Orion Health PowerPoint Template

ANNUAL GENERAL MEETING

22 SEPTEMBER 2016

Page 2 • 2016 © Orion Health™ group of companies

Order of Business

Andrew Ferrier

Chairman

Chairman’s

Address

Ordinary Business

& Resolutions

Andrew Ferrier

Chairman

CEO’s

Address

Ian McCrae

CEO

Other

Business

Andrew Ferrier

Chairman

Regional

Updates

Wayne Oxenham

(President North

America)

Jonathan Selby

(EVP EMEA)

Darren Jones

(EVP APAC)


Important Notice

This presentation is given on behalf of Orion Health Group Limited

(“OHE”). OHE continues to comply with the NZX Listing Rules.

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.

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.

CHAIRMAN’S ADDRESS

Andrew Ferrier

Chairman


Orion Health at a Glance

23% 24% 22%26%

29%33%

42%

FY10 FY11 FY12 FY13 FY14 FY15 FY16

Precision MedicineLaunch of Amadeus

Revenue Growth

26% growth in FY2016

Driving to Profitability

During FY2018

Moving to the cloud

Customer transition begun

>100m Patient Records

Significant milestone reached

High Performing Team

+1200 people in 15 countries

5578

97110

153 164

207

FY10 FY11 FY12 FY13 FY14 FY15 FY16

Revenue growth (in NZD millions)

25% CAGR

Growing Global Footprint

Strategic contracts signed in 2016

$38m Research Project

Partnership for precision medicine

Recurring revenue percentage


FY2016 Financial Highlights

(As at 31 March 2016, NZ$)

$207m26% growth on

FY2015

Operating Revenue

$85m36% growth on

FY2015

Annualised Recurring

Revenue

$35m90% growth on

FY2015

Regional contribution

(pre abnormal items)

$59m$37m decrease on

FY2015

Cash Balance

$63mIn line with growth

in revenues

R&D Expense

ORDINARY BUSINESS AND RESOLUTIONS


Ordinary Business and Resolutions

To consider and, if thought fit, pass the following ordinary resolutions:

Resolution 1: That Ronald Andrews, who was appointed by the Board

as a director on 1 September 2016 and retires from his office in

accordance with NZX Listing Rule 3.3.6, be elected as a director of the

Company.




Resolution 2: That Roger France, who retires from his office by

rotation in accordance with NZX Listing Rule 3.3.11, be re-elected

as a director of the Company.




Resolution 3: That Paul Shearer, who retires from his office by

rotation in accordance with NZX Listing Rule 3.3.11, be re-

elected as a director of the Company.




Resolution 5: That any remuneration payable to the directors of the Company

may be payable either in part or in whole by way of an issue of Equity

Securities (as defined in the NZX Listing Rules).


Resolution 4: That the maximum aggregate annual remuneration payable to all

directors of the Company be increased by $150,000 from $750,000 to $900,000.


Resolution 6: That the Board of the Company be authorised to fix the auditors’

remuneration for the financial year ending 31 March 2017.

CEO’S ADDRESS

Ian McCrae

CEO


The Healthcare Industry Requires Fundamental Change

12

14

16

18

20

22

1999 2003 2007 2011 2015 2019

US healthcare spend as % GDP

Forecast

Healthcare spend increasing

Per Capita Wastage in the

US (US$)$3,333

Orion Health Revenue Per

Capita (as % of waste)< 0.1%

Analysis of Spend in Core Orion Health Markets

Wastage in healthcare spending widely

accepted to be 30-40%

$9,523

$4,429$4,124

$3,856$3,328 $3,235

$2,898

$3,333

United States Canada France Australia New Zealand UnitedKingdom

Spain

Wastage in healthcare spending widely accepted to be 30-40%

Spend per capita Wasteage per capita (~35%)


Evolution of Orion Health Product Offerings

$16.2b Total NZ Govt

Health Spend

$5-6b Waste

within NZ

$250m Spend on

Health Information

Tech (<2%)

Orion Health

NZ Revenues

Providing Software Components ONLY

Providing Software Solutions

Providing

Business/Healthcare

Solutions and

Outcomes

?

$250m Spend on

Health Information

Tech (<2%)


Pharmacogenomics uses a

person’s genetic makeup to

choose medications that will

work best for that person.

Example 1: Pharmacogenomics


Example 1: How Genetics Can Affect Medication Blood Levels

Source: Jonathan Lancaster (Myriad) 2016

Perhaps

10% of

Population

Perhaps

10% of

Population

Less than

50% of

Population for

CYP2D6


Example 1: Other Pharmacogenomics Variants

▸ I have the CYP2C19 and therefore a ultra-fast metabolizer of a large number of drugs

rendering them ineffective with possible negative health outcomes if prescribed.

Antidepressants, (amitriptyline, clomipramine, imipramine, citalopram, moclobemide, bupropion),

Antiepileptics, (diazepam, mephenytoin, nordazepam, phenytoin, phenobarbital, primidone, hexobarbital,

methylphenobarbital), Proton pump inhibitors, (lansoprazole, omeprazole, pantoprazole, rabeprazole,

esomeprazole), Others (clopidogrel, proguanil, propranolol, limonene, gliclazide, carisoprodol, chloramphenicol

(bacteriostatic antimicrobial), cyclophosphamide, indomethacin, nelfinavir, nilutamide, progesterone, teniposide,

warfarin, tapentadol)

▸ Reports of savings ~$1000 (US$) per patient per annum from medications alone

Source: Jonathan Lancaster (Myriad) 2016


Example 2: Genes by Cancer Type and Risk (myRisk)

GeneAssociated Cancers

Breast Ovarian Colorectal Endometrial Melanoma Pancreatic Gastric ProstateOther

Cancers

BRCA1

BRCA2

MSH2

MSH6

MS2

EPCAM

APC

MUTYH

High Risk

Elevated Risk

+18 more….


Hyper-Disruption is Imminent

Instigators of Disruption:Healthcare wastage

New Data

Cloud hosting:

Machine Learning

Orion Health is at the ForefrontOur modern technology gives us a significant competitive advantage

Key Takeaways

Usage of a patient’s record will fundamentally change with machine learning significantly reducing wastage

Healthcare software needs to be reconfigured to be able to cater for the disruption


Four Predictions for the Healthcare Industry

1Patient Records

will grow

dramatically in

size and move to

the cloud

2Any healthcare

hyper-disruption

will be financed

by funders of

healthcare

3Patients will

increasingly

become involved

in their own

healthcare

4The HIT will

consolidate to 3

or 4 large

multinational

vendors


Orion Health at the Centre of the Healthcare Transformation

REGIONAL UPDATES

NORTH AMERICA

Wayne Oxenham

President, North America


North America Overview

$125m

Total Operating

Revenue

269Staff Numbers

55m

Patient Records

Orion Health key

customer sites


North America Overview

1. North America continues to be the largest revenue earning region for Orion Health.

2. We have begun the process of migrating existing customers to the public cloud in the US, which will lower

costs and improve margins.

3. The opportunities in partnering with Cognizant are immense. The company’s software manages health

insurance claims for over 190m people and has a very large, dedicated sales force.

4. We have signed five major US contracts to deploy the Amadeus precision medicine platform, demonstrating

important business confidence in our product roadmap.

5. To improve efficiency across the region we have consolidated our operations into our centre of excellence in

Scottsdale, Arizona, while maintaining regional hubs for sales and customer services.

EUROPE, MIDDLE EAST, AFRICAJonathan Selby

Executive Vice President, EMEA


Europe, Middle East, Africa Overview

$48m

153

Orion Health key

customer sites

Total Operating

Revenue

Staff Numbers

21m

Patient Records


Europe, Middle East, Africa Overview

1. EMEA was the fastest growing region in FY16.

2. We signed substantial contracts in the UK, including with Boots and a number of National Health Service

organisations.

3. We are extremely pleased with the traction we are making in France. Our two major projects in Paris and

Burgundy are progressing well and the outlook is positive.

4. Our footprint continues to expand across EMEA and we have recently announced our first Enterprise

customer in the United Arab Emirates.

5. We continue to explore new markets. Health integration, medicine management and patient access are

trends right across EMEA.

ASIA PACIFIC

Darren Jones

Executive Vice President, APAC


Asia Pacific Overview

$33m

145

Orion Health key

customer sites

Total Operating

Revenue

Staff Numbers

Patient Records

26m


Asia Pacific Overview

1. In Australia we have made significant progress over the past 12 months with several new customers

throughout Queensland, including the Statewide Interoperability Platform for Queensland Health and

Interoperability/eReferrals for Metro North (Queensland’s largest health service).

2. We continue to make progress in South East Asia through our Enterprise product for hospitals and are

looking to expand our reach in the region.

3. Closer to home, we are progressing with our South Island Enterprise Development which has now gone live

in the new Burwood Hospital with further rollouts planned for Canterbury and Nelson-Marlborough over the

next 12-18 months.

4. We have made the transition to a subscription revenue model and continue to drive lower implementation

costs and greater sales effectiveness and efficiency.

5. We expect to see a noticeable improvement in growth in the APAC region in this current financial year.

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