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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)
Page 3 • 2016 © Orion Health™ group of companies
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.
Page 5 • 2016 © Orion Health™ group of companies
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
$38m Research Project
Partnership for precision medicine
Recurring revenue percentage
Page 6 • 2016 © Orion Health™ group of companies
FY2016 Financial Highlights
(As at 31 March 2016, NZ$)
$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
Page 9 • 2016 © Orion Health™ group of companies
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.
Page 10 • 2016 © Orion Health™ group of companies
Ordinary Business and Resolutions
To consider and, if thought fit, pass the following ordinary resolutions:
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.
Page 11 • 2016 © Orion Health™ group of companies
Ordinary Business and Resolutions
To consider and, if thought fit, pass the following ordinary resolutions:
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.
Page 12 • 2016 © Orion Health™ group of companies
Ordinary Business and Resolutions
To consider and, if thought fit, pass the following ordinary resolutions:
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).
To consider and, if thought fit, pass the following ordinary resolutions:
Resolution 4: That the maximum aggregate annual remuneration payable to all
directors of the Company be increased by $150,000 from $750,000 to $900,000.
To consider and, if thought fit, pass the following ordinary resolutions:
Resolution 6: That the Board of the Company be authorised to fix the auditors’
remuneration for the financial year ending 31 March 2017.
Page 14 • 2016 © Orion Health™ group of companies
The Healthcare Industry Requires Fundamental Change
12
14
16
18
20
22
1999 2003 2007 2011 2015 2019
US healthcare spend as % GDP
Forecast
Healthcare spend increasing
Per Capita Wastage in the
US (US$)$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%)
Page 15 • 2016 © Orion Health™ group of companies
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%)
Page 16 • 2016 © Orion Health™ group of companies
Pharmacogenomics uses a
person’s genetic makeup to
choose medications that will
work best for that person.
Example 1: Pharmacogenomics
Page 17 • 2016 © Orion Health™ group of companies
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
Page 18 • 2016 © Orion Health™ group of companies
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
Page 19 • 2016 © Orion Health™ group of companies
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….
Page 20 • 2016 © Orion Health™ group of companies
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
Page 21 • 2016 © Orion Health™ group of companies
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
Page 22 • 2016 © Orion Health™ group of companies
Orion Health at the Centre of the Healthcare Transformation
Page 25 • 2016 © Orion Health™ group of companies
North America Overview
$125m
Total Operating
Revenue
269Staff Numbers
55m
Patient Records
Orion Health key
customer sites
Page 26 • 2016 © Orion Health™ group of companies
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.
Page 28 • 2016 © Orion Health™ group of companies
Europe, Middle East, Africa Overview
$48m
153
Orion Health key
customer sites
Total Operating
Revenue
Staff Numbers
21m
Patient Records
Page 29 • 2016 © Orion Health™ group of companies
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.
Page 31 • 2016 © Orion Health™ group of companies
Asia Pacific Overview
$33m
145
Orion Health key
customer sites
Total Operating
Revenue
Staff Numbers
Patient Records
26m
Page 32 • 2016 © Orion Health™ group of companies
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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