medworxx solutions inc. corporate overvie investor deck april...medworxx solutions inc. corporate...

© Medworxx Inc., 2015 All Rights Reserved.

Medworxx Solutions Inc. Corporate Overview April 2015


This presentation contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or “recurring” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, such as competition, technological changes, the changing needs of hospitals, the financial condition of Medworxx’s current and potential customers, foreign currency exchange rates, as well as general economic conditions, which may cause the actual results, performance or achievements of Medworxx to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this presentation. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this presentation.

Forward Looking Statements

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

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 2014/2015 Shares Outstanding 27.3M Market Cap ($0.37 share price at 2014/12/31) $ 10.1M Net Cash $ 1.7M 2014 Revenue $ 6.2M Institutional Ownership 50%

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Medworxx :: Highlights

• Medworxx Patient Flow aids hospitals to reduce spending and increase patient throughput; thereby optimizing hospitals’ utility and maximizing ROI

• Large near-term opportunities in Canada, US, UK, Australia, and France representing over 1,670,000 hospital beds and a $351 M annual revenue opportunity

• Goal of becoming the de facto standard in hospital patient flow solutions – Currently 32% 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 cash

flow

*Excluding Quebec

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Patient Flow Addressable Market :: Near-term

Canada

US

UK

France

Australia

Potential Annual Opportunity

$15M $200M $34M $85M $17M

Total Hospital Beds

79,000 940,000 160,000 415,000 82,850

Medworxx Licensed Beds PTR Engagements

25,495

9

4

3,050

25

710

4

6

5


Medworxx :: IT Solutions

Patient Flow Platform

Launched in 2008

Compliance & Education

Launched in 2005

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across >400 hospitals in 5 countries

Learning Management

Policies & Documents


Medworxx :: Corporate history

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The company started in 2005 with a focus on the Compliance and Education (C & E) market. The Medworxx e-learning solution was launched along with a document management system focused on policies and procedure management.

Today, there are over 200 organizations (including hospitals) using the C & E platform. The Medworxx C&E platform is the leading industry solution in Canada with a customer presence in the United States and Australia.

In 2008 Medworxx entered the Patient Flow space with the purchase of the Continuum patient flow software solution. Continuum began in the 1990’s as a paper methodology to bring clinical utilization review to the Canadian market. Medworxx renamed the solution Clinical Criteria. Clinical Criteria developed into the flagship of the patient flow platform.

Medworxx Clinical Criteria methodology combines evidence based clinical criteria sets with a powerful technology workflow engine and robust data analytics. Quickly the Canadian marketplace adopted the Medworxx patient flow solution - currently licensed in 32% of all acute care hospital beds in Canada.

Medworxx added additional modules to create a fully functional patient flow platform. Modules include; Clinical Criteria, Bed Management, Forms and Assessments, and Housekeeping and Portering.

In 2011 Medworxx expanded into the UK marketplace and in 2014 Medworxx expanded into the United States, France and Australia. Medworxx has effectively demonstrated the solution is applicable internationally.

2013: International roll-out of the Medworxx Patient Throughput Review continues to provide participating hospitals with insightful diagnostic analytics . In 2014 the first operational use conversion contact is signed in France.

200+



$49,500 loss per bed, per year due to inefficient patient flow*

*The Advisory Board

$1,100 average cost of a hospital bed per day

45 average days lost per bed per year due to inefficiencies

Inefficient Patient Flow :: Higher Costs

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$900B annually in hospital care in North America


Global Patient Flow Challenges

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Challenge Solution Result

Medworxx Unique Intellectual Property Over 20 years of Analytics Expertise

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Root of patient flow challenge -- too much variability in patients’ state and care

Reduce variability with daily clinical assessments -- under 3 minutes per patient

Less system-wide “drag” -- Fewer inefficiencies

Clinical Assessments


Forms & Assessments Clinical Criteria Bed Management

• Independent patient assessment form

• Core framework established

• Flexible dynamic enables institution 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 Platform

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Identify Delay Hotspots

Maximize Existing Beds


Patient Flow Platform Analytics Engine

Integrates data to provide Management, Operational and Strategic Reports and Dashboards

Integrated Patient Flow Platform

Forms & Assessments

(Custom Risk Assessments)

Clinical Criteria (9 Criteria Sets: Acute, Community

Care & Virtual Wards)

Bed Management

(Includes Housekeeping & Portering)

Data Extract (ETL)

HL7 Interface (PAS)

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Reduced number of patient remaining in acute trust over 4 weeks1

Reduced ED admitted length of stay (LOS)2

Increased percentage of acute-care patients given an Estimated Discharge Date (EDD)3

15% to 89%

By 35%

Medworxx solutions Shaping the Future of Hospital Patient Flow

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“More patients never having an RFD associated with their stay means more timely discharges and a better flow of patients.” Jane Casey Director, Medicine Programs

“Using case managers and concurrent utilization management to safely handle a greater patient throughput with significantly fewer beds.” Janet Ross Deputy Director Operations

“It’s through Medworxx Patient Flow that we can have a system that manages, patient flow. If we don’t put it in the broader context, then we’re not leveraging the data we’re collecting. Simultaneously, Medworxx is about every patient, every day.” Paul Collins CEO

12 hrs to 7 hrs

1 Medworxx 2015 case study “Royal Liverpool & Broadgreen University Hospitals NHS Trust” 2 Medworxx Solutions Inc. proprietary materials and Management estimates 3 Medworxx 2012 case study “Medworxx Helps Southlake Regional Health Centre Streamline Patient Flow”


Cape Breton, Hospital NS, reduced medical Alternate Level of Care days1

Third party research shows in Year 1, the approximate Conservable Bed Days2

3 year target to Reduce Long Stay Outliers3

By 5%

“Significantly”

Medworxx solutions Shaping the Future of Hospital Patient Flow

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“One big improvement is the discharge process of our patients, it is much more organized. Medworxx Clinical Criteria gives me all the information I need to care for my patient.” WRHA Registered Nurse

Totaled 38,000 “Working with the Medworxx project team was one of the most organized and enjoyable projects I have ever experienced... I realized how efficient and effective the Medworxx team was.” Lorilee Scott Former Medworxx Informatics Specialist

“They already knew they had huge ALC issues in their district, but the Medworxx data provided concrete evidence and gave them the ability to track improvement progress.” Nicole Lukeman Provincial Patient Flow System Facilitator

1Medworxx 2015 case study “Nova Scotia Chooses Medworxx to Improve Patient Throughput & Capacity Management Province-Wide” 2 Leidos 2014 case study “AHS- HOW A PROVINCIAL APPROACH TO PATIENT FLOW IS REDUCING CONSERVABLE BED DAYS AND SAVING SIGNIFICANT COSTS” 3 Medworxx Solutions, Inc. proprietary materials and Management estimates

32% Acute-care Beds

in Canada . .

200+ Patient Flow Hospitals Canada, UK, France

. . 25,500+

Acute-care Beds Canada

. . 3,050

Acute-care Beds UK

. . 710

Acute-care Beds France

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Medworxx :: Current Penetration

Expanding in Australia

© Medworxx Inc. 2015 15

Medworxx Market Coverage

Provincial & Regional Authorities • Alberta Health Services • Fraser Health Authority; Vancouver Coastal Health Authority, BC • The Province of New Brunswick • The Province of Nova Scotia • Winnipeg Regional Health Authority, MB • Erie St. Clair LHIN, ON

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29,306 • Total number of

Medworxx licensed beds worldwide

32%* • Acute-care beds in

Canada using Medworxx Patient Flow Platform *Excluding Quebec

11% • Acute-care beds in

Canada licensed on Medworxx Bed Management Module


Patient Throughput Review

Medworxx partners with Consulting Firms to help consultants collect client specific data around the patient throughput process. The Patient Throughput Review captures client data and highlights areas which impede the patient flow process– from admissions to discharge. Consultants use this data to quantify the financial and clinical impact of patient delays.

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Specialized Data Collection and

Insightful Analytics

Performance Improvement

Expertise

Actionable Solutions

Medworxx Consulting Partner Client


Utilizing Patient Throughput Review

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Implementing Medworxx Patient Flow Software

Direct & Indirect

Distribution Model

• Direct Medworxx sales and/or Indirect consulting partner distribution

• Patient Throughput Review: an in-depth diagnostic exercise - Leveraging the capability of the data from the Medworxx patient flow software


48 PTRs in 5 Countries To Date (03/12/2015)

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Country Reviews Conducted

by Medworxx

Reviews Conducted by

Consulting Partner Total Reviews

UK 6 19 25

Canada 9 - 9

Australia 1 5 6

France 1 3 4

US 2 2 4

Total 19 29 48


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Medworxx::Year End Financials


Focus on High Growth Patient Flow Opportunities

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Non-Recurring Revenue Recurring Revenue

$5.4M

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2010 2011 2012 2013 2014

Annual Contract Value of

Recurring Revenue



Recurring revenue

Non-recurring revenue

80%

20%

Maintenance and Hosting fees

Annual Renewable Software Licenses

Perpetual Software Licenses

Consulting Services

Recurring Revenue :: Business Model

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Term or Annual

Renewable (Licences

and Other), 48.3%

Maintenance and support,

31.5%

Consulting Services,

12.6%

Perpetual (Licences

and Other), 7.5%


Enterprise Valuation :: Comparison (ttm)

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*Enterprise Value/ Revenue – is calculated as the market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents.

Corporation Stock Symbol/Exchange Enterprise Value/Revenue Medworxx Inc. TSXV:MWX 1.97 Cerner Corporation Nasdaq: CERN 7.19 Authentdate Holdings Corp. Nasdaq: ADAT 2.63 Computer Programs & Systems Inc. Nasdaq: CPSI 2.77 MedAssets, Inc. Nasdaq: MDAS 2.81 Medidata Solutions Inc. Nasdaq: MDSO 7.68 Merge Healthcare Inc. Nasdaq: MRGE 2.83 Quality Systems Inc. Nasdaq: QSII 1.74 Streamline Health Solutions Inc. Nasdaq: STRM 2.39 WebMD Health Corp. Nasdaq: WBMD 3.21 Syslogist Ltd. TSXV: SYZ.V 7.87 Constellation Software Inc. Toronto: CSU.TO 5.7


Medworxx :: Leadership

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Board of Directors George Elliott, Chairman of the Board - Director, executive, advisor on long-term financial strategies to numerous public companies

Dan Matlow, Director - President & CEO, Medworxx

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

Steve Garrington, Director - Vice President International at InterSystems

Har Grover, Director - Founder and Managing Director of Nucleus GC

Lee Matheson, Director - Co-founder of Broadview Capital Management Inc.

Barry Tissenbaum, Director - Independent consultant; former Senior Partner with Ernst & Young

Bernard Webber, Director - 26+ years with Ontario Public Service; former member, Board of Governors of the Information Technology Association of Canada (ITAC)



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Advisory Committee Frances Pennell - Consultant and former Partner with PricewaterhouseCoopers (PwC) USA

Sam Marafioti - Vice President of Corporate Strategy and Development, CIO at Sunnybrook Health Sciences Centre, Toronto

Renah Persofsky - The Portable Executive; founder and former President & CEO of Dexit Incorporated



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Executive Team Dan Matlow, President & CEO - 20+ years experience in software sales, consulting, and development; 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 consulting experience including leadership roles within the UK National Health Service (NHS), former President and CEO of Sunnybrook Health Science Centre, ON and Senior Partner at Ernst & Young

Brian Goffenberg, CPA, CA, CFO & Executive Vice President - 20+ years experience in international financial management at Philips Lifeline, DWL and Delrina (now Symantec); emphasis on IT market

Niels Tofting, Senior VP Sales - 10+ years experience in sales and sales management at Corechange and Open Text; top sales performer; emphasis on 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, Certified Lean/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

Andre Vandenberk, VP Product Management - 30+ years in information technology and an original founder of Medworxx

Nadine Brown, Marketing Director - 10+ years marketing communications; former National Healthcare Communications Lead with Siemens Canada


Medworxx Solutions Inc. Dan Matlow, President & CEO [email protected] 416.642.1278 x311

Brian Goffenberg, Chief Financial Officer & EVP [email protected] 416.642.1278 x315


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