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Agenda• Introduction to Convene
• FY21 Status
• Growth and strategic initiatives
• Financials
• Summary
4
v
~12% annual growth in number of transactions 2016-2019
~10% annual revenue growth 2020-2023
Significant potential in new markets
2020 EBITDA of NOKm ~200
Established in 7 industry verticals
~900,000 mobile payment transactions in 2020
~80% market share in GP vertical in Norway
~14 million transactions annually
2020 revenue of NOKm ~425
Convene Group
v
Convene | Q1-21 Presentation
5
Our specialized solutions for payment processing are designed to meet the unique needs of healthcare
industries
Payment equipment
Transaction administration
Revenue cycle management Financing
Mobile and online payment Integration
Terminals accepting chip, card, cash, and invoice printing
Direct payment through
automated link sent to mobile or accessed via
platform
Direct integration with EHR-systems for efficient work-
flows
End-to-end administration
of payment services
Efficient and ethical
collection of outstanding
claims
Provision of financing-as-a-service without balance sheet
risk
Convene technology platform
Convene | Q1-21 Presentation
6
A clear and differentiated value proposition for our clients
xxx
Reduced administrative costs and need for back-office staff,
eliminating human errors
Increased time for revenue generating activities
Increased revenue through automated collection and financing services
Optimized consumer experience and customer service
Secure ethical and humane debt collection
Agile and scalable platform capable of adapting to changes in customer needs
Convene | Q1-21 Presentation
7
Financing-as-a-Service
First terminal sold
2010
20%
100%2021
Melin Collection established
20132010
Melin Medical is established
Company history and key milestones
Expansion into new verticals
2019
Mobile payment
introduced
2019
100%
Continued expansion
through acquisitions
2018
2020
“Just-walk-home”
initiative
New markets and
acquisitions
2017
Rebranding
2020
Convene | Q1-21 Presentation
8
FaaS is the next catalyst for growth
(1) Revenue from Gordion is categorized as Other
(2) ARR = rental-based + transaction-based revenue
Other Rental-based revenue Transaction-based revenue
Growth phase I:Equipment roll-out
Growth phase II:Revenue Cycle Management
Growth phase III:Financing-as-a-service
ARR 2 :
Key growth de-nominator
# Units # billable transactions # total transactions
82%
2010
0%
14%
0%
2014
0%
79%
2012 2013
9%
61%24%
9%
2011
9%
26%65%
78%
24%
76%
2%
3%
13%
0%21%
2%
20%
78%
20212015
16%
15%
84%
2017
78%
12%
13%
10%
2018 20222019
8%
81%
2020
78%
2016 2023
11%
76
0%0 2
24
126151
188
247
357
400424
NewProductlaunch
NewProductlaunch
NewProductlaunch
- 85% 91% 100% 100% 97% 98% 98% 88% 87% 92% 91%
M&A
M&A
Convene | Q1-21 Presentation
Agenda• Introduction to Convene
• FY21 Status
• Growth and strategic initiatives
• Financials
• Summary
10
Status Q1-21DEVELOPMENT DURING Q1-21
0.0k
0.5k
1.0k
1.5k
2.0k
2.5k
3.0k
3.5k
4.0k
Q3
16
Q1
17
Q3
17
Q1
18
Q3
18
Q1
19
Q3
19
Q1
20
Q3
20
Q1
21
Solutions in operation by industry
Prm. care Sec. care Vet. care Fitness
Churn rate in % Q1 2021 Q4 2020 Q3 2020 Q2 2020
Quarterly churn rate in % 2.0% 1.8% 1.4% 1.6%
Convene | Q1-21 Presentation
• Strong results during the quarter, driven by solid underlying top line development
• Continued growth in online consultations and roll out of mobile payment solution. The change in patient behaviour was initially driven by the pandemic, but we expect a lasting change compared to pre Covid levels.
• Stable development in number of installed solutions in the core health markets, still churn within Fitness.
• Status strategic growth projects:
o Dental Market: Pilot phase for Opus Dental integration. New integration with Anita systems.
o Leap / Faas: Substantial progress with testing and securing functionality of the platform
o Sweden: Slower progress than expected, partly related to Covid. Working diligently with partners resolve this.
11
Covid 19 update
Convene | Q1-21 Presentation
• Operations are well adapted to Covid-19 environment
• Majority of organization is still working from home
• Driver for roll out of mobile payment solutions and online consultations
• Gordion: Furlough level in 2021 is 20%
• Stable business and operations during Covid-19
• Gradual ease of restrictions and re-opening of the society
• Fitness centers local close-down during Q1. Most cities, including Oslo, have reopened fitness centers in the end of May
Agenda• Introduction to Convene
• FY21 Status
• Growth and strategic initiatives
• Financials
• Summary
13
Convene is a market leader in Norway
Market share per vertical Norway (%) 2021 (1)
(1) Market share of other competitors unknown.
20%
0%
10%
30%
40%
90%
70%
100%
60%
50%
80%
Specialists
67%
GPs
3%
61%
29%
78%
Vets
17%
93%
3%
Fitness
80%
22%
Dentists
4%
39%
Other / No solution
# of clinics with EHRs
~1,700 ~1,900 ~1,200 ~1,500~1,700
Svea
Microlog
PayEx
HelseRespons
Convene
Convene | Q1-21 Presentation
Market development during Q1
• Underlying good results during Covid-19 in our Norwegian markets.
• Stable development in number of installed solutions in our core health markets, still churn within Fitness.
• Delivered COVID patient check-lists to Unilabs Norway on terminal.
14
Convene’s service offering is unmatched in the Nordic markets
23
Service overview of Convene and competitors
EHR-integration
Terminals
Queue mgmt.
Check-in mgmt.
Cash payment
Card payment
Mobile payment
Invoicing
Debt collection
Reporting
Remittance
Financing
Debtor portal
Creditor portal
# EHR integr.
Sectors
Markets
Services
✓
✓
✓
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11 1 1 1 14 1
Medical professionals
Dentists
Other verticals
Convene | Q1-21 Presentation
15
v
v
The Scandinavian dentist market Installed and sold solutions in the Norwegian dentist market
Market dynamics
0
100
200
300
400
500
600
700
201920162014 2015 2017 2018 2020
Clinics
Market share
Market players
Average payment
~2,200
29%
NOK 850-30,000
~2,500
1%
SEK 800-30,000
~1,300
n.a
DKK 300-30,000
Norway Sweden Denmark
• 6,000 dental clinics across Scandinavia • Major EHR provider is Opus Dental with a market share of
~95% in Norway and ~45% in Sweden.• High fees and limited acceptance for credit card payments• A large share of the population in all countries visit the
dentist annually• Most dental care covered by patients in Norway and
Sweden (exception underaged patients). 40% of the cost covered for all consumers in Denmark
• High fees favor the potential for consumer financing
Status Convene
• Opus Dental: o Existing integration for invoicing solutionso Pilot phase for terminal integration
• Anita Systems: o New EHR-system integration in Norway
• Substantial future potential driven by FaaS / patient financing project together with BraBank
v
v
Convene | Q1-21 Presentation
Q1 2021
Well positioned to increase market share in the dentist market
16
Sweden Convene | Q1-21 Presentation
Status Convene
GPs and Specialists• Integration with CGM J4 (Gothenburg), Metodika and Webdoc.
• Major potential in Stockholm and Skåne regions for GPs
o Integration agreements in place with CGM for TakeCare (Stockholm) and PMO (Skåne) since 2017/2018.
o Payment API in TakeCare has been finalized (feature not released to production)
o Approval from regions needed to get access to the healthcare platforms and implement new solutions and features (incl. payment solutions). This is delayed, partly due to Covid
o Working together with our partners to resolve this
o Region has a clear ambition and strategy for digitalization and automation of healthcare services
• Backlog of signed contracts: ~100 GP and specialists (waiting for integration)
Dental market• Integration agreement in place with Opus Dental.
o Roll out in Swedish market planned after successful launch in Norway (some development needed to amend integration to the Swedish market)
• Backlog of signed contracts: ~50 dentist clinics (waiting for integration)
Market
650 GPs and specialists and 2.500 dentist clinics
In general, fewer but larger clinics compared to Norway
Regions (län) are the decision maker and owner of EHR systems (not the clinics as in Norway)
Convene are established in GP, Hospital and Specialist, Dentist, Physiotherapist and Chiropractors.
17
ConvenePay
With ConvenePay you can easily pay for the service directly from your mobile phone, tablet or PC.
• Stable and high invoice share over time.
• Installed on private COVID test-clinics.
• Mobile payment transactions five months into the fiscal year are already on 2020 level.
FAST. SIMPLE. FLEXIBLE.
850 +Companies
1.750.000 +Transactions
Convene | Q1-21 Presentation
0
50,000
100,000
150,000
200,000
250,000
MOBILE PAYMENT TRANSACTIONS 2020 2021
18
When expanding the service offering to include Financing-as-a-Service, Convene will introduce a fee
model generating revenue from all transactions
Convene | Q1-21 Presentation
BUSINESS PLAN INITIATIVES
20%
“Pay later” consumers
“Instant pay” consumers
Traditional transactions split: Instant vs. late payers Revenue share target of transactions going forward
100%~14 million
transactions
80%
20
0 50 100 150 200 250 300 350
Clear value proposition for service providers
With FaaS, service providers are guaranteed instant settlement at a lower total cost
Current resolution rate after invoice issuance
20
5%
30%
25%
0%
70%
15%
10%
20%
35%
40%
45%
50%
55%
60%
65%
75%
80%
85%
90%
95%
Resolution rate (%)
Days from invoice issuance
Instant settlement of all claims
No loss on outstanding claims
Guaranteed financing for service consumers
Only one, full-service counter party
Convene | Q1-21 Presentation
24% of outstanding invoice claims are paid within 10 days, 63% are paid within 1 month.
5% of all invoice claims are never paid
21
Faas Status
Convene | Q1-21 Presentation
• Substantial progress with project. Pilot period has stared.
• Platform is live on production environment and is currently undergoing testing and functional evaluation.
• We are handling transactions and producing invoices on weekly basis, and working with securing the moneyflow through the platform between all parties.
• Alignment and training of internal organization is in place and dedicated resources from the internal organization has been dedicated to the new platform.
• The next phase is to onboard a larger set of customers.
Agenda• Introduction to Convene
• FY21 Status
• Growth and strategic initiatives
• Financials
• Summary
23
Financial highlightsDEVELOPMENT KEY FIGURES AND KPI’S (PRO FORMA)
• Good start to 2021, mainly driven by stable top line (excl. accrued) in despite of negative impacts from reduced debt collection fees.
• Strong underlying revenue growth is driven by invoice fees and increased volume of payments related to historic claims with the old and higher fee levels.
• Stable cost levels during the quarter compared to last year. Positive contribution from increased electronic distribution of postage is counteracted by higher COGS in Gordion (higher sales volumes).
• Covid-19: Prolonged lock down in large parts of Norway. Shift from physical to online consultation continued during the quarter driven by the pandemic. Fitness centres in major cities were closed down during the period. Society has gradually opened up during the last weeks and fitness centres in Oslo were allowed to reopen on 26 May.
Comments for the quarter
Quarterly pro forma EBITDA(excl. accrued)
Convene | Q1-21 Presentation
Income statement (in MNOK) and key KPIs Q1 2021 Q1 2020 2020
Revenue (excl accrued) 106.5 106.8 427.6
Accrued revenue -3.4 2.5 -3.6
Total revenue 103.1 109.3 424.0
Cost of materials -19.0 -18.8 -77.0
Personnel expenses -22.2 -22.4 -99.7
Other operating expenses -12.2 -12.4 -49.9
Operating expenses -53.4 -53.6 -226.7
EBITDA 49.7 55.7 197.3
EBITDA excl. accrued revenue 53.1 53.2 201.0
KPIs
EBITDA margin 48.2% 51.0% 46.5%
EBITDA margin (excl. accrued) 49.8% 49.8% 47.0%
Solutions in operation 3,336 3,401 3,355
4641
27
3841 40
45
5359
4742
53
Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21
-11%-4%
64%
41% 43%
20%
-6%0%
Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21
24
Top line developmentDEVELOPMENT REVENUES PER SEGMENT (AS REPORTED)
• Invoice fee: Price increase with 17% in in the end of June 20. In addition, positive contribution from an increase in online consultations and accelerated role out of mobile pay solutions.
• Final reminder fees: 50% reduction in fee levels.
• Debt collection fees: Reduction is related to reduced fee levels. Higher than expected revenue related to historic claims with the old and higher fee levels.
• Gordion: Solid first quarter as we see increased activity levels in several markets. Car parking was especially strong in the first quarter.
Comments
Convene | Q1-21 Presentation
NOK million Q1 2021 Q1 2020 delta 2020
Revenue from terminals 11 10 0 42
Revenue from invoicing 40 32 8 121
Revenue from reminder fees 4 7 -3 28
Revenue from debt collection 30 37 -8 155
Revenue from legal claims 3 3 0 12
Other revenue 10 9 0 34
Gordion 9 7 2 36
Total revenue (excl. accrued) 107 107 -0 428
Accrued revenue -3 8 -11 -4
Total revenue 103 115 -11 424
Growth year-over-year (excl. accrued revenue) -0.3% 6.0% n/a 7.1%
Growth year-over-year (reported figures) -10.0% 14.3% n/a 4.9%
25
Cash FlowCASH FLOW Q1-21 (AS REPORTED)
NOK thousands Q1 2021 Q1 2020 2020
Profit/loss before income taxes -14,447 -7,752 -71,075
Income tax payable -3,791 -815 -815
Depreciation and amortization 35,490 34,293 138,698
Interest expense lease liabilities 367 395 1,575
Changes in accounts receivable and payable -5,264 -6,084 -2,891
Change in accruals, other short-term assets and
liabilities12,143 -5,006 12,759
Net cash flow from operating activities 24,498 15,031 78,249
Payments non-current assets -10,826 -13,662 -46,371
Proceeds from disposal of non-current assets – – 175
Net cash flow from investment activities -10,826 -13,662 -46,196
Proceeds from borrowings – – –
Repayment of lease liabilities -2,801 -2,597 -11,529
Net cash flow from financing activities -2,801 -2,597 -11,529
Net change in cash and cash equivalents 10,871 -1,228 20,524
Opening cash balance 65,348 44,824 44,824
Closing cash balance 76,220 43,596 65,348
Convene | Q1-21 Presentation
26
2020-2021 EBITDA bridge2020-2021E PRO FORMA EBITDA, EXCL. ACCRUED IN MNOK
2020 EBITDA Reduction in debt and legal collection fees
Growth inSweden
Provision model and
administration fee
Invoice Fee FaaS Organic growth and
other
2021E EBITDAFTE reduction debt collection
201
-85
150 -180
Mobile PayChange in
copayment structure
-85
-10
-85
Convene | Q1-21 Presentation
Agenda• Introduction to Convene
• FY21 Status
• Growth and strategic initiatives
• Financials
• Summary
28
Summary
Convene | Q1-21 Presentation
• Strong results during the quarter
• Continued growth in online consultations and roll out of mobile payment solutions.
• Stable development in number of installed solutions in the core health markets.
• Good progress on Dental project and FaaS, slower progress then expected in Sweden.