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

Healthcare without boundaries

Emis Group plc 2011 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

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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

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FINANCIAL REVIEW Phillip Woodrow Finance Director

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• 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

Financial Highlights

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Revenue increased by 18.3%: Operating profit – H1 47% / H2 53% (2010 H1 42% / H2 58%) Operating profit up 9.8% against 2010 adjusted 2011 underlying tax rate 24% excluding £700k R&D credits for prior years Adjusted EPS up 14%

£m Year ended 31 December H1 2011 H2 2011 FY 2011 FY 2010 % Change Revenue 35.5 37.7 73.2 61.9 18.3% Operating profit 10.2 11.3 21.5 18.3 17.4% 2010 adjusted* 19.6 9.8% Profit before tax 10.2 11.2 21.4 18.1 18.2% 2010 adjusted* 19.3 10.9% Tax (2.4) (2.0) (4.4) (4.9)

• Profit from continuing
• perations

7.8 9.2 17.0 13.2 28.8% EPS from continuing

• perations

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

Profit and Loss

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£m Year ended 31 December 2011 2010 % increase EMIS RX Total EMIS RX Total Revenue 59.6 13.6 73.2 56.9 5.0 61.9 18.3 including: Recurring revenue 49.7 11.4 61.1 46.6 4.2 50.8 20.2 Segmental operating profit : 20.7 1.6 22.3 19.7 0.2 19.9 12.1

• add back amortisation

2.2 0.9 3.1 2.1 0.3 2.4

• deduct capitalised

development costs (3.8)

• (3.8)

(3.8)

• (3.8)

Adjusted segmental

• perating profit

19.1 2.5 21.6 (0.8) 18.0 0.5 18.5 (0.3) 16.8 Less Group costs Adjusted Group operating profit 20.8 18.2 14.3

Segmental Analysis

First full year of RX (2010: five months) RX 2010 like for likes:

• Revenue: £11.6m +17%
• AOP: £1.85m +35%

Amortisation includes £2.93m acquired and £0.15m internal 8

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

£m Year ended 31 December H1 2011 % of sales H2 2011 % of sales FY 2011 % of sales FY 2010 % of 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%

Core Business Analysis

*Hosting includes EMIS Web recurring revenue

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£m Year ended 31 December FY 2011 FY 2010 Cash from continuing operations: Generated 30.9 24.0 Less internal development costs capitalised (3.8) (3.8) Adjusted cash from operations 27.1 20.2 Used for/other movements: Discontinued operation (0.8) (1.8) Acquisition of RX Systems (net of RX cash) (0.2) (3.1) Net capex (6.2) (5.3) Repayment of bank term loans (1.2) (1.2) Transactions in own shares (0.9) (0.1) 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

Adjusted cash from operations up 34% Capex includes:

• Hosting assets of £1.2m
• Freehold property £1.8m

Final dividend £3.6m payable 30 April (2010: £3.3m), up 10.8% Positive cash movement of £5.2m Cash Flow

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Cash increase of £5.2m RX deferred consideration payable in full Deferred income rise - advance receipts under defence/other contracts Bank term loans reduced to £4.5m Deferred tax on intangibles of £8.1m

• No cash implications

£m Year ended 31 December FY 2011 FY 2010 Fixed assets 68.1 65.9 Cash 12.6 7.4 Other current assets 13.4 9.8 Total assets 94.1 83.1 Current liabilities (10.5) (10.3) Deferred income (16.1) (10.9) Bank term loans (4.5) (5.7) RX contingent consideration (0.8) (0.9) Deferred tax (8.1) (8.5) Net assets 54.1 46.8

Balance Sheet

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OPERATIONAL REVIEW Sean Riddell Chief Executive

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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

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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

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Phase 1 EMIS Web Demo (-16 weeks) Order placed (-12 weeks) Phase 2 Stream Practice Clinical Data Activate Familiarisation Service (-8 weeks) Phase 3 Preparation Planning Day Learning Plan Business Continuity Pre-Upgrade Training (-2 weeks) Data Validation Phase 4 Overnight non-clinical data transfer (-1 day) Installation Practice Training (+ 3 days) Online Support Centre & Telephone Support

EMIS LV EMIS Web Support Centre

Operational Review – EMIS LV to EMIS Web Journey

D e m

• n

s t r a t i

• n

(

• 1

6 w e e k s ) Familiarisation P r e p a r a t i

• n

Installation

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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.

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Operational Review – RX Systems

• Grown market share to over 34% (4,338 pharmacies) (2010: 25%

(3,184 pharmacies))

• Installation, hardware supply, maintenance and support of

contracted maintenance customers migrated to Egton

• Deployed new electronic point of sale software with selected

pharmacy users

• Started Medicines Manager pilot

Dr Jignesh Patel, Pharmacist: “It has vastly improved communication between GP, pharmacist and patient. We can review the patient’s medication and provide feedback to the GP or contact the patient with concerns.” Dr Barry Sullman, GP: “There are so many advantages to Medicines Manager. Each is worth its weight in gold in terms of accuracy of prescriptions, and time and cost savings.”

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Operational Review – Healthcare Gateway and EMIS IQ Healthcare Gateway

• Delivering pilots in Liverpool and Westminster
• NHS Cumbria entered phase 2 Out of Hours rollout

Enables NHS “connect all” strategy EMIS IQ

• Awarded up to six-year contract with NHS Information Centre

to develop secure data extraction service covering all EMIS practices in England

• Provides a data extraction service to support the new national

General Practice Extraction Service (GPES) Enables NHS “transparency” agenda

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Operational Review – Patient.co.uk

• Re-launched in February 2012
• 4 million unique visitors monthly
• Top free medical app download
• First step to help patients play a key part in
• wn care and users of EMIS integrated

healthcare system Enables NHS “no decision about me without me” agenda 19

Health & Social Care Update

• 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

The whole point of the Health and Social Care Bill is to give NHS

• rganisations the freedom to run their own affairs:

“We are now putting local clinicians in the driving seat, able to reap the explosion in information and technology that is reforming the world beyond the NHS.” “We are looking to a world of integrated care…..” Andrew Lansley, Secretary of State for Health, March 2012

Proposed NHS Structure

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Summary and Outlook Summary Strong performance, in line with expectations:

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

EMIS Web investment in delivery capability Outlook Strong and growing revenue visibility Trading in-line with management expectations since the year-end EMIS Web roll out acceleration Continued development of EMIS Web into the wider NHS Exciting prospects delivering integrated care systems

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APPENDIX

Updated Images

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EMIS Web Integrated Care Pilot - Liverpool

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EMIS Web – Accelerated Rollout

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EMIS Web – Overview

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