Oneview Healthcare PLC

Thank you for standing by and welcome to the OneView Healthcare FY23 Preliminary Release presentation call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. If you wish to ask a question via webcast, please enter it into the Ask a Question box and click Submit. I would now like to hand the conference over to Mr James Studer, CEO. Please go ahead.

Thanks very much and good morning everyone in Australia. Good afternoon to those here in the United States where I'm calling from and in Dublin, Ireland. Good evening to my colleagues who will be joining me very shortly. Firstly, just the usual legal disclaimer around, particularly around forward-looking statements which I encourage you to read. I'd also just remind you that all amounts in the presentation are in Euros, which remains our reporting currency, unless otherwise specified. And of course, we are referring to our full year results for the year ended December 2023. Joining me on the call today is Helena, our Chief Financial Officer, Niall, our Chief Product and Strategy Officer, and JP, our Chief Operating Officer, who are going to be updating you on a couple of the key developments in their respective sessions. Just a reminder, our vision is to power personalised exemplary care experiences. And the agenda today, we are going to obviously look at the 2023 year in review. Niall is going to speak to one of the key growth drivers, which is our virtual care strategy. He's also going to talk about MyFairMobile, which is the product formerly known as BYOD, which we very successfully launched here in Los Angeles. I'm currently at the Bias Healthcare Conference. very large gathering here in Los Angeles, and we had a fantastic response to the launch of that product. And then JP is managing the Baxter partnership for us, and he's going to provide some real updates on where we're at with the Baxter partnership. Of course, I will then conclude by sharing our book on 2024, and hopefully there'll be plenty of time for your questions. So we'll start with the 2023 review. I'm not going to steal too much of Helena's thunder and Steve's high-level numbers should come as no real surprise because we telegraphed them in our 4C, which we released at the start of January. So, total revenue for the year is at €9.4 million, recurring revenue at €6.6 million. Very pleased with the improvement in growth margin, which has improved by 6 percentage points, and of course, very pleased with a strong cash balance to finish the year. But as I said, I'll let Helena discuss these in more detail in her section. Most importantly for any company is, of course, new customer adoption. I think everyone who knows the company knows that we are in the elephant hunting business. We have a very elongated sales cycle, which has always been challenging. But we have had a very strong hypothesis that as a result of the changes during the pandemic, that we were seeing renewed demand for bedside technology. And that was certainly evidenced by 2023 representing a record year for net new loaders. Importantly, SixMet new logos and importantly the geographical distribution. Obviously the United States and Australia have been our key markets for many years but we were really encouraged to win our first new business in New Zealand where we will be deploying at the new Dunedin Hospital and of course in our own backyard at the new Children's Hospital of Ireland which is a very important win particularly for our engineering resources who are obviously largely based in Dublin. So a very exciting year in terms of new customer wins, and, of course, in the United States, both Capitoff and University of Miami, which are now all of these projects... Oh, sorry, I beg your pardon. Capitoff, University of Miami and Aviv are all now live and up and running, and they're currently in progress deploying at ADNI, at the Children's Hospital, and workshopping the project for the new Dunedin Hospital. Perhaps equally important are the expansions and upgrades that we enjoyed during the year. So we have extended our partnership with Blumengrad in Thailand for a further three years. We've completed a thousand-bed expansion at NYU Langone Health, who are not only our flagship customer on the East Coast of the United States, but also our co-design partner for the MySpace mobile project, which I think many of you are aware of already. At BJC Healthcare, we are midway through the deployment. We've deployed four of the 10 expansion hospital sites in our lives. We're also in the process of fully migrating BJC to cloud, which again reinforces the investment we made in our cloud product. And we were very pleased to sign our third consecutive extension at the University of California in San Francisco, who of course were our first customer in the United States And this brings many of these partnerships to over a decade long, which is a great testament of the value we're delivering across the enterprise. In terms of financial highlights, again, we want to focus on the contracted bed growth, which has been 45% over the last two years, so running around at 22%, 23% annual growth rate. Our annualised recurring revenue is at 7 million euros, or just under 12 million Australian dollars. This year was a really important year. The decision we made last year was to sunset our Gen 2 product, which is our Windows product, which we end of life on the 31st of December. And as that, we have seen some tactical change from three customers that were unwilling or unable to migrate to Android hardware. We'll have a look at the financial impact of that in a second, but it's been reasonably positive from our perspective. In terms of the after-tax loss, if we exclude the one-off treatment of the Regis Legal case in 2022, we improved our operating loss by nearly 3 million euros, or 27%, which is a sign that we've been very disciplined around cost control and obviously starting to see the benefits of revenue coming on stream. And of course, I want to thank everyone on this call who participated in the capital raise, which we completed in August. Thank you for those institutions that were so supportive and of course for the Share Purchase Plan where we had 180% oversubscription of the FPP, which we are very grateful for. So in terms of highlights, as I mentioned, JP is going to give an update on the Baxter partnership. Very exciting news as we've just received, as we intimated in the 4C, we just received our first purchase order from Baxter yesterday. JP will speak to that in his presentation. We've been selected as vendor of choice for two further US enterprise customers, which represent an additional four and a half thousand beds. As I just mentioned, we've enjoyed multi-year renewals of two major contracts at Binnigrad and UCSF. We've added over 15 million Euro or nearly 25 million Australian dollars in new total contract value from existing customers through upsell and obviously through new customers added during the year. We just completed yesterday the full launch of our Myfay mobile product which is now commercially available. The pilot went live at NYU Langone in Long Island in February and Niall will be sharing further information around that. As I mentioned, we completed the capital raise. We continue to see a very strong sales pipeline reflecting Gartner's assessment that interactive patient care has finally after quite a long journey, reached the plateau of productivity, which we are very excited about. As I mentioned, BJC is in full expansion mode. We've seen a 9% growth in contracted beds during the course of the year, and as I mentioned, with a further 4,500 beds in contract negotiation. We're going to talk a bit about meal ordering today. I think everyone should be cognizant that we published a very interesting case study with Omaha Kibbs, showing that they now have 95% adoption of digital meal ordering and have seen an 87% reduction in food waste, which is a very powerful testament. I mentioned the new logos we've already added, and I also wanted to thank Shareholder Support for the appointment of Barbara Nelson and Mark Cullen, who were both appointed to the Board of Directors during the course of the year. So to give a visual of what I was just discussing around, as I mentioned, the year-over-year numbers mask what's been a pretty busy year around on the implementation side. We saw a 190% increase in live bed installation during the year with 1,950 beds coming on live. But as I mentioned, we have seen some tactical turn with three customers for a similar equivalent number of beds that have... chosen not to renew. These were entertainment only lower margin beds. And as you can see in the fourth bullet point here, the beds we turned on this year had an average revenue per bed, which is 94% higher than the beds that we did not renew. So everything else being equal, those beds will result in an additional million euros in recurring revenue in 2024. You can see here we have this large group of contracted not yet installed beds, which are primarily the BJC expansion, the Children's Hospital of Ireland and Catholic Health, which we are actively scheduling for delivery this year and in some cases early into 2025. And we have the 4570 beds that are currently in contract negotiation. We'll share a little more granularity on that later in the presentation. So very positive momentum in the bed funnel. 2023 really has been a really important year for the company, setting us up for the growth that we're embarking on right now. And I think it's fair to say that 2024 is the most exciting time in the company's history. We've really enjoyed great success from the investment we've made in cloud. We know how much it reduces the complexity of deployment. But perhaps more importantly, cloud is what has really facilitated the ability for us to now deliver the MySafe mobile solution on the patient's own device. It's also, it was called out by Baxter as a very clear factor in their decision to choose us as their preferred partner in this space. Some important data points here that probably won't come as any surprise, but 88% of global cloud decision makers are adopting cloud. We see that in our own conversations with customers where almost every conversation we have with an existing customer has adopted a cloud service strategy. All but one of the contracts we signed in 2023 are for cloud, and as we've observed earlier, are materially higher prices than our legacy Gen 2 contracts. So MicroMobile, as I mentioned, we had the full product here launched here yesterday. It's been extremely well received. We've had fantastic feedback. The genesis of this is very simple but very powerful. It is our response to what we've known for many years is that hospitals do not like or do not have the desire on all the resources to deploy capital in patient rooms. So up until now, we've had to rely on the ability for the capital budget to vote in favour of patient engagement. And what we know, also sadly, is that as enthusiastic as the patient experience and nursing teams may be, often when we go into the capital budget, we run into competing priorities. And we know that the hospital needs to buy a new prevention robot, they want to upgrade their MRI machines, And sadly, patient experience has fallen down the list of priorities. Being able to deliver this now on the patient's own device is something that is expected in the digital world we live in. Most importantly, it's going to expand our addressable market in a really meaningful way. We know already in the conversations we're having with US customers that we're never going to be in a position to deploy hardware in the room, but being able to make this interface available on a patient's device is going to be a game changer. And it's going to open us up to new markets. So right now we continue to focus our sales energies in the United States and Australia, but we have, as I think we've discussed earlier, identified the UK, Canada and Germany as markets that are of interest to us. We have no ambitions to tackle any of those in 2024. although we may certainly look at some exploratory work in the UK towards the end of the year. I'll leave Niall to talk further about that as we move forward. So the product usage and utilizations across our 10,000 beds, we had nearly three quarters of a million OneView admissions last year. This is resulted in substantial time saving. Importantly, we know entertainment is still a key component of the platform. And you can see here the utilization stats that patients are using the OneView platform for television for over eight hours a day and using the tablet for nearly 12 hours a day, which are significant increases on 2022 levels. You also see we've had a really meaningful increase in assigned education. But I want to just talk a little bit about our vision for new ordering because, as I mentioned, the Omaha case study has been incredibly powerful. And I think it's a place that we can deliver really meaningful ROI. And I just want to socialise a few numbers here. If you think about the 700,000 admissions that we had last year, you know, if we assume that we can get the same sort of penetration rate that we're enjoying at Omaha and 90% of the patients use the device to order their meals electronically, we have 640,000 patients using the meal ordering. Our typical length of stay is three days. So that would equate to effectively nearly two million patient days where patients could use it to order their meal. Typically, our patients order two and a half meals a day, but let's assume it's four million meals ordered during the course of the year. We know from the work we've done with our user group that nurses believe that every time they're using the OneView device to order a meal, they're saving about three minutes of nursing time. So those four million meals would equate to 12 million minutes of nursing time, which is nearly 22 years of nursing time saved in any given year from the 10,000 beds we have live. That's a huge driver of value. We know from conversations with an existing organisation we're talking to that they think from moving from their current solution, which is entirely paper-based, to one view could save them over $2.5 million a year. So it's very, very impactful and something that is another key driver of our MyStay Mobile solution. So let me pass it across to Niall now, who's going to do a quick recap on the product innovation 2023 and then talk a bit about virtual care and MyStay Mobile. Thanks, Niall. Thanks James. So just to share some of the innovations that our team have been working on this year. We target between five and six major software releases a year and this year we did five software releases on our core and bedside hardware platform and then the first release of our MySQL mobile product as well. I'm going to talk a little bit more about that and how that's part of our growth strategy for 2034. We enhanced the virtual care API that we delivered in 2022, so we added support for additional workflows, so these are observation workflows as part of virtual nursing, which is enabling virtual nurses or virtual sitters to observe patients one way through the one view hardware at the bedside and to be able to prompt patients that that observation is happening. We did work around simplified pairing and many of our customers use tablets paired with televisions and the user experience and that was originally designed a number of years ago and before Airplay and Chromecast became the norm and so we have simplified the user experience for pairing to better align with those consumer pairings. As James mentioned, meal ordering is an incredibly important part of our value proposition. It's described by customers often as our killer app and a significant driver of efficiency. And so we continue to make enhancements to that feature to make it easier to use and also to add support in new customer workflows. And we've made changes to support diversity, equity and inclusion programs at our customers this year for patients, who are undergoing gender reassignment. It's obviously very important for them that they see their preferred name on the system, so we've made modifications to support that in collaboration with our customers. We've also made technical improvements to the platform, and this is really to continue to improve the scalability of the platform for our enterprise customers as our customers grow in size and complexity. and also to ensure the security and stability of the platform as well. Just a comment on the photo that you see in the right-hand side there. So we enjoy extremely collaborative innovation partnerships with our customers. This is one example. So this is NYU Langone Health. We sent a serious delegation to our Dublin office in 2023. This was paid for by them. And the focus of two days of workshops was around the hospital room of the future. So some great collaboration there. We're just moving on to the next slide. I'm going to talk through a couple of the three growth drivers for 2024 and then hand over to JP to talk about the third one, which is our Baxter partnership. But I'll start by talking about virtual care. Hospitals in the US and really around the world are undergoing a staffing crisis. This is a quote from McKinsey and from a study that they did in 2023 that really shows the scale of the problem in the US. 45% of inpatient nurses reporting that they're likely to leave their role in the next six months. An increased workload burden is the primary factor that is cited behind that intent to leave. So it's clear that there's There's a need for change. The state of quo is just not a sustainable model. Moving forward to the next slide of what is virtual nursing. It's a complex problem, but an important part of the solution is virtual nursing. So I'll just kind of talk to you a little bit about what this is before talking about our virtual care strategy and our virtual nursing strategy. So virtual nursing is where you have an expert nurse who's based in a remote command centre. So typically an organisation would have one command centre that is serving all of their hospitals. So it doesn't have to be geographically located beside a hospital, it can be anywhere because obviously it's connected via network connectivity. And these remote or virtual nurses are supporting the on-floor nurses, so the nurses who are physically in the hospital, with non-physical care. So this would be things like supporting patient education, patient observation, physician rounding, the admission process and preparation for discharge. Really the goals of virtual nursing are to improve patient safety and this happens through virtual nurses being able to reduce the interruptions that on floor nurses face that can cause them to make errors and also to provide a sustainable staffing model and the reason for this is that you often have nurses who may Yet the point in their career, as the McKinsey quote shows, that they no longer are up to the physical demands of the job. Nursing is obviously a very physically demanding job. But they still want to be able to leverage their training. And so virtual nursing gives them that opportunity to be able to do that in that remote manner. This is a really important trend in the U.S. market. And we're seeing increasing adoption and piloting of virtual nursing programs. So what is our virtual care strategy? Just moving on to the next slide. So I think this is a really important point. So this is a competitive space. Obviously, whenever you have a big firm like this, a big customer need, you have a lot of people responding to that need. And there are established vendors in the market that provide virtual care platforms. So we chose not to build a solution here to try and compete with these established vendors, but instead to leverage the platform that we already have in the room to leverage that patient television and to be able to deliver virtual care by integrating into our customers' preferred providers. And this is really important because customers may have a preferred provider that they use today. They want the flexibility to be able to change that provider in the future. And so our platform-based approach allows them to do that. So what we're doing is we're using that television as you can see in the little graphic there. That television is connected to an integrated camera and audio unit from the virtual care platform vendor and then the OneView hub device that is behind that television is controlling that television as to whether that television is being used by the virtual care platform or by the patient and the OneView system. I mentioned the virtual care API. We delivered the first iteration of that in 2022. We delivered another iteration of that to support additional use cases in 2023. And that enables any certified virtual care platform. So that's a virtual care platform that we have certified with that API to share that single screen. We certified our first partner on the API. In 2023, that is Caregility, obviously a partner we've been working with for a number of years. And we have several other leading virtual care platform vendors in the certification process currently. And what's next after this? So next for us is looking at an AI-powered virtual care assistant that can support virtual and on-unit nurses by uploading some of those common patient questions or tracking information or personalising engagements And so your virtual care model consists of a virtual care assistant, a virtual nurse, and then a non-unit nurse providing physical care. So that is our vision. Next, we're going to talk about MyStay Mobile, which, as James mentioned, is another key growth driver for us as we go into 2024. And there's really three drivers for change that are really important in creating the tailwind for this product. One is rising consumer expectations. So we all use digital technologies more in the pandemic. Across generations, I think, whether it was ourselves, parents, children, we all survived digitally essentially for a number of years. And we bring those expectations of convenience, of control, how we engage with online retail, how we engage with travel and tourism, how we engage with financial services. We bring that to our healthcare experiences. Second driver is around smartphone adoption. So smartphone adoption is at an all-time high. Under 50, you've got 97% of people in the US market having smartphones. Even you go up over 65-year-olds, you've got 76% smartphone adoption. So almost everyone has a smartphone these days. And then the third driver for change, and this is really linked to that sustainable staffing problem that I spoke about, is the need to reduce past burden for nursing. So, service estimate that up to 12% of nurse time could be freed by delegating tasks to other roles. So, for example, for patient care technicians. So, moving on to introducing MyStay Mobile. So, what MyStay Mobile is doing is allowing capital-concerned healthcare organisations to benefit from the power of the industry proven care experience platform that we've built, elevating patient care and reducing the task burden, reducing interruptions to nursing and this is through self-service and automation. We've built this on the cloud-based platform that powers our hardware-based solution at the website today. We're not building an entirely new full stack. This is leveraging all of the investment and work that has gone into that platform and all of the depth and breadth of integrations to electronic health systems to other hospital systems that we've developed over the years of serving top healthcare organisations. The difference here is we can deliver this as an entirely stacked solution. So no hardware, no infrastructure required. It's all of the features of our hardware-based solution that is in use in hospital rooms today. The only exception is live television because typically there is already a television in the patient room. We've just gone live with a pilot of MySaneMobile. We're piloting it with NYU Langone Health at their Long Island Community Hospital in Long Island. And as James mentioned, we've just launched the product to the market formally this week, the VICE conference in LA. And just moving on to the next slide. So for those of you with children, this is probably a too familiar image. What MySpace Mobile is doing is it's putting the patient at the heart of the experience, connecting them to digital information, digital tools on their own device via a really simple, easy-to-use web application. And this is another really important point. This is not an app that they need to download from an app store. They get an SMS or an email at the point of admission via integration into the electronic health record at the hospital. They get that link, and they can click on that link, and it takes them straight into MyStay Mobile. So it's really about making it as easy to use, removing as much friction as possible, and so we connect them to those digital tools and to that digital information. I'm going to hand it over to JP now to talk to us about those great libraries who are back for the partnership.

Thank you, Niall. I'm delighted to be here to give you guys an update on our Baxter partnership and the bar agreement that we signed with them in May last year. We took part in a very competitive ORSP and we were delighted to be awarded that in May. As James has alluded to already, Baxter called out a number of key success factors that helped us get over the line across. our tablets, our TV and set-top box offering, which delivers virtual nursing, the all-in-one digital door sign, whiteboard and light stay mobile, as well as the fact that we're both in the cloud and the configurability of the set-top box. All of those things together are a care experience platform, and they're going to fit very nicely now into Baxter's care communications platform. Under the agreement, the CXP platform will be sold to the Baxter customer base. It has been a long time since May. Baxter acknowledged and said we need to really get this. They do this very frequently and launch new products. So we wanted to make sure that we got it right. And to date, we've engaged with over 100 different Baxter personnel across many different functions. What I'd say is that we're very now deeply integrated into Baxter's internal processes from order to cash, through project management, implementation and through their support team. We're highly aligned with their delivery methodology as well as their support methodology and we're really ready to hit the ground running now and support the delivery of the platform to potential new customers. The Care Experience platform is installed in Baxter's Customer Experience Centres in Carely, Batesville and Irvine in the States. We have lunch, the market lunch has commenced and we are going to be at every major trade show that Baxter will be attending as well throughout the year. And I'm happy to say that we did receive our first PO this week from a very high profile children's hospital in Florida for our digital door sign. And we continue to be in negotiation on the inpatient beds for that opportunity. The next slide, please. And we are engaged with the Baxter Connected Care Salesforce. So that's approximately 25 reps that are working across the United States who have a deep and meaningful relationship already established with many different hospital systems. This is gonna increase our customer base to reach significantly in the market. And as the partnership matures, Baxter are going to be empowered to implement our platform, meaning they'll run the projects and they will do the installations. So scaling this, we will be looking to use Baxter's own people in time. What this is really doing for Baxter is filling that last gap in their own product portfolio around patient experience, the digital door signs, and digital whiteboards to better connect their patients and deliver their own strategy around the connected patient room So as partnerships have gone, it couldn't have gone any better so far. We're highly aligned and very, very much engaged, and the Baxter team is very, very motivated to deliver the care experience platform to their customers, and they're very excited, as well as adding in the MyStay Mobile as well. So with that, I'll hand it over.