Healthcare without boundaries Sean Riddell Chief Executive - PowerPoint PPT Presentation

Healthcare without boundaries Sean Riddell – Chief Executive Phillip Woodrow – Finance Director Emis Group plc 2012 H1 Results Presentation

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

RESULTS OVERVIEW Sean Riddell Chief Executive

Operational Highlights � UK GP software market leading position maintained: • UK market share 52.2% • Awarded one of only two framework agreements for supply of managed GP service solution in Wales � EMIS Web GP accelerating roll-out continues - by the period end : • 747 GP practices installed • 1,385 unfulfilled orders • 2,753 practices in EMIS Web GP familiarisation service � RX Systems: • High street pharmacy market share increased to 36.0% � Transformation of healthcare delivery in the UK opening up new markets : • EMIS Web Integrated Care in 68 clinical specialities with over 5,300 seats 4

FINANCIAL REVIEW Phillip Woodrow Finance Director 5

Financial Highlights H1 2012 H1 2011 Increase Revenue £42.3m £35.5m 19% � Recurring revenue £34.4m £29.9m 15% Operating profit • Reported £12.1m £10.2m 19% • Adjusted £11.5m £10.0m 15% Cash generated from continuing operations: • Net of all development costs £21.7m £19.5m £2.2m Net cash £17.7m £12.8m £4.9m EPS from continuing operations 16.32p 13.10p 25% Interim Dividend 7.1p 6.2p 15% 6

Profit and Loss � Revenue increased by 19.2% £m H1 H1 % Continuing operations 2012 2011 Change � Operating profit/PBT up 18.6% Revenue 42.3 35.5 19.2% � Tax charge again low � DT 2% reduction on all Profit before tax 12.1 10.2 18.6% intangibles Tax (2.3) (2.4) - Profit after tax 9.8 7.8 25.6% � EPS up 24.6% EPS from continuing operations 16.32p 13.10p 24.6% 7

Segmental Analysis H1 2012 H1 2011 £m % EMIS RX Total EMIS RX Total increase Revenue 34.2 8.1 42.3 29.1 6.4 35.5 19.2 � Recurring revenue � EMIS – up £3.7m including: (+15.1%) Recurring revenue 28.2 6.2 34.4 24.5 5.4 29.9 15.1 � RX – up £0.8m (+14.8%) Segmental operating profit : 11.0 1.3 12.3 9.9 0.7 10.6 16.0 - add back amortisation 1.2 0.4 1.6 1.1 0.4 1.5 � Adjusted operating profit � EMIS – up £0.7m - deduct capitalised (2.2) - (2.2) (1.7) - (1.7) (+7.5%) development costs � RX – up £0.6m (+55%) Adjusted segmental 10.0 1.7 11.7 9.3 1.1 10.4 12.5 operating profit (0.2) (0.4) Less Group costs Adjusted Group operating profit 11.5 10.0 15.0 8

Core Business Analysis H1 % of H1 % of H2 % of FY % of £m 2012 sales 2011 sales 2011 sales 2011 sales 16.4 46% Licenses and software support 17.8 42% 16.8 45% 33.2 45% 9.7 27% Other support services 9.9 23% 10.6 28% 20.3 28% 2.8 8% Hosting* 3.9 9% 3.0 8% 5.8 8% 5.1 15% Hardware and training 7.0 17% 5.3 14% 10.4 14% 1.5 4% Other 3.7 9% 2.0 5% 3.5 5% 35.5 100% Total 42.3 100% 37.7 100% 73.2 100% 29.9 84% Recurring 34.4 81% 31.2 83% 61.1 83% 5.6 16% Non-recurring 7.9 19% 6.5 17% 12.1 17% 35.5 100% Total 42.3 100% 37.7 100% 73.2 100% *Hosting includes EMIS Web recurring revenue � Hosting and EMIS Web recurring income £3.9m (H1 2011: £2.8m) � Other revenue includes: Defence, International and EMIS IQ 9

Cash Flow H1 H1 £m 2012 2011 Cash from continuing operations: Generated 23.9 21.2 Less internal development costs capitalised (2.2) (1.7) � Adjusted cash from operations up Adjusted cash from operations 21.7 19.5 £2.2m Used for/other movements: � CapEx includes: Discontinued operation - (0.6) • Hosting assets of £2.6m RX Systems deferred consideration (0.7) - • Ongoing refurbishment of new HQ Net CapEx (5.9) (2.1) £0.7m Repayment of bank term loans (0.6) (0.6) � Positive cash movement of £9.1m Transactions in own shares 0.1 - Bank and other interest - (0.1) Taxation (1.9) (2.3) Dividends (3.6) (3.3) (12.6) (9.0) Cash increase in period 9.1 10.5 10

Balance Sheet £m 30 June 30 June 31 Dec 2012 2011 2011 65.3 Fixed assets 72.2 68.1 Movements YOY: 18.0 Cash 21.7 12.6 � Cash increase of £3.7m 12.2 Other current assets 14.2 13.4 95.5 Total assets 108.1 94.1 � RX deferred consideration paid in full (12.7) Current liabilities (16.6) (10.5) � Deferred income continues at high level (19.7) Deferred income (22.0) (16.1) � Bank term loans reduced to £4.0m (5.2) Bank term loans (4.0) (4.5) � Deferred tax on intangibles of £7.5m (0.7) RX deferred - (0.8) consideration • No cash implications (7.8) Deferred tax (7.5) (8.1) 49.4 Net assets 58.0 54.1 11

OPERATIONAL REVIEW Sean Riddell Chief Executive 12

Operational Review – EMIS Web GP � GPSoC Renewal - negotiations commenced � Continued accelerating EMIS Web roll-out to GPs: • 747 GP practices using EMIS Web by the period end (31 December 2011: 360) • Familiarisation Service in 2,753 practices (31 December 2011: 2,359) • 1,385 unfulfilled orders by period end (31 December 2011: 1,205) • As at 30 August 2012: – GP Practices using EMIS Web 958 – Familiarisation Service 2,835 – Unfulfilled orders 1,326 � Investment for accelerating roll-out continuing into H2 2012: • Period end employee number 1,117 (31 December 2011: 898) • New property refurbishment completed since period end � Delivery capability – capacity to install circa 200 EMIS Web practices per month by September 2012 � EMIS Data Centres - expansion on track 13

Operational Review – EMIS Web Integrated Care By H1 2012: 172 other healthcare services starting to use EMIS Web for the delivery of integrated care Liverpool PCT July 2012 Outside of Hospitals Services – Primary & Community Secondary Care Services Ankle-Brachial Mersey care 29 1 RLBUH Renal Heart failure pressure index crisis resolution pathway care team Anti- LCH skin team 2 19 Emergency Acute Medical Unit coagulation Department – Royal Liverpool 68 unique integrated care services Asylum Children’s 1 235 Emergency Liverpool heart and seekers services Department – chest hospital are already live with EMIS Web Alder Hey PCI/CCU Children’s District nursing 1 285 Emergency RLBUHT Diabetes walk-in centre Department – Acquired brain injury, Anticoagulation, Asylum seekers, Aintree Community HIV service 54 3 RLBUH Renal RLBUH heart failure Child services, Clinical assessment service, Clinical matrons effectiveness group, Community hospital, Community Community Dermatology 24 13 RLBUHT Eye AHT – heart failure respiratory ICATS matrons, Continence service, Contraceptive service, Screening and team COPD inc rehabilitation, Crisis resolution team, Cystic Diabetes Minor surgery Opthalmology 24 73 RLBUHT Anti ‐ Emergency specialist fibrosis, Dermatology, Diabetes, Diabetic retinopathy, Coagulation Department – nurses Emergency UC24 Dieticians, District nurse service, Emergency 3 1 Southport and response team Ormskirk department, A&E and UCC, Flu pandemic service, Gynaecology Community 30 33 General paediatrics, Gynaecology service, H1N1 health influenza at risk data collection, Health IV therapy H.Pylori breath 21 Safeguarding 4 service, Health treatment rooms service, Heart and test adults chest hospital, Heart failure service, H-Pylori breath test, Hepatitis C Treatment 1 1 Joint injections, Learning disabilities, Long term rooms conditions, MacMillan Nurses, Medicine management, Intermediate 3 Weight 31 Minor surgery, Musculoskeletal ultrasound, Nursing General practices care units management Key home, Occupational therapy service, Older people and service IV therapy Homeopathy 1 3 EMIS Live LV 31 7 rehab service, Ophthalmology, Out of hours, Palliative Web Coming soon care, Physiotherapy service, Podiatry, Polyclinics, Other PCS 49 6 No. of No. of Primary care access service, Primary care psychology, users practices Public health, Renal department, Respiratory services, Smoking cessation, Speech and language therapy, Short term interventions, Ultrasound, Urology, Vasectomy, Walk-in centre, Weight management service. 14

Integrated Care EcoSystem Development Road Map Spine Rio API Mobile Cerner OOH Electronic Health Care Records 15

EMIS Mobile – for the healthcare worker on the move Functionality � Online and offline access to patient records: summary, consultations, care episodes, medication, values, problems and more � Map view: enables visit planning � User Tasks: ensures continuity of care Technology � Developed in HTML5 � Multiplatform support (iPad, Android Tablets, Blackberry, Windows 8) � One development, multiple platforms supported � Ability to remote wipe � Secure, encrypted data storage � Synchronisation over WiFi and 3G 16