Healthcare without boundaries Sean Riddell Chief Executive - - PowerPoint PPT Presentation

Healthcare without boundaries

Emis Group plc 2012 H1 Results Presentation Sean Riddell – Chief Executive Phillip Woodrow – Finance Director

AGENDA

• Results Overview

Sean Riddell

• Financial Review

Phillip Woodrow

• Operational Review

Sean Riddell

• Summary and Outlook

Sean Riddell

RESULTS OVERVIEW Sean Riddell Chief Executive

4

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

5

FINANCIAL REVIEW Phillip Woodrow Finance Director

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

• perations:
• 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%

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Revenue increased by 19.2% Operating profit/PBT up 18.6% Tax charge again low DT 2% reduction on all intangibles EPS up 24.6%

£m Continuing operations H1 2012 H1 2011 % Change Revenue 42.3 35.5 19.2% Profit before tax 12.1 10.2 18.6% Tax (2.3) (2.4)

• Profit after tax

9.8 7.8 25.6% EPS from continuing

• perations

16.32p 13.10p 24.6%

Profit and Loss

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£m H1 2012 H1 2011 % increase EMIS RX Total EMIS RX Total Revenue 34.2 8.1 42.3 29.1 6.4 35.5 19.2 including: Recurring revenue 28.2 6.2 34.4 24.5 5.4 29.9 15.1 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

• deduct capitalised

development costs (2.2)

• (2.2)

(1.7)

• (1.7)

Adjusted segmental

• perating profit

10.0 1.7 11.7 (0.2) 9.3 1.1 10.4 (0.4) 12.5 Less Group costs Adjusted Group operating profit 11.5 10.0 15.0

Segmental Analysis

Recurring revenue EMIS – up £3.7m (+15.1%) RX – up £0.8m (+14.8%) Adjusted operating profit EMIS – up £0.7m (+7.5%) RX – up £0.6m (+55%)

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Hosting and EMIS Web recurring income £3.9m (H1 2011: £2.8m) Other revenue includes: Defence, International and EMIS IQ

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

Core Business Analysis

*Hosting includes EMIS Web recurring revenue

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£m H1 2012 H1 2011 Cash from continuing operations: Generated 23.9 21.2 Less internal development costs capitalised (2.2) (1.7) Adjusted cash from operations 21.7 19.5 Used for/other movements: Discontinued operation

• (0.6)

RX Systems deferred consideration (0.7)

• Net CapEx

(5.9) (2.1) Repayment of bank term loans (0.6) (0.6) 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

Adjusted cash from operations up £2.2m CapEx includes:

• Hosting assets of £2.6m
• Ongoing refurbishment of new HQ

£0.7m Positive cash movement of £9.1m Cash Flow

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Movements YOY: Cash increase of £3.7m RX deferred consideration paid in full Deferred income continues at high level Bank term loans reduced to £4.0m Deferred tax on intangibles of £7.5m

• No cash implications

£m 30 June 2012 30 June 2011 31 Dec 2011 Fixed assets 72.2 65.3 68.1 Cash 21.7 18.0 12.6 Other current assets 14.2 12.2 13.4 Total assets 108.1 95.5 94.1 Current liabilities (16.6) (12.7) (10.5) Deferred income (22.0) (19.7) (16.1) Bank term loans (4.0) (5.2) (4.5) RX deferred consideration

• (0.7)

(0.8) Deferred tax (7.5) (7.8) (8.1) Net assets 58.0 49.4 54.1

Balance Sheet

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OPERATIONAL REVIEW Sean Riddell Chief Executive

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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

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Operational Review – EMIS Web Integrated Care

By H1 2012: 172 other healthcare services starting to use EMIS Web for the delivery of integrated care

68 unique integrated 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.

Outside of Hospitals Services – Primary & Community Emergency Department – Royal Liverpool Emergency Department – Alder Hey Emergency Department – Aintree RLBUH Renal Secondary Care Services Liverpool PCT July 2012 RLBUHT Anti‐ Coagulation RLBUHT Eye Screening and Opthalmology Ankle-Brachial pressure index 29 Anti- coagulation 2 Asylum seekers 1 Children’s walk-in centre 1 Community matrons 54 Community respiratory team 24 Diabetes specialist nurses 24 Emergency response team 3 Gynaecology 30 H.Pylori breath test 21 Hepatitis C 1 Intermediate care units 3 IV therapy 1 Mersey care crisis resolution care team 1 LCH skin team 19 Children’s services 235 District nursing 285 HIV service 3 Dermatology ICATS 13 Minor surgery 73 UC24 1 Community health 33 Safeguarding adults 4 Treatment rooms 1 Weight management service 31 Homeopathy 3 Key Coming soon

• No. of

practices

• No. of

users Live LV

PCS

31 49

EMIS Web

7

Other

6 RLBUH Renal General practices Liverpool heart and chest hospital PCI/CCU Heart failure pathway Acute Medical Unit Emergency Department – Southport and Ormskirk AHT – heart failure RLBUH heart failure RLBUHT Diabetes

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Integrated Care EcoSystem Development Road Map

Mobile API

Electronic Health Care Records

Spine

OOH Rio Cerner

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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

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Operational Review – RX Systems, Healthcare Gateway, EMIS IQ

RX Systems

• Market share grown to over 36% (4,541 pharmacies) (31 December 2011:

34.4% (4,338 pharmacies))

• EPOS installed at 594 pharmacies by 31 July 2012
• Recurring revenue £6.2m (2011 H1: £5.4m)

Healthcare Gateway

• Chosen to provide electronic discharges across nine Trusts by Informatics

Merseyside

• Delivering 80% of patient records to NHS Cumbria
• Pilots in Walsall and North West London and plans for A&E in University

Hospitals Morecambe Bay EMIS IQ

• Designing/building GP Extraction Service - goes live on 1 April 2013

starting with GP QoF reporting

• Delivering data extraction services across England and Scotland for: Risk

Stratification, Flu Surveillance, Patient Cohort Tracking, Immunisation and Vaccine Reporting

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Operational Review – Patient.co.uk

• Version 2.0 launched August 2012
• 4.4 million unique visitors in May 2012
• 1.3 million mobile unique visitors in July 2012
• Apps now available for IOS, Windows 7 and

Android: 181,000 downloads to July 2012

• Key enabler for EMIS Web Integrated Care
• the first step to help patients play a part in

their own care

• Fits English NHS Information Strategy: using
• nline services to simplify routine aspects of

care

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Health & Social Care Act – EMIS closely aligned

• Case for change:
• Rising demand and cost
• Need to improve quality
• Public finance constraints
• Key legislative changes:
• Clinicians in charge of shaping services
• CCGs directly commissioning services
• Any qualified provider (NHS, private or charity)
• NHS trusts free to innovate
• Greater voice for patients
• Remove unnecessary management tiers
• NHS Commissioning Board
• £80 billion Commission budget split
• £20 billion centrally commissioned
• £60 billion CCGs
• 212 CCGs proposed for authorisation by 1 April 2013

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The NHS Information Strategy – EMIS closely aligned The next 10 year IT strategy document … “… highlighted the solid foundations we have to build upon … providing one of the most successfully and universally computerised primary care systems in the world and national information flows that are the envy of many developed countries.”

• Information must drive integrated care across entire

health & social care sector

• Access to GP records by 2015
• Booking of GP appointments
• Interoperability essential
• Widespread use of modern technology required
• “The Centre getting out of the way”

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Summary and Outlook

Summary

Strong performance:

• UK GP software market leading position maintained
• RX Systems market share increased
• New market initiatives progressing well

EMIS Web - investment in delivery capability Fits New Information Strategy and Health and Social Care Act

Outlook

Strong and growing revenue visibility Remain confident in full year outlook EMIS Web GP roll out acceleration continues Ongoing development of EMIS Web Integrated Care for wider NHS

Finally

Retirement of CFO

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APPENDIX

Updated Images

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APPENDIX

GP Practices C&E Cheshire PCT Adult & Children's Nursing Services Allied Health Professionals

Community Matrons District Nursing Specialist Nursing Acquired Brain Injury Musculoskeletal 59 50 15 LV PCS 24 8 EMIS Web 13 Other 4 Health Visitors School Health 23 June 2012 Key In progress Coming soon

• No. of

practices

• No. of

users

Adult & Children's Nursing Services

Community matrons 21 District nursing 284 Central booking 21 Integrated respiratory 18 Home IV therapy service 3 Chronic pain management 6

GP Practices NHS Western Cheshire

LV PCS 12 2 EMIS Web 13 Other 12

Cheshire Health Record (Read Only)

CWP (Pharmacy) MCHT (Pharmacy, Emergency Care) 40 20 Countess of Chester (A&E, Pharmacy) 20 Trust MIS System ECNT (A&E, EAU, Pharmacy) 40 Live PCTs (Out of Hours and CCG Reporting) 30 Lymphadema service 3 Epilepsy nursing service 2 Parkinson’s service 1 SPR Diabetes specialist nurse 14 Continence advisory service 16 Community heart failure 2

Allied Health Professionals

MCATs Adult speech and language therapy 10 20 Adult physiotherapy 53 Podiatry 42 Therapies pod 13 Outpatient clerks 30 Child speech and language therapy 66 Dietetic service 41 15 152 28 6 77 32 Speech & Language Therapy Rehab Therapy Podiatry

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APPENDIX

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APPENDIX

GP Market Share by Country

(EMIS and competitor data estimated based on company records showing customers installed and ordered (by contract or letter of intent) as at 30th June 2012) Country EMIS estate EMIS % InPS estate InPS % iS

• ft estate

iS

• ft %

TPP estate TPP % Other Other % England 4453 53.8 1460 17.6 467 5.6 1770 21.4 130 1.6 Northern Ireland 156 43.9 113 31.8 53 14.9 0.0 33 9.3 S cotland 525 51.6 492 48.4 0.0 0.0 0.0 Wales 156 32.7 253 53.0 62 13.0 0.0 6 1.3 UK TOTAL 5290 52.2 2318 22.9 582 5.7 1770 17.5 169 1.7

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APPENDIX

Peter Southby

Peter Southby has, since 2010, been CFO at ENER-G plc, a privately owned business operating in renewable and efficient energy, and advised the board on strategic direction following an intensive period of corporate development. Prior to ENER-G, Peter spent four years as CFO at Augean plc an AIM company specialising in hazardous waste management and advised in particular on group reorganisation, strategy and a number of corporate transactions including fundraising and acquisitions. Before Augean, Peter was Group Financial Controller at White Young Green plc from 2003 to 2006, Finance Manager at Leeds United plc from 2000 to 2002 and started his career with Arthur Andersen in 1993 whilst studying at Oxford University, where he obtained a first class

• degree. Peter has been an ACA since 1998; he is 38 and lives in West

Yorkshire.

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APPENDIX