med investor deck sept 20 2013

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  • 8/12/2019 Med Investor Deck Sept 20 2013

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    Medworxx Solutions Inc.

    Corporate OverviewSeptember 2013

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    This presentation contains forward-looking statements, which can be identified by the use of theforward-looking terminology, such as may, intend, will, expect, anticipate, estimate, seek,or continue or the negative thereof or other variations thereon or comparable terminology. Inparticular, any statements, express or implied, concerning trends, future operating results, growth,performance, business prospects and opportunities or the ability to generate revenues, income orcash flow are forward-looking statements. These statements reflect managements current beliefs,including beliefs as to future financial and operating results, and they are based on informationcurrently available to management. Forward-looking statements are necessarily based upon a

    number of estimates and assumptions that, while considered reasonable by management, areinherently subject to known and unknown risks and uncertainties. Such risks include but are notlimited to: the impact of general economic conditions, market volatility, fluctuations in costs, andchanges to the competitive environment, as well as other risks disclosed in the public filings ofMedworxx Solutions Inc. (Medworxx) which can be found at www.sedar.com

    These factors should be considered carefully and undue reliance should not be placed on forward-looking statements. Although the forward-looking statements are based upon what managementbelieves to be reasonable estimates and assumptions, Medworxx cannot ensure that actual results

    will not be materially different from those expressed or implied by these forward-looking statements.Unless specifically required by law, Medworxx does not assume any obligation to update or revisethese forward-looking statements to reflect new events or circumstances.

    Forward looking statement

    2

    http://www.sedar.com/http://www.sedar.com/http://www.sedar.com/http://www.sedar.com/http://www.sedar.com/http://www.sedar.com/
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    Medworxx :: Corporate Overview

    Medworxx Solutions Inc. founded in 2004

    Toronto-based Hospital Patient Flow Software Provider

    Multi-year, Recurring per-bed revenue model

    Strong capital position to execute international growth strategy in

    2013/2014

    Shares Outstanding (FD) 26.6M

    Market Cap ($0.36 share price at 6/30/2013) $ 9.6M

    Net Cash (as at 6/30/2013) $ 2.6M2012 Revenue (2011 Revenue $4.8M) $ 6.1M

    Institutional Ownership 50%

    3

    http://tmx.quotemedia.com/quote.php?qm_symbol=MWX&locale=EN
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    Medworxx :: Highlights

    Medworxx Patient Flow aids hospitals in cutting spending and increasingrevenues; thereby optimizing hospitals utility and maximizing ROI

    Large near-term opportunity in Canada, US, and UK representing over1,170,000 hospital beds and a $249M annual revenue opportunity

    Goal of becoming the de facto standard in hospital patient flow solutions 33% of Canadian acute care beds under license

    Scalable growth with high-margin target markets

    Intellectual property fully developed with limited capex requirements

    Legacy Compliance & Education product suite generates consistent cashflow

    4

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    Medworxx :: IT Solutions

    Patient Flow

    Launched in 2008

    Compliance & Education

    Launched in 2005

    5

    across >320 hospitals

    Learning Management

    Policies & Documents

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    Assessments UtilizationManagement

    Bed Board

    Independent patient

    assessment form Core framework

    established

    Flexible dynamic enablesinstitution configuration

    Monitors patient stay based

    on clinical assessment Real-time

    Improves discharge rates

    Efficient bed management

    tool Real-time clinical status

    Optimizes resource use

    Medworxx :: Patient Flow Solutions

    6

    Identify Delay

    Hotspots

    Maximize

    Existing Beds

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    $49,500loss per bed, per year due

    to inefficient patient flow*

    *The Advisory Board

    $1,100average cost of a hospital

    bed per day

    45average days lost per bed

    per year due to inefficiencies

    Inefficient Patient Flow :: Higher Costs

    7

    $900Bannually in hospitalcare in North America

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    8

    Patient Flow :: Hot Spots

    Thin operating margins Emergency Department

    overcrowding Wait times and readmission

    cycles Costly delays from admissionto discharge

    2.4 million ALC days inCanada

    Bed blocking overcapacity Canada at ~90% Care quality damaged by

    disrupted journey

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    Challenge Solution Result

    Real-Time Measurement :: Efficient Patient Flow

    9

    Root of patient flow

    challengetoo muchvariability in patients

    state and care

    Reduce variability

    with daily clinical

    assessmentsunder 3

    minutes each patient

    Less system-wide

    dragFewerinefficiencies

    Clinical Assessments

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    Simple input process

    for Real-timeaccess to data

    demand and capacity

    management

    Manage appropriatelevels of care for

    every patient, every

    day

    Gain 360 insightsinto the patient

    journey from

    admission to

    discharge

    Clear Progress :: Analytics & Performance Indicators

    10

    Tracks

    Discharge

    Delays

    Tracks Bed

    Occupancy

    Against Targets

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    Medworxx has helped us identify process andcommunication issues to improve the planning andteamwork related to complex patient discharges.Patti CochraneVP, Patient Services & Quality and CNO

    More patients never having an RFD associatedwith their stay means more timely dischargesand a better flow of patients.Jane CaseyDirector, Medicine Programs

    Patient Flow :: Results

    11

    Reduced Alternate Level of Care (ALC)beds percentages from:

    Reduced medical unit ALC days from

    Increased percentage of acute-care patients

    given an Estimated Discharge Date (EDD):

    15% to 89%

    +18% to 5.9%

    15.5to 11.6Medworxx needs to be melted intoevery component of your organization.Diane MuscatManager, Patient Flow & Clinical Utilization

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    Annual Opportunity

    $17M

    82,850Hospital beds

    Annual Opportunity

    $15M

    79,005Hospital beds

    Patient Flow Addressable Market :: Near-Term

    12

    940,000Hospital beds

    $200MAnnual Opportunity

    160,000Hospital beds

    $34MAnnual Opportunity Annual Opportunity

    $85M

    415,000Hospital beds

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    79,005Total Hospital beds

    Addressable Market :: Canada

    13

    90%

    Capacity

    Rest of Canada

    55,536Total Hospital Beds

    25,427Medworxx Licensed Beds

    . .

    45.8%Market Penetration

    25,569Medworxx Licensed

    Beds

    33%Market Penetration

    Quebec

    23,469Total Hospital Beds

    142Medworxx Licensed

    Beds. .

    0.6%Market Penetration

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    33%Acute-care Beds

    in Canada. .

    4Provincial Agreements

    . .

    135+Patient Flow Hospitals

    . .

    ~27,500Acute-care Beds

    Internationally

    . .

    Ontario CaseExample33%Acute-care Beds in

    Ontario2Regions (LHINs)

    23Hospitals. .Expanding in UK

    ~2,000 beds

    Expanding inUSA

    14

    Medworxx :: Current Penetration

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    8,500

    2,692

    0

    0

    0

    0 1,970

    7,980 0

    1,400

    3,000

    0Prince

    Edward Island

    Newfoundland

    NovaScotia

    New Brunswick

    Quebec

    ManitobaSaskatchewan

    Alberta

    British

    Columbia

    Nunavut

    Northwest

    Territories

    Yukon

    TerritoryUnited Kingdom

    Provincial & Regional AuthoritiesAlberta Health Services

    Fraser Health Authority; Vancouver CoastalHealth Authority, BC

    The Province of New Brunswick

    The Province of Nova Scotia David Thompson Health RegionDeux Montagnes

    Palliser Health RegionPeace Country Health

    St. Joseph's General - Comox

    St. Michael's

    Woodstock General

    St. Thomas Elgin GeneralCalgary Health Region

    Chinook Health Region

    Select Hospitals

    Stevenson Memorial

    North Bay GeneralSault Area Hospital

    Sudbury Regional

    33%acute-care beds inCanada using

    Medworxx Patient

    Flow solution

    Medworxx :: Market Coverage

    15

    1,900

    142

    10%acute-care beds inCanada licensed onMedworxx Bed

    Board

    Ontario

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    Sales Strategy

    Direct Model

    Direct Sales

    Audits with or without

    partners

    Indirect Model

    Consultants / Partners

    ALSA

    Distributors

    ALSA

    Appropriate Length of Stay Audit Leverage the capability of and data from

    Medworxx patient flow without a full deployment

    16

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    If patients were clinically appropriate (or not) for the level of care they are receiving.

    If patients were clinically ready for discharge or transitionto an alternate levelof care.

    Barriers for each acute care hospital day beyond what is clinically necessary:segmented by hospital, physician, or community.

    Reasons and details for each barrier or delay, such as services delays, observationdays, and community placement issues.

    Appropriate Length of Stay Audit (ALSA)Quickly Unlocks Critical Barriers to

    Patient Flow

    Appropriate Length of Stay Audit

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    Patient Flow Beds :: Growth

    18

    2007 2008 2009 2010 2011 2012 2013_Q2

    Beds 7,531 10,278 10,920 12,858 21,252 26,469 27,578

    -

    5,000

    10,000

    15,000

    20,000

    25,000

    30,000

    #

    Beds

    Patient Flow Beds under licence

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    19

    $inMillio

    ns

    (2.00)

    (1.00)

    -

    1.00

    2.00

    3.00

    4.00

    5.00

    6.00

    7.00

    2004 2005 2006 2007 2008 2009 2010 2011 2012

    Revenue

    Adj EBITDA

    Medworxx :: Year End Financials (12/31)

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    Recurring revenue

    Non-recurring revenue

    78%

    22%

    Maintenance and

    Hosting fees

    Annual Renewable

    Software Licenses

    Perpetual Software

    Licenses

    Consulting Services

    Recurring Revenue :: Business Model Q2_2013

    20

    Perpetual

    Licences, 15%

    Annual

    Renewable

    Licences, 48%

    Maintenance &

    Hosting, 30%

    Consulting

    Services, 7%

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    Enterprise Valuation :: Comparison

    21

    CorporationStock

    Symbol/Exchange

    Enterprise

    Value/Revenue

    Medworxx Inc. TSXV:MWX 1

    Cerner Corporation Nasdaq: CERN 6.16

    Authentdate Holdings Corp. Nasdaq: ADAT 7.35Computer Programs & Systems Inc. Nasdaq: CPSI 2.82

    MedAssets, Inc. Nasdaq: MDAS 2.94

    Medidata Solutions Inc. Nasdaq: MDSO 8.09

    Merge Healthcare Inc. Nasdaq: MRGE 2.19

    Quality Systems Inc. Nasdaq: QSII 2.24

    Streamline Health Solutions Inc. Nasdaq: STRM 3.94WebMD Health Corp. Nasdaq: WBMD 2.35

    Syslogist Ltd. TSXV: SYZ.V 8.96

    Constellation Software Inc. Toronto: CSU.TO 3.31

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    Medworxx :: Leadership

    Board of Directors George Elliott, Chairman of the Board

    Director, executive, advisor on long term financialstrategies to numerous public companies

    Dan Matlow, Director President & CEO, Medworxx

    Paul Collins, Director President & CEO at St. Thomas Elgin General

    Hospital

    Sam Marafioti, Director Vice President of Corporate Strategy and

    Development, CIO at Sunnybrook HealthSciences Centre, Toronto

    Lee Matheson, Director Co-founder of Broadview Capital Management

    Inc.

    Renah Persofsky, Director The Portable Executive; founder and former

    President & CEO of Dexit Incorporated

    Barry Tissenbaum, Director Independent consultant; former Senior Partnerwith Ernst & Young

    Bernard Webber, Director 26+ years with Ontario Public Service; former

    member, Board of Governors of the InformationTechnology Association of Canada (ITAC)

    Executive Team

    Dan Matlow, President & CEO

    20+ years experience in software sales, consulting, anddevelopment; Former VP of Healthcare Services Open Text;helped grow Corechange from $0 - $27M revenue with 70+hospital customers in North America

    Peter Ellis, UK Managing Director

    40 years of international management and consultingexperience including leadership roles within the UK NationalHealth Service (NHS), former President and CEO of

    Sunnybrook Health Science Centre, ON and Senior Partnerat Ernst & Young

    Brian Goffenberg, CA, CFO & Executive Vice President

    20+ years experience in international financial managementat DWL and Delrina (now Symantec); emphasis on IT market

    Niels Tofting, Senior VP Sales

    10+ years experience in sales and sales management atCorechange and Open Text; top sales performer; emphasison the healthcare market

    Lori Frampton, MHS, RN, VP Patient Flow Process

    Improvement and Data Analysis 18+ years in senior healthcare management at Health Quality

    Ontario, Royal Victoria Hospital, Ontario MOHLTC. CertifiedLean/Six Sigma Black Belt

    Larry Vanier, VP Decision Support & Healthcare Processes

    25+ years in healthcare IT; former principal at Continuum,focused on product development, sales and support

    Joel Alfane, VP Development & Services

    10+ years in software development and implementations;former Director, Learning Development, Longview Solutions

    22

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    Medworxx :: Highlights

    Medworxx Patient Flow aids hospitals in cutting spending and increasingrevenues; thereby optimizing hospitals utility and maximizing ROI

    Large near-term opportunity in Canada, US, and UK representing over1,170,000 hospital beds and a $249M annual revenue opportunity

    Goal of becoming the de facto standard in hospital patient flow solutions 33% of Canadian acute care beds under license

    Scalable growth with high-margin target markets Intellectual property fully developed with limited capex requirements

    Legacy Compliance & Education product suite generates consistent cashflow

    23

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    Medworxx Solutions Inc.

    Dan Matlow, President & [email protected]

    416.642.1278 x311

    Brian Goffenberg, Chief Financial Officer & EVP

    [email protected] x315

    mailto:[email protected]:[email protected]:[email protected]:[email protected]