 9 months to 1 day in some cases • Gateshead – primary care records of 206,000 patients accessible by out of hours clinicians • Tower Hamlets – physio team saving 7 admin hours per week EMIS Web represents the future of healthcare software healthcare without boundaries 11

EMIS Web EMIS Web now contains c13 million patient records.

EMIS Web - Revenue Model � 2012 illustrative average annual revenue per GP Practice of £13,000 13000 12000 11000 £5,000 Software Licences 10000 10 00 0 90 9000 00 80 8000 78% Recurring 00 70 7000 Hosting and EMIS Web 00 £3,500 60 6000 00 £ 50 5000 00 Support Services £300 40 4000 00 Other Recurring Income £1,400 30 3000 00 2000 20 00 Hardware Sales and Training £2,000 22% Non-recurring 10 1000 00 Other Sales £800 0 EMIS Web = incremental revenue opportunity healthcare without boundaries 12

EMIS Web “ The physiotherapy admin team is saving seven hours each week thanks to EMIS Web.” Mark Caulfield, NHS Tower Hamlet s

EMIS Web – In Action Diabetes Patient Before EMIS Web Extended Primary Care Contact team £425 per Limited electronic information flow, slow and costly GP seat pa Specialist Nurse After EMIS Web Patient Record Dietician Psychologist Real time, multidirectional, cost effective flow of information Diabetic Podiatrist Pharmacist Specialist healthcare without boundaries 13

EMIS Web Patients of the Liverpool minor surgery service have seen waiting times slashed from nine months to less than one day in some cases.

EMIS Web – Liverpool PCT Roll-out COPD End of Life Emergency Care Diabetes Heart Failure Cancer North Mersey Clinical Pathways – spanning numerous Health and Social Care Services Liverpool PCT Outside of Hospitals Services – Primary & Community Secondary Care Services KEY AED Diversion – Heart Emergency Royal Liverpool Centre Minor Surgery Walk-In Installed Centres AED Diversion – ABPI (April Go Surgical Underway Alder Hey Live) Out of Hours GP Assessment Unit Planned Emergency Dermatology Treatment Acute Medical Unit Department – (April Go Live) Rooms Royal Liverpool Multidisciplinary PCI Clinic Gynaecology IV Therapy Teams Emergency (April Go Live) Department – Coronary Care Community Alder Hey Matrons ENT In Patient Emergency MMT Anti Coag Department – Aintree Out Patient Weight Joint Injections Management Emergency Renal Pharmacy Feed Child Health (V&I) Messaging EMIS: LV/PCS InPS iSOFT and/or Viewing Social Care / SAP GP System Primary Care Interfaces Mental Health healthcare without boundaries 14

EMIS Web Waiting times for ultrasound appointments have been slashed from nine months to two weeks because of EMIS Web streamlined appointment booking.

Strategy and Opportunity � Growth of existing business � Scotland � Upgrades � New products � Replacement of legacy GP systems � Roll out of EMIS Web � Sale to other (non-GP) healthcare professionals � Conversion of current GP customer base over 2-4 year period � Addition of current non-EMIS GPs � Acquisitions - healthcare software and service providers � Overseas - Canada provides foothold in North American market healthcare without boundaries 15