Corporate Presentation May 2010 1 EMIS Group Table of Contents - PDF document

healthcare without boundaries Corporate Presentation May 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

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 “Written by Doctors for Doctors” � Clear growth strategy - organic + acquisition � Dividend paying healthcare without boundaries 4

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

Current Products and Services Medical records Medical records Appointment booking Appointment Consultation mode Consultation mode Intelligent 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 Installation GP Call centre support Practices Maintenance Hardware Hardware Patient arrival screens Hardware Other Sales and Training Appointment recall screens Training Training 3 rd party 3 rd party software Patient kiosks Supporting GPs’ management of cradle to grave electronic health records healthcare without boundaries 6

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

Revenue Model � Average annual revenue per GP Practice of approximately £10,000 10000 10 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 – 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 EHR market share by country as at 31 December 2010 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

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) � Outcome: classed now as a failed IT programme � New policy: “ connect all ” rather than “ replace all ” � Conservative view – “Choosing their own software within a framework of interoperability” Andrew Lansley � New opportunity: EMIS Web � Focus on cradle to grave record � Connecting healthcare professionals � Delivering efficiency and cost savings � NHS ordered “familiarisation service” in 2010 healthcare without boundaries 10

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 - Revenue Model � 2012 illustrative average annual revenue per GP Practice of £13,000 13000 12000 11000 Software Licences £5,000 10 10000 00 0 90 9000 00 80 8000 78% Recurring 00 70 7000 Hosting and EMIS Web £3,500 00 60 6000 00 £ 50 5000 00 Support Services £300 40 4000 00 Other Recurring Income £1,400 30 3000 00 20 2000 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 – a UK-wide view GP Extended care Podiatry District nurses 156,694 staff 292,417 staff Health EMIS – 52.5% INPS – 20% Diabetes visitors Community Asthma GP GP GP GP GP GP GP GP GP Long term CVD conditions £425 p . a . OOH FTE seat Child health Physio iPHR Secondary care Cradle to grave EHR 922,443 staff 61.4m people in the UK Heart emergency AMU Coronary care Telehealth A&E Hospital pharmacy healthcare without boundaries 13

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) Assessment Unit Out of Hours GP 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 Department – Anti Coag Aintree Out Patient Weight Management Joint Injections 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

Strategy and Opportunity � Growth of existing business � i.e. Scotland � Upgrades � New products � Roll out of EMIS Web � Sale to other (non-GP) healthcare professionals � Conversion of current GP customer base over 2-4 year period � Replacement of legacy GP systems � Acquisitions - healthcare software and service providers healthcare without boundaries 15

Financial Summary � Growth business (despite NPfIT) 8 year sales history - UK GAAP 60.0 � High visibility of earnings 55.0 NPfIT 50.0 � c75% recurring revenues 45.0 � Long-term growth trend 40.0 � End user loyalty 35.0 � Stable and secure customer base 30.0 2002 2003 2004 2005 2006 2007 2008 2009 � Annual licence fees; quarterly invoicing mainly in advance 8 year EBITDA history - UK GAAP � Consistently strong cash generation 18.0 16.0 14.0 NPfIT 12.0 � Healthy balance sheet 10.0 8.0 6.0 4.0 2.0 0.0 2002 2003 2004 2005 2006 2007 2008 2009 healthcare without boundaries 16

Financials – Profit and Loss Account (all in £ millions) 2009 IFRS 2008 IFRS 2007 IFRS Year ended 31 December Turnover 57.7 55.4 48.5 EBITDA 20.1 10.1 7.0 EBITDA Margin 34.8% 18.2% 14.4% EBIT 15.8 5.9 5.1 EBIT Margin 27.4% 10.6% 10.5% � Growth in revenue driven primarily by increase in software licences / support fees � Strengthening EBITDA margin as costs reduce � Consistently profitable healthcare without boundaries 17