Company presentation March 2019 Todays agenda 1. Introduction 2. - - PowerPoint PPT Presentation

Company presentation

March 2019

Today’s agenda

1. Introduction 2. Company and market

• verview

3. Plan forward 4. Appendix

• FRISQ has created a forward looking care plan solution that builds on

medical and lifestyle data

• Allows for sharing of data between multiple healthcare providers,

payers and patients

• Mobile platform globally scalable and creates significant productivity

gains for payers and providers as well as better health outcomes for the patients

FRISQ in short

Source: Company information.

Company overview

3

Demand for FRISQ from several perspectives

Society perspective

1.

Patient perspective

2.

Doctor perspective

3.

Product overview

Vision

FRISQ strives to empower patients in their care journey, while simultaneously increasing care provider efficiency significantly

4

Source: Company information

Quick highlights of 2018 and 2019

2019

Standardization & license sales of product

2018

Product validation & Proof of Concept

• Achieved CE-mark
• Major pilots in out-patient setting to prove

the concept

• COPD
• CBT (mental health)
• Diabetes
• Prostate cancer

Major Electronic Medical Records (EMR) integrations Validation by public organizations

• Further expansion of pilot projects, e.g.
• In-patient hospital use
• Primary care
• Nordic countries out-patient
• First sales of standardized licensed out-

patient product

• Ryggkirurgiskt centrum
• ~15-20 additional clinics
• Further major EHR integrations
• 2 major in Sweden
• 1 in Norway
• First public procurement win

P P P P P P P P P P

5

Current cost development within healthcare implies that efficiency has to increase dramatically or there will be a choice between following alternatives:

• Substantially increasing

financing need, i.e. increase in taxes and fees

• Not being able to provide

same care to everyone/lower care quality and capacity Digitalization potential of 180 SEKbn per year according to McKinsey & Company

5

SEKbn

Estimates Actuals

Society perspective – Healthcare cost exceeding ability to pay

Source: SCB; McKinsey

Healthcare costs in Sweden Comments

Extrapolated cost development

475 714

100 200 300 400 500 600 700 800

180

BNP, 2% annual growth

Society perspective Patient perspective Doctor perspective

6

Patient perspective – Fragmented, slow and diffuse system

Source: Forum för välfärd

Infection

▪ Patient confusion in current healthcare system with multiple

• ptions available

▪ Increasing demand for digital support and efficient care processes, quality measurements and patient engagement

Society perspective Patient perspective Doctor perspective

7

Society perspective Patient perspective Doctor perspective

Doctor perspective – Inefficiency in documentation handling

7

Source: SOU Effektiv vård (2016)

Direct patient contact 33% Indirect patient work 33% Other activities 33% Improved by FRISQ Reduced by FRISQ – up to 70% of documentation is duplicate

▪ Isolated collection of data (often paper based) leads to massive double work ▪ Increased documentation requirements leads to more administration and less patient facing time for healthcare staff ▪ The healthcare industry response has been to increase number of employees

Comments Share of medical doctor’s working hours

Overview of FRISQ care plan solution

8

Electronic Medical Records System 1 EMR System 2 EMR System 3 iHealth Digital scale Google Fit HealthKit FitBit

Care Provider front Patient front

Today’s agenda

1. Introduction 2. Company and market

• verview

3. Plan forward 4. Appendix

10

▪ Patients with continuous and/or advanced healthcare need, e.g. chronic diseases, rehabilitation, pregnancy, psychiatric illness,

• perations

▪ ~5 million individuals in Sweden, with est. cost of SEK ~400bn

FRISQ target market – example Nordics

FRISQ targets >80% of healthcare spending Addressable market in terms of care users

Source: Company information, Vårdanalys

▪ Patients with non-recurring healthcare need, e.g. prescription for cold ▪ ~10 million individuals in Sweden, with an estimated cost of SEK ~80bn ▪ Multiple companies and solutions from healthcare regions

▪ Assuming FRISQ is relevant to 70% of total number of staff in the Nordics, corresponding to 420,000 users ▪ Assuming FRISQ is relevant to 60% of healthcare and care staff, corresponding to 720,000 users FRISQ’s addressable market Non addressable market 720 000 480 000 # of healthcare and care staff in the Nordics 1,200,000 600,000 420 000 180 000 # of healthcare staff in the Nordics

>80% <20%

11

Source: Company information

FRISQ is independent of diagnosis - examples of typical patient groups

Psychiatric health Rheumatism Diabetes Pregnancy & childbirth Cancer COPD Hypertension Pre and post surgery Examples of FRISQ’s focus therapy areas

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FRISQ – a real time planning system

Big shift in healthcare creates demand for FRISQ

▪ Guidelines available for certain diagnoses/ procedures (e.g. hip surgery procedure) ▪ Limited quality measurement ▪ Payment per item (e.g. visit/procedure) ▪ Patient is a passive receiver of care, not engaged in the care process

Booking Medication Booking Care doc Medication Medication Care doc Care doc Lab results Lab results Care doc Referrals Referrals

Today

Booking Booking Booking

Specialist care Primary care

Care system where the patient is engaged in every step of the value chain

Electronic Medical records systems originally built to support this

▪ Guidelines for entire care processes (e.g. ”Standardiserade vårdförlopp” within cancer or entire COPD process), but only on paper/PDF ▪ Large demand for quality measurement (e.g. international OECD standards) ▪ Reimbursement connected to quality/outcome measures (e.g. entire care process around hip surgery) ▪ Strong push for patient engagement

Huge unmet demand for a new type of system like FRISQ Care

Existing systems - massive documentation Today’s and tomorrows healthcare

13

Source: Company information

Unique position in competitive landscape

Google Cloud - Storage and data communication EMR systems – typically supporting core mandated functionality such as documentation, billing, access control etc... Apple Healthkit – visualization and local storage

• f EMR records

Amazon healthcare – simple healthcare (video doctors, logistics of medication etc)

FRISQ – currently only solution supporting forward looking care processes ▪ Currently no similar solution in the market, which means that FRISQ has a first mover advantage ▪ High barriers to entry due to a complex underlying data model as well as already completed integrations with EMR providers “Competitors” don’t focus on complete value chain FRISQ offers a real time planning system

14

Source: Company information

FRISQ acknowledged as important part of future Swedish healthcare

FRISQ is acknowledged as part of the future solution for the healthcare system in Sweden for several reasons, e.g.:

• Integrated with EMR systems in the two largest healthcare regions in Sweden (Stockholms läns landsting and Västra

Götalandsregionen)

• Endorsed by Socialstyrelsen as the future of delivering care (see report from Feb 2019 ”Att följa patientens väg i vården”)
• Partner with multiple larger Electronic Medical Records vendors (Compugroup Medical communicated so far) and distribution

partners (Dustin and Atea)

▪ Create knowledge and motivation through transparency of forward looking care plans and progress on key measurements ▪ Improved healthcare outcomes as a result

Value creation for all stakeholders

▪ Productivity improvements, e.g. 10-25% in doctor-patient face time ▪ Improved “best practice learning” and ability to replicate best practices ▪ Off-loading of “mundane work” through automation and enabling patients to do more themselves

Value proposition to healthcare providers

▪ No competitors in the market → first mover advantage ▪ Complex underlying data model ▪ Manages integrations with EMR providers ▪ Language independent system and compliance with international healthcare standards

Barriers to entry and scalable business model Value proposition to patients

Patients Healthcare providers

Source: Company information, Vårdanalys

An application for bringing the patient and the provider together

15

16

Unique and scalable solution with partnership structure

Leverages partnerships for successful scaling outside the Nordics

Source: Company information

Primary customer Revenue item Pricing model Care providers/payers/life science research community Product License Integrations and Implementation Support Analytics/AI Monthly Fee per Care User Price per hour Pay per Service

Illustration of business model Continuous development of the business model as more services are added, leveraging on existing customer base

Electronic Medical Record (EMR) Providers Technology partners Implementation consultants

Today’s agenda

1. Introduction 2. Company and market

• verview

3. Plan forward 4. Appendix

Important milestones and planned expansion

18

Source: Company information. Note: 1) Electronic Health Record

2018 – 2020

✓ Broad acceptance across the Nordic market with multiple

Proof of Concept (POC) and pilots

✓ Reference installations with both public and private

healthcare providers as well as payers

✓ Completed and ongoing EHR1) integrations with all major

EHR systems in Sweden and Norway and a few in Europe and North America

✓ The FRISQ care plan solution is a requirement in several the

procurements of new health information systems

2019 →

• Establish local presence in the US by applying

demonstrated (Qlik) commercial model for sales and partnering

• Follow partners into new markets in Europe
• Initial focus on diagnose specific verticals to leverage on

care plan content and implementation success

International expansion Showcase Sweden/Nordics Expansion plans

Local presence in Sweden and Norway Focus on the US and Rest of Europe

US ~20m care users Europe ~20m care users

19

Source: Company information. Note: 1) Annual Recurring Revenue

Historic and expected news flow in the Nordics - FRISQ phases of growth acceleration

2020e – 2021e

Product embedded in regional infrastructure

2019

Standardization & license sales of product

2018

Product validation & Proof of Concept

• Achieved CE-mark
• Major pilots in out-patient setting to

prove the concept

• COPD
• CBT (mental health)
• Diabetes
• Prostate cancer

Major EMR integrations Validation by public organizations

• Further expansion of pilot projects, e.g.
• In-patient hospital use
• Primary care
• Nordic countries out-patient
• First sales of standardized licensed
• ut-patient product
• Ryggkirurgiskt centrum
• ~15-20 additional clinics
• Further major EHR integrations
• 2 major in Sweden
• 1 in Norway
• First public procurement win
• Roll-out of FRISQ Care embedded in 3

major health regions in Sweden

• Access to over 150,000 potential users

through completed EHR integrations

• Further major EHR integrations
• Denmark
• Finland
• Further participation in major public

procurements in Nordics

• License product sales started in Norway

and potentially Denmark or Finland

Major events – past and planned

P P P P P P P P P P

20

Source: Company information

US launch – right timing and first mover advantage

• Timing for introduction of FRISQ Care in the USA is right given the

increased focus on linking outcomes (quality) to payment and strong push for patient engagement – Outcome (quality) based reimbursement now means 2-5% of reimbursement is connected to outcomes. – This means you need to have a forward looking care plan solution to 1) secure care plan with high quality, 2) involve the patient and 3) be able to measure outcomes

• FRISQ has a first mover advantage - no other application like FRISQ Care

available as per HIMSS conference 11-14 February 2019. Closest ”competitors” are: – EMR systems own functionality of care pathways/care plans (typically without forward looking perspective and patient interaction) – Home monitoring systems (without involving the entire care team in the care process)

• FRISQ already has an awaiting US team in place to lead commercialization

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Example of identified activities to enter US market

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11

Sales lead generation

• Refine offering/value proposition
• Codify example plans with US relevant content

Example activities Prepare application for US requirements, e.g.

• Compliance including HIPAA and HITECH
• Health information exchange adaptation
• Basic functionality adaptations, e.g. US login
• Legal review of entire application

Go live Customer specific IT work + implementation, e.g.

• EMR integration
• Connection to customer environment

Signed deal with first US customer Set up US organisation

• Legal structure
• Governance
• Practicalities

22

Source: Company information. Note: 1) Annual Recurring Revenue

Financial targets and market potential

Communicated targets (2019) Communicated targets (2022) Revenue potential

▪ Break-even in Sweden end of 2019 (by year end 2019, gross contribution of the Swedish operations shall be positive) ▪ Revenues in the Nordics of SEK 225m ▪ Share of ARR1 >60% ▪ EBITDA 35 – 40% Assuming 60% market penetration ARR1) of SEK 3 bn ($ 350M) Assuming 20% market penetration ARR1) of $ 4bn

Price expectancy levels are 2-3x higher than in the Nordics

Nordics US

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Note: 1) International Consortium of Health Outcome Measurements

Experienced management team and board of directors

Martin Irding CEO

Background as project manager at McKinsey & Company with focus on healthcare sector

Magdalena Stenbäck CFO

Experience from the finance and healthcare sector, incl. Goldman Sachs, SEB, Investor & Aleris

Hannes Palm Chief Commercial Officer

Background as project manager at McKinsey & Company

Casper Winsnes Chief Product Officer

Has successfully driven many of the nationally recognized e-health initiatives in Sweden

Board of Directors

Mats Lindstrand Chairman of the Board

Background as management consultant and director at McKinsey & Company

Lars Björk Board member

CEO at Qlik and has many years of experience from the tech industry

Anna Frick Board member

CEO at digital agency

• Oakwood. Experience as

marketing director and from board assignments

Åke Hallman Board member

Previously CEO of Apoteksbolaget and experience from board assignments

Göran Hägglund Board member

Former party leader of Kristdemokraterna and Sweden’s Social Minister

Strong management team with significant industry experience

Per Egon Johansson Board member

Former state secretary within the Swedish government

Patrik Mattsson Chief Customer Success Officer

Background as head of e- health and digitalization unit within Västra Götalandsregionen

Örjan Lindström Chief Development Officer

Background as head of several larger development

• rganisations

Today’s agenda

1. Introduction 2. Company and market

• verview

3. Plan forward 4. Appendix

25

Income statement

Amounts in SEK thousands 2018 2017 2018 2017 Oct - Dec Oct - Dec Jan - Dec Jan - Dec

Net sales 2,572 103 5,255 248 Capitalized work for own account 739 Other operating income 382

• 4

1,147 7 Other external expenses

• 8,061
• 5,378
• 28,397
• 16,291

Personnel expenses

• 5,513
• 3,615
• 15,913
• 14,337

Depreciation & amortisation

• 3,018
• 767
• 8,365
• 3,067

Operating result, EBIT

• 13,638
• 9,661
• 46,273
• 32,701

Financial income and expenses 97 16 95 14 Profit after financial items

• 13,541
• 9,645
• 46,178
• 32,687

Income tax 2,723 4,163 7,793 Net profit/loss for the period

• 13,541
• 6,922
• 42,015
• 24,894

26 Amounts in SEK thousands 2018 2017 Dec Dec

Fixed assets Capitalized development expenses 38,760 32,138 Goodwill 104,490 104,490 Tangible fixed assets 762 228 Deferred tax asset 20,936 16,773 Total fixed assets 164,948 153,629 Current assets Accounts receivable 1,305 4 Other receivables 6,455 3,578 Cash and cash equivalents 41,889 42,506 Total current assets 49,649 46,088 TOTAL ASSETS 214,597 199,717 Shareholder's equity Share capital 1,011 846 Other contributed capital 289,652 239,640 Retained earnings, including result for the period

• 90,277
• 48,262

Total shareholder's equity 200,386 192,224 Liabilities Accounts payable 8,176 934 Other short-term liabilities 6,035 6,559 Total liabilities 14,211 7,493 TOTAL SHAREHOLDERS EQUITY AND LIABILITIES 214,597 199,717

Balance sheet

27

Case study Socialstyrelsen

• In 2018, Socialstyrelsen received a governmental order to investigate

continuity within healthcare (”Patientens väg i vården”. FRISQ Care in the Västra Götaland region (VGR) was identified as a showcase in which both healthcare providers and the patient have possibility to work together in forward looking care plans, both within and between different healthcare providers

• “Concerning VGR’s concept, one of the largest gains is that both the

team and the patient can get an overview of current care- and activity plan, which facilitates both prioritization for healthcare providers and self care support for the patient”, according to Socialstyrelsen

• http://www.socialstyrelsen.se/publikationer2019/2019-2-10