20180515 axonvct pitch deck v33 - thought launch€¦ · our origins are in human ehealth $11.1...

VetCare Technologies Corp.

Innovative Communication

May 2018 © AXON VetCare Technologies Proprietary & Confidential 1

When your pet needs emergency treatment, where is the medical history to guide the care team?

:::

at the regular vet clinic in Toronto …and not the emergency clinic in

Barrie!

2May 2018 © AXON VetCare Technologies Proprietary & Confidential

Human healthcare invests billions in medical record sharing… …because it saves lives, saves time, and saves cost

Animal healthcare wants and needs the same

AI, Robotics, Personalize Medicine

Paper, Film, Fax

Electronic RecordsDigital Images

Email, CD

Cloud, SaaS, Internet, Mobility

1980’s

2010’s

1990’s

2000’s


Our Origins are in Human eHealth$11.1 million investment in technology

200 person years 1.3 million lines of code

Focus on technology to empower access to health information

Deployed in over 400 hospitals in

China

Cloud solution for record sharing across 40 luminary hospitals

(USA)

2D and 3D Medical Imaging GRID Computing and Storage Visual Patient

Patents in US, Canada, Australia(pending India & Brazil)

Communication and CollaborationViewing Server

Collaboration Server

Storage Node

Storage Node

Device Registry

User Registry

PIX Manager

Audit Repository

Storage Node

Storage Node

XDS Repository

Document Archive XDS Registry

GRID Manager


Our MarketThe Equine and Companion Animal Market is shockinglylarge

USA Market for 2017 $69.36 billionØ Food $29.69 billionØ Vet Care $16.62 billionØ Supplies/OTC Medicine $14.93 billionØ Live animal purchases $2.01 billionØ Other Services $6.11 billion

Big playersØ Mars Petcare $17BØ Henry Schein $12BØ VCA $2.1BØ IDEXX $1.8BØ Banfield $780M


Targeting Animal eHealthLimited regulatory constraints

Private medicine

Lagging human eHealth adoption trajectory

Deliver an accessible and affordable health service in the hands of every animal owner

Immediately addressable

Highly monetizable

Pent up demand for eHealth solutions

VetCare Technologies Corp.


Experienced TeamPeter Bak, Ph.D. Chief Executive OfficerEntrepreneur with 25+ years of business and technology experience in medical imaging, electronic patient records, eHealth interoperability, and hospital IT. Founder of AxonVCT.

Ken Ono Chief Technology OfficerEntrepreneurial executive with deep knowledge at the intersection of machine learning, cloud and software development.

Nick Hoffman VP Sales and Business DevelopmentSeasoned executive with over 35 years experience in medical imaging device and software sales & marketing.

Craig Roberts DVM VP Product Management and InnovationReferral level equine veterinarian with 25+ years experience in practice and professional organizations


Problem

Veterinarians are stuck in the 1990’s

Poor Communication and Limited Collaboration


Solution Option #1Medical Grade Social Network

where veterinarians can aggregate patient records and share with trusted people


Equine – Early Adopter Market / Easy to Penetrate

10.8 million horses / 16,490 vets in NA and EuropeØ Many players in the information sharing cycleØ Extremely fragmented systems and processes

Ø Very mobile practiceØ A lot of multi-media content

Desperate for a cohesive and simple solution

Care Team

Ø 12 VetsØ 20 FarriersØ 5 TechniciansØ 4 AssistantsØ Many trainersØ 2 x Equine hospitals

Horses

Ø 2350 sport horsesØ 2000 race horses

Records

Ø 25,000 diagnostic imagesØ 2,500 cases

Early Adopters


Equine - Creating a Land Rush

An aggregated medical record is very Sticky!Everything in one place. Everything instantly accessible anytime, any device

Living life on our Medical Grade Social Network Global communication; connecting the team

Collaboration with the right context

End the day sooner: On-line Schedules, Invoices, Payment

No charge to the care teamRecords stored at no charge Medical grade apps all includes

Rush to adopt all care teams!11May 2018 © AXON VetCare Technologies Proprietary & Confidential

Equine – Go-to-Market

Monetize the horse $60/year

SaaS Metric Apprehensive Confident Target

ARPC (Annual) $60 $60 $60CAC $11.05 $7.42 $5.32LTV (5 years) $300 $300 $300 LTV CAC Ratio 27 40 56

Rapid market awareness through programs Ø AdvocacyØ InfluencerØ SponsorshipØ Social networking

Small team at all of the congregation points:

Ø Sport Horse Competitions

Ø Race Horse Competitions

Ø Auctions

Driving Adoption – B2B market with tightly connected customer group


Companion Animal Market

Ø Hierarchical information sharing flowØ Clear value in record sharing among vetsØ Limited penetration of medical record systems

Ø Extremely large client baseØ $25bn annual spend in emerging

markets with 4.5% CAGR

387 million pets / 195,565 vets in NA and Europe

Communication and Collaboration a Burning Issue

Pyramid ModelPets flow up and down the pyramidØ ~15% of pets flow to

Speciality clinics

Ø ~5% of pets flow to Emergency clinics

Market Clarity

Value to OwnersFlowing records minimizes

duplicate testingØ X-ray $300Ø Blood work $250Ø Time $500/hr

Value to VetsØ Save timeØ Reduce costØ Make more money


Companion Animal – Market Dominance

An aggregated medical record is very Sticky!Everything in one place. Shareable anytime, anybody, anywhere

Empower the owner with a Medical Grade “Market” Network

No charge to the care teamRecords stored at no charge Medical grade apps all included

Rush to grab all pet owners

On-line virtual visits (transaction velocity and satisfaction) –Ø Take control of cost and timeØ Expand opportunity for clinics

Expand professional services: boarding, grooming, walking,

genomics, nutrition, etc.AI Virtual Health Service – expand reach into the emerging markets


Companion Animal – Go-to-Market

Monetize the pet $60/year

SaaS Metric Apprehensive Confident Target

ARPC (Annual) $60 $60 $60CAC $1.39 $0.63 $0.41LTV (5 years) $300 $300 $300 LTV CAC Ratio 215 476 731

Leverage the relationship between vets and clients as an awareness and conversion driver

Leverage pet insurance as a channel to the pet owner: create value to the partner through analytics on the medical record

Leverage specialty/emergency clinics to drive adoption among local

vet clinicsLeverage marketing science to

achieve rapid dominance

Launch broadly and aggressively

Driving Adoption - B2C Market with High Emotional Quotient

Launch strategyØ Prospect targetingØ Brand identityØ EventsØ Social influencer programs

-> SEO, Google Ads, Facebook, Instagram-> Develop brand for DTC sales-> Tradeshows and Competitions-> KoL, Societies


Revenue – Combined 2018-2021

SaaS Metrics (Forecast)

Market Penetration

Apprehensive Confident Target

Total Revenue $834,719,000 $1,618,566,000 $2,909,645,800Gross Profit $794,031,000 95% $1,539,868,000 95% $2,776,834,000 95%Net Profit $753,883,000 90% $1,499,720,000 92% $2,736,686,000 94%


Vets 7.56% 14.77% 15.53%Pets 2.13% 4.26% 6.80%Horses 7.42% 11.90% 20.22%


ARPC $60 / year $60 / year $60 / year

CAC $1.19 $0.60 $0.45LTV (5 years) $300 $300 $300 CAC Ratio 252 500 666


Net Profit – Combined Markets Cash Burn

17

$(6,000,000)

$(5,000,000)

$(4,000,000)

$(3,000,000)

$(2,000,000)

$(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

$11,000,000

$12,000,000

$13,000,000

$14,000,000

$15,000,000

AprilMay

JuneJuly

August

Septem

ber

October

November

December

January

February

March

AprilMay

JuneJuly

August

Septem

ber

October

"Combined" Markets Cumulative Operating Profit Forecast

Target Confident Apprehensive Baseline

2018 2019

May 2018 © AXON VetCare Technologies Proprietary & Confidential

InvestmentNeed: $5 mm - $8 mmApproach: Go public on TSX-v through RTOAsk: $500,000 seed round +

$1.5 mm pre-RTO

Use: Working capital in preparation for RTO

Activities:Ø Roll-out equine sales (NA/EU)

Ø Secure companion animal early adopters in Canada/USØ Execute 1st phase of companion animal marketing: Plan &

Reach Ø Achieve cash flow positive by FYQ4 2018


Exit Dynamics

Market has big players who can afford $1b acquisitionsØ MARS

Ø VCAØ Henry Schein

Ø IDEXXØ Companion First Pet Hospitals


Competitive PositioningM

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Enterprise CollaborationInnovative Communication

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Cornerstone

AxISS is the only solution on the market that facilitates sharing of records Ø Across clinic systemsØ Across clinicsØ Among trusted parties

20May 2018© AXON VetCare Technologies Proprietary & Confidential

Cloud

Competitive Advantage & Defensibility

Frictionless Adoption

Extremely Simple to Use1st to Market

The only patient record solution in the Cloud that supports multimedia, record

sharing to constellation of care members, and collaboration tools

Ability to create and control the sharing of multi-media patient records without complex interfaces between

systems

Sign up and go

Pricing is less than a cup of coffee a day

Works on PC/smartphone over ISP and 4G

No IT support required

Intuitive User Experience following social networking paradigms

A medical grade social networking platform


20180515 axonvct pitch deck v33 - thought launch€¦ · our origins are in human ehealth $11.1...

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