Healthcare without boundaries Sean Riddell Chief Executive - PowerPoint PPT Presentation

Healthcare without boundaries Sean Riddell – Chief Executive Phillip Woodrow – Finance Director Emis Group plc 2011 Results Presentation

AGENDA � Results Overview Sean Riddell � Financial Review Phillip Woodrow � Operational Review Sean Riddell � Summary and Outlook Sean Riddell 2

RESULTS OVERVIEW Sean Riddell Chief Executive 3

Operational Highlights � UK GP software market leading position maintained: • UK market share 53.1% (5,397 GP practices) (2010: 53.8% (5,576 GP Practices)) � EMIS Web GP controlled roll-out continued - by the year end : • 360 GP practices installed (2010: 44) • 1,565 orders placed in total (2010: 433) • 2,359 practices in EMIS Web GP familiarisation service (2010: 1,665) � RX Systems: • High street pharmacy market share increased to over 34% (4,338 pharmacies) from 25% (3,184 pharmacies) • Group synergies being realised � Transformation of healthcare delivery in the UK opening up new markets : • EMIS Web integrated care projects progressing well • EMIS IQ up to six year contract to develop secure NHS England data extraction service • Healthcare Gateway delivering two pilots and NHS Cumbria entered phase 2 of rollout 4

FINANCIAL REVIEW Phillip Woodrow Finance Director 5

Financial Highlights � Total Group revenue of £73.2m (2010: £61.9m), up 18% � Recurring Revenue of £61.1m (2010 £50.8m), up 20% � Group operating profit: • Reported - £21.5m (2010: £18.3m), up 17% Adjusted (1)(2) - £20.8m (2010: £18.2m), up 14% • � Cash generated from continuing operations £27.1m (2010: £20.2m), up 34% (3) � Net cash of £8.0m (2010: £1.7m), up £6.3m � EPS of 28.7p (2010: 25.3p (4) ), up 14% � Total dividend 12.4p (2010: 11.2p), up 11%, including final dividend 6.2p (2010: 5.6p) (1) Excludes capitalised development costs/adds back amortisation (2) 2010 also adjusted to exclude flotation/other transaction costs of £1.26m (3) Adjusted to exclude internal development costs capitalised of £3.8m (2010: £3.8m) (4) Excludes flotation and other transaction costs of £1.26m less related tax relief of £0.16m 6

Profit and Loss � Revenue increased by 18.3%: £m H1 H2 FY FY % Year ended 31 2011 2011 2011 2010 Change December � Operating profit – H1 47% / H2 Revenue 35.5 37.7 73.2 61.9 18.3% 53% (2010 H1 42% / H2 58%) Operating profit 10.2 11.3 21.5 18.3 17.4% � 2010 adjusted* � Operating profit up 9.8% 19.6 9.8% against 2010 adjusted Profit before tax 10.2 11.2 21.4 18.1 18.2% � 2010 adjusted* 19.3 10.9% � 2011 underlying tax rate 24% Tax (2.4) (2.0) (4.4) (4.9) - excluding £700k R&D credits Profit from continuing for prior years operations 7.8 9.2 17.0 13.2 28.8% EPS from continuing � Adjusted EPS up 14% operations 13.2p 15.5p 28.7p 23.3p 23.2% � 2010 adjusted* 25.3p 14.0% * Adjusted for: Float/transaction cost: 2010 £1.3m less related tax relief £0.2m 7

Segmental Analysis 2011 2010 £m % EMIS RX Total EMIS RX Total Year ended 31 December increase Revenue 59.6 13.6 73.2 56.9 5.0 61.9 18.3 � First full year of RX (2010: five months) including: � RX 2010 like for likes: Recurring revenue 49.7 11.4 61.1 46.6 4.2 50.8 20.2 • Revenue: £11.6m +17% • AOP: £1.85m +35% � Amortisation includes Segmental operating profit : 20.7 1.6 22.3 19.7 0.2 19.9 12.1 £2.93m acquired and £0.15m - add back amortisation 2.2 0.9 3.1 2.1 0.3 2.4 internal - deduct capitalised (3.8) - (3.8) (3.8) - (3.8) development costs Adjusted segmental 19.1 2.5 21.6 18.0 0.5 18.5 16.8 operating profit (0.8) (0.3) Less Group costs Adjusted Group operating profit 20.8 18.2 14.3 8

Core Business Analysis £m H1 % of H2 % of FY % of FY % of Year ended 31 December 2011 sales 2011 sales 2011 sales 2010 sales Licenses and software support 16.4 46% 16.8 45% 33.2 45% 28.0 45% Other support services 9.7 27% 10.6 28% 20.3 28% 16.6 27% Hosting* 2.8 8% 3.0 8% 5.8 8% 5.2 8% Hardware and training 5.1 15% 5.3 14% 10.4 14% 9.6 16% Other 1.5 4% 2.0 5% 3.5 5% 2.5 4% Total 35.5 100% 37.7 100% 73.2 100% 61.9 100% Recurring 29.9 84% 31.2 83% 61.1 83% 50.8 82% Non-recurring 5.6 16% 6.5 17% 12.1 17% 10.9 18% Total 35.5 100% 37.7 100% 73.2 100% 61.9 100% *Hosting includes EMIS Web recurring revenue � Recurring revenue growth £10.3m – EMIS £3.1m and RX £7.2m (first full year) � Accredited hosting and EMIS Web recurring income £5.8m (2010: £4.5m) � Recurring revenue percentage of sales maintained 9

Cash Flow £m FY FY Year ended 31 December 2011 2010 Cash from continuing operations: Generated 30.9 24.0 Less internal development costs capitalised (3.8) (3.8) � Adjusted cash from operations up 34% Adjusted cash from operations 27.1 20.2 � Capex includes: Used for/other movements: • Hosting assets of £1.2m Discontinued operation (0.8) (1.8) • Freehold property £1.8m Acquisition of RX Systems (net of RX cash) (0.2) (3.1) � Final dividend £3.6m payable 30 April Net capex (6.2) (5.3) (2010: £3.3m), up 10.8% Repayment of bank term loans (1.2) (1.2) Transactions in own shares (0.9) (0.1) � Positive cash movement of £5.2m Share issues - 24.0 Repayment of shareholder loans - (23.0) Bank and other interest (0.1) (0.3) Taxation (5.6) (3.9) Dividends (6.9) (3.3) (21.9) (18.0) Cash increase (decrease) in year 5.2 2.2 10

Balance Sheet £m FY FY Year ended 31 December 2011 2010 Fixed assets 68.1 65.9 � Cash increase of £5.2m Cash 12.6 7.4 � RX deferred consideration payable in full Other current assets 13.4 9.8 � Deferred income rise - advance receipts under Total assets 94.1 83.1 defence/other contracts Current liabilities (10.5) (10.3) � Bank term loans reduced to £4.5m Deferred income (16.1) (10.9) Bank term loans (4.5) (5.7) � Deferred tax on intangibles of £8.1m RX contingent consideration (0.8) (0.9) • No cash implications Deferred tax (8.1) (8.5) Net assets 54.1 46.8 11

OPERATIONAL REVIEW Sean Riddell Chief Executive 12

Operational Review – EMIS GP Systems � Business continues to perform well � UK market leader � GP System of Choice framework agreement extended until 31 March 2013 � Successfully installed most of our GP system orders in Scotland � Shortlisted for the NHS Wales Framework Agreement 13

Operational Review – EMIS Web GP � Continued controlled roll-out to GPs: • 360 GP practices using EMIS Web by the year end (2010: 44) • Familiarisation Service in 2,359 practices (2010: 1,665) • Total of 1,565 orders for EMIS Web by year end (2010: 433) • Total orders as of March 2012: 1,851 � Investment for accelerated roll-out continuing into 2012: • Year end employee numbers increased from 782 to 900 • Property acquisition (33,000sq ft - £1.8m) � Building delivery capability to install circa 200 EMIS Web practices per month during Q4 2012 � Expect to deploy the substantial majority of outstanding GP order book by end 2012 14

Operational Review – EMIS LV to EMIS Web Journey Phase 1 EMIS Web Demo (-16 weeks) n � Order placed (-12 weeks) o i t a ) r s t EMIS LV s k e n o e m w e 6 D 1 - ( Phase 2 � Stream Practice Clinical Data Familiarisation � Activate Familiarisation Service (-8 weeks) EMIS Web Phase 3 � Preparation � Planning Day � Learning Plan n o i t a � Business Continuity r a p � Pre-Upgrade Training (-2 weeks) e r P � Data Validation Support Centre Phase 4 Overnight non-clinical data transfer (-1 day) Installation � Installation � Practice Training (+ 3 days) � Online Support Centre & Telephone Support 15

Operational Review – EMIS Web Integrated Care � Pathfinder projects progressing well � Five year £1.8m contract in January 2011 to provide electronic patient record across Cheshire in acute trust and community settings � By year end, 147 other healthcare services starting to use EMIS Web for the delivery of integrated care 57 unique community and extended care services are already live with EMIS Web Acquired brain injury, Anticoagulation, Asylum seekers, Child services, Clinical assessment service, Clinical effectiveness group, Community hospital, Community matrons, Continence service, Contraceptive service, COPD inc rehabilitation, Crisis resolution team, Cystic fibrosis, Dermatology, Diabetes, Diabetic retinopathy, Dieticians, District nurse service, Emergency department, A&E and UCC, Flu pandemic service, General paediatrics, Gynaecology service, H1N1 influenza at risk data collection, Health IV therapy service, Health treatment rooms service, Heart and chest hospital, Heart failure service, H-Pylori breath test, Joint injections, Learning disabilities, Long term conditions, MacMillan Nurses, Medicine management, Minor surgery, Musculoskeletal ultrasound, Nursing home, Occupational therapy service, Older people and rehab service, Ophthalmology, Out of hours, Palliative care, Physiotherapy service, Podiatry, Polyclinics, Primary care access service, Primary care psychology, Public health, Renal department, Respiratory services, Smoking cessation, Speech and language therapy, Short term interventions, Ultrasound, Urology, Vasectomy, Walk-in centre, Weight management service. 16