Global He alth L td - AGM 2017 Pr e se ntation by CE O
Go o d a fte rno o n la die s a nd g e ntle me n 5 th Ye ar of Pr ofitable Ope r ation Ove r the 2017 F ina nc ia l Ye a r, we c o ntinue d o ur fo c us o n pro fita b le o pe ra tio ns re po rting a Ne t Pro fit a fte r T a x in e xc e ss o f $1.7M. T he re we re sig nific a nt re sta te me nts in the 2017 a c c o unts de sc rib e d furthe r in Se c tio n v o f No te 1 in o ur pub lishe d Annua l Re po rt. T he re ve nue a nd e xpe nse re sta te me nts in the a udite d June 2017 a c c o unts a nd prio r ye a r a djustme nts re la te to the re c e ipt a nd re c o g nitio n o f $5M in re so lutio n o f a dispute with So uth Austra lia n He a lth de pa rtme nt. T he se ttle me nt re la te d to the use o f the Co mpa ny’ s CHI RON so ftwa re in o ve r 60 So uth Austra lia n pub lic ho spita ls fo r 60 mo nths c o mme nc ing 1-April 2015 a nd e xpiring o n 31 st Ma rc h 2020 with a furthe r a nnua l fe e sho uld the lic e nc e b e re q uire d b e yo nd Ma rc h 2020. T he se ttle me nt do e s no t impo se a ny pe rfo rma nc e o b lig a tio ns o n the Co mpa ny g o ing fo rwa rd. Co nse q ue ntly a ll re la te d re ve nue a nd dire c t e xpe nse s a re re c o g nise d in the 2017 fina nc ia l ye a r a s da ma g e s. Re ve nue , e xpe nse s, c a pita lisa tio n a nd a mo rtisa tio n re la ting to the dispute in prio r ye a rs ha ve b e n re ve rse d with the ne t e ffe c t re fle c te d in to da y’ s pre se nta tio n. Ple a sing ly, this wa s the 5 th c o nse c utive ye a r o f pro fita b le o pe ra tio ns a fte r ta king into a c c o unt the se sig nific a nt prio r ye a r a djustme nts.
5 Ye ar s of Str e ngthe ning F inanc ial Position Ne t Asse ts o r Sha re ho lde r E q uity ha s inc re a se d fo urfo ld o ve r the la st 5 ye a r to o ve r $4.8M. T he Co mpa ny pa id a spe c ia l divide nd o f 2c e nts pe r sha re o ve r the la st 12 mo nths a nd ha s imple me nte d so me struc tura l c ha ng e s to o ur o pe ra tio ns to b e mo re fo c usse d o n ma rke t sha re g ro wth. T he se re q uire d so me o ne -o ff re -struc turing pa yme nt o utflo ws. Our Ca sh plus Ne t Re c e iva b le s po sitio n a t 30 June 2017 wa s $3.28M. T he stro ng e st c a sh po sitio n in 5 ye a rs e na b le s the Co mpa ny to c o mmit g re a te r funds into sa le s a nd ma rke ting a nd a c c e le ra te the pro g re ssive mig ra tio n o f o ur o n-pre mise s so ftwa re a pplic a tio ns to a c lo ud-b a se d So ftwa re -a s-a -Se rvic e b usine ss mo de l. Ove r the la st five ye a rs, the Co mpa ny ha s c o nsiste ntly a c hie ve d Re turns o n E q uity o ve r 25% p.a . T his is mig ra tio n o f o ur e nte rprise o n-pre mise s, de skto p a pplic a tio ns to a So ftwa re a s a Se rvic e o ffe ring a va ila b le a nytime , a nywhe re a nd o n a ny de vic e , is ke y to the Co mpa ny’ s a spira tio n to se rvic e the wo rldwide de ma nd fo r inno va tio n in he a lthc a re .
Our Mar ke t Shar e today He a lthc a re ha s b e e n de sc rib e d a s a c o mple x syste m o f c o mple x syste ms. T he re is no o ne -size tha t fits a ll. F ro m la rg e sta te -wide e nte rprise s to c o rpo ra te ne two rks o f priva te pro vide rs a nd la rg e numb e rs o f sma ll sing le spe c ia lity so lo b usine ss, the b usine ss o f he a lthc a re in Austra lia is e stima te d to invo lve a ro und 150,000 b usine sse s o f va rio us size s. K e y to the Co mpa ny’ s stra te g y is to pro vide so lutio ns tha t a re c o mme rc ia lly via b le – this invo lve s a de g re e o f “c a na b ilsa tio n” o f o ur o wn b usine ss. Our b usine ss ha s suc c e ssfully ma de this tra nsitio n o ve r the la st de c a de with a muc h le sse r re lia nc e o n a fe w c usto me rs pa ying us la rg e initia l lic e nc e s a nd la rg e a nnua l ma inte na nc e fe e s.
Mone tisation Busine ss Mode Our b usine ss mo de l is tra nsitio ning to a mo ne tisa tio n mo de l b a se d o n a ffo rda b le e ntry po ints fo r o ur c usto me rs a nd tra nsa c tio n c o sts tha t a re se lf-e vide nt in the pro duc tivity we de live r fo r o ur c usto me rs - a sha re d re wa rd pro g ra m tha t sc a le s a s o ur c usto me rs sc a le . Co mpa nie s tha t re ly o n la rg e initia l c a pita l o utla ys b y the ir c usto me rs c o nside r the ir so ftwa re a s a fixe d c a pita l a sse t. Our vie w diffe rs; So ftwa re is b e st pro mo te d a s a n a c tivity-re la te d o pe ra ting c o st tha t re fle c ts the va lue de rive d fro m usa g e . T he Austra lia n Ac c o unting Sta nda rds Bo a rd (AASB) ha ve intro duc e d ne w a c c o unting sta nda rds (AASB 15) e ffe c tive fro m Ja nua ry 2018. T his re q uire s tha t a sse ts a re c la ssifie d suc h a s so ftwa re so lutio ns a re c la ssifie d a s a n o pe ra ting se rvic e c o st fo r o ur c usto me rs. T he Co mpa ny is pre pa ring fo r this with a mo de l o f re c urring minimum mo nthly sub sc riptio ns c o mb ine d with tra nsa c tio n fe e s b a se d o n usa g e .
Our Busine ss – Softwar e Por tfolio for c linic ians, c onsume r s and c onne c tivity T he a im o f o ur po rtfo lio o f a pplic a tio ns a im is to de live r impro ve d pro duc tivity a nd b e tte r pa tie nt o utc o me s a c ro ss the he a lthc a re industry. T he g lo b a l c ha lle ng e o f inc re a sing he a lthc a re c o sts a nd the inc re a sing inc ide nc e o f life style dise a se s re q uire s ne w thinking . Cruc ia l to the wa y fo rwa rd is the ne e d fo r c o nne c tivity with a la rg e va rie ty o f spe c ia l-purpo se “b e st-o f-b re e d” a pplic a tio ns; I nte g ra tio n a c ro ss the la rg e va rie ty o f spe c ia lists a nd a llie d he a lth e nc o unte r thro ug h the pa tie nt jo urne y a nd, inte g ra tio n to the ra pidly e me rg ing we a ra b le a nd re mo te mo nito ring de vic e s tha t e na b le o n-g o ing , re a l-time o b se rva tio ns a nd me a sure s to b e c o lle c te d a t a pe rso na l le ve l. T he o the r ke y c a ta lyst fo r c ha ng e is inc re a se d pa tie nt e ng a g e me nt, with the ir c a re te a ms a nd c o ho rts, to e nc o ura g e b e ha vio ur c ha ng e tha t mitig a te s a de te rio ra tio n o f a n individua l’ s we llne ss o r pre -e xisting he a lth c o nditio n. Our po rtfo lio o f a pplic a tio ns ha s b e e n de ve lo pe d with the se disrupto rs in mind. Our po rtfo lio pro vide s the to o ls a nd te c hno lo g y tha t e mpo we rs c o nsume rs to ta ke mo re re spo nsib ility fo r the ir he a lth c o nditio ns in a c o nne c te d, stre a mline d a nd c o lla b o ra tive jo urne y.
On- Pr e mise s Pr ovide r Syste ms ge ne r ate the bulk of our r e ve nue and c ashflow I n the la st 12 mo nths, the Co mpa ny’ s pro ve n so ftwa re ha s pro vide d the b ulk o f o ur re ve nue s a nd c a shflo w. I n pa rtic ula r, o ur Ma ste rCa re E MR so ftwa re fo r no n-c o mmunic a b le dise a se (NCD) ma na g e me nt e xpe rie nc e d a te rrific run o f suc c e ss se c uring sig nific a nt pro je c ts, no ta b ly with Me rc y Me nta l He a lth Se rvic e s in Vic to ria a nd te rrito ry-wide a c ro ss the ACT Me nta l He a lth, Justic e , Alc o ho l a nd Drug s se rvic e s. I n the la st 6 we e ks, b o th pro je c ts ha ve suc c e ssfully b e e n imple me nte d a dding a ppro xima te ly 1,500 ne w c linic a l, a llie d he a lth a nd a dministra tive e nd-use rs to o ur Ma ste rCa re E MR c usto me r b a se . I n Ma la ysia , the ro llo ut o f Ma ste rCa re E MR in a pilo t o f 12 pub lic site s a c ro ss the c o untry ha s b e e n ve ry we ll re c e ive d b y the Ma la ysia n Ministry o f He a lth a s a uniq ue a nd inno va tive pro je c t tha t wa s de live re d o n time a nd within b udg e t. Our ho spita l b usine ss a c hie ve d impo rta nt mile sto ne s a dding the 85 b e d Arc a dia Pittwa te r re ha b ilita tio n ho spita l to o ur Ma ste rCa re PAS c usto me r b a se a nd suc c e ssfully ke y va lue -a dd mo dule s, imple me nting a pa tie nt pre -a dmissio n po rta l in thre e e a rly a do pte r ho spita ls fo r the Co mpa ny’ s L ife c a rd Pa tie nt Po rta l a nd o ur Ma ste rCa re Da ta Wa re ho use to a furthe r thre e c usto me r site s.
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