ORION HEALTHOVERVIEW SEPTEMBER 2015
Ian McCraeChief Executive Officer
Edison Investor Day, 7 September 2015
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Important Notice
Secured funds through IPO to
execute our growth strategy
Significant strategic win in United States
insurer (payer) market with Cal
INDEX
2015 © Orion Health™ group of companies
Important Notice
This presentation is given on behalf of Orion Health Group Limited (“OHE”)
Information in this presentation:
- is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in OHE;
- should be read in conjunction with, and is subject to, OHE’s Annual Report, market releases, and information published on OHE’s website (www.orionhealth.com);
- includes forward-looking statements about OHE and the environment in which OHE operates, which are subject to uncertainties and contingencies outside of OHE’s control – OHE’s actual results or performance may differ materially from these statements;
- includes statements relating to past performance, which should not be regarded as a reliable indicator of future performance; and
- may contain information from third parties believed to be reliable, however, no representations or warranties are made as to the accuracy or completeness of such information
All currency amounts are in NZ dollars unless otherwise stated.
The use of n/m means not meaningful due to statistical insignificance.
OHE results are reported under NZ IFRS. This announcement includes non-GAAP financial measures which are not prepared in accordance with NZ IFRS.
- the information contained in this presentation should be read in conjunction with the financial statements and accompanying notes
- due to rounding, the numbers presented throughout this presentation may not add up precisely to the totals presented. Percentages may not precisely reflect the presented figures as these are based on unrounded numbers
Orion Health
Annual Results Presentation FY2015 02
2015 © Orion Health™ group of companies
Important Notice
This presentation is given on behalf of Orion Health Group Limited (“OHE”)
Information in this presentation:
- is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in OHE;
- should be read in conjunction with, and is subject to, OHE’s Annual Report, market releases, and information published on OHE’s website (www.orionhealth.com);
- includes forward-looking statements about OHE and the environment in which OHE operates, which are subject to uncertainties and contingencies outside of OHE’s control – OHE’s actual results or performance may differ materially from these statements;
- includes statements relating to past performance, which should not be regarded as a reliable indicator of future performance; and
- may contain information from third parties believed to be reliable, however, no representations or warranties are made as to the accuracy or completeness of such information
All currency amounts are in NZ dollars unless otherwise stated.
The use of n/m means not meaningful due to statistical insignificance.
OHE results are reported under NZ IFRS. This announcement includes non-GAAP financial measures which are not prepared in accordance with NZ IFRS.
- the information contained in this presentation should be read in conjunction with the financial statements and accompanying notes
- due to rounding, the numbers presented throughout this presentation may not add up precisely to the totals presented. Percentages may not precisely reflect the presented figures as these are based on unrounded numbers
Orion Health
Annual Results Presentation FY2015 02
2015 © Orion Health™ group of companies
Orion HealthOverview September 2015
2015 © Orion Health™ group of companies
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Orion Health at a Glance
Secured funds through IPO to
execute our growth strategy
Significant strategic win in United States
insurer (payer) market with Cal
INDEX
2015 © Orion Health™ group of companies2015 © Orion Health™ group of companies
Established for 24 years
27 offices in 15 countries
Over 1,250 employees worldwide
Over 450 customers in 25 countries
$164m FY2015 operating revenue
22% operating revenue CAGR over the last 10 years*
Winner 2014 NZ Hi-Tech Company of the Year
UK Technology Provider of the Year, HealthInvestor Awards 2015
Top rankings by Industry Analysts - Chilmark, Blackbook, IDC
Orion HealthOverview September 2015
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750+customers in 5 continents
55 PHMcommunities
worldwide
A Global Leader in Population Health Management
Orion HealthOrion HealthOverview September 2015
700 hospitalsuse Orion Healthto integrate their
systems
30+ largeprivate HIEs
and ACOsin the USA
60+ millionpatient records
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FY2015 Financial Highlights
2015 © Orion Health™ group of companies
Total OperatingRevenue
$164m7% increase
From FY2014
Increased R&Dcapacity by
27%from 363 people
To 461
Successfullycompleted
$125mInitial Public Offering of
Orion Health Shares
Significantincrease of
42%in annualised
RecurringRevenue
Net Cash*balances of
$95mas at
31 March 2015
Orion HealthOverview September 2015
*Includes cash, cash equivalents and term deposits
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Healthcare Today
• Siloed data systems• Doctors only have partial
access to information• Patients cannot access their
own health record
This leads to:• Poor healthcare outcomes• Duplication of resources• Medication errors• Wastage (30-40% of
healthcare costs + $2
Trillion Globally)
Doctor Patient
Decisions withlimited information
Not informedor involved
No Access
No Input
Labs, Radiology, Pharmacy,Hospital
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The Future of Healthcare
Doctor Patient
Device DataPatient Input
Notes
CompleteHealth Record
Labs, Radiology, Pharmacy,Hospital, Genomics, Device Data, etc
Thinking Software
Orion HealthOverview September 2015
• Integrated data held in a single repository
• Supports a longitudinalpatient record
• Doctors can see the full picture
• Patients can access and contribute to own health record
This leads to• Optimal precise healthcare
for each individual
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Orion Health: the DisruptorOrion HealthOverview September 2015
Our Goal
GlobalOpportunity
To revolutionise healthcare through use of technology, ultimately giving people longer, happier, healthier lives.
US $6 TrillionHealthcare
US $2 TrillionWaste
US $50 BillionHealthcare I.T.
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Orion Health: the DisruptorOrion HealthOverview September 2015
Our Goal
GlobalOpportunity
Drivers ofChange
To revolutionise healthcare through use of technology, ultimately giving people longer, happier, healthier lives.
Burgeoning costs (chronic conditions, wastage, aging)Internet will revolutionise HealthNew Technology (devices, mobile, etc)Genomics
US $6 TrillionHealthcare
US $2 TrillionWaste
US $50 BillionHealthcare I.T.
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Orion Health: the DisruptorOrion HealthOverview September 2015
Our Goal
GlobalOpportunity
Drivers ofChange
Orion’sLeadership
To revolutionise healthcare through use of technology, ultimately giving people longer, happier, healthier lives.
Burgeoning costs (chronic conditions, wastage, aging)Internet will revolutionise HealthNew Technology (devices, mobile, etc)Genomics
Industry Analyst ratings – IDC, Chilmark, Black BookGreater number of big, regional sites than all other vendorsAward recognition – HealthInvestor UK, Hi-Tech NZ
US $6 TrillionHealthcare
US $2 TrillionWaste
US $50 BillionHealthcare I.T.
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Market DriversOrion HealthOverview September 2015
AgingPopulation
ChronicIllness
IncreasingExpectations
New Medical Discoveries
GenomicsNew DevicesInternet 2.0Wastage
10,000 seniors cost Medicare $1 Billion
1 Chronic conditions account for93% of all Medicare spending 2
Dissatisfaction with healthcare has led to the birth of the healthcare
consumer
Keeping people alivefor longer
50% of spending in the U.SHealthcare system is wasted
Approx $1.2Trillion 3
Next level connectivity in theInternet of Things
Google X and Novartis areDeveloping a contact lens that
measures a diabetic’s bloodsugar level and sends a
report to a mobile device
First human genome took 13 years to map. Now it takes
half an hour 4
1Nation’s sickest seniors reshape healthcare, USA Today2 www.cms.gov3 “The Price of Excess”, PWC Healthcare Research Institute4 www.technologyreview.com
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Hospital Labs Radiology Consumer
Regional Electronic Health Record
Pharmacy GP
Connected HealthOrion HealthOverview September 2015
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Cal lNDEX South Island (SI-PICS) New Brunswick SingaporeSutter Northern Ireland Highmark OntarioGlasgow London North Dakota Alberta
South Island NZ ACT Canberra Bumrungrad BangkokKUH Instanbul Hunter New England VINMEC Vietnam
AustraliaMy Health Record
Hospital Labs Radiology Consumer
Orion Health
Pharmacy GP
Orion Health: The Health Data Platform of ChoiceOrion HealthOverview September 2015
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Key Customers – United States
Orion HealthOverview September 2015
Public Healthcare OrganizationsAlaska eHealth Network (AEHN), Anchorage AK Commonwealth of Massachusetts Executive officeof Health and Human Services, Boston MADC Department of Health, Washington DCDCHIE, Washington DC Idaho Health Data Exchange, Boise IDInland Empire HIE (IEHIE), Riverside CALouisiana Health Care Quality Forum(LaHIE), Baton Rouge LAMaine HealthInfoNet, (MHIN), Portland MENew Hampshire Health Information Organization (NHHIO), Concord NH New Mexico Health Information Collaborative (NMHIC), North Dakota HIE, Fargo NDNorth Texas Accountable Healthcare Partnership, Dallas TXOK State Department of Health, Oklahoma City OKHealthcare ProvidersCatholic Health Initiatives, Denver COCHIC, Duluth MN DC Department of Health, Washington DCDCHIE, Washington DC Greenville Health System, Greenville NCHuntsville Hospital, Huntsville ALKeyHie, Danville PA Lahey Clinic, Burlington MALehigh Valley Health Network (LVHN), Allentown PAMary Washington Healthcare, Fredericksburg VAAlbuquerque NM North Carolina HIE, Raleigh NCRush Health, Chicago ILScottsdale Health Partners, Scottsdale AZSt. Luke’s University health Network, PASt Vincents Medical Center, Jacksonville FLSt. Francis Care, Hartford CTSutter Health, CAVanderbilt Health Access Network, Nashville TNWestern Connecticut Health Network (WCHN), Danbury CT
Health Insurers/PayersCal INDEX (Blue Shield of CA and Anthem of CA), San Francisco CAHighmark, Pittsburgh PAPharmaceuticalWalgreens, Chicago IL
2015 © Orion Health™ group of companies
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Key Customers – Rest of the World
Orion HealthOverview September 2015
Canada Alberta health Services, ABNew Brunswick Department of Health, NBQuebec Department of Health, QCSaskatchewan Department of Health, SKThe Northwest Territories, NTMinistry of Health & Long Term Care, ONNewfoundland & Labrador Centre for Health Information, NL
UK, Ireland and EMEA Connecting Care (South West CSU)Connect Care (Lewisham & Greenwich NHS foundation trust) Heart of England NHS foundation trustNHS Greater Glasgow & Clyde health boardGolden Jubilee National HospitalNHS Lanarkshire health boardNIECR (Health & Social Care Northern Ireland)Children’s University Hospital, DublinWest Kent CCGAmerican Hospital and Koc University Hospital, Istanbul, Turkey Spanish Government, Disease Management Programme
Asia The Medical City, Manila, PhilippinesAsian Hospital, Manila, PhilippinesSingapore Ministry of Health, Singapore (public HIE) Bumrungrad International Hospital, Thailand (SH) Franco-Vietnamese Hospital, Vietnam (SH)
Australia NSW JusticeTasmania Department of Human ServicesNSW Health, Sydney, NSW (HIE)Hunter New England Local Health District, NSW (SH)Department of Health & Ageing PCEHR, Australia (HIE) ACT (HIE)
New Zealand All the District Health Boards of New Zealand 2015 © Orion Health™ group of companies
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Key CustomersOrion HealthOverview September 2015
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Who is Thinking Differently?
• Who are they?– 24 Hospital Health System in U.S. that has spent $1b+ on an HER from Epic, connecting five medical foundations
and 17 hospital campuses• What business problem are they trying to resolve?
– Need to better support care delivery to three million active patients in more than 100 northern Californian cities and towns
– They require a solution that integrates Sutter’s EHR with other providers’ systems to help caregivers improve quality, safety and efficiency for all patients travelling between providers
• How are they approaching a solution?– Using an enterprise health information exchange solution to broaden their efforts– Looking to create a community-based view of patients’ information that all members of a patient's care team,
including their family, can see• Why did they choose Orion Health?
– Reviewed many vendors and chose Orion as a reputable vendor that had established health information exchanges and been praised for having strong products and service
– Required an open solution that could take feeds from Epic and connect with other data feeds and scale – Orion Health has the modern architecture and open source distributed technology to deliver that
• What results are they hoping for?– Sutter would like to connect its HIE to three larger entities to reach critical massFor
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• Who are they?– Health Insurers Blue Shield of California and Anthem Blue Cross (normally competitors) agreed to work together to
share member data to support care• What business problem are they trying to resolve?
– Patients often traverse the care continuum. A single healthcare organization is frequently unable to maintain a comprehensive view of a patient’s care from the data they possess
– Increased focus on quality and lowering costs brought about by shift from Fee-for-Service to Value Based Outcomes
• How are they approaching a solution?– Envisioned creation of a public utility to serve all of California– Collection of and access to healthcare information from payers and healthcare providers– Established Cal INDEX with $80 million seed funding
• Why did they choose Orion Health?– Reviewed 30+ vendors and chose Orion Health as the only one with the capability to deliver a platform with the
scalability required to handle massive amounts of data, on cutting edge technology• What results are they hoping for?
– Currently 9 million members on the platform, set to grow as additional providers and health insurers join– Intend to serve population of California – 25+ million lives
Who is Thinking Differently?
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Who is Thinking Differently?
• Who are they?– Five District Health Boards in New Zealand who serve a population of one million people, responsible for 95% of all
healthcare delivered in the South Island• What business problem are they trying to resolve?
– Greater utilization of capacity and improved health outcomes for the patient• How are they approaching a solution?
– Creating an integrated healthcare delivery environment with the patient at the center across all care settings – Consolidating all healthcare delivery activities around the patient and best practice workflows for today’s world – One rich medical and administrative record for each consumer in a complex and multi-system environment
• Why did they choose Orion Health?– Already created a cross care setting electronic medical record for the region– Needed a partner who saw the opportunity to re-design and build a platform for the future
• What results are they hoping for?– A healthier population delivered within current funding – Reduction in number of patients admitted into acute facilities– Provision of fully integrated healthcare delivery from the primary care physician, to circles of care preventing or
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It’s a Land-Grab OpportunityOrion HealthOverview September 2015
Number of Patient Records
$ Charge per Patient
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Our Ambition
To transform healthcare and becomethe number one health IT vendor globally
Orion HealthOverview September 2015
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The Competitive LandscapeOrion HealthOverview September 2015
*Total Healthcare IT $50B USD Today $70B USD 2020
Major Competitors Cerner, Epic, McKesson(all $2B to $5B USD in revenues)
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Good cashposition
Currency is in our favour
FY2016 – How We are PositionedOrion HealthOverview September 2015
We are graining traction in our
markets
We have growing opportunities to
pursue
We have the strategy, vision
and productsto succeed
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